SYNTHESiST Surveys on Philippine Financial Problems 168.0

A screening poll for SYNTHESiST readers to know ourselves more I have created a screening survey below (on 2/2 posted on Sidebar, too.) to know how the group’s choices affect innovation, in the long term. Please choose one answer as honestly as you can. Your choice represents an important part of the collective voice of [...]

Embedding Sustainability into Corporate Strategy 159.0

I have two tales from the grapevine. What used to be at the fringe seems to be moving to the mainstream. Regular corporations may slowly be morphing to social enterprise because it is beginning to make business sense. The First Tale. A new concept is being tried out by some multinationals to replace CSR or [...]

Ashoka Leverages for Social Entrepreneurs 158.0

Ashoka and Bill Drayton seek and nurture social entrepreneurs In 1981, Bill Drayton organized Ashoka: Innovators for the Public to identify first class entrepreneurs with pattern-changing ideas before either were proven and nurture both so that their success hastens development and democratization around the globe. David Bornstein’s 2004 book, “How to Change the World” chronicles [...]

Independent Central Bank: The Modern Gold Standard 132.0

The Central Bank of the Philippines struggles for independence An independent central bank is the direct descendant of the gold standard. In fact, it is a very innovative replacement that is fit for our time. The key word here is “independent.” Independence allows central banks to exercise standard monetary policy focused on the value of [...]

Deficit Devalues Peso, Cuts Investment and Innovation 125.0

One of the main barriers to long-term foreign direct investment (FDI) in the Philippines is currency risk. With low FDI, the Philippines is deprived of a major source of intensive learning and innovation. Currency risk arises from the change in price of one currency against another. Every Filipino and his uncle seem to agree that [...]

Ayala Grabs Leadership in Mobile Banking for Microfinance 122.0

Ayala Corporation has obtained Bangko Sentral ng Pilipinas approval to convert Filipinas Bank into an innovative IT-oriented microfinance bank. The Philippine Star reported this in today’s (10.13.09) issue, BPI forms microfinance, IT-oriented bank. Global Innovation Leadership for Ayala. I predicted this to happen in my August 31 post, World Class Innovation: Microfinance as an Ayala [...]

Managing for Medium-Term Peso Appreciation 120.0

The usual first response of Filipino exporters and contact and BPO center businesses to a strong peso appreciation is to ask the government, through their industry associations, for a foreign exchange bailout. With the government considered a soft touch and not proactive, this has created a culture of dependency over the years. It made companies [...]

Filipino Taxpayers, Be Ready for a Possible Reserves Grab at the BSP 119.0

Since we cautioned about the depreciating US$ just three weeks ago in our September 18 post, the Philippine peso has strengthened by 3.0% to PhP46.656 (closing rate, 10.8.09). As in October, 2007, this is a danger signal as some sectors like exporters, BPOs and OFWs will start to clamor for support from the rapid rise [...]

New Dangers Lurk as the US Dollar Depreciates 111.0

Three days ago, I heard a guest at Bloomberg call out that the US has become “a source of funds for the carry trade.” Since then, the drop in the value of the US$ and the improbable rise of the peso to PhP 47.70 to US$1 (closing today, 9/18/09) tend to support that claim. If [...]

Alternative Sources of Financing for Innovators 91.0

On the question, “If the financial returns are so good, why is everybody not doing the opportunities that I have identified in recent posts?” I generally hear one answer on the ground: lack of financing. There are funds looking for equity investments. There just seems to be some intermediation needed for the two parties – [...]

Crisis as Opportunity to Create an Army of Innovators 1 of 3

The goal of any government is growing wealth for its citizens and strength for the country. For the Philippines, this goal translates to a sustained 7% GDP growth per annum (that I derived in Posts #13 – #14). No administration has ever attained this goal in a sustained manner. The best way to do this [...]

Support the Bangko Sentral for a Stable Peso 3 of 3

Let us support the Bangko Sentral ng Pilipinas as a central bank that provides the price anchor, the present-day gold standard, for our economy. Through real independence from political overlords, the price anchor provides long-term benefits: A stable price of money discourages speculation. Success in investing will now require merit in product differentiation and business [...]

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