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    Beyond the numbers

    Despite his retirement, SGV & Co. founder Washington Sycip is busier than ever as he continues to make a difference and try to improve the lot of his countrymen

     
    By Rizal Raoul Reyes
     

    Listening to SGV founder Washington Sycip can be likened to a class in business, politics, history, education, values and meritocracy, among others. As a giant in Philippine business, the 86-year-old Sycip provides valuable and relevant opinion in every important issue in the country in a very enlightening and interesting manner. Being a former academician, Sycip can also explain the issues in a very simple, but substantial, manner. 

                    In a one-on-one interview with the BusinessMirror, Sycip gives his views on the current Philippine realities. Sycip points out why the only Catholic country in Asia has lagged behind its neighbors in terms of development. He zeroes in on the failure of the Philippines to control its population growth, which later on became detrimental to the country’s growth.

                    Filipinos, particularly the youth, can learn valuable lessons, especially in terms of the values he espoused and consistently maintained. For instance, he made a rule that his three children will not work with SGV.

                    Sycip’s enthusiasm to make a difference in society is indeed inspiring, considering that an ordinary mortal of his age can just relax and retire. But he does the opposite, because he says he is inspired by a Kennedy maxim, “Ask what not your country can do for you. But ask what can you do for your country.”

     

    Describe your life when you were studying in the public-school system?

                    My father, who was then the chairman of China Bank, insisted all of his children go to public schools, instead of ethnic Chinese schools or expensive Catholic schools. He said we need to know the people here. So we all went to Burgos Elementary School in Santa Mesa and V. Mapa High School on Mendiola. 

                    And we didn’t go to school in his car, because he didn’t want us to feel we are better off than the other children. Instead, we took the Meralco trolley bus and small buses. Sometimes we would walk to Mapa High School from the Rotonda on the water pipe as a shortcut to Mapa High School 

     

    Aside from humility and simplicity, what other values did your father teach you?

                    He taught us the value of saving. On our birthdays, he told us that he made a deposit in our savings account, instead of spending money on a party. I also learned the value of meritocracy from my father. He told me if you work for me and you’re good and I promote you, they will accuse me of nepotism. That embarrasses me. And if you’re not good, that also embarrasses me. So, he told all of us children that he will give us the best education so we can make a decent living on our own. I have applied the same principle with my children. 

                    When I started the firm, I was still single. In trying to attract the best students to the firm, I told them that if I get married and have children I will not allow them to work in the firm, so it will be a complete meritocracy. I have kept my word. None of my children are involved with SGV.    

     

    What values have you learned during your stay in the US armed forces?

                    When I was at the graduate school at Columbia University I met people coming from the upper-income and well-educated groups. When you are in the military, you meet people from all walks of life. And you find that a butcher’s son may be more honest, may be more helpful, may be more sincere than someone from a rich family. You learn a lot of things. You also enrich your vocabulary with words that, at that time, were not spoken in polite society!

                    I had a very good job offer in America after the war. My father didn’t comment on this job opportunity. He just told me: “Look son, there’s a lot of work to be done here.” So, I realized you have certain obligations to a country that was devastated from the war. So I stayed here and started a one-man office.   

     

    How did SGV come about? 

                    In 1946 three British firms dominated the practice. They were from the prewar days and firmly established. How was I able to beat them?  At that time, the British firms had partners who were mostly Caucasians. But I thought any bright Filipino would also want to be a partner. The key is to spend more on training, so that the bright people can show what they can do. Promotions and admission into partnership should be based on the merit of the individual. You should not set a policy where your son, who may still be in high school or college, will succeed you.   

     

    Education is one of your major advocacies. Can you give an update of your activities in this sector?

                    First of all, at the graduate-school level we started the Asian Institute of Management in the late 1960s. Quite frankly, I now realize that more important than graduate school for the nation is basic education, meaning Grades One to Six in the public schools, especially when we consider the government’s declining per-capita spending on education. 

                    I met this inspiring lady, Nene Guevara of Synergeia. And I guess I’m spending more time with that movement and committing more resources there than anything else. What she is doing in improving education is very, very remarkable. 

                    I was shocked to learn the figures of the very high dropout rates in the Philippines. For the nation as a whole, out of 10 who enter Grade One, only around seven finish Grade Six. We’re not even talking about high school. The dropout rates in Grades One and Two are very high. That means the person is illiterate and is handicapped for life! 

                    The approach of Nene Guevara, aside from improving the teaching, is to work with the community. You just don’t give money. You don’t solve poverty by giving money. You have to work with the community so that they realize the importance of education for the future of their family and their children. 

                    In three Muslim communities, Nene Guevara told me that from three out of 10 finishing Grade Six, they were able to increase this to eight out of 10. It’s encouraging to know that the US government has given a grant to Synergeia for the Muslim areas. 

                    And I think why former Lipa mayor and now Batangas Gov. Vilma Santos is popular is partly because she has actively worked with Synergeia to improve education in Batangas.    

     

    One of the biggest problems of the country is the rapid population growth. Please give your thoughts. 

                    About a year ago, at a small dinner, I was seated between a cardinal and another prominent member of the Catholic Church from Rome. In discussing the problems of the Philippines, I mentioned that not long ago our population was about the same as Thailand; now we are 25 million more. Families in economic category A have less children than those in the bottom E group. I asked these two learned member of the Church: Do you think the rich have less sex than the poor? If not, they must be using pills, contraceptives or condoms. While the Church is receiving financial contributions from this group that are violating the teachings of the Church, it has become very difficult for the poor to even receive information on family planning. The government and politicians do not want to antagonize the Church as it actively campaigns against those who advocate a pragmatic family-planning program for the poor. 

                    With uncontrolled population growth, our per-capita spending on education now is a one-sixth that of Thailand and one-tenth that of Malaysia.   

                    Furthermore, the idea of democracy has been distorted, too. Many who are at the bottom of the economic pyramid sell their votes. Our political system hasn’t worked. 

                    For poor nation like the Philippines, I measure the success of a government by its ability to reduce poverty. We have clearly failed, especially if we see what our neighbors have been able to accomplish.    

     

    Taiwan, Singapore, Malaysia and South Korea took a different approach from the Western mode in pursuing development. In your view, what can the Philippines learn from the experiences of these countries?

                    All these countries emphasized economic freedom ahead of political freedom. Taiwan had martial law during the period of growth. Income level rose to $4,000 to $5,000. Then democracy came naturally. At that time, people are educated and not hungry and they don’t sell their votes. 

                    South Korea grew under a military dictatorship during the period of Park Chung Hee. When income levels grew, democracy came.

                    Up to now, Singapore has no freedom of media as defined by the West. But everyone agrees it is a great success with income levels near that of the richest countries. Singapore is now relaxing gradually, and you can see it.

                    The same thing is happening in Hong Kong. They are relaxing gradually. The main thing is that they have been able to solve poverty.

                    Vietnam has adopted the Asian model—economic freedom first. They’re moving fast. We’re importing rice from Vietnam and it is now a larger coffee grower than us. I had an office in Saigon during the Vietnam War and witnessed how North Vietnamese, without Russian and Chinese troops, were able to win over the South with 500,000 American soldiers. Western ideas may not always be successful in Asia.

                    You must have economic freedom. If you don’t have economic freedom, there will be no economic progress.            Mao Zedong unified China but it was Deng Zhao Ping who said to make money is “glorious” and released the energy of the people. 

                    The Prime Minister of Ireland, also a Catholic country, told me that when the different political parties agreed on common economic goals, investments from abroad increased and many young people who had migrated to the US and the United Kingdom returned to Ireland. We should pursue national unity with transparency in the government’s economic projects. You cannot expect the opposition to follow without transparency.   

     

    You are still optimistic on the Philippines. Why?

                    Yes, because I believe in the competence of the Filipino people. I meet many, many people all over the country who are good and capable people and want to see the country prosper. What we need is unity.

     

    Is this what keeps your adrenaline going?

                    Absolutely. There are so many things you can do in your immediate area where you can help hundreds of thousands of people. So, do what you can.    

     

    Based on that call, it seems you got inspired by the inaugural speech of President John F. Kennedy.

                    Exactly. Do not ask what your country can do for you but ask what you can do for your country. Synergeia and Gawad Kalinga are doing the same thing by going ahead to help the community. Nene Guevara and Tony Meloto have been successful in getting the people to help themselves to get out of poverty. Dr. [Jaime Aristotle] Alip of CARD [Center for Agriculture and Rural Development] is doing the same thing by spreading microfinance in many parts of the country.

     

    Did your Chinese heritage help you a lot in your development?

                    Probably, one thing was learning to be frugal. I think one of the best features of my Chinese heritage is that my father taught me to be thrifty and not to be just blowing your money away. I think we have too many people who know how to spend and who follow the American system of buying on installment. In the Chinese setting, you don’t buy a refrigerator on an installment basis. You save money first, then you buy.   

                   

    How about the Confucian values?

                    I guess, for most ethnic Chinese here, working hard is essential. Of course, sometimes you forget that there are other things in life! When I graduated from [the University of] Santo Tomas summa cum laude in accountancy, the dean who was an American told me we were going to have a graduation party at The Manila Hotel. Since I had topped the class, he told me I will have to start the dance. But I told him I didn’t know how to dance. That probably was my failure. He had to ask two of my classmates to quickly teach me how to dance—which they did!    

     

    Now that you are retired from the firm, how’s your regular routine?

                    My schedule is now worst than ever. When I retired from the firm 11 years ago, so many major companies here and abroad asked me to be on their boards. I am here in the office by quarter to 7 every morning. 

                    My schedule requires me to be in meetings abroad, too. I credit my assistant, Sylvia Sanchez, for her efficiency in managing my appointments. I call her every day when I am overseas to be sure all e-mails are answered promptly. n

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