Revisiting ‘Filipino First’

With a population growing at more than two percent per annum, the Philippines has one of the largest population in Asia. By 2015, it would be joining the league of countries with more than 100 million people.

The issue about the country’s runaway population growth continues to be highly debated; yet many economists have expounded on the theory that the Filipino’s propensity to multiply is one reason why the country survived the 1997 regional crisis and even the current global economic slump.

Increasingly, survival of Asian countries such as China, Indonesia and the Philippines is being attributed to demographics. By a stroke of fate, being populous has become the crank to some countries’ engines of economic growth.

The resiliency of the Philippine economy still continues to be buoyed predominantly by the sweat capital of its overseas blue-collar labor force. Recently, however, a new segment in the country’s population has emerged as a potential major source of human resource equity.

Welcome to the new heroes of the economy! Filipino white-collar specialists – underpaid but highly skilled – are now considered as the preferred specialist human resource in the global world. They are young, smart and articulate graduates of our schools who are very much in demand as call center officers, software developers, bookkeepers, and even English language tutors. And they demand affordable pay checks.

Thus, despite the drop in exports, the economy continues to grow, thanks to the untiring efforts of our people force. Indeed, in the country’s quest for a niche in the borderless trading world, the Filipinos’ resourcefulness to take on any job is once again saving the day.

Highly competitive global work environment

There are however threats to this newfound gem. Globalization has encouraged similar types of skilled workers from other countries to look beyond their own shores, and they are posing threats and competing with our very own Filipino labor force.

For example, our overseas seafaring workers are facing tough competition from China and India, both populous countries that are actively looking for opportunities at enhancing the marketability of their maritime work forces through better training resources and facilities to upgrade skills of, for instance, their local seamen.

Even our overseas workers in the Middle East are now finding themselves more and more in competition with Indians who accept jobs at lower rates.

The presence of Koreans in the local construction industry, on the other hand, is threatening local jobs. In fact, we now have scores of foreign managers, engineers and even rank-and-file workers in build-operate-own or build-own-transfer infrastructure projects.

Time to look inward

Millions of our countrymen are now fighting for jobs in the global arena; this could mean that there will be less recruitment for overseas placement. This will increase pressure on our economy that has been dependent on the income of our overseas work force.

As this is happening, there are also fewer jobs for our countrymen in their very own country. Unemployment is on the upswing and poverty levels, in fact, are rising.

Given these threats, plans are underway to reinvigorate the provisions of Commonwealth Act No. 138 or the Flag Law of 1936.

The Flag Law is not about being nationalistic; it is about the survival of our own work force at a time when the whole world is slowly realizing that the borderless economy is not just about the free flow of goods but also of services and people.

The decades-old flag law has been blatantly disregarded by government agencies as they have increasingly ignored the stipulation to patronize only locally produced goods and services.

A clear example of this is the patent preference of public offices to send printing projects to Hong Kong or Singapore. The local printing industry reportedly is hard-pressed to retain its manpower because of the increasing preference for printed jobs abroad.

The government is a major purchaser of products such as books, vehicles, office supplies, and other manufactured goods. Recently, the President reminded her bureaucracy that the Filipino First policy is still in effect and should be implemented. The Flag Law mandates all government agencies including the government owned corporations and the local government units to give preference to local suppliers and contractors – whether contracts are negotiated or bidded out.

The law also states that a contract should be awarded to the lowest domestic bidder even if it is higher than that of a foreign supplier. That is, provided the local bid is not more than 15 percent higher than the foreign bid.

Building capacity for domestic market

Implementation of this preferential policy would motivate local producers/manufacturers to build capacity to meet this local demand. For them, this would generate more jobs, lead to higher productivity and profitability. Earnings could then be plowed back to improve capability to compete overseas or with imported products.

But it is not just government that needs to review the Filipino First policy. Given the fact that our private spending continues to exhibit a strong 2.5-percent growth, there is logic in supporting Philippine-made products.

Preferring local suppliers could significantly contribute to a self-sustaining economy, just as what China did when it took advantage of its huge population. China used its domestic market as the base for developing local industries and from this platform expanded production facilities to cater to overseas markets.

It is a tough dilemma for government as it debates whether to abet free trade (and consequently, inflow of cheaper imported goods) or protect and support local producers/manufacturers that provide jobs for its own people.

We hope that these debates do not last too long. Daily, there are more and more jobs being lost and more stomach feeling hunger. And to top it all, every hour, more Filipino babies are being born facing the threat of hunger and life of poverty.

Congrats, new PBA commissioner

I wish to extend my congratulations and best wishes to Noli Eala for being elected as PBA Commissioner. I would also like to thank the PBA Board for the time given me to share with them my views about the present state of the PBA and the challenges ahead.

The Philippine Basketball Association has a special place in my heart and I intend to do my share in keeping the PBA worthy of continued sports fan patronage.

Issues on television

We end the discussion on "HIV/AIDS, the Silent Terrorist" today on "Isyung Kalakalan at Iba Pa" on IBC-13 News (5 p.m. and 10:30 p.m., Monday to Friday). We start next week with the discussion on "Population Explosion, Root Cause of Poverty". Watch it.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. If you wish to view the previous columns or telecasts of "Isyung Kalakalan at Iba Pa," you may visit my website at http://bizlinks.linkedge.biz.