Bill Luz is right about proposed boycott

Local leftists admonished Bill Luz of the Makati Business Club to shut up for saying that the boycott of American products and services proposed by our knee jerk anti Americans would hurt Filipinos. Didn’t Bill know, the leftists asked, that a large proportion of local business is Filipino?

There are times when even Bill himself would rather talk less, but he is just doing his job. I think even I once suggested in this column that Bill should consider talking less. With his nightly appearances in television newscasts, he should start getting talent fees from the networks. But this time, Bill is correct. The boycott proposal is an inane idea that could only come from so-called radicals still fighting the lost causes of their youth.

In the first place, a boycott of American products and services has no chance of success in this country. Overstuffed balikbayan boxes on all flights from the American West Coast demonstrate how wildly predisposed Filipinos are to American goods. The closest thing to a boycott of Coca-Cola gaining ground here was in the weeks preceding EDSA 1, and largely among the Makati crowd. The proposed boycott of American products to protest the Iraq war is a waste of time and not even very good propaganda.

In the second place, Bill is right. A boycott of American goods and services will also hurt us, if not more. Because American multinationals think in terms of a worldwide market, our small market means they are not likely to be as badly hurt. And here’s why.

As Bill explained, American companies here provide employment we need badly. Worse, alienating a major source of investments here would scare off investors from other nationalities. We don’t generate enough savings on our own to finance the infrastructure and the job-creating industries we need to move our economy or even feed our people. We either attract the capital we need from abroad or borrow from abroad. Given our debt load, guess what option is left?

On another level, our professional leftists forget that many of those small and medium scale Filipino companies are dependent on bigger companies, possibly American. They most likely are suppliers of raw materials and services and their fortunes are tied to how well the American companies do in this market.

Take Coca-Cola. Hurting the brand means they won’t be able to buy the sugar that is the lifeblood of thousands of poor Pinoy sugar workers. And what about the Pinoys whose livelihood are tied to the marketing network of Coke?

A boycott directed at a single company for misleading advertising might work and be more easily justified. But a boycott based on nationality will so damage our economic climate so as to make us another Myanmar. If you think our conditions here are bad, go and visit Myanmar. They are trying to do with the little that they have which is not very much and certainly not sufficient to spur any kind of development that would improve the lives of ordinary citizens.

On the other hand, there is merit to what Mar Roxas said in reaction to the boycott proposal. He said that he supports the Buy Pinoy movement. Maybe that amounts to about the same thing, but at least, the arena is the marketplace where marketing savvy determines the winners and losers. A boycott on the other hand, brings with it serious repercussions in our overall business climate.

Between Colgate and Hapee, I have been using Hapee. Between Coke and Cosmos, Cosmos although in my case, I have decided to go for fresh buko juice. Between McDonald and Jollibee, Jollibee. Between KFC and Max, Max. Between, PAL and Northwest, PAL. The list can go on and on. Encouraging Pinoy entrepreneurs by patronizing Pinoy-made products or those that do not have to remit royalties abroad should be alright. But let us not forget that even foreign brands have substantial Pinoy components.

Having said that, Pinoy products and services should maintain quality if they want Pinoys to patronize them. After using Hapee for a while, I am now wondering if the quality is world class. There is a tendency for this Pinoy brand to harden after a few weeks of opening a tube. I am tempted to go back to Colgate or Crest or Aquafresh and for no other reason than product quality.

All things being equal, let us buy Pinoy. But advocating a boycott based on nationality or political consideration is counter productive and not likely to work anyway. The leftists can scream all they want but the ordinary Pinoys don’t think much of their schemes. The leftists must try to be more creative instead of just constantly rehashing tired old strategies circa dekada 70.

Contingent liabilities

Sen. Ralph Recto is right to ask government to bare the names of "deadbeat private and public companies" who took out loans with government guarantees but have since defaulted on their obligations. The International Monetary Fund (IMF) had reportedly expressed concern on the National Government’s ballooning contingent debt, now estimated at P2.5 trillion.

Contingent debts of government are debts incurred by government-owned or controlled corporations or even by private companies with government contracts and must be assumed by the government in case the original debtor is unable to pay. Examples include Napocor’s guaranteed purchase of energy generated by the independent power producers (IPPs) and performance undertakings for build-operate-transfer (BOT) projects.

Recto explained that in government accounting, contingent debt is separate from National Government debt, which stood at P2.815 trillion at end of 2001. Together, the two debt types are collectively called public sector debt. I agree with Recto that the public has the right to know what contingent liabilities have become actual obligations that will be paid by Filipino taxpayers.

"At present, there is no full transparency as to contingent debts which have been converted to actual obligations, "Recto said. "Once contingent debts graduate into actual obligations the fiscal repercussions are frightening. The servicing of these debts would eat up scarce government resources," Recto said.

As I had been saying, it is time we examine and do something about how the country got into this messy debt situation. The public hearings in relation to proposals to impose a debt cap should be able to enlighten us.

SARS

Our paranoia on SARS can be forgiven. They still don’t know what virus is causing it, even as they have a few suspects. They don’t know for sure how it is passed on and at what stage of the infection. They think close contact is a sure fire way of getting it. Masks may offer some protection but what about other forms of contact like a handshake?

Maybe a nod or a wave is enough. But there are those who might think you are impolite or a snub or may even feel insulted if you don’t offer your hand for a handshake. So, carry a lot of things all the time.

That excuses you from shaking anybody’s hand, I guess.

Less beer

Dr. Ernie E. sent this one.

"Good afternoon, a pint of Less if you please," said the old man.

"Less? Never heard of it," replied the barman.

"Oh, come now surely you have," he persisted.

"No sorry, we certainly don’t stock it. What is it anyway? Some foreign beer?"

"Well I’m not sure," admitted the man. "It was the doctor who mentioned it. He said I should drink less."

Boo Chanco’s e-mail is [email protected]