“The whole nation is in surplus…Philippine economy is in a healthier position to face the threat of the US virus,” a consoling pronouncement from one of the economists in the country Dr. Emilio T. Antonio, Jr., president of the Center for Research and Communication Foundation, Inc. and former dean of the School of Economics University of Asia and the Pacific.
It is indeed enlightening to hear such comforting words as we face hard times and continue to witness retrenchment in almost all industries nationwide. The economic briefing organized by the Subic Clark Alliance Development Council (SCADC) is a welcome note from the government. At least SCADC Chairman Edgardo Pamintuan has thought of providing adequate information to the private sector groups as well as the media in relation to the ongoing global crisis, US recession and its effect to the country.
Although Antonio does not totally reject the fact that we could get slight “pneumonia” from the US “flu,” he insisted that facing an economic crisis is all about attitude. He warned everyone to beware of the conventional wisdom and start checking the facts.
I am fortunate to get a free Economics 101 lecture during the briefing as Antonio brilliantly delivered his lecture in the easiest and most comprehensible way. He said that before we even jump into fear and hopelessness, we should assess the financial health of the economy.
The key indicators we need to know are: 1) cash position; 2) balance between income and expenses; and 3) access to other people’s money. And in macro-economics, just like in the case of running our country’s economy, these indicators translate to: 1) Gross and Net International Reserves (How much cash do we have in our reserves); 2) Current Account Balance (Balance between income and expenses in dollars); and Capital Account Balance (Balance between the flow of foreign capital).
According to Antonio, our country has a better cash position today because of the increasing cash reserves built up from surplus of income vs. spending. This was evident on how the public sector and private sector performed in sharing to the country’s income. He said there is an increased share of income from the private sector, which is a good indicator, while the national government has improved its collections.
Also, the improved spending habits of the private sector have also resulted to increased supply of funds that triggered interest rates to move down. And the end result, we have an almost stable peso-dollar rate.
Antonio said that although our exports were down recently and our country experiences small packets of “direct” and “indirect” affliction from the US crisis, our Overseas Filipino Workers (OFWs) have consistently earned dollars to pump our income.
He said the OFW remittances are increasing at rate of $1.4 billion a year. In 2007, our OFWs has contributed $14.4 billion or P730 billion to our overall income, or about 10 percent of our Gross Domestic Product (GDP). In 2008, our OFWs earned $16.4 billion for us and they are projecting the same for this year.
Antonio said that it is unlikely that our OFWs will be reduced because most of those working in US are teachers and nurses. They are in demand as compared to other workers. There are also millions of OFWs in other parts of the world.
So as it stands today, our country is earning more dollars than ever before because of our OFWs. Antonio said the export industry is losing money because “they are not competitive.” He even added that foreign investments dropped but “we have lived without it, so why bother?”
In short, he is saying that we have enough income and surplus to face the crisis but at the expense of our human resources.
The lecture was enlightening and informative. But I was alarmed to realize the chilling truth on the policies and direction of the Arroyo government. Antonio is obviously in support of the government, no doubt about it. I respect his intellect and expertise. I believe on his pronouncement. I know that he is credible.
But I am bothered because I saw it more clearly than ever! Thanks to Antonio. Our national government is too concerned on balancing our economy by increasing our dollar-income, but not from the export industry and SMEs, but from the sweat of our OFWs.
There is no wonder that this government is constantly looking for opportunities abroad for our human resources. TESDA, DOLE and POEA are also training and packaging people to send them abroad.
This is the chilling truth. In this administration, it is the people for the economy and not economy for the people. It is as crystal clear that the Arroyo administration is focusing its resources and efforts in EXPORTING Filipino workers so they could pump our economy. Yes, it is good report for an economist like PGMA. But no, it is not humanitarian and not healthy for our culture and for our development as a nation.
We are literally pushing our people abroad. We are encouraging them to leave their families and start rebuilding their lives in foreign lands. We are advocating brain-drain. We are sending our professionals, intellectuals and skilled workers in foreign lands.
Instead of strengthening and supporting our export industry and agricultural industry or increasing foreign investments to employ our people here in our country, as Antonio said, “why bother getting foreign investments?” Of course, the government doesn’t care.
This government is better off waiting for OFW remittances. It doesn’t care whether families are disintegrated. It is okay that almost everyone wants to migrate to other countries. It doesn’t care that the margin between the wealthy and those living below poverty line is growing. No, everything is immaterial.
What is important is to earn more OFW dollars to pump this country’s economy. READ: LET US EXPORT MORE PEOPLE. LET US EARN MORE DOLLARS.
This is the direction of the Arroyo administration. Now I will no longer raise an eyebrow when VP Noli de Castro seeks for the lifting of the Iraq ban on OFWs. Chilling. Alarming. But true.
It is indeed enlightening to hear such comforting words as we face hard times and continue to witness retrenchment in almost all industries nationwide. The economic briefing organized by the Subic Clark Alliance Development Council (SCADC) is a welcome note from the government. At least SCADC Chairman Edgardo Pamintuan has thought of providing adequate information to the private sector groups as well as the media in relation to the ongoing global crisis, US recession and its effect to the country.
Although Antonio does not totally reject the fact that we could get slight “pneumonia” from the US “flu,” he insisted that facing an economic crisis is all about attitude. He warned everyone to beware of the conventional wisdom and start checking the facts.
I am fortunate to get a free Economics 101 lecture during the briefing as Antonio brilliantly delivered his lecture in the easiest and most comprehensible way. He said that before we even jump into fear and hopelessness, we should assess the financial health of the economy.
The key indicators we need to know are: 1) cash position; 2) balance between income and expenses; and 3) access to other people’s money. And in macro-economics, just like in the case of running our country’s economy, these indicators translate to: 1) Gross and Net International Reserves (How much cash do we have in our reserves); 2) Current Account Balance (Balance between income and expenses in dollars); and Capital Account Balance (Balance between the flow of foreign capital).
According to Antonio, our country has a better cash position today because of the increasing cash reserves built up from surplus of income vs. spending. This was evident on how the public sector and private sector performed in sharing to the country’s income. He said there is an increased share of income from the private sector, which is a good indicator, while the national government has improved its collections.
Also, the improved spending habits of the private sector have also resulted to increased supply of funds that triggered interest rates to move down. And the end result, we have an almost stable peso-dollar rate.
Antonio said that although our exports were down recently and our country experiences small packets of “direct” and “indirect” affliction from the US crisis, our Overseas Filipino Workers (OFWs) have consistently earned dollars to pump our income.
He said the OFW remittances are increasing at rate of $1.4 billion a year. In 2007, our OFWs has contributed $14.4 billion or P730 billion to our overall income, or about 10 percent of our Gross Domestic Product (GDP). In 2008, our OFWs earned $16.4 billion for us and they are projecting the same for this year.
Antonio said that it is unlikely that our OFWs will be reduced because most of those working in US are teachers and nurses. They are in demand as compared to other workers. There are also millions of OFWs in other parts of the world.
So as it stands today, our country is earning more dollars than ever before because of our OFWs. Antonio said the export industry is losing money because “they are not competitive.” He even added that foreign investments dropped but “we have lived without it, so why bother?”
In short, he is saying that we have enough income and surplus to face the crisis but at the expense of our human resources.
The lecture was enlightening and informative. But I was alarmed to realize the chilling truth on the policies and direction of the Arroyo government. Antonio is obviously in support of the government, no doubt about it. I respect his intellect and expertise. I believe on his pronouncement. I know that he is credible.
But I am bothered because I saw it more clearly than ever! Thanks to Antonio. Our national government is too concerned on balancing our economy by increasing our dollar-income, but not from the export industry and SMEs, but from the sweat of our OFWs.
There is no wonder that this government is constantly looking for opportunities abroad for our human resources. TESDA, DOLE and POEA are also training and packaging people to send them abroad.
This is the chilling truth. In this administration, it is the people for the economy and not economy for the people. It is as crystal clear that the Arroyo administration is focusing its resources and efforts in EXPORTING Filipino workers so they could pump our economy. Yes, it is good report for an economist like PGMA. But no, it is not humanitarian and not healthy for our culture and for our development as a nation.
We are literally pushing our people abroad. We are encouraging them to leave their families and start rebuilding their lives in foreign lands. We are advocating brain-drain. We are sending our professionals, intellectuals and skilled workers in foreign lands.
Instead of strengthening and supporting our export industry and agricultural industry or increasing foreign investments to employ our people here in our country, as Antonio said, “why bother getting foreign investments?” Of course, the government doesn’t care.
This government is better off waiting for OFW remittances. It doesn’t care whether families are disintegrated. It is okay that almost everyone wants to migrate to other countries. It doesn’t care that the margin between the wealthy and those living below poverty line is growing. No, everything is immaterial.
What is important is to earn more OFW dollars to pump this country’s economy. READ: LET US EXPORT MORE PEOPLE. LET US EARN MORE DOLLARS.
This is the direction of the Arroyo administration. Now I will no longer raise an eyebrow when VP Noli de Castro seeks for the lifting of the Iraq ban on OFWs. Chilling. Alarming. But true.
