First World Philippines

[i am bob]

 

 

Around 15-20 years ago I predicted the "western" countries are "doomed" in the long run, because the countries can't live of producing services for the OWN citizens and send almost all production to low salary countries, mainly in South East Asia. 

 

So you were pretty wrong then by your own admission, seeing that the Western countries are richer than ever? Salaries are a meaningless way to measure a country's (lack of) competitiveness, it's productivity that matters. Industrialised Western countries like Germany or Switzerland are producing and exporting more than ever, despite the really high salaries. But the workers are well-trained, self-driven and highly specialised. Anyone who's ever worked in an "intelligent" industry knows that 1 qualified worker cannot be replaced by 5 unqualified workers. 

 

Unless Asian countries really boost their education system and productivity (like S.Korea, Taiwan, Japan, Singapore) their lower salaries won't automatically translate into economic growth, as the Philippines knows all too well. Only a combination of infrastructure, education, investment laws and political stability allows a country to reap the benefits of low wages (as Cambodia is currently doing, though even there textile workers are protesting violently for higher salaries)

Would you say it's the quality of education only or the massive "brain drain" that is the issue with quality workers? I myself think it's a matter of both but I was wondering how you and other see it...

[frosty (chris)]

Would you say it's the quality of education only or the massive "brain drain" that is the issue with quality workers? I myself think it's a matter of both but I was wondering how you and other see it...

 

 

Just for a minute forget about the corruption and the diabolical infrastructure here, if the PI is really serious about becoming a 1st world country it would be a good idea to get a 1st or maybe even a 2nd  world education system, because the system they have here now is oh, rubbish, jmho

[afathertobe]

 

 

Would you say it's the quality of education only or the massive "brain drain" that is the issue with quality workers? I myself think it's a matter of both but I was wondering how you and other see it... 

 

I think there are a huge number of very well qualified and intelligent workers abroad  that are where they are despite, not because of the education system. I have worked with and befriended some really smart, driven professionals from the Philippines that are truly globally competitive. A good friend from Switzerland grew up in really poor circumstances where his father often couldn't even afford to pay his lunch money for school. It seems certainly true that the brightest have long left the Philippines to have global careers. 

 

As a matter of fact my impression of Filipinos before and after actually visiting the Philippines has completely reversed, because I simply naively assumed that the ones I've met all over the world are representative of the country... if only that were true. 

 

They don't hate their country but as long as the Philippines doesn't create a legal and investment climate that encourages them to return it won't happen. Of course we can bemoan the lacking quality of local workers but they have a huge pool of expats that could return when the time is right. But just like Thailand the country is in the stranglehold of a local elite that has no incentive to invite competition into the country, because that would expose their mediocrity. 

Edited March 13, 2015 by afathertobe

[Thomas]

 

I suppouse the Phil politicians have missed to get MANY jobs to Phils  by: /huge corruption making business much UNNECESARY risky /crazy many steps needed to start business /stupid laws restricting foreigners to own more than 40 % of a many types of compamies, while the investment will still need to be 100 % to be started... 

 

Haven't directly dealt with corruption in the process of starting the business. Perhaps that is part of the benefit of being a really small startup, we're so small we fly under the radar? :D *crosses fingers*

 

The 40% rule is provincial and needs to go. There's simply not enough investment capital or business management expertise from what I can tell in the Philippines to have a turn-around on a massive scale from within the country. They need outside help badly. The 40% rule is bad for Filipinos and foreign investors alike. Missed opportunities everywhere!

 

Also, there is no formalized government office that can help a foreign investor consider investing in the country, or a business that wants to start up, transfer to or otherwise get operations going within the country. Why the government isn't open to formalizing the simplifying the process is beyond me.

I don't know what business type you are starting. 

Foreigners CAN own WHOLE "Export business"  (=The main part need to be exported.  (60 or 70 % ?))     Call Centers and such outsourced services through Internet are counted as "export" too.

 

The Philippines seem to have Departments/subdepartments for "everything"   :)  I know Departments have assisted some BIG investments e g within Call Centers, Energy Production and Product Manufactoring. I believe long time leased land big Agricultural Projects too. And e g the Deparrment of Agriculture is involved in some developing projects and they spread some knowledge for free too.

 

One Department is named something " ..... Investments"   but I didn't saved the link or memoriced the name, because they concentrate on investments with big minimum demands.

 

Have you checked Department of Trade and Industry?

http://www.dti.gov.ph/dti/index.php

Perhaps they have something useful for you.

[Thomas]

 

 

 

Around 15-20 years ago I predicted the "western" countries are "doomed" in the long run, because the countries can't live of producing services for the OWN citizens and send almost all production to low salary countries, mainly in South East Asia. 

 

So you were pretty wrong then by your own admission, seeing that the Western countries are richer than ever?

WHAT?!  There are a FEW exceptions  - STILL,..   :)    but e g:

/The EURO currency has HUGE problems. Some of the Euro countries would have gone "bankruptcy" if countries as Germany hadn't saved them to resque the Euro...   The basic problems are NOT solved, it was a CRISIS meeting about Greece RECENTLY, and the resquing paying countries start to get tired of it...

/In USA there are MANY POOR, who need to have MORE than one full time job to manage to pay the basics, and despite that USA LOAN MUCH to try to keep the living standard...

 

I don't know what the Asian currency values were 10-15 years ago, but US dollars DROPPED from around 11,5 ro 6,5 compared to Swedish krona  (some recovered now) and the SEK is LESS worth compared to pesos now than 2 years ago.

 

I haven't checked recently, but when I checked last the western stock markets HADN'T gone up compared to 12-14 years ago,

while SE Asia had developed rather GOOD...  (I have forgot the values, but the Philippine stock market had rather GOOD AVERAGE even when INCLUDE the fall 2008.  And I found several very profitable stock market companies in Thailand FAST, when I just made some EXAMPLES how to find winners, when I teached a thai woman how she could find good investments for her savings.)

 

There are MANY UNEMPLOYED in the "western countries".  How many percent depend of how counting. In many countries they try to HIDE the truth by trying to NOT count many of them to the unemployed group...   I believe it's SOME less bad now, but a few years ago the true values were around 20 % UNEMPLOYED in Sweden and that was BETTER than several of other West European countries...

Salaries are a meaningless way to measure a country's (lack of) competitiveness, it's productivity that matters. Industrialised Western countries like Germany or Switzerland are producing and exporting more than ever, despite the really high salaries. But the workers are well-trained, self-driven and highly specialised. Anyone who's ever worked in an "intelligent" industry knows that 1 qualified worker cannot be replaced by 5 unqualified workers.

Well. Corect it's SOME better in "western countries",

BUT workers costs + productivity has to be BAD compared SE Asia, because otherwice wouldn't many companies MOVE and KEEP MUCH production there...

 

MANY industries are NOT "intelligent"...   :)      

Unless Asian countries really boost their education system and productivity (like S.Korea, Taiwan, Japan, Singapore) their lower salaries won't automatically translate into economic growth, as the Philippines knows all too well. Only a combination of infrastructure, education, investment laws and political stability allows a country to reap the benefits of low wages (as Cambodia is currently doing, though even there textile workers are protesting violently for higher salaries)

  Corext it isn't automatic,

BUT the SE ASIAN countries you mension as "exceptions" who has MADE it, are A BIG PART of SE Asia...   :)

 

USA opened the trade with China, because USA thought they would get a positive trading ballance, but the RESULT became MUCH the OPPOSITE...

 

So I still claim my old prediction is CORECT   :)

[jpbago]

 

40% of the employed are estimated to be working in the informal sector."

 

Are you saying that 40% of the governments 'employed' figures are just guestimates on the number of people 'probably' working under the table?

 

 

That brings to memory of when VP Binay was suspended as mayor for hiring "ghost" workers at city hall. Now his son is suspended but disrespects the order as did PNP Purisma. These two suspensions are happening now, in the current time so is this progression or the same old thing. It is no wonder that others pay no heed to the law when they see this happening at the top.

[jpbago]

and a $ that has dropped in value by 25% in less than a year, are we in Canada any different than the Philippines?

 

The $ hasn't dropped by 25%. The US $ has risen against other world currencies. Don't be so negative. Add some water to your glass.

 

But when we have several Canadian senators looking at jail time for outright fraud on their expense accounts,

 

Justice will be served and that is a good thing. In PI, they get promotions instead.

[i am bob]

 

and a $ that has dropped in value by 25% in less than a year, are we in Canada any different than the Philippines?

 

The $ hasn't dropped by 25%. The US $ has risen against other world currencies. Don't be so negative. Add some water to your glass.

 

 

 

But when we have several Canadian senators looking at jail time for outright fraud on their expense accounts,

 

Justice will be served and that is a good thing. In PI, they get promotions instead.

 

 

Touche!

[Dave Hounddriver]

The $ hasn't dropped by 25%. The US $ has risen against other world currencies.

 

The Canadian $ has dropped against the peso.  The peso seems to be pegged to the US $.  It makes life harder for us Canadians but there is a market for bumper stickers in Canada that say:  Dear God let there be another oil boom.  I promise I won't piss all the profits away this time.

[jpbago]

 

The $ hasn't dropped by 25%. The US $ has risen against other world currencies.

 

The Canadian $ has dropped against the peso.  The peso seems to be pegged to the US $.  It makes life harder for us Canadians but there is a market for bumper stickers in Canada that say:  Dear God let there be another oil boom.  I promise I won't piss all the profits away this time.

 

 

Even recently when the C $ was worth $1.05 US, you still got more pesos for the US $ than for the C $. I thought maybe because of the volume of the exchanges.