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PH Can multiply growth through Labor export industry support—report



MANILA, Philippines – A Group of prominent economists led by globalization expert John Paul C. Tanchanco report that the Philippines has the core competence to continue to be the strongest economy in Asia amidst European, US recession and slowdown of China.

“The Philippines is very unique. It’s a powerful labor export economy.  Evidently its market leadership through OFWs and BPOs shows that its core competence is its People … People Power” says Tanchanco, CEO of T1W and Makati’s BMBA charter President.

Tanchanco notes that the world is going through globalization.  His research shows that each country is moving towards its own core competence through the invisible hand. Further analysis presents that the Philippines’ core competence is its human resource.  The value for cost of human resource in the Philippines is very efficient compared to other countries in the market.

It has distinct leadership in quantitative qualities measuring work attitude, english proficiency, tenure, costs and efficiency. The country  is also among the most preferred by major industries of developed and even developing countries.

Japan External Trade Organization supports Tanchanco’s research and reported that the country has a lower average labor cost than China, Malaysia and Thailand with productivity and skills that are higher than most its neighboring countries.

“In this era of globalization, investors abroad continue to look for cost efficient ways to increase bottom lines and to connect to the global economy… Outsourcing and hiring Filipino workers are one of the best solutions that even our neighbor developing countries have considered very profitable.” Adds Tanchanco who also created the Overseas Filipino Investors Program that was spearheaded by Malacanang PMS a few years back.

The respected economist, Dr. Lawrence Dacuycuy, who is chair of De La Salle University School of Economics also supports their research and believes that the country’s diligent English speaking human resource is one of the key driver of Philippines growth and resiliency.

“For every job laid off in developed nations, more jobs are created in BPO countries such as the Philippines. Furthermore, foreigners have considered Filipinos to be the best choice for labor intensive jobs in other countries,” says Dr Dacuycuy

“Our tight family values and bayanihan culture has also made us unique because a large portion of OFWs income from abroad are always shared hence our robust Remittances of over $20 billion and growing.” adds Tanchanco

NSO data supports the economists showing that 32 percent of all OFWs in 2010 worked as laborers and unskilled workers and they also sent majority of the total remittance received by the country in that year. The remittance sent by laborers and unskilled workers comprised the biggest share with P20.6 billion or an average remittance of P39,000 per OFW.

“Remittance inflows can be used to stimulate more growth and distribute income through a compounded multiplier effect if used widely. A study done that I advised on showed that it can also help redistribute income and reduce Income Inequality if channeled properly,” says Dr Dacuycuy.

Numerous research and policy recommendations created by Tanchanco and Dacuycuy have presented that Labor Export is a core competency of the Philippines. The money inflows from this industry can have a greater multiplier effect if channeled wisely into Investments. If the remittances are not channeled wisely into more investment activity, their studies using Family Income Expenditure Survey data from 1988 to 2000 show that income inequality worsens.

World Bank confirms that Philippines has the highest income inequality in South East Asia.  Tanchanco’s study empirically validates that one factor that contributes to inequality is the Remittances.  It also states that one way the country can decrease inequality is through channeling of inflows from the Labor Export Industry.

The Labor Export Industry is comprised of both the OFW and BPO industry. Their studies state that if a good portion of the money inflows that come in through this industry are channeled into Investments such as Small and Micro Businesses and Real Estate Rental Investments then a higher multiplier effect and more equal redistribution of income can happen across the country to compliment the healthy Disposable Income they bring to boost the country’s Consumption Spending, growth rates, reduce poverty and income inequality.  This would also support the FDI’s and other Philippine industries that are growing such as Tourism, Agriculture, Real Estate, Retail and Manufacturing.  The multiplier effect can help the Philippines attain its MTPDP goal of 7-8% that can even surpass China’s growth rate.

“We hope that this information can inspire the stakeholders of the labor export industry, their families, financial institutions and LGUs to create ways to channel Labor Export Inflows into more investments as we unite in achieving more prosperity for ourselves and the county,” adds Tanchanco.

For more info you may contact T1W thru : +6329020987 or email tanchanco1world@yahoo.com. Website : www.tanchanco1world.net

T1W is the Expert authority on applied economics advisory and investing in the Philippines through alternative assets and commercial real estate.


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Tags: Business , economy , Labor

  • http://www.facebook.com/profile.php?id=1058712117 LordAnthony Espiña Arado

    whatever!

  • i_am_filipino

    Philippines is the only country in the world who still believe in the existence of the True God and God is helping our economy.

    • bundee

       I am God.  So I am true. I help Philippine economy with my taxes and my productivity.

  • bundee

    Mind Games for you:          The Jews exported their migrants to USA and they become the Lords at Wall Street and partly control US economy. The Chinese exported their “refugees” (do you really believe those were not part of plans?) to Asia and the Philippines and they become intsik, meaning the Big Bosses of the proud slave Pinoys.  Lots of Filipinos who have re-settled in other places are doing well and have buoyed up our financial liquidity as part of the “extended economy” due to our “extended family and social systems.”   Can’t you get any insight from that?  If not, then you have not travelled far except to backward Manila.  Or, your mind is stuck in something “safe and satisfying.”

  • adscity_info

    Tandaan nyo, ang mga OFW (especially domestic helpers) ang nagpababa ng tingin ng mga dayuhan sa lahing Pilipino. Simula ng dumami ang mga domestic helpers, ang tingin sa atin ay mababang uri ng tao.

  • Albert Einstien

    ang TAGAL ko ng sinasabi na ang hugePOPULATION ng OFW, MIGRANTS at BPO ang MAG-PAPAUNLADsa bansa  at magsave sa RP sa ECONOMIC COLLAPSE….$84 billion ang FC  reserve natin dahils sa kanla..iba yung mga negosyo at , expenses at purchases nila na nagpapalago sa ekonomya….yun nga lang gusto I-CREDIT GRAB ng noynoying govt…di na sila nahiya….

    • mojo76

      i disagree…in the 1st place ofw go abroad because there are no job in the philippine they dont have other means have no choice.yes we have huge manpower abroad but what job do they do majority work as domestic helper, construction industrial worker  etc. all in low paying job except if your in medical field.now are we proud of that kind of level job? i dont think so, but no choice coz he need to feed his family… it will be better if we have less population coz we can bargain a good salary coz you have a choice. beside it will be better if expat come to our country to work for us and not always us working with them and abuse us.

      • OFW28

        I disagree, let us accept that most of the OFW are DH and skilled worker but if you go to Singapore, Malaysia, ME, Vietnam, China and other countries in europe that cater for Oil & Gas industry, you will be amazed that most   engineers/designers are filipinos. Engineers working in an Oil & Gas company have better renumeration than in medical field now.

    • OFW28

      Tama ka dito ALBERT EINSTIEN, ito rin ang sinasabi ko na sana 1M per year ang magiging OFW, pag graduate 1 or 2 years work experience pwede ng OFW.

      Kung pwede nga magtayo ng UOFW, University para lang sa mga gustong maging OFW, kung ung isang nag comment dito eh gusto Bank of OFW, pwede rin University of OFW. 
      lols!!!

      Pero malika naman na ibili lahat ng armas ang USD84Bn na FX reserve natin, wag naman lahat!! hehehe

      Kung sa tingin natin eh wala tayong mahihintay na FDI, pwede na rin labor export

      • Albert Einstien

        korek my friend….habang di pa natin na tap mga resources natin…labor force muna… sige pwede na kalahi muna….he he…2500 ang fighter jets ng china dapat tapatan natin kahit 3500 na f-16 lang mura lang muna khit mga 5 na raptor f-22s  at 2 aircraft carriers na lang…nakakagigil e…madami un- used ang NATO & UN allies  pwede nating mabili 50% discount  baka ibigay nila…..

  • joboni96

    investment opportunities for overseas pilipinos
    ang pagtuunan ninyo

    para hindi mga intsik switik banks ang nakikinabang
    sa pinagpaguran ng mga pilipino

    1% interest per annum sa deposito nila
    bumili ang intsik switik bank ng government bonds
    3% mahigit per annum ang kita sa perang deposito ng pilipino

    nagpautang intsik switik bank sa gobyerno
    kumita na naman sa pera ng mga pilipino

    ang solusyon
    DIRECT RETAIL SALE OF GOVERNMENT BONDS TO PILIPINOS
    directly, not through intsik switik banks

    resulta
    1. higher interest earnings of pilipinos
    2. lower interest cost for government projects

    pero mastanga
    o piniperahan
    ang mga government financial officials
    at hindi ginagawa ito

  • igo_rot

    Maawa na po kayo sa mga pamilya ng mga OFW. Kawawa po ang mga bata na lumalaking walang gabay ng mga magulang.

    Ang kelangan po ng mga Pilipino ay desenteng trabaho sa Pilipinas. Pagod na po kami sa pagiging alipin at maltrato ng mga ibang bansa. Gusto na rin po naming umuwi.

    Sana ang mga susunod na henerasyon ng Pilipinas ay di na kaelangang lumayo sa pamilya para kumita at maitaguyod ng maayos ang pamilya.

    • OFW28

      Hindi naman lahat ng OFW eh may asawa at mga anak na, karamihan din mga single pa lang, kaya walang problema dyan pero mas marami pa rin talaga ang mga may mga anak at asawa. 

  • Fulpol

    Tanchanco is an expert? 

    what an idiot.. Tanchanco’s ideas have been discussed here in Disqus long time ago…

  • bundee

    The experts have spoken.  The pretenders (as usual) are in the state of intellectual  denial and dishonesty.

  • http://www.facebook.com/people/Pert-Cabatana/100001481611215 Pert Cabatana

    We have been doing labor export for much of the past 3-4 decades. It did not bring our economic development up to the level of South Korea nor Taiwan. Labor export merely served to arrest our economic decline. OFW remittance are used mostly for consumption (retail, housing, clothes, school supplies). It did not create the “compounded multiplier effect” that Tanchanco expects. This implies that some other major element is missing. And I don’t think it’s simply the channeling which he proposes that is the main missing element. For if OFW remittance promoted mostly consumption, it is because the amount of money earned by OFWs are just enough to meet the basic needs of the OFW dependents. Almost nothing is left for savings. Therefore, “channeling” cannot be the main missing element.  I believe that the main missing element is our country’s inability to innovate and create economic value through intellectual property. The thrust , therefore, should be to institute programs that will create more of such higher-value-added economic activities supported by massive innovation and generation of intellectual property.

    • bundee

      I agree with your “missing element” observation. But why intellectual property?  My missing element would be lack of government support-system for small and micro business. The remittances surely afford the families some savings but they are not assisted on how to go about doing small business to stir the economy. If they engage in small and micro productions, no assistance for markets are available.



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