PH Can multiply growth through Labor export industry support—report

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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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  • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

    what a pathetic study. this tanchauco idiot wants Filipinos to become commodities in this age of “globalization”. F U. Im a capitalist but to say “hey, we should export more people” is BS.

    And I dont agree with Philippines has the highest income inequality in Southeast Asia. Myanmar, Laos, Vietnam, Cambodia, East Timor – these countries are poorer than the Philippines and they absolutely have higher income inequalities. I have been to Cambodia and Laos and they are worse than Tondo. So this study is BS.

    This article should be scrapped.

  • http://www.facebook.com/profile.php?id=100003712489179 Michelle Martin

  • Meow Ming

    It means the Philippines should be a country of slaves forever.

    • Karabkatab

      It’s okay meow meow, as long as the slave is richer than the master.

  • rodben

    Tama ka lapu2 have you remember the PLANTERS PRODUCT INC.? This company are producing local agricultural needs( feltilizers, insecticides etc.) in Limay Bataan plant but after EDSA this plant was close and transfer in other ASIAN nation, the reason why our farmers now are selling there lands to the subdivision developers kasi baon na sila sa utang sa mahal ng mga farm needs na manhid ang gobyerno sa ngayon.

    • EdgarEdgar

      Don’t despair my friend. Things could get even worse in the agricultural sector. Noynoy and his appointed buddies in the Board of Investment granted very very generous tax incentives, import duty exemptions and other perks to a Thai group, Charoen Pokphand Group (CP), to set up mechanized poultry farms in the Philippines. In fact, the decision to grant incentives to the Thai company by this government completely bypassed the Agricultural Sec Procy Alcala. So generous were the concessions granted to the Thai company that local swine and chicken producers are now up in arms. All told, local poultry farmers, feeds producers, feeds commodity growers and many more will be affected. Sigh.

      • bundee

        You mean there is a trend to wipe off the poor local farmers from their own homeland? I did not realize that and C.P. is involved. What now is the leverage of the poor against the giant multinational businesses?  What is your take:  Will they be empowered by the RH-Bills now in the making?

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    With the kind of leaders we have … with the archaic church we have … our country will be invaded by squatters with at least a member of their families working abroad as OFWs earning a meager …even teachers resign to work as maids in Hongkong, Singapore.

    DON’T PASS THE RH BILL … let us self-destruct!!!

    • OFW28

      I don’t agree with you that some DH here in SG are former teachers in PH, a BS education graduate or let say a teacher can easily find a decent job, like cashier, sales lady and document controller etc.. 

      Based on your sample above, that teachers resign to work as maids means their salary as OFW is bigger compared to being a teacher in PH.   

  • Karabkatab

    Ang malungkot is, Philippine labor is just part of the equation.  They say our workforce is efficient. Meaning, we produce more kahit konti ang bayad.

  • EdgarEdgar

    John Paul Tanchanco sounds less like a globalization expert and more like the late pope who would surely oppose the RH bill. He uses economics to make his case against the RH bill. More procreation means more population which in turn means more labor supply to export. Another anti-RH bill ad masquerading as news.

  • rodben

    This is the realization of Pinas economic growth after EDSA, who will invest long time employment Industries in Pinas with very expensive electricity and red tape, only hotel and condominium, malls because they are not paying electricity and few contractual and no bebefits workers to be paid, thats why the long time economic growth of the gov’t ay naka depindi sa OFW’s and we are now second human exporter in the world and maybe two-four years later topnocher na ang Pinas.. this is PINAS DEMOCRACY..

  • http://pulse.yahoo.com/_BL2GYU35SO6HTJUEAUTXS3QFYM George Lapulapu

    the expert is not telling us the social cost of familaies separated by this policy….

    all over the world countries developed by strenthening their basic sectors (agriculture), and inudstry.. whereas, the Philippines is the only agroculture country that imports ait’s agrocutural needs….we exports cheap manpower (the country doe not even benefits from the knowledge and skills–we are not even a knowledged based economy…

    we are a country of consumers. we have billions of ofws money that are inot invested in knowedlge, techncology and capital formation..

    what the expert is saying is… the country should be dependent on other countries for it;’s basic needs (food) ….

    • bundee

      Agree.  Family systems and values are important for Filipino society.  We lack local support systems in agriculture and knowledge-based industry.  While the existing businesses are monopolized by the same family corporations dictating steep  prices and almost laissez-faire business strategies and expansion. Skilled, non-skilled, and professionals most often excel in their jobs abroad where systems are supportive. Our local systems are corrupt and chaotic.

  • Bonggebongge

    Anak ng Teteng tao na ang ine-export ng Pinas, ang mga sinasabing magagaling nato at experto…sila alang ang kumikita sa Pinas, hindi balanse ang pagkaka pakalap ng pera sa Pinas…wala bang pag aaral, pag susuri kung gaano kaapekto ang pag eexport ng tao sa Pamilya nila…yung hirap na dinadanas nila…sanhi ng depression, suicide, broken families…extra marital affairs, AIDS…etc….tang na nyo….expert G A go pakawala ka ni Enrile sa sinasabi mo….magpadami tayo ng magpadami para madaming OFW…

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