From the Author: A great speech stems from the ability of the writer to research critical data that will add flavor to the material. This speech gives a brief background about what Marikina City has achieved since its inception.
Ms. Marides Carlos- Fernandez, Mayor of Marikina City;
Councilor Ponciano Ubaldo, Head of the LED-C ;
Council members of Marikina;
Fellow speakers, ladies and gentlemen;
A pleasant morning to all.
Thank you for inviting me to this very special event.
Marikina City has definitely gone a long way since the Jesuits first arrived here in 1630. Now, Marikina’s critical role in our national development is underscored by its notable achievements, having consistently won the Most Competitive Metro City in the Philippines Award given by AIM and having created the World’s Largest Pair of Shoes recognized by Guinness Book of World Records in 2002. Because of these, I know that many would now want to be in the shoes of Mayor Marides Carlos- Fernandez.
The drive for excellence of the people of Marikina will definitely be a shining beacon as we face the shockwaves of today’s global financial crisis.
Your theme: “Marikina City’s Network to Sustain Local Economy” is a timely call for all stakeholders to focus on solutions and strengthening partnerships rather than being fixated on the problems hounding the globe today.
Of course, we all know we live in a world of turbulence. Everywhere, from all parts of the globe, people talk about the global financial meltdown. Some even predict that unlike the 1907 Banker’s Panic and the 1929 depression, this will be the imminent economic Armageddon or the end of business as we know it.
But we must remember that the world survived two world wars and the global economy progressed exponentially until September 2008 when the sub prime crisis and its derivatives imploded. Over time it has been proven that economics is a cycle and sometimes problems heal by themselves and oftentimes nursed back to health by timely and effective intervention by government.
Recently, Iceland declared bankruptcy, the first and only country that I know which has done so. The member countries of G20, USA, Germany, Britain, France, Japan and some others officially declared recession. Other smaller economies admit an economic slowdown while others are still in denial.
Paul Krugman, an economist, says that the usual rules of economic policy no longer apply during depression or deep recession and I quote, “Virtue becomes vice, caution is risky, and prudence is folly.” He was, of course, referring to urgent public spending and the need for pump priming stimulus versus the need to balance the budget.
Today, the global capital market is a battle between fundamentals versus emotion. And for those who are affected, your best defense is to take your day-to-day feeling out of the picture.
Stop watching CNN and Bloomberg for a while to avoid an unnecessary anxiety. The cures are still troublesome because the saga is still unfolding. After $4.5 trillion bailout by financial authorities worldwide, the Citigroup- Amercia’s 2nd largest bank with $2 trillion in assets- is now being rescued with a $300 billion aid package. Meanwhile, China is in a sharp slowdown prompting it to issue its own $586B stimulus package over the next 2 years to boost consumer spending. Others followed with big band aid programs but these bailouts appear tentative as the ending is perpetually changing.
How many more countries will go into recession still remains to be seen. The contagion is just beginning. It is precisely because of this that nobody has, as yet, been able to determine the exact magnitude and depth of this crisis. Worst, the crisis grows and spreads across the globe- driven not so much by fundamentals but largely by fear and loss of trust in the whole financial system. The meltdown we are now seeing are not slow motion events. They are wild and chaotic with rapidly spreading side effects.
What then is the impact of all these developments on the Philippine economy? Let me enumerate 5 of them:
1. Slowdown in export growth as the economy of trading partners decline. (Our electronics which make up for more than 50% of our country’s total export recorded a decline).
2. Tightness in global credit markets resulting in high interest cost for new debts. (There is a 4% add- on on the LIBOR as country risk premium plus other charges which means new debts could be obtained at a cost between 11-17 % p.a.)
3. Flight of the speculative capital, hot money, or investment portfolio (More than a billion dollars left in the 1st eight months this year).
4. Decline in stock values (40% lost value compared to the pre-meltdown period).
5. Pressure on the peso and financial institutions with global investment exposure (Peso weakened to almost P50/ $ versus P42 a few months ago.)
Luckily, there are some mitigating factors that partially cushion the negative impact. I can cite 5:
1. Lower petroleum price (from a high of $147/ bbl, oil prices dropped to below $50.
2. Lower prices of imported steel and wheat. (Reducing cost of Construction and Food.)
3. Sustained and increased OFW remittance (at $1.5M/ mo. versus $1.2M- last year’s average.
4. High savings rate (at 26% of GDP)
5. Relatively strong banking system after the 1997 Asian currency crisis.
Given all these, we still need to face with confidence and courage the challenges of further mitigating the negative impact on the poor and vulnerable, sustaining job creation, and directing accumulated liquidity in the financial system to productive investments.
Undoubtedly, for the Philippines, the high growth we have experienced in the past is over and will not be back for some time as the world continues to struggle with the current financial turmoil.
With the expected sharp decline in consumer spending, government, in partnership with the private sector, must immediately pump prime the economy even with the threat of breaching the targeted budget deficit.
On this score, you will be pleased to know that in our PBC in October this year, PCCI proposed and government accepted to create a P100 billion stimulus package for infrastructure spending. The fund will be contributed 50/ 50 by GFIs and the private sector and the upside is, spending from this fund will not impact on the budget deficit. The mechanics and other details with respect to use, accountability and transparency, structure, sovereign guarantees, monitoring and control are still being worked out by PCCI with DOF, DBP, SSS, Landbank, GSIS, NEDA, and NDC in several meetings since early November. We hope to be on the ground early next year.
In addition, PCCI advocated and urges government economic planners to put our house in order and make our economy more resilient and globally competitive so that as the world turns for the better, we are ready to seize the opportunities.
In this regard, PCCI has identified and will focus in the next 2 years on 4 key basic areas: namely: Food, Infrastructure, Re-engineered Education, and Energy (or F.I.R.E.) Our advocacies in Tourism, Trade, Legislative Agenda, and other sectors will remain actively in place).
Why these 4 sectors?
First, Agriculture employs a third of our country’s workforce. Paradoxically, we teach other Asian neighbors scientific technology on rice production at IRRI, Los Baños. And yet we are the biggest rice importer in the world. We import 10% of our rice needs because we are losing 28% of our palay harvest due to poor and inefficient post- harvest facilities. Investing in such facilities to reduce losses will improve our chances of being a rice exporter once again.
Second, Infrastructure is a key factor that directly affects the country’s global competitiveness. An efficient transport network will reshape the country’s physical and economic configuration.
From fragmented island economies separated by mountains and seas, the country can develop a unified and integrated economy where people and goods can move and trade swiftly and efficiently.
Third, according to CHED, only 40% of the yearly 400,000 college graduates are able to land jobs within a year after graduation. The rest becomes part of the rising statistics of unemployment rate. This is caused by many factors, one of which is the mismatch between skills of our graduates and the requirement of the industry. PCCI has joined the Presidential Task Force on Education together with the Department of Education, TESDA, CHED and other stakeholders in the academe, and 8 selected industry champions (shipping, shipbuilding, wellness, steel, mining, tourism… to name some) who will participate in our skills upgrading program to address the mismatch.
Fourth, on Energy, PCCI advocates a predictable energy policy to level the playing field. We are drawing a roadmap to influence policy makers to achieve supply/ demand balance using the right and appropriate mix for our country’s power generation sector. This is aimed at promoting energy self- sufficiency at competitive cost.
As you can see, we are not helpless. We can even turn around adversity to opportunity. But all PCCI chambers, business organizations, and councils, government and all stakeholders must work together in perfect unity to endure and overcome the global economic turmoil. Let us not only look forward together. Let us journey together.
My best wishes for the success of your Education Summit.
Tuesday, March 3, 2009
Great Speeches: Public- Private Partnership: Looking Forward Together
Governor Casimiro A. Ynares III of the Province of Rizal
Prof. Virgilio Esguerra, Rizal Provincial Administrator
Ambassador William Co, Special Envoy for Agriculture Trade in China
Distinguished guests,
Ladies and gentlemen, good morning.
It is my honor and privilege to speak before you in the 1st Rizal Business Conference. We are holding this Conference at a very crucial moment of our history. Your theme on public private partnership, therefore, is both timely and relevant.
I always believed that we cannot solve the challenges of our times unless we solve them together – unless we cooperate and understand that we may have different stories to tell, but we hold common hopes and dreams.
At this point in our lives, a stronger partnership and unity is what we need. But of course, true unity cannot be so easily won. It starts with a change in attitudes - a broadening of our minds, and a broadening of our hearts.
On the Current Financial Crisis
Over the past few months, things did not turn out as we expected. The global financial crisis compounded the episode of rising oil and food prices that kicked up our inflation rate. Our exports dropped more than expected as our foreign markets shrunk. Investments in our stock markets evaporated. Foreign direct investments fell below target. Not surprisingly bureaucratic tangles delayed the public spending that was supposed to mitigate all these.
Although we have weathered the global financial crisis rather well the past few months, the adverse effects of slower economic growth in most of our main markets cannot be held completely at bay. We do expect a slower pace of growth in the forthcoming period. But recession might be quite another thing.
The commonly-accepted definition of a recession is two consecutive quarters without growth. By that definition, a recession in the Philippine economy is highly unlikely because we have maintained fiscal discipline and we have formulated the necessary monetary policy firewalls to avert whatever impact the crisis may present.
However, the US economy is generally considered to be in a recession even if it has not had two quarters without growth. It is considered to be in recession because of dramatic drops in consumer demand that will inevitably drag down prices, profits and production.
Our own consumer demand has shown signs of flagging. That is significant in our case because our previous growth has been largely consumer demand-driven, fueled by the steady inflow of remittances from our army of overseas workers. The steep rise in the prices of oil products since last year forced consumers to reallocate disposable income from other items of expenditure. People now would rather hold on to their money than spend it on non-essential products. That means producers of non-essentials have seen sales drop and feel the recession-like crunch more than others.
But oil prices are dropping dramatically. When the steep decline in oil prices reflect in a correction in consumer spending, our manufactures are likely to experience a fresh surge in demand.
Our agricultural sector is likely to post a lower growth compared to last year. It seems that the period of high inflation forced our farmers to cut back on fertilizer inputs, leading to lower yields.
In the Philippines, we have not seen any significant enterprise closures so far, despite the global turbulence. That is a good sign that the economy is weathering this storm quite well. Abroad, large companies have either shut down or laid off workers. In the US, unemployment has sharply risen.
The Philippines has, historically, performed beneath the average growth of the region. But a seven percent forecasted growth for our neighboring economies means that there will be enough economic activity around us to keep our economy trudging ahead.
Still, for many corporations, it will still feel like a recession. Credit remains tight, even as monetary authorities hold down interest rates. Demand for some sectors will remain sluggish. After all, no one is certain if the global financial crisis has hit bottom.
The trend towards a more substantial reduction in our economic growth is not without remedy. The important thing is not to be complacent.
As we begin to close the year, we see a deficit figure that could balloon larger than expected if not managed more effectively. The dollar has surged and the peso has weakened.
Year 2009 will be a challenging year, no doubt. Government has to adopt a proactive posture. Every concerned citizen must take cognizance of the challenge as much as the private sector has, and go beyond business-as-usual in proposing more programs that will enhance our efforts to mitigate the ill effects of an economic slowdown.
The night is not entirely black, fortunately. Against the odds, the volume of remittance inflows to the country increased rather than decreased last month. That means we can expect only a marginal decline in domestic consumer demand — or even an increase, to help compensate for the nosedive in our export revenues.
What PCCI is Doing
PCCI has not been a passive observer in all of these. In fact, we have fine-tuned our advocacies to effectively address these crucial matters.
In fact, the PCCI has pledged a P100-billion fund for human capital formation that would spur job creation and growth momentum. It is also a means to pump-prime the economy and shield the country amid the global economic slowdown.
Also, to sustain the country’s growth and global competitiveness, we have to go back to basics and focus on four key areas over the coming years of my Presidency. These critical areas are fundamental to meeting the challenges brought about by globalization and the need for enhanced competition. We have summarized these initiatives under what we call PCCI’s F.I.R.E. Programs for Competitiveness –
1. Food security and sufficiency
2. Infrastructure Development
3. Re-engineering the educational system; and
4. Energy self-sufficiency
Let me delve on them one by one:
Food Security and Sufficiency
Agriculture is considered as the fundamental source of employment and economic growth in the country. The development of this sector is, therefore, essential to any development effort geared towards the alleviation of poverty and enhancing the food security of the country.
Infrastructure Development
Infrastructure is one of the key factors that directly affect the country’s global competitiveness, ability to attract investments, and economic growth. An efficient transport network will reshape the country’s physical and economic configuration. From fragmented and island economies, the country will develop a unified and integrated economy where people and goods can move and trade swiftly and efficiently.
Re-engineering the Educational System
According to the Commission on Higher Education, only 40% college graduates are able to land jobs immediately after graduation. The rest join the increasing number of unemployed. This is caused by a plethora of causes, one of which is the mismatch between the available jobs in the market and skills of the graduates.
PCCI, through the Presidential Task Force on Education, will continue to be the catalyst in the promotion of a closer cooperation between higher education and industry that will generate commitments from both sides to prepare graduates for gainful employment or entrepreneurship. The coverage of this program and the private participation it requires need to be widened, simultaneous to enlarging PCCI’s role in Employment S.T.O.R.E ( or School to Office Response to Employment System) where industry demand for specific openings are matched under a ladderized system of job entry through on-the-job training or apprenticeship.
Energy Self-Sufficiency
PCCI’s main advocacy on energy is to reduce power generation, transmission, and distribution costs to the consumers. Over the long-term, there is the need to advocate for more energy infrastructure projects to meet growing demand, the expansion of oil and gas exploration activities and incentives for investments in renewable energy and alternative fuel development.
Concluding Statement
It may be argued that what we are experiencing right now is the dawn of a new political economy. This is a new milieu that has gone beyond conservatives and liberals. This new world order is about accepting that profound change had happened and it is high time politics, economics, culture, and international institutions reflected it. It is about new realities and old virtues. It will be the era of new rules necessitating the need for new partnerships and rekindling old ones.
Unity is something that we would have to earn through great effort and determination.
So we ask you that we walk together, march together, and join together in one united voice. Even the weak become strong when they are united. Let us become a living testament to what a strong business sector can do by acting in unity.
Together, starting today, let us finish the work that needs to be done.
Thank you very much and I wish you all a successful Conference.
Prof. Virgilio Esguerra, Rizal Provincial Administrator
Ambassador William Co, Special Envoy for Agriculture Trade in China
Distinguished guests,
Ladies and gentlemen, good morning.
It is my honor and privilege to speak before you in the 1st Rizal Business Conference. We are holding this Conference at a very crucial moment of our history. Your theme on public private partnership, therefore, is both timely and relevant.
I always believed that we cannot solve the challenges of our times unless we solve them together – unless we cooperate and understand that we may have different stories to tell, but we hold common hopes and dreams.
At this point in our lives, a stronger partnership and unity is what we need. But of course, true unity cannot be so easily won. It starts with a change in attitudes - a broadening of our minds, and a broadening of our hearts.
On the Current Financial Crisis
Over the past few months, things did not turn out as we expected. The global financial crisis compounded the episode of rising oil and food prices that kicked up our inflation rate. Our exports dropped more than expected as our foreign markets shrunk. Investments in our stock markets evaporated. Foreign direct investments fell below target. Not surprisingly bureaucratic tangles delayed the public spending that was supposed to mitigate all these.
Although we have weathered the global financial crisis rather well the past few months, the adverse effects of slower economic growth in most of our main markets cannot be held completely at bay. We do expect a slower pace of growth in the forthcoming period. But recession might be quite another thing.
The commonly-accepted definition of a recession is two consecutive quarters without growth. By that definition, a recession in the Philippine economy is highly unlikely because we have maintained fiscal discipline and we have formulated the necessary monetary policy firewalls to avert whatever impact the crisis may present.
However, the US economy is generally considered to be in a recession even if it has not had two quarters without growth. It is considered to be in recession because of dramatic drops in consumer demand that will inevitably drag down prices, profits and production.
Our own consumer demand has shown signs of flagging. That is significant in our case because our previous growth has been largely consumer demand-driven, fueled by the steady inflow of remittances from our army of overseas workers. The steep rise in the prices of oil products since last year forced consumers to reallocate disposable income from other items of expenditure. People now would rather hold on to their money than spend it on non-essential products. That means producers of non-essentials have seen sales drop and feel the recession-like crunch more than others.
But oil prices are dropping dramatically. When the steep decline in oil prices reflect in a correction in consumer spending, our manufactures are likely to experience a fresh surge in demand.
Our agricultural sector is likely to post a lower growth compared to last year. It seems that the period of high inflation forced our farmers to cut back on fertilizer inputs, leading to lower yields.
In the Philippines, we have not seen any significant enterprise closures so far, despite the global turbulence. That is a good sign that the economy is weathering this storm quite well. Abroad, large companies have either shut down or laid off workers. In the US, unemployment has sharply risen.
The Philippines has, historically, performed beneath the average growth of the region. But a seven percent forecasted growth for our neighboring economies means that there will be enough economic activity around us to keep our economy trudging ahead.
Still, for many corporations, it will still feel like a recession. Credit remains tight, even as monetary authorities hold down interest rates. Demand for some sectors will remain sluggish. After all, no one is certain if the global financial crisis has hit bottom.
The trend towards a more substantial reduction in our economic growth is not without remedy. The important thing is not to be complacent.
As we begin to close the year, we see a deficit figure that could balloon larger than expected if not managed more effectively. The dollar has surged and the peso has weakened.
Year 2009 will be a challenging year, no doubt. Government has to adopt a proactive posture. Every concerned citizen must take cognizance of the challenge as much as the private sector has, and go beyond business-as-usual in proposing more programs that will enhance our efforts to mitigate the ill effects of an economic slowdown.
The night is not entirely black, fortunately. Against the odds, the volume of remittance inflows to the country increased rather than decreased last month. That means we can expect only a marginal decline in domestic consumer demand — or even an increase, to help compensate for the nosedive in our export revenues.
What PCCI is Doing
PCCI has not been a passive observer in all of these. In fact, we have fine-tuned our advocacies to effectively address these crucial matters.
In fact, the PCCI has pledged a P100-billion fund for human capital formation that would spur job creation and growth momentum. It is also a means to pump-prime the economy and shield the country amid the global economic slowdown.
Also, to sustain the country’s growth and global competitiveness, we have to go back to basics and focus on four key areas over the coming years of my Presidency. These critical areas are fundamental to meeting the challenges brought about by globalization and the need for enhanced competition. We have summarized these initiatives under what we call PCCI’s F.I.R.E. Programs for Competitiveness –
1. Food security and sufficiency
2. Infrastructure Development
3. Re-engineering the educational system; and
4. Energy self-sufficiency
Let me delve on them one by one:
Food Security and Sufficiency
Agriculture is considered as the fundamental source of employment and economic growth in the country. The development of this sector is, therefore, essential to any development effort geared towards the alleviation of poverty and enhancing the food security of the country.
Infrastructure Development
Infrastructure is one of the key factors that directly affect the country’s global competitiveness, ability to attract investments, and economic growth. An efficient transport network will reshape the country’s physical and economic configuration. From fragmented and island economies, the country will develop a unified and integrated economy where people and goods can move and trade swiftly and efficiently.
Re-engineering the Educational System
According to the Commission on Higher Education, only 40% college graduates are able to land jobs immediately after graduation. The rest join the increasing number of unemployed. This is caused by a plethora of causes, one of which is the mismatch between the available jobs in the market and skills of the graduates.
PCCI, through the Presidential Task Force on Education, will continue to be the catalyst in the promotion of a closer cooperation between higher education and industry that will generate commitments from both sides to prepare graduates for gainful employment or entrepreneurship. The coverage of this program and the private participation it requires need to be widened, simultaneous to enlarging PCCI’s role in Employment S.T.O.R.E ( or School to Office Response to Employment System) where industry demand for specific openings are matched under a ladderized system of job entry through on-the-job training or apprenticeship.
Energy Self-Sufficiency
PCCI’s main advocacy on energy is to reduce power generation, transmission, and distribution costs to the consumers. Over the long-term, there is the need to advocate for more energy infrastructure projects to meet growing demand, the expansion of oil and gas exploration activities and incentives for investments in renewable energy and alternative fuel development.
Concluding Statement
It may be argued that what we are experiencing right now is the dawn of a new political economy. This is a new milieu that has gone beyond conservatives and liberals. This new world order is about accepting that profound change had happened and it is high time politics, economics, culture, and international institutions reflected it. It is about new realities and old virtues. It will be the era of new rules necessitating the need for new partnerships and rekindling old ones.
Unity is something that we would have to earn through great effort and determination.
So we ask you that we walk together, march together, and join together in one united voice. Even the weak become strong when they are united. Let us become a living testament to what a strong business sector can do by acting in unity.
Together, starting today, let us finish the work that needs to be done.
Thank you very much and I wish you all a successful Conference.
Great Speeches: ENTREPRENEURSHIP: KEY TO POVERTY ALLEVIATION
From the Author: Nowadays, speeches are commonly accompanied by powerpoint presentations. This speech will provide a good format for such speech.
(SLIDE 1)
Ladies and gentlemen, good afternoon!
Let me begin this session by congratulating the organizers – the Colombo Plan Staff College for Technical Education– for choosing and highlighting the theme on poverty alleviation. I am encouraged by the active participation of those who have come to attend this session that tackles a very important and timely topic for discussion.
This Forum is a reaffirmation of our unwavering commitment to public-private partnership in our mission to alleviate poverty in this country. The presence of many of the stakeholders here is heartening to note and reflects the keen interest that has been aroused by the topic. It is clear that our work for today will require the pooling of collective energies and forging of partnerships in fulfilling our desired goal of fighting the scourge of poverty.
(SLIDE 2)
Addressing the widespread poverty problem is the single most important policy challenge facing the Philippines. Not only is poverty high when benchmarked with other countries in Asia, but also its reduction is slow. While economic growth in most East and Southeast Asian countries has been remarkably rapid during the past 25 years, the same cannot be said for the Philippines. The country’s economic growth has been quite anemic, barely exceeding the population growth rate, which has continued to expand rapidly at 2.3 percent a year for most of the past two decades.
The glaring fact remains that in our country today, we still have a minority that has too much and a majority that has too little. This is evidenced by the fact that income inequalities have been rapidly increasing. As the old line goes, the rich are getting richer and the poor are sinking deeper into poverty. In 2006 alone, the US$ 12.4 billion net worth of the Philippines’ top 10 richest is equivalent to the combined annual income of the poorest 9.8 million households. Add to this the fact that according to the latest Family Income and Expenditure Survey (FIES) which revealed that the richest 20% of the population account for 53% of the total national income while the bottom 20% got only about 4.83%. This basically says that the income of the richest 10% of households is 21 times that of the poorest 10%.
We are very much aware of the ill effects that grinding and widespread poverty can bring to our country and its people. It can engulf communities and social sectors and maybe transmitted from one generation to another. It shortens life spans, dissipates the human spirit, erodes family and community values, and ultimately destroys the social and economic fabric of a nation.
On a side note, let me underscore, that as of December of last year, the SWS self-rated poverty incidence among Filipinos went down to 46% from 52%. This 6% decline in the country’s poverty was the lowest in 20 years. This is a solid proof that GMA’s administration has been doing its best and that anti-hunger and anti-poverty programs are on the right track. The crucial thing now is to focus our efforts on ways and means to spread the payback of this huge economic turnaround among the people, especially the poorest of the poor. These positive developments should trickle down. They should feel the benefits of the growing Philippine economy.
(SLIDE 3)
My presentation today will diverge from the usual discussions on why there is poverty in the country. Instead what I will accomplish is to introduce the concept of “entrepreneurship” as the key to alleviating poverty.
The concept of entrepreneurship is now attracting worldwide attention, as it has become one of the main drivers of economic growth. Entrepreneurship as I define it is simply the capacity to see an idea, an opportunity, and bringing in the capital, knowledge, partners and the managerial skills needed to develop and then making it sustainable.
The people that live in abject poverty on this planet is at 1.2 billion. If we are to attempt to address the issue of poverty with some degree of success, I believe history will tell us that we have no choice but to turn to and actively encourage entrepreneurial ventures. In the United States in the 1990’s, jobs were created not by large corporations but, rather, by entrepreneurs. From the economic development standpoint of advanced and developing countries including Japan, it explicitly indicates the decisive roles that entrepreneurship continue to play in economic growth.
(SLIDE 4)
There is a relationship between a country’s level of economic development and its level and type of entrepreneurial activity. At low levels of per capita GDP, the country’s industry is composed mainly of small-scale enterprises. When the per capita income increases, the industrialization and economies of scale will then allow larger and established firms to satisfy the increasing demand of growing markets.
Entrepreneurship -- through innovation -- contributes concrete and significant improvements in the quality of life. We must keep in mind that entrepreneurship does not just help at a micro level, in terms of creating stable and sustainable employment for individuals. At a macro level, it impacts positively in a nation's GDP. While entrepreneurship can deliver very positive changes in the lives of people at the grassroots level.
ENTREPRENEURSHIP: KEY TO POVERTY ALLEVIATION
(SLIDE 5)
In his book, The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits, C.K. Pralahad argued that by regarding the world's masses, who he terms "the bottom of the pyramid," as potential customers, businesses and the poor will be better off. To quote “For more than 50 years, the World Bank, donor nations, various aid agencies, national governments, and lately, civil society organizations have all fought the good fight but have not eradicated poverty ... If we stop thinking of the poor as victims or as a burden and start recognizing them as resilient and creative entrepreneurs and value-conscious consumers, a whole new world of opportunity will open up. Four billion poor can be the engine of the next round of global trade and prosperity ... [and] a source of innovations.”
Prahalad pegs the value of their purchasing power at around $13 trillion annually, an amount that exceeds the GDP of Japan, Germany, France, the United Kingdom, and Italy combined. As it exists today, the poor are essentially an under served market. Bringing them the products and services that they demand will not only be worthwhile to the companies providing these products and services, but will give the poor recognition that they lacked as a part of "the masses;" respect in the form of the dignity of attention and choices previously reserved for the middle-class and rich; and fair treatment in being freed from having to pay the “poverty penalty” whereby the poor have to pay a premium for the same products and services offered to the rich. Prahalad argues that "building self-esteem and entrepreneurial drive at the [bottom of the pyramid] is probably the most enduring contribution that the private sector can make" to poverty alleviation. Ignoring the poor does not help. Corporations and policy makers alike need to listen and respond to their needs instead of making assumptions about how they feel and what they require.
(SLIDE 6)
History is littered with examples of remarkable individuals who have turned possibilities into concrete success stories. In the Philippines, one such individual is PCCI’s very own Alfredo Yao who has overcome poverty through entrepreneurship.
PCCI’s ALFREDO YAO: FROM POVERTY TO ENTREPRENEUR
As an entrepreneur, Alfredo Yao has overcome challenges from competition, economic difficulties, technological obstacles, and personal limitations through courage and innovation. He turned every obstacle into opportunities and make realities out of dreams. He created business breakthroughs, thinking in terms of the service he could provide to help others uplift their lives. Over the years, he has helped produce new jobs, new products and new opportunities that have greatly influence the way we live.
Life dealt him a cruel hand early on, but he held on to his dreams, played his cards masterfully, and ended up with a winning hand. His father died when he was only 12 years old and his mother’s income as a sidewalk vendor could not support the family’s needs. As the eldest of six children, he was forced to work at an early age to augment the family income. He was able to go through elementary and high school with help from a relative. He dreamed of being a lawyer but poverty prevented him from pursuing a legal career. In fact, he was too poor to even complete a four-year chemical engineering degree. On his second year in college at the Mapua Institute of Technology, he needed to stop but this became a challenge for him. Rather, it made him stronger and more resourceful individual.
With his attitude, he kept his eyes open for opportunities that would help improve his family’s situation. He did odd jobs and worked at a warehouse of a packaging company. On one of his many trips to a printing press where his cousin worked at a warehouse, inspiration hit him. He saw potential in packaging business and decided to invest in a printing press. His mother loaned from a bank to buy a printing press for cellophane wrappers of biscuits and candies when he was only 17 years old. His printing business which he named after his mother Solemar grew steadily during its first 20 years and by 1966, he switched to plastic packaging.
At an exhibit in Germany in 1979, he was introduced to a new technology in packaging called “doy packs”. He saw great potential in the technology and bought one, but local juice manufacturers thought otherwise. Stuck with what seemed to be a useless piece of equipment, he decided to turn the situation into a golden opportunity. He came up with his own home-made juice products which were formulated literally in his own kitchen sink.
In Mach 1980, Zesto was launched. The unusual packaging caught the public’s interest and consumers thought the juice drinks were imported. In no time, demand for the products exceeded supply, and to stall delivery requests, he had to pretend that addition supplies were being held at customs.
Now, Zest-O is the worlds second biggest producer of natural fruit juice concentrate in doypack next to Capri Sonne, with flavors in orange, strawberry, pineapple, guyabano, mango, mango-orange, apple, grape, mango-calamansi, mango-lemonlime and calamansi.
The Philippine company is likewise expanding elsewhere in the fast-growing Asian region, particularly in China, Indonesia and Vietnam. Prior to the Dubai deal, Zest-O has earlier purchased another beverage company in China.
Today, Zesto juice drinks have a total of 12 different flavors and includes in its product line fruit sodas, purees, and kitchen condiments. It commands 80% of the total market for ready-to-drink juices in the country. The company also produces popular products like One Tea, Sunglo Juice Drink, Big 250 Juice Drink, and Plus! Juice Drink. It also exports mango purees to China, Australia, New Zealand, Korea, Singapore, the US, and Europe. It also produced sodas in can, from root beer to cola, but it is with fruit sodas that Zesto made its mark.
(SLIDE 7)
THE NEED FOR AN ENTREPRENEURSHIP REVOLUTION
I noticed that there is a bias against entrepreneurship in the Philippines. One of the reasons is that there is a lack of entrepreneurial mindset among Filipinos. We were told by our parents to study very hard so that one day we can get a job. And we tell our children to study very hard so that they can have a job, the children of our children. We tell the children that they should study to have a job. And this is passed on from generation to generation to generation, and that is why we have become a nation of employees. We like to serve. We like to be employed. If we cannot find employment in the Philippines, then we go out of the country. And there, in the other countries, we try to find employment.
Among us Filipinos, at the age of 30, we are asked, why haven’t you got a job? But among the Chinese, they are asked, why haven’t you got a business, yet?
These bottleneck can be addressed by sparking a revolution- not the type wherein you will seize a hotel and call for the government to step down- but an entrepreneurship revolution.
Let me now turn to the last part of my presentation. This will focus on what the PCCI is doing to foster entrepreneurship in the country.
Slide 8: PROPEL
The PCCI has initiated strong partnerships with government in “promoting regional opportunities for enterprise and livelihood development” or PROPEL.
Slide 9: Organizational Structure/Program Advisory Committee
Working closely with government, we established PROPEL’s Program Advisory Committee with the Department of Trade & Industry, Senator Kiko Pangilinan and the PCCI, as members.
The PROPEL Project envisions to create globally competitive SMEs which shall showcase the country, its people and its rich natural & human resources.
Slide 10: PCCI Initiatives
The project shall promote the opportunities available for creating and offering products and services to the global market through the transfer of technology, skills and management training, establishing and strengthening the supply chain, improved access to finance and capacity-building for business support organizations.
Slide 11: PCCI’s Advocacy and Networking
The PCCI’s focus is to make members of the organization become world-class businessmen. It will do so by making Philippine business globally competitive by resolving the issues of…
• COST of doing business
• Access to MARKET
• Access to FINANCE / FUNDS
• Access to TECHNOLOGY
• Access to INFORMATION / KNOWLEDGE
• Access to TQM in entrepreneurship
• ENVIRONMENT of doing business.
I have shared with you, at length, the economic benefits of encouraging entrepreneurship. We must realize, however, that entrepreneurship has elements that go beyond simple economics. We must always remember that entrepreneurship is more than just an economic term -- it is a way of thinking. Creating jobs, empowering people and giving individuals access to better lives for themselves and their children is a wonderful gift. A happier, fulfilled individual implies a happier fulfilled society. Entrepreneurs have the power to achieve great things. We must provide them the thrust. Entrepreneurs will emerge as the well-oiled wheels that will keep the economy going and the society efficiently running.
Indeed, entrepreneurship is not simply a notion. Today, it has become a dynamic, developing part of the economy. Entrepreneurship is a way of inspiring creative individuals to pursue opportunities despite its risks.
In ending, let me challenge the Colombo Plan Staff College for Technical Education leadership to take up the lead in accelerating our economic and social reforms through entrepreneurship. Let me challenge you to blaze a trail to prosperity that will be sustainable. Let me challenge you to dedicate your time, talent and your energies- to this crusade we would like to begin- to win for our people the good and prosperous society they deserve- and for our country to regain a respected and enhanced position in the world community.
Thank you and mabuhay po tayong lahat!
(SLIDE 1)
Ladies and gentlemen, good afternoon!
Let me begin this session by congratulating the organizers – the Colombo Plan Staff College for Technical Education– for choosing and highlighting the theme on poverty alleviation. I am encouraged by the active participation of those who have come to attend this session that tackles a very important and timely topic for discussion.
This Forum is a reaffirmation of our unwavering commitment to public-private partnership in our mission to alleviate poverty in this country. The presence of many of the stakeholders here is heartening to note and reflects the keen interest that has been aroused by the topic. It is clear that our work for today will require the pooling of collective energies and forging of partnerships in fulfilling our desired goal of fighting the scourge of poverty.
(SLIDE 2)
Addressing the widespread poverty problem is the single most important policy challenge facing the Philippines. Not only is poverty high when benchmarked with other countries in Asia, but also its reduction is slow. While economic growth in most East and Southeast Asian countries has been remarkably rapid during the past 25 years, the same cannot be said for the Philippines. The country’s economic growth has been quite anemic, barely exceeding the population growth rate, which has continued to expand rapidly at 2.3 percent a year for most of the past two decades.
The glaring fact remains that in our country today, we still have a minority that has too much and a majority that has too little. This is evidenced by the fact that income inequalities have been rapidly increasing. As the old line goes, the rich are getting richer and the poor are sinking deeper into poverty. In 2006 alone, the US$ 12.4 billion net worth of the Philippines’ top 10 richest is equivalent to the combined annual income of the poorest 9.8 million households. Add to this the fact that according to the latest Family Income and Expenditure Survey (FIES) which revealed that the richest 20% of the population account for 53% of the total national income while the bottom 20% got only about 4.83%. This basically says that the income of the richest 10% of households is 21 times that of the poorest 10%.
We are very much aware of the ill effects that grinding and widespread poverty can bring to our country and its people. It can engulf communities and social sectors and maybe transmitted from one generation to another. It shortens life spans, dissipates the human spirit, erodes family and community values, and ultimately destroys the social and economic fabric of a nation.
On a side note, let me underscore, that as of December of last year, the SWS self-rated poverty incidence among Filipinos went down to 46% from 52%. This 6% decline in the country’s poverty was the lowest in 20 years. This is a solid proof that GMA’s administration has been doing its best and that anti-hunger and anti-poverty programs are on the right track. The crucial thing now is to focus our efforts on ways and means to spread the payback of this huge economic turnaround among the people, especially the poorest of the poor. These positive developments should trickle down. They should feel the benefits of the growing Philippine economy.
(SLIDE 3)
My presentation today will diverge from the usual discussions on why there is poverty in the country. Instead what I will accomplish is to introduce the concept of “entrepreneurship” as the key to alleviating poverty.
The concept of entrepreneurship is now attracting worldwide attention, as it has become one of the main drivers of economic growth. Entrepreneurship as I define it is simply the capacity to see an idea, an opportunity, and bringing in the capital, knowledge, partners and the managerial skills needed to develop and then making it sustainable.
The people that live in abject poverty on this planet is at 1.2 billion. If we are to attempt to address the issue of poverty with some degree of success, I believe history will tell us that we have no choice but to turn to and actively encourage entrepreneurial ventures. In the United States in the 1990’s, jobs were created not by large corporations but, rather, by entrepreneurs. From the economic development standpoint of advanced and developing countries including Japan, it explicitly indicates the decisive roles that entrepreneurship continue to play in economic growth.
(SLIDE 4)
There is a relationship between a country’s level of economic development and its level and type of entrepreneurial activity. At low levels of per capita GDP, the country’s industry is composed mainly of small-scale enterprises. When the per capita income increases, the industrialization and economies of scale will then allow larger and established firms to satisfy the increasing demand of growing markets.
Entrepreneurship -- through innovation -- contributes concrete and significant improvements in the quality of life. We must keep in mind that entrepreneurship does not just help at a micro level, in terms of creating stable and sustainable employment for individuals. At a macro level, it impacts positively in a nation's GDP. While entrepreneurship can deliver very positive changes in the lives of people at the grassroots level.
ENTREPRENEURSHIP: KEY TO POVERTY ALLEVIATION
(SLIDE 5)
In his book, The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits, C.K. Pralahad argued that by regarding the world's masses, who he terms "the bottom of the pyramid," as potential customers, businesses and the poor will be better off. To quote “For more than 50 years, the World Bank, donor nations, various aid agencies, national governments, and lately, civil society organizations have all fought the good fight but have not eradicated poverty ... If we stop thinking of the poor as victims or as a burden and start recognizing them as resilient and creative entrepreneurs and value-conscious consumers, a whole new world of opportunity will open up. Four billion poor can be the engine of the next round of global trade and prosperity ... [and] a source of innovations.”
Prahalad pegs the value of their purchasing power at around $13 trillion annually, an amount that exceeds the GDP of Japan, Germany, France, the United Kingdom, and Italy combined. As it exists today, the poor are essentially an under served market. Bringing them the products and services that they demand will not only be worthwhile to the companies providing these products and services, but will give the poor recognition that they lacked as a part of "the masses;" respect in the form of the dignity of attention and choices previously reserved for the middle-class and rich; and fair treatment in being freed from having to pay the “poverty penalty” whereby the poor have to pay a premium for the same products and services offered to the rich. Prahalad argues that "building self-esteem and entrepreneurial drive at the [bottom of the pyramid] is probably the most enduring contribution that the private sector can make" to poverty alleviation. Ignoring the poor does not help. Corporations and policy makers alike need to listen and respond to their needs instead of making assumptions about how they feel and what they require.
(SLIDE 6)
History is littered with examples of remarkable individuals who have turned possibilities into concrete success stories. In the Philippines, one such individual is PCCI’s very own Alfredo Yao who has overcome poverty through entrepreneurship.
PCCI’s ALFREDO YAO: FROM POVERTY TO ENTREPRENEUR
As an entrepreneur, Alfredo Yao has overcome challenges from competition, economic difficulties, technological obstacles, and personal limitations through courage and innovation. He turned every obstacle into opportunities and make realities out of dreams. He created business breakthroughs, thinking in terms of the service he could provide to help others uplift their lives. Over the years, he has helped produce new jobs, new products and new opportunities that have greatly influence the way we live.
Life dealt him a cruel hand early on, but he held on to his dreams, played his cards masterfully, and ended up with a winning hand. His father died when he was only 12 years old and his mother’s income as a sidewalk vendor could not support the family’s needs. As the eldest of six children, he was forced to work at an early age to augment the family income. He was able to go through elementary and high school with help from a relative. He dreamed of being a lawyer but poverty prevented him from pursuing a legal career. In fact, he was too poor to even complete a four-year chemical engineering degree. On his second year in college at the Mapua Institute of Technology, he needed to stop but this became a challenge for him. Rather, it made him stronger and more resourceful individual.
With his attitude, he kept his eyes open for opportunities that would help improve his family’s situation. He did odd jobs and worked at a warehouse of a packaging company. On one of his many trips to a printing press where his cousin worked at a warehouse, inspiration hit him. He saw potential in packaging business and decided to invest in a printing press. His mother loaned from a bank to buy a printing press for cellophane wrappers of biscuits and candies when he was only 17 years old. His printing business which he named after his mother Solemar grew steadily during its first 20 years and by 1966, he switched to plastic packaging.
At an exhibit in Germany in 1979, he was introduced to a new technology in packaging called “doy packs”. He saw great potential in the technology and bought one, but local juice manufacturers thought otherwise. Stuck with what seemed to be a useless piece of equipment, he decided to turn the situation into a golden opportunity. He came up with his own home-made juice products which were formulated literally in his own kitchen sink.
In Mach 1980, Zesto was launched. The unusual packaging caught the public’s interest and consumers thought the juice drinks were imported. In no time, demand for the products exceeded supply, and to stall delivery requests, he had to pretend that addition supplies were being held at customs.
Now, Zest-O is the worlds second biggest producer of natural fruit juice concentrate in doypack next to Capri Sonne, with flavors in orange, strawberry, pineapple, guyabano, mango, mango-orange, apple, grape, mango-calamansi, mango-lemonlime and calamansi.
The Philippine company is likewise expanding elsewhere in the fast-growing Asian region, particularly in China, Indonesia and Vietnam. Prior to the Dubai deal, Zest-O has earlier purchased another beverage company in China.
Today, Zesto juice drinks have a total of 12 different flavors and includes in its product line fruit sodas, purees, and kitchen condiments. It commands 80% of the total market for ready-to-drink juices in the country. The company also produces popular products like One Tea, Sunglo Juice Drink, Big 250 Juice Drink, and Plus! Juice Drink. It also exports mango purees to China, Australia, New Zealand, Korea, Singapore, the US, and Europe. It also produced sodas in can, from root beer to cola, but it is with fruit sodas that Zesto made its mark.
(SLIDE 7)
THE NEED FOR AN ENTREPRENEURSHIP REVOLUTION
I noticed that there is a bias against entrepreneurship in the Philippines. One of the reasons is that there is a lack of entrepreneurial mindset among Filipinos. We were told by our parents to study very hard so that one day we can get a job. And we tell our children to study very hard so that they can have a job, the children of our children. We tell the children that they should study to have a job. And this is passed on from generation to generation to generation, and that is why we have become a nation of employees. We like to serve. We like to be employed. If we cannot find employment in the Philippines, then we go out of the country. And there, in the other countries, we try to find employment.
Among us Filipinos, at the age of 30, we are asked, why haven’t you got a job? But among the Chinese, they are asked, why haven’t you got a business, yet?
These bottleneck can be addressed by sparking a revolution- not the type wherein you will seize a hotel and call for the government to step down- but an entrepreneurship revolution.
Let me now turn to the last part of my presentation. This will focus on what the PCCI is doing to foster entrepreneurship in the country.
Slide 8: PROPEL
The PCCI has initiated strong partnerships with government in “promoting regional opportunities for enterprise and livelihood development” or PROPEL.
Slide 9: Organizational Structure/Program Advisory Committee
Working closely with government, we established PROPEL’s Program Advisory Committee with the Department of Trade & Industry, Senator Kiko Pangilinan and the PCCI, as members.
The PROPEL Project envisions to create globally competitive SMEs which shall showcase the country, its people and its rich natural & human resources.
Slide 10: PCCI Initiatives
The project shall promote the opportunities available for creating and offering products and services to the global market through the transfer of technology, skills and management training, establishing and strengthening the supply chain, improved access to finance and capacity-building for business support organizations.
Slide 11: PCCI’s Advocacy and Networking
The PCCI’s focus is to make members of the organization become world-class businessmen. It will do so by making Philippine business globally competitive by resolving the issues of…
• COST of doing business
• Access to MARKET
• Access to FINANCE / FUNDS
• Access to TECHNOLOGY
• Access to INFORMATION / KNOWLEDGE
• Access to TQM in entrepreneurship
• ENVIRONMENT of doing business.
I have shared with you, at length, the economic benefits of encouraging entrepreneurship. We must realize, however, that entrepreneurship has elements that go beyond simple economics. We must always remember that entrepreneurship is more than just an economic term -- it is a way of thinking. Creating jobs, empowering people and giving individuals access to better lives for themselves and their children is a wonderful gift. A happier, fulfilled individual implies a happier fulfilled society. Entrepreneurs have the power to achieve great things. We must provide them the thrust. Entrepreneurs will emerge as the well-oiled wheels that will keep the economy going and the society efficiently running.
Indeed, entrepreneurship is not simply a notion. Today, it has become a dynamic, developing part of the economy. Entrepreneurship is a way of inspiring creative individuals to pursue opportunities despite its risks.
In ending, let me challenge the Colombo Plan Staff College for Technical Education leadership to take up the lead in accelerating our economic and social reforms through entrepreneurship. Let me challenge you to blaze a trail to prosperity that will be sustainable. Let me challenge you to dedicate your time, talent and your energies- to this crusade we would like to begin- to win for our people the good and prosperous society they deserve- and for our country to regain a respected and enhanced position in the world community.
Thank you and mabuhay po tayong lahat!
Great Speeches: Credit Management- Key to Philippine Global Competitiveness
From the author: Oftentimes, the key to formulating a great speech is including stories that will touch the hearts and funny bone of your audience. Look at how the anecdote on the tiger in jungle was used to drive home the point about competitiveness.
Distinguished guests,
Ladies and Gentlemen, good afternoon.
When I hear the word competitiveness, one story always comes into my mind. It is the story of two friends who were trapped in a jungle. When they were about to stand up and find their way out of the jungle, a tiger appeared from out of nowhere and gave them an angry and threatening look. One guy immediately put on his running shoes. The other guy was startled to see his companion putting on his rubber shoes. He asked “ What is the point in putting on your running shoes when we know fully well that we cannot outrun the tiger?” The guy smiled and said, “ Well, I don’t need to outrun the tiger. I only need to outrun you.”
(Laughter)
A look at the global scenario would dictate that the Philippines has been outrun and outranked by its neighbors in Asia. Globally, the Philippines has been ranked by the latest World Competitiveness Council at 49th place out of 61 economies that were rated. In the 2005-2006 Global Competitiveness Report, the Philippines ranked a poor number 77 overall, out of 117 countries. In the neighborhood in the GC Report, it ranks second lowest at number 73 beneath Hong Kong, Indonesia, Korea, Malaysia, Singapore, Taiwan and Thailand. It is only a notch over Vietnam that landed on 74th place. In short, it has slipped to the lowest one-third of all developed and developing nations in the world trade and investments Olympics.
The easiest and most convenient way out would have been to point fingers and blame others for the dismal performance. However, we at PCCI saw this as an opportunity to unite the different sectors of our society to rally behind a common goal. We have decided that what we need is a national action program based on well-defined and doable goals measured against a specific timeline.
All these efforts towards charting a roadmap for competitiveness culminated into the National Competitiveness Summit.
One of the outputs of the Summit was the determination of eight major pillars that needed to be developed in order to quench our thirst for competitiveness. These are the following: Competitive Human Resources, Efficient Public and Private Sector Management, Effective Access to Financing, Improved Transaction Costs and Flows/Anti Red Tape, Seamless Infrastructure Network, Energy Cost Competitiveness and Self Sufficiency, Ombudsman and the Judiciary, and Legislation. Let me briefly discuss some of these pillars and update you on what has been done to address the issues surrounding them.
People:
With regards to Competitive Human Resources, the first step we took was to address the problem of mismatch not only between skills needed by different segments of the economy and those held by able-bodied Filipinos but also the mismatch between where the jobs are and where the qualified jobseekers are. A BALIK-PINAS program that offers competitive pay to the best and brightest among Filipino expats has now been worked upon to serve as an anchor to rejuvenate a brain-drained nation.
Transaction Costs and Flows:
In terms of Transaction Costs and Flows, we, at the Anti Red Tape Task Force, together with other front-line government agencies, have made it our mission to streamline systems and remove red tape in local government units and in all national agencies dealing with business-related matters.
Financing:
Financing is one of the identified sources of competitiveness. It cuts across the factors of competitiveness since it covers both public and private investments. Public Finance in the Philippines ranks 58th in the 2006 World Competitiveness Yearbook, while Finance under Business Efficiency ranks 55th. PCCI has become the most ideal conduit in bringing forward government’s various policy reform initiatives and services for the benefit of the small and medium enterprises in the country. We will continue to be so
Management:
Along with the other sources of competitiveness, Philippine management practices, which is ranked 40th in the World Competitiveness Yearbook, is considered as one major weakness. Management issues were divided under public and private sector classifications.
Under the public sector, issues on government inefficiency in terms of transparency, bureaucracy, judicial system, local governance, peace and order and policy direction were identified.
For private sector management, common issues on labor, productivity, entrepreneurship, health, safety and environment, credit, attitude/values and credibility of managers were persistent factors.
Judiciary:
The problems in our judicial system are also a matter of concern in our drive for competitiveness. In the business sector, unnecessary expenses caused by unending litigation, not to mention payment of attorney’s fees, place a heavy burden on the cost of doing business. The slow turning of the wheels of justice through endless postponements of cases and legal maneuverings discourage foreign investors from doing business in our country.
Indeed, there is a need to reduce, if not totally eliminate, delay in the adjudication of cases in all levels. With the appointment of Atty. Mike Varela as the champion for the Judiciary in the National Competitiveness Council, we are assured that the business sector’s voice will be heard.
Definitely, it will take everyone’s collective effort to make our lofty goals a reality. Any task, no matter how daunting, will seem small if everyone will pledge their dedication for competitiveness. This is why we are very glad that CMAP has chosen the theme, Credit Management: Key to Philippine Global Competitiveness.
During the past years, the international marketplace has become increasingly competitive as more and more companies worldwide are finding it necessary to innovate and adapt global standards in order to maintain profitability and growth. This has required continuous vigilance of organizations in ensuring that every organization’s credit management system is able to meet the demands and expectations of clients.
We laud the CMAP for being instrumental in enhancing the current stability and commercial use of credit cards and other credit facilities in Philippine business.
Credit management today plays a crucial part in the value chain of businesses. It needs to be continually improved to cater to the general preferences of consumers and, at the same time, ensure a continued flow of capital for merchants.
Presently, 12% of the consuming public are credit card holders. The industry is expected to grow exponentially within the following years along with the growth of the Philippine economy as our per capita income improves. It is imperative that we formulate effective mechanisms that would promote and encourage credit card use as a widely acceptable alternative mode of payment for consumers. It is now up to the excellent leadership of CMAP to sharpen the skills of its members into an innovative level for them to successfully implement credit systems at par with global standards.
In the long run, I am cautiously optimistic that we will rise to the challenges as we had done so since the dawn of our country’s history. I know that it will not be easy, but, as always, I know that we never turn from adversity. We always rise to the occasion no matter what the circumstances, a quality it seems integrated in the character of every Filipino.
Again, the PCCI congratulates the CMAP in its Diamond Jubilee. The Chamber is more than willing to partner with you as we chart and thread a common direction towards economic growth and a better life for the Filipino people.
Thank you and mabuhay!
Distinguished guests,
Ladies and Gentlemen, good afternoon.
When I hear the word competitiveness, one story always comes into my mind. It is the story of two friends who were trapped in a jungle. When they were about to stand up and find their way out of the jungle, a tiger appeared from out of nowhere and gave them an angry and threatening look. One guy immediately put on his running shoes. The other guy was startled to see his companion putting on his rubber shoes. He asked “ What is the point in putting on your running shoes when we know fully well that we cannot outrun the tiger?” The guy smiled and said, “ Well, I don’t need to outrun the tiger. I only need to outrun you.”
(Laughter)
A look at the global scenario would dictate that the Philippines has been outrun and outranked by its neighbors in Asia. Globally, the Philippines has been ranked by the latest World Competitiveness Council at 49th place out of 61 economies that were rated. In the 2005-2006 Global Competitiveness Report, the Philippines ranked a poor number 77 overall, out of 117 countries. In the neighborhood in the GC Report, it ranks second lowest at number 73 beneath Hong Kong, Indonesia, Korea, Malaysia, Singapore, Taiwan and Thailand. It is only a notch over Vietnam that landed on 74th place. In short, it has slipped to the lowest one-third of all developed and developing nations in the world trade and investments Olympics.
The easiest and most convenient way out would have been to point fingers and blame others for the dismal performance. However, we at PCCI saw this as an opportunity to unite the different sectors of our society to rally behind a common goal. We have decided that what we need is a national action program based on well-defined and doable goals measured against a specific timeline.
All these efforts towards charting a roadmap for competitiveness culminated into the National Competitiveness Summit.
One of the outputs of the Summit was the determination of eight major pillars that needed to be developed in order to quench our thirst for competitiveness. These are the following: Competitive Human Resources, Efficient Public and Private Sector Management, Effective Access to Financing, Improved Transaction Costs and Flows/Anti Red Tape, Seamless Infrastructure Network, Energy Cost Competitiveness and Self Sufficiency, Ombudsman and the Judiciary, and Legislation. Let me briefly discuss some of these pillars and update you on what has been done to address the issues surrounding them.
People:
With regards to Competitive Human Resources, the first step we took was to address the problem of mismatch not only between skills needed by different segments of the economy and those held by able-bodied Filipinos but also the mismatch between where the jobs are and where the qualified jobseekers are. A BALIK-PINAS program that offers competitive pay to the best and brightest among Filipino expats has now been worked upon to serve as an anchor to rejuvenate a brain-drained nation.
Transaction Costs and Flows:
In terms of Transaction Costs and Flows, we, at the Anti Red Tape Task Force, together with other front-line government agencies, have made it our mission to streamline systems and remove red tape in local government units and in all national agencies dealing with business-related matters.
Financing:
Financing is one of the identified sources of competitiveness. It cuts across the factors of competitiveness since it covers both public and private investments. Public Finance in the Philippines ranks 58th in the 2006 World Competitiveness Yearbook, while Finance under Business Efficiency ranks 55th. PCCI has become the most ideal conduit in bringing forward government’s various policy reform initiatives and services for the benefit of the small and medium enterprises in the country. We will continue to be so
Management:
Along with the other sources of competitiveness, Philippine management practices, which is ranked 40th in the World Competitiveness Yearbook, is considered as one major weakness. Management issues were divided under public and private sector classifications.
Under the public sector, issues on government inefficiency in terms of transparency, bureaucracy, judicial system, local governance, peace and order and policy direction were identified.
For private sector management, common issues on labor, productivity, entrepreneurship, health, safety and environment, credit, attitude/values and credibility of managers were persistent factors.
Judiciary:
The problems in our judicial system are also a matter of concern in our drive for competitiveness. In the business sector, unnecessary expenses caused by unending litigation, not to mention payment of attorney’s fees, place a heavy burden on the cost of doing business. The slow turning of the wheels of justice through endless postponements of cases and legal maneuverings discourage foreign investors from doing business in our country.
Indeed, there is a need to reduce, if not totally eliminate, delay in the adjudication of cases in all levels. With the appointment of Atty. Mike Varela as the champion for the Judiciary in the National Competitiveness Council, we are assured that the business sector’s voice will be heard.
Definitely, it will take everyone’s collective effort to make our lofty goals a reality. Any task, no matter how daunting, will seem small if everyone will pledge their dedication for competitiveness. This is why we are very glad that CMAP has chosen the theme, Credit Management: Key to Philippine Global Competitiveness.
During the past years, the international marketplace has become increasingly competitive as more and more companies worldwide are finding it necessary to innovate and adapt global standards in order to maintain profitability and growth. This has required continuous vigilance of organizations in ensuring that every organization’s credit management system is able to meet the demands and expectations of clients.
We laud the CMAP for being instrumental in enhancing the current stability and commercial use of credit cards and other credit facilities in Philippine business.
Credit management today plays a crucial part in the value chain of businesses. It needs to be continually improved to cater to the general preferences of consumers and, at the same time, ensure a continued flow of capital for merchants.
Presently, 12% of the consuming public are credit card holders. The industry is expected to grow exponentially within the following years along with the growth of the Philippine economy as our per capita income improves. It is imperative that we formulate effective mechanisms that would promote and encourage credit card use as a widely acceptable alternative mode of payment for consumers. It is now up to the excellent leadership of CMAP to sharpen the skills of its members into an innovative level for them to successfully implement credit systems at par with global standards.
In the long run, I am cautiously optimistic that we will rise to the challenges as we had done so since the dawn of our country’s history. I know that it will not be easy, but, as always, I know that we never turn from adversity. We always rise to the occasion no matter what the circumstances, a quality it seems integrated in the character of every Filipino.
Again, the PCCI congratulates the CMAP in its Diamond Jubilee. The Chamber is more than willing to partner with you as we chart and thread a common direction towards economic growth and a better life for the Filipino people.
Thank you and mabuhay!
Great Speeches: CHARTER CHANGE FORUM
DISTINGUISHED GUESTS
LADIES AND GENTLEMEN, GOOD AFTERNOON.
IT IS A GREAT HONOR FOR ME TO BE WITH YOU ON THIS MOMENTOUS OCCASION. I AM ASKED TO REPORT ON THE TOPIC BUSINESS DEVELOPMENT IN RELATION TO JUDICIAL REFORMS.
THE INTENT OF THE CIVIL JUSTICE SYSTEM IS SIMPLE: TO ESTABLISH A FAIR AND EQUITABLE FRAMEWORK FOR RESOLVING CONFLICTS AMONG PARTIES. IF THE PROCESS FUNCTIONS WELL, IT PROVIDES A MEANS TO COMPENSATE LEGITIMATELY HARMED PARTIES AND DETER UNDESIRABLE BEHAVIOR. ON THE OTHER HAND, A POORLY CONCEIVED OR IMPLEMENTED SYSTEM CAN RESULT IN, AMONG OTHER CONSEQUENCES, INCREASED COSTS AND RISKS OF DOING BUSINESS; DISINCENTIVES FOR INNOVATIONS THAT BENEFIT CONSUMERS; INDUCEMENTS TO FILE FRIVOLOUS (QUESTIONABLE MERIT) LAWSUITS; INFLATED INSURANCE PREMIUMS; -AND IMPORTANTLY- ENCUMBRANCES TO ECONOMIC DEVELOPMENT AND THE ACCOMPANYING JOB CREATION. BUSINESSES SIMPLY CANNOT FUNCTION ON AN ENVIRONMENT OF INSECURITY.
INDEED, DELAY IN THE DISPOSITION OF CASES IS A FREQUENT COMPLAINT OF LITIGANTS AND THE PUBLIC IN GENERAL. ACCORDING TO THE NATIONAL STATISTICS COORDINATION BOARD, THE CASELOAD IN 2004 REACHED ABOUT 1.4 MILLION. OF THIS NUMBER, MORE THAN 800,000 WERE NOT DISPOSED OF OR RESOLVED.
NOT MUCH HAS CHANGED IN 2005 SINCE THERE WAS STILL A BACKLOG OF 806, 748 CASES.
IN THE BUSINESS SECTOR, UNNECESSARY EXPENSES CAUSED BY UNENDING LITIGATION, NOT TO MENTION PAYMENT OF ATTORNEY’S FEES, PLACE A HEAVY BURDEN ON THE COST OF DOING BUSINESS. THE SLOW TURNING OF THE WHEELS OF JUSTICE THROUGH ENDLESS POSTPONEMENTS OF CASES AND LEGAL MANEUVERINGS DISCOURAGE FOREIGN INVESTORS FROM DOING BUSINESS IN OUR COUNTRY.
INDEED, THERE IS A NEED TO REDUCE, IF NOT TOTALLY ELIMINATE, DELAY IN THE ADJUDICATION OF CASES IN ALL LEVELS.
THE EFFECT OF THE PERFORMANCE OF THE JUDICIAL SYSTEM HAS BEEN THROWN INTO THE LIMELIGHT AS THE BUSINESS SECTOR HAS IN VARIOUS SURVEYS POINTED TO ITS PERFORMANCE AS BEING ONE OF THE MAIN OBSTACLES AND DISINCENTIVES TO DOING BUSINESS IN THE PHILIPPINES.
FURTHER, ACCORDING TO THE STUDY DONE BY EMMANUEL DE DIOS OF THE UP SCHOOL OF ECONOMICS, THE CURRENT LEVEL OF FUNCTIONING OF THE LEGAL SYSTEM HAS AN ECONOMIC IMPACT EQUIVALENT TO FOREGOING AT LEAST 6-11 PERCENT OF TOTAL INVESTMENT IN THE ECONOMY AND FOREGOING AT LEAST ONE-FOURTH TO ONE-HALF OF A PERCENTAGE POINT (0.25-0.46) OF GDP GROWTH ANNUALLY, OR AN ANNUAL LOSS AMOUNTING TO BETWEEN P7 BILLION AND P13 BILLION IN 1999 ALONE. THESE ARE SIGNIFICANT AND RECURRING ECONOMIC LOSSES ATTRIBUTABLE TO THE NATURE AND FUNCTIONING OF INSTITUTIONS AND FORM A STRONG CASE FOR JUDICIAL REFORM. THE QUESTION IS HOW ARE WE TO GO ABOUT INSTITUTING THESE JUDICIAL REFORMS IN THE CONTEXT OF BUSINESS COMPETITIVENESS?
AT ANY GIVEN TIME, IN LEGAL JOURNALS, IN SEVERAL PUBLICATIONS, PROFESSIONAL MEETINGS, AND IN OUR LAW SCHOOLS, JUDICIAL REFORM IS BEING DISCUSSED IN MANY ASPECTS. THUS, THERE IS NO DEARTH OF INSIGHTS, PERSPECTIVES AND REFORM PROGRAMS IN THIS REGARD.
THE INCLUSION OF JUDICIAL REFORM, AS IT RELATES TO BUSINESS CONFIDENCE AND COMPETITIVENESS, AS ONE OF THE KEY ISSUES IN THE NATIONAL COMPETITIVENESS COUNCIL, UNDERSCORES THE DEEP APPRECIATION OF THE PRIVATE SECTOR ON THE ROLE IT CAN PLAY IN HELPING IMPROVE THE BUSINESS FUNCTION OF THE JUDICIARY.
ONE KEEN ACCOMPLISHMENT THAT HAS WORKED SIGNIFICANTLY TO THE BENEFIT OF THE PRIVATE SECTOR IN PARTNERSHIP WITH GOVERNMENT IS THE ENACTMENT OF THE ALTERNATIVE DISPUTE RESOLUTION (ADR) LAW. WITH THE CREATION OF THE PHILIPPINE DISPUTE RESOLUTION CENTER, ARBITRATION HAS BEEN MAINSTREAMED AS A PLATFORM FOR EXPEDITIOUS SETTLEMENT OF BUSINESS-RELATED ISSUES.
IN MY LEGAL EXPERIENCE, I LEARNED THAT THE BEST METHODS TO SETTLE DISPUTES ARE THROUGH NEGOTIATION, CONCILIATION, AND MEDIATION. THE PROBLEM, HOWEVER, IS THAT ULTIMATELY, THE SUCCESS OF THESE METHODS LIES ON THE GOODWILL AND COOPERATION OF THE PARTIES INVOLVED IN THE DISPUTE. ARBITRATION IS NOT “ADR” OUTSIDE THE COUNTRY. IN THE PHILIPPINES, HOWEVER, THE TERM “ALTERNATIVE DISPUTE RESOLUTION SYSTEM” REFERS TO ANY PROCESS OR PROCEDURE USED TO RESOLVE A DISPUTE OR CONTROVERSY, OTHER THAN BY ADJUDICATION OF A PRESIDING JUDGE OR A COURT OR AN OFFICER OF AN ADMINISTRATIVE AGENCY.
BUT LET US NOT FORGET THAT THE SOLE PURPOSE OF ALL THESE IS FOR US TO ARRIVE AT A SETTLEMENT ZONE OR THE BARGAINING RANGE WHEREIN THE PARTIES’ RESPECTIVE RESISTANCE POINTS MEET OR BREACH EACH OTHER.
ANOTHER EXAMPLE OF THE MANY THINGS THAT THE PRIVATE SECTOR AND JUDICIARY HAVE WORKED ON WAS REFORMING CERTAIN PROVISIONS OF THE RULES OF COURT WHICH HAVE BEEN OPEN TO ABUSE FROM MANY MEMBERS OF THE BAR, LIKE RULE 65.
AS MOST OF YOU KNOW, RULE 65 OF THE RULES OF COURT , WHICH DISCUSSES THE RULES ON FILING PETITIONS FOR CERTIORARI, PROHIBITION, AND MANDAMUS, PROVIDES A REMEDY TO ANY AGGRIEVED LITIGANT WHEN COURTS OR TRIBUNALS ACTED WITHOUT OR IN EXCESS OF JURISDICTION OR WITH GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION.
REVISIONS TO RULE 65 WERE INITIATED BY THE RULE OF LAW EFFECTIVENESS (ROLE) PROJECT OF THE USAID. SEVERAL ROUNDTABLE DISCUSSIONS WERE ORGANIZED BY ROLE, LED BY ATTY. RITA JIMENO, MY VICE CHAIR TO THE SPECIAL CONCERNS TASK FORCE OF THE NCC SPEARHEADED THIS INITIATIVE. AS A RESULT OF THE SERIES OF ROUNDTABLE DISCUSSIONS, A COMMON FEEDBACK WAS GATHERED FOR THIS RULE TO BE AMENDED, THUS THE FOLLOWING THRUSTS HAVE BEEN SUBMITTED TO THE SUB-COMMITTEE ON RULE REVISIONS TO THE COURT:
SECTION 4: RESPECT FOR THE HIERARCHY OF COURTS WILL BE ENHANCED TO HELP PREVENT THE CLOGGING OF SC’S DOCKETS. RATHER THAN ALLOWING LITIGANTS TO DIRECTLY GO UP TO THE SC, THEY MUST FILE CERTIORARI CASES IN THE REGIONAL TRIAL COURT IF WHAT IS BEING QUESTIONED IS THE ACT OF A FIRST LEVEL COURT JUDGE. WHILE ELECTION CASES QUESTIONING ACTS ALLEGED TO BE TAINTED WITH GRAVE ABUSE OF DISCRETION BY RTC JUDGES MUST BE RAISED TO THE COMELEC IN ITS APPELLATE JURISDICTION.
SECTION 7: ADDITIONAL PARAGRAPH TO GIVE TEETH TO THE PRINCIPLE THAT THE MAIN OR PRINCIPAL CASE SHOULD PROCEED DESPITE THE FILING OF A PETITION FOR CERTIORARI UNLESS THERE IS A TEMPORARY RESTRAINING ORDER OR PRELIMINARY INJUNCTION ISSUED BY A HIGHER COURT. SHOULD THE JUDGE OR HEAD OF THE TRIBUNAL REFUSE TO PROCEED WITH THE PRINCIPAL CASE AFTER AN ALLOWANCE OF TEN (10) DAYS FROM THE FILING OF A PETITION FOR CERTIORARI, THERE BEING NO TRO, THE HEAD JUDGE OR HEAD OF THE TRIBUNAL COULD FACE ADMINISTRATIVE CHARGES. JUDICIARY COURTESY MAY NO LONGER BE USED AS AN EXCUSE BY COURTS OR TRIBUNALS IN NOT PROCEEDING WITH THE PRINCIPAL CASE.
SECTION 8: TREBLE COSTS WILL BE IMPOSED ON A PETITIONER OR HIS LAWYER FOR FILING A DILATORY AND BASELESS PETITION FOR CERTIORARI WHICH IS LATER DENIED, TO DISCOURAGE LITIGANTS FROM FILING BASELESS PETITIONS.
SECTION 1: PROVIDING PETITIONERS THE RIGHT TO SEEK PROVISIONAL REMEDIES UNDER RULE 45. THUS, THIS EMPHASIZES PROHIBITION AGAINST THE FILING OF A PETITION UNDER RULE 65 WHEN APPEAL OR ANY OTHER ADEQUATE REMEDY IN THE COURSE OF LAW IS AVAILABLE OR HAS LAPSED BECAUSE A PETITION FOR CERTIORARI UNDER RULE 65 CANNOT BE SUBSTITUTE FOR AN APPEAL IN RULE 45.
TO ACCOMPANY THESE REFORMS UNDER RULE 65 ARE GUIDELINES THAT REQUIRE PETITIONERS UNDER RULE 65 TO STATE AND CERTIFY UNDER OATH THE FOLLOWING:
1. BRIEF SUMMATION OF THE ALLEGED ACTS CONSTITUTING LACK OF JURISDICTION OR GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION.
2. WHETHER OR NOT THERE IS A PENDING APPEAL UNDER RULES 41, 43 OR 45 AND IF NONE, WHETHER THE PERIOD TO FILE APPEAL HAS LAPSED OR IS STILL AVAILABLE.
3. THE COURT OR TRIBUNAL OF ORIGIN.
4. WHETHER OR NOT A MOTION OF RECONSIDERATION WAS PREVIOUSLY FILED.
IN A STUDY BY THE RULE OF LAW EFFECTIVENESS PROJECT (ROLE) OF THE USAID IN 2006, USING A SAMPLING OF 144 PETITIONS FOR CERTIORARI FILED IN THE SUPREME COURT FROM 1967-2005, IT WAS ASCERTAINED THAT THERE WAS A GESTATION PERIOD AVERAGING 11 YEARS BEFORE THE PETITIONS WERE DISMISSED AND REMANDED BACK TO THE COURT OF ORIGIN OR BEFORE THE WRIT OF CERTIORARI WAS GRANTED. SUCH A GESTATION PERIOD WAS RECKONED FROM THE ISSUANCE OF AN ORDER OR DECISION BY THE LOWER COURT WHICH WAS ASSAILED ON CERTIORARI ALL THE WAY TO THE SUPREME COURT
AN IMPORTANT ELEMENT IN MAINSTREAMING COMPETITIVENESS AS IT RELATES TO JUDICIAL REFORM ARE THE VARIOUS MEASURES BEING UNDERTAKEN TO EXERCISE INTEGRITY AND CLEANSING AMONG THE RANKS IN THE JUDICIARY.
ALONGSIDE JUDICIAL CLEANSING IS THE CONDUCT OF AN INTEGRITY DEVELOPMENT REVIEW (IDR) IN PARTNERSHIP WITH VARIOUS DEVELOPMENT PARTNERS SUCH AS USAID, ABA-ROLE AND TRANSPARENCY INTERNATIONAL. IDR HAS PROVEN TO BE AN EFFECTIVE TOOL IN REDUCING OPPORTUNITIES FOR CORRUPTION. IT SYSTEMATICALLY LOOKS INTO THE INTEGRITY MEASURES EMPLOYED BY THE AGENCY AND ASSESS THE CORRUPTION VULNERABILITY IN ITS FUNCTIONS.
LADIES AND GENTLEMEN, THE IMPORTANT THING IN THESE JUDICIAL REFORMS IS THAT THEY MUST IMPROVE THE DELIVERY OF JUSTICE TO OUR PEOPLE, AND WE THE BUSINESS PEOPLE MUST BE ACTIVELY INVOLVED. WITHIN AND OUTSIDE THE CONFINES OF THE COURTS, OUR PEOPLE RELY ON THESE REFORMS FOR MORE LEGAL PROTECTION. IN A STRATIFIED SOCIETY SUCH AS OURS, THESE WILL LEND SUBSTANCE TO THIS NOBLEST OF DEMOCRATIC IDEALS: WHICH IS THE PROTECTION OF THE UNPROTECTED.
IN THE END, LET MET SAY THAT THE POWER OF THE JUDICIARY RESTS UPON THE FAITH OF THE PEOPLE AND THE INTEGRITY OF THE COURTS. TAKE THIS FAITH AWAY AND THE MORAL INFLUENCE OF THE COURTS IS GONE, AND POPULAR RESPECT IMPAIRED.
THANK YOU AND MABUHAY TAYONG LAHAT.
LADIES AND GENTLEMEN, GOOD AFTERNOON.
IT IS A GREAT HONOR FOR ME TO BE WITH YOU ON THIS MOMENTOUS OCCASION. I AM ASKED TO REPORT ON THE TOPIC BUSINESS DEVELOPMENT IN RELATION TO JUDICIAL REFORMS.
THE INTENT OF THE CIVIL JUSTICE SYSTEM IS SIMPLE: TO ESTABLISH A FAIR AND EQUITABLE FRAMEWORK FOR RESOLVING CONFLICTS AMONG PARTIES. IF THE PROCESS FUNCTIONS WELL, IT PROVIDES A MEANS TO COMPENSATE LEGITIMATELY HARMED PARTIES AND DETER UNDESIRABLE BEHAVIOR. ON THE OTHER HAND, A POORLY CONCEIVED OR IMPLEMENTED SYSTEM CAN RESULT IN, AMONG OTHER CONSEQUENCES, INCREASED COSTS AND RISKS OF DOING BUSINESS; DISINCENTIVES FOR INNOVATIONS THAT BENEFIT CONSUMERS; INDUCEMENTS TO FILE FRIVOLOUS (QUESTIONABLE MERIT) LAWSUITS; INFLATED INSURANCE PREMIUMS; -AND IMPORTANTLY- ENCUMBRANCES TO ECONOMIC DEVELOPMENT AND THE ACCOMPANYING JOB CREATION. BUSINESSES SIMPLY CANNOT FUNCTION ON AN ENVIRONMENT OF INSECURITY.
INDEED, DELAY IN THE DISPOSITION OF CASES IS A FREQUENT COMPLAINT OF LITIGANTS AND THE PUBLIC IN GENERAL. ACCORDING TO THE NATIONAL STATISTICS COORDINATION BOARD, THE CASELOAD IN 2004 REACHED ABOUT 1.4 MILLION. OF THIS NUMBER, MORE THAN 800,000 WERE NOT DISPOSED OF OR RESOLVED.
NOT MUCH HAS CHANGED IN 2005 SINCE THERE WAS STILL A BACKLOG OF 806, 748 CASES.
IN THE BUSINESS SECTOR, UNNECESSARY EXPENSES CAUSED BY UNENDING LITIGATION, NOT TO MENTION PAYMENT OF ATTORNEY’S FEES, PLACE A HEAVY BURDEN ON THE COST OF DOING BUSINESS. THE SLOW TURNING OF THE WHEELS OF JUSTICE THROUGH ENDLESS POSTPONEMENTS OF CASES AND LEGAL MANEUVERINGS DISCOURAGE FOREIGN INVESTORS FROM DOING BUSINESS IN OUR COUNTRY.
INDEED, THERE IS A NEED TO REDUCE, IF NOT TOTALLY ELIMINATE, DELAY IN THE ADJUDICATION OF CASES IN ALL LEVELS.
THE EFFECT OF THE PERFORMANCE OF THE JUDICIAL SYSTEM HAS BEEN THROWN INTO THE LIMELIGHT AS THE BUSINESS SECTOR HAS IN VARIOUS SURVEYS POINTED TO ITS PERFORMANCE AS BEING ONE OF THE MAIN OBSTACLES AND DISINCENTIVES TO DOING BUSINESS IN THE PHILIPPINES.
FURTHER, ACCORDING TO THE STUDY DONE BY EMMANUEL DE DIOS OF THE UP SCHOOL OF ECONOMICS, THE CURRENT LEVEL OF FUNCTIONING OF THE LEGAL SYSTEM HAS AN ECONOMIC IMPACT EQUIVALENT TO FOREGOING AT LEAST 6-11 PERCENT OF TOTAL INVESTMENT IN THE ECONOMY AND FOREGOING AT LEAST ONE-FOURTH TO ONE-HALF OF A PERCENTAGE POINT (0.25-0.46) OF GDP GROWTH ANNUALLY, OR AN ANNUAL LOSS AMOUNTING TO BETWEEN P7 BILLION AND P13 BILLION IN 1999 ALONE. THESE ARE SIGNIFICANT AND RECURRING ECONOMIC LOSSES ATTRIBUTABLE TO THE NATURE AND FUNCTIONING OF INSTITUTIONS AND FORM A STRONG CASE FOR JUDICIAL REFORM. THE QUESTION IS HOW ARE WE TO GO ABOUT INSTITUTING THESE JUDICIAL REFORMS IN THE CONTEXT OF BUSINESS COMPETITIVENESS?
AT ANY GIVEN TIME, IN LEGAL JOURNALS, IN SEVERAL PUBLICATIONS, PROFESSIONAL MEETINGS, AND IN OUR LAW SCHOOLS, JUDICIAL REFORM IS BEING DISCUSSED IN MANY ASPECTS. THUS, THERE IS NO DEARTH OF INSIGHTS, PERSPECTIVES AND REFORM PROGRAMS IN THIS REGARD.
THE INCLUSION OF JUDICIAL REFORM, AS IT RELATES TO BUSINESS CONFIDENCE AND COMPETITIVENESS, AS ONE OF THE KEY ISSUES IN THE NATIONAL COMPETITIVENESS COUNCIL, UNDERSCORES THE DEEP APPRECIATION OF THE PRIVATE SECTOR ON THE ROLE IT CAN PLAY IN HELPING IMPROVE THE BUSINESS FUNCTION OF THE JUDICIARY.
ONE KEEN ACCOMPLISHMENT THAT HAS WORKED SIGNIFICANTLY TO THE BENEFIT OF THE PRIVATE SECTOR IN PARTNERSHIP WITH GOVERNMENT IS THE ENACTMENT OF THE ALTERNATIVE DISPUTE RESOLUTION (ADR) LAW. WITH THE CREATION OF THE PHILIPPINE DISPUTE RESOLUTION CENTER, ARBITRATION HAS BEEN MAINSTREAMED AS A PLATFORM FOR EXPEDITIOUS SETTLEMENT OF BUSINESS-RELATED ISSUES.
IN MY LEGAL EXPERIENCE, I LEARNED THAT THE BEST METHODS TO SETTLE DISPUTES ARE THROUGH NEGOTIATION, CONCILIATION, AND MEDIATION. THE PROBLEM, HOWEVER, IS THAT ULTIMATELY, THE SUCCESS OF THESE METHODS LIES ON THE GOODWILL AND COOPERATION OF THE PARTIES INVOLVED IN THE DISPUTE. ARBITRATION IS NOT “ADR” OUTSIDE THE COUNTRY. IN THE PHILIPPINES, HOWEVER, THE TERM “ALTERNATIVE DISPUTE RESOLUTION SYSTEM” REFERS TO ANY PROCESS OR PROCEDURE USED TO RESOLVE A DISPUTE OR CONTROVERSY, OTHER THAN BY ADJUDICATION OF A PRESIDING JUDGE OR A COURT OR AN OFFICER OF AN ADMINISTRATIVE AGENCY.
BUT LET US NOT FORGET THAT THE SOLE PURPOSE OF ALL THESE IS FOR US TO ARRIVE AT A SETTLEMENT ZONE OR THE BARGAINING RANGE WHEREIN THE PARTIES’ RESPECTIVE RESISTANCE POINTS MEET OR BREACH EACH OTHER.
ANOTHER EXAMPLE OF THE MANY THINGS THAT THE PRIVATE SECTOR AND JUDICIARY HAVE WORKED ON WAS REFORMING CERTAIN PROVISIONS OF THE RULES OF COURT WHICH HAVE BEEN OPEN TO ABUSE FROM MANY MEMBERS OF THE BAR, LIKE RULE 65.
AS MOST OF YOU KNOW, RULE 65 OF THE RULES OF COURT , WHICH DISCUSSES THE RULES ON FILING PETITIONS FOR CERTIORARI, PROHIBITION, AND MANDAMUS, PROVIDES A REMEDY TO ANY AGGRIEVED LITIGANT WHEN COURTS OR TRIBUNALS ACTED WITHOUT OR IN EXCESS OF JURISDICTION OR WITH GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION.
REVISIONS TO RULE 65 WERE INITIATED BY THE RULE OF LAW EFFECTIVENESS (ROLE) PROJECT OF THE USAID. SEVERAL ROUNDTABLE DISCUSSIONS WERE ORGANIZED BY ROLE, LED BY ATTY. RITA JIMENO, MY VICE CHAIR TO THE SPECIAL CONCERNS TASK FORCE OF THE NCC SPEARHEADED THIS INITIATIVE. AS A RESULT OF THE SERIES OF ROUNDTABLE DISCUSSIONS, A COMMON FEEDBACK WAS GATHERED FOR THIS RULE TO BE AMENDED, THUS THE FOLLOWING THRUSTS HAVE BEEN SUBMITTED TO THE SUB-COMMITTEE ON RULE REVISIONS TO THE COURT:
SECTION 4: RESPECT FOR THE HIERARCHY OF COURTS WILL BE ENHANCED TO HELP PREVENT THE CLOGGING OF SC’S DOCKETS. RATHER THAN ALLOWING LITIGANTS TO DIRECTLY GO UP TO THE SC, THEY MUST FILE CERTIORARI CASES IN THE REGIONAL TRIAL COURT IF WHAT IS BEING QUESTIONED IS THE ACT OF A FIRST LEVEL COURT JUDGE. WHILE ELECTION CASES QUESTIONING ACTS ALLEGED TO BE TAINTED WITH GRAVE ABUSE OF DISCRETION BY RTC JUDGES MUST BE RAISED TO THE COMELEC IN ITS APPELLATE JURISDICTION.
SECTION 7: ADDITIONAL PARAGRAPH TO GIVE TEETH TO THE PRINCIPLE THAT THE MAIN OR PRINCIPAL CASE SHOULD PROCEED DESPITE THE FILING OF A PETITION FOR CERTIORARI UNLESS THERE IS A TEMPORARY RESTRAINING ORDER OR PRELIMINARY INJUNCTION ISSUED BY A HIGHER COURT. SHOULD THE JUDGE OR HEAD OF THE TRIBUNAL REFUSE TO PROCEED WITH THE PRINCIPAL CASE AFTER AN ALLOWANCE OF TEN (10) DAYS FROM THE FILING OF A PETITION FOR CERTIORARI, THERE BEING NO TRO, THE HEAD JUDGE OR HEAD OF THE TRIBUNAL COULD FACE ADMINISTRATIVE CHARGES. JUDICIARY COURTESY MAY NO LONGER BE USED AS AN EXCUSE BY COURTS OR TRIBUNALS IN NOT PROCEEDING WITH THE PRINCIPAL CASE.
SECTION 8: TREBLE COSTS WILL BE IMPOSED ON A PETITIONER OR HIS LAWYER FOR FILING A DILATORY AND BASELESS PETITION FOR CERTIORARI WHICH IS LATER DENIED, TO DISCOURAGE LITIGANTS FROM FILING BASELESS PETITIONS.
SECTION 1: PROVIDING PETITIONERS THE RIGHT TO SEEK PROVISIONAL REMEDIES UNDER RULE 45. THUS, THIS EMPHASIZES PROHIBITION AGAINST THE FILING OF A PETITION UNDER RULE 65 WHEN APPEAL OR ANY OTHER ADEQUATE REMEDY IN THE COURSE OF LAW IS AVAILABLE OR HAS LAPSED BECAUSE A PETITION FOR CERTIORARI UNDER RULE 65 CANNOT BE SUBSTITUTE FOR AN APPEAL IN RULE 45.
TO ACCOMPANY THESE REFORMS UNDER RULE 65 ARE GUIDELINES THAT REQUIRE PETITIONERS UNDER RULE 65 TO STATE AND CERTIFY UNDER OATH THE FOLLOWING:
1. BRIEF SUMMATION OF THE ALLEGED ACTS CONSTITUTING LACK OF JURISDICTION OR GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION.
2. WHETHER OR NOT THERE IS A PENDING APPEAL UNDER RULES 41, 43 OR 45 AND IF NONE, WHETHER THE PERIOD TO FILE APPEAL HAS LAPSED OR IS STILL AVAILABLE.
3. THE COURT OR TRIBUNAL OF ORIGIN.
4. WHETHER OR NOT A MOTION OF RECONSIDERATION WAS PREVIOUSLY FILED.
IN A STUDY BY THE RULE OF LAW EFFECTIVENESS PROJECT (ROLE) OF THE USAID IN 2006, USING A SAMPLING OF 144 PETITIONS FOR CERTIORARI FILED IN THE SUPREME COURT FROM 1967-2005, IT WAS ASCERTAINED THAT THERE WAS A GESTATION PERIOD AVERAGING 11 YEARS BEFORE THE PETITIONS WERE DISMISSED AND REMANDED BACK TO THE COURT OF ORIGIN OR BEFORE THE WRIT OF CERTIORARI WAS GRANTED. SUCH A GESTATION PERIOD WAS RECKONED FROM THE ISSUANCE OF AN ORDER OR DECISION BY THE LOWER COURT WHICH WAS ASSAILED ON CERTIORARI ALL THE WAY TO THE SUPREME COURT
AN IMPORTANT ELEMENT IN MAINSTREAMING COMPETITIVENESS AS IT RELATES TO JUDICIAL REFORM ARE THE VARIOUS MEASURES BEING UNDERTAKEN TO EXERCISE INTEGRITY AND CLEANSING AMONG THE RANKS IN THE JUDICIARY.
ALONGSIDE JUDICIAL CLEANSING IS THE CONDUCT OF AN INTEGRITY DEVELOPMENT REVIEW (IDR) IN PARTNERSHIP WITH VARIOUS DEVELOPMENT PARTNERS SUCH AS USAID, ABA-ROLE AND TRANSPARENCY INTERNATIONAL. IDR HAS PROVEN TO BE AN EFFECTIVE TOOL IN REDUCING OPPORTUNITIES FOR CORRUPTION. IT SYSTEMATICALLY LOOKS INTO THE INTEGRITY MEASURES EMPLOYED BY THE AGENCY AND ASSESS THE CORRUPTION VULNERABILITY IN ITS FUNCTIONS.
LADIES AND GENTLEMEN, THE IMPORTANT THING IN THESE JUDICIAL REFORMS IS THAT THEY MUST IMPROVE THE DELIVERY OF JUSTICE TO OUR PEOPLE, AND WE THE BUSINESS PEOPLE MUST BE ACTIVELY INVOLVED. WITHIN AND OUTSIDE THE CONFINES OF THE COURTS, OUR PEOPLE RELY ON THESE REFORMS FOR MORE LEGAL PROTECTION. IN A STRATIFIED SOCIETY SUCH AS OURS, THESE WILL LEND SUBSTANCE TO THIS NOBLEST OF DEMOCRATIC IDEALS: WHICH IS THE PROTECTION OF THE UNPROTECTED.
IN THE END, LET MET SAY THAT THE POWER OF THE JUDICIARY RESTS UPON THE FAITH OF THE PEOPLE AND THE INTEGRITY OF THE COURTS. TAKE THIS FAITH AWAY AND THE MORAL INFLUENCE OF THE COURTS IS GONE, AND POPULAR RESPECT IMPAIRED.
THANK YOU AND MABUHAY TAYONG LAHAT.
Great Speeches: ECONOMIC ROADMAP 2009
Hon. Peter B. Favila, Secretary, DTI
Hon. Ralph G. Recto, Director-General, NEDA
Hon. Margarito B. Teves, Secretary, Department of Finance
Mr. Ephraim Genuino, PAGCOR Chairman and CEO
Distinguished guests, friends, ladies and gentlemen, a pleasant afternoon to you all;
It is an honor for me to be with you in this very important event.
We start 2009 faced with a financial crisis unlike any we have seen in the past decade, a crisis that has not diminished over the last few weeks.
In the United States, nearly 2.6 million jobs have now been lost and there are many people who are anxious and uncertain of what the future will hold. People in the US are traveling less, manufacturers are slashing production and there are job cuts across almost every sector of the economy, leading to a severe drop in energy use.
In the Philippines, we know that Filipino overseas workers are coming back in droves to our country because of retrenchments of several firms in Taiwan, United Kingdom, United Arab Emirates, and Korea, to name a few.
However, while it is not too late to change these series of events, we need to take crucial action now to cushion the impact of the financial crisis in our shores.
It is therefore important that as early as today we come up with an economic roadmap to chart our journey together for the next twelve months. We call on everyone to focus on solutions and strengthening partnerships rather than being fixated on the problems hounding the globe today.
Of course, we all know we live in a world of turbulence. Everywhere, from all parts of the globe, people talk about the global financial meltdown. Some even predict that unlike the 1907 Banker’s Panic and the 1929 depression, this will be the imminent economic Armageddon or the end of business as we know it.
But we must remember that the world survived two world wars and the global economy progressed exponentially until September 2008 when the sub prime crisis and its derivatives imploded. Over time it has been proven that economics is a cycle and sometimes problems heal by themselves and oftentimes nursed back to health by timely and effective intervention by government.
How many more countries will go into recession still remains to be seen. The contagion is just beginning. It is precisely because of this that nobody has, as yet, been able to determine the exact magnitude and depth of this crisis. Worst, the crisis grows and spreads across the globe- driven not so much by fundamentals but largely by fear and loss of trust in the whole financial system. The meltdown we are now seeing are not slow motion events. They are wild and chaotic with rapidly spreading side effects.
What then is the impact of all these developments on the Philippine economy? Let me enumerate 5 of them:
1. Slowdown in export growth as the economy of trading partners decline. (Our electronics which make up for more than 50% of our country’s total export recorded a decline).
2. Tightness in global credit markets resulting in high interest cost for new debts. (There is a 4% add- on on the LIBOR as country risk premium plus other charges which means new debts could be obtained at a cost between 11-17 % p.a.)
3. Flight of the speculative capital, hot money, or investment portfolio (More than a billion dollars left in the 1st eight months last year).
4. Decline in stock values (40% lost value compared to the pre-meltdown period).
5. Pressure on the peso and financial institutions with global investment exposure (Peso weakened to almost P50/ $ versus P42 a few months ago.)
Luckily, there are some mitigating factors that partially cushion the negative impact. I can cite 5:
1. Lower petroleum price (from a high of $147/ bbl, oil prices dropped to below $40.
2. Lower prices of imported steel and wheat. (Reducing cost of Construction and Food.)
3. Sustained and increased OFW remittance (at $1.5M/ mo. versus $1.2M- last year’s average.
4. High savings rate (at 26% of GDP)
5. Relatively strong banking system after the 1997 Asian currency crisis.
Given all these, we still need to face with confidence and courage the challenges of further mitigating the negative impact on the poor and vulnerable, sustaining job creation, and directing accumulated liquidity in the financial system to productive investments.
Undoubtedly, for the Philippines, the high growth we have experienced in the past is over and will not be back for some time as the world continues to struggle with the current financial turmoil.
With the expected sharp decline in consumer spending, government, in partnership with the private sector, must immediately pump prime the economy even with the threat of breaching the targeted budget deficit.
On this score, you will be pleased to know that in our PBC in October last year, PCCI proposed and government accepted to create a P100 billion stimulus package for infrastructure spending. The fund will be contributed 50/ 50 by GFIs and the private sector and the upside is, spending from this fund will not impact on the budget deficit. The mechanics and other details with respect to use, accountability and transparency, structure, sovereign guarantees, monitoring and control are still being worked out by PCCI with DOF, DBP, SSS, Landbank, GSIS, NEDA, and NDC in several meetings since early November. We hope to give you an update on this early this year.
In addition, PCCI advocated and urges government economic planners to put our house in order and make our economy more resilient and globally competitive so that as the world turns for the better, we are ready to seize the opportunities.
In this regard, PCCI has identified and will focus in the next 2 years on 4 key basic areas: namely: Food, Infrastructure, Re-engineered Education, and Energy (or F.I.R.E.) Our advocacies in Tourism, Trade, Legislative Agenda, and other sectors will remain actively in place).
Why these 4 sectors?
First, Agriculture employs a third of our country’s workforce. Paradoxically, we teach other Asian neighbors scientific technology on rice production at IRRI, Los Baños. And yet we are the biggest rice importer in the world. We import 10% of our rice needs because we are losing 28% of our palay harvest due to poor and inefficient post- harvest facilities. Investing in such facilities to reduce losses will improve our chances of being a rice exporter once again.
Second, Infrastructure is a key factor that directly affects the country’s global competitiveness. An efficient transport network will reshape the country’s physical and economic configuration.
From fragmented island economies separated by mountains and seas, the country can develop a unified and integrated economy where people and goods can move and trade swiftly and efficiently.
Third, according to CHED, only 40% of the yearly 400,000 college graduates are able to land jobs within a year after graduation. The rest becomes part of the rising statistics of unemployment rate. This is caused by many factors, one of which is the mismatch between skills of our graduates and the requirement of the industry. PCCI has joined the Presidential Task Force on Education together with the Department of Education, TESDA, CHED and other stakeholders in the academe, and 8 selected industry champions (shipping, shipbuilding, wellness, steel, mining, tourism… to name some) who will participate in our skills upgrading program to address the mismatch.
Fourth, on Energy, PCCI advocates a predictable energy policy to level the playing field. We are drawing a roadmap to influence policy makers to achieve supply/ demand balance using the right and appropriate mix for our country’s power generation sector. This is aimed at promoting energy self- sufficiency at competitive cost.
In addition to these, the PCCI has created an internal Economic Monitoring Team to keep an eye on the developments in our economic fundamentals. We invite all business leaders to take part in this endeavor to further strengthen the voice of the business sector in policy-making.
As you can see, we are not helpless. More than any program or policy, it is this spirit that will enable us to confront these challenges with the same spirit that has led previous generations to face down war, poverty, and fear itself.
And if we are able to summon that spirit again; if are able to look out for one another and listen to one another, and do our part for our nation and for posterity -- then I have no doubt that, years from now, we will look back on 2009 as one of those years that marked another new and hopeful year for the Philippines.
Let us work together and chart our course for the challenging year ahead. Thank you and mabuhay po tayong lahat.
Hon. Ralph G. Recto, Director-General, NEDA
Hon. Margarito B. Teves, Secretary, Department of Finance
Mr. Ephraim Genuino, PAGCOR Chairman and CEO
Distinguished guests, friends, ladies and gentlemen, a pleasant afternoon to you all;
It is an honor for me to be with you in this very important event.
We start 2009 faced with a financial crisis unlike any we have seen in the past decade, a crisis that has not diminished over the last few weeks.
In the United States, nearly 2.6 million jobs have now been lost and there are many people who are anxious and uncertain of what the future will hold. People in the US are traveling less, manufacturers are slashing production and there are job cuts across almost every sector of the economy, leading to a severe drop in energy use.
In the Philippines, we know that Filipino overseas workers are coming back in droves to our country because of retrenchments of several firms in Taiwan, United Kingdom, United Arab Emirates, and Korea, to name a few.
However, while it is not too late to change these series of events, we need to take crucial action now to cushion the impact of the financial crisis in our shores.
It is therefore important that as early as today we come up with an economic roadmap to chart our journey together for the next twelve months. We call on everyone to focus on solutions and strengthening partnerships rather than being fixated on the problems hounding the globe today.
Of course, we all know we live in a world of turbulence. Everywhere, from all parts of the globe, people talk about the global financial meltdown. Some even predict that unlike the 1907 Banker’s Panic and the 1929 depression, this will be the imminent economic Armageddon or the end of business as we know it.
But we must remember that the world survived two world wars and the global economy progressed exponentially until September 2008 when the sub prime crisis and its derivatives imploded. Over time it has been proven that economics is a cycle and sometimes problems heal by themselves and oftentimes nursed back to health by timely and effective intervention by government.
How many more countries will go into recession still remains to be seen. The contagion is just beginning. It is precisely because of this that nobody has, as yet, been able to determine the exact magnitude and depth of this crisis. Worst, the crisis grows and spreads across the globe- driven not so much by fundamentals but largely by fear and loss of trust in the whole financial system. The meltdown we are now seeing are not slow motion events. They are wild and chaotic with rapidly spreading side effects.
What then is the impact of all these developments on the Philippine economy? Let me enumerate 5 of them:
1. Slowdown in export growth as the economy of trading partners decline. (Our electronics which make up for more than 50% of our country’s total export recorded a decline).
2. Tightness in global credit markets resulting in high interest cost for new debts. (There is a 4% add- on on the LIBOR as country risk premium plus other charges which means new debts could be obtained at a cost between 11-17 % p.a.)
3. Flight of the speculative capital, hot money, or investment portfolio (More than a billion dollars left in the 1st eight months last year).
4. Decline in stock values (40% lost value compared to the pre-meltdown period).
5. Pressure on the peso and financial institutions with global investment exposure (Peso weakened to almost P50/ $ versus P42 a few months ago.)
Luckily, there are some mitigating factors that partially cushion the negative impact. I can cite 5:
1. Lower petroleum price (from a high of $147/ bbl, oil prices dropped to below $40.
2. Lower prices of imported steel and wheat. (Reducing cost of Construction and Food.)
3. Sustained and increased OFW remittance (at $1.5M/ mo. versus $1.2M- last year’s average.
4. High savings rate (at 26% of GDP)
5. Relatively strong banking system after the 1997 Asian currency crisis.
Given all these, we still need to face with confidence and courage the challenges of further mitigating the negative impact on the poor and vulnerable, sustaining job creation, and directing accumulated liquidity in the financial system to productive investments.
Undoubtedly, for the Philippines, the high growth we have experienced in the past is over and will not be back for some time as the world continues to struggle with the current financial turmoil.
With the expected sharp decline in consumer spending, government, in partnership with the private sector, must immediately pump prime the economy even with the threat of breaching the targeted budget deficit.
On this score, you will be pleased to know that in our PBC in October last year, PCCI proposed and government accepted to create a P100 billion stimulus package for infrastructure spending. The fund will be contributed 50/ 50 by GFIs and the private sector and the upside is, spending from this fund will not impact on the budget deficit. The mechanics and other details with respect to use, accountability and transparency, structure, sovereign guarantees, monitoring and control are still being worked out by PCCI with DOF, DBP, SSS, Landbank, GSIS, NEDA, and NDC in several meetings since early November. We hope to give you an update on this early this year.
In addition, PCCI advocated and urges government economic planners to put our house in order and make our economy more resilient and globally competitive so that as the world turns for the better, we are ready to seize the opportunities.
In this regard, PCCI has identified and will focus in the next 2 years on 4 key basic areas: namely: Food, Infrastructure, Re-engineered Education, and Energy (or F.I.R.E.) Our advocacies in Tourism, Trade, Legislative Agenda, and other sectors will remain actively in place).
Why these 4 sectors?
First, Agriculture employs a third of our country’s workforce. Paradoxically, we teach other Asian neighbors scientific technology on rice production at IRRI, Los Baños. And yet we are the biggest rice importer in the world. We import 10% of our rice needs because we are losing 28% of our palay harvest due to poor and inefficient post- harvest facilities. Investing in such facilities to reduce losses will improve our chances of being a rice exporter once again.
Second, Infrastructure is a key factor that directly affects the country’s global competitiveness. An efficient transport network will reshape the country’s physical and economic configuration.
From fragmented island economies separated by mountains and seas, the country can develop a unified and integrated economy where people and goods can move and trade swiftly and efficiently.
Third, according to CHED, only 40% of the yearly 400,000 college graduates are able to land jobs within a year after graduation. The rest becomes part of the rising statistics of unemployment rate. This is caused by many factors, one of which is the mismatch between skills of our graduates and the requirement of the industry. PCCI has joined the Presidential Task Force on Education together with the Department of Education, TESDA, CHED and other stakeholders in the academe, and 8 selected industry champions (shipping, shipbuilding, wellness, steel, mining, tourism… to name some) who will participate in our skills upgrading program to address the mismatch.
Fourth, on Energy, PCCI advocates a predictable energy policy to level the playing field. We are drawing a roadmap to influence policy makers to achieve supply/ demand balance using the right and appropriate mix for our country’s power generation sector. This is aimed at promoting energy self- sufficiency at competitive cost.
In addition to these, the PCCI has created an internal Economic Monitoring Team to keep an eye on the developments in our economic fundamentals. We invite all business leaders to take part in this endeavor to further strengthen the voice of the business sector in policy-making.
As you can see, we are not helpless. More than any program or policy, it is this spirit that will enable us to confront these challenges with the same spirit that has led previous generations to face down war, poverty, and fear itself.
And if we are able to summon that spirit again; if are able to look out for one another and listen to one another, and do our part for our nation and for posterity -- then I have no doubt that, years from now, we will look back on 2009 as one of those years that marked another new and hopeful year for the Philippines.
Let us work together and chart our course for the challenging year ahead. Thank you and mabuhay po tayong lahat.
Thursday, February 19, 2009
Funny Tips on Success
How to Get Along with Your Spouse (and Others)
When your spouse does something wrong, how do you react?
Some spouses like to blame. "You really embarrassed me when you told that stupid joke. You make me want to stay at home."
Other spouses prefer to criticize. "You’re so fat it makes me sick."
Getting even is also a favorite response. "Well, because you were flirting with Chris, I decided to flirt with Pat." (For rest of article, click here.)
How to Solve Money Problems
How do you solve money problems?
1. Stop spending
2. Worry
3. Blame someone or something
4. Give up
5. Go further into debt
6. Sell a possession
7. Become depressed
8. Complain
9. Cheat or steal
10. Hope someone will just give you the money you need
Of course, none of these solutions help you gain more money.
When your spouse does something wrong, how do you react?
Some spouses like to blame. "You really embarrassed me when you told that stupid joke. You make me want to stay at home."
Other spouses prefer to criticize. "You’re so fat it makes me sick."
Getting even is also a favorite response. "Well, because you were flirting with Chris, I decided to flirt with Pat." (For rest of article, click here.)
How to Solve Money Problems
How do you solve money problems?
1. Stop spending
2. Worry
3. Blame someone or something
4. Give up
5. Go further into debt
6. Sell a possession
7. Become depressed
8. Complain
9. Cheat or steal
10. Hope someone will just give you the money you need
Of course, none of these solutions help you gain more money.
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