Pinoy Bloggers Among the Best in Asia

I was down with the flu and stayed cooped up in the house the entire weekend. In between rests, I just played TOTAL WAR: Shogun in my PC, played with my kid, watched TV, read books and ate lots of junk food. I also spent time checking out other blogs, leaving comments here and there and generally did some "networking" with other fellow bloggers out there.

Reading blogs, I must say that I was blown away by many excellently-designed and well-written entries of some Filipino sites like Nostalgia Manila, Pinoy Travel Blog, Philippine Internet Review, and many others. Philippine bloggers are getting better by the minute and the content in some sites are just awesome. Nostalgia Manila, for example, has a treasure trove of old collectible items (i.e. Game and Watch, old movie posters and yes, even an old Magnolia Milk glass) and actual interviews with 70s legends like VST&Co. Pinoy Travel Blog and Philippine Internet Review's entries are always content-rich and well-researched. Albeit still viewed by some as an "elitist activity," I believe that blogging is the wave of the future that will eventually capture a significant chunk of the Filipino reading public segment (read this Inquirer column by Amando Doronilla). They say that in Singapore (which imposes strict censorship rules on their local media), people there get their news and daily dose of political opinion pieces not from the newspapers anymore but from blogs. I think it would not be inaccurate to say that we Filipinos are among the best bloggers in Asia.

Bloggers compete against each other for rankings (and tacitly, for dollar income). I consider myself quite lucky because, in just 6 months of blogging, I have already broken into the Top 100 of the Pinoy Top Blogs rankings. But my problem now is I seem only to "hover" between the 90 to 120 rank and cannot seem to break top 50. Surveying some of the blogs out there has made me realize that I really have to upgrade my IT knowledge and blog designing skills if I want to remain in the top 100. The problem is there's no school offering formal curricula on blogging. I heard that there are blogging workshops being held sporadically but I always manage not to get invited. So if there's some of you out there who may know some people who organize blogging conferences, please let me know. I am very interested to attend.

I may also have to expand my blog topic to include diverse issues outside of ethnic Ilonggo concerns - that is why I have started commenting on national issues like the Nursing Board Exam fiasco, the "killer" billboards, etc. - but then my blog would lose its "signature identity." Although this news article "China Says Number of Blogs Tops 34 Million" makes we wish I know Mandarin.

Charlie Agatep Talks About PR

I am publishing this article which appeared in the Philippine Star on October 1, 2006 entitled “What PR is all about” by Charlie Agatep. One of the pioneering and most-respected PR practitioners in the country, Mr. Agatep is the president of Agatep Associates and a former president of the Public Relations Society of the Philippines. He was also a professor of PR and advertising in UST, St. Paul College and Assumption College.

What PR is all about
By Charlie Agatep

“The intriguing case about a certain Alfonso Liongson who was paid the sum of $2 million to do a questionable PR job for Piatco has cast a black eye on the PR profession. It has eroded the legitimacy of qualified PR practitioners who have worked hard to attain the high standards of ethics required in the profession.

What Mr. Liongson is perceived to have done for Piatco was to cover up anomalous Piatco transactions by influencing certain government officials to insert onerous provisions in the DOTC-Piatco Concession Agreement. That is not public relations. That is economic sabotage.

The late Pete Teodoro of Philprom and Joe Carpio of San Miguel Corporation defined Public Relations as ‘doing good and telling the public about it.’ This fundamental truth about what PR is, and what PR does, has been the basis of legitimate PR practice. PR is making significant contributions to our democratic society by embracing what Thomas Jefferson described as the ‘engineering of public consent.’

Edward L. Bernays, the acknowledged father of public relations, described a PR consultant as a social scientist who advises a client on the attitudes and actions he must take in order to appeal to the public it serves.

Bernays suggested that the PR consultant ascertains thru research how the client is perceived by the public, then advises what action programs the client must undertake to earn public acceptance.

In my many years in the PR profession, my guiding principle has been to help individuals and organizations tell their stories well. Stories about their social responsibility projects that improve the quality of life. Or about their contributions to make this world a better place to live in.

For example, the Shell Malampaya project does not only provide a cleaner source of energy, it also paves the way for sustainable social development programs to help underprivileged Filipinos, especially those living in Palawan, Mindoro, Batangas and Subic. On the other hand, GlaxoSmithKline’s anti-diabetes study involving 5,269 people promises to reduce the risk of developing type 2 diabetes and certainly gives hope to 4 million Filipinos who are affected by this disease today. Cathay Pacific Airways’ 60th anniversary this year reminds us that this airline was conceived by two soldiers in a classy Manila bar in 1946. These are shining examples of good deeds well told. Telling these stories well is what legitimate PR professionals do for the most part of their PR practice.

Unfortunately, a PR consultant does not enjoy the same respectability accorded to a lawyer, a medical doctor, an engineer or an architect because there are no educational requirements or licensing boards to regulate PR practice. Therefore, any Alfonso or Juan can hang up a shingle declaring himself as a PR practitioner. Companies who wish to employ a PR consultant have difficulty in selecting the right person because there are no standards by which to measure qualifications. Qualified PR practitioners are, on the other hand, demeaned by PR pretenders who do not have the experience, education and skills that true PR practitioners have labored hard to acquire.

Communications is the tool of the public relations consultant. And it is through communications that we, PR practitioners, must try and protect our honorable profession from being stripped of its legitimacy by incompetents who masquerade as PR consultants.

Public relations is a profession of great social impact. PR practitioners heavily influence the channels of communication and should therefore be held responsible and accountable for the attitudes and behavior of the publics they are constantly trying to reach.

It is the consensus in the PR industry that Piatco was merely using Liongson’s name as a convenient justification for a hidden expense.

Liongson is not a true PR consultant. He is not a member of the dominant Public Relations Society of the Philippines (PRSP), which held its 13th national PR congress from September 27 to 29.”

Thing I'd Like to See This May 2007 Elections

While buying a pack of Marlboro Lights in our neighborhood tiangge, I overheard a group of tambays hotly discussing certain polticial candidates and their chances of winning in the May 2007 elections. Their "political permutations" were not only entertainingly funny but were also quite right on. Their "in-depth political analyses" would have given Professor Pepe Miranda (of Pulse Asia) a run for his money. It is then that I realized that elections will definitely push thru. Not only are our friendly neighborhood tambays talking about it, recent developments are also pointing towards that direction what with Joe d V's cha cha choo choo train losing steam and the Sigaw ng Bayan-inspired People's Initiative encountering a blank wall.

Not to be outdone, I am also listing down the things that I would like to see this coming May 2007 elections. Katuwaan lang ni:

1. Susan Roces running against Iggy Arroyo. Miss Roces, Susan Sonora in real life, is a true-blue Negrense who was studying at La Consolacion College-Bacolod City before entering showbusiness. She spent most of her childhood in Negros Occidental and continues to have some relatives in the province.

At present, there is no local politician in the 5th District of Negros Occidental who is strong enough to challenge Congressman Ignacio "Iggy" Arroyo. The said district's former representative, Apolinario "Jun" Lozada (whom Iggy defeated in 2001), is not making his presence felt. Besides, should Lozada decide to square off with Iggy again, local pundits predict that he will be soundly defeated. On the other hand, the widow of screen legend Fernando Poe Jr. will surely give Mr. Arroyo a run for his money (no pun intended). For several years now, the Erap-FPJ opposition group has been outwitted, outsmarted and outclassed by Malacañang's political operatives and their every political gambit defeated time and again. If they are able to ease out Iggy from Congress, then it would be a small but meaningful victory for their group para makatikim naman ng panalo ang grupo nila. And besides, gusto ko rin naman makitang matalo paminsan minsan ang pamilyang Arroyo.

In a Roces-Arroyo fight, I predict that the political Godfather of Negros Occidental, Eduardo "Danding" Cojuangco would remain neutral since he has close ties to both. I also know for a fact that Iloilo 4th district Congressman Ferj Biron (who is a self-made millionaire) would be more than happy to see Iggy go and may even throw in some moolah to Susan's campaign kitty. This is so because the sister of Iggy, Marilou Arroyo-Lesaca, will be running against Biron in Iloilo. So the fight would be about even steven - a classic "moviestar popularity vs. money/machinery" grudge fight. The only downer is, I don't know if Miss Roces was able to register in Negros Occidental in time for the one-year minimum residency for candidates.

2. Cong. Ferj Biron running for Governor of Iloilo. A doctor of medicine by profession, Ferjenel "Ferj" Biron is a self-made man who made his millions importing cheap medicines from India and/or Pakistan and selling it here in the Philippines. Coming from a family of modest means in Barotac Nuevo, Ferj put himself through medical school in Iloilo City thru hard work, discipline and natural intellect. During the 1998 elections, he ran for congressman in the 4th district of Iloilo but lost to the incumbent, the late Congressman Narciso "Narcing" Monfort of Dumangas, Iloilo (who is incidentally also a medical doctor like Biron. Monfort's unforgettable campaign tagline was "Narcing na, Doctor pa!"). In the last 2001 elections, Ferj again ran but this time against former Passi Mayor Jesry Palmares, scion of the politically-prominent Palmares clan of Iloilo. This time, he won.

This coming May 2007 elections, Biron will again face a formidable opponent in the person of presidential sister-in-law Marilou Arroyo-Lesaca. Although not a tumandok (old-timer) of Iloilo, Lesaca was convinced to run for Congress upon the prodding of Biron's old nemesis, Jesry Palmares. Last month, Biron's fellow colleagues Iloilo Representatives Art Defensor, Janet Garin and Rolex Suplico approached Lesaca to ask her to run for Governor instead. The three representatives offered to unite and combine their political might in support of her gubernatorial bid if only to prevent "all-out war" between two administration forces in Iloilo (Biron is still a member of the administration Lakas Party in Congress). To their dismay, Lesaca turned down their offer.

As of the moment, there is no administration party stalwart in Iloilo strong enough to seriously challenge the incumbency of Governor Niel Tupas. At various times, the names of Vice Governor Armanda, Garin, Suplico and Lesaca were "floated" as possible challengers to Tupas but all eventually fizzled out. Formerly with the administration coalition, Governor Tupas chose to stick it out with Senator Franklin Drilon after the latter asked President Arroyo to resign in what is now known as the "Hyatt 10 Press Conference." Understandably, Malacañang wants Tupas out of the Iloilo Provincial Capitol.

If I were Biron's political handler, I would advise him to run for Governor instead. Let Lesaca have the 4th district, tutal mas mataas naman ang Governor e. I will also advise him to tell the three Iloilo congressmen: "O sige, ako na lang iiwas kay Lesaca. Tatakbo akong Governor if only to prevent 'all-out war' and defeat Tupas. Pero dapat suportahan ninyo akong tatlo." If Lesaca in her vindictiveness still decides to go after Biron and run for governor, at least I would have raised the financial stakes -- Lesaca now has to raise money to fund an electoral campaign in five legislative districts instead of one! (It is said that if there's something that Ferj has a lot of, it is money.) And Inday Marilou's " pagka-vengatibo " and Toto Ferj's "Christian-like humility" could be played up as a campaign issue in the local media and might just tip the scales in favor of Biron.

3. Alex Lacson running for the 6th District of Negros Occidental. Remember the book "12 Little Things Every Filipino Can Do to Help Our Country" which generated quite a buzz awhile back? Well, "12 Things.." was written by Alexander "Alex" Lacson, a young Manila-based lawyer who hails from Kabankalan, Negros Occidental. Idealistic yet soft-spoken, intelligent yet humble, Atty. Lacson to me is the epitome of what a leader should be. Despite his prominent-sounding surname, Alex grew up poor and put himself through school with the help of his many siblings. He first studied at the Philippine Military Academy but finding out that military life was not for him transferred to UP where he eventually finished his law degree (You can read more about him if you buy the book). Congress needs a fellow like him.

4. Rolex Suplico running for Senator. This did not come from me: this is the "buzz" currently circulating in Iloilo's coffeeshops. I suspect this "Rolex-for-Senator rumor" was floated by Suplico's camp in order for them to get a feel of the people's reactions. Be that as it may, I am interested to see how Suplico will fare considering that he is not even remotely within striking distance of the "Magic Circle of 12."

Incidentally, Rolex like Alex is also a former PMA cadet who quit and studied law in UP. Suplico is an "estranged" nephew of Governor Niel Tupas and is married to Teresa Cancio-Suplico whose family owns Goodwill Bookstore.

5. Nong Tawe running for Mayor of Roxas City. Emmanuel Billones or Nong Tawe to those who know him has been a trusted political lieutenant of the Roxas family for generations, and I mean it literally. Nong Tawe had worked for the late Senator Gerry Roxas in the '60s - 70s, the late Congressman Dinggoy Roxas from the mid-80s to early-90s and Senator Mar Roxas from the early-90s to date. His is a type of loyalty quite rare in politics nowadays. I would like to see him become Mayor of Roxas City for I believe that that kind of loyalty should have its rewards, di bala?

6. Toby Monsod appointed Chair/Commissioner of COMELEC. Toby Melissa Monsod is young, driven and very strict. Most importantly, she is IT-savvy having worked as DTI Assistant Secretary for IT and chairperson of ITECC. These I believe are the characteristics that a Commissioner (or Chair) of COMELEC should possess. Moreover, she had previous experience in the Commission having worked as her father's Chief of Staff back when Christian Monsod was still Chair.

Wanted: Reform Oriented Politicians

The Ateneo School of Government has published my review of their book "How to Win an Election: Lessons from the Experts" which they recently launched last August 29. For those interested, the book is now available for sale at the CSP-ASG (Ateneo Loyola Campus) and at the Ateneo School of Government (Rockwell, Makati City). For inquiries, please contact Mr. Bhodz N. Potestades or Ms. Jhett D.C. Aguirre at 4266061, 4266001 loc. 4643 & 4644 and Mr. Randy R. Baraoidan at 8905695 and 8997691 loc. 2402.

As their next step, the Ateneo School of Government is planning to conduct training seminars for aspiring, reform-oriented politicians on how to organize and to manage a succesful electoral campaign. The series of workshops will be held sometime on November-December in Luzon, Visayas and Mindanao respectively. The five-day seminar is for free. Interested applicants are required to submit an application letter (explaining their vision, values, qualifications and why should he/she should be chosen for the course). More importantly, he/she must be intending to run for public office in the May 2007 elections.

Lastly, the Ateneo School of Government also has published 12 case studies on the ethical dilemmas encountered by public sector leaders, most especially by our local police officials. The following are some of the more interesting case studies:

1. "Tapusin na natin ito."

2. "Katas ng Jueteng" (The Fruits of Jueteng)

3. "My Men Are Innocent"

4. "Hard Evidence"

Philippine SME Success Stories (Part 3)

HERMES METAL
Bohol

Barely three months after returning to the country in 1994, overseas seafarer and BS Marine Transportation graduate Hermogenes Comahig decided it was high time to stay put and be productive in his homeland.

Armed with the basic welding skills acquired as a seafarer, Comahig put up a welding, steel works, and metal crafts shop he named "Hermes Metal" in Tagbilaran City, Bohol to serve the needs of the construction industry of the city. The firm started with an initial capital of P150,000 plus a single welding machine, a push drill, two bench vises, one welder and one helper.

While it started small, the company soon earned the trust and confidence of more and more clients in Bohol and the neighboring provinces. Swamped with orders coming from as far as Mindanao, Comahig availed of a P1.3 million credit line under the SULONG program. The infusion of additional working capital enabled Hermes Metal to increase the efficiency of its operations though advanced technologies and new equipment.

Today, the firm has doubled its production of materials such as steel gates, steel windows, furniture, railings, and steel trusses, and other products requiring metal craftsmanship. Hermes Metal has also benefited from the rapid urbanization of Tagbilaran City and the mushrooming of residential and commercial establishments.

Like most entrepreneurs, Comahig is proud that he has been able to help a number of his town mates through his metal shop. "Providing jobs to my workers gives me a sense of fulfillment. And it's not just about the wages I give them. When they leave this shop, I know they have learned something valuable about metal craft which they can use in the future," he notes. Today, Hermes Metal employs 14 skilled workers, with the number swelling to around 24 during peak seasons.

Showing concern not just for his firm but for the metal industry in the province, Comahig has organized the Bohol Association of Metal Industries (BAMI). BAMI aims to uplift the quality of metal works of its members, as well as promote the sustainability of the metal industry in the province.

Philippine SME Success Stories (Part 2)

Aklan's Boneless Bangus

Aklan

Spouses Roberto and Reva Grace Sazon started making and selling plain and smoked boneless bangus (milkfish) in June 2000. It instantly gained wide market acceptance in Aklan because of its distinct flavor and taste. Soon, the demand for their boneless bangus increased not only in Aklan but also among distributors in other provinces and in Metro Manila.

When competition among producers of boneless bangus became tight, Mr. Sazon concocted non-traditional marinates to set their product apart. He then invited his family and friends for a taste test of the new flavors.

After getting positive feedback from them, he sold his produce in the local market which became popular among consumers for its unique taste and flavor. Their boneless bangus now comes in honey, barbeque, lemon grass, garlic, calamansi and vinegar flavors. Later, they introduced other preparations in response to other consumer demands like embutidong bangus, spicy flavored bangus, baby split deboned bangus, choiced cuts bangus and bangus belly.

The Sazons are now the proud owners of Aklan's Boneless Bangus - producer of quality and clean bangus which strictly complies with recognized standard for Good Manufaturing Practices and Hazard Analysis Critical Control Point.

At present, the Sazons manage their highly sanitized, well-equipped and organized plant with 45 skilled workers and office staff. They also employ regular workers for their fishpond which supplies milkfish.

Aklan's Boneless Bangus currently produces hundreds of tons of bangus products sold in its outlets in Iloilo and in Metro Manila. It also regularly supplies bangus to big clients like Red Ribbon, Chowking, Max's, SM Supermarkets, Gaisano Group of Companies and Macro Asia to name a few. Their products are also being exported to the US, norway, Japan, Canada and UK.

***********

Philippine SME Success Stories

Since July 19 to 23 has been declared "SME SULONG Week" by the government, I will be featuring several SME success stories to hopefully inspire Filipinos to also start their own small businesses. The following stories are to be found in the "SULONG Makes Enterprises Grow" souvenir program that was handed out during the SME Week opening ceremonies.

ALSONG POTTERIES
Nueva Vizcaya

Guillermo Peros, Jr. and Jenet Felipe Peros, both architects and sculptors of wood and clay, began their business primarily as a hobby. However, their love for art and nature, and the desire to keep traditions alive, transformed this hobby into a serious business.

Their creations, which include jars, candleholders, masks, plates, bowls, indoor fountains, garden accessories and art pieces received enthusiastic response from buyers at the very first trade fair they joined, the 2001 Pagayaya Festival, initiated and coordinated by the DTI. They were further encouraged when they joined the Congressional Spouses Foundation Trade Fair where they received "The Most Original Booth" award.

Alsong Potteries's participation in the Panagyaman 2003 (Nueva Vizcaya Provincial Trade Fair) in Boyombong, Nueva Vizcaya brought in P40,000 in cash sales. It took part in the 2003 National Trade Fair where it drew nationwide promotion, exposure, and acceptance. They were featured in Channel 2 and Studio 23 and in both local and national newspapers. All these helped in generating P84,670 cash sales during the fair, plus a hefty P171,275 post-fair sales from five buyers. Their regular buyers now include Tatak Pilipino, Carca International, Porwasa Sirinupongs. They also receive orders from specialty stores, antique shops, art galleries and boutiques.

Its most recent client is the coffee shop in one of the best known hotels in Nueva Vizcaya, the Saber Inn Hotel and Restaurant. A clear mark of distinction is the firm's inclusion in the Nueva Vizcaya Product Catalogue.

Aside from the marketing boost it got from the trade fairs, Alsong Potteries received support from various government agencies. Also, it was able to access loan from Small Business Corporation in the amount of P2 million. Peros also staged a week-long one-man show and exhibit at the Nueva Vizcaya Provincial Museum with the help of the local government unit. It was also referred to the Municipal Government for possible registration as BMBE client.

All this led to assets growth from P300,000 to P1.6 million; rise in average monthly sales from P10,000 to P60,000; increase of production capacity from 30% to 50% with the help of eight full-time workers (from six full-time workers) plus one group sub-contractor.

******

SME Week

I recall that during the 1970s, the buzzword of international funding organizations was "cooperatives" and most of the foreign-aid dollars coming into the country was alloted for the formation of electric cooperatives, farmers cooperatives, etc. In the 1980s, the new catchword then was "NGOs" (or non-governmental organizations) and most of the international money that poured into the country in the aftermath of the tremendous "goodwill" generated by the 1986 EDSA People Power went into NGO "capability building," trainings and seminars. Today, the favorite catchphrase of international donor institutions seem to be "SMEs" or Small and Medium Enterprises.

In the past few years, international donor organizations like the ADB, USAID, AusAID, JICA, KFW and UN (IFOD) have been sourcing money to fund the development of Filipino SMEs. This is so because in the aftermath of the 9/11 attack, America resolved to defeat terrorism by eradicating poverty in Third World countries since, as their theory goes, it is in these poverty-stricken communities where terrorists get their recruits. And one way to defeat poverty is by giving people sources of income and access to credit. If poor people are preoccupied with making money for themselves, then they will not be able to think of doing "shitty" things (to paraphrase President Bush). And if Filipinos are making enough money in their country, then they don't have to seek work in other countries.

The Arroyo administration has benefited politically from this foreign funding and has since translated it into government programs. One such program is "SULONG" which stands for SME Unified Lending Opportunities for National Growth. July 19 to 23 has been declared by Malacañang as SMED 'SULONG' Week and President Arroyo will lead its opening ceremonies scheduled today at the Market! Market! mall in The Fort.

Now on its third year, SULONG is the brainchild of then-DTI Secretary Mar Roxas. His idea was to improve credit access to SMEs and combining the financial resources of 7 GFIs (Government Financial Institutions) for a "unified" SME lending scheme. The 7 participating GFIs are the following: Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Philippine Export-Import Credit Agency (PhilExim), Social Security System (SSS), Quedan and Rural Credit Guarantee Corporation (QUEDANCOR), National Livelihood Support Fund (NLSF) and Small Business Guarantee and Finance Corporation (Small Business Corp.).

The over-all goal of SULONG is to release P72 billion in loans to SMEs over a three-year period (2003-2005) in the hope that by improving their access to credit, Filipino SMEs will grow into large enterprises. According to incumbent DTI Secretary Favila, they have surpassed their three-year goal; in 2003, P26.765 billion was released, in 2004 P27,050 billion and for the January-October 2005 period, over P25 billion in SME loans were already released or roughly P78 billion in all.

It is my hope that all these money being released to individual Filipino entrepreneurs will truly result in economic development and jobs for our people. SME development is truly our last best hope. We have already squandered billions of foreign-aid dollars by allocating it to the thousands of NGOs and cooperatives that sprouted in the 1970s and 1980s. Today, only a few hundred continue to exist. We have already seen that most group endeavors (like cooperatives and NGOs) fail because of the human factor (i.e. mismanagement, jealousy and distrust among members, etc.). Maybe this time around, if we give the money to individual enterprising Filipinos (who only have personal profit in mind), then the chances of success of SMEs might be better.

The Real Reason Why Wages in this Country are Low

The Regional Tri-Partite Wage Board has approved a P17-P20 increase for West Visayan laborers. I predict that militant labor unions, which petitioned for a P75 increase, will view this as an "insult" and will probably protest the measly increase. But local businessmen and sugar planters have claimed that P10-P12 is the most that they can afford without laying off workers so I guess the P17-P20 figure was their agreed compromise amount. Presently, the daily minimum wage in Western Visayas ranges from P160 (for agricultural workers) to P205 (for non-agricultural /industrial-commercial workers) or around P5,000 a month.

Historically, our highly politicized labor unions have been largely successful in agitating government to raise the minimum wage rate, so much so that the Philippines today has one of the highest minimum wage rates in Asia. But the question is, why is the Filipino worker still among the lowest-paid in the region despite the fact that we have one of the highest minimum wage rates in Asia?

The real reason why workers’ salaries in the Philippines are low is because most business enterprises here are small. According to data from the Department of Trade and Industry, 99.6% of Philippine businesses are classified as Small and Medium Enterprises (SMEs) and they employ the biggest number of Filipinos today. Under DTI’s definition, Small Enterprises are businesses with assets between P3 million to P15 million and Medium is defined as businesses with assets amounting to P15 million up to P100 million. Aside from the SMEs, there are also the Micro Enterprises which are classified as businesses with assets of P3 million or less. Large corporations, which have assets of P100 million and above, comprise only 0.4% of total businesses registered in the country.

In other words, almost all businesses in the Philippines are, quite literally, “mom-and-pop” operations because they are family-owned, family-run and family-staffed ventures usually employing three to thirty persons. SMEs are the ones most affected every time government raises the minimum wage. This is so because the profit margins of these SMEs are small and most can even barely afford to pay their workers industry-level rates. The biggest irony is that it is the Large enterprises which pay and treat their employees well, in contrast to how activist unions and Leftist groups usually depict them. "Ibagsak ang capitalista!" is an oft-repeated catchphrase during their rallies. But the truth is, multinational corporations pay their regular employees above-market rates aside from providing adequate medical care, health insurance and other benefits.

Nowadays, the only way an ordinary Filipino can earn, say P50,000 a month, is by being employed as an executive in a multinational firm or by setting up his own SME or by becoming an OFW (Overseas Filipino Worker). But since they comprise only 0.4% of industry, employment opportunities in the corporate sector is very limited and one has to have excellent academic and professional credentials to get in. The path many Filipinos take nowadays is by migrating abroad to work as domestics or under-employed professionals. While their dollar remittances are good for the Philippine economy in the short term, many sociologists predict that massive migration will be harmful to our society in the long term. Even today, we have begun to see the negative effects of the OFW phenomenon in terms of societal dislocations, failed marriages and family members drifting apart.

The way I see it, the only real solution to the problem of low wages in the country is by making our Small and Medium Enterprises (SMEs) into Large. We cannot totally rely on foreign investors to generate employment because, as we have seen, they cannot really provide jobs to all Filipinos. Nor can we completely rely on our OFWs because, as we are seeing now with the proliferation of shopping malls, their dollar remittances will only turn our country into a “consumerist economy” wherein consumer spending rather than industrial production or manufacturing determine economic growth. Our SMEs must learn to tap the international market in order to grow. Filipino entrepreneurs must be able to harness their creativity, increase their productivity and constantly upgrade their technical know-how in order to compete in the world market. Tapping the foreign dollar market is the only way for our SMEs to increase their profit margins and eventually evolve into big business entities. Only then can ordinary Filipino workers expect to receive salaries which are at par with the rest of the world.

How to make SMEs graduate into large corporations is really up to individual entrepreneurs and our government agencies.

******

Please read this Philippine Daily Inquirer feature article on small businesses which made it to the big leagues.

JVO Investigative Journalism Awards

Congratulations to my batchmate and fellow Cervinian Dax Lucas for winning in the recently-concluded 2006 JVO (Jaime V. Ongpin) Investigative Journalism Awards. His Philippine Daily Inquirer news article on the CAP pre-need controversy (which he co-authored with PDI reporter Elizabeth Sanchez) won 2nd place for the Investigative Reporting (Daily News) category. Dax used to work for TODAY newspaper, joining the Inquirer as a business reporter when TODAY was swallowed by Manila Standard. Aside from being an excellent business news writer, Dax is also an avid fencer and was a former member of the Philippine National Fencing Team (back when Richard Gomez was also into fencing).

My wife, who writes for Newsbreak Magazine, was also one of the finalists under the Investigative Reporting (Non-Daily Category) although she did not win this year. But I am proud to say that her articles get nominated to the JVO Finals almost every year eversince she first joined Newsbreak in 2001. Her two investigate reports, "Barber's Cut" and "Tony's Fortune," won 2nd and 3rd Place respectively in 2003. In 2004, her "Reclaming Land, Tony Leviste Style" was likewise nominated. This year, her investigation into the involvement of military intelligence agents in the Mt. Diwalwal gold mining industry entitled "Guns and Gold" again made it into the top 5 JVO finalists.

Newsbreak's Gigi Go, who wrote "Cheats, Inc.," won 2nd place (Non-Daily Category) this year, losing out to PCIJ's Luz Rimban who wrote about the use of government funds during the last 2004 elections. For the complete list of JVO Winners and Finalists, go here.

Over at the World Cup, Germany defeats Argentina, 4-2. Read more here. "Don't cry for me Argentina........"

Meanwhile in Iloilo City, the First National Conference on Tricycle Transportation Management is currently being held at the Amigo Terrace Hotel here.
Organizers claim that 84 percent of Filipinos use tricycles as their primary mode of transportation.

A photo of a typical tricycle in the Philippines.

Population Confusion

British Ambassador to the Philippines Peter Beckingham was in Iloilo last week to check on various UK-funded development projects. His first order of business upon arriving was to lay a wreath at the statue of his compatriot Nicholas Loney, who a century ago changed the destiny of Iloilo City by developing sugar into a major export crop. Before departing, Ambassador Beckingham made a statement to the media exhorting officials to double their efforts in curbing the region's population growth rate.

I don’t know where the good Ambassador got his data but Western Visayas today does not have a problem with its population growth rate. According to the Population Commission (PopCom), the current annual population growth rate of Region 6 is 1.56%, way below the national average of 2.36%. Likewise, the population rate of major cities in Region 6 are below the national average. Iloilo City, for example, is at 1.93% while Bacolod City is at 1.39%. In fact, some cities in Western Visayas suffer from negative growth rates. According to PopCom data, Silay City has a negative 2.76% growth rate while Sipalay City has a negative 0.64% rate. San Carlos City in Negros Occidental has the highest population growth rate at 3.34% followed by Talisay at 3.17%. I cannot see how we can further reduce our population growth rate in Western Visayas without compromising the future of our race. You see, a population growth rate of 2% is needed to replicate or perpetuate our species.

But I agree with Ambassador Beckingham that we should do something about the run-away population growth in the other regions of the Philippines. Overpopulation has a “multiplier effect” and is the root cause of most of our problems today: widespread poverty, pollution and environmental degradation, scarce employment and livelihood opportunities, inadequate basic services, poor student literacy, etc. There are simply too many people competing for scarce resources and we are producing more children than we can support.

But I differ with Ambassador Beckingham in the sense that I want us to gear our population management program towards encouraging college-educated Filipinos to produce more children while discouraging our less-educated countrymen from having too many children. This is because college-educated parents are most likely to produce college-educated children while poorly educated parents are most likely to produce poorly educated offsprings. The condition in the Philippines today is that less-educated Filipinos (who are generally less prepared financially and psychologically to raise children) are producing more children while our college-educated citizens are putting off having children. Moreover, our college-educated women are finding it hard to find suitable males to marry since Filipino males are generally adamant of marrying better-educated women. Our PopCom officials must find ways to reverse this cycle.

This "reverse" population management has been done before in Singapore by former Prime Minister Lee Kuan Yew. As Singapore became more developed and its citizens more educated, the population growth rate in the city-state decreased. So Lee Kuan Yew thought of setting up a Singaporean match-making agency to help young Singaporeans find suitable mates. Although he initially drew flak for using Singaporean government funds to establish a dating service for young Singaporeans, Lee Kuan Yew's proposal eventually gained public support and many young couples today are thankful for the government "match-making" service he started.

That is why I was intrigued with the proposal presented by anti-child abuse advocates in the United States to require prospective parents “a license to give birth.” Their idea is to require aspiring parents to undergo parenting classes, psychiatric evaluation, drug tests, etc. to determine if they are fit to be good parents. Their money-making abilities and financial status will also be scrutinized. After passing this exam, only then would the couple be allowed to have a child. As one advocate succinctly put it; ”You need a license to drive a car, to carry a gun, to practice a profession, have a dog, heck even to catch a fish....but any ass can be a parent.”

I know the idea sounds “fascist” and I am not sure whether the group is really serious or just trying to dramatize a point. And even if, by some miracle, they manage to have a law enacted mandating a “license to give birth” decree, I cannot imagine how it can be implemented. But I agree totally with what they are trying to illustrate, which is: parenting is a serious responsibility. Children are not “economic units” to be used as household help or income-generators but demanding wards who require careful care, emotional maturity and much money.

My heart aches everytime I see streetchildren, especially in Metro Manila. Seeing them sniffing rugby along major thoroughfares, the foremost thought that comes to mind is: where are the parents of these kids? I sometimes feel so angry that I want to see the irresponsible parents of these children in jail. Unfortunately, it will not solve but only aggravate the problem. In the end, the solution is for government to implement a massive population management program aimed towards educating couples on how to become good parents.