Linggo, Mayo 5, 2019

Pro-Philippines & Pro-Development Answers to POGO Chinese Workers Constructive Views on the Chinese Workers in the Philippines

Whats the false news circulating about Chinese workers here in the Philippines? We have done an integrated analysis from combined theoretical, operating, political and comparative historical viewpoints,  with rough but visible data for ground operators we can show, unlike the speculative and contradictory, negative views espoused by those who never had to produce results in reality:

  1. The Chinese workers in the Philippines are not taking Filipino jobs as repeatedly asserted without verification by several local and international Filipino writers and picked up by the anti-China western media.  The jobs require Mandarin cultural fluency and compatibility with the market, which in vast majority of the cases Filipinos cannot do. They are in fact among the largest job creators for Filipinos in the last 3 years. Their presence had the following effects:
  2. Filipinos do not want those jobs. Apart from language and cultural skills, the DOLE and different industry surveys will show the Filipinos who actually want a job are already employed , ie there is a shortage of construction people, drivers, domestic help, accountants, lawyers, etc due to strong Phil economy.
  3. Thrive, not survive.  Strong economy, but we should not be complacent, we should prepare how to thrive under globalization.
  4. Phil economy saved from downturn or recession. The Chinese POGO add vastly to the economy, and probably saved it from a collapse or recession. In 2017 first quarter, realty prices on sale and leases began dropping, and given the massive expansion plans of many developers, may have rolled into a fast drop (especially with the increasing interest rates from the bank) which would have affected other industries as well.  Instead all the leaseable spaces in office and residential in Ortigas, Makati, Moa, Manila, Cebu, Davao, Iloilo have been taken up and prices have increased more than 50 percent, and urban building has continued to boom. Build x3 program of Duterte is also responsible for the countryside boom but the city declines might have cascaded into recession and even possible sectoral panic and collapses.  Collier and Leechiu studies attest to this, and so people from different sectors and industries.
  5. The Biggest spenders..Huge consumption growth. Assuming the data of 200 thousand workers, each spending at least 30th monthly in expenditures for residence, food, transport, and weekend tourism and entertainment,  at least 6 billion pesos is pumped directly into the economy a month, not including the property sales and leases in commercial and residential, which Ayala alone reported to be 15 bln in sales alone in 2017. so added spending should be in the 10s of billions at the least in 2018. Not including capital investments in industry, resorts, etc., which should bring levels to 100 billion range, not including multiplier effects and the partnerships with the locals.
  6. Fearmongering without basis. There are some quarters that attempted to raise fear by conflating and headlining the numbers that 3 million Chinese entered the Philippines.  This 3 mm are tourists, with a smaller number of workers. Japan and Vietnam in spite of ongoing disputes with China continue to attract over 5 million Chinese tourists each generating billions of and creating countless jobs for the host countries (Thailand has over 10 million Chinese tourists). Some opposition or misled  Fil in HK and anti Duterte forces  in US want to portray  a flood of unemployment created, when the reality is a flood of employment and investments were created.
  7. Inclusive economy. Ask the lawyers, accountants,  brokers, restaurants, bars, guides, small condo owners, resort owners, etc. around the city how their business has multiplied with higher spending clients and turned around when many that were on the brink of bankruptcy. Domestic help, drivers, cooks are being offered double their salaries, wet markets prices esp for seafood are having robust sales with record prices. What should the Filiipinos do with this massive added income and asset values?
  8. Business builders. Have you seen the 2nd tier restaurant rows in Makati, Greenhills, Quezon City, Manila, Pasay lately? Have our writers searched their effects on and  investments in other industries? 
  9. Halo effect.  The boom that can be felt despite Western media declaring companies are leaving are belied by investments all around the country, such that others nationalities are attracted to come and ride the boom in services, entertainment, development, going on… Singaporeans, Taiwanese, Koreans, Malaysians, Japaneses, Indonesians, Europeans are investing where they did not use to, because of the expanded market including Pogo, industries, tourists, and investors. The PH is now using more foreign architects, store designers, management consultants, quality equipments, because of the more robust volumes and diversity the Phil is experiencing.
  10. A VIRTUOUS CYLE IS BEING CREATED as these added volumes of business lead to investment in quality, technology and variety, leading to further volume and upgrades of the market quality coming to the Philippines. OUR MOST IMMEDIATE BOTTLENECK TO THIS GROWTH IS OUR LOGISTIC INFRASTRUCTURE, which hopefully buildx3 may improve in 3 to 6 years after an expected period of pain.
  11. Ground realities Not just Pogo. If you can see in the industrial zones, resort areas, logistic enterprises, entertainments, you will feel the effects of the flow into the economy’s various sectors.  Most of the multiplier effects are not reported. 
  12. Big positives to High Risk and abandoned areas.  Many of the Chinese are the highest risk takers and managers, they are developing investments, services, relationships in areas that even locals do not want to venture into… they are in Sulu, Tawi-tawi, Mindanao, not just the usual Boracay, Bohol, Cebu,… They are in the rural areas around the country that our own elite and business owners and professionals are not even interested in investing in either because of dangers or what are concerned unviable volumes.
  13. COMPARISON. These workers are not like other minorities becoming financial dependents or on welfare, or creating a crime wave, or fights wherever they go, although there are crimes and annoyances from some of their lack of finesse… but so were the early groups of Americans, Japanese, Koreans.  They do not generally pick fights, and when caught in violations they are subject to our laws… in fact subject to more focus and attack and extortion, than other nationalities that even as a national, official, and publicized policy consider themselves above the Philippine law here.  Their number is only a fraction of the Korean community residing here, but their economic impact is a multiple.
  14. Perspective thats productive.  Nowhere in the world does growth and development or relationships follow a straight line of everything happening according to what you require or want. Filipinos have to learn to be more opportunity-minded instead of negative, to not be purist intellectual, they have to be aware of what is really happening in the world, who is the proven bully,  and what works or not.  And we as individuals, a people, need to ride the tides and create our innovations and systems, not always complain about the world and others’ success or failures,  We need to study commercial, scientific, professional success and not focus only on beauty contests and entertainment. 
  15. Taxes to pay, and the Filipino should benefit.  We need to put things in perspective, not focus on small things instead of the the big net effects and trends In this case, lets regulate the taxes and movements, but not demonize over small events, or overtax or overcharge, hurt relationships with excess bias,  or stop the flow of economic, social, and political improvements because the current situation is tremendously beneficial to the large number the Filipinos— any raised issues can be adjusted, imprved.
  16. Show us what are productive changes to make? Due to space limits, in another article we will give some proven models and ideas for the Filipino. We invite  a group of writers and naysayers to join us if they wish, in seeing what is happening on the ground, but  only if they will be open minded , consistent, and not apply double standards to emphasize on one group what they do not on others. 
  17. Good or not good? Economically at this time very good for Philippines. BUT WE MUST NOT RELY ON THIS, BUT USE IT AS AN INTERIM BENEFIT..NOT JUST ECONOMICALLY, BUT BUILD WHAT SOCIAL, PEOPLE, AND POLITICAL RELATIONS WE CAN THAT CAN BECOME MORE FUNDAMENTAL AND LASTING benefit to everyone. History has shown that some peoples are able to take advantage of non-lasting benefits and convert them to lasting ones.. the original non taxation of trade in Singapore turned it into a trading powerhouse, the forced entry by US in Japan opened their eyes to new technologies and they studied them to become a power itself… WE SHOULD LEARN THE DIFFERENCE BETWEEN THE NATIONS, COUNTRIES THAT MADE IT AND THOSE THAT FAILED… the factors have not been form of government or natural blessings or calamities, THE GREATEST FACTOR IS REALISTIC, INNOVATIVE ATTITUDE AND FOCUS ON WORK MORE THAN POLITICS.  The Western and opposition’s demonizing this and anything from China is the result of their double standard and weapons- , conflict- and world domination without regard for mutual benefit- based economy,  as they don’t seem to have an aversion to far worse … invasions, assassinations, coups, massacres, interferences, refugee creation,  in countries to simply take what they want without compensation to nations involved, . We should choose the path of peace and development even with imperfect situations and work our way ahead instead of endless excess focus on disputations. PROGRESS DOESN’T TRAVEL IN A STRAIGHT LINE OR FOLLOW THEORY! THEORY and DECISIONS NEEDS TO FOLLOW REALITY .  But of course WE MUST STILL MANAGE SITUATIONS THAT THE NEGATIVES DO NOT GROW BEYOND THE POSITIVES (ie Reality is still subject to our influence, but isn’t our creation or slave!) 
  18. If we don’t want the Chinese, let us be clear about it and accept the consequences.  We cannot complain when they end up going to our neighbors!
  19. Globalization: Biggest bookstore, Amazon, doesn't own a single bookstore. Biggest hotel, AirBNB, do not own a single hotel. Biggest taxi company, Uber & Grab, do not own a single taxi.  The key is not about ownership, but to be part of the income stream.  If these Chinese investments / laborers / gamings are in the Philippines, as long as issues can be managed, and Filipinos are hardworking and entrepreneurial, these "new energy" can only redound to a more dynamic economy that can help speed up our quest for more inclusive growth.  Indeed, latest World Bank report states:  "Philippines is on GOOD TRACK to MAINTAIN INCLUSIVE GROWTH and achieve high-middle-income status..."

Integrated Development Studies Institute (IDSI) specializes in frameworks based on a balance of economic theory, historical realities, ground success in real business and communities, and attempt for common good, culture, and spirituality. Political directions may sometimes result from these views, but are not the substantial basis of the positions. We welcome logical feedback and possibly working together with compatible frameworks.

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