Thursday, October 27, 2011

A great people: The Philippine Advantage

A great people: The Philippine Advantage

by: Peter Wallace

I have often wondered why the Philippines is so poorly regarded
internationally (the lowest levels of foreign investment and smallest
number of tourists confirm this).

There's so much that is attractive about the Philippines-but it's not
known. The image of the Philippines is of bungling cops unable to
break down a bus door so eight tourists die. The image of New Zealand
is of a country that rescues, nurtures and sends a penguin back home
to Antarctica. A country that cares is not careless.

You have an image of a country from minor events, not from in-depth
knowledge. Well, the Philippines is not a land of bungling cops
(Incidentally, I'd almost guarantee that the promised properly,
professionally equipped, intensively trained rescue team has not been
created. If it is, I'd like to see a demonstration), but of talented
people who perform as well as, or better, in many cases, than anyone
else.

The situation is so bad that at many events the Philippines is not
compared poorly to elsewhere, it isn't compared at all. It's not on
the list.. I really have no simple answer to why this is so, despite
I've thought and thought about it over the years. Here is a country
with a warmth, hospitality and friendship you won't find anywhere
else.

Multinational corporations tell me that their operations here are
ranked up at the top on performance, efficiency, profitability amongst
their subsidiaries around the world. That's reality. I can tell you
loyalty of staff is incredible. My team thinks nothing of working way
beyond eight hours if the client or project needs it. Of working years
for us in a belief in what we do. That's a loyalty replicated in
numerous companies Texas Instruments doubled its investment here
because after a typhoon that devastated Baguio and many of TI's
employees' houses, the employees were all back at work the next day.

I wrote a booklet some years ago to help foreigners new to, or
thinking about investing and living, here understand what they're
getting into. I listed the country's best features based on various
surveys, as: 1) English language proficiency; 2) Labor availability,
quality and reliability; 3) Adaptability to Western culture and
practices; 4) Market potential and size; 5) Educational attainment; 6)
Low cost environment; 7) Positive Filipino attitude; 8) Quality and
quantity of middle management and technical people; 9) Comfortable
local lifestyle; 10) Strategic location; and 11) Good telecoms
infrastructure.

Note how much of it is people: it's the Filipino. Close to 9 million
of them around the world tell you that, too. The global shipping
industry experienced a great slump during the recent world economic
meltdown, yet Filipino seamen didn't lose their jobs. Other
nationalities did.

But note too how two of the most important features (English
capability and education) are being thrown away. My wife was taught in
English, her home spoke English, English was the language of choice..
Tagalog was placed alongside it. Today, misplaced nationalism seems to
think Tagalog must be spoken as it's the language of home so it's
easier for kids to learn in it. Yes, the language of home is the
easiest language to use to impart knowledge, but 40 years ago, that
language was English.

The other argument is that Tagalog identifies the nation. Well I speak
English, not Aboriginal; Americans speak English, not some red Indian
language. Language doesn't define a nation, language is for one
purpose, and one purpose only: Communication.

The world speaks English. More than 300,000 Filipinos have jobs in
call centers because they speak English. Another 200,000 are employed
in other business process outsourcing sub-sectors like transcription &
digital content/game development where English is also the primary
language used. Most of the nearly 9 million Filipinos around the world
have jobs because they speak English. None is there because he or she
speaks a Filipino dialect The inter connectivity of the world, the
explosion (the only word) of globalization makes English essential if
we are to be a leader in the IT industry where we've done so well
already. So it must be taught equally with Tagalog, not as a second
language.

It also means education is ever more essential, yet we've just lost
all our universities out of the world's Top 300. Some 35 percent of
kids never finish primary school, another 27 percent drop out from
secondary. Of 100 primary school entrants, only 14 earn a college
degree. The deterioration of the educational system is heart breaking
and is becoming a major deterrent to new investment. There are still
enough Filipinos to meet industry needs, but it won't continue. The
BPO industry, where the Philippines is a world leader, can find enough
people now, but soon it won't be able to. Not having enough money to
fund education is not an excuse. There is enough money-if corruption
is stopped as the President wants; if schools are built, not
monumental government offices (go see the opulent monstrosity in
Calamba to satisfy someone's ego); if tax effort (taxes as a share of
GDP) is brought up to the 17-18 percent as elsewhere in Asia; if tax
changes are pushed through (sin tax amendments and fiscal incentive
reforms could add about P95 billion that could be put into education
and health). The money is there. Lack of money is not an excuse.

The other human factors that make the Philippines so attractive remain
strong, so how do we get the world to know about them? Spend money,
that's how. Market the Philippines aggressively. Create the image
(based on what is the reality). It's a job that Tourism Secretary Mon
Jimenez and Trade Secretary Gregory Domingo must be tasked to do. And
that, Congress should agree, should be liberally funded-the returns
will be multiples of what is spent.

We can't sit around and wait for the world to discover the real
Philippines, we have to tell the world. But forget the stereotyped,
unimaginative ways: Rescue a penguin. Get the world to stand up and
take notice.

When you market something, you sell its best feature, you identify the
product with a unique feature. Well the unique feature of the
Philippines
 is the Filipino. I'd sell the Filipino, concentrate on
getting the message across that the reason to invest or visit is
because the people are great.

No one wants to see a church, they want to see a temple. Beautiful
beaches abound around the world, but people that make for a wonderful
experience don't. Workers that go beyond what is expected elsewhere in
the world are as scarce as hen's teeth (I presume hens have no teeth,
I've never looked).

What must go hand-in-hand with this, though, is a change in the
leadership of the country. Over the past 40 years, China has leaped
past the Philippine, as I explained last week, for only one reason:
better, more focused, more idealistic, nationalistic leadership.
Nothing else was different, it can be the only logical conclusion.
Three of the country's past four leaders have been accused of
corruption, of putting themselves before the nation. And many of the
people below them have replicated that attitude. So the Philippines
sank off the map.

Can it be made to surface again? Can we get a truly patriotic
leadership? This is the challenge for President Noynoy Aquino. It's a
challenge he seems to have accepted, but can he bring the other
leaders along with him?

That's his real challenge. Can he change the wang-wang culture at all levels?

Can Filipinos truly care for their country, not themselves. After 333
years in a monastery and 45 years in Hollywood – close to 400 years of
foreign domination – who wouldn't want to think only of themselves and
protect their families? But 113 years of independence is surely enough
for Filipinos to realize it's their country now and they must care for
it, genuinely care for it – in action, not words.

Sell the Filipino to the world, it's the Philippine advantage.

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