Just about everything in the Philippines is propped up by things foreign. Foreign remittances buoy consumption upon which a no-sustainable-results Chinese-imports-hawking retail industry used to thrive. “Foreign direct investment” funds a vast labour-added-value high-import-input manufacturing industry that adds very little (even by Pinoy standards) to the collective intellect of the society. Savings and pensions from the more senior members of the 8-million-strong Filipino expat community serves as the sand dune upon which a jeepney-like speculative property market was built.
Now that the developed world has started to hunker down and come to terms with the reality of a sustained implosion of their economies brought about by a long-overdue re-alignment of perceived value (as prescribed by the monetary system) to real value (as prescribed by, well, reality) — specifically the continuing eradication of bogus “value” talked up over the last several decades by “expert” analysts and “economists”, we are left scratching our heads as we ponder the fates of countries like the Philippines.
Specifically, the direness of the prognosis for The Regional Basketcase is underscored by its placing 140th in a list of 181 economies ranked by ease of doing business — down four notches from our 2008 ranking of 136. Talk about Pinoy-style progress!
One of the trumpeted “hopes” that a vast army of “heroic” but jobless OFWs will not starve to death in their own homeland is the supposedly rich “opportunity” for doing business in the Philippines awaiting their “enterprising” lot. Interestingly enough, the stand-out metric that contributes to the ease-of-doing-business indicator is the line item “Ease of starting a business” in which the Philippines in the usual form we have all become accustomed to plumbs the 155th slot of the 181 ranked economies. So in the bafflespeak of the “national language”, mantakin natin ito. A 15-step “procedure” and a timeline encompassing 46 days of bureaucratic bliss, describes the “ease” by which one can jump into the wonderful world of Philippine business enterprise!
The clock is ticking! Already, the value of Philippine exports is in a freefall! Not that this is surprising considering that our place in the hierarchy of globally competitive value proposition has always been precarious. As Ambeth Ocampo wrote of our ingenuity-challenged use of our otherwise excellent marble deposits in Romblon in a September 2005 Inquirer article:
What did the people in this sleepy town [of Romblon] do with their marble? They made them into tombstones, mortar and pestle. As a tourist, I asked myself: How many “lapida” [tomb markers] and “dikdikan” [pestle] do I want? How many lapida and dikdikan do I need? Come to think of it, how many lapida and dikdikan do they sell in a year? Here is a region that has skilled manpower and an almost inexhaustible natural resource, but their products are unimaginative. If culture comes in to introduce new designs and new uses of Romblon marble, that would go a long way in developing the industry and the province.
With enough wit, one can easily find the humourous irony in the whole idea that the average Filipino craftman’s vision when regarding a block of raw marble does not go beyond a polished tombstone.
I go further to observe citing the above passage in my book:
Indeed, one can draw similar analogies in the Filipino entrepreneur’s penchant for following a “me too” approach to getting into business. There is an almost lemminglike behaviour in the way Filipino entrepreneurs get on a business model bandwagon. This behaviour accounts for the lechon manok (roast chicken) and shawarma (Mediterranean wrap) booms in the 80’s and 90’s. The proliferation of jeepneys and tricycles also illustrates how such safe but low-returning (and, in the long run, unsustainable) ventures are among the favourites of individuals with a bit of capital to apply. Lately it is call centres and business process outsourcing (BPO).
Yet in times like these where even the mightiest society on the planet exercises a bit of humble introspection in laments like this…
We have created a system for growth that depended on our building more and more stores to sell more and more stuff made in more and more factories in China, powered by more and more coal that would cause more and more climate change but earn China more and more dollars to buy more and more U.S. T-bills so America would have more and more money to build more and more stores and sell more and more stuff that would employ more and more Chinese …
…we as a people continue to ignore the in-your-face reality that virtually no evidence exists to substantiate any “hope” that a prosperous Philippines exists somewhere in our cloudy future much less one that can ride the troughs of “crises” like this with dignity.
Contrast our continued fixation on ocho-ocho politics (if we are to consider serious Filipino blogs as representative of the focus of our intelligentsia) to the substance underpinning the optimism applied by the people of temporarily belleaguered economies of the advanced world as they find solutions (quoting from the same NYT Op-Ed):
People are already using this economic slowdown to retool and reorient economies. Germany, Britain, China and the U.S. have all used stimulus bills to make huge new investments in clean power. South Korea’s new national paradigm for development is called: “Low carbon, green growth.” Who knew? People are realizing we need more than incremental changes — and we’re seeing the first stirrings of growth in smarter, more efficient, more responsible ways.
Certainly when placing bets, one would regard a society that remains addicted to ogling images of the remains of crime victims and continues to be fixated on issues surrounding “election automation”, “licensing” of bloggers, “credentialisation” of journalists, “snubbings” by American Secretaries of State, a bit differently from societies that put sustained development at the top of their agendas.
It’s simple, really™ — but obviously not for the small-minded.
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“also illustrates how such safe but low-returning (and, in the long run, unsustainable) ventures are among the favourites of individuals with a bit of capital to apply.” – benign0
Well, yes indeed! But RP apologists would say that the same ‘smallness’ of the Philippine economy would portend well in this global economic crisis.
RP’s less value-added exports would not have the same downward spiral from collapsing exports in electronics, plasma screens, etc. like what is happening in Singapore and Taiwan.
The ‘pawnshop’ paradigm of the Philippine banking system did not take such big hit from the collapse of derivatives and other sophisticated financial instruments.
As people return to back-to-basic consumption, there will be a revival of taste for lechon manok and goto-lugaw.
The big population-low production scheme of things would ensure that local producers like San Miguel, RFM Corp, etc. would have a steady domestic market. No need to export in a de-globalized world.
If you dont like doing business here then don’t. Its that simple really :)
Why dont you blog about more RELEVANT issues like the evil VFA, China’s attempt to take OUR Spratleys and, of course, Sabah’s state of denial to the self evident fact that they will be so much better under Pinoy Rule.
yeah even as the government says it is pro enterprise, it does the opposite and makes things difficult for businesses to thrive.
@cocoy: perhaps a number of local governments can be exceptions to this. I have seen cities process business permits in minutes.
@bigenya good point.
i think this old quote will suffice “where the hell are we and why are we in this handbasket?”
bigenya,
When I used to be Head, Business Permits & Licensing Office of a city, I can say my office can process business permit in less than the 16 minute standard set by another model (modesty aside).
Truth is, new systems, procedures and practices, when set in place, remove red tape by a 100%.
In fact, I subscribe to the view that where there is less collection (in business tax), there is more corruption. Inversely, where there is more collection, there is less corruption.
benigno,
You are right. FV is not one of societies you theorized should focus on sustained development on top of the agenda.
Being fixated to the various “here and now” issues that plague society would of course be the first step toward development in the larger sense and therefore, the works of FV bloggers and commenters who blog or post on issues they like to discuss ought not be undermined.
But no one stops you from saying whatever it is you want to say but we cannot really stoop too low for your own sake.
Truth to tell, I never even have to attempt to read any of your blogs as I don’t find any of these interesting enough – each blog too verbose, too high falluting, too mixed up as to elicit confused mental images.
You will find that unfair but readers get to be affected by the seeming ride to nowhere that may best characterize your every work.
For instance, I am not sure if you can ‘contract’ your first paragraph in a more intelligible single sentence.
There are two intellectual traditions across Europe in some earlier past and that school of thought that I subscribe include philosophers who simple want to communicate in simple language.
Forgive me for reading this one of your pieces but I did it in the reverse by first reading the comments that followed the main text and something there caught me and then I think I have to read the whole piece to situate my understanding in the context of the blog.
Below is a cut and paste from
http://forum.gov.ph/thread.asp?rootID=34359&catID=4
It gives good insight to what really goes on.
“Burat and Trebs,
Yes, doing business in America is what you call ETDBW (Easy to do business with). They really have made it easier for just about anyone to open a business. This is the reason why the biggest employers here are the small businesses, not the IBMs, the Microsofts or the Procter and Gambles. Getting a Tax ID (TIN sa Pinas) is as simple as dialing a number on the phone. Getting your name registered is as easy as going into the internet. Getting financing is also easy = the trick, get a good business plan. All this IS NOT HAPPENING IN THE PHILIPPINES, unfurtunately. Tapos ang yabang pa nang Pinas to tell everyone that we are the most literate daw sa mundo. PWEDE BAAAA?????
Trebs, I am in the IT field. I will share it later. But here’s our experiences so far.
DTI
When you register at DTI, get at least 3 unique name. We did. But the line is about 6hours till you get to the lady who issues licenses. It takes another hour for the question and answer forum ek ek whatever. At eto ang nakakatuwa – THEY WERE THE ONES WHO CHANGED THE NAME OF MY BUSINESS! I was pissed! But I don’t want to go through the hell of lining up, makikipag-away ka pa sa matandang babaeng yon, ipapasa ka from Pasig to Makati dahil kesyo dun ka raw nakatira sa Ortigas so sa Pasig ka kukuha. Pagdating sa Pasig, IT field ang business mo, dun ka kukuha sa Makati. PUTTTAAAAAA!!!!! So after about 2 weeks of p^nyet@ng init, trapik, linya, at mas reyna pa saakin ang mga hudas na to, nakakuha rin nang license! GLORIAAAA! Tinanggap ko na lang ang pangalan nang business ko.
BARANGAY PERMIT
So the building owner has granted us the lease. Kelangan ngayon ayusin ang shop. So I hired an interior designer. Dami palang permit sa barangay level. Nagkataon, pasko. Ang p~t@ng barangay captain nag-pa-order nang lechon at kami ang pinagbayad. Narinig nong kapit-barangay captain. Birthday daw nya sa linggo. Pinagbili kami nang Fundador at kami pa ang nagbitbit dun sa p~t@ng birthday niya. Sila na raw ang bahala sa barangay permit. Ilan pa kayang lechon at fundador ang kelangan namin?
FOOD PERMIT
Dahil nga pinalitan nang DTI ang pangalan nang business ko, so ngayon, it sounded na mag-seserve kami nang food and beverage! Punyeta! Problema! Dumaan saamin ang tiga-City Hell. Kuha daw kami nang permit. Explain namin what happened. Ayaw maniwalal. Kung gusto daw namin, sya na bahala. AAAAAAAA!!!! Gusto ko nang bumalik sa Estados Unidossssss!!!! Eh ano pa nga, para layuan kami nang d^m^nyong to, ayon – padulas once again.
BUILDING PERMIT
I don’t understand when we are only cleaning up the shop, making improvements NOT CAPITAL IMPROVEMENT samantalang hindi naman namin ginigiba ang shop REQUIRED PA RIN DAW KAMI KUMUHA NANG PERMIT. Whew! Well, hindi nga kami kumuha in the beginning dahil confirm saamin nang building administrator na hindi na namin kelangan. ALA, bisit kami nang engineer nang City Hell. Araw-araw call nang call. Kumusta na raw kami. You wanna guess what he wants? Ano pa, as usual, sya raw ang aayos. KAHIT GABI! Tumatawag ang p~t@!
BUSINESS PERMIT
Gusto nyo bang ituloy ko pa ang story ko?
Tsaka na.
Galit na galit na ako.
SEMI-CONCLUSION
I stopped the construction. Gather ko lahat nang people. I listed everything that we need at kahit na we don’t need. Permits, kahit-hindi kelangang permit kunin na rin, at kung ano ano pa. It took us another 2 weeks to clean up things. Marami pa ring padulas ang inabot namin. But it cost us time. To this day, hindi pa tapos ang construction. Inabot na kami nang buwan buwan. I don’t know kung kelan kami makakaopen. Big expense ko is padulas, regalo at yes, LECHON.
So what’s happening here? MICRO-CORRUPTION sa barangay level at city level. Busy sila sa mga head nang gobyerno nila, nakalimutan kaming maliliit na nagsisikap makapag open nang negosyo.
Think about this, do I deserve this? No. For many years, Ive remitted dollars to Pinas and I am sure, nakurakot nila yon at nakatulong sa kanila. Wala pa ring tigil.
But I will continue on with my business. And my story continues…
I don’t want pity guys. ”
“Reyna,
How goes it? Ang puso mo!!! Here’s what I do, I get myself a FOOT MASSAGE regulary. It calms me down. NAKAKABWISET KASI ANG SISTEMA SA Pilipinas!!!!!
Dito sa Pinas, it’s more on STREET SMARTZ ang kailangan dito in bizness. I can honestly say that there is nothing legit dito sa atin. YOU HAVE TO KNOW SOMEBODY to get things done. Reyna, galing ka sa US so there is one thing that you and I got used to, WE DON’T WANT OUR TIME WASTED. Unfortunately, dito sa Pinas, time is not so precious. It shows sa economic state ng country.
Suggestion ko is when starting a biz here, kailangan na di nila (the community you’re in) alam na galing kang abroad. The vultures will capitalize on this. Sa mga pila pila naman like DTI, Biz permits, DON’T DO IT YOURSELF!!! You will give yourself a heart attack!!! Kung nasanay ka sa US na you do things for yourself, not here. You pay someone to do it for you. MAKE SURE YOU GET WHAT YOU PAY FOR AND YOU SCREEN THESE CLOWNS.
Welcome to the Philippines. Be famili@r with the term, “Package Deal.” You will hear this sa mga gov’t offices (pabulong of course) na sila na ang bahala, but for a price of course. Pero pag sinabing package deal, the task is bigger so the price would be a little higher.
example:
May utang ka sa kuryente na 1,000,000 kahit 100,000 na lang, mawawala na sa record mo ang utang na 1M. So makaka-apply ka na uli ng panibagong account. This is just an example.
One thing na you missed sa story mo is BANKING. Tell me about your banking experience sa Pilipinas. Usually you’ll feel this kung wala ka pang account sa Pinas and you are just starting a NEW ACCOUNT. I had to. I was treated like, my money was no good and was questioned as if I stole the money that I have. And I had to get local identification. Kasi mas legit ang ID system nila dito (pwee!!!) Just for sh~t and giggles, I got me 3 ID’s with different names (paid extra of course) to prove to my bank that they are id!*ts with stup~d requirements for stup~d reasons. Galing ka sa US so you know as well as I do that banking there is easy and the ID system is legit.
Remember, foot massages. I usually go sa Malate at a place called MTO. Very reasonable P300 for an hour if you are member, P400 if not. It is worth it. vcsc_inc@yahoo.com if you want to discuss more heartache and pain with BIZ here.
BTW, I would think 3,4,5 times before I would get into buying property here. Kapag nalaman ng mga ahente na abroad ka, they’ll be all over you like sugar on pie. I could share some stories on that too. Good biz be with you.”
A book ought be written, I guess.
We are in the Global Age Economy, with
instant Digital information. And All kinds
of information available to anyone in the
internet.
All countries are interconnected economically.
If the biggest country like the U.S.A. falls
down. It will take other smaller countries with
smaller economies. You have seen the results.
This is the World of Reality…
PTT posted a discussion on the gov.ph forum. Guess what, this was my REAL STORY when I went home Manila and opened a business. I don’t know who PTT but yeah this was my experience.
His comment started with this:
“Below is a cut and paste from
http://forum.gov.ph/thread.asp?rootID=34359&catID=4
It gives good insight to what really goes on”
I blogged about this on http://www.reynaelena.com although i have to find the right link
Got a friend here who is a CEO of a mining company and sold his business in the Phil (mines) because he said that he is not wasting his time on talking with people who keep changing the deal even if they agreed to the terms a day before and endlessly asking for more and more favors (monetary) and demands that the inherent risk in the project plus these added costs not to mention his time would make it a very unattractive project. They have gone to another country in Asia to invest. Considering that he has projects that made money in Asia before, we (filipinos) have lost the opportunity to work with him and his group. Until there is a change in how business is conducted there, I think we will always be at the bottom of the list of countries to that are candidates for investments.