A Response to the Student’s Article

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I always thought of the Philippines as a sleeping T-rex, time to wake it up from it\'s deep slumber.

A Response to the Student’s Article

April 17, 2007

This was a response by to the students article which it can be found here

WHAT IS THE REAL PROBLEM OF THE PHILIPPINES?
by: Michael Kim

I am a middle-aged Korean, an MBA graduate, an experienced ex-banker and presently am the editor of a newly born local newspaper in the Philippines.

I was so sad when I read the essay about Korean and Filipino patriotism written in 2003 by Jaeyoun Kim, a Korean student who attended La Salle Greenhills, an all boys’ school in the Philippines.

Like many readers, I have felt deep pain and sorrow after reading this touching article. I understand their sadness and am reminded of the terrible experiences we Koreans also had.

First of all, we were colonized by Japan for thirty-six long years before they finally surrendered at the end of World War II. We then suffered another three years fighting the Korean War against North Korea’s communist regime from 1950-1953 resulting all in ruins. These poverty-stricken years beyond any one’s imagination lasted in the 1960-1970’s. We actually went through a lot of hell the same way Filipinos experienced painful colonial conquest.

Second, my heart cried out when I saw how real life was to majority of the Filipinos. My first encounter with Filipinos at the airport was a pleasant experience. I liked their aura of hospitality: sincere smiles and amiable attitudes which I have never seen in some of the countries I have already visited. I most especially love their large and extended family system-culture, something that we Koreans have already lost but existent from time immemorial, thirty years ago. So it came as a surprise to me to find out that many of these very cheerful and kind people actually work on a “day by day” system to support their basic everyday needs. From hand to mouth, it seems indeed!

I have pondered over this Philippine situation for more than a month. Why is the Philippines not rising? Is it because of a lack of patriotism, too much natural optimism, idleness, indifference, abhorrence of wealth or other causes?

Of course not! One Filipino cannot make the whole nation. The character or behavior of an individual does not represent the society as a whole and does not serve as a yardstick to measure the nation’s wealth. All Filipinos show passion and patriotism when they cheer tremendously for Manny Pacquiao’s boxing bouts or for Pinoy basketball matches against foreign teams. We Koreans also do the same thing with soccer matches. But does this kind of nationalism improve the national economy in any way?

Let’s discuss the real problem. I remember the Philippines as being well-off until the 1960’s. During this same time, some countries such as Korea, Singapore and Chinese Taipei started to run their own economy growth programs. Like the Philippines, these countries had well educated human resources but lacked natural resources. In my opinion, the Philippines never launched an economy program, or if it had, maybe it got lost somewhere in the turmoil of consecutive People Power. No, I am not blaming anyone for that. But this should not be used as an excuse for poverty. An economic growth program is not a lip comforting slogan. It should instead be a real, attainable, feasible premise and everyone must have the will to reach this dream. So how can the Philippines move forward if it doesn’t have its own real economy program?

What are the problems? There are over 5 million OFW (Overseas Filipino Workers) that have managed to remit over US$ 10 billion valuable dollars in 2005. But where has the money gone? The money they sent was used to buy imported products and to repay the foreign loan principal and interest. I feel Filipinos waste thousands of dollars by buying all kinds of foreign products, even trivial things such as textiles and plastics that Filipinos can actually manufacture themselves. So with all the money problems and the lack of a good economic system, what can be done? Simply just open the gate to foreign investors.

All capitalistic countries like China, Japan and Korea do not limit investors to have only 40% ownership investments just the way things are in the Philippines. I cannot understand this anachronistic “Shut-the-Door” Policy. This law has resulted to ugly cases wherein hopeful foreign investors actually have to borrow nominal titles from Filipinos and these Filipinos later hit them with brutal scams and blackmails.

Don’t close the doors to foreigners. Take a look at countries like China, India and Ireland which have steadily risen by adapting positive policy to induce foreign investment. I have never heard of any country that fell down due to foreign investments. Why do you dislike and shun away from foreign investment? Is it because of the nightmares of past colonial age? Think of it not as a debt but as a valuable asset that may bring more job opportunities, more tax revenues, more social overhead projects like roads, ports, bridges and so on. There is no other alternative for your country but to say ‘Mabuhay’ with welcoming arms. This may seem the one and only passage to exodus from abject poverty.

I definitely welcome your Supreme Court’s decision about Mining Act of 1995 allowing 100% foreign ownership as ‘constitutional’ at the end of last year as a starting signal to mesmerize and attract foreign investors. Indeed, the decision will enable you to suck in over $60 billion overseas. And amazingly, this is just the beginning. Did you know that the Hanjin Heavy Industry of Korea has decided to invest $1 billion to build the biggest shipyard in this country inside the Subic Bay Freeport? This shipbuilding plant will generate about 30,000 new job opportunities. The Free Economic Zone Ordinance exclusion to apply local law system enables this investment. But I think that the enacting Free Economic Zone will not be able to recover its vital investment. It doesn’t really matter which country owns it.

Former Korean President Kim Dae-Jung has once told our people: “Samsung America Inc. belongs to America, and General Motors Korea Inc. belongs to Korea.” This remarkable comment captivated investors worldwide to rush and invest in Korea. This is why Korea was able to escape from the foreign currency shortage crisis in 1997.

The Philippines has so much splendor and charm to captivate foreign investors. Aliens will rush to cast their money in the islands of favorable situation, having natural resources, various ocean resources, well trained English speaking manpower and spectacular tourist resorts.

There are also antagonistic factors if foreign companies will enter the country. Concerns like pollution in the air and water, destruction of natural environment and resources, and foreign speculative capital against open policy. Always remember, there is no perfect solution, and cost will follow after every success. This is a necessary evil. The nature of Capitalism is a ‘Jungle’s law’ and ‘Survival to the fittest’. It’s your responsibility to minimize the inevitable cost. Korea, for instance, has been incessantly striving for economic growth for the past forty years, and this has caused many cases of pollution, environmental damages, large and trivial accidents. We Koreans have paid bitterly for all these costs to escape from desperate poverty.

Our industry level has continuously upgraded from a polluted industry to clean semiconductor, IT and BT industries. We have also restored our mountains, rivers and seas so that tourism resorts have strategically been gathering 250% more foreign tourists compared to the tourist visits five years ago.

Once there was a time, we had envied your country which we knew as ‘The Pearl of Asia’.

At that time, our personal income was one-tenth of yours. Today, forty years after, your personal income is now one-thirteenth of us . We have learned from your country and your people. The choice is yours. There are so many countries competing to acquire foreign investments. It is also another place jungle’s rule governs. The option is up to you. To keep the present condition or to drive together with the world!

Posted by waketrex at 11:43 am | permalink

Previous Comments

Now this what I’m talking about! hehe… Actually President Estrada planned to have 100% ownership for foreign investors when they invest in our country… But it didn’t happen because he was impeached… He was right about an economy program… And I guess the best thing to do right now is to have a constitutional change, to reduce corruption and expenditures… I hope President Arroyo gets to read this post…

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