The net impact of such situation is that, the Philippines has harbored the biggest percentage of poor people in this corner of the world.

Comparing living standards in the region., Yap disclosed that among the original ASEAN five members plus Vietnam, the Philippines now has the nighest poverty rate at 30 percent or close to one third of its 90 million people.

Vietnam has steadily been trimming down its poverty rate to 19.50 percent while Indonesia has 16.70 percent. Malaysia is very close to winning its war on poverty with 5.1 percent of its people rated as poor but nobody in that country has been surviving at earnings below $1 a day. Also very close to conquering poverty is Thailand with only 9.8 percent of its population and also zero on those considered very poor.

Of those considered by the United Nations as chrinically poor, the Philippines still has the highest rate at 13.2 percemt, or 13 people out of 100. Vietnam and trimmed that down to 8.4 percent.

The PIDS economist suggested that the Philippines can make the present crisis and the region's drive to recover from it as a platform on which it should correct the duality of the Philippine economy.

“In particular, social protection is needed to integrate marginalized sector into the mainstream economy.” Yap said. He suggested that the share of social security, welfare and employment from the national budget should be increased from a tiny 4.5 percent in 2007 to only 6.1 percent this year.

He also encouraged the business sector to get into the new wave of growth in Asia by getting more involved in regional trade and investments. In the local front, he said tax efforts which have stagnated in recent years and private investments that have been in a downhill trajectory since the year 1998, should be revived . -- Abe P. Belena, PHILEXPORT News and Features <--back

2. 20 families out of 100 got hit by global crisis study

Families with an OFW member who either were sent home of suffered reduced daily incomes, and local workers most in the payroll of export enterprises, were the only casualties of the present global economic crisis.

Taken together, 20 families out of every 100 of those surveyed in selected towns and cities across the country by a team of researchers led buy Celia M. Reyes on the impact of the crisis on ordinary Filipino families.

Reyes, a senior research fellow of the Philippine Institute of Development Studies (PIDS) said her team had just completed its survey study of 3,274 households in 192 barangays from Pasay City in Metro Manila to Biliran in Mindanao.

The study discovered that there were more families that suffered reduced incomes from remittances than those that had members laid off from local companies. Of all households, those who got hit with reduced remittances made up 16 out of every 100.

In the case of reduced incomes due to reduced earnings of locally employed family members through wage cuts or lay-off represented only 4 in every 100 families.

This confirmed earlier diagnosis that the over-all impact of the crisis to Filipino households was no more than 20 percent which is considered low compared to the almost universal impact of the crisis to export-dependent economies like Singapore and Taiwan.

To cope with the situation, the PIDS researchers found several coping mechanisms that were adopted.

One common practice is for the family to get the laid-off worker to look for a new job but the batting average was not very high. Or other members of the family were prodded to look for new sources of income.

In looking for scarce money to survive the suffering families borrowed money, used their savings, sold their properties or pawned them. These were the most common survival strategies.

Some pulled out their children from private schools and send them instead to public schools while a few parents withdrew their children from school this school year.

Reyes found that the emergency measures adopted by the government including the selling of subsidized rice, had very little positive impact on the victims of the crisis. -- Abe P. Belena, PHILEXPORT News and Features <--back

3. NCC helps LGUs in making tourism roadmap

The National Competitiveness Council (NCC) is working with local government units (LGUs) that have identified tourism as their competitive industry carve out a roadmap for the development of the sector.

“We help them develop a roadmap to be able to see how they can harness all their resources towards developing tourism in their areas. We also help identify possible investors,” said NCC executive director Ruy Moreno.

Moreno cited the important role of LGUs in the development of eight sunrise industries, which include tourism, identified to harness the country’s competitive advantages and propel economic growth.

Others include agri-business, business process outsourcing, mining, electronics, supply chain logistics, automotive manufacture; and health, wellness and retirement. NCC help to LGUs came only a week after different stakeholders finalized the implementing rules of a new tourism development law.

The NCC has initially identified Bohol Province, Leyte, Camarines Sur, Puerto Princesa, Tagaytay, Misamis Occidental and Sorsogon Province among the LGUs with competitive tourism industry.

“We have identified 120 LGUs whom we have said could serve as ‘spark plugs’ for economic development in a bottoms-up approach. What usually happens is you have development from the national level going down,” he said.

Moreno said they are keen on making the local chief executives the prime movers of economic expansion matching the national growth.

He said the Council is aggressively pushing the expansion of these sunrise industries, particularly developing opportunities offered by the tourism sector.

“Tourism enhances competitiveness and has the potential in attracting investments in infrastructure, facilities and encouraging foreign currency inflows while generating employment,” he noted.

Senator Richard Gordon, for his part, earlier expressed optimism that the country could generate more dollars through tourism.

Last year, international visitor arrivals to the Philippines grew by 1.5 percent reaching 3,139,422 with receipts of $ 4.388 billion, Department of Tourism (DOT) data show. -- Danielle Venz, PHILEXPORT News and Features <--back

4. Handicraft exporters report high sales to local buyers

More exporters of home decors and gift items are taking advantage of the surge in local demand as consumers prepare for the Christmas season, to make up for lower sales abroad.

This was bared by Nora Halili Lao, vice president of the Philippine Chamber of Handicraft, Industries (PCHI), which is organizing the 17th Pamasko ni Kuya Pre Christmas Selling Fair slated this November 19-22 at SM Megamall.

Lao said over 140 handicraft exporters participating in the forthcoming fair are optimistic of generating revenues of about P5 million.

“They are excited to unload their stocks in the domestic market as more consumers now opt for exportable items,” she said in an interview.

Lao said companies which joined the four-day fair in August this year enjoyed a hefty close to 52 percent rise in sales of P4.1 million from last year’s P2.7 million.

“Already many exporters are engrossed in selling more in the local market to offset weak exports,” she said, citing the likes of Daraga Finecrafts and big-time exporter Star Crest Asia Corp.

Lao, who is also the PHILEXPORT trustee for the holiday decors and giftwares sector, said selling to the domestic market is also a recovery option for typhoon Ondoy-affected exporters

She particularly cited the Fancy Floral Export which incurred losses of P1.5 million due to the September 26 calamity.

This situation confirms market assessment earlier made by Trade Undersecretary Thomas G. Aquino, who said that exporters selling goods and services with also strong domestic demand would likely among the sectors to recover from the global crisis.

Other sectors identified to have recovery potentials include those offering services for overseas Filipinos and goods and services like organic and natural products that are able to keep in step with tightening product standards in markets abroad.

Apart from holiday decors and gifts items, this month’s Pamasko ni Kuya fair will feature housewares, fashion accessories and jewelry, processed food and delicacies and footwear, leather and travelgoods. -- Danielle Venz, PHILEXPORT News and Features <--back

5. Businesses urged to support covenant on climate change

Licensed Businesses have been encouraged to support a covenant which would require them to take extensive actions to prepare and reduce risks from climate change.

Howard Belton, president of Philippine Business for the Environment (PBE), said the Business Covenant for the Environment outlines their commitments towards helping develop an environmentally sustainable business.

Belton said this goal could be achieved through focusing on waste reduction and management, greening the supply chain, and carbon accounting and reduction.

“To make the covenant successful, sign it, help gain wide support across industry associations and support its implementation,” he said in a recently held business conference.

Belton said embedding climate change in their business strategies is crucial considering its impact on the country.

“Because of cumulative effects, action now is worth much more than action later,” he stressed. “Business should and can take a lead role.”

Belton said business actions to reduce risks from climate change include increasing energy efficiency and moving to low carbon/renewal fuels; reducing the carbon burden of their products, processes and services; and conducting greenhouse gas accounting as a basis for action on reduction.

“Be a business champion for rapid and extensive action on climate change within business, with employees and customers,” he said.

Moreover, businesses are urged to collaborate across sectors as well as with government and nongovernmental organizations (NGOs) on climate change.

Belton said the covenant also covers business’ expectations from the government in these efforts.

He said they look forward to the enactment of the National Land Use Act to ensure a stable basis for sustainable investment, and the strict implementation of existing environmental laws and regulations. -- Danielle Venz, PHILEXPORT News and Features <--back