8/11/2019 Stifling Investors Leads to Jobless Growth_Bondoc
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Stifling investors leads to jobless growthGOTCHA By Jarius
Bondoc(The Philippine Star) | Updated May 1, 2013 - 12:00am
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Theres no denying the fact ofjobless growth. The figures stare
labor, business, and government leaders in the face.The Philippines
in 2012 posted Southeast Asias fastest economic rise at 6.6
percent. But it also had the worstunemployment of seven percent,
and underemployment of 20 percent.
Viewed from another angle, last years domestic output was the
countrys second highest in two-and-a-half decades.But it meant
little to the 2.89 million Filipinos without work, and 7.94 million
more plodding only part-time as ofJanuary 2013.
Economists strive to explain the oddity of growth sans
employment. Some external causes are being blamed, like USslowdown
and European financial woes. Indeed an ASEAN neighbor that is
economically as entwined as thePhilippines with developed countries
seems to be suffering the same fate. Indonesia came in second to
thePhilippines in GDP growth in 2012, with 6.2 percent; its
unemployment was also second worst, 6.6 percent.
Yet, how come Thailand, Malaysia, and Vietnam with 5.7, 5.1, and
5 percent GDP, respectively, were able to keepjoblessness down to
only 0.7, 3.1, and 2 percent?
Jobless growth plagues other continents. Economies as varied as
France, Egypt, Argentina, South Africa, and Indiatoo are searching
for answers. The World Economic Forum (Davos) and the International
Labor Organization hadnoticed the problem since the middle of last
decade. Amidst youth riots and aging populations, some
identifiedcauses are mismatch of skills and job openings, stiff
hiring taxes and firing laws, and high minimum wages.
The Economist magazine has been featuring troubled countries for
years. Recently it analyzed the US economy on aparallel track of
jobless recovery. Its issue this week, timed with May 1 Labor Day
in many lands including thePhilippines, takes yet another look,
this time from the side of the youth. Citing figures from developed
and developingnations, the Economist counts about 311 million
youths aged 15 to 24 as NEET (Not in Employment, Education,
orTraining). Thats a quarter of the worlds population of that age
segment.
Opinion ( Article MRec ), pagematch: 1, sectionmatch: 1The
Philippine ratio could be similar. As in other countries, local
labor laws and practices disfavor younger workers. In
bad business times, hiring new young workers is postponed while
retooling old ones. It is far easier to lay off thelatest hires
than old-timers. Creativity and productivity potentials are
overlooked.
That jobless growth comes in the wake of economic liberalization
makes it more puzzling. Eradicated in recentdecades were monopolies
in construction, telecoms, power, and transportation. New companies
have entered thoselabor-intensive industries. Still businessmen say
that liberalization has been only partial. Three problems
supposedlyremain unresolved.
First is dearth of investments in certain industries due to
restrictive constitutional provisos. The fundamental law
limitsownership of media and educational institutions, and land to
Filipinos. Even 70 percent of advertising firms inreserved for
citizens. Same with 60 percent of mines and utilities. Yet few
Filipinos have large enough capital to gointo such fields. Result:
60, 70, or 100 percent of zero equals zero.
Congress leaders propose to scrap such economic limitations, to
entice foreign investments, chiefly intomanufacturing. To allay
fears of lifting elective term limits or fast-breaking into
parliamentary-federal systems, theypromise to do it via a single
legislative amendment. The President has shown disinterest.
Second is neglect of agriculture and fisheries. Congress had
passed in 1995 a law to modernize the twin sectors. Butsuccessive
legislatures failed to fund it sufficiently. And government crooks
have pocketed the meager budgets foragricultural competitive
enhancement via scams in fertilizer distribution, piglet dispersal,
and cold-storageconstruction.
http://www.philstar.com/author/Jarius%20Bondoc/GOTCHAhttp://www.philstar.com/author/Jarius%20Bondoc/GOTCHAhttp://www.philstar.com/author/Jarius%20Bondoc/GOTCHA
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Third is the malady of smuggling. Contrabandists exploit the
spotty law enforcement in the archipelagic terrain tosneak in rice,
vegetables, sugar, poultry, meat, fuel, and construction materials
by the hundreds of container vans.Consumer prices drop, but in the
end the smugglers enrich only themselves and alien workers. Left
impoverished arelocal farmers, cattle and livestock raisers,
fertilizer and feed suppliers, plantation and mill laborers, and
constructionfactory craftsmen.
State policy makers look at unemployment alongside penury. The
National Economic and Development Authority
notes that todays poverty incidence of 27.9 percent remains
pretty much the same as it was at 28.8 percent in 2006.This is
because major reforms take time to take root.
Only last year was a Reproductive Health Law enacted for the
wellbeing of mothers, infants, and toddlers, and to planfamily and
population size. Yet this is tied down in litigation. Only in 2011
too was a new curriculum drawn up for a13-year basic education,
including kindergarten, from the previous inadequate ten years. And
Congress agreed onlylast December to fund the difficult transition.
Putting priority to rice production, vocational-technical training,
andtourism are only now reaping benefits. Frequent job fairs keep
pointing up job mismatches that private firms have tiedup with
schools for placement-oriented training syllabuses.
* * *
Newly launched: Hacking Our Democracy, a collection of essays by
UP professor and strategic-management expertRen B. Azurin on the
farcical election automation. Available in most bookstores.
* * *
Catch Sapol radio show, Saturdays, 8-10 a.m., DWIZ (882-AM).
E-mail:[email protected]
http://www.philstar.com/opinion/2013/05/01/936957/[email protected]://www.philstar.com/opinion/2013/05/01/936957/[email protected]
