5-year plan to lick joblessness bared

By Macon Ramos-Araneta | Posted on September 04, 2012

 

• Wishful thinking? Trade chief says it can be done

 

The Trade and Industry department on Monday said the country’s unemployment problem can be solved with the creation of 9.1 million jobs within the next five years if the current $55-$60 billion merchandise and service export will be doubled.

“If we double our exports, it could add an additional 9.1 million job opportunities,” said Trade Secretary Gregory L. Domingo during the Senate finance committee hearing on his P4.093 billion proposed budget for 2013. DTI’s budget in 2012 was P3.2 billion.

“Doubling our estimates, our target up to 2016, we hope to double our $55-$60 billion to $120 billion which include both merchandise and service export,” Domingo told the committee chaired by Senator Franklin Drilon.

“Then that solves the unemployment problem because presently 2.8 million are unemployed based on present figures you mentioned, 7.3 million workers are considered underemployed and 2.8 workers are deemed unemployed,” commented Senator Loren Legarda.

Legarda also noted that even if the export market will not be doubled and simply increase it marginally, the problem of 2.8 million jobless Filipinos would be instantly solved.

Senator Edgardo Angara echoed Domingo’s claim that doubling one sector which is the merchandize export will address the unemployment and underemployment problem with 9 million jobs to be created.

“That’s what I’m saying. By just increasing our export and just concentrating on it, then we create better paying, better quality jobs. The IT-BPO is already on auto pilot, already on track. But the export number—it’s a roller coaster. So that’s the chance for our ‘farm boys’ to get better jobs in the factory and for the domestic, to do meaningful work,” he explained.

Legarda, however, noted that doubling the country’s export remains an objective, which may be accomplished in 12 months or even in 3 years.

Later, Legarda said that in the meantime, the government needs to put in place the micro, small and medium enterprises law that can generate jobs in the grassroots, the countryside.

“Perhaps, we need to provide incentives and get everything working. I always believe in Small and Medium Enterprises (SMEs),” Legarda said.

She added that micro enterprises, should be provided the needed funds.

“We believe that implementation of the SME law will give solution to the problem of unemployment. We need to help product development and capital small business firms so they become self-employed, and may even be a part of the export market and help reduce unemployment,” Legarda said.

She branded as a “dream” DTI’s vision for a double merchandise and service export. But she considers it a ‘good dream’.

In a separate interview, Angara said the DTI’s projection may be possible within the next five years. He said the level of our export is $50-55 billion, 2/3 of which is on electronics.

But now that the demand for electronics in the United States and in Europe has gone down, the export on these products had declined.

But Angara said the decline was compensated by the increase in the non-electronics exports such as furniture and processed foods.

As a result, Angara said the country was able to maintain its export at $50-55 billion level.

“So it is possible in the next 3 yrs or up to the time President Aquino steps down in 2016 to double it to 100 billion. Well, they’re quite optimistic, they say they can double it, but it requires effort,” said Angara.

He added however that the DTI also has to double its efforts to advertise and market the products they wish to export.