ECOP National Conference tackles poverty and unemployment

IN 2014, THE PHILIPPINES distinguished itself as the second fastest growing economy in the world, with a 6.1 percent growth in gross domestic product (GDP) and a 6.3 percent growth in gross national product (GNP). Despite this feat, poverty incidence and unemployment rate remain almost the highest in the ASEAN. One of every three or four Filipinos lives below the poverty line, and unemployment still hovers close to 7 percent.

GDP and GNP

In his Philippine Daily Inquirer column last April 21, 2015, my friend, fellow Inquirer columnist, and foremost economist Cielito Habito wrote that despite having the second fastest growing economy, "… we cannot claim that Filipinos improved their lives faster last year than most other peoples of the world did."

He continues, "Our GNP measures total value of production by Filipinos, whether here or abroad. Thus, it counts production by Filipino workers overseas, and with factors of production Filipinos own, while it doesn't count production within the Philippines by foreigners and foreign-owned factors of production. It's helpful to think of GNP as Gawa ng Pilipino."

He differentiates GDP from GNP by saying, "GDP, on the other hand, measures value of all production done domestically - that is, within the Philippines - regardless of who did it. GDP could thus well stand for Gawa Dito sa Pilipinas. GDP tends to be more commonly used, especially for international comparisons, being more indicative of vigor in the domestic economy."

Does the Philippines' high GDP growth indicate improvement in the lives of Filipinos? Not necessarily so. When high GDP growth does not translate into improved wellbeing of the people, there is no "inclusive growth."

Habito opines that GDP or GNP statistics measure only production that goes through the markets. If you perform an economic activity at home, like cooking meals for your family, the economic value of that activity does not get counted in the GDP or GNP.

He also believes that some form of production of goods and services that get counted into the GDP are necessitated to offset the ill effects of other production activities. Pollution control activities are needed to offset degradation of the environment caused by some other production activities. Drugs are produced to cure environment-related diseases. You pay for the repair of your car that figures in an accident. These all get counted as part of GDP, but do not truly contribute to real improvements in the quality of life.

A few months after each yearend, we applaud the high GDP growth of the country. But this does not tell us how economic benefits from this growth are distributed. A few years back, Habito estimated that only 40 families accounted for 76 percent of the GDP growth in the Philippines. He concludes, "It is not enough, then, to attain a high output growth rate; the growth must also be broadbased to be of wider benefit to the general population."

Ultimate goal and challenge

Nations all over the world aim to achieve optimum economic development. The outcome should be a more equitable wealth creation and distribution, in an environment where job opportunities abound, even for the most vulnerable sectors of society. For several decades now, the road to Philippine development has been very challenging. Policy lapses, poor execution of programs, lack of strong political will, inability to take full advantage of opportunities - these and many more contributed to the jobless growth and unabated poverty incidence that characterized the Philippine economy after we declined from being No. 2 to Japan in Asia.

Over the years, corporations and employers have realized that in order to succeed in business, they must cease to focus only in creating economic value for their shareholders. The role of the corporations has dramatically changed, as they continually take an increasing degree of societal responsibility - not just as a desirable outcome of profits, but as part of the business of doing business.

The top honchos in the Employers Confederation of the Philippines (ECOP) believe that the two most significant challenges that beset the country today are poverty and unemployment. On May 14 and 15, 2015, ECOP will hold its 36th National Conference of Employers at the new Marriot Grand Ballroom, to explore unique opportunities that can arrest what truly ails the Philippine economy. The conference theme is "The Ultimate Challenge: Creating More Wealth, Creating More Jobs."

ECOP Conference

This annual national conference of employers shall feature an analysis of past and current economic data, CEOs' perspective about their changing role in addressing societal issues, a consensus among social partners on employment and poverty issues, and recommendations for positioning the Philippines in the changing regional and global economic arena - to address poverty and unemployment.

I am extremely delighted to chair the Program Committee of this annual conference & thankful for the support of the ECOP powers that be, and the cooperation of my friends in business, government and the NGOs who agreed to grace the occasion.

After the traditional opening ceremonies, Dr. Cielito Habito will lay the framework for the one and a half day's discussions by exploring "Opportunities and Strategies for Job Creation and Poverty Reduction." Understanding the root causes of the current ills in our economy can help develop appropriate policies and programs that can arrest poverty and unemployment.

A CEO Forum shall ensue to discuss "The Ever-Changing Role of Employers in Addressing Societal Issues." Edgar Chua, Chairman of Pilipinas Shell Petroleum Corporation; Marife Zamora, Convergys' Managing Director for Asia Pacific, Europe, Middle East, and Africa; Maria Fe Perez-Agudo, President and CEO of Hyundai Asia Resources, Inc.; and Suresh Narayanan, Chairman and CEO of Nestlé Philippines will have a panel discussion, moderated by Coco Alcuaz, ANC News Anchor.

UP Professor of Economics Benjamin Diokno will discuss "Preserving Development Gains amidst Regional Economic Changes." Secretary of Labor and Employment Rosalina Baldoz will talk about "Ensuring Inclusive Growth through Enhanced Employment and Employability."

The second day of the Conference will open with a panel discussion among social partners for the purpose of coming up with "Policy Recommendations for Resolving Employment and Poverty Issues." Panelists include Labor Undersecretary Ciriaco Lagunza III; Management Association of the Philippines President Francisco del Rosario, Jr.; Federation of Free Workers (FFW) President Emeritus Allan Montaño; ILO Country Office for the Philippines Director Lawrence Jeff Johnson; and Ruben de Lara, President and CEO of Serving Humanity through Empowerment and Development (SHED).

Before the traditional concluding ceremonies, Manuel V. Pangili- nan will deliver a special keynote, "Doing Well and Doing Good: How Corporations Can Help Address Poverty and Unemployment."

The biennial Kapatiran sa Industrya Awards or KAPATID Awards will feature winners from among 11 finalists representing a wide array of industries. Aside from giving the Grand KAPATID Award, ECOP shall award the winners in the four categories of Industrial Peace and Harmony, Social Accountability, Quality and Productivity, and Strategic Visioning and Partnering for Business Growth and Job Creation.

The program also features ECOP leaders Miguel Varela, Chairman; Edgardo Lacson, President; Sergio Ortiz-Luis, Jr., Honorary Chairman; Ancheta Tan, President Emeritus; Donald Dee, Past President and current Governor; Rene Soriano, Past President and current Chair, KAPATID Awards 2015 Executive Committee; & Federico Marquez, Jr., NCE36 Conference Chair.

Beyond rhetoric

Arresting poverty and joblessness must not solely rest on the shoulders of government. Ultimate solutions will come only when all the social partners realize that they have a shared responsibility. Accountability for creating jobs does not rest solely with investors. Government must provide an environment where in- vestments and job creation can flourish side by side - or investors will go elsewhere. Job seekers must shape up and develop themselves to qualify for decent jobs - or our ASEAN brothers and sisters will take our jobs. Academe must clearly understand industry needs for competencies now and in the future - or else, education will be irrelevant. Businesses must be proactive in human development and help provide employment opportunities for the marginalized sectors - or they are simply abhorrent profit machines.

In this annual conference, we don't need rhetoric and polemics. The actors and inter-actors are expected to realize that it's payback time. We have only one team - Team Philippines. We belong to one business - Philippines, Inc. We have one major customer and stakeholder - the Filipino people. Let's give it to them - this time. NOW!

(Ernie is the 2013 Executive Director and 1999 President of the People Management Association of the Philippines (PMAP); Chair of the AMCHAM Human Capital Committee; and Co-Chair of ECOP's TWG on Labor and Social Policy Issues. He also chairs the Accreditation Council for the PMAP Society of Fellows in People Management. He is President and CEO of EC Business Solutions and Career Center. Contact him at ernie_cecilia@yahoo.com)