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Economic Crisis in the Philippines

A Case Study Presented to the Faculty of the Department of Business Administration, ACTS Computer College, Sta. Cruz, Laguna

In Partial Fulfillment of the Requirements in Good Governance and Social Responsibilities

Rose Ann D. Cadacio Richelle Ann S. Madera Edralyn L. Raymundo

August 2011

I.

Problem Identification Global Financial Crisis on Labor Market

II.

Causes of the Problem Limited direct channel of transmission of the global financial crisis in the Philippines Structural constraints in the Philippine economy

III.

Alternative Courses of Action Detailed Economic Buoyancy Arrangement Assistance to the Most Susceptible Sector Job Preservation Plans Expansion of Social Protection Programs

IV.

Best Solution Detailed Economic Buoyancy Arrangement

The impact to export firms and their workers, as well as the OFWs, had been anticipated and prompted the government to take the necessary actions. However, while the government was keen to respond and develop the appropriate strategy, the fragile fiscal situation posed as a binding constraint in creating a strong and sustainable fiscal stimulus package. As from the observation, the best thing to do is having a DETAILED ECONOMIC BUOYANCY ARRANGEMENT for the Filipino Workers. Through this, change is off to a great start.

V.

Recommendations The government should come up with policies that will help this sector and formulate policies that will improve employment generation without compromising the sectors efficiency and productivity.

The government should continue to carry out policies that will address other pressing issues such as the mismatch between education and employment opportunities, making the workforce more responsive to the labor market, high supply of labor and insufficiency of jobs, and protection of Overseas Filipino Workers. The government should also continue to pursue policies that will promote growth that create employment and reduce poverty, and continue to address other important issues that affect the Philippines economic performance, particularly high population growth, corruption and support to small and medium enterprises.

VI.

Conclusion Looking on the bright side of the Philippine economic standing, programs aimed at job creation and social protection yielded its modest results. Similar programs were able to create 375,000 new jobs by the last quarter of 2009. While these are mostly short term, low income jobs, this is compensated by increase in percentage wage of workers from 51 percent to 55 percent. Moreover, the government continuously provided assistance to displaced workers through legal assistance, emergency employment, livelihood, skills training, job referral and job placement. This is how change begins. The air is bristling with possibilities.

VII.

Implementation Stage Economic Crisis ACTION PLAN For the year 2011 Activity Objectives - seeks to ensure stable growth, save and create jobs, provide assistance to the most vulnerable sectors Responsible Person - Representatives of FDI/DOLE/COWA/ WTO/APEC Time Line - 5-7 years Remarks
- its target are the the most weak sectors (i.e. the poorest of the poor, returning OFW and workers in export industries) - its target are the OFW beneficiaries included, but are not limited to the poor, returning expatriates, workers in the export industry, and out-of-school youths. - its target are export firms and their workers, as well as the OFWs, had been anticipated and prompted the government to take the necessary actions.

1. Economic Resiliency Plan (ERP)

2. Emergency Employment Program (EEP)

- nationwide effort to protect the most vulnerable sectors from the effects of reduced or lost income resulting from global economic crisis by providing emergency employment

- Representatives of FDI/DOLE/COWA/ WTO/APEC - OFWs

- 4-6 years

3. Comprehensive Livelihood Project (CLP)

- ensure low and stable prices, and improve competitiveness in preparation for the global economic rebound and provides funding and supervising livelihood projects.

- Representatives of FDI/DOLE/COWA/ WTO/APEC - OFWs

- 5-6 years