DEVELOPMENT CONCERNS AND OUTLOOK

   The adverse effects of the global financial crisis will continue to manifest in 2009. As projected by the Department of Labor and Employment, there will be 60,000 to 100,000 job cuts for the whole country in 2009 including OFWs..  Unemployment will reduce disposable income and consumer spending.  On the other hand private investments will be low with reduced demand and a deflationary condition. 

 

   The crisis is expected to be deeper and longer.  Cushioning the impact is necessary.  Private investments will be low due to low demand and prices.  This calls for more government spending to generate jobs and consumer spending.

 

   The government’s PhP 330 billion-stimulus package will pump prime the economy in 2009. The Economic Resiliency Plan will save and create jobs, protect the poorest of the poor, returning OFWs and workers in export industries, ensure low and stable prices to support consumer spending, and enhance competitiveness through human resource development in preparation for the global rebound.  There will be more government subsidy through conditional cash transfers to cushion the impact of the financial crisis. In Bicol there is an expanded target areas to be covered by 4Ps with additional government spending. This is part of the social protection strategy of the national government.  There will also be increased spending of government on construction of infrastructure during CY 2009.

 

   The comprehensive livelihood emergency employment program involves the concerted efforts of government agencies in providing opportunities for employment.

 

   On the other hand, in the report of BusinessMirror (18 December 2008), DOLE mentioned that despite the mass layoffs and job slowdown in many countries due to global financial crunch, there remain almost half a million unfilled job orders mostly from Middle East countries, like the United Arab Emirates, that have been registered with them. The Philippine Overseas Employment Administration (POEA) said there are still 450,000 active job orders, particularly from Saudi Arabia, with 37,653; United Arab Emirates, with 29,012; and various industries in different countrie for deployment to service jobs in hotels, restaurants and sales. With the issuance of AO 247 by the President in December 2008, POEA is directed to execute a paradigm shift by refocusing its functions from regulation to full-blast market-development efforts, the exploration of frontier, fertile job markets for Filipino expatriate workers.

 

   In the region, as reported by Bicolmail (11 December 2008), OWWA Regional Director Samuel S. Madrid mentioned that the agency has an intact ‘reintegration’ program for the returning OFWs whether laid-off or those who had completed their contract and decided to settle down by doing business here. OWWA is also optimistic that a new breed of investors out of the ‘Balikbayans’ will rise to help the local economy.

 

   As reported by Bicolmail (11 December 2008), Cebu Pacific’s four times weekly flights between Cebu and Legaspi with a year-round ‘Go Lite’ fare of Php 888 one way will be an opportunity for tourism and business to improve.

 

   The effects of the financial crunch on the cost of living should be reduced by ensuring adequate supply of food.  Thus, support to food production must be sustained. 

 

   The growing number of illegal fishing practices of “pangulong”, “palupad” and blast fishermen in the Island of Ticao must be addressed as it will affect fish supply including the manta ray population which is an asset in tourism.

 

   The mineral industry, with the start of operations by the Masbate Gold Project will employ more and produce more. 

 

   The tourism industry may be hit by a reduction in the number of American and European tourists due to the financial crunch as they belong to the top 5 foreign travelers in the region.

 

   Disaster risk reduction in vulnerable areas must be addressed locally.  This starts with understanding the hazards, vulnerabilities and risks of an area by the affected communities.  In this way, measures to mitigating and preparedness measures to reduce disaster risks can be identified, financially supported, and implemented.