Editorial

Sunrise industry

The business process outsourcing sector is virtually saving the day for the Philippine economy, along with the tourism industry. Exports fell nearly 12 percent in November last year to just $3.49 billion compared with the same month in 2007. That was the second month in a row that Philippine exports faltered, after contracting 14.8 percent in October.

Falling exports mean reduced orders abroad, lower exchange earnings and job displacements. Lower dollar income from exports will also weaken the peso and put pressure on inflation at a time when Filipino consumers have just begun to enjoy the benefits of declining crude prices.

BPO companies, or call center operators that assume the back and front office functions of major American and European companies such as billing or purchasing and customer-related services, however, have lately proven to be a steadier source of foreign exchange to the Philippines. They also employ thousands of fresh college graduates, offsetting job losses in the export sector.

The Trade Department predicts that sustained demand for BPO services by foreign companies will make up for the contraction in merchandise exports this year. It said total merchandise exports in 2008 likely stayed flat or fell 1 percent but earnings from services, mainly the BPO sector, might have grown 39 percent to $11.746 billion, bringing total exports to $62.46 billion.

The Business Processing Association of the Philippines, meanwhile, says it expects to sustain a 40-percent growth in revenues annually up to 2010 as more and more global companies make use of more cost-efficient ways to run their business through outsourcing and offshoring.

The Philippines offers excellent facilities and enjoys an advantage over the rest of Asia in attracting BPO jobs here because of its largely English speaking population. Amid falling electronics and garment exports, the government can further make the BPO sector more competitive through fiscal incentives and a friendlier business environment.

The BPO sector is a sunrise industry that must be developed into a major and consistent dollar earner. Major foreign companies have clearly seen the cost advantages of transferring some of their office operations here. Making them stay longer in the country will be a challenge to local authorities.

A boon to farmers
At the onset of the year, the Los Ba?os-based International Rice Research Institute issued an ominous warning that world prices of rice would ?likely rise sharply.? The institute acknowledged that prices of the staple cereal have gone down dramatically from their peak in 2008 but the global financial crunch has made it difficult for farmers to secure credit for seeds, fertilizer and other essential farm inputs.

Punitive teachers
The four students from the Quezon City Science High School who were meted out a 10-day suspension by their principal will be coming to school today. Hopefully, they will be allowed entry into the school since their suspension had been blocked last Friday by the regional director for the National Capital Region Department of Education, pending an official probe of the controversy.

The gullible?s travails
Stephen Greenspan, PhD is emeritus professor of educational psychology at the University of Connecticut and clinical professor of psychiatry at the University of Colorado. He recently published a book entitled Annals of Gullibility: Why We are Duped and How to Avoid It after years of studying why people, even intelligent ones, fall into traps because of their gullibility. He defines gullibility as a ?sub-type of foolish (or stupid) action which is induced; it always occurs in the presence of pressure or deception by other people.?

The Chief Justice under siege
By Atty. Rita Linda V. Jimeno
They say that when you throw a stone at heaven, it will come rushing down to hit you. I am not imagining Chief Justice Reynato S. Puno to be heaven. Yet, I could not help recalling that old saying as I watched events meant to bring down the Chief Justice unfold last week. Instead of going down, the Chief emerged a hero?a symbol of righteousness behind whom people rallied?to the great disappointment and displeasure of those plotting to bring him down.

The House should not demean itself
By Fr. Ranhilio Callangan Aquino
According to a discourse theory of law and of democracy such as advocated by Jurgen Habermas, the House of Representatives is the institutionalization of the communicative power of the people. Through the election of the members of the House and its procedures, communicative power generates binding, valid law. This is the reason I hate to see the processes of the House trivialized. This is why I earnestly urge the members of the chamber not to allow it to be demeaned. There are two measures from which it must keep a safe distance?like one keeps his distance from the plague.