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ON THE OTHER HAND
An Expat�s Lament
By Antonio C. Abaya
Written Dec. 13, 2005
For the
Standard Today,
December 15 issue


My article �
Here Comes Vietnam� (Dec. 6) drew an email from an expat business executive based in Metro Manila. Although he specifically asked that his letter not be published, I prevailed upon him to let me quote from it extensively, with the guarantee that his name, email address and details about his company would be withheld.

He has agreed to these conditions, and I am quoting the following excerpts from his letter to help us understand, from someone at the forefront, why we keep on losing out to our neighbors and, perhaps, move us to do something about it.

�Good article on Vietnam and other Asian economies. I would like to make some comments.

�I am a senior executive with an American (deleted) company  and we have had a presence in the Philippines for 30 years��

�I have lived in Asia for the past 26 years, 18 of them in the Philippines, eight in Hong Kong, and have had my share of trials, including having my car stolen at gunpoint (while I was in it) and being robbed while I was a patient at the Makati Med, just to name a few.

�Though I often say that every day is an adventure when you are in the Philippines, I have also developed a love for this country and her people. My plans are eventually to retire here as I�ve no intention of returning to the USA��

�In your article, you made several good points. I�d like to add a few of my own, for what they are worth.

�The company I work with employs about 1,500 people in well-paying jobs with excellent benefits. As you may be aware, foreign companies have done a lot over the past few decades in raising the standard of living here.

�In the near future, we expect to expand our operations in Asia�.but, unfortunately, probably not here.

�Why?

�Our facility is not in an industrial complex�deliberately. We are not unionized, but several years ago we did have an election and the union lost. During that time, I received death threats.

�You pointed out that in China and Vietnam there are no unions. This is a significant incentive, given the militancy of the unions here and the lack of will by the government to keep them within reason. In Malaysia, too, I�ve not heard of any problems with unions.

�So, invest in industrial areas that are all union hot beds? Forget it. Grow an already sizeable company here which is more likely to attract the attention of union organizers? Not likely. Many of our customers simply do not want to bear the risk of having their supply of parts jeopardized by a union. The hostility of unions here is well known.

�BTW, we have a co-operative that won first place in the NCR in its class for co-operatives. This is one way we try to take care of our employees.

�Unions by themselves are not necessarily bad. But here, I know of no unions with a benevolent reputation.

�Also both the Labor Department and Immigration Bureau in the government are openly hostile to foreigners. The �welcome wagon� of this country starts the process of poisoning the relationships with foreign investors almost as soon as we/they arrive.

�Got a labor dispute with an employee who was caught red-handed stealing and is taking his/her employment termination to court? In way too many cases, the employer loses and usually because someone gets to the judge. Talk to any foreign company working here and you will hear the same story.

�Corruption. Indeed an economy can grow in the presence of corruption, but it has a retarding effect. My company, which exports several tens of millions of dollars per year is VAT-exempt. But we have to pay it and then get it back. Due to flagrant corruption, we have to fight for every peso we are entitled to and are owed for reimbursement for many years still.

�Another way of looking at it is the cost of doing business here. Look at the complexities of corporate law and taxation here. Add to this a legal system which is largely for sale to the highest bidder or influential friend, and you have legal paralysis unless you ante up, which US law expressly forbids us to.

�Hong Kong was really easy to work in, and so it is in the special zones in China. So corruption is a strong disincentive to invest in this country, and make no mistake about it.

�Another related aspect is the cost of operations. Did you know the electricity rates in this country are second only to Japan�s?
(I know, and one big reason for it is the humongous debt of the corruption-ridden National Power Corp. ACA). Our business uses a fair amount of energy, so here again, because legitimate users are forced to subsidize those who steal electricity, the over-all effect is high operating costs.

�But also, due to the complexities of doing business, we have to employ more people than otherwise would, and spend more money on lawyers than we should, just to deal with the relatively hostile (compared to other countries�) business environment here.

�Security. I don�t use a driver or a bodyguard. I don�t feel the need for a bodyguard and I don�t like drivers. I do have security at my house, but it�s mostly because I travel a lot and want my family to feel more secure. I do a lot of scuba diving, I travel around Luzon and as far south as Davao, but do not feel threatened. Frankly, I feel safer here than I would if I were in Los Angeles, California.

�Any large city has crime. Problem is, the Philippines gets too much media exposure over our problems here.

�Consequently, the image of this country is not favorable. The impression our visitors, both from the US and Asia.. have before they visit Manila is that they best stay really close to their hotels as they might be robbed or mugged or blown up by a terrorist..   No wonder our parent company has made it clear they want further investments here limited..

�Another aspect of security here which is linked to corruption is that we often read about someone getting indicted for major theft of public funds.. but we almost never hear of them doing serious prison time and/or handing back their ill gotten wealth to the people from whom it was stolen� 

�What image does this convey? You can be guilty as sin and still enjoy your wealth while the legal system is tied up in technicalities�

�No responsible corporation is going to invest significantly in this country unless they have a very narrow or specific goal which has a high probability of being attained within a short time, when there are alternatives in the region considered to be of less risk..  

�What is so outrageous about this is that of all countries that should be doing extremely well, it�s this one. English is widely spoken and, compared to places such as Thailand and Vietnam, communication is easy�the location of the Philippines is also much better than any other in the region with respect to the others��..�

�It seems to come down to discipline and will power.. Fixing the problems does not require breakthroughs in technology or anything of the sort. Just the will power of the people in authority to do what is best for the overall situation and not just for their own bank accounts..

�I hope this email provides some insight into why foreign investment will continue to be scarce here and what can be done about it��.. As long as people are afraid to come here, the investment and hard currency that goes with it are not going to happen..� *****

Reactions to
[email protected] or fax 824-7642. Other articles in www.tapatt.org


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Reactions to �An Expat�s Lament�

Hello,

I am very interested in your article as I have been studying the business environment in the Philippines.  After visiting there with my brother and his fiancee, I developed a love of the land and people.  I agree the country should be leaps ahead of all other Asian countries.  I would like the opportunity to help the Philippines to build a better future.  I have a passion currently to be there and experience the culture.

I am interested in employment in the Philippines with an international company.  If you have the contact information for exceptional companies there, I would appreciate your assistance. As for me, I am a Business Systems Architect which equates to IT architect and Business Market Analysis hybrid.  I have more than 10 years in software development and architecture; as well as more than five years of Business Management in Financial Markets and Risk prevention.

David Guinan, [email protected]
December 15, 2005

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Mr. Abaya,

The letter from the expat gentleman is absolutely true. In addition, we have many highly skilled workers and brilliant college degree holders, but most are working overseas.  It's a shame our homeland could not utilize them. Minimal foreign investment means more college graduate leaving their homeland to work abroad due to high unemployment rate. Corruption is the opium in Philippine society. If judges can be bribed, then justice and law are worthless.

Nonoy Ramos, [email protected]
Pennsylvania, December 15, 2005

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My sentiments exactly.

Where else do you have a situation that your accountant is stealing from
you, and you can't fire him unless you want to have  a court case, and
possibly you will even be the one deported?

It�s ridiculous. Who wants a headache like that?

It�s easier to just invest somewhere else if you are a newbie.It�s generally just the old farts that have been here, who have a family here, that stay on. The system discourages honest businessmen, regardless of nationality.

That�s the worst part of it. Its not limited to expats. It discourages DOMESTIC investment. Would there be such an explosive migration of highly skilled export labor if this were not the case?  I'm not talking maids. I mean managers, and other professionals.

Peter Capotosto, [email protected]
December 15, 2006

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Hi Tony,

I�ve always enjoyed your articles and often share them with friends J They have always provided me hope that we have not all given up, so to speak.

Anyway, the paragraph below from your American reader is very appt� It is what many, I believe, many feel but unfortunately our leaders don�t seem to get the message. They are preoccupied by new, bigger and �better� as solutions to our problems that often times involve large sums of money, which the country doesn�t have. Yet, they persist in this madness through their CDF or special legislation.

If only they viewed the country as they do their own family, then maybe they wouldn�t spend money we don�t have and they would act responsibly and do everything in their power to improve the national economic situation.

Is it not the voice of the masses that are viewed as votes by our near-sighted politicians that dictate their action? To keep themselves in power, they know that the masses should remain preoccupied with survival so they cannot think further than satisfying their immediate needs at any cost. And keeping them in this state is what will insure their survival in politics. All they need to do is to continue to give the masses the perception of concern and  project that they are doing something to address the immediate needs of their constituencies.

The truth is another matter. Our politicians do not need to concern themselves with long term and/or permanent solution to the country's woes to do well in politics. In fact, this could be the end for them if their constituents start demanding more than survival and now want good government too.

�It seems to come down to discipline and will power. Fixing the problems does not require breakthroughs in technology or anything of the sort. Just the will power of the people in authority to do what is best for the overall situation and not just for their own bank accounts�

Romeo G. David, [email protected]
December 15, 2005

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Hi Tony,

How about  a slightly different take on Philippine corruption from another expat?.

John Mangun, [email protected]
December 15, 2005

Corruption�s Ugly Face
By John Mangun
Business Mirror newspaper
December 07, 2005

Political and Economic Risk Consultancy (PERC) Ltd. out of Hong Kong reports the perception is that the Philippines is one of the most corrupt nations in Asia.  So, what else is new?  The story is so old that it does not attract much attention anymore.

The PERC says the Philippines is one of the most corrupt places in Asia to do business.  Malaca�ang says they are doing everything it can to fight graft and corruption.  And the average member of the public turns the page.  It is exactly like the response to the murder of Filipino journalists; not worthy of much attention since it is an on-going condition.

This time though, the PERC report showed some insight into the problem.  Of course, the report criticized the government�s efforts to fight this problem.  "They (the government) argue that those accusing the country of graft don't know what they are talking about, that the country has an 'independent ombudsman' who is doing an excellent job of fighting corruption, and that corruption is not really a big problem�. 

Further though, PERC spoke of the culture of corruption that the Philippines seems to embrace.  "People who hold political power are able to so dominate national institutions and how laws are interpreted and enforced that average citizens of the country feel powerless to fight the problem and consider it (corruption) an unfortunate but permanent feature in the system."

Therein lies the problem.

With almost twenty years of doing business in the Philippines, I have never seen graft and corruption a personal hindrance.  Of course, I am not on the scale of Fraport and the airport contract with its millions of pesos of paid brides to government officials.  But then again, most investors are not in that category either.  I learned the local rules a long time ago; never deal with a government agency just before lunch or merienda time.  Otherwise, you either buy the meal or wait until later to get your documents.

I have discovered that the best way to avoid Filipino corruption is to talk to the person at the top.  Once many years ago when the Mandarin Hotel was remodeling, I called to inquire about buying some of their used furniture.  The person in charge of the sale assured me that for some small financial consideration to him, I would get the items I wanted at a good price.  I called the General Manager.  The chairs and tables were mine at a good price without paying the  �small consideration�.

The same is true at the government level.  I set once with a high official of Mandaluyong.  He asked politely if I could offer some small compensation to lower staff members who would have to work a little harder and a little longer to fulfill my needs.  I bought them pizza and soft drinks when the task was finished and I left with respect for the boss who easily could have showed me an outstretched hand. 

I believe the greatest problem of corruption that keeps foreign investors out of the country comes, not necessarily from the government, but from the Filipinos that these investors first meet.

The foundation of foreign investments is not the hundreds of millions of Pesos that the large corporations bring to the nation.  It is the tens of millions of Pesos from the smaller foreign business people and corporations.  This is the money that creates prosperity and this is the money that is pushed away from our shores.

Last week, a friend returned to the Philippines for the first time since 2000.  He is an Australian who owns a large real estate and property development company.  The man has always been interested in doing business here.  But, he is an honorable man who refuses to either break the rules or to do business with crooks just to make a profit. 

Wanting to invest in 2000, a junior partner of one of our local brand name law firms told him it could cost US$10,000 or P500,000 to establish a company here.  That price included S.E.C. filings and attorney  fees, justified by the several months it would take to complete the transaction.  If  you have ever set up a company, you know that it only takes days at the S.E.C. and for P500,000, you should be able to set up ten companies.  My friend left.

This time he tried  again..  Attending a businessmen�s group luncheon in Quezon City, he found that the vultures once again smelled fresh meat.  One of these �respected� men offered to  sell him an interest in a mango plantation.  The deal was economically sound and the price was fair; 5 million.  Except a month ago, the seller offered it at 5 million PESOS; now the price was 5 million DOLLARS. Now the deal did not make ANY sense and everyone lost out.   My friend left the Philippines for a second time.  In five years, he might try again, maybe.

Email comments to [email protected].

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Now we know; there are no two ways about it.  Honesty, integrity are key to business and life.

TY for all the articles, T!

Lydia B. Echuaz, [email protected]
President, Far Eastern University
December 16, 2005

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This expat offered us one of the best of gifts -
the truth about ourselves.

Tom de Guzman, [email protected]
December 16, 2005

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(Copy furnished)

Dear Willie and Romy,

When the three of us first met at the AIM Faculty room, I had just recently attended a short meeting where Romy expounded on his "booty-capitalism" diagnosis and prognosis of what was ailing our economy.  At that time, he was still at the CPBO and we were smarting from an attempt of Erap cronies that wanted to monopolize the entire Philippine Ports System through the issuance of Executive Order 59.

In their efforts to push through with the intent of the EO, the PPA coffers were raided for P500 million just to buy peace from the laborers that have been sold out by their dealers.  People that called themselves labor leaders had collaborated with the consortium by having the ports of Cagayan de Oro and Cebu assigned to them. The release of the money has never been cleared by the COA, but up to now, no one has been questioned about it.  Not even the PPA GM appointed by PGMA.

Thanks partly to the efforts of the Coalition for Shipping and Port Modernization which both of you supported, EO 59 was not implemented and it was withdrawn towards the end of the Estrada regime.  But that really did not accomplish anything.  With the administration of PGMA, the same vested interests have continued having their way in the maritime-related businesses.

Everyone knows that the consortium leaders either were replaced or were able to regroup and siddled up again to PGMA, continuing to curry favors from the highest position in the land.  It is as if these businessmen would not be able to succeed in their businesses unless they are able to cling to the hems of those in power.

Both of you were present when the Coalition had a meeting with the arrogant PPA GM when he challenged all those that questioned the railroaded rate increases to go to court.  That arrogance has been escalated and we find the PPA GM appointed to head the NAIAA, and what do we hear of him now?  He is being accused of having facilitated election-related bribes together with his Rotarian brother, the FG.

Now that you have been able to encounter these "booty capitalists" in the halls of power, I wonder whether your sentiments about these operators have mellowed down or increased in intensity.  These captains of industry must have really been helping the President in her trying moments of governing this nation, but what price are we all paying for?

I am forwarding the article below of Tony Abaya to remind you that we are continuing to go farther away from the solutions to what is ailing our country and continue to hope that somehow, the principles and the idealism which we shared when we fought EO59 still remain hot as ever with more fuel to burn rather cold and ashen asking to be rested from a long and ardous struggle.

Tet Gambito, [email protected]
Cebu City, December 16, 2005

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This expat is telling the real situation based only on his own experience. While he tried to expand his horizon, going places and kept abreast of the political and social problems; he came up with two basic root causes why foreign investment will not come to the Philippines.

We have had discussed issues upon issues and this expat's experience rusn parallel to our experiences and observation. We can blame it on our damaged culture, to politicians operating only to line up their pocket with stolen money; but what about the masses? Are they blameless? Our cultural upbringing is not solid enough, not embedded in our national psyche. We are the people whose nationalism is weak, our virtue is calculated for self advancement. Professional pursuit is the most fallible, easily corruptible and our greed is what bound us to  our failures.

Our school system is not effective in molding our youths, our news media is honed to destroying our government by producing news item that sells even if they are half-truths. We have politicians that are viciously corrupt and bureaucratic red tapes design for maximum corruption. Judiciary is the weakest link and ca not enforce the laws, a system that allow the unhampered propagation of criminalities everywhere.

Is this what our forefathers died for, the heroes shed blood hoping for the youth to carryon. Well, we were once the youth and many more generation had past; the life and blood of those who gladly gave so we the inheritor might live in peace and prosperity are nothing but in vain!

Where were the fervor burning and the sacred shores we adore? Will and discipline! Where?

Paul Dalde, [email protected]
Houston, Texas, December 15, 2005

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Thank you for publishing the expat�s lament on the business climate in this country.  I�ve always wanted to know how the other side felt and why.

Marilu C. Soriano, [email protected]
December 17, 2005

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Reaction to �Gunfight at OK Corral� (Nov. 22, 2005)

Dear Tony,

Your brief account of traveling across Europe on a Vespa scooter is fascinating.  Now I understand better your journey across the realm of ideas and your wish to share the experience.  I wish you more mileage in this one.

I agree with you and Randy David's conclusion that trapos and communists don't present viable choices in our present political dilemma.  I also agree with you that the Black and White movement should acquire more sophistication in their choice of alternatives.

There's one other option closer to your heart and is slowly but steadily gaining ground.  I'm referring to a transition revolutionary government recently renamed transition governing council.  I think the change of terminology is to avoid association with similar proposals coming from the extreme left and extreme right of the political spectrum.  Any hint of a connection with either is a kiss of death in terms of gaining popular support.

I have already written about a transition governing council but I wish to write about it again in view of your observation that we've no real alternative.  A transition governing council is by the way being advocated by the Laban ng Masa, a coalition of democratic socialist movements.  Prominent among them is Akbayan, a full-fledge political party that has so far limited its participation in electoral politics through the party-list.  It's current party-list representatives in Congress are Risa Hontiveros, Etta Rosales and Mayong Aguha.  All three are respectably holding their own for the cause of reason in a completely unreasonable political venue.

A transition governing council is to be composed of untainted and respectable personalities representing the various sectors of society, especially, the underprivileged.  The elite, irresponsible as it has been in charting the course of our country, is nonetheless to be represented.  This varied representation of conflicting interest is sure to make the council unstable but not necessarily unworkable.  This is if it doesn't attempt to do too much

I suggest that the council limits itself to administering the operation of government during the transition period and to correcting fundamental flaws in our political structures.  Our failed state is a consequence of elitist democracy mirrored by our political structures.  State policies formulated by our political institutions are merely an extension of narrow interests.  Our political structures  must be made more responsive to the needs of the majority and less vulnerable to the influence of narrow interests.

Next to administering the daily operation of government during the transition period, the transition governing council must revamp, modernize and strengthen the COMELEC.  This is to ensure that it can finally be an impartial and efficient administrator of elections in this country.  This is a minimum condition for a real democracy.

The third order of business for the transition governing council is to convene a constitutional commission.  A constitutional change that must be undertaken is to convert our present unitary form of government with a bicameral congress into a federal system with a unicameral parliament. The new parliament is to have fifty-percent proportionate representation and fifty- percent sectoral representation.  The purpose of these changes is to make government more accessible to people through the federal system and less vulnerable to the machination of narrow interests through greater sectoral representation.

The final order of business of the transition governing council is to conduct a new election for a new government that is hoped to complete a more comprehensive reform process.  A newly elected government with a true mandate and with more even representation from across the socio-economic structure of society should be able to craft policies that is truly for the common good.  Should this happen, we may finally have a just society that is free from the impositions of a greedy ruling elite and that would enable us to attain the kind of life we value _ and have reason to value (The phrase in italics is borrowed from Dr.Amratya Sen, 2003 Nobel Prize awardee in Economics).

Gico Dayanghirang, [email protected]
Davao City, December 18, 2005

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Filipinas as Commodities?

Dear Mr Abaya:

I�ve only just seen the Dec.3-9th issue of the Economist (�Failure in Sudan� cover) and wonder if you saw the piece on page 53 about Japan�s �Grey Market.� 

The article deals with the care of Japan�s ageing population, and a passage reads:  �Bringing in cheaper, foreign nurses and care-givers is not an option in a political climate that is so averse to immigration (a proposal to allow Filipina nurses and helpers sets the annual quota at no more than 200---though the government last year was happy to grant more than 80,000 �entertainment� visas to young Filipinas.)�

Has anyone in Manila written about this mind-boggling situation?  Has servicing Japanese males by shipping out dancers/singers/waitresses/etc. taken precedence over promoting our nurses who have such a fine reputation in the West?

I don�t know if you�ve already written about our government having turned Filipinas into commodities that generate foreign exchange.  Or perhaps it�s already been done elsewhere? 

Isabel Escoda, [email protected] 
Hong Kong, December 17, 2005

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Who�s to Blame?
 
Sinforoso Dimaculangan (son of a town physician in Quezon province, 5 years audit work to save for his M.B.A. INSEAD, recently returned to Manila) started the day early having set his alarm clock (MADE IN JAPAN)  for 6am.

While his coffeepot (MADE IN CHINA) was perking, he shaved with his electric razor (MADE IN HONG KONG).
 
He put on a dress shirt (MADE IN SRI LANKA), designer jeans (MADE IN SINGAPORE) and tennis shoes (MADE IN KOREA).
 
After cooking his breakfast in his new electric skillet (MADE IN INDIA) he sat down with his calculator (MADE IN MEXICO) to see how much he  could spend today. After setting his watch (MADE IN TAIWAN) to the radio (MADE  IN INDIA)  he got in his small car (MADE IN MALAYSIA) and continued his search for a good paying Manila/Philippine JOB.
  
At the end of yet another discouraging and fruitless day, Sinforoso decided to relax for a while.
He put on his sandals (MADE IN BRAZIL) poured himself a  glass of wine (MADE IN FRANCE) and turned on his TV  (MADE IN INDONESIA),  and then wondered why he can't find a good paying job in Manila.....

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SOME BORROWED LESSONS: CAN WE DO LESS?

The Iraqi elections provide insightful vignettes for the elusive vision of Filipino Expatriates to remold the governance of their Motherland. The almost rhetorical question is: Can we do less? Or perhaps: Should we do more?

The 2005 year-end Iraqi election involves 1.2 million overseas Iraqi voters living in 15 countries, representing about eight percent of   the 15 million onshore voters. The Iraqis had a six-week voter registration period starting late 2004.

The Philippine Government's target is to register at least 1.0 million Filipino Expatriates, less than 3 percent of the country's onshore voters. Filipino Expatriates account for more than 10% of total Filipino population. Comelec has 11 months within which to register new Filipino Expatriate voters, extending up to August 2006.

To maximize the turnout during the 2005 year-end election, the Independent Electoral Commission of Iraq allows simultaneous overseas voter registration and voting. It is reasoned out that legitimate, eligible voters will be the overwhelming proportion of registered voters compared to potentially insignificant disqualified voters.

Al-Mamori, a 38-year-old gas station manager living with his family in Sunnyvale, California, embodies the driving spirit to transform his homeland. He regrets that, sans the costly occupation, the U.S. could have removed Saddam Hussein, whose forces he believe killed his father two decades back.

"We don't have a choice. We have to do something to make a better life for the Iraqi people," al-Mamori said. "We have an opportunity to work for our government. Even if we only have 10 percent (influence), we have to do it. If we don't, it's going to be a minus -- less than zero."

While recognizing that the Iraqis will tend to vote along ethnic and religious lines, Al-Mamori views voting as a powerful statement. "It's very important for people to share in this," he said. "I really encourage them, even if they're busy, to find the time and go there."

Bishop John C. Wester, Auxiliary Bishop of San Francisco and Apostolic Administrator urges Catholic Pastors in the Archdiocese of San Francisco: "Please consider   sponsoring voter registration drives in the parishes so that our people may implement the Church's call to faithful citizenship. Let us never forget that in the Catholic tradition, responsible citizenship is a virtue; participation in the political process is a moral obligation". 

Responding to the Church's call for faithful citizenship, the American-Filipino Community Voter Registration Program, an all-volunteer organization drawn from American-Filipino community leaders in the Bay Area, is embarking on a Voter Registration Program extending till the latter part of 2006. The initiative is all-inclusive and proposes that voter registration be open to all parishioners eligible to register to vote in the U.S. (including American Filipinos, dual citizen American Filipinos and Filipino permanent residents).

The goal is to register qualified voters for both U.S. and Philippine elections. The Bay Area initiative, which extends to 10 Northwestern states, is to be replicated all over the United States.

The voter registration organization, which has the full support of the Philippine Government, consists of leaders and friends of the American-Filipino community in the Bay Area. It opens the Program to all organizations that share the common goal of faithful citizenship. It is non-partisan and, therefore, does not support or promote the interest of any political party or candidate. The organization provides time and resources needed for the Program.

Can we do less than the Iraqis? Or should Filipino Expatriates in all continents do more?

Victor S. Barrios, [email protected]
San Francisco, CA, December 15, 2005


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Thanks for sharing this email Tony!  I feel exactly the same as this man.  There really needs to be "Spring Cleaning" made in all levels of the government.

Speaking of that, maybe your next article can address certain issues like spring cleaning the Philippine government, Philippines becoming a commonwealth of USA like Guam and Puerto Rico and what happens with corrupt politicians like the Marcos' especially Imelda Marcos and Filipino Leadership: Can the Filipinos really lead or are they just a bunch of followers under Americans?

Louis J. Eguaras, [email protected]
Valencia, California, December 22, 2005

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Hi Tony,

Here is another good reason not to be in the Philippines�

We work with local subcontractors here.. It supports the employment of hundreds..  Now, with the already negative image we have here.. I�ll probably have to find a way to do in-house the work we currently sub out..  There will be jobs lost.

If those who are guilty of crimes are punished it would be one thing.. but we almost never hear of it..

I had mentioned to you my car was stolen at gunpoint. My wife and I were dumped on the coastal road after a terrifying 30 minute ride with a gun in my ribs..

The cops found some of our stuff a few weeks later while doing a bust in Tondo as they found a holiday greeting card with our address on it so they contacted us.. The people who were fencing some of the stolen items, the driver of the car with the robbers who stole our car were caught. (We were forced off the road at 11 pm on the way home from the airport on the Zapote Road near what is now PriceSmart ) That driver had other cases against him, according to the Fiscal.

The judge threw out the case because the cops did not have �all� the criminals in custody.. I was incredulous!  They caught people with items they admitted were stolen from us and had our names sewed in them (clothes), and yet the judge let them go!  My wife and I personally went to Tondo under police escort to retrieve a few items.. The total value of what we lost was > $20K. We had some expensive items with us from the US, plus jewelry as we had attended a black tie New Years Eve party..

(This event happened in January 1990 btw and I have been robbed twice since. Once at Makati Med about seven years ago and about two years ago by a pair of snatchers who stole my hand bag )

The problem here is pretty simple.. Crime pays, so with the risk low of paying any penalties, do the crime as you won�t likely do the time�

We also have had a case of a maid stealing  from us. When caught and we brought in the village authorities, we were asked what our problem was as we can � afford � to loose this amount of money..!!  The poor maid must have needed it so we should just give her money since we are so �rich�! What a mentality! This is absurd!

Since I�ve been concerned about using local subcontractors for some time due to security reasons I may have no choice now but to cease using them..

Furthermore, this makes the prospects of expanding here even more dim..

So sad.. People will loose their jobs because the authorities don�t have the will power to arrest and imprison people who violate the laws here..

The risk of paying a penalty for breaking the law is so small, it pays to be a criminal.

(Name and email address withheld)
December 22, 2005

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Hi Tony,

Hope you and your family had a safe and very Merry Christmas..

OK on the sequel.

I had already checked out that site and frankly was very impressed by the credentials of your associates.

To be honest with you, it gave me a feeling of hope.. Hope that there are more than just a few present and former public servants/officials who may not have lined their pockets at the expense of the general public. But I noticed too you are mostly seniors and with all respect please, I sure hope current public officials pay you the respect you have coming to you and pay more than lip service to your concerns and counsel.

I try not to be cynical about the state of the nation but it takes effort.

In the Star there was an article about the hijacking and apparently the mastermind of this event has a � get out of jail card � that does not expire..

What is really damaging is the implication this person has such high level protection he can get away with serious crime with impunity.  This is what drives people to cynicism I think. It�s hopeless is the first thought to mind.. The second is that GMA must be really impotent for this to go on..  I can�t help but ask myself, why can�t she just look into this and if it is true this guy has gotten inside help deal with it and do so publicly and swiftly.. Or get one of her senior staff to do it and keep the effort in the public eye. Her failure to do this further implies the protection may be all the way to the palace or pretty close to it.. 

She has to regain credibility somehow..  I have been a supporter of her administration but maybe it is time for a change..

My company is also in the semiconductor business..  How can we promote this country as a �better� investment location than our neighbors when just to get your product to the airport you need an armored vehicle and security escort ( this is what Intel does btw.. according to Fed-X staff I met with on Friday last week )  Mine is not the only company deliberately limiting investment here and security is just one of the many reasons for this.

But here again, the irony, and contrary to what I sometimes hear is the expectation, ( mostly from Filipinos ),  the quality of our products is exceptional based on any world class metric.

Sadly, people here are pretty cynical about their own capability..

The expertise is so good that I am trying to groom some managers for more regional roles.. and, identify certain individuals for greater responsibility as the more senior of us ( at the director level ) retire.

The negative image of the country works against that effort in subtle ways�

BTW, there are many Filipino OCWs in the electronics industry in Asia..  There is a 30 year history of electronics in the Philippines so the experience and the ability to communicate in English has opened the door of foreign employment to many people here.

Re earlier letter..

In conversations with one of my local Filipino friends and another American expat the letter came up. They had not guessed it was me but mentioned that the story sounded familiar. After their comments about it I told them who wrote it. The feedback I got was good. Apparently it was picked up on by the American Chamber of Commerce too and there was a lot of agreement about the content.

There is a lot of frustration over the lack of discipline and unfriendly investment climate here..

Anyway.. wishing you and your family a Happy New Year too and lastly, thanks for reading this.. I won�t be an email pest I assure you..

Oh, one correction to the sequel. It�s not Price Smart anymore.. it�s Home Depot.. The robbers had followed us from NAIA and knew, thanks to the village stickers, where we were going and waited till we were on a dimly lit and relatively quiet section of highway.

(Name and email address withheld)
December 27, 2005

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