View from the Outside: A Closer Look at the Country’s Business and Political Climate

Like the learning curve, an industry’s journey into proliferation reaches an average level that shows a steady stream of development. While numbers continue to increase and show impressive revenues beating those of the year before, it isn’t all about the successes that keeps a nation thriving.

The Philippines did not earn its title one of the best BPO destinations in the world overnight. It took hard work and a few pushes here and there to get where we are and for that the Filipino people are thankful. While we aim to further improve our excellence in an industry that generated billions for our country, we must not forget the other details that play a large role in the success or failure of an entire nation.

This weekend, the Business Mirror reported the World Bank’s refutation of the numerous reports following the good news that pushed the Philippines back into the BPO spotlight. With this report, we are reminded that as a business leader, we must not forget about our social responsibilities and that success is as fleeting as our very own lives.

While the World Bank is fully aware of the recognition brought to the Philippines by our western counterparts, the organization also zeroes in to the internal functions of the Philippine BPO industry—which includes the local government. Yes, we have close ties with our international clients. Yes, we have exceptional customer service. Yes, we can be resilient in the midst of calamities. But will all these prevail with the rise of the second wave countries that are more than ready to take a portion of the pie?

World Bank-Philippines chief economist Eric LeBorgne explained that there is a huge discrepancy between the massive revenue the BPO industry is reaping for us and the number of employed individuals in the country. While the industry has indeed employed thousands upon thousands of people over the past five years, this is minimal compared to the number of people still battling poverty.

“Industry was unable to absorb the rapidly growing labor force, including migrants from the rural areas, leaving the service sector as the safety valve. Services account for 65 percent of the gross domestic product and nearly half of employment, but anecdotal evidence suggests that the bulk of the service sector simply masks severe urban underemployment with very low productivity.” These are the World Bank’s exact words as reported by the Business Mirror.

The World Bank doesn’t want to burst our bubble—rather, it wants us to realize our weaknesses and help us deal with these things that really hinder us from becoming even more successful in the future, whether it be in the BPO industry or not. In fact, the Philippine BPO industry has been carrying out its social responsibility by contributing significantly through taxes.

“A ray of hope has been offered by the success of the business-process outsourcing service sector, which in less than a decade has risen as a formidable global competitor to companies in India…more will need to be done to help BPO boost employment from 1 percent of the total in the country, however, and policies to be pursued will also facilitate the emergence of other higher value-added and high-productivity services and manufacturing,” the bank said.

What is imperative now, the World Bank points out, is that the government must spread itself more thinly and “invest more in improving the country’s business climate, infrastructure, education and fiscal consolidation”. It is rather unfortunate that this task is solely on the government’s hands. I for one, would love to see the day when most of the Filipino youth are well educated and competitive enough to join the global revolution. During these times when financial crisis, global warming and political instability has become as a normal as a morning routine, we must not forget the younger generations, those of who will soon carry out what we have started and grow up to become global leaders as well.

We are aware that there is enough money to go around to build schools and generate jobs. But corruption will always be hindering factor in the development of any country and quite unfortunately, politics also plays a role in the proliferation of businesses. What we can do as citizens, however, is to be socially responsible—socially aware of our political climate and use our vote wisely. The presidential elections are less than six months away and campaigns are in full swing. As concerned citizens of this country, standing united won’t be enough. Sure, we’re resilient, but resilience won’t function without a sense of awareness. It doesn’t matter if you’re in the BPO industry or not. Every hardworking Filipino must use his vote wisely. Besides, what are all these successes if we won’t elect a leader who will help propel us into the future of a more developed Philippines?