For someone who works in another country, I have to constantly remind myself not to compare anything whenever I come home to the Philippines. However, some things are just too glaring not to mention. Top of my list is the internet speed.

The moment the plane landed at the airport I was immediately connected to the 5G network of my roaming global number. I wanted to update my friends that I have landed (especially that my flight got bumped several times, but that’s a different story altogether) but could not send messages. It was just “sending” for quite a while. Only after I was able to retrieve my luggages that these messages were sent.

I registered for a mobile data promo that allowed me 4GB of data. It was quite reliable for me to book a grab car and get to my hotel. I was on a video call with friends on the way to the hotel, when I received text messages from the mobile network warning me that I have consumed this much data already. After a few minutes, the video call froze, which meant that the 4GB had been fully consumed, after not more than 12 hours since I first landed at the airport.

I had to register for another mobile promo to enjoy another 4GB of mobile service. I thought this mobile promo would be good for me as I travel to Baguio and then, Sagada. As I was doing my rounds in Baguio City before my trip to Sagada, service was so bad that I could not even open my Facebook or Tiktok. The trip to Sagada was worse. Service was intermittent until I reached our accommodation where there was no service at all. Good thing, there was the Starlink service which allowed me to use the internet to send this piece to my editor.

Aside from the really bad service, it is also expensive. I paid P140 for the first mobile data promo. Assuming I have the same consumption everyday, P140 times 30 days, that would be P4,200.

Forgive me for comparing but in Taiwan where I work, I pay for a month’s subscription amounting to NT$999, if converted to Philippine Peso, it would be around P1,750. This subscription allows me unlimited 5G service 24/7. I can watch Netflix without buffering.

With this expensive internet access in the Philippines, what could be the disadvantages of having slow internet access to the economy of the Philippines?

First is impaired productivity. Slow internet speeds hinder productivity across industries such as business process outsourcing (BPO), remote work, e-commerce, and digital services. Employees spend more time waiting for pages to load or files to download, which reduces overall efficiency and output.

Another is limited business opportunities. Businesses relying on fast internet for operations, such as online retail, tech startups, and freelancing, may face limitations in scaling their operations. This restricts their ability to compete globally and attract international customers.

It presents educational inequality. Slow internet affects access to online learning materials and resources, disadvantaging students in both urban and rural areas. It hampers distance education programs and limits the quality of digital learning experiences, widening the education gap between those with and without reliable internet access.

It inhibits innovation and digital transformation. Slow internet can deter investment in digital technologies and innovation. Companies may hesitate to adopt advanced digital tools and services, hindering overall economic growth and modernization.

It has an impact on tourism and hospitality. Slow internet affects tourism and hospitality sectors that rely on online bookings, customer reviews, and digital marketing. Poor connectivity can deter potential tourists and impact visitor experiences, affecting revenue for local businesses.

It also frustrates consumer engagement. Slow internet diminishes customer satisfaction in industries like e-commerce, digital entertainment, and online services. Users are less likely to engage with websites or apps that load slowly or have frequent interruptions, leading to lost sales and reduced customer retention.

And finally, financial services limitations. Slow internet can impede access to online banking services, financial transactions, and digital payments. This restricts financial inclusion and limits the efficiency of digital banking platforms.

Addressing these economic disadvantages requires improvements in internet infrastructure, such as expanding broadband coverage, enhancing network reliability, and increasing internet speeds. Policy initiatives aimed at promoting competition among internet service providers and encouraging investment in digital infrastructure are crucial steps towards mitigating these disadvantages and fostering economic growth in the Philippines.

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Remote’s Global Life-Work Balance Index compared countries based on a combination of important workplace factors including total days of paid leave, percent of wage in sick pay, weeks paid in maternity leave, minimum wage, healthcare system, Happiness Index score, average hours worked per week, inclusivity of LGBTQ+ community, and safety based on Global Peace Index.

There were other Southeast Asian countries that were in the list. These include Singapore which is in the 26th rank, Vietnam (37th), Thailand (39th), Indonesia (43rd) and Malaysia (47th). 

Work-life balance is crucial for several reasons, impacting individual well-being, organizational effectiveness, and broader societal health.

On individual well-being, mental health is first on the list. A balanced work-life ratio helps prevent burnout, stress, anxiety, and depression. It allows individuals to manage work pressures without compromising their mental health. It can also impact physical health. Sufficient time for rest, exercise, and healthy eating is essential for physical well-being. Overworking can lead to chronic health issues like hypertension, cardiovascular diseases, and a weakened immune system. And of course, personal fulfillment. Time for hobbies, relaxation, and personal interests contributes to a sense of fulfillment and happiness. It helps individuals pursue their passions and personal goals.

With respect to family and social relationships, having a good life-work balance  means spending quality time with family and friends strengthens relationships and supports emotional bonds. It’s crucial for maintaining a supportive social network. For parents, work-life balance is especially important for parents, enabling them to be more present in their children’s lives, which is vital for child development and family cohesion.

On employees’ performance and productivity, employees who maintain a healthy work-life balance tend to be more focused, creative, and efficient. They are likely to produce higher quality work in less time. There will be reduced absenteeism. Balanced employees are less likely to take sick days or mental health days, reducing absenteeism and increasing overall productivity. There will also be greater employee engagement. When employees feel their work-life balance is respected, they are more engaged, motivated, and loyal to the organization.

Aside from individual benefits, the organization benefits as well from the good work-life balance of employees. Companies that promote work-life balance are more attractive to top talent. Employees are more likely to stay with an employer that values their well-being. Furthermore, a good work-life balance can reduce turnover rates by improving job satisfaction, which can reduce costs and disruptions as a result of high employee turnover. It would also result to a positive workplace culture. Encouraging work-life balance fosters a positive and supportive workplace culture, which can enhance collaboration and teamwork.

In a more macro perspective, having a good work-life balance for employees would impact the economy and the entire society. For economic productivity, a healthy workforce contributes to overall economic productivity. Chronic stress and burnout can lead to decreased economic output and increased healthcare costs. As to social stability, balanced individuals can contribute more effectively to their communities, participate in civic activities, and support social stability.

Work-life balance supports sustainable development by promoting well-being and equitable growth. It helps in addressing issues like gender equality, as flexible work arrangements can support working parents, particularly mothers.

Work-life balance is essential for the holistic well-being of individuals, the effectiveness and sustainability of organizations, and the health and stability of societies. It enables individuals to thrive both personally and professionally, fosters a productive and positive workplace environment, and contributes to broader economic and social well-being. Prioritizing work-life balance is a strategic imperative for businesses and a vital component of public policy aimed at enhancing quality of life.

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I know several friends who have ventured into this field. Some of them came from BPO companies. Some of them from regular office jobs. And one friend, Charlyn, in particular, who was working in a government agency wanted to earn additional income while she can take care of her children at the same time.

There is no doubt that the BPO industry in the Philippines has contributed a lot to the GDP of the country, and the contributions of employees in the service sector cannot also be discounted. However, the contributions of the freelancers to the economy may not be as recognized as the two mentioned earlier. So how does the freelancing “sector” really affect the country’s economy?

First is related to the labor market. The demand for freelance work can vary significantly by industry, with technology, writing, design, and consulting being some of the most common fields. That particular friend of mine is a copywriter. Some friends are virtual assistants. It is just fortunate nowadays that access to the global labor market is easier now because of advances in technology. The rise of platforms like Upwork, Fiverr, and Freelancer.com has facilitated the growth of the gig economy, making it easier for freelancers to find work and for employers to hire temporary workers.

On income and earnings, freelancers often experience fluctuating incomes due to the project-based nature of their work. Earnings can be influenced by factors such as expertise, reputation, and the ability to secure consistent contracts. One can earn more given better circumstances. Freelancers can charge by the hour, by the project, or on a retainer basis. Effective pricing strategies depend on market rates, the freelancer’s skill level, and the complexity of the work.

With regard to costs, freelancers are responsible for their own expenses, including equipment, software, marketing, and office space. These costs can vary depending on the nature of the work. Sometimes, equipment is provided by employers, but these are special cases. Like this one friend who’s laptop including the router were provided. On the other hand, unlike traditional employees, freelancers must manage their own taxes, often paying both income tax and self-employment tax. They also need to arrange for their own health insurance, retirement savings, and other benefits.

While freelancing can be relatively easy to start, building a sustainable career can require significant time and effort to establish a reputation and client base. The internet allows freelancers to access clients worldwide, increasing competition but also expanding potential opportunities.

Regarding the domestic economy, freelancers contribute significantly to the economy, particularly in creative and tech industries. Their flexibility can help businesses scale quickly and innovate. Freelancing provides labor market flexibility, allowing workers to take on projects that suit their skills and schedules. This can lead to increased job satisfaction and productivity.

Aside from economic factors, there are other factors that are affected by the freelancing “industry”.

On social and psychological factors, including work-life balance, freelancers often have more control over their schedules, which can improve work-life balance. However, the lack of a structured environment and job security can lead to stress and burnout. Another on social isolation. Working independently can result in social isolation, which some freelancers mitigate by working in co-working spaces or networking with other freelancers.

On technology and innovation, technological advancements have made it easier for freelancers to find work, manage projects, and receive payments. Collaboration tools, project management software, and online payment systems are crucial. Automation and artificial intelligence could impact the demand for certain freelance services, either by creating new opportunities or making some skills obsolete.

The economics of freelancing involve a balance of opportunities and challenges. Just like Charlyn, it offered flexibility and autonomy for her but it required careful financial and career management in order to fully benefit from this “career”. For the broader economy, freelancing contributes to innovation and labor market efficiency but raises questions about worker protections and income stability.

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It got me thinking about what could be the economic implications of the closure of printed newspapers, which may be directly on the media industry and indirectly on the broader economy.

First is job losses. The most immediate effect is on journalists, editors, photographers, and other newsroom staff. Jobs in printing presses, paper supply, and distribution networks (like delivery personnel) are also affected.

Next is Advertising Revenue. Print newspapers have traditionally relied heavily on advertising revenue. As they close, advertisers shift their spending to digital platforms, often at a lower cost per impression. Local businesses that relied on printed newspapers for advertising may struggle to find equally effective alternatives.

It may have indirect economic impacts, as well. First on Local Economies. Local newspapers often support small businesses by providing affordable advertising and publicity. Their closure can make it harder for these businesses to reach customers.Newspapers promote local events, and their absence can lead to lower attendance and engagement, impacting local economies.

On Political and Social Implications, newspapers play a crucial role in holding local governments and businesses accountable. Their closure can lead to less oversight and increased corruption. Without local newspapers, communities may become less informed about local issues, leading to lower civic engagement and voter turnout.

Furthermore, it has implications on broader economic trends.

On Digital Transformation, there are new business models where media companies are increasingly shifting to digital models, which include paywalls, subscriptions, and diversified revenue streams like events and branded content. We also  have Tech Industry Growth where the shift to digital media benefits tech companies that provide platforms for news distribution, advertising, and analytics.

On Economic Inequality, with respect to access to information, there is a digital divide where low-income and rural communities may have less access to online news sources, exacerbating economic and informational inequalities. On the other hand, on job market shifts, displaced workers from the print industry may face challenges finding new employment, especially if they lack digital skills.

The ceasing of operations of Baguio Midland Courier is not an isolated case. As I mentioned earlier, it also happened to Sunstar Baguio back in 2021. Other than these cases, this phenomenon is also happening around the globe, like that of Detroit Free Press and The Detroit News. These newspapers significantly reduced print operations and moved towards digital-first strategies, reflecting broader industry trends. Another is Rocky Mountain News. The closure of this newspaper in Denver led to significant job losses and a gap in local news coverage. And many more, local startups. Some communities have seen the rise of local news startups and nonprofit news organizations filling the void left by traditional newspapers.

What could be potential solutions and adaptations that may address this phenomenon. First is government and philanthropic support. Governments and nonprofits can provide financial support to struggling local newspapers or fund new local journalism initiatives. There could also be policy interventions. Policies that support local journalism, such as tax incentives for subscriptions or advertising, can help sustain operations.

Another is innovation in business models. Newspapers may have diversified revenue streams by exploring new revenue sources such as e-commerce, branded merchandise, and sponsored content.

Lastly, community Engagement. There may be collaborative journalism. Partnering with local organizations, schools, and other media outlets to produce and share content. And public involvement. Encouraging community involvement in reporting and funding local journalism through crowdfunding platforms.

The economic implications of printed newspapers closing are multifaceted and significant. They highlight the need for innovative solutions to support journalism and ensure communities remain informed and engaged. 

But reality bites, the bottomline is always important. Without enough profit, these publications cannot continue their operations. This cannot be done without people buying these newspapers, but people nowadays prefer to read the news from digital sources. Sad, but true.

I am definitely going to miss reading the obituaries of Midland every Sunday though.

The post End of an Era appeared first on North Luzon Monitor.

Economic theory can provide interesting insights into dating and relationships, often using principles from microeconomics and game theory to analyze how individuals make decisions in romantic contexts.

In utility maximization, individuals seek to maximize their happiness or satisfaction (utility) when choosing partners. Of course, with the smorgasbord of choices of who can be one’s partner, the search for the perfect partner requires looking for the one who would give him/her the highest satisfaction.

If cost-benefits analysis is used, people weigh the costs and benefits of starting or continuing a relationship, such as emotional investment, time, and resources. During the dating period, this may seem like the trial period of a paid-for application or software, the individual would check if it will blossom into a deeper relationship, will he/she benefit or not from that relationship given the time, effort and love that one invests in that relationship.

Using the market dynamics, the dating market can be analyzed in terms of supply (available partners) and demand (individuals seeking partners). An equilibrium point where the number of people seeking relationships matches the number of available partners. Imbalances can lead to competition or scarcity. 

The Prisoner’s Dilemma can be applied to commitment issues, where mutual cooperation (commitment) yields the best outcome, but individual incentives may lead to betrayal (cheating). In the same way when People send signals to indicate their suitability as a partner, such as displaying wealth, kindness, or good health.

Using behavioral economics, in terms of loss aversion, people may fear the end of a relationship more than they value its continuation, affecting their decisions and behaviors. While for Prospect Theory, individuals assess potential partners by weighing perceived gains and losses rather than absolute outcomes.

Using the concept of opportunity cost, for Time and Resource Allocation, individuals must decide how much time and effort to invest in dating versus other activities (work, hobbies, etc.).

And given a set of alternatives, considering the opportunity cost of staying in a relationship versus seeking a potentially better partner.

These theories may be applied in many different ways. In Online Dating, algorithms on dating sites use economic principles to match individuals based on preferences and compatibility, similar to market matching theories. In Marriage Markets, demographic studies and economic models analyze trends in marriage, such as age at first marriage, divorce rates, and the economic benefits of marriage. In Relationship Dynamics, economic concepts help explain dynamics such as bargaining power within relationships, resource allocation, and the impact of external economic factors (e.g., job loss, economic downturns) on relationships.

By applying economic theory to dating and relationships, we can gain a deeper understanding of the complex decision-making processes involved and the factors that influence romantic interactions.

In hindsight, even if there are many economic theories that can explain the go abouts of dating and relationships, and in how one can succeed in this dog-eat-dog world of love, the fact still remains that love is something that cannot be explained rationally. Love is something that is felt and not thought about. For someone to fully feel the love, one has to let go and just trust the process.

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Apparently, 15 year olds in the Philippines scored 14 points on average in this assessment that tested how well they can use their imagination and creativity to generate and improve on ideas. This average is way below the OECD (Organization for Economic Cooperation and Development) which is 33. In contrast, the countries at the top include Singapore (average of 41), Korea (38), Canada (38), Australia (37) and New Zealand (36).

A few months earlier, the same organization presented their 2022 findings that the Philippines’ students are also among the weakest in math, reading and science. Less than 25% of the students reached the minimum proficiency in all these three subjects.

Another important development is the resignation of the Vice President Sarah Duterte as Secretary of the Department of Education. For several months now, many sectors have openly criticized the Vice President for having no expertise as an educator in leading the education department. Public school teachers’ organizations have welcomed the resignation, describing it even as relief. Many say that the country’s education system may have deteriorated during the leadership of Inday Sarah.

These are the big news on education lately, but why is education important to the country’s economic development?

The first is on human capital formation. Education equips individuals with skills and knowledge, increasing their productivity and potential to contribute to the economy. Also, Higher education and research institutions foster innovation, leading to technological advancements and new business opportunities.

Next is on labor market outcomes. Higher levels of education correlate with better employment prospects and higher earnings. As mentioned earlier, when individuals are more equipped with better skills and knowledge, they get more potential to be employed and be employed in better firms, resulting in higher earning capacity. On the other hand, the quality of the labor force also improves. An educated workforce is more adaptable and capable of handling complex tasks, enhancing overall economic efficiency.

And lastly, on poverty reduction. Education leads to higher wages and salaries, reducing poverty rates. Again, as mentioned, individuals who are more educated have higher potential to be employed, thus, increasing their earning capacity. With this earning capacity, they are able to pull themselves out of poverty. This may be the reason why many young people who come from poor families do the best they can to finish their education because they think that this is their way out of poverty. Many success stories, from rags to riches, were attributed to them having obtained education.

Also, educated individuals tend to have better health, reducing healthcare costs and improving productivity. Since they are more knowledgeable about health and well-being, they are able to make better decisions about their health. It is true that one of the prominent reasons why people are driven towards poverty is because of failed health. Many have lost their livelihood and property just to get them back to health. Some of these have never really recovered and are now poor. 

Now going back to the PISA ratings. We can now see the contrast between the countries at the bottom and the countries at the top. Singapore, Korea, Canada, New Zealand and Australia have higher ratings, and they are among the economically-developed countries. While the ones at the bottom belong to the less developed economies. It may be safe to make a correlation between the education system and the country’s economy.

I hope that these current events that happened in the past days which affected the education sector, would make us realize that the government should make education a priority. Provide better facilities and school buildings. Remunerate teachers better. Less politics (and corruption) in managing the education department, and just focus on providing the best education for our citizens for the well-being of all.

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For an Overseas Filipino Worker like myself, there are a lot of things that we miss in the Philippines. Inasmuch as we are already living in another country, we still love the Philippines, the good and the bad in it. 

Nowadays, it is just glaring how many Filipinos are very opinionated on a lot of issues on social media. The sad thing is that they are more focused on the non-issues like Vice Ganda-Axel-Christine issue, Ser Geybin issue, the wedding mishap in Negros Oriental, the volleyball player and SB19, etc. Their opinions have become bashing. When and how did we come to this?

On the other hand, issues like the West Philippine Sea vs. China, POGO, extra-judicial killings, corruption, declining value of the Peso, etc. are left unnoticed by many or some just ignore it. They keep mum on these pressing issues while so opinionated for the unimportant ones. I caught myself saying one time, “ang hirap mong mahalin Pilipinas.”

I was just exchanging messages with a friend who is also abroad, and we touched on this issue. Despite the many negative issues about the Philippines, we will still choose to go back to the Philippines. Our love for our country is stronger than all these bashing and opinions on the non-issues, and the uncaring attitude towards the important issues. It got me thinking, are there economic theories that could explain why we still love our country.

Economic theories can provide insightful perspectives on why individuals might love their country. While love for one’s country is often considered an emotional or psychological phenomenon, economics can shed light on some of the underlying incentives and structures that foster this sentiment. Here are a few economic theories that can help explain patriotism:

Public Goods Theory. Public goods are goods that are non-excludable and non-rivalrous, meaning that one person’s consumption of the good does not reduce its availability to others, and people cannot be excluded from using the good. National defense, clean air, and public infrastructure are examples of public goods. Love for one’s country can be seen as a form of appreciation for the public goods provided by the state. The better the provision and maintenance of these public goods, the more likely citizens are to feel a sense of loyalty and attachment to their country.

Social Capital Theory. Social capital refers to the networks, norms, and trust that facilitate coordination and cooperation within a society. High levels of social capital can lead to a stronger sense of community and national identity. Economic theories suggest that societies with high social capital tend to have more effective institutions and lower transaction costs, leading to higher economic performance. Love for one’s country can thus be viewed as an outcome of strong social capital, as individuals feel connected and committed to the collective well-being of their nation.

Rational Choice Theory. Rational choice theory posits that individuals make decisions based on the maximization of their personal utility. From this perspective, love for one’s country can be seen as a rational choice if it provides individuals with certain benefits, such as security, economic stability, and social welfare. When a country offers favorable conditions for personal and economic growth, individuals are more likely to develop a sense of attachment and loyalty to their nation.

Behavioral Economics. Behavioral economics integrates insights from psychology into economic theory to explain why individuals might make seemingly irrational decisions. Patriotism can be seen through the lens of behavioral economics as a result of cognitive biases and heuristics, such as in-group favoritism and social identity theory. People derive a sense of identity and self-esteem from their membership in a group, such as a nation. This emotional attachment can lead to a love for one’s country, even if it is not always economically rational.

In summary, while love for one’s country is a complex and multifaceted phenomenon, economic theories provide valuable insights into the various incentives and structures that contribute to this sentiment. Public goods provision, social capital, rational choices, behavioral factors, and other factors all play roles in fostering patriotism. 

The truth is, even with all the negatives about our country, I would always choose to go back to the Philippines, my home. Despite of, in spite of. Pipiliin ko pa rin ang Pilipinas! 

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Vice Ganda, among the other hosts, was bashed for making that statement and was demanded to issue a public apology. To add insult to injury, there were videos that came out comparing reactions of female searcher based on the physical features of the searchers, “Pag gwapo, kinikilig. Pag pangit, demanda agad” or something to that effect.

The male searchee later on clarified that the gesture was not for a kiss but for a bros shoulder bump. In the meantime, the female searcher published a TikTok video also clarifying that she did not feel uncomfortable with the gesture. After which, Vice Ganda issued a statement taking back his intention of issuing an apology. Netizens bashed not only Vice Ganda, but also the male searchee and even the female searchee. 

Sadly, this is not the first time that this kind of bashing happened. It happens everyday, both for famous and ordinary people alike. Bashing has become very normal in social media. It is ignored, tolerated to a certain sinful degree. It got me thinking, why is such destructive behavior so enticing for many netizens to do?

Bashing on social media can be understood through several economic theories.

Public Goods and Free Rider Problem. Social media platforms can be seen as public goods where everyone has access to content and the ability to contribute. However, the free rider problem arises when individuals benefit from the content without contributing positively. Instead, they may engage in negative behaviors like bashing, as the cost to them is minimal (e.g., anonymity, lack of immediate consequences), but the potential payoff in terms of social recognition or venting personal frustrations can be significant.

Game Theory and Nash Equilibrium. In the context of social media, game theory can explain how individuals interact strategically. If bashing becomes a common behavior, individuals might engage in it as a rational response to the prevailing environment. This creates a Nash Equilibrium where no one has an incentive to deviate from bashing because everyone else is doing it. The perceived benefit (e.g., likes, attention) outweighs the potential negative repercussions.

Signaling Theory. Bashing can be a form of signaling. Individuals might bash others to signal their own social status, intelligence, or allegiance to a particular group or ideology. This is especially prevalent in polarized environments where strong, negative opinions can bolster one’s standing within a group.

Behavioral Economics and Prospect Theory. Prospect theory suggests that people are more sensitive to potential losses than equivalent gains. On social media, individuals might engage in bashing to avoid a perceived loss of social status or to counteract a negative comment made against them. The anonymity and distance provided by social media amplify these behaviors, as the emotional response to negative content can be more immediate and visceral.

Network Effects and Herd Behavior. Social media platforms exhibit network effects where the value of the platform increases with the number of users. Herd behavior can lead to bashing as individuals follow the actions of others. If bashing becomes a trend, more users might join in, perpetuating the cycle due to the desire to conform or the fear of missing out (FOMO).

Economic Incentives of Platforms. Social media platforms often operate on advertising revenue, which is driven by user engagement. Controversial content, including bashing, tends to drive higher engagement (more comments, shares, likes), which can increase ad revenue. This creates an economic incentive for platforms to allow or even indirectly encourage such behavior.

Bashing on social media can be understood through a combination of economic incentives, psychological behaviors, and strategic interactions. The interplay of these factors creates an environment where bashing is not only common but also reinforced by the structures of social media platforms and human behavioral tendencies. 

The post To bash or not to bash appeared first on North Luzon Monitor.

On the other hand, when I saw a meme on Facebook saying that of all the people who grew up in the farm, she’s the only one who is so rich that she has all these luxury cars, a helicopter and what have you, while the rest are wallowing in poverty, it got me thinking, how can this happen that even if the Philippines is considered as an agricultural country, the sector remains poor?

Farmers in the Philippines face a range of challenges that contribute to their poverty. First, most farmers do not own the farmland they are tilling. So, they only get a measly part of the profits of the farm, while the landlord gets the most part of the profit.

Second, farmers often lack access to affordable credit, which is essential in buying farm inputs like seeds/seedlings, fertilizers, and equipment. High interest rates and stringent loan requirements make borrowing difficult that is why they are forced to borrow from usurers, be it in money amounts or farm inputs. Come harvest time, these usurers are first to get a share in the measly share they get from the profits of the farm.

Third, productivity is low. This may be due to outdated farming practices, lack of access to modern technology, and insufficient infrastructure like irrigation systems. It is just sad that from being the world’s largest exporter of rice with the best expertise in this field, to now being the world’s largest importer of rice.

Fourth, farmers often face difficulties in accessing markets to sell their produce. They are at the mercy of middle men who take advantage of them, buying their products at a very low price. I have observed this in the La Trinidad Trading Post. The poor farmers are just forced to good just so they don’t go home empty handed or dump their produce on a cliff just because they are just rotting away waiting for prices to go up. 

Fifth is natural and environmental factors. Climate change has drastically affected the agricultural sector. Not to mention the many natural disasters like typhoons that affect the country every year, affecting many farm lands and their crops. This makes farming very unpredictable and risky.

Sixth, lack of government support. While the government has many programs that aim at supporting the agricultural sector, there are a lot of issues that hinder the proper implementation of these programs. The main issue is corruption, like the fertilizer fund scandal. The funds trickling from the national government would be slashed by corrupt officials as it goes down to the main recipient, leaving the farmers receiving close to nothing.

Seventh, there is inadequate infrastructure for agriculture. Irrigation systems were already mentioned earlier, but aside from that farm-to-market road networks are not yet fully developed for most areas in the country. I remember reading a research done on farmers in some municipalities of Benguet who resort to planting cannabis because it is easier to propagate and “bring” to the market as opposed to agricultural crops like potatoes. Imagine carrying 20 or 50 kilos of potatoes to the main road because there are no roads and gaining a small amount of money as against cannabis with just one kilo gaining more. Please don’t get me wrong. I am not encouraging farmers to plant cannabis, but I just want to highlight the reality that farmers choose just because there are not enough roads for them to make their lives easier.

Eighth is the high costs of farm inputs like seeds/seedlings, fertilizers and pesticides. These would greatly diminish their profits. Imagine already having low yield, thus lower revenues then costs are high, profits would be much lower. In the end, the share of the farmer from the profits will be greatly affected.

And lastly, health and nutrition. It is ironic that the very people who are planting and producing food for the country are the ones who do not have food to eat. How can they sustain the hard work in the farms if they are not well nourished and even fed? This would reduce labor productivity. Furthermore, the prohibitive costs of healthcare services limit their access, so in cases that they get sick, they could not easily recover from it or even worse, cause their death.

It is ironic that someone in the likes of Mayor Alice Guo would claim to be a farm girl or more accurately, someone who grew in the farm, would be so filthy rich, while the real farmers, thos  who do the hard work in the farms, remain in deep poverty. I wonder how did she do it? 

The post Of Farm Girls and Farmers appeared first on North Luzon Monitor.

That Facebook friend works online for a foreign company. I understand where she is coming from with the exchange rate increasing. This is the same sentiment for most overseas Filipino workers around the world, because of course, the dollar that they or their family will be receiving will be converted to more Pesos. This would mean they could buy more from the money they will be receiving.

But is it all “hayahay so let’s all be merry” because of the increasing exchange rate of the Philippine Peso to the US Dollar? 

Actually, the one benefit that I can think of, if it is truly a benefit, is that the amount of remittance that families of OFWs and/or the compensation of online workers will be receiving will be much higher. This could increase their purchasing ability, but this may greatly be diminished by other factors reacting negatively to the increasing exchange rate.

Another benefit is on exports. The products that we export would appear to be cheaper for other countries to buy. They could see this as an incentive for them to buy more of our products. Service, in a stricter sense is also a good that is intangible. Therefore, foreign employers may want to employ more Filipino workers that will work remotely from their own homes. This would mean more employment for more Filipinos.

One more benefit is in the Tourism industry. A more affordable Peso would provide an incentive for Foreign tourists to come to the Philippines, making the country more attractive for them to visit. This would definitely boost the income in this industry.

On the other hand, it should be noted that the increase in the exchange rate is actually a decrease in the value of the Peso. This means that the Peso is becoming weaker compared to the US Dollar. So, why are economists alarmed with this?

The fall in the value of the Philippine Peso would result in a lot of negative issues in the more macroeconomic perspective, but would also affect the individual consumers or the general public.

First, the impact on imports. It is common knowledge that there are so many goods, from raw materials to final goods that are imported by the Philippines. When the value of the Peso falls, this would mean that we will be buying these goods at a higher price. 

Crude oil is one of the most imported products by our country. It is a raw material for many industries. If crude oil is bought at higher prices, the prices of petrol or gas will also increase. The cost of transporting goods from the warehouses to the retail market would also increase, thus prices of goods will also increase. This would directly impact the consumers.

Another is electricity. Since most of our electric power is generated by plants using coal. Most of the coal used is imported. Hence, if the value of the Peso falls, the price of buying coal will be higher, resulting in a higher cost of generating power, which would eventually lead to higher cost of electricity that will have to be paid by the consumers.

With these two imported products alone, it could drive the prices of goods and services in the economy to increase, resulting in inflation. When this happens, the purchasing power of consumers would greatly weaken, because their incomes do not increase as fast as the increase in the prices of goods and services in the economy. 

This could also be the same effect for families or households depending on remittances from abroad. While it is true that the amount they are receiving increased because of the weakening of the Peso, the fact still remains that their purchasing power will also fall because of the increased prices of goods and services that they would have to buy in the market.

There are other negative effects like business volatility and uncertainty. The increased cost of doing business may disincentivize or discourage existing and potential foreign investors in the country. The hard work that President Bongbong Marcos is exerting in going around the world inviting investors may only lead to nowhere.

Another negative effect is on paying foreign debts. It is again common knowledge that the Philippines is deep in debt with international banks and other foreign governments. Because of the weakening of the currency, this would mean that we would have to pay a higher amount in Pesos. As a result, this would decrease the amount that may be allocated to other government spending for infrastructure, public services (education and health), social services (4Ps), etc.

In as much as there are some sectors that are rejoicing in the increase in the exchange rate, the fact is that there are more negative effects of the weakening Philippine Peso against the US Dollar than the benefits that we get from it. I am sorry to burst your bubble or rain or your parade. It is what it is.

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