racoma.com.phJ. Angelo Racoma on technology, economics, writing, problogging, and getting things done

I’ve had it with petty bickerings in government and among politicians in this quaint little country of mine. People talk about big-time issues like constitutional change, corruption and the like, but people still seem to advance their own interests, while sacrificing the welfare of the rest of us in the process. This is why I choose to be apolitical. I’ve never voted in my entire life. Some might say I’m wasting the potentials of my vote. But what worth would that vote be if the supposed wisdom of the masses (which is the point of democracy) produces crappy leadership (and perhaps followership)?

And we know that crappy leadership causes instability in the economy, which causes us to remain poor, which causes people to have the tendency to make wrong decisions*, which causes us to choose crappy leaders.

Or at least the economist in me would say that.

*I have no bias against the poor, but I think to uplift one’s status in life, one has to think rich!

Employment, Underemployment, Unemployment

We are at 12% rate of unemployment and 20% of the workforce is underemployed.

We have a million people leaving the country each year to work overseas as nannies, caregivers and domestic helpers (most, though not all), when a lot of these people used to have knowledge-based work or at least white-collar work–as accountants, teachers, and the like–in the country. I have nothing against offering care to those who need it (hey, my kids need a nanny. Give me a buzz if you know someone!) or doing household work, which is also an honorable means to make a living. However, I just don’t feel it’s right to let one’s profession and skills atrophy just because the pay is better in nominal terms somewhere else.

They are considered modern-day heroes. They send in money from abroad in the form of remittances to their families here. They bolster our economy by contributing to the supply of foreign currency in circulation (which keeps the value of the Peso from falling, but that might be a concern for the export sector–but, alas, we digress).

But this is at the expense of family life. Imagine, mother and father leaving their kids under the care of relatives or other people just to make a decent living.

The other side of the coin is the trend of offshored businesseses coming into the country. Yes, it’s cool that foreign companies choose to outsource their transaction-based jobs here to us. There are the call centre agents, the medical transcriptionists, and the technical support people. There are also other white-collar undertakings such as accounting, software development and the like.

However, I still consider it to be unfair to the people involved, namely those who are employed in the BPO sector. My reason? It’s the companies that gain much of the benefit. Granted, they set up the infrastructure and they take on the overhead for operations. This emboldens them to take a big cut of the compensation pie. When American, British, or other European firms pay about $1,000 to $1,500 per month per call centre seat, the actual call centre agent only gets about PhP 15,000 to 20,000 (or $300 to 400) of that amount. Add to that the health issues brought about by having to work in shifts and having to change shifts every so often (which is a practice in the industry), then guess who’s on the losing end?

There must be another way.

My proposal

Here’s a simple proposal of mine.

I believe there is a good pool of talented people in the Philippines just waiting to be tapped. For instance, I write. And I know people who write really well (in fact, I’ve gone as far as hiring them to work with the company I’m involved with). I also know people who can develop great web apps and create Go Ogle worthy designs, whether on their own or under the guidance of foreign visionaries.

In fact this is what we do at Enthropia. Just one of the many things, actually. There are a handful of us here in the country (as well as in other Asian countries) working on our projects and we’re on a mobile/home-based working arrangement.

We basically render work for our North America-based mother entity (likewise a lean team) and they pay us for our services. Directly. And not having to pass through some big-ass company that will take a big chunk off our earnings.

We don’t have a glitzy office in Makati or Eastwood, nor do we plan to set one up anytime soon. We each pay for our own equipment and infrastructure. We feel this current arrangement of ours lets us be robust enough to accomplish what has to be done without all the administrative overhead.

Call it freelancing. Call it the informal sector. Call it the underground economy.

Other people probably aren’t aware of the possibility that one can work for foreign companies without passing through intermediaries (or middlemen) here, nor actually going abroad. And if they were, most of the time the hindrance would be the means by which money can be transmitted.

You can render a service and send whatever needs to be sent or done by email (or IM or SMS) but money’s a different thing altogether.

Yes, there are a handful of remittance services, but here’s the problem:

* They take a big cut
* They are not convenient

If only we had PayPal in the Philippines, then I think we would be able to open to the world better means to access to our pool of talent.

In the course of my freelance work as a writer/blogger I’ve had clients who paid via money transfer and it took days, and it was expensive. Xoom? It’s a good mid-way solution, but still not as convenient as having the real deal (PayPal). After all, they still get a cut, and the paying party still has to register for an account, where his PayPal details would then be keyed in.

There’s my simple thesis.

Having PayPal in the country would greatly benefit the following people:

* Web developers,
* Designers,
* Photographers,
* Writers,
* Pro-bloggers,

and virtually anyone else who can render services remotely while corresponding via the Internet. Their correspondents can pay simply by clicking a few buttons, and that’s it.

This would be a great opportunity for both sides, as it will open up access to the supply of good talent, and as well as open up access to those who are on the demand-side.

Who said perfect capital mobility should be impossible? In this day and age, where knowledge—or rather Knowledge with a capital K—is the foremost capital, mobility knows no geographic bounds!

However, PayPal won’t deal with us. It’s probably because we have a history of having potential for money laundering activities. Or maybe it’s because of poor security in banking or credit card transactions.

The point is that we have to lobby for inclusion as a PayPal enabled country.

If our Anti-Money Laundering Act is crappy, then we should lobby for a change for the better. If implementation is poor, then we should lobby for stricter enforcement.

Let’s work together!

I’ve had a talk with an esteemed gentleman from the country’s Liberal political family, and he’s very much interested with my idea. I know this is not an original idea of mine (the need for access to online financial transactions, namely PayPal), but probably other people haven’t brought it up to the level of actually trying to do something about it.

Here’s our chance. Let’s join forces, organize, and formalize so we can better forward our cause. I’m probably not the best person to mobilize people but I sure do have a lot of ideas.

Anyone wanna be involved in this?

Updates

Sites that link to this post, as of 2006-07-24 09:41H (darn trackbacks/pingbacks aren’t working).

* Crimson Crux (Phillip Kimpo)
* Pinoytechblog (c/o Arnold Gamboa)
* Random Takes (Migs Paraz)
* The Mike Abundo Effect (okay, Mike, is there really such a thing as a Mike Abundo Effect?)
* Snow World
* TechnoPinoy (Mon Abasolo)
* Captain’s Log (Jepoy Bengero)
* Alleba Blog (Andrew dela Serna)
* Touched by an Angel (Noemi Lardizabal-Dado)
* Bubbleheadnut’s Livejournal
* Bitstop Network Services blog
* Wonderful World of Jonas
* Yugatech: PayPal in the Philippines via Xoom (Abe Olandres)
* Babelmachine: Bloggers lobby for PayPal in the Philippines (Joey Alarilla)
* Planet Pinoy Biz & Jozzua. com (both by Jozzua)
* TechnoPinoy, again (Mon would rather not have PayPal )

In mainstream media (papers, blogs, etc.)

* CNet Asia: Bloggers lobby for PayPal in the Philippines (by Joey Alarilla)

Posted elsewhere:

* DIGG this story!
* ForeverGeek

*Update, 2006-07-20 1500H*: We’re setting up an advocacy site, www.paypal4ph.com. Right now, the site redirects to this blog post until we come up with something better. Credits to Jason for setting up the domain and hosting. Ia will be doing the logo, and Phillip would be helping me out with the writeups (the blurbs, taglines, etc.). I hope to be able to come up with a whitepaper of sorts, as Migs suggested in a comment below.

Some words of advice

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