Global Network for Prosperity
in the Philippines
(BE GNP Philippines)
Dennis T. Quinto ’58
Augusto Sason ’53
Felicisimo Ople Jr ’54
February 2, 2003
Have we grown up?
Do we care beyond
What are brothers for?
Can we rise to today’s
challenges of globalization?
Is this not the center of our BE universe?
Beautiful yet troublesome
picture – for 2004?
Very scenic and evocative of an old Philippines
This scene should belong to a historical restoration park today
We should aim for a vibrant, modern economy for the new millennium
There is a prosperous world beyond this tranquil scenery…
Use BE global network to elevate the lives of our people?
The Philippines now lags Asian
countries that used to be behind us:
South Korea, Taiwan, Thailand
GDP/Capita map: The Haves and the Have-Nots
It is not surprising that Betans have migrated
to the rich countries; can we exploit their return?
In Southeast Asia, we are at the tail end of the
GDP per capita curve -- behind Thailand,
Malaysia and the Asian Tigers.
Education is a competitive necessity for the
Philippines. We cannot afford to lose ground
where we used to excel in Asia.
In the global economy, “geography is history;”
goods and capital will flow where competitive
advantages can be realized.
Arrows indicate outsourcing trends from USA
The China example
A magnet for foreign investment
• US ran a $103B trade deficit with China in 2002
• China has low-cost labor, modern infrastructure and disciplined
workforce. Some 2001 – 2002 statistics:
• 400 of US Fortune 500 enterprises have invested in > 2,000
projects in China; US manufacturing jobs are lost permanently
• Textile/apparel imports grew from 7 to 21%; 30% of US mfg. jobs in
this sector lost
• China replaced Italy as world’s largest furniture export country;
exported $2.8B to US, or 30% of US total furniture imports
• China’s 1.3B population presents a huge consumer potential
• Retail sales of consumer goods will grow 10% in 2003
• Consumption focus: small items (~$1000) to larger items (~$12,000)
in 10 years
The rise of India
Its brainpower is reshaping Corporate America
• More than 1/3 of IT development for big US companies outsourced to
low cost countries, mostly to India: “Indians are colonizing cyberspace!”
•Bangalore, India has more IT engineers than Silicon Valley
•260,000 engineers pumped out by 1,100 Indian colleges per year
• A top IIT graduate earns ~$10K/yr, US counterpart ~ $80K/yr.
• Jobless rate among US software engineers doubled in 2000-2003.
• India remains a Third World economy (only 1% of workforce in IT)
• Per capita income is $460/yr, 1/3 of 1B population is illiterate
• Democratic, Western accounting standards, widespread English use
• If growth is managed, India will have world’s largest population of
workers and consumers by 2020
Does the Philippines have a
Rank - GDP Rank – Ranking in
USA #1 $10,000B #2 $35.9K #15
China #2 $6,000B #114 $4.7K #43
Philippines #25 $335B #124 $4.0K #62
India #4 $2,700B #148 $2.5K n.a.
Aside from population size, China is slightly better off in per capita
income and education, but we are ahead of India.
We can do it too!
The global network concept
Ventures Metallurgical products
Cutting tool technology
Power generation technologies
Brods + local
What are critical success factors?
Cooperation among expatriate and local Betans
Share enterprising spirit; think global, act local
Handle political issues; be attractive to foreign investors
Persistence to generate jobs, jobs, jobs big and small
It’s our contribution to nation building
Who shares the vision?