A developing major crisis

The plight of overseas Filipino workers in the Arab and Middle East countries should be attended to and immediately!

A new order is coming into being in these countries–and depending on specific national conditions–Filipino OFWs will have to contend with its implications. The Aquino government should not underestimate these implications, not only to the OFWs themselves but also to our oil supplies, to inflation, local and global job availability, government tax income, Moro situation, great-power rivalry, international terrorism, and our democratic people power legacy.

The loss of possibly hundreds of thousands of jobs in these countries can lead–in the medium term–to a dip in the Philippine GNP growth. In a situation of global recession, this can lead to a “squeeze” effect when foreign jobs gets scarcer even as new graduates enter the labor market and the local job market cannot sufficiently expand to accommodate the slack.

Oil supplies may also suffer even as the oil prices shoot through the ceiling. This is also a “squeeze” situation where scarcer but pricier oil and gas products drive up inflation even as foreign reserves scramble to cover higher-priced oil importation.

The government basically and indirectly taxes the OFWs through their remittance spending (consumer goods in malls, land and housing acquisitions, tourism, and other family-based spending). This will slow down and marginal business may collapse. Government income may thus take a hit.

As instability engulf the Arab world and the Middle East, big powers will increasingly compete for scarce resources–not only in these countries but throughout the world including southeast Asia. We are already well within the ambit of this hidden “resource war,” as a possible major resource for oil, gas, and other minerals.

Politically, we are also vulnerable to the events in the Arab world and in the Middle East because of our own Moro Muslims–who have living ties to the Arabic world. The Al Qaeda network extends into the region and into the Philippines. And to a certain extent, the events there mirror our own 1986 people power.

It is now a question of when–and not if–a major global crisis hits us from the events in the Arab world and the Middle East. The crisis opens both the door to our own crises and our own opportunities. Interesting but dangerous times. Also, dangerous but interesting times.

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