Tuesday, August 15, 2023

Filipinos and Facebook

 Introduction:

Facebook is a social networking website where users may make profiles, add friends, locate long-lost old friends, exchange information and media, such as photographs, videos, status updates, and links. Facebook likes, comments, and shared postings are Facebook standards that have become routine for many of us.

Facebook bridges great distances, letting individuals keep in contact with loved ones no matter where they may be physically located. Its intuitive design and wealth of privacy options give users complete command over their online identities and the information they choose to make public.

Facebook is undeniably one of the most well-known and influential social networks today. Created by Mark Zuckerberg and his undergraduate friends in 2004, Facebook's global MAUs (monthly active users) reached 2.989 billion in April 2023, with 68 percent of that number logging in on a daily basis.  During the same time frame, there were 2.037 billion daily active users (DAUs) on Facebook. As of November 2022, 36.7% of the world’s 8 billion population, or 2.93 billion users use Facebook monthly.

Facebook dominates the social media landscape in the Philippines. As of July 2023, 96.2% of all Filipinos aged 16–64 with internet access used Facebook on a monthly basis. Far behind are YouTube (57%), TikTok (17%), Instagram (14%), and Twitter (8%).

Facebook's influence can be seen across all levels of Filipino society, from the political to the economic to the cultural to the interpersonal.  We briefly discuss the impact of Facebook on Filipinos' everyday lives, both positively and negatively.

1. Facebook as a Vehicle for Social Connectivity and Communication

Facebook has significantly impacted the way Filipinos interact and share information, allowing them to stay in constant contact with loved ones and friends, regardless of distance. This platform enables a constant flow of information about users' lives, fostering a sense of home and bringing people together. Facebook has revolutionized interpersonal communication, breaking down barriers and fostering intimate connections within Filipino communities. It also has revolutionized news dissemination, providing instant access to news items and events, enabling rapid communication and access to current events.

2. Facebook as a Platform for Political Advocacy and Mobilization

Facebook has become a powerful tool for political advocacy and mobilization in the Philippines, enabling citizens to voice their concerns, debate important issues, and hold elected officials accountable. It has also facilitated community mobilization, gathering support, and information dissemination during major events like elections and social movements. Facebook has significantly impacted Philippine politics, enabling politicians to reach a large audience and make personal connections with voters. It has also fueled social movements and mass action, such as the 2013 "Million People March" demonstration against corruption. Through Facebook, Filipinos now have a platform to effect positive change in their country and neighborhood 

3. Facebook terms have found their way into the Filipino Everyday Language

Here are some Facebook terms that have found common usage in the Philippines

a) Add: This means adding a friend on Facebook.

b) Block: This means to prevent someone from seeing your Facebook profile or posts or sending messages to you.

c) Comment: This means to leave a comment on someone's Facebook post or photo.

d) FB or Facebook - These terms refer to the platform itself. Filipinos often use "FB" as a shorthand way to refer to Facebook.

e) Follow: Originally associated with subscribing to a person's updates on Facebook, "follow" has become a common term used when someone wants to stay updated about another person's activities or content, regardless of the platform.

f) Like: This means to express your approval agreement or appreciation of someone's Facebook post or photo.

g) Message: This means to send a private message to someone on Facebook.

h) Post: This means to share a message, photo, or video on Facebook.

i) Profile: This is the page that contains your personal information on Facebook, such as your name, photo, and contact details.

j) Share - This term is used both on Facebook and in everyday conversation. On Facebook, it refers to the action of reposting or spreading someone else's post on your own timeline. In general conversation, Filipinos use "share" to mean telling or passing information to others.

k) Status" - In the context of Facebook, a status refers to a user's post that expresses their current thoughts, feelings, or activities. Filipinos commonly use this term to inquire about someone's well-being or what they are currently up to.

l) Tag:  This term is used when someone mentions or identifies another person in a Facebook post or comment by using the @ symbol followed by the individual's name. It has extended to offline conversations, where Filipinos use "tag" to refer to mentioning or calling someone's attention.

m) Timeline - In Facebook, the timeline refers to a user's profile page where their posts and activities are displayed chronologically. Filipinos have adopted this term to refer to someone's personal history or life events.

n) Unfriend: This means to remove someone from your list of friends on Facebook.

In addition to these common terms, there are also some Filipino-specific terms that are used on Facebook. These include:

a) Charot: This is a slang term that means "joking" or "just kidding."

b) Epal: This is a slang term that means "attention-seeking" or "showing off."

c) Gandang Gabi, Vice!: This is the title of a popular late-night talk show in the Philippines. It is often used as a greeting on Facebook.

d) Inuman: This means "to drink" or "to have a drink." It is often used in the context of social gatherings.

e) Kaway-kaway!: This is a slang term that means "wave!" or "hello!" It is often used in online greetings.

f) Nangangamusta?: This is a polite way of asking "How are you?" in Filipino.

g) Pahingi ng like!: This means "Give me a like!" It is often used in the context of asking for likes on a Facebook post.

h) Sana all!: This is a slang term that means "I wish I could all have that!" It is often used in the context of expressing envy or admiration.

r) Wag kang feelingero!: This means "Don't be conceited!" It is often used in the context of telling someone to be humble.

These are just a few of the Facebook terms that are commonly used in the Philippines. As the platform continues to grow in popularity, new terms are sure to emerge.

3. Facebook Opens Entrepreneurial Opportunities  

Facebook has significantly impacted the Philippine economy by providing new opportunities for company development and entrepreneurship. By opening virtual shops, Filipino entrepreneurs can promote their products to a wider audience, benefiting startups and budding entrepreneurs. Facebook Marketplace has enabled P2P trade, boosting local economies. The platform has also impacted the business climate, with startups and small companies using it as a low-cost marketing tool and e-commerce expansion. Facebook also benefits SMEs by increasing sales, establishing stronger relationships, and spreading the word about their products.

5. Facebook Brings Information Access and Awareness

Filipinos increasingly rely on Facebook for news and information, but the widespread spread of false information poses a challenge. Facts are distorted, societal differences worsen, and public confidence is eroded. Media literacy programs and ethical online behavior are needed to address this issue. The platform's algorithmic design and widespread use of false information make it difficult to distinguish between news and information, potentially contributing to false claims.

 6. Facebook’s Negative Effects on Mental Health and Well-being

Facebook's positive effects on communication are weighed against potential negative impacts on users' psychological well-being. Excessive use of the site can lead to anxiety, despair, and isolation, while constant self-comparing to idealized representations can cause inadequacy and false expectations. Additionally, the addictive nature of social media can cause users to withdraw from others and have fewer in-person conversations.

7. Fakebook’s Privacy and Data Security Issues

Privacy and data security concerns have arisen due to Facebook's use of user data for targeted advertising and targeted advertising. As with false information, critics argue that Facebook's algorithms and content curation procedures may also influence users' attitudes and actions negatively, potentially causing misuse of their personal information. Additionally, Facebook's use of face recognition technologies raises privacy concerns, as it automatically proposes tags for individuals in photographs without their consent. Facebook's data breaches have raised concerns about the safety of user data and potential exploitation by unauthorized parties.

To be fair to Facebook, it has strengthened its privacy policies, enhanced its content filtering, and partnered with fact-checking organizations to combat misinformation in response to its critics.

8. Facebook Suffers From Digital Divide and Unequal Access to Information

Facebook has significantly impacted Filipino society, but there is still a digital gap due to differences in internet access and digital knowledge. This divide is a significant issue globally, including in the Philippines. Facebook has been praised for bridging the digital divide and connecting people with shared interests, but it has also been criticized for increasing inequalities in access to information. Many Filipinos rely solely on Facebook for news, which may lead to the homogenization of opinions and falsehoods. 

Access to fast and reliable internet is difficult in rural regions due to infrastructure, cost, and lack of digital awareness. Facebook's Free Basics program faced opposition in the Philippines, as it violated net neutrality principles by favoring certain websites and services. To address these issues, public and private groups are working to enhance internet access, teach residents digital technology, and publicize informational resources beyond Facebook.

9. Facebook’s Impact On Social And Individual Behavior

The way Filipinos see themselves, one another and the rest of the world has been profoundly influenced by Facebook. It has allowed people to share their stories, connect with others, and feel more at home. It has also given rise to issues such as social comparison, cyberbullying, and addiction, highlighting the need of using it with caution and introspection.

Facebook's sponsored partnerships and endorsements have also swayed public opinion and business practices. It has helped individuals in the Philippines and abroad stay in touch with friends and family by increasing the ease with which they may do so. However, technology has also helped spread incorrect information and fake news, which might have negative consequences for society as a whole.

10. Facebook Has Helped The Filipino Business Community

Facebook has significantly benefited Philippine companies by expanding their online presence, enabling local businesses to establish an online identity, promote their products, and interact with consumers. This has leveled the playing field between SMEs and larger competitors. Facebook's granular targeting capabilities have helped companies develop profitable advertising strategies with less outlay, boosting leads, brand recognition, and revenue.

In real-time, companies can interact with customers through comments, direct messages, and live chat. Facebook's built-in e-commerce features, Shops, Marketplace, and tagging items in posts help businesses increase their customer base and online sales. Facebook Groups provide networking and community-building resources for companies, helping them stay updated on industry developments and find potential partners or suppliers.

10. Facebook Has Helped Filipinos Express Themselves

Facebook is a platform where Filipinos can be themselves and share their lives, contributing to a more inclusive culture. The platform allows users to build personal profiles, share their interests, and build meaningful relationships. Facebook's news feed function allows users to share posts, images, and videos, allowing them to reach a large audience. Multimedia-sharing features allow Filipinos to share photographs, videos, and live broadcasts, allowing them to share their experiences and create meaningful connections.

Filipinos can build online communities dedicated to various causes and pastimes using group and page functionalities. This has given Filipinos a voice, helped them learn about important topics, and organized them to take action on subjects they care about. Facebook's global user base and ease of communication have brought about positive social change and amplified the opinions of previously silenced groups.

Conclusion

In conclusion, Facebook has completely transformed Filipinos' ability to communicate with one another and has enabled them to form communities online. Its impact on how Filipinos interact with each other is historically unprecedented and is still developing. The sheer size of its user base and the breadth of its services have had and will continue to have, a profound impact on the social dynamics of the Philippines and the opportunities they have for enabling Filipinos to interact, communicate, and participate in the global online world.












Wednesday, August 9, 2023

The Benefits of a Big Philippine Middle Class

Introduction

The Philippine middle class refers to a socioeconomic group that falls between the lower-income group and the upper-income group. They typically have a moderate level of income, education, and consumption patterns. These allow them to pay for a relatively comfortable lifestyle. As with other middle classes in the world, the Philippine middle class is composed of professionals, skilled workers, and individuals in managerial or administrative positions.

What Constitutes a “Big” Middle Class? 

Depending on the context and the country, the definition of a "big" middle class might vary. Affluence, financial stability, and financial independence are unmistakable hallmarks of the middle class. However, owing to differences in economic growth, cost of living, and cultural standards, the precise income or wealth criteria that constitute the middle class might vary considerably across nations.

A person or family in a developing country may enter the middle class with a relatively modest increase in income or wealth. On the other side, bigger incomes or wealth may be needed to maintain the same level of life in countries where the cost of living is higher, like in developed countries.

Also, being middle class isn't only about money; it also includes things like education, employment, social standing, and conveniences. Examples of people who are often regarded as part of the middle class include those who have secure employment, access to high-quality healthcare and education, and the ability to advance economically.

The size of the middle class is relative and depends on the specific circumstances. It depends on the unique economic and social circumstances of a country or area, as well as on elements such as income, wealth, lifestyle, and society.

Is the Philippine Middle Class Considered Big by World Standards?

Compared to other countries, the Philippines has a sizable middle class. When compared to other Southeast Asian nations, the size of the Philippine middle class becomes even more striking. In Indonesia, for instance, the middle class accounts for about 29% of the population, while in Vietnam it accounts for just 15%.

Increasing economic prosperity, higher wages, overseas employment, and an expanding pool of educated employees have all contributed to the emergence of a sizable middle class in the Philippines. The economy has risen at a pace of 6% annually over the last decade, resulting in the creation of millions of new employees. More on this later. 

Since rising salaries have enabled more and more Filipinos to buy food, shelter, and other essentials,  the size of the Philippine middle class has expanded. The country also boasts a high number of educated citizens; the literacy rate in the Philippines is 92%.

Estimating the Size of Philippine Middle Class

Estimating the exact size and percentage of the Philippine middle class can be challenging due to varying methodologies and data sources. 

The Bangko Sentral's Consumer Expectations Survey (CES) categorizes monthly income into three groups: low income (below P10,000), middle income (between P10,000 and P29,999), and high income (at least P30,000). According to the first quarter of the 2022 CES report, 26 percent of households fall under the low-income category, 40 percent under middle-income, and 34 percent under high-income.

In an article written by Alyssa Divina and titled “Middle Class in the Philippines: Defining and Income Ranges”, on the website Digido, Ms. Divina said:

1. The average yearly income of a family in the Philippines as of 2021: PHP 307,190 while the average yearly expenditure was PHP 228,800.

2. In the Philippines, the middle class is defined as individuals who earn a monthly income between PHP18,000 and PHP109,200. 

3. This group makes up almost 45% of the population. 

4. Ideally, middle-class families in the Philippines should have 20% of their income remaining after paying expenses.

The abovementioned article also defined the economic significance of the Philippine middle class namely: nearly half of all Filipinos are considered middle-income earners. These are the people whose taxes finance the government. They are the main consumers of goods and services, and they contribute significantly to tax revenue. The growth of the middle class is seen as a sign of economic progress, and the Philippine economy depends heavily on their work.

John Mangun wrote, in an article titled “The Middle Class”, published in the online edition of BusinessMirror, last February 21, 2023, that: 

“The latest Family Income and Expenditure Survey by the Philippine Statistics Authority (PSA) shows that the majority (58.4 percent) of Filipinos belong to the low-income class, while the middle class comprises around 40 percent of the population. Only 1.4 percent of Filipinos are in the high-income class."

According to an article by Raymond E. Gaspar, Mj Raymundo, Jose, and Ramon G. Albert, titled “Who are the Middle Class?” which was published by Rappler, the majority of the middle class lives on the island of Luzon, with the largest concentrations found in Metro Manila (where 25 % of them live) and the provinces of CALABARZON and Central Luzon.

World Bank

As with our own Bangko Sentral, the World Bank (WB) tends to be a bit conservative about the size of the Philippine middle class. It estimates that 44 million Filipinos fall into the middle class. Even at this size, the Philippine middle class is the 10th biggest in the world. This amounts to almost 40% of the total population.

Here are some of the factors that have contributed to the growth of the Philippine middle class:

    1. Economic growth: The Philippine economy has grown steadily in recent years, creating jobs and opportunities for the middle class.

    2. Increased education: More Filipinos are now graduating from college, This equips them with the information and abilities needed to secure fulfilling employment.

    3. Overseas Filipino workers (OFWs): OFWs send billions of dollars in remittances to their families in the Philippines, which helps to boost the economy and the incomes of the middle class.

    4. Government programs: The government has implemented a number of programs to help the poor and the middle class, such as the Pantawid Pamilyang Pilipino Program (4Ps) and the Build, Build, Build program.

Benefits of a Big Middle Class

The Philippine middle class is expected to continue growing in the coming years and is a source of stability and hope for the country. Here are the benefits a large middle class brings that are true universally:

1. Economic growth: The middle class is often considered the engine of economic growth. They have purchasing power and demand goods and services, which drives consumer spending and stimulates economic activity. Their consumption patterns contribute to the expansion of industries, job creation, and overall economic development.

2. Increased tax revenue: A substantial middle-class population typically generates higher tax revenues for the government. As the middle class earns more income, they contribute more tax dollars through income taxes, sales taxes, property taxes, and other forms of taxation. This increased revenue can be used to fund public services and infrastructure development.

3. Social stability: A large middle class can contribute to social and political stability. Middle-class individuals generally have a stake in society, and they are more likely to support democratic institutions, the rule of law, and social cohesion. They often have aspirations for a better quality of life and are motivated to work towards societal progress.

4. Reduced income inequality: A significant middle class can help to reduce income inequality within a country. They act as a buffer between the rich and the poor and play a crucial role in reducing extreme disparities. When the middle class is sizable and thriving, it helps to bridge the wealth gap by providing upward mobility opportunities for those in lower-income brackets.

5. Human capital development: The middle class tends to invest in education and skills development for themselves and their children. This focus on human capital development can lead to a more skilled and productive workforce, which is essential for technological innovation, competitiveness, and economic diversification.

6. Social mobility: A robust middle class often provides greater social mobility opportunities. It offers individuals from lower-income backgrounds a chance to improve their economic status through education, hard work, and upward mobility. This upward mobility can help create a more inclusive society and reduce intergenerational poverty.

7. Consumer demand and market stability: The middle class represents a significant consumer base with stable purchasing power. Their demand for goods and services provides stability to the market, encourages business growth, and attracts investment. This stability can help shield the economy from extreme fluctuations and recessions. The middle class is more likely to spend money on education, which can lead to a more skilled workforce.

8. Entrepreneurship and Innovation: A strong middle class often consists of individuals with the education, skills, and resources necessary for entrepreneurship. They can start small businesses, promote innovation, and drive competition, leading to economic diversification and overall development.

9. Social Cohesion: A prosperous middle class tends to have better access to education, healthcare, and social services. This can lead to improved social mobility and reduced income inequality, promoting social cohesion and reducing social tensions. A strong middle class can also act as a social buffer, reducing the potential for social unrest or instability.

10. Political Stability: A significant middle class can contribute to political stability by demanding transparency, accountability, and good governance from the government. Their social and economic status allows them to play a crucial role in shaping public policies and participating in democratic processes.

12. Increased Tax Revenue: The middle class also pays a significant amount of tax revenue. This tax revenue can be used to fund government programs, such as education, healthcare, and infrastructure. These programs benefit everyone in society, not just the middle class.

13. Innovation: A large middle class provides a pool of educated and skilled workers. These workers are essential for innovation and economic growth. They are also more likely to start their own businesses, which creates new jobs and opportunities.

14. Reduced Poverty: A strong middle class acts as a buffer against poverty. As more people move into the middle class, income inequality tends to decrease, and poverty rates decline. The middle class typically enjoys better access to education, healthcare, and other essential services, improving overall living standards and reducing the income gap between the wealthy and the poor.

It's important to note that a strong middle class alone is not sufficient for sustainable development and societal well-being. Other factors such as good governance, access to quality healthcare and education, social safety nets, and equal opportunities are also crucial for maximizing the benefits of a large middle-class population.

Conclusion

To conclude, a big middle class is beneficial to the Philippines in a number of ways. It is a sign of economic progress, it provides tax revenue, it creates political stability, it promotes social mobility, it drives consumer demand, and it fosters innovation. A country with a large middle class is a country that is on the path to prosperity.

A big middle class is a key ingredient for a prosperous and happy Philippines. The government should focus on policies that will help to grow and sustain the middle class, such as investing in education, creating jobs, and providing affordable healthcare.

A vibrant Philippine middle class has the potential to make the Philippines a more desirable location to live and work by contributing to the achievement of a globally dynamic Philippine cultural and cosmopolitan milieu. The government should foster economic growth and development and provide avenues for Filipinos to improve their economic, educational, and cultural standing, thus further expanding the Philippine middle class. 

 


Thursday, August 3, 2023

Will The Philippines' Becoming a Trillion Dollar Economy End the Need for OFWs?

Whereas the Philippine economy has been growing steadily in recent years, reaching a trillion-dollar GDP requires even faster and more arduous effort. It would also be contingent upon the state of the international economy, national policies, and the coming together of numerous reforms and projects.

 

The Philippines is a leading example of an emerging market in the Asia-Pacific region due to its fast-expanding economy. As a developing economy, the country is working to increase its level of industrialization and economic growth.

 

The Philippines' GDP was $404.28 billion in 2022, up 7.6 percent over the previous year, according to the World Bank (WB). According to projections made by the International Monetary Fund (IMF), the nominal GDP of the Philippines would reach $440.9 billion in 2023, placing it at number 15 among Asian economies and number 36 globally.

 

The national growth rate of 7.6% in 2022 was the highest in more than a decade. Strong local demand, bolstered by government investment and remittances from Overseas Filipino Workers (OFWs), was the primary factor in this expansion.

 

The Philippines might one day become a trillion-dollar economy, but it's hard to say when exactly that will happen. S&P Global Market Intelligence projects that the Philippines' GDP will increase from $400 billion in 2022 to $800 billion in 2030, continuing its strong rise. Increasing wages in large cities will help spur significant private consumer spending.

 

By 2033, the Philippines will have joined the ranks of China, Japan, India, South Korea, Australia, Taiwan, and Indonesia as one of the few trillion-dollar economies in the area, according to S&P Global Market Intelligence.

 

The potential drivers of a trillion-dollar Philippine economy include:

 

1. Demographic Advantage. The Philippines' youthful and expanding population is a potential boon to the country's economy. Growth in innovation, productivity, and consumer spending may be stimulated by a big and youthful labor population.

 

2. Strategic Location. The Philippines' strategic location makes it an attractive business and investment destination in Asia. Foreign direct investment and trade may be boosted by the country's location near key economic hubs including China, Japan, South Korea, and Vietnam.

 

3. Structural Reforms. Structural reforms that improve the business environment, enhance governance and attract investments can stimulate economic growth. This entails streamlining bureaucracy, reducing corruption, promoting transparency, and improving the ease of doing business.


 4. Infrastructure Development. Investing in infrastructure initiatives improves interconnectivity, lessens logistical expenses, and increases overall efficiency. Investing in and improving transportation systems, electricity grids, communication networks, and other essential infrastructure may stimulate economic growth.

 

5. Investment in Human Capital. The competitiveness of the workforce, productivity, innovation, and the attraction of high-value businesses may all be boosted by investing in human capital, which includes education and the development of skills. Economic expansion may be achieved by putting effort into fields like ICT, services, and knowledge-based enterprises.

 

6. Diversification of Industries. Economic growth, increased productivity, and a larger GDP may also result from diversifying the economy beyond the traditional sectors of agriculture and industry and into the higher value-added businesses of technology, finance, and services.

 

7. Political Stability and Good Governance. Maintaining political stability, building stable and lasting institutions, and guaranteeing good governance are essential to enticing investors, inspiring trust amongst company owners, and keeping economic development robust.

 

It's important to remember that economic growth is not just reaching a predetermined goal, like a GDP growth rate. Equally significant, economic growth involves increasing people's standard of living, decreasing poverty, solving social problems, and protecting the environment. These are crucial factors to think about.


However, there are dangers lurking ahead. The Philippines cannot reach a trillion-dollar economy without resolving pestering challenges like income inequality, corruption, and non-inclusive economic growth. The Philippine economy will also be buffeted by global variables involving global economic trends and geopolitical dynamics.

 

A trillion-dollar economy will improve the Philippines' international standing and influence. Our country will be accorded greater recognition and respect on the global stage, possibly resulting in enhanced diplomatic relations, increased foreign aid, and more advantageous trade partnerships. 


A trillion-dollar economy is likely to reduce unemployment in the Philippines. According to Okun's Law (After Arthur M. Okun, a Yale economist who served on President Kennedy's Council of Economic Advisers), as an economy grows, unemployment tends to fall.  This is because a larger economy means more businesses and jobs. Additionally, a more developed economy is generally more efficient, which can lead to higher productivity and more job opportunities.


Because of reduced unemployment, a trillion-dollar economy might just end the urge for Filipinos to become OFWs, as our hard-working countrymen will finally earn a decent living, and, at the same time, return to the comforts of home and family at the end of the day.