Update on the Philippines - liveability

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My annual pilgrimage to the Philippines is over. In conclusion, I found the experience a lot less pleasant this time than previous occasions. The problem remains the under-spending on capital works. Of course this comes down to business confidence in public administration, planning and corruption. The Philippines is poorly administered, and this is particularly a problem in rural areas, where technical expertise is pretty low. The paradox is that the English language skills that makes the Philippines a nice place to invest, actually conspires to make the Philippines a great place to recruit technical skills. This of course leaves the Philippines bereft of technical expertise....until of course - these technicians return home - if they ever do. They are surely a rich source of repatriated earnings. 

I was mainly working in the Philippines on this occasion. The biggest trials were attempting to work in the Calabarzon (Batangas) region after it was struck by a typhoon. It turns out that my host family's neighbour altered the plumbing so the water from their roof went onto ours. This meant at 2AM in the morning, we had a river of water coming through a window. We spent an hour bailing water into buckets before we were able to construct a tarpaulin to drain the water direct into a nearby sink. Clever thinking that saved the furniture. 

I was off however to Manila city the next day. The reason being that the next week left Lipa City without power and therefore running water. I knew that if we lacked power because of a storm, the entire region was the same. That meant crowded coffee shops, where I spend most of my working time. It meant that I'd be competing for power and tables at a coffee shop, and literally would not be able to think because of the noise from 100 youths. 

By going to the family apartment in the city, I was close to a mall, but at the same time able to escape to a quiet Coffee Bean or Starbucks, where I was able to peacefully able to work. My tranquillity was restored. That is not to say that Manila is better in this regard. It really depends on the region being hit and the nature of the natural threat. Manila is subject to inundation along the bay, thanks to big wave action and the poor drainage infrastructure. An added problem is the blocking of the drains with 'crap', i.e. paper waste. Filipinos live by they have a life expectancy of 2 years. They throw rubbish on the streets which gets washed into drains, which blocks drains, and inevitably floods them. The other threat is the lowlands which are vulnerable to rising rivers draining from the north, and from Lake Laguna. Lake Laguna is a large, shallow lake that drains through Manila City to Manila Bay. For this reason, it poses another threat of flooding for low-lying areas. 

On this trip to Manila, I experienced some of the worst traffic I have experienced in years. That is whilst escaping once again to Subic for a birthday party. Subic is moving slowly. This is a large economic zone, and I must say progress inside the economic zone has been slow. Why? Its hard to know. There is talk of the US returning, but I can't see that happening just because the Chinese are now threatening the Philippines sovereignty. The problem with this zone is simply that its degrading faster than they are rebuilding it. The charm of the area is lost on dilapidated buildings. It was never a terribly desirable place to live. Its selling point 20 years ago was the 'quality' US infrastructure. But today, its degraded, and so where is the value proposition? It is solely the opportunity to have infrastructure development controlled by an authority - but there is no reason to expect better from this authority, accountable to a 'public' authority, as opposed to local politicians elected by the local public. I don't see much difference. The good news however is that they are planning with a relatively 'empty' canvass. At the moment its a pretty open canvass. 

Returning to Manila, I had the opportunity to drop into San Fernando City, the capital of Pampanga. This is a rather hot place to live, but its also one of the more prosperous areas, and of course it is benefiting from the far better access of a commercial port, fully-utilised US infrastructure, and the Los Angeles precinct, which has preserved all the sordid porn life that was constructed under the US administration. Ayala has constructed a lovely mall in this area, as well as one in Subic zone. 

Having returned to Lipa, I had the opportunity to go to Tagaytay, on the edge of the Taal Volcano. This city, in Cavite is indeed growing relatively strongly. The appeal of Tagaytay is the elevation on the edge of the volcano. It raises the rainfall and cools the city. The problem is that access is poor; thanks largely to the ridges that hinder road development; along with the tedency to allow housing development along the road, so widening roads becomes impossible. Even when you arrive in Tagaytay, you realise that as the place develops, it will be a nightmare to move around, unless of course you live in the centre of it. There are some lovely restaurants in Tagaytay - my favorite being Antonios. Mind you - the presentation of the food was better than the taste on this occasion. The setting however is worth it. Another favorite venue is Vikings in MOA Zone, Manila. This place offers a smortgasboard of foods from many cultures. Best to go on weekdays for a discount. You might need to book. 

Overall, I was not terribly satisfied by my trip to the Philippines. The place is simply failing to improve at a rate that would give me comfort, whilst other places like Malayia, are starting to liberalise their treatment of foreigners. Of course each will get better, but am I prepared to wait for the Philippines to get its act together. I look forward instead to Malaysia improving its act. 

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Would I recommend living in the Philippines?

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There are a great many Westerners considering a relationship with a woman in the Philippines. There is a charming aspect to Filipinos I must concern. There are a great many who have a sense of entitlement, who are ambitiously intent on accessing you cash flow, but still others who are productive, hard working people of good intent. Whether you have an educated partner, or have met a factory-worker prepared to work 3 jobs, the challenge is finding a suitable and respecting partner in shark-infested waters.
The next challenge is deciding whether to live there. If you are intent on having a relationship with a Filipino, I firmly recommend living there for a period in order to grasp their context, to understand their culture, and if you have the time, to learn their language. Aside from understanding her culture, I find this a desirable opportunity to have a life experience abroad, as well as an opportunity to develop a business if opportunities are available to you.
The questions you should be asking are: Do you have the capital? Are you leaving a better life for a lesser one? Are you turning your back on more opportunities than you are creating? Are you more valuable after this experience or less? Do you have a contingency plan?
Most people that move to the Philippines seem intent on retirement. That strikes me as an empty existence, since I cannot imagine not working. The goal to me is to work with reasonable people under reasonable rules. The appeal of the Philippines is that unreasonable rules are more easily avoided, and there are fewer rules besides. That is both a risk and a benefit. You don’t get fines for speeding, but there is little protection if your neighbour sets up a piggery next door. There is a security risk in the sense that life means less in the Philippines, but there is a benefit in as much as you mean more to them alive rather than dead. But only to a point. Like in business you have to have a strategy to preserve your value. You weaken your prospects if you teach them what you know, unless you first teach them a new model for self-respect. They are a more collectivist country than yours, so you need to embrace a ‘growth’ strategy which allows them to respect you for the difference you have made to their life. At the same time you need to break down the myth of social cohesion in the Philippines.
Many Westerners like the idea of employing locals in some small business. There are several challenges that you need to consider. Educated Filipinos want Western opportunities, so they want to travel abroad, so by employing them you are likely to experience high staff turnover. Employing poor, unskilled Filipinos and you will need to engage in a higher level of education than you might have considered. You will first have to teach them food and personal hygiene, ethical conduct, long range, conceptual thinking so they don’t burn their bridges by cheating on you in the first instance. I don’t know many Westerners who are ready for that. Most Westerners are more intent on just preserving the password on their bank account. That works to some extent, and you can surely tolerate a little pilfering. The question is – Did you not want relationships based on respect? Were you not investing in progress and prosperity? At least this is my ‘growth’ strategy. Some of you might be satisfied to spend your life surrounded by pretty girls. I however could never close my mind to the lack of respect often lacking from such relationships. So on reflection managing Filipinos might be too hard. It need not be, but if you don’t have a capable, trusted Filipino partner, with a similarly supportive Filipino family, I think you are destined for failure.
You might also be interested in establishing a business such as internet cafes, resort, etc. A great many years ago many Westerners came to establish resorts, and few made money from them. The primary problem was the poor economy in a political unstable context. So where might you put your money? I would probably avoid the local stock market unless you approach it as a pure trader or refrain from investing in anything less than the top 20 stocks. The best opportunities for foreigners are of course providing services to foreigners abroad. You cannot compete with the locals in small businesses like food, internet services, unless you look at serving foreign markets. You will just not make enough money to match your higher expectancies. If you can manage Filipinos then you might excel by managing a range of businesses or franchises. You will however need to understand the local business culture. That takes years.
Some people might actually prefer to live in several countries as I tend to do. I spread my time between Japan, the Philippines, Australia and NZ. Your personal context will differ from mine. If you are French, then you might like Vietnam, Cambodia and the Philippines; if you have lived in Japan as I have, then Japan appeals a great deal, and being an Australian, NZ makes a lot of sense. Visa rules differ but for Westerners the Philippines is the best (18mths, with unlimited re-entry), followed by Japan, Australia and NZ (3mths).
I don’t think you have to rush to buy anywhere at the moment, though I think Australia and NZ present excellent opportunities to convert foreign currency, as these currencies are too cheap, particularly the AUD. Australian property is still too pricey, unless you are looking at rural areas. You can rent cheaply in the Philippines, usually on 12 month leases, but I would be inclined to use the market weakness as an excuse to negotiate a 6-month agreement, and I would be travelling around, trying to determine which area was the best location. Cebu, Manila, Vigan, Davao and Lipa City are probably good choices to at least sample.