Winning brains back to the Philippines

September 26, 2008 1:34 AM | 73 Comments | 1 TrackBack

By Federico M. Macaranas AFTER posting its highest growth rate in more than three decades in 2007, the Philippine economy is poised to slow down in 2008 on account of external factors whose domestic impact its managers cannot fully tame. This should be less of a problem for those who are more long-term oriented and less swayed by medium-term political goals. After all, given the past economic reforms in banking and finance (capital adequacy ratios of commercial banks and the expanded value-added tax) among others, it is these long-term factors that really matter for sustained growth. Yet short-term gains from the much-vaunted outsourcing bonanza that could result from the US slowdown, as corporations cut down costs, should be taken with much caution. Even the call for greater financial integration in the region espoused by the ADB should be tempered with a focus on the production of real goods and services -- lest the economy be trapped forever in its low-level growth. More fundamental than these financial factors is the need for the Philippines to align its economic growth with the path taken by dynamic Asia-Pacific countries and the developed world -- a path that is based on innovation and technology. But more productive raw materials or chemicals, machinery or equipment, processing or marketing ideas do not grow out of trees. They come from people, educated men and women -- be they peasants tutored in appropriate technologies rooted in indigenous practices or PhD's able to translate scholarly learning into commercial ventures. Short or even bereft of a science and technology culture, the Philippines must now seriously harness its human resources spread around the world to boost its productive capacity in real goods and services. Services in this case includes an appropriately risk-managed banking and finance system that should respond to the needs of smaller enterprises to generate more jobs relative to capital, and bring about an increase in employment numbers. This is the time to win back more brains to return. Successive Philippine administrations attempted to to do this after the big brain drain in the 1970s and later in the 1990s. But this time around, it is not only the government that must act; the private sector must do its share in permanently harnessing Filipino overseas talents – not through permanent return but through permanent connections, not through remittances alone but transfer of technology and market information. These are the very areas that the private sector can concentrate its efforts on -- but there must be appropriate government policies, both national and local, to attract these overseas resources to come home to roost. Here is where a new public private partnership (PPP) must come in. The Philippines' Balik Scientist (returnee scientist) program should be redesigned to enable the private sector to be its immediate and direct beneficiary in the current priority areas namely: alternative energy, biotechnology, information and communication technology, pharmaceutical, and environment, and even areas outside these government-identified R&D interests. Many agriculturists and fisheries experts, industry specialists, etc. are needed by the country, as special scholarships set up for these fields attest. These areas include biofuels, coco-chemicals, business process outsourcing, herbal medicine, marine remediation and afforestation. The Philippine private sector should be enticed to identify talented Filipinos abroad so that they can partner with them to develop new process technologies or new products. For example, Filipino food scientists abroad can be tapped to help raise farm productivity. Rather than simply market the Balik Scientist Program through the typical academic routes, wouldn’t it be better to try matching available private sector R&D funds with overseas Filipinos who are expert in their fields? This means a call for pro-active public-private partnerships, starting with the development of an inventory of Filipino human resources designed like a talent bank for specific industries. This proposed overseas Filipino talent bank should be a roster that is frequently updated by a public-private group. It can serve as a potential skilled supply base of R&D partners that can be tapped by young entrepreneurs, established firms, cooperatives, etc., in the Philippines. It can be a national roster that can be developed from professional organizations, alumni chapters, hometown associations, etc. based abroad. This talent bank should contain information on the special skills of these expatriate Filipinos, whose homing instincts could be fanned by attractive professional and commercial prospects in their home country -- similar to how Taiwan, Korea, India, China and other countries succeeded in attracting their own nationals to their science parks to incubate new products. Such a human resource talent bank will truly engage the Philippines in planning an innovation and technology-based strategy. After all, are we not in a networking age in the creative knowledge era? Knowing where its talents are at any time could truly be one of the wisest investments the Philippines can make as it reaches the fork of low vs. high growth possibilities -- most recently documented by the study of De La Salle University economist Dr. Michael Alba, in his book on the long-term decline of Philippine competitiveness published by the AIM Policy Center (December 2007). (Editor's note: Author clarifies that Mike Alba is the author of an article in a book published by AIM Policy Center. He is one of several contributors. DLSU did not publish the book). Creative products and services generated by human innovation are the comparative advantage of the Philippines even in a financially volatile global economy. Local production of farm goods and improved logistics services can be stimulated by higher food prices. For example, higher value products and processes are likely to come out of research laboratories -- as the coconut coir ventures being used to prevent soil erosion shows. But more networks abroad are needed by the Philippines to connect to the larger overseas markets, including those that are decoupling from globally frenzied industries as local initiatives are linked to each other through new financial schemes (for sourcing and using of funds) such as carbon credits, pooled financial resources, fair trade, etc . The Science and Technology Advisory Councils (STAC) that were once organized by the Department of Foreign Affairs (DFA) for the purpose of linking overseas Filipino high-level talents to Philippine institutions, agencies, firms, universities, etc. through short-term consultancies among others, were funded by a UNDP scheme called TOKTEN (Transfer of Knowledge Through Expatriate Nationals) that is now managed by UN Volunteers. After about a decade of successfully stirring the interest of top-level scientists and engineers, the Philippine program, which was actually cited by the UNDP TOKTEN administrator as one of the most successful in the world, ceased to operate in 1998 – but many of its chapters and erstwhile members are independently working for the same cause today. It is high time that the Philippines seriously embarks on setting up these talent banks through public-private partnerships. The successful Science and Technology Advisory Councils could serve as a model. Dr. Federico Macaranas is the Executive Director of the Asian Institute of Management (AIM) Policy Center, argues that the Philippines needs to organize its overseas science and technology diaspora into talent pools for possible collaboration with Philippine industry. He currently sits as a Technical Advisory Council member of the bicameral Congressional Commission on Science, Technology and Engineering (COMSTE)

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Say Goodbye to Brain Drain? Philippines - Business | Global Filipino Entrepreneur | PinoyBusiness.ORG from on November 25, 2008 8:26 PM

[...] is this program of the government and it is the Balik Scientist Program that aims to bring back scientists here to render their aid in the development of our country. The [...]----- -------- Read More

73 Comments

Carol Esguerra | September 26, 2008 3:11 AM

I agree completely! What can we, the talent abroad, do to help bring this about? We are ready to be tapped. WE can pattern an organization based on SCORE, the Service Corps of Retired Executives subsidized by the US Small Business Administration, which now has 11,000 volunteers from across America. We can call it Philippine SCORE, Service Corps of Overseas Retirees and Executives.

Richard Diaz Alorr | September 27, 2008 1:59 PM

I think this is a very good initiative. The Philippines should really work hard to gain back its scientists and engineers. But how? - increase budget for science and technology, encourage and mobilize research and development activities, re-define and re-structure government policies on S and T, empower universities, provide incentives and higher compensations for graduate degree holders? - there are many things to do and to act upon.

Ed Fortuno III | September 27, 2008 2:02 PM

The proposal as outlined is quite simplistic. How do we define a "Philippine industry"? Should we preclude those companies that are clearly multinationals (e.g., P&G, Shell, Unilever) or big, successful local ones (like San Mig Corp, Universal Robina, Ayala group)? Is really fair for the government, with its meager resources, to subsidize private industry or should we just let market forces to dictate the course.

Even with the brain drain, there are an ample number of university-based scientists and engineers locally who can be tapped by industry. I think the real problem is the lack of industry demand for their talents. As a case in point, the Molecular Biology & Biotechnology Program in Diliman has been churning out graduates since 1991. Most of its graduates end up going to Medicine and other non-research jobs because there is NO viable biotechnology industry in the Philippines. Probably the same is true for Physics grads.

So before we even get foreign-based Filipino scientists & engineers, let's harness the ones that are here. This is the better and more economical idea.

Gerry Barranda M.D. | September 27, 2008 7:54 PM

Poch.... ....

Congrats, Great post !

Thanks you for continuing the efforts on " Nation Building ".

Truly the triad of a coherent world-class Public, Private and Academe Partnership ( PPAP) as championed by the New York STAC ( RSVP = Research Science Villages and Parks) in the late 1980's is long overdue. Without a doubt, it needs to be brought Front and Center, if RP is to effectively pursue it's place in this highly competitive global economy.

RSVP, modeled after the number one "think tank " in the world , The Research Triangle Park of North Carolina also known as "The Planned Silicon Valley" was proposed even before there was Bangalore, India, which is well recognized to have played a major role in not only making India Technologically competitive but also in significantly alleviating poverty in this nation whose population is far greater than RP.

A fully developed RSVP would have served as a nucleus then and now for not only "winning brains back to RP, but also serve as great infrastructure for overall "nation building", as did the " Planned Silicon Valley " ( The Research Triangle) that delivered the State of North Carolina from a backward State, producing mainly tobacco, cotton, furniture etc, to its current level as the # 4 State in the USA sought for by Industry worldwide. The Triangle has more PHD's per capita, even greater than that of Boston, a beacon of education.. The overall educational system and education of the North Carolinians have been greatly enhanced by this Triad (PPAP) as well.

More power to you.

God Bless and God Save the Philippines !!!

Gerry Barranda, M.D.
Former Co-Chair STAC New York
UNDP -TOKTEN Consultant , !989, 1990
Chairman/CEO
Amazing Advantage LLC
45 Fairview Ave Suite 14-I
New York NY 10040
212-567-3411
gab42@msn.com

Victor Gruet | September 27, 2008 9:31 PM

I agree Poch. I hope the Top 10, or Top 1000 companies would explicitly support such a move, and build up the business environment so that there would be a need for these guys here. For the past 20 years though I have not heard or seen these Top companies explicitly say so. What can the small guys like us do to create such an environment? Can small guys like us invite foreign companies to come in? Can we create incubation programs for small or new guys to create local companies and the infrastructure that would need these scientists?

Fiorello Abenes | September 28, 2008 6:40 AM

As a Balik-Scientist Program recipient earlier this year, I could not agree more about the need for a Philippine reverse brain drain program. However, it should not just be Philippine Government or Industry that must reach out to ex-patriate scientists. Scientists abroad should likewise feel a sense of responsibility and yes, patriotism to also contribute their talents to the scientific development of the country. They can, for instance choose to spend their sabbatical leaves in the country. I have suggested to DOST that they should have a program to make the Philippines a premier Sabbatical destination for expatriate Filipino scientists like me. Our needs are not much - safe lodging, food and transportation is all we really need. There is no need to pay us because our Sabbaticals are already paid leaves that can be availed of about once every 6 years. Now, I am not going to be a hypocrite to say that the $150 a day stipend was not welcome. It helped fund our research and travel at CLSU and jump started a scholarship fund to grant prizes to students who do research in biomass ethanol.

Filipino expatriate scientists can also apply for grants such as the US Fulbright Program to lecture and conduct research in the Philippines. The Philippine Department of Agriculture has an ongoing Fulbright Exchange program but the exchange is lopsided - more Filipino scientists are going to the US than those coming to the country. This is partly due to the policy of Fulbright that discourages US participants to go to a country that they are already very familiar with. My grant to do lecturing and research in the Philippines next year is perhaps a rare exception but certainly proof that it can be done. I was able to convince the Fulbright Program to give me a grant to do lecturing and research at Mariano Marcos State University to develop the technology of turning biomass into ethanol using Carabao rumen fluid as primary biomass deconstructor and that no country is more deserving of my services than the Philippines.

Then there are those TNT Scientists who are seeking redemption. Give them general amnesty in exchange for their services in kind. These are economic refugees who sought greener pastures abroad after they were sent for training abroad. Many of them are now retired and are looking for something to do (like me!).

I do have 2 (cara)beefs though: Our proposal to DOST PCIERD for funding is still on hold - c'mon guys this is not ZTE! And, my letter to Dr. Lucio Tan for collaborative research in the area of biomass ethanol went unanswered. I want to use his Tanduay Distillery to distill our biomass ethanol and help him get rid of the sugar cane bagasse to produce even more ethanol. I was offering my services free!

Bernie Bituin | September 29, 2008 12:02 AM

I am interested to help in R&D on alternative energy, biofuels and bitechnology sustainable development.

Toby Dayrit | October 1, 2008 10:12 AM

Thanks, Poch, for this thought-provoking article. Your comments and suggestions carry much weight given your long engagement in this area.

What drives our talent away is not just the better opportunities abroad, but the lack of opportunities at home. We need to attract our talent overseas to come back home, but at the same time, we should make sure that our local talent is happy and contented to stay home. Allow me to propose some specific suggestions:

1. As the US is giving special deals to Filipino teachers to teach in hardship areas in the US, we should entice more science and math BS graduates to teach at our public high schools. To do this, we need to start their pay at a competitive level, say at the salary of a call center agent of P18,000+. If the basic salary of a HS teacher is P12,000, then we should give them an additional P6,000.

2. With better talent teaching HS science courses, we should put together a track that will teach practical technical skills for basic needs, such as basic food technology, electronics, mechanics, etc. This will help SMEs in the provinces and make our HS graduates more employable.

3. Government should raise the classification level of technical people in its Civil Service scheme, if possible equal to if not higher than that of lawyers. This sends a definite signal that the government is serious about S&T human resources. We have way too many lawyers in government; in contrast, Japan and China have lots of engineers in government. The consequences are obvious.

4. All provincial state universities should justify their existence based on the population of its high school graduates. Those that can not meet this criterion (say, 100,000 HS graduates) should merge with neighboring provinces.

5. The government can sponsor technical conferences on priority areas and bring together top Filipino expats with local Filipino scientists and engineers. This can guide S&T strategies. Because the Philippines is so vulnerable to disasters, we should include this as a priority area.

6. The government must take its commitment to provide support for QUALITY of Philippine products more seriously. It must put more resources into an MSTQ program (Metrology, Standards, Testing and Quality) that is at par with international standards. This is a direct way that government can influence the way science serves industry. It is also a good way of engaging the expertise of expatriate Filipinos to help in real technical challenges that matter to Philippine industry.

7. The Philippines should run its S&T human resources program in the same way as a top corporation would run its HR program. Unfortunately, HR is not a traditional strength of government so help from the private sector in HR management would be most appreciated.

Just some thoughts for now.

Toby

Chris Reyes | October 14, 2008 12:02 AM

Many of the Filipinos that were part of the martial law wave of diaspora are approaching or at retirement age. The Philippines government should promote an outreach program, supported with real financial inducements, to have these experienced professionals return.

I have heard of many retirees seeking a second career, volunteering, joining the peace corps, etc. Why don't we take the opportunity to attract these folks to teach, work in the hospitals, or even as part of the government.

There are many advantages to targeting those of retirement age: 1. Don't need to provide a wage that is competitive with markets abroad, 2. They have a wealth of experience, 3. It is a way for them to reconnect, 4. The lower cost of living extends their retirement savings or improves their quality of life.

Poch Macaranas | October 20, 2008 10:14 PM

I agree with many of the ideas noted by all of those who responded to the commentary I wrote last month. What we need now is to act in unison and have a voice to get both DOST and COMSTE to take action on the ideas. I propose to have a Kapihan on these brain drain issues next month, November, which I hope the AIM Policy Center, DOST and COMSTE can host jointly.

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