Watching one’s pocket

Paris - "Thrift comes too late when you find it at the bottom of your purse," could well describe the resolve of some people to cut back on unnecessary spending, but it is definitely a positive thing that has come out of the global economic meltdown. The crisis as we know has now become a huge unemployment problem. According to the International Labor Organization, unemployment in Asia could surge to 23 million this year as the financial crisis batters the region’s economies. In the Philippines, this is especially worrisome because economic problems impact highly on political stability.

For decades, domestic unemployment has been counterbalanced by huge remittances from overseas Filipino workers estimated at $1 billion a month. A noted economist has said that OFW income has rescued 2 to 3 million Filipinos from poverty. However, this has not translated into significant changes on the lives of the poor, except in terms of consumption. In fact, the same economic expert noted that dependence on dollar or euro remittances has triggered a complacency effect on some family members, who worked less or stopped earning altogether.

As the ill effects of the crisis continue to hit OFW host-countries, the big question is, what happens to families back home if the proverbial goose no longer lays the golden egg?

Friends in different Filipino communities here in Paris like Dennis Manaay told me there has been a slowdown in the demand for ménage, French slang for household helpers. For example, what used to be a 4-hour assignment per household for most Pinoy domestics has been whittled to two, putting a pressure on the remittances they send back home, which averages 1,000 euros a month. This was confirmed by Mr. Francis Prima, marketing officer of the Bank of the Philippine Island Paris branch in a talk with this corner.

Prima said this can be gleaned from the 30 per cent reduction in the volume of euro transmittals for 2008 compared to remittances in the previous year. He stressed this trend could continue until the 2nd quarter of this year but he is positive the crisis will bottom out in the second half of 2009. In the meantime, some adjustments have to be made in the lifestyle of OFWs.

I think this was in the back of the minds of our kababayans when they trooped to the Philippine Embassy in Paris last week to attend the Financial Literacy and Wise Investment Seminar sponsored by the Philippine Trade and Investment Center, the representative of the Philippine Trade and Industry (DTI) in France. The event was undertaken through the Philippine Embassy in cooperation with the Philippine Franchising Association (PFA).

As a backgrounder, Paris hosted the Franchise Expo from March 13 to 16 and PFA representatives led by Samie Lim were able to link up with investors from 92 countries with globally recognized franchisors. On line reports say Franchise Expo Paris exhibited over 400 franchise concepts coming from more than 20 countries spanning 75 business sectors, from fine foods to fashion, auto repairs, estate agents, toys, beauty salons, stationers and swimming pools. The event attracted 30,000 entrepreneurs, undoubtedly sold out to the business system hyped as “success duplicated”. To highlight the occasion, France declared Friday the 13th International Franchise Day.

The business/investment seminar for OFWs was part of the PFA campaign to spur investments in the country and I thought the timing was propitious as winter came to a close. The signs of printemps had been evident all week, with temperatures becoming moderate and days getting longer. Spring is associated with new beginnings and there maybe something here that suggests of the start of better times.

The Financial Literacy and Wise Investment Seminar drew some 200 Filipino workers at the conference hall of the Phil. Embassy, eager to learn tips on how to start up a business. They took down copious notes while listening attentively to audio visual presentations courtesy of BPI exec Francis Prima and Althea Karen Antonio, Philippine commercial attaché to Paris. Bing Sibal-Limjoco talked about franchising.

Questions on credit facilities and franchising animated the open forum. Ralph Cabaron from Dipolog who works in the French government-led transportation system said the budget requirements of a franchised business is too steep for OFWs in France since most of them have already invested in real estate, the premiums of which they continue to pay up to now. “Dili gyud maapas,” (We can’t catch up). He thinks that cooperative-style enterprises complemented by micro credit assistance and institutional guidance from private and government sectors are best suited for OFWs. Meanwhile, my seatmates Dinah Romero and Malou Zarate said the inputs were all useful. They both expressed interest in franchising and said that once they are able to save up enough money, they would like to go into business.

Ambassador Rora Navarro-Tolentino considers the seminar a first step towards a more focused effort on the part of the Phil. Embassy and all attached offices having representations abroad because, as she put it, “In the short term, we really have to address the reality that there will be less economic opportunities to be availed of by all overseas workers, including Filipinos.”

Copyright 2009 INQUIRER.net and content partners. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.