A BriefingBy Jean Lee C. Patindol

April 28, 2014

Some Questions in Our Minds• Economic trends in the Philippines & in

Negros?• Political & economic issues & their impact in

education?• Negros economy --

– where is it headed?– possible manpower needs?

• Healthcare sector - what does the future hold for them?

• Buy-outs & what is our response to these?

Briefing ContentSelected Global and Philippine Trends,

Implications and ProspectsNegros Situationer and Outlook (Implications

and Prospects)Healthcare Industry Trends and Prospects

Response to Buy-outs

Global Trends • Globalization and de-globalization

• Ongoing integration of national economies into the global market, with entry of billions of people into the global market

• Due to 2008-09 global financial meltdown, slowing markets in developed countries

• An increasing trend toward cooperation and partnership cross-cutting traditional boundaries: new thinking, new models, new strategies and approaches

• ASEAN Economic Community in 2015; ASEAN Qualifications Reference Framework (AQRF)

• Trans-Pacific Partnership (from TPSEP 2005 of Brunei, Chile, NZ, Singapore to Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam as o f 2013)

• “The Comeback” intensifies economically although the U.S. is still recognized as world political leader: new economic patterns

• China and India contributed 70-80% of world output from 1000 to 1800s; in 1820, China alone contributed 30% of world GDP

• Emerging economies growing an average of 6.4% annually since 2001 while developed countries only averaged 1.6%

12 Priority SectorsAgro-based productsAir travel/air transportAutomotivee-ASEANElectronicsFisheriesHealthcareRubber-based productsTextiles and apparelTourismWood-based productsLogistics

The ASEAN Mutual Recognition Arrangements (MRAs)

Recognition

EducationTraining

Experience

CertificatesLicenses

Mobility

Objectives of the ASEAN MRA1. Facilitate mobility of professionals

within ASEAN2. Exchange information and enhance

cooperation in respect of mutual recognition of medical practitioners

3. Promote adoption of best practices on standards and qualifications

4. Provide opportunities for capacity building and training of medical practitioners

Philippine Qualificatio

ns Framework

(PQF)

Qualification Levels

Descriptors

Working Groups

Qualifications Register

Pathways & Equivalencies

Quality Assurance

Information & Guidelines

International Alignment

Industry needs

Need for global

recognition of competencies

Current qualifications issues at all

levelsQualifications

issues in recognition of prior learningResearch and policy papers

on NQFNQFs of other

countries

Consultation and Advocacy

With Stakeholders

INPUTSINPUTS OUTPUTOUTPUTSS

Qualifications Landscape

Learning Outcomes (knowledge, skills, values, degree of independence)

Standards (occupational, institutional, professional standards, qualification criteria,

assessment criteria)

Qualifications (certificates, bachelor’s degree, craft diplomas, awards by professional bodies)

Sectoral Qualifications (Indian National Skills Qualifications Framework

National Qualifications Frameworks (Philippine Qualifications Framework)

Regional Qualifications Frameworks (EQF)

International Standard Classification of Education (ISCED)

Implications and ProspectsPQF as a tool for:

Curriculum Planning: focus on learning outcomes according to standards

Development of Qualifications: ASEAN MRA: exchange of information on Basic qualification and recognized institutions Postgraduate qualifications and recognized institutions Core competencies and scope of practice

Qualifications Register Quality Assurance

Accreditation of Education Providers (221/1943 HEIs, Valenzuela, 2008: ““Migration and Education: Quality Assurance and Mutual Recognition of Qualifications- The Philippines (Paris: UNESCO, 2008)

Certification of graduates International Alignment

need for labor market research

core product strategy: fill up value chain gaps esp. high-value

processesmove up value chains; linkages for natural/organic certification;

core market strategy: target high-growth industries (ICT/BPO/Call center/Electronics plus SME dev.) and emerging markets

Sample value chain

Philippine TrendsModerate (ave. 5% over last 10 years) to robust (6.5-8%)

economic growth with lower inflation (3-5%) and strong foreign exchange reserves, at least until 2018, with major reforms and strong fundamentals in place fueled by consumption and government spending, services,

manufacturing, construction growth (in 2013), high-growth industries: BPOs, IT Challenges: global slowdown, excessive capital inflows due to

attractive investment opportunities , natural disasters, inclusive growth through job creation and poverty alleviation (1/3 on less than $2/day), “need to diversify the economy by revamping the educational system and providing employment opportunities in manufacturing” (ADB)

Improved international credit ratings United Nations Conference on Trade and Development

(UNCTAD) has recently (2012) cited the Philippines among the top 20 preferred investment destinations by transnational corporations for 2013-2015

No. 59 of 148 countries in 2013 in the Global Competiveness Index of the World Economic Forum (from No. 85 in 2010)

Western Visayas (as of 2012)Agriculture, tourism, real estate, services (tourism,

BPOs)Average annual growth rate, 5%Average annual inflation rate, 3-4%Average annual unemployment rate, 6%Population (as of May 2010 census) is 7,102,438 at

1.3% (2.4M in Neg. Occ.) annual growth rate (Neg. Occ. Rate, 1.44%; world rate, 1.14%)

Net enrolment rate, 89.44% for primary, 56.3% for secondary levels

Cohort survival rate, 76.64% for primary and 79.87% secondary levels

132 HEIs with 54 in Iloilo and 29 in Bacolod and Negros Occidental

Negros First Development Agenda• One Island-One Region

– Integrated community hospitals since Lacson-Coscolluela’s time– Pushing for an EO

• “Sugar and More”: – muscovado production and export– Bioethanol and other new products (bio-water, bio-plastics,

batteries) and industries– Power cogeneration

• Organic Food Capital of Asia• Retirement and wellness province• Ecotourism • Green energy• Negros Cybercenter: BPOs, IT, animation and graphic design

arts• Security sector reform: Negros Multi-sectoral Peace and

Development Network• An Act Establishing the Negros Occidental Investment and

Incentives Code of 2013 and implications for province-wide dev.

Preferred Areas of Investment“Green Energy” projects Commercial tree farms Factories for the manufacture of prefabricated

housing Manufacture of agro- and aqua-based products

(canned food, processed fruits, sweets and condiments, processed marine products, animal feeds and supplements, natural/organic fertilizers, farming and fisheries equipment and machineries)

Manufacture of handicraft products (gifts, toys, houseware; ceramics; furniture; garments)

Tourism-related businesses (mid-range hotels and other tourist facilities, beach and mountain resorts, theme parks, agri-tourism facilities, marinas and related water-recreation facilities, tourist transport facilities)

Property-development projects (ICT, retirement villages, convention centers, private agro-industrial estates, special economic zones, food terminals, private hospitals)

Transshipment facilities (new airport and seaport infrastructure, common bonded warehouses, metal and foundry shops, new educational facilities for organic farming, agroforestry and sustainable rural livelihoods, production of high-value crops for export and import-substitution, organically-grown vegetables, fruits and livestock

Addition of Preferred InvestmentsMust generate a high level of employmentMust feature a high-degree of added value to

raw materialsMust create linkages with local industriesMust be environment-friendly

Implications and ProspectsOne Island-One Region opens up Negros Oriental as a

direct market, especially when coupled with province-wide development

Health, wellness and green (green energy, ecotourism) focus

BPOs and ITs: voice and non-voice (software development, animation and graphics)

Linkages with Negros Multi-sectoral Peace and Development Network and the provincial government’s Winning the Peace program through Pro-PIDU (Provincial Peace Integration and Development Unit)

12 Megatrends in Global Health CareMegatrend Implications and

ProspectsEmerging economiesPersonalized medicine

and technological advances (decoding of individual genome)

Aging populations (esp. in developed countries)

Rising costs

New marketsNew therapies, privacy

concerns, cost-benefit issues

Health care provider shortages

Changes in spending, design and delivery of health care systems

Megatrend Implications and Prospects

Global pandemics

Environmental challenges: poor water and air quality, pathogens in food supply, urban sprawl and congestion

How to address root causes: urban sprawl, population growth, global travel, basic delivery systems

Design and delivery of healthcare systems

Megatrend Implications and Prospects

Evidence-based medicine

Shortfall of primary care physicians

Payers’ influence over treatment decisions due to rising costs

Growing role of philanthropy

New research, standards, regulation

Changes in who will treat patients; alternative care systems

Alternative health care delivery systems

Access to linkage and grant opportunities

Megatrend Implications and Prospects

Prevention is the next big business opportunity

Need for good care at lower prices: medical tourism

Preventive health care systems; wellness approaches for new markets

New markets

BuyoutsThe purchase of a company's shares in which the

acquiring party gains controlling interest of the targeted firm. A leveraged buyout is accomplished by borrowed money

or by issuing more stock. Incorporating a buyout strategy is a common

technique used to gain access to new markets and is one of the most common methods for inorganically growing a business. 

Buyout strategies are often seen as a fast way for a company to grow because it allows the acquiring firm to align itself with other companies that have a competitive advantage in a specific area. 

Blue Ocean Strategy(Kim and Mauborgne, 2005)BOS is the result of a decade-long study of 150 strategic

moves spanning more than 30 industries over 100 years (1880-2000).

BOS is the simultaneous pursuit of differentiation and low cost.

The aim of BOS is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant.

While competitive strategy is a structuralist theory of strategy where structure shapes strategy, BOS is a reconstructionist theory of strategy where strategy shapes structure.

BOS covers both strategy formulation and strategy execution. The three key conceptual building blocks of BOS are: value innovation, tipping point leadership, and fair process.

As an integrated approach to strategy at the system level, BOS requires organizations to develop and align the three strategy propositions: value proposition, profit proposition and people proposition.

BOS Case ExamplesCirque du Soleil: Blending of opera and ballet with

circus format while eliminating star performer and animals;

Net jets : fractional jet ownership;Southwest Airlines: offering flexibility of bus travel

at the speed of air travel using secondary airports;Curves: redefining market boundaries between

health clubs and home exercise programs for women;

Home Depot: offering the prices and range of lumberyard, while offering consumers classes to help them with DIY projects;

Dyson: Cyclonic Vacuum Cleaners

References Blue Ocean. (n.d.) Retrieved from http://www.blueoceanstrategy.com/

Daniels, John H., Radebaugh, Lee H. and Sullivan, Daniel P. (2013). The Comeback accelerates. International Business: Environment and Operations, 14th edition. Pearson: U. S. A.

De Ocampo, Roberto, Philippine Veterans Bank Chairman. (2013). The Philippine Economy 2014: Fearless Forecast. Speech delivered at the Bases Conversion and Development Authority Board Meeting. December 4. Retrieved from http://www.veteransbank.com.ph/2013news-17.html

Department of Trade and Industry. (2014). Overview of The ASEAN Economic Community (2015). Presented at Sugarland Hotel, March 14.

Dillon, Karen and Prokesh, Steve. (n.d.). . Megatrends in Global Health Care. Harvard Business Review. Retrieved from http://hbr.org/web/extras/insight-center/health-care/globaltrends/1-slide

Greitens, Sheena Chestnut. (2014). Obama's Visit to Asia and the U.S.-Philippine Alliance. Brookings East Asia Commentary No. 77. April. Retrieved from http://www.brookings.edu/research/opinions/2014/04/07-us-philippine-alliance-greitens

Investopedia. (n.d.). Buyout. Retrieved from http://www.investopedia.com/terms/b/buyout.asp

Hofman, Bert, Nye, John, Rood, Steven, and Nehru, Vikram. (2012). Economic and Political Challenges in the Philippines. Carnegie Endowment for International Peace. April 27. Retrieved from http://carnegieendowment.org/2012/04/27/economic-and-political-challenges-in-philippines/a9tn

Mananzala, Teresita R., Chair, Professional Regulation Commission. Chairperson, Task Force for the AQRF. (2013). Qualitay assurance. Presented at the 24th PACUCOA Annual General Assembly. December 6.

Region VI Regional Development Council and National Economic Development Authority Region VI. (2012). 2012 Socio-Economic Report: Western Visayas Region

Santos, Matikas. (2013). Philippines is fastest growing country for 1st quarter of 2013. Inquirer.net. June 4. Retrieved from http://newsinfo.inquirer.net/417531/philippines-is-fastest-growing-asian-country-for-first-quarter-of-2013