I WROTE in my last column about the failure of the Western economic model in the light of the current global economic crisis. The best proof is the widening recession that started in the United States. No more straightjacket formulas. It is very clear that what is good for America or China is not necessarily good for us.

Even the extent of the impact of the global economic slowdown has been different for us compared with other countries. Export-led economies like Thailand were battered, while we were not hit as hard; not because we did not strive to be a big exporter like Thailand, but because we were too slow to grow our exports. So, in a way, our slowness benefited us.

What then should be the components of the new economic model for the Philippines? Our key word should be “self-reliant.” It’s the best protection against external threats like the slump in the export markets and the slowdown in other countries’ economies.

Let’s look at our existing resources—natural, financial, human—and find out how we can harness these resources. That will be part of the right model for us.

We have a population of 90 million, making us the 12th-largest in the world. A big population need not be a hindrance to growth. The other way of looking at our population is that it is also a big domestic market, which can drive consumption and the economy, particularly at the present time, when the global markets are shrinking.

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Our large pool of English-proficient labor shows us the role of human resource in economic development. It brought the business- process outsourcing industry to our shores, which continues to grow in spite of (or maybe because of) the global recession.

New call centers are opening up as companies in the recession-hit countries look at outsourcing parts of their operations to cut costs. Filipino workers continue to find jobs in countries that have not been affected by the global slowdown, or are trying to stimulate their economies amid the slowdown.

It is heartening to hear about reports that 4,000 Filipino workers leave for work abroad, which means 4,000 families that will receive support for their daily needs. Thus, sustaining and improving the competitiveness of our human resource should be part of the new economic model.

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This model should also include among its components entrepreneurship development. After all, overseas jobs are supposed to be temporary. Overseas Filipino workers will go home someday, and they will need livelihood when that day comes. In addition, ask any taipan, entrepreneurship is the way to prosperity.

I have constantly pushed for the development of entrepreneurship because I am a product of entrepreneurship. If we can develop just 1 percent of our population as entrepreneurs, that’s already 900,000 business people who will revitalize our economy, generate much-needed jobs and lift many families from poverty. Otherwise, we will just have a huge pool of wasted talent. And we will lose a big opportunity to boost the economy and help our people.

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Seconds to Spare dvdrip The timing is right for us to work on a new economic model, taking into account our resources, and considering our own needs.

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First of all, we review everything—our resources, the benefits and costs of the economic model that we have been following. Then we identify the components of a new model. I cited some examples with respect to harnessing our human resource. Other people—economists, businessmen, policymakers—should be able to contribute their share, so that we can come up with a whole new model.

I need not overemphasize a crying need for a new economic model. I know it’s a hard task. It’s never easy to discard long-held beliefs and practices, but we need to do it now. It’s just a matter of time before the crisis ends.

We need not wait until the crisis ends. Rather, we should do the work while the crisis is going on, and begin following it as soon as the crisis is over.

So far, we have been lucky. Except for the export sector, we have not seen the full impact of the global crisis. Banks continue to lend, although at a slow pace; companies continue to make profits, although lower than what they made last year; and malls, offices and homes are still being built. Our overseas Filipino workers continue to send precious foreign exchange home.

Overall, the economy is still projected to grow, although at a slower rate compared with the past two years; no one, however, is expecting a recession in the Philippines.

Timing and opportunity are on our side. Let’s not waste them. Let’s begin working on our very own new economic model, now!

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