Nothing to Cheer About

I'm not in a jolly mood and no, not on account of Milenyo (is there actually a person out there named Milenyo?). The peso broke the all-important psychological barrier of US$/PhP50. For exporters and outsourced consultants dependent on foreign currencies, this is not a good thing. People cheer that this is a good development, a good sign that the economy is back on its feet and doing well. No less than Gloria Arroyo herself bragged about the country's per capita income now rising to about US$1,400. Oh please, this is only a translation effect on account of the stronger peso.

But this is deceptive. Droves of Filipinos leave the country at an alarming rate to seek greener pastures abroad, mostly from among the professional ranks like nurses, engineers and IT personnel who earn more than their unskilled counterparts. And the appreciation of the peso is caused mainly by the massive inflows of remittances from overseas Filipinos, especially with the onset of the holiday season. And not because productivity levels in the country have improved, or manufacturing output gained any steady pace, or that exports grew impressively. Nope.