2. THE THREE
MAJOR FASTEST
GROWING
INDUSTRIES

3. Telecommunication comes from the
adapted Spanish word Telecom.
It is communication at a distance by
technological means, particularly
through
electrical
signals
or
electromagnetic waves.

4. The Philippines is said to be the
“texting capital of the world”.
Consider the statistics:
 The telecommunications industry has an
average of about 6% growth in the last
10 years.
 Many telecommunications companies
have put up shop in the country because
of robust sales.
 Funds are coming in for additional
capital and investment in new devices,
technology, and equipment.

5. Outsourcing is a practice used by
different companies to reduce costs by
transferring portions of work to outside
suppliers rather than completing it
internally.

6. Global enterprises and businesses
are
consistently
outsourcing
their
functions, and this is mainly due to the
lower cost of having other firms perform
some of their functions. It is estimated
that the savings that may be generated in
outsourcing functions range in billions of
dollars.

7. The Philippines is one of the main
players in outsourcing, and many global
companies are looking towards the
Philippines for its outsourcing functions.
The Philippine advantage is mainly due
to factors such as the English proficiency
of Filipinos; a highly educated labor
force; and investment incentives given by
the government.

8. Most outsourced jobs are call center
marketing work; and many call center
companies are developed in the
Philippines’ central business district, a
testament to the brooming outsourcing
industry in the country.

9. The OFWs are a potent economic
force in the country, and it is estimated
that about 8 million Filipinos are already
working abroad as OFWs, with only
about three fourths of these are
registered or documented. Close to a
million workers are deployed abroad
each year.

10. The contributions of the OFWs
cannot be underestimated. They bring in
about $ 8 billion in remittance since
2003. These remittances that reach the
country are like funds that water our
depleted economy, especially during
Christmas time.

11. THE INFORMAL
SECTOR

12. The Informal Sector is another
important sector of the economy. It
refers to businesses and markets that
are unregulated by government and
other institutions of society. However,
it provides a way for people to support
themselves and gives them the ability
to work.

13. The informal economy is more
evident in developing nations. In the
Philippines, it can be seen in the
neighborhood sari-sari store, in the
magtataho and ice cream vendor; the
various stalls in Divisoria; the manang
selling cigarettes on the streets; and the
girl with the sampaguita.

14. The workers in the informal sector
are varied, but one thing they have in
common is that they are not regulated by
government. Some of them will work parttime, while others will work full-time; most
will not declare their income to
government or to any of its agencies to
evade paying taxes; and a lot will not
avail of any voluntary contributions to
social security pension plans, such as the

15. However, the above workers may be
described as helpful workers, keeping
the economy moving in a smaller
scale, and having jobs and earning
money that would provide for their
families.

16. THE
UNDERGROUND
ECONOMY

17. The other half of the informal
economy, however, is more hidden but
more dangerous to society and to the
nation. This sector is termed the
underground economy, where “under
the table” arrangements are made.
This special subsector of the informal
economy is where big money and dirty
money are exchanged.

18. The underground economy consists
of the black market, where dollars and
other currencies are exchanged in rates
different from acceptable ones; the
“business transactions” entered into by
those in the illegal trade; smuggling; drug
trafficking; and a host of other unlawful
activities and transactions.

19. This
is
the
subsector—the
underground
economy—that
has
paralyzed many economies, laundering
dirty money for the purpose of creating
more illegal businesses; and siphoning
needed dollars from banks and other
legal entities. Government have tried to
put their foot down in the activities of the
underground economy, but most of the
time they fail because of the powerful

20. ROOTS OF THE
INFORMAL
ECONOMY

21. The informal economy has existed side
by side with the regular sectors of the
economy, in any country. Even the earliest
economies such as those in Mesopotamia
show evidence of informal sectors. This is
because people since the earliest times
generally try to evade regulations or
government control. This is especially true if
government
excessively
regulates
businesses. In this case, businesses that are
in the regular sectors may opt to transfer to
the informal economy to escape regulations

22. TAPPING INTO
THE INFORMAL
ECONOMY

23. 1. To bring the informal economy to
the attention of major leaders in
government, especially the legislators,
so that they can enact laws to support
this sector.

24. 2. To change people’s perceptions of
workers in the informal economy so
that they will look at themselves with
dignity and try to work better for the
development of their communities.