A briefing on current global, regional, Philippine and Negros Occidental trends and prospects and their implications to healthcare education -- presentation delivered to a healthcare educational institution on April 28, 2014

1. A Briefing
By Jean Lee C. Patindol
April 28, 2014

2. 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?

3. Briefing Content
 Selected Global and Philippine Trends, Implications
and Prospects
 Negros Situationer and Outlook (Implications and
Prospects)
 Healthcare Industry Trends and Prospects
 Response to Buy-outs

5. 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. 12 Priority Sectors
 Agro-based products
 Air travel/air transport
 Automotive
 e-ASEAN
 Electronics
 Fisheries
 Healthcare
 Rubber-based products
 Textiles and apparel
 Tourism
 Wood-based products
 Logistics

14. The ASEAN Mutual Recognition
Arrangements (MRAs)
Recognition
Education
Training
Experience
Certificates
Licenses
Mobility

15. Objectives of the ASEAN MRA
1. Facilitate mobility of professionals within
ASEAN
2. 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

16. Philippine
Qualifications
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 levels
Qualifications
issues in
recognition of
prior learning
Research and
policy papers on
NQF
NQFs of other
countries
Consultation and
Advocacy
With Stakeholders
INPUTS OUTPUTS

17. 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)

18. Implications and Prospects
 PQF 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

19.  need for labor market research
 core product strategy:
 fill up value chain gaps esp. high-value processes
 move 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

20. Sample value chain

21. Philippine Trends
 Moderate (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)

22. 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

25. 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.

27. 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)

28.  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

29. Addition of Preferred
Investments
 Must generate a high level of employment
 Must feature a high-degree of added value to raw
materials
 Must create linkages with local industries
 Must be environment-friendly

30. Implications and Prospects
 One 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)

32. 12 Megatrends in Global Health Care
Megatrend Implications and Prospects
 Emerging economies
 Personalized medicine and
technological advances
(decoding of individual
genome)
 Aging populations (esp. in
developed countries)
 Rising costs
 New markets
 New therapies, privacy
concerns, cost-benefit issues
 Health care provider
shortages
 Changes in spending, design
and delivery of health care
systems

33. 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

34. 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

35. 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

36. Buyouts
 The 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.

37. 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.

38.  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.

39. BOS Case Examples
 Cirque 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

41. 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

42.  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.

43.  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