Liberalization of Professional Practice

The article below may provide the rational for the liberalization of the practice of professions in connection with the pursuit of constitutional economic reform.

Professional concerns
MY FOUR CENTAVOS
By Dean Andy Bautista
(The Philippine Star)
Updated October 17, 2009

As in any public policy debate, there are pros and cons in allowing foreigners to practice their professions here.

The main point raised against liberalizing the practice of professions is the potential unemployment that may arise among the local professionals. Critics argue that the “work-pie” in the Philippines is so small that allowing foreigners to come in would further crowd an already crowded market.On the other hand, the benefits of opening up the professional services sector are apparent.

First, the resulting competition will encourage if not compel local professionals to improve their know-how to be at par with their foreign counterparts.

Second, there is a view that the entry of foreign professionals would not cause dislocation but actually create more jobs as foreign professional firms operating here will be on the lookout for Philippine professionals to work with. This has been the experience of Asian countries such as Japan, Singapore and Hong Kong where the entry of foreign professionals spurred direct foreign investment which in turn led to an expansion, instead of a contraction, of the “work-pie.”

Third, allowing foreign firms to set up shop in the country will lead not only to a transfer of technology and skills but also to higher wages that reflect industry standards. Cases in point would be the Metro Manila BPOs of Baker & McKenzie and White & Case, two large international law firms, which employ thousands of Filipinos. Parenthetically, this move may also stem the exodus of Filipino professionals abroad.

Finally, by allowing foreigners to practice their professions in the country, the Philippines will be complying with its treaty obligations as a member of the WTO and its being a signatory to the General Agreement on Trade and Services as well as the ASEAN Framework Agreement on Services. And aside from the advantage of being a good global citizen, the country should face the reality that globalization is here to stay and the earlier we accept this fact, the more we can benefit from it...

As a young boy learning how to play table tennis, I was advised that the best way to improve your game was to play with players better than you. A similar principle applies in this case. Needless to say, Filipinos are, by and large, naturally competent and predisposed to hard work. All they need is the opportunity and right atmosphere to flourish. My four centavos is that liberalizing our professional services sector will contribute to the creation of such opportunities and an atmosphere conducive to growth.