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EQUiLiBRiUM The Official Publication of the UST Economics Society V O L U M E

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The Economics Society stands for the Right to Education Everyone has the right to education, and this is preserved in the Universal Declaration of Human Rights. As a matter of fact, one of the eight United Nations Development Programme‘s Millennium Development Goals is to achieve universal primary education. The Millennium Declaration that was adopted by 189 nations, including the Philippines and signed by 147 heads of state and governments during the UN Millennium Summit in September 2000. In this goal, countries must ensure that by 2015, children everywhere boys and girls alike, will be able to complete a full course of primary schooling. Primary and secondary education has to be a priority to take the fact that there is a constraint in resources. Primary and secondary education in the Philippines is free as guaranteed by the Constitution. The Constitution states that everyone has a right to education. Article IV, Section 1 of the Constitution states: ―The State shall protect and promote the right of all citizens to qualify education at all levels and shall take appropriate steps to make such, education accessible to all.‖ Furthermore, Section 2 of Article IV asserts the following: ―Establish

and maintain a system of free public education in the elementary and high school levels. Without limiting the natural right of parents to rear their children, elementary education is compulsory for all children of school age.‖ Definitely free and compulsory education at the basic level will lead to a relatively high enrolment rates in the Philippines. Although, data showed that net enrolment ratio at elementary and high school level exhibited minimal changes and remains far from the 2010 target.

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Editor’s Note

UST Economics Department Faculty Almario-Miguel, Alma Aileen, M.A. Economics Department Chairperson

Quijano-Arsenio, Jodylyn, Ph. D UST Economics Society Adviser

Baluyot, Mary Hildence, M.A. Cabauatan, Ronaldo, M.A. Cabral, Cristina, Ph.D. Dinio, Rosemary, Ph. D Estadilla, Leandro, MBA Lao, Robert, MBA Paguta, Ronald, M.A.

Lucette Grace O. Gotinga ―!‖ OR ―SOS‖. That would best describe Equilibrium‘s very first issue for school year 20092010. First and foremost, the reason behind ―!‖ is that the whole staff has an intense mix emotions regarding the publishing of this issue. We all got the feeling of the ―Big E‘s‖: excitement, edginess, and exhilaration towards the outcome of our first issue. The next

The Administration Prof. Helena Ma. F. Cabrera, Ph. D., DBA

College Dean Fr. Joseto N. Bernadas Jr., O.P. Acting College Regent Prof. Ma. Socorro P. Calara, Ph. D Assistant Dean Asst. Prof. Marie Antoinette L. Rosete, MDE

College Secretary

right and not merely as a privilege to a few. We are fortunate enough to be given a chance to experience the gift of education. Along with this, we urge you to support the Economics Society‘s advocacy campaign because sometimes it‘s the smallest acts that can change a life forever. I hope that you can spend a few minutes of your time to enjoy reading this issue.

President’s Message

Quesada, Francis Ian, MSF Candidate

Quijano-Arsenio, Jodylyn, Ph. D Racho, Clarissa Ruth, MDE Rosete, Marie Antoinette, MDE Valdez, Karen Grace, MBA Villasis, George, M.A. Calalo-Atienza, Gherrose, M.A.

reason is that this issue would like to make the whole Economics Society or rather I could say Family to get familiarized with the ECOSOC‘s advocacy regarding its stand for the right to education. Resembling the punctuation mark ―!‖ which symbolizes the sense of importance and urgency, the Economics Society‘s advocacy reveals the fact that education is a

Cara Myrrh Santos The start of the year for the Economics Society was unexpected. We are welcomed by lots of challenges that needed to be faced immediately. The completion of requirements for the organization‘s recognition was mind blowing; it was further heightened by the accreditation of the College of Commerce. Additional requirements were asked to submit by the organizations of the College for documentation purposes. The officers were clueless on where to start. The agony did not end there; student organizations all over the University were stunned with the new policies and procedures that will be implemented by the Office of the Student Affairs at the start of the Academic Year 2009-2010. From the no college based organization t-shirt policy to the cut down of the 200

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pesos membership fee. The problem did not end with these trimmed down budget policies, confusion regarding the new process of reserving venues was a very controversial issue. In order to have a venue for your activity, you need to travel numerous offices and wait for the very important signatures of different administrators. Before, only 3 days are needed for the process of your in-campus activity and only 7 days for off-campus. Now, it will take you about a week to finish the process of your in -campus activity and around 10 days for off-campus. The burden of student organizations to push through with their activities was incomparable. Despite all these constraints, Economics Society managed to survived and still provide its members quality activities. Juniors‘ Orientation and Inter-

Class debate were permitted amidst the problem in schedule and venues. The much awaited General Assembly was a huge victory. Though the organization‘s fund was very limited, that didn‘t stop us to give our members what they truly deserve, a well prepared and organized event. It was really a complete package, from the creative performances of each section up to the distribution of membership kit. The event was further highlighted by the performance of the Economics Professors with Sir Macaraig. First Semester was not enough but expect that our Second Semester will be jam-packed with different events and activities. November is fast approaching and as we all know it is the Economics Month. Various activities that can satisfy


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our members‘ different interests are already scheduled. Ecolympics, Ecoknowmics, Documentary Film Festival, Photo Ex- hibit and the much anticipated Member‘s Night are some of the events that should be watched out. There is also the

Economics Society‘s annual Leadership Training Seminar which will be on the last week of October. Nothing can really stop the EcoSoc from providing its members exceptional activities. Let us continu-

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ously support the upcoming events of the Economics Society and experience the true essence of being EKONOMISTAS.

Economics Society stands.Cont. of Page 1

Another fact is that at least 5 million children, mostly in rural areas, do not have a chance to acquire primary education, in spite of the fact that it is universal and free. The primary cause of the inadequate as well as unsustainable access to education is poverty. The lack of schooling in turn denies these children life skills value formation, and job opportunities, hence impoverishing and disempowering them. Several factors affect the poor‘s difficulty to access quality education at the basic level. First, because of poverty, children suffer from poor health and nutrition. Early childhood impairment is henceforth

DID YOU KNOW? 1. Young people who have completed primary education are less than half as likely to contract HIV as those missing an education. Universal primary education would prevent 700,000 cases of HIV each year – about 30% all new infections in this age group. (Source:Oxfam)

impaired. Second, the quality of education in public elementary and high schools is generally inferior to that of private schools. Third, albeit that public schools are not charging fees, poor families still have to shoulder the explicit expenses such as transportation costs, school supplies, food, etc.. Lastly, poor children have to help their parents in shouldering some of their family‘s expenses. Some children are left with no choice but to sacrifice schooling for work. For this year, the Economics Society stands up and takes an action to send a louder message that everyone has the right to education. For this year, many Economics Society activities have

6. Universal primary education would cost $10 billion a year – that's half what Americans spend on ice cream. (Source:Action Aid)

3. One in four adults in the developing world – 872 million people – is illiterate. (Oxfam UK – Education Now Campaign)

been planned in line with the education advocacy. As a matter of fact the Economics Society has launched its advocacy last August 1 at the Albertus Magnus Auditorium. The advocacy audiovisual presentation features the facts regarding the status of education. Different kinds of people such as professors, school administrators, and students have showed their support for the Economics Society‘s ―Education as a Right‖ advocacy.

4. More than 100 million children remain out of school. (Source:UNFPA) 5. More than 1 in 4 adults cannot read or write: 2/3 are women. (Source:Action Aid) 2. 46% of girls in the world's poorest countries have no access to primary education. (Source:Action Aid)

SOURCES: http:// www.undp.org/mdg/ basics.shtml http:// www.nscb.gov.ph http:// endpoverty2015.org/ goals/universaleducation Co E., Fernan R., and Sta. Ana F. (2007) Philippine Democracy Assessment: Economic and Social Rights. Anvil Publishing, Inc.


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The Economics Society Welcomes the New By Mia Makasiar Batch of Ekonomistas July 17, 2009-The Economics Society held its first activity for School Year 2009 -2010 by welcoming its newest batch of ekonomistas. Dr. Jodylyn Quijano–Arsenio delivered the opening remarks that signaled the start of the program. She reminisced the time when she was still in college at the same course in the same school; shared her hardships and pleasures when she was the secretary in Economic Society; encouraged the juniors to do their best in everything in order to develop their potentials; reminded them not to just listen but to explain what really is happening in the economy. She also said that the economics students should not just wait for things to happen, but instead they are the ones who should make things happen. After Dr. Arsenio‘s inspirational message, Mr. Paolo Roberto C. Roces, ECOSOC‘s Vice President for Exter-

nal Affairs, explained the Mission and Vision of Economic Society and presented the calendar of activities for the A.Y. 2009 – 2010. The chairperson of Economic Society, Asst. Prof. Alma Aileen Almario – Miguel, started the main event of the program. She discussed a brief overview of the new Bachelor of Science in Business Administration and its mission and vision; envisioned the Economics Major as a Center of Excellence with research orientation that solves the socio-economic issues in the context of Christian values; ensured that the students of economics are socially responsible and competent graduates, and responsive to the needs of Philippines society. She also added that the Economic Department supports faculty development with emphasis on research to

maintain high academic standards through seminars. Aside from that was presentation of the newly implemented curriculum for the junior batch of economics students. Compared to old curriculum, it was focused more on the enhancement of course program offered and the practicum requirement for the juniors. Asst. Prof. AlmarioMiguel also explained John Maynard Keynes‘ definition of economist, which was the Economics Department major, is trying to achieve. Keynes defined an economist as a person who possesses rare combination of gifts; reaches for a high standard in several different directions; a Mathematician, Historian, Statesman, Philosopher; understands symbols and speak it in words; contemplates the general and touches the abstract.

INDULGE TO JPES PARTY by Sandra Osoteo Most of the time, Econ majors worry about how the demand and supply curve would shift, how to derive an equation or who really bears the burden but sometimes they need to take a break and loosen

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up. These young economists by day can be the life of a party at night. You might have wrong impressions, but they can definitely show you how the right way to parteeey!! The UST Economics Society celebrated with the Junior Philippine Economics Society with their annual acquaintance party held last July 18, 2009 at

Prince of Jaipur, Taguig City. Each Thomasian economist says no to inhibitions as they let go and indulge to the Vegas themed party. There were games inspired by casino, fortune telling, photo op booth and good party music. Cont. on Page 6


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Yuan in International Trade and thus, it is struggling to make it as well as oil priced as Yuan.

Last August 22, the Philippine Council of Economics Students (PhilCes) recently held a seminar at the TARC entitled NEDA-PhilCes Allegiance: Roadmap 2020 whose guest speaker was Director Dennis Arroyo of NEDA. As almost all countries depend on US dollars, he informed that China is encouraging to adopt Yuan as a globally accepted standard of unit. Yes, it is trying to dethrone the position of dollar in the world market by 2012 which could reduce the role of US dollars and affect the trade significantly. It is widely known that Yuan is the China‘s currency but it is more officially known as “renminbi” which means people‘s money or people‘s currency and is also referred as “RMB”. Dollar for them is “mei jin” which means ‗American Gold‘. China is aiming to make Yuan a convertible one just like dollar, yen and euro whose value is dictated by the market, traders, and investors. However, this would also mean a decrease in the financial trade barriers which would allow an easier foreign access to Chinese securities. Another verity is that China is also known as a major buyer of gold shares in the Gold Exchange Traded Funds. In fact it is the 5th largest holder of gold

Beijing holds a reserve amounting to $2 trillion (13.6 trillion Yuan) in dollar assets accumulated through exports and purchases of Treasuries by the Chinese government. China‘s fund is so massive that no other countries could absorb all the liquidity. China continue to buy dollars for the reason that if they stop, the value of their assets will fall.

Officials of Russia and India supported China in declaring that they want to end dollar‘s dominance in international monetary system. Mr. Zhou Xiaochuan, Chinese Central Bank Governor of the People‘s Bank of China proposed that the world should change the global reserve currency, the SDR or Special Drawing Rights managed by the International Monetary Fund. With the use of this, dollar reserves could be exchanged. It only means that countries could trim down their dollar exposure without pushing down the dollar. In addition, China is cautious with regards to its actions to widely integrate Yuan in the global economy. They wanted to make Yuan move freely outside China. For an instance, Beijing signed 70 billion Renminbi for Argentina and 650 billion Renminbi ($95 billion) as ‗currency swaps‘

providing Yuan to other central banks for trading purposes like in Hong Kong, Indonesia, Malaysia, South Korea and Belarus. These importing countries will able to purchase goods in Yuan instead of dollars. Chinese government permitted its five trading cities namely, Shanghai, Guangzhou, Shenzhen, Dongguan and Zhuhai to use the Yuan in overseas trade settlement. Dollar remains world‘s mostly held-reserve currency and a standard unit of exchange in most international transactions. On the other hand, China feared and at risk as US prints more and more money due to financial crisis. It is a threat because it debases the value of dollar including their holdings. Consequently, there are some Chinese businessmen who lost lots of money due to exchange rate changes between dollar and Yuan. If China will elevate the global prominence of its own currency, it would be helpful to reduce the risk. As we have seen, China and U.S. needs each other to boost the value of their currencies and this issue would still be debatable. — Hazel Allam

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Thesis 101 Thesis or ECON32 is what senior life is all about. All Econ-major students are required to submit a thesis before the end of the senior year. Yes, it‘s a grueling task that one must face. If you are currently in your junior year, we advise you to cherish every moment of it because the next two semesters will be more intoxicating. Here are some pieces of advice for coping with your forthcoming thesis days. THESISMATES. You are allowed to choose your own thesis mates so don‘t be too problematic. It might be a minimum of two and a maximum of three depending on the number of your class. Choose someone whom you know you can depend on, has initiative, and a person you can enjoy his/her company for the rest of the two semesters. He may not be the most brilliant one in your class but at least responsible and analytical. Be sure to avoid arguments because these petty fights might distort your relationship as a thesis group.

TOPIC. The topic must be the interests of the whole group not just you alone. Let each member suggests there preferred one. Consider this topic as your partner whom you need to defend and which you could devote your full attention. Avoid having a ―What if‖ thesis topic, choose a topic with social relevance and as much as possible choose a topic which incites curiosity to you and your thesis mates. READ! READ! READ!. Nothing beats the habit of reading. You are ought to read for at least 40 journals. It is not exaggerated. You should have back-up for every input you utilize in your thesis. Remember to avoid plagiarism. If you want to employ a stunning introduction and literature review, start as early as possible. Reading has a cost. It‘s the opportunity cost you gain instead of playing Dota or Facebook. CONSULT OFTEN. Seek and you shall find the answer. Don‘t be hesitant to ask questions from your thesis adviser. He/she may not answer all your queries but their comments and suggestions are big help to enhance your thesis.

ECONOMETRICS AND EVIEWS. Appreciate these two fundamental too for thesis. If you have heard from your seniors such question as “nakapag-run na kayo?” Don‘t be surprised, we‘re just doing our Eviews or running a regression model. Listen carefully to your metrics lecture professor and to every detail given by your Computer laboratory professor because for sure „mangangapa ka‟ if you don‘t master it. Research is fun. Don‘t take it as burden because you are able to visit various government agencies and institutions as well as meet hundred of people. The best part is the ‗bond‘ you create with your thesis mates and the sleepless nights together. Research may be just another 3-unit subject but undeniably it would eat a lot of your time and even decrease your leisure level. Get ready, creating something substantial which could be useful in the near future is what you can be proud of.

Indulge...Cont. of Page 4 JPES is an interschool affiliation of UST EcoSoc. It is also the junior arm of the Philippine Economics Society and serves as the umbrella organization to the

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various schools such as De La Salle, UP, Ateneo, UA&P, UE, PLM, and many more. The aim of the annual event as always is to promote camaraderie among

members and to be more familiar about the other member schools. It also served as a kick-off party as they present their upcoming activities for this school year like the debate


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Korean Diaspora by Hazel Allam

Boys Over Flowers

My Sassy Girl, Windstruck, A Moment to Remember, 200 Pounds Beauty, A Millionaire‘s First Love, She‘s on Duty…few of the Korean movies I have watched. Aren‘t surprised? Sounds familiar right? Maybe because you have been hooked with Koreans since the two giant stations televised dubbed ―Koreanovelas‖ like Endless Love, Lovers in Paris. We can‘t deny the fact that we‘re seeing Koreans just around the corner. Even here in our college, we have number of Korean enrollees just like when I was in high school. How could I forget this Korean schoolmate when there was a time, he slept in a certain class because the subject was Filipino. Funny though, but several days have passed he began to appreciate every activity in the class. He

is just one of the few Koreans who outnumbered other tourist visiting Philippines. According to the Ministry of Foreign Affairs and Trade, approximately 115,400 Koreans are living here which is 151% increase since 2005. They are mostly found in provinces of Bacolod, Cagayan de Oro, Cebu, Davao, Ilo-ilo and of course in Metro Manila. Korea is just four hours plane that‘s why no wonder Koreans frequently visit and can easily access to Philippines. Also the promotion of Department of Tourism was a great influence. Through its budget, promotion was made through advertisement in Korean newspapers and television. Their influx has brought booming industry in schools teaching English. This is one of the reasons why they stay here apart from the low cost of living. Additionally, we have many schools and universities who cater for exemplary quality in teaching English. Undeniably, our food taste, fashion sense and culture have been greatly influenced by Koreans. Also the phenomenal

―Nobody‖ by Wonder girls has just gained popularity in a span of weeks since it was launched here. Koreans are not just tourists or visitors but as well as young professionals, traders, investors and even missionaries serving social activities in some rural areas. There has been positive externality since through Foreign Direct Investment; employment is given among our laborers a developmental assistance to our economy. It only shows an exchange of resources like capital and labor as Korean Companies outsource their operations here in the Philippines.

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BUILDING WEALTH WITH STOCKS: Investing in the Philippine Stock Market WHY INVEST? “Investing is the most effective way to build your personal wealth and secure your financial future.” There are many reasons why you should invest your money. Investments are made to generate future purchasing power that will keep ahead of inflation and provide investors a sense of financial security. You can achieve your financial goals for your different financial needs over different time horizons like buying a house, paying for your child‘s college education, and setting aside for your own retirement. The first and best way to start investing is by saving money. Always pay yourself first. Every time you receive your salary or profits from your business, set aside or keep some of that money, and invest it or put it in a bank. Rather than wait for the end of the month to see what is left for savings, at the beginning of the month write a check to your investment account. You should start a monthly savings plan so you can have your income work hard for you. Over time, small amount of savings become substantial. Investing is the ability to make your savings grow or appreciate to achieve your long-term financial goals. Investing is the most effective way to build your personal wealth and secure your financial future. WHY INVEST IN THE STOCK MARKET? “Over the long-term, stocks provides greater returns and protection against inflation.” History has proven that investing in stocks over the long-term provides greater returns and protection against inflation than other fixed-income instruments, such as saving rate, time deposits, government securities, and bonds. Stocks are shares of ownership in a corporation. When you buy stocks of a publicly listed company, you become a stockholder or shareholder of a company. In other words, you become part-owner of that company. As an owner, you participate in that company‘s growth and future profits. Conversely, you may also lose if th e company suffers a loss or performs below market expectations. A stock market is a place where stocks are bought and sold. The Philippine stock market is the place where people can invest in ‗publicly listed‘ companies in the Philippine Stock Exchange (PSE). HOW DO I MAKE MY MONEY GROW IN THE STOCK MARKET? “Through capital appreciation or when there an increase in the market price of your stock and through dividends issued by the company you invested in.” There are two ways to make your money grow in the stock market: 1. Through an increase in stock price or capital appreciation Capital appreciation is an increase in the market price of your stock. It is the difference between the amount you paid when buying shares and the current market price of the stock. However, if the company doesn‘t perform as expected, the stock‘s price may go down below your purchase price. For example, if you buy a share of stock at Php100.00, and it rises to Php110.00, your capital appreciation or gain is Php10.00. Keep in mind, though, that you only realize your gain of Php10.00, if you sell at Php110.00. If you choose to hold it and it further increases to Php150.00, your capital gain would be Php50.00. However, if your stock decreases to Php100.00 then sell it at that price, your capital gain is zero. TURN TO PAGE 14 EQUILIBRIUM0910


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Pinakamababa sa Loob ng 22 Taon: 1.5% Inflation Rate, Ramdam nga ba ng Pinoy? Isa sa mga nakakagulat na balitang ibinida ni Pangulong Arroyo sa kanyang huling State on the Nation Address (SONA) noong Hulyo 27, ay ang record breaking na 1.5% inflation rate, o ang porsyento ng pagbabago sa presyo ng mga bilihin, nitong Hulyo. Mas mababa ito kung ikukumpara sa 3.3% na naitala noong Mayo, at siyang itinuturing na pinakamamaba simula Abril 1987, na kung saan ang implasyon ay 1% lamang. Itinuturing na malaking kontribusyon sa pagbaba ng implasyon ay ang negatibong paggalaw ng index ng gasolina, kuryente at tubig (o fuel, light and water ―FLW‖ index), kasabay ang pagbaba rin ng presyo ng iba pang mga bilihin. Kung tutuusin, lahat nga ng commodity groups na nasa talaan ng National Statistics Office (NSO) ay kinakitaan ng pagbaba ng porsyento sa taunang implasyon, kung ikukumpara noong Mayo. Samantala, nagtamo ng negatibong porsyento ng taunang implasyon ang National Capital Region (NCR) kung ikukumpara sa pinagsama-samang implasyon ng iba pang mga rehiyon ng bansa. Nitong nakaraang Hunyo, ang NCR ay nakapagtala ng -0.1% kumpara noong Mayo na 0.8%. Kung titignan naman ang pinagsamang implasyon ng ibang mga rehiyon, bumaba din ito mula 4.2% noong Mayo hanggang 2.2% na lamang. Tulad ng mga nabanggit na datos ukol sa headline inflation rates ng bansa, ay makikita ring bumaba ang core inflation rate (hindi kabilang ang petrolyo at ibang pagkain) mula 4.4% noong Mayo, na naging 3.9% naman pagdating ng Hunyo. Ngunit kung ikukumpara ito sa nauna, kapunapunang mas malaki ang ibinaba ng headline inflation rate kaysa dito sa huli. Ngunit bago natin ipagdiwang ang bagay na ito, mas maiging tignan muna natin kung gaano kalaki ang epekto nito sa atin bilang mga mamimili, at maging ang mga implikasyon ng pangyayaring ito sa pangkalahatan Naniniwala ang mga ekonomista na ang mababang porsyento ng implasyon na naitala nitong Hunyo ay dulot lamang ng base-effect na sanhi ng 11.4% na implasyon sa pareho ring buwan noong nakaraang taon. Malaki rin ang naging kontribusyon ng sunod-sunod na pagbagsak ng presyo ng krudo nitong mga nakaraang buwan, at maging ang pagbaba ng presyo ng ilang pangunahing pagkain tulad ng bigas upang lalong bumaba ang porsyento ng implasyon. Kung tutuusin, masasabing maraming mamimili rin ang nakikinabang

sa tuwing bumababa ang presyo ng mga pangunahing bilihin. . Magandang balita rin ito para sa mga namumuhunan sapagkat ayon sa gobernador ng Bangko Sentral ng Pilipinas (BSP) na si Amando Tetangco, ang implasyon ay nagbigay ng pagkakataon na mas mapababa pa ang interest rates ng gastos sa paghiram ng pera o borrowing costs. Sa katunayan, BSP ay bababaan pa ang kanilang monetary settings ng hindi bababa sa 25 na puntos na siyang magbababa naman sa kanilang overnight borrowing rate ng 6% at lending rate ng 4%. Subalit, ang sobrang babang implasyon ay hindi rin masyadong nakabubuti para sa bansa. Sang-ayon ito sa pahayag ni Cielito Habito, dating National Economic and Development Authority (NEDA) director general at kasalukuyang direktor ng Ateneo Center for Economic Research and Development, na sinabing ang pangyayaring ito ay indikasyon ng pagbaba ng demand sa pagkonsumo ng maraming Pilipino. Nakikinikinita rin ni Habito na sa mga susunod na mga buwan ay muling tataas ang implasyon lalo pa‘t unti-unti na namang tumataas ang presyo ng petrolyo sa pandaigdigang merkado at malapit na rin ang lean months para sa agrikultura, lalo na sa produktong bigas. Sang-ayon din sa bagay na ito si Benjamin Diokno, dating Budget Secretary at ekonomista mula sa University of the Philippines. Ayon sa kanya, tataas muli ang implasyon matapos maka-ahon sa pagkalugmok ang pandaigdigang ekonomiya. At isa rin sa mga nakikita niyang dahilan nito ay ang pagtaas ng mga produktong petrolyo. Nakikita rin niyang maaaring magkaroon muli ng krisis sa pagkain sa panahong iyon. Sa puntong ito, kung tatanungin mo naman sa partidong Kilusang Mayo Uno (KMU) ukol sa epekto ng pagbaba ng implasyon sa ordinaryong Pilipino, masasabing ang datos ng NSO ay nakakalinlang. Ayon kay Roger Soluta, deputy secretary-general ng KMU, wala namang pagbaba sa pangkalahatang presyo ng mga bilihin sa mga nagdaang taon. Inilahad din niya na lumabas sa IBON Foundation survey na karamihan sa mga kababayan natin ay hirap bumili ng sapat na pagkain at serbisyo ng tranportasyon. Nananatili rin diumano, ang presyo ng isang kilo ng bigas na nagkakahalagang P35 hanggang P40, sa kabilang banda, ang presyo naman ng baboy at gulay ay

walang pagbabago. Isa pang punto ni Soluta ay ang hindi pagkumpara ng NSO sa antas ng sweldo ng mga mamamayan at sa porsiyento ng implasyon sa buwanang report nito. Ang mga pahayag na ito ng KMU ay sumasalamin din sa bagong sarbey ng Social Weather Stations (SWS) na inilabas noong ika-4 ng Agosto. Ayon dito, ang median poverty threshold (o ang buwanang badyet na kailangan ng mga mahihirap na pamilya upang masabing hindi sila mahirap) ng mga mahihirap na pamilya sa Metro Manila ay nanatili sa P10,000, na hindi nagbago simula Setyembre ng 2007, at tila hindi naapektuhan ng pagbaba ng implasyon. Indikasyon na mas bumaba pa ang antas ng pamumuhay ng mga Pilipino. Sa kabuuan, lumabas sa naturang sarbey na patuloy na naghihigpit ng sinturon ang karamihan sa mga Pinoy sa kabila nang patuloy na pagbaba ng mga bilihin. Sa yugtong ito, masasabing maraming nakikinabang sa pagbabang ito ng implasyon sa bansa lalo na sa ating lahat na mga mamimili. Sinasabing maganda rin ito para sa ekonomiya ng bansa, sapagkat mas maraming maeengganyong mamuhunan dulot ng mabababang interest rates na ibinibigay ng mga bangko. Ngunit, ang mababang presyong ating tinatamasa sa ngayon ay nagbabadya rin naman ng masamang ibubunga sa ating ekonomiya sa kalaunan. Isa na rito ay ang mas lalong pagtaas pa ng mga bilihin sa mga susunod na buwan dulot ng paglakas ng pandaigdigang ekonomiya at pagtaas ng presyo ng langis, na isa sa mga pangunahing raw materials ng karamihan sa mga produkto. Ang napipintong pagtaas porsiyento ng implasyon sa mga susunod na buwan ay maaari ring sanhi ng pagdami ng perang imiikot sa loob ng bansa dulot ng labis ng pagpapa-utang ng mga bangko. Kung iisipin, maaaring ang pagbaba ng presyo ng mga bilihin ay indikasyon pala ng pagtamlay ng ekonomiya dulot ng sobrang konti ng demand, sanhi ng labis na pagtitipid ng mga Pinoy, na kasabay naman ng pagdami ng suplay ng mga bilihing ito. At sa panig naman ng mga prodyuser, mas pinipili na lamang nilang bawasan ang presyo ng kanilang mga produkto upang maging mabili ito. Kung ang mga ito lang din pala ang mapapala nating mga mamamayan sa sobrang babang inflation rate na ating tinatamasa sa ngayon, ikagagalak ba natin ito? At kung bumaba nga ang presyo ng ating mga bilihin, naramdaman naman kaya natin ito? -Ronamil Portes

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Ma. Cara Myrrh F. Santos Dec 1, 1989 President If you were a term used in economics, what would it be and why? Pareto Improvement. I try to make myself better off without making other people worse off. I can achieve my goals and be successful without stepping into other people‘s dream.

Sandra G. Osoteo Nov. 4, 1989 VP for Internal Affairs

Paolo Roces June 26, 1987 VP for External Affairs If you were a term used in economics, what would it be and why? Tax because I generate what is needed

Ma. Aufel S. Geronimo July 19, 1989 Socio Apostolate Directress

Ara Mae S. Sandoval May 11, 1989 VP for Administrative Affairs

If you were a term used in economics, what would it be and why? Economics because as an individual, I try to allocate my scarce resources in an efficient way.

Intermediate good, because I am the type of person who always makes use of my good values as a means of bringing out the best out of my relatives & friends.

Marginal utility because I derived additional satisfaction or make sure that my well-being increases in all my activities.

Caroline Mae C. Uy Sept. 2, 1989 VP for Treasury

Jayson C. Rupa Apr. 13, 1989 VP for Internal Audit

Public good because I serve my fellow ECOSOC members nonexclusively and I view things evenly. Every one can approach me if they need my help when ever

Subsidy. Being a subsidy is somewhat related to charity for I am willing to give and share what I have in excess without asking for something in return.

they need me. evenly.

Inna Camille V. Villanueva Oct 14 1989 VP for Promotions & Communications Elastic. As a modern day economist, I could master the art of balancing my academics & extracurricular activities

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Judith Ann M. Esguerra Jan. 13, 1989 Wits Circle Directress AUTOCORRELATION, my accomplishments, failures are escalated through my connections of the people around me. I like to influence others.

Fidez Angelica T. Mendoza Oct. 29, 1989 Socio Apostolate Directress Invisible be and because even without government intervention, the market still manage to operate. Furthermore, I can help people without them knowing it and I do it without asking for anything in return.


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Sherilyn L. Lui Feb. 9, 1989 Wits Circle Directress

Angelo B. Meija March 1, 1989 Sports Director

Equilibrium because I want to balance all things, especially now that I‘m a student leader, I want to balance my academics and organization.

Elasticity. I am very responsive to changes. I tend to adapt to these changes fast. School works, peers and extracurricular activities? Bring it on!

Monique Temarie D. Policarpio Dec. 1, 1989 Powertalks Directress

Jeffrey S. Gelie Sept. 14, 1989 Sports Director

Autarky because I can survive or continue activities without external assistance. I‘m independent and can accomplish things without the help of others.

Elastic because I could easily adjust to a different situations that are coming in my life. Many difficult challenges could occur yet I know that I can surpass that trials.

Giffen good because as my price increases, my demand increases. I am an exemption to the rule.

Jolan M. Magbojos October, 28, 1989 Socio Cultural Director

Economies of scale- I‘m a hardworking person and I always look for excellence. Whenever I work, I always make sure that the output of my work will surpass the effort I exert.

Ma. Fides Gamit Aug. 16, 1989 Social Events Directress

Luigi Anton E. Gavino March 1, 1990 Ways and means di rector

Positive externalities because by being a role model I can affect others by being a good influence.

Sheila Mae Naghisa L. Amorsolo October 23, 1988 Socio-Cultural

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Equilibrium. I‘m an extreme believer of balance.

S Steven Josh Unite January 27, 1990 Social Events Director Comlementary Good because I hate being lone and I am more efficient when working as a team.

Lorezze B. Antenor Mar. 1, 1989 Powertalks Directress Inelastic because it‘s really difficult for me to adjust or adapt to changes, particularly environmental changes and even when attitudes of people around me change.

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Equilibrium Editorial Staff Lucette Grace O. Gotinga Editor-in-Chief Hazel Allam Associate Editor Monette T. Gan Managing Editor Ronamil Portes Sandra G. Osoteo Features Editors Joanna Therese Lopez Kai Lyndel Rabang Literary Editors Stacy Jane Baldovino Layout Artist Marvin Reglos Head Photographer Isabelle Louise Burac Karen Vidar Kristine April B. Vergara Photographers Christian Joseph Lacia Marinelle Marron Artists Jason Kristopher Comia Shalom S. Makasiar Kristine Distor Writers James Raymond Ngo Rolando R. Santos Jr. Contributors

Lucy Philosophy: On Equity and Fairness Equity and Fairness. That is two of the countless terms that revolves around on our so-called ―econ world‖. But do we really perceive the true essence of equity and fairness today? Recently, the Philippines was struck by the news that Her Excellency Gloria Macapagal-Arroyo and her entourage dined out at an expensive restaurants; Le Cirque and Bobby Van‘s Steakhouse. The said dinner amounted to a whopping $20,000 and $15,000, respectively! This news initiated the Filipinos‘ outrage. I see that there is no reason to blame the people for having this reaction. We all have the right to be mad if the money used to pay the lavish dinner was from the money of the Filipino people. Imagine, the amount of money paid for the said dinner could be into projects that would benefit more people. Funny it may seems that conscience did not even bother the hearts of the president and the other govern-

ment officials during their festive dinner or maybe it is evidence that they do not have one: Conscience and a heart. They did not even care to think of their constituents, the people who voted for them to be in there present position, the people who worked hard to earn money for the sake of having something to eat. Even if Pres. Arroyo and her entourage paid for the dinner out of their own pocket, a little delicadeza would have been called for in these times of economic woes. This is one of the few things that made me wonder and look for the quintessence of equity and fairness. Because of the fact that I‘m sharing my opinion regarding equity and fairness then let me be fair of telling the other side of story. According to Press Secretary Cerge Remonde, all the news regarding the dinner was a ―gross exaggeration‖ only. He also stressed that ―not a single centavo of taxpayers‘ money‖ was used to pay for the dinner. He said Leyte Rep. Ferdinand

Martin Romualdez was the one who hosted and paid for it. After taking both sides of the story, do we the Filipinos deserve the truth? Yes. Definitely, we all deserve a straightforward answer from Her Excellency and her government officials. We all deserve the truth, or else we would be all left out in search for what is the truth and then another issue would come out and then the PGMA‘s million dollar dinner would be erase in the Philippine history. It is given, an exogenous fact that politics cannot be equated with equity and fairness. Regardlesss of this issue, I still do believe that there is still equity and fairness in this world it is just that there is something that hinders it: greed, greed for money, greed for power and all sorts of greed. ***It is not the liability of the masses that they are in the dark; it is for the reason that the enlightened ones didn't care enough to share the light.

Hazel Allam: On Commuter’s odyssey Early morning, as I am off to road, I noticed some disruption. There are men in gray talking to some drivers of private and public vehicles. I guess they are caught for traffic violation. In everyday that I commute along Marcos Highway, I observed that there are a number of times, the FX or jeep I rode in was unfortu-

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nately caught for violation which I am not familiar of. Disgusted by the congestion on road but more disappointed with the cops or traffic enforcer dispersed on streets. These individuals were trying to pretend that they are doing their assigned task but actually, exercising distortion or more popularly known as

‗kotong‘ (no offense meant to those who have parents or relatives of such, I am not generalizing all). This event is part of the lives of people and throbbing most specially to drivers, operators and owners of


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public utility vehicles. After the driver conversed with the „kotong cop‟, a passenger asked how much he has given and the dismayed driver answered with bad mouthing. Another passenger would say,”pang meryenda n‟ya lang yun”. I can‘t blame the driver for he earns enough or sometimes insufficient to feed his family and then a greedy enforcer would just take away such amount. It‘s like being a thief but in a more mannered way, taking your money without your consent. In situation like this, we can‘t do anything right? How poor. Reporting to police or exposing it to media may be

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helpful but after several days, back to the same old thing. Even the so called ‗barkers‘ are sometimes pain in the neck to drivers and have causal relationship with this scenario. I pity the drivers who are dying to get passengers and driving hard on the road and eventually a barker, would just reduce their boundary. The small amount mean a lot even if it‘s “barya lang‖. Being a barker is a noble work but their image is continuously tarnished by some who took advantage of it. A few even ask for large amount where in fact their job is to get the attention of passengers, a mere less intensive work compared to driver.

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This only shows how poor our system is and that it is hard for us to eradicate such problems. The plight of every Filipino like higher unemployment, poverty, and malnutrition is undeniably still unresolved. We may not be in politics to propose a reform or pass a bill but discipline on our selves is what we need. Let‘s all be vigilant and look for probable solution to ensure the public‘s safety. We all live under the same roof. Be involved. Be a solution, not an additional problem.

Monette Gan: On Quantity VS. Quality for Education “Education is important for the youths, as youth is the hope of our nation.” Education is very important for us to gain knowledge, inculcate the forms of right conduct and obtain technical skills. This serves as our way to develop oneself physically, psychologically and socially. Attaining a quality education is a custom design that addresses the unique abilities of each student and has a positive emotional experience. According to the Constitution, the State should protect and promote the right of all citizens to quality education at all levels and to take every means to make possible that education is available to all. However, our country cannot suffice both the quantity and quality of education that is why quality of education is being compromised for quantity. Today, according to the education statistics, for every ten (10) children who start their primary education, only six (6) are fortunate enough to continue with their secondary education and only four (4) can manage to pursue into college. I think the most important issues that our government must give more attention into are the following: the quality

of education, affordability of education and government budget for education.

experiencing of the lack of rooms, chairs, tables and books? Due to lack of rooms, many classes are held at a multi-purpose Every year, there is a rampant covered court with partitions where four to increase on the number of students that five classes are ongoing. With this incomare forced to transfer from private school petency, the result is that children cannot into a public school due to financial cri- cope up with their lesson and being left sis that most people are experiencing behind which should not be the case beespecially because of the yearly increase cause our government should do something in tuition fees. About 95 percent of all about this. elementary students are attending in public schools. The educational crisis in the The economic development of a Philippines is basically a crisis of quality nation is a function of the quality of its of education in public schools. How education. In which, the more and better could a public education system provide educated a person is, the higher the a quality education to their students if chances for a country to achieve an ecothe ratio of teacher to student is 1:60 but nomic development. In addition to that, the ideal ratio is one (1) teacher is to with proper education, it will serves as the twenty-five (25) students? means to bring about the desired change in society, to develop a generation of upright The Department of individuals and thus contribute to the deEducation (DepEd) receives the highest velopment of good human beings. Having proportion of the budget from the gov- many skilled laborers in our country, it will ernment for them to provide a good edu- be a great help for us to achieve an ecocation and to guarantee that teaching will nomic growth as well and surpass the ecoattract and retain its rightful share of the nomic crisis that our country is facing up. best available talents through sufficient compensation and other means of job satisfaction and fulfillment. Still, why is it that students from public schools are


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Lucette O. Gotinga Dec. 13, 1988 Equilibrium Editor-inChief Homoskedastic which means constant variance. I homoskedastic in a sense that I firmly believe on what is right. In every task that I do, I always commit my fullest effort on it “parang kung ano ang sinimulan ko, tatapusin ko”.

Rose Z. Cruz March 19, 1989 Promotions and Advertising Directress Sin Tax. I‘ll always be a barrier against alcohol and cigarette

Ma. Fee Kristine S. Hung Nov. 23, 1987 JPES Internal Directress Trade Bloc because interaction with different personalities is one of my interests. I prefer to work in a team for it's more fun

Irish Rosanne M. Pullante Philces Directress Structural Instability because there are many significant changes that always happen in my life.

Abby Cabatay June 7, 1990 JPES-Executive Vice President Optimal because I‘m the type of person who strives to seek the most desirable and favorable outcome in every situation.

BUILDING WEALTH, CONT. of PAGE 8 Through dividends declared by the company Dividends are paid out to shareholders, representing earnings of the company that is not going to be reinvested in their business. There are two types of dividends that can be given by companies: cash and stock dividends. Cash dividend is the earnings for every share of stock declared by the company. So, if the company declares a dividend of 25 centavos per share, a stockholder with 10,000 shares will receive a cash dividend of Php2,500.00 (Php0.25 x 10,000) in cash. Stock dividends are additional shares given to shareholders at no cost. If the company declares a 25 percent stock dividend, a stockholder with 10,000 shares will be entitled to an additional 2,500 shares of stock. These shares can also be sold anytime after the shares have been issued. HOW CAN I CONTACT THE PSE? If you would like to know more about the stock market and the Philippine Stock Exchange, you may visit or call the PSE Public and Investor Relations Section at the G/F PSE Centre, Exchange Road, Ortigas Center, Pasig City or through the PSE trunkline (632) 688-7600. You may also fax your queries at (632) 637-8818 or email to pirs@pse.com.ph. Orientation tours, free seminars, and visits to the PSE may be arranged by calling the Market Education Department at (632) 688-7537 to 39 or email marketeducation@pse.com.ph. Exchange visits are accommodated daily with prior arrangements.

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CHIZMISAN: An Economic Forum on Social Transformation In the midst of the country‘s political disturbance, one prominent person stood up and voice -out the youth‘s participation for our country‘s betterment. This is none other than Sen. Francis ―Chiz‖ Escudero. It was on the 8th of July when he held his forum at his Alma mater, U.P Diliman. As regards to this, he tackled out the 9-point agenda concerning not only the political issue but also the social and environmental issues. These are corruption, investments, education, health services, social safety nets, environmental sustainability, job opportunities & competitive advantage, and Nationalism. To give you some ideas about these, here are some points that have been discussed. Corruption: According to Sen. Escudero, this is the byproduct of bad governance. As a matter of fact, there‘s an estimated value of Php 400 Billion gone in our national budget on account of corruption. Half of which came from the BIR, a quarter from the Bureau of Customs, and the rest is from the other government sectors. How can we erase this? Here some solutions as suggested by Sen. Escudero: First, Increase the salaries of the government officials. People in pub-

lic service will tend to be less corrupt if they are satisfied with what they gain. Second, put first the public officials that are corrupt. We should never give special privileges to our officials once they‘re proven guilty. This could become a warning to those who wants to follow their footsteps. Third, Increase of accountability and transparency. Whoever is in the position, his projects must be observed by the public and not just mere promises alone. Fourth, know the functions of the agency that has discretions. We should know the core of problem so the rest won‘t be taken for granted as the like. And lastly, establish a corruptfree area in the government. If each district here in our country will be like this, then Philippines as-a-whole would be a corrupt-free country. Investments: Government neglect to invest in some necessary assets of ours. Amidst of this is the education. It‘s even written in our own constitution that education should have the biggest allocation of our national budget. If you‘ll ask, why do we still have poor quality education knowing this fact? It simply because the government includes some what-they-call education-

related investments that really must be under to other expenses. Another one will be the agrarian sector. Looking back, Philippines was one of the major exporters of rice. But now, we‘re one of the major importers. The government tends to invest more on road projects rather than the irrigation needed. Our senator said, ―Ang magsasaka, sa bawat tubig na dumadaan sa kanyang irigasyon, ay nagbabayad ng mahal. Pero ang isang mayamang tao kapag gumamit ng kalsada, wala siyang binabayaran.‖ This shows the irony of it. Nationalism: Jose Rizal once said, ―Ang kabataan ang pag-asa ng bayan.‖ But to our dear senator, this is not the way it should be. Because if we say the word ―pag-asa‖, we are referring to a future time, a specific place, an individual who‘s still needed to be honed. Rather than saying this, we should say that ―Ang Kabataan dapat maaasahan ng bayan.‖ Our role as youth should be played not tomorrow but rather now. We play an important role to the society. As future movers of this country, we have the task to build a better nation as a gift for next generation to be.—Kris Comia

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Breakaway: Take the Chance. Dare to Stand Out. The 2009 Mr.and Ms. Ideal Thomasian Economist Pageant Hazel Allam, Monette Gan, Lucette Gotinga Last September 3, 2009, the economics students have witnessed the true epitome of beauty, brains and talents in the recently held Mr. and Ms. Ideal Thomasian Economist. This year‘s pageant theme is ―Breakaway: Take a Chance. Dare to Stand Out‖. The contestants astonished the crowd with their dazzling casual and corporate attire. They also showcased their exemplary talents. Mr. Franz Erik Mangalindan of 3E1 and Ms. Jansennia Marie Mecayer of 3E1 were awarded as the Mr. and Ms. Talent. The Best in Casual Wear title goes to Ms. Jezzelene Ferrer of 3E3 and Mr. John Martin Villarama of 3E4. Mr. John Martin Villarama of 3E4 and Ms. Djana Kashmere Herrero of 4E2 were crowned as the 2009 Mr. and Ms. Ideal Thomasian Economist. Mr. Luigi Gavino of 4E3 and Ms. Joanne Paula Laguna of 3E4 took the first runners-up position. Mr. Aldrin Atienza of 4E4 and Ms. Jansennia Marie Mecayer of 3E1 were proclaimed as the second runners-up. The winners of the Mr. and Ms. Ideal Thomasian Economist would represent the Economics Department for the 2009 Mr. and Ms. Commerce Personality. Let‘s get to know more of our newly-crowned Mr. and Ms. Ideal Thomasian Economist.

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1. What were your preparations for the Mr. and Ms. Ideal Thomasian Economist? DJANA: I had lots of practice para di mapahiya and also I was

Econ spirit. J: Knowing Eco mahirap na major, parang nakuha pang ilagay sa priorities. Biglaan kasi yung pagkapili so saglit lang kaya todo prepare. parang andun yung fact na despite the busy sched e kaya pa ding magparticipate sa mga extracurricular activities. 4. As the Mr. and Ms. Economics, how will you set as a good example to your fellow ekonomistas?

busy looking for clothes to wear JOHN: Practice, particularly for talent portion and also avoiding ‗pagpupuyat‟ 2. Did you expect that you are going to win the Mr. and Ms. Ideal Thomasian Economist title? D: No! No! I never expect it. Seryoso. But it was a fun experience. Fourth year na rin eh, so when I was voted by my class, I agreed. J: I also didn‘t expect it kasi I was chosen so di na ako tumanggi. Ayun, I was there to enjoy and indeed, I was very happy. 3. Now that you were crowned as Mr. and Ms. Economics, how could you prove to others that you deserve the title? D: I guess, kung may makakaki ta sa „kin or tatanungin ako about Eco, I could explain it in layman‘s term. Parang di lang pangpageant… kundi nasa ‟yo ang

D: By being balanced in everything and by applying in life what I have learned. Di naman kailangang sobrang active basta isapuso yung pagiging eco. J: Through my actions, yung mentality na positive lagi and grabbing the opportunity ‗cause you‘re learning something new that you benefit or that will payoff in the long run. 5. What are your preparations for the Mr. and Ms. Commerce Personality? D: By trying to prepare emotionally and financially. I devote my time rehearsing and also researching some questions, proper posture and techniques used in pageants. J: Practice din because this is a bigger stage kasi MMCP na yung pinag-lalabanan e and time talaga for the pageant.. *In the recently held Mr. Ms. Commerce Personality Pageant, Ms. Herrero was rowned as the new Ms. Commerce Personality while Mr. Villarama won as the Mr. Commerce 1st Runner-up


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4E2 hailed as the Interclass Debate Champion!

The Economics Society held its interclass debate entitled ―Pros E-Cons: The Interclass Tournament 2009‖. Different teams vied for the prestigious title for being the best debate team. Among the debate teams, the 4E2 team emerges as the tournament champion followed by teams from 4e4 and 4e3. The 4E2 debate team members are Mr. Joseph Daniel Quinitio as the Prime Minister, Mr. Richmond Lawrence Yu as the Deputy and Ms. Marianne Eguia as the Whip. Mr. Quinitio was a firsttime debater in the team. He

underwent training with Ms. Erika Nicolas, the Commerce Parliament Intermediate Past Prime Minister. He‘s usual preparation for debate is by staying cool and just doing normal stuff that he does. He admitted that he feels jitters and his hands get cold at the start of the debate but very relieved after the event. The chemistry of argumentsupplemented by each other is their edge over the other team, as what he believes. Perhaps, being a first-timer, he‘s really amazed the way their team handles the debate.

Ms. Eguia is the current Auditor of the Commerce Parliament. She‘s also a participant in last year‘s Eco inter-class debate together with Mr. Yu and bagged 2nd place. Ms. Eguia whose ideas are continuously flowing once the floor is given to her, is an asset in their team according to one of her co-member. Her being goal-oriented and competitive boosts the team‘s confidence. She advises aspiring debaters to be informed of the current news, be trained and also to ―join COMPAR!‖

Best Debate Speakers Albert Gozon (4E1) Marianne Eguia (4E2) Richmond Yu (4E2) Andrea Aguilar (4E3) Monsour Saguimo (4E3)

Jennifer Young (4E4) Bianca Balajoro (3E1) April Maligayo (3E4) Lenard Sumalde (3E4) Daniel King (3E5) Debate Team Winners

Champion: 4E2 On the other hand, Mr. 1st Runner-Up: 4E4 Yu is very persevering since he want to do his best compared to 2nd Runner-Up: 4E3 his last year‘s performance. CONGRATULATIONS According to him, their strategy is that the first speaker cointegrates with the second speaker, intensive brainstorming, coordination and organization of thoughts. Their strength as a team is that Mr. Yu and Ms. Eguia is very well experienced in debate while Mr. Quinitio is a promising debater.


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THE IMPACT OF MIGRANT REMITTANCES ON CONSUMPTION, INVESTMENTS AND IMPORTS: A PHILIPPINE PERSPECTIVE

T H E S I S A B S T R A C T

Don Pietro Azurin, Vanessa Jacob, Primo Bernardo, MBA

Abstract Philippine labor migration has been saving the country‘s economy for many years. Consequent to a continuous outflow of migrants was the rising tide of remittances, which reached historic highs in 2006. To date, Overseas Filipino Worker (OFW) Remittances have surpassed levels of Official Development Assistance and Foreign Direct Investment to the Philippines. Compensation from aboard believed to boost income of the receiving household, therefore a potential tool for development. The researcher‘s primary objective was to determine if remittances were significant in explaining movements in domestic consumption, investments and imports. Supporting this objective was the extraction of ShortRun Marginal Propensity to Consume (MPC), Marginal Propensity to Invest (MPI) and Marginal Propensity to Import (MPM). These three figures quantitatively measured the potential increase in the three dependent variables, resulting from a unit increase in remittances.

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From these results the researchers were able to suggest policies aimed at maximizing the use of remittances for the welfare of migrants and their families. The separate models for consumption, investments, and imports were employed for this study. The research work by Glytsos (2005), in which remittance behaviors of five Mediterranean countries were evaluated, served as our main reference. The study drew theoretical foundations from the consumption theory of Keynes, trade cycle theory of Duesenberry, and the life cycle hypothesis of Ando and Modigliani. Regression analysis revealed that all of the models performed according to the theoretical assumptions and migrant remittances indeed play a significant part in explaining the changes in domestic consumption, investments and imports. This conclusion was supported by the t-test of each explanatory variable. Furthermore, the results by the F-test for each model showed that the three models are indeed signifi-

cant. The high coefficients of the multiple determination confirmed that variances in consumption, investments, and imports can be explained by the set of explanatory variables per model having 24 observations. The original regression outputs contained autocorrelation and multicollinearity problems. These were cleared after adding variable AR (-1). The researchers were also able to arrive at the conclusion that most remittances were utilized for importation. Though importation boosted domestic consumption, this remittance spending behavior had resulted to a relatively small impact to the domestic economy, as indicated by a multiplier of 1.005. Keywords: Migrant Remittances, Consumption, Investments, Imports *Awarded as The Best Thesis for Academic Year 2007-2008


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Economizing love By: Kristine Distor Some forefathers of Economics once said that humans are inherently pleasure seeking beings. Humans are in constant search of satisfaction. They always looked for things that could somehow redress their present needs and wants. Ceteris paribus, can we also say that, aside from God‘s, humans aren‘t capable of unconditional love? Economics is a social science. It is a study of ‗people‘. If so, theories, models, principles and laws of economics are therefore mere reflections of human behavior. For instance, the Law of Diminishing Marginal Utility states that, in a specific time period, each buyer of a product will drive less satisfaction from each successive unit of the product consumed. Could this law also be a justification why people, to some extent or to some point in time, be polygamous? Can this explain why a husband can sometime tend to look for other viand other than what is laid in the table? Or can it be just the same with when you keep on having the

Gulong Sa aking pagbaybay sa kalsada ng Tayuman, Ako‘y nakakita ng mga batang nag-uunahan. Sa una‘y aakalain mong nagtatakbuhan, Iyon pala‘y naghahanap ng pagkakakitaan. Sa aking pagsakay sa dyip papuntang España, Ako‘y nasabik sa pagpasok sa eskuwela. Ngunit kasabika‘y unti-unting naglaho, Imahe sa aking isipa‘y biglang nagbago.

same response from a person over and over again, after you‘ve done everything from him or her? Consumers will buy additional units, if and only if, the price of those units is progressively reduced. Can this explain why there are ‗martyr‘ wives or husbands? To some extent, can you really blame them? If yes, why so? Isn‘t it human nature? Just like the demand curve, price is just one factor; there are also nonprice factors or determinants of demands that affect the position of the curve. It is just the same as there are other factors that affect the behavior of a person regarding the matters of the heart. As costumer tastes and preference and income affects the demand curve, so as morality and culture affects human nature. These create the ―police effect‖. So, are humans capable of unconditional love? I‘d say, YES. Each of us is intended and designed for another being. Just like demand wouldn‘t have something to demand for if there‘s no supply. And that, somewhere, somehow along the curve and man‘s journey is equilibrium.

Worn out Joanna Therese R. Lopez I am the only one Whom you will love Through eternity It is not meant to be Plans were made All gone, swept away Who made this happen? It is hard to say Time is never enough To heal the wounds You let me go I move along Sorry, we said Still we accept Pain is what we feel Everything is surreal Letting hearts go Is never easy You love more Quite before It is time to go I will let go Hard I know I have to do so

TO THINK THE WHITE DOESN’T FADE By Kai Rabang Mga batang pagod sa pagtatrabaho, Tila sawa na sa kanilang estado. Nais sanang baguhin ang kapalaran, Ngunit pinipigilan ng kapalaran. Ito ang sakit na hindi magagamot kung ang tao‘y patuloy na makalilimot sa masamang bunga ng pangungurakot. Hangga‘t pansariling kaligayahan ang inuuna, Hindi makababangon ang ating ekonomiya.

To think the white doesn't fade, the purest and the brightest And everything else lessens-everything else, except these memories of you To think the stars shine forever, hanging up there, out there, highlighting the universe And everything else become inferior of the night-everything else, but your tantalized eyes To think these winds untiringly dance around me, bumping into my shoulders, whirling around my hair Carefree, almost And everything else becomes numb of me-everything else, but your stinging glances. To think the gods care about my being, showering blessings over my head, granting finite pages of my so-called life Everything else is non-sense to me apart from your existence To think these steady drops of rain make my lips frozen And everything else share their warmth with me, but you

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Equilibrium 1st Semester Issue