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Government-Business Relations in the Overseas Employment Program The Recruitment Industry in the Philippines: Government-Business Relations in the Overseas Employment Program Nathan R. Blank A thesis submitted for the degree of Doctor of Philosophy of The Australian National University i I certify that this thesis is my own original work. ii iii Acknowledgements This thesis could not have been written without the help and support of many people, a few of which I have endeavored to specifically mention here. Above all, I would like to thank my wife Vanessa whose patience, love, and support continually amaze me. Not only did she help with the transcription of over 70 hours of interview recordings, but she happily accompanied me (along with our children) in moving from the U.S. to Australia, then to Manila for five months, back to Australia, and finally back to the U.S. At moments of self- doubt, she has always fortified me with supportive words and actions. My children Liam, Jonas, and Adele also deserve gratitude for happily going along with the travels that have been necessary to accomplish this thesis, and for understanding why their dad is always working at his computer. My parents and in-laws also deserve a great deal of gratitude for their love and support throughout the years leading up to the completion of this thesis. I would like to extend my sincerest gratitude to my Ph.D. supervisor Paul Hutchcroft whose support, ideas, and encouragement have caused me to grow tremendously as a scholar. His feedback and advice helped immensely through all stages of this thesis. I would particularly like to thank Paul for first introducing me to the government-business framework, which ultimately played such a prominent role in how this thesis was conceptualized. Paul pushed me to settle only for my best work, and helped me to achieve it. I would also like to thank Katherine Gibson who first brought me to the ANU, without which I would not likely have been able to conduct field-work in the way that I did. It was Katherine who found a scholarship for me, acted as my first supervisor, encouraged me to stretch myself as a writer, and pushed me to achieve my goals. Finally, I must thank my fellow ANU Ph.D. candidate comrades-in-arms, Ann, Pyone, Tim, and Kelly for our lunchtime confabs where we offered encouragement and support to each other. iv The research for this thesis was collected over a five-month period in 2009 and 2010, during which numerous individuals and organizations assisted me in accomplishing my objectives. At the University of the Philippines, I would like to thank: Jorge Tigno for his advice and comments on an early chapter draft, Darlene Occeña-Gutierrez for facilitating my visitor status to the university as well as arranging accommodations for my family and I on campus, Jean Franco for helping me navigate the Philippine Senate subcommittees and archives, and Roanica Cabading who helped me crack the Philippine House of Representatives sub- committees. I would like to extend sincerest gratitude to those organizations and individuals in the Philippines who took time out of their schedules to speak with me. From the recruitment industry I would like to thank: Loreto Soriano, Victor Fernandez, Raul de Vera Jr., and Rene Cristobal. At the POEA Hans Leo J. Cacdac and Liberty Casco provided tremendous insight on a variety of topics. Rhodora Abaño at the Center for Migrant Advocacy went above and beyond in order to help me accurately capture NGO perspectives on the overseas employment program. Likewise, Ricardo Casco at the International Organization for Migration helped me understand the perspective of migration-focused international groups on government migration-related programs and policies. Edward Yulo at the Department of Foreign Affairs took time between travelling to meet with me, to which I am grateful. As mentioned above, major attribute of my experience in the pursuit of this Ph.D. thesis has been the need to move my family first from the USA to Australia, then to Manila for five months, back to Australia, and ultimately back to the USA where I completed the writing-up phase. My family and I were blessed to encounter many people who made our separation from extended family for the three year period in which we were abroad a pleasant v experience. We now consider these people life-long friends and our lives have been enriched by their acquaintance. In Australia the Fisher, Vellar, Shea, and Hill families, made us feel like a part of their extended families. We now consider their friendships our best souvenir from our stay in Australia. Likewise, in the Philippines, the Cacho family was wonderfully warm to my family and I, and we will cherish their friendship for years to come. vi vii Abstract No major country in the world is as reliant on migrant remittance flows as is the Philippines, with some 8-11 million workers overseas sending $17 billion back home each year. As important as these flows are to the Philippine economy, the export of labor has never been part of a coherent development strategy. At least 13 major government agencies are involved in matters pertaining to overseas Filipino workers, but the result is more of a patchwork of overlapping roles than a systematic regulatory regime. My thesis examines relations between these agencies and the approximately 1,500 recruitment agencies that are the key private-sector actors in facilitating overseas migration from the Philippines. Despite the importance of these agencies, no previous research has examined their role, their associational ties, or the nature of their relations with a range of government actors. Theoretically, my research contributes to debates within political economy on what roles the private sector and government have in pursuing and achieving national economic development objectives. Beyond this primary contribution, my research also provides insights into debates on alternative development strategies in developing states, the politics of international labor migration, and bilateral labor relations between states. The research for my thesis was gathered primarily across five months of fieldwork in the Philippines. While there, I was able to utilize multiple methods of investigation including interviews with politicians, bureaucrats, NGOs, business leaders, and international organizations as well as significant archival research. My thesis topic intersects with many research areas, including not only the politics of development and government-business relations but also state- society relations, structures of governance, foreign policy making, and international diplomacy. viii ix Table of Contents Statement of Originality i Acknowledgements iii Abstract vii Table of Contents ix List of Abbreviations xi Chapter One: Introduction 1 Chapter Two: Maximizing Migration: Theoretical Approaches to Government- 27 Business Relations in the Philippine Overseas Employment Program Chapter Three: Government-Business Relations in the Migration Industry, 1974 61 to 1994 Chapter Four: The “Humanization” of Labor, 1994-2001 91 Chapter Five: Government-Business Relations in the Overseas Migration Policy 141 Process, 2004-2011 Chapter Six: Making Migration Policy: Reflections on the Philippines’ Bilateral 205 Labor Agreements Chapter Seven: Comparative Approaches to Migrant Labor Programs 247 Chapter Eight: Bringing Government and Business together to maximize 277 developmental outcomes Appendices 309 Bibliography 317 x xi List of Abbreviations APEC Asia-Pacific Economic Cooperation APMRN Asia Pacific Migration Research Network ASEAN Association of Southeast Asian Nations BES Bureau of Employment Services BLA bilateral labor agreement BLES Bureau of Labor and Employment Statistics CEPD Council on Economic Planning and Development CFO Commission on Filipinos Overseas CMA Center for Migrant Advocacy COA Commission on Audit COMELEC Commission on Elections COWA Committee on Overseas Workers Affairs DBM Department of Budget and Management DFA Department of Foreign Affairs DOF Department of Finance DOLE Department of Labor and Employment DTI Department of Trade and Industry ECB Economic Planning Board EDSA Epifanio de los Santos Avenue EOI export-oriented industrialization EPB Economic Planning Board EPS Employment Permit System EPS-KLT Employment Permit System – Korean Language Test FAME Filipino Association for Mariners’ Employment Inc. GATT General Agreement on Tariffs and Trade xii GDP gross domestic product ILO International Labour Organization IOM International Organization for Migration IOs international organizations ISI import substitution industrialization JICWELS Japan International Corporation of Welfare Services JSL Joint and Solidary Liability MITI Ministry of International Trade and Industry MOA Memoranda of Agreement MOU Memorandum of Understanding NCPAG National College of Public Administration and Governance NEDA National Economic Development Authority NGO non-governmental organizations NIC newly industrializing economy NLRC National Labor Relations Commission NSB National Seamen Board NSO National Statistics Office OCW overseas contract worker OEDB Overseas Employment Development Board OFW Overseas Filipino worker OPAP Overseas Placement Association of the Philippines OWWA Overseas Workers Welfare Administration PASEI Philippine Association of Service Exporters Inc. PDIC Philippine Deposit Insurance Corporation PDOS Pre-departure Orientation Seminars PHILHEALTH Philippine Health Insurance Corporation xiii PMRW Philippine Migrant Rights Watch POEA Philippines Overseas Employment Administration RA recruitment
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