This post was recovered from an article last posted on 2014-09-21 16:30:57
UA&P 19th University Day Lecture – underscoring the strengths behind a weak currency
Dr. Victor Abola, this year’s University Day lecturer. Photo by CCO.
It is a common perception that a lower, stronger Peso to Dollar exchange rate is good for the economy. However, why do regional economic powers like South Korea have an exchange rate much higher than the Philippines (1,030 Won to USD 1), yet at the same time have much higher per capita income (USD 26,000 vs. USD 3,300 for the Philippines)? Associate Professor and Strategic Business Economics Program Director Dr. Victor Abola enlightened the UA&P community on this subject at the 19th University Day Lecture, held on August 15, 2014 at the Li Seng Giap Auditorium.
In his talk, Dr. Abola explained that while most Filipinos’ experiences of currency devaluation had been distressful due to abruptness and large losses in value, Japan, South Korea and China grabbed the opportunity to gradually decrease the value of their currencies, making their domestic producers highly competitive in export markets. He recommended that instead of focusing on strengthening the currency to lower interest payments on foreign debt, government financial policy should rather gradually devalue the Peso to benefit OFWs, promote job generation, and improve tax revenues.
The University Day Lecture was also graced by the Academic Research Awards. This year’s winners were Dr. Angelito Antonio for his work in an international research project on practices used in Family Therapy, and Dr. Jerome Kliatchko for his study on how Integrated Marketing Communications has developed in academic and professional circles over the last 20 years.
University President Dr. Jose Maria Mariano topped off the University Day with his closing remarks, where he commended Dr. Abola for his 43 years of service to CRC and UA&P. And just as the tedious work of number-crunching in Economics can uplift the lives of OFWs, so did Dr. Mariano remind the University community that at the heart of UA&P is the utilization of technical expertise in the service of the common good.