The Market Monitor Minding the Nation's Business
By Gia Catimbang
The Federal Republic of Germany wants a stronger partnership with the Philippines to benefit the Filipinos through increased trade, technology transfer and more investments.
The German economy, the fifth largest economy in the world and Europe’s largest, is a leading exporter of machinery, vehicles, chemicals and household equipment and benefits from a highly skilled labor force.
Dr. Ronald Schissau, Germany’s Deputy Head of Mission in the Philippines, noted the increase in investments from German companies to the country and hopes that both countries boost trade.
The diplomat also acknowledged the presence of the European Union (EU,) assuring that Germany does not do anything in its behalf without the EU.
“As a diplomat of a European country, we are supposed to think double-headed,” Dr. Schissau said.
The European country also named the Philippines as one of its closest allies in East and Southeast Asia and its largest trade partner in the EU, with the exchange of goods reaching 4.7 billion euro (P285 billion) in 2015.
“We have grown from strength to strength in the past decade, not only undergoing an economic boom but also becoming a prime investment location for foreign investors,” Trade and Industry (DTI) Secretary Ramon Lopez said.
The DTI conducted trade and investment missions to German business chambers and companies showcasing the benefits of investing in the Philippines last February, citing that time as the “perfect opportunity” for German companies to do business in the country’s “robust” economic expansion.
Gordon Kricke, Germany’s ambassador in the Philippines, said that the Philippines arguably holds better growth potential than Malaysia, Singapore and Vietnam
Germany is also looking to expand “people-to-people” exchange with the Philippines. According to Dr. Schissau, the European country is specifically seeking to employ Filipino seafarers and health workers.
Aside from business, Germany, through Deputy Head of Mission Schissau, introduced in detail some of the government-sponsored activities that the European country is doing in the Philippines as part of their alliance
“GIZ provides assistance to give a concrete example of what it means,” said Dr. Schissau.
A company perceived as an experienced independent service provider funded by the German federal government, GIZ consists of different ministries that provide financial and technical aids made to assist the German government in cooperating internationally.
Some of its projects are hands-on funding for local Philippine non-government agencies (NGO) engaged in disaster preparedness, focusing to help communities on areas outside Metro Manila as they are more prone to natural disasters.
GIZ also cooperates with the Department of Energy in talks of climate change and promoting renewable energy, as Germany is known to have conducted a successful energy transition with energiewende – a low carbon, environmentally sound, reliable, and affordable energy supplythat relies heavily on renewable energy (particularly wind, photovoltaics, and hydroelectricity), energy efficiency, and energy demand management.
Also as part of Germany’s interest in people-to-people exchange, the German Academic Exchange Service is a state-run implementing agency which increases relations between the community and offer scholarships to young talented Filipino students by taking them to Germany.
The DAAD itself does not offer programs of study or courses, but awards competitive, merit-based grants for use toward study and/or research in Germany at any of the accredited German institutions of higher education. It also awards grants to German students, doctoral students, and scholars for studies and research abroad.
It is the largest academic organization worldwide, supporting approximately yearly 50,000 grantees with an annual budget of nearly 400 million euros.
The Goethe-Institut, meanwhile, is Germany’s state-owned agency focusing not only in offering German language courses but also in promoting international cultural exchange. This agency aims to connect Filipino and German artists through corporate projects, as mentioned by Dr. Schissau.
Germany will also conduct a visitor’s programme inviting four senior journalists from the Philippines to Germany in order to showcase their concrete example of Federalism in November.
“Federalism – the big political subject that the Philippines is considering, changing your constitution to a federal system, we thought that this program might be useful to introduce [federalism] to a number of Filipino journalists,” according to Dr. Schissau.
In exchange of the visitor’s programme is a “de-radicalization” programme by Germany to study how to deal with rising threats of religious radicalizations based from the Philippines’ experiences.