Proem

It was recently announced in national newspapers that NEDA Director Romulo Neri will become the Chairman of the Commission on Higher Education (CHED).

The Purpose

According to the statement of Mr. Neri, he will be transferred to CHED to solve the problem of mismatch between college graduates and the need of Industry. Too many college graduates are unemployed because they could not find suitable jobs for their acquired skills.

The situation

For sure, the Philippines has a problem with its college graduates in relation to the economy. However, research have shown that the problem is in the economy and not in the educational system. This is shown by the fact that Filipino college graduates are acceptable in foreign countries performing jobs they are trained for.

You Want a Match?

If we want a match between college graduates and jobs available in the economy, we can do two things. We can increase the economy so that it can offer more jobs or if it is not possible, then we can decrease the number of college graduates to fit the available jobs. However, the second solution is unconstitutional and therefore not possible.

Are There unfilled Jobs?

Are there really unfilled jobs in the economy? The answer is "Yes." However, these jobs are technical-type or middle and lower level type of jobs. These are the kind of jobs that TESDA is trying to address. The problem is, TESDA is not under the scope of CHED. Therefore, Mr. Neri is at the wrong place in order to put his theory into action.

President Arroyo should appoint Mr. Neri either as TESDA Director or Secretary of Education. There is no doubt about the ability and capability of Mr. Neri as technocraft.

He is doing a good job at NEDA and did a good job when he was told to trouble-shoot in the Department of Budget and Management.

Supply and Demand Economics

In economics, there is such a thing as the "Lsw of Supply and Demand." This is what the economist Mr. Neri is thinking about. If there is a great demand of banana and the supply available is fish, the ideal thing to do would be to increase the supply of banana and lessen the supply of fish in order to have a match in the economy.

The problem is that Mr. Neri is told to turn the fisherman into banana planters to supply the demand. Do you think it could be done? Where would the fishermen plant their bananas?

The thesis of this writer is that, President Arroyo is sending Mr. Neri to a wrong place to solve a problem in the economy.