Tag Archives: economy

On NFTs (now)

Apparently NFTs are still a thing and there is still much about them that I don’t know about. I’ve written negatively about them before, but a friend of mine who works in fintech has been educating me a lot about them. Now, of course I’m still very wary with investing in anything, and I’m really in no position to buy any bored primates, but I’m now more open-minded about them. A few things about them however.

1. They could be one of the only ways to truly sell and monetize digital art. Digital art is still art, and it is a bit unfair that they haven’t been able to be part of the art market until NFTs came around. This is similar to my complaint about anatomical/scientific illustrations. Why are they not seen nor exhibited as high art? There should be room for them in galleries, the same way there is room for most kinds of art. The only difference with anatomical/scientific illustrations and digital art is that the former can be monetized while the latter hasn’t been able to until NFTs came around.

2. The NFT market, much like the cryptocurrency market will always be in a state of ups and downs. I prematurely predicted the demise of the NFT market months ago and yet they are still here. Many NFTs have lowered in value since then, but many are still worth the initial investment. And me, I’m sitting here eating crow.

3. Many if not most NFTs are bad art. The percentage of bad art among NFTs compared to just plain digital art is considerably higher; I’d say 98% of NFTs are bad art. And it naturally will be that way for two reasons. One is that most of the NFT buyers are in it for the investment. They are not in it for the art. The second reason is that much like the Bored Ape Yacht Club, lots of NFTs are a set of similar images with a randomized set of traits that are digitally generated. Make 10,000 similar drawings, randomize their features, have people bid on them or set prices on them based on the rarity of the features an image has.

4. I don’t think many artists are making digital art and turning them into NFTs on a 1:1 ratio. I think that’s a rarity. The story of NFTs helping unknown artists in developing countries finally make a living off their art is a fairy tale that is only true for the smallest percentage of the market.

5. Most NFTs will not increase in value. There’s simply too many of them, and the initial prices of NFTs that made the news last year were so high that there’s nowhere else to go but down. Just check out what happened to the NFT of Jack Dorsey’s first tweet. It was sold for $48 million, and on the most recent auction, it barely got $300 in bids.

6. Celebrities who promote NFTs or who show off their purchases are in it for themselves. They are actively trying to increase the value of their NFTs before selling them. Did anyone really believe Jimmy Fallon and Paris Hilton when they mused about the uniqueness and artistry of their bored apes on the ‘Tonight Show?’

7. As incredulous as I am about the metaverse, NFTs will be an integral part of it. Basically, anything that is traded over the Internet for monetary value that has a limited amount functions as an NFT. The only difference is the blockchain element. If the metaverse does become all-encompassing as Mark Zuckerberg wants it to be, then we have no choice but to be involved in things like NFTs.

8. I am still skeptical of the element of the artist earning a percentage each time their artwork changes hands. This was one of the initial selling points of NFTs and I didn’t really see a point in it. Why would they get a royalty for items that they already sold? If I sold a painting, I don’t care if it increases in value when it gets resold years later. Good for the buyer. Good for me too because it means I’m talented enough to command such prices. But getting a percentage of the sale? Why? And when does that stop? Until I’m dead?

9. I am still dismayed at the cost of minting NFTs, both monetarily and environmentally. Apparently, the technology is getting better and the process will become greener, but who knows when that would be reality and whether that would also affect the price of minting NFTs.

10. Will I be making NFTs in the future? Who knows? I dismissed them prematurely last year, and now I’m no longer sure. I will need to talk to more people about them. I still need a lot of education.

11. I believe there are two camps when it comes to looking at NFTs. One camp are old school artists and the other are artists willing to try out new things online. During the beginning of the pandemic, I was trying to sell an idea to a friend of mine who owns an art gallery. It was a virtual art gallery that people could navigate in 3D online. She dismissed the idea as too fanciful and would require too much effort on her part. I tried to volunteer my services but she shut me down. Two years in, many galleries and artists are doing shows online one way or another, including virtual 3D galleries. Boy, did I feel vindicated.

I don’t want to be in the old school camp with my friend. I’d like to be more open-minded.

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The OFW

Since the Spanish colonization of the Philippines, Filipinos seem to have been used mainly for their skills and labor. First it was within the country, growing and exporting crops for the Spanish empire. Then when the Americans took over in the 1900s, Filipinos started working in the US’ agricultural sector. They were sent to Hawaii as well as Mainland United States. This partly explains the considerable Filipino population in Hawaii. The other reason is that Filipinos also served in the US military, beginning in World War II. The Americans also began drawing educated Filipino professionals, including nurses, doctors, accountants, and engineers. Non-professionals also began working in other countries as artists, musicians, and laborers.

The former president and dictator Ferdinand Marcos instituted the Labor Code of the Philippines, which eventually created the Philippine Overseas Employment Administration (later becoming part of the Department of Labor and Employment), which basically functioned as the middle man between countries and Filipinos looking to work overseas. By 2023, the Department of Migrant Workers is set to be launched, looking over the rights, benefits, and welfare of overseas workers.

The country’s main industries are varied, from manufacturing, ship building, tourism, etc. But as of writing this article, around 10% of the country’s GDP is through remittances sent by Overseas Filipino Workers (OFWs). This can be any laborer from skilled doctors to house helps. For decades, they have helped support countless of households and raised them to the middle-class, especially with the average monthly salary in the Philippines being 12,500 pesos ($240 US) in 2021. One can only imagine how much remittances can help with such a dire salary. One person working overseas can significantly improve a household’s lifestyle even if the OFW is only earning a meager salary by the overseas country’s standards. Now, imagine if this OFW is doing technical work. The remittances could potentially cover the salary of one or two people working in the Philippines of more, depending on the amount.

This is why it is in the best interest of the Philippine government to encourage Filipinos to work overseas, despite the long-term brain drain it might incur. Sure, the country is losing medical professionals, scientists, and engineers who decide to work abroad, but A) can companies in the Philippines compete with the salary these professionals can potentially earn in another country? And B) the remittances they send would be significantly higher than an OFW working as a blue collar laborer. This is not unique to the Philippines, however. One of the nurses who helped my mom was from China. Working in Canada as a hospice nurse, he used to be a surgeon in China. Better salary plus democracy, I don’t blame him for moving and working in Canada.

As countries develop and their populations move to jobs in cities, more and more industries in countrysides need migrant laborers to supplant the shortage of local workers. Take South Korea for example. Most Koreans are leaving their hometowns and moving to Seoul and its satellite cities in the hopes to work in its many conglomerates. Agricultural and manufacturing industries are then increasingly becoming more dependent on OFWs. It is not uncommon to see farmers or fishing boat captains leading a group of Filipinos to work in the absence of willing locals. An interesting aside, farmers in Korea are also left wanting for brides since many Korean women do not want to work in farms and take care of their in-laws in the countryside. This leaves Korean men in the countryside looking for partners overseas, particularly China, the Philippines, and Vietnam, creating matchmaking industries in Korea and these countries.

Growing up in the Philippines however, I learned of the term “japayuki,” which had a derogatory implication, suggesting that women OFWs in Japan working in the entertainment industry or “japayukis” are actually working in some form of prostitution. Technically, “japayuki” means any Filipino working in Japan, so foreign men doing manual labor or people working in a technical or medical field are indeed “japayukis,” but the word and the nebulous meaning of an “entertainment” visa feeds into the term suggesting prostitution. A couple of things however. One, in Korea, many foreigners who are arrested for prostitution in the country are either in the country on an entertainment visa or a tourist visa. Two, when I was in Hong Kong, I happened to stumble upon a very upbeat and packed bar with a big band playing. Lo and behold, it’s a group of male Filipino musicians on stage, most probably in the city on an entertainment visa. So yeah, despite the two things I mentioned not being in Japan, there’s probably a bit of truth on either takes on the term “japayuki.

OFWs are referred to locally as “modern-day heroes” not only for the fact that they are overseas, away from their families and scrimping away in order to send money back home, but sometimes they are subject to abuse by their employers, not to mention sometimes stigma at home, especially with the term “japayuki.” And again, working overseas or being away from one’s family in order to support them is not a uniquely Filipino thing; Nearly a quarter of a million Sri Lankans live and work in the UAE. But in the Philippines, it is about 10% of the GDP. One in ten Filipinos work overseas. In Korea, they have a term, “gireogi appa” or goose dad. This refers to Korean fathers working in Korea in order to finance their families overseas. These fathers probably deal with the same loneliness as OFWs, but they’re definitely better paid and the money they send goes outside of Korea and does not come into the country.

13% of male Filipino workers are categorized as unskilled laborers. This mean they could either be working as living assistants or domestic workers. For women, the percentage is 58%. These are low-wage, unskilled work, and women are more vulnerable to abuse by their employers. They can also suffer stereotypes of being uneducated, submissive, or simply be mail-order-brides. It’s a heavy burden to bear and yet, Filipina domestic helpers seem to be ubiquitous. I’ve seen them here in Seoul employed by US expats. Also in Hong Kong, I’ve witnessed thousands of domestic helpers gather on their Sunday day off around Victoria Park in Causeway Bay to have lunch together, catch up with friends, gossip, and pray. Often living with their employers and having limited free time, I thought the gathering in Hong Kong was a way for local domestic helpers not only to reconnect with the Filipino community but also as a survival skill, to collect a bit of peace and sanity after a busy six-day week.

As I mentioned in another article, the concept of a poorly paid house help was a product of Spanish colonization. Rich families would employ someone from a poorer caste to perform domestic chores. To this day, many Filipino families would employ “katulong”s (house helpers) or “yaya”s (nannies), and these families don’t necessarily have to be especially rich in order to afford a house help. It seems that Filipinos have taken the concept of “katulong” and turned it into a service that could be exported.

OFWs are not just limited to working in different countries however. Many are working in companies whose countries are questionable at best.

A friend of mine from the Philippines once surprised me when I learned that she started working as a photographer for a cruise ship. “What a totally random occupation!”, I thought. Later, I learned that Filipinos are some of the best targets for cruise companies to employ. For one, many Filipinos have a strong maritime heritage, and another is that English is spoken as the official second language. Filipinos also have a reputation for being polite and hospitable. Unfortunately, cruise companies work in a legal limbo. Royal Caribbean for example is registered in Liberia. Policing labor practices or even investigating crimes is a gray area at sea and the government of the Philippines is willing to turn a blind eye to these things. Compensation for injury or a lost limb while working in a cruise ship can be notoriously low, if they’re even awarded. Cruise work is also notoriously long with time off counted in hours rather than days. Despite all of this, however, Filipinos are willing to risk working in a cruise ship in order to send remittances. Looking at the salary of different cruise ship occupations, the lowest ones are more than double the average salary in the Philippines. Twice in Manila, I’ve chatted with bartenders in hotels, later learning that they both got their training working in cruise ships. Apparently, about 30 percent of OFWs work in cruise ships, tankers, or other shipping vessels.

So yes, God bless the OFWs. They are indeed heroes, working away from their families and opening themselves up to abuse and exploitation. If only the Philippines had a better economy and the lure of working overseas will no longer be as strong. Fortunately, business process outsourcing seems to be getting more and more popular in the country, with the Philippines being more attractive to businesses than India. I hope those jobs get to replace working overseas and that more people get to stay in the country with their families.

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Bad Vacation Timing

Pain Bird

Off to Japan next week. It’s the worst time to go to Japan. We will miss most of the major traditional festivals except for one which I plan to attend. We also won’t be able to see any baseball game while we’re there. I’ve always wanted to watch a Japanese baseball game live at a stadium. There’s just a weirdly, exciting energy emanating from them, especially with the drumming and the horns.

The weather also doesn’t look too good in Japan right now. I’m off to a rather secluded resort. But if it rains throughout all the days I’m there, I’m basically stuck in a small Japanese beach town with not much to do. Weather forecasts past seven days basically have a fifty-fifty chance of being accurate, so I’m just hoping that all of it will change and I will at least get to see a bit of sun.

The worst part of going to Japan right now is that Abe decided to make fighting against Korea a key political platform. After the G20 summit, he remembered that there is an election coming up, and he decided to woo hard right nationalists and claim that since Korea is still fighting for the claims of their comfort women during the war, then they will punish the Korean economy by not selling key components to manufacturing giants like Samsung and LG. This started a backlash in Korea with anti-Japanese sentiment growing and boycott against Japanese products. This of course is fueling anti-Korean sentiment in Japan despite many Japanese questioning Abe’s turn on the country’s neighbor.

Abe has been spending too much looking at how Trump does politics. He’s had a history of courting nationalists long before Trump became president, but this sudden turn reeks of Trump’s tariff playbook. Japan seems to be thumbing its nose to its neighbors. Even the recent open hunt for whales, despite the lack of domestic demand for whale meat, suggests that they couldn’t care less about international opinion. They are Japanese first, citizens of the world second.

And now I’m faced with a Korean currency that is slowly deflating due to the current economic situation and a Japanese population that might not be too kind should they hear me or any other foreigner speaking in Korean. It’s been a rough many days. The last time I was out of the country was basically for a funeral. Can I not get a normal vacation?

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