VZCZCXRO0725
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #3561/01 2370804
ZNR UUUUU ZZH
O 250804Z AUG 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2644
INFO RUCPDOC/USDOC WASHDC IMMEDIATE
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE

UNCLAS SECTION 01 OF 02 MANILA 003561 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MTS, EB/CIP 
STATE PASS USTR 
USDOC FOR 4430 ITA/MAC/ASIA 
 
E.O. 12958: N/A 
TAGS: EAID ETRD PREL SCUL KPAO RP
SUBJECT: LIFTING ENGLISH PROFICIENCY TO RAISE ECONOMIC GROWTH 
 
 
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Summary 
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¶1.  English language proficiency has steadily declined in the 
Philippines over Qe past 30 years, mostly due to decreased use of 
English by teachers, the exodus of qualified English teachers to 
overseas jobs, and the lack of education infrastructure, including 
classrooms and supplies.  The GRP recognizes the harmful effect on 
economic growth and development and has implemented programs to 
improve English language skills.  However, to reverse a 20-year 
trend, the GRP will need to produce long-term improvements in the 
educational system.  End Summary. 
 
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Industry Concerns about English 
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¶2.  Low labor costs, English fluency, and cultural affinity provide 
the Philippines advantages over other Southeast Asian countries in 
attracting U.S. investment.  However, U.S. businesses are concerned 
about declining English proficiency, claiming that current 
manufacturing, banking and seafaring job applicants do not meet the 
same standards as their colleagues did a few years ago.  This may 
potentially hinder Philippine industry growth and expansion.  Poor 
English skills in the e-services sector, encompassing call centers 
and business process outsourcing (BPO) operations, are causing a 
bottleneck in the establishment of new call centers and hiring of 
applicants.  According to the Business Processing Association, an 
advocacy organization for the e-services industry, only 5% of job 
applicants are hired; the rest often lack the required level of 
English proficiency. 
 
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Factors Contributing to Decline of English Ability 
--------------------------------------------- ----- 
 
¶3.  English was the medium of instruction in the Philippine public 
schools until 1974, when a system of "bilingual education" was 
introduced, in which certain subjects were taught in Tagalog 
Filipino and others in English.  The primacy of Tagalog was cemented 
in 1987, when then-President Aquino established Tagalog and English 
as the official languages of communication and instruction in the 
new constitution.  Since then there has been a steady decline in 
English ability.  A survey by Social Weather Stations found a 
general decline in English use since 1993, with only 40% of 
respondents claiming mastery of the English language in 2006. 
Contributing to this decline is the increasing use of Tagalog and 
"Taglish" in the broadcast media.  While most newspapers and 
magazines are in English, prime-time television is dominated by 
Tagalog programming.  The decline of English mastery among school 
teachers has also hurt proficiency levels.  An English assessment 
showed only 19% of teachers scored at 75% or higher.  Complicating 
the issue is the exodus of the best-qualified teachers to lucrative 
jobs in the U.S.  School infrastructure is also a problem, as 
Filipino classrooms are seriously overcrowded, with student-teacher 
ratios at 50:1 and schools running on double shifts. 
 
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Initiatives to Promote English Language Learning 
--------------------------------------------- --- 
 
¶4.  To reverse the decline in English ability, President Arroyo 
released Executive Order 210 in 2003 re-establishing English as the 
official medium of instruction for most students in math, science, 
and English as a second language.  Teachers often lack adequate 
English language skills, however, and continue to rely on Taglish 
for instruction.  To address this problem, the GRP Department of 
Education launched the National English Proficiency Program in 2003 
to bring English proficiency testing of math, science, and English 
teachers, and a mentor training program.  In addition, the GRP, in 
conjunction with the Technical Education Skills Development 
Authority (Tesda) pledged $9.6 million for a "Training for Work 
Scholarships" program granting scholarships to 100,000 "near hires" 
(job applicants turned away from call centers due to lack of English 
language proficiency) to study English. 
 
¶5.  Business associations and corporations have developed their own 
programs to boost English language proficiency amongst potential job 
applicants.  The American Chamber of Commerce joined with the 
Philippines-U.S. Business Council to inaugurate the PEP (Promoting 
English Proficiency) Project in 2003.  The project uses classroom 
teaching and computer-based software to teach English at the 
secondary and college levels.  PEP expects to open 20 computer 
English language centers by the end of 2006.  To counteract the 
degradation of English in the media, the European Chamber of 
Commerce designed the "English is Cool" public relations campaign in 
2006 to promote bilingualism and discourage young people from using 
 
MANILA 00003561  002 OF 002 
 
 
Taglish. 
 
¶6.  The USG, through USAID and Peace Corps, is sponsoring programs 
in poor, remote areas, including Mindanao, to improve the Philippine 
education system.  The programs include providing television, radio, 
and computers for teaching science, math, and English; supplying 
textbooks to schools; implementing skills training for students 
seeking employment; and introducing audiotapes and books to improve 
language teaching and learning.  Altogether, the U.S. is investing 
over $4 million to support English language instruction in Mindanao. 
 Since 2003, a series of State Department-funded English Language 
Fellows has assisted the Philippine Department of Education with the 
implementation of the National English Proficiency Program, with 
special emphasis on Mindanao. 
 
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Appointment of a New Education Secretary 
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¶7.  In July 2006, President Arroyo appointed a three-term 
congressman, Jesli Lapus, as the new Education Secretary.  In 
announcing her selection, Arroyo credited Lapus for spearheading a 
successful package of tax reforms while serving as chairman of the 
House Ways and Means committee.  According to news reports, 
Department of Education employees vehemently opposed his 
appointment, preferring an educator rather than a politician at the 
helm.  Shortly after his appointment, Lapus publicly stated his 
desire to restore English as the medium of instruction and announced 
his commitment to institute education reforms, such as training 
teachers in managerial and administrative skills and increasing the 
education budget.  He noted, for example, that the education, 
culture and manpower development budget has steadily declined from 
4% of GDP in 1998 to 2.5% of GDP in 2005.  Lapus may have support 
from his former Congressional colleagues for expanding the education 
budget.  In proposed legislation to revise fiscal incentives for 
investors, Senator Ralph Recto proposed that 50% of the revenue 
gains from the act be devoted to education. 
 
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COMMENT:  How to Improve English Fluency 
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¶8.  To resurrect English proficiency in the Philippines, the GRP 
must adopt long-term strategies to improve the overall educational 
infrastructure, such as building and equipping new classrooms and 
providing school furniture and supplies.  The government also must 
hire additional teachers and provide intensive English language 
training, with incentives to employ and retain those with better 
English mastery.  The private sector should be encouraged to 
continue its positive role promoting English skills. 
USAID-sponsored education programs in Mindanao have been 
particularly successful, and could serve as models for what the GRP 
can accomplish in the rest of the country. 
 
JONES