BusinessMirror August 08, 2020.pdf

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ROTARY CLUB OF MANILA JOURNALISM AWARDS

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By Lorenz S. Marasigan

ITH the second wave of the pandemic coming into full play, connectivity via the Internet is crucial to keep life under the new normal going. No less than the country’s chief executive has emphasized the key role that the Internet will play during this “new normal,” even threatening telcos of a government takeover if they will not improve their services by December. In his fifth State of the Nation Address (Sona), Duterte claimed that the two telcos have been providing sub-par services to their customers, even going to the lengths of saying that they are overcharging their customers by charging them for mediocre services. Are his statements true? Partially, as while Internet coverage is

at now 95 percent of the total barangays and municipalities in the country—at least according to telcos—reliability still is an issue. For Pierre Tito M. Galla, cofounder of consumer group Democracy.PH, Duterte’s tirades against the telcos during his Sona are “believable red herrings.” Continued on A2

A broader look at today’s business n

Saturday, August 8, 2020 Vol. 15 No. 303

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Populist President amplifies gripes over slow Internet in a crisis that’s forcing people to work—and study—from home, and for businesses to survive. Is the threat to take over them just a trick to empower perceived ‘cronies,’ or a serious shot at reform?

A WOMAN wearing a mask uses her phone at a checkpoint outside Manila on Tuesday, as the capital is placed on another lockdown in the hopes of controlling the surge of coronavirus cases. AP/AARON FAVILA

A shattered Beirut leaves Lebanese asking if they have a future

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By Lin Noueihed | Bloomberg News

VEN before the explosion ripped through his butcher’s shop on one of Beirut’s most fashionable streets, Tony Iyami was just about staying afloat. A lockdown to control the coronavirus pandemic had hit business, compounding a banking crisis that’s left most Lebanese unable to access their savings or borrow. The government is bankrupt, in talks with the International Monetary Fund (IMF) for a bailout and barely functioning. Then came Tuesday’s cataclysmic blast that erupted out of the capital’s port area shattering all before it, killing at least 100 people and wounding thousands. “We were already hobbling along, surviving step by step, but now we’ve been struck down,” Iyami said in between securing his property and sweeping up debris. “If our officials don’t wake up, we’re already

being destroyed, but if they don’t wake up to what’s happening now, this nation is finished.” The explosion, fueled by a vast consignment of ammonium nitrate stored at the port despite repeated safety warnings, couldn’t have come at a worse time for Lebanon, which is enduring its deepest political and financial crisis since the 15-year civil war ended in 1990.

From warlords to rulers

AS fighting ebbed, former warlords became the nation’s rulers, borrowed up to the hilt and then pillaged state coffers for three decades until there was virtually nothing left. The result is often a state in name only. Daily blackouts last hours,

PESO EXCHANGE RATES n US 49.0550

A LEBANESE woman whose son is missing after the explosion Tuesday that hit the seaport of Beirut cries as she waits outside the port to receive any information from the rescue teams, in Beirut, Lebanon, August 6, 2020. AP/HUSSEIN MALLA

while garbage is left uncollected on the streets. A collapse in the currency has pushed inflation above 50 percent, erasing life savings. The blast has put the country’s leading port out of action and destroyed the main grain silos, ensuring prices will soar higher as supply chains are disrupted. Weeks of protest that began in October against cronyism and corruption have fizzled into hopelessness as more Lebanese look to follow previous generations and emigrate. Lebanon has appealed for international help as concerns mount over shortages in a nation that depends heavily on imports. France, Germany and others have offered medical aid and assistance with rescue operations. But decades of corruption and failure to prove that Lebanon’s political class is serious about reform means donors remain reluctant to provide the government with budget support. Any aid is likely to be humanitarian or targeted at specific sectors like health. Continued on A2

n JAPAN 0.4650 n UK 64.4975 n HK 6.3296 n CHINA 7.0544 n SINGAPORE 35.8275 n AUSTRALIA 35.4717 n EU 58.2675 n SAUDI ARABIA 13.0852

Source: BSP (August 7, 2020)


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