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Sunday, February 3, 2019 Vol. 14 No. 116
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FOR CHANGE
D.O.S.T. DETERMINED TO MAKE PHL AN ‘ATTRACTIVE INVESTMENT AREA’ WITH HIGHER INNOVATION INDEX RANK
By Stephanie Tumampos | Special to the BusinessMirror
B
EYOND the stellar performance and numerous achievements of the Department of Science and Technology (DOST) in 2018, such as the launch of the country’s second microsatellite Diwata 2 and the signing of the Balik Scientist law, among others, Science Secretary Fortunato de la Peña expressed his drive to improve three key areas: manpower, infrastructure and innovation.
The country’s top science official told the BusinessMirror Coffee Club Forum on Wednesday that the country’s indices in international rankings must progress in order for investors to appreci-
ate that the Philippines is ready for higher-level investments. “One of the things to be considered by your investors is your ranking, whether it is the world competitiveness ranking or in-
(FROM left) Dr. Leah Buendia, Assistant Secretary for International Cooperation, DOST; Fortunato de la Peña, Secretary, Department of Science and Technology; Dr. Renato Solidum Jr., Undersecretary for Disaster Risk Reduction and Climate Change, DOST; and Dir. Jose Patalinjug III of the DOST National Capital Region during the BM Coffee Club forum held in Makati City. NONIE REYES
novation index, and in all the indices, we [the Philippines] have always been in the middle,” he explained. And this is why, according to de la Peña, the DOST is investing in the key areas because this is the country’s weakness. De la Peña further explained that “it is very important for the Philippines to be an attractive investment area” because the country has the right manpower and expertise. If the Philippines, through the DOST, could push and advance this and support more services for technology, then “there will be more investments, assuming that the Ease of Doing Business law will be in full operation.”
Empowering the regions
IN order to make the country a more inductive venue for investContinued on A2
Billionaires in Russia attempt building dynasties for post-Putin era
W
ITH Vladimir Putin now in his last consecutive presidential term, post-communist Russia’s first generation of billionaires is starting to test his commitment to private property by giving parts of their wealth to heirs. One of Russia’s oldest tycoons, Vladimir Evtushenkov, 70, led off last summer, ceding a stake in the AFK Sistema conglomerate to his son Felix shortly after Putin was sworn in. Lukoil PJSC cofounder Leonid Fedun followed, granting a total of $1.3 billion of the energy giant’s stock to his son and daughter in October, just before Evtushenkov doubled Felix’s holding to 5 percent. Unique among the biggest economies, Russia last saw major fortunes change hands via inheritance more than a century ago, be-
fore the Bolsheviks seized power, according to the Skolkovo Wealth Transformation Center in Moscow. While most restrictions on free enterprise ended along with the Soviet Union, the unwritten rule book for amassing and transferring capital that’s developed under Putin remains a hurdle to the reemergence of dynastic wealth. “It rests on the informal contacts of fathers, which are difficult, if not impossible, to transfer to children,” said Alena Ledeneva, a professor of politics and society at
PESO EXCHANGE RATES n US 52.1610
University College London. Ledeneva, who’s studied and written about Russian power networks for two decades, calls the informal relationships that govern both state and corporate structures simply “Sistema,” or “The System”—the same name Evtushenkov chose for his holding company. Unlike the West, where independent judiciaries have long had the final say in matters of ownership, in Russia the ultimate arbiter is the Kremlin and the legions of bureaucrats and law-enforcement personnel it commands. Safeguarding wealth often hinges on personal ties and tacit agreements with officials that can touch on everything from taxes and favors to civic responsibility and patriotic duty. Many Russian tycoons don’t want their kids to follow in their footsteps, with some even hiding the true extent of their holdings.
VIEW of the Red Square in Moscow, Russia. MIKHAIL LEONOV | DREAMSTIME.COM
For Evtushenkov, who’s widely Continued on A2
n JAPAN 0.4790 n UK 68.4300 n HK 6.6472 n CHINA 7.7858 n SINGAPORE 38.7526 n AUSTRALIA 37.9106 n EU 59.7243 n SAUDI ARABIA 13.9088
Source: BSP (February 1, 2019 )