ROTARY CLUB OF MANILA JOURNALISM AWARDS
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BusinessMirror
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A broader look at today’s business
Saturday, February 29, 2020 Vol. 15 No. 142
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR (2017, 2018)
DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY
DATA CHAMPION
A SHOT AT MILITARY n
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By Rene Acosta
PROPOSAL to build military industrial complexes within the country’s special economic zones, especially in idle military lands, has gained the support of the Armed Forces of the Philippines (AFP), believing that this may well be the first step in realizing its dream of a self-reliant military force to reckon with.
PHILIPPINE Marines are seen at an amphibious landing exercise with American soldiers on May 9, 2018. AP/BULLIT MARQUEZ
VLADIMIRFLOYD | DREAMSTIME.COM
A PROPOSAL TO BUILD MILITARY INDUSTRIAL COMPLEXES ON IDLE LANDS INSIDE ECOZONES GAINS SUPPORT FROM THE AFP It is a known fact that the military is still acquiring most of its assets and equipment through its multibillion-peso capability upgrade program, and, in the process, continues to attract offers from among the world’s biggest defense contractors and suppliers. As such, it welcomes the proposal of the Philippine Economic Zone Authority (Peza), through its director general Charito Plaza, to create and host military factories and assembly plants within the country’s special economic zones, with focus on military reservations and other unused property and bases of the AFP. “It is a welcome development. Anything that will support and Continued on a2
PLAZA: “Creating a defense industrial ecozone will not just modernize the country and the defense forces, but will also create jobs and put to use the long…idle military reservation areas.” PIA CAR
Why Spain cannot shake one of world’s highest jobless rates
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PAIN’S vicious start-and-stop cycle of bad jobs has become one of Europe’s most chronic economic dilemmas, a problem unresolved by its post-crisis boom.
For Raquel Garcia, that means peak tourist season in the Spanish province of Cadiz is her one shot each year to find a full-time job. “When the summer comes, boom!” the 34-year-old says. But then the market goes bust, and thousands wait for the season to come around again. At the end of August, Garcia lost the full-time job she’d held for four months as a waitress, leaving her and her son to live off the couple hundred euros in unemployment insurance and subsidies they receive each month. The unemployment rate in the southern province is 25 percent, among the highest in the developed world. The situation remains critical
despite years of robust economic expansion in Spain and successive interest-rate cuts that have propped up the broader European economy. It’s been masked by a steady decline in the overall euro-area unemployment rate, which has fallen to the lowest level since 2008. Much of the blame lies in deep-seated domestic problems. The country has the European Union’s highest rate of precarious temporary contracts; the highest rate of high-school dropouts and among the highest portions of low-skilled workers. It has one of the lowest rates of mobility, which means Spaniards often stay in cit-
PESO EXCHANGE RATES n US 50.9370
AERIAL view of the old city rooftops and Cathedral de Santa Cruz in Cádiz, an ancient port city in the Andalucia region of southwestern Spain. OLGACOV | DREAMSTIME.COM
ies with few job opportunities. There are some signs that those structural issues have become more entrenched. Job growth has begun to stagnate and economists say the unemployment rate
probably won’t fall much below 12 percent or so in the coming years. “It is a dysfunctional labor market,” said Marcel Jansen, a professor at the Autonomous University in Madrid. “We need to bring
structural unemployment back to reasonable levels.” Successive governments have failed to tackle the over-reliance on temporary contracts. The only major, recent attempt to improve la-
bor laws was in 2012, a post-crisis revamp credited with spurring the economic expansion. Spain’s new left-wing government has put the issue back in the Continued on a2
n JAPAN 0.4649 n UK 65.6425 n HK 6.5362 n CHINA 7.2720 n SINGAPORE 36.5140 n AUSTRALIA 33.4554 n EU 56.0409 n SAUDI ARABIA 13.5781
Source: BSP (February 28, 2020)