Businessmirror June 22, 2019

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DEPARTMENT OF SCIENCE & TECHNOLOGY

PHILIPPINE STATISTICS AUTHORITY

2018 BANTOG DATA MEDIA AWARDS CHAMPION

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business n

Saturday, June 22, 2019 Vol. 14 No. 255

2018 EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR

P25.00 nationwide | 18 pages | 7 DAYS A WEEK

PROTESTERS carry a broken fishing boat to symbolize a recent incident of a Chinese fishing vessel hitting a Filipino fishing boat during a rally near Malacañang on June 19, 2019. President Duterte called the sinking “a little maritime accident” and urged calm amid an outcry. AP/AARON FAVILA

AN ‘INCIDENT’ WAITING TO HAPPEN Sinking of Filipino boat a glimpse of Chinese ships’ ‘true’ mission in West Philippine Sea

T

By Rene Acosta

HE sinking of a Filipino fishing boat at the Recto Bank in the West Philippine Sea more than a week ago after being hit by a Chinese maritime militia ship apparently masquerading as a fishing vessel was an incident (or an accident) bound to happen with the “swarming” presence and virtually unregulated activities of Chinese ships in the country’s exclusive economic zone (EEZ).

The FB Gem-Ver 1, which was struck by a Chinese ship identified as Yuemaobinyu 42212 while on anchor in waters just 80 nautical miles off Palawan, is seen as a significant shift in the tactics of intimidation and harassment employed by the Chinese against Filipino fishermen in territory that China claims to be its own in its entirety. The incident also left 22 Filipinos to the mercy of the sea for three hours before they were rescued by a Vietnamese fishing vessel. The Yuemaobinyu 42212, and those of the other ships used by the Chinese maritime militia, which have steel-reinforced hulls—with crewmen trained and equipped by the Chinese Coast Guard under which they were initially under their employ—were in the West

Philippine Sea to intimidate, coerce and enforce China’s overlapping maritime claims. By deploying the steel-hulled paramilitary ships in the West Philippine Sea under the not-so-secret guise of fishing, China has employed the lessons that it learned from the “ramming battle” that it had previously employed with Vietnam in 2014. That incident arose from its action of sending an oil rig into the waters claimed by Hanoi. Ships from both countries were either damaged or sank from that encounter.

‘Swarm’ count

THE Armed Forces of the Philippines (AFP) has said that since January this year, more than 250 Continued on A2

PRESIDENT Duterte holds a pair of binoculars as he watches a demonstration during the 121st Philippine Navy anniversary at Sangley Point, Cavite, on June 17, 2019. RICHARD MADDELO/MALACAÑANG PRESIDENTIAL PHOTO VIA AP

Robots might turn out to be great coworkers

T

By Noah Smith Bloomberg Opinion

HE idea that automation will drive up unemployment or drive down wages—in other words, that robots will take people’s jobs—has become almost an article of faith for many Americans. Everyone can point to instances of automation reducing demand for certain workers. And with so-called artificial intelligence (AI) technology improving rapidly, there’s widespread worry that many humans will simply be made obsolete. News outlets are full of eye-grabbing forecasts of the percentage of jobs that will be replaced. But those estimates are little

more than guesswork. The truth is, nobody knows how many jobs will be replaced by automation, or how automation will affect wages and inequality. There’s the possibility that AI, rather than replacing workers, will mostly just allow them to do their jobs more easily. And even as some jobs are eliminated, new ones will pop up, possibly at higher wages. That may

PESO EXCHANGE RATES n US 51.7170

IN this June 26, 2015, file photo, workers assemble parts next to robot arms at an auto parts manufacture factory in Dafeng city in east China’s Jiangsu province. CHINATOPIX VIA AP

involve painful, stressful transitions for people who have to switch jobs, but it doesn’t represent a robot apocalypse - in fact, it would be exactly what happened in the Industrial Revolution. So far, broad trends don’t look like they show a robot takeover. Prime-age employment rates are healthy at about 80 percent. Meanwhile, wages now are rising fastest at the lower end of the income distribution - not the kind of pattern one would expect to see in a world where low-skilled workers are competing with robots. Some economists have done studies that purport to show a negative impact from automation. For example, a 2017 paper by Daron Acemoglu and Pascual Restrepo claimed that regions with more robots lost more jobs between 1990 and 2007. And a paper by Osea Giuntella and Tianyi Wang found something similar going on in China. But these Continued on A2

n JAPAN 0.4821 n UK 65.6961 n HK 6.6201 n CHINA 7.5474 n SINGAPORE 38.1422 n AUSTRALIA 35.7985 n EU 58.4040 n SAUDI ARABIA 13.7883

Source: BSP (June 21, 2019 )


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