Businessmirror march 31, 2017

TRUMP SIGNS EXECUTIVE ORDER UNWINDING OBAMA CLIMATE POLICIES President Donald J. Trump, flanked by company executives and miners, signed a long-promised executive order on Tuesday to nullify President Barack Obama’s climate-change efforts and revive the coal industry, effectively ceding US leadership in the international campaign to curb the dangerous heating of the planet.

Trump made clear that the United States had no intention of meeting the commitments that his predecessor made to curb planet-warming carbondioxide pollution, turning denials of climate change into national policy.

At a ceremony, Trump directed the Environmental Protection Agency to start the complex and lengthy legal process of withdrawing and rewriting the Obama-era Clean Power Plan, which would have closed hundreds of coal-fired power plants, frozen construction of new plants, and replaced them with vast new wind and solar farms.

“C’mon, fellas. You know what this is? You know what this says?” Trump said to the miners. “You’re going back to work.” Stephen Crowley/The New York Times

media partner of the year

United nations

2015 environmental Media Award leadership award 2008

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business n

Friday, March 31, 2017 Vol. 12 No. 170

2016 ejap journalism awards

business news source of the year

P25.00 nationwide | 5 sections 28 pages | 7 days a week

PCC LISTS INTERVENTIONS TO ENSURE SUCCESS OF NBP

motoring

Broadband plan won’t work sans NTC reboot

By Lorenz S. Marasigan

W

@lorenzmarasigan

hile the antitrust body is supportive of the creation of a national broadband blueprint, it cautioned the concerned government agency to be more stringent in crafting the multibillionpeso initiative to ensure a healthy and competitive telecommunications market in the Philippines.

₧200 The maximum penalty per day for a telco violation until corrected

In a position paper, the Philippine Competition Commission (PCC) listed its recommendations to the Department of Information and Communications Technology (DICT) in crafting a National Continued on A2

Subaru Forester 2.0 XT: Refreshed, rugged renegade »E1

Japan to finance 14 mega infra projects

Dedicated cruise terminal will bring more tourism receipts to Philippines T

By Cai U. Ordinario

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

C

ONSTRUCTION of a dedicated cruise terminal in the Philippines that would entice international cruise shipping companies to homeport in Manila is expected to generate more tourism revenues for the country.

In a news statement, Tourism Director for Market Development (Thailand, Indonesia, Vietnam) Ma. Corazon Jorda-Apo said during a press interview onboard the cruise ship Superstar Virgo: “The National Cruise Tourism Strategy

serves as a road map for the country and its players in achieving our long-term goal of being not only as a destination or port of call, but as a homeport that generates more jobs. [It also makes the Philippines] a preferred market source, as the economy improves and boosts the Filipinos’ capacity to spend for recreation.”

To achieve this, she stressed, it is crucial that soft and hard infrastructure are developed to support the requirements of cruise companies. “We foresee that by the end of the Duterte administration, we would see the realization of the first dedicated cruise

PESO exchange rates n US 50.2210

terminal.” Under the National Cruise Tourism Strategy, the Department of Tourism (DOT) and partner-government agencies, like the Department of Transportation are targeting the development of an international cruise port and marina in Manila.

She added that with the parallel building and upgrading of other harbors, piers and terminals, this would increase the country’s capacity to serve more and bigger ships, which can bring in as much as 5,000 passengers. “Our ultimate goal is to be as seamless as possible, and to gain competitiveness as a major cruise hub in

Asia,” Jorda-Apo said.

Under the Medium-Term Tourism Infrastructure Program, the Duterte administration is expected to spend about P6.11 billion from 2017 to 2022 to develop and improve cruise ports in the country.

The DOT is eyeing an increase in visitor arrivals via cruises to reach 456,164 with 402 port calls by 2022, the last year of President Duterte’s term of office, from 47,098 visitor arrivals onboard 56 ship calls in 2016.

Star Cruises’s Superstar Virgo made its debut cruise departing from its new homeport in Manila Continued on A2

@cuo_bm

he Japanese government has committed to finance 14 mega infrastructure projects in the Philippines, according to the National Economic and Development Authority (Neda).

Three projects, worth $8.824 billion, will be prioritized by the Duterte administration in the next two years. These are the $4.25-billion Mega Metro Manila Subway System, the $2.67-billion commuter portion of the North-South Railway Project (NSRP) South Line and the $1.9-billion speed-train project to Clark Green City.

“These are mega projects. I would consider these flagship projects.

Except the subway in Metro Manila, the two railways to Clark and Los Baños are intended to disperse development away from Metro Manila, which is already suffering

from congestion and economies of agglomeration,” Neda Secretary Ernesto M. Pernia said on Thursday.

Pernia said the Mega Metro Manila Subway will run from FTI to North Edsa, snaking through Ortigas and Katipunan.

The commuter line of the NSRP will run from Manila to Los Baños, while the speed train to Clark Green City will start from Malolos, Bulacan. The list of 14 projects for Japan funding also includes the Malitubug-Maridagao irrigation project and the Cavite Industrial Flood Management Project, both still with no cost estimates as of press time.

These projects will be financed by both official development assistance loans and grants. There will be projects that are tied and untied. An aid is “tied” when restrictions are placed on the countries that goods and services may Continued on A2

n japan 0.4523 n UK 62.4548 n HK 6.4647 n CHINA 7.2892 n singapore 36.0317 n australia 38.5044 n EU 54.0780 n SAUDI arabia 13.3930

Source: BSP (30 March 2017 )

BMReports BusinessMirror

A2 Friday, March 31, 2017

www.businessmirror.com.ph

Broadband plan won’t work sans NTC reboot Continued from A1

Broadband Plan (NBP) to ensure that the common Filipino will benefit largely from the program. Specifically, the competition watchdog suggested the sharpening of the teeth of the National Telecommunications Commission (NTC) so it can enforce its mandate to review the competition landscape in the telco industry and resolve interconnection issues in the broadband market.

“The NTC should be given sufficient tools to overcome several challenges that hamper its ability to effectively regulate the industry. Among the recommendations include amending Republic Act 7925, which would allow NTC to impose higher penalties on telco players that are violating the country’s laws and regulations,” the antitrust body said.

The Public Telecom Policy Act of 1995, which provides for the development of the telco industry, does not have penal provisions. This has forced the regulator to apply penalties under the Public Services Act of 1936, which sets fines at not more than P200 per day until the violation is corrected.

“When penalties are low and enforcement unlikely, operators will tend to choose to violate rules rather than sacrifice profits,” the competition regulator said.

Break anticompetitive barriers

Aside from this, it recommended the

removal of barriers to competition. It identified “three major types of government interventions that restrict competition and facilitate anticompetitive practices.”

First are regulations that reinforce market dominance or limit the entry of new players. These include high cost of franchises and other permits, making it difficult for new players to enter the market.

“As a result, market concentration is high and this allows existing players to dominate the market with less pressure to perform efficiently,” the watchdog said.

Second are regulations that are conducive to collusion or increase costs to compete in the market. These may include the ability of telco players to co-use, which allows them to transfer or share their privilege to use certain frequency bands to another firm. “ This sometimes poses a problem since it limits the government’s prerogative to allocate the essential, but finite, resource in a way that is fair and efficient,” it explained.

And last, the PCC said regulations that discriminate against specific players, distort the level playing field, or protect vested interests should be addressed. These include limiting the entry of foreign equity ownership in telcos, which is capped at 40 percent under the Constitution.

“This effectively protects the existing players from competing with technologically advanced and efficient potential

players,” it said.

Interconnection, open access

Likewise, the ICT department should prioritize and “aggressively pursue” the creation of an “effective interconnection regime”. “Interconnection is arguably the most crucial component to enhancing competition within the telco industry.

Because interconnection rates and terms are negotiated bilaterally between firms, they are strongly affected by relative bargaining strength,” the competition agency said.

“Operators with fewer subscribers or less extensive networks, for instance, have weaker bargaining power and would have difficulty obtaining favorable terms from their bigger competitors.”

W hile it agrees with the planned open-access policy within the national Internet blueprint, the antitrust body recommended a few “basic principles to make it more effective”.

“Detailed regulatory guidelines should be provided on critical aspects of interconnection, such as negotiation arrangements, establishment of interconnection rates and technical terms and conditions,” it said.

It added that focus should be given on interconnection obligations for the existing dominant operators since only firms with substantial market power have the ability to establish interconnection terms independent of competition.

“Mechanisms for the identification and resolution of discriminatory interconnection arrangements should be developed,” the competition agency said. “Since the existing dominant players have the incentive to charge exorbitant rates to its smaller competitors, interconnection charges should be regulated to ensure that they approximate actual costs.”

Open access refers to an environment where players are provided with wholesale capacity from existing national backbone network operators under terms that are nondiscriminatory and transparent, and at prices that are cost-oriented and subject to regulatory oversight.

Stop limiting us

Moreover, the antitrust body said it should not be prevented from pursuing its mandate of enhancing economic efficiency and promoting fair and free competition in the market.

“The PCC plays a crucial role in improving broadband services in the country. By implementing the Philippine Competition Act, it prevents firms from exploiting consumers and excluding competitors. Experience has proven that regulation by itself is insufficient to create a robust competitive environment in the telco industry,” it said.

The competition law establishes rules to safeguard the competitive process and its effective application is necessary to assist entry, as well as ensure that

competition is maintained.

These, according to the agency, are necessary to ensure that “that all Filipinos will reap the benefits of broadband, address challenges in the sector and accelerate broadband deployment.”

According to the ICT department’s initial draft of the P77.9-billion national Internet blueprint, the National Broadband Network will focus on the development of internet access in the country-side, particularly in areas where Web access is scarce or very limited.

It specifically outlined key cities and provinces—particularly the rural areas where commercial telecommunications services are absent —where a governmentowned broadband network will be built.

These areas are based on the National Economic and Development Authority’s (Neda) National Spatial Strategy for 2017 to 2022 and the National Telecommunications Commission’s (NTC) Fixed and Wireless Broadband Data Survey.

Also included in the draft are key suggestions to promote new media, local content and applications; the development of a rural technology road map; the process by which the government will monitor the development of the plan; optimization of spectrum usage; development of satellite; and the institutionalization of collaborations with other agencies, among others.

The plan was approved by President Duterte earlier this month.

Dedicated cruise terminal will bring more tourism receipts to Philippines Continued from A1

on March 19. Some 2,000 passengers paid about P24,000 for a twin-share package that covers full-board meals and entertainment, on the six days/five nights cruise that departed from Manila.

Tourism Secretary Wanda T. Teo expressed optimism that Star Cruises’s flagship vessel will provide the Philippine government, private operators and host areas a consistent stream of revenues and

employment opportunities.

“We look forward to many years of fruitful, mutually beneficial relationship with Star Cruises.

There is a bright future ahead for the cruise industry as passengers will want to travel not just for pleasure but also for purpose,” she noted. “If you think about it, why put up with long tedious travels to get to your destination when you can enjoy the journey, as well?” Teo said during the cruise’s launch, that will take its passen-

gers from Manila to Laoag in Ilocos Norte, Kaoshiung in Taiwan, then onward to Hong Kong, before returning to Manila.

Data from the DOT indicated that for the 94,000 passenger destination days (PDD) in 2015, an estimated $21.2 million (over P1 billion) was spent by cruise passengers in the Philippines for 77 port calls.

The DOT projects the visitors’ spending to rise this year, with the targeted 117 port calls and 120,000

PDDs. The agency added, with Manila operating for the first time as a homeport, additional revenues for the economy will be generated from for pre- and post-cruise activities and services, which include provisioning, bunkering, garbage disposal and sludge removal.

During a news press conference while the ship was docked in Hong Kong, Star Cruises President Ang Moo Lim said the company’s new cruise package, dubbed “Jewels of the South China Sea”, was in

support of the Asia Cruise Cooperation (ACC) program, which was created to boost the promotion of existing tour programs, as well as develop tie-ups with other cruise companies. Members of the ACC are Taiwan, Hong Kong, the Philippines, Hainan and Xiamen in China.

Teo said: “Our talks with the Cruise Lines International Association [CLIA], our membership in the Asia Cruise Fund and Asian Cruise Cooperation, our commit-

ment to the Asean Cruise Strategy and very recently, the completion of the country’s National Cruise Tourism Strategy—all of these have scored us significant weights in putting us [the Philippines] in the right direction [toward becoming a major cruise destination].”

In a message read by JordaApo, the DOT chief congratulated Star Cruises for believing in the Philippines and expressed gratitude for helping the Philippines “get closer to our vision as a regional cruise center to serve as homeport and, eventually, as center for cruise-crew training, maintenance services and shipbuilding in the long term.”

Representatives from the Taiwan Tourism Bureau and Hong Kong Tourism Board also made congratulatory speeches to Star Cruises. Genting Hong Kong, a leading global leisure, entertainment and hospitality corporation owns the cruise company. Ang noted that more than a third of Superstar Virgo’s crew of 1,100 are Filipinos, with a good number serving as supervisors.

Japan to finance 14 mega infra projects Continued from A1

be purchased from, ty pically including the donor country and/or another narrowly specified group of countries.

“This is really over five years and many of these projects will not happen in one year. They will undergo FS [feasibility study], engineering design and bidding. There’s still a lot of processes,” Pernia said.

The infrastructure projects were discussed in a meeting between the economic managers and high-level officials from the Japanese government in Tokyo earlier this week.

The economic managers and their Japanese counterparts also signed the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation. This a mediumterm engagement entered into

by Manila and Tokyo that seeks to deepen infrastructure and economic cooperation between the two governments.

The Nation BusinessMirror

news@businessmirror.com.ph

Editor: Dionisio L. Pelayo • Friday, March 31, 2017 A3

No reason for ICC to interfere with Philippine affairs–Palace

By Cielito M. Reganit | Philippines News Agency

M

ALACAÑANG is insisting that the International Criminal Court (ICC) has no business to meddle with Philippine affairs, stressing that the international body has no reasons to do so.

In a statement, Presidential Spokesman Ernesto C. Abella said the ICC cannot arbitrarily interfere in the domestic affairs of a sovereign country like the Philippines.

“There is no concrete evidence pointing to crimes against humanity here; such crimes must be widespread and systematically directed against a specific group. This element is absent in the Philippine situation,” Abella said.

His statement came after the Commission on Human Rights (CHR) said the ICC is closely monitoring President Duterte’s war against illegal drugs owing to the high number of deaths.

In an interview aired on Tues-

day on television, CHR Chairman Jose Luis C. Martin Gascon said the number of deaths under the administration’s war against drugs has already breached the generally accepted threshold set by the international community for killings to be termed as widespread.

“The general consensus is that you have already reached a thousand deaths,” he said.

The National Police has acknowledged that more than 2,500 have been killed in legitimate police antidrugs operations.

Thousands more were killed in vigilante-style killings believed to be the work of drug-syndicate members out to silence their comrades.

Pinoy scientists not allowed on Sino ships exploring Benham Rise–DFA

T

HE Department of Foreign Affairs (DFA) on Thursday said that, despite several requests, the government turned down China’s requests to visit Benham Rise because they refused to take Filipino scientists with them.

“For a number of years, China has been asking for permission to do research on Benham Rise but were denied. I understand that China didn’t fulfill the requirement of having Filipino scientist onboard [research ships],” acting Foreign Affairs Secretary Enrique Manalo said.

Maria Lourdes Montero, acting executive director and officer in charge of the Maritime and Ocean Affairs Office confirmed in a Senate hearing on Wednesday that the Chinese applied for permission to explore Benham Rise in 2015 and 2016.

“China has made at least two requests to conduct marine scientific research in Benham Rise, both of which were denied,” Montero told the joint hearing by the Senate Committees on Finance and on Economic Affairs.

Benham Rise became a contentious issue after Defense Secretary Delfin N. Lorenzana told a security briefing on March 9 that China, aside from having practically seized Scarborough Shoal, has also shown interest in Benham Rise, an underwater plateau in the Pacific Ocean that belongs to the Philippines.

He said a Chinese survey ship was monitored plying the maritime territory for as long as three months last year.

The DFA at the time sent a diplomatic note to China to explain what its ship did at Benham Rise last year.

Manalo, however, said China has recog-

nized the Philippines’s sovereign rights to the offshore region, which lies within the country’s exclusive economic zone (EEZ) and continental shelf.

“We were satisfied with their explanation,” Manalo added.

But Manalo said a permission from China or other countries is “required” if they “want to survey or whatever they wish” and “if the Philippine government wishes to grant it”.

“We have the sovereign rights, but we have requirements which I understand China did not fulfill. We require to have a Filipino scientist onboard,” he said.

Under the Unclos, the 1982 maritime treaty signed by more than 100 countries, including China and the Philippines, coastal states were granted exclusive rights to exploit, explore and manage resources in a stretch of waters extending 200 nautical miles from its coast in an area called the EEZ. Those rights extend further to a country’s continental shelf area beyond the EEZ. President Duterte, on the other hand, said the Chinese ships that went to Benham Rise were just research vessels and have not intruded on the country’s territorial waters.

Asked about this, Manalo clarified that: “What the President said was, if it’s a friendly visit, you are welcome to visit the Philippines.”

The Chinese Foreign Ministry welcomed the remarks of Duterte and stressed that China and the Philippines had a “friendly exchange of views” on the matter.

Benham Rise, named after US geologist Andrew Benham who first discovered it in 1933, spans 13 million hectares and is believed to be rich in marine resources, natural gas, oil, and minerals.

Sandiganbayan postpones arraignment of cops, soldiers in ‘Morong 43’ case

T

HE Sandiganbayan has deferred the arraignment of military and police officers over the February 2010 arrest of 43 health workers in Morong, Rizal, that was supposed to be held on Thursday to late May, human-rights lawyers said.

In a statement, the National Union of Peoples’ Lawyers (NUPL) said several of its members had gone to the anti-graft court to formally enter their presence, as private prosecutors in the case for violation of Republic Act 7438, or “An Act Defining Certain Rights of Person Arrested, Detained or Under Custodial Investigation as Well as the Duties of the Arresting, Detaining and Investigating Officers, and Providing Penalties for Violations Thereof,” against the officers, among them retired Army generals Jorge Segovia and Aurelio Baladad.

However, the lawyers learned that “most of the accused” had filed motions to quash the charges, which the court heard on March 24.

“Upon verification with the court, it turned out that it had already issued an order on the same date requiring the prosecution to comment within 30 days and, at the same time, canceling today’s [Thursday’s] scheduled arraignment and resetting it to May 28,” the NUPL said.

It added that the complainants had not been notified of the cancellation of the arraignment.

The health workers, dubbed the “Morong 43,” claim they were illegally arrested, detained and tortured when the military and the police raided a farmhouse where they had allegedly been conducting medical training.

But even Gascon admitted that, while the CHR is investigating possible cases of human-rights violations in the drug war, it is not yet time to bring matters to the ICC. “CHR prefers to pursue justice within our own national mechanisms,” Gascon said.

Sometime in October last year, ICC Chief Prosecutor Fatou Ben-

souda warned that “any person in the Philippines who incites or engages in acts of mass violence, including by ordering, requesting, encouraging or contributing, in any other manner, to the commission of crimes within the jurisdiction of the ICC, is potentially liable to prosecution before the Court.”

She added extrajudicial killings

(EJKs) may also fall under the jurisdiction of the ICC, “if they are committed as part of a widespread or systematic attack against a civilian population pursuant to a State policy to commit such an attack.”

However, Abella pointed out, “the Philippine Senate already absolved the President, and there exists no such crime.”

The Senate Committee on Justice and Human Rights has concluded in October 2016 that Duterte has no involvement in alleged summary executions during his term as Davao City mayor and as President.

Sen. Richard J. Gordon, the panel chairman, said even the current EJKs could not be concluded as state-sponsored.

Economy

A4 Friday, March 31, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

Neda rushes detailed valuation Uphill climb for women who return to workplace plan for PHL natural resources W

T

By Cai U. Ordinario

@cuo_bm

he government is keen on completing the indicators for the Natural Capital Accounts (NCA) to ensure the country can shift to a more sustainable growth path, according to the National Economic and Development Authority (Neda).

Neda Secretary Ernesto M. Pernia said the indicators are essential to enable the government to compute the value of the country’s natural resources.

The creation of the NCA is part of the Philippines Wealth Accounting and Valuation of Ecosystem Services (Phil-WAVES) project between the country and the World Bank.

“I’d like it done as soon as possible. The project is already coming to an end, so we should already be using whatever output and recommendations they have,” Pernia told reporters on Thursday.

Phil-WAVES, which began in 2010, aims to create macroeconomic indicators and develop the national and ecosystem accounts.

This will assist in evidence-based decision-making.

Pernia said NCA initiatives in the Philippines have started as far back as the 1990s. But the efforts did not prosper until the WAVES project of the World Bank.

The Neda secretary said the NCA will help Filipinos understand the economic value of the country’s natural resources and improve the management and utilization of these assets.

“Countries measure economic growth through gross domestic product or GDP. However, it’s clear that GDP is not a sufficient indicator of sustainability,” World Bank Philippines Country Director Mara Warwick said.

“The solution is to incorporate the full value of ecosystem services and the benefits that humans derive from them into policy-making through natural capital accounting or the NCA,” she added.

The creation of the NCA will boost the country's chances of meeting the 17 Sustainable Development Goals (SDGs) by 2030. The Global Agenda include several environment and climate change-related goals.

Specifically, SDGs 6, 7, 9 and 12 to 15 are dedicated to environment and climate change-related targets that countries like the Philippines committed to meeting by 2030.

SDG 6 is on ensuring sustainable management of water and sanitation for all; SDG 7 ensures access to affordable, reliable, sustainable and modern energy for all; and SDG 9 aims to build resilient infrastructure, promote inclusive and sustainable industrialization

Countries measure economic growth through gross domestic product or GDP. However, it’s clear that GDP is not a sufficient indicator of sustainability.”

—Warwick

and foster innovation.

SDGs 12 to 15 are ensuring sustainable consumption and production patterns; taking urgent action to combat climate change and its impacts; conserve and sustainably use oceans, seas and marine resources; and protect, restore and promote sustainable use of ecosystems and sustainably manage forests.

Biz development expert named new Tieza chief

P

hilippine tourism is expected to grow and attain its goal to be globally competitive and innovative with President Duterte’s recent appointment of Pocholo Joselito D. Paragas as general manager and COO of the Tourism Infrastructure and Enterprise Zone Authority (Tieza).

Paragas’s administration and management skills—culled from 20 years of experience forging private enterprises and doing consultancy work in banking and finance, land development and the tourism service industry fits into the role as GM/COO of Tieza, considering the agency’s vast responsibilities of building the country's much-needed tourism infrastructure.

Born on December 24, 1977, Paragas carved a niche for himself in business development after graduating with a degree in Landscape

paragas

Architecture from the University of the Philippines in Diliman, and pursuing further units for Masters in Business Administration at the Ateneo de Manila Graduate School.

T he Tieza is the countr y’s

pr inc ipa l bu i lder of tou r ism infrastructures.

Administratively under the Department of Tourism (DOT), Tieza is responsible for implementing policies and programs of the department pertaining to the development, promotion and supervision of tourism projects in the Philippines.

Republic Act (RA) 9593, or The Tourism Act of 2009, declares it a national policy for tourism as an engine of investment, employment, growth and national development, and strengthening the DOT and its attached agencies to effectively and efficiently implement that policy, and appropriating funds therefor.

The Tourism Act of 2009, principally authored by Sen. Richard J. Gordon, himself a former tourism secretary, also supports the establishment of tourism enterprise

zones (TEZs) to be the centers of tourism development in the country. Tieza is mandated to designate, regulate and supervise the TEZs established under this Act, as well as develop, manage and supervise tourism infrastructure projects in the country.

As the infrastructure arm of the DOT, Tieza has to merge public and private initiatives and investments in tourism, pursuant to the policies set by its board, which is chaired by the secretary of tourism.

The Tieza is governed by a board of directors composed of the secretaries of DOT, Departments of Public Works and Highways, Environment and Natural Resources and the Interior and Local Government, the Tieza COO, the Tourism Promotions Board COO, and five representative directors recommended by the Tourism Congress. PNA

Salceda elected chairman of defense dept’s MSAC

A

lbay Rep. Joey S. Salceda was recently elected chairman of the Department of National Defense (DND) Multi-Sector Advisory Council (MSAC) tasked to provide direction toward the desired goals of the Philippine Defense Transformation Roadmap (PDTR) 2028, the DND’s strategic and long-term organizational and development plan, with clearly defined direction and set of priorities.

MSAC was established along the principles of the Performance Government System (PGS), which promotes “good governance, transparency and accountability within the framework of stakeholders’ engagement and consultations, in accordance with the council protocols”.

It aims to ensure the DND is able to perform its defense mandate, and guide and help assess the implementation of its various policies and programs for the protection of the people and the state under PDTR 2028.

Salceda, who was first appointed as MSAC adviser prior to his election as its chairman, also sits as chairman of the Regional Advisory Committee for Philippine National Police Transformation and Development in the Bicol region.

He presently holds the rank of lieutenant colonel in the Armed

Go Lokal! stores in Manila Trade Secretary Ramon M. Lopez (right) and Robinsons President and COO Robina Gokongwei-Pe Lopez

walk through the newly launched Go Lokal! stores inside Robinsons Manila. In line with the Department of Trade and Industry’s (DTI) objective of providing greater market access to the best products of Philippine micro, small and medium enterprises (MSMEs), the partnership solidified respective commitments of the DTI and Robinsons to help communities and vulnerable sectors by allocating 10 percent of their net income generated by Go Lokal! stores to social causes and projects, including government-led drug-rehabilitation initiatives. Nonie Reyes

Forces ofthe Philippines (AFP) reserve force and is the regional commander of the 33rd Air Force Group Reserve in Bicol.

Salceda and other MSAC members took their oath of office on March 9 at Camp Aguinaldo in Quezon City, in front of senior defense officials.

Present during the rites were Gen. Alexander Yano, former AFP

chief of staff; Bai Rohaniza Sumndad-Usman, founder of Teach Peace, Build Peace; Marife Zamora of the Management Association of the Philippines; Alexander Lacson of the Institute for Solidarity in Asia; Antonio La Viña of Manila Observatory; Danilo Concepcion, University of the Philippines President; Donald Dee of the Employers’ Confederation

of the Philippines; Antonio Aquino of Makati Property Ventures; and Maria A. Ressa, CEO of Rappler Inc. Aside from policy recommendations to the DND, Defense Secretary Delfin N. Lorenzana said MSAC encourages participation from various sectors of society to ensure that defense strategies are responsive to the needs of Filipino people. PNA

omen returning to the work force are discriminated against by employers making it difficult for them to get employed, according to specialist professional recruitment consultancy firm Robert Walters.

In a whitepaper, Robert Walters said 44 percent of returning women in Asia took more than four months to secure a job.

One in five employers in Asia stated they were unsure whether hiring returning women will benefit the work place, while 24 percent stated the workforce will benefit “maybe a little” from such professionals.

“It is crucial for employers to recognize the value which returning women can contribute in the workplace. They usually come with relevant work experience and have a renewed energy to excel in their roles. Hiring managers should provide a customized induction program to help returning women reintegrate back into the workforce,” Eric Mary, Robert Walters Philippines country manager said.

However, if they are hired, some 48 percent of these women were penalized through low wages compared to their male counterparts.

Apart from low wages, around 38 percent said women returning to the work force face a lack of career advancement opportunities and 13 percent said they faced a lack of professional development opportunities.

In the Philippines around 68 percent of women who took career breaks were faced by these problems. They were forced to return to the work force for monetary considerations.

“Multiple reasons exist for taking a career break. Women often step off the career ladder for maternity leave, to take care of children or aging parents, or even study

68% The percentage of Filipino women returning to work who face discrimination and unequal pay compared with their male counterparts

breaks,” the whitepaper stated.

In order to help women get back to the work force and make them attractive applicants, Robert Walters said they needed to be enrolled in induction programs.

However, around 54 percent of Asian women were not inducted upon reentering the work force. In the Philippines alone, the number is higher at 58 percent.

“Induction programs that can enable easier integration into organizations, teams and help provide training and support are paramount to ensuring a smooth transition back to the work force,” Robert Walters said.

The whitepaper has been created to assist employers in identifying and addressing any possible biases in recruitment and inclusion to ensure women are given the opportunity to regain entry into the work force after a career gap.

It also provides recommendations on what organizations can do to change current attitudes of how returning women are perceived and treated in the workplace.

The survey gathered the views of over 2,200 clients and female professionals across China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Cai U. Ordinario

Group lauds PDP 2017-2022 push for marine sanctuaries

By Jonathan L. Mayuga @jonlmayuga

A

N ocean conservation advocacy non-governmental organization on Thursday lauded the adoption of small-scale fisheries model, a policy to be pushed by the government under the Philippine Development Plan (PDP) 2017 to 2022 approved last month.

In a news statement, Rocky Sanchez-Tirona, vice president for Rare Philippines, said in its latest development plan the government announced a commitment to pursue preferential access for small-scale fishers in managing coastal fishing grounds and marine sanctuaries.

The PDP 2017 to 2022 sets targets and lays down policies that serve as the basis for government strategies in achieving social and economic growth. The plan also serves as guiding framework for investment programming of the government, including projects that require official development assistance.

Rare has actively participated in the formulation of the PDP through public consultations.

The PDP asserts that “strongly motivating behavioral change at the national, community and individual levels” would be “the most effective strategy” in managing and conserving natural resources. This is embodied in Chapter 20: Ensuring Ecological Integrity, Clean & Healthy Environment.

Rare promotes the ecosystems approach to fisheries management and is working with local government units (LGUs) and coastal communities to promote managed-access areas wherein the protectors of local marine-protected areas (MPAs) will have preferential right to fish in designated areas outside fish sanctuaries.

This is consistent with the gov-

ernment plan to scale up community-based strategies that include territorial-use rights in fisheries, marine protected areas (MPAs), and seasonal closures for select species under the PDP 2017 to 2022.

“Networks of MPAs, fish refuge and sanctuaries and managed access areas will be pursued to improve ecological connectivity,” according to the PDP, as the government looks to implement these measures across municipalities on a national scale.

With the support of partners like the United States Agency for International Development, the German Environment Ministry, the Global Environment Facility and Bloomberg Philanthropies’ Vibrant Oceans Initiative, Rare has spent the last five years developing pilot projects in more than 30 municipalities that promote locally based rights for fishers in the Philippines.

These projects include the establishment of managed-access areas to support coastal fishers and protect the marine resources they depend on.

Among the sites that have passed local ordinances and implemented this scheme are Cortes and Cantilan in Surigao del Sur; Tinambac and Caramoan in Camarines Sur; Bindoy in Negros Oriental; and Del Carmen in Surigao del Norte. Fifteen more sites are set to follow within the year.

Rare has worked or is currently working with 93 coastal municipalities to assist them in managing their marine and fishery resources.

In addition, Rare has been working with the National Economic and Development Authority, the government agency in charge of crafting the PDP, on a study designed to enhance coastal resource management planning at local and national levels, and identify appropriate financing schemes that would help sustain municipal fisheries.

The Regions BusinessMirror

news@businessmirror.com.ph

Editor: Efleda P. Campos • Friday, March 31, 2017

A5

Japan gives P340-M grant to build power plant in Mindanao

By Cai U. Ordinario

T

@cuo_bm

HE Japanese and Philippine governments on Thursday signed an agreement to build a P340million energy project for Mindanao’s conflict-affected areas.

The project, to be financed by a grant from the Japan International Cooperation Agency (Jica), will benefit 44,000 households

in the region.

“This project is part of our continuing commitment to support peace and development in Mind-

anao,” Jica Chief Representative Susumu Ito said. “By helping resolve the power-supply issues in conflict-affected areas, we aim to help the Philippines create more economic activities in the region.”

The project, Socioeconomic Planning Secretary Ernesto M. Pernia said, will help improve power supply in Mindanao where household electrification is only at 72.38 percent.

Pernia said the project would involve the provision of powerdistribution equipment, such as transformers, poles, conductors and boom trucks, to six electric cooperatives.

“The project is expected to contribute to the long-term goal of lowering system loss by 13 percent, increase in-line capacity by 130 percent, and improve cooperatives’ power-distribution equipment installation and maintenance work in the Bangsamoro area,” Pernia said.

Jica said the project is part of its support for the Bangsamoro people and the Philippines as a whole.

The project was identified under the Jica’s Bangsamoro Development Plan (BDP) 2, which was meant to jump-start economic activities in Mindanao’s conflict areas.

Japan is the Philippines’s top source of official development assistance (ODA). In 2015 loans and grants from Japan accounted for 35.19 percent of the country’s total ODA portfolio.

Jica’s ODA to the Philippines amounted to $5.53 billion in 2015.

Of this, $5.39 billion were loans and $139.82 million were grants.

Construction of ₧232-M road starts in Southern Leyte

By Elmer V. Recuerdo

T

Correspondent

ACLOBAN CITY—Construction of a P232-million farmto-market road (FMR) funded under the Department of Agriculture’s (DA) Philippine Rural Development Project (PRDP) has started.

The 19.4-kilometer road linking the towns of Lilo-an and San Ricardo is the biggest PRDP-funded project in Eastern Visayas and ranks among the most expensive in the country.

The groundbreaking ceremony of the rehabilitation and improvement of the San Roque-Bahay subproject was held on March 24.

“This is the biggest PRDP-funded infrastructure subproject in the region. Perhaps, it even ranks among the highest throughout the country,” said Nichols A. Manalo, DA executive director in Eastern Visayas.

Manalo said he expects the project to boost the agriculture and tourism potentials in the area. He said the road offers on one side a panoramic view of the Pacific Ocean, where fish remains abundant, while the other side is a fertile expanse of land suitable for crops and livestock production. “This place has a lot to offer,” he said.

Once completed, the FMR will provide a vital link between the

towns of Lilo-an and San Ricardo and benefit 2,203 households from 14 barangays between the two towns.

Among the major agricultural products in the area are coconut, rice, corn, abaca, banana and root crops. Lilo-an contributes a significant share of the province’s coconut and abaca production.

Cirilo Namoc, PRDP’s national deputy project director, said the road subproject would be beneficial to the residents in transporting their farm and fishery products to the market.

Namoc added this will open better marketing options due to reduced transport and hauling cost. He said this will entice more farmers to ex-

pand their farming operations. This will also give residents better access to technical assistance, as well as basic social services.

“It is definitely exciting to see how this road will generate impact in terms of increasing the income level of our rural constituents, especially the farmers—which is the overriding objective of the PRDP,” Namoc said.

“We expect that this road will result in a shorter travel time and lesser fare for us in bringing our farm products to the market. We are also expecting an easier marketing as buyers and traders will already be able to visit us,” said Juditha Yega, a farmer.

“This project will lessen incidence of children dropping out from school. Usually during rainy days, it is risky for students to go to school because the road becomes slippery and inaccessible for motor vehicles,” Yega added.

Southern Leyte Rep. Roger Mercado said this project is a realization of his dream for an improved access and connectivity among the municipalities of Panaon Island.

“I dream of a better road network connecting the entire Panaon Island. This road subproject is a milestone toward that direction, and I am thankful for the support of the DA,” he said.

Cebu City launches Smart Infocast

T

HE city of Cebu officially launched on Wednesday its Infocast program with Smart Communications Inc. to strengthen its communication strategies and disaster-preparedness efforts.

Smart Infocast is a Web-based communications solution that allows the city to send warnings, advisories, preparedness tips and important announcements to over 25,000 subscribers daily. The platform is free for Smart, Sun Cellular and Talk ’N’ Text subscribers.

Cebu City Mayor Tomas Osmeña and executives of Smart from Manila attended the event held at the City Hall.

These included Ramon R. Isberto, head for Smart’s Public Affairs Group; Maria Jane C. Paredes, center head/ AVP of Smart’s Public Affairs Group; and Gabby Cui, head of the SME Community Engagement Services.

Osmeña thanked Smart for providing a free platform to the Cebu City government to help in information dissemination—especially during disasters, emergencies and other important events.

The launch was also conducted during the regular meeting with the Cebu Association of City and Municipal Public Information Officers hosted by the Cebu City government on the same day. Charles R. Pepito

A6 Friday, March 31, 2017 • Editor: Max V. de Leon

AseanFriday BusinessMirror

Indonesia to widen crackdown on tax cheats as amnesty closes

W

ith Indonesia’s tax amnesty coming to an end, authorities are now setting their sights on those who didn’t participate and continue to evade taxes.

Officials plan to scrutinize credit-card data from banks and compare those with tax reports after the amnesty program uncovered more than $353 billion in previously undeclared assets. While the participants in the amnesty would be “supervised”, the rich or large taxpayers who didn’t take part would pay a much heavier price, including penalties of as much as 200 percent, Hestu Yoga Saksama, director for public relations at the Directorate General of Taxation, told reporters in Jakarta on Wednesday.

The amnesty program, a key plank in President Joko Widodo’s push to boost revenue needed to fund ambitious spending plans, will end today (Friday), with the government already netting about 125 trillion rupiah ($9.4 billion) in revenue. More than 800,000 participants declared 4,704 trillion rupiah of assets since the amnesty began last July, with Singapore topping the list of countries where Indonesians stashed money, according to the Finance Ministry.

$353B The value of previously undeclared assets uncovered through the amnesty program

Widodo, known as Jokowi, is banking on revenue from the amnesty to fund billions of dollars in infrastructure projects as Southeast Asia’s biggest economy struggles to return to historic levels of economic growth. The country’s economy expanded 5 percent in 2016, well below the 7 percent that Jokowi has targeted.

“The tax amnesty was a carrot, so they’ve got to use the stick, they got to show that if you didn’t comply when we gave you a chance to do so, we’re going to hit you hard,” said Wellian Wiranto, an economist at OverseaChinese Banking Corp. in Singapore.

“It would show that they take tax compliance seriously.”

Hong Kong, Cayman Islands

The government had set a repatriation goal of 1,000 trillion rupiah, but only about 146 trillion rupiah was brought back. Singapore accounted for 84.5 trillion rupiah of that, followed by Cayman Islands with 16.5 trillion rupiah and Hong Kong with 16.3 trillion rupiah, ministry data show.

While the amnesty was successful in terms of revenue raised and the number of participants, repatriations were disappointing, said Yustinus Prastowo, executive director at the Center for Indonesia Taxation Analysis in Jakarta. They were probably limited by the curbs on the avenues of investment under the program, he said.

“The government must be more

creative to create other investment products and also tighten law enforcement, in order to draw the assets to Indonesia,” Prastowo said.

Singapore was the chief location for assets held abroad, with 751.19 trillion rupiah, followed by the British Virgin Islands with 76.92 trillion rupiah and Hong Kong with 56.27 trillion rupiah, said Suryo Utomo, special staff for tax compliance at the Finance Ministry. About 52.9 trillion rupiah was held in the Cayman Islands and about 41.2 trillion rupiah in Australia.

Indonesia has a low rate of tax compliance with only about 10 million filing tax returns in 2015 out of its 260 million people. Finance Minister Sri Mulyani Indrawati has said the success of the tax-amnesty plan will help the government to increase the tax-to-GDP ratio from 11 percent. Bloomberg News

news@businessmirror.com.ph

Singapore exchange mulls over tie-ups as deals grow harder

E

ven as regulators crack down on yet another round of consolidation among exchange operators, at least one major bourse is still keen to pursue deals. Singapore Exchange Ltd., which runs Southeast Asia’s largest stock and derivatives market, has in recent months held exploratory talks about possible tie-ups with overseas exchange operators, people familiar with the matter said.

Discussions with parties, including Nasdaq Inc. and CME Group Inc., have ranged from potential collaborations to the sale of a stake in the company or even a full merger, the people said, asking not to be identified as the details aren’t public.

SGX, with a market value of about $5.9 billion, has been weighing its options, as rivals attempt to consolidate across the industry. An outright sale would be complicated as cross-border deals between exchange operators attract intense scrutiny from regulators, the people said. European Union regulators on Wednesday blocked Deutsche Boerse AG’s $14-billion takeover of London Stock Exchange Group Plc., adding to a long history of failed merger attempts between bourses.

SGX has not hired any advisers and no formal decisions have been made about how to proceed, the people said. It’s unclear if any talks are currently active.

Representatives for CME, Nasdaq and SGX declined to comment.

Asia footing

Partnering with or acquiring a stake in SGX would give a US or European exchange a stronger footing in Asia as the fight for global capital escalates. The company, based in Singapore with offices in mainland China, Hong Kong, India, London and Japan, reported net income of S$349 million ($250 million) in 2016, little changed from a year earlier, on total revenue of S$818 million.

The average daily value of shares traded on SGX this year was about $847 million, up 11 percent from $763 million in 2016, according to data compiled by Bloomberg.

Still, that’s down from $1.12 billion a day in 2013.

The Singapore bourse already has an existing relationship with New York-based Nasdaq, which has a market valuation of $11.4 billion and runs trading venues in the US, Europe and Canada. Nasdaq sells technology to market operators in 50 countries, and SGX is one of its customers, according to regulatory filings.

In 2011 SGX’s A$8.35-billion ($6.4-billion) bid for Sydney-based ASX Ltd. was scuttled by Australia’s government. The deal would have created the world’s fifth-largest bourse operator at that time.

Bloomberg News

Chinese military conducts training drill near Myanmar border Thailand’s former tourism chief gets C 50 yrs for bribery

hina has conducted military exercises near its border with Myanmar, where fighting between the Myanmar army and ethnic rebels has flared in recent months.

The annual training exercise on Tuesday involved the Chinese army and air force and tested troops’ rapid response and joint strike capabilities, the defense ministry said in a statement.

China’s government said earlier this month that more than 20,000 people from Myanmar have fled into China amid renewed fighting. At least 30 people were killed this month in a single day in a Myanmar town in a Chinese-speaking region near the border.

China has called for a cease-fire and says authorities in the border area have offered shelter and assistance to the refugees.

Col. Fang Xin of the Joint Staff Department of Southern Theater Command was quoted as saying the exercises demonstrated the determination of the People’s Liberation Army to defend national security and protect lives and property along the border.

The ministry said China informed Myanmar in advance of the drills.

An armed militant group fighting Myanmar’s government on behalf of the country’s Muslim Rohingya minority has issued a statement asserting its right to self-defense and denying links to any terrorist group.

The statement, dated March 29 but released on Tuesday through overseas sympathizers, is the first public announcement issued in the name of the Arakan Rohingya Salvation Army, which previously called itself the Faith Movement, or Harakah alYaqin. Analysts, including the Brussel-based International Crisis Group, say it has been carrying out armed resistance.

The statement says the group “came forward to defend, salvage and protect Rohingya community in Arakan with our best capacities as we have the legitimate right under international law to defend ourselves in line with the principle of self-defense.”

Arakan is another term for Rakhine, the western state of Myanmar where most of the country’s 1 million Rohingya live.

The Rohingya face severe discrimination in Buddhist-majority Myanmar and were the targets of intercommunal violence in 2012 that killed hundreds and drove about 140,000 people—predominantly Rohingya—from their homes to camps for the internally displaced, where most remain.

Most are denied citizenship because they are looked on as having migrated illegally from Bangladesh.

T

Hard-line Buddhists, including monks, walk through a street during a protest march, led by Rakhine State’s dominant Arakan National Party, against the government’s plan to give citizenship to some members of the persecuted Rohingya Muslim minority community in Sittwe, Rakhine state, Myanmar. AP

We do not associate with any terrorist group across the world. We do not commit any form of terrorism against any civilian, regardless of their religious and ethnic origin, as we do not subscribe to the notion of committing terrorism for our legitimate cause.”—Arakan group The statement issued 20 demands to the government for ensuring Rohingya rights.

In October last year, armed men killed nine Myanmar border guards, triggering a savage counterinsurgency sweep by the army in the Rohingya area of Rakhine. Alleged human-rights abuses by the army, including rape and killing of civilians and the burning of more than 1,000 homes, caused international criticism and led to a UN Human Rights Council call last week for an independent international investigation.

Harakah al-Yaqin has taken credit for the killings of the border guards, according to the International Crisis Group, and the government has accused them of being terrorists.

“We do not associate with any terrorist group across the world,” the Arakan group’s statement said. “We do not commit any form of terrorism against any civilian, regardless of their religious and ethnic origin, as we do not subscribe to the notion of committing terrorism for our legitimate cause. “

It said the group assures “the safety and well-being of all ethnic communities, their places of worship and properties” in Rakhine state.

An extensive report issued last December by the International Crisis Group said the Harakah al-Yaqin “is led by a committee of Rohingya emigres in Saudi Arabia and is commanded on the ground by Rohingya with international training and experience in modern guerrilla war tactics. It benefits from the legitimacy provided by local and international fatwas (religious judicial opinions) in support of its cause and enjoys considerable sympathy and backing from Muslims in northern Rakhine state, including several hundred locally trained recruits.” It said the group did not appear to have jihadist motivations.

The report said that “the group apparently killed several informers”.

The group’s statement was signed by its leader, Ata Ullah, who has appeared in several videos showing him proclaiming the group’s positions while surrounded by armed followers. AP

he former head of Thailand’s tourism promotion board was sentenced on Wednesday to 50 years in prison for accepting $1.8 million in bribes from two Hollywood producers to let them organize the Bangkok International Film Festival a decade ago.

A court established last year to hear corruption cases found Juthamas Siriwan guilty on 11 counts, each carrying a six-year sentence, but prison sentences are capped at 50 years under Thai law. Her daughter Jittisopa, into whose accounts the money was transferred, was found guilty on 11 counts for which she received a 44-year prison sentence. Juthamas was also ordered to forfeit the bribe money.

The Central Court for Corruption and Misconduct, set up to hear cases against state officials accused of graft and misconduct, is part of the Criminal Court. It denied a request to allow the women to be freed on bail.

A US federal court in 2010 sentenced filmmakers Gerald and Patricia Green to six months in prison after they were convicted of conspiracy under the Foreign Corrupt Practices Act, which prohibits making corrupt payments to foreign officials for business purposes. The sentence also called for three years of supervised release and the payment of $250,000 in restitution.

The courts found that the Greens paid bribes to Juthamas from 2002 to 2007, while she was governor of the Tourism Authority of Thailand, to secure the film festival rights and tourismrelated deals that earned them more than $13 million in revenue.

US prosecutors said the Greens created shell companies to pay off Juthamas, with the money then transferred into the bank accounts of Juthamas’s daughter and a friend.

Juthamas ran for a parliamentary seat in 2007 but pulled out of the race after the allegations surfaced.

Gerald Green’s career in Hollywood spanned more than 30 years. He paired with Oliver Stone on Salvador which was nominated for two Academy Awards, and served as executive producer on the Christian Bale-led Rescue Dawn in 2006.

He died in 2015.

Patricia Green produced Diamonds, a comedy starring Kirk Douglas and Lauren Bacall.

Under the Greens, the Bangkok International Film Festival was able to attract A-list stars to its red-carpet events, including director Stone and actors Val Kilmer and Colin Farrell.

The festival is still supported by the tourism authority. AP

BusinessMirror

www.businessmirror.com.ph

Friday, March 31, 2017 A7

INVIGORATING DAVAO’S

URBAN LANDSCAPE

Artist’s Perspective Abreeza District

T

HE way our cities are envisioned plays a vital role in the way residents live. A vibrant urban landscape has people at the core of its design foundations, and should be able to run efficiently on its own. It should be complete, highly-connected and transport-accessible, with avenues to essential services, open spaces for respite, contact, and exchange, as well as welcoming potential with corporate spaces for startups and established enterprises alike.

It’s this variety of experiences that ultimately result in a happy and productive city. Embodying this vision of a contemporary city, Davao City rises as one of the region’s most progressive urban centers for commerce and leisure.

Enveloped by an abundance of natural resources, a vibrant panorama of mountains and sea, and an unmatched location of inimitable potential, it is Mindanao’s center of growth and dynamism. Davao defines a standard of how cities can be transformed, with comprehensive civic programs and services that equal our more developed neighbors in the globe.

As with any emerging city, the creation of mixed-use communities is an organic upward growth that presents unique opportunities for urban dwellers and potential investors alike. These models imbue a diversified living experience that conveniently captures all of life’s essentials, and create a distinct sense of community where people feel comfortable to thrive, live, and linger in.

Such a community encapsulates Davao’s many assets in Abreeza—a dynamic mixed-use district developed by Ayala Land in partnership with Davao-based Anflo Management and Investment Corporation (Anflocor). This 10-hectare complex features a full spectrum of lifestyle and business choices with Abreeza Mall,

Abreeza-Ayala Corporate Center, Seda Abreeza lifestyle hotel, and residential developments namely Abreeza Place, Abreeza Residences, and Patio Suites.

As the district’s newest addition, Patio Suites becomes your own vibrant city getaway. It features a vast shared patio with an outdoor leisure amenity area, cultivating warm day-to-day connections. Frolic in the pool, lounge in the comfort of poolside cabanas, or gather for cocktails and conversation in the landscaped activity lawn—an intuitively planned space that complements condo living with the warmth of a unique backyard atmosphere.

Patio Suites transforms into your own haven in the midst of a burgeoning contemporary district, cascading a lifestyle in step with a city that embraces its urban heritage and people.

Abreeza lays out a complete lifestyle masterplan in Davao—walkable destinations, homegrown retail choices, leisure experiences, welcoming open spaces for recreation, vibrant corporate environments, and prime residential options. All these converge everyday convenience for the contemporary urbanite.

For more information about Patio Suites: (632) 321 1725 (Davao), (632) 848 5100 (Manila)Visit our showroom at the G/L Abreeza Mall or our website www. alveoland.com.ph

Artist’s Perspective Patio Suites Facade

Artist’s Perspective Patio Suites Pool Area

A8

The World BusinessMirror

Friday, March 31, 2017

Editor: Lyn Resurreccion • www.businessmirror.com.ph

Little sign of a ‘Trump bump’ in the economic forecast

C

Civilians wait for aid in Mosul, Iraq, amid an offensive to take the city back from the Islamic State group on March 13. From Syria and Yemen to Mosul, where air strikes killed dozens of people on March 17, the United States military is deepening its involvement in a string of complex wars, ones lacking clear endgames. Ivor Prickett/The New York Times

With no endgame in sight

US war footprint grows in Mideast

B

EIRUT—The United States launched more air strikes in Yemen this month than during all of last year. In Syria it has airlifted local forces to front-line positions and has been accused of killing civilians in air strikes. In Iraq US troops and aircraft are central in supporting an urban offensive in Mosul, where air strikes killed scores of people on March 17.

Two months after the inauguration of President Donald J. Trump, indications are mounting that the US military is deepening its involvement in a string of complex wars in the Middle East that lack clear endgames.

Rather than representing any formal new Trump doctrine on military action, however, US officials say that what is happening is a shift in military decisionmaking that began under President Barack Obama. On display are some of the first indications of how complicated military operations are continuing under a president who has vowed to make the military “fight to win”.

In an interview on Wednesday, Gen. Joseph L. Votel, the commander of US Central Command, said the new procedures made it easier for commanders in the field to call in air strikes without waiting for permission from more senior officers.

“We recognized the nature of the fight was going to change and that we had to ensure that authorities were down to the right level and that we empowered the onscene commander,” Votel said.

He was speaking specifically about discussions that he said b e g a n l a s t No ve mb e r a b out how the fights in Syria and Iraq against the Islamic State (IS)

14,324 The number of combined forces of United States soldiers and troops from North Atlantic Treaty Organization in Afghanistan

were reaching critical phases in Mosul and Raqqa. Concerns about the recent accusations of civilian casua lties are br ing ing some of t hese det a i ls to l ight.

But some of t he sh if ts have a lso involved sma l l increases in t he deploy ment a nd use of US forces or, in Yemen, resuming aid to a l lies that had prev iously been suspended.

A nd they coincide w ith t he set t l ing in of a president who h a s vowed to i ntensi f y t he f ight aga inst e x t rem ists abroad, a nd whose budget a r y a nd rhetor ica l pr ior it ies have ind icated a m i l it a r y-f irst ap proach even as he has proposed c uts in d iplomat ic spend ing.

To some critics, that suggests that much more change is to come, in difficult situations in a roiled Middle East that have never had clear solutions.

Robert Malley, a former senior official in the Obama administration and now vice president for policy at the International Crisis Group, said the uptick in military involvement since Trump took office did not appear to have been accompanied by increased planning for the day after potential military victories.

“The military will be the first to tell you that a military operation is only as good as the diplomatic and political plan that comes with it,” Malley said.

The lack of diplomacy and planning for the future in places like Yemen and Syria could render victories there by the US and its allies unsustainable.

“From harsh experience, we know that either US forces will have to be involved for the long term or victory will dissipate soon after they leave,” he said.

Others fear that greater militar y involvement cou ld drag the US into murk y wars and that increased civ ilian deaths cou ld feed anti-A mer icanism and jihadi propaganda.

Some insist that this has already happened.

“Daesh [Arabic acronym for Islamic State] is happy about the American attacks against civilians to prove its slogans that the Americans want to kill Muslims everywhere and not only the Islamic State’s gunmen,” a resident of the Syrian city of Raqqa wrote via WhatsApp. He gave only his first name, Abdul-Rahman, for fear of the jihadis.

The shift toward greater military involvement extends into one of Obama’s central legacies: the prolonged US presence in Afghanistan, where more than 8,400 US sold iers and 5,924 troops from North Atlantic Treaty Organization and other allies remain, and where the Taliban have been resurgent.

Plans have been announced to se nd 3 0 0 US M a r i nes to Helmand province, their first deployment there since 2014.

And the US commander, Gen. John W. Nicholson Jr., told Congress in Februar y that he would like another “ few thousand ” US and coalition troops.

But the changes have also been notable in Yemen, Syria and Iraq, all home to overlapping conflicts in fai led states where jihad i groups like al-Qaeda and the Islamic State have taken advantage of the chaos to step up operations.

Even while being drawn more deeply into those conf licts, the Obama administration sought to limit US engagement while pushing—mostly in vain—for d iplomat ic solut ions. It a lso launched frequent air strikes to kill individual jihadis or to destroy their facilities and sent thousands of US troops back to Iraq to train and advise Iraqi forces, and also provide firepower, so they could “degrade and ultimately destroy” the IS. But under Obama, the White House often spent weeks or even months deliberating certain raids and air strikes out of concern for US service members and civilians—and often to the frustration of commanders and US allies.

Trump’s tough statements before coming into office, and the rise in civilian deaths in recent US strikes, have raised questions about whether the new president has removed constraints from the Pentagon on how it wages war.

But administration officials say that has not yet happened.

And military officials insist that the streamlined process for air strikes does not exempt commanders from strict protocols meant to avoid civilian casualties.

Speaking before the House Armed Services Committee on Wednesday, Votel said the Pentagon had not relaxed its rules of engagement. He called the mounting toll of civilian deaths in Iraq and Sy ria “absolutely tragic and heartbreaking” and said Central Command was investigating their cause.

New York Times News Service

onsumers are more confident. Stocks are up five percent since the start of the year. And from the president on down, there’s talk of a Trump bump.

The only problem: The boom is apparent everywhere except in the economic data.

It’s not that the economy is stalling—far from it. But with the first quarter ending on Friday, growth in the first three months of the Trump ad m i n i st rat ion i s look i ng much the way it did under President Barack Obama.

In fact, experts see the GDP in the quarter coming in at only about 1 percent, on an annualized basis—less than half the pace in the second half of 2016, and a far cry from President Donald J. Trump’s own 4-percent target. “ There is a tempora l d isconnect,” said Ellen Zentner, chief US economist at Morgan Stanley. “ There has been an incredible rise in sentiment, but the proof is in the pudding later.”

Zentner expects growth of 1 percent this quarter, and considers recent data “solid”, but added that the big gap between expectations and reality “creates discomfort for economists and monetary-policymakers.” “ The divergence is stunning,” she added, drawing a distinction between “soft data” like consumer confidence and “hard data” like retail sales.

The pattern continued this week, when the Conference Board reported on Tuesday that its index of consumer confidence in March rose to its highest since December 2000.

More hard data is expected on Friday, when the Commerce Department releases new figures on personal income and spending in February.

Wa l l Street, which surged in the months after Tr ump’s unexpected victor y on hopes of t a x c uts a nd dereg u l ation, is coming to gr ips w ith the fact that at least in the shor t ter m, the out look remains restrained. T he Dow Jones indust r i a l average h a s d ro p p e d on n i ne out of the last 10 trading days, the longest stretch of losses since 2011, a lbeit for a tota l decline of only 1.4 percent.

One quarter is only a snapshot, a nd of f ic i a l gover nment data on the GDP for the period w ill not be out for another month. W hat is more, the US economy is ex pected to pick up some speed later in the year, especia l ly if the W hite House and Congress can agree on a pack age of promised ta x cuts and new infrastr ucture spending.

The Federal Reserve raised interest rates this month and signaled two more rate increases later this year, indicating that the central bank is also in the faster-growtharound-the-corner camp.

Still, for all of 2017, the economy is expected to expand by roughly 2 percent, the rate of the recovery under Obama. The identical figures illustrate how much easier it is for a president to lift economic spirits, as opposed to actual growth rates.

If tax reform and other legislation in Washington suffer the same fate as the bid to roll back Obama’s health care overhaul did last week, Zentner said, the Trump bump “could be built like a house of cards that comes crumbling down.”

Part of the problem is that despite Tr ump’s Ova l Office sessions w ith chief executives and the retur n of what the economist John Maynard Keynes termed “animal spir-

its”, corporate America is not investing heav ily, at least so far, in new plants and equipment. At the same time, demand in many industries is growing only modestly, while a few sectors, like retail chains, are having to make painful adaptations to a rapidly evolving consumer landscape.

Retail stores are top customers for Valdese Weavers, a century-old maker of highend fabrics nestled in the Blue R idge Mountains of North Carolina, but Michael Shelton isn’t complaining.

“Business is better for us than it should be, because growth has been relatively flat for many of our customers,” said Shelton, Valdese’s chief executive. “We’ve been able to find a few pockets of new business, so growth is in the low single digits. It’s nothing robust, but at least we’re up for the year and we’re happy about that.”

“I don’t think politics or the election has affected our outlook,” Shelton said. “While many of our customers have seen a Trump bump in terms of their stock price, the industry hasn’t seen an effect on retail traffic.” One additional factor holding back economic grow th nationally—and in Burke County, North Carolina, where Valdese is based—is the proportion of Americans now in the labor force.

A lthough unemploy ment in Burke County is half a percentage point higher than the national average, Shelton says finding workers with the technical skills Valdese needs is difficult.

“We could train an undereducated person in the past,” he said. “But the textile industry has changed, and we need a higher level of competence in computers and math for specific skills.”

As a result, only 56 percent of Burke County’s working-age adults are in the labor force, well below the already-anemic national average of 63 percent.

At the same time, only 17.2 percent of the county’s residents have a bachelor’s degree, half the national average, which holds back income growth.

T he re i s s t i l l a c h a nce t h at f i rst - qu a r ter g row t h cou ld su r pr ise t he doubte r s . A lt hou g h t he w i d e l y fol lowed GDPNow model of the Federa l Reser ve Bank of At lanta ca l ls for a 1-percent ex pansion rate in the first quar ter, the New York Fed ’s Nowcasting Repor t is looking at a 3 -percent grow th. “ The difference is larger than usual and is being driven by the fact that the New York Fed incorporates soft data into its tracking,” said Zentner of Morgan Stanley.

The government’s estimate of GDP is based on specific data points for economic factors, like monthly retail sales, inventories, trade and other hard data, which also count more heavily in the Atlanta Fed ’s model.

Whoever is right, most longer-term forecasts estimate growth for all of this year and 2018 to be in a range of 2 percent to 2.5 percent—again, largely in line with the pattern of the last eight years.

“Sentiment has gotten stronger but business investment hasn’t accelerated,” said Michael Gapen, chief economist at Barclays. “To get it to translate to hard data, you’d need new policies, like tax cuts, tax reform and a major increase in infrastructure spending.”

New York Times News Service

www.businessmirror.com.ph • Editor: Lyn Resurreccion

The World BusinessMirror

Friday, March 31, 2017

A9

Britain initiates Brexit, wading into thorny divorce from European Union

L

ONDON—In one of the most consequential diplomatic events in Britain since World War II, Prime Minister Theresa May on Wednesday sent a formal notice of the country’s intention to withdraw from the European Union (EU), starting a tortuous two-year divorce littered with pitfalls for both sides.

May said in Parliament that she was invoking Article 50 of the Lisbon Treaty, putting Britain on track to leave the EU in 2019 and raising a host of thorny issues involved in untangling a fourdecade relationship.

In addition to a welter of trade and customs matters, the Conservative government faces the prospect of a new independence referendum in Scotland, where the majority voted to remain in the EU, and deep worries about t he 1998 Good Fr id ay peace agreement in Northern Ireland.

Just before 12:30 p.m. Britain’s top envoy to the EU, Tim Barrow, walked to the office of Donald Tusk, president of the European Council, and handed him a letter with the official notification. Tusk then posted on Twitter acknowledging receipt of the letter.

May told Parliament, “Today, the government acted on the democratic will of the British people, and it acts too on the clear and convincing position of this house.”

“The Article 50 process is now under way,” she added, “and, in accordance with the wishes of the British people, the United Kingdom is leaving the EU.” She added: “This is a historic moment from which there can be no turning back.” She cited the “enduring power of the British spirit”. And she painted a vision of a “truly global Britain, the best friend and neighbor to our European partners but a country that reaches beyond the borders of Europe too”.

With this step, May enters what William Hague, a former foreign secretary, called “the most complex divorce ever in history”.

She begins the process with limited leverage, having made clear that establishing control of immigration takes priority over membership in the EU’s single market or customs union.

As a result, analysts say, she h a s f re que nt ly st res se d he r willingness to walk away from the table if a good deal proves elusive, leaving EU negotiators wondering whether she is serious or trying to bluff her way into a stronger negotiating position.

“I think they would prefer a deal,” A nand Menon, a professor of European politics and foreign affairs at K ing’s College London, said of the British government, noting the high economic stakes. Nevertheless, he said, “I still think they are readier to walk out than most people accept.”

Given her negotiating “red lines”, the difference between whatever deal May can secure and no deal at all, may turn out to be relatively small. Blaming the Europeans for a collapse of the talks might be easier, politically, than bringing a weak agreement to Parliament.

The politics are so toxic, Menon added, that they make a

440M

The number of Europeans remaining in the European Union when the United Kingdom leaves

disorderly departure from the bloc—often likened to walking off a cliff edge—plausible. “It’s ugly and so frighteningly horrible, that I can’t quite believe it’s happening,” he said.

European leaders have emphasized that Britain cannot “cherr y pick ” the rules and regulations it likes, and certainly cannot ex pect to have a better deal than countries that remain in the bloc.

The last thing they want to do is lend greater momentum to the centrifugal forces already threatening to tear apart the EU. Tusk said at a news conference in Brussels that there was “no reason to pretend this is a happy day”, and that Britain’s plans to depart the bloc would only leave the 27 remaining me m b e r s “more d e t e r m i ne d and more united ”. He added, “ We already miss you.”

Manfred Weber, a German lawmaker and a powerful conservative in the European Parliament, wrote on Twitter that “from now on, only the interests of the remaining 440 million Europeans count for us.” He later added: “If you leave the EU, you lose the associated benefits.”

What makes the looming confrontation so dangerous is that both sides stand to lose economically in the event of a breakdown.

From agriculture to aviation, from fisheries to pharmaceuticals, Britain’s economy has been shaped by membership in the EU, its main trading partner.

With its single market—the world’s largest—and its customs union, the EU ensures customsfree trade across frontiers in goods and some services.

Without a deal, Britain faces customs checks at its borders and tariffs on imports and exports, not to mention the relocation of at least part of its lucrative financial services sector.

But Br it a i n i s a big m a r ket for Cont i nent a l Eu rope, too: Ger m a ny a lone e x por ts 800,000 vehicles there ever y year. T hough London’s dominant financial ser v ices sector is hardly popular, many businesses on the continent rely on its deep capital markets.

Britain is one of only two significant military powers in the bloc—the other is France—and has valuable security and intelligence capabilities that elevate Europe on the global stage.

In her letter to Tusk, May argued that without an overall agreement, “our cooperation in

the fight against crime and terrorism would be weakened”.

Her of f ic i a l s l ater den ied that this was a threat by Britain, arguing that it ref lected the fact that some cooperation on policing issues was conducted through EU channels.

But Guy Verhofstadt, the European Parliament’s negotiator for Britain’s exit, said there could be no “trade-off ” in talks between such issues and trade.

“I think that the security of our citizens is far too important,” Verhofstadt said.

To make matters more difficult, the final deal will require votes in perhaps 38 legislatures across Europe, as well as in the British Parliament.

It is even possible that the n e g o t i at i o n s c o u l d f o u n d e r over the issue of money before they really get under way. Michel Barnier, the negotiator appointed by the European Commission, wants to resolve the terms of the departure before mov ing on to future trade ties.

T he commission estimates that Britain owes as much as $64 billion in future spending commitments and pension entitlements for EU officials.

Boris Johnson, the foreign sec ret a r y, h a s re jec ted t h at idea, invoking the memory of for mer Pr ime Minister Margaret T hatcher, who in 1984 demanded—and received—her “money back ” from European partners in another acrimonious negotiation.

Diplomats say a collapse over money matters can be avoided if specifics are left until the end of the talks, when the parameters of a trade deal are known.

European officials seem open to that idea of reaching agreement on t he pr i nc iples a nd methodology of calculating what Britain owes, based on commitments undertaken while it was a member. That would allow May to justify payments as part of a deal allowing continued access to European markets.

Joac h i m Fr it z -Va n n a h me, director of the Europe program at t he Ber telsma nn Found ation, a research institute based i n G e r m a n y, s a i d t h e b e s t prospect of achiev ing ag reement was a broad d iscussion, inc lud ing defense and secur it y cooperation, an area where London has something to offer at a time when Nor t h At lantic Treat y Organization’s role is being questioned.

“If you go narrow, it is tremendously difficult,” Fritz-Vannahme added. “It will not bring the problem to a conclusion in two years.”

He s a id he b e l ie v e d t h at one danger was the “ illusion” among some in Brussels that the EU was “strong enough to live without the Brits”, who still have significant economic and militar y power. A nother is the il lusion among some Br itons that they can dictate the terms of a deal.

Menon, too, said he thought the messages from some British politicians, reinforced by aggressive pro-Brexit tabloid newspapers, were destructive.

“The British people now think that Europeans will be stupid if they don’t give us a good deal, because it’s in their own interest,” he said.

Time will be a problem, too.

British businesses want a transition period to adapt to the circumstances after withdrawal, but this requires an agreement on what Britain would transi-

EUROPEAN UNION Council President Donald Tusk (right) gets British Prime Minister Theresa May’s formal notice to leave the bloc under Article 50 of the EU’s Lisbon Treaty from UK Permanent Representative to the EU Tim Barrow in Brussels on Wednesday. Barrow handdelivered the letter signed by May that will formally trigger the beginning of Britain’s exit from the EU. Emmanuel Dunand, Pool via AP

tion to after 2019. And unless all this is dec ided qu ic k ly, it w i l l be of l itt le use; companies w i l l not be able to wa it long into 2018 before assuming t he

worst outcome a nd ac t i ng accord i ng ly, e ven i f t h at mea ns a sh a r p econom ic adju st ment.

“Whatever happens, she is not going to have a great deal,” Menon

said, referring to May. “It is still going to involve a lot of pain, given that we are outside the customs union and the single market.”

New York Times News Service

A10 Friday, March 31, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Rude, tactless and accurate

A

fter decades of acting like a beaten dog, head down and tail between its legs, the Philippines has slowly but steadily gained its national selfconfidence. It must be a shock for the world to see a country it labeled rather self-righteously as the “Sick Man/Basket Case of Asia” and the Filipinos as “Little Brown Americans” pushing back.

Former President Benigno S. Aquino III raised many heads when he compared China’s moves in the West Philippine Sea to Nazi Germany.

He was rude, tactless and accurate. Hitler’s rhetoric on the historical premise of the “Anschluss” policy of annexing “historically Germanspeaking territory” sounds familiar.

However, President Duterte took the next step this week by asking US Ambassador Sung Kim why the US did not take any action to protect Philippine interests. The ambassador’s response was proper, diplomatic and evasive, saying that he was not here when this all went down and, therefore, could not answer Duterte’s question.

Social Welfare Assistant Secretary Lorraine Marie T. Badoy went on the current forum of choice for many people—her Facebook page—to lash out at critics of the President. One of those critics has been the European Union (EU), to which she said—as loosely translated from Filipino—the EU should “just engage in online child porn. That’s what you are all good at”. That was rude, tactless, but may be accurate, in the sense that people should take care of their own problems before criticizing others.

The response of the EU ambassador to the Philippines Franz Jessen to Badoy’s remark was, “The issue of child pornography is extremely serious and a grave crime. It should be addressed in a serious and responsible manner”.

We agree with Jessen that is a serious and grave crime. Therefore, we ask that between the EU parliament resolution on Sen. Leila M. de Lima and criticism of the Philippine government’s “war on drugs,” they do something to stop their citizens from buying online child pornography from the Philippines. It is hard for Philippine law enforcement to counter the vast amount of money Europeans are willing to spend to abuse our children. How bad is the problem? From skynews. com.au: “Simon Bailey, the [UK] National Police Chiefs’ Council lead for child protection, said with 400 men a month arrested for viewing child porn in the UK, the justice system was unable to cope with the scale of criminal prosecutions”.

From Germany’s Deutsche Welle news service: “Last year Europol reported that criminals were increasingly selling live streams of child sex over legitimate chat sites and apps” identifying 670 suspects and arresting 184 in 26 of 28 EU countries, and in Norway and Switzerland.

If the EU and the others were genuinely concerned about the Philippines—no longer a basket case and now “little brown Filipinos”—they would object to the Chinese facilitating the shipment of chemicals used to make methamphetamine. But the EU could not even bring itself to sign a letter from 11 other countries criticizing China over “credible claims” that lawyers and human-rights activists have been tortured while in detention.

EU fund assistance to the Philippines reaches P3 billion annually, with the bulk of the amount going to the health sector. That P30 per Filipino is laudable, and we appreciate it. Sometimes, though, the truth is rude, tactless and sarcastic, but needs to be said. Should we dare quote the Bible and the words “Let the one who has never sinned throw the first stone”?

Since 2005

BusinessMirror A broader look at today’s business

A practical exercise in critical thinking James Jimenez

spox

O

ne of the goals of voter education is to foster critical thinking in those who would cast their ballots. Critical thinking means looking at an issue from as many angles as possible, so that you’re not blind to the downside of any proposed policy change. If the notion of being able to tell the difference between a good idea and a bad one appeals to you, you might want to ask yourself then: Is infiltration by drug-money justification enough to cancel the barangay elections?

The knee-jerk reaction to that is, of course, to say yes. Drugs are dangerous, and they will unravel the fabric of society. That’s something we can all agree on. But then, turn away from that instinctive reply, and think about what that proposal implies about the current state of things.

To say that drug money can influence the outcome of elections calls into question, first, the capacity of voters for discernment as to

President Trump vs Big Bird Nicholas Kristof

✝ Ambassador Antonio L. Cabangon Chua

new york times

Founder

Publisher Editor in Chief Managing Editor Associate Editor News Editor City & Assignments Editor Senior Editors

T. Anthony C. Cabangon Jun B. Vallecera Max V. de Leon Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos

Online Editor Social Media Editor

Ruben M. Cruz Jr. Angel R. Calso

Creative Director Chief Photographer

Eduardo A. Davad Nonilon G. Reyes

Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager

Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro

BusinessMirror is published daily by the Philippine Business Daily Mirror

HOM

Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

who they ought to vote for; second, the ability of people to say no to drug funded candidates and their money; third, the trustworthiness of the teachers—from both public and private schools—who will be counting the votes and proclaiming the winners; fourth, the efficacy of the on-going war on drugs, as it is called; and fifth, the ability of the criminal justice system—from enforcement to prosecution to pun-

ishment—to deal with the elected puppets of drug lords.

Is this really how bad things have gotten since May 2016, when we all trusted the ballot enough to vote in record numbers, and later to accept the election of the President as the true voice of the people? Have we really descended into such hopelessness that we can conceive of no other solution to our problems—and, yes, the proliferation of drugs is its own kind of hell—than to say, let’s not vote anymore? Are we really so scared of our own freedom now?

Now, think about what would happen if the proposal were passed.

Losing the right to vote means losing the freedom to make our own choices about who gets to lead our communities.

What if you live in a barangay under a rotten barangay captain who acts only in the best interest of his cronies, or who can’t be bothered to ensure the reliable delivery of basic services to your neighborhood? Now imagine having to deal with that barangay captain for another year.

Consider also how different life

S

O what if President Donald J. Trump wants to deport Big Bird?

We’re struggling with terrorism, refugees, addiction and grizzlies besieging schools. Isn’t it snobbish to fuss over Trump’s plans to eliminate all funding for the National Endowment for the Arts (NEA), the National Endowment for the Humanities (NEH) and the Corporation for Public Broadcasting?

Let me argue the reverse: Perhaps, Trump’s election is actually a reminder that we need the humanities more than ever to counter nationalism and demagoguery.

Civilization is built not just on microchips, but also on arts, ideas and the humanities. And the arts are a bargain: The NEA budget is $148 million a year, or less than 0.004 percent of the federal budget. The percapita cost for Americans is roughly the cost of a postage stamp.

T he humanities may seem squishy and irrelevant. We have a new president who doesn’t read books and who celebrates raw power. It would be easy to interpret Trump as proof of the irrelevance of the humanities.

Yet, the humanities are far more powerful than most people believe.

The world has been transformed over the last 250 years by what might be called a revolution of

empathy driven by the humanities. Previously, almost everyone (except Quakers) accepted slavery and even genocide. Thomas Jefferson justified the “extermination” of Native Americans; whippings continued in American prisons in the 20th century; and at least 15,000 people turned up to watch the last public hanging in the United States, in 1936.

What tamed us was, in part, books. Harriet Beecher Stowe’s Uncle Tom’s Cabin famously contributed to the abolitionist movement, and Black Beauty helped change the way we treat animals. Steven Pinker of Harvard argues that a surge of literacy and an explosion of reading— novels, in particular—“contributed to the humanitarian revolution”, by helping people see other viewpoints.

There is also modern experimental evidence that reading literary fiction promotes empathy.

The humanities have even reshaped our diet. In 1971 a few philosophy students, including an Australian named Peter Singer, gathered on a street in Oxford, England, to protest the sale of eggs from hens raised in small cages. This was an unknown issue back then, and passersby smiled at the students’ idealism, but told them they’d never change the food industry.

Looking back, who was naïve?

Today keeping hens in small cages is illegal in Britain, in the rest of the European Union and in parts of the US. McDonald’s, Burger King, General Mills and Wal-Mart are all moving toward exclusively cage-free eggs, because consumers demanded it.

Singer, now a Princeton University professor, is a wisp of a man who defeated an agribusiness army with the power of his ideas and the muscle of the humanities. (Singer has a terrific recent book, Ethics in the Real World, that wrestles with how much we should donate to charity, and whether wearing a $10,000 watch is a sign of good taste, or of shallow narcissism.)

In short, the humanities encourage us to reflect on what is important, to set priorities. For example, do we get more value as taxpayers from Big Bird and art or music programs, or from the roughly $30 million Trump’s trips to his Mar-a-Lago golf resort will cost us when he’s tallied nine visits in office (he’s already more than halfway there)? That’s also more than the cost of salaries and expenses to run the NEH, not

would be if, instead of being postponed, barangay elections were scrapped altogether. You would wake up one morning to find yourself having to obey the orders of a person you might never even have heard of before. Or worse, you might have heard of this new appointee but know that you would not have chosen him, if only you had a choice. Except that you don’t.

And, finally, ask yourself: Is the scrapping of the elections the only possible answer?

You’re not a dumb voter. You’re not someone who can’t be trusted to know the difference between a good candidate and a bad one; someone who can’t be relied upon to uphold your own dignity if it means having to turn away bribe money; someone who is expected to consent to cheating in elections. And, surely, you don’t live in a country where the government is powerless to curb the drug menace, and where the institutions are fractured beyond repair.

I’m pretty hopeful the authorities can come up with a less-draconian measure, right?

Right?

including the grants it hands out.

Do we get more value from billions of dollars spent on deportations? Or from tiny sums to support art therapy for wounded veterans?

Then there’s our favorite bird.

The Onion humor web site reported: “Gaunt, Hollow-Eyed Big Bird Enters Sixth Day Of Hunger Strike Against Proposed Trump Budget.” In fact, Big Bird will survive, but some local public television stations will close without federal support—meaning that children in some parts of the country may not be able to see Sesame Street on their local channel.

In 2017, with the world a mess, I’d say we need not only drones but also Big Bird, and poetry and philosophy.

Indeed, our new defense secretary, Jim Mattis, apparently shares that view: He carried Marcus Aurelius’s Meditations to Iraq with him.

It’d be nice to see Mattis drop off Meditations for the new commander in chief. And maybe present the first lady a copy of Lysistrata.

Look, I know it sounds elitist to hail the humanities. But I’ve seen people die for ideas. At Tiananmen Square in China in 1989, I watched protesters sacrifice their lives for democracy. In Congo I saw a tiny Polish nun stand up to a warlord because of her faith and values.

The humanities do not immunize a society from cruelty and overreaction; early-20th-century Germany proves that. But on balance, the arts humanize us and promote empathy. We need that now more than ever.

opinion@businessmirror.com.ph

Opinion BusinessMirror

Friday, March 31, 2017 A11

Is Bases Conversion This good heart Development Authority a legitimate land developer Tito Genova Valiente or systemic land-grabber? annotations MAIL

An open letter of appeal to President Duterte Dear President, Bases Conversion and Development Authority (BCDA) was created pursuant to Republic Act (RA) 7227, which was signed into law by President Corazon Aquino on March 13, 1992. The intent was to convert US military bases into more productive ventures and spur development for the modernization of the Armed Forces. It may have envisioned the positive side of economic development but not the dark side of displacement of soldiers living nearby. Most of the camps now have been developed into economic hubs and most of the best lands have become modern hotels, hospitals and first-class restaurants, and even high-class condominium units that only the very rich and the elites can afford.

In Fort Bonifacio the entire camp have already metamorphosed into a high-end shopping destination and has been converted into an ideal abode for the haves but not for the have-nots. In the periphery of Fort Bonifacio are areas occupied by soldiers for practical reasons, i.e., the proximity of going to their offices at the Philippine Army Headquarters and to some at Armed Forces of the Philippines (AFP) General Headquarters. To name a few of these areas, we have Cembo, Rembo, Comembo and Pembo, which were declared housing areas of soldiers by the military commanders in the late 1950s.Later on, these communities became barangays of Makati, Taguig and Pateros. Today, some areas along C-5 road are the Palar Village, Santo Niño and Wildcat Village, and the SSBNAI beside Dasmarinas Village are among the latest addition to the list. Most of these areas are supposed to be villages of soldiers who are hoping that someday will be awarded to them as they have not been accommodated in AFPOVAI or even at Bonifacio Heights and the BCDA replication housing areas in Diego Silang along C-5 road and military officers villages along Kalayaan Road. For most of them, they have been there all along for even as early in the 1980s and up to now, living in an uncomfortable and miserable makeshift houses with their families.

It is for this reason this appeal is written to our beloved Commander-in Chief that BCDA should spare these areas and allow the officers and soldiers occupying their lots and develop it within their capability and budget. The truth of the matter is, owning a condominium unit at Bonifacio heights and other housing areas developed by BCDA are not affordable to most. To own a condominium unit at Bonifacio Heights requires a down payment of P1.2 million and the remaining amount is to be amortized for P30,000 monthly for 25 to 30 years or so. How can officers and soldiers afford these? Anyway, the best lots have already been developed and the rich and famous are now enjoying their stay in the once-fabled Fort Bonifacio, which was associated with the soldier’s fun memories of the old camp facilities. Displacing them from their homes would somehow be a sad and traumatic experience and relocating them and their families somewhere may not be the best option right now. If some areas, like AFPOVAI and Cavalry Hill, have been awarded to a few soldiers and officers, then why not treat the same way the thousand other soldiers who have been living there for so long a time now even longer than the time AFPOVAI was granted to a few privilege officers. Article XIII, Sections 9 and 10 of the Constitution provides that the state is duty bound to make affordable and decent housing units to the underprivileged and homeless citizens of the country to include soldiers.

While the government allows the demolition of urban-poor communities, it has

Y

failed to provide decent housing, for the our heart is still good. dislocated families inspite of billions of My cardiologist was talking. taxpayers money spent on housing, as in A day before I saw my heart by way of ultrasound, I kept the case of Pandi, Bulacan, lately. In the looking at this thing which appeared to have an opening. Through case of SSBNAI, it was declared as AFP the screen, I did not see an organ beating, but one that opened and Officers Village pursuant to the proviclosed. What a tiny thing. sions of RA 274 and 730. This parcel of land of about 50,000 square meters was covered under PP 461, dated September That thing is still good. I could tion to help up my heart. As in film 29, 1965, otherwise known as the Armed Forces of the Philippines Officers Village see once more my heart performconcourses, my heart showed some (AFPOV) and is excluded from the jurising, showing off its capacity, trying flaws here and there but no one could diction and administration of the BCDA to convince whoever is reading the ignore the small organ and its sterunder RA 7227, or the Bases Conversion images on the screen that it could ling character. and Development Act of 1992. Therefore, still serve me.

A day before the ultrasound, I the development plan of BCDA under Your heart is still good. That decenjoyed for the first time, since my Swo-00-001262 on January 4, 1995, is laration was not medical; it was a hospital confinement, a documenillegal and an act of a systematic landvery personal commendation, which tary on black holes. As the scientists grabbing technique employed by BCDA, made me see my heart as both sepaexplained meticulously the birth of as beforehand this area was already rate from me but belonging to me.

It black holes and the death of stars, the granted as AFPOV long before BCDA was as if, during the ultrasound, that more I was swallowed into the myswas created. The statement of the BCDA heart was taken apart and I was told teries of the universe. There was no president that land-grabbing activities not to make any comments as the need to understand their theories. I involving officers is detrimental to the appraisal went on. maintain my old policy that, in the AFP morale is a blatant lie, as these claims Now, that this heart is still good, end, there are things that cannot be have legal bases for it to be awarded to I felt a part of me had made a sucexplained, there are matters we canthe lowly paid officers and soldiers. In fact, in a letter of Dr. Sofio Quintana, the cessful presentation. And, it won not not understand. There is one thing assistant regional director for Technical the grand prize but the jury prize. that I wanted to remember: The idea Services of the Department of EnvironThe young doctor, Dr. Leo Guazon, that black holes have bubbles that ment and Natural Resources, addressed in explaining the jury award, talked could contain galaxies the size of to the BCDA president and CEO on Januof how I would need vast medicathe Milky Way. ary 12, he requested the cancellation of the survey plan Swo-00-001262 of BCDA over the parcel of lot occupied by SSBNAI, attesting that the survey was not in accordance with the purpose for which it was authorized, i.e., declaring the area as an AFP Officers Village.

On the other hand, BCDA has yet to show that the billions of pesos they have acquired from the sales of military camps Rev. Fr. Antonio Cecilio T. Pascual have already bankrolled the AFP modernization program or have been used for government programs and projects. This is the very reason for their existence, but even up to now not even a single aircraft aritas Manila’s Youth Servant Leadership and Educaor seacraft to secure the West Philippine Sea was bought out of the sale of these tion Program (YSLEP) produced 817 servant leaders this lands. From its creation in 1992 up to year, with one summa cum laude and two magna cum 2015, BCDA boasted the generation of laude awardees.

P72 billion from former Metro Manila camps alone, not to include incomes from Clark, Poro Point, John Hay and One YSLEP scholar from the a Bachelor of Science in Fisheries the North Luzon tollways. Were the acts Diocese of Kidapawan, Sweetzel graduating student from University of President Aquino of creating BCDA or M. Llorica, will graduate as summa of Rizal System, will both graduate the daang matuwid program of his son cum laude from the Notre Dame of as magna cum laude.

P-Noy really were motivated by patriotic Kidapawan College with the degree This batch of servant leaders also fervors or were just diversionary tactics of the yellowtards to favor the rich and of Bachelor of Secondary Education includes 10 Cum Laude awardees, also to drive the issue out of the HaciMajor in English. Meanwhile, both 6 board passers, 52 Dean’s Listers, enda Luisita Comprehensive Agrarian Jonathan G. Ytang, a Bachelor of and 24 special awardees comprisReform Program fiasco?

Secondary Education graduating ing almost 12 percent of this year’s These, President, are the realities of student from De La Salle University, graduating YSLEP scholars.

BCDA land-grabbing activities and the Manila; and Maria Tacianne Fines, These graduates are from the plight of these landless military men who opted to stay near Fort Bonifacio, and the other camps mentioned earlier, as they have learned to love from the beginning of their career as defenders of this Republic.

This is a sad fact that people occupying most parts of these camps now are not anymore military men but the elite members of the Philippine society, and that is the reality. Through your intervention as Leonardo A. Lanzona Jr. Chief Executive of the land, Sir, may this appeal of granting these small parcels of lots currently occupied by soldiers in the periphery of Fort Bonifacio Global City be spared from BCDA interference and allow the occupants to develop and build their recent achievement of the country has not been given own houses and settle their families in the consideration it deserves. This pertains to the increase more decent housing communities. This in average real wages, which was accompanied by declines benevolent act of yours will be the grandin both employment and underemployment. Note that the real est gift you can give to the soldiers. If the wage is inflation-adjusted, indicating that wages received by the Kadamay group, which from nowhere, workers are rising higher than the inflation rate. just occupied housing units built by the government were allowed and even accorded compassionate treatment by the formal enterprises. As a result, the According to Vicente Paqueo and the Department of Social Welfare and unemployment rate has breached the Aniceto Orbeta, both fellows of the Development in Pandi, Bulacan, why 5-percent mark with a 4.7-percent rate in Philippine Institute of Development not accord the same treatment to these October 2016. This fundamentally disStudies (PIDS), the average real wage poor soldiers without homes to really plays an early economic take-off. More rate, which was declining from 2001 to own the lots they are occupying before important, these observations highlight 2011, has reversed itself in 2011-2015. it gets again into the hands of the wellthat the high economic-growth rates that At the same time, labor productivity off people who are favored by the BCDA we have achieved are now being felt by appears to have slightly accelerated in the authorities. the workers on the average. These phesame period. Although the wage rate has nomena are consistent with the observed With much hope and optimism, Sir, not yet completely returned to its 2001 declines in poverty rates from 26.3 in level, these recent wage and productivity we look forward for your positive action 2009 to 21.5 in 2015. trends are made all the more significant on the matter and, rest assured, we your From a policy point of view, the risbecause the agricultural real wage rate, soldiers and our families will always be ing real wage presents us with several which has perennially been stagnating grateful and be more dedicated in our lessons. First, the continuous increase was also noted to have increased. services in pursuit of a better Philipin the growth rates was crucial in susThese events are important for a pines you have envisioned to achieve in taining this trend. In contrast to the number of reasons.

For one, it indicates your watch as the President. More power previous administrations, the previous a tightening of the labor market. For so and God bless.

Aquino (P-Noy) administration was able many years, the labor market is believed

to generate and sustain growth based to have generated an army of workers President, SSBNAI on sound economic fundamentals, crewhose skills are not matched with indusPresident, Wildcat Village ating much-needed confidence in the try demand. The recent events then point President, Palar Village economy. Second, key institutional reout a mopping out of the labor surplus President, Santo Niño Village with more workers being absorbed into forms accompanied this growth trend.

I sense that my heart also contains a black hole, that unseen part of the heart not covered by medical thoughts and theories. This is the heart that is imagined to be red and throbbing and shaped, well, like a heart. This is the heart that has blood and passion and imagination, the part of man that, according to W. H. Auden, has deserts where we can “let the healing fountain start”.

I have thanked my cardiologist upon receiving the good news, I have not thanked my heart, the heart that

belongs to clinics and hospitals.

Months from now I will be telling people of my adventures in the hospital. I would regale them of how I survived the pains and tests. I would relate to them also how my swollen leg was subjected to ultrasound.

The leg—its veins and arteries also proved to be quite good.

Years from now, some people will say to me: You have a good heart. My heart would hear that and it would know it has been part of a terrific performance.

More than 800 YSLEP beneficiaries to graduate this year SERVANT LEADER

C

poorest areas and regions in the country, with 537 graduates from the National Capital Region, 67 from Luzon, 115 from the Visayas and 98 from Mindanao. Caritas Manila aims to continue reaching out to this vulnerable sector, especially in the poorest areas of the Visayas and Mindanao, because we believe that the future leader of this nation could be one of these youth from the marginalized sectors and education is the foundation for outstanding leadership. That’s why we help them to be the person they can be by giving them access to higher education and mold them to become servant leaders of this country.

Every year, about 500 youth beneficiaries of YSLEP graduate from different schools and 90 percent of them are employed six months after.

Those who have been successful in their respective professions help in sustaining the activities of Caritas Manila as members of Caritas Soci-

A time to celebrate and to grieve EAGLE WATCH

A

During the P-Noy administration, there was the expansion of the Conditional Cash-Transfer Program, the conscious effort to rid the government of corruption, the installation of the K to 12 program and the revival of industry. Third, efforts to achieve a long-term vision were instrumental in achieving these successes. All the reforms were intent on bringing about inclusive development, aimed at giving the poor access to economic opportunities. While these reforms need to be strengthened and new reforms still have to be instituted, the economic structures were already formed to reduce poverty even further.

However, while indeed this is a time for celebration, this is also the time for grief. According to the Philippine Statistical Authority (PSA), the unemployment rate was already back to 6.6 percent in January 2017. The Social Weather Stations (SWS) survey corroborates this data. Using a different definition of unemployment from the PSA, the SWS recorded an unemployment rate of 25.1 percent in December 2016, 6.7 percentage points up from 18.4 percent in October 2016.

At present, it seems unlikely the Duterte administration will be able to support the economic momentum. In fact, it is more intent in bringing back the economic programs during the time of Marcos. One clear example is reinstallation of the much-rejected Masagana 99 program of the dictatorship. Now known as Program for Unified Lending in Agriculture (Punla), it aims to simplify and consolidate the agri-lending programs of the government from around seven down to two to three credit facilities providing a more convenient and less complex lending scheme to farmers and

ety of Servant Leaders (CSSL). They continuously contribute their time and talent to Caritas community through their volunteer service as a way of giving back to the community.

For over 60 years, YSLEP was able to assist more than 10,000 out of school youth and poor families to become professionals, productive citizens and servant leaders. Currently, there are more than 5,000 youth nationwide under Caritas YSLEP. Under YSLEP, scholars and their parents are required to go through the following modules: values formation, sacramental appreciation, health and nutrition, livelihood and skills training, 3R (reading, writing, arithmetic) tutorials, and national family planning and responsible parenting.

To know more about the programs of Caritas Manila, visit www.caritas.org.ph. For donations, call 563-9311. For inquiries, call 563-9308 or 563- 9298.

fishers. Punla, with an initial funding of P200 million, targets to boost the respective agri-fishery industries of the 10 poorest provinces in the country.

The program aims to provide lending for farmers and fisherfolk groups with less stringent requirements, faster fundreleasing time and low interest rates. But Agricultural Secretary Emmanuel F. Piñol seems to forget the main lesson that the failed Masagana 99 has crystallized: that the government has no comparative advantage in lending. If the government wishes to help poor farmers and fishermen it should be in the area of improving technologies and productivity that will induce the formal financial institutions to lend to them.

Because of its strong inclination to be the great provider (a la godfather) to everyone and score “pogi” points, the current administration would end up dismantling the Philippine economic structure. For instance, going back to labor, the government policy to end contractualization or temporary employment (endo) contracts may prove counterproductive if firms may end up reducing employment. With the advent of new technologies and the growing emphasis on product quality and reputation, the demand for workers has become less and less permanent as production becomes more and more flexible and product demand more and more unstable. The government can help the workers more by providing social protection and by improving acquired skills in order to secure incomes, not the labor tenure.

Leonardo Lanzona Jr. is a professor of Economics at the Ateneo de Manila University and a senior fellow of Eagle Watch, the school’s macroeconomic research and forecasting unit.