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Satellite imagery suggests Vietnam has extended a runway and constructed new hangars on one of the disputed Spratly islands it controls, apparently enabling it to accommodate surveillance aircraft there. As in the past, Hanoi has not commented on the imagery provided by the Center for Strategic and International Studies . The think tank says the construction is modest in comparison to rival claimant China’s massive island-building on seven Spratly features. AP

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China’s first aircraft carrier is ready to engage in combat, marking a milestone for a navy that has invested heavily in its ability to project power far from China’s shores. The Liaoning’s political commissar, Senior Capt. Li Dongyou, said in an interview with the Global Times newspaper his ship is “constantly prepared to fight against enemies,” signaling a change from its past status as a platform for testing and training. Purchased as an incomplete hull from Ukraine more than a decade ago, the Liaoning was commissioned in 2013. AP

The commander of US forces in the Pacific, Adm. Harry Harris, said he was concerned with China’s assertiveness in the South China Sea and the East China Sea, as he headed to the Philippines last week to discuss the next round of joint exercises. The drills remained on schedule despite President Duterte’s threat to cancel them amid signs of animosity toward the US. They might be scaled down, however. Harris said US special operations forces are still advising Philippine troops in counterterrorism, US surveillance aircraft have continued rotational deployments at Clark Air Base covering the South China Sea. AP

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A broader look at today’s business

Tuesday, November 22, 2016 Vol. 12 No. 41

₧8T eyed for ‘golden age of infra’campaign ₧1.33T T By Cai U. Ordinario

BusinessSense

And to ensure the money will be allocated on a timely manner, the National Economic and Development Authority (Neda) will no longer wait for concerned agencies to submit See “Golden age of infra,” A12

PHL mulls future of Conditional Cash Transfer Program as poverty lingers

BusinessMirror

analysis, ideas and commentary from

E1 Tuesday, November 22, 2016

The desired average annual infra spending, according to Tungpalan

BMReports

‘HAIL TO THE THIEF’ www.businessmirror.com.ph

‘Hail to tHe tHief’

At the opening night of the new Metropolitan Opera House in Lincoln Center, September 16, 1966 (from left): Lauder Greenway, chairman of the Met’s board; President Ferdinand E. Marcos of the Philippines; Rudolf Bing, the Met’s general manager; Imelda Marcos; Lady Bird Johnson; and John D. Rockefeller III, chairman of the board of Lincoln Center. Jack Manning/The new York TiMes

uring the 20 years Ferdinand Marcos spent as president of the Philippines, his official salary never rose above $13,500 a year. nonetheless by 1986, when the “people power” revolution prompted him and his wife to flee into exile in Hawaii, they had amassed a fortune. imelda Marcos left behind her shoe collection, but her husband brought with him jewelry, gold bricks and freshly printed Philippine currency, together worth around $15 million. in all, he and his cronies are thought to have plundered perhaps $10 billion.

What is more, during his time in office, thousands of Filipinos were tortured, jailed without due process or murdered by the regime’s thugs. Marcos died in Hawaii, and since 1993 his embalmed remains have been displayed in a glass box in his home province of ilocos norte. President rodrigo Duterte, the erratic strongman now running the Philippines, believes that the dead dictator deserves better: He has approved the Marcos family’s long-standing request to bury their patriarch in Manila’s national Heroes’ Cemetery with full military honors— an idea all Marcos’s previous successors rejected. Duterte has insisted that Marcos is entitled to such a burial not because he is a hero—“the issue about his heroism is political” is Duterte’s baffling deflection—but because he was a soldier. never mind that Marcos’s claims to military valor during World War ii were largely fabricated.

He also said that the battle over Marcos’s burial has divided the nation, which is accurate: Many older Filipinos do recall Marcos fondly, and a petition supporting his reburial garnered 1.1 million signatures. That isn’t much, though, in a country of 100 million where the median age is 23 or so. Most Filipinos do not remember Marcos’s regime at all. Duterte may spy a political opportunity. He comes from the southern island of Mindanao, and is the first president not drawn from the elite of Manila. His victory owes as much to voters’ disenchantment with the dozen or so families that dominate Philippine politics as it does to his tough-talking image. Winning as an outsider is much easier than governing as one, though, and the Marcos family remains powerful. imelda serves in the House of representatives, and two of their children are politically active: imee is governor

of the province of ilocos norte, while Ferdinand Jr., universally known as “Bongbong,” is a swaggering senator who came within a few thousand votes of the vice presidency. Appeasing the family gives Duterte a political boost in ilocos, and a favor to call in when he needs it. Duterte’s plan is not universally popular. A coalition of Jesuit groups said that interring Marcos in the heroes’ cemetery “buries human dignity by legitimizing the massive violations of human and civil rights…that took place under his regime.” Opponents tried to get the Supreme Court to block the burial, arguing that the law reserves the cemetery for those “worthy of admiration.” recently, however, the Court approved the burial and urged the country to “move on.”

Reprinted with permission.

appeasing the Marcos family gives Duterte a political boost in ilocos, and a favor to call in when he needs it.

WORLD NO. 1 A bicycle repairman waits for customers, as children play in a tricycle in Manila. Sjors737 | Dreamstime.com By Rea Cu

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The Chinese among us

the entrepreneur Manny Villar

lot has been reported about the success of President Duterte’s trip to China last month, which was his first official foreign trip as president. I was a member of the delegation from the private sector that accompanied the President, and what I want to discuss this time are my personal observations and what they mean for the country, particularly for the Philippine economy. While the President was meeting with the top Chinese government officials and attending official functions, the businessmen from the Philippines were holding their own meetings with their Chinese counterparts. Continued on A10

SHORTFALL IN B.O.P. POSITION TO PUSH PESO VALUE DOWN

MERRY ADORNMENT FOR YOUR DOOR

LIFE

@ReaCuBM

Part Two

CCORDING to data from the Department of Budget and Management (DBM), the government has allotted P1.34 trillion for programs under the social-services sector, which covers housing, livelihood and community-driven projects, and the

PESO exchange rates n US 49.7730

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he Duterte administration’s push to usher the country into its hyped “golden age of infrastructure” will see a funding of around P8 trillion, or an annual average infrastructure spending of roughly P1.33 trillion beginning next year.

inside

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Conditional Cash Transfer (CCT) Program. The allocated budget for the sector in 2017 increased by 20.1 percent compared to its 2016 counterpart, and this shows a share of 40.1 percent of the total budget for 2017. Under the 2016 budget of P3 trillion, social-services allocation reached P1.12 trillion. And under the 2015 budget of P2.41 trillion, an allotment of P886 bil-

lion was provided to the sector. Broken down, the budget for social protection in 2017—including government expenditures for programs that cater to the marginalized, senior citizens, persons with disabilities (PWDs), those who have survived from disasters and those residing in conflict-affected areas—is P418.65 billion.

By Bianca Cuaresma

@BcuaresmaBM

he country’s balance of payments (BoP) position could see further shortfalls in the next months following an undesirable trade performance and aggravated by the needed imports for the government’s infrastructure projects. The Bangko Sentral ng Pilipinas (BSP) recently reported the BoP position in October reverted to a deficit of $183 million, from a surplus of $469 million in October last year. This October shortfall pulled overall BoP down to $1.46 billion, from $1.548 billion in the previous month and the $2.276 billion in the first 10 months of last year. While this is the first monthly deficit in seven months, analysts see the BoP is headed downhill, as the country’s trade numbers are getting worse, amid the new administration’s resolve to play catch up to solve the country’s lack of infrastructure. Moody’s Analytics economist Jack Chambers told the BusinessMirror the current account position is heading toward a “small negative in the Philippine economy in the short term,” with further narrowing in the second and fourth quarters. The country’s current account is the core component of the BoP position—or the summary of the country’s transactions with the rest of the world. The current account has been in surplus position since 2003, providing cushion to the Philippines in times of external stress, such as economic crisis in the global economy that usually affects those with weaker current-account surpluses. Continued on A3 See “BOP,” A2

Continued on A2

n japan 0.4487 n UK 61.4597 n HK 6.4164 n CHINA 7.2260 n singapore 34.9137 n australia 36.4537 n EU 52.7743 n SAUDI arabia 13.2710

Source: BSP (21 November 2016 )

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A2 Tuesday, November 22, 2016

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PHL mulls future of Conditional Cash Transfer Program as poverty lingers Continued from A1

The 2017 budget for these sectors sees an increase of 12.5 percent, from the 2016 allotment of P370.40 billion. The CCT Program by the national government was given a budget of P78.69 billion under the proposed budget of P3.35 trillion. The budget for the CCT also sees an increase compared to the 2016 budget for the program of P62.67 billion.

Social-protection budget

THE World Bank has said the CCT, called the Pantawid Pamilyang Pilipino Program (4Ps), falls under one of the best targeted social safety-net programs in the world. The government agency responsible for the implementation and monitoring of the 4Ps is the Department of Social Welfare and Development (DSWD). The allocated budget for the DSWD under the 2017 General Appropriations Act (GAA) totals P129.9 billion, increasing by 17.1 percent compared to the department’s 2016 budget of P110.1 billion. The higher allotment given under social protection was explained to be in line with the goals of President Duterte’s 10-point socioeconomic agenda. Included in the Duterte administrations priorities are that the government ensures that the poorest and the marginalized sectors of Philippine society

are protected from economic shocks and environmental disasters. The government aims to improve social-protection programs, which include the CCT Program, to protect the marginalized sector from instability.

Expenditure priority

AN expenditure priority of the government for 2017 is empowering human welfare and providing livelihood for the poor. An allotment of P295.2 billion has been allocated for social security, welfare and employment. This is 22 percent higher than the government’s 2016 allocation of P241.7 billion. Of the total, 44 percent will go to the DSWD to further improve the well-being of poor families. For 2017, according to the DBM, the DSWD targets to aid 33,238 families under the 4Ps converting them from survival to subsistence, while 803,789 families turning their state from subsistence to self-sufficiency. The bulk of the DSWD budget will be for the continued implementation of the CCT Program. The budget for CCT increased from P62.7 billion in 2016 to P78.7 billion in 2017, this was explained to be due to the department’s compliance with the government’s new directive to provide rice allowance for eligible CCT beneficiaries.

Rice and jobs

ACCOR DING to DBM data, there are

4,402,253 households under the regular CCT Program. Of these households, 3 million eligible CCT beneficiaries will be given 20 kilos of rice every month for 12 months starting January next year. The rice allowance totals P23.4 billion. The beneficiaries will receive the subsidy as long as the conditions are met and must have compliance with the conditionalities for about five years. According to John D. Forbes, senior adviser for the American Chamber of Commerce in the Philippines (AmCham), the government should focus on improving the 4Ps, as it encourages a larger chunk of the population to get proper education, which will prepare them in time when they look for jobs. “The Aquino administration added families with teenage children to CTT coverage to encourage them to remain in high school and complete their secondary level education,” Forbes explained. “However, the unemployment rate of high-school graduates is extremely high, and the Duterte administration may wish to ramp up programs and policies for first jobs for new graduates.” Forbes said that, since the goal of the Duterte administration is to alleviate poverty in the country and generate more jobs for the Filipinos, the government should also include in its priorities to better the Philippine educational systems, which, in turn, may

help more citizens land a job and lessen the country’s unemployment rate.

Requirements

ACCORDING to Asian Development Bank (ADB) Senior Social Sector Specialist Joel V. Mangahas, a CCT Program is social assistance done by the Philippine government, wherein it provides cash grants to poor families to enable them to invest in their children’s future. Under the 4Ps, which was implemented in the year 2008, mothers who belong to the marginal sector with children from zero to 18 years of age are given cash benefits when they comply with the requirements of the government. The requirements include that the child be enrolled in school and should have at least 85 percent in attendance in their classes. The mother should also undergo regular health- center visits and must attend monthly family-development sessions. Last year the 4Ps was given an annual budget of $1.2 billion, which made up 0.5 percent of the country’s GDP. About 10 percent of the budget was allocated for administration costs of the 4Ps. Households who benefited from the cash grants reached 4.4 million, which includes more than 10 million children. Broken down, household utilization of the cash grants include 49 percent of their budget allocation for food. About 25 percent was spent

for education and 7 percent for health. The budget for clothing made up 11 percent, while no allocation was given for vices and recreation.

Impact assessment

DOCUMENTED CCT impact on the poverty rate and welfare of the Philippine pointed out that beneficiaries of the cash grants spend more on health and education. T here was significant reduction in stunting among children and that more pregnant women from the marginal sector get more prenatal care and postnatal care and deliver in health facilities, according to the ADB data Mangahas presented during the Second International Tax Forum in October. It was also seen that child labor in the country was reduced, ADB data revealed. Other findings revealed that the matriarch and patriarch in the household continue to look for work and families become more optimistic about the future. In addition, at least 1.5 million 4Ps families are now above the poverty line under the National Household Targeting System for Poverty Reduction of the DSWD. The ADB further pointed out that the 4Ps has a positive effect on the country’s poverty gap. It complements the long-term solution to poverty, as well as reduces the national poverty incidence and food poverty incidence in the country. To be concluded

Quezon City boosts network in pursuit of SDG on maternal, child care

N its bid to ensure the safety of pregnant women from conception to postbirth child care, the local government of Quezon City partnered with several health institutions to further guarantee the well-being of both mother and child. According to Quezon City Mayor Herbert M. Bautista, the city government is striving hard to achieve the United Nations Sustainable Development Goals (SDGs) and is focusing on the third item, which is on good health and well-being of the citizens. The mayor told attendees at the recent Fourth Maternal and Neonatal Health Summit, organized by the Quezon City Health Department together with United Laboratories Inc. (Unilab), that the city government will ensure UN development goals of boosting public health, improving maternal health and reducing neonatal mortality through a localized and sustainable Maternal Newborn Child Health and Nutrition (MNCHN) approach and by implementing a functional Service Delivery Network (SDN). Bautista underscored the priority programs of his government to address maternal and neonatal health, particularly the Seal of Excellence, which seeks to enforce the strict compliance of private lyingins to the Department of Health’s (DOH) standards and to enhance public-private partnership in resource mobilization, monitoring and evaluation.

The Seal of Excellence is also the quality label awarded to private lying-in clinics in Quezon City that have met all essential maternal, newborn, child health and nutrition MNCHN indicators using the DOH-approved MNCHN tools, such as the DOH’s License to Operate (LTO); Philippine Health Insurance Corp. (PhilHealth) Accreditation, Sanitary Permit and membership in the city’s SDN. Recipients of the Seal of Excellence for 2016 already reached 23 clinics and lying-ins. “Reforms in the local health systems will considerably lower the risks of dying secondary to pregnancy and childbirth. We need to standardize regulation and accreditation of birthing facilities and enhance further the referral network, reporting and transport systems to improve service delivery,” said Dr. Verdades P. Linga, Quezon City health officer III. In her presentation, Health Assistant Secretary Maria Francia M. Laxamana highlighted the efforts of the department in taking steps to further improve the health and well-being of the Filipinos, especially the poorest of the poor. She said the DOH is looking into improving health-emergency management within clinics and lying-ins, including the provision of proper health-care products and services to those who are in need. Laxamana also emphasized the importance of partnerships with the private sector to further extend the

Awardees of the Seal of Excellence—Sheryl Birthing Home and Lying-In Clinic, Molave Maternity, Angelic Lying-In Clinic, MVL Midwife Clinic, LHR Lying In Clinic, Angelyn Birthing Home, Madlangsakay Medical and LIC, Cabarles Maternity and Children’s Clinic, LGC Maternity and Medical Clinic, JMS Birthing Homes, Pascual Gentle Hands, Maranatha Lying In Clinic, Manalo Birthing Clinic, Trinidad Midwifery Services and Lying In Clinic, Medinet Lying In Clinic, Don Enrique Birthing Home, JMC Lying In Clinic, Glo Maternity LIC, Drueco LIC and Med Specialist, and SafeBirth Lying-In Clinics—are joined by Dr. Ramona Abarquez, Quezon City Maternal, Newborn, and Child Health and Nutrition coordinator; Claire Papa, head of External Affairs and Social Partnerships of Unilab; Dr. Verdades P. Linga, Quezon City health officer III; Department of Health Assistant Secretary Maria Francia Laxamana, MD, MHSA, CHS; and Quezon City Mayor Herbert Bautista.

reach of health care in the country. This was echoed by Unilab. “Our continuous collaboration with Quezon City on maternal and child health has resulted in sustained community engagements that generated more participative stakeholders. Sharing of values and resources are two components that make our public-private partnership work. We

are optimistic that our initiative in setting the standards for health-services delivery will prove that strict compliance to public-health services delivery can be done,” said Claire D. Papa, head for External Affairs and Social Partnerships of Unilab. Several health professionals presented their respective programs during the conference in line with Quezon City’s promotion of prenatal and postnatal care. City Surveillance officer Dr. Rolando Cruz said the Quezon City HIV Testing Department is implementing the same-day result testing so patients would be able to act on their diagnosis right away. Since 1984, the city diagnosed over 3,496 HIV and AIDS patients. For January to June of 2016 alone, Quezon City detected 427 HIV-positive patients. However, Cruz noted that not all the HIV-positive patients are Quezon City residents, citing that 56.64 percent of their patients are from neighboring cities. In 2015 around 65 health centers and seven public lying-in clinics in Quezon City served 97,221 pregnant women, with those testing positive for HIV or AIDS immediately given proper care and treatment. Dr. Alejandrino Perez presented updates on PhilHealth’s pregnancy packages, emphasizing the need for affordable and accessible financing products to lessen maternal deaths in the country. In 2013 about 3,000 Filipino mothers died from childbirth, out of 2.4 million deliveries. Maternal mortality was at 110 to 130 per 100,000 live births. “Ang main goal talaga natin is

maibaba ang maternal death without hampering the family budget,” he said. Relying on technology for better health services and reliable healthmanagement system in health centers, Arturo Ongkeko discussed the importance of the Computerized Health Information System (CHITS) in managing the Mag-Ina Telereferral System (MInTS) and Birth Registration Tracking System (BiRTS) across all health institutions. According to the National Telehealth Center web site, MInTS aims to strengthen the servicedelivery network of maternal and neonatal referral and feedback process among health facilities, while BiRTS seeks easier birth registration through digital form from the CHITS to the local civil registry. These systems have eased and organized, all not only maternal, medical records across the city. Meanwhile, focusing on the general health of the child is the Batang 1000 Program. The joint project between the Quezon City Health Department (QCHD) and Unilab aims to reduce the prevalence of stunting in children across the city. Launched early this year, the program covers the period from conception of the child to the pregnancy of the mother to the child’s toddlerhood. In October over 600 expecting mothers and mothers with newborn babies from different barangays were enrolled by the QCHD to the program, making available to them comprehensive health-care packages from pregnancy to the time they give birth.

BOP. . .

Continued from A1

W hile Chambers predicts a negative in the current account in the “short term”, for this year he told the BusinessMirror he still sees a stronger current-account position in the second half of the year. “China’s economy has stabilized after its early-year jitters and the US economy is growing near its potential. Both of these factors will provide a boost to Philippine exports, thus helping the country’s current-account position,” he said. Global bank HSBC echoed the view, saying the BoP is now under stress also due to the surge in capital imports required for infrastructure construction, among other imports. HSBC also said the realization of investment commitments from China is not likely to improve the deteriorating trend in the BoP. “Even with our assumption of $2.5-billion inflows of Chinese funds per year, this would not offset the strong deterioration in the current account, where we forecast the goods deficit to widen by $15 billion by end-2017,” HSBC said. “As we have maintained since the new government was inaugurated, the sheer magnitude of the goods deficit will, nonetheless, cause the current account to moderate to 1.3 percent in 2016 and 0.9 percent in 2017—with any further moderation contingent on oil prices,” it added. The weakening current account, according to HSBC, may pave the way for a weaker currency against the US dollar. “Still, we believe heightened political uncertainty could delay FDI inflows into the Philippines and, with the current-account surplus narrowing, there is now greater room for weakness and/or volatility,” the bank said earlier. On Monday the peso saw a new eight-year low, ending the day at 49.83 to a dollar from 49.78 to a dollar last Friday. This is the lowest the peso has seen since November 24, 2008, when it also hit 49.83 to a dollar. BSP Deputy Governor Diwa C. Guinigundo said the exchange rate is normally the Philippines’s “first line of defense” in adjusting to new economic shocks. “As long as the volatility remains manageable and speculative plays are held at bay, we should allow the adjustment to continue. After all, we should remember that our fundamentals remain sound with third-quarter real GDP at 7.1 percent,” he said, adding that the growth will “anchor all of these adjustments and rebalancing to manageable proportions.”

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Tuesday, November 22, 2016 A3

DTI, Mitsubishi to seek lower auto excise tax

By Catherine N. Pillas

@c_pillas29

he Department of Trade and Industry (DTI) and a key player in the auto industry have teamed up to renegotiate with the finance department’s proposal to raise the excise tax on automobiles, saying that a higher tax may have a detrimental effect on the country’s car-manufacturing push.

Trade Undersecretary and Board of Investments (BOI) Managing Head Ceferino S. Rodolfo on Monday said they wanted to shield vehicle models currently enrolled in the Comprehensive Automotive Resurgence Strategy (CARS) Program. “We’ll look at the vehicle segments na hindi tatamaan ’yung [that won’t affect] CARS, and the [units and models that are] locally assembled. From the DOF’s [Department of Finance] tiered proposal, we’re looking at adjusting the segments to be included in order to avoid the price level that corresponds to the participants in CARS,” Rodolfo said in a chance interview during the Mitsubishi Motors Philippines’s Recognition of Suppliers ceremony on Monday. The DOF, after the 17th Congress convened, presented a comprehensive tax-reform package to the legislative body that included offsetting measures to recover possible revenue loss from lowering corporate and personal income tax. According to an earlier BusinessMirror story, House Ways and Means Committee Chairman Dakila Carlo Cua said the excise tax on automobiles priced below

The excise tax on automobiles priced below P600,000, as proposed by the finance department P600,000, currently at 2 percent, will be increased to 5 percent. Under the DOF bill, there shall be levied, assessed and collected an ad valorem taxes on automobiles based on the manufacturer or importer’s selling price, net of excise and value-added tax. Under the measure, if the net manufacturer’s price/importer’s selling price is P600,000 the excise tax will be 5 percent. If the net manufacturer’s price/importer’s selling price is P600,000 to P1.1 million, the excise will be 20 percent of net manufacturing/importation price.

If the net manufacturer’s price/importer’s selling price is P1.1 million to P2.1 million, the excise will be 40 percent of net manufacturing/importation price. If the net manufacturer’s price/importer’s selling price is P 2.1 million, the excise will be 60 percent of net manufacturing/importation price. Toyota’s enrolled model to the CARS Program, the Vios, has a suggested retail price of P800,000. Mitsubishi’s own bid, the entry-level versions of Mirage and Mirage G4 are priced starting at P550,000 and P570,000, respectively. First Vice President of Mitsubishi Motors Philippines Corp. Dante Santos affirmed the industry will bat for a reevaluation of the DOF’s proposal, considering the significant increase in vehicle price should excise tax be hiked. “We will recommend our position after we’ve talked to the finance department. We only wish that all products under a government program be continued without imposing heavy excise taxes. If you target the lower-priced vehicle, you’re already affecting the general buying public,” Santos said. The DOF proposal is seen as a measure incongruent to the DTI’s policy of industry development Last year the government approved the DTI’s CARS Program, which was primarily meant to jump-start local auto production via a government support package to lower the cost of production, and encourage more parts localization. The said program took three years in the making, as various studies were conducted on the level of volume production that could make Philippine auto assemblers achieve economies of scale, as well as other components of the program that will raise employment generation and boost manufacturing output.

Asia-Pacific summit closes with call to work for free trade

incoming president or seek to implement it without the US. But the statement issued at the close of the summit said the organization would also work toward adoption of a broader 21-nation pact favored by the Chinese government known as the Free Trade Area of the Asia Pacific. Canadian Prime Minister Justin Trudeau said he is keeping an open mind about Trump, who has threatened to tear up the North American Free Trade Agreement between his country, the US and Mexico. “We’re not going to jump to any conclusion about what the incoming American administration is going to actually do,” Trudeau said. “There’s been a certain amount of things said. But, at the same time, we know that trade is good for the middle class and those working hard to join it.” The Apec statement also said the members would adhere to the carbon-reduction goals set in Paris last year to address climate change, a problem that they called a threat to food production and food security. AP

Leaders wave during the group photo at the annual Asia-Pacific Economic Cooperation (Apec) summit in Lima, Peru, on Sunday. From right are Malaysian Prime Minister Najib Razak, Vietnamese President Tran Dai Quang, South Korean Prime Minister Hwang Kyo-ahn, US President Barack Obama, Japanese Prime Minister Shinzo Abe, Thai Deputy Prime Minister Prajin Juntong, Indonesian Vice President Jusuf Kalla, Taiwanese special Apec envoy James Soong, Hong Kong’s Chief Executive Leung Chun-ying, Singaporean Prime Minister Lee Hsien Loong, Peruvian President Pedro Kuczynski, Russian President Vladimir Putin, Chinese President Xi Jinping and Philippines’s Secretary of Department of Foreign Affairs Perfecto Yasay. AP

IMA, Peru—Leaders of 21 Asia-Pacific nations ended their annual summit on Sunday with a call to resist protectionism amid signs of increased free-trade skepticism, highlighted by the victory of Donald Trump in the US presidential election. The Asia-Pacific Economic Cooperation (Apec) forum also closed with a joint pledge to work toward a sweeping new free-trade agreement (FTA) that would include all 21 members as a path to “sustainable, balanced and inclusive growth,” despite the political climate. “We reaffirm our commitment to keep our markets open and to fight against all forms of protectionism,” the leaders of the Apec nations said in a joint statement. Apec noted the “rising skepticism over trade” amid an uneven recovery since the financial crisis, and said “the benefits of trade and open markets need to be communicated to the wider public more effectively, emphasizing how trade promotes innovation, employment and

We reaffirm our commitment to keep our markets open and to fight against all forms of protectionism.”—Apec statement higher living standards.” Speaking to journalists at the conclusion of the summit, Peruvian President Pedro Pablo Kuczynski said the main obstacle to FTAs in Asia and around the world is the frustration felt by those left behind by globalization. “Protectionism in reality is a reflection of tough economic conditions,” said Kuczynski, the meeting’s host. Referring to Britain’s vote to leave the European Union and Trump’s election win in the US, he said those results highlighted the backlash against globalization in former industrial regions in the US and Britain that contrasts with support for trade in more-prosperous urban areas

and developing countries. “This is an important point in recent economic history because of the outcome of various elections in very important countries that have reflected an antitrade, antiopenness feeling,” he said. This was the last international summit for US President Barack Obama and he had been expected to promote the Trans-Pacific Partnership (TPP) pact, a 12-nation trade deal. But he is no longer expected to seek ratification by Congress before he leaves office because of the election victory by Trump, who called the agreement a “disaster” for jobs. Obama told reporters that the way to address income inequality and to create jobs

is through crafting trade policy and agreements like the TPP in ways that will increase exports to the Pacific Rim countries that make up a third of the world’s population. “When it comes to trade, I believe the answer is not to pull back,” he said at his last overseas news conference. “The answer is to do trade right, making sure it has strong labor standards, strong environmental standards—that it addresses ways in which workers and ordinary people can benefit rather than be harmed by global trade.” Questions about Trump trailed Obama throughout trip as anxious world leaders quizzed him on Trump’s stances on key issues like trade, foreign policy and the North Atlantic Treaty Organization alliance. On his final day in Peru, Obama sought to reassure the leaders gathered here that their long-standing ties with the US wouldn’t falter under Trump. Leaders of other nations said at the Apec meeting that they might seek to modify the TPP deal to make it more appealing to the

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Editor: Max V. de Leon • Tuesday, November 22, 2016 A5

Thailand’s economic growth slowed in Q3

hailand’s economy grew at a slower pace last quarter on weaker private investment, putting pressure on the government to boost spending to help shield the economy from rising global risks and political uncertainty following the death of King Bhumibol Adulyadej.

GDP expanded 3.2 percent from a year earlier, the National Economic and Social Development Board (NESDB) said in Bangkok on Monday. The median estimate of 25 economists surveyed by Bloomberg was 3.4 percent. GDP grew 0.6 percent from the previous three months, compared with the 0.7 percent median estimate.

Big picture

Thailand’s economy has struggled to gain traction this year as weak consumer spending and a slump in trade curbed investment. While exports are showing some signs of recovery, authorities are now facing risks from financial market volatility

following the US elections and the death last month of the Thai king, who has served as a pillar of stability during his seven-decade rule. While the military junta, led by Prime Minister Prayuth Chan-Ocha, has pledged to boost infrastructure projects and give financial support to farmers, that hasn’t been enough to support the economy, with government consumption contracting last quarter.

Economist takeaways

Growth “looks set to soften further over the coming quarters, due to high levels of household debt, lackluster global growth and continued political uncertainty,” Krystal Tan, an economist at Capital Economics Ltd.

3.2%

The percentage of Thailand’s economic growth in Q3

in Singapore, said in a note. “The passing of Thailand’s king will probably cause some disruption to economic activity in the short term, though the impact should be fairly modest and concentrated in certain sectors of the economy, notably nightclubs and other entertainment venues.” “We expect GDP growth to remain below potential, which should keep the central bank accommodative through 2017,” Weiwen Ng, an economist at Australia & New Zealand Banking Group Ltd. in Singapore, said in an e-mail. “While credit growth has started to edge up in recent months, the inability of private investment and capacity utilization to rise will keep economic growth below trend.”

Other details

Private consumption rose 3.5 percent in the third quarter from a year ago, down from 3.8 percent

in the second quarter. Government spending contracted 5.8 percent, compared with 1.5-percent expansion in the previous quarter; growth in state investment slowed to 6.3 percent, from 11.9 percent. Private investment declined 0.5 percent, compared with 0.2-percent expansion in the second quarter. Exports increased 0.4 percent, returning to growth for the first time in seven quarters. NESDB sees growth of 3.2 percent this year and 3 percent to 4 percent in 2017; exports forecast to show zero growth this year, compared with previous estimate of 1.9-percent contraction. Porametee Vimolsiri, secretary-general of the state planning agency, said the economy may slow down slightly in the fourth quarter because of uncertainties in the tourism industry. Government investment will remain the key driver next year, he said. Bloomberg News

A view of retail activity in one of Thailand’s economic centers BLOOMBERG NEWS

Tuesday, November 22, 2016

The World BusinessMirror

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

Global ‘Trumpism’ seen harming efforts to reduce climate pollution

Protesters wear the masks of South Korean President Park Geun-hye (left) and Choi Soon-sil, Park’s longtime friend, in Seoul, South Korea. The placards held by the protesters read: “Park Geun-hye should step down.” AP/Ahn Young-joon

Park’s party faction wants her out

faction of lawmakers in Park Geun-hye’s ruling party is calling for her ouster, putting the opposition closer to the numbers needed to impeach South Korea’s president over an influence-peddling scandal shaking Asia’s fourth-biggest economy.

Thirty-five Saenuri lawmakers estranged from the party held a meeting after prosecutors said on Sunday she “colluded” with former aides in the corruption case. Thirty-two agreed to pursue Park’s impeachment and demand that she leave the party, with lawmaker Hwang Young-cheul saying in a briefing that the number of proponents will increase. In response to the allegations, the presidential Blue House on Sunday questioned the neutrality of the prosecutors, saying the interim investigation was being conducted as if she committed a serious crime. The president’s lawyer also rejected the results of the probe, saying they are based on “imagination and conjecture.” Park has shown few signs that she plans to step down any time soon, despite hundreds of thousands of protesters gathering near the presidential compound over the past two weekends to demand her resignation and arrest. While the nation’s Constitution protects

70% The percentage (two-thirds) of votes of South Korea’s 300-member National Assembly required to impeach the president

a president from being indicted, it allows for impeachment should two-thirds of the 300-member National Assembly approve. Lawmakers from the three opposition parties control a combined 165 seats, while Park’s ruling Saenuri Party has 129 seats. Six are with unaffiliated members.

Party rift

While the opposition parties lack the numbers needed to oust her, a

rift within the ruling party may increase the risk of an impeachment motion for Park, said Choi Changryul, a political commentator and professor at Yong In University. “The opposition will now start contacting ruling-party lawmakers to start their impeachment procedure,” Choi said. “While it’s the prevailing view that any impeachment motion can be overturned by the Constitutional Court, I personally think it won’t be that easy for the judges to do so, given the public anger.” Choo Mi-ae, leader of the main opposition Democratic Party of Korea, said on Monday her party would set up an apparatus to push for impeachment, Yonhap News reported. Moon Jae-in, the leading contender to take over as president in opinion polls, said there’s a strong case for impeachment. Both urged Park to step down as president first.

Samsung, Hyundai

Prosecutors on Sunday said they’ve secured enough evidence to show Park played a role in the scandal, while her longtime confidante Choi Soon-sil extracted money from some of the country’s biggest companies and gained access to classified information. Charges against Choi and a former presidential aide include attempted coercion and abuse of authority, while another aide was accused of leaking classified information, Lee Young-ryeol, the head of the Seoul Central District

Prosecutors’ Office, said on Sunday. Prosecutors will continue to investigate Park, Lee said. Park is the first South Korean president to be targeted as a suspect in a corruption investigation while in office, and has asked for more time to prepare for her defense. Her approval rating has dropped to 5 percent, according to Gallup Korea. T he cor r upt ion probe h a s widened to companies, including Samsung Electronics Co. and Hyundai Motor Co., amid allegations the conglomerates provided about 77.4 billion won ($65 million) to two foundations controlled by Choi. “The companies could not help but follow the demands by Choi and An in fear of facing both direct and indirect disadvantages in their business activities,” Lee said. Samsung’s headquarters was raided by investigators earlier this month and an executive of Hyundai Motor was summoned for questioning.

Korean law

South Korean law stipulates that the Constitutional Court should make the final decision within 180 days after it receives an impeachment proposal from the National Assembly. At least seven judges are required to try an impeachment case, while at least six have to vote for the proposal to be eventually passed. Park’s resignation would trigger a presidential election within 60 days. Bloomberg News

opulism is drawing mome nt u m f rom e nv i ron mentalism in the US and Europe, threatening the world’s effort to rein in climate change. Donald Trump’s election in the US, the UK Independence Party (Ukip) and Marine Le Pen’s ascent in France all represent a break with political leaders who made the environment a priority. A l l three are skeptica l climate change is happening and are resistant to inter nationa l projects, like the United Nat ion s g loba l w a r m i ng t a l k s. Envoys f rom more t han 190 countr ies gathered by the UN made progress this weekend in their work to contain fossilf uel emissions and keep a lid on temperature increases. Two wee k s of d i sc u ssions in Marrakech, Morocco, were overshadowed by the election of Trump, who has called climate change a hoax. Many delegates left the city concerned about the forces working against them. “If climate change is labeled as an elitist, global project, which is what Ukip and Le Pen want to do, then it’s dead,” said Nick Mabey, a former climate adviser to the UK government now leading the environmental consultant E3G. Trump takes office in January and has said he’ll pull out of the Paris Agreement negotiated through the UN. That’s a sharp contrast to outgoing President Barack Obama, who spent six years concentrating on the issue, resulting in a historic agreement with China in 2015 to work together on lowering emissions, prompting dozens of developing economies to follow suit. Trump’s stance is echoed by right-wing movements in Europe: Le Pen’s National Front doubts global warming is linked to human activity and has promoted a “New Ecology movement” emphasizing on national programs on the environment over global rules like the ones coming from the UN talks. Ukip leader Nigel Farage called the fight against climate change “one of the biggest and stupidest collective misunderstandings in history,” saying the science isn’t settled and technologies to defeat the problem, like renewable energy, are damaging to the economy. Ukip’s push to leave the European Union was endorsed by British voters on June 23, leaving Farage more influential in shaping government policy. Delegates in Marrakech made progress in writing a rulebook on how to implement the 13-page Paris deal. They also

set out a work plan for reviewing progress on emissions. A last-minute dispute involving India and Bolivia kept negotiators working into early on Saturday, hours past their deadline to finish and underscoring the tensions that remain between rich nations and poor ones on how quickly to act. India and Bolivia held out for more comprehensive discussions on a list of pre-2020 actions, including for when the most-polluting nations would curb emissions. They were concerned that negotiators were allowing other issues to slip down the agenda, such as longterm finance for climate projects. In the end, the envoys agreed to discuss the issues next year. China, which for years acted as a spoiler at the UN talks, has flipped its role and now is lecturing the US and Europe on the importance of the issue. Vice Foreign Minister Liu Zhenmin ripped into Trump’s claim that China invented the climate issue and reminded Western envoys of the need to act. “The European Union has been a leading player in the climate change negotiations in the past 20 years,” Liu said in Marrakech. “We hope the European Union will continue to play its role. A continuation of the support of the climate-change convention, the UN Framework Convention on Climate Change (UNFCCC), and the Paris Agreement would be the responsibility of the US, it would be the liability of the US to continue to support this process.” Brazil, which was caught up in the 11th-hour spat with India and Bolivia, reminded envoys how delicate the talks are, noting careful diplomacy is needed to keep building on the goals set out in Paris. “The Paris Agreement as it is, is not implementable,” said Antonio Marcondes, Brazil’s lead negotiator at the talks. “We agreed on Paris, but now we have to go down to minute issues that are very important, which is a very laborious task.”

Next round

As if to emphasize international attention seeping away from the issue, the UN had trouble finding a host for next year’s talks. The annual UN climate jamboree drew more than 22,500 diplomats, media and environmentalists to Marrakech. In recent years, it was held in glittering resorts from Cancun, Mexico, to Durban in South Africa and Bali, Indonesia. And as recently as 2011, Asian nations, including South Korea and Qatar, competed for rights to host. Bloomberg News

Search of Indian train wreck ends, 133 dead P

UKHRAYAN, India—Rescuers finished searching the last of 14 mangled train carriages that derailed in northern India, killing at least 133 people and leaving about 200 more injured, the police said early on Monday. The passenger train was about midway through a 27-hour journey between the cities of Indore and Patna when it slid off the tracks at 3:10 a.m. on Sunday, jolting awake passengers who had settled in to sleep. The impact was so strong that one of the coaches landed on top of another, crushing the one below. Passengers said they heard the crash as they were flung from their beds. “There was a loud sound like an earthquake. I fell from my berth and a lot of luggage fell over me,” Ramchandra Tewari, who suffered a head injury, said from his hospital bed in

the city of Kanpur. “I thought I was dead, and then I passed out.” Rescue workers, soldiers and members of India’s disaster-management force worked through the night to pull out people trapped amid the twisted metal and overturned coaches near Pukhrayan, a village outside the industrial city of Kanpur about 400 kilometers southeast of New Delhi. Rescuers used cutting torches to pry open cars and cranes to lift coaches from the tracks, moving carefully to prevent any cars from toppling over and injuring those trapped inside. By Monday morning, they had searched the last of the 14 wrecked cars, finding several more bodies that took the death toll to at least 133, Indian broadcaster NDTV quoted police Director General Daljeet Chaudhary as saying. Roughly 266 others were injured. Medical

teams provided first aid near the site, while the more seriously injured were moved to hospitals in Kanpur, including 76 in serious condition, Chaudhary said. Anxious relatives searched for their family members among the injured and the dead at hospitals in Kanpur. Rail authorities ordered an investigation into what caused the derailment. Some told local media they suspected faulty tracks. “We haven’t seen an incident like this in Indian Railways for a long time,”said the state’s railways minister, Rajen Gohain, according to the Indian Express newspaper. “There must be a fault in the track as 14 bogeys have derailed, and this happened despite regular checking of the tracks.” Accidents are relatively common on India’s sprawling rail network, which is the world’s

third largest but lacks modern signaling and communication systems. Most accidents are blamed on poor maintenance, outdated equipment and human error. The nation’s railway minister, Suresh Prabhu, said a special train was taking uninjured passengers from the derailed train to Patna, according to the PTI news agency. He said thousands of food packets, water bottles and cups of tea were being provided to the stranded passengers. The Patna-Indore Express Train derailing was one of India’s deadliest train accidents in at least five years. According to an Indian government report in 2012, about 15,000 people are killed every year in train accidents. The worst occurred in 1981, when a passenger train fell into the Baghmati River in northern India, killing

Rescuers search among the debris after 14 coaches of an overnight passenger train rolled off the track near Pukhrayan village Kanpur Dehat district, Uttar Pradesh state, India, on Sunday. AP/Rajesh Kumar Singh

The World

BusinessMirror As U.S. President-elect Donald Trump era dawns www.businessmirror.com.ph • Editor: Lyn Resurreccion

Tuesday, November 22, 2016

China moves to fill global leadership vacuum

hina is moving after Donald Trump’s election win to claim the mantle of the world’s champion of free trade and the fight against climate change, prompting a melancholy warning from US President Barack Obama that the US risks getting left behind in Asia.

Obama met in Peru on Sunday with leaders of the 12-nation Trans-Pacific Partnership (TPP), a trade deal that Trump vowed to kill on the campaign trail along with the Paris Agreement to tackle climate change. Obama said TPP members told him they want to move forward with the pact, “preferably” with the US. “I believe that TPP is a plus for America’s economy,” Obama told reporters while attending meetings of the Asia Pacific Economic Cooperation (Apec), the first major global summit since Trump’s win. “Not moving forward would undermine our position across the region.” China has wasted no time in seeking to reassure nations wary of a more protectionist US, with President Xi Jinping telling Apec leaders that he aimed to boost global trade and provide a level-playing field for foreign companies. Last week China indirectly chided Trump for his views on global warming, which he has called a Chinese hoax to hurt American manufacturing.

Free ride

With TPP all but dead, many regional leaders are prioritizing a China-backed alternative known as the

Regional Comprehensive Economic Partnership (RCEP). In a brief chat at Apec, Japanese Prime Minister Shinzo Abe—one of TPP’s biggest proponents—told Xi that he wanted to improve ties. Abe had flown to New York last week to meet with Trump to push the case for free trade. “For years, China free-rode on America and Europe to make global rules and develop free trade,” said Nick Mabey, who used to advise the UK government on climate issues and now runs E3G, a policy-research group. “Now China realizes it needs to be more responsible for global rules because it needs that for its own development. They want stability globally so they can invest abroad while they manage the transition of their own economy.” Just months ago, it was the US pushing for China to respect the “rules-based ” international order, chastising Beijing for ignoring the outcome of an arbitration court in The Hague that found its claims to most of the South China Sea had no legal basis. The ruling determined that China had “aggravated” tensions with other claimants and was seen as a set back for China’s neighborhood diplomacy.

lack of transparency, of rule of law and the confusion between political and economic power.”

Less ambitious

China’s President Xi Jinping Bloomberg News

The number of nations with the Trans-Pacific Partnership trade deal ‘Expand cooperation’

China is now using Trump’s v ic tor y to w i n bac k g rou nd on the international stage. In Lima X i touted the benefits of the 16 -nation RCEP trade deal. “We should deepen and expand

cooperation in our region,” Xi said. “Any attempt to undercut or exclude each other must be rejected.” Leaders of the 21 Pacific Rim nations agreed over the weekend to continue working toward a regional free-trade area and resist any shift toward protectionism. The group said the benefits of trade, investment and open markets required better explanation. Xi also called for “a smooth transition” to a new US administration. Trump has blamed China for taking US jobs and has said he will instruct his treasur y secretar y to label the countr y a currency manipulator.

Role reversal

While China has long pushed for other countries to open up their markets, and has inked trade

pacts with countries like Australia, the US has criticized Beijing for not opening up the economy more to foreign companies. Asian nations have also expressed concern about China’s military clout and territorial ambitions. Investing in China is very difficult, and RCEP is “low level” compared with the TPP, according to Jean-Pierre Cabestan, a professor in political science at Hong Kong Baptist University. “China is taking advantage of the statements made by Trump during the presidential campaign to occupy, if not monopolize, the high moral and political ground,” Cabestan said. “We will see on the ground which side will be fairer than the other. I continue to doubt that it will be China, because of the structure of its economy, the

Obama said on Sunday there were calls for a “less ambitious” trade agreement with fewer protections that the US wouldn’t participate in. The TPP would go further than a traditional trade pact, including provisions on intellectual property, labor rights and state-owned company reform. “TPP is not only a trade pact, it can also be seen as a geopolitical initiative,” said Xie Tao, a professor of political science at Beijing Foreign Studies University. “If the US still wants to maintain its world No. 1 position, it will have to play a leading role in promoting free trade. Giving up TPP potentially leads to giving up its Trans-Pacific leadership role.” Some US allies aren’t giving up just yet. While Abe met with Xi in Peru, last week he had called Trump “a leader we can trust,” after meeting the president-elect in New York. Australian Prime Minister Malcolm Turnbull also expressed hope that Trump would eventually accept the TPP in some form. For now, the demise of TPP in the US is “a big blow” to America’s stature vis-á-vis China in shaping global trade policy, Eric Altbach, vice president at advisory firm Albright Stonebridge Group in Washington, said before the Apec meeting. “We had our horse, the Chinese had their horse, but our horse has been put out to pasture and is no longer running in the race,” said Altbach, a former deputy assistant US trade representative for China affairs. “It’s a giant gift to the Chinese because they now can pitch themselves as the driver of trade liberalization.” Bloomberg News

Trump children’s roles blur line between transition, company May to UK business: Work

EW YORK—Nearly every morning since their father’s stunning victory on Election Day, three of Donald Trump’s grown children walk through the Trump Tower lobby and board an elevator. But are Don Jr., Ivanka and Eric going to the campaign office on the fifth floor? Their business offices on the 25th floor? The president-elect’s penthouse on the 56th floor? That uncertainty highlights the multiple roles the children play for their father. For the past year, the lines were constantly blurred between political campaign and business empire, raising questions about a possible conflict of interest between Trump’s White House and his sprawling business interests. The children are poised to wield incredible inf luence over their father, even if they don’t f o l l o w h i m t o Wa s h i n g t o n . Trump said consistently during the campaign that if he won, those children would stay in New York and run his business. But the three—plus Ivanka’s husband, Jared Kushner—were all named to the transition team’s executive committee. So far, they’ve been heavily involved in shaping the new administration. They’ve sat in on meetings and taken late-night calls from their father. They advocated for making Reince Priebus, the Republican National Committee chairman, the White House chief of staff. They counseled against bringing back Corey Lewandowski, Trump’s first campaign manager, who was fired in June on their advice. On Thursday Ivanka and Kushner were present for the presidentelect’s meeting with Japanese

Donald Trump Jr. (right) and Eric Trump (center) get on an escalator in the lobby of Trump Tower on November 14 in New York. AP/Evan Vucci

Prime Minister Shinzo Abe at Trump Tower. Trump has insisted he will build a wall between his White House and his company by placing his holdings into a blind trust, but with his children as its trustees. Federal requirements are that independent outsiders run such trusts. “We are in the process of vetting various structures with the goal of the immediate transfer of management of The Trump Organization and its portfolio of businesses to Donald Jr., Ivanka and Eric Trump, as well as a team of highly skilled executives,” Trump Spokesman Hope Hicks said. She said the structure “will comply with all applicable rules and regulations.” Trump’s company would be the largest business portfolio to belong to a modern sitting president. Federal ethics rules would allow Trump to run his business interests from the White House, or, perhaps more likely, inf luence decisions made by his children. That raises conflict of interest

concerns. For example, Trump could set domestic policy while making deals abroad that could affect his corporation, even if it were technically in his children’s hands. Kellyanne Conway, a senior adviser, disputed the idea that the Trump children’s involvement in the transition could lead to a breach of trust. “You’re presuming that they are doing certain things that they should not be doing,” Conway said. “They are his children. And they’ve been his business colleagues for a long period of time. They obviously will support their father as president.” But the potentially problematic entanglement revealed itself this past week when Ivanka Trump’s company promoted a $10,800 bracelet she wore during a 60 Minutes interview on CBS. The spokesman for the company later apologized. The children— they were not made available for interviews—are limited in what formal role they could take in a Trump administration. Congress passed an anti-nepotism law in

1967 that prohibits the president from appointing a family member to work in the office or agency they oversee. The measure was passed as a reaction to President John F. Kennedy appointing his brother Robert as attorney general. But the law does not appear to prevent the children—or Kushner, who is one of Trump’s closest aides and is said to be weighing a White House role—from serving as unpaid advisers or providing informal counsel. The three grown children— their mother is Ivana Trump, Trump’s first wife—delivered well-received speeches at this summer’s Republican National Convention in which they tried to humanize their father. Don Jr. and Eric were staples on conservative radio and on the road, trekking to campaign offices and small rallies across battleground states, like Ohio and North Carolina. Ivanka Tr ump, meanwhile, was utilized in some of the campaign’s biggest moments, including introducing her father before his convention speech, unveiling his family leave plan and campaigning across the crucial Philadelphia suburbs. A nother d aughter, Tif fany Trump, a recent college graduate whose mother is Trump’s s e cond w i fe, M a rl a M aple s, also made appearances on her father’s behalf. Trump’s youngest child, 10-year-old Barron, whose mother is the presidentelect’s current wife, Melania, is enrolled at a private Manhattan school. Trump on Sunday told reporters that Mrs. Trump and their son will move to Washington after the school year ends. AP

to create fairer capitalism

K Prime Minister Theresa May will urge businesses to work with the government to adapt and change to ensure the benefits of capitalism are shared more equally, underlining her belief the vote for Brexit was the people’s call for a fairer economy. May would use a speech to Britain’s biggest business lobby group on Monday to set out the need for executives to play by the rules in terms of tax and behavior, and for prosperity to be shared across Britain, according to excerpts released by her office. “If we support free markets, value capitalism and back business— and we do—we must do everything we can to keep faith with them,” she will tell the Confederation for British Industry’s annual conference in London. “That’s the kind of change people voted for—not just to leave the European Union, but to change the way our country works—and the people for whom it works—forever.” The prime minister’s speech comes as political leaders grapple with the fallout from Britons’ decision to leave the EU in June 23’s referendum, and the election of Donald Trump as US president in the November 8 vote. She made her pitch to lead the Conservative Party by promising a fairer conservatism, and roiled markets by taking a swipe at global elites and criticizing loose monetary policy.

‘Sharp challenge’

M ay ’s call for change comes as her Chancellor of the Exchequer Philip Hammond on Sunday warned that businesses face two years of uncertainty and

said public finances face “a sharp challenge,” as Britain negotiates its EU exit. Hammond pledged to set out in his budget report on Wednesday a new fiscal framework to give the economy room to absorb coming shocks, as well as a targeted investment program to boost productivity. The prime minister will tell executives her government is seeking comment on proposals corporate governance in a process she said “will be a genuine consultation.” “We want to work with the grain of business and to draw from what works,” she will say. “But it will also be a consultation that will deliver results.” May would also reiterate her plan to set out an Industrial Strategy to help rebalance the UK economy, targeting priority technologies, such as robotics and artificial intelligence, industrial biotechnology and advanced materials manufacturing. She will announce that Hammond’s Autumn Statement will include an extra £2 billion ($2.5 billion) a year of government investment in research and development by 2020. She will also suggest innovative businesses may benefit from future tax breaks, and said the Treasury will lead a Patient Capital Review to boost investment. “It is about government stepping up, not stepping back, building on our strengths, and helping Britain overcome the long-standing challenges in our economy that have held us back for too long,” she will say. “It is about making the most of the historic opportunity we now have to signal an important, determined change.” Bloomberg News

A10 Tuesday, November 22, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Filipino farmers’ global salesman

F there is one thing that Filipinos have discovered about President Duterte in his recent state visits to other countries, it is this: The President is a savvy salesman who can open up markets for the Philippines. For example, his state visit to China gave Filipino farmers a renewed opportunity to access the Chinese market for Philippine fruits, after Beijing eased the import restrictions on local bananas and other fruits. China is an attractive export destination for local producers because of its proximity to the country and its huge population. The recently concluded Asia-Pacific Economic Cooperation (Apec) held in Lima, Peru, also served to highlight the President’s adeptness in selling the country. This was proven when Russia told Duterte that it plans to buy $2.5 billion worth of fruits, grains and vegetables from Filipino farmers. Russia made the commitment following the meeting between Duterte and President Vladimir Putin. These instances show that the President is well aware of the need for Filipino farmers to look beyond the country’s borders to increase their income. Duterte’s global promotion of local farm produce among our trading partners would certainly help boost exports. The Philippines needs all the assistance it can get to market its products abroad. Compared to the export revenues of other Asean countries, receipts from Philippine farm exports have yet to breach the $10-billion mark. Of the $58.64 billion in export revenues garnered by the Philippines last year, farm products accounted for a measly 6.89 percent, according to data from the World Trade Organization (WTO). A presidential pitch for Philippine farm goods in the global arena is a welcome development for Filipino farmers. But this is just one step to help promote the sector. Local producers must also demonstrate to foreign buyers that they are reliable suppliers of quality products. The government, on the other hand, can do its share to promote our agricultural exports. Our officials have to align government action toward this goal. Policies, such as the plan to scrap agribusiness venture agreements (AVAs), would, for instance, would make it difficult for local producers to deliver. The Pilipino Banana Growers and Exporters Association had earlier complained that the ongoing review of AVAs—deals between private investors in banana plantations and agrarian-reform beneficiaries—forced local corporate farms to halt the expansion of banana plantations. Local producers are also expected to deliver farm products that conform to the food-safety requirements of an importing country. Tariffs may have been cut drastically or dismantled altogether to facilitate trade. But countries continue to impose nontariff barriers, such as food-safety regulations, that present a challenge to local producers. More often than not, they shoulder the cost of complying with these measures. Government programs for the agriculture sector should focus not only on increasing production, but also on helping producers improve the quality of their crops so they could expand their access to export markets. This will ensure that the efforts of the President to serve as the salesman of Philippine farm products will not go in vain. Since 2005

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THE Entrepreneur Continued from A1

ooking at the faces of the big businessmen in the group, who were mostly Chinese Filipinos, I could see that they were enthusiastic, even very happy.

It was as if the meeting between them and their Chinese hosts was a long-anticipated event. They were very bullish, and everybody was negotiating with everybody. It is understandable that in the past several years before President Duterte’s election, Chinese businessmen in the Philippines felt uncomfortable because of the strained relations between China and the Philippines as a result of the dispute over parts of the Spratly Islands in the South China Sea. Duterte, however, did not allow the dispute to prevent the revival of friendly relations between China and

the Philippines. While their conflicting claims remain, the two countries have decided to improve relations in trade, investments and other areas. This is not unusual in the community of nations. Other countries also quarrel with China on some issues, but trade and investments continue to flourish between them and China. Now, we can expect more investments from China. In the past we were receiving insignificant capital from the world’s second-largest economy, partly because of the Spratlys issue. China has also lifted restrictions on agricultural imports from the Philippines, so our banana

Now, we can expect more investments from China. In the past we were receiving insignificant capital from the world’s second-largest economy, partly because of the Spratlys issue. China has also lifted restrictions on agricultural imports from the Philippines, so our banana and mango producers could expect more exports. and mango producers could expect more exports. During Duterte’s trip, the Chinese government lifted all travel restrictions against the Philippines. This move will be a big boost to our tourism industry. But a significant impact of Duterte’s trip that I see is on the confidence of Chinese businessmen in the Philippines, which, in turn, will benefit the economy. We all know that Chinese Filipinos dominate the Philippine economy. Different reports estimate their share of local business at

Warning: The government is coming John Mangun

OUTSIDE THE BOX

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The Chinese among us

vents are moving so rapidly that it is almost difficult to keep track of them. The election of US President Donald Trump has so dominated the news that other equally important happenings are being kept on the back burner.

A few days ago and completely without warning, the government of India demonetized and withdrew from circulation all its 500 and 1,000 rupee notes. Imagine the Philippine government requiring everyone to turn in and exchange for smaller denominations all P500 and P1,000 bills. Multiply that by 100,000 and you will get an idea of the chaos. Further—also similar to the Philippines—a huge percentage of business transactions are conducted with cash. The justification for this move is to attack the underground economy and corruption. Now, 86 percent of India’s currency is no

longer valid, and the Central Bank says it will take up to 50 days (pundits say more like five months) to print all the new currency necessary to replace the old notes. In the West Bengal area, the fishing industry is in a state of near-collapse; in the wheat-growing states of the northwest, farmers halfway through the sowing season have run out of cash to buy seeds. In France far-right party Front National leader Marine Le Pen— who came in a distant third in the 2012 election—has seen her polling making huge gains since the Trump victory in the US. In head-to-head

polling against other likely political party candidates, she is now slightly ahead. A third event is the passage in the United Kingdom of a law—the Investigatory Powers Bill—that “requires Internet, phone and communication app companies to store records for 12 months and allow authorities to access them whenever they demand. Security agencies may also ‘hack’ any personal devices they find evidential.” Of course, all this must be done with the approval of the newly created “Investigatory Powers Commission”. Required reading for this time should be Ayn Rand’s epic 1957 novel Atlas Shrugged. The book is ignored because it is way too long, sometimes contradictory and sounds like a religious sermon—the same reasons some avoid reading the Judeo-Christian bible. But like the Bible, many truths are available. Rand said that, at some point in the future, “government” would be so corrupt, interested only in its own power, it would do anything necessary to preserve its power. Policies would be made in the interest of economic “equality” to keep voters

more than 50 percent, or even as high as 90 percent. Their major investments cover a wide range of activities, like retail, light manufacturing, banking, food, consumer products, electronics and real estate, among others. The majority of the country’s largest banks, some of the biggest realestate industry projects, as well as most of the large shopping malls, are owned by Chinese families. Chinese Filipino businessmen are estimated to own more than 30 percent of the country’s top 1,000 corporations, and control more than half of the publicly listed companies. Most of the Filipinos on Forbes’s list of billionaires from the Philippines are ethnic Chinese. In effect, they are a big business bloc in the Philippines, with a big impact on the economy. As a result of Duterte’s trip to China, it is fair to expect the Chinese Filipino business community to translate their improved confidence and stronger optimism to more investments in the Philippines, which they now call home. For comments, e-mail mbv.secretariat@gmail. com or visit www.mannyvillar.com.ph.

happy. Then economies would stagnate or decline. When that did not work, stronger measures would be employed to stop anti-establishment thinking and action. “When you see that in order to produce, you need to obtain permission from men who produce nothing—when you see that money is flowing to those who deal, not in goods, but in favors—when you see that men get richer by graft than by work, and your laws don’t protect you against them, but protect them against you—when you see corruption being rewarded and honesty becoming a self-sacrifice—you may know that your society is doomed.” There are now more people working for US national and local governments than in manufacturing, making goods. As the late US President Ronald Reagan said many times, “The nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help.’” E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Pitfalls in trade liberalization

Trump’s view of US role in global affairs Cecilio T. Arillo

database

new study conducted by a team of scientists of the Potsdam Institute for Climate Impact Research (PIK) shared to Database has discovered that global warming could create substantial economic damage in agriculture worldwide, as climate change threatens agricultural productivity, forcing up food prices. “While financial gains and losses differ between consumers and producers across the regions, the bottom line is that consumers, in general, will likely have to pay more for the same basket of food,” the PIK study said. Researchers at PIK said additional expenditure for consumers outweighs producers’ gains, and increasing net economic losses will occur in the agriculture and food sector toward the end of the century. However, economic losses could be limited to 0.3 percent of global GDP —depending on agricultural trade policies, they said. “Agriculture is very sensitive to climate change—even a small increase of global mean temperatures can have significant effects on regional crop yields, affecting both the profitability of agricultural production and the share of income spent on food,” PIK lead author-researcher Miodrag Stevanović said. “Our study quantifies economic impacts and analyzes the role of international trade as an adaptation measure. We find that economic losses in agriculture could add up to the annual amount of roughly 0.8 percent of global GDP at the end of the century with a very restricted trade regime,” Stevanovic pointed out. He said although this percentage sounds small, it actually translates to losses of $2.5 trillion and is comparably higher for regions with limited agricultural resources with respect to growing agricultural demand, for example, the Middle East, Africa and India. “In contrast, further trade liberalization in agricultural commodities could reduce financial damage globally by 65 percent, to 0.3 percent of global GDP,” the expert said. “Both global warming and free trade favor northern regions like Europe and the US, since producers’ gains increase as trade patterns shift northward. At the same time, southern regions like Africa or India could theoretically reduce climate-changerelated damages by half through more liberalized food markets,” coauthor Alexander Popp explained. He argued: “Irrespective of our assumptions on global trade, climate change will result in reduced crop yields in many areas. At the

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“Agriculture is very sensitive to climate change—even a small increase of global mean temperatures can have significant effects on regional crop yields, affecting both the profitability of agricultural production and the share of income spent on food,” PIK lead author-researcher Miodrag Stevanović said. same time, intensifying production or expanding cultivated land into previously untouched areas may come at a risk: it could lead to additional greenhouse-gas emissions through tropical deforestation or increased fertilizer use. This could then further enhance climatechange pressure on agriculture.” The researchers combined 19 different climate projections with simulations of crop growth to assess economic impacts of climate change in the agricultural sector. While the magnitude of damage varies with different assumptions on crop-productivity response to climate change, CO2 plant fertilization affect socioeconomic projection. The PIK study highlighted the important role of trade as a key measure to partly reduce climate-change impacts. If food prices increase due to climate-change impacts, households will not only have to spend more on their food consumption, but could also face risks of insufficient access to food and malnutrition. “The best way to avoid these risks is to limit climate change. However, for impacts that cannot be avoided, an open and diversified trade system can be an important adaptation option. It can account for changes in global patterns of agricultural productivity and, thus, allow for reducing production costs and enhancing food security,” said Hermann Lotze-Campen, chairman of PIK’s research domain Climate Impacts and Vulnerabilities. “As climate change will have an amplifying effect on the gap between developed and developing countries, reductions in trade barriers will have to be accompanied by measures for poverty reduction and social safety nets,” Lotze-Campen concluded. To reach the writer, e-mail cecilio.arillo@ gmail.com.

Edgardo J. Angara

s the now unquestioned leader of the most powerful country and the richest economy in the world, how does President Trump see America’s role in global affairs? US allies in the East and West are all wondering. A recent European Council on Foreign Relations policy memo provides an interesting analysis. It states that there are three major pillars to Trump’s foreign-policy thinking. The first is that America is getting the short end of its deals with allies—such as with the North Atlantic Treaty Organization (Nato), where the US shoulders as much as 80 percent of the cost of US deployment throughout the European theater. The second is that the US’s approach

to free trade has impoverished many American workers and, hence, weakened the US. The third is that with Trump’s apparent fascination—even admiration—of authoritarian leaders such as Vladimir Putin, better relations with these leaders may be fostered and preferred over relations with allies. Those insights are capsulized in Trump’s July campaign speech: “Americanism, not globalism, will be our credo”—pointing to an “America

First” policy, and to the rest of the world, a downsizing of the US’s major role on the global stage. In a recent New York Times oped, Wolfgang Ischinger, chairman of the Munich Security Conference, wrote that, while Europe must call for stronger transatlantic relations, it must hedge against “a possible shift in American grand strategy”—in part, by investing more in civilian and military capabilities and starting to pool and share defense assets. Lindsey Ford, advisor to senior Defense Department officials, forewarns in a recent interview with Foreign Policy magazine, US allies in East and Southeast Asia may have to turn to themselves and each other for regional stability and security. Such assessment is more benign than the reality on the ground. Virtually all of the Asean countries are peeling away and veering toward China. In the West, eastern European countries once under the Soviet Union, such as the Ukraine, the Baltic

₧600 million down the drain Ernesto M. Hilario

ABOUT TOWN

he Supreme Court may not be aware of it, but the temporary restraining order (TRO) issued in August by its Second Division against contraceptive drugs and devices could render useless up to P600 million worth of these drugs and devices already purchased by the Department of Health. This was pointed out by Romeo Dongeto, executive director of the Philippine Legislators’ Committee on Population and Development (PLCPD), during last Saturday’s Forum@Annabel’s. The PLCPD is among the group of non-governmental organizations and individuals who petitioned the High Tribunal to lift its TRO. Dongeto emphasized that without access to contraceptives, the unplanned pregnancy rate of nearly 40 percent will further increase, along with the rates of teenage pregnancy and maternal death arising from childbirth complications. Another resource person, Elizabeth Angsioco, chairman of the Democratic Socialist Women of the Philippines, said her group also wants the TRO lifted as it violates women’s reproductive health and rights enshrined in various local laws and international treaties. Both speakers agreed that depriving women access to contraceptives would exacerbate intergenerational poverty. They also rapped the court for disregarding the “equal protection of the mother and the unborn”

clause enshrined in the 1987 Philippine Constitution.

Building spree requires reforms

How should the Duterte administration proceed with its recently announced comprehensive infrastructure-development program costing P8 trillion under what it calls the “build, build, build” framework? If we’re to heed the suggestion of the Economist Intelligence Unit (EIU), with due diligence and caution. According to the think tank, the Duterte administration cannot simply “build, build, build” infrastructure without undertaking reforms that would enable both the national and local governments to spend funds more efficiently. “Despite meaning well, the government will need to undertake other administrative reforms if it is to find success in ramping up its efforts,” the group said. While conceding that the government needs to fill a huge infrastructure gap, the EIU said the challenge lies more in “reforming flaws in disbursing agencies” that

haunted the previous government’s similar program. Local governments, it said, tend to have “weak procurement capacity and arduous permitting procedures.” How about the national government? The previous administration early on said it would launch no less than 10 big-ticket infrastructure projects under the Public-Private Partnership (PPP) Program between 2010 and 2016 to spur economic growth. That pledge yielded just one completed project in six years: the 4-kilometer Daang Hari road linking Las Piñas with Cavite. What happened to the nine others? They did not take off at all because of government underspending and a complicated public bidding process that allowed losing bidders to seek a temporary restraining order from the courts to suspend the award of projects to the winner, for one reason or another. The situation will improve under the Duterte administration, Budget Secretary Benjamin E. Diokno assures the public, as he is aware of the underspending problem and that reforms have been started, particularly in project monitoring, to that budget allotments would be spent for projects that benefit the people. The infrastructure-development program of the Duterte administration is an ambitious one, with road, rail, port and even “green” cities components that will no doubt spur economic growth and social progress if properly implemented.

Homeless three years after Yolanda

President Duterte was really angry as he unleashed yet another

The diplomatic storm in the South China Sea/West Philippine Sea By Dr. David Jay Green

vents in the diplomatic world surrounding the South China Sea/West Philippine Sea have unfolded with breathtaking speed since the election of President Duterte. Most important, he has moved to distance the Philippines from the United States and sought a closer relationship with China. The two Asian neighbors have long been at odds over the South China Sea/West Philippine Sea. Along with several other countries, China and the Philippines have squabbled over ownership of the small islands and reefs and over the fishery and energy resources. These disputes intensified over the past decade and the risks to the region have been rising. I’m not going to pretend that I understand all of Duterte’s concerns, and any new government needs time to formulate new positions. But one element is clear: there are unresolved tensions stemming from the history of the Philippines forcibly taken and held as a colony of the United States. In

common with other ex-colonial powers, the United States shies away from frank acknowledgements of what past actions look like viewed under present values. Across the world, colonial experiences—the economic and political institutions developed under colonialism—stunt growth and development. This should not be a surprise to people in the United States; we are still dogged by the institutions of slavery—institutions that formally ended well more than a century ago. Duterte’s instincts over his country’s long-term interests are well founded. East Asian economies are very interdependent and vulnerable to shocks that could come from any interruption to trade or investment flows. Real conflict in the South China Sea/West Philippine Sea could wreak havoc across East Asia. This is true even for China. Although its huge size suggests that it could survive trade interruptions better than its smaller neighbors, this is wrong. China has come to rely upon market-based institutions and has progressively opened

IN this October 20 file photo, Chinese President Xi Jinping (right) shows the way to President Duterte during a welcome ceremony outside the Great Hall of the People in Beijing, China. Duterte has adopted a more cooperative position toward China than his predecessor. AP

its border to capital flows. Conflict in the South China Sea/West Philippine Sea could mean for China what the 1997-1998 Asian financial crisis meant for Southeast Asian nations— years of lost development. Cooperation between China and the Philippines in the South China Sea/West Philippine Sea is definitely preferable to conflict, but saying so

doesn’t make it so. History is littered with unsuccessful attempts to defuse conflict. What is needed is to encourage countries to see their neighbors as development partners, not just as competitors. Southeast Asian nations have extensive experience in this through their participation in regional initiatives that expand cross-border opportunities for investment and trade.

China, along with its mainland Southeast Asian neighbors, participates in the Greater Mekong Subregion (GMS) initiative. Beginning in the early 1990s, the GMS helped mobilize more than $16 billion in investments, building the roads and highways that supported explosive growth in trade. Similarly, the Philippines is a member of the Brunei-Indonesia-MalaysiaPhilippines-East Asean Growth Area (BIMP-Eaga), founded by one of President Duterte’s predecessors, Fidel V. Ramos, in the early 1990s. BIMP-Eaga is not the success seen in the GMS, but that is partly due to the lack of proper infrastructure investment. The experience of the Philippines in the last decade with its Nautical Highway System (a roll-on, roll-off ferry system allowing ships to move truck cargoes without costly loading and unloading) suggests that we can do better. Initiatives like the GMS and BIMPEaga are not magic solutions for the real disputes that exist. But these efforts can give room and reason for

States, Georgia, etc., and now under the European Union, are fearing for their independent survival. In the bloody civil war in Syria— where the worst act of inhumanity of man against man is committed daily—Russia’s Putin and Syria’s Bashar al-Assad resumed their deadly bombings. And that was reportedly a few hours after Trump and Putin talked over the phone. Trump is turning the present world order on its head. He has rattled allies as he tries to discard historic security pacts, such as Nato and South Korea’s. Indeed, we cannot tell yet at this time what Trump’s foreign policy really is. It’s still largely a work in progress, without any centralizing theme or ideology. In the meantime, consequential activities and movements on the ground are taking place in Syria and elsewhere. The world’s order is in turmoil. And there is a heavy fog of uncertainty hanging over the planet.

E-mail: angara.ed@gmail.com.

stream of expletives after being told that many of the survivors of super Supertyphoon Yolanda in 2013 have yet to be given adequate shelter. “I am not satisfied. As a matter of fact, it’s bullshit,” he blurted out during the recent commemoration of the third anniversary of Yolanda in Tacloban City. “I’ll be back here in December. I want all of them transferred to bunk houses by December.” That’s a very clear marching order to Vice President and Housing and Urban Development Coordinating Council (HUDCC) Chairman Leni Robredo and the Presidential Assistant for the Visayas Michael Diño, but will they be able to build enough shelters in a month’s time? Robredo estimates that around 205,000 houses need to be built for the Yolanda survivors, who now live in makeshift houses without power and water. After three years and the flood of donations from foreign sources, the government has only built some 25,000 bunkhouses. It would, therefore, be really impossible for Robredo to rush the construction of 180,000 housing units, or even just 50,000, by December. While she has vowed to fast-track the building of permanent shelters in affected areas, we seriously doubt that Robredo and the HUDCC can meet Duterte’s deadline. One thing bothers us. We know that after Yolanda struck, the government received billions of pesos in humanitarian aid from both foreign and local sources to help victims recover from the tragedy. So why is the rehabilitation and recovery effort taking a very long time? Where did the money go?

E-mail: ernhil@yahoo.com.

government leaders to look past frictions and to search for solutions. How can the United States government help? The Fil-Am experience, reflecting the lives of millions of people over decades and including the legacy of colonialism, is never going to be neatly summarized. It demands recurrent review. Yes, it is likely to be contentious. But it can be part of a process providing both countries better tools to work together. This is particularly important for the Philippines: seeking cooperation instead of conflict in the South China Sea/West Philippine Sea is an extraordinarily difficult endeavor and the new government deserves support from an old friend. Dr. David Jay Green is a professor of Economics, Hult International Business School, San Francisco. He was formerly director for Regional Cooperation in Southeast Asia for the Asian Development Bank in Manila and has recently authored The Third Option for the South China Sea: The Political Economy of International Conflict and Cooperation, published by Palgrave Macmillan (October 2016).

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Tuesday, November 22, 2016

Owwa acts on Duterte’s vow to protect children

By Manuel T. Cayon | Mindanao Bureau Chief @awimailbox

AVAO CITY—An interagency meeting to heighten protection of children of migrant workers will be held here this week, the Overseas Workers Welfare Administration (Owwa) here said. Eduardo E. Bellido, director of the regional Owwa officehere, said the meeting with representatives of the departments of Social Welfare and Development and Justice, the Philippine Council for the Welfare of Children and child-rights advocate organizations will be held this week. The meeting was called in the wake of President Duterte’s warning that child protection would be his next focus when he arrives this week from Lima, Peru, after attending the Asia-Pacific Economic Cooperation summit. Duterte said recent reports indicate an increase in cases of children of migrant workers suffering grave

physical and sexual abuse from relatives to whom the children were left behind for safekeeping. An increasing trend also was the abuses on women, Duterte said, in his departure statement last week. The son of a migrant worker, identified only as “Erlinda,” was allegedly beaten to death by a cousin and her cousin’s husband over their anger on the child’s repeated urination in his pants. The boy was rushed on November 14 to a hospital, but was declared dead on arrival. He had bruises all over the body, particularly the head and the groin. Bellido said it was the worst case so far and the incident has

raised public anger against the suspects, who have been arrested and had confessed. He said the meeting would draft policies to preempt a similar incident. He added that Labor Secretary Silvestre H. Bello III ordered the holding of the meeting. Among the issues that the meeting will tackle is the lack of a policy on how to handle the cases of parents, including the single parents, who have young children but have to work abroad to support their children. He said the discussion would delve into the situation of the children left to the care of relatives. The Davao City-based Mindanao Migrant Center for Empowering Action Inc. (MMCEAI) warned that the fate of children remained explosive on sheer number of them left behind. “There are many children, like the son of Erlinda, who are silenced

and incapable of protecting and fighting against maltreatment and the other struggles that they are in. They are not just simply disadvantaged due to the absence of their parents, they are also often susceptible to abuse, discomfort and deprivation of their basic needs,” the MMCEAI said in a statement. In Davao City alone with thousands of migrant workers, the MMCEAI said “thousands more of children are left in the care of their guardians, some are lucky, but some are in misery.” “MMCEAI encourages the concerned government offices and agencies to keep track and monitor children of OFWs [overseas Filipino workers] left with their guardians. This is also a call for the stakeholders, in particular the guardians, the community leaders and families to be more responsible for vulnerable family members of migrant workers,” it said.

They are not just simply disadvantaged due to the absence of their parents, they are also often susceptible to abuse, discomfort and deprivation of their basic needs.”—MMCEAI

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Golden age of infra. . . their proposals. “We can propose projects; we can’t wait for agencies to propose. We will have to broaden [our reach] rather than wait for agencies,” Neda Deputy Director General Rolando G. Tungpalan told the BusinessMirror on Monday. With this, the Neda, Infrastructure Committee and the Investment Coordination Committee will all propose infrastructure projects needed to meet the goals. The projects will be contained in the Public Investment Program (PIP) that is currently being crafted by the Neda. The PIP is t he cou nt r y ’s med iu m- ter m investment blueprint. Tungpalan said the PIP, which will be released sometime next year, will contain at least a short-list of projects that will be undertaken between 2017 and 2022. While the 2017 infrastructure budget is only around P850 billion and is short of the P1.33 trillion needed to meet the goal, Tungpalan said he expects the amount to ramp up in the succeeding years. Among the projects that will be included in the PIP are the Mindanao Railway, which is one of the major infrastructure projects of the Duterte government, and the island bridges connecting various parts of the country, as well as watersupply projects. The PIP will also include projects contained in the Three-Year Rolling Infrastructure Program (TRIP), which is estimated to cost around P2.2 trillion for three years.

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In May documents obtained by the BusinessMirror showed that infrastructure spending under the TRIP could reach P1.15 trillion in 2017. The largest amount of projects submitted came from the Department of Public Works and Highways, which proposed P449.75 billion worth of projects for 2017. Other government agencies that submitted the most projects were the Department of Education, with P150.57 billion; and governmentowned and -controlled corporations, with P113.03 billion. In 2009, the Asian Development Bank said the Philippines will need around $5.8 billion every year, or $87 billion in the next 15 years or until 2024, for various infrastructure projects to promote inclusive economic growth and development. The ADB said this is needed to address the serious lack of infrastructure in the Philippines in the next decade-and-a-half. The Manila-based multilateral development bank even estimates that Asia will need over $3 trillion in investments in the next decade to bring infrastructure to an “acceptable” level. It estimated that $5.8 billion every year will be needed to cover the expansion and improvement of the country’s nautical highway, set up solid waste-management facilities, construct roads, finance power projects and other similar undertakings.