“Just speaking personally for myself, I find these comments deeply troubling.”—Defense Secretary Ash Carter, hinting at US impatience with the Philippine government over inflammatory comments by President Duterte. “Like all alliances, it depends on the continuation of a sense of shared interests.” AP
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“Hitler massacred 3 million Jews...there’s 3 million drug addicts. There are. I’d be happy to slaughter them.”—President Duterte, who raised the rhetoric over his bloody anticrime war to a new level. Mr. Duterte issued his latest threat against drug dealers and users early Friday on returning to his hometown in southern Davao City after visiting Vietnam, where he discussed his antidrug campaign with Vietnamese leaders. AP
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Monday, October 3, 2016 Vol. 11 No. 359
‘Ban on land conversion to worsen housing mess’ By Cai U. Ordinario
T
@cuo_bm
he implementation of a twoyear ban on land conversion would keep millions of poor families homeless and delay the government’s infrastructure projects, according to the National Economic and Development Authority (Neda).
PERSPECTIVE
The estimated housing backlog in the Philippines
Socioeconomic Planning Secretary and Neda Director General Ernesto M. Pernia said the Neda has circulated a two-page position See “Land conversion,” A2
PHL yet to unearth full extent of narcopolitics
Gabby Lopez: Urban planner, educator, man for others
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‘BULLISH BEST’
Sports BusinessMirror
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HASKA, Minnesota—With every pump of his fist and full-throated celebratory yell, Patrick Reed gave the US team a big boost of energy. With every sharp shot he hit, Reed almost singlehandedly carried the Americans to a near-comfortable lead at the close of play on Saturday in the Ryder Cup. Nobody was more in tune with the raucous galleries at Hazeltine National Golf Club than Reed, who appeared to be playing with a constant flow of adrenaline. “I just feed off it for some reason, and for some reason the ball doesn’t seem to go that much farther than most times,” said Reed, who teamed again with Jordan Spieth to beat Europe’s power couple, Justin Rose and Henrik Stenson, 2 and 1 in afternoon fourball competition. Reed tallied six birdies and an eagle in the match. “He just played incredible golf. He was inspired,” Rose said. “He kind of punished us every time he had a wedge in his hands.” The highlight of the victory came one-third of the way through, when Reed dropped his approach shot onto the sixth green just right. The ball rolled back perfectly, plopping into the cup for an eagle and the second of four straight holes won by the US pair. Reed erupted in celebration, exchanging hard hand slaps and fist bumps with his partner and their caddies and pointing a double-arm pump as he yelled, “Come on! Come on!” at the crowd behind the ropes. “I’m in the bunker, and I look at Jordan and I say, ‘What do you want me to do here?” Reed said. “He goes, ‘You can hit it over the bunkers.’ I hit it to a perfect yardage and knocked it in and just went nuts.” Captain Davis Love III said he believes the 26-yearold Reed was “built” for Ryder Cup competition. This is his second foray into the biennial event, after posting a 3-0-1 record in 2014 in Scotland. “He’s got that attitude,” said Love, who picked Reed for the leadoff singles match on Sunday, when he will square off against Europe’s Rory McIlroy. In the morning foursomes, the Reed-Spieth tandem built a 4-up lead with seven holes left, before a furious comeback by the Spaniard duo of Sergio Garcia and Rafa Cabrera Bello halved that match. Love predicted during the lunchtime break that Reed would return “mad” after the frustrating finish. As the American leaders weighed in with their suggested lineups for the afternoon, including a plan from Love’s son, vice captain Tiger Woods nudged the boss toward a final decision that kept Reed and Spieth together for a fourth match. “I finally just said to Tiger, ‘Are we playing them or are we sitting them?’” Love said after the US team took a 9½-to-6½ lead into the final day of singles play. “He said, ‘No, you have to send them back out there. They are playing so well.” Reed acknowledged the frustration of letting a half-point slip away in the morning, but he was levelheaded enough to realize how well he’d been playing. “It’s not like we were making bogeys to lose holes. Not like we were giving holes away,” said Reed, ranked eighth in the world. Reed and Spieth split their two matches on Friday with Rose and Stenson. In deference to his superstar partner, Reed said he found it easier to play aggressively with the confidence that Spieth could pick him up after an errant shot. Spieth called Reed “Captain America” for his performance. “He wanted to play five matches at the beginning of the week,” Spieth said. “Tiger told him he might be sitting one and he said, ‘You are not sitting me on any matches.’” The 6-foot, 200-pound Texan lists college football as his first special interest in his bio in the Professional Golfers’ Association Tour media guide. Even in his rugby-style, horizontal-striped blue-and-red polo the Americans donned on Sunday, Reed often looked a little bit like a super fan in the crowd at a football game or even a quarterback coming back to the sideline after a clutch touchdown pass. “I knew we had to come in today and fire on all cylinders,” Reed said. “We killed it yesterday afternoon against those guys, and we didn’t even have a chance. We knew we had to make birdies and once we started to make a couple, the floodgates were open.” AP tHE united states’s patrick reed celebrates his putt on the seventh hole during a four-ball match at the ryder cup golf. AP
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| Monday, oCtober 3, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana
tHE united states’s dustin Johnson reacts to his birdie on the 12th hole during a four-ball match at the ryder cup. AP
‘BULLISH BEST’ AMErIcAns tAkE 3-poInt lEAd At rydEr cup By Doug Ferguson
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The Associated Press
HASKA, Minnesota—The Americans are making all the right moves in this Ryder Cup. Even Tiger Woods. Europe was riding the momentum as it inched within one point on Saturday at Hazeltine. US Captain Davis Love III heard conflicting ideas on the radio and by text message from his assistant captains, all of them weighing in with the best lineup for the final session of team matches. The question was Patrick Reed and Jordan Spieth, the only Americans who had yet to sit out. “I finally just said to Tiger, ‘Are we playing them or are we sitting them?’ He said, ‘No, you have to send them back out there,’” Love said. Reed delivered another moment sure to burnish his growing Ryder Cup reputation. He was at his bullish best in the anchor match with Jordan Spieth, taking over with great shots and chest-thumping cheers that set the tone for his team and put the Americans on the verge— again—of winning back the cup. “He’s Captain America for us,” Spieth said after
their 2-and-1 victory over Henrik Stenson and Justin Rose, securing a 9 1/2-to-6 1/2 lead. The Americans need only five points from 12 singles matches to win the Ryder Cup for the first time since 2008, and only the third time in the last two decades. Their biggest challenge now might be history. They led 10-6 four years ago at Medinah when Europe put together a staggering display of putting and produced the largest comeback by a visiting team in Ryder Cup history. The Europeans refer to that as the “Miracle at Medinah,” and they might need another one on Sunday. “We’re one closer than we were at Medinah,” Rose said.
“It’s going to be a monumental challenge tomorrow. We’re going to put out our lineup and we’re going to look at each other man-to-man tomorrow. It’s going to be eyeball-toeyeball on the first tee, no partners, no friends out there on the golf course. Just go out and try to put a point on the board. That’s everybody’s mission.” The raucous and at times rude crowd at Hazeltine won’t have to wait long to get fired up. Leading off the singles is Reed against Rory McIlroy, who, along with Belgian rookie Thomas Pieters, has done his part to keep Europe close. McIlroy and Pieters were undefeated as a tandem, combining to go 11-under par in 17 holes of a 3-and-1 victory over Dustin Johnson and Brooks Koepka, the lone European point in fourballs. McIlroy shouted “C’mon!” with every putt, even staring at the crowd and daring them to hurl insults, boo or throw anything else his way. “It’s a tough environment for us to come and play in. We expect that,” McIlroy said. “It’s same for the US guys when they come to play in Europe. You have to keep your concentration out there. It’s been a long day and sometimes emotions run high.... The more they shouted, the better we played. “I hope they shout at us all day tomorrow.” European Captain Darren Clarke described the opening singles match as “mouthwatering” for the crowd. “I know for a fact that he can’t wait to get on that tee tomorrow morning,” Clarke said. Most painful for Clarke was watching his best friend and captain’s pick, Lee Westwood, miss crucial short putts on the back nine to cost Europe a valuable point. Westwood and Masters champion Danny Willett never trailed until they both made bogey on the par-3 17th. Westwood missed a 5-foot par putt to stay all square, and then with a chance to at least earn a halve, he badly missed a 2-foot birdie on the final hole to give J.B. Holmes and Ryan Moore a 1-up victory.
Phil Mickelson, in his 11th straight Ryder Cup, showed he can deliver on the golf course as well as he can run a task force meeting. Lefty produced timely wedges and key putts down the stretch as he and Matt Kuchar combined for nine birdies in a 2-and-1 victory over Sergio Garcia and Martin Kaymer. The final hour turned solid red on the scoreboard, right when it looked like a putt or two in Europe’s favor could have made it a one-point deficit instead of three. Now, Europe needs another big comeback. Rose and Stenson had a front-row seat to an exhibition by Reed, who whipped the crowd into even more of a frenzy than it already showed. One down after four holes, Reed played the next four holes in five under, including a wedge he holed from the sixth fairway for eagle, winning them all for a 3-up lead. Their victory was even more important considering they let a sure point get away in foursomes on Saturday morning, leading 4-up with six holes to play until Garcia and Rafa Cabrera Bello rallied to earn a halve. Europe only trailed by one point
going into the afternoon. Love said there was no need to bring up Medinah in the team room on Saturday night. This whole process has been about looking forward and starting over. Europe can only hope recent history repeats itself. “We’re going to have to work hard and play very, very well tomorrow,” Clarke said. “It’s been done before from a worse position. We have a big task ahead of us but the guys are capable of doing it.”
McIlroy thrives on noise, but score not enough
President Duterte visits on September 3 the site of an explosion that killed more than a dozen people and wounded several others at a night market in Davao City, his hometown.
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HASKA, Minnesota—To all the hecklers who shouted at him for 33 holes on Saturday at the Ryder Cup, Rory McIlroy has just one thing to say. Bring it on. “The more they shouted, the better we played,” McIlroy said. “I hope they shout at us all day tomorrow.” The 50,000 or so fans who jammed into Hazeltine National Golf Club sure did so on Saturday, heckling McIlroy at every opportunity as he and playing partner Thomas Pieters came up big again for the European team. They won both their matches, and they did it with some flair before huge crowds that cheered them only when they made mistakes. If the noise is really welcome, though, the European team will need all it can get on Sunday, when it faces a daunting task of coming back from a three-point deficit to keep the cup they have won the last three times out. “Obviously the heckling is there, but as Rory says, it just pumps us up,” Pieters said. A day that began with much promise for the European team ended on a down note after Lee Westwood missed a short putt on the 18th hole that would have given him and Danny Willett a half point in their match against J.B. Holmes and Ryan Moore. That left the European team down 9 1/2-6 1/2, needing a comeback in singles play along the lines of the 2012 team outside Chicago to retain the cup on Sunday. The deficit was no fault of McIlroy and Pieters, their top pairing on both of the day’s sessions. McIlroy, who bowed twice to the crowd on Friday when he and Pieters closed out their match with an eagle putt on No. 16, teamed with Pieters to take down Phil Mickelson and Rickie Fowler in the morning and Dustin Johnson and Brooks Koepka in the afternoon. They did it while making some noise of their own, with McIlroy roaring loudly and pumping his fist every time he or Pieters made a clutch birdie. “I feel like I need to take a couple Advil,” McIlroy said. “I have a sore head listening to all those the last day, day and a half. I feel like I’ve been able to focus pretty well and I’ve played some of my best golf and the last three matches we’ve played, it’s been three points on the board. I’d give myself a pretty high mark for that.” For the most part the fans were good spirited in their heckling, yelling out “Ro-ry! Ro-ry” in a mocking way and telling him after he made a bogey on No. 16 that “Six is good!” One got a little carried away by taunting McIlroy with a sexual reference while he was walking off the seventh green, causing McIlroy to seek out a marshal to try and have him removed. “These things happen,” McIlroy said. “It’s golf at the end of the day. You try to keep the utmost respect for who you’re playing and for who you’re supporting. You know, that particular guy, this is obviously in the very, very small minority, just took it a bit too far.” Other Europeans weren’t as happy with the crowd, with Sergio Garcia saying 15 percent of the fans were saying things they shouldn’t and that his American girlfriend was embarrassed. Captain Darren Clarke also said a few went overboard, though it was pretty much expected. “It’s just The Ryder Cup and people are exuberant and enjoying themselves,” Clarke said. “It’s just part of the whole Ryder Cup thing. I’m sure that everybody will do their best to deal with it and people just seemed to enjoy themselves a little bit too much at times.” McIlroy and Pieters, though, seemed to thrive on the noise, making six birdies in 16 holes in alternate shot in the morning to beat Fowler and Mickelson. They made nine birdies and an eagle in better ball, including a putt by Pieters on the 17th hole that thwarted a comeback by Johnson and Koepka. Pieters, a Ryder Cup rookie, and McIlroy won all three of their points over two days, and McIlroy suggested a new Ryder Cup pairing had emerged for the matches two years from now in Paris. “I think you’ll see this pairing in Paris,” he said. While McIlroy and Pieters were in top form, only one other European pairing won a full point in Saturday’s matches. Justin Rose and Chris Wood beat Jimmy Walker and Zach Johnson in the morning, but Wood was not in the afternoon lineup and Rose and Henrik Stenson lost their match to Jordan Spieth and Patrick Reed. Europe will need to win 7 1/2 of the 12 points available in singles to retain the cup. AP
Robinson Ninal/Malacañang Palace Presidential Communications Operations Office Presidential Photographers Division via AP
By Rene Acosta
@reneacostaBM
& Manuel T. Cayon
Mindanao Bureau Chief @awimailbox
EuropE’s rory McIlroy reacts after his birdie on the ninth hole. AP
sports
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Achieving better quality of life through PPPs PPP Lead Alberto C. Agra
I
Part One
N 1990, while Rodrigo R. Duterte was fending off a case filed against him at the Sandiganbayan, the United States was
PESO exchange rates n US 48.2570
still in shock at its first taste of narcoterrorism: the bombing of a Drug Enforcement Agency (DEA) building in Florida. “The bombing marked the first time a DEA facility has been attacked since the federal government stepped up its war on drugs,” a March 19, 1990, Los Angeles Times story said. Twenty-six years later, Mr.
Duterte, former mayor of Davao City and current President, has seen the gauntlet thrown down at his home turf. But while there were no casualties in the 1990 bombing of the DEA administrative office in Fort Myers, Florida, there were in the July attack at a Davao City market. Fourteen people, including a
Part One
W
hat is the true purpose of publicprivate partnerships (PPPs)? What is the meaning of better quality of life? How can PPPs help achieve this state? How do we determine if better quality of life is, in fact, attained? What are the possible metrics? Continued on A14
MACAU GAMING REVENUE GROWTH BEATS ESTIMATES
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Pumped-up Reed is ‘Captain America’ of United States team
“I think it would be a serious mistake in a democratic country, like the Philippines, to underestimate the power of the public’s affinity for the US That’s people power.”—Assistant Secretary of State Daniel Russel. Russel did not draw a direct comparison, but past Philippine presidents have been toppled by popular protests dubbed “people power”, including former dictator Ferdinand E. Marcos, who was ousted in 1986. AP
Acau’s gaming revenue swelled more than estimated in September, with new casino projects from the local units of Las Vegas Sands Corp. and Wynn Resorts Ltd. helping draw recreational gamblers. Gross gaming revenue rose 7.4 percent to 18.4 billion patacas ($2.3 billion), according to Macau’s Gaming Inspection and Coordination Bureau. That followed a 1.1-percent increase in August, after a 26-month slump, and compares with the median estimate for a 4-percent advance in a Bloomberg survey of nine analysts. Macau, the only place in China where casinos are legal, is in the process of transforming itself into a tourist destination after Chinese President Xi Jinping ordered the city to diversify its economy from gambling in late-2014. In response, casino operators have been building resorts with more nongambling features in Macau’s Cotai Strip. These include Wynn Palace, which opened in August; and Sands’s Parisian, which debuted last month. “In September we had the benefit of recent openings, such as Wynn Palace and the Parisian,” Aaron Fischer, an analyst at CLSA
$2.3B
The gross gaming revenue of Macau in September Ltd., said before the data was released. “There’s been a shortage of hotel rooms, and the new properties are adding to capacity.”
Li visit
The casino industry is bracing for a possible visit in October by Premier Li Keqiang, with analysts warning that the nascent recovery may be threatened by his appearance in the former Portuguese colony to attend a conference of ministers from China and Portuguese-speaking countries. A visit by Li “could potentially result” in gaming revenue returning to negative growth in October, said Grant Govertsen, a Macau-based analyst at Union Gaming. The impact is expected to be felt “exclusively at the highend of the market,” he said. Accumulated gross revenue from January to September fell 7.5 percent from a year ago period, Macau’s Gaming Inspection Bureau said. Bloomberg News
Continued on A2
n japan 0.4777 n UK 62.5990 n HK 6.2221 n CHINA 7.2355 n singapore 35.3764 n australia 36.8346 n EU 54.1685 n SAUDI arabia 12.8531
Source: BSP (30 September 2016 )
BMReports BusinessMirror
A2 Monday, October 3, 2016
www.businessmirror.com.ph
PHL yet to unearth full extent of narcopolitics Continued from A1
phar mac y student, d ied and wounded at least 70 others. One of them was a pregnant mother who succumbed to the injuries she suffered and died in the hospital.
Hornet’s nest
PHILIPPINE National Police (PNP) chief Director General Ronald de la Rosa described the bombing at Mr. Duterte’s own turf as a classic case of “narcoterrorism,” emphasizing the multifaceted problem of narcotics in the country. If the bombing was indeed committed by a local terrorist group or any of its allied groups, the terrorists have been paid with drugs money to carry out the attack, de la Rosa said. Police investigators noted that the principal suspect behind the blast was among people named by Mr. Duterte in his list of those involved in the illegal-drugs
Angara. . .
Continued from A16
of grievances, and whose only duty is to pay without question.” In filing Senate Bill 308, Angara grouped the taxpayer’s rights into three—basic rights, rights in civil cases, rights in criminal cases. He noted that the taxpayer’s basic rights include the right “to available information and prompt and accurate responses to questions and requests for tax assistance.” “A taxpayer must also have the right to be informed of any pending assessment or investigation and obtain clear statements and nontechnical explanations,” Angara said in the bill, adding that other rights include “the speedy and impartial disposition of the case” wherever it may be filed and in a manner “devoid of any publicity” while the “proceeding is pending.” The senator said this is reinforced by Section 11, subparagraph F of the bill, which says the taxpayer’s tax information must be kept confidential unless otherwise specified by law. At the same time, Angara also listed “the right to fair and consistent application of the tax laws; the
Journalism (PCIJ), a report it obtained from the PNP said that, from July 1 to September 8, a total of 1,445 persons had been killed in police operations; 15,762 had been arrested (6,948 alleged drug users and 8,814 alleged drug pushers); 704,074 had “surrendered” (652,309 alleged drug users and 51,765 alleged drug pushers); and 859,299 houses had been visited under Project Tokhang. The latter was derived from a combination of two Visayan word that means “to k noc k ” (toktok) a nd “to appeal” (hangyo).
BACK in July, or while barely
warming his seat, Mr. Duterte has warned that unless drastic measures are taken against the illegaldrugs problem, nothing can stop the country from spinning into a narcotics state (“narco-state”), or a “country of drug addicts.” Mr. Duterte, known for being brusque, has been consistent in that view. While running for the most powerful position in the government, the former mayor of Davao City has said the Philippines will follow the fate of Colombia if illegal drugs would not be eradicated. Hence, Mr. Duterte began the country’s war on drugs. At a Senate hear ing three months later, de la Rosa said he estimated the casualties of the war on dr ugs bet ween 1,100 a nd 1 , 5 0 0, e x c lu d i n g t ho s e k i l led by unident if ied g unmen or vigilantes. According to a Philippine Center for Investigative
right to have assistance of counsel; the right to expeditious tax audits; and the right to request for installment payment of liabilities under any compromise settlement.” He said the proposed measure also confers upon the taxpayer the right to be refunded for excess payments or have penalties canceled when there are errors in assessment. In civil cases, among the rights of the taxpayer, is the opportunity to have the case amicably settled if warranted. A ccord i ng to A nga ra, t he taxpayer will be informed of impending collection actions, which require sale or seizure of property or freezing of assets, except jeopardy assessments. “ T he right to seek rev iew, through formal or informal proceedings, of any adverse decisions relating to determinations in the audit or collection processes and the right to seek a reasonable administrative stay enforcement action,” Section 12, subparagraph D of the bill states. Moreover, other rights during civil cases are the “right to request cancellation, release, or modification of liens erroneously filed by the Bureau of Internal Revenue [BIR] and the Bureau of Customs [BOC]” and the right to waiver of interest aris-
ing from an error or delay caused by a revenue employee. The Angara bill also devotes one section enumerating the “taxpayers’ rights in criminal tax cases”, which begins with the right to be knowledgeably, intelligently and timely informed of the charges. It further provides that the taxpayer shall have the right to seek the assistance of competent and willing counsel. Such right extends “to be represented or advised by counsel or other qualified representatives at any time in administrative interactions with the BIR and the BOC.” In addition, the taxpayer will have the right to be given ample opportunity to present proof and prepare the defense, including the right to present witnesses in his favor. Angara warned that any move to deny the taxpayer documents and information is prohibited as the bill guarantees “the right to be served with all the necessary documents” on time. “A taxpayer can invoke the right to procedural safeguards with respect to recording of interviews during tax determination or collection processes conducted by the BIR and the BOC,” the senator added. To enforce these rights, Angara proposed the creation of an independent Office of the National
Taxpayers Advocate. The primordial duty of the National Taxpayers Advocate is to promote and protect the rights of the Filipino taxpayers, he explained.
supply chain. “Until it is discounted that it is the Abu Sayyaf, and they did it to ease the tension of the ongoing military and police operations against them, there is still the angle of narcoterrorism,” de la Rosa said. “This is not totally being discounted.” “If these Abu Sayyaf kidnaps people, they can also bomb people for money. They only go for money,” he added. “So if I am a rich drug lord, I can pay the Abu Sayyaf, I can pay them to bomb. After all, they are terrorists.” Still, like the DEA officers in Florida nearly three decades ago, de la Rosa and Mr. Duterte should have seen it coming, political analysts said. “You can’t poke a stick on a hornet’s nest and expect butterflies to come out,” one who requested anonymity for fear of reprisal told the BusinessMirror.
Project tokhang
Land conversion. . .
paper opposing its implementation to members of the President’s economic team. Pernia said there is already a draft executive order to create the two-year ban. However, this policy is being held in abeyance awaiting the opinion of the economic team.
Continued from A1
“The economic team is against it. It’s not a good policy because it’s a blanket policy and there are many lands not suited for agriculture, so why ban these lands from being converted?” he said. Pernia said Finance Secretary Carlos G. Dominguez III has already read the position paper and has
expressed full support for the Neda’s position. He added that Budget Secretary Benjamin E. Diokno, who has yet to read the full position paper, also agreed with the Neda. The Neda chief said he aims to have the position paper signed by the economic team this week before they all leave for Washington, D.C., to attend the International Monetary Fund-World Bank Fall Meeting.
Narco-state
UNTIL the night-market bombing in the President’s hometown on September 2 and the rising number of casualties in the war on drugs, analysts have told the BusinessMirror the Philippines “has already breached the initial phase for a narco-state.”
Offsetting measures
Lawmakers on Sunday said their opposition to the Department of Finance’s (DOF) proposed offsetting measures to cover the foregone revenues from lowering personal income-tax (PIT) rates is “not negotiable.” Majority Leader and PDP-Laban Rep. Rodolfo C. Fariñas of Ilocos Norte has strongly backed the decision of House Speaker Pantaleon D. Alvarez to reject the DOF’s offsetting measures, which include the removal of the VAT exemptions for senior citizens, persons with disabilities (PWDs) and imposing excise taxes on petroleum. “As a majority leader, I am supporting the position of the Speaker rejecting the offsetting measures of the DOF,” Fariñas said in a text message to the BusinessMirror. Under the DOF’s bill, workers earning not over P250,000 annually will be exempted from PIT. However, the DOF bill will expand the value-added tax [VAT] base by reducing the coverage of its exemptions, including privileg “The Neda has circulated it to the departments of Finance, Trade and Industry [DTI], and Budget and Management. The purpose is to get them to sign, as well, so there will be more gravitas as far as the position is concerned,” Pernia said. “Agrarian Reform Secretary [Rafael] Mariano is influential because he appeals to agrarian reform, poor farmers, small farmers and he has a big following also,” he added. If the ban is implemented, Pernia said this will limit the ability of the government to carry out the relocation of informal-settler families (ISFs) and delay right-of-way acquisition for infrastructure projects. Pernia said there is a need to address the 5.5 million worth housing backlog. Data from the Housing and Urban Development Coordinating Council (HUDCC) stated this includes 1.4 million ISFs. HUDCC data showed of this number, around 584,425, or 28 percent, of ISFs are in Metro Manila, while 221,284 are in Region 4-A or Calabarzon. Some 117,670 ISFs are located in Region 3, or Central Luzon. “Most of this backlog, hous-
President. . . Continued from A16
The credit-rating agency S&P Global warned last week that the stability and predictability of policy-making in the Philippines “has diminished somewhat under the new presidency.”
One example of a narco-state is Afghanistan, if we go by the United Nations’s definition. “Afghanistan has already become a narco-economy in the sense that drugs are now Afghanistan’s largest employer, i ncome generator, sou rce of capital, export and foreign investment,” UN Office on Drugs and Crime (UNODC) Executive Director Antonio Maria Costa told a 2006 ministerial conference. Six years later, the UNODC has named Guinea-Bissau as Africa’s first narco-state. Analysts have said that, with drug lords lording it over inside the country’s penal system, as alleged by the drug lords themselves, the Philippines is not far from following these countries. De la Rosa noted that the reach of these drug lords is surprising. The PNP chief said the Abu Sayyaf Group (ASG) can be paid
by d r ug lords impr isoned at the National Bilibid Prison in Muntinlupa and those who are outside and still the subjects of the anti-illegal-drugs campaign. Other than the ASG, de la Rosa said those who are involved in the illegal-drugs trade can also pay other criminal groups to carry out other criminal activities against the state in order to create chaos, get back at the government and fend off the campaign against the illicit business. He said that, since the drug trade in the country is a multibillion pesos business, drug lords can buy and do anything with the money if they are not stopped. De la Rosa earlier revealed about the existence of a plot to kill him and the President for more than a billion pesos, with the plan being master minded by drug lords currently held at the national penitentiary. To be continued
es granted for senior citizens and PWDs; adjustment of excise taxes imposed on petroleum products; and restructuring the excise tax on automobiles except for buses, trucks, cargo vans, jeeps, jeepney substitutes and special purpose vehicles to cover the estimated P159 billion in revenue losses for the government. For his part, Liberal Party Rep. Edcel C. Lagman of Albay said his group, the “Legitimate 8,” would block new taxes being proposed to Congress by the DOF. “They [DOF officials] should study carefully their proposal, particularly the new taxes that affect the poor,” Lagman told the BusinessMirror. “Let’s see who will be benefited and who will be prejudiced from the reduction and the imposition of taxes. I think the poor will be prejudiced, they will not benefit from the reduction of the income tax rates because they are not paying taxes anymore now,” he added. In a statement, PDP-Laban Jerry P. Treñas of Iloilo City, said the DOF should first address leakages in its tax-collection system before Congress could even consider its proposal to remove VAT exemptions for senior citizens and impose excise taxes on petroleum products. With Alvarez’s refusal to support these two tax-reform measures
being pushed by the DOF, Treñas said that it would be best for Finance Secretary Carlos G. Dominguez III to focus on crafting “innovative” programs that would entice more Filipinos to honestly pay their taxes. “The DOF proposals will not fly without the Speaker’s support. With at least 91 percent of Filipinos supporting President Duterte, the DOF should not squander this opportunity to encourage more people to dutifully pay their taxes,” Treñas said. He said the DOF should instead “actively” lobby for the immediate passage of various proposals now pending in Congress, such as those seeking to simplify the computation of individual income taxes. “The DOF should also order the Bureau of Internal Revenue and the Bureau of Customs to strive harder to make the experience of paying taxes more convenient and comfortable,” he said. “One reason some Filipinos are not so compliant in paying their taxes is because of the hassle that they have to go through just to file their income tax documents,” Treñas added. Instead of removing the VAT exemptions for senior citizens, PWDs and imposing excise taxes on petroleum products, Alvarez said the DOF should improve their tax-collection efficiency.
ing backlog is for the poor, so this t wo-year ban is going to be antipoor, because it is going to delay our objective of providing housing to the poor,” Pernia said. Earlier, Agriculture Secretary Emmanuel F. Piñol said he will not issue any permit for the conversion of agricultural lands into residential and commercial areas. Piñol made the announcement to assure farmers that there is enough land for agricultural production, especially for rice. A survey conducted by the government in 2008 found that an average of 9,000 hectares of farmlands devoted to rice all over the country are being converted to other uses or planted with other crops every year.
in the Philippines. “[Peza is] working with the DAR closely through the DTI, to have some exceptions on that pronouncement as far as economic zones are concerned,” Peza Officer in Charge Deputy Director Justo Porifirio Yusingco said. “If we don’t have new economic zones or new areas, we will have a problem where to bring the investors we’ve been inviting,” Yusingco added. Earlier, the DAR announced that it is working on an executive order to impose a two-year ban on land conversion covering agricultural lands covered by various agrarianreform programs. A mong land areas covered include those distributed since 1972 under a decree issued during martial law and under the 1988 Comprehensive Agrarian Reform Program. As of April this year, there were 345 economic operating ecozones registered by Peza, encompassing manufacturing, information technology parks, agro-industrial, tourism and medical tourism economic zones/parks.
Exemptions
The Philippine Economic Zone Authority (Peza) said it is seeking to be exempted from the Department of Agrarian Reform’s (DAR) moratorium on land conversion for areas, which are being eyed as sites for additional economic zones. Peza warned that the moratorium on land conversion could discourage foreigners from investing It kept the country’s credit rating at investment grade, with a stable outlook, but said rating was unlikely to rise over the next two years. Last Monday the peso hit its lowest level against the dollar since September 2009. It fell further Friday, closing at 48.50 pesos per US dollar. Central bank Deputy Governor
With a report from Catherine N. Pillas
Diwa C. Guinigundo said foreign direct investment continues to grow. It stood at $4 billion for January to June this year, compared to $2.2 billion for the same period a year ago. He noted that, while Mr. Duterte became President June 30, his election victory came nearly two months earlier. AP
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ICC-Cabcom OKs ₧52.2-B projects for rural areas in PHL T
By Cai U. Ordinario
@cuo_bm
he Cabinet Committee (Cabcom) of the interagency Investment Coordination Committee (ICC) has approved a total of P52.2 billion worth of projects to be undertaken nationwide, according to the National Economic and Development Authority (Neda).
The Neda said in a statement that the amount covered seven projects, six of which are regional projects that contribute to spurring regional development and economic growth. “These projects will ensure the realization of the Duterte administration’s goals to reduce poverty and inequality by focusing on regional, rural and agricultural development,” Socioeconomic Planning Secretary and Neda Director
General Ernesto M. Pernia said. The project that accounted for the highest allocation was the P21billion-worth expansion of the Philippine Rural Development Project (PRDP). The expansion will cover an additional 206 farmto-market roads to reach a total of 386; 24 market roads and bridges, for a total of 44; and two rural road bridges, for a total of eight. The additional projects will also cover five communal irrigation systems, for a
total of seven; 17 level two potablewater supply, for a total of 27; and 65 other agricultural-support infrastructure, for a total of 129. “The expansion will require an additional P21 billion on top of the current P27 billion currently financed through the World Bank,” the Neda said. The PRDP is an ongoing nationwide program covering 16 regions and 80 provinces, including Davao del Norte, Iloilo, Isabela and Oriental Mindoro. These areas are also identified as major agricultural producers. Other approved big-ticket infrastructure project is the P10.5-billion Plaridel Bypass Toll Road Project, which aims to upgrade the existing two-lane Plaridel bypass road in the province of Bulacan to a four-lane toll-road expressway. The project will also include the construction of two service roads along the Barangay Burol access to Angat River. The list of ICC-Cabcom approvals includes the P9.2-billion New Cebu International Container Port
7
The number of projects approved by ICC-Cabcom (NCICP) Project, which will be built on a 25-hectare reclaimed island in the municipality of Consolacion, Cebu. It aims to decongest the existing Cebu International Port, which has already exceeded its optimal yard-utilization rate due to an increased cargo volume entering the port and its area limitation of only 14 hectares. “The project’s total cost of P9.2 billion is proposed for funding through official development assistance,” the Neda said. The NCICP is envisioned to be
a modern international container postfacility that will help sustain development and economic growth of Cebu. The project will be implemented by the Department of Transportation and the Cebu Port Authority starting in the third quarter of 2017 until the second quarter of 2020. The ICC-Cabcom also approved the change in scope, cost and financing of the Malitubog-Maridagao Irrigation Project (MMIP) Stage 2 project. The change includes an increase in the design area and a decrease in total cost to P5.4 billion, from the Neda Board-approved P7 billion in 2010. The MMIP-II project is being implemented by the National Irrigation Authority and is expected to be completed by 2018. The ongoing project is in the North Cotabato and Maguindanao areas, which are potential rice baskets in Mindanao, and will irrigate almost 10,000 hectares of land in 56 conflict-affected areas.
Intended to contribute to sustained peace and order, it will cover the construction of three major service areas, which are in upper and lower Malitubog, and the Pagalungan extension area. Other projects include the P2.8billion General Luis-Kaybiga-PoloNovaliches Road; the P2.7-billion Chico River Pump Irrigation Project; and the P601.09-million Second Cordillera Highlands Agricultural Resources Management Project. The ICC consists of the secretary of finance, as chairman; the Neda director general, as cochairman; and the executive secretary, the secretaries of agriculture, trade and industry, budget and management and the governor of the central bank of the Philippines, as members. It evaluates the fiscal, monetary and balance of payments implications of major national projects, and recommends to the President the timetable of their implementation on a regular basis.
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Thailand’s plan on tourist SIM teetering
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hailand’s national telecom regulator says it may have to abandon a plan to force foreign visitors to use special SIM cards that can be tracked by authorities if strong opposition is registered at the first public hearing on the issue. The first public hearing on the tourist SIM plan is scheduled for next month. The National Broadcasting and Telecommunications Commission (NBTC) has approved in principle a requirement that foreign visitors to Thailand use special SIM cards in their phones that can be tracked by the authorities. The resolution was said to have been drawn up in the interests of national security. “If the plan is widely opposed and draws heavy criticism from participants at the first hearing or leads to a potential threat to travelers’ privacy, we might scrap it completely,” NBTC SecretaryGeneral Takorn Tantasith told the Bangkok Post. Embassy representatives, as well as ambassadors from China, the United States, Britain and some European countries—all of which provide high tourist traffic to Thailand—will be invited to participate at the hearing, he said. The regulator will also raise the tourist SIM plan on its web site and other popular socialnetworking sites, including www.pantip.com, to generate more feedback. The tourist SIM initiative was originated at a regional-level meeting in Phuket in July, which gathered telecom regulators from the 10 Asean countries. Among the 10, Malaysia is the only one using special traceable SIM cards for foreign travelers. Earlier, the NBTC announced plans to embed location-based service software into SIM cards to
19.1million The number of tourists who visited Thailand in January to July 2016
make it easier to track a user in the event he or she became a criminal suspect. Operators would be required to sell the special SIM cards to foreign travelers wanting to use local mobile services. All mobile operators are expected to roll out the special SIM cards by early 2017. Takorn said the NBTC will hold several discussions with mobile operators and state agencies before the first hearing takes place. But a telecom industry source said the plan is also being reconsidered due to the impact it could have on tourism, which is viewed as an important engine of the country’s economic growth. From January to July of this year, 19.1 million foreign tourists visited Thailand, an increase of 12 percent year-on-year, according to the Tourism and Sports Ministry. Earlier, intense criticism of the plan was posted by foreigners on social media. Many said they would opt to use international mobile roaming services rather than buy a special SIM card in order to protect their privacy. TNS
Terrorism considered ‘uppermost’ threat by Southeast Asian defense ministers
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OINT BASE PEARL HARBORHICKAM, Hawaii—The threat of expansion of terrorist cells from the Middle East into Southeast Asia is “uppermost” in the minds of defense ministers in that region, Singapore’s defense minister said on Friday. Ng Eng Hen told reporters that dealing with Islamic State (IS)-inspired extremists in the region had been a main topic during this week’s meeting in Hawaii of defense ministers from member-countries of the Association of Southeast Asian Nations. US Defense Secretary Ash Carter joined the informal talks on Friday. “Every year we meet, the situation and the threat of extremist terrorism rises,” Ng said. Compared even to a year ago, he said, the extremists are more organized. “They are more networked,” he said. “They are more clear in their articulation of what they want to achieve.” Earlier in the day Carter told reporters that he’d asked the Asian Pacific Center for Security Studies to host an Asean counterterrorism workshop next year. He directed the center, which is in Honolulu and is under US Pacific Command (Pacom), to identify “any gaps that might exist in US-Asean cooperation on countering violent ex-
tremism—and close those gaps.” Carter said he’d asked Pacom commander Adm. Harry Harris to invite Asean partners to participate in a maritime domain awareness exercise in 2017 to improve the sharing of information. He’s also asked top officials of the US Navy and Coast Guard to hold a US-Asean maritime dialogue next year to share best practices. Harris, on numerous occasions, has warned about the potential of IS recruits returning to Asia, which he has described as the terrorist organization’s own “rebalance” to the Pacific from the Middle East. Individuals claiming links to the Islamic State group have already struck in parts of Southeast Asia. In January, in Indonesia, four people died in an attack using bombs and firearms, and in July militants killed hostages and police officers in Bangladesh. The IS claimed responsibility for both attacks. Ng said a “unit” of the IS group in the vast Malay archipelago has “the declared goal of establishing an Islamic caliphate in our part of the world in Asean.” “They’ve gone beyond networks to push the flow of funds, weapons,” he said. “They are already plotting.
Recently Indonesian authorities captured, or unearthed, a cell that was coordinated by a resident from Asean, but [living] in Syria, with the specific intent of shooting down hotels and other places in our Marina Bay area in Singapore.” He said that as the IS group is “diminished or dismembered” in Iraq and Syria, Southeast Asia will suffer in the short-term as the roughly thousand foreign fighters leave the Middle East. Some will be “reenergized” and well trained, he said. Ng said the gathered defense ministers had lauded the Philippines, Malaysia and Indonesia for forming patrols of the Sulu Sea, a body of water that has an entrenched network of weapons and human smuggling, including extremists. The ministers were generally receptive to Carter’s proposal for increased counterterrorism exercises between Asean nations and the US. Singapore has already fully embraced that multilateral approach, Ng said. Singapore coorganized a counterterrorism exercise earlier this year with Brunei Darussalam, Australia and New Zealand that hosted 18 countries and 3,000 personnel. TNS
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Monday, October 3, 2016 • Editor: Lyn Resurreccion
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Spain’s Socialist leader quits
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Republican presidential candidate Donald Trump speaks at Spooky Nook Sports Complex in Manhime, Pennsylvania, on Saturday. James Robinson/PennLive.com via AP
Trump recorded $916-M loss in ’95, cutting taxes–‘NYT’
D
onald Trump was facing renewed pressure to release his personal tax information, after a New York Times report that he recorded a $916-million loss on his 1995 incometax return, a deduction that might have allowed him to cut his federal income tax for several ensuing years. The Times, citing tax analysts, reported on Saturday night that based on Trump’s 1995 income-tax documents, he might have been able to reduce his tax bills for as many as 18 years. The newspaper posted to its web site three documents, which purported to be from state tax returns in New York, Connecticut and New Jersey. It received the documents in the mail last month, the newspaper said. Trump’s campaign said in a statement that he “has paid hundreds of millions of dollars in property taxes, sales and excise taxes, realestate taxes, city taxes, state taxes, employee taxes and federal taxes.” It a lso sa id t he ta x documents—which it referred to as an “alleged tax document,” had been “illegally obtained.” “Mr. Trump knows the tax code far better than anyone who has ever run for president and he is the only one that knows how to fix it,” according to the campaign statement. Departing from roughly 40 yea rs of t rad it ion for presidential nominees, Trump has declined to release his ta x returns. He says they are under an
Internal Revenue Ser vice audit and that he won’t release them until that audit has concluded. There’s no law preventing people from releasing their tax returns, even if they’re under audit. But tax advisers say that doing so would subject the returns to public scrutiny that might surface issues auditors had missed. Democrat Hillar y Clinton’s campaign, which has repeatedly faulted Trump over the lack of transparency, seized upon the Times report, calling it a “ bombshell ” that reveals both Trump’s past business failures and his tax avoidance. Clinton campaign press secret a r y Br i a n Fa l lon t weeted that the story showed “ just how lousy a businessman he is and how long he may have avoided paying any ta xes.” During their debate on Monday, Clinton had speculated that Trump was trying to hide politically embarrassing information by withholding his returns—including that he doesn’t want the public to know “that he’s paid nothing in federal taxes.” She cited previous reports, including one by the Washington
Post, which showed that he had paid no federal income taxes in 1978 and 1979.
‘Fiduciary responsibility’
Trump responded: “That makes me smart.” In its statement on Saturday, Trump’s campaign said he “has a fiduciary responsibility to his business, his family and his employees to pay no more tax than legally required.” The Post’s report was based on returns Trump had filed with the New Jersey Casino Control Commission in 1981. For 1978 and 1979, Trump took advantage of a tax-code provision popular with developers that allowed him to report negative income, according to the Post. He told the newspaper, “When you’re in the real estate business, you do have certain tax advantages.” Developers can depreciate the value of real estate to reduce their taxable income. In Saturday’s report, the New York Times cited a $916-million loss and noted “the financial wreckage he left behind in the early 1990s through mismanagement of three Atlantic City casinos, his ill-fated foray into the airline business and his ill-timed purchase of the Plaza Hotel in Manhattan. Severa l Republ ica n operatives who worked for Trump’s opponents in the primary elections predicted the news would weigh heavily on the nominee in the November 8 election, arguing that voters will see his tax avoidance as a matter of fairness. “Most Americans know you can’t avoid two things: death and taxes,” said David Kochel, who was former Florida Gov. Jeb Bush’s chief strategist before Bush quit the presidential race.
Trump has in the past criticized people who he says don’t pay their fair share of taxes. In September 2015, he tweeted: “The hedge fund guys [gals] have to pay higher taxes ASAP. They are paying practically nothing. We must reduce classes for the middle class!” The Times’s story capped one of the most tumultuous weeks yet for Trump, following what was widely perceived as a dismal performance at the first presidential debate. He has faced a barrage of attacks for his continued abrasive rhetoric against former Miss Universe pageant winner Alicia Machado, including a series of early morning tweets suggesting, without any evidence, that she had a sex tape. He has also repeatedly threatened to make Bill Clinton’s past infidelities a central issue of his campaign, to the consternation of several of his closest advisers.
Net operating losses
If genuine, the 1995 documents that the Times released on Saturday revolve around “net operating losses”—which under federal tax rules allow a business to apply losses from any one year to future years—reducing taxable income in those years. In 1995 taxpayers could “carry forward” such losses for 15 years, the Times reported, and apply them for three years retroactively. The rules are meant to smooth out fluctuations in taxable income over time. While the $916-million loss is substantial— and it would have helped cut future taxes to be sure—it’s unclear precisely how such a loss would have affected Trump’s tax liability going forward. That’s because his taxable income in subsequent years is unknown. Bloomberg News
Clinton’s remarks on young voters fuel new Trump pitch
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HITE PL A INS, New York—In a leaked recording from a February fundraiser, Hillary Clinton expressed empathy for young voters who were siding with her primary opponent, Bernie Sanders, saying that for people who don’t see any economic opportunities, the idea that “you could be part of a political revolution is pretty appealing.” Clinton called them “children of the Great Recession” and added: “And they are living in their parents’ basement. They feel that they got their education and the jobs that are available to them are not at all what they envisioned for themselves.” Donald Trump sought to turn her words into a new pitch for Sanders supporters, although Sanders himself has endorsed Clinton and
denounced Trump. The businessman contended at a Saturday night rally in Pennsylvania that the audio shows Clinton “demeaning and mocking Bernie Sanders and all of his supporters” and added: “To sum up, Hillary Clinton thinks Bernie Sanders supporters are hopeless and ignorant basement dwellers.” The hacked recording of Clinton speaking at the fundraiser six months ago in McLean, Virginia, was published on Tuesday by the Washington Free Beacon. In its report, the online conservative newspaper told readers that audio of Clinton’s comments was revealed by hackers who breached the e-mail account of a campaign staffer. One e-mail released by the hackers contained a recording of Clinton’s remarks
and a question-and-answer session, the Beacon reported. Young voters have been a stumbling block for Clinton. Many preferred Sanders, a Vermont senator who promised free tuition at public colleges and nationalized health care. At the fundraiser, Clinton said she had spoken with frustrated young millennials and understood where they were coming from. She questioned the idea of a political revolution, calling it a “false promise,” though she said she didn’t want to dampen idealism. She argued that she too was promising big ideas around health care, education and climate change. In a statement issued after Clinton’s remarks drew criticism, Clinton spokesman Glen Caplin said: “As Hillary Clinton said in those
remarks, she wants young people to be idealistic and set big goals.” Throughout the Democratic primary, Clinton stressed that she was offering a more pragmatic, achievable agenda than Sanders. She has wooed his young backers for months, adapting some of her policies— among them college affordability— to better appeal to his supporters. At another point in the February fundraiser, Clinton spoke about t he e x t remes on bot h sides of the political aisle, noting a “populist, nationalist, xenophobic, discriminatory kind of approach” from many in the Republican field and then said that for many Democrats, there is a yearning for “free college, free healthcare,” and to “go as far as, you know, Scandinavia.” AP
pain’s Socialist leader Pedro Sanchez resigned on Saturday, pushed out by rebels after more than 10 hours of tempestuous talks in Madrid, potentially signaling the beginning of the end for the country’s nine-month political impasse. With his supporters gathered outside the party’s headquarters, Sanchez announced his resignation in a televised statement after his call for an emergency leadership election was rejected by group’s federal committee. He was defeated 133 votes to 107, a party spokesman said. Sanchez had been seeking the membership’s backing after the party was torn apart by fighting over whether to let its traditional rival, Mariano Rajoy’s People’s Party, take office. “Today more than ever we have to be proud of working for the Socialist Party,” Sanchez said. “The caretaker administration that will emerge from the legitimate debate taking place in the federal committee will have my loyal support.” Sanchez had wanted to maintain the party’s opposition to Rajoy after Socialist lawmakers voted against the caretaker prime minister’s candidacy in two confidence votes in August and September, but he came under increasing pressure from party heavyweights and business leaders to step aside. The party may now abstain in a subsequent vote.
Mass resignation
Sanchez has been trying to rally support for an anti-Rajoy alliance since the acting prime minister lost his majority in December’s general election, but he’s struggled to bridge the ideological differences between anti-establishment group Podemos and the liberals of Ciudadanos, his most obvious allies. That impasse prompted a repeat election in June. Sanchez lost control of his party over the course of a roller-coaster week that began with his party falling behind Podemos in two regional elections in northern Spain. The party’s divisions broke open on Wednesday, when former Socialist Prime Minister Felipe Gonzalez accused the current leader of lying to him over his political strategy and a rebel bloc resigned en masse from the party’s executive committee. The leader’s two-year term began with a vote of party members just after his party had lost almost half of its support in the European Parliament’s elections of 2014. That was also the moment when Podemos burst onto the political scene giving voice to the millions of voters enraged by the economic crisis and a wave of corruption among the traditional parties. Bloomberg News
Colombians vote on peace deal after polarized campaign
Students shout during a rally supporting the “yes” vote ahead of the October 2 referendum on the peace deal signed between the Colombian government and rebels of the Revolutionary Armed Forces of Colombia in Bogotá, Colombia, on Friday. AP/Ariana Cubillos
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OGOTÁ, Colombia—T he guns have been silenced, the agreement signed and a historic handshake between former enemies made in front of the entire world. Now it’s time for Colombians to decide whether or not to support a peace deal with the country’s largest rebel movement. Polls taken before Sunday’s referendum, in which voters will be asked whether they want to ratify or reject a deal ending a half-century of hostilities with the Revolutionary Armed Forces of Colombia, or FARC, show the “yes” vote favored by an almost two-to-one margin. But the government isn’t taking victory for granted amid a highly polarized campaign that has exposed how steep a challenge it faces implementing the 297page accord and bringing about real reconciliation. Colombians overwhelmingly loathe the FARC, who the US considers a terrorist group, and many consider provisions in the accord that would spare the rebels jail time an insult to the 220,000 killed and almost 8 million displaced by the long-running conflict. In the past month, ever since the deal was announced in Cuba after four years of grueling negotiations, the government has been spending heavily on television ads and staging concerts and peace rallies around the country to get out the vote. They’ve even enrolled the help of U2’s Bono and ex-Beatle Ringo Starr, and for the first time in an election it’s making available in braille thousands of ballots so blind Colombians can vote. “We don’t want anyone to be feeling excluded because this is an important decision,” said Luisa Fernanda Morena, a 30-year-old volunteer preparing the materials at the National Institute for the Blind. For the referendum to be ratified at least 13 percent of the electorate, or 4.5 million voters, must cast
“yes” ballots. Turnout is expected to be low, no higher than the 40 percent seen in recent congressional elections, a sign to some analysts that Colombians enthusiasm for implementing the ambitious accord is lacking. The opposition, led by powerful ex-President Alvaro Uribe, argues that the government is appeasing the FARC and setting a bad example that criminal gangs will seize on. But the FARC in recent days has made an effort to show its commitment to peace is real. Twice this week leaders of the group traveled to areas hard hit by the violence to apologize for massacres committed by their troops in the course of the conflict and discuss with communities how they can compensate victims. “All of us in life have committed mistakes, some with consequences more serious than others,” FARC leader Ivan Marquez said on Friday at a ceremony in the northern Colombian town where rebels in 1994 disrupted a street party with gunfire, killing 35. “There’s nothing to lose in recognizing it. Speaking the pure and clean truth heals the soul’s wounds, no matter how deep they are.” On Saturday, in the presence of United Nations observers, they voluntarily destroyed 620 kilograms of grenades and light explosives. They also said they would compensate victims with financial resources and land holdings accumulated during the war. Although Santos wasn’t required to call for a vote ratifying the accord—some of his advisers and the FARC itself opposed the idea—the outcome will be binding. Only if it is ratified will the FARC’s roughly 7,000 fighters begin moving to 27 concentration zones where over six months they will gradually turn over their weapons to UN observers and prepare for their reintegration into civilian life. AP
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Monday, October 3, 2016
A7
Foreign nations pay plenty for US bases
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ASHINGTON—Five years ago, Hillary Clinton made a little-noticed deal obligating Japan to continue paying nearly $2 billion a year to help defray the cost of United States troops stationed on its territory.
The money is used to build housing and training areas for US forces, pay wages to thousands of Japanese workers on US bases and supply water and power. The payments, which began in 1978 and are considered a pillar of the postwar US-Japanese alliance, cover about a third or more of the cost of keeping 49,000 US troops in Japan. The five-year extension was disclosed in a communiqué after closed-door talks in June 2011 between Clinton and Japanese officials at the State Department. Clinton didn’t announce the deal, but the payments were never a secret. Despite that history, Republican presidential nominee Donald Trump has insisted repeatedly that Japan and other US allies contribute little or nothing to the United States for their defense. “They do not pay us. But they should be paying us, because we
are providing tremendous service and we’re losing a fortune,” Trump said in his recent debate with Clinton. The Pentagon spends an estimated $10 billion a year on overseas bases. More than 70 percent of the total is spent in Japan, Germany and South Korea, where most US troops abroad are permanently stationed. In return, the Pentagon receives various forms of compensation from the host countries, like rentfree real estate for the bases and cash payments to offset US costs. Trump’s attacks on allies as freeloaders is core to his political message that the US is being outmaneuvered by both friends and adversaries overseas. National security experts say his false claims on defense issues could undermine the network of military and diplomatic alliances constructed around the world by
US presidents of both parties over the last 70 years. “Can we drive a better bargain in some cases? Yeah, and [US officials] are always negotiating” for better terms, said Barry Pavel, a former Pentagon official who now is vice president of the Atlantic Council, a Washington think tank that supports North Atlantic Treaty Organization and other US alliances. “But we gain the most out of these alliances because it helps keep threats much farther from our shores than they otherwise would be,” he said. In Asia, said Zach Cooper, a security expert at the Center for Strategic and International Studies, a nonpartisan Washington think tank, Trump’s suggestion on the campaign trail that he might withdraw US troops or not help allies in a crisis is generating unease among allies. “Japan and South Korea already pay large amounts to host US forces on their soil,” he said. “Trump’s comments make it more likely that competitors will escalate crises into conflicts, and that US allies will develop their own independent defensive capabilities, which could increase the danger of nuclear proliferation in Asia and elsewhere.” It’s difficult to make exact comparisons of “host nation support,” as the Pentagon calls con-
tributions from allies, because assistance comes in different forms and the Pentagon doesn’t provide an accounting. An annual Defense Department report tallying foreign contributions was halted in 2004.
$12B
The amount Japan has agreed to pay to build a new US base on Okinawa for thousands of Marines now at the US installation in Futenma, Okinawa
Especially opaque are contributions from allies in the Middle East. The Pentagon maintains large permanent bases in the United Arab Emirates, Bahrain, Qatar and Kuwait, but those countries keep details of their military relations with the US shielded from public view. In Germany, where the United States maintains 38,000 troops and dozens of bases, compensation from Berlin is largely indirect. It includes tax waivers and rent-free use of facilities, as well
as construction of roads and other infrastructure in communities where installations are located. Japan has been one of the most generous hosts of US forces, although its willingness to pay has waned lately. Tokyo’s payments grew steadily for the first 20 years of the funding agreements, peaking at more than $2.5 billion a year in 2000. But the support has dropped in the last decade due to budget pressures in Tokyo and domestic opposition in Japan to the US military presence, especially on the island of Okinawa, home to more than half the US troops in Japan. Japan has agreed to pay as much as $12 billion to build a new US base on Okinawa for thousands of Marines now at the US installation in the town of Futenma. But that project has been repeatedly delayed by local opposition. Those pressures would make it difficult for Trump to fulfill his vow to force Japan to pay more money, experts say. Under the 2011 agreement, Tokyo agreed to continue paying just under $2 billion a year. But the deal also called for a “phased reduction” in Japan’s contribution to utilities and workers’ salaries on US bases. The 1953 US-South Korea defense treaty allowed the Pentagon to station troops there. But with
the country devastated by war, the US paid the bills. In 1966 Seoul agreed to provide “all facilities” to the US military at no cost, with the Pentagon picking up “all expenditures” for keeping troops there. But in 1991, after the South Korean economy had grown into one of the world’s largest, Seoul agreed to start picking up more of the expenses of the US military presence. The most recent agreement, signed in 2014, increased South Korea’s contribution to more than $800 million a year. That’s equal to about half the annual cost of the 28,500 US troops stationed there, according to Pentagon officials, not including personnel costs that the Defense Department would have to pay no matter where the troops were posted. The money doesn’t go to Washington, however. It’s used to pay salaries of Koreans working on US bases or is in the form of noncash contributions of services and construction at the installations, according to Army Gen. Vincent Brooks, the commander of US troops in Korea. South Korea also is funding most of a $10.8-billion construction project that will allow US troops to move from bases near Seoul and the Demilitarized Zone along the border with North Korea to new installations farther south. TNS
UK PM unveils Brexit-Day plan for ‘Great Repeal’ of EU law
British Prime Minister Theresa May (right) speaks at a Leader’s Refugee Summit as US President Barack Obama (left) and Vice President Joe Biden (center) listen during the 71st session of the United Nations General Assembly at the UN headquarters on September 20. AP/Julie Jacobson
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nited Kingdom Prime Minister Theresa May on Sunday will unveil her most detailed plan yet for the UK’s withdrawal from the European Union, saying she’ll repeal a 1972 law that gives direct effect to all EU legislation. The planned “Great Repeal Bill” will abolish the 1972 European Communities Act, while converting all EU laws governed by it into domestic laws, on the day Britain eventually completes its EU pullout, May’s Conservative Party said in a statement e-mailed on the eve of the party’s annual conference. The government will then be able to amend and repeal individual laws if deemed necessary. May is under increasing pressure from politicians and businesses to reveal details of how her government intends to proceed with Brexit negotiations. Sunday’s announcement begins to flesh out how she’ll go about Brexit. May has repeatedly said she won’t formally activate Article 50 of the Lisbon Treaty this year— the formal trigger for two years of exit discussions to begin. In an interview with the Sunday Times, May said the legislation will make Britain “a sovereign and independent country again.” The planned repeal bill will be introduced in the next Queen’s speech, expected in April or May.
‘Back in control’
“As we prepare for those negotiations in Europe, we also need to prepare for the impact of Brexit on domestic law,” David Davis, secretary of state for Exiting the
European Union, will tell conference delegates, according to the party’s statement. “It’s very simple. At the moment we leave, Britain must be back in control. And that means EU law must cease to apply. To ensure continuity, we will take a simple approach. EU law will be transposed into domestic law, wherever practical, on exit day,” Davis said. Nissan Motor Co. CEO Carlos Ghosn on September 29 signaled he might not be able to make new investments in Britain without a government pledge for compensation in the event of adverse consequences stemming from Brexit. And Vodafone Group Plc. has said it’ll consider moving its headquarters to the continent if Britain doesn’t preserve access to the EU’s single market. “We still know nothing about the government’s plans for our new relationship with the EU, whether over trade, security or migration,” Phil Wilson, an opposition Labour Party lawmaker said in a statement e-mailed by the pro-EU Open Britain campaign. “As car manufacturers have made clear, it is essential that the UK remains a member of the single market to protect investment and jobs. This is what businesses want to hear the prime minister commit to.” Davis, May and Foreign Secretary Boris Johnson will all address the party conference in Birmingham, central England, on Sunday, in an afternoon session, entitled “Global Britain: Making a Success of Brexit.” The gathering runs through Wednesday. Bloomberg News
A K holds a Chinese flag as he takes a smartphone photo before the dawn flag-raising ceremony at Tiananmen Square on National Day in Beijing on Saturday, which marks the 67th anniversary of the founding of the People’s Republic of China. AP/Mark Schiefelbein
China factory gauge stable at post-2014 high
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hina’s official factor y gauge steadied at the highest level in almost two years while services picked up, suggesting that the economy’s stabilization continued last month and reducing prospects for additional policy easing. Manufactur ing purchasing managers index (PMI) remained at 50.4 in September, the National Bureau of Statistics said on Saturday. It compares with a median estimate of 50.5 in a Bloomberg economist sur vey and 50.4 the prior month. Numbers higher than 50 indicate improving conditions. Nonmanufacturing PMI rose to 53.7 from 53.5 in August. New export orders rose to 50.1, signaling the first expansion since April. On Friday the private Caixin Media and Markit Economics China Manufacturing PMI came in at 50.1 for September, matching estimates
The data add to evidence of improvement as government fiscal support and a soaring property market help underpin growth. Fresh signs of stability may lead policy-makers to remain on hold after keeping the benchmark interest rate at a record low for almost a year. “ T he economy i s st abi l i z ing on all the support that the government has given through mone t a r y e a s i n g a nd f i s c a l spending,” which has fueled the investment and supported more upbeat growth forecasts, said Iris Pang, senior economist for Greater China at Natixis SA in Hong Kong. Still, that doesn’t necessarily mean “ever ything is really turning better.” “Property and infrastructure investment have propped up growth and some enterprises are becoming more profitable in the process of cutting overcapacity,”
said Wen Bin, a researcher at China Minsheng Banking Corp. in Beijing. “Longer-term pressure still lingers. China must push forward supply-side reform and maintain stable liquidity to support the real economy.” “New exports orders have rebounded above 50, which might be related to the yuan’s depreciation against a basket of currencies,” making shipments more competitive, said Tommy Xie, economist at OCBC Bank in Singapore. “It may not be the purpose that the Chinese government wants, but now it seems to be the result of a weaker yuan.” “There’s been some progress made” toward stabilization as larger companies underpinned growth, said Raymond Yeung, chief greater China economist at Australia and New Zealand Banking Group Ltd. in Hong Kong. “The employment reading is not so en-
couraging. The government needs to find some way to address the unemployment stress.” Manufacturing employment continued to edge up but still indicated deterioration, rising to 48.6 from 48.4. Large enterprises rose to 52.6, while the reading for small companies retreated to 46.1. The foundation of manufacturing growth is still weak as companies face difficulties with operations and capacity cuts, the NBS said in a statement released with the data PMI gauges are based on surveys of purchasing executives at 3,000 companies. Economic growth slowed to 6.6 percent in the third quarter, according to economists surveyed before a report due on October 19, from 6.7 percent in prior two quarters. The Bloomberg Intelligence China gross domestic product tracker rose to 7.16 percent in August. Bloomberg News
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Monday, October 3, 2016 • Editor: Lyn Resurreccion
The World BusinessMirror
www.businessmirror.com.ph
US, Russia offer fierce words but not relief on Syria attacks
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ASHINGTON—The strained relationship between Washington and Moscow deteriorated further on Saturday with new threats over Syria, but no sign of relief to widespread bloodshed there.
Members of the Lebanese Islamic group and Association of Muslims Scholars hold placards during a protest in front of the United Nations Headquarters in Beirut, Lebanon, on Friday against military operations of Syrian President Bashar al-Assad’s forces and the Russian military in the northern Syrian city of Aleppo. AP/Bilal Hussein
As yet another hospital in the besieged city of A leppo was reported bombed by Russian or Syrian government warplanes, a senior Russian official warned
of “tectonic” consequences if the United States attacked forces loyal to Syrian President Bashar al-Assad. The US, clearly frustrated and
angry at what it describes as brutal, indiscriminate attacks on civilians by Syria and its Russian allies, warned last week that it would end cooperation with Moscow over Syria if the violence continues. Washington would end diplomatic negotiations with Russia over Syria and renege on an offer to share military intelligence if the attacks don’t stop, and would consider “all other options,” the State Department said. So far, that has been an empty threat. Although portrayed as an urgent ultimatum delivered on Wednesday, the Obama administration by midday Saturday had not changed course. Secretary of State John F. Kerry has spoken by telephone to his Russian counterpart Foreign Minister Sergei Lavrov nearly every day since. Still, Moscow reacted angrily to the threat. On Saturday, Russian news agencies quoted Foreign Ministry Spokesman Maria Zakharova as warning that US military operations against the Syrian army would trigger “terrible, tectonic consequences” across the Middle East. State Department Spokesman John Kirby had earlier warned that Russia’s failure to secure a ceasefire in Aleppo and beyond would lead to Russians going home “in body bags.” However, the quagmire that Obama administration officials predicted would suck in Russia when it entered the Syrian conflict a
year ago has yet to materialize. Russia, which says it is targeting only jihadist groups, has paid a price for its military involvement, but it has also succeeded in saving the Assad government from defeat, shifting the battlefield dynamic and reasserting its influence in the region. Also on Saturday, reports from Syria indicated that what rebels called a major offensive was underway, with additional sorties by Russian warplanes targeting supply routes into Aleppo, while Iranian-backed Syrian government ground forces attacked rebel positions in the divided city. A field hospital in the eastern, rebel-held Sakhour district was bombed and heavily damaged by Russian warplanes, the second such strike in a week, according to the London-based monitoring group the Syrian Observatory for Human Rights. Despite the soaring death toll, including at least 100 children killed in the last week in Aleppo and surrounding areas, the Obama administration has continued to insist that diplomacy still may have a chance. “If we do walk away from this diplomatic process…moribund as it is,” State Department Spokesman Mark Toner said on Friday, “what are the options?… Many of them are not good options. “I agree [diplomacy] is on life support, but it’s not flatlined yet.” TNS
Pakistani border guards in black uniform take part in a daily border closing ceremony with their Indian counterpart at sunset, at the Wagha border post in Pakistan on Saturday. AP/K.M. Chaudhry
Pakistanis turn flag ceremony into rally
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AGH A , Pa k istan—A routine daily flag-lowering ceremony at an Indian-Pakistani border crossing became a show of strength and patriotism on Saturday on the Pakistani side, thanks to simmering tensions between the two nuclear-armed neighbors. Thousands of Pakistanis thronged the border town of Wagha to watch their soldiers lower the flag. The ceremony takes place daily and features a formal set of handshakes between Indian and Pakistani soldiers. Very few people attended from the Indian side. Saturday’s ceremony took on extra meaning because of an ongoing dispute between India and Pakistan over the contested territory of Kashmir. Both countries claim the Himalayan territory in its entirety and are separated by the heavily guarded Line of Control. Since 2003, a cease-fire has l a rge ly he ld des pite reg u l a r small-scale skirmishes. Each side routinely blames the other for starting any violence and insists they are only retaliating. India blamed Pakistani-supported Kashmir-based militants for a deadly September 18 assault on a base in Indian-controlled Kashmir that killed 17 Indian soldiers. On September 29 the Indian military claimed to have carried out a “surgical strike” across the Kashmir border that destroyed what it called a “terrorist launching pad”
used by Kashmir-based militants. Two Pakistani soldiers were killed in that barrage. The latest spike in tensions has spilled over into a cultural and political stand-off. The Indian Motion Picture Artists Association announced it would ban Pakistani actors from Bollywood movies and several large Pakistani cinema chains announced they would stop showing Indian movies. Saturday’s ceremony began w ith the march of t wo fema le border g uards. T hen a Pa k istani Sik h soldier shook hands w ith his Indian counter par t; the soldier a lso shook his fist ag gressively at the Indian sold ier a s t he Pa k i st a n i c rowd clapped in approva l. Among those who traveled to witness the ceremony on Saturday was 70-year-old Mohammad Ahsan, who said he came from southern port city of Karachi. “I am so happy that I saw today’s parade and flag-lowering ceremony. The way our soldiers sprint and march is a rare experience of my life,” he said, as his daughters and others chanted, “long livePakistan.” Anam Fatima, 17, said she came to Wagha along with her classmates and teachers to boost the morale of Pakistani soldiers. “I did not know that our soldiers are so handsome, tall and brave and I saw them today closely and God willing no one can defeat our brave nation,” she said. AP
Pope in Azerbaijan B A Jordanian teacher talks to Syrian refugee students at school in Amman, Jordan. Jordan says it is opening its schools to all Syrian refugee children, starting this week, by adding more shifts and hiring more teachers. AP/Ahmad Alameen
Syrians refuse relocation along Jordan border
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MMAN, Jordan—Syrians stranded on the border with Jordan protested on Saturday over their refusal to move about 6 kilometers west to a soon-to-be opened aid distribution center. Videos sent to The Associated Press on Saturday showed a protest against any relocation from the al-Ruqban camp. “If we move from the Jordanian border, there will be no safety. Syrian and Russian planes will come and bomb us,” said Ahmad, a 40-year-old Syrian living at the 75,000-person camp who wouldn’t provide his full name for safety concerns. Aid officials, speaking on condition of anonymity, said a new
distribution point is being built to draw refugees away from a nearby Jordanian military base. The officials added that the United Nations and Jordan will agree next week to start remote delivery of food, water and basic medical care from a service center constructed recently inside Jordan. This could incentivize the refugees to voluntarily move to the new distribution center or force them to transport supplies from it back to al-Ruqban, the officials said. Conditions at the camp have worsened since Jordan sealed the border 10 weeks ago after an Islamic State-claimed car-bomb attack killed seven soldiers nearby.
Amid ongoing security concer ns f rom neighbors Iraq and Syria, Jordan has allowed one food delivery since the attack, but resumed daily water delivery two weeks afterward. Doctors Without Borders has repeatedly warned of hepatitis and other disease outbreaks in the camp. Both Amnesty International and Human Rights Watch have called for immediate resumption of humanitarian assistance. While Amnesty International welcomed t he resumption of aid, it warned that moving refugees by force from al-Ruqban would be a “ f lagrant violation of international law.”
“Any relocation of the population at the berm must be voluntary and compliant with international standards. Forced displacement would be a flagrant violation of international law and any attempt to coerce or ask them to move should be rejected,” said Khairunissa Dhala, Amnesty’s refugee and migrants’ rights researcher. Ahmad said al-Ruqban, while bleak and increasingly dire, is safer than the shelled neighborhoods and carnage he and other refugees fled inside Syria. “Where can we go?” read a sign in Arabic at the protest. “Starvation and deprivation before us, bombs and murder behind.” AP
A K U, A zerba ija n—Pope Francis arrived in Azerbaijan on Sunday for a 10-hour visit aimed at encouraging the country’s multifaith society and likely overlooking recent criticism of a referendum that extends the president’s term and powers. A zerbaijan, the second-largest Shiite Muslim nation after Iran, has a tiny Catholic population—fewer than 300 A zeris are Catholics. Several thousand foreigners make up the rest of the Catholic community, and A zeri Jews, Zoroastrians and ot he r m i nor it ie s rou nd out A zerbaijan’s religious mix. Francis will meet with representatives of all the main faiths, as well as President Heydar Aliyev, before heading back to Rome on Sunday night after a weekend visit that took him first to Georgia. Last week Azerbaijan’s Central Election Commission said more than 80 percent of voters backed a constitutional amendment extending the presidential term from five to seven years, and granting the president the right to dissolve parliament, creating new vice-presidential jobs and canceling age limits. Aliyev’s opponents, as well as rights organizations, including Amnesty International and Freedom House, said the moves
would cement a dynastic rule in the oil-rich Caspian Sea nation. The Azerbaijani government has rejected the criticism, saying the constitutional amendments are intended to cut the red tape and speed up economic reforms. It’s unknown if Francis will press Aliyev on the issue or other broader criticisms of alleged human-ights abuses and suppression of dissent. Francis will celebrate Mass in the Catholic Church that was built after Saint John Paul II visited Azerbaijan in 2002. After that visit, Aliyev donated a plot of land on the outskirts of the capital, and local Muslims and Jews helped build it. “I cannot contain my boundless joy,” 61-year old parishioner Eva Agalarova said of Francis’s visit. “It is both joy and happiness that the faith gives me.” Francis’s v isit to A zerba ijan comes after a June visit to neighboring Armenia, in hopes of bringing a message of peace between two former Soviet republics over Nagorno-Karabakh. That region is officially part of Azerbaijan, but since a separatist war ended in 1994, it has been under the control of forces that claim to be local ethnic Armenians but that Azerbaijan claims include the Armenian military. AP
The World BusinessMirror
www.businessmirror.com.ph
Monday, October 3, 2016
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Leaders are drawing a red line on the four freedoms of movement for goods, services, capital and people
Brexit is more than money for east EU
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s European governments stake out positions for talks that will shape the continent’s post-Brexit future, their priorities offer a glimpse into the wiring that holds together the world’s biggest trading bloc.
For the former Communist east, where 11 countries have joined the European Union (EU) since 2004, the deal breaker is the free movement of labor. While richer nations pour billions of euros into the economies of their neighbors to help them catch up, opinion polls show that for the more than 100 million people who live in the area that stretches from the Baltic to the Black Sea, the ability to live and work anywhere in the EU outweighs all other aspects of membership. The eastern countries, often seen as the United Kingdom’s natural allies in battles against the EU’s more dominant power centers, are presenting a united front. Backed by some western European governments, notably the region’s most powerful in Berlin, leaders from Riga to Sofia are drawing a red line on the four freedoms of movement for goods, services, capital and, especially, people. Their message is simple: no unfettered market access without the continued ability of their citizens to work and live in Britain. “It’s not all about the money, a lot of it has to do with respect, being treated equally with others,” said Joerg Forbrig, a senior program director at the German Marshal Fund of the US in Berlin. “If the Brits go in with the expectation that the EU will broadly support It would be difficult for the eastern governments to compromise, given the attitudes of their voters. In a Eurobarometer study, all 11 countries saw the free movement of people, goods and services as the most positive result of the EU. In a separate survey by the Friedrich Ebert Stiftung, a German foundation associated with the Social Democratic Party, 74
100M The population of the former Communist east Europe
percent of Slovaks and 64 percent of Czechs said workers should have the unconditional right to seek jobs in other EU states. That compared with an average 57 percent of eight countries also, including Spain, Italy, Germany, Sweden, France and the Netherlands. In contrast, only 32 percent of Czechs said wealthy members should support the poorer financially, versus a group average of 47 percent. “To be able to pick up and work abroad seems right to me,” said Lucie Capouskova, a 42-yearold Czech tourism consultant in Prague. “Some people stay abroad, but a lot come back speaking foreign languages and with skills they wouldn’t get here, which enriches others who couldn’t leave or who didn’t have the courage.” The sentiment has galvanized leaders across the region. Slovak Prime Minister Robert Fico said this week that his country will “ fight hard” for his fellow citizens’ rights in the UK, and Brexit talks must prevent the creation of “second-class citizens.” Tomas Prouza, the Czech Republic’s lead Brexit negotiator, said there’s “zero chance” for the UK to curb migration from EU states if it wants to maintain full free-market access, and that every EU member would have a chance to veto the negotiating mandate if they disagreed with any of its points.
Shipping in the United Kingdom
Bloomberg News
On Friday Polish Deputy Prime Minister Mateusz Morawiecki sa id h is cou nt r y w i l l “m a ke sure that these freedoms are protected better than now, so that we’re treated no worse than the biggest EU members,” while Czech Prime Minister Bohuslav Sobotka told UK Premier Theresa May in a phone call that the four freedoms can’t be separated. “The governments in the whole region know how economically important for their citizens this is by the fact that millions of people have left to seek a better life in the old EU” members, said Anna Materska-Sosnowska, a political scientist at Warsaw University. “The four freedoms of the single market are important because, if you leave them out, what’s really left from EU membership? Not that much.”
EU funds are a different matter. While visa-free travel can enrich everyday lives, people find the impact of funds harder to assess. The €439 billion ($494 billion) spent since 2007—and €454 billion more earmarked through 2020—have boosted the region’s economies and are felt deeply when they ebb. They’ve also helped lift living standards that lagged those in western Europe after four decades of centra l ly planned communist rule. The payments themselves probably won’t be up for direct debate during Brexit talks. The UK won’t cease contributions—which amounted to €7.46 billion or about 5 percent of the bloc’s spending in 2015— until it leaves near the end of the current budget cycle. Still, the subject highlights
Ex-Blair adviser appointed to review UK work practices
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rime Minister Theresa May appointed a former adviser to Tony Blair to lead a review of the United Kingdom’s employment practices as she seeks to secure the center ground in British politics. Matthew Taylor, a head of policy at the Labour Party when Blair was prime minister, will study how employment practices need to change to keep pace with modern business models, the ruling Conservative Party said on Saturday in a statement. The review will look at issues including job security, pay and workers rights, the party said. “We are building a new center ground in British politics,” May, who assumed leadership after the UK’s vote for Brexit, said in the statement. “Improving the security and rights of ordinary working people is a key part of building a country and an economy that works for everyone, not just the privileged few.” Workers’ rights have become a key theme in British politics with employers such as Sports Direct International Plc. criticized by lawmakers and investors over allegations of improper labor practices. The government said in the statement that 6 million people aren’t covered by standard UK workplace rights, and that changing business practices continue to stretch the limit of employment rules.
Labour shift
May’s announcement comes as the opposition Labour Party is moving away from the center and the farleft policies of its leader, Jeremy Corbyn, alienate some of his own members in Parliament. Corbyn in July said he would force a l l UK companies w ith more than 250 staff to negotiate with a recognized union on their workers’ pay, and that recent British corporate scandals demonstrate a “race to the bottom” in employment conditions. “New forms of employment have many advantages for workers and consumers but there are challenges and risks,” Taylor, who is Royal Society of the Arts chief executive officer, said in the statement. “That the prime minister has chosen to prioritize the interests of the growing army of people working in new ways sends an important message.” The review, announced ahead of the Conser vative Party’s annual conference this weekend in Birmingham, also will examine workers’ represent at ion, advancement and training along with opportunities for underrepresented groups in the labor market. Taylor called it “ a daunting brief” on Twitter on Saturday. Bloomberg News
Brazil’s former President Luiz Inacio Lula da Silva (left) campaigns with São Paulo Mayor Fernando Haddad, who’s running for reelection with the Workers Party in São Paulo, Brazil, on Friday. The first round of nationwide mayoral elections are scheduled for October 2. AP/Andre Penner
Angry Brazilian voters preferring novice pols
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ÃO PAULO—In Brazil’s biggest city of São Paulo, the leading mayoral candidate is a businessman who once fired people on air during a television-reality show. In the country’s crown jewel city of Rio de Janeiro, the front-runner is an evangelical pastor. And in Belo Horizonte, a former pro soccer player is leading the pack. For the first time since a bruising impeachment fight led to the ouster of President Dilma Rousseff, Brazilians vote on Sunday as municipal elections take place in more than 5,500 cities. If polls are any indication, voters are in a kick-the-bums-out mood, preferring novices to established politicians amid a deep recession and anger about a colossal
corruption scheme that has led to the jailing of several top politicians. “I don’t want any of these traditional politicians. Not the current mayor, the exmayor, anyone who has governed before,” said Maria Fernandes, a hairdresser in São Paulo who plans to vote for Joao Doria, an ex-host of The Apprentice Brazil who uses the slogan “I am not a politician, I am a businessman.” Outsiders like Doria seem to be on the upswing in Latin America’s largest country, where major parties had long kept tight control on which candidates get put forward. In the 26 state capitals where mayoral seats are at stake, only five incumbents are polling above the 50 percent necessary to avoid a runoff, according to polls aggregated
conf licting perceptions among EU members. Before they voted to leave the bloc, 58 percent of UK voters saw “having to pay for other countries’ economic problems” as a disadvantage to EU membership, according to a February survey conducted by Lord Ashcroft Polls. It was the second-biggest perceived negative after “the scale of immigration from EU countries.” Yet, in eastern Europe, development grants are seen not just as a way to boost economic output, but also as a vehicle for more of the corruption and cronyism that reigned when they were part of the Soviet bloc. While projects include highways, stadiums, parks and other contributions, much of the coverage in local media is related to graft or waste, including reports of underused airports in Poland, a 40-centimeter lookout in Hunby online news site UOL. Many candidates are going out of their way to present themselves as outsiders uncorrupted by the business-as-usual way of doing things that led to arguably the country’s biggest political crisis since President Fernando Collor was impeached in 1992. In August Rousseff was removed by the Senate for illegally shifting funds between federal budgets. The ouster was the culmination of a nearly yearlong fight that paralyzed Latin America’s largest economy, already mired in its worst recession in decades. Rousseff denied wrongdoing, arguing that an elite class, furious over the social-welfare policies of her Workers’ Party, was pulling off a modern-day coup d’etat. The battle came against the background of revelations of a massive kickback scheme at state oil company Petrobras. Fabio Wanderley Reis, a political science professor at Minas Gerais Federal University, said candidates who reject traditional politics are mirroring an overwhelming feeling among Brazilians. “Politics are being criminalized in part by the politicians themselves,” Reis said. He said that if outsiders triumph in the mayoral elections, “it could be a trend for the presidential elections in 2018.” One of the biggest upsets could be in São Paulo, Brazil’s largest city, the country’s economic engine and traditionally a bellwether for the national stage. Even a year ago, incumbent Fernando Haddad of the Workers’ Party was talked about as a leading contender for the presidency in 2018. Now Haddad is struggling just to qualify for a runoff. Polls show a clear lead for Doria, a communications mogul who hosted a Brazilian version of Donald Trump’s show The Apprentice and has owned magazines such as Caviar Lifestyle. AP
gary, or an EU-funded hotel that advertises sexual services in the Czech Republic. The latter two, along with Bulgaria, have had funds temporarily frozen over suspicion of misuse. According to Gabriella Nagy, head of the Public Funds Program at Transparency International Hungary, 90 percent of EU-funded projects are overpriced by an average of a fifth to a quarter, with some costing seven times more than they should. “The single most important factor that raises people’s awareness of these funds is the deeply entrenched corruption that affects a very large percentage of these projects,” Nagy said. “Public awareness of EU development funds is very low, and most people never experience the impact of these funds in their lives.” Bloomberg News
India agrees to ratify Paris climate deal; limit emissions
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ndia agreed to ratify the Paris climate accord that will require the world’s fastestgrowing economy to limit emissions and pave the way for implementation of the biggest step ever to combat global warming. The deal will be formally ratified on Sunday, Environment Minister Anil Dave told reporters in New Delhi. Under the accord, India will reduce the intensity of fossilfuel emissions, a measure of pollution released per unit of economic growth, by 33 percent to 35 percent from 2005 levels by 2030. India, in its climate pledge—also known as Intended Nationally Determined Contribution—submitted to the United Nations last year on October 2, estimated a cost of $2.5 trillion for its climate-action plan. India will ask developed countries to provide $100 billion per year in climate finance for poorer countries, the minister said. Commitments to the Green Climate Fund are at a little over $10 billion, Dave added. Adopted last December, the Paris accord takes effect once at least 55 countries accounting for 55 percent of global emissions ratify the deal and the first meeting of the parties to the agreement could take place during the Morocco round of negotiations next month. Bloomberg News
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BusinessMirror
Monday, October 3, 2016
Editor: Carla Mortel-Baricaua
Mt. Pinatubo: Fire and ash
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Story & photos by Army Alcayaga-Granada
he Aetas of Zambales tell the story about a firebird inside the volcano ready to devour everything. Perhaps, this is to quiet the children and scare them to take their afternoon naps or if they misbehave. After all, in many culture like ours, it is not unheard of for parents to do that. Children of Aetas
Early February dawn, our group of writers and photographers was hauled into AUVs and rushed to Capas, Tarlac, the jump-off point to Mount Pinatubo. A couple of hours later, after surviving hell-driving maneuvers at the North Luzon Expressway, we ended up at the eerie landscape of the lahar trail. A 4x4 jeep was to take us to the beast. We scrambled to find our 4x4 jeep among so many. There were four of us in the group but a fifth passenger joined us. Introductions were made. The fifth passenger was a woman. She was traveling alone. We welcomed her and I assumed, like me, my companions were also wondering why she was traveling alone. Our driver gave us a wide-toothed smile as we gave the jeep a once-over. It was certainly one for wear and tear, but I trust this open-roofed vehicle can negotiate lahars and waterways. Our tour guide jumped on the hood of the jeep, probably because there was no more space. I checked my water, Cadbury (nuts and fruits) bar, adobo and rice, and camera. I felt ready for anything. My bones and teeth were literally rattling because of extreme excitement, as this was my first time dune bugging. The engines were revved up, the drivers’ smiles turned into devilish grins. I realized part of their daily thrill was getting into gear and racing against their buddies. And we’re off. The wind hit my face, it was cool and nippy. As it was still dark, the sharp for-
mations, which were visible, looked menacing, like the teeth of a monster. As we traversed the local Sahara, a thought dawned on me. MountPinatubo erupted 25 years ago. The volcano, which was at the center of three provinces, Pampanga—Tarlac and Zambales—erased the topography of the nearby locale. The monster eruption shook the world from its complacence, introducing the newly awakened volcano which for more than 200 years lay asleep. The world’s attention was drawn to the clout of this beast. Mount Pinatubo became a standard by which all other volcanoes were compared. So, there we were like beans inside a can being shaken by the bumpy ride of the 4x4 vehicles. There were times we were almost thrown out of the jeep but we held on, afraid to walk the rest of the way on foot. The driver did not even look if we were still there, confident we knew what we were doing. This was the only way to go in this terrain. Our tour guide on the hood of the jeep, obviously bored by the uneventful trip, just sat there nonchalant. For us first timers, it was a thrill of a lifetime. My two photographer friends carried their huge cameras aiming at just about everything, not to mention our noses, because we were a pretty close bunch inside the jeep. The wind blew my hair and sent my scarf a-flying. We exclaimed all sorts of adjectives and expletives, all thunderstruck by the Tolkien-esque beauty. What bizarre patterns, I thought
The author taking a selfie while the guide sat on the hood of the vehicle.
to myself. I stood up to take the video of the expanse and couldn’t help but be awed by the jagged peaks. Whizzing by were boulders scattered about the topography. Strangely stunning, a wide expanse of white grayish grit, rocks and gravel loomed before us. It gave one vague apprehension. These were, after all, only petrified dust. And the slightest tremor from beneath, not to mention the roar of the engines, could send any of these jagged peaks tumbling all over us. The vehicles were chasing each other like horses crossing the wilds. The “Chariots of Fire” played in my head. The music reached its crescendo and, for that moment, I felt I was part of this magnificence. I raised my face to the sky and closed my eyes while my hands held on for dear life. Then the sun began to rise. I caught the sunrise with my camera and thought of how that moment, all worries were blown away by the wind. For a couple of hours we navigated the bumpy road. Then right smack in the middle of the desert, we stopped. The crazy thing was there were two Aeta children sitting there, playing in the midst of nowhere. The great big smiles smeared on their faces were genuine. Time was of no essence to these dark beauties. At this point, we had to pick up our walking sticks to trudge through
Caldera of Mountt Pinatubo
the fairly rough terrain. It is a well-known fact that Filipinos are a romantic bunch. Without scruple, we asked our fifth companion, our new friend, if she was undergoing some sort of romantic break. Being in a strange land, the cosmos gave us an excuse to pry into other people’s lives. She told us her story of love lost and how she was now traveling to strange new lands in order to search for meaning. It gave an added dimension to our journey. The guide reminded us to stay away from the walls for they were very unstable. We had to jump over waterways and zigzag between boulders. These formations will never be the same after a few weeks, or maybe days. The landscape kept changing even as we walked the trail. Wind, water and feet altered the topography every minute. The wind was chilly, sending ooohs and aaahs echoing through
DTI-Citem enlists 15 SMEs to develop new generation weaves, basketwork and related wares
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n support of local handcraft ateliers under the Design for Exports Program, the Center for International Trade Expositions and Missions (Citem) has recently enjoined 15 local manufacturers in a product-development program focusing on new-generation weaves, basketwork and related wares. These product collection will be presented during the Manila FAME: The Design and Lifestyle Event from October 20 to 22 at the World Trade Center, Pasay City. “The appeal of Philippine crafts lies in our raw materials and the unparalleled skill of our artisans. Through the DTI-Citem efforts, we can further enhance this advantage and capitalize on it to help maintain—or even raise— our position in the global handicrafts-export industry,” CITEM Executive Director Rosvi C. Gaetos said. In the recent years, where the global demand for basketwork has been steadily increasing, and ecofriendly designs are also gaining popularity among international buyers as these are considered sustainable, the Philippines remains the fourthth-largest exporter of basketwork and other related wares in the world. Citem will provide the 15 companies full design and productdevelopment assistance to maximize their business opportunities in the global houseware industry through material and product de-
Tiger grass of Hacienda Crafts
Salago fiber made into paper by Masaeco
Home décor, lamps and lightings made of bagobago vines by Maria Vinecraft Inc.
velopment, market intelligence and buyer matching. Citem envisions the local manufacturers to enter niche markets as the current target market in weaves and related crafts is already dense. “We just cannot continue producing ‘only products.’ We need to create products full of soul, and that are unique, meaningful and useful” ED Gaetos said. The 15 handcraft ateliers currently undergoing product development using locally sourced natural materials are from craft communities of Bicol, Pampanga, Cavite, Negros, Davao, Cebu and Metro Manila. Companies that
are making use of Philippine fibers (abaca, banana, buntal, cotton, pineapple, raffia); leaves (i.e., pandan and water hyacinth), reeds, vines, bamboo, rattan, and wicker are Calfurn, Catalina Embroideries Inc., Larone Crafts, Inc., Hacienda Crafts Co. Inc., Maria Vinecraft Inc., Obra Cebuana Inc., Shelmed Cottage Treasures, That One Piece Enterprise and Tagum Agricultural Development Corp. (Tadeco). The companies that make use of wood and metal are Basket and Weaves Handicrafts Mfg., Chanalli and Native Crafts and Arts Industries Inc., Masa Ecological Development Inc. (Masaeco) makes use of paper, piña fiber and mulberry bark, while Asia Ceramics Corp. and Kilus Foundation are making
products made of ceramics and synthetic materials. As part of the program, Citem organized presentation on the market and product directions consistent with global design and trends in basketry to a group of Manila FAME exhibitors, designers and students. Attendees were introduced to the lifestyle and color forecast for 2017 and beyond that largely embarks on elements of light, natural, earthly colors and turquoise accents. Manila FAME, the country’s premier design and lifestyle event, is organized by Citem, the export-promotions arm of the Philippine Department of Trade and Industry. For more information on Manila FAME, log on to www.manilafame.com.
People look for picnic place at the waterfront.
the vast nothingness. I listened to my playlist, happy that I charged my cell phone to the brim. The path kept going higher, an indication that we were almost there. And then after two hours of relentless walking, we reached the Mount Pinatubo sign. We picked up the pace. Upon reaching the edge of the caldera, my jaw dropped. I was startled by the luminosity and aqua blue color of the water. Like a strange cobalt eye gazing back at me. An eerie soft breeze went passed my ear. The sun’s rays, like a spotlight, highlighted each portion of the yawning caldera. One minute the water was highlighted, and the next the rays moved to the ash speckled volcanic wall. The hue kept changing, from light to dark blue. A veil of mist hanged over the blue, then after a while dissipated.
A quiet filled me. People scrambled for a picnic place. There was a group of tourists who wanted to swim, but were warned that in the middle of the water was an abyss. I shuddered at the fact that we were at the mouth of the sleeping beauty. We ate lunch and took in the entire splendor and promised ourselves to come back. Going back to the jump-off point, we noticed our appearance. Disheveled, covered with white lahar powder, we resembled a group of Bedouins traversing the deepest desert in Africa. We laughed out loud, depleted of our strength but so full of appreciation for the experience. We chased, we hiked, we conquered. Then, we took a breather and ate a huge tumbler of halo-halo (native iced delight) only our cabalen (fellow citizen) could offer.
World Travel Expo 2016 presents Philippines’s biggest travel fair By Gretchen Filart Dublin
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orld travel is set to become even more exciting as the first World Travel Expo 2016 unveils on October 7 at the Convention Center in Pasay City. The three-day travel fair will gather over 120 exhibitors from the local and international travel and hospitality industry, including airlines, hotels and resorts, cruise lines, travel-insurance providers, travel agencies and tastemakers, making it one of the biggest local trade fairs this year. Organized by Ad Asia Conventions and Exhibitions International Corp., the event will create more opportunities for both exhibitors and visitors to leverage the booming tourism sector. Themed “Travel Revolution”, it aims to become a channel that connects global and national travel communities by showcasing industry retailers and organized groups, large-scale businesses and luminaries. Visitors will enjoy exclusive discounts and packages for both local and global destinations, as well as insightful workshops and conferences from tourism organizations where they can learn more about the tourism industry. Product launches, holiday-destination draws and on-site selling of travel products and services, from discounted airline tickets to outdoor gears, are among the highlights. Trade booths will be open from 10 a.m. to 7 p.m. Also in place are prelaunch travel competitions, such as photography contests and travel video montages. Prizes include a Corregidor tour for
two and a three-day, two-night stay in Singapore. “Our goal is to not only provide cheap travel deals to consumers, but also to serve as a marketing platform for individuals and companies in the travel industry. We have partnered with the best in the tourism industry, including businesses and government organizations, to bring exciting activities before and during the event,” Ad Asia Events Digital Marketing Officer Justin Villaseran said. Around 4,000 visitors are expected to attend the pilot expo. Ultimately, it will serve as a tourism-boosting endeavor by engaging more locals and expatriates to explore destinations in the Philippines and beyond. One of the fast-emerging countries in Southeast Asia in terms of tourism, The Philippines recently achieved a record-breaking 2.5 million international tourist arrivals from January to May, according to Department of Tourism (DOT) data, a 13-percent increase from last year. With the World Travel Expo in place, this figure is expected to rise. World Travel Expo is supported by the Tourism Promotions Board Philippines and official. partners Rustan Marketing Corp., Megaworld, and Sogo Hotel. It is cosponsored by Smart, JTB, Golden Phoenix Hotel Manila, Luks Lofts, Eurotel, Uniqlo, and Lindela Travel and Tours. Event partners include Brand Philosophy, Cash Cash Pinoy, City Neon, Multimedia Broadcast Program, BusinessMirror, Lazada, Chase Technologies Corp., and Rapid Cloud.
Tourism&Entertainment BusinessMirror
news@businessmirror.com.ph
Monday, October 3, 2016 A11
Bansaulog: Bansalan’s way of celebration Story & photos by Henrylito D. Tacio
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ention Bansalan, and no one seems to know this small prosperous town. Some may even think of it as a place somewhere in Zamboanga del Norte. Unknowingly, Bansalan is one of the municipalities located in Davao del Sur.
New Clarin Elementary School, the lone elementarylevel participant, joins the street dancing.
Youth dance crews compete in Bansaulog Festival’s folk-dance competition.
Pulsating beats from drum and lyre group delight the crowd in Bansalan.
Homegrown dance team represents Saint Mary’s College of Bansalan.
Among those who were either born or grew up in this town include Serapion Mettilla (the country’s father of bonsai); Jojo Adlawan (a singer who was once part of the London production of Miss Saigon); Dr. Teofredo Esquerra (a flight surgeon who accompanied the Filipinos who conquered Mount Everest); Atty. Israelito Torreon (who was only 36 when he was elected the
president of the Davao del Sur chapter of Integrated Bar of the Philippines); and Evelyn Bautista (who now works at the World Bank in Washington, D.C.). Among those who received national and international recognition include Jay Sonza (a radio and television personality); Salinta Monon (who championed textile weaving and was named Gawad Manlilikha ng Bayan);
Wake up in Dubai or beyond with Emirates’s special rates
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mirates, voted the World’s Best Airline 2016 at the Skytrax World Airline Awards, is offering special rates for travelers from the Philippines to Dubai and beyond from September 19 to 25. Business Class tickets purchased to any of the featured destinations during this promotion are valid for travel from September 26, 2016, to March 31, 2017. For Economy Class, these special fares are applicable for travel to the Americas from September 21, 2016, to March 31, 2017; to Dubai, from September 21 to December 15, 2016; and to other regions, from September 21 to December 31, 2016; and from January 16 to March 15, 2017. E m i r at e s c u r re nt l y o p e r ates 25 weekly flights from the Philippines to Dubai (18 from Manila and seven from Cebu/ Clark). From Manila, Emirates f lies nonstop from the Ninoy Aquino International A ir port to Dubai International Airport. Flight EK 333 departs Manila at 5:40 p.m. and arrives in Dubai at 11:05 p.m. Flight EK 335 departs Manila at 12:20 a.m. and arrives in Dubai at 5:35 a.m. Flight EK 337 departs Manila at 6:40 a.m. and arrives in Dubai at 11:35 a.m. From Emirates’s hub in Dubai, onward connections can be made to over 150 global destinations. Travelers coming from the Visayas-Mindanao region and Northern Luzon can take Emirates’s daily
Dubai-Cebu-Clark-Dubai circular flight. Flight EK 338 departs Mactan-Cebu International Airport at 5:25 p.m. and arrives at Clark International Airport at 6:45 p.m. It then makes its way to Dubai from Clark at 8:20 p.m., arriving in Dubai at 1:25 a.m. the next day. Emirates Skywards members can also take advantage of the frequent-f lyer program’s new Cash+Miles offering, which allows customers to book a seat on any Emirates flight, in any class, and pay with a combination of cash and Skywards Miles, further bringing down the cost of the fare. Emirates flights to and from the Philippine cater to the needs of Filipino travelers with Filipinospeaking cabin crew onboard and inflight cuisine options featuring popular Filipino dishes. Emirates award-winning entertainment system, ice, offers hundreds of channels of audio and visual entertainment, including the latest Hollywood blockbuster and Filipino movies, as well as music, audio books and games. Emirates also offers generous baggage allowance, with 50 kilograms for First Class, 40 kg for Business Class and up to 35 kg for Economy Class passengers. Tickets for these special rates are available for sale from September 19 to 25. For more information about Emirates and your flight, or visit www.emirates.com/ph.
Benjamin Lao (recognized twice by the Department of Agriculture as Outstanding Farmer); and Warlito Laquihon (a recipient of The Outstanding Young Men). Although Harold Ray Watson was born in Mississippi, United States, he came to the Philippines in the 1960s and settled in Bansalan. Together with Filipino counterparts, he conceptualized and developed sustainable farming system that earned him the prestigious Ramon Magsaysay Award—touted to be the Nobel Prize of Asia—for peace and international understanding in 1985. Bansalan used to be a barrio of the municipality of Santa Cruz. When Digos (now the province’s capital and already a city) became a town itself, Bansalan was part of
it. The municipality lies 22 kilometers west of Digos. On June 6, 1952, Bansalan was separated from Digos and under Executive Order 506 became a municipality itself. (In 1957 Matan-ao was created out of the territory of Bansalan. Ten years later, Magsaysay followed suit.) But it was not until Apolonio Ilagan, a captain in the Philippine Constabulary, that the town celebrated its anniversary. On September 18, 1952, Ilagan assumed office the town’s first mayor. So instead of June, the town c e l e b r a t e s i t s a n n i v e r s a r y, called Bansaulog Festival on September 18. Bansaulog comes from two words—bansa from Bansalan and saulog, the local word for celebration.
This year Bansalan celebrated its annual festivity from September 12 to 18. The town is now on its 64th year but the Bansaulog, as a festivity, started only in the last decade. “We wanted something that most people from our town, especially those now living abroad, can remember,” says Geraldine E. Batal, the municipal designate tourism officer. “Thus, Bansaulog came into existence.” The celebration started with Teacher’s Night on September 10, a program at the ABC Gym. It was followed with Agriculture Day on September, 12 where farmers competed against for the biggest and smallest crops from their farms. The Folk Dance Competition took place on September 13 and was held at the town’s ABC Gym. Despite the threat of bombing— as a result of the incident that happened in Davao City a week earlier—people still came to see the competition. “We want to instill among the minds of our youth today that we have our very own dances that have been handed from one generation to another,” explains Bata. “This is our culture. This is what we are and what we will be in the future.” On September 14 the Indigenous People’s Day is observed, where tribal groups living the town are invited and showcased their cul-
ture and arts. On September 15 the search for Mutya ng Bansalan was staged and was followed by Drum and Lyre presentation. The streets became lively and colorful on the 17th, as street dancing was held. It culminated at the ground of Bansalan Central Elementary School. Among those which joined were Nazareth High School, Saint Mary’s College of Bansalan, New Clarin National High School, Pedro Arches National High School, Mabuhay National High School and Saint Therese School of Bansalan. The lone elementary level that joined the street dancing was New Clarin Elementary School. “Bansaulog is truly unique,” said Mark Ryan Ortega, a photographer who has been documenting celebrations like this not only in Mindanao but in other parts of the country as well. “What I like about the street dancing here is that the contingents are homegrown.” “I didn’t expect that people would clapp and cheer as each contingent performed before the showdown arena,” observes Elsa N. Ablayon, a graduate from the University of the Philippines at Los Baños, who accompanied her daughter who was one of the performers of the street dancing. Bansalan has a total land area of only 20,770 hectares, and is subdivided into 25 barangays. Sitting 72 km south of Davao City, Bansalan is very accessible by land transportation. The town is sandwiched by two cities: Kidapawan and Digos. How Bansalan got its name is an interesting stor y in itself. The Provincial Tourism Development Plan shares, “Bansalan got its name from the one simple far mer named Bansalan, who one day dug the earth in search of potable water to quench his thirst. Fortunately, he dug a spring that didn’t only satisfy his thirst but also his other companions. R ain w idened the spring and the constant erosion of soil led to its formation into a creek, and later into a river. Bansalan did not live long. His companions, who were recipients of Bansalan’s labor, named the river after him.”
Cantonese fusion with Chef Raymond Yeung The unique twist at Lung Hin
CHEF Raymond
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UNG HIN continues to provide only the most authentic Cantonese dishes, this time with a fusion of traditional and modern culinary techniques, as it welcomes its new Chinese executive chef, Yeung Waai Hoi, or Chef Raymond. Sharing over 26 years of Chinese culinary experience gained from five-star international hotels and well-known international Chinese restaurants across the Asian region, Chef Raymond is not new to the Philippines. He was previously assigned here for more than four years with renowned restaurant group and international hotel. A proud awardee of Hofex 2009 Hong Kong International Culinary Classic Gold Award, he
showcased his skills in the modern Chinese cuisine challenge hot cooking competition. Chef Raymond’s unique dishes with complex flavors are now being served at Lung Hin, bringing a mixture of traditional and modern and Eastern and Western dishes that showcase the diverse and thrilling world of Chinese cuisine. Discover these dishes starting with a uniquely prepared soup, Chrysanthemum Tofu Matsutake Chicken Consomme. Steamed Lobster with Egg Golden Leaf brings the freshness of seafood for the main dish, as well as Deepfried Squid with Salted Egg Yolk. Top the Cantonese fusion experience with the Crystal Osmanthus Jelly for dessert.
Science Monday
A12 Monday, October 3, 2016
www.businessmirror.com.ph • Editor: Lyn Resurreccion
Scientists: World likely won’t avoid dangerous warming mark
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ASHINGTON—A team of top scientists is telling world leaders to stop congratulating themselves on the Paris Agreement to fight climate change, because if more isn’t done, global temperatures will likely hit dangerous warming levels in about 35 years.
Six scientists, who were leaders in past international climate conferences, joined with the Universal Ecological Fund in Argentina to release a brief report on Thursday, saying that, if more cuts in heat-trapping gases aren’t agreed upon soon, the world will warm by another 1.8 degrees Fahrenheit (1 degree Celsius) by around 2050. That 1.8˚ mark is key because in 2009 world leaders agreed that they wanted to avoid warming of 2˚C (3.6˚F) above pre-industrial levels. Temperatures have already risen about 1˚C (1.8˚F), so that
How the Malitbog banana chips got that perfect crunch
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ea lt h y, c r i s py a n d c ru n c hy— thesekinds of snacks are what most health-conscious people prefer. But when it was still starting, Malitbog Banana Chips was not crunchy. In fact, customers and other stakeholders said the product quality needed to be improved, including its labeling and packaging. The story of Malitbog Banana Chips in Malitbog, Bukidnon, started in 2011 with funding sourced from the Mindanao North Coast Integrated Development Project of the Department of Agriculture and the municipal government of Malitbog. The local government unit (LGU) funded the construction of the building, while the DA funded the purchase of equipment. The LGU started its operation through the effort of a local finance committee. Operations got under way and the banana-chip products became available in the market. However, it did not get a very good feedback. Fortuitously, the Department of Science and Technology’s (DOST) Community Empowerment through Science and Technology (CEST) program was launched in Malitbog, Bukidnon, as pilot site. CEST aims to empower poor and depressed communities through science and technology interventions in health and nutrition, water and sanitation, disaster-risk reduction, climate-change adaptation, basic education and livelihood development. Sample taste tests were conducted during the consultation and presentation of CEST program with local officials and department heads by the DOST Regional Office and Provincial Science and Technology Center (PSTC) in Bukidnon. The tests yielded the same information: The banana chips had a rancid taste and needed packaging and labeling improvement. Also, after the first site assessment of PSTC Bukidnon, it was found that the processing area, equipment and process flow also had to be improved—an implication that the whole process should actually be enhanced. Thus, in 2013, the LGU of Malitbog sought the assistance of the DOST through CEST to upgrade the common service facility for banana-chips processing. Thus, it was upgraded through the acquisition of equipment, such as spiral mixer, vacuum packaging machine, deep fryers, digital weighing scale, refractometer and industrial thermometer. Other interventions included the enhancement training of the banana chips processing including compliance to Good Manufacturing Processes for food safety standards. At present, Malitbog Banana Chips as a brand is making a name in the market through pasalubong centers in Bukidnon and Cagayan de Oro City. Most important, the economic activity in the municipality is moving, employing women from the indigenous Higaonon tribe and providing livelihood for Cardava banana farmers. S&T Media Service
2˚ goal is really about preventing a rise of another degree going forward. Examining the carbon pollution cuts and curbs promised by 190 nations in an agreement made in Paris last December, the scientists said it’s simply not enough. “The pledges are not going to get even close,” said report lead author Sir Robert Watson, a University of East Anglia professor and former World Bank chief scientist who used to be chairman of the United Nations’ Intergovernmental Panel on Climate Change. “If you, governments
of the world, are really serious, you’re going to have to do way, way more.” If carbon pollution continues with just the emission cuts pledged in Paris, the Earth will likely hit the danger mark by 2050, Watson and colleagues calculated, echoing what other researchers have found. They said with just a few more cuts, the danger level might be delayed by 20 years. In Paris, the countries also added a secondary tougher goal of limiting warming to just another 0.9˚F (half a degree Celsius) as an aspiration. There “is no hope of us stabilizing” at that temperature, because the carbon dioxide in the atmosphere already commits the world to hitting that mark, Watson said. Watson added that a few weeks ago he was in Washington at an event with United Nations Secretary-General Ban Ki-moon and former Vice President Al Gore celebrating the accord as a victory. “It struck me that this was naive,” Watson said. “This is a real major challenge to stay even close to 2˚C.”
That 2˚ danger mark is on a continuum with harmful effects already being felt now at lower warming levels, Watson said. But he added: “As you go more and more above 2, the negative effects become more and more pronounced, more and more severe.” The report wasn’t published in a scientific journal. Six outside scientists looked at it for The Associated Press and said the science behind it was sound and so were the conclusions. “It is a good summary of what is common knowledge in the climate-expert community, but not widely appreciated by members of the public and even policymakers,” said Stefan Rahmstorf, head of Earth system analysis at the Potsdam Institute in Germany. “So, indeed, it is a useful reminder notice to the world about what is at stake.” On Tuesday scientists at Climate Interactive in Asheville, North Carolina, who weren’t part of the report ran a computer simulation using pledges from the Paris Agreement and found that dangerous mark arrives around 2051, group codirector Drew Jones said. AP
Agri researchers brush up on analytical techniques
The participants in the training-workshop pose for a souvenir photo with Searca head Dr. Gil C. Saguiguit Jr. (front row, fifth from right).
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orty-eight researchers from agricultural state universities and colleges and from the Dep a r t me nt of A g r ic u lt u re (DA)-Regional Field Offices in Luzon, the Visayas and Mind anao were convened by the Southeast Asian Reg iona l Center for Graduate Study and Research in Agriculture (Searca) for a tra ining-work shop on research methods and analytical techniques in physical, natural and social sciences. The training, held on September 29, was part of the DA-Bureau of Agricultural Research (BA R)-f unded
pro je c t , t it le d “Strengthening Agricultural Research a nd Development towa rd Asean Integration.” It was implemented by Searca, which is headed by Dr. Gil C. Saguiguit Jr. As it celebrates its golden anniversar y this year, Searca is mandated to s t re n g t he n i n s t it ut ion a l capacities toward inclusive and sustainable agricultural and rural development in Southeast Asia. T he DA - B A R h a s b e e n among Searca’s staunchest partners in its research and capacity-building efforts in the Philippines.
‘Rosetta’s long journey with comet 67P has ended T he Rosetta mission to catch up with a speeding comet, land a space probe on it and follow it as it flies past the sun has officially come to an end. Early Friday morning, the European Space Agency’s (ESA’s) Rosetta orbiter committed operational suicide when it deliberately smashed onto the surface of 67P/ Chur yumov-Gerasimenko, the mountain-sized comet that has been its constant companion for the last two years.
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The estimated number of years Rosetta orbiter was flying alongside comet 67P The crash was slow but still fatal. The mission’s lander, Philae, was built with legs, springs and harpoons to help it land on a comet and survive. In contrast, the Rosetta orbiter was designed to fly around 67P, not touch down on the surface. There were no cameras to record Rosetta’s final moments, but ESA engineers said the spacecraft probably bounced a few times given the comet’s low gravity. In the process, it probably kicked up a cloud of dark, dry dust before settling in its final resting place on the smaller of the comet’s two lobes. “At the moment of impact, Rosetta will be crushed,” flight director Andrea Accomazzo said during the mission’s final hours. “It will remain on the comet forever because there is no way to get it off the surface.” But this death dive was not made in vain. Mission planners at ESA put Rosetta to work until the last possible second, programming it to collect high-resolution data from closer to the comet’s surface than ever before. Rosetta was not the first space mission to study a comet, but it was the first to really get to know one. Flying alongside 67P for nearly two years, it was able to observe how the comet evolved
A Screenshot of the image displayed at European Space Agency’s Esoc mission control center showing the static received by the ground station a moment after Rosetta’s radio signal disappeared at 13:19 central european summer time on September 30. The loss of contact marked the end of operations. (Inset) Rosetta’s Osiris narrow-angle camera captured this image of Comet 67P/ChuryumovGerasimenko at 08:18 GMT from an altitude of about 5.8 kilometers during the spacecraft’s final descent. ESA via AP
and changed as it traveled toward the sun and then retreated to the outer solar system. “It’s been a tremendously successful mission,” said Paul Weissman, a comet scientist at the Planetary Science Institute in Tucson, who worked on Rosetta for 20 years. “Our plan was to rendezvous with the comet far from the sun and then watch its activity grow and die back down, and that’s exactly what happened.” The 11 instruments on Rosetta were designed to observe many aspects of the comet. They mapped its physical surface features, sniffed the cloud of gas and dust around its nucleus, analyzed its interaction with the solar wind and used radio waves to probe its interior. Ultimately, scientists hope their study of 67P will reveal clues about the origin of the solar system and the beginning of life on Earth. Researchers say the comet formed 4.6 billion years ago, at the dawn of the solar system. Because it has spent nearly its entire life in a deep freeze, the frozen molecules trapped in its nucleus could offer hints about the composition of the
presolar nebula, from which the sun and all the planets formed. In addition, comets, like 67P, may have brought the molecular building blocks for life to our planet. Rosetta’s travels with 67P began in August 2014, after a convoluted 10-year journey across 4.9 billion
miles of space. At the time of their first encounter, the 2.5-mile-long comet was still in the cold regions of the solar system, 335 million miles from the sun. (To put that in context, the Earth is about 93 million miles from the sun; Jupiter, on average, is 483.8 million
miles away.) Rosetta sent the Philae lander down to the comet’s nucleus in November 2014, making it the first probe to touch a comet and live to tell about it. It famously bounced twice before beaming three days’ worth of data back to scientists on Earth. I n t he mea nt i me, R oset ta continued to accompany 67P as it f lew closer to the sun. Under the orbiter’s watchful eye, the comet grew increasingly more active as the warmth of the sun caused frozen ices in the nucleus to sublimate and turn into gas jets that came shooting off the comet’s surface. ESA scientists repor t that when t he orbiter f irst ap pro ac he d t he come t , it w a s releasing about 300 grams of water vapor per second, t he equivalent of two small glasses of water. By the time the comet reac hed per i hel ion, its c los est approach to the sun, it was spewing up to 300 kilograms of water vapor—enough to fill two bathtubs—ever y second. During this active period, Rosetta had to keep a safe distance of at least 200 miles away so that the outbursts of gas and dust would not interfere with its navigational instruments. The comet has become much less active as it flies away from the sun and out toward the orbit of Jupiter. In the last few weeks, Rosetta’s massive solar panels have been unable to get enough sunlight to power all its instruments at once. Mission engineers knew it wouldn’t be long before Rosetta would lose its ability to function. If you talk to anyone at ESA, you’ll hear that though the operations part of the mission is coming to an end, the Rosetta science has only just begun. There are tens of thousands of observations to comb through, log and make available to researchers around the world. And scientists say they have only barely started to understand how to fit all the pieces of the puzzle together. “If you are in high school now, you could go to university and work on Rosetta data as a science researcher,” said Matt Taylor, Rosetta’s project scientist. “There is enough to go around.” Los Angeles Times/TNS
Green Monday BusinessMirror
BusinessMirror
Editor: Lyn Resurreccion • www.businessmirror.com.ph
Monday, October 3, 2016 A13
Saint Scholastica’s Academy Marikina now a solar school
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aint Scholastica’s Academy-Marikina (SSA M) is now among several private schools in Metro Manila that are harnessing solar energy. After launching its combined 204-kilowatt-peak (kWp) solar photovoltaic (PV) system during switch-on ceremonies recently, SSAM now has the largest solar PV system in Marikina City. It can generate at least 250,000 kilowatt-hours (kWh) and reduce its electricity bill by as much as P19 million every year, based on an average rate of P10 per kWh. The school followed in the footsteps of its sister school in Manila, Saint Scholastica’s College, which installed its solar rooftop in December 2014. This is consistent with the “Benedictine tradition of academic excellence, as well as its social responsibility for the environment,” SSAM grade-school principal Sis. Alexis Lamarroza, OSB, said. “God provides ways and means for people to restore Earth to its former grandeur, and solar technology is one way to achieve such,” Lamarroza said. “The clean, pure energy from the sun will help reduce air and water pollution, cut global warming emission, diversify our power supply and decrease dependence on coal and other fossil fuels,” she explained. “With the sun being the most abundant, accessible source of energy, especially in a tropical country like ours, turning on to the sun is a completely viable energy solution.” The school ’s 102-kWp solar rooftops mounted on each of its two buildings were installed by solar solutions provider Green Heat Corp. A total of 680 solar panels spread over 1,320 square meters of rooftop space were installed on top of SSAM’s newly built sevenstory Saint Scholastica and fourstory Saint Benedictine buildings. Green Heat also installed the solar rooftops of six other schools, including Manuel L. Quezon University in Manila and Saint Paul College in Parañaque, which both have 96-kWp solar PV system. T he grid-connected installation located on its campus in Marikina Heights produces approximately 40 percent of SSAM’s electricity consumption. “Our solar rooftops are part of
the green measures that we have initiated on our campus through our conser vation committee,” SSAM treasurer Sis. Celeste Licas, OSB, said. “This includes the use of LED in our lighting system and inverter air-conditioners to reduce carbon-dioxide emission and subsequently save on our electricity bill,” she said. As a form of green energy, a solar PV system is widely recognized to be efficient and effective and requiring little maintenance. “A place as important as a school deserves the best in energy efficiency,” Green Heat Vice President Edward Antonio said. Antonio said SSAM’s solar rooftops are also power plants capable of generating electricity. “Since SSAM is open during the day when offices and classrooms are being used, it makes good sense to have solar [power] to diversify energy sources, which can save it P19 million every year,” he said. “The savings can be used for school improvements and purchase of more books, among others,” Antonio added. SSAM’s solar PV system has the equivalent of planting 1,250 trees each year, reducing the school’s carbon footprint by as much as 108.5 metric tons of carbon dioxide. Green Heat has registered SSAM’s solar PV system under the government’s net metering program, allowing the school to sell the surplus electricity it produces during weekends, holidays and school breaks back to the grid. Antonio said SSAM is “now a good example in the green movement,” even as more schools turn to solar power as energy source. G r e e n H e a t h o p e s “m o r e s c ho ol s fol lo w s u it a s t he y have t he bu i ld ings to house solar panels,” consistent with its support to the Department of Energ y’s renewable-energ y program encouraging schools to use solar PV systems. The company is currently working on the solar rooftop of Canossa School of Santa Rosa, Laguna. A local solar-power company, Green Heat Corp. specializes in the design and construction of solar PV power systems. Among its milestone projects are the solar rooftops of Asian Development Bank, Asia Brewery Inc., Manila Electric Co. and Wilcon Depot.
Saint Scholastica’s Academy of Marikina (SSAM) launched its 204-kWp solar photovoltaic system that Green Heat installed on the rooftops of the school’s two buildings. Switching on the largest solar-power project in Marikina City are Sis. Lydia Villegas, OSB, subprioress of the Missionary Benedictine Sisters of Manila; Sis. Celeste Licas, OSB, SSAM treasurer; Sis. Alexis Lamarroza, school principal; Marikina Mayor Marcelino Teodoro; lawyer Domingo Fregillana III, representing SSAM board of trustees; Green Heat VP Edward Antonio; and Business Development Officer Constantine Ong. NONOY LACZA
Solar photovoltaic system installed on the rooftop of Saint Scholastica’s Academy of Marikina.
A woman wearing a mask for protection against pollution walks on a pedestrian overhead bridge as office buildings are shrouded with smog in Beijing. AP/Andy Wong
9 in 10 people worldwide live with excessive air pollution
R
OME—The warning is sharp, and the facts alarming: 92 percent of the world’s population live in places where levels exceed recommended limits. And 6.5 million people die annually from air pollution. The warning comes from the leading United Nations agency dealing with health, which rolled out its most detailed profile of the scourge ever in a bid to slash the deadly toll. “Fast action to tackle air pollution can’t come soon enough,” the Geneva-based UN World Health Organization (WHO) top environmental official Maria Neira said on September 27 of the new air-quality model, which includes interactive maps that highlight areas within countries exceeding WHO limits. The world’s population reached 7.35 billion last year, according to UN figures.
example, air quality can also be influenced by dust storms, particularly in regions close to deserts. “The new WHO model shows countries where the air pollution danger spots are, and provides a baseline for monitoring progress in combating it,” Bustreo said. Developed in collaboration w ith the Universit y of Bath, United Kingdom, it represents the WHO’s most detailed outdoor air pollution-related health data ever, based on satellite measurements, air transport models and ground-station monitors for more than 3,000 locations, both rural and urban.
What to do then?
Indoor air pollution as deadly as outdoor exposure
“Solutions exist with sustainable transport in cities, solidwaste management, access to clean household fuels and cook-stoves, as well as renewable energies and industrial emissions reductions,” Dr. Neira added. Nearly 90 percent of the deaths occur in low- and middle-income countries, with nearly two out of three occurring in the Southeast Asia and Western Pacific regions. “Air pollution continues to take a toll on the health of the most vulnerable populations— women, children and the older adults,” WHO Assistant Director General Flavia Bustreo said. “For people to be healthy, they must breathe clean air from their first breath to their last,” she added. Major sources of air pollution include inefficient modes of transport, household fuel and waste burning, coal-fired power plants and industrial activities. But not all air pollution originates from human activity. For
Some 3 million deaths a year are linked to exposure to outdoor air pollution. Indoor air pollution can be just as deadly. In 2012 an estimated 6.5 million deaths (11.6 percent of all global deaths) were associated with indoor and outdoor air pollution together. Some 94 percent of the deaths are due to noncommunicable d iseases—notably card iovascular diseases, stroke, chronic obstructive pulmonary disease and lung cancer. Air pollution also increases the risks for acute respiratory infections. “This new model is a big step forward toward even more confident estimates of the huge global burden of more than 6 million deaths—one in nine of total global deaths— from exposure to indoor and outdoor air pollution,” said Dr. Neira, WHO director, Department of Public Health, Environmental and Social Determinants of Health. The Ambient Air quality
guidelines of WHO limit annual mean exposure to particulate matter with a diameter of less than 2.5 micrometers (PM2.5), such as sulfate, nitrates and black carbon, which penetrate deep into the lungs and cardiovascular system, posing the greatest health risks.
6.5M
The number of people who die annually from air pollution
The Sustainable Development Goals (SDGs) of the 2030 Agenda, adopted at a UN summit in 2015, call for substantially reducing the number of deaths and illnesses from air pollution. The issue of sustainable cities, which is one of the SDGs, will be at the heart of a media and civil society organizations training workshop, organized by Inter Press Service (IPS) and the UN Foundation (UNF) scheduled in Quito, Ecuador, on October 27 and 28. The Quito workshop is part of a series of IPS-UNF training events in two European and one Asian country, all of them taking place in October and November, under the common title: Decoding the Future.
Disconnection between people and the environment
Any way, no region is safe. For instance, in prosperous Europe, air pollution, climate change, unhealthy lifestyles and disconnection between people and the environment are increasingly affecting human health in the pan-European region, according to the latest report by the UN Env ironment Programme (Unep) and the UN Economic Commission in Europe (Unece). T he repor t, which was rele a s e d on Ju ne 8 , c a l l s for greater cooperation and a more integrated approach to tack le the transboundar y cha l lenges in t he pan-European reg ion, which compr ises the 53 coun-
tr ies spanning Europe, the Caucuses and Central Asia, and Israel. Of these challenges, air pollution is the greatest threat with more than 95 percent of the European Union (EU) urban population ex posed to levels above WHO guidelines, according to latest Global Environment Outlook (GEO- 6) assessment released last week by the Nairobi-based Unep and Unece. O ver 50 0,0 0 0 premat ure deaths in the region were attributed to outdoor air quality and 100,000 to indoor air quality in 2012, according to the assessment. Unep and Unece have alerted that an urgent shift from incremental to transformational change will help to reverse some of these indicators. “The GEO-6 assessment for the pan-European region highlights how the transition to an inclusive green economy in the region must be built on resilient ecosystems, sound management of chemicals and clean production systems, and on healthy consumption choices,” said Jan Dusik, head of Unep’s Regional Office for Europe. The report also finds that env ironment a l c ha l lenges in the region have become more systemic and complex, while resilience to these will be affected by megatrends largely outside the region’s control. “This report provides fresh information on the region’s emerging environmental issues and it will help governments shape their future policy,” Unece Executive Secretary Christian Friis Bach said. Other challenges discussed in the assessment include climate change, considered one of the largest threats to human and ecosystem health, and to achieving sustainable development in the pan-European region. “It is also an accelerator for most other environmental risks, with impacts affecting health through floods, heat waves, droughts, reduced agricultural productivity, exacerbated air pollution and allergies and vector, food and waterborne diseases.” IPS
3:03
A14 Monday, October 3, 2016 • Editor: Angel R. Calso
Opinion BusinessMirror
editorial
Peso panic
H
uman beings are an incredibly adaptable species, even though we do not give ourselves much recognition for that trait. In fact, we tend to think of animals as much more capable of adjusting to changes in their environment.
Certainly, migratory birds have figured out how to move thousands of miles to take advantage of the seasons. Bears hibernate during the cold months, something that we all might like to do during the rainy season. However, like all the other animals on Earth, we need time to adjust to changing external conditions. But once we understand what is happening, we usually make the necessary modifications appropriately well. Of course, there are some times we run into problems. Humans were apparently not made for texting, or maybe we just need more time to avoid “Texting Thumb”. The fact that situations change means nothing. It is the potential results of those changes that need to be addressed. It is not that bears will freeze to death when it snows. Look at polar bears living in perpetual ice. It is that the forest bear loses its food source. The response to the situation that the Philippine peso has devalued against the US dollar to a seven-year low should literally be: “So what?” The conventional wisdom is that a weaker peso benefits overseas Filipino workers and also exporters. It is true that Philippine exports increased in 2014, when the peso was weaker at 44.62 to the dollar from 2012’s 41.19. But was a weaker peso the reason? Global economic growth increased by 9.6 percent in 2013 and 2014. Maybe that affected export growth more than the value of the Philippine peso. Overseas workers get more money from a weaker peso, and that should increase consumer spending. In 2014 spending grew by 3.5 percent. But it also increased by the same percentage in 2012, with the peso 7.7 percent stronger. The conventional fear is that a weaker peso will hurt the overall economy. However, that correlation is difficult to make. In 2004 the economy grew by 6.7 percent, when the peso traded at 56.27 against the US dollar. In 2010 the peso was 43.89; the growth was 7.63 percent. In 2011 the peso averaged 43.93; the economy advanced by 3.64 percent. We can economically adapt to changing conditions the same way we do with everything else, as long as the change is relatively gradual. When peso depreciated literally overnight, from 26 to 34 at the start of the Asian financial crisis, hundreds of Philippine companies went out of business. The central bank had artificially controlled the peso rate. When the peso moved from averaging 40.31 in 1999 to 50 in 2000, economic growth grew from 3.08 percent to 4.41 percent. What will the Philippine peso/US dollar exchange rate be at the end of the year or even next year? Who knows and who cares. What we do know is that if market forces and not government manipulation set the rate, there will be a discernible trend. What we need to care about is how we adjust as that trend evolves. Since 2005
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uring the recent trip of President Duterte to Vietnam, he encouraged the Vietnamese businessmen to invest more in the Philippines, and to also import more of our products. Trade Secretary Ramon M. Lopez, who was part of the President’s delegation, said many of our products have great potential in the Vietnamese market. It can be noted that the country’s exports continued to slide in July this year, according to the National Economic and Development Authority (Neda). So the move by Mr. Duterte in his bilateral talks with Vietnam State President Tran Dai Quang could help boost Philippine trade. Because it is very important that the government is able to gain the confidence of new economic partners, Lopez assured the Vietnamese corporations that they will be protected and the Philippine government will provide a positive investment climate for the businessmen. The Philippines, on the other
hand, has more investors in Vietnam. Companies like Universal Robina Corp., San Miguel Corp., Ayala Group, Jollibee, Splash and others have found their markets in Vietnam. Aside from this, our country also imports around 48 percent of our rice requirements from Vietnam. Still, according to the Neda, the country’s revenue from trade fell from $12.2 billion last year to $11.4 billion in July this year. This drop is being attributed to the 13-percent decline in exports and 1.7-percent decline in imports. The former is due to the decreased demand for Philippine products from traditional markets like Japan, China, Hong Kong and the United
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The country’s revenue from trade fell from $12.2 billion last year to $11.4 billion in July this year. This drop is being attributed to the 13-percent decline in exports and 1.7-percent decline in imports. The former is due to the decreased demand for Philippine products from traditional markets like Japan, China, Hong Kong and the United States. Socioeconomic Planning Secretary Ernesto M. Pernia had said the country then needs to expand its presence in nontraditional markets to reduce dependency on traditional markets.
States. Socioeconomic Planning Secretary Ernesto M. Pernia had said the country then needs to expand its presence in nontraditional markets to reduce dependency on
traditional markets. In a similar development, Mexican businesses are also looking at infusing some $2 billion worth of investments to the Philippines. According to the Department of Trade and Industry (DTI), the bulk of the Mexican investments may be placed in the local telecommunications sector. These investments will further strengthen the bilateral commercial ties between the two countries, according to the DTI. Take note that Mexico has always been a strong economic partner of the Philippines, and has, in fact, invested more here compared with other Asean countries. The Philippines, for its part, has, promised to streamline the processes of doing business in the country. In 2015 Mexico was the country’s 28th-largest trading partner, out of 223; 19th-biggest export market, out of 211; and 40th import source, out of 203. It is also the Philippines’s second-biggest Latin-American trading partner. When fresh investments come from at least these two foreign markets, then it will definitely provide various economic opportunities for our country and its people.
Achieving better quality of life through PPPs By Alberto Agra
PPP Lead
Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos Ruben M. Cruz Jr. Angel R. Calso
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Foreign investments help make a robust economy
Continued from A1 PPPs are anchored on several value drivers. The government will enter into collaborative arrangements with the private sector, as against doing projects by themselves, to pursue a policy, address resource scarcity; allow the private sector to introduce innovation; allocate and share risks; and implement projects for better value-for-money. On the part of the private-sector proponents, they need to make revenues for the benefit of their shareholders. What is not expressly factored in this equation is the true north of PPPs. The real purpose of PPPs is better quality of life for the people. The enumerated reasons for PPPs must not be detached from this true north. The people must be at the heart of this development and change strategy.
n DILG LGU P4. The message must not just be inferred or assumed. We may take a cue from the recent policy statement of the Department of the Interior and Local Government (DILG). In DILG Memorandum Circular 120, Series of 2016, issued by incumbent Secretary Ismael D. Sueno, P3 shall be pursued and tagged as P4 or PPP for the People. The message and the policy are clear. The accountability of the government should be measured against this. n Comparative and superlative. PPPs as a transformational vehicle must be geared toward changing the status quo. The now must be compared to the expected future and the future must be better, not just good or so-so. The Pakistan framework provides a succinct description of the superlative state that PPPs must bring about. PPPs are utilized
The people must feel the benefit. According to the dean of Social Sciences of the Ateneo, Dr. Nandy Aldaba, “Development [should be] concretely felt at the personal and local level. Personal development is measured in terms of physical, behavioral and mental changes, while local development is gauged in terms of progress seen in the environment or community where one lives. Thus, inclusive development occurs only when a citizen experiences such tangible changes at the personal and local levels.” for “more services, better services, affordable services and timely services.” “More” and “better” are the key words here. n Ambisyon Natin 2040 as guide. The National Economic and Development Authority conducted a national survey on the aspirations
of the Filipino people. The results show that most Filipinos are not wishing for affluent or rich lives. “In 2040 we will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for our daily needs and unexpected expenses, that we can plan and prepare for our own and our children’s futures. Our families live together in a place of our own, yet we have the freedom to go where we desire, protected and enabled by a clean, efficient and fair government.” n Personal and local levels. The people must feel the benefit. According to the dean of Social Sciences of the Ateneo, Dr. Nandy Aldaba, “Development [should be] concretely felt at the personal and local level. Personal development is measured in terms of physical, behavioral and mental changes, while local development is gauged in terms of progress seen in the environment or community where one lives. Thus, inclusive development occurs only when a citizen experiences such tangible changes at the personal and local levels.” The challenge now is how to measure better quality of life.
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Monday, October 3, 2016 A15
F.AM.I.L.Y. = Father And Building business intelligence through data analytics Mother, I Love You Filbert Tsai
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Atty. Lorna Patajo-Kapunan
legally speaking
Without a family, man, alone in the world, trembles with the cold. — Andre Maurois
E
very child needs a family. Every child deserves to have a family with whom he can share his whole life with. It is where he develops his personality. His family will always be his “wonderwall” in every aspect of his life. To ensure every child his right to a family, Republic Act 10165, otherwise known as the Foster Care Act of 2012, was passed by the Fifteenth Congress on June 11, 2012. It effectively implemented Article XV of the 1987 Constitution, which provides that “the State shall defend the right of children to assistance, including proper care and nutrition, and special protection from all forms of neglect, abuse, cruelty, exploitation or other conditions prejudicial to their development.” As such, it declared as a State policy to provide every neglected, abused, surrendered, dependent, abandoned child or even those who are under sociocultural difficulties or with special needs with an “alternative family” that will provide love and care, as well as opportunities for growth and development. It also recognized that, in most cases, it will be more beneficial to the child if he is under foster care, instead of institutional care. Hence, this law is passed to provide for a foster-care program in the Philippines. Under Section 4 of the law, even those children whose family members are temporarily or permanently unable or unwilling to provide their children with adequate care may be placed under foster care. However, a condition is placed that, in cases where the child is, a (1) victim of sexual, physical, or any other form of abuse or exploitation; or (2) with special needs; or (3) who needs long-term care and close family ties but who cannot be placed for domestic adoption; or (4) under socially difficult circumstances; or (5) who committed a minor offense but is in recognizance, or in custody provision or whose case is dismissed; or (6) who is in need of special protection as assessed by a social worker, the child must have no family willing and capable of caring and providing for him. Otherwise, he cannot be placed under the foster -care program. Anyone can be a foster parent, provided they are qualified under the said law. Priority is given especially to the relatives of the child, since the State presumes that the child will be in good hands if he is under the care and custody of a blood relative. Aliens are also qualified to become foster parents, provided that they satisfy the residency requirement of 12 continuous months. To encourage applicants for foster parents, incentives are provided under the law, particularly treating the foster child as a dependent, thereby qualifying them to avail themselves of the P25,000 additional exemption for payment of income taxes. Notably, foster parents exercise substitute parental authority defined under the Family Code of the Philippines over children under the foster-care program. As the law prohibits the infliction of corporal punishment upon children, the foster care shall only discipline the child in accordance with Article 233 of the Family Code which provides that those exercising special parental authority over a child must apply to the court for the latter’s issuance of an order specifying the measures on disciplining said
Anyone can be a foster parent, provided they are qualified under the said law. Priority is given especially to the relatives of the child, since the State presumes that the child will be in good hands if he is under the care and custody of a blood relative. Aliens are also qualified to become foster parents, provided that they satisfy the residency requirement of 12 continuous months. To encourage applicants for foster parents, incentives are provided under the law, particularly treating the foster child as a dependent, thereby qualifying them to avail themselves of the P25,000 additional exemption for payment of income taxes. child. A foster parent may eventually adopt the child subject to the following conditions: (a) the foster parent is qualified under the Domestic Adoption Act of 1998 or under the Intercountry Adoption Act of 1995; (b) trial custody may be waived, provided that a harmonious relationship has existed between the child and the foster parent; and (c) the procedure under the Domestic Adoption Act of 1998 or Intercountry Adoption Act of 1995 shall govern, as the case may be. The law shall be implemented by the Department of Social Welfare and Development (DSWD), together with an agency, which shall conduct a home-study report on the foster-parent applicant, as well as a child-case study. After these are conducted, the DSWD shall issue a Foster Family Care license, which is renewable every three years unless earlier revoked by the DSWD. Thereafter, matching shall be done, taking into consideration the best interests of the child. The placement of the child shall only be done after a foster-placement authority has been issued. The foster-care placement shall still be supervised by a social worker, whose reports must be submitted to the DSWD. The termination of the fostercare program shall be done by the DSWD upon the recommendation of the agency when (1) the child has been returned to the biological parents; (2) the child has been placed under adoption; (3) the child dies; (4) the foster parents die; (5) the Foster Placement Authority expires; and/or (6) the placement becomes prejudicial to the welfare of the child. Only on the last ground may the foster child have the option to apply with the assistance of a registered social worker for the termination of the foster-care program. With the passage of this law, indeed, the State has afforded every child of his right to have a family. This gives hope to children who would want to grow and be nurtured with love and care. Every child deserves this.
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ata are kept historically for future retrieval and reference in the context of dispute. The development of massive data warehouse allowed better data retention benefiting from the economies of scale. Further, the technological innovations have pushed the boundary of processing speeds to allow massive data sets to be churned to good use.
Businesses have slowly recognized the importance of information technology to joltup their businesses by using objective data sets rather than substantive inputs from industry “experts”. The use of data analytics, while a relatively new concept to most businesses, is now beginning to blossom as a whole new separate industry from professionals with combined competencies in economics, statistics and information technology. Data analytics is currently used by businesses primarily as a tool for assessing the current operational status of the company. The use of massive data sets allowed companies to use a bigger sample size, albeit, a complete population, to analyze the company’s performance at a very granular level, and as a tool for marketbased analytics through metadata accumulated from customer purchase histories. Recent versions of enterpriseresource planning systems have introduced powerful analytics tools within the system, such as allowing companies to forecast minimum order quantities and purchase quantities through
running algorithms in the background, considering the historical sensitivities of these stocks to customer purchase. Further, retail businesses have grown interest in data analytics to perform better business decision in product placements and cash counter operations. While use of data analytics to understand the present condition of the company is prevalent in the current business setting, the use of predictive analytics is one of the expected areas where companies are expected to focus on to gain more value from its high capital investments in data storage and processing capabilities. Data analytics is a rather wide concept. I would generally classify data analytics in business as falling into either accounting analytics, operations analytics or market analytics. Analytics as applied in operations and market analysis are the two most commonly used data analytics in business, since analytics specialists generally have little finance and accounting background. Analytics specialists in the industry generally comes from those with strong IT, statistics and
economics background who are capable of pulling good-quality operational and market-based analytical outputs. Accounting analytics is a rather new branch of data analytics, which I haven’t really seen much in practice. Doing an online search for accounting analytics would result to almost nothing related to data analytics. Current accounting-analytics concepts are primitive and academic/moot. Accounting analytics is presented in the market just as a better term for financial statement analysis and, if marketed by accounting software providers, it is just a dashboard beautifully presented with colourful graphs to show the current financial status of the company. Going back to the context of data analytics, accounting analytics is a branch of data analytics used to analyze the present financial condition of the company, which provides objective evidence of financial health and identifies potential financial red flags through analyzing detailed financial history. However, the power of accounting analytics is on its application to predict the company’s financial future. Current business models have relied heavily on subjective inputs to financial models and budgets, which are based on crude forecasting methods using revenue growth to drive the whole company’s budget a l location. The use of big data would enable the use of extensive historical information to forecast budget information using a statistically sound approach. Data analytics used in business have been briefly introduced above. However, significant risks are involved in these investments, as well. As data-storage require-
The economics of dining as a couple
M
By Megan McArdle | Bloomberg View
arriage counselors tell us that couples frequently tie the knot without discussing the core matters that can cement or sunder their marriage: finances, children, religion. Well, let me add one underdiscussed biggie to the list: restaurant dining. I am eternally astonished to find not only that many couples I know failed to discuss this key area before they marched up to the altar, but also that many of them still have not developed a joint dining strategy even after 10 or 20 years together. This is madness. You are placing undue stress on your relationship, and you are very probably having a suboptimal dining experience, thereby wasting time and money, and missing out on deliciousness. As a romantic economist might put it in a weddingreception toast, couples have the chance to jointly move to a higher utility curve. There are basically four strategies that a couple can practice at a restaurant. Whether you attempt these outside of marriage is between you and your god. These can also be explained in terms of economics. 1. Autarky. T his is when a country is closed to imports or exports, and produces everything it consumes. In the restaurant context, it means that you are each independently deciding on what to eat, with no input from the other person, and then solely consuming what you ordered. Anyone who tries to reach across to sample those delicious looking pommes frites will be stabbed in the hand with a fork. If it is a good marriage, the stabbing will be followed with an apology: “I’m so sorry. I thought you were my soft-shell crab.” An economist will tell you that autarky is terrible. You’re missing gains from trade! When you eat only what you yourself have ordered, your options are limited. And even extremely delicious foodstuffs are subject to diminishing marginal returns: The first bite of your ribeye is mouthwatering. The 20th bite is still good, but you are probably not enjoying it as much as the first bite.
You have gotten acclimated to the taste. Meanwhile, across the table, there is a delightful-looking sole meuniere. Even if you prefer ribeye to sole (and honestly, who doesn’t?), you may well prefer “the first bite of sole meuniere” to “the 20th bite of ribeye,” and your sole-loving dining partner may well feel the same way about your ribeye. If each of you huddles suspiciously over your own entrée, you are enjoying dinner less than you could. Who this strategy is good for: People on weird diets, people with deadly food allergies, people who have already called a divorce lawyer but haven’t yet served the papers. 2. Individual production with trade. Under this model, you both order whatever you want, and allow the other person to take a few bites in exchange for a few bites of their food. This is how the world economy works, and it is much better for dining than autarky. You are reminishing those marginal returns, and moving both of you to a higher utility curve. And yet, you are still leaving gains on the table, so to speak. Say your partner is indifferent between chicken tenders and potato skins as an appetizer. This is, to be sure, somewhat inexplicable; potato skins are obviously superior to chicken tenders. But we will leave your bad romantic choices out of this discussion, and focus on the economics. If your dining partner is genuinely indifferent between the two choices, and you let them choose without saying anything, there is a 50-percent chance that you will end up with a worthless option to consume a few bites of badly fried chicken, rather than a very valuable option to eat a delicious baked-potato section topped
with melted cheese and sour cream. Who this strategy is good for: People on first dates who do not want to appear pushy, people who cannot decide what movie to watch on Netflix without three hours of negotiation. 3. Individual property rights, with option trading. Now we’re moving toward a more centrally planned economy. The menu is individually consulted, and then the two parties state their preferences. If these preferences are strong, then matters proceed much as in the above strategy. However, if indecision is expressed, the trading is opened: “If you get the clam chowder, I’ll get the mushroom crostini, and we can split.” Option trading is usually, but not always, confined to the appetizer course. Any offer can be refused, and a substitute offered—“What if I got the clam chowder, and you got the ham timbales?”—or both parties may reluctantly conclude that no trade is possible, and revert to their original choices. Well done, Team Restaurant! You are now beginning to realize the magnificent benefits of trade. Coordination and cooperation have permitted you to agree on choices that jointly improve utility. However, I must tell you that you are still probably not at the highest valued use of your food dollar. You are almost certainly investing most of your effort in appetizers or shared desserts, which are the minority of your spending, time and consumption. If you want not merely to improve your utility, but to maximize it, then you are going to have to invest more effort in coordination. Who this strategy is good for: People whose tastes in food have only limited overlap, people who have not yet finished reading this column. 4. Full food communism. A communist economy is a terrible idea. A communist dinner table, on the other hand, truly is a bounteous paradise. This is the final flowering of the dining experience, when the
ment increases to accommodate the historical and market-sourced data, there is an increased level of cost for data storage, data processing, data analysis, visualization, inter pretation and, most important—data security. As more and more corporate information are now stored in network and cloud, the necessary security to ensure that sensitive company information is not jeopardized is the most important thing to consider in deploying data analytics. The role of the C-suite is ever expanding with the growth of these technological innovations. Corporate giants have heavily invested in chief information and risk officer positions as companies implement these heavily ITreliant business processes. The risks related to these investments are high, considering the extrinsic and intrinsic costs involved. However, companies ignoring the vital importance of analytics in this IT-reliant industry are bound to lag against the competition. Filbert Tsai is a Filipino financial accounting advisory services executive in the United Kingdom with specialization in transaction accounting in the power and utilities sector. He had provided accounting advice to a significant number of government and financial institutions investing or providing financing structures in the renewable sector in Europe and in developing countries. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa. secretariat.@gmail.com.
barriers wither away and all ordering is centrally planned, with the fruits distributed equally. You will know that this happy moment has arrived when you start telling the waiter “Just put the plates anywhere; we share everything.” It is, to be sure, an advanced technique, which requires a fairly intimate knowledge of your partner, and a certain generosity of spirit. Each couple will have to work out their own exact strategy, but this is roughly how it goes at the McSuderman table. A moment is taken to read over the menu individually, with an eye to both your preferences, and the known preferences of your partner. (If pork belly is on the menu, I do not have to ask Peter whether he wants to order it; he knows the same thing about me and mushrooms.) Each party composes a mental list of the things they want to try. Each party is allowed one “must have,” and may plead for a second on the grounds of extraordinary exigency, such as the presence of both pork cheeks and venison roulade on the same menu that contains the bouillabaisse their partner has been dying to try. The list may be as long as you like, as long as you understand that you may not get everything you suggest. Once the lists are composed, one party opens by stating their interests; the other party strikes anything they absolutely don’t want, and adds in any item that was on their list, but not their partner’s. The first party then proposes a menu, usually of items found on both lists, but sometimes with items substituted if, for example, you jointly named four items of interest, all of them entrées. The second party can accept or propose amendments, and this process continues until you have agreed on a menu. And then…bon appétit. In general, dishes are split scrupulously fairly, but a good dining partner will be careful to ensure that the other person gets the bigger portion of anything they particularly love.
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PEZA REGISTERED P78-B INVESTMENTS IN FIRST NINE MONTHS OF 2016 By Catherine N. Pillas
Wine-Toasting Ceremony for Yuanta Savings Bank (Philippines) Yuanta Financial Holdings subsidiary Yuanta Bank has announced the official name change of its first overseas subsidiary bank. Effective September 26, the former Tong Yang Savings Bank will be known as Yuanta Savings Bank Philippines Inc. The bank’s change of name also represents a new look for its business locations, and a new effort to provide an even better core banking system. With a new brand, a new look, and new “localized” financial services, Yuanta Bank demonstrates its commitment to cultivate the Philippine market. Aside from the local Filipino residents and Korean clients and nationals, Yuanta will also pursue target client groups, including top-quality listed companies and Taiwan-funded enterprises across the Southeast Asian region. Yuanta Bank’s current overseas locations include the subsidiary banks Yuanta Savings Bank (Philippines) and Hanshin Savings Bank of Korea, which will also be renamed as Yuanta Savings Bank (Korea). Yuanta Bank will soon merge with Ta Chong Bank and expand with the addition of a branch location in Hong Kong. On the strength of this “golden triangle” between the Philippines, Korea and Hong Kong, Yuanta Bank will fully realize its international operational synergies. Photo shows Dan T.Y. Chang (fifth from right), president and CEO of Yuanta Commercial Bank Taiwan, leading the wine-toasting rites with Allen Wu (second from left), EVP of Yuanta Commercial Bank Taiwan; Seimon Huang (third from left), president of Taiwan Association; Dr. Gary Song-Huann Lin (fifth from left), Taiwan ambassador; Rocey Shen (second from right), president and CEO of Yuanta Savings Bank Philippines; and other Taiwanese and Korean businessmen at Makati hotel as they welcome guests, Taiwanese and Korean entrepreneurs, and financial-industry peers at Yuanta Savings Bank Head Office on the ground floor of Chatham House, Valero corner Rufino streets, Salcedo Village, Makati City.
Angara files bill seeking to protect rights of taxpayers T
By Butch Fernandez @butchfBM & Jovee Marie N. dela Cruz @joveemarie
he chairman of the Senate Ways and Means Committee said on Sunday he wants to fast-track the passage of a “Taxpayers Bill of Rights” alongside Malacañang’s proposal to impose new taxes.
“While a taxpayer’s duties are wellknown, and which, in fact, he performs every time he buys something with a value-added tax [VAT] in it, more often
than not, he does not fully know what his rights are,” Angara said. Since Malacañang had formally submitted to Congress its proposal to impose new
While a taxpayer’s duties are wellknown, more often than not, he does not fully know what his rights are.”—Angara
taxes, he said the Senate Ways and MeansCommittee will simultaneously push for early enactment of the Taxpayer’s Bill of Rights. He said “taxpayers are not ATMs—automatic taxpaying members of society—who are not entitled to information or to redress See “Angara,” A2
T
@c_pillas29
he Philippine Economic Zone Authority (Peza) has registered P78 billion worth of investments in the first nine months of the year on the back of expansion projects by existing manufacturing firms and the establishment of new economic zones. Peza officer in charge Deputy Director Justo Porifirio Yusingco said the investment-promotion agency approved P1.8 billion in new investments in the agency’s board meeting on Wednesday. “We’re now at P78 billion and, traditionally, in the last quarter it still goes up. Compared to the same period last year, we’re up by 3 percent to 5 percent,” Yusingco said. “The target set by former Peza Director General Lilia B. de Lima is on track,” he affirmed. This renewed confidence of new and existing investors can be credited to the country’s strong economic growth and the continuation of economic policies under the Duterte administration. The Peza official said the investment growth was driven by two big-ticket economic zones, which cost around P1 billion each. One of these new registrants is the P1.1-billion SM Cyberzone in Iloilo. The board also approved three other economic zones, 30 new locator companies and expansion projects by existing locators. Apart from the entry of new locators, which are mostly information technology firms, in new economic zones, a
We’re now at P78 billion and, traditionally, in the last quarter it still goes up. Compared to the same period last year, we’re up by 3 percent to 5 percent.” —Yusingco substantial hike in investments were registered by manufacturing companies undertaking expansions. Meanwhile, Peza is optimistic to hit its 5-percent growth target in investment approvals at end-2016. Yusingco told reporters that, despite the slowdown in investment approvals during the election period, the investment-promotion agency expects to approve more projects toward the end of the year. Yusingco said Peza has made a single approval of P1.8 billion worth of projects in its board meeting on Wednesday. The investment pledges include two new economic zones, as well as projects from the manufacturing and information-technology sectors. He added that Peza investments have created some 75,000 jobs as of July. With reports from PNA
Uncertainty over Philippine President alarms investors
P
resident Duterte’s bloody antidrug war and his foul-mouthed outbursts in defense of the campaign have unnerved foreign investors in one of Asia’s fastest-growing economies. Analysts and businessmen point to uncertainties about Duterte’s policies and flip-flopping pronouncements as largely to blame for foreign selling in the stock market and the peso’s plunge to a sevenyear low, reversing the initial optimism after his June 30 inauguration. Some experts say unpredictability is slowing longer-term foreign investment in the Philippines. Photos and reports in the media of killings of suspected drug dealers and users—more than 3,000 since July 1—have contributed to sagging confidence. “We can all deal with risks. We can put measures in place to provide for risks,” said Guenter Taus, the head of the European Chamber of Commerce of the Philippines. “But uncertainty is a factor that we do not like in business, and that is exactly what we’re experiencing right now because we don’t know where we are heading.” Taus said several companies that had intended to establish operations to the Philippines now prefer to wait and see what happens under Mr. Duterte. He declined to say which companies had changed their plans. He said investors unsure about the Philippines may choose to look at other Southeast Asian countries to gain access to the region’s common market of more than 600 million people. The American Chamber of Commerce of the Philippines said this month that, while the country’s economic fundamentals are strong and its potential high, there is growing concern that President Duterte’s policies and behavior could affect longstanding optimism by American businesses in the Philippines. The chamber said the large number of deaths in the antidrug campaign is harming the Philippines’s image, and that some investors are asking if the drug war “reduces the rule of law.” “In addition, traditionally
excellent bilateral relations between the US and the Philippines have recently been strained by language from Philippine leaders,” the chamber said. Earlier this month, before heading to a regional summit in Lao PDR where he had been scheduled to meet with President Barack Obama, Duterte used the Tagalog phrase for “son of a bitch”, as he told Philippine reporters he wouldn’t accept questions from Obama about extrajudicial killings that have occurred during the drug crackdown. Obama canceled the meeting. After the European Parliament recently called for an end to the drug killings and expressed concern over the scale of deaths, Mr. Duterte hit back with a profane insult and raised a fist with his middle finger thrust out. And this week the President said USPhilippine joint military exercises end this year, though his foreign minister said later that they will continue until 2017, as previously agreed. On several fronts, Mr. Duterte has had an uneasy relationship with Western countries, including the United States, an important treaty ally. He has said he’s charting a foreign policy that is not dependent on the US, and has taken steps to bolster relations with Russia and revive ties with China that had been strained under his predecessor, Benigno S. Aquino III, over territorial conflicts. He said he won’t allow government forces to conduct joint patrols of disputed waters near the South China Sea with foreign powers, apparently scrapping a deal Aquino reached with the US military earlier this year. Duterte has also said he wants US forces out of the southern Philippines, saying minority Muslims there resent the presence of American troops. All of this has raised concerns about a Philippine economy that grew 7 percent in the second quarter and 6.9 percent over the first half of the year compared to the same periods last year—among the fastest rates in the region.
See “President,” A2