Businessmirror october 11, 2016

“When they go low, we go high.”

“Because you’d be in jail.”

—Donald Trump, threatening to jail opponent Hillary Clinton if he wins the presidency, after the Democratic nominee said it is “awfully good that someone with the temperament of Donald Trump is not in charge of the law in our country.” S A9

—Hillary Clinton, taking First Lady Michelle Obama’s advice, ignoring Donald Trump’s attacks on her husband’s infidelities.

The Democratic nominee stayed focused on her message, stressing Trump’s history of sexist and racist remarks.

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Tuesday, October 11, 2016 Vol. 11 No. 367

LOPEZ FINDS ALLY IN MARIANO, WHO VOWS TO UPHOLD CLOAs

Another Duterte official stands in way of miners

M

@jonlmayuga

iners have another Cabinet official to contend with, aside from Environment Secretary Regina Paz L. Lopez.

INSIDE

in avoiding tax, trump is merely a small fry

Agrarian Reform Secretary Rafael V. Mariano said he is bent on upholding the validity of issued certificate of land ownership award (CLOA), even if it would affect mining sites, like in the

BusinessSense BusinessMirror

analysis, ideas and commentary from

E1 Tuesday, October 11, 2016

By Jonathan L. Mayuga

www.businessmirror.com.ph

In AvoIdIng TAx, Trump Is merely

A smAll Fry

case of the Tampakan Copper-Gold Project. Mariano said that, if he could have his way, the Tampakan project will not be able to operate, at least under the Duterte administration.

M a r i a no, a m i l it a nt f a r me r leader and advocate, added that he is not keen on canceling the CLOAs issued within the Tampakan mines in Southern Mindanao.

Before his appointment to the Depar tment of Ag rar ian Refor m (DAR), Mariano was chairman of the Kilusang Magbubukid ng Pilipinas (KMP), a vocal critic of the miningliberalization policy under the past two administrations.

“If there are CLOAs, if the CLOAs are duly registered, beneficiaries are legitimate, if there is no error in the See “Duterte,” A2

BMReports

DonalD Trump, the republican presidential nominee, after speaking about economic policy at the Economic Club of new York at the Waldorf astoria Hotel in new York, September 15, 2016. Damon Winter/the neW York times

By Andrew Ross Sorkin

N

oT paying taxes “makes me smart,” Donald Trump said last week. His surrogates called him “a genius” for his recently revealed tax avoidance strategies.

Well, if they are right, the executives running corporate America are absolute virtuosos.

An exhaustive study being released recently by a group of researchers shows in detail how Fortune 500 companies have managed to shelter trillions of dollars in profits offshore from being taxed. Trump’s efforts pale by comparison. Worse, the companies have managed to hide many of their tax havens completely, in many cases reporting different numbers to different government agencies to obfuscate exactly how they’ve avoided Uncle Sam. And, yes, it is all legal.

The immediate response from many readers may be ire for the companies avoiding taxes—or for Trump. But that’s not the goal of this particular column. In this case,

that kind of thinking may even be counterproductive.

Instead, the study—which notes that 58 Fortune 500 companies would owe $212 billion in additional federal taxes, “equal to the entire state budgets of California, Virginia and Indiana combined,” if they were taxed properly—should be a five-alarm call to voters and lawmakers to finally fix the tax system. If all the attention on Trump’s tax bill (or lack of one) isn’t enough to inspire a complete rewrite of the tax code, this study may be.

The authors of the report, which include the US PIRG Education Fund and Citizens for Tax Justice, combed through the filings of the Fortune 500 for 2015 and found an astonishing 73 percent “maintained subsidiaries in offshore tax havens.”

Maybe it is to be expected. Companies and individuals complain bitterly that taxes are too high and the rules too complicated, but many corporations and the wealthiest members of our society have found ways to make the tax code work for them.

If all the Fortune 500 companies paid taxes on their sheltered profits, the researchers tallied, the government would receive a whopping $717.8-billion windfall. To put that number in context, the 2015 federal budget deficit was $438 billion. However, fixing our corporate tax system alone isn’t the answer to reducing our red ink; it might only be a drop in the bucket given that our total federal debt is nearing $20 trillion.

The researchers reported that Apple holds $214.9 billion offshore and would owe $65.4 billion in taxes if that money came back to United States; Nike holds $10.7 billion offshore and would owe $3.6 billion in US taxes; Goldman Sachs holds $28.6 billion offshore, and the report says the company “reports having 987 subsidiaries in offshore tax havens, 537 of which are in Bermuda despite not operating a single legitimate of-

fice in that country, according to its own website.”

Rather than moralize about whether it is patriotic to pay taxes— which seems to be a rather polarizing question these days—let’s focus on understanding exactly how companies keep money offshore and find an appealing way to bring back that money to help spur our economy and create jobs for those without them and higher incomes for those who do.

It is worth noting that Apple’s recent $14.5-billion tax bill levied by the European Union, which contended that Ireland undertaxed the company, is a good example of money kept offshore to benefit from lower rates. Perhaps it is a twist of irony, but given the European Union’s efforts to collect—which Apple’s chief executive, Tim Cook, called “total political crap”—one question that has emerged is whether US companies may be more inclined to bring money back home rather than risk shifting tax rules in Europe (think Brexit, for example) and elsewhere.

Perhaps not surprisingly, it’s hard to figure out exact numbers for money stored abroad because there is so little

transparency in how offshore profits are reported. So, the first element of making a better tax system is simply creating a more transparent way to report offshore profits so policymakers aren’t in an information vacuum.

The challenge of transparency is exemplified by this finding: “27 companies reported 16,389 total subsidiaries and 2,836 tax haven subsidiaries to the Federal Reserve, while only reporting 2,279 total subsidiaries and only 410 tax haven subsidiaries to the SEC.” How is that possible?

It isn’t because these companies are lying to the SEC (at least, not that we know about). It is because the SEC has been so vague about the definitions of a subsidiary that it’s almost laughable. All agencies should require the same definitions; the Federal Reserve, for example, is much tougher. once we have the actual information, we need to figure out what to do with it. No doubt, companies in the United States—and frankly any business that benefits from our markets—should pay some form of taxes.

(Having said that, there are some economists who argue that corporate

taxes should be very little or nothing at all—assuming that individuals and shareholders then pay more.)

Citizens for Tax Justice advocates a litany of rules to end the deferral of foreign income, stop tax inversions and remove loopholes like inconsistent guidelines that allow companies to tell “one country that a subsidiary is a corporation while telling another country the same entity is a partnership or some other form.”

These are laudable goals. How we resolve the disgraceful patchwork of tax rules and loopholes remains an open question. Democrats want policies that create more revenue, and Republicans want policies that create less revenue in the immediate term (they want lower tax rates and suggest that such rates would spur the economy and therefore ultimately create more revenue).

Whatever the ultimate resolution, whoever ends up being the next president has the chance to be considered a true “genius” if he or she tackles the issue in a meaningful and sensible way.

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any footage of trump’s off-air ‘apprentice’ talk under wraps

DU30’s first 100 days: Citizens note changes

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A higher priority to job creation THE entrepreneur Manny Villar

T

he Philippines will lead growth in East Asia this year, as it continues to defy the weakness in the global economy while benefiting from increased domestic consumption and government spending, according to the World Bank.

In its latest East Asia Pacific Economic Update, which was released last week, the Washington-based lender said among the large East Asian economies, “prospects are strongest in the Philippines”, which is expected to grow by 6.4 percent this year, a significant acceleration from 5.8 percent in 2015. GDP growth in the first half of 2016 stood at 6.9 percent.

Continued on A10

Solons mull over ban on new malls, condos

By Jovee Marie N. dela Cruz

Show

T For Casio, Mr. Duterte’s pronouncement of extending nationwide Davao’s post-9 p.m. ban on boisterous crooning via singing machines has eaten into his pockets. “This has been my bread and butter for the last five years,” he said in Filipino.

The 67-year-old businessman told the BusinessMirror that leasing his two videoke units to his customers—usually relatives, friends, neighbors and

he House Committee on Transportation is eyeing to include in the emergency-power bill a moratorium in the construction of new condominium buildings and shopping malls in Metro Manila, with the leaders of other concerned committees readily agreeing to the proposal.

During the House Committee on Transportation’s hearing on the proposed emergency powers for President Duterte on Monday, Liberal Party Rep. Cesar V. Sarmiento of Catanduanes, the panel chairman, said heavy traffic in the capital may also be attributed to the construction of new condominium and malls.

“If I were to be asked, I hope this moratorium will be approved [as a provision in the emergency-power bill]. As you can see, there has been unabated construction of new condominium and malls, these contribute to the traffic,” Sarmiento said. Party-list Rep. Rodel M. Batocabe of Ako Bicol has asked the committee to empower the traffic czar on the planned moratorium, who will be appointed via the emergency powers.

“We haven’t talked about the population factor when this is one of the causes why we are having traffic problems.

Continued on A2

See “Solons,” A2

D2

getting better Sports BusinessMirror

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AP PHOTO

| Tuesday, OCTOber 11, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana

aFteR three preseason games, James harden has three points-assists double-doubles—the most recent one on sunday in shanghai. AP

Harden’s preseason off to a flying start

P

RESEASON statistics often can be misleading.

That might not be the case with James Harden right now.

After three preseason games, Harden has three pointsassists double-doubles—the most recent one on Sunday in Shanghai, when he had 26 points and 15 assists to help the Houston Rockets beat the New Orleans Pelicans, 123-117, in a National Basketball Association Global Games matchup.

“We’re treating every game of preseason like the regular season in order to build good habits,” Harden said. “We don’t take the preseason lightly” Clearly not.

The Rockets are 3-0 in exhibitions so far this fall, scoring 131, 130 and now 123 points in those games. Harden is averaging 23.3 points and 12 assists in those three games.

And fans in China, where the Rockets are enormously popular anyway—thanks in large part to Yao Ming—have taken to Harden as well, with many sporting fake beards on Sunday to mimic his look.

“Great atmosphere,” Harden said.

They’ll be seeing even more NBA in China this season. NBA Commissioner Adam Silver announced on Sunday an expansion of the NBA’s partnership with BesTV, one that will see up to 1,300 games per season broadcast in China.

“It’s a multimedia partnership that brings the very best in television and technology to the NBA in China,” Silver said.

In California Lou Williams scored 15 consecutive points for Los Angeles in the fourth quarter, doing so in a span of less than three minutes and leading the Lakers to a 124-115 victory over the Denver Nuggets for their second preseason win.

DeAngelo Russell scored 33 and Williams finished with 25 for the Lakers. Jusuf Nurkic had 21 points and grabbed 16 rebounds for Denver, while Danilo Gallinari scored 19. AP

This was what the National Basketball Association wanted all along. The crowd did not cheer every leap and shot, celebrating instead at all the appropriate times. But, oh, how the 15,844 that filled Mercedes-Benz Arena on Sunday did celebrate.

GETTING

Contributor

BETTER

By Jonathan Feigen

S

Houston Chronicle

HANGHAI—As wonderful as that crazy, exhilarating first Rockets’ foray into China had been more than a decade ago, this might have been better.

This was what the National Basketball Association (NBA) wanted all along.

The crowd did not cheer every leap and shot, celebrating instead at all the appropriate times. But, oh, how the 15,844 that filled Mercedes-Benz Arena on Sunday did celebrate.

They were treated to a particularly entertaining show.

The Rockets, with Mandarin characters across the chests of their road uniforms, surged past the New Orleans Pelicans in the final minute to take a 123-117 win as players seemed to relish putting on a show as much as those who watched it.

“The atmosphere was completely different,” Rockets forward KJ McDaniels said. “Every time we seemed to make a shot or a dunk the crowd was extremely loud. It was extremely intense.”

James Harden, serenaded by fans with a Most Valuable Player chant when he went to the line in the first half and again to seal the win with 20.1 seconds left, led the Rockets with 26 points, 15 assists and seven rebounds.

Former Pelicans Eric Gordon and Ryan Anderson combined for 45 points. E’Twaun Moore had 25 pointers for

‘THE HAWK,’ 60 A

in this november 10, 1982, file photo, then-World Boxing association junior-welterweight champion aaron Pryor yells as he trains on the speed bag at his Coconut grove training camp in miami. AP

By Roderick L. Abad

the Los angeles Lakers’ Julius Randle (left) drives against the Denver nuggets’ Kenneth Faried in the first quarter of their preseason game in Ontario, California, on sunday. Denver won, 124-115. AP

ARON PRYOR, the relentless junior welterweight who fought two memorable bouts with Alexis Arguello, died on Sunday. He was 60.

Pryor’s family issued a statement saying the boxer died at his home in Cincinnati after a long battle with heart disease.

Known as “The Hawk,” Pryor was a crowd favorite who fought with a frenetic style, rarely, if ever, taking a step backward. His fights in the early 1980s with Arguello, the great Nicaraguan champion, were both classics that are still talked about in boxing circles.

But Pryor was a troubled champion, and his career would unravel because of an addiction to cocaine.

“He was very unorthodox and could throw punches from all kinds of angles with great hand speed,” said former Associated Press boxing writer Ed Schuyler Jr. “He was a great fighter, it’s too bad he didn’t have more fights.”

Pryor’s widow, Frankie Pryor, said her husband—who would later speak out about the evils of drugs—also had a side most fans didn’t know about.

the Pelicans, while Anthony Davis scored 23 points in 23 minutes before sitting out the fourth quarter.

There were relatively few signs of the Rockets being China’s team—until the fourth quarter when they sought to distract Pelicans shooters at the line and roared when Gordon sank a last-minute “3” to put the Rockets back in front.

Yao Ming was as always conspicuous, but rather than as a conquering hero brought home, he was a reminder in the front row of how the Rockets and the NBA got here.

The old, rickety gym of that first China Games in 2004 had been replaced by an arena that would fit in any NBA city.

The entire endeavor seemed to belong.

As if inspired by the enthusiasm and electricity that put a charge into the arena, the Rockets and Pelicans turned the game into something ordinary—more like a regular-season game than a preseason workout to get ready for something else—and special at the same time.

“We wanted to treat it like that,” Rockets Coach Mike D’Antoni said. “It does help to have the energy of the crowd to get into it. Guys get into it. Both teams played hard for a preseason game. Really good work for our guys.”

They could not have missed how their presence was celebrated. But unlike those early years of the 10 NBA ventures into China, fans reacted not with surprise at the exploits, but with anticipation that came from being far more well-informed than when the NBA first planted its flag here.

The roars began when Anderson or Gordon went up

to shoot, rather than when shots went in. Harden’s drives brought choruses of ooohs before his pass, as if fans were weighing in on his role as playmaker. Cheers were as loud when McDaniels or Clint Capela grabbed a tough offensive rebound as when they threw down alley-oop passes for two-handed dunks.

When Harden fooled New Orleans rookie Buddy Hield into fouling him on a three-pointer, the crowd reacted as if it knew just what Harden was up to before Hield did.

“The fans, they really love the game,” Gordon said. “You could just tell by how passionate they are from when we first played here. It’s great to have a chance to play out here.”

“Aaron was known around the world as ‘The Hawk’ and delighted millions of fans with his aggressive and crowdpleasing boxing style,” she said in a statement announcing his death. “But to our family he was a beloved husband, father, grandfather, brother, uncle and friend.”

Pryor was unbeaten in 31 fights when he and Arguello met in a 140-pound title clash in the Orange Bowl in Miami on November 12, 1982. Arguello was a classic boxer-puncher considered one of the top pound-for-pound fighters, but Pryor would not back off as the two men traded punches for the better part of 14 rounds.

Pryor finally wore Arguello down, stopping him in the 14th round with a flurry of punches. Ring Magazine later picked the bout as the Fight of the Decade.

“It was one of the best fights I’ve ever seen,” Schuyler said.

“I’d put it in the top 5.”

Pryor’s win was marred, though, by questions about a bottle wrapped in black tape that his corner man raised to his lips on several occasions between rounds in the fight. Many in

boxing thought it contained stimulants, but the corner man, Artie Curley, said it was peppermint schnapps.

Pryor would beat Arguello again the next September in Las Vegas, this time stopping him in the 10th round of their scheduled 15-round bout. Arguello went down in the round from a series of punches and declined to get back up.

“Arguello was a great fighter, but he couldn’t handle Pryor,” Schuyler said. “He could have gotten up, but what was the point?”

The second Arguello fight was the pinnacle of Pryor’s career.

He became a heavy cocaine user, and fought only six more times in the next seven years, finishing his career with a record of 39-1 with 35 knockouts.

“I reached out and certain people did not give me their right hand,” Pryor said later of his drug use. “They gave me drugs.”

Pryor was named the “Greatest Jr. Welterweight of the Century” by The Associated Press, and was inducted into the International Boxing Hall of Fame in 1996. He would later travel the world making personal appearances and spreading his antidrug message. AP

I

Changing times

THERE were plenty of other signs this was no ordinary preseason game. The NBA brought in former players Vin Baker, Gary Payton, Kenny Smith, Shane Battier, A.C. Green, Dikembe Mutombo, Mengke Bateer and Yao for the game, along with WNBA star Brianna Stewart and legendary Chinese hurdler Lie Xiang.

Beyond playing with former stars and Hall of Famers in the front row, the relentless enthusiasm of the crowd, cheering every strong move and blocked shot far more heartily than at a typical NBA game, seemed to inspire players.

They traded hard fouls, argued with officials and played with greater intensity than typically seen in exhibitions like this years ago. Times had changed since then, just as the Rockets and NBA hoped they would.

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Part Two

N a country like the Philippines where videoke is a favorite pastime, President Duterte might be out of tune when he announced his plan—even before assuming office in June—that he would implement a national ban on late-night karaoke sessions. And since Filipinos’ fondness for singing to mu-

PESO exchange rates n US 48.3430

sic videos is usually accompanied with alcohol, his crackdown on drinking in public places, likewise, drew flak.

While these pronouncements are considered the usual rhetoric by the Chief Executive, and so nothing official, some businessmen already felt the pinch on their trade. Some entrepreneurs, like Elmer Casio, who runs a videoke-rental business, said they already have incurred losses as the new government turned 100 days old.

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n japan 0.4681 n UK 59.9743 n HK 6.2318 n CHINA 7.2429 n singapore 35.1969 n australia 36.7455 n EU 54.0281 n SAUDI arabia 12.8891

Source: BSP (10 October 2016 )

A2 Tuesday, October 11, 2016

BMReports BusinessMirror

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DU30’s 100 days: Citizens note changes Continued from A1

referred clients—within his place of residence in Barangay 843, Pandacan, Manila, as well as nearby communities, is his only means to support the needs of his three children and four grandchildren since he retired from work two years ago.

Casio, who is a widower and formerly a supervisor in a Valenzuela-based factory, quit his job upon reaching the retirement age in 2014. Using the backpay and other collectibles he received from his employer, the 67-year-old Casio decided to invest in such business.

It requires less maintenance and manpower, he said.

In tune

BEFORE Mr. Duterte assumed power, Casio said he leases his videoke machines on the average of four to six times a week. For

Duterte. . .

Continued from A1

issuance of CLOAs, and if the lands are prime agricultural lands, unless the CLOAs are cancelled, we will uphold their security of tenure,” Mariano said. Mariano added that the conflicting land use is not unique to Tampakan. “There are similar cases. That is why the issue should be resolved through interagency cooperation.

The police should also be involved because in installing farmers, we need their assistance.”

“I already asked the field operation office and legal affairs to call for an interagency dialogue to discuss the issue,” he added.

Agrarian Reform Undersecretary for Legal Affairs Luis Pangulayan said interagency coordination is being observed in resolving issues involving conflicting land-use policies, such as in Tampakan’s case.

He assured that the DAR is coordinating with various agencies to ensure that no rights, whether that of indigenous peoples (IPs) or

Solons. . .

Continued from A1

“I do think we should empower the traffic czar to have a say in land use and development, including the construction of new condominium or malls,” the lawmaker said.

House Committee on Metro Manila Development Chairman and Liberal Party Rep. Winston Castelo of Quezon City said the government should stop the construction of new condominium and malls in Metro Manila.

“Construction of new buildings, especially near crowded or narrow roads, has to stop,” Castelo said.

For his part, Metropolitan Manila Development Authority (MMDA) General Manager Tim Orbos has supported the moratorium plan.

Cur rent ly, Orbos sa id t he MMDA has no authority to demand traffic-impact assessments from condominium and shopping mall developers. “That should be part of what the committee should consider. But right now, we are already requiring shopping malls to submit their traffic-management plans, which must not disagree with our plan,” he said.

Scope

Meanwhile, Sarmiento said the proposed emergency powers will only cover land transportation.

“The Executive branch has simply failed to define the scope of the crisis. [But] the Committee on Transportation found out, on our own initiative, that the traffic crisis we have is only on land transportation,” Sarmiento said. “There is no maritime or aviation crisis to speak of. The crisis is not in our ports and airports, but on the roads support-

a rental fee of P750 per day, he earned around P3,000 to P4,500 for seven days. On a monthly basis, he eked P12,000 to P18,000—just enough, he said, to make both ends meet for his family.

What’s worrying him now is that his sales have already declined even if Mr. Duterte’s pronouncement has not been made into law.

The absence of an official policy, however, would be addressed by a bill recently filed by Rep. Angelina D.L. Tan of the Fourth District of Quezon. Tan’s bill proposes prohibiting the use of karaoke or loud musical instruments and other sound-amplifying equipment beyond 10 p.m.

“Almost a third of my earnings have been lost these days,” Casio said, while citing that some of his regular customers have ceased from renting his machines for fear of getting complaints

from neighbors.

Also, he observed that a handful of them resorted to buying their own karaoke unit. Casio said he believes his former customers did so, since it has become impractical to lease a machine, as they cannot use it overnight unlike before Mr. Duterte was elected President.

“I am a fan of Digong [Duterte’s monicker] and I appreciate the changes he has done so far for our country,” said Casio, who admitted that he voted for him during the national elections. “But this one [videoke ban], I object simply because it affects my business.”

ANOTHER business player complaining to suffering from such stringent regulations is Rosalia Gamboa—owner of Rose Kitchenette and Videoke Bar in Liwasang

Balagtas in Pandacan, Manila.

The 45-year-old entrepreneur, who is also a self-confessed avid supporter of Mr. Duterte, agrees with the President’s proposal that drinking on sidewalks or other public places be eradicated and a liquor ban be implemented starting 1 a.m.

She told the BusinessMirror she also subscribes to the prohibition of videoke singing up to the wee hours of the morning.

“The liquor ban is good if it’s applied to those who drink outside their homes or public areas,” Gamboa said. “We have to prohibit loud karaoke late at night in residential areas because everyone has to [have] a good [night’s] rest.”

Nevertheless, she thinks it will somehow hurt the “nightlife industry” as a whole, considering that most of their customers start to flock establishments, such as hers,

farmers, shall be trampled upon.

“The talks with IPs have started during the previous administration and it is continuing. What we want to make sure is to respect the rights of the farmers and IPs,” he said, adding that Lopez also assured that no agricultural land will be covered by mining.

Mining sites are mostly happening in areas covered by Certificate of Ancestral Domain Titles (CADTs) or covered by claims by various IPs as part of their ancestral lands.

According to Mariano, his agency would initiate an interagency meeting between the DAR, Department of Environment and Natural Resources (DENR), Department of Interior and Local Government (DILG) and the National Commission on Indigenous People (NCIP) to discuss the issue.

The existence of CLOAs issued to farmer-beneficiaries under the Comprehensive Agrarian Reform Program (CARP) within the proposed Tampakan mine site is one of four major issues hounding the $5.9-billion Tampakan copper-gold project.

According to DAR records, the DAR issued the CLOAs in May and July 2008, covering a total of 3,921 hectares in five different barangays in Tampakan, South Cotabato, where the project proponents intend to operate an open-pit mine.

The DENR, led by Lopez, had openly opposed the multibilliondollar mining project because of its potential impact to the environment and the people. Lopez is concerned about the destructive nature of open-pit mining method, with approximately the size of 700 football fields to be affected.

Last month Lopez announced issuing a show-cause order against the project, threatening to cancel its environmental compliance certificate (ECC) for failing to address the CLOA issue.

The Sagittarius Mines Inc. (SMI) had already issued a reply to the show-cause order, and the Mines and Geosciences Bureau (MGB) and the Environmental Management Bureau (EMB) are now coordinating to come up with a decision, Environment Senior Undersecretary Leo L. Jasareno said.

“It is up to the EMB and MGB now,” he said.

To recall, the Mining Industry Coordinating Council (MICC) tasked the DAR, DENR, DILG and NCIP to resolve the issues hounding the Tampakan copper-gold project.

The MICC, mandated to resolve big mining issues, has not yet been convened under the Duterte administration. Tampakan has the world’s largest undeveloped copper-gold deposits.

It straddles four provinces in Southern Mindanao, namely, South Cotabato, Sarangani, Sultan Kudarat and Davao del Sur. Its proponents are the SMI, the holder of the Mineral Processing and Sharing Agreement, and the Australian firm Indophil Resources NL, owned by Alsons Prime Investments Corp. of the Alcantara group.

SMI has so far secured the endorsement of local government units for the project, as mandated by the Philippine Mining Act of 1995.

South Cotobato, which has an existing ban on open-pit mining method, is the only LGU that has not given its consent to the project.

Mine audit

Meanwhile, Jasareno said printing of the audit reports showing the findings and recommendations of the mine-audit teams is causing the delay in the conduct of audit covering all nonmetallic mines.

Jasareno, the designated overall head of the mine audit, said printing of the audit reports for all 41 operating mines and their distribution to mining companies is ongoing. He said they intend to complete the distribution within the month.

“Printing is difficult because the reports are voluminous,” he said. So far, the DENR has copyfurnished the first batch of 10 mining companies issued with suspension orders.

Early this month, Lopez said that, based on the findings and recommendations, 20 other largescale metallic mines face suspension and would be subsequently issued show-cause orders.

Mining companies have been complaining against the impact of the DENR’s announcement, which they said affect investors’ confi-

dence. They said they are still waiting for the official communication from the DENR. Asked how long it would take the DENR to print the documents, he said: “It is ongoing.”

Each report, he said, is about two-inch thick and the DENR is producing seven copies, one each for the offices represented by the audit team and the mining companies.“After printing and distribution of the audit reports, we will proceed with the audit of nonmetallic mines.”

According to Jasareno, the audit covers all 65 nonmetallic mines, including quarry sites.

He said the same audit teams will conduct the audit and expects to do it within a month. “The same process and the same criteria will be used in the conduct of the audit.” Lopez said the ongoing campaign would not spare non-metallic mines and quarry operations, as she vowed to weed out irresponsible mining companies that cause environmental degradation and suffering to people in host communities.

ing such ports and airports.”

Sa r m iento sa id P resident Duterte’s emergency powers will not be implemented in the whole country.

“We also found out that the traffic crisis is not all over the Philippines or in some unknown areas.

The traffic crisis is in Metro Manila, Metro Cebu and maybe in Davao City,” he said.

“We were also able to validate that there is no traffic crisis in the airport and ports in Metro Cebu, like in Metro Manila. And, most important, we were able to find out that, indeed, Metro Cebu’s land-transport system needs to be fixed and there is some truth to it being voted by Waze users as the worst urban area to drive in. Though Metro Manila’s traffic is actually worse, Metro Cebu will definitely be included in the bill this Committee will approve,” Sarmiento added.

Sarmiento also directed the Department of Transportation (DOTr) to submit immediately to Congress its concrete plan for President Duterte’s emergency powers to avoid the delay of the passage of bill addressing traffic woes in the country.

The committee has asked anew the agency to submit to the committee the list of agencies and offices that will be reorganized and the proposed reorganization plan; list of projects to be exempted from public bidding and the proposed negotiation procedure of the agency; list of projects that it wants to be protected from temporary restraining orders (TRO) or preliminary injunction issued by the courts, except the Supreme Court, and list of private subdivision roads that need to be opened to address the traffic crisis.

“But when we received [DOTr] report last week, honestly, we were disappointed. The agency still don’t have reorganization plan, negotiation procedure in mind, and list of projects that it

wants to be protected from TROs,” Sarmiento said.

The committee, he said, will approve the emergency-powers bill before the year ends.

“For our partner transport of-

ficials, we are not doing a blamegame here. We are still committed to support you. We will give you the right powers and strategies that Metro Manila, Metro Cebu and Davao City exactly need,” he said.

“Now, this committee is conduc t i ng we e k long m a r at hon hearings if only to stress the urgency of passing the trafficcrisis bill as soon as possible,” Sarmiento added.

Time cap

late in the evening.

“We should allow private alcohol consumption if inside one’s own house or legal establishments like ours, together with videoke,” Gamboa said.

She said around 70 percent of their revenues usually comes from their bar operation, of which alcoholic drinks and beverage account for more than half of their sales.

With the time cap on drinking and videoke singing, however, Gamboa said she noticed the bar’s income slightly decreased over the last three months.

Less fisticuffs

STILL a believer of President Duterte’s “change is coming” thrust, Gamboa said she remains hopeful that several government policies will also support businesses like hers. For instance, the planned

cut on personal and corporate tax is seen helpful to increase peoples’ disposable income.

“That would be good for my carinderia since my customers will have more budget for their meals.”

Given that most of her patrons are temporary workers as her eatery-cum-bar is near factories, Gamboa also noted the administration’s policy against “contractualization.” She also lauded the President’s hardline stance against drugs, citing the lessened number of cases of fistfight among their customers.

“I cannot deny the fact that before, we used to have customers who were under the influence of drugs and they were mostly the cause of trouble here,” she said. “Luckily, with Duterte’s campaign against illegal drugs, we rarely have such incidents now.” To be continued

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Peza reports growth in exports, employment

T

By Catherine N. Pillas @c_pillas29

he Philippine Economic Zone Authority (Peza) on Monday reported a steady growth in exports and employment in the first eight months of the year, notching an increase of 5 percent and 4 percent, respectively.

The Peza, however, said it will likely keep growth targets in the single-digit territory, as investors,

both foreign and local, are mostly on wa it-and-see mode. At the sidelines of an investment

promotion event on Monday, Pe z a S p ok e s m a n E l me r S a n Pascual said export revenues increased 5 percent from Januar y to August this year over the same period in 2015.

Similarly, employment numbers have been on an uptrend— seeing a growth of 4 percent from January to August.

“Exports from January to August last year amounted to $28.87 billion. In the same period this year, we have $30.316 billion, or an increase of 5 percent,” San Pascual said.

Direct employment registered by the Peza in the same eight months of 2015 stood at 1.236 million workers. From January to

August 2016, there was a growth of 4.7 percent to 1.294 million.

Investment pledges gained by the investment promotion agency from January to September currently stands at P78 billion.

W h i le i nvest ment g row t h has been gradua l, San Pascua l said they are stick ing to the 3-percent to 5-percent increase in investments for 2016 mainly due to the wait-and-see attitude of foreig n investors.

According to the Peza official, the significant manufacturing investments that were put on hold last year due to the uncertainty from the national elections are expected to materialize in the last quarter of 2016.

Tuesday, October 11, 2016

D.O.H. to high Court: Reverse ruling on contraceptive use

By Joel R. San Juan jrsanjuan1573

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H E D e p a r t me nt of Hea lt h (DOH) has a sked t he Supreme Court (SC) to immediately lift the temporary restraining order (TRO) it issued in June 2015 enjoining the government from “procuring, sel ling, distr ibuting, dispensing and administering, advertising and promoting” contraceptive implants.

In a 47-page motion for reconsiderat ion f i led be fore the Court, the DOH, through Solicitor General Jose C. Calida, also sought the reversal of the Court’s decision issued on August 24, ordering the Food and Drug Administration (FDA) to determine whether cert a i n cont race pt ive d r ugs and dev ices are abor tifacients or nonabortifacients.

900 The number of additional maternal deaths every year arising from almost 1 million unintended pregnancies that could have been addressed by the full implementation of the family-planning program

A US Marine from the third Marine Expeditionary Brigade (left) practices soccer while waiting to take part in a live-fire amphibious landing exercise, dubbed Phiblex, on Monday in Crow Valley in Capas, Tarlac. The combat drill, however, maybe the last under President Duterte, who has opposed the war games, partly because they may upset China and because of his disgust over US criticisms of his bloody antidrugs campaign. AP

Duterte’s next victim could be international bondholders

I

t used to be that investing in offshore Philippine dollar bonds was a pretty safe bet.

Buoyed by the ever-strong f low of remittances from workers living overseas, banks in the Southeast Asian nation have become a natural depository for US currency debt. As a result, the spread on the country’s sovereign notes has been far lower than most nations that share the same “BBB-” Fitch credit rating.

T hat ’s c hang ing , however, because of the Philippines’s outspoken newly elected President

Duterte. The countr y’s securities are now the worst performing in JPMorgan’s Asian Credit Index series over the past three months, down 0.55 percent.

If Mr. Duterte continues with his fiery rhetoric and controversial policies, bond investors can expect that premium to erode further, regardless of local dollar support.

Thanks to remittances, liquidity will always be relatively high, but a big slice of demand still comes from international investors, and they’re getting spooked. The trigger for an even deeper shift could

come from credit-rating agencies.

To date, the big three haven’t altered the way they view the nation, largely because President Duterte has committed to continuing the economic reforms begun by his predecessor, Benigno S. Aquino III. Still, Mr. Duterte hasn’t offered much in the way of his own policies so it wouldn’t be too surprising if Moody’s, S&P and Fitch do start to reassess the country’s investmentgrade score.

When it comes to a country’s credit grade, balance sheet matters, but so does politics. History

is awash with situations where sovereign scores were lowered or kept below investment grade because of a nation’s political situation. A little over five years ago, the Philippines was rated junk.

Being relegated to that category again would increase its cost of borrowing, and have a ripple effect on the banking and corporate sectors.

If you believe that would be enough to stop President Duterte from being controversial, then international bond investors have less to fear. If not, their rough trot could continue. Bloomberg Views

FDI advanced 7 percent in July to $503 million

By Bianca Cuaresma @BcuaresmaBM

F

oreign investors showed positive sentiments one m o nt h a f t e r P r e s i d e nt Duterte was sworn into office as funds from the international community were parked in the countr y’s longer-term investment instruments. Foreign direct investments (FDI) to the Philippines registered a total net inf low of $503 million in July this year, rising by 7 percent from the $470-million net inflow for the same month in 2015.

J u l y ’s h i g h e r n e t i n f l o w snapped t he t wo consec ut ive

mont h ly dec l ines in FDI for t he yea r a nd brought t he tot a l seven-yea r c u mu l at ive FDI to $4.695 bi l l ion. T he tot a l FDI inf lows f rom Ja nu a r y to Ju ly is 79.1 percent higher than last yea r’s $2.62 bi l l ion, as ga ins were l a rgely seen f rom across a l l subcomponents of t he FDI. T he Ba ngko Sent ra l ng Pi l ipinas (BSP) sa id t he increase in FDI inf lows was d r iven by “ i nvestor s’ p os it ive out lo ok on t he Ph i l ip pi ne e conomy, reinforced by st rong m ac ro econom ic f u nd a ment a ls.”

For the month, investments in debt instruments kept the FDI afloat in the growth terri-

tory, advancing by 79.4 percent to $417 million for the year. Reinvestment of earnings, meanwhile, dropped 19.5 percent to $63 million, while equity and investment-fund shares declined by 63.6 percent to $86 million during the period.

Equity capital also shrank by 85.5 percent compared to last year’s number, to hit a meager $23 million worth of net inflows for the month.

The BSP said the gross equity capital placements were mainly from Germany, the United States, Singapore, Japan and Korea.

These were mainly invested in real estate, wholesale and retail

trade, manufacturing, financial and insurance and construction activities. In September Japanbased Nomura Global Research said they remain confident of the countr y’s prospects, particularly in its ability to further attract FDI. This is seen as a result of government’s efforts to open up the economy, including measures, such as the liberalization of the local banking system. The strong manufacturing sector and the prospect of lower corporate income-tax rates could also help lure more long-term investments to the Philippines, according to the think tank.

The SC issued the order as it nullified the certification and recertification earlier issued by the agenc y covering 77 contraceptive drugs and implants due to the failure of the DOH to obser ve and comply w ith the basic requirements of due process.

The TRO was issued a year after the SC ruled that the Responsible Parenthood and Reproductive Health Act of 2012 was constitutional.

The Court held that the FDA - cer t i f ied , - proc u red and -administered contraceptive drugs and devices, w it hout t he obser va nce of the basic tenets of due process, w it hout not ice and w it hout public hearing, despite the constant opposition from petitioners A lliance for the Family Foundation Philippines (AFFP) and a certain Maria Concepcion Noche.

In their motion for reconsideration, the DOH, together with the Population Commission (PopCom) and the FDA, argued the ruling could jeopardize the effective methods of the familyplanning program, which is being implemented by them through local government units and civil-society org a n i z at i o n s n at i o n w i d e , and would lead to increased mor t a l it y a nd mor bid it y among women and infants.

“If carried out, the SC decision could result in over 900 additional maternal deaths every year, arising from almost 1 million unintended pregnancies that could have been addressed by the full implementation of the fam-

ily-planning program,” PopCom Executive Director Juan Antonio Perez said. “ Those who opposed the law in the legislative arena are now trying to reverse the judgment of history through backdoor judicial dilator y tactics, but the millions of Filipinos who stand to benefit from the law will surely bring all of this to an end,” Perez added.

W hile the Court r u led to st r uc k dow n t he cer t if icat ions a nd recer t if icat ions and t he d istr ibution of t he quest ioned cont racept ive d r ugs for being v iol at ive of t he const it ut iona l r ight to due process, it, never t he less, rema nded to t he FDA t he pet it ions f i led by A FFP a nd Noc he.

T he Court agreed w ith the petitioners that the FDA should “observe the basic requirements of due process by conducting a hearing, and allowing petitioners to be heard” on the matter.

In light of this, the SC directed the FDA to formulate rules of procedure in the screening, evaluation and approval of all contraceptive drugs and devices that will be used under Republic Act (RA) 10354, otherwise known as the Responsible Parenthood and Reproductive Health Act of 2012.

It should contain, according to the Court, the minimum requirements of due process, such as publication, notice and hearing; allowing interested parties to intervene and strictly follow the standard laid down in the Constitution and RA 10354 as to what constitute allowable contraceptives should be followed, including those which do not harm or destroy life of the unborn from conception/ fertilization; and in weighing evidence, all reasonable doubts should be resolved in favor of the protection and preservation of the right to life of the unborn from conception/fertilization.

On the other hand, the SC tasked the DOH, in coordination with other concerned agencies, to formulate the rules and regulations, which will govern the purchase and distribution of contraceptives covered by the certification from the FDA that said product and supply will not be used as an abortifacient, or a drug or substance that induces abortion.

T he DOH was a lso d irected to come up w it h t he complete a nd cor rect l ist of gover nment reproduct ive hea lt h prog ra ms a nd ser v ices u nder R A 10354, which w ill ser ve as the templ ate for t he complete a nd cor rect infor mat ion st a nd a rd a nd to d ist r ibute t he same to a ll hea lth-care serv ice prov iders covered by t he sa id l aw. T he pet it ioners c l a imed t hat t he use of impl a non, a bir t h- cont rol impl a nt, was aga inst t he spir it of t he reproduct ive hea lt h l aw.

It also accused the DOH of implementing the reproductive-health law “without observance of due process and with grave abuse of discretion amounting to lack or excess of jurisdiction.”

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Vietnam rejects lawsuit by fishermen over fish deaths

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court in central Vietnam rejected lawsuits from hundreds of fishermen seeking compensation from a Taiwanese steel company for losses caused by its release of toxic chemicals that killed a large number of fish and caused one of the country’s worst environmental disasters.

Catholic priest Dang Huu Nam, who helped the fishermen file the lawsuits at a local court in Ha Tinh province, said the court returned all 506 lawsuits citing legal regulations.

He said the fishermen are preparing to appeal the decision.

“I’m not surprised, I was expecting this to happen,” Nam said by telephone from his home province of Nghe An, neiboring Ha Tinh. “The villagers are completing their files to appeal the decision.”

Court officials declined to comment on Monday.

Nguyen Van Thang, chief judge in Ha Tinh province, was quoted by the state-run Law newspaper as saying that the plaintiffs did not provide clear evidence for their losses and that their cases were already covered by a decision by the government on providing compensation to the affected people.

Nam disagreed, saying the court’s citing of legal provisions was wrong and that the plaintiffs from Nghe An province were not covered by the government’s compensation plans.

The factory owned by Formosa Plastics Group acknowledged in June that it was responsible for the pollution that killed hundreds of tons of fish along more than 200 kilometers (125 miles) of coastline in four central provinces and has, since then, paid $500 million in compensation to affected people and for clean up the environment. AP

Thai baht falls with stocks, bonds as King’s condition reported unstable

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hailand’s baht headed for the longest stretch of losses this year, as investors sold the nation’s assets after the royal palace said the king’s condition was unstable.

The benchmark SET Index of shares slumped the most in Asia and the yield on 10-year sovereign bonds climbed to a three-week high after the palace said on Sunday doctors are closely monitoring Bhumibol Adulyadej’s condition. The 88-year-old monarch’s health is closely watched, as he is revered by many for what they say has been his unifying presence during a seven-decade reign.

“Thai King Bhumibol is in an unstable condition, according to a statement from the royal palace,” said Christopher Wong, a foreignexchange strategist at Malayan Banking Bhd. in Singapore. “This could weigh on investor sentiment.”

The baht declined 0.4 percent to 35.040 per dollar as of 10:49 a.m. in Bangkok, according to prices compiled by Bloomberg. It reached a two-month low of 35.080 and is headed for a sixth day of losses, the longest stretch since December 2015.

The SET Index sank 2.4 percent to 1,468.63 after falling as much as 3.6 percent.

The palace had said on October 1 the king’s condition had improved following a lung infection. He has been treated in recent months for hydrocephalus—a condition characterized by increased fluid in the cranium—and undergone a procedure to clear narrowing arteries in his heart.

The yield on 10-year government securities rose six basis points to a

Thai King Bhumibol is in an unstable condition, according to a statement from the royal palace. This could weigh on investor sentiment.”

—Malayan Banking Bhd. three-week high of 2.27 percent, according to data compiled by Bloomberg. The yield on notes due 2022 climbed four basis points to 1.97 percent, the highest since the bonds were sold in July.

The Thai king’s health appears to have deteriorated further, according to royal medical bulletin that says he underwent a procedure to purify his blood amid other physiological complications related to the heart.

A statement issued late on Sunday said doctors performed a hemodialysis on King Bhumibol Adulyadej to purify his blood. It said the doctors also changed a tube that drains

Thailand’s lifestyle-product makers upbeat

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he export prospects of Thailand’s lifestyle products remain promising with estimated growth of about 3.5 percent this year, bucking the country’s tepid export trends.

Supat Sriwannavit, president of Thai Lifestyle Products Federation, said shipments of such items are expected to grow to $2.8 billion in 2016.

The increase will be driven by higher purchases during the yearend festive season and a gradual global economic recovery, he said.

Lifestyle products include furniture, house decorations, artificial flowers, perfume, handicrafts, textiles, fabric decorations, stationery, office supplies, toys and housewares.

Next year exports should see brighter prospects, with growth of 4.5 percent to $3 billion, thanks to a continued global economic recovery, Supat said.

Editor: Max V. de Leon • Tuesday, October 11, 2016 A5

$2.8B

The projected value of Thailand’s lifestyle-product exports this year

“Higher shipments can also be attributed to the successful adjustment of Thai entrepreneurs, focusing on quality of services and products, as well as design,” he said. “The government sector plays a vital part as it promotes and encourages Thai exporters to explore new markets, such as Africa and the Middle East, while maintaining traditional markets, like the US, Japan and EU.” Supat said exporters must focus more on markets in Asean and China.

STILTS PARADE Muslim girls walk on stilts during a

parade part of The Association for International Sport for All (Tafisa) World Sport For All Games 2016 in Jakarta, Indonesia, on Saturday. Tafisa Games is a recreational sports festival held every four years to promote traditional sports and games. AP

Malee Choklumlerd, director— general of the International Trade Promotion Department, said Thai lifestyle item producers should consider niche markets, such as children, the elderly and pet lovers, focusing on design and diversity.

To boost lifestyle-product exports, the department will hold the Bangkok International Gift Fair and Bangkok International Houseware Fair 2016 (BIG + BIH) from October 19 to 23 at Bitec.

The five-day event is expected to generate sales exceeding 1.5 billion baht.

Over 480 companies and 1,300 exhibitors are slated to join the showcase, with 60,000 visitors.

In a related development, Malee said Commerce Minister Apiradi Tantraporn plans to call a meeting with companies from three industries—food, gems and jewellery and automobiles—to finds ways to stimulate exports this year and next. MCT

IN this June 9 file photo, with a portrait of Thailand’s King Bhumibol Adulyadej, people pray outside the Grand Palace during the celebrations, marking the 70th anniversary of his accession to the throne in Bangkok. AP

excess cerebrospinal fluid during a two-and-half-hour procedure.

“The medical team are watching his symptoms and giving treatments carefully because the overall symptoms of his sickness are still not stable,” the statement said.

Previous statements have said the king’s kidneys are not functioning properly.

The world’s longest reigning monarch, who will turn 89 on December 5, has been hospitalized for much of the past decade. Because Bhumibol has been king since 1946, there is great concern about his eventual succession by Crown Prince Vajiralongkorn, who has not earned the same respect as his father.

Sunday’s statement said the hemodialysis procedure and the replacement of the tube were carried out on Saturday.

After that procedure, his blood pressure dropped, which was brought back to normal after he was put on a ventilator and administered medicines.

Early Sunday, the king’s pulse was faster and an inspection found higher levels of acid in the blood, the statement said. An echocardiogram found a sharp drop in blood injected into the lower left chamber of his heart as a result of high blood pressure in the lungs.

Subsequently, medicines were administered to enlarged blood

vessels in the lungs, which led to the improvement of the pulse and blood pressure, it said.

While Bhumibol is a constitutional monarch with no formal political role, he has generally been regarded as Thailand’s unifying figure. However, as his health has deteriorated, his participation in public affairs has sharply declined in recent years.

Concern about succession has been entwined with Thailand’s political turmoil in the past decade, as royalists have sought to ensure that they control the process instead of certain politicians whose fealty to the monarchy they doubt.

Bloomberg News, AP

Taiwan pursues ‘New Southbound Policy’ in Asean

By Recto Mercene @rectomercene

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aiwan reported on Monday that it had launched the “New Southbound Policy” in September to focus on forging long-term comprehensive, multifaceted, two-way, reciprocal and mutually beneficial relations with the Asean and bloc’s dialogue partners.

These include South Asian countries, New Zealand and Australia, which have economic and trade cooperation, personnel exchanges, resource sharing and regional linkages with the region.

“We aim to forge a sense of economic community with these nations to help Taiwan identify new directions and build new momentum for its economic development,” says Dr. Gary Song-Huannlin, the Republic of China (Taiwan) representative to the Philippines during their 10th National Day Celebration at the Sofitel Hotel.

He said the Asia-Pacific region accounts for 30 percent of the world’s area and 60 percent of the world’s population. It enjoys growing influence in global political and economic development.

Song said Taiwan strives to safeguard the status quo of peace and stability in the Taiwan Strait while respecting public opinion and democratic principles, “and 88.9 percent of Taiwanese, enjoying full democracy, are opposed to the unilateral unification [so-called One China] policy.”

He said the Taiwan government will adhere to public opinion and democratic principles, respect historical facts and the existing political foundation, and abide by its Constitution, the act governing relations between the peoples of the Taiwan area and the Mainland area, as well as other related laws and regulations.” Song said the Philippines and Taiwan have been enjoying mutually beneficial close relations.

“The bilateral cooperative ties are wide-ranging, including many areas ranging from trade, investment, industry, technology and science, agricultural, fishery, labor tourism, aviation,

$9.27B The value of the Taiwan-Philippines bilateral trade in 2015

shipping, energy and even weather forecasting, etc.”

Song said in 2015 Taiwan was the Philippines’s fifth-largest trading partner, ninth export market and fourth import source of the Philippines.

“In terms of investment, in 2015, the total recorded Taiwanese investments in the Philippines jumped to P5.46 billion (about $121 million), an 83.4-percent increase—making Taiwan the Philippines’s third-fastest growing investment source.

He added that the Philippines, being Taiwan’s second-largest export partner, shipped $7.45 billion worth of goods. It is also the “11th-largest trading partner of Taiwan in the world, with bilateral trade amounting to $9.27 billion in 2015.”

According to Song, the PhilippineTaiwan partnership is also reflected in the presence of the 135,000 Filipinos are currently working in Taiwan mainly in the information and communications technology sector and optical products.

Aside from the overseas Filipino workers, there are approximately 8,000 young Filipino married couples living in Taiwan. He said some 180,000 Taiwanese tourists visited the Philippines in 2015, an increase of 34.82 percent from last year, making Taiwan the sixth top visitors’ source.

“From January to June this year, Taiwan has already brought 111,184 visitors to the Philippines, an increase of 26.15 percent from last year and among the top 12 source of visitors for the Philippines. Taiwan posted the second-highest growth of tourist arrivals.”

Meanwhile, some 139,214 Filipino tourists visited Taiwan in 2015, an

increase of 1.63 percent.

Song said Taiwan’s economic policy focuses on innovation, employment and equitable distribution, and his government will actively promote five major innovative industries—an Asian silicon valley, smart machinery green energy, bio-medicine and national defense, while developing new agriculture, as well as a circular economy.

These will drive Taiwan’s next wave of industrial growth and help realize the vision of a digital nation, smart island, high-value services sector and nuclear-free homeland, as well as a country marked by energy conservation and carbon emissions reduction. He said Taiwan was ranked first in Asia and No. 51 in the world in the 2016 World Press Freedom Index released by Reporters Without Borders. “In 2015 Taiwan was the 27th-largest economy in the world, ranking 18th in imports, 17th in exports and fifth in foreign-exchanges reserves, which totaled $426 billion at the 2015year-end.”

Song said Taiwan ranks as 15th most competitive economy among the140 economies in the world and fourth in Asia behind Singapore, Japan and Hong Kong in the Global Competitiveness Report 2015-2016 published by the World Economic Forum.

He said Taiwan ranks 11th out of 189 world economies surveyed for the Ease of Doing Business in the 2016 report issued by the World Bank, while it ranks fourth out of 186 economies surveyed in the 2016 Index of Economic Freedom released by the US-based Heritage Foundation.

“Taiwan ranks third out of 50 countries surveyed—behind Singapore and Switzerland—in terms of its overall investment environment in the first quarter of 2016 by the US-based Business Environment Risk Intelligence.

Song said in the Organisation for Economic Co-operation and Development’s Better Life Index of 2016, Taiwan’s living conditions and quality of life are ranked 16th out of the 39 countries, which is higher than Japan (No. 24) and Korea (No. 29).

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China, with economy stable, hands over G-20 stewardship

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hina has turned from a shaky steward to a stalwart of the Group of 20 (G-20).

When China assumed the presidency of the G-20 last December, its economy was faltering, the yuan was besieged by speculators and its stock market was in the midst of an unprecedented rout. The turmoil roiled markets across the world, helping wipe out more than $6 trillion in global equity value in the first two months of 2016.

As central bank governors and finance ministers concluded their gathering in Washington over the weekend, China’s renewed stability contrasted with tepid growth elsewhere and a populist backlash against globalization.

Yet, the lending expansion that’s underpinned growth has also led to a further buildup in debt and fueled a surge in housing prices in major cities.

“Despite its positive contribution to short-term growth, rapid credit expansion, revamped realestate sector driven growth and slow state-ow ned enter prises [SOE] sector reform are raising vulnerabilities,” said Changyong Rhee, the Asia-Pacific director at the International Monetary Fund (IMF), at a briefing in Washington.

The IMF urged the government to cut off support to nonviable SOE. The failure of some pledged reforms to live up to expectations is fueling trade tensions. The European Union (EU) last week imposed tariffs as high as 73.7 percent on two types of steel from China in a bid to curb competition for EU producers. The duties on hot-rolled coil and heavy plates punish Chinese exporters, such as Wuhan Iron and Steel Co., Angang Steel Co. and Hebei Iron and Steel Co., for allegedly selling the goods in the EU below cost, a practice known as dumping.

Changing sentiment

Still, China’s current economic and market stabilization is a sharp

20% The percentage of increase of China’s industrial profits in August

contrast to the fear of a hard landing that gripped markets at the start of 2016.

“I would give them credit” for stabilizing the economy and shaping the global economic agenda at the G-20, said Ding Shuang, head of Greater China economic research at Standard Chartered and a former economist at the IMF, in an interview in Washington. “They’ve achieved quite a lot.”

China’s call for infrastructure spending and structural reforms has been embraced by other policy-makers as a consensus forms that unconventional monetary policies are nearing the end of their effectiveness.

By boosting lending and lifting spending on roads, bridges and railways, authorities helped underpin the industrial sector, even as external trade remains tepid.

Industrial profits surged about 20 percent in August, after falling for much of 2015 and factory prices are close to emerging from more than four years of declines.

The Washington-based IMF’s latest forecasts predict China’s economy will expand 6.6 percent this year and 6.2 percent in 2017, unchanged from earlier projections. By contrast, the IMF lowered its 2016 forecast, for advanced economies to a paltry 1.6 percent.

‘More confidence’

“I have more confidence in the

Chinese Premier Li Keqiang (right) and Portugal’s Prime Minister Antonio Costa talk during a signing ceremony at the Great Hall of the People in Beijing, China, on Sunday. Naohiko Hatta/Pool via AP

stability of China’s economy than before,” Yi Gang, deputy governor of the People’s Bank of China, said at a panel during the IMF meetings.

In the currency market, the yuan has been trading around 6.7 per dollar for the past three months, while unwinding some appreciation against other major currencies. The weakness in the trade-weighted exchange rate helped alleviate some pressure on exporters without triggering any disruption. Declines in foreign reserves have moderated, signaling capital outflow is easing under tighter restrictions.

“They’ve done a better job communicating,” said David Dollar, a senior fellow at the Brookings Institution and former US Treasury attache to Beijing, during a panel discussion in Washington.

By stepping up implementation of capital controls, they’ve thrown “some sand in the wheels” of the outflow trend, he said.

Reform promise

Chinese polic y-ma kers have pledged to deepen econom ic refor ms. Centra l bank Governor Zhou X iaochuan said in a statement that polic y-ma kers w i l l c u rb c red it g row t h a nd have t a ken measu res to cool t he proper t y ma rket. T he gover nment is ca r r y ing out major

o ve r h au l s , i nc lud i n g i mple menting market-based pr icing me c h a n i s m s a nd e x p a nd i n g t he soc i a l sa fet y net to boost demand, Finance Minister Lou Jiwei sa id.

IMF members reiterated their commitment on Sunday to use all policy tools—including monetary, fiscal policies and structural reforms—to boost expansion. They also warned that rising political tensions over free trade could undermine a recovery that’s already sluggish, a theme highlighted at the G-20 summit in Hangzhou, China. Germany will take over the G-20 presidency in December and has begun to lay out a targeted agenda.

China’s presidency of the G-20 also saw it become more integrated into the global financial architecture. Its voting power at the IMF has increased to the third largest after the US and Japan, and the yuan became the world’s fifth reserve currency this month, with its inclusion in the special drawing rights basket.

China is also considering joining the Paris Club, a group of creditors that specializes in loans to governments. All these efforts are “part of a big picture of bringing China to the system,” said Markus Rodlauer, deputy director and mission chief for China at the IMF. Bloomberg News

Modi’s hands tied as Indian villagers decide projects’ fate

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n a small Himalayan village near a wildlife sanctuary in India’s north, 200 families have banded together to decide whether a hydroelectric-power plant slated for their land can go ahead. To the chagrin of Prime Minister Narendra Modi and his government, their answer will be a resounding “no.”

Surrounded by chilgoza, or pine nut trees, Lippa in Himachal Pradesh is only the second known case in India where a court has allowed a community to determine the outcome of a commercial project.

While this is a victory for villagers using the 2006 Forest Rights Act—which says no forestland can be taken for a developmental project without the consent of those affected—experts say it will also lead to the derailment of other major projects as communities push back against land grabs.

Hands tied

The empowerment of villages by the National Green Tribunal is causing further challenge for Modi, who was forced by farmers’ protests to step back from a push last year to allow companies to acquire land in nonforest areas.

While Modi is promoting the ease of doing business in India, he is restrained from overhauling the Forest Rights Act to free up more land for companies. In

the meantime, the opposition has blamed him for leading a government that favors the business elite over the poor.

“There is bound to be more conflict because the government is not resolving the problems and the industry is not keen to look into the genuine demands and needs of people,” said Ritwick Dutta, an environmental lawyer and managing trustee of Legal Initiative for Forest and Environment, who fought on behalf of Lippa villagers in National Green Tribunal. “They are bypassing the law.”

There are no official figures available on the number of industries affected—projects, including mining, coal and pipelines, have either been scrapped or trapped in disputes, as tribals refused to give consent or protest when local governments strip their rights.

The Tribal Affairs Ministry told the Indian Parliament in July that, of the 2,306 projects received over the last three years, 432 were pending environmental clearance.

It is unclear how many are being held back by the act, however, the tribunal has commented on the “magnitude and scale at which hydro projects are being set up in the state of Himachal Pradesh.”

A group of neighboring villages in Odisha were the first to beat the system when the Supreme Court in 2013 awarded power to locals

to decide on a proposal to mine bauxite in Niyamgiri hill. They refused to give the land over to the project, forcing Vedanta Resources Plc. to abandon its plan to source minerals for it alumina refinery plant from the area.

Investments on hold

“A negative impact is visible on the land-acquisition process, and fresh private investments are on hold,” said D.S. Rawat, secretarygeneral of the Associated Chambers of Commerce and Industry of India. “As central and state governments are working hard to attract investments to cater to the development needs, such a regulatory environment is not helping, rather handicapping them.”

The consent clause of the act is a “hurdle in the way of development, as aspirations of one gram sabha or individual may not match the aspirations of the other,” Rawat said, referring to the Hindi term for village council. “Moreover, with this act, obstructionist mentality is being encouraged.”

Forest dwellers account for onefifth of the country’s population and they say their livelihoods are continually threatened by such projects.

“These conflicts occur when bureaucrats and corporates gang up in the name of so-called development and break the law to grab natural resources, causing enor-

mous harm to millions of people,” said Shankar Gopalakrishnan, secretary of Campaign for Survival and Dignity, an alliance of tribals and forest dwellers’ organizations.

While thousands of projects have been executed in violation of the act, it is only the cases in which locals are organized and strong enough to fight in the courts that receive any attention, Gopalakrishnan said. “The way forward to these conflicts is for corporates to respect the law and stop pressuring the government to break the law.”

Following an initial attempt by the Modi government to dilute the law, it now says it is committed for empowerment of tribals.

“We consider the issue of developmental projects and peoples’ rights on case-by-case and placeto-place basis,” Tribal Affairs Minister Jual Oram said, adding the government has no plan to water down the act. In Lippa residents are determined that whenever government officials come to their village to get consent for the hydro-electricity plant, they will reject it. A state-run enterprise is seeking to divert 17.68 hectares of forestland for construction of a 130-megawatt hydroelectric project near the tiny village.

“They should forget about the project,” said Devi Gian Negi, a villager in Lippa. “Our livelihood is more important.” Bloomberg News

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Tuesday, October 11, 2016 • Editor: Lyn Resurreccion

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Drones carrying meds, blood face top challenge in Africa

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A US Army soldier guards a position at Camp Swift, northern Iraq. US troops will be engaged more closely than ever in fighting against Islamic State group militants as they back Iraqi forces in the long-anticipated assault on Mosul. AP/Susannah George

US increases Iraq footprint ahead of Mosul operation

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AMP SWIFT, Iraq—Thirteen years ago, Chase Snow’s father was among the American troops who moved into the Iraqi city of Mosul during the US-led invasion that toppled Saddam Hussein. Now Snow, a US Army specialist, is deployed in Iraq to help in the fight to retake the city from the Islamic State (IS) group.

The assault on Mosul, Iraq’s second-largest city, is bringing American forces into their most significant role in Iraq in years, in terms of numbers and presence on the front lines.

The lead-up to the assault has already brought some US forces into combat with the militants.

Special forces carry out raids a longside Iraqi troops inside IS-held territory around Mosul.

And now as Iraqi forces prepare for the operation to retake the city, those raids have increased in frequency, according to a coalition official, who spoke on condition of anonymity as he was not authorized to brief the media.

The US has also sent Apache helicopters to aid in the Mosul fight, according to the Pentagon, a step that was not taken when Iraqi forces retook the western cities of Ramadi and Fallujah.

The number of US troops in Iraq has steadily grow n over the past two years to now nearly 6,000 service members, up from almost none following the 2011 withdrawal from Iraq.

The latest group, numbering nearly 600, began to deploy in September to Qayara air base,

6,000

The number of US troops in Iraq the facility 30 miles south of Mosul that is to be the main staging ground for the assault on the city. Trucks have been rolling in the base for weeks with supplies and equipment, preparing it so coalition warplanes will be able to operate there.

“You’ve got to look at Mosul as the crown jewel right now,” said Maj. Gen. Gary Volesky, the head of US ground forces in Iraq, regarding the buildup of forces. The deployments have “all been targeted to assist in the Mosul attack.”

Besides the hundreds of special forces, most of the American personnel operate back from the front lines, coordinating coalition air strikes, tracking Iraqi ground troops, sharing intelligence and helping plan operations.

Snow, from Nashville, Tennessee, with the 101st Airborne Division, is advising Iraqi officers

carrying out the Mosul operation.

His father was also with the 101st in Mosul in 2003. Now on Snow’s Iraq deployment, he carries the same American flag his father kept with him on all of his tours and his father’s good luck charm: a Saint Michael prayer card.

“I know my father never thought I would be coming to Iraq,” Snow said US presence at bases closer to Mosul in the lead up to operation is “essential” to the advise-and-assist mission, said US Army Col. Brett Sylvia, the commanding officer at Camp Swift, a small coalition base outside Makhmour, some 73 kilometers southeast of Mosul.

“If you’re not there, then you don’t have a voice,” Sylvia said, standing in front of the bank of televisions and desktop monitors that he says constitutes the forward edge of the battle for his men.

As of last week, there were 4,565 US troops in Iraq, according to the Pentagon. That doesn’t include another 1,500 troops considered there “on temporary duty,” whose number changes daily, according to the US officials US troop levels in Iraq peaked at 157,800 during the 2008 surge under then-President George W. Bush, according to the Pentagon. More than 140,000 US troops were in Iraq when President Barack Obama took office in 2009.

Obama drew down the forces until the complete withdrawal of late 2011 removed all combat troops from the country, leaving behind only a few hundred US trainers, mainly civilians, to assist Iraqi security forces.

US forces began returning after IS overran Mosul in the summer of 2014 and blitzed across much of northern, central and western Iraq, joining it to territory it holds in Syria.

Weeks later, President Barack Obama announced the start of the air campaign against the IS. At the time, he underlined that he will not allow the US “to be dragged into fighting another war in Iraq.”

But the US role has steadily grown as Iraqi and Kurdish forces continue to rely heavily on coalition airpower and support in taking back the territory the militant group overran in 2014.

Over the past year, three American service members have been killed by IS in Iraq, revealing the increasingly active role of US forces in a fight the Pentagon initially refused to describe as combat.

In October 2015 Master Sgt. Joshua Wheeler was killed as he and dozens of other US special forces participated in a raid alongside Iraqi Kurdish forces to free IS-held prisoners.

At the time, Defense Secretary Ash Carter said it hadn’t been part of the plan for US forces to engage in combat during that raid and that Wheeler had “rushed to help” when the Kurdish fighters he was with came under attack.

Months later, Marine Staff Sgt. Louis Cardin was killed when IS fighters attacked a fire base near Camp Swift.

By the time of the third American death—Navy SEAL Charles Keating, who was killed in May— Carter immediately described it as a combat death. “He was in a firefight and he died in combat,” he said.

Carter noted that while the coalition’s overall approach is to enable local forces, “that doesn’t mean we aren’t going to do any fighting at all.”

Iraqi commanders say despite months of training, their men are still almost entirely dependent on coalition airpower and intelligence to retake territory. AP

German police detain Syrian in alleged bomb plot

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ERLIN—German police said early on Monday they have detained a 22-year-old Syrian man who was the subject of a nationwide hunt and is believed to have been preparing a bomb attack.

Jaber Albakr was detained overnight in the eastern city of Leipzig, police in the eastern state of Saxony tweeted. They were not immediately reachable for further details.

Albakr, from the Damascus area of Syria, escaped the authorities on Saturday during a raid of his apartment in nearby Chemnitz. Investigators said they found “several hundred grams” of a volatile explosive hidden in the apartment, enough

to cause significant damage.

The weekend raid came after Saxony police were given a tip from Germany’s domestic intelligence service that Albakr may be planning an attack. He had been on the agency’s radar, but police said over the weekend that it was not clear for how long.

On Saturday morning, as police prepared to raid the apartment building, Albakr was observed leaving the premises. The police fired a warning shot but were unable to stop him. Experts are trying to determine whether the explosives they found in the apartment were the same ones used in

the deadly November 13 attacks in Paris and the March 22 attacks in Brussels. The explosives used in those attacks are known as triacetone triperoxide (TATP).

TATP has been used in many attacks over the years, and is favored by violent extremists because it’s fairly easy to make and detonate.

The explosives were destroyed on Saturday in a controlled detonation by bomb-squad experts in a pit dug outside the five-story apartment building because they were considered too dangerous to transport.

German media have reported that Albakr is believed to be con-

nected to Islamic extremist groups, but Saxony police have not commented on his possible motive or the bomb plot’s target.

Germany has been on edge since two attacks this summer claimed by the Islamic State group in which multiple people were injured and both assailants died. Two other attacks unrelated to Islamic extremism, including a deadly mall shooting in Munich, have also contributed to fears.

During the manhunt, federal police had increased security around the country, particularly around “critical infrastructure” like train stations and airports. AP

OHANNESBURG—At first, the drone took some explaining.

Anxious villagers buzzed with rumors of a new blood-sucking thing that would fly above their homes. Witchcraft, some said.

The truth was more practical: A United Nations project would explore whether a small unmanned aerial vehicle (UAV) could deliver HIV test samples more efficiently than land transport in rural Malawi. Once understanding dawned and work began, young students and their teachers would spill out of the nearby school, cheering, each time they heard the drone approaching. “It was very exciting,” United Nations Children’s Fund (Unicef ) official Judith Sherman said.

As drones quickly pick up momentum around the world in everything from military strikes to pizza delivery, Africa, the continent with some of the most entrenched humanitarian crises, hopes the technology will bring progress.

This second-largest continent, with harsh landscapes of desert and rain forest and extremes of rainy seasons and drought, is burdened with what the World Bank has called “the worst infrastructure endowment of any developing region today.”

Rural highways, often unpaved, disintegrate. In many countries, access to electricity has actually declined. Taking to the air to soar over such challenges, much as Africa embraced mobile phones to bypass often dismal landline service, is a tempting goal.

Those trying out drones for humanitarian uses in Africa warn that the technology is no quick fix, but several new projects are exploring what can be achieved.

The highest-profile one yet begins this week in Rwanda, as the government and US company Zipline launch a drone network to deliver blood supplies and medicines to remote hospitals and clinics. Even in one of Africa’s smallest countries, such deliveries can take weeks by land. With drones, it will take hours.

The speed and limited space of drones have focused aid groups and businesses on how to deliver small, sensitive and potentially life-saving cargo. Earlier this year, a partnership was announced between Zipline and the Global Alliance for Vaccines and

Immunization. Off Africa’s eastern coast in Madagascar, another US company, Vayu, has completed drone flights to deliver blood and stool samples from rural villages with support from the US Agency for International Development.

Africa has certain benefits for such projects, said Sid Rupani, who from his South Africa office studies how drones could be used effectively in supply chains. His US-based employer, Llamasoft, has run a virtual pilot for Zipline in Tanzania.

“It’s not crowded airspace. Not many urban areas to deal with,” Rupani said. Already, drones are being used in parts of the continent as visual aids in mapping and antipoaching.

Drones also face multiple challenges. Some models are limited in range or need frequent recharging. If they crash, retrieval in remote areas can be difficult.

Some governments are wary of the technology as a possible invasion of their sovereignty, or they have no regulations in place.

Even aid workers have reservations. In a survey of workers in 61 countries released last month by the Humanitarian UAV Network and other groups, the majority saw drones as positive, but 22 percent did not.

A top concern was that people on the ground would think they were under attack.

“Whether we like it or not, UAVs are confused with weaponized drones,” one Congo aid worker told the survey, pointing out the use of drones by the UN peacekeeping mission there.

Cost is another issue. The United Nations’ test early this year in Malawi with the help of US company Matternet found that using motorcycles was cheaper as they could carry other cargo, said Sherman, Unicef’s HIV and AIDS chief there.

But she still sees drones as “a leapfrog technology that has great potential, some we might not have thought of yet.”

Aid organizations are pushing for new breakthroughs. The Netherlands-based Wings for Aid is working on a drone prototype to carry more and go farther: Up to 100 kilograms of cargo could be delivered to several points within 500 kilometers, said Wesley Kreft, director of business development and innovation. AP

Syria extremist group joins al-Qaeda affiliate

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EIRUT—An extremist group embroiled in infighting with one of the largest Syrian rebel groups pledged allegiance to al-Qaeda-linked militants in Syria on Sunday, a move that threatens to deepen divisions in the already disparate insurgency.

The extremist group Jund alAqsa has been battling the powerful Ahrar al-Sham group in northern Syria for days, after the latter accused it of ambushing its leaders. Others said the fighting was triggered by the ultraconservative Ahrar al-Sham that attacked positions of the extremist Jund al-Aqsa group in several places.

The bloody infighting left a number of Ahrar al-Sham members dead and also stalled an offensive led by Jund al-Aqsa against government troops in the central Hama province.

Scores of Syrian rebel factions rallied behind Ahrar al-Sham, accusing Jund al-Aqsa of espousing extremist ideologies and seeking to dominate other rebel groups.

In various statements, rebel factions accused Jund al-Aqsa of serving the extremist Islamic State militants, who are at odds with all Syrian insurgents, including the al-Qaeda-linked Fatah al-Sham Front. On Sunday

Fatah al-Sham Front announced Jund al-Aqsa would join its ranks “to stop the bloodshed.”

The handwritten declaration was signed by the Fatah al-Sham’s leader Abu Mohammed al-Golani and his local commander of Jund al-Aqsa, Abu Diab al-Sarmini.

“It is good news,” said Abu Dardaa al-Shami, a Jund al-Aqsa member. The declaration is expected to put an immediate end to the infighting because Jund al-Aqsa will now enjoy the protection of the powerful Fatah al-Sham Front.

But the Syrian Observatory for Human Rights reported intense fighting after the declaration between Jund al-aqsa and Ahrar alsham in the northern province of Idlib.

The declaration has also drawn criticism from other rebel groups, however, who see the move as divisive, providing cover for an extremist group. Charles Lister, a researcher who has focused on the al-Qaeda affiliate, said the move constituted a “huge risk” for the Front, risking alienating other rebel groups.

Spokesman for Ahrar al-Sham Ahmed Karali said his group was not consulted about the move and vowed his group would continue its fight against Jund al-Aqsa. AP

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Tuesday, October 11, 2016

A9

Trump, Clinton trade charges, insults

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AINT LOUIS—In a bitter debate filled with fire and insult, Hillary Clinton declared that Donald Trump’s vulgar comments about women reveal “exactly who he is” and prove his unsuitability to be president.

Firing back, he accused her of attacking women involved in Bill Clinton’s extramarital affairs and promised she would “be in jail” if he were president.

Trump, who entered Sunday night’s debate desperate to steady his floundering campaign, unleashed a barrage of attacks and continually interrupted Clinton.

He repeatedly called her a “liar,” labeled her the “devil” and contended she had “tremendous hate in her heart.”

On one substantive matter, he acknowledged for the first time that he had paid no federal income taxes for many years.

The debate was the culmination of a stunning stretch in the race for the White House, which began with the release of a new video in which Trump is heard bragging about how his fame allowed him to “do anything” to women. Many Republicans rushed to revoke their support, with some calling for him to drop out of the race.

Bill Clinton’s abuse of women

Answering for his words for the first time, Trump denied that he had ever kissed and grabbed women without their consent. He said repeatedly that his words in 2005 were merely “locker-room talk” and paled in comparison to what he called Bill Clinton’s abuse of women.

“She should be ashamed of herself,” Trump declared. Ahead of the debate, the businessman met with three women who accused the former president of sexual harassment and even rape, then invited them to sit in the debate hall.

Bill Clinton never faced any criminal charges in relation to the allegations, and a lawsuit over an alleged rape was dismissed. He did settle a lawsuit with one of the women who claimed harassment.

On the debate stage, Clinton did not respond directly to Trump’s accusations about her husband or her own role, but

Rolling his eyes, Trump said, “Now she’s blaming the late, great Abraham Lincoln.”

NBC suspends Billy Bush

$2,500 The amount paid to a sexualassault victim who is critical of Hillary Clinton by a political action committee founded

by Trump ally Roger Stone

was blistering in her condemnation of his predator y comments about women in the tape released on Friday.

“I think it’s clear to anyone who heard him that it represents exactly who he is,” she said, adding that she did not believe Trump had the “fitness to serve” as commander in chief.

Trump’s witness vs Clinton was paid

A sexual-assault victim who is critical of Hillary Clinton and who appeared alongside Donald Trump before Sunday night’s debate was paid $2,500 by a political action committee founded

by Trump ally Roger Stone.

The Arkansas woman, Kathy Shelton, was sexually assaulted at age 12 and was the victim in a 1975 case in which Clinton was appointed to represent her then-41-year-old attacker, Thomas Alfred Taylor. Shelton has accused Clinton of crossing ethical bounds in the case, and over the past few months, Shelton has given TV and video interviews slamming Clinton.

Shelton’s case has been extensively cited in conservative media as evidence that Clinton, the Democratic nominee for president, does not have the best interests of women at heart.

The May payment to Shelton by the Committee to Restore America’s Greatness PAC, founded by Stone, was described as “contract labor” in campaign

Republican presidential nominee Donald Trump listens to Democratic presidential nominee Hillary Clinton during the second presidential debate at Washington University in Saint Louis on Sunday. AP/John Locher

finance reports filed with the Federal Election Commission.

Asked by The Associated Press (AP) about the reason for the payment, Stone said in an e-mail that Shelton “was extensively interviewed on video about her experience with Hillary Clinton and was paid for her time.” Shelton did not respond to a written request for comment left at her home in recent weeks by an AP reporter.

repeatedly dancing around questions about how he would replace President Barack Obama’s healthcare law, a measure he has vowed to replace.

But he leveled several charges against Clinton that will likely energize his supporters, including saying she should have been criminally charged for her controversial e-mail practices at the State Department.

No hand shake at start of debate

Disagree with Pence on Syria

The second debate was a town-hall format, with several undecided voters sitting on stage with the candidates. The voters, all from the Saint Louis area, were selected

by Gallup. The tension between Trump and Clinton was palpable from the start of their 90-minute debate, the second time they have faced off in the presidential campaign. They did not shake hands as they met at center stage.

Trump, who is several inches taller than Clinton, stood close beh i nd her a s she a nswered questions from the voters. At other times, he paced the stage, repeatedly interrupting her and criticizing the moderators.

Struggled to articulate policy proposals

Trump struggled at times to articulate detailed policy proposals,

In a rare public break with his running mate, Trump made clear that he did not agree with Mike Pence on how to deal with wartorn Syria. Last week Pence said the US military should be ready to strike Syrian military targets that are under the command of President Bashar al-Assad.

The threat of military action against the Russia-backed Assad government marks a departure from Trump’s preference for a focus on Islamic State targets.

Trump Said: “He and I haven’t spoken and I disagree.”

Struggling campaign

Trump’s campaign was already struggling before the new video was released, due in part to his uneven performance in the first presidential debate. Many Republicans saw Sunday’s showdown as his last best chance to salvage his campaign.

It wa s u nc lea r whet her Trump’s performance did anything to expand his support beyond his core backers. He did repeatedly cast Clinton as a career politician who had accomplished little during her years in Washington and would be incapable of bringing about change, one of his strongest argument in a campaign that has highlighted American’s deep frustration.

“With her, it’s all talk and no action,” Trump said.

WikiLeaks on Hillary

T h e ne w re v e l at io n s a b out Trump overshadowed potentially damaging revelations about Clinton’s paid speeches to Wall Street firms. E-mails released

by WikiLeaks last week showed Clinton told a group that it’s acceptable for a president to project differing positions in public and private.

Asked in the debate whether that’s “two-faced,” Clinton pointed to Abraham Lincoln, saying he did whatever he could to get 13th Amendment passed, allowing emancipation of the slaves, by lawmakers who did not support African-American equality.

“I was making the point it is hard sometimes to get the Congress to do what you want them to do. That was a great display of presidential leadership.”

The political firestorm that preceded the debate was sparked by a video obtained and released on Friday by The Washington Post and NBC News.

In the video, Trump, who was married to his current wife at the time, is heard describing attempts to have sex with a married woman.

He also brags to Billy Bush of Access Hollywood about women letting him kiss them and grab their genitals because he is famous.

NBC said on Sunday that it had indefinitely suspended Bush, now a Today show personality, for his role in the crude conversation with Trump.

Trump used the revelations as an opening to make good on his repeated promises to throw Bill Clinton’s sexual history into the center of his campaign against his wife. Less than two hours before the debate, he brazenly met publicly with several women who have accused Bill Clinton of unwanted sexual advances and even rape.

Meeting with Bill Clinton’s victims

Trump refused to answer questions from reporters about his own aggressive sexual remarks about women during the meeting in a hotel conference room with Shelton, Paula Jones, Juanita Broaddrick and Kathleen Willey.

Broaddrick, a former Arkansas nursing-home administrator, first claimed 17 years ago that Bill Clinton raped her during a meeting in Little Rock in 1978.

Her lawsuit against him was dismissed in 2001 and criminal charges were never filed. Clinton has denied the allegations.

In t he heated debate’s f inal moments, the candidates brief ly put aside their animosity when asked by a voter if they respected anything about each other.

Clinton said she respected Trump’s children, calling them “incredibly able and devoted.”

Trump, as if pulling a line directly from the Clinton campaig n, ca l led his Democratic opponent a “ fighter.”

“She doesn’t quit, she doesn’t give up,” he said. “I respect that.” AP

Aid arrives, but desperation grows in Haiti’s cut-off towns J

EREMIE, Haiti—Helicopters are ferrying in food and medicine to devastated southwestern Haiti, but almost a week after Hurricane Matthew’s assault, life here is still far from normal and desperation is growing in communities where aid has yet to arrive.

Power is still out, water and food are scarce, and officials say that young men in villages along the road between the hard-hit cities of Les Cayes and Jeremie are putting up blockades of rocks and broken branches to halt convoys of vehicles bringing relief supplies.

“They are seeing these convoys coming through with supplies and they aren’t stopping. They are hungry and thirsty and some are getting angry,” said Dony Saint Germain, an official with El Shaddai Ministries International.

A convoy carrying food, water and medications was attacked by gunmen in a remote valley where there had been a bad mudslide, said Frednel Kedler, the coordinator for the Civil Protection Agency in Grand-Anse department. He said authorities would try to reach marooned and desperate communities west of Jeremie on Monday.

Throughout Haiti’s southwestern peninsula, people were digging

themselves out from the wreckage of the storm, which killed hundreds, destroyed tens of thousands of houses, left at least 350,000 people in need assistance and raised concerns of a surge in cholera cases.

Guillaume Silvera, a senior official with the Civil Protection Agency in storm-blasted GrandAnse, which includes Jeremie, said at least 522 deaths were confirmed there alone—not including people in several remote communities still marooned by collapsed roads and bridges. The National Civil Protection headquarters in Port-au-Prince, meanwhile, said its official count for the whole country was 336, which included 191 deaths in Grand-Anse.

In the seaside community of Port Salut, teacher Joseph Jean Moren stood on his neighbor’s porch and gestured at a pile of mud-caked mattresses, clothes and books along with the remains of a concrete foundation. “That was my home,” the 43-year-old said.

The house had been about 200 meters from the ocean on the night of the storm. He and his wife and six children had gone to his neighbor’s house, which had a higher foundation. The storm surge brought in massive waves of

Residents pray at a church that was destroyed by Hurricane Matthew in Jeremie, Haiti, on Sunday. AP/Dieu Nalio Chery

saltwater, wiping out their house as they watched over the course of about four hours.

People in Port Salut and Les Cayes said little to no aid had reached them by Sunday. Besides food and water, they need clothing and, especially, shoes, because many have cut their feet or stepped on old nails because so much debris is scattered about.

“I lost everything. See what I have on? Somebody gave it to me,” said Merlaine Chere in Port Salut.

She showed off a wound from stepping on a nail and said she had

been denied treatment at a local hospital because it demanded a $150 payment she didn’t have.

The desperation comes as international relief efforts ramp up.

In Jeremie, a city near the tip of Haiti’s southwest peninsula, the sound of hammering could be heard on nearly every street as people patched their roofs as best as they could. On one corner, Jameson Pierre was mixing cement and making them into blocks. The 22-year-old whose family was stuck in an emergency shelter, saw at least one bright side.

“There will be lots and lots of jobs since so many homes were knocked down. I’ve been working for the last three days straight,” he said. He said he was getting about a dollar a day.

The first three of five cargo planes of humanitarian aid from the United States have arrived at Port-au-Prince’s airport. They were carrying 480 metric tons of relief supplies, including 20,000 hygiene kits, 18,000 sets of kitchen utensils for cooking, 40,000 blankets and 500 rolls of plastic sheeting.

The airstrip in Jeremie is unable to accommodate large cargo planes, so relief was being ferried to the devastated city by helicopter. Three of nine US helicopters had arrived in Jeremie by Sunday, bringing rice and cooking oil, among other things.

“I lost everything I own in this hurricane. I just came here to get some help,” said subsistence farmer Markus Bagard, one of roughly 200 Haitians standing outside the airstrip watching the helicopters be unloaded.

Concern was growing over an increase in cholera cases following widespread flooding unleashed by Matthew. An ongoing cholera outbreak has already killed roughly

10,000 people and sickened more than 800,000 since 2010.

Maria Sofia Sanon, a health worker overseeing the open-air cholera treatment center in a corner of Jeremie’s main hospital, said they were ill-equipped to deal with patients. The area was strewn with broken tree branches, and a group of young mothers sat outside holding up the arms of their glassy-eyed children being rehydrated via IVs. “They’re not supposed to be in the sun, but we have no more beds,” Sanon said.

People in Les Cayes and Port Salut said little to no aid has reached them. Fisherman Dominique Pomper said the mayor came to distribute some rice, but that was it.

Among other things, he said people here need water. The ocean has intruded into their wells and made their own supplies undrinkable.

Pomper said he tried to stay at home with his family during the storm, but they eventually fled as the water rushed into their house.

The 61-year-old said it was the worst night of his life, but that he would never leave his seaside village. “We are fishermen here, our job is the water. We can’t run away from the water,” he said. AP

A10 Tuesday, October 11, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Applause for Gina Lopez

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hen the big miners expressed confidence that it would be easy for them to meet the conditions given by the Department of Environment and Natural Resources for them to avoid getting padlocked, the soundness of Secretary Regina Paz L. Lopez’s mining audit was proven on many fronts.

First, it showed that Lopez’s demands for “responsible mining” were reasonable after all. According to Ronald Recidoro, vice president for Legal and Policy of the Chamber of Mines of the Philippines (COMP), the one-page letters from the environment department to members detailing grounds for suspension often listed administrative matters, ranging from “small violations” of the mining act to insufficient tree-planting.

With this, OceanaGold President and CEO Mick Wilkes said: “I am highly confident that our Didipio operations will continue to operate without interruption.” Nickel Asia President Gerard Brimo commented: “We remain confident that Hinatuan Mining Corp.’s operation will not be suspended.” Now, perhaps using the principle of estoppel, the miners can no longer challenge Lopez’s mining audit.

Second, these statements from the miners also proved that Lopez is not just out to stop all mining operations in the country—just the unscrupulous ones. So mining investors—if they really do not have foul intentions—have no reason to fear the country’s top environment protector.

This is much just like President Duterte’s “Oplan Tokhang,” or even the now household initials EJK (extra-judicial killings).

Law-abiding citizens that have no connection whatsoever with the illegal-drugs trade will not fear getting “slaughtered” by Mr. Duterte’s alleged “death squad”.

Related to this is the next important point in Lopez’s campaign—the mining industry really needs to be purged of bad eggs, not by guns, but by a mining audit with stringent criteria.

The COMP has been saying the operations of its members have complied with international certification standards; yet, about three-quarters of the mining sites fell short in the audit, with 20 mines facing suspension on top of the 10 already halted.

Fourth, and again related to this, Lopez was proven right in saying there should be a better way of gauging the operations of miners, probably through the TEV, or the total economic valuation, scheme. “We will monetize the benefits from mining. Then we will monetize the destruction…land, water, [impact to] health,” Lopez said. “If the cost outweighs the benefits, it follows that the project should be scrapped.”

Of course, miners would say this is another form of changing the rules in the middle of the game. But again, if you’re aboveboard on all fronts, why fear scrutiny in whatever manner.

Indeed, mining is not just about money, taxes, revenues, exports, salaries and progress. More important, it’s about the lives of people in the host communities and the next generation of Filipinos that would inherit what would be left of the mined-out areas. For ensuring this does not escape the consciousness of all stakeholders, Lopez deserves a round of applause.

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Manny B. Villar

THE Entrepreneur Continued from A1

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N the past several years, the Philippines has been hailed as one of the best-performing economies in Asia. That’s the bright side of economic growth; the not-so-bright side is the failure to translate fast growth into jobs, which means the benefits from economic gains are not being felt by many Filipinos.

In fairness, the country’s unemployment rate went down to 5.4 percent in July, compared with 6.5 percent in the same month in 2015, according to the latest Labor Force Survey (LFS). Underemployment rate stood at 17.3 percent, down from 21.0 percent a year ago.

Nice at first glance, but the unemployment rate as of July still translates to more than 2.33 million members of the labor force without jobs, while the underemployment rate translates to more than 7.09 million people working part time, or who are still looking for additional employment.

Growth, if it is to be really meaningful to the people, should be accompanied by the creation of job opportunities. This is called inclusive growth, and I’m glad that the new

administration is giving top priority on activities that will spread the benefits of a growing economy, instead of focusing too much attention on the government’s balance sheet.

The World Bank’s latest economic update points to an area that can generate a lot of employment, given additional prodding or support. According to the report, the manufacturing sector in the Philippines is already operating at near full capacity based on their average capacity utilization rate of 84 percent as of July.

The World Bank points out that the capacity constraints may limit growth in the manufacturing sector unless investments are made to expand production capacities.

According to the report, 11 out of 20 major manufacturing industries

Growth, if it is to be really meaningful to the people, should be accompanied by the creation of job opportunities. This is called inclusive growth, and I’m glad that the new administration is giving top priority on activities that will spread the benefits of a growing economy, instead of focusing too much attention on the government’s balance sheet. in the Philippines were operating at capacity rates of 80 percent or higher as of July 2016.

Capacity utilization is expected to continue rising given the continuing growth of the manufacturing industries. In July the manufacturing sector grew by 10 percent, mainly due to higher production of machinery, wood and wood products, transport equipment, basic metals, rubber and plastic products and tobacco products.

The Nikkei Philippines Manufacturing Purchasing Manager’s Index (PMI), which tracks the performance of the manufacturing sector, outpaced growth in other Southeast Asian countries as it registered 57.5 in September, up from 55.3 percent in August. According to Nikkei, it was the highest monthly PMI reading for the Philippines since data collection for the local manufacturing sector began in January.

Politics first, then the economics John Mangun

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos

Online Editor Social Media Editor

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

A higher priority to job creation

OUTSIDE THE BOX

I

t is a nasty world out there in almost any direction you look.

The Middle East is a nightmare. The press and the media like to explain the focal point as the “four-year civil war in Syria”. That is like calling a bloody bank robbery gone wrong as an “attempted unauthorized withdrawal”.

Without going into the complicated back-story, the bottom line is that Russian President Vladimir Putin controls the narrative and the war. The best the United States can do is to have its Secretary of State—John Kerry—utter meaningless threats that Russia should be charged with “war crimes and crimes against humanity”.

Since the partition of British India in 1947 and creation of India and Pakistan, the two countries have been involved in four wars and countless

border skirmishes. The latest flareup began following an attack on an Indian army base by suicide bombers infiltrating from Pakistan that left 19 Indian soldiers dead. The Indian military responded, as it always does, with a counterattack.

But this is 2016 and the game has changed. This time Pakistani Defense Minister Muhammad Asif said, “We haven’t kept the [nuclear] devices that we have just as showpieces…if our safety is threatened, we will annihilate them [India]”.

The list goes on. Ethiopia has declared a state of emergency after months of protests against the government. A Saudi-led coalition air strike hit a funeral hall in Yemen, killing over 140 civilians and wounding 525 in one of the deadliest attacks of the country’s civil war. Speaking of Yemen, a US Navy guided missile destroyer was targeted on Sunday in a failed missile attack from territory in Yemen controlled by Iran-aligned Houthi rebels.

Russia has moved nuclear-capable missiles near the Polish border. The Iskander missiles sent to Kaliningrad, a Russian enclave on the Baltic Sea, are within range of major Western cities, including Berlin.

Of course, we are used to never ending reports like these and the Institute for Economics and Peace through its most recent Global Peace Index says the world has never been more peaceful except for the Middle East. However, that may disguise the reality. The world was also at “peace” just before World War II. Further, it is not the open warfare that is troubling. It is all the little “thorns in the

Alex Gill of IHS Markit, the entity that compiles the data for Nikkei, said the domestic manufacturing sector “looks set to grow in coming months.” For its part, the World Bank said the latest PMI reading meant “solid prospects” for the manufacturing sector.

The continuing growth and the bright prospects for the manufacturing sector merit continuing support. In addition, manufacturing is also a labor-intensive industry, so promoting it means promoting employment.

Based on the latest LFS, workers in the industry sector accounted for 17.8 percent of total employment as of July. Among the subsectors that compose the industry sector, the manufacturing industry accounted for 46.4 percent of total employment, second only to construction, which accounted for 48.1 percent.

So, let’s continue to support the growth of the manufacturing sector, which does not only contribute to GDP growth, but also creates a lot of employment in the process.

In fact, let’s also boost construction, the largest employer in the industry sector, as well as other activities labor-intensive industries, to achieve economic growth that is not limited to GDP numbers.

To be continued For comments, e-mail mbv.secretariat@ gmail.com or visit www.mannyvillar.com.ph.

neck” that show the true situation.

Where exactly is all this “peace” that the Global Peace Index is seeing? Russia and its allies versus the world. Maybe the worst two presidential candidates in US history. Britain leaving the European Union. The US/China/Japan/Philippines trying to figure out what is going on in Southeast Asia. This is all a part of the political upheaval and chaos that the world is facing.

But as I have said before, the “politics” will be followed in 2018 with economic upheaval and that is what we need to be prepared for. The typhoon is coming and you cannot forecast the consequences with accuracy this far out. Look at Philippine politics as an example. Did anyone foresee one year ago the issues that would be dominating the front page of the newspapers today? It will be the same with the economics.

E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

Opinion BusinessMirror

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Tuesday, October 11, 2016 A11

Puzzled about Republicans Financing elderly health care and Trump? Game theory helps

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By Tyler Cowen | Bloomberg View

ow did the Republican Party end up in such a mess? Their presidential candidate is being pressured to pull out of the race, and now there is a chance they will lose control of both houses of Congress. “Poor judgment” is a good start at an answer, but a bit of what economists call “game theory” can help put some structure on that explanation.

The first question many people have been asking is why it took so many Republicans so long to condemn Donald Trump. After all, a pattern of racism and sexism from the candidate had been in place for a long time, and on the public record.

Game theory suggests some simple pointers as to why Trump’s previous record wasn’t enough of a danger sign to induce a rebellion. As Trump won more primaries and approached the nomination, there were strong pressures on Republicans to endorse him or at least not oppose him. Supporting the party choice was seen as the path to donations, approval from Trump voters and appointments and access in a possible Trump administration. A lot of Republicans yielded to this pressure. Some of those who did not perhaps had no political future in any case.

Once most of the party is onboard, it is hard to stand alone in opposition. John Kasich and Jeb Bush, who did not endorse Trump, seemed to become irrelevant on the national scene, and Ted Cruz, who only endorsed Trump recently, was seeing falling approval ratings.

So the disgruntled Republicans were sitting around waiting for signs of rebellion from the other Republicans. The 2006 videotape that emerged on Friday, in which Trump bragged crudely about groping women, wasn’t so much news about Trump as it quickly became news about the willingness of other Republicans to jump ship. Republican women in Congress and politicians with large Mormon constituencies were some of the first to rescind their endorsements, and then it became evident that the public and party responses to the rebels were pretty positive. More and more Republicans joined the chorus of criticism and a bandwagon effect intensified quite rapidly.

That’s much like the way creditors desert a potentially insolvent business and in doing so ensure its insolvency. Think of Ernest Hemingway’s description of going broke: “Gradually and then suddenly.”

Of course, given that such a political rebellion has occurred, it would have been better for Republicans to have done it sooner, say at or before their July convention, when an alternative to Trump would have been easier to nominate and get on the ballot. But collective-action problems worked against the Republicans much as they work against North Korean generals who might wish to fight against Kim Jong Un. They know they’ll lose their lives if the others do not promptly follow suit.

Right now, another collective-

Game theory suggests some simple pointers as to why Trump’s previous record wasn’t enough of a danger sign to induce a rebellion.

As Trump won more primaries and approached the nomination, there were strong pressures on Republicans to endorse him or at least not oppose him. Supporting the party choice was seen as the path to donations, approval from Trump voters and appointments, and access in a possible Trump administration. A lot of Republicans yielded to this pressure. action problem may be damning the Republicans to a worse fate yet. If the Trump candidacy has no chance of winning or holding close, Republican turnout may collapse, thereby endangering party control of many lower political offices.

Republican turnout and, thus, electoral success might be helped if all the Republicans simply pretended that the Trump gaffe hadn’t happened. But politicians often look to their own self-interest. After Trump appears unacceptable enough in the eyes of enough relevant voters, political candidates and other party members will seek to distance themselves from him so they can try to rebuild their reputations once Trump is no longer on the ballot. You might say those individuals are finally doing the right thing, but under another reading a lot of them are acting in their personal self-interest yet again, and again to the detriment of the Republican Party (though, perhaps, not the American citizenry).

In other words, the Republicans have been on the wrong side of gametheory logic twice, first in delaying their opposition and then later in enacting it. Those are hardly examples of getting Adam Smith’s “invisible hand” metaphor to work in their favor. And might the collective-action disasters be upped yet another notch? Imagine if a more formal coup is attempted against Trump. There are plenty of debates over what is possible this late in the election cycle, but it seems hard to pull off an effective switch in candidates without the consent of Trump himself, if it is possible at all.

Thus, some Republicans might first try to tear Trump down and then dangle some attractive options if he leaves the scene. (“How about a new business partnership?”) What might be the incentive of a possibly selfish, profit-maximizing Trump?

Well, in the interests of getting an even better deal, he might not go immediately and quietly into the night.

Edgardo J. Angara

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n December 2015 the World Bank reported that the East Asia and Pacific (EAP) region—home to some 211 million elderly or one-third of the world’s population aged 65 years and above—is aging faster than any other region in the world today.

Such rapid aging is unprecedented. It took France 115 years to transition from a “young” to an “old” society—a point where seniors comprised at least 14 percent of the population. The United States took 69 years; the Russian Federation, 50; and the United Kingdom, 45.

In contrast, the World Bank estimates this transition will only take 15 years in Vietnam; 20 in Lao PDR, Malaysia and Indonesia; and 25 in Timor Leste, Mongolia, Myanmar and Cambodia. Only the Philippines (30 years) and Papua New Guinea (40 years)—with their comparatively younger populations—appear to be taking slightly longer.

Societal aging at this fast rate poses significant risks to an economy’s

public finances and health-care system, especially when aging is associated with increased morbidity and risks for noncommunicable diseases (NCDs), like dementia and diabetes.

A recent report by the Asia, Pacific Risk Center (APRC) estimated that 14 Asia-Pacific economies— Japan, Hong Kong, Australia, New Zealand, Singapore, South Korea, Taiwan, China, Thailand, Vietnam, Malaysia, India, Indonesia and the Philippines—will incur a cumulative $20 trillion in elderly health-care expenditures between 2015 and 2030.

That amount is equivalent to the combined 2015 GDP of the 14 economies and represents half of the group’s projected health-care expenditures for the said period. It points

Duterte, a genuine nationalist Cecilio T. Arillo

database

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T is not really surprising if President Duterte hates some misguided Americans, because he has a mind of a genuine nationalist who always put the interest of the country at heart.

A keen observer of history, Mr. Duterte is in the same mold as the authentic nationalist of the past like Sen. Claro M. Recto, industrialist Salvador Araneta, Harvard-trained lawyer-economist Alejandro Lichauco, economist Dr. Emmanuel Yap and noted historian-writer Renato Constantino, to cite a few, who incessantly quarreled with some misguided Americans for good reasons.

For instance, Araneta strongly denounced some US officials for blocking the industrialization policy of the country after uncovering the existence of the Dodds Report.

He explained the failure of the country to industrialize, thus: “The indifferent economic development of the country...was due to America’s policy toward Japan and the Philippines. This policy was the result of the Dodds Report, which President Truman accepted and which had as its objective to make Japan the industrial workshop of Asia and the Philippines a mere supplier of raw materials.”

Araneta bitterly continued: “We do not argue against the wisdom of providing Japan with the means to rehabilitate herself and allowed to become an industrial country once again, although this was contrary

to the prior recommendation of a post-war planning committee headed by US Treasury Secretary Henry Morgenthau Jr., a recommendation which was in line with the prevailing sentiment at the end of the war.

But, certainly, we can argue against a policy that would make Japan the exclusive industrialized country in the Far East, for such a policy was most detrimental to the Philippines.

Indeed, the United States could not justify a policy that provided all kinds of stumbling blocks to the industrialization of her ally (Philippines) in the war against Japan. As a result of this policy, industrialization in the Philippines suffered severe setbacks.

The Dodds Report, according to Constantino, in a series of conversations with this writer some years back, explained the continuing obsession of US foreign policy to keep the Philippines a free and open market for US products, because a liberal import policy, another name for free trade, ensures that this country will never be able to industrialize and take the same nationalistic developmental strategy that enabled once poorer neighbors Taiwan, Hong Kong, Singapore, South Korea, Malaysia and Thailand

A ‘normal’ debate, except for the prison threat Jonathan Bernstein

O

BLOOMBERG VIEW

nly one thing mattered from the 2016 town-hall debate: Donald Trump, the Republican nominee for president, promised that, if elected, he will prosecute his political opponents.

At least, he promised to prosecute Hillary Clinton: “[I]if I win, I am going to instruct my attorney general to get a special prosecutor to look into your situation, because there has never been so many lies, so much deception. There has never

been anything like it, and we’re going to have a special prosecutor.”

Later, he said that if he was president, “you’d be in jail.”

Clinton, of course, was investigated and cleared by the FBI. But that’s not even the point because in

to a gargantuan challenge, especially when the APRC projected that annual elderly health-care costs will grow five times as much as they were last year in just 15 years—from $500 billion in 2015 to $2.5 trillion in 2030.

These spiraling costs will test the capacity of governments to fund and implement their elderly health-care and social-pension programs. They also demand that enough investments are poured into building the necessary infrastructure, like hospitals and nursing homes; and training the needed human capital, like caregivers, doctors and gerontologists.

If governments are unable to collect adequate taxes, roll out costeffective programs and manage the changes brought by an aging population, they run the risk of falling into fiscal crises and social instability. Efforts to sustain any long-term economic growth and development would be severely hampered.

To be sure, the burden of the spiraling health-care costs will not be carried equally by the 14 economies the APRC studied. In fact, the Philippines—in the midst of reaping a demographic dividend—will experience the full cost of an aging population much later than its counterparts in the study.

the United States of America, and under any constitutional democracy, the government does not designate special prosecutors to harass private citizens who happen to belong to the political opposition. Nor does the president of the US choose whom to prosecute, as my View colleague Noah Feldman explains.

Trump could not even say what crime Clinton supposedly committed. He seems to believe she should be jailed for “so many lies, so much deception” rather than an actual violation of federal code. This way of thinking isn’t new: Trump has said, repeatedly, that Clinton (and other candidates) shouldn’t be allowed to run for president, as if some authority determined who was allowed to run.

Though Trump’s threats were

Trump could not even say what crime Clinton supposedly committed. He seems to believe she should be jailed for “so many lies, so much deception” rather than an actual violation of federal code. what stood out, the two candidates held a sort of normal debate for the last 60 minutes. “Normal” by Trump standards, that is. As usual, he showed no sign of knowing anything about policy or how the government works. And as usual, he made so many factually incorrect assertions that it was impossible to keep up; teams of fact-checkers work hours to wrestle them all down.

This does not mean, however, the country can dilly-dally. A 2015 University of the Philippines Population Institute study projected the country’s senior-citizen population would balloon from 6.2 million, or 6.8 percent, of the population in 2010 to 12 million, or 10 percent, of the population in 2025. This aging boom may coincide with an equally significant spike in health-care expenditures.

Urgent action is, indeed, needed, considering that the Coalition of Services for the Elderly recently estimated that more than half of Filipino senior citizens receive no pension at all. Or that, in a 2015 Global Aging Institute and Pru Life UK survey, 9 out of 10 Filipino workers interviewed said they were anxious about being poor in their retirement, as they struggle with little savings and almost no government support.

The first week of October marks Elderly Filipino Week—an annual nationwide celebration that emphasizes the important role the elderly play in Philippine society. A more long-lasting tribute would be to start discussing and acting on our national policies on aging. And we must do so urgently, given the prohibitive costs we may incur.

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

pure fiction, because the colonial power, which supposedly returned to us the independence which it had wrested from Andres Bonifacio’s revolution, never really left and never really allowed us to exist and act as a free and sovereign people,” Lichauco said.

In a conversation with this writer before his death in 2015, Lichauco said: “The Philippines is a neocolonial state which, by definition, means a state that is sovereign and independent in theory but which, in fact, is the colony of another, or of others. As a people, we are the classic victim of what Webster’s New World Dictionary calls neocolonialism and which it defines as “the exploitation of a supposedly independent nation as by imposing a puppet government.”

For his part, Yap, one of those who crafted and pushed the approval of the House Joint Resolution 2, or the Magna Carta of Social Justice and Economic Freedom, in the Sixth Congress, said in a conversation with this writer a few years ago: “If we had a total economic crisis in our hands, it is because we are a country stuck in the preindustrial stage of history.” Although unimplemented, the Magna Carta still remains a valid law today.

Isn’t President Duterte’s recall of how American soldiers massacred hundreds of Moros in March 1906 in Bud Dajo, Sulu, a way of reminding misguided Americans, who continue to meddle in purely domestic affairs, are more answerable to issues of human-rights violations and a trail of economic degradation?

to transform into the newly industrialized countries.

The late nationalist CM Recto described the geopolitical plan embodied in the Dodds Report as “America’s anti-industrialization policy for the Philippines.”

Conclusive proof of what Recto described as America’s “anti-industrialization policy for the Philippines” came when President Ferdinand E. Marcos formally launched an industrialization program in the late 1970s based on 11 heavy industries, led by the steel, petrochemical and engineering industries. The announcement of that plan swiftly followed a protest by the International Monetary Fund (IMF), the World Bank and the pro-American technocrats in the Marcos Cabinet, led by no less than Prime Minister Cesar Virata.

The anti-industrialization policy has been implemented all these years through IMF conditionalities, and it isn’t hard to understand that for the past 60 years this country has been under the continuous economic supervision of the IMF. There is no country in the world that can claim to be under IMF’s supervision for even a fraction of that time. And it isn’t coincidence either that this country is the only one in the region that isn’t making any headway toward industrialization.

When the Philippines, Malaysia, Thailand, Indonesia and Singapore originally founded the Asean in 1967, not one of them was a newly industrialized country (NIC). Today only the Philippines remained outside of the NIC-hood status. The four other cofounders of the Asean are now acknowledged NICs. “The sovereign nationhood was

To reach the writer, e-mail cecilio.arillo@ gmail.com.

Trump seemed better prepared than he was in the first debate in the sense of being ready to give answers and to attack Clinton when he had an opportunity. He ran against the moderators, a strategy that is often successful in Republican primary debates, where the target audience is the most partisan Republicans. It may have succeeded with those Republicans on Sunday night; many of them are ready to believe anything about the media.

Others will note that, for example, Trump responded to a question about Clinton’s e-mails by complaining that the moderators refused to ask about her e-mails. His (frequent) complaints about supposedly unfair time limits turned out to be without merit, as well; he

was given a bit more time overall.

Hillary Clinton? She was fine, if not her absolute best, but this debate wasn’t about her. She got the basics right. She knows the Town Hall Debate 101 trick of directly responding to a questioner, and she knows that when asked to say something nice about an opponent, the easy answer is to praise his children. Clinton didn’t do anything to scare off supporters, a reasonable strategy for a candidate with a solid lead and an imploding opponent.

In the end, what mattered about this debate was that a major-party nominee for the presidency said he wanted to use the powers of the office to imprison his political opponents. Don’t pretend there’s anything normal about that.

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Tuesday, October 11, 2016

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Applications for rice importation exceed MAV limit

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By Jasper Emmanuel Y. Arcalas

@jearcalas

ore than a hundred rice traders have applied for permits to import the staple under the minimum access volume (MAV) scheme based on the latest list of applicants released by the National Food Authority (NFA).

As of October 7, 124 farmers’ organizations and private firms are seeking permits to import 862,900 metric tons (MT) of rice, 60,400 MT more than the country’s MAV of 802,500 MT, according to the list posted by the NFA on its web site.

NFA Spokesman Angel Imperial said, when importation requests exceed the allowable volume under the MAV scheme, a prorating will be conducted to make the allocation “equitable” to all applicants.

The rice traders are looking to import 374,575 MT and 336,900 MT from Thailand and Vietnam, respectively. These figures exceed the allowable volume under the MAV scheme for both countries, which is 293,100 MT. Some rice traders and organizations also

want to source 151,425 MT of rice from Pakistan.

Under the importation guidelines released by the NFA, rice traders are allowed to source from countries with specific quota and from omnibus origin with an overall total volume of 802,500 MT under the MAV scheme.

The rice traders and organizations can import 50,000 MT of rice from China, India and Pakistan.

They can also import from Australia (15,000 MT) and El Salvador (4,000 MT), according to the NFA guidelines. An additional volume of 50,000 MT is allowed to be imported from any country.

The applicants are only allowed to import 20,000 MT per organization or firm, according to the NFA.

862,900 MT The total volume of rice that 124 groups plan to import

A MAV prequalification team will conduct the validation and authentication of all the requirements submitted by the applicants, according to the NFA guidelines.

The team will also verify if any of the applicants is a party to any case or investigation for rice smuggling, hoarding, unauthorized rebagging or resacking of government stocks to commercial sacks, diversion and cornering activities.

The NFA would only accept applicants for importation under the MAV scheme until October 23, Imperial said. Rice imports within the MAV are slapped with 35-percent tariff, while those outside the MAV are slapped 40 percent.

An official of the National Economic and Development Authority (Neda) earlier told the BusinessMirror that the Philippines is planning to impose a tariff of as much as 50 percent on rice imports by next year, when Manila is expected to scrap the quantitative restriction (QR) on the staple.

Neda would recommend to the President a tariff ranging from 40 percent to 50 percent once the country converts the rice-import quota into tariffs. The Philippines imports more than 1 million metric tons of rice annually to plug the shortfall in its production and beef up the NFA’s buffer stock.

The extension given to the Philippines on the use of the QR is set to expire in 2017, unless Manila bids for another reprieve and is granted by the World Trade Organization.

BAT okay with Duterte’s planned no-smoking EO

By David Cagahastian

A

@davecaga

to b acco c o m p a n y o n M o n d a y supported the smoking ban in all public places, which is being planned to be implemented throughout the country by President Duterte before the end of the month.

British American Tobacco (BAT) Philippines CEO James Michael Lafferty said BAT, which has brands like Lucky Strike and Pall Mall, would have no issue with the imposition of the ban on smoking in public places.

“Such bans are already being implemented throughout the country at varying degrees of enforcement, as already enshrined in RA [Republic Act] 9211, or the Tobacco Regulations Act of 2003. We don’t see any issue with the new administration pushing for a more uniform enforcement across all local government units [LGUs],” Lafferty said in a statement.

RA 9211 already prohibits smoking in the following public places: schools and centers of youth activity; elevators and stairwells; locations in which fire hazards are present; within the buildings and premises of public and private hospitals, health centers and similar institutions; public conveyances and public facilities, including airport and ship

terminals, and train and bus stations, restaurants and conference halls, except for separate smoking areas; and food-preparation areas. For all other areas where nonsmokers may be exposed to tobacco smoke, smoking and nonsmoking areas should be established.

Health Secretary Paulyn Jean B. Rusell Ubial said Mr. Duterte is set to sign an executive order banning smoking in all public places nationwide.

Ubial said the smoking ban in all public places will be patterned after the smoking ban being enforced in Davao City.

Lafferty said BAT had consistently supported sensible regulations imposed by the government, particularly those aimed at addressing health issues.

“BAT has consistently demonstrated in the Philippines that we will be a responsible tobacco company that supports sensible regulations advocated by the government. Of the two major tobacco industry laws passed under the Aquino administration, we were the only tobacco company to have supported the ‘sin’ tax law, and had posed no objections when Congress enacted the graphic health warning aw,” Lafferty noted.

“We may be in a controversial industry but we can still take responsible and honorable positions,” he added.