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THE ‘BIGGEST LOSER’ www.businessmirror.com.ph
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Sunday, September 8, 2019 Vol. 14 No. 333
P25.00 nationwide | 2 sections 16 pages | 7 DAYS A WEEK
Globalization 4.0 blamed as culprit behind PHL’s rice-price woe By Cai U. Ordinario
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HE agriculture sector is seen as the “biggest loser” under what is being dubbed Globalization 4.0, according to the Philippine Institute for Development Studies (PIDS).
In a recent briefing at the launch of the Development Policy Research Month (DPRM), PIDS Senior Research Fellow Roehlano Briones said this is because the industry continued to enjoy “high tariff walls.” Globalization 4.0, Briones said, served as a “rude awakening” to everyone given the proliferation of technological and digital innovations that are fraught with volatility, uncertainty, complexity and ambiguity.
‘Hard hit’
“AGRICULTURE will be hard-hit. Right now they are protected by very
high tariff walls; even rice, which has recently been liberalized, is still being protected by a 35-percent tariff wall,” Briones said. The lack of openness in agriculture, he added, may prevent the sector from conquering challenges posed by Globalization 4.0, such as trade wars, cross-border diseases, and high inequality, among others. This despite the observation made by certain sectors that the recent plunge in rice prices and concerns raised by farmers may buttress the belief that the Rice Trade Liberalization (RTL), which Continued on A2
“W
e’re just a few months off the implementation of the liberalization act so a lot of the dust is still settling but while that dust is settling, we’re drawing conclusions…I think [such a conclusion could be] premature.”
ROEHLANO BRIONES
Philippine Institute for Development Studies Senior Research Fellow
THE agriculture sector is seen as the “biggest loser” under what is being dubbed Globalization 4.0. SIMON HACK | DREAMSTIME.COM
The unlikely Chinese cities where house prices rival London
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ONDON, Seattle, Manchester and, um, Xiamen. Some of the world’s priciest housing markets aren’t where you might think. A fouryear property boom in China has elevated a collection of little-known cities and turned them into real estate gold. While that’s been great news for speculators, it’s raising concern about whether China’s educated middle class is quickly being priced out of these so-called second-tier cities, undermining Beijing’s goal of making them home to the millions moving from rural areas. Another risk is increasingly stretched family budgets: The average household debt-to-income ratio in China soared to a record 92 percent last year from just 30 percent a decade ago. “A property bubble is foaming
up in many places in China,” said Chen Gong, the chief researcher at independent strategic think tank Anbound Consulting. “Prices are starting to look abnormal when compared to residents’ income.” Vincent Fan is a case in point. The 26-year-old IT engineer says the lack of affordable housing is forcing him to consider moving from Xiamen, the city he’s called home for eight years after relocating from inland Shaanxi province to study. Home prices— which in Xiamen have more than
PESO EXCHANGE RATES n US 51.8830
tripled over the past decade—are now roughly 40 times his salary, he says. “I’m getting paid like I’m in a small city but when I’m looking to buy a home, the price is the same as in a metropolis,” he said. “It’s just impossible.” A 1,000-square-foot apartment in downtown Xiamen, a port city on China’s southeast coast, is almost as expensive as the average home in London, even though local wages are a quarter of what’s on offer in the UK capital. In Hangzhou, home to the headquarters of tech giant Alibaba Group Holding Ltd., prices per square foot now rival Seattle, where Amazon.com Inc. is based.
National obsession
COMMUTERS and cyclists cross an intersection in Xiamen, China, August 26, 2019. BLOOMBERG
HOW these cities found themselves here is a confluence of urbanization and the promise of quick capital gains. Some 90 million people have relocated from rural areas since Continued on A2
n JAPAN 0.4853 n UK 63.9873 n HK 6.6194 n CHINA 7.2565 n SINGAPORE 37.4985 n AUSTRALIA 35.3479 n EU 57.2633 n SAUDI ARABIA 13.8318
Source: BSP (September 6, 2019 )