The Oikonomos Nexus June 2017 - March 2018

The Oikonomos Nexus

THE OIKONOMOS NEXUS is the official newsletter of the Department of Economics (DE). Oikonomos is a Greek word which means the management of the affairs of group, community and establishment to ensure its maintenance of productiveness while Nexus means connection or tie.

The former newsletter of the Department, "Salikbuhay", was launched on December 17, 2001 with a new name, The Oikonomos (strictly Economics). It is said to be the informant in a sence that it gives economic students the best information about whatis happening within the four corners of the classroom,in the department, the college, inside and outside the campus. Moreover, it informs

COVER PHOTO BY Sharlot Marie Dizon

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EDITED BY

Martin Roi Vista

PRINTED BY

FCA PRINTHOUSE

Change is the only permanent thing in life; it can either hurt us or helps us to be better, nonetheless, one thing is for sure, it will greatly affect us. Choosing change is somehow adapting the concept of opportunity cost in economics.

Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action; and as for change we need to give up our current situation before we can take another action that will bring us into another situation.

In my fourth year in college, I made a decision for I know the moment I took it, my life as a mere student will never be the same again. I used to be a ‘school-bahay’ kind of student and could only think about academics, not until I choose change; I accepted the challenge and the responsibility of being a leader of our publication – The Oikonomos Nexus.

The phrase Change is coming is very popular to us since it was the message of President Duterte to us Filipinos when he took the office in 2016; the same year when the Oikonomos Nexus’ issue had a theme about change, and as for this year’s issue, together with my team, we decided to identify recent economic problems and issues that depict if we are in the process of ‘change’. This year’s issue serves as the continuation of the previous issue, it aims to divulge where are we right now -- what has been done in order to acquire the ‘promising change’ of every individual in our society. We have included various topics to show some of the happenings that our country’s facing before it can attain its goal – a better economic system, and how other countries are capable of change in order to protect their economy.

Being in this position is a commitment that I must carry responsibly. It was a challenge for me, also for my team, to keep up the pace of being both students and student-leaders at the same time. Another unnerving task that we encounter is in terms of financial aspect; as we were in need of enough funds to sustain the proposed activities and projects of Nexus. All the members of the team were struggling and gave their all in order to continue what has been started for our beloved organization. Yet, writing this note means that we have conquered all the obstacles that hinder us in attaining our goal.

Moreover, this issue would not be possible without the help and support of the Department of Economics; this is for all the Ekonomistas who believed in us, for all the Nexus members who strived to be part of the publication’s little success, and for all the Economics professors who guided us all throughout. Furthermore, I would like to take this opportunity to acknowledge our dearest Department Chairperson Professor Norie L. Maniego, our very own Nexus Adviser Alyssa Dale Ahorro and our ever supportive Executive Editor Emeritus Mr. Nazer Sanggalang, who contributed and extended their valuable assistance in the preparation and completion of this issue. To the entire Nexus Team, the Executive Staff and Editorial Staff, congratulations! We have made it. I am forever grateful for having you all until the end.

And last, but certainly not the least, I would like to thank Almighty God for the guidance and knowledge He has bestowed our team to complete this issue. It is indeed a painstaking task, but He helped us get through it. With Him, nothing is impossible.

Precious Ann Q. Cabaya Executive Editor

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES COLLEGE OF SOCIAL SCIENCES AND DEVELOPMENT DEPARTMENT OF ECONOMICS

DIVULGENCE: FACING THE PROCESS OF CHANGE

EXECUTIVE BOARD EXECUTIVE EDITOR Precious Ann Cabaya MANAGING EDITOR Joyce Jazzel Mae Cabrera

CONTRIBUTING WRITERS NEWS WRITERS

PHOTOJOURNALIST

Katleen Gonzales

Xena Nicole Lim

John Ryan Lara

Sharlot Marie Dizon

Joram Malinao

Kisha Daniezel Hrao

Joniel Asas

Maynard Javellonar

Soriano Jamaica

Joanne Cribe Ava Princess Gali

COMMUNICATION OFFICER Kimberlyn Leuterio EXTERNAL AFFAIRS OFFICER Jeroe Bertoldo MARKETING OFFICER Frederick Galanido Alvin Daniel Banas FINANCE OFFICER Julia Elizze Jardinico Juan Carlos Ong HR & DEV’T OFFICER Bianca Yllana Dela Cruz

OPINION WRITERS Amira Javate Glenn Legaspi Christian Bernil Marjorie Aquino Fernando Pait Jr. Carman Zyre Bautista Christine Jane Caringal Princess Jasmine Moldez FEATURE WRITERS Paulyn Angela Gabriel Lariza Aure Patrick Acupan Erica Navelgas Iris Christian Godinez Racelle Louise Avila

Jim Marie Gimeno CARTOONIST Jomaica Apordo Sophia Flor Bustamante Jul Lieza Anne Serquina Jenna Mae Dawis LAYOUT SPECIALIST Bernee Cadalin Glyce Ann Salazar Jo-Ann May Rocero Xena NIcole Lim Ernesto Molera DJ Lawrence Vallejos Darlyn Mae Ropila

Khenneth Balceta Diane Marie Ilagan Mr. Nazer Sanggalang EDITOR EMERITUS 4 EXECUTIVE The Oikonomos Nexus

Prof. Alyssa Dale Ahorro ADVISER

Prof. Norie L. Maniego DE CHAIRPERSON

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Department of Economics 31st General Assembly and Acquaintance Party

by Precious Ann Q. Cabaya

The Economics Research Society (EconReS) hosted the 31st General Assembly and Acquaintance Party for economics students of Polytechnic University of the Philippines (PUP) last August 4, 2017 at Manila Room, PUP Hasmin Building, Sta. Mesa, Manila.

With a theme of “I am Limitless: Breaking the Constraints towards an Optimum Dream”, the event was attended by the Third and Fourth Year economics students to encourage communication and collaboration between students of different sections and year levels within the department.

The program was set off by a talk of Ms. Neibelyn Gabriel, Communication Officer of PUP-EconReS, which aimed to inspire the attendees to never give up despite the challenges faced by students. Moreover, Professor Norie Maniego, the Chairperson of Department of

Photo Kimberlyn Leuterio Economics, gave her inspirational message to all the economics students.

Dean’s and President’s Listers, the newly elected Junior Philippine Economics Society (JPES) National Council and JPES Representatives were also recognized.

As part of the program, the EconReS and Oikonomos

EconReS Conducts Monthly FGD

By Joniel Asas In pursuit to help economics students to understand and apply the highly theoretical economic concepts that they learn inside the classroom, the Economics Research Society (EconReS) conducts its monthly Focal Group Discussion (FGD) at the second floor East Wing, Polytechnic University of the Philippines, A. Mabini Campus.

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The event started on July 28, 2017.

On the first wave of the activity, the discussion focused in the “Opportunities and Challenges for Young Filipino Innovators”, giving insights to students on what it takes to be a successful entrepreneur. Followed by the topic “Fake News: A Catalyst on Extrajudicial Pun-

Nexus’ executive board of A.Y. 2017-2018 take the oath of office. EconReS is the official academic organization of the Department of Economics while the Oikonomos Nexus is the official publication of the department.

The rest of the event was filled with games and other fun activities for the participants. ishment and Killings”, emphasizing the importance of getting rid of fake news and its impact to the society.

“The FGD is important for economics students and is a good platform for tackling trending topics or problems faced by our society and to come up what is the best plan of action,” said Enrico Lorenzo Parcon, EconReS Executive Secretary and one of the project head.

ASEAN Youth Forum Held in PUP

by Joyce Jazzel Mae C. Cabrera Over seven hundred students and faculty members from Polytechnic University of the Philippines (PUP) attended the Association of Southeast Asian Nation (ASEAN) Youth Forum held at PUP Sta. Mesa Manila, August 24, 2017.

The Philippine Information Agency (PIA), the country's official public information arm, spearheaded the forum.

This is to raise the awareness of youth on the opportunities and benefits of being a citizen of ASEAN member country.

The event started with the ribbon-cutting ceremony signaling the opening of the landmark exhibit and ASEAN information kiosks. The information kiosks contain materials accessible to anyone who would want to know more about ASEAN. The PUP’s information kiosk was the 101 kiosk

Photo Joyce Jazzel Mae C. Cabrera

launched by PIA. "We've been going around campuses for the last couple of months now to promote and advocate for ASEAN programs and services of the national government and the president," PIA Director General Harold Clavite in his opening remarks.

Resource speakers in the forum included PIA-NCR's Mr. Emver Cortez, who gave an overview about the ASEAN and the details of Philippines' chairmanship for ASEAN 2017. De-

partment of Education Director Margarita Consolacion Ballesteros shared with PUP community the role of ASEAN Quality Reference Framework (AQRF) in ASEAN community building. Executive Director Melanio Santella of National Youth Commission discussed the ship for South East Asian Youth Program (SSEAP) The ASEAN youth forum is in line with the 50th ASEAN founding anniversary where the Philippines is this year’s host country.

JPES Ecolympics 2017 Brings Ekonomistas Excellence in Motion

By Katleen Gonzales Photo JPES

Last October 22, various universities and colleges gathered at Amoranto Complex Stadium for this year’s Ecolympics headed by the Junior Philippine Economics Society (JPES).

Ecolympics is an annual gathering of economics students to bring out their competitive spirit through different activities prepared by the orga-

Joshua Casimiro of the University of the Philippines-Los Baños (UP-Los Baños) won the title of Mr. Ecolympics 2017 while the Ms. Ecolympics 2017 was Lara Marielle Marco of Pamantasan ng Lungsod ng Maynila (PLM). Moreover, the University of Santo Tomas Economics Socinization. Selected sport events ety (UST EcoSoc) was declared were included like chess, volas the overall champion of this leyball and basketball and acyear’s Ecolympics. tivities such as Mr. and Ms. Ecolympics and Amazing Race. 2017 was Lara Marielle Marco of Pamantasan ng Lungsod ng Economics students Maynila (PLM). Moreover, the from the thirteen participating University of Santo Tomas Ecoschools were present to cheer nomics Society (UST EcoSoc) for their respective teams. Each was declared as the overall school representatives face-off champion of this year’s Ecolymdifferent matches to drag their pics. university’s name to the top.

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EQUINOMIX supplies Students Financial Literacy

by Joram J. Malinao November 11, 2017The Junior Philippine Economics Society (JPES) conducted an event entitled EQUINOMIX: Exploring the Unlimited Possibilities of Financial Investments which aimed to spread ideas and strategies that the millenials can use for establishing a better future through investments, held at De La Salle UniversityDasmariñas.

The event was attended by economics students from Batangas State University, Cavite State University, De La Salle University Dasmariñas, Polytechnic University of the Philippines, University of the Philippines-Los Baños, and University of Santo Tomas.

Andro Leo Beltran, from First Metro Securities, formally starts the seminar with his discussion about “Investing in Stocks: Putting Your Money in the principal drive of the economy”, which gives the idea on how to make money for millennial. He stated that it is better for people to invest at a young age to retirement be seen as enjoyment and not as death. He also added that only 2% of the Filipinos retire comfortably having enough money to feed for themselves. Beltran concluded that people have to beat inflation and look for investments that hold inflation, good business, management, strong demand, and growth forecast.

Marc Gulle, the founder of Wealth Educators Circle, emphasized the financial foundation of prioritizing first the protection of a long-term investment on health. Along with the foundation are the healthcare (short-term benefits), life insurance, eliminate debts, emergen-

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Photo Frederick Galanido

cy funds, and investments.

“There will never be a right time.

It will always be up to you if you do something about it or not,” he added.

Countering with the third speaker, Nikki Jurado, the CoFounder of Leo Advantage taught the students of investing through Foreign Exchange (FOREX) Market Run. She said that money is an issue and time as well and foreign exchange should be shared to everyone and not exclusive. People should look for investments that have accurate strategies because 2 to 3 out of 10 of trades are mistakes.

“For the young people, you can be aggressive in investing because you have the luxury of time” as the Product Training Manager from BDO, Justin Galan said in the start of his presentation about Easy Invest-

ment Plans (EIP) and Unit Investment Trust Funds (UITF).

Galan stressed that in terms of investment, you have to look at the historical background of the fund.

The value of the life insurance presented by the Unit Head of Manulife Philippines, Atty. Jadea Ezra M. Capucion, was the last part of the event.

She featured why millennial need life insurance. “It’s cheaper when you’re young; funerals are expensive; debt is not always forgiven; some are investmentlinked (VUL); employer’s insurance may not be enough,” she reasoned out.

Mr. Ivan Kwok, the president of JPES, formally ended the program and gave the certificates of the speakers, delegates, sponsors, and partner organizations.

Philippine Experienced Largest BOP Deficit from the past Banko Sentral ng Pilipinas (B SP) released the Balance of Payments (BOP)position for the month of July having a deficit of US$ 678 Million which claimed to be the widest and largest deficit for the past seven months of 2017.

The BOP of the first month of the year had a deficit of US$9 Million. On the following m o n th , i t i n cr e as e d t o US$ 436 Million and continued until March with US$ 550 Million. However, the table had turned on the month of April having an accumulated BOP surplus of US$917 Million but the BOP position turned to a deficit on the following months with US$ 59 and US$ 569 Million.

The year-to-date BOP deficit from January to June was US$ 706 Million and it acceler-

Seven months

by Katleen Gonzales ated to US$ 1384 Million on the month of July. The actual cause of the wider deficit was due to BSP’s foreign exchange operations as well as the payments for the maturing foreign exchange obligations by the national government. During the month, outflows were partially driven by BSP’s income from in- Photo by: Asian Journal vestments abroad and governmerchandises in exports, greater ment’s net foreign currency de-than-expected remittances posits. from overseas and revenues On the other hand, foreign ex- from Business Processing Outchange operations conducted by sourcing (BPO) companies. TheBSP were driven by the expand- se would alleviate the current ing market demand for foreign account and the overall BOP exchange that largely finances status for the rest of year. The the capital goods and imports of forecasted balance of paythe country. ments for 2017 posted by is currently at According to BSP, ex- B S P pected recovery may come from US$500 Million shortfall.

Government begun Marawi Rehab

by Joniel Asas The government began its rehabilitation and recovery efforts in Marawi City after President Rodrigo Duterte announced the liberation of the city from terrorist group Maute in October 2017.

The Department of Interior and Local Government (DILG) Officer-In-Charge Catalino Cuy stated that the rehabilitation started after the declaration and the program was spearheaded by Task Force Bangon Marawi.

The rehabilitation prioritize the clearing of bombs from buildings installed by terrorists.

In a statement, Armed Forces of

the Philippines (AFP) spokesman Major General Restituto Padilla stated that the efforts were to ensure that there were no bombs, no IED, no booby trap left in the area.

After the clearing of the buildings, the government would lead the possible return of the evacuees to their homes. Officer Civil Defense (OCD) Assistant Secretary Kristoffer Purisima stated that number of families would be assisted by troops in their return to their homes at soonest possible time allowing them to come back by barangay clusters.

Furthermore, the govern-

ment also prepared temporary shelter for those residents whose houses were heavily damaged by the siege.

Moreover, the government could conduct damage assessment in the cleared barangay. The national government was sent five teams led by the OCD to conduct damage assessment in the cleared barangay to enable for them to request for funds.

Also, according to the Department of Budget and Management (DBM) Secretary Benjamin Diokno, The Malacañan Palace approved the P14.5 Billion additional disaster funds for the reconstruction of Marawi City.

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DENGVAXIA in the Philippines: A Dengue killer or a Human killer?

Photo news.abs-cbn.com

by Ryan Lara Dengue is the fastest growing mosquito-borne disease in the world, causing nearly 400 Million infections annually, according to the World Health Organization (WHO).

In 2014, Philippines, together with the 10 countries took part in the study of safety and effectiveness of Dengvaxia, a vaccine aimed at preventing dengue virus, which was developed by French pharmaceutical company Sanofi Pasteur.

It was first licensed in Mexico in December 2015 for use in individuals from aged nine to 45 living in endemic areas. It is also in 2015 when the Philippines grants marketing approval to Dengvaxia, making it the first vaccine to be licensed for the prevention of dengue in Asia.

The Department of Budget issues a 3.5 Billion pesos special allotment release order to former Health Secretary Janette Garin’s office to purchase the vaccines.

In March 2016, the World Health Organization (WHO) releases a paper saying Dengvaxia may be ineffective or may even increase that risk in those who are seronegative at the time of first vaccination; the organization calls for more studies into the vaccine. Despite of the alarming report of WHO, the Department of Health (DOH) launched the program providing free vaccines to selected Grade 4 public school pupils in three regions with the highest number of dengue casesMetro Manila, Central Luzon and CALABARZON on April 2016. It is given three doses six months apart

10 The Oikonomos Nexus

through subcutaneous injection in the upper arm.

According to DOH, more than 700,000 public school fourth graders had received the first of three doses of the vaccine.

In July 2016, the WHO releases another supporting paper, saying Dengvaxia may act as a silent natural infection that primes seronegative vaccines to experience a secondary-like infection upon their first exposure to dengue virus. In other words, the body says the vaccine may be ineffective or may theoretically even increase the future risk of hospitalized or severe dengue illness in those who are seronegative at the time of first vaccination regardless of age. That same month, former Health Secretary Paulyn Ubial issues a Resolution temporarily suspending the school-based dengue immunization program. Only the 489,003 pupils who received the first dose would take the second and third doses.

In November 2017, the Sanofi Pasteur announces the result of new clinical data analysis, which found that Dengvaxia is more risky for people not previously infected by the virus.

"For those not previously infected by dengue virus, however, the

analysis found that in the longer term, more cases of severe disease could occur following vaccination upon a subsequent dengue infection," it said. "For individuals who have not been previously infected by dengue virus, vaccination should not be recommended," it added.

Following the announcement of Sanofi Pasteur, Health Secretary Francisco Duque III orders the temporary suspension of the dengue vaccination program. The Dengvaxia is still under investigation by the senate and the House of Representatives. The WHO says it only recommended that countries should consider introduction of dengue vaccine only in geographical settings (national or subnational) where epidemiological data indicate a high burden of disease.

Meanwhile, the senate questioned project cost which was too big and was approved without congressional approval. The DOH stated more than 800,000 students received the vaccine and is now monitoring 40 cases of children who are seriously ill and 9 deaths. Senator Richard Gordon, recommends filing charges against former President Benigno Aquino, Garin and other former officials over the Dengvaxia controversy.

House is very friendly and signaled that there will be less focus on human rights and extending the relations by sending an invitation to visit Washington.

Filipina Weightlifter Bagged 3 gold and 3 silver medals

by Jamaica F. Soriano Photo Toto Lozano/PPD

US-PH relations remain intact ties in Russia and China stronger

by Joram J. Malinao Philippine President Rodrigo Roa “Digong” Duterte signed 13 bilateral agreements with China last October 20, 2016 and 10 bilateral cooperation documents including a military pact with Russia on May 25, 2017 for economic and security purposes, despite the untidy PhilippineUnited States relations.

The state visit of Pres.

Duterte in China served as a turning point for the PhilippineChina relationship as it has been the long-time rival in various territorial disputes. He then signed 13 bilateral agreements with Chinese President Xi Jinping that aim to expand economic and security fields- agriculture, industrial capacity, trade and investment, media, science and technology, tourism, health, drug control, and coast guard collaboration.

The bilateral agreement showed the potential of the two nations working together despite the several years of bruntbearing assertiveness over West Philippine Sea. “Yes of course, (we talked about it). I leave it to the Chinese authorities that they will do in the next few days.”

Pres. Duterte added when being asked about the Scarborough Shoal issue.

On the one hand, Digong also integrated with Russia through signing 10 bilateral agreements which includes a military pact along with their President Vladimir Putin. It is not only associated with estab-

lishing a strong national defense but with providing economic assistance such as agricultural cooperation, arts and media, industry development, foreign affairs, science and technology, trade and investment, and tourism.

The two leaders, Duterte and Putin, first met in an international summit last November.

Putin sent an invitation to Duterte to visit Moscow. Countering a series of threats from drug trafficking to terrorism, Duterte said that one of the main goals of the trip was to secure weaponry to use against the Islamist militants at home.

Looking to separate with the long-time development partner, Duterte announced in an economic forum in Beijing last year, to cut military, Enhanced Defense Cooperation Agreement (EDCA), and economic ties with US and affirming an independent foreign policy for the Philippines. He added based on the data gathered from Bangko Sentral ng Pilipinas, US is not the primary source of remittances rather, the Middle East accounting for $26.92 Billion.

Although US is the biggest source of equity foreign direct investment (FDI) accounting for 61.8 percent of total of $271.72 Million and largest holder of Philippine debt at $13.29 Billion, Duterte still expressed his deepseated distrust and dislike to the country. The Ambassador of US to the Philippines Sung Kim stated, “I want to assure you that the United States will continue to partner the Philippines and look for ways to increase foreign investment, reduce trade barriers, and streamline business regulations.”

Donald Trump, the new president of the United States has praised Duterte’s war on drugs. He said that the White

Representing the Philippines, Elien Rose Perez won three gold and three silver medals in the 2017 Asian Senior Cup Weightlifting Championship held at Yongha gymnasium, South Korea from October28 - November 2, 2017.

Perez topped the 53kg category, 71kg snatch, and 87kg in clean and jerk with a total lift of 158 kg against Nepal's Sanju Chandhary who lifted 61-77138. She also won three bronze medals in senior, youth and junior championship in Kathmandu, Nepal last July.

The Philippines ranked third in Asian Women Senior Weightlifting while Uzbekistan female lifters ranked as the overall champion beating South Korea and Philippines.

Perez, a third year criminology student in University of Bohol was introduced in the world of weightlifting at the age of nine and a protégé of Olympic weightlifting silver medallist Hidilyn Diaz. Accompanied by coaches Ramon Solis and Allen Diaz, Perez and other four Filipina lifters compete in the tournament.

Photo pinoyathletics.info

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PH-EU Relations Coming to an End

by Julia Jardinico President Rodrigo Duterte is seemingly open to cut all of its diplomatic ties with the European Union (EU) if it continues to interfere with the administration’s domestic affairs.

President Duterte’s war on drugs was heavily criticized by local and international human rights groups due to the thousands of allegedly extra-judicial killings happened during its implementation which worsened the human rights condition in the Philippines according to the report made by the EU in 2016. There was a threat coming from a European Parliamentarians called Progressive Alliance who was said to be extremely alarmed by the war on drugs and said that the Philippines could lose all of its trading privileges because of the killings.

Photo by KAZUHIRO NOGI AFP via Getty Images

The said issue outraged President Duterte and made a statement that he dares to cut all of the diplomatic ties with the EU and their delegates are free to leave the country once they continue to interfere with the government’s affair. The president dared his critics to push for the removal but he is confident that the Philippines will stay in the UN, considering its new alliance with Russia and China, who is a permanent member of the UN’s Security Council.

Because of the said issue, the EU had made a statement last October 2017 on the revision of the General System of Preferences Plus (GSP+), wherein the Philippines is granted trade perks which enables the country to export products on the EU market dutyfree. The review was about the compliance of Manila with the conditions of the trade perks which included adherence to human rights and rule of law, particularly about the alleged violation of the war on drugs. The result of the said review will be coming out in January 2018.

“Philippines will no longer accept grants from the European Union to stop the meddling in the country’s domestic affairs,” a confirmation stated by Foreign Affairs Secretary Alan Peter Cayetano last October after the speech of President Duterte regarding the EU issue. The DFA Secretary also said that EU is just using the aid packages as an excuse to criticize Manila, particularly Duterte’s war on drugs.

President Duterte is still not accepting any grants from the EU even after the ASEAN -EU 40th Anniversary Commemorative Summit, which was held on November 2017, where he met European Council President Donald Tusk. The President made it clear that he does not want any aid with conditions. The President is standing strong, leaving a statement saying that the Philippines can survive even without the EU’s aid.

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Saudi Arabia Ousts Ex-Ministers and Arrests Princes

by Precious Ann Cabaya Saudi Arabia’s newly National Guard. He reformed anti-corruption commis- placed the government minister sion arrested 10 princes and and publicized the creation of a dozens of former government new anti-corruption committee. ministers and officials on Saturday, November 4, 2017.

Al Arabiya reported that

vice in UAE, that security forces had grounded private jets in the Red Sea City of Jeddah.

Prince

Mohammed

bin

Salman, also known as MBS and

The arrests came soon 10 princes and dozens of former the youngest defense minister in after the anti-corruption com- ministers in the country were the world at the age of 32-year mission was established by royal arrested including Saudi billion- old, set to be the first millennial decree headed by Crown Prince aire Prince Al-Waleed bin Talal, to occupy the Saudi throne. He but there was no official confir- projected himself as a liberal re-

Mohammed bin Salman.

Saudi

Arabia’s

ousted

a

King

Salman

prominent

prince,

Prince Miteb bin Abdullah, who headed the

mation. Also, the prince was not former in the ultra-conservative within reach for comment.

To stop any high profile figures from living the country of Saudi Arabia, an aviation ser

APEC-ASEAN Seek Connected and Integrated Asia Pacific

by Joyce Jazzel Mae C. Cabrera The first Asia-Pacific Economic Cooperation (APEC) and Association of South East Asian Nation (ASEAN) informal dialogue was held on November 10, 2017 in Da Nang, Vietnam as part of the 25th APEC Economic Leader's Meeting, chaired by the President of Viet Nam H.E. Tran Dai Quang in participation of the APEC and ASEAN leaders.

With a theme of "Partnering for new Dynamism for a Comprehensively Connected and Integrated Asia-Pacific", the dialogue aimed to provide fresh impetus to cooperation and integration in the Asia Pacific at a time when the region is at a critical juncture with profound changes.

The APEC and ASEAN leaders were given the opportunity to exchanged views on the need to strengthen the cooperation and synergies. Both groups addressed common challenges, reinforcing a sustainable, transparent and highly-adaptable regional economic architecture.

The leaders highlighted trade and invest-

kingdom with a series of bold moves including the decision allowing women of Saudi Arabia to drive starting in June 2018.

ment, promotion of physical, institutional and people-to-people connectivity, supply chains connectivity, global value chain, globalization of micro, small and medium enterprises (MSME), human resource development, and addressing climate change as the areas of potential cooperation for APEC and ASEAN. APEC is a regional economic forum among 21 member economies along the Asia Pacific region including seven ASEAN members- Brunei, Indonesia, Philippines, Malaysia, Singapore, Thailand, and Vietnam.

Photo APEC National Committee

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WHEN PUBLIC WORKS DOESN'T WORK (ANALYSIS ON ECONOMIC CROWDING OUT AND PUBLIC WORKS)

by Emeritus Nazer Sangalang Traffic jam in the capital and nearby cities and suburbs seems to be a way of life as people appeared to have surrendered and accepted it as an inevitable fact and a sign of progress. But should we? While it often make headline and even catch the attention of some senators, especially after the car-mageddon of 2016 and 2017, the people seems to be either experiencing short term amnesia or is just plain forgiving and positive. Neither is helping us identify the true cause (or causes) and give solve this chaos and destruction.

Many suggest that the cause is lack of discipline among drivers (and needless to say, pedestrians); some argue the ease of owning and boom of private vehicles in the metro; for some, the centralization of businesses in metro manila, as against to 'decentralizing' them and decongesting to nearby cities and provincial economic zones. While all of them, indeed, argue well and make good points, we shall focus on an angle less discussed in the mainstream media and debate circles.

Our roads are one of few places where, I rather appreciate, there is semblance of equality.

Both the CEO and junior associate take the ever busy Ortigas Ave., C-5, and EDSA going to work, for example. Both get stuck in the heavy traffic just shy of 6:00 AM and 4:00 PM. Both benefit and suffer whatever changes local governments introduce in their jurisdictions, regardless of who rides what.

Roads are the real economy's bloodline, what currencies and other instruments are to finance. Its existence (or absence) gives clues to the overall health of an economy. As central bankers influence the financial sector by relaxing or contracting money supply through monetary policies, the real economy's growth too is encouraged or restricted by the government through the influence on public finance (through

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public works spending) and policies (e.g. truck ban/curfew on certain roads).

Since, by policy, agencies and LGU's have to 'spend' their budget as against to 'save' an appropriated fund which might lead to all sorts of anomaly. Moreover, following the Keynesian policy, they are obliged to spend on projects, whether it may be a new international airport, a new transport hub, train rail line extension, or maybe a simple road resurfacing - all for economic expansion. Or do they?

As the economy expands, so should its road networks. It is vital in the real economy as on it the goods actually flow through. Infrastructure should be well built yet open ended enough to cater expansion and development.

However, what we seem to be witnessing from our LGU's are petty 'projects': waiting shades and oddly regular road resurfacing and pavement repairs to name a few, all to be remodeled and repaired again after only a year. Oddly, less than 10kms of new roads were built in the last 6 years in NCR - a depressing statistic compared to the number of new vehicles registered in the same period. Needless to say, this results to congestion. To add more pressure through unnecessary rehabilitation is close to self-harm and suicide.

Competition today is not anymore local between neighbouring businesses - but regional.

As countries become more integrated to each other, the traditional political and economic boundaries slowly disappear. Supply chain especially for multinationals are increasingly regional in nature: one process or product involves production in five or more countries, and of course, the lowest bidder always win. With this, the slight change in the ‘cost of doing business’ affects whether business should stay in the Philippines or migrate elsewhere.

I cannot stress more that with integration should come preparation and protection. Urging the LGU's to build roads instead of mere pavements is more than a challenge - it is a necessity to survive, to compete, to prosper. As Rome wasn't built in a day, so is the future of Metro Manila.

No State is an Island

by Emerald Oconer No man is an island. Same as people, a state cannot rely on its own ability to provide for its people given its unlimited resources. A good economic relation with other developed economies helps to achieve higher economic growth, lowers income inequality, reduce the trade barriers, and develop new technology which further high standards of living. Thus, this is how the two different summits, the Asia Pacific Economic Convention (APEC) and the Association of the Southeast Asian Nations (ASEAN) display an important role for the Philippines.

In November 2017, the APEC and the ASEAN summits were held in Da Nang, Vietnam and in the Philippines, respectively, to reiterate several topics such as globalization and the emphasis on the realization of inclusive growth. This is especially stressed by Trade Undersecretary Ceferino Rodolfo who described it as inclusive globalization—a situation where every country wins, as opposed to some having the better bargain than others. Talking about economics, this is entirely possible that countries would gain from each other if both countries could trade each other’s goods and services; following the concept of comparative advantage of David Ricardo. Regardless of who could gain, both trading partners will benefit comparatively.

Meanwhile at the APEC forum, President Rodrigo Duterte stated that “Besides physical connectivity, we should also continue to promote people-to-people connectivity as a critical growth

Marawi: A Paradox of War

by Amira Javate Since taking office, President Rodrigo Duterte gained prominent remarks from the government’s anti-illegal drugs campaign and has opened doors for human rights discourse. Adding to this, the conflict in Marawi and the declaration of Martial Law in Mindanao earned many oppos-

and development strategy. I therefore propose that business adopt an inclusive business model; that provides opportunities for those at the bottom of the pyramid.” This manifest the importance of MSME’s in the country.

The summits could generate employment, investment, and increase production while reducing the trade barriers existing in every state, thus making trade easier. Through bilateral agreements, countries within the Asia Pacific and the Southeast Asian regions could strengthen their economies, aligning their own self-interests to the self-interests of other nations. Meanwhile, the transition from multilateralism to bilateralism is evident; bilateralism could deepen the trade ties that the country has with their key economic partners, which works efficient because only two nations will negotiate. Thus, complex array of ‘coalitions’ due to incompatible agendas that could hinder free trade could be avoided.

The inclusion of MSME’s and innovation for developing countries were highly prioritized through the past conventions, as it could raise the nations’ production, and boost the manufacturing of local products. Through the help of other countries and by strengthening its diplomatic relation, the Philippines might be a step closer in realizing all of it goals.

The dependence of every state to each other shows that good, and strong economic ties are important in growth. Countries with only a strong leader without allies could struggle during economic downturns. Moreover, a state that shuts down opportunities to the rest of the world could be in disadvantage, because like men, no state could survive alone. ing views about its necessity. With these events, what would be the possible effects on the economy of the Philippines? Such views and criticism can create uncertainty in the country making tourists and foreign investors hesitant to engage in the economic activities of the Philippines.

Despite the declaration of Martial Law in Mindanao due to the Marawi siege and the administration’s “war on drugs”, it have not stopped

(Continued on page 16)

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June – March 2017 MARAWI continue….

the country’s emerging economy which was even recognized as the world’s 10th fastest growing economy in the world in 2017 according to the World Bank’s latest edition of Global Economic Prospects. World Bank projects that the nation’s real GDP will grow at a rate of 6.9 percent in 2017 and 2018, supported by its sound domestic macroeconomic fundamentals and an accelerating recovery among other emerging markets and developing economies (World Bank, 2017).

In a report of Philippine Statistics Authority (PSA), Gross Domestic Product (GDP) of the Philippines grew by 6.9 percent in the third quarter of 2017; Manufacturing, Trade, Real Estate, Renting and Business Activities as the main drivers of growth for the quarter. And among the major economic sectors, Industry recorded the fastest growth of 7.5 percent, while Agriculture slowed down by 2.5 percent from 3.0 percent growth in the previous year (PSA).

However, the World Bank admitted that risks remain.

"Lingering uncertainty about this administration's reform agenda might be a cause of caution among investors. But not withstanding this uncertainty, the Philippines will continue to grow," said Birgit Hansl, World Bank's lead economist.

Government economic managers issued statements that this Marawi incident will have little effect on the Philippine economy especially if resolved immediately. Department of Finance Sec. Dominguez stated that Marawi and the whole Autonomous Region of Muslim Mindanao (ARMM), accounts only for less than 1 percent of the Philippine Gross Domestic Product (GDP) and the whole of Mindanao which accounts for about 14 percent of GDP (www.philstar.com).

Police data shows that the crime rate has dropped because of the campaign of the current administration against illegal drugs, but it cannot change what people perceive as the true state of law and order. It is however very important that the government makes the right move and initiatives to gain the people's trust and confidence because more than the numbers and recognitions about the country, people discern peace and order situation around what they see and heard from TV and radio news broadcasts as well as in newspapers and online news sites.

Therefore, this must be the time that every Filipino hope for the best and will help the government in all its efforts to resolve and end what kind of war the nation is going through. It is not the time to use the situation for political interests but the time where everyone should be unified and act collectively for the same goal of ending these wars and achieving continuous economic growth.

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Let’s talk!

by Glenn Legaspi

(Territorial Dispute despite the Friendly Relations of China and Philippines) The territorial dispute in the West Philippine Sea had been making headlines for years. This dispute involves both island and maritime claims among several sovereign states within the region specifically the Philippines and China. Claimants are interested in retaining and acquiring rights to fishing areas, potential exploitation of oil and natural gas, and the strategic control of important shipping lanes.

In July 2016, an arbitration tribunal constituted under Annex VII of the United Nations Convention on the Law of the Sea (UNCLOS) ruled in favor of the Philippines (Jones, 2016). However, China does not recognize the tribunal and its ruling being unenforceable, insisting that the matter should be resolved through bilateral negotiations with other claimants. It is in fact that bilateral talk is one of the most effective ways in solving the problem because using force will just intensify the issue and will resolve nothing.

Early in his term, President Rodrigo Duterte already made clear his penchant towards an independent foreign policy. Parenthetically, part of this is the desire to have a soft landing in managing differences with China’s growing geo-economic profile which was manifested when Duterte quickly and (Continued on page )7_

June - March 2017 TERRITORIAL DISPUTE continued…

appointed a special envoy to China and made it his first official state visit destination on last October 2016. During his visit, Duterte announced that the spring time has about to come in Tsino-Philippine relations (Briefing, 2017).

Since then, there have been three significant positive achievements on both leaderships: First, the South China Sea tensions have de-escalated. Both nations are on track toward restoring political and mutual trust after years of diplomatic enmity. For instance, a feasible arrangement at Scarborough Shoal was reached as Filipino fishermen now have unfettered access to the area. Second, the overall bilateral relations have been normalized. In fact, the State visit last year by President Duterte to China secured an investment and credit line pledges amounting to US$ 24 billion. The total amount includes US$ 15 billion worth of investment projects and US$ 9 billion in credit facilities (Briefing, 2017). Third, China has become more involved in the Philippine domestic and socio-economic agenda. China is becoming a partner in the provision of country’s domestic public goods.

The Trade and Industry secretary Ramon Lopez said that just January 2017, Chinese investors have purchased US$ 1.7 billion worth of agricultural products from the Philippines and several letters of intent have also been signed for potential investments by Chinese firms in the Philippines (Remitio, 2017). Moreover, the tourism industry expects the boost of Chinese visitors in the country. Therefore, continuously pursuing closer ties with China is favourable and beneficial for the Philippine economy.

However, despite of these improving bilateral relationships, China continues to expand its artificial islands in the Spratly’s, which is already fixing its gaze on the Benham Rise and may proceed with building military structures in the Scarborough Shoal. Thus, it is extremely crucial for the present administration to constantly remind China not to set aside the arbitration ruling. Even though the arbitration tribunal’s decision has no enforcement capability or mechanism on its own, the Philippines should continue to use it as leverage through different channels of negotiation, including bilateral talks in order to avoid provocative acts in West Philippine Sea.

Free Tertiary Education: For Better or For Worse?

by Bianca Yllana There is no such thing as free lunch. An economist philosophy slack every economic activity within the market. Hence free education really a luscious deal an abyss.

On August 3, 2017 the R.A 10931 or Universal Access to Quality Tertiary Education Act now signed into law which grants students free tuition fees on public State Universities and College.; a step closer in freeing the educational system in the Philippines.

Let us make careful evaluations why economists are opposing it. Giving free tuition could be anti-poor. Education is not evenly distributed especially in rural remote areas, Although the 1987 Philippine Constitution expressing states that primary and secondary education are free, due to factors like inadequate school facilities, and lack of teachers.

The poorest of the poor could not bring theirselves to universities because they drop to school at the early stage of formal education. From a statement of Secretary Benjamin Diokno of Department of Budget Management “only 12% of the poor get to the state universities, 12%, and when you say free tuition you are actually subsidizing the rich”.

Parents stop sending their kids to school to make them available for work even earning little amount just to support the family’s basic needs. Thus, instead of investing in tertiary education it would be best to start building more schools to accommodate the increasing number of population particularly on areas which are lacking it. As we all know high school diploma is a requisite in entering college.

On the other hand, groups supporting the program say it’s a way necessary to free the education system from the hands of capitalist that make education part of their businesses.

Continued on page 20)

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Department of Economics Thirty-one Years of Bringing Excellence

by Julia Elizze Jardinico The Department of Economics (DE) celebrated its 31st Founding Anniversary with the theme of “Reimagine the Impossible: 31st Year of Bringing Excellence and Collaborative Effort towards Departmental’s Goal and Success” in a days of activities held at the Polytechnic University of the Philippines (PUP) last February 6 to 8, 2017.

The celebration was opened with a parade wherein ‘Ekonomistas’ retro style outfit paved way, showcasing the creativity in fashion that flashbacked the retro years. Followed by the ceremony; wherein DE Chairperson Norie L. Maniego gave her opening remarks. Then, it was followed by giving thanks for the previous years through anniversary mass at the PUP Interfaith Chapel attended by the faculty members and students. After the thanksgiving mass, each section showed off their talents in a special number, singing and dancing through the groovy music of the 80’s and 90’s. Economics Week (Econ Week) will never be without the battle of the brains. The participating students actively engaged in the Academic Contests. Later that day was the pre-pageant of Ms. Economics 2018, where everyone cheered for their favorite candidate.

Adding more excitement to the event were the sports such as basketball, volleyball and badminton, where each sections desired the top rank. Moreover, fellowship games which include chubby bunny, longest line and card relay were also enjoyed by the economics students showing their eagerness and competitiveness in each game.

The Optima Night or ‘Econ Night’ held at San Juan Gymnasium, San Juan, Manila has been the highlight and most awaited event of the Econ Week. With a Masquerade Ball theme, every

‘Ekonomista’ was elegantly dressed for the night. Ladies wore their gowns and the gentlemen wore their suit and tie, which gave them a ‘JS Prom’ kind of vibe, where they danced through the music and glitz of dancing lights. The night was started with the Ms. Economics 2018 Pageant, where the beautiful candidates walked their way to the stage wearing their stunning evening gown and showed their wits in the question and answer portion. Another part of the night was the awarding of the President’s and Dean’s Lister for each section and the awarding of the activities’ winners during the first two days of the event. As for the overall champion of the 31st Economics Week, BSE 4-1 was the one to take home the award. Furthermore, Photo booth was also enjoyed by the ‘Ekonomistas’ for the rest of the night, preserving happy memories with their friends during that momentous event.

The economics week was indeed a success, with everyone enjoying the events and participating in the activities leaving them with lifelong memories for the last semester of the school year 2017 -2018.

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June – March 2017 Education continued...

In the short run the country may losses and costs, its benefit will be for the long term.

According to professor Mamahan, there is a private non-market benefit for those who have degrees (e.g. better personal health, improved cognitive development) and; there is a social nonmarket benefits in which parents who have degrees will later on encourage their children to get one too.

However, a free education mind-set may arise leaning the burden to the tax payers paying the tuition subsidies. Based on The Hechinger Report, free education in Germany caused an increase of 37% imposition in tax, burdening the middle-income and low-income families, manifesting that social cost is much greater than the benefit itself. The society is already burden by greater taxes but the benefit goes to individuals, who, in reality have greater have access to free education. The usual life cycle of a human being is to graduate, to find a job, and to raise a family, and only a small percentage of graduates have thought of serving the society. Majority of the population pay taxes but is it enough to subsidize such policy? How about we make a change for a better world?

Free tuition fee must be handed alone to the students living below the poverty to better off their standing in life. The Unified Student Financial Assistant System (UNIFAST) students are being properly identified based on the cost of liv-

Does Micro financing Really Help Low Income People?

by Fernando P. Pait Jr. Microfinancing in the Philippines has been a widespread program implemented by different government agencies. It is intended to uplift the small entrepreneurs who are in need of access to financial assistance, and provide remedy to poverty, especially in rural areas. Micro finance includes small financial services provided by the banks and Microfinancing Institutions (MFI) (e.g. small loans, micro insurance, small deposits etc. and micro credit).

20 The Oikonomos Nexus

ing and the government fully financed college, technical-vocational scholarship and loans to those who truly need and deserve it. In Germany, which have free education system, students from low-income families who still cannot afford to pay the cost of living are push to work part-time which make it hard for them to focus studying that later on causes them to leave school instead.

To consider, additional budget for tertiary education will lead to a decrease on budget in other government services. The 2017-2018 school-year, some universities already conducted free-tuition fees wherein the national government allotted 8.3 Billion Peso National Budget.

Given the present economic standing of the country, if not foreign debts will bubble. That huge amount of money can finance other sectors like agriculture, health, environment and other programs such as poverty reduction which badly needs support.

Thus, free tertiary education may not be the solution, given our country’s current status.

What we need is to first fix every economic aspect and to properly allocate our resources so that everyone will benefit from it. Maybe, throughout the process we can make free education accessible to all without giving up other sectors. For today, this is too ambitious and too expensive policy; we must not be blinded by the word 'free' because in reality there is a greater cost in it.

In fact, the Department of Trade and Industry (DTI) formed Pondo sa Pagbabago at Pagasenso (P3) program following the current administration’s injunction to replace 5-6 money lending system in the Philippines and aims to lessen the interest rate where microfinance is made available to microenterprises.

P3 as a last resort of Micro, Small & Medium Enterprises (MSMEs) is provided as an intent for innovation to the production of the businesses which is expanded to dwell the lives of poor Filipinos in rural places. Moreover, the new program will also play a vital role on how the agriculture-related business will grow in terms of production and long-term business expansion. The creation of this kind of program will be an opportunity for small farmers lacking financial access.

(Continued on page 21)

June - March 2017 MICRO FINANCING continued…

In line with this, the 2017 General Appropriations Act has included fund

amounting to P1 Billion intended for financial assistance and added a scheme to allocate P19 Billion financing- initiative for small businesses in the next five years. The agenda plays promotes financial inclusion that provides favorable services among the poor since all beneficiaries of the P3 do not need to present any collateral to secure a loan unlike in other microfinance institutions and 5-6 money lending system.

Although micro financing in the Philippines can be considered as an alternative tool, to attain efficient and sustainable operations in surpassing business activities to lessen the burden cause of poverty, microfinance remains to be an extra simple opportunity that reduces poverty. This is also true from the other viewpoint of some international organizations. As a matter of fact, in a survey conducted by World Bank and Gates Foundation, the most common reason of taking out a loan or credit is for emergencies, family needs, housing costs and school fees which are very expensive in developing countries like Philippines (DTI Statistics, 2017).

MSME sector have proven its significance on the economic growth of the Philippines. Being able to fuel these micro businesses through lending of money can really help the sector to maximize its potential as one of the drivers of economic growth. DTI Statistics reported that MSMEs generated a total of 4,784,870 jobs in 2015 versus 2,981,819 for large enterprises (DTI Statistics, 2017). Clearly, through the help of MFI, the potential of small enterprises has been enhanced and developed.

DTI Sec. Ramon Lopez emphasized the importance of alternative findings for MSMEs, “This alternative funding dedicated for micro and small enterprises is meant to discourage the 5-6 money lending system in our country,” he said. By this kind of government initiatives, development will be experience not just for the upper class of society or large businesses but also on microenterprises, agribusiness men, entrepreneurs and poor Filipinos.

Diamond Sets Out to Sell a Lifestyle, Not Just Shoes

by Khenneth Balceta Are you a fan of sneakers? Aren’t you tired of searching for those perfect sneakers only to go home empty-handed?

You do not need to worry; at Diamond Sneaks you can find authentic and trendy sneakers and instagrammable streetwears from all around the globe.

They have shoe brands like Adidas, Nike and Air Jordan and clothing lines such as Deadstock Manila, Supreme, Guess and some apparel like Rastaclat.

Established in mid-2015, Diamond Sneaks already become a go-to-store of sneaker lovers.

Some customers become a loyal word-of-mouth of advertisers for retailers who offer a great selection of brands. Sebastian Mob once reviewed, “Had great transactions with the owner. Buy with confidence. You can’t go wrong with Diamond Sneaks. It is one of the best sneaker stores in Manila.” Sean Ralph Pornel added, “Staffs are very friendly and if you want to look for those hard-to-get sneakers, this place is for you.” Truly, Diamond Sneaks is whatever-you-needwe’ve-got-inventory footwear store.

Rodney Diamante, the owner of Diamond Sneaks is a shoe enthusiast. He is an avid

Michael Jordan fan since childhood. Thus, he buys whatever shoes his idol wears. It all started in his second grade where he got his first Jordan 11 at Cartimar.

Even though he’s young and his mother gets angry sometimes with the shoes still he continues it. And it became his lifestyle and he wanted to share what he got abroad here in the Philippines.

For the people who are finding it hard to buy online, Diamond Sneaks has a brick and mortar store located at Island Plaza Salcedo Bldg., 105 Leviste Street. It opens daily from 10AM -8PM. Moreover, they ship thru LBC worldwide and cash-onhand delivery around Metro Manila. Feel free to contact them thru diamondsneaks20152yahoo.com.ph or thru direct message on their Facebook page – Diamond Sneaks.

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Importance of Obstacles

by Dianne Marie Ilagan Steve Jobs, founder of Apple Inc., was removed from the company he started. Bill Gates, one of the most famous self-make billionaires in the world failed in his first business. Oprah Winfrey, the now-TV mogul, was told once that she was unfit for television.

Steve Jobs, Bill Gates and Oprah Winfrey are just three of the most popular and successful personalities in the world. Just like anyone of us, they also went through difficult times but still they succeeded. Obstacles did not stop them from reaching the top.

Obstacles are always present in each person's life. It depends on the person on how he would deal with it, by throwing the towel or much better, to overcome it.

Why is it important for us to overcome our problems?

Imagine you are driving and a giant boulder blocks your way. You have choices of either giving up or finding other way. When you just go back, nothing will happen but when you find other way, you will reach your destination. Giving up leads to nothing less but overcoming problems will bring you to your goal.

According to Smita Singh, a successful entrepreneur, there are 4 ways to turn your obstacles into opportunities.

First is to perceive obstacles as merely a detour to your final goal. Set your mind that your goal is achievable and focus on it. While achieving your goal, problems are always present. These problems may slow you but what's important is to hurdle them all and to still get into your goal.

Second, hope is not a plan. That giant boulder that blocked your way will not disappear by just hoping for it to vanish. You have to do something. You have to think of ways how will you overcome hindrances and take the necessary actions to make it happen.

Third way is to focus on what you can do. Think of the abilities that you have and not those things that you cannot have. Turn every obstacle as a chance for you to become better. Use your abilities creatively to resolve a problem.

Fourth, we can't always control events but we can control our attitude. No matter how much prepared you are, fortuitous events happen. We can't control what may happen but we can prepare ourselves. Choose the right mind-set. Have a firm attitude. Be someone who does not give up easily so if sudden hindrances show up, you are equipped in facing the challenge.

"Failure is not the opposite of success, it is a part of it," my adviser in high school once said. It is true indeed that before you achieve success, you will first have numerous failures, just like what the successful persons went through. But what makes them successful is by using these hindrances as opportunities, not as a discouragement. Failing and obstacles are always part of your road to success. We just have to keep in mind that the pursuant of such is not to stop us but rather use it to give us lessons, strengthen us so we can use it as means to enhance our abilities.

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Unlawful Acts

by Jeroe D. Bertoldo Shabu, marijuana, ecstasy, and other illegal drugs impair the capacity of a person when being taken.

Over time, the excessive use of such will result to drug addiction which is considered as a long-lasting brain disease. Oftentimes, drug addicts are more vulnerable in doing criminal acts such as killings adding socioeconomic implication. For instance, around one-fifth of barangays in the Philippines are affected by drugs where National Capital Region (NCR) being the most affected with 92% drug-related cases (PDEA, 2015).

Comprehensive Dangerous Drugs Act of 2002 aims to safeguard the integrity of its territory and wellbeing of its citizenry particularly the youth from the harmful effects of dangerous drugs on their physical and mental well-being. Any involvement to illegal drugs constitutes violation to the law which would lead to, dropping the harmony in the society. Unlawful acts will have corresponding penalties. For instance, importation of dangerous drugs and/or control precursors and essential chemicals; will be penalized of life imprisonment to death and a fine ranging from five hundred thousand pesos (P500,000.00) to ten million pesos (P10,000,000.00). For drug pusher who use minors or mentally incapacitated individuals as runners, couriers or messengers, of any prohibited drugs, the maximum penalty shall be imposed upon him (www.pdea.gov.ph).

Illegal drugs are one of the biggest problems of in the country, because of its effect to the lives of innocent people and threat in the national security. According to statistics, majority of the drug abusers belong to poor families. According to the 2016 statistics of Dangerous Drugs Board, 44.69% of the drug abusers are unemployed, 48.96% are single, and majority earning Php13, 937.65 average monthly family income. Illegal drugs make its user less productive and contributing less to the economy. Moreover, people under the influence of drugs tend to be threat to safety of other people. Hence, the problem of illegal drugs should be resolved as soon as possible because these put everyone’s life at risks.

Since taking the office on June 30, 2016, President Duterte carried out campaign against illegal drugs commonly known as Oplan Tokhang to combat illegal drugs. According Philippine Drug Enforcement Agency (PDEA), Philippine National Police (PNP), National Bureau of Investigation (NBI), and Bureau of Correction (BOC), From July 1, 2016 to January 17, 2018 there were 81,919 anti-drug operations conducted, wherein 119,361 drug personalities were arrested; and 3,987 died in the anti-drug operations were 3,987. In addition, PDEA seized 2,560.48 kilos of shabu from July 1, 2016 to December 27, 2017 with a street value of 13.13 billion pesos after months of implementation.

Moreover, homicide cases resulting from such an operation from July 1, 2016 to January 17, 2018 were 2,235 wherein, 413 were solved and 1,822 cases are still under investigation (www.pia.gov.ph).

Despite the progress of Oplan Tokhang, to the Human Right advocates and questions the thousands of death rating during the campaign period. Human Rights

Watch research has found that police are falsifying evidence such as planting guns and drugs to justify the unlawful killings according to Peter Bouckaert, emergencies director at Human Rights Watch. Despite growing calls for an investigation, President Duterte has vowed to continue the campaign.

Photo from: Time.com. The Killing Time Poverty and unemployment are the core problem of why some people use illegal drugs. Thus, Government should resolve such problems by creating more jobs. Job opportunities serve as award for the people to have better life and signify chances to raise standard of living. Many Human Rights advocates call the use of other persons and just to solve the issues and gives due process to all the people subject to such operations.

Proper implementations of law do not lie as the judicial killings will solve the problem.

Illegal drugs has taken its toll to the society, economy, and most especially to the life of drug abusers. These only make life complicated and miserable.

The various cases of killings by drug addicts should serve as a wakeup call for the government to build a better framework to combat poverty and unemployment.

Lastly, everyone should choose life above anything and should be fully informed of how illegal drugs can ruin one’s life, do not dare to try some. As what Adam Rickitt says, “Drugs ruin people’s lives, break up families, and have disastrous effects on our communities

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Inside the TRAIN

by Patrick Acupan

Before the implementation of Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law, Duterte had already stated in his first State of the Nation Address (SONA) that his administration is in the ---reformation of the country’s 20-year-old tax regime into a “simpler, fairer, and more efficient” tax regime and seek to correct a number of deficiencies in the old tax system.

The path that TRAIN took was not the smoothest and fastest option. It passed through a series of stopovers of lobbying, debates and revisions during the Congress hearings, until it earned the approval of the bicameral committee and signed into law on December 19, 2017. On January 1, 2018, TRAIN law took effect which aims to generate revenue to fund a multi-billion infrastructure program of the Duterte Administration called “Build, build, build”.

A key component of the TRAIN Law is the lowering of Personal Income Taxes (PIT) for the majority of individual taxpayers, except the rich-

24 The Oikonomos Nexus

est 10% of the population who are subjected to higher tax rates. According to the Bureau of Internal Revenue (BIR) 83% or 8.3 million taxpayers with taxable income of Php 250,000 and below will be exempted from paying PIT. Personal Income Taxes are one of the most effective sources of government revenue. PITs usually come in the form of withholding taxes, therefore it is easier to collect and administer than other kinds of taxes like excise taxes since the impacts of excise taxes can dampen by avoiding or reducing the consumption of the affected commodities. The lowering of PIT will increase disposable income; however the government will have a loss of revenue from income taxes. How does the government affected by such loss?

The increase in disposable income is an incentive for consumers to purchase goods and services at greater amounts. However, consumers will experience an increase on the prices of specific group of commodities. Though, the imposition of higher excise tax, this tax is levied only on specific types of goods, like alcohol and tobacco. It is a type of tax that serves to discourage the consumption of goods on which they are imposed by making them less affordable. The TRAIN law includes excise taxes on automobile, fuel, tobacco, and some sugar-sweetened beverages among others.

TRAIN also includes Value Added Tax (VAT) base expansion and simplification of Estate and Donor’s Tax. VAT remains at a rate of 12% under the TRAIN law. The expansion of the valueadded tax base refers to the elimination of unnecessary exemptions. This will result to a stronger collection of revenue from VAT which is partly at 12%. In fact, our neighbors, in the South East Asia impose lower VAT rates but gain more revenue from those due to its strict implementation according to Usec. Karl Chua of the Department of Finance. In TRAIN, the sectors and individuals which remain to be, exempted from VAT are: Small businesses with total annual sales of Php 3 Million and below, raw food industry, agricultural products, health and education, senior citizens, PWDs, cooperatives, renewable energy, and others.

The simplification of Donor’s tax is characterized by a flat rate of 6% of net donations for gifts above P250,000 yearly, regardless of relationship between donor and donee. For the new estate tax, family homes worth P10 million and below are already exempted from estate tax contrary to the old system which exempts family homes worth P1 million only. To help heirs settle expenses relating to the passing of the deceased person, the TRAIN law also increased allowable withdrawals from the deceased person’s account to any amount, subject to a 6% final withholding tax.

One way to tax the rich is through their luxurious possessions. Finance Secretary Carlos Dominguez said the hike in prices of automobiles would mainly impact the higher social classes who could afford to buy luxury cars. The tax imposed on automobile was also said to be a measure in controlling the volume of cars that causes traffic roads and prevent individuals from buying additional units of cars. Additionally, Senator Recto said in an interview that automobile excise taxes can prevent the incidence of car smuggling. The approved tax schedule for cars is a 4-tier scheme. The biggest tax is imposed on cars with prices over P4 wherein 25% tax is subject to hybrid cars and 50% to non-hybrid cars.

Higher fuel prices are also expected under the newly approved tax regime. The staggered increase in fuel prices are charged per liter. In 2018, excise taxes of P2.50, P1, and P7 for Diesel, LPG, and Gas are impose respectively. A different tax schedule is prepared for the following years. The increase in fuel prices could create inflationary pressures on the prices of goods in the market since almost everything runs on fuel. However, it should be noted that there are other factors that causes inflation such as exchange rates and other determinants of market forces like supply and demand. Bangko Sentral ng Pilipinas have recently reported that an inflation rate of 3.95% was experienced in January 2019. Typically, anyone could easily say that TRAIN have caused this inflation but Department of Finance have confirmed that the real cause of the almost 4% inflation rate for January 2018 is due to the increased price of oil in the world market and the weak performance of Philippine peso. The good news is, part of the revenue from fuel excise taxes will be allotted for transfer programs such as the Unconditional Cash Transfers (UCT) which targets the poorest households as the main beneficiaries and for Public Transport Modernization. In addition, tax rates on fuel have remained to be unchanged for 20 years and the value of money have significantly changed over the span.

Other forms of Excise taxes under TRAIN law are:

The revenue is to be divided to two major expense groups. Thirty percent of the revenue will be allotted for education, health, targeted nutrition, anti-hunger programs, social protection, social welfare and benefits program for employment, housing, sugarcane and industry development act. While the bigger cut is for “Build, build, build program” (e.g. military infrastructure, sports facilities for public schools, and potable drinking water in all public spaces).

TRAIN is just the first package of tax reform bills that the Duterte administration aims to implement. As early as March 2018, the next tax reform bills will be prepared and passed to the legislative and then the lobbying begins again. In bird’s eye view, here is what the next packages are about: Package 2 will be about corporate income tax reform, rationalization of fiscal incentives, and rice tariffication, package 3 will be about property taxation, and package 4 will be about passive income and financial taxes.

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When the Fashionista in You Crosses Your Economist Side

by Dianne Marie Ilagan

In this fast changing world, can we still be special occasions. But then again, do not worry able to catch up the trends in the least cost way? since we are all economist at heart, use it in our It is applicable to say that, fashion chang- advantage, utilize our resources and be a fashes so fast. Whenever you go for shopping, you ionista in the most efficient way. will observe that boutiques and stores display different kinds of trendy clothes. Days or weeks after, those same boutique and store which only sell fashionable clothes, already have the other fashion items such as shoes, bags, and hats that they do not sell the last time. This rapid turnover of low-cost garment is called "fast fashion".

Since apparel manufacturers moved to developing countries where production costs are lower, clothes become cheaper. However being a fashionista and coping up with the trend, fast fashion is still costly and uneconomical.

We could buy cheaper clothes. Thrift shops such as Ukay-ukay, tiangges and sales are the common places for those who have a limited budget but still wanted an instagrammable fashion statement. You can buy much more clothes and save money than when you buy those in places such as malls or branded stores.

We could also buy higher quality clothes, more expensive but these can be used for a longer time. But what if it goes out of trend? We just need some creativity. We can still use it by recycling such by doing a do-it-yourself project or Fast fashions have made garments pur- DIY. Videos in the web provided a lot of these, so posely constructed to last only for a short time, we will never run out of ideas. If not, sell it to so it could easily be worn out and replaced by a earn money that you can use to buy new clothes. newer trend. Given the circumstances, a fashionThere are certain ways to join the craze ista wanna-be needs to buy new stuff. even if we are in a tight budget. We don't have to We could all agree that we don't want to be rich to be in style. We just have to be creative spend too much for a craze that will vanish very and use our economist minds. soon. But most circumstances require us to spend for our wardrobes such as in work, and

26 The Oikonomos Nexus

Paradox of Productivity

by Alvin Daniel Bañas

A paradox is defined as a statement that refutes or contradicts itself. Productivity is basically the ratio of the amount of value produced over the amount of cost or time required to do so. Technology, as one of the determinants of supply, stimulates higher supply by reducing production costs and increasing profit.

The paradox of productivity (also known as Solow computer paradox, which came from 1987 Nobel laureate in economics, Robert Solow, who said: “You can see the computer age everywhere but in the productivity statistics” is defined as the slowdown in productivity growth in the United States despite greater investments in information technology.

In the study conducted in the United States by the Bureau of Labor Statistics, computing capacity increased a hundredfold in the 1970s and 1980s while productivity growth dramatically slowed down from the 1960s to 1990s during the period of Information Age where the advent of computers and Internet is its onset (Brynjolfsson, 1993). This can be interpreted in layman’s term that information technology and labor productivity has an inverse relationship, whereas US gains improvements in computers and other technology, its productivity dramatically declines.

Advancements in Internet played a significant role in technological innovations but it has led into massive job losses and reduced labor such as the decline of subscriptions in newspapers because of the surge of news articles online, the decline of demand for bookstores because a lot of books can be accessed online (in Portable Document Format for example), and the shrink in music industry because of the reduced demand for compact disks (CDs.) Sony Pictures Entertainment; an enterprise in California that markets motion pictures, television programs, and recorded videos; also embraces energy-building and energy-renewing rituals at all levels.

More than 3,000 of its company’s 6,300 employees worldwide are gone through their energy management program; 85% of its participants have said that the energy management program have made them more focused and productive. More than 90% stated that it helped them bring more energy to work every day and 84% believe that they feel abler to manage their job’s demands and become more engaged at work. Sony believes that these changes have helped boost their company’s performance and despite the recession and collapse in DVD sales, it had its most profitable year in 2008 and one of its highest revenue years in 2009.

The paradox of productivity also affects employee management or employment in particular. A 2007 survey of 90,000 employees worldwide by Towers Perrin, a professional services firm in Connecticut that specializes in human resources and financial services consultation, found that only 21% felt fully engaged at work and nearly 40% were disengaged. The low levels of employee engagement caused a 33 % annual decline in their operating income and 11% annual decline in earnings growth.

Employee engagement may be affected by technology in terms of whether an employee does the minimum required for them versus proactively driving innovation for the organization (Schwartz, 2010).

The bottom line of this is that technology and labor productivity has a negative relationship.

An increase in the information technology will lead to a dramatic decline in productivity, as more workers lose jobs because machine and computers replace them resulting unemployment.

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Let’s Do Food Tripping in PUP

in shake? Have if for 30 pesos.

Just a simple and easy meal? Get your sandwich and burger for 20 up to 30 pesos, your

by Precious Ann Cabaya and choice. It comes in Buy 1 take 1. That sounds Erika Navelgas pretty nice right? But not only that.

Meals in PUP are student-friendly. With The Food Hive Food Park? Grub Hub? Sagul 30 pesos in your pocket, you can have your faFood Park? El Neo Garahe? The Station vourite lutong-bahay meals. That will be enough Food Park? Happy Tables Resto Hub? fuel for you to face the challenges of the day that awaits.

StrEAT Maginhawa Food Park? The Yard?

You’re a quiet famished and you wanted an In a city where ‘Food is Life’, it is an obvi- upgraded meal? Try the all-time favourite ous thing to see that there is a growing rivalry in ‘Submarine’. It is a beef dish will bell pepper and food industry that flaunts its own uniqueness in lots of onions on top of it. You can enjoy it for 38 tastes and environment to meet the diverse needs pesos only.

Are you into ‘Silogs’? Satisfy your cravings for 25 and wants of the consumers.

The Food Park craze in Manila is flooding to 35 pesos only. It comes with drinks and friendeveryone’s notifications may it be on Facebook, ly accommodation from the sellers.

Feed your tummies with street foods such Twitter or Instragam and it is true that it keeps making louder and louder noise as more hubs and as kwek-kweks, fishballs and kikiamns (who places are opening their doors for everyone who is would have not know of those), lumpiang togue, turon, bananaque, siomai, cheese sticks and a lot in hunger of food for the heart and soul. more in store! You need Looking for exnot spend much for those citing and satisfying yummy little things. food experience? Need PUPian lifestyle not go far! would not be completed Thirst and hunger without having a taste of not your heart for Polyfamous FEWA that stands technic University of the for Foot-long Egg Philippines (PUP) is now Wrapped Around that has open arms and will not originated in PUP. This give you just consists of scrambled egg #LibrengEdukasyon but now offers its “Saan Photo from: Twitter.com Mj Loleng , @mjloleng that covers the foot-long with cabbage minced up Aabot Ang 50 Pesos for filling and cheese for the completion of the Mo”, the Pupian style.

The Great Wall in PUP and what is so flavour. You can individually enjoy for 42 pesos called The Intramuros with the delights it gives but if you wanted your friends to have a taste on with is ancient-themed walls and distinct style it, you can by having it sliced for two.

Another thing that adds up to PUPian lifethat surrounds some of the most iconic structures in the university such as the lagoon and the am- style is the Automatic Tubig Machine (ATM) that is phitheatre provide everyone a pleasant place to located in the corners of the campus, it is a water eat on. All of food stalls are located along the dispenser with a coin slot refilled by Marian walls that generates the lightness of the area. The Spring. Once you drop a coin, water will come out place offers tables and chairs under the shades of of it and will quench immediately your thirst, with the green trees that gives fresh air and brings you a minimum of a peso.

PUP is not just a home for a free yet qualithe smells of the foods.

You’re a pasta-addict? You got it! Only in ty education that continuously provides excelling PUP where you can have Carbonara and Chicken students but is also a home for satisfying food in a Pesto for 20 pesos. You can pair it with large- budget oriented approach.

So, what are you waiting for? Get your afsized drinks, Apple Punch, Blue and Pink Lemonade, Red Tea, Iced Tea, Taro, Cucumber, Gulaman, fordable yet amazing food experience in PUP now! name it and you’ll have it! You wanted your fruits Nothing is happier than a happy stomach.

28 The Oikonomos Nexus

Neon Light at the End of the Tunnel

by Khenneth Balceta

It is fascinating how an innocent child ripens into someone who cannot just influence but also lead a change. Change is relentless as long as there are people who carry the will. These changes can greatly influence how humankind view things especially in the field of economics.

Young Angus Deaton, a native scot, attended James Gillespie’s Boys School a few hundred yards away from his home on the edge of meadows. He did well enough but did not care for school much because of its strict movement and conforms to corporal punishment which made him often afraid.

His educational highlights are not on a four walled classroom. His father spent a lot of time with him teaching how to take square roots, and took him to museums and botanical gardens.

He went to a local High School in Hawick where he learned Latin. Several teachers in his school allot their time to train him for competitive examination to be a foundation’s scholar at Fettes College. He worked hard for many months that affect him physical. Eventually, Deaton got one of the scholarships.

Angus specialized in mathematics and physics that open him time for activities. He continued to play piano and rugby. Later, he got into Fitzwilliam College at Cambridge. He said that the lack of forced learning was great for him because he learned to browse, worked on things that only make him interested, guided by his enthusiasm and by his mistakes.

He later became an economist in Britain though he did not originally plan to take a degree in Economics. He continued to work on what he had started at Fettes, browsing across areas that would

eventually come together to open up to new ideas.

“When I learn something that I want to learn, and do it in my own way, I often make mistakes and it is usually slow, but when it is done, it tends to stick (like taking square roots), and there is always the chance that I find something that is not so well known after all” Deaton said.

When he got to Cambridge, it turned out that Mathematics was not what he wanted to do if he had to do it fulltime. Eventually his colleagues and tutors told him to take the previously unconsidered option called Economics. He took the degree and work as a research assistant.

During his time in the University, he met John Muellbauer, who was a lecturer at the University of Warwick. They found a common interest subject concerning consumer behaviour, though coming from different perspective.

Later his collaboration with John Muellbauer flourished at Bristol. They worked on the development of the “Almost Ideal Demand System”, thinking of different functional form and trying to shape one that would be ideal. They came up with a united and relatively new approach to consumer that would be useful to others.

In 2015, Angus Deaton won the Nobel Prize in Economics. According to Robert Hackett, the selection committee told that Deaton earned the award for three major contributions to the field.

First, his Almost Ideal Demand System in 1980’s shows how the demand for each good depends on the prices of all goods on individual incomes. Second, his research in the 90’s which countered prevailing macroeconomic theories of consumption by pointing out the flaws of aggregate data. And third, for pioneering the use of household surveys to collect more accurate, empirical, and individualized economic data in developing countries.

It depicts the understanding of the relationship between consumption of goods and services for designing economic policy plays a critical role in human welfare.

His research shows how consumption depends on prices, making consumption in related to income and saving, and shows how the data on consumption can be used to analyze welfare, poverty, and economic development.

His work transforms the fields of microeconomics, macroeconomics and development economics by emphasizing the links between individual consumption decisions and outcomes for the whole economy. But his work does not end in influencing these three fields, it could be a foundation of new studies that will bring improvement on the existing theories and concepts we have today.

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that the world is a wild jungle and only the strong ones will survive (Survival of the fittest). I remember when I was in fifth grade I got into a bicycle accident.

So I went home crying. I thought my grandparents

by Rachelle Louise Avila will comfort me and cure my wounds, of course. But instead, they get mad at me. They say it’s my fault. It is I know. From then on, I learned my lesson. It is not “Who lives in a pineapple under the sea? Ab- to ride a bicycle again. But to ride on that bicycle all sorbent and yellow and porous is he? If nautical non- over again. Until I am satisfy. Albert Einstein said, sense be something you wish. Then drop on the deck Life is like riding a bicycle to keep your balance, you and flop like a fish." Every Batang 90’s, the persons must keep moving. The road we will take is a rough, who are born in the 1990s, surely knows this. Child- steep, narrow, and dangerous one. And that’s fine. “It hood days were the best days of my life. I still re- is not the strongest of the species that survives, ramember playing tumbang preso, harurot, tagu- ther the most intelligent that survives. It is the one taguan, chinese garter, luksong baka, text, paway that is most adaptable to change. with my playmates. And when it's rainy season, I will Second is to Believe. Like what Anne Frank said that just watch cartoons all day long such as Dora the Ex- despite everything, people are naturally good. One plorer, Mr. Bean, The Adventures of Jimmy Neutron, day, when I went to a police station with my sister to and my favourite, Spongebob Squarepants. I never get her NBI clearance, I saw ten prisoners. At the imagine that this day will come. That I will grow old- back of my mind while looking at them, is a question. er. I never think of sleepless nights and tiring days. I Are they that bad to be here? Are they bad people? never think of stress and disappointments. I never One mistake, and everyone will think you don’t do think of life being complicated to live. anything right. Sometimes we are like those prisonToday that my world became bigger, it opened ers, locked down by others’ sins. We are haunted by my eyes to see hunger, death and war. But every things they’ve done to us. That’s why it is hard to betime circumstances drag me down, I am always being lieve that there are still out there who’s not like reminded by Spongebob Squarepants, to think of all them. But holding anger is a poison. It eats you from the beauty still left around us and be happy. the inside. We think that hating is a weapon that atWe will always encounter trouble every mi- tacks the person who harmed us. But hatred is a nute of our lives. That is the reality. In a search for curved blade. And the harm we do, we do to ouranswer, I made my own survey and asked ten people selves. on how we can protect ourselves from the uncertain- Lastly is to Confess and always tell the truth. Have ty of the world. you experience in school, when you know the anA psychology student answered, "By using swer, but you don’t raise your hand because you’re defense mechanisms. We humans cannot live with- not sure? And it’s annoying when you realized your out using defense mechanisms, we tend to deny, ra- right, and missed the chance to have a grade. Many tionalize, and sublimate just to protect our emotions students relate to this including me. Simple things or as human being. We all know that everything in like that made me think how complicated our society this world is inevitable. On the other hand, I perceive is. It is not that I am afraid that my answer is wrong. things positively and avoid negative thoughts or situ- It is being criticize. They say don’t be afraid, believe ation that will ruin me as human being." Then I ask in yourself, you can do it, and don’t mind them. I another person, and he said "In this modern world, want to do that, really. But I don’t know how. Speakpeople are easily accepting what the society has giv- ing our mind is harder than standing for it. Because, en them, without comprehending further if it is ben- it is be the first step to do. Even before we open our eficial or not. For me, I can protect myself in any as- lips we are being judged. And this kind of mind-set pect of life today, in simply filtering information, ac- will hinder us from everything. I know exactly how cepting what can be beneficial and rejecting what difficult it is to be the real you. But the simplest thing cannot be beneficial. By this mind-set, I can be more we can do is just do what you want to do. No one intelligent in choosing what I would practice in life will ever fit in to the standard of this world. Our and to lessen agony that I could possibly encounter heartbeat can be gone in a twinkling of an eye. So in this unstable world." From these responses I ar- live our lives to the fullest but not to the foolish. rived with a conclusion; to choose things correctly. Stay weird. And love yourself for who you are, and "Everything begins with a decision. Then, we have to others will do. manage that decision for the rest of your life." John The real question in life is not "How can I Maxwell said. protect myself?" but, "How will I live my life?" As Consequently, I'd realized that no matter how youth let us be reminded how our Almighty wants us hard I try to choose the right things, it can't fully to live, in 1 Timothy 4:12, "Don't let anyone look protect me; I will always end up wounded. So I ask down on you because you are young, but set an exmyself again, how can I protect myself from life un- ample for the believers in speech, in conduct, in love, certainties. in faith and in purity."

It is as easy as A, B, and C. First is to Accept,

A B C of Life

30 The Oikonomos Nexus

The Price of Information

by Emerald Oconer

In the technological era where information is just one click away, like two sides of a coin prevails: one says knowledge, and the other side is ignorance.

Information is within the grasp of our hands however we keep on looking for the cure to stupidity; we are holding it—perhaps even clutching it—yet we remain blinded. Information has a burden that we should carry responsibly because every word that will come out in our mouth might affect others and even ourselves, positively or negatively. Modern day knowledge could either be the hardest truth or the sweetest lie. Nowadays, majority of the population are easily swayed by any information that interests them, without any verifying its validity. Most people keep flipping the coin only to be leads them in gullibility.

Talking about these two sides of the same coin leads us to the issue of credibility and being critical into believing what is real and what are not, at the same time, the people behind the misleading information.

“Join me, fellow DDS. It’s time that we don’t rely on fake news of some mainstream media, and let us strengthen social media with the help of the true DDS. Because we are the media of Duterte,” An irony from the recently appointed Presidential Communications Operations Office (PCOO) Undersecretary Mocha Uson, in which herself has seen entangled with issues regarding fake news. Several events starting from the wrong pictures of the Philippine Army to false accusations and fallacious claims resulted to criticisms and questions on her fitness to the position. A recent issue about her statement, famous Mayon Volcano is found in “Naga” has been the talk all over the news and even in various satirical sites.

Despite some of her

“inaccuracies”, people are swayed by her opinions about the happenings in the current administration.

Currently Uson holds 5.2 million followers on her social media blog most coming from the avid supporter of President Rodrigo Duterte. It seems that these followers of her are compelled by unwavering will in facing her own struggles. However, she needs to learn how to be responsible to the words coming from her mouth, because saying her overused phrase, “I’m not a professional journalist, I’m just a blogger who expresses her opinion,” is not working anymore for the enraged critics of her. Moreover, her emergence from a former sexy star to one of the highest rating government officials added to the enragement of others. Why would people choose to listen to a non-expert than to listen to journalists who are authority in the field of news casting and studied years in mastering the area.

The spread of false news is rampant all over the place and people still lack the power to sieve what is true. Contents from sites like So, What’s News?, The Philippine Trend, Adobo Chronicles and other satirical pages in the internet are still believed in by some which often results to blind faith. We could see this deep rooted in the Filipino culture often known as idolatry, which means extreme admiration of a person to something or someone.

To further, according to a survey conducted by EON Group, a communications agency, 9 out of 10 or 87.3% of Filipinos trust social media rather than traditional media. Whatever convenient it may be, this displays a greater risk because of its vulnerability to biases and lack of information from credible sources.

In any case, this is just a mere representation of what the country is dealing with fake news. The power to convey information could bring the mass to confusion and misperception when it is handed to the wrong person. It may not seem as it is, but someone, somewhere, there are people who will actually believe in what you express. There is an actual cost that we should always pay in handling information the responsibility of sharing it to others.

We must learn to learn to be critical and rational.

Believing easily on what the internet says indicates that you could be practically feeding them. That is why some known credible news sources have pave the way to counter such by raising people’s awareness and giving tips through their news articles.

All things said, as a citizen; do not be afraid to ask, “Is it plausible? Does the source have proper credentials? Is the work properly credited from where it is due? Is it being biased?” From these simple questions, we could finally understand various perspectives from different people. Always keep in mind that what seemed to be plausible is not necessarily factual, and what seemed to be unbelievable does not mean that it cannot be true. Simply, the side of a coin that says “ignorance” could be avoided with a little dash of fact-checking and a little bit of research. Only then information would be free.

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In Ancient Egypt, Egyptian Pharaohs imposed tax on cooking oil where people had to buy their taxed cooking oil from the Pharaoh's monopoly. To ensure that the people were not avoiding the cooking oil tax, Pharaohs would audit households to determine if appropriate amount of cooking oil was consumed. Reusing previously purchased cooking oil or generating substitute for the taxed oil was prohibited.

Pecunia non olet" or “Money does not stink!" is a famous Latin maxim. During the 1st century AD, Roman Emperor Vaspasian taxed urine. Urine was valued because of its ammonia content which was sold as an essential ingredient for several chemical processes like for whitening teeth and laundering clothes. Therefore, those who obtained valuable urine from collectors were being charged with tax.

During the middle Ages, European governments imposed tax on soap. It remained in effect for a very long time.

Great Britain repeals its soap tax in 1835.

In 1705, Russian Emperor Peter the Great charged a tax on men's facial hair or beards in order to adopt the clean-shaven look which was common in Western Europe. Thus, all bearded men were forced to pay charge.

The French had a salt tax called the "gabelle". The high rate and unequal distribution of the gabelle provoked widespread contraband dealing in salt by smugglers and it became one of the contributing factors to the French Revolution.

In 1660, England placed a tax on fireplaces. As a result, people covered their fireplaces with bricks to avoid paying tax.

In 1696, England introduced a window tax which was coined as "daylight robbery". It is all about taxing houses based on the number of windows they had. As a result, many houses covered their windows with bricks in order to avoid paying the tax. Eventually this became a health problem and ultimately led to the tax’s repeal in 1851.

In 1712, England imposed a tax on printed wallpaper. Builders avoided the tax by hanging plain wallpaper and painting patterns on the walls.

In 1789, England introduced a tax on candles. People were forbidden from making their own candles unless they obtained a license and paid taxes for candles they produced. The tax was repealed in 1831. Thus, it led to a more widespread popularity of candles.

In 1795, England put a tax on the aromatic powders that men and women put on their wigs to minimize the odor of sweat. Because of the tax, there was a dramatic decline in the popularity of wigs.

England has a tax on televisions. If you own a television in your home, you must pay a fee, previously called television license. Color televisions are taxed at a higher rate than black and white televisions. This tax did not exempt the blinds: If a person is legally blind and has a TV at home, he is still required to pay half of the fee. Failure to pay this fee is subject to criminal penalties.

Source: www.efile.com

32 The Oikonomos Nexus

New York City places a special tax on prepared foods; allowing foods to be taxed twice. (e.g. sliced bagels were taxed once as food and will be taxed again as prepared food).

States like Iowa, Pennsylvania, and New Jersey exempt pumpkins from a sales tax but only if they will be eaten and not carved.

In Arkansas, body piercings, pet grooming, and gutter cleaning are all subject to a 6% sales tax.

In Chicago, candy that is prepared with flour is taxed as food at 1% while candy that is prepared without flour is taxed as candy at 6.25%.

In Texas, Christmas tree decoration services are subject to tax only if the decorator provides the decorations and ornaments. In addition, there is a tax on holiday-themed pictures that are meant to be placed on windows.

Many countries levy a "jock tax" on any income earned by entertainers and athletes while working in that country. Hence, athletes have to pay taxes on a portion of their income in any place they play.

Wisconsin is one of the few states that imposed tax on internet access. When dial-up was a popular method of getting online, double taxation occurs because phone calls were also taxed.

In Colorado ,non-essential food items such as straws and cup lids are subject to tax while essential food items are tax-free.

In New Mexico, people over 100 years old are tax-exempt but only if they are independents.

Source: www.efile.com

SPONSORS:

The Oikonomos Nexus

33

destructive forces that threatens the human race.

It can take thousands of lives and can leave everything completely ruined. The history has provided reports on worst earthquakes and all of it was cautions: “Keep yourselves prepared.” These are all literally wakeup calls for earthquake awareness and preparedness. Alerts and cautions are all over the internet. Books, articles, movies, short clips and sorts of access are handed down Photo eFoodsDirect

How to Save a Life?

by Erica Navelgas The crowd was trapped on the edge of a catastrophe. People were staring at a horrible nightmare that is about to capture and eat them alive. The scene that lay before them was completely heart pounding.

to us to inform and educate us of preventive actions to at least save ourselves when danger strikes.

Books were written and published to provide ample warning of the destructive quakes. A daily newspaper such as The Los Angeles Times published on April 18, 1985 has an ominous report on the Big One. It stated that, “The Big One, in case you had doubts, is on its way and probably will rumble through Southern California within 30 years.” Petra Nemcova once said in her

The streets, the people, the very atmos- interview with The Guardian, “We cannot stop phere. Everything has reached its end.

There were fear and panic. A woman was uncontrollably shaking. Boys and girls were grunting and indistinctly shouting. One was

natural disasters but we can arm ourselves with knowledge: so many lives wouldn’t have to be lost if there was enough disaster preparedness.”

Earthquakes have been the subject of films

shrieking. The other thought: “I’m going to have a for the last years in film industry, depicting the

heart attack.” Some just held their rosaries and possible picture of how destructive an earthstarted to pray: “Help me Father. Save all of us.” quake can be. And shown how earthquakes can And there were also few who thought: “The end take lives and destroy infrastructures as their in-

of everything has come.”

Getting out of there was a complete gridlock nightmare.

Earth’s crust is vibrating, tectonic plates are shifting, the ground is yawning open and the rocks are falling. Buildings and streets are collapsing. Sirens are wailing, alarms are beeping. There are loud screams. Are we prepared enough to armour our lives?

Earthquakes are one of the nature’s most

34 The Oikonomos Nexus

tensity varies. These movies may be outlandish but the risks portrayed are real.

The Rock (Dwane) has something to say about this in the movie San Andreas, “We can’t predict earthquakes but we can prepare for them.

Nothing sells insurance like a disaster, but perhaps a suitably dramatic disaster film will have similar effect.”

The occurrences of earthquakes are reported worldwide one after another.

Scientists are utilizing all their resources to give for at least 72 hours. That is the period that fedus all the necessary information about earth- eral, state and local governments have said you quake, tsunami and its hazards, extend their may not be able to rely on help from them. hands to give us understanding on hazard maps and preparedness and mitigation. They use their instruments and to monitor the magnitude and the size of the earthquake’s source. Seismologists also keep a close watch on all of the world’s tectonic plates.

Another way of increasing our knowledge on such calamities is through reading. Earthquake preparedness took some liberties with geology, physics and ordinary common sense. We must also gain interest in attending seminars about earthquake awareness and disaster prepared-

It is not an issue of whether or not it will ness. happen but rather when it will happen. So when the ground shakes, be prepared, pack our essentials and take note of these definite dos and don’ts as advised by disaster preparedness experts (Earthquake Preparedness: Shakedown for the Shakeup, 1974).

East, west, south and north will all be shaken. No one listens until the ground shakes.

Earthquakes are real. And they are coming, tomorrow or maybe soon. It can happen the next morning, when the night is calm, when people are busy of their lives and so unmindful. People are

- Stay calm. Take a deep breath and allow your too busy with their lives that they forget how heart to slide back down out of your throat. You earthquakes are and how this will rock their can scream and yell, pray or count to 100. Pretty worlds when the bomb is over. soon the earth will stop shaking.

And who should we call? Everybody, boys

- Pick a place in your home to serve as a shelter and girls, young and old, may you be rich or poor, and do it before the quake.

- If at work, don't pick the same place as the worker sitting next to you. Plan ahead. Talk to that person to assign different desks where you should go.

- If you have taken refuge under furniture, stay under it.

this must concern us! It is about time to start growing our sense of awareness to natural calamities. When the Earth starts to shake, let’s not forget three words that our lives are going to depend on. Duck. Cover. Hold.

Photo from: google.com

If you are in a car when the earthquake hits, steer away from bridges and overpasses, stop and stay put. A car is an excellent shock absorber and will jiggle fearsomely on its springs during an earthquake, but it's a fairly safe cocoon from which to assess your situation.

- Stay away from elevators. You may be stranded if there is an electrical failure.

- Store enough food, water and other supplies

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