Opinion 26 billionaires = 3.8 billion poorest CROSSROADS JONATHAN DE LA CRUZ AS OF the end of 2018, the 26 richest persons in the world have the same wealth as the 3.8 billion poorest, half the global population. This is the gist of the report of Oxfam, the global charity group, released last week as the world’s political and business leaders meet in Davos, Switzerland for the annual World Economic Forum. That this was meant to shock the world specially the richest and most powerful persons and nations into action and do something about the state of poverty and inequality was not surprising. Indeed, the figures dished out appear to be solid, culled as these were from statistics churned out no less by Credit Suisse, a financial institution of note. Indeed we should be shocked by the extent of poverty and disparities obtaining in the world. For years, the organization has been monitoring the global poverty and inequality situation. If only for the shock effect, we should already be thankful. But as it shocked, it also provided the impetus to get the world’s richest to pledge more to end this scourge, this abominable situation where billions of people barely live even in the most advanced countries, with a modicum of success. The latest reports show that more and more of the wealthy in most countries have given billions of dollars to support a lot of worthy causes from fighting poverty and malnutrition, to medical research, to educational and training pursuits to job generation and food packs and disaster, relief and rehabilitation works. In fact, a number of those 26 wealthy persons mentioned in the Oxfam report, notably Microsoft founder Bill Gates and Berkshire Hathaway’s Warren Buffett, initiated and signed a so-called “Giving Pledge” in 2010 meant to sign off, as it were, a good part of their earthly holdings to support various charitable, poverty uplifting and people empowerment endeavors. Buffett, singled out as one of the best if not the best investor in America, pledged 99 percent of his known wealth valued at $53 billion to such causes. In pledging this huge amount, Buffett
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a market cap of just $10 billion. His BDO Unibank is the largest Philippine bank with P2.89 trillion in resources (18 percent of the system), P2.34 trillion in deposits (19 percent of the system), and P568.62 billion in market cap, making it the most valuable local bank. Henry’s retail network is formidable —71 malls, visited, on a good day, by six-million people; 2,212 retail outlets, and 1,843 bank branches. In the first nine months of 2018, SMIC had revenues of P307.4 billion (on track for P409 billion sales whole year), and profits of P26.2 billion (P35 billion if annualized). In 2017, SMIC was the Philippines’ fourth largest in sales (P396.15 billion) and fourth most profitable (P51.5 billion). In 1936, Henry spent half of his 10 centavos to buy a loaf of bread in the boat. But he fell ill because it had butter. Fortunately, he befriended another boy who found P20 lying on the boat’s deck. That sustained them during the perilous journey. When young Henry first saw his father, he cried. “There has to be a better life than this,” Henry told me in one interview eight years ago. His father’s store in Calle Echague was no larger than two square meters. It was multi-functional—a store by day, a bed by night, with the same table where goods were displayed serving as bed by nightfall. Every morning his father bought goods in Divisoria and carried them barefoot to Echague. It was backbreaking unrelenting work. From his father, Henry learned one
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said: “In my entire lifetime, everything that I’ve spent will be quite a bit less than 1 percent of everything I make. The other 99 percent plus will go to others because it has no utility to me. So it’s silly for me to not transfer that utility to people who can use it.” So far, this kind of thinking has animated close to 193 wealthy persons pledging close to $700 billion for humanitarian causes. That amount is nothing to sneer at and it is expected to even get bigger as more and more wealth is created worldwide giving more leeway to persons of value to give more to charities like OXFAM. If only for that the shock reports which this organization dishes out every year should be most welcome indeed.
We should focus on those living in the worst conditions.
But shocking and pledging, though necessary to awaken the world’s conscience, are not enough if we are to have a truly equitable, sustainable and empowering future. In fact, this report has taken fire from various sectors for “not telling all of the story” on the state of poverty and inequality in the world. A number of economists and scholars including the noted Swedish scholar Johan Norberg, a fellow of the conservative, US based Cato Institute, had a scathing retort to Oxfam’s report. Noted these critics: “The problem is Oxfam telling the wrong story. They blame Bill Gates and Mark Zuckerberg’s big bank accounts for everything from Brexit to Trump. They argue that increasing returns to those at the top is to blame for poverty at the bottom. And that we must fundamentally change our economic model to fix this. But it couldn’t be further from the truth. “Neoliberal reforms, where markets are opened up, regulations are scrapped and property rights enforced, have delivered dramatic progress in the fight against poverty. From India and Bangladesh to China and Vietnam, the story
thing—the importance of discipline, hard work, and good credit. Henry was born in Xiamen, China, on Oct. 25, 1924, as Sy Chi Sieng (in Chinese “to attain ultimate success”). The village was Ang-khue in the Diengho municipality of Jinjiang country. Sy Siu Tek, Henry’s father, was a diligent trader who sailed to Manila for better opportunities. He had put up a small business and remitted money back to Xiamen. Henry attended Grade 1 at the AngloChinese School in Quiapo but he was in such hurry he asked his teacher how he could speed up schooling. The reply: Have a grade of 90. He did. He finished grade school in five years, at the top of his class, remarkable given that he had no textbooks and could only afford second-hand ones. By 1941, when the Japanese bombed Pearl Harbor, the Sys already had two stores, which happily were spared of war-induced looting. Under Japanese rule, Henry, now 17, got a bike and busied himself doing the buying and selling for the two stores. “In good times, I do my usual work. In bad times, I work harder.” After the Battle of Manila, one of his two stores was razed, the other looted. The city was in ruins. His father left Manila and back to China. By the time the war ended in Manila, Henry had saved a few hundred pesos. He found a new business hub—Plaza Miranda. He began buying cigarettes by the cartons from American GIs and selling them by the pack, making a peso per pack. He also went into selling scrap metal and other odds and ends. Later, with rented space from Don Vicente Rufino on Calle Carriedo, Henry built his first store, selling
of the last three decades is freer trade and freer markets eliminating poverty. Indeed, it’s those countries who’ve tried to do things differently that have bucked the trend. Look at Venezuela, where extreme poverty has increased since 2000 and less-extreme (but still unpleasant) poverty more than doubled in 2015.” The story of the last 40 years is one of extraordinary achievement. Poverty has fallen dramatically. Back in 1977 nearly one in five children born would die before the age of five. It’s closer to one in forty now and still falling. As recently as 1990, 40 percent of the world lived on less than $1.25, it’s now fallen to less than 15 percent of the world. Swedish economist Johan Norberg points out that every minute 100 people are lifted out of poverty. And here’s the kicker, on most measures inequality itself has fallen. Economist Branko Milanovic points out that over the past 20 or so years income inequality has fallen over the globe. But rather than beating the drum for the free-market reforms pursued by so many developing countries that boost everyones’ incomes, Oxfam has chose to tell a story that assumes the pie is fixed. That increased wealth for Gates, Zuckerberg and Bezos means less wealth for everyone else. That’s simply not true, they became rich by creating products that benefit everyone. Wealth inequality is a side effect of stability. The three biggest equalizers of wealth in British history? Two World Wars and the Black Death. Recently? The financial crisis. We should stop worrying about the relative gap between the richest and poorest. Instead, it should be on the absolute condition of the worst of that we focus our concern. And when it comes to improving the absolute condition of the poorest, it’s the pro-market reforms pursued in China, India, and Vietnam that Oxfam should focus on. There is no question that the issue of poverty and inequality will animate serious debates in all nooks of the globe for years to come. Suffice it to say that reports such as Oxfam’s should give us a chance to take a long hard look at the measures which have been put in place preferably in our part of the world to ensure that we do more than talking and whining when it comes to this most critical concern of our lifetime.
anything he could. It was also his house by night. US shoe importers offered to sell him shoes by the job lot. The business prospered. With a partner, Lao Kang, he opened Plaza Shoe Store and a second, bigger store, Park Avenue Store. Henry introduced innovations in retailing like fixed pricing, after a Filipino GI walked into one of his stores and bought a pair of shoes without haggling. Henry felt guilty the GI was overcharged. With two stores, Henry quit night school, finishing only a two-year Associate in Commercial Science at FEU. In 1949, he got his first bank loan, P1 million, from Bank of China. Today, he owns the bank, in addition to BDO. In the 1950s and 1960s, Henry made trips to the United States to learn many things about retailing. The US had become the mecca of shopping centers, with the rise of Macy’s (1858), Sears (1893), and JC Penney (1903) following the post-war economic boom. Henry also travelled to Europe to observe the latest trends in fashion and retailing. In 1958, Tiger Bazaar, a partnership with Francisco Chong, was renamed Shoemart. It took off. A second store, on Carriedo Street, was opened. Henry introduced more innovations —sales girls dressed like stewardesses and very important, air-conditioning “so shoppers would feel like they are in America.” By 1959, Henry, after nine years of marriage to Felicidad, a teenage crush, had six children—Teresita (1950), Elizabeth (1952), Henry Jr (1953), Hans (1955), Herbert (1956), and Harley (1959). They are the new management team today. biznewsasia@gmail.com
My answer is that it will not. There are many other factors that will come into the picture. For example, Nur Misuari’s Moro National Liberation Front was not included in the BOL. Aside from the MNLF, there is also the Bangsamoro islamic Freedom Fighters. Terrorism is in vogue in Mindanao. In fact, this gave rise to the extension of martial law there. To expect peace and order in Mindanao is futile, even after the BOL is ratified. I say dream on. *** The passport data mess at the Department of Foreign Affairs is baloney. I wonder who started this mess.
the noteworthy projects of Mayor Abby. Don’t they realize that they are causing the people to support Abby more? Her brother Junjun should realize that these councilors are doing him a disservice! *** People have been asking if the plebiscite for the Bangsamoro Organic Law will truly spell change in Mindanao. Under the law, the Autonomous Region in Muslim Mindanao will be replaced by the Bangsamoro Autonomous Region in Muslim Mindanao. www.emiljurado.weebly.com
WEDNESDAY, JANUARY 23, 2019
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Law enforcement cooperation the good work!
COOPERATION between law enforcement agencies of the Philippines and Taiwan have reached new heights during the past year with the series of successful operations that have brought high-profile criminals before the bar of justice. In May last year, Taiwan police tracked and apprehended high-profile fugitive Ricardo Parojinog Jr. in his hideout in Pingtung, a fishing village south of the island. Parojinog, wanted on drug charges, fled to Taiwan purportedly posing as a fisherman to escape from Philippines authorities. Philippine National Police intelligence operatives, however, received a tip regarding Parojinog’s movements and immediately coordinated with counterparts in Taiwan. Sparing no time, Taiwan police tapped into its own intelligence network and traced Parojinog in the multi-story apartment building where he was staying and captured him. He was eventually turned over to Philippine authorities to face trial. A few months later, it was the Philippines’ turn to help Taiwan in pursuing a suspect in a high-profile case involving an an Israeli-American immigrant who, along with several accomplices, murdered a Canadian national whom they suspected of having turned to authorities regarding their drug dealing activities. The incident drew national attention for its gruesomeness with Oren Shlomo Mayer and another suspect chopping their victim’s body into pieces and discarding them in the city’s riverbanks in an attempt to hide the crime. Mayer fled to the Philippines before Taiwanese police could arrest him but swift coordination with the PNP Directorate for Intelligence led to his immediate arrest in Cainta, Rizal in September 2018. Just recently, before Taiwan celebrates the Lunar New Year, another fugitive from Taiwan, former Tainan County council speaker Wu Chien Pao was arrested in Taguig City after evading authorities for more than four years. Wu was meted prison time in 2014 for involvement in a baseball game fixing scandal but eluded the sentence by fleeing to the Philippines. Efficient cooperation between Philippines and Taiwan authorities led anew to Wu’s arrest inside the Subic free port zone. I was told that many other cases are still on the desks of these counterpart agencies—the Taiwan National Police Administration, Criminal Investigation Bureau and the Ministry of Justice Investigation Bureau and the Philippines’ national police, drug enforcement agency and National Bureau of Investigation—being worked on. These, however, are cloaked in secrecy to ensure operational effectiveness. Friends from law enforcement admit that this high-level of cooperation has never been this fruitful since the time of then PNP chief and now Senator Panfilo Lacson, who curbed the rash of kidnappings of Filipino-overseas Chinese businessmen at that time. Today, the new and greater public enemy which is the proliferation of illegal drugs transcends international boundaries, which requires, more so, greater cooperation between Philippine and foreign law enforcement agencies. To the men and women of Philippines and Taiwan law enforcement agencies, congratulations and keep up
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anyone was robbed, it was Manny Pacquiao whose million dollar house in Los Angeles was broken into while he was fighting in Las Vegas. LA police still have to arrest the robbers. How could it have been otherwise when the 40-year-old Filipino world welterweight champ took the American to school with non-stop flurries and combinations? Manny failed to knock out or knock down Broner but to all three judges, it was a one- sided fight. Short of his face being rearranged by Manny’s punches, Broner did not look as menacing after the Nevada Boxing Commission ordered him to shave off his James Harden-like beard. The Pacquiao camp asked boxing officials to have Broner shave his beard as it would serve as a cushion to blows on the chin aside from being used as a sharp object during head to
*** Meanwhile, Taiwan’s Ministry of the Interior released statistical findings which show that between 2017 and 2018, Taiwan’s population grew by just 18,000, a new low of 0.08 percent, or under one thousandth of the previous year’s total of 23.5 million. Compare that to the Philippines, where growth is still some 2 percent each year. We now have a population of 107 million. Taiwan’s factories will need more migrant workers in the years to come, although the US-China trade war, if it intensifies, would dampen economic growth, as Taiwan’s economy is inextricably linked to the world’s largest economies. Like Japan, Taiwan’s population is an increasingly “aged” one, with life expectancy long and birthrates low. But this is no reason for “pro-life” advocates to crow, because our economy on the other hand, has been more and more dependent on OFW remittances and BPO earnings, both of which are threatened in the medium and long
The Philippines and Taiwan are working so well together.
term by external factors beyond the control of our political and economic leadership. The Middle East market is cooling down; Trump is tightening immigration. BPOs are threatened by artificial intelligence, which has become the wave of the future. We need to create jobs in our country, whether in industry, services or agriculture. And while there has been growth in investments which create domestic jobs, and growth in tourism owing to the Chinese travel market which in turn is a direct result of President Duterte’s apertura Sinica, agriculture, which employs some 40% of our work force, is a laggard. There are so many things that we as a nation have to be doing all at the same time just to catch up with our neighbors, the result of decades of short-sighted policies and corruption-laden implementation. And in a time of advanced technologies where AI supplants semiskilled workers, catching up is so very hard to do. *** We extend our condolences to the bereaved family of Mr. Henry Sy Sr., who recently died at the age of 94. Many years ago, when I was a young businessman engaged among others in wholesale fruit marketing in Manila with the family-grown pomelos from Davao City, which I labelled “Golden,” Mr. Sy was a regular customer at a retail outlet. “Gua kan di buey” (I will buy from you), he told me after tasting our pomelos at the United Supermart in Makati. For some time, his secretary would order fruits which we would deliver to his residence. Years after, I bumped into him at the airport in Xiamen, after I attended an international conference in Beijing. He looked at me intently, and asked where we had met before. When I told him about the pomelos and our family selling the property because none of us siblings were cut up for farming, he told me that we all just have to try our best in whatever endeavor we are into, and wished me good luck. Hail and farewell, Mr. Henry Sy Sr. head clinches. How does a Pacquio-Floyd Mayweather rematch loom in the horizon? Floyd who watched at ringside is non-committal after seeing Manny still has what it takes at 40. Floyd himself, at 42, is coming in and out of retirement. Fight promoters do not see the record megabucks at the gate, earned in the first bout between the two. That one was won by Floyd who opted to dance away from Manny’s power punches. So who next on Manny’s sights ? World lightweight titleholder Terence Crawford could be it. The Nebraskan could go up to the welterweight class and could pack more wallop with the added weight. Crawford is a dangerous opponent. He is undefeated and has shown that aside from a mean punch from either hand, he is a cunning offensive/ defensive fighter willing to mix it up. This is what Pacquiao wants as he proved when he knocked out Argentina’s Lucas Mattysee, a mix-it-up slugger.