Home Blog Page 10116

Australian firms awaiting resolution of CITIRA uncertainty

AUSTRALIAN companies are seeking “clarity” on legislation proposing to reduce the corporate income tax (CIT) and streamline fiscal incentives, now pending before the 18th Congress.

“Australian businesses are interested in the CITIRA (Corporate Income Tax and Incentives Rationalization Act) legislation,” Australian Ambassador to the Philippines Steven J. Robinson said in an interview on the sidelines of a media event hosted by the Embassy.

“The sooner they have clarity and they understand what they’re dealing with the better off everyone will be.”

The measure provides for the gradual reduction of the CIT to 20% by 2029 from the current 30%; and the removal of fiscal incentives deemed redundant.

It is among the remaining packages of the administration’s comprehensive tax reform program (CTRP), which President Rodrigo R. Duterte highlighted in his fourth State of the Nation Address last July 22.

The tax measure hurdled the House of Representatives as House Bill No. 4157, on Sept. 13; but is still being discussed at the Senate Committee on Ways and Means, chaired by Senator Pilar Juliana S. Cayetano.

It nearly hurdled the 17th Congress after it made it to final reading in the House, but failed to win approval from the Senate before the session adjourned on June 3.

This uncertainty, which had long been a concern of businesses looking to invest in the Philippines, has lingered, Mr. Robinson said.

“At this point, we just don’t know so, it’d be good when we do know, then Australian business can make its mind up,” he said.

“Once there’s clarity, then everyone knows what the score is for the future and they’ll be able to make their decisions appropriate.”

Also among the remaining CTRP packages are proposals to increase excise tax on alcohol products and electronic cigarettes; centralize property valuation and assessment; and simplify the tax structure for financial investment instruments.

The government has so far passed Republic Act No. 10963, which slashed personal income tax rates and increased or added levies on several goods and services; RA 11213, the Tax Amnesty Act, which grants estate tax amnesty and amnesty on delinquent accounts left unpaid even after being given final assessment; and RA 11346, which will gradually increase the excise tax on tobacco products to P60 per pack by 2023 from P35 currently. — Charmaine A. Tadalan

GOCCs, state financial firms ordered to start 2021 budget preparations

THE Department of Budget and Management (DBM) has ordered state firms and financial institutions to start drafting their spending plans for 2021.

“With budgeting as the last phase of the planning process, GOCCs/GFIs (Government-Owned and Controlled Corporations and Government Financial Institutions) are expected to anchor their budget proposals on more concrete program plans and designs that outline key procurement and implementation milestones, specific beneficiaries, and improvement in monitoring priority outputs and results,” according to corporate budget memorandum No. 42, dated Nov. 29 and published Wednesday.

Budget Acting Secretary Wendel E. Avisado said GOCCs and GFIs should also consult and with local governments and Regional Development Councils (RDCs) to ensure that their priorities are aligned with regional and local needs.

He said the head of the GOCC or the GFI must ensure that the proposed budget for the year undergoes proper review by the RDC, including obtaining the needed endorsements.

The Development Budget Coordinating Committee (DBCC) on Wednesday approved a P4.64-trillion cash-based budget for the year which is equivalent to 20.2% of gross domestic product (GDP).

Last week, DBM also issued the national budget call for 2021 to state agencies, instructing them to start planning their spending program for the year.

Mr. Avisado has said that for 2021, the transition towards a cash budgeting system will go forward, forcing agencies to spend their allocations within the fiscal year, against the two-year period previously. — Beatrice M. Laforga

Unregulated courier industry could be subject of House probe

Jose L. Atienza, Jr. — CONGRESS.GOV.PH

A LEGISLATOR has called for an investigation into the proliferation of unregulated courier delivery services, adding that most of these couriers are foreign-owned and without local partners.

Representative Jose L. Atienza, Jr. of BUHAY Party List said Thursday at a news conference that he is seeking quicker action on House Resolution 481 to investigate foreign couriers and pass a law that will regulate the industry.

The resolution states that “modern information and communications technology are being used by unscrupulous foreign couriers” which “has placed legitimate freight and courier services companies in an unfair situation of competing against unregulated and fly-by night operators.”

Di napupuna, walang nakakapuna pero maraming nangyayari dito na kailangan paki-alamanan ng gobyerno (The government has not taken note but lots of things have been happening and the government must come in). Government has to take control otherwise, baka mga consumer ay malugi, mga motorcycle driver maperwisyo, ang mga ahensya ng gobyerno walang pananagutan sapagkat karamihan sa kanila ngayon, walang lisensya, walang permit (The consumer and motorcycle drivers could be disadvantaged, and the industry is not accountable to government because many of them are unlicensed)” Mr. Atienza said.

Asked what the Department of Information and Technology is currently doing on the matter, he said: “Monitoring. Supportive of the effort. So the thing is for us to hurry it up para mawala na yung reasoning na hindi kami makagalaw dahil walang batas (To rule out the excuse that no one can act in the absence of a law). Let’s give them a real reason to go after the offenders” Mr. Atienza said.

According to a member of staff with the House Committee on Trade and Industry, there are no scheduled hearings to tackle the resolution yet, but the Committee could hold a meeting next year. — Genshen L. Espedido

Ethanol output estimated to rise 8.1% in 2019

PHILIPPINE ethanol production is expected to hit 320 million liters this year, up 8.1%, as declining sugarcane output and high prices encourage more market entrants going forward, the United States Department of Agriculture (USDA) said.

“For 2020, production is again likely to increase as additional distilleries begin operations,” the USDA’s Foreign Agricultural Service said in its latest country report on Philippine biofuels.

Biofuels are blended with conventional fuels as called for by Republic Act No. 9367 or the Biofuels Act of 2006. The current blend mandates are 10% and 5% for ethanol and biodiesel, respectively. Their consumption is largely a function of the mandated blend. Molasses from sugarcane is used in ethanol production, while coconut oil is the feedstock for biodiesel.

The law is meant to develop indigenous and renewable energy sources to cut the country’s dependence on expensive imported fuel. It also seeks to mitigate greenhouse gas emissions, while helping create jobs in rural areas. Among others, RA 9367 provides fiscal incentives to biofuels producers and distributors including income tax holidays, duty-free imports, and value-added tax exemptions.

The report said the expected higher production next year will come from two plants with a combined capacity of 68 million liters to add to the existing 380 million liters from 12 plants as of 2018. No additional ethanol plants are expected to operate in 2019.

“Competitiveness of the local sugarcane industry is a major challenge. The Philippines has one of the lowest average sugarcane yields in Asia,” it said.

Total raw sugar production in 2019/20 (December/November) will hit 2.1 million metric tons (MMT), unchanged from the previous year, with cane production expected at about 22 MMT, it said.

In recent years, the industry has switched from sugarcane to molasses, with the high and rising sugar prices — and consequently of molasses — a serious challenge, the report said.

“From Sept. 1, 2019 to Oct. 20, 2019, the average ex-mill price of molasses was P12,153 ($238) per ton or 52% from the P8,014 ($157) per ton average mill site price during the Sept. 2 to Oct. 21, 2018 period,” it said, adding that nearly 80% of the total molasses in the country is used for ethanol production.

“A proposal to import molasses to augment local feedstock supply is being studied at the Philippine Senate as local ethanol producers can only import molasses when approved by the SRA (Sugar Regulatory Administration),” it said.

Meanwhile, the report expects biodiesel production this year of 220 million liters, or unchanged from the previous year.

The USDA report said blending of ethanol peaked at 10% in 2014 but declined to below 9% in recent years. For biodiesel, consumption growth is driven by increased diesel use since 2009 with the blend rate peaking at 2.8% in 2016 due to increased motor vehicle sales.

“There are moves to allow molasses imports, but this will require an amendment to existing laws,” the report said.

For biodiesel, the planned 5% blend in 2015 has not happened because of feedstock supply concerns.

The Department of Energy has kept the ethanol and biodiesel blends this year at 2019, “but it is unclear when and whether blend targets from 2020 onward will be revised,” the USDA said. — Victor V. Saulon

Davao chamber eyes better marketing after trade missions

By Maya M. Padillo
Correspondent

DAVAO CITY — The city’s business chamber is focusing on helping companies build their marketing capability in 2020 following this year’s round of trade missions.

John Carlo B. Tria, incoming president of the Davao City Chamber of Commerce and Industry, Inc. (DCCCII), said he wants to focus on capacity building, business promotion, and policy advocacy.

“These are the three major areas that we will develop,” he told the media at a forum last week.

He added that he will “discuss specific approaches under those three banners” as soon as the chamber drafts its plans, but add that the aim is to help businesses develop new markets and strengthen disaster resilience.

Mr. Tria also said that the chamber is planning to institutionalize and facilitate broader business matching between the area’s firms and investors in cooperation with the Davao City Investment Promotion Center (DCIPC).

This year, the DCCCII held several promotional campaigns overseas and hosted visiting business delegations, including those from China, Japan, Malaysia, Singapore, South Korea, and Taiwan.

“We are seeing the effects (of these activities) and we would like to help sustain that over the next term under my leadership,” Mr. Tria said.

DCCCII outgoing President Arturo M. Milan said these trade missions primarily “introduce” Davao City as both an investment and tourism destination.

“These trade missions,” he told BusinessWorld, “make them aware how safe Davao City is to foreign investors and tourists, especially since most of the countries we visited issued negative travel advisories for Mindanao, including Davao City.”

President Rodrigo R. Duterte’s spokesperson announced earlier this week that Martial Law in Mindanao, which is set to expire by Dec. 31, will no longer be extended.

“It’s still too early to tell whether these trade missions will result in actual investments in Davao City, though two large investments have been put up by a Japanese company, Packwell, and Chinese company, Double Davao Printing and Paper Packaging Corp.,” Mr. Milan said.

“We have turned barriers into opportunities and we have seen and experienced changes in our city’s economic landscape… we have several exciting initiatives set in motion that will continue to take this chamber to the next level of service,” Mr. Milan said.

Charter amendments extending local officials’ terms, easing FDI rules hurdle committee

THE House Committee on Constitutional Amendments approved Wednesday proposed amendments that could extend the terms of local officials, create regional representation in an expanded Senate, and ease restrictions on foreign investment.

The approval of the amendments, contained in an unnumbered resolution of both houses (RBH) was confirmed Thursday by the Committee Chairman, Representative Rufus B. Rodriguez of the Second District of Cagayan de Oro.

One of the amendments includes the phrase, “unless otherwise provided by law” on economic provisions in the Constitution that limit the participation of foreign investors. The addition of this phrase would authorize Congress to pass laws that would ease foreign investment rules.

“…so we deem it that it is about time to be able to encourage more foreign investors to come to the country because we are really behind Vietnam, Singapore, Thailand and most of these countries. We are only ahead a little of Cambodia and Laos and Myanmar and the rest have overtaken us in foreign direct investment (FDI). And that is why we need these foreign investments to (raise) more taxes for the government and for the employment of more Filipinos,” Mr. Rodriguez told reporters.

Under Article XII of the Constitution, foreign ownership of property and businesses is limited to 40%.

The other amendments to the Constitution seek the election of regional senators and the extension of the term of local officials.

According to the resolution, the Senate should be composed of twenty-seven senators instead of twenty-four. Three senators will then represent each of the following regions: the National Capital Region, Northern Luzon, Southern Luzon, Bicol Region, Eastern Visayas, Western Visayas, Northern Mindanao, Southern Mindanao and the Bangasamoro Autonomous Region.

The RBH also cuts the term of Senators to five years from the current six, but they will be able to serve for three consecutive terms instead of two.

The proposal also seeks to extend the term of local government officials and members of the House of Representatives from the current three years to five years.

Mr. Rodriguez said that “three years is too short to be able to implement projects,” adding that the current government officials would not be able to benefit from the additional term as the RBH will apply after the 2020 elections.

The RBH also proposes that the President and the Vice-President be voted in as a team, ruling out recent cases of the top two officials coming from different political parties.

Asked about the initial enthusiasm for federalism of the Duterte administration, Mr. Rodriguez replied, “There is no consensus. There is also a lot of opposition.”

In a news conference Thursday, Rep. Carlos Isagani T. Zarate of the Bayan Muna Party List came out against the amendments easing foreign investment restrictions.

Ibig-sabihin, halimbawa doon sa… exploration of our natural resources, development of our natural resources, is limited to Filipino Citizens, kung korporasyon man yan sixty percent, ay pwede na itong baguhin sa pamamagitan lamang ng isang batas na ilalabas ng Kongreso, (It suggests that in the exploration for natural resources, which is currently limited to Filipino citizens, a 60%-owned foreign corporation can now come in on the strength of a law passed by Congress),” Mr. Zarate said.

The Committee on Rules will endorse the unnumbered RBH to the plenary by next week, according to Mr. Rodriguez.

Foreign ownership amendments were also proposed during the Aquino administration by former Speaker Feliciano R. Belmonte, Jr. who introduced RBH 1 seeking to insert the phrase “unless otherwise provided by law” in the Constitution. — Genshen L. Espedido

Sugar output falls over 29% in late Nov.

THE Sugar Regulatory Administration (SRA) said that sugar production in the third week of November was down 29.05% year-on-year.

The agency reported that sugar production was 216,996 metric tons (MT), down from 305,850 MT a year earlier. The current output level is equivalent to 4.339 million 50-kilo bags.

SRA Board Sugar Producers’ Representative Emilio Bernardino L. Yulo said that the decline in production was influenced by sugar farmers who opted to reduce their milling activity and the El Niño conditions during the previous planting season.

“We will see if it will pick up during the middle and late milling part of the season,” he said in a text message.

The crop year for sugar starts each September and ends in August the next year.

Demand for raw sugar declined 10.94% to 271,416 MT.

Total sugarcane milled declined 25.98% year-on-year to 2.598 million MT.

Refined sugar production fell 37.38% year-on-year to 75,831.55 MT.

The millgate price increased 1.83% to P1,516 per 50-kilo bag, while retail prices ranged from P45 to P50 per kilo, down from P54 to P64 a year earlier.

Target raw sugar production for this crop year is 2.096 million MT, down 5% year-on-year, due to weather, and a decline in the area planted to sugar, as well as possible shifts in planting in favor of other crops. — Vincent Mariel P. Galang

Peso up on Fed, BSP decisions

THE PESO strengthened against the greenback on Thursday after both the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) decided to maintain key policy rates.

The local unit closed at P50.711 on Thursday, appreciating by 9.9 centavos from its P50.81-per-dollar finish on Wednesday, according to data from the Bankers Association of the Philippines.

The peso started trading at P50.79 versus the dollar, which was also its weakest showing. Meanwhile, its intraday best was at P50.70 versus the greenback.

Dollars traded inched up to $794.1 million from $782.8 million seen on Wednesday.

A trader said the peso climbed after recent signals from the US Federal Reserve.

“The peso strengthened after Federal Reserve Chairman Jerome Powell noted that it might still take time hitting the two-percent US inflation target,” he said in an e-mail.

On Wednesday, the Fed kept its interest rates and hinted that borrowing costs will be unchanged anytime soon amid expectations of a continued environment of moderate economic growth and low unemployment until the 2020 presidential election, Reuters reported. With this, Fed’s benchmark overnight lending rate are maintained between 1.5% and 1.75%, 75 basis points below where it started last year.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the market barely moved on Thursday.

“It seems that the market has already digested the anticipated prudent pause of the BSP… The market would now be looking for other leads even as the Christmas holiday is fast approaching,” he said in a text message.

The BSP kept its policy rates at four percent for the overnight reverse repurchase facility, while rates for overnight deposit and lending were also maintained at 3.5% and 4.5%, respectively. In a press briefing, BSP Governor Benjamin E. Diokno said that their decision was supported by their assessment of “a benign inflation environment.”

For today, the trader expects peso to move within the range of P50.60-50.80 while Mr. Asuncion gave a forecast of P50.50-50.70. — L.W.T. Noble with Reuters

PSE index drops ahead of BSP’s announcement

By Denise A. Valdez, Reporter

LOCAL SHARES traded lower on Thursday in anticipation of the last policy meeting of the Bangko Sentral ng Pilipinas (BSP), which concluded after the market closed.

The benchmark Philippine Stock Exchange index (PSEi) lost 45.34 points or 0.58% to close at 7,741.07 on Thursday, while the broader all shares index shed 24.91 points or 0.53% to 4,598.75.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the dismal trading yesterday came ahead of the BSP’s last policy meeting of the year.

He also said the quiet trading happened “after the (US) Fed hinted that it will not raise interest rates next year, allaying investors’ fears that a premature policy tightening will occur again next year.”

After its two-day policy meeting this week, the US Federal Reserve decided to maintain interest rates as it expects economic activity, labor market conditions and inflation to be stable.

Wall Street took the news positively: the Dow Jones Industrial Average index, the S&P 500 index and the Nasdaq Composite index all went up 0.11%, 0.29% and 0.44% on Wednesday, respectively.

At the local bourse, more sub-sectors declined on Thursday: property by 74.76 points or 1.80% to 4,077.69; mining and oil by 53.19 points or 0.71% to 7,418.48; holding firms by 42.90 points or 0.56% to 7,545.13; and services by 4.45 points or 0.29% to 1,497.50.

On the other hand, industrials gained 29.43 points or 0.30% to end at 9,589.92 and financials rose 2.64 points or 0.14% to 1,888.52.

Timson Securities, Inc. Trader Darren T. Pangan said the movement of the main index was dragged by heavyweights SM Prime Holdings, Inc. (-3.22%), SM Investments Corp. (-0.84%) and Metro Pacific Investments Corp. (-15.67%).

“(SM Prime) may have succumbed to investors profit-taking as it reached resistance levels at 42, while SM may have closed lower as investors did some last minute selling. Lastly, (Metro Pacific) lost by 15.67% as a continuation of the sell-off due to the revoked concession agreements with Maynilad, its subsidiary,” he said in a text message.

Some 591.09 million issues valued at P6.26 billion switch hands on Thursday, down from 666.15 million issues worth P5.29 billion on Wednesday.

Declining stocks outnumbered those that advanced, 113 against 76, while 50 names ended unchanged.

Net foreign selling was reduced to P387.41 million on Thursday from P471.74 million on Wednesday.

“The PSEi is set to end the week with losses unless we see a miracle tomorrow. Foreign investors continue to take risk off the table as prices keep sliding lower. Investors may have already given up on a ‘santa claus’ rally,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Thursday.

Fulfilling the promise of UHC

A “new dawn for Philippine healthcare” is how the World Health Organization described the enactment in February 2019 of the Universal Health Care (UHC) Act.

It is a fitting description. The landmark law automatically enrolls all Filipino citizens in the National Health Insurance Program and prescribes complementary reforms in the health system. It gives every Filipino access to the full continuum of health services that we need, while protecting us from enduring financial hardship as a result.

The global movement to achieve UHC got a huge boost on Dec. 12, 2012 when the United Nations (UN) unanimously endorsed a historic resolution urging all countries to accelerate progress toward UHC as an essential priority for international development. The UN officially designated Dec. 12 that year and of each year thereafter as International Universal Health Coverage Day.

Three months ago, the UN General Assembly held a high-level meeting on universal health coverage. Themed “Universal Health Coverage: Moving Together to Build a Healthier World,” the meeting aimed to accelerate progress toward universal health coverage, including access to quality essential healthcare services and access to safe, effective, quality, and affordable essential medicines and vaccines for all.

The Pharmaceutical and Healthcare Association of the Philippines (PHAP) fully supports the attainment of Universal Healthcare in the country. It aims to partner with the government for an access to medicines program on a UHC platform. Since 2010, PHAP has continued to engage in policy discussions on UHC being the more sustainable approach to address healthcare gaps and improve access to health particularly for the poor.

The UHC Act signed early in 2019 acknowledges that the government is the stakeholder that can effectively leverage its purchasing capacity in the medicines market. Under the UHC Act, the government will become the key purchaser of medicines and health services, drive up volumes with pooled procurement, agree on reasonable prices, and manage the supply chain efficiently.

The Philippine Institute for Development Studies (PIDS) paper on “Overcoming Barriers to Medicine Access in the Philippines” recommends that this “pooled procurement of medicines by the public sector, being done presently, should be expanded significantly to attract more suppliers in the market. It gives the public sector leverage in getting medicines prices further down. The public sector can distribute the medicines it procures for the fifth of the population who don’t have the purchasing power to acquire medicines even at reduced prices.”

A pooled procurement system helps address the need for low-priced quality essential medicines of the public sector which could be used for distribution to patients at a reduced price. Studies indicate the benefits of a pooled procurement system such as:

• Reduction in unit purchase prices;

• Improved quality assurance;

• Reduction or elimination of procurement corruption;

• Rationalized choice through better-informed selection and standardization;

• Reduction of operating costs and administrative burden; and

• Increased access to essential medicines.

Ultimately, the people stand to benefit from pooled procurement. The government will be able to make medicines available for more people. Every Filipino who wishes to take advantage of the availability of quality medicines at lowered prices may also go to government hospitals.

With pooled procurement, the implementation of an efficient and responsive Supply Chain Management is crucial in ensuring the uninterrupted availability and accessibility of medicines even in far-flung areas.

The establishment of a supply chain management system includes data-gathering, forecasting, procurement, warehousing, and inventory management, among other processes. This also covers quality assurance management to ensure that health products consistently meet the standards of safety, efficacy, and quality throughout the supply chain, from manufacturing up to distribution, and finally to the use of the patient.

The private sector, through PHAP members, can assist in the enhancement of the country’s medicine supply chain management system. This means no more expired medicines and no more shortages in hospitals and far-flung barangays.

Let this dawn lead to an everlasting day of hope for all Filipinos!

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP). PHAP and its member companies represent the research-based pharmaceutical and health care industry.

medicinecabinet@phap.org.ph.

Rethinking Philippine education

TESTED for the first time by the Organization for Economic Cooperation and Development’s (OECD) Program for International Student Assessment (PISA), a presumably representative population of 15-year-old Filipino students put the Philippines last in reading comprehension among 79 countries. They hardly fared any better in science and mathematics; they were rated second to the last at 78th place.

The PISA findings were not too surprising. Despite high school and even some college units, many Filipinos can’t really read or even do simple arithmetic. Some have been known to blame journalists for the opinions of a source the former quoted in a report, for example. Science is also alien territory for the superstitious many, and mathematics something the innumerate despise the most.

A 2017 study by an international news website found that Filipinos aged 16 to 64 are the third most ignorant of key issues among the citizens of 36 countries. Evidence of the failure to comprehend what they read also abounds in social media and in the letters to the editors of newspapers in which alleged readers demonstrate how badly they’ve misread and misunderstood the news.

But what is the OECD and why is it so concerned with the state of education across the globe? The British publication The Economist describes the OECD as “a club of mostly rich countries.” The Philippines is not a member, although to qualify a country only has to demonstrate its “readiness” for, and “commitment” to, “democracy, the rule of law and the protection of human rights,” plus to an “open, transparent economy.”

It was founded in 1961, but its antecedent was the Organization for European Economic Cooperation (OEEC) which was established in 1947 to oversee the reconstruction of the countries of Europe that had been devastated by World War II — and to keep the now defunct USSR and its economic system at bay.

Its members are mostly advanced industrialized countries that claim to be committed to improving economic performance, fighting international tax evasion, and encouraging better education worldwide. It describes itself as “an international organization that works to build better policies for better lives. Our goal is to shape policies that foster prosperity, equality, opportunity and well-being for all.”

For all the seeming nobility of that goal, the OECD has nevertheless been faulted for the dominance in it of its wealthier members’ neo-liberal ideology and economics agenda. Neo-liberalism, say critics, has kept the poor countries poorer and the rich richer in a world order dominated by the major economic powers.

PISA itself has been criticized for, among others, pitting the educational systems of poor countries against those of the richly endowed, and for encouraging what the skeptical describe as the equivalent of an “arms race” in education.

There is, indeed, a class divide between poor and rich students in the Philippines, where the former end up in inferior schools while the wealthy are educated in better ones. The consequences are evident in, for example, the results of the University of the Philippines College Admission Tests (UPCAT) in which graduates from “exclusive” (read: expensive) high schools have been outnumbering those from the public schools for decades.

There is the same divide between the poor and rich countries of the planet. But even a less developed country can still invest heavily on education if it is its first priority. The 2018 PISA results were dominated by Chinese students from four less affluent regions of China, who bested their counterparts in the Western countries. An OECD analyst said this shows that “you don’t have to spend more to do better,” — without, however, revealing how much those regions spend on education.

The Philippines doesn’t invest as much on education as its ASEAN neighbors Thailand, Malaysia, Vietnam, Brunei, Singapore, Indonesia, and Laos. As mandated by the Constitution, the biggest share of the annual budget goes to Philippine education. But the 3.4% of Gross Domestic Product (GDP) appropriated for it is still much less than the United Nations standard of at least 6%.

In addition to the PISA results, the bad news for Philippine education is that Congress, with the recommendation of the Department of Budget and Management (DBM), has cut the Department of Education’s (DepEd) proposed 2020 budget. Adversely affected are, among others, the construction of additional classrooms and the hiring of more teachers.

It need hardly be said that how much a country spends on education helps decide the quality of school facilities and its teachers, and therefore the quality of its students. Teaching has lost much of its attraction as a career in the Philippines because public school teachers are among the most underpaid employees of government. And despite the digital age, many public schools also have a dearth of computers as well as teachers, classrooms, books, and even desks and blackboards.

But the budget a country allots to education is only one among several other factors that decide what, how much and how well students learn. Among these other factors is whether the system is focused on the quality of the learning students get, or on just getting as many students as possible through the mill.

The United States, for example, didn’t do very well in PISA, most likely because its educational policy has been focused on the latter. Among its results is the graduation from the basic education system of young men and women with reading, writing, and reading comprehension issues and even gross ignorance of US history and governance. Filipinos may be the third most ignorant in the world about public issues, but one suspects that as a consequence of the emphasis on promoting even non-performing students rather than making them go through the mill again, most Americans are not far behind.

These issues notwithstanding, the dismal showing of Filipino students in reading comprehension, mathematics and science has to be addressed. Ignorance and the contempt for learning are antithetical to national development and the democratization process. Citizens who know little or nothing, or are misinformed about the most pressing issues cannot intelligently make the informed decisions on which democratic governance depends. The sorry state of education helps explain the fragility of what passes for democracy in the Philippines.

Increasing the funding for education is a necessary first step. But rethinking the educational system, its aims and its directions, is equally crucial.

Philippine education’s fundamental aim, it has been said often enough, is to produce men and women who can be “competitive” in today’s world. It would be a laudable enough goal were it not for the meaning most policy makers attach to it, which in sum is to enable Filipinos to be “worthy of employment” as nurses, nannies, domestics or construction workers.

Real competitiveness should mean developing among the country’s young men and women the critical capacity and love of learning that can make them the equals of the world’s best thinkers, artists, scientists, and professionals so they can contribute to the country’s development. Instead the competitiveness mantra puts less emphasis on knowledge and more on the skills the global labor market needs. Under that rubric, reading comprehension, mathematical proficiency and understanding of science are at best a second priority. In response to the PISA report, Education Secretary Leonor Briones has thankfully declared that the system she oversees will henceforth emphasize quality rather than quantity, hopefully without limiting universal access to basic education. But between the wish and the fulfillment, alas, is a vast ocean of official indifference and misplaced priorities in a country that claims to be 98% literate but too many of whose citizens are grossly misinformed because they hardly understand what they read — if they read at all.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

‘A republic if you can keep it’

As with the Philippines, a republican democracy essentially keeps the passing passions and dominance of the majority in check by adhering to certain principles, the upholding of inherent individual rights, and the principle of checks and balances.

These checks and balances are, as outlined by James Madison in Federalist 51, come primarily if the republic’s citizen’s act virtuously.

Yet since men are not angels (to paraphrase Madison), it becomes necessary to “first enable the government to control the governed; and in the next place oblige it to control itself. A dependence on the people is, no doubt, the primary control on the government; but experience has taught mankind the necessity of auxiliary precautions.”

This government works under the sovereignty of the people, with certain delegated powers broken up into three equal branches, each keeping in check on one another: the executive, legislative, and the judicial.

The primary way of ridding ourselves of incompetent or abusive officials is by exercising the right to suffrage. Following that, within the framework of the Constitution that we the people authored, are several other modes previously discussed in this column (see, for example, “To impeach or remove: How to get rid of a public official,” Oct. 17, 2019).

With what’s happening in the US today, “impeachment” is the popular watercooler topic. The Philippines has had — unfortunately — quite some experience with impeachment proceedings: having impeached a president and a Supreme Court chief justice.

Before anything else, to be clear: an impeachment is merely like a form of indictment. It does not necessarily mean removal. One needs a Senate trial for that. Hence, for example, former US President Bill Clinton was impeached but not removed from office.

In the Philippines, impeachment is found in Article XI.2 of the Constitution, which substantially reads: “The President, the Vice-President, the Members of the Supreme Court, the Members of the Constitutional Commissions, and the Ombudsman may be removed from office, on impeachment for, and conviction of, culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust.”

The grounds are slightly different from that in the US Constitution, which states: “The President, Vice-President and all civil Officers of the United States, shall be removed from Office on Impeachment for, and Conviction of, Treason, Bribery, or other high Crimes and Misdemeanors.”

Despite the differences, statutory construction tells us that both provisions envision utterly grave offenses committed by the subject government official. Whether that offense need be committed against the State or merely an individual is subject for another discussion.

Nevertheless, the big lie that has been perpetuated during the Chief Justice Corona impeachment proceedings and continually taught in law schools today is that such proceedings are “political” in nature. It is not. The rule of law must still be upheld.

One cannot impeach a president simply because one disagrees with him on policy or your feelings got hurt. There must be a legal rationale built on proper procedural grounds to impeach and then remove such an official.

Citing Alexander Hamilton (in Federalist No. 65), Alan Dershowitz points out that the meaning of “high” crimes are “those offenses which proceed from the misconduct of public men, or, in other words, from the abuse or violation of some public trust. They are of a nature which may with peculiar propriety be denominated political, as they relate chiefly to injuries done immediately to the society itself.”

In short and Dershowitz emphasizes: “Hamilton didn’t say the process of impeachment is entirely political. He said the offense has to be political.”

One sees this in the oath that the impeachment presiding officer and members of the Senate have to take before sitting as an impeachment court: “I solemnly swear (or affirm, as the case may be) that in all things appertaining to the trial of the impeachment of ______ ______, now pending, I will do impartial justice according to the Constitution and laws: So help me God.”

The key portion here is: “impartial justice according to the Constitution and laws: So help me God,” which hardly lends to an interpretation of anything goes politically.

Furthermore, the presiding officer when the impeached official is the president is the Supreme Court chief justice, thus lending legal and judicial assurance to the proceedings, as well as ensuring participation of all three branches of government.

The point to remember is that the three branches are equal. To make impeachment easy, by justifying it as a purely “political” exercise, will make the other two branches at the mercy of the legislative.

Put another way: the president may not be above the law but neither is Congress or members of the Supreme Court. Or anyone for that matter.

Besides, to provide unhindered latitude to the Congress converts our political system into a parliamentary form of government, which is in no way consistent with the republican democratic (and) presidential system provided for in our Constitution.

 

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

ADVERTISEMENT
ADVERTISEMENT