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Latin America’s generals know their place

By Mac Margolis

THE FIRST time I caught a glimpse of Latin American democracy in peril, it hadn’t even arrived. This was Brazil, in 1983, when the military government was stewarding what General Ernesto Geisel, president from 1974 to 1979, called a “slow, gradual and secure political opening.” Jobless protesters and union militants were in no mood to wait and, blessed by politicized Catholic bishops, capped three days of rage by rushing the governor’s palace in Sao Paulo. Police beat them back and the governor — the first elected by popular vote since the 1960s — threatened to call in federal troops. “The street violence is testing the opening to democracy,” President Joao Baptista Figueiredo, a retired general, warned. After two decades of military rule no one needed a translation.

Sao Paulo’s state house did not fall that day and federal troops did not ride to the rescue. Brazil’s tenuous opening to democracy crawled apace and has not been interrupted in the 35 years since. Despite massive foreign debt, two presidents brought down by impeachment, unprecedented graft, violent demonstrations and a lately hepped-up military presence in Brasilia, the armed forces are not making a comeback. What’s in play today in Brazil and its neighbors is not a return to martial rule, but the parlous state of democracy, and lingering doubts over whether elected leaders can meet the rising expectations of a demanding public without trampling the rule of law or ringing for backup.

Guatemala, Peru, Ecuador, Chile, Bolivia, Colombia: Every week seems to bring another conflagration in the Americas. Authorities are bewildered and lash out, answering the rolling fury in the streets with truncheons and tear gas, or worse. When none of that works, besieged leaders retreat behind palace doors and a phalanx of military commanders.

Latin America’s praetorian temptation has plenty of reasons. World-beating criminal violence, the venal political establishment and the slowest growing economies corrode confidence in the ability of civilian authority to deliver stability and relief, never mind prosperity. And when frustrations flare, as they have from Tegucigalpa to Santiago, enfeebled leaders know whom to call. “There’s still a widespread feeling among many in Latin America that in times of trouble, the armed forces are the last resort,” Christoph Harig, a Latin America scholar at the University of the Federal Armed Forces in Hamburg, Germany, told me. “In many ways, they were never gone.”

This assessment might seem incongruous. Rule by junta went out of fashion decades ago. Except for Cuba, Nicaragua, and Venezuela, where the armed forces are part of the governing franchise, free and mostly fair elections are the regional standard. In most countries of Central and South America, the courts and legislatures keep presidents in check, or when they don’t, people protest — sometimes to a fault.

Sure, some unreconstructed military men are only too willing to reprise an imagined martial golden era. Even after they vacated the palace, the Brazilian brass made sure to extend their lease well into democratic times. The current charter of 1988, which was stuffed with safeguards against authoritarian fiat, had a fail-safe provision (Article 142) enshrining the armed forces as the guarantors of “constitutional powers.” It was as if everyone agreed “that the republic still needs a crutch,” writes historian Jose Murilo de Carvalho, a scholar of military politics.

Increasingly, however, the region’s military commanders accepted their new brief and busied themselves with professionalizing the armed forces, leaving politics to politicians and mostly holding their noses when civilians misbehaved. Not coincidentally, coups have declined sharply since the region’s return to electoral democracy in the 1980s and 1990s.

Part of the new abstinence owes to shifting sensibilities in the barracks. Younger officers raised after the dictatorship have a deeper connection to democracy. They know that military minders not only eclipsed freedom and political liberty across Latin America but also sponsored horrific violence and unspeakable human rights violations that have left scars, not least on their own corporation.

Even the old guard is aware that the age of juntas didn’t end well, and that the restoration of civilian rule also comes bundled with truth commissions, human rights trials, and demands for reparations. Perhaps nowhere was this more evident than in Argentina, where a combination of crimes (the Dirty War), strategic blunders (the disastrous Malvinas/Falklands war), and retribution shamed the armed forces into retreat. “There was a time when off-duty military wouldn’t wear their uniforms in public,” said Argentine historian Federico Finchelstein, of the New School for Social Research. “There is no place for the Argentine military in politics today.” The reticence over crossing lines even extends to Chile, where the memory of General Augusto Pinochet still makes recrudescent hardliners’ pulses race. “Chilean military are not interested in a new state of exception,” said Harig. “Like most armed forces, they are wary of taking on governing functions and fear institutional backlash if things go wrong.”

The retreat from politics after democracy’s return has helped to cleanse the armed forces’ reputation and restore their standing and image as honest brokers. It was never quite that way, yet the fantasy has earned the armed forces, long disgruntled over under-funding, some quid pro quo: South American military spending rose 3.1% last year. In turn, civilian rulers cashed in on the military’s reputational collateral. “There are reasons why the military becomes a useful political tool,” Matthew Taylor, a Latin America specialist at American University, told me. “They have fairly enduring legitimacy when other institutions have seen declining approval.”

The point was not lost on Brazilian President Jair Bolsonaro, a former army captain who packed his cabinet with decorated retired generals, outdoing even the bygone military governments he so admires. Never mind that most of Bolsonaro’s brass are far more politically moderate than he.

The danger is when struggling national leaders call upon the military to solve problems it has no business taking on. Latin America is the world’s most murderous region, and metastasizing violence has undermined faith in justice, law enforcement, and most of the political establishment. Hence the preference by officials in high-crime nations to deploy soldiers for police work. In Mexico and Brazil, traditional police are overwhelmed or compromised by drug trafficking. In Colombia, armed forces have long been part of the domestic response to outlaw gangs and insurgents.

Aside from credibility-seeking leaders, however, militarizing police work pleases no one. It brings the weapons of war to crowded city streets and miscasts soldiers, trained to subdue and kill an enemy, as peacekeepers. The risk is of disproportionate violence, increased human rights violations, and tarnishing the military’s own brand. So it was in April, when soldiers assigned to contain street crime in Rio fired more than 80 rounds into what they mistook as a stolen vehicle, killing a 51-year-old musician and wounding two of his family on their way to a baby shower.

Nonetheless, the military’s relative cachet has proved expedient when democracy turns messy and civilian authorities stumble. In Bolivia, self-declared socialist President Evo Morales actively courted the military high command, a deference that backfired when he lost his grip in the turbulent aftermath of a tainted election. In Brazil, Workers Party leader Luiz Inacio Lula da Silva lavished the troops with big budgets and gadgets, including a questionable $5.4 billion bequest of 36 fighter jets from Sweden — although none of that did his hapless successor Dilma Rousseff any good when she flirted with calling on the military to prevent her impeachment.

In many situations, the military has been called into action to defend constitutional order, not to usurp it. Blocked by an intransigent opposition-controlled legislature, Peru’s Martin Vizcarra invoked a controversial rule to dissolve parliament and call new elections, leaning on the military as a backstop. A transitional congressional committee will prevail until the January elections. In October, Ecuador’s Lenin Moreno turned to the military when protesters surrounded the palace in Quito after he declared austerity measures that were fiscally salutary but politically disastrous. After all, while the Ecuadoran military has rarely clung to power, “they’ve loomed behind every political upheaval and regime change since the restoration of democracy,” says Andres Mejia Acosta, a lecturer of political economy at Kings College London.

In Bolivia, Morales precipitated his own fall by seeking a fourth straight mandate, flouting the public will and the term limits laid out in the constitution that his own party wrote. Yes, the military overreached by advising him to resign — a request that civilian leaders ignore at their own peril. However, it did so only after the streets exploded, the police mutinied and the Bolivian Workers Central, a longtime ally, called for Morales’s resignation upon widespread evidence that he’d claimed victory in a stolen election. Worries of military overhang in politics eased last week when the Bolivian congress, dominated by Morales’s party, voted overwhelmingly to hold new elections. Bolivians will see if the caretaker government of Jeanine Anez, a rabid Morales critic, sticks to her transitional mandate or warms to the throne.

The last thing Bolivia and its neighbors need is an activist military, which may exact temporary redress against adventurers and wannabe tyrants but is anathema to the rule of law and constitutional order. In a proper democracy, defending the constitution is a job for the courts and legislatures. Too often, both institutions are weak or captured, creating a vacuum where epaulets stand in for the checks and balances upon which democracy flourishes or fails. The challenge today is not so much how to contain an overeager armed forces, but how to fix an under-performing political class all too eager to trade on borrowed prestige.

Latin Americans might take a cue from Uruguay. In October, when right-wing lawmakers stoking fear over spiking crime proposed a constitutional amendment to militarize policing, tens of thousands of angry citizens poured into the streets of Montevideo — not to jeer a discredited government but decry what they saw as a menace to democracy. Happily, Uruguayans voted to keep the military where they belong, in their barracks.

 

BLOOMBERG OPINION

Gov’t studying legal options on contracts with water utilities

THE government is studying its legal options over what it claims are onerous provisions in the contracts of two water utilities, Justice Secretary Menardo I. Guevarra said on Thursday.

Lawyers would probably draft a new version of the agreements with Manila Water Co. and Maynilad Water Services, Inc. without the clauses that are against the law and public policy, he told reporters in a Viber group message.

“We’ll probably start with the drafting of a new version that excises all provisions in the concession agreement that we believe are contrary to law and public policy, as well as those that are highly prejudicial to the interest of the consuming public,” he said.

Mr. Guevarra said President Rodrigo R. Duterte had asked the department to come up with an “integrated solution.”

The justice secretary on Monday said they found a dozen provisions that disadvantaged the government and consumers after reviewing the water concessionaires’ contracts with stated-owned Metropolitan Waterworks and Sewerage System (MWSS).

For one, the contracts bar state interference in rate-setting and protect the water companies if losses arise from government intervention, Mr. Guevarra said.

Mr. Duterte on Tuesday slammed Manila Water and Maynilad over the contracts.

Manila Water on Friday told the Philippine Stock Exchange that the Permanent Court of Arbitration in Singapore had ordered the Philippine government to pay the company P7.9 billion for losses after the government allegedly breached its obligation.

In September last year, the Singapore High Court also upheld the arbitral award to Maynilad of at least P3.4 billion after the government failed to appeal the court’s decision. The losses were due to MWSS’ refusal to implement tariff adjustment that included recovery of corporate income tax payments.

Mr. Guevarra said the legal remedies “are not mutually exclusive.”

The Office of the Solicitor General is contemplating judicial remedies here and overseas, he said.

Some Cabinet members want an overhaul of the existing concession agreements, while others are thinking of more drastic actions. Mr. Duterte has asked the Justice department to come up with an integrated solution, he added.

“The government is more interested in getting a new deal than in compromising the arbitral award,” he said.

The presidential palace on Wednesday said the president had ordered the filing of appropriate criminal, civil, and administrative charges against state officials involved in the making of the contract.

Manila Water on Wednesday said it had complied with its obligations as a concessionaire.

Meanwhile, three congressmen have filed a resolution seeking an investigation of the contracts “in aid of legislation.”

“It is the primordial duty of Congress in the exercise of its legislative and oversight functions to protect the Filipino people from onerous agreements,” according to a copy of the five-page resolution signed by Bayan Muna Reps. Carlos Isagani T. Zarate, Ferdinand Gaite and Eufemia C. Cullamat.

The Senate may also review water concession agreements with utilities deemed onerous in the exercise of its oversight function, Senator Francis N. Tolentino said at a forum on Wednesday.

The concession agreement states that “all disagreements, disputes, controversies or claims which cannot be resolved through consultation and negotiation among the parties shall be resolved not by the Philippine justice system but by a foreign tribunal.” — Vann Marlo M. Villegas and Genshen L. Espedido

Fish prices shoot up amid closed season; DA approves importations

PRICES of fish have gone up during the closed fishing season, the Department of Agriculture (DA) said on Thursday.

Prices have been increasing because fishermen spend more on gasoline trying to catch fish that go to warmer waters, Agriculture spokesperson Noel O. Reyes said at a briefing.

Based on the agency’s daily price monitoring, as of Thursday, the prices of milkfish averaged P175 per kilo from P170.81 per kilo the day earlier; tilapia prices increased to P111.59 from P107.26; local round scad or galunggong prices rose to P222.40 from P221.36, and mackerel prices increased to P300 from P252.

To curb this, the Agriculture department approved as early as October the importation of 45,000 metric tons (MT) of frozen fish and other aquatic products to ensure enough supply during the closed fishing season.

The Zamboanga Peninsula also started its three-month ban on sardine fishing on Dec. 1.

The closed season gives fish species the time to spawn or breed freely and restore its population.

“In order to ensure national food security taking into consideration public welfare… the importation of 45,000 MT of frozen fish and fishery or aquatic products for wet markets is hereby certified as necessary,” the agency said in a certificate of importation signed by Agriculture Secretary William D. Dar.

This is in line with the Fisheries Code, which contains guidelines on imports and exports.

Under the law, an import certificate is valid for 90 days. Fish that will be imported will depend on what the market needs, which is mostly round scad, mackerel and squid.

Mr. Reyes said the import volume was enough to meet the demand for the last three months of the year.

In 2018, the agency allowed imports of round scad imports to ensure sufficient supply during the holidays after local production stopped during the closed fishing season that ran until March this year. — Vincent Mariel P. Galang

Output losses from typhoon reach almost P2B

PRODUCTION losses from Typhoon Kammuri, which battered several provinces south of the Manila early this week, have reached P1.93 billion, the Agriculture department said on Thursday.

Volume of production loss has reached 106,525 metric tons (MT), affecting 47.639 hectares and 20,830 farmers, the agency said in a bulletin.

Reports from Regions III, IV-A and IV-B, V and VI showed that most of the affected crops were rice, corn and high-value crops, as well as livestock and agriculture facilities.

Rice losses reached P606.74 million, covering 32,179 hectares or 27,002 metric tons, while corn damage reached P142.64 million covering 5,486 hectares equivalent to 1,733 MT.

Meanwhile, 133,623 animals worth P40.2 million were. A total of 201 farmers were affected nationwide.

The agency said P1.13 billion worth of high-value crops were damaged covering 10,002 hectares of land or 77,837 MT.

Meanwhile, P11.72 million worth of infrastructure facilities were damaged including animal cages, warehouses and nurseries.

“Interventions are ready for distribution to affected farmers and fisherfolk in Bicol Region amounting to P181 million for rice, corn, high value crops, livestock, credit fund, relief goods, fishing paraphernalia, allocation for dry season planting and coconut seedlings,” the Agriculture department said.

Typhoon Kammuri, locally known as Tisoy was already outside the Philippine area of responsibility as of 8 a.m. on Thursday, according to the local weather bureau. At least 18 people died from the typhoon, the local disaster agency said.

The Philippines has ranked second as the country that is most affected by extreme weather events in 2018, think tank Germanwatch said in its Global Climate Risk Index for 2020.

“Japan, the Philippines and Germany were the most affected countries in 2018 followed by Madagascar, India and Sri Lanka,” Germanwatch said in the 15th version of the study released on Thursday.

The Philippine ranking was a big leap from 20th place in 2017. The country scored 11.17 points, with the death toll reaching 455, absolute losses amounting to $4.547 billion, and 0.48% loss per unit of gross domestic product (GDP).

“Countries like Haiti, the Philippines and Pakistan that are recurrently affected by catastrophes continuously rank among the most affected countries both in the long-term index and in the index for the respective year,” the think tank said.

Some countries including the Philippines were still in the process of recovering from the previous year’s storms.

The country is regularly exposed to tropical cyclones such as Bopha in 2012, Hayan in 2013 and Mangkhut in 2018 due to its geographical location, it said. — Vincent Mariel P. Galang

PSA taps agencies for national ID

THE Philippine Statistics Authority is on track to roll out the registration for the national identification system that is targeted to start by July.

The agency will continue pilot-testing the registration to see how it can improve the process, PSA Undersecretary Dennis Clare S. Mapa told reporters yesterday.

The pilot registration is being done at the Finance department and House of Representatives, he said.

The statistics agency is targeting about 1,000 registrating for the pilot test by June, Mr. Mapa said.

The national ID system includes registration, automatic biometric system and the card production, among other things.

The PSA earlier signed a memorandum of agreement with the Bangko Sentral ng Pilipinas (BSP), which will subsidize the production of blank cards for the ID system. The central bank has set aside P3.4 billion for 116 million blank cards that can help more Filipinos open their bank accounts by having their own ID as part of lenders’ Know-Your-Customer process, Mr. Mapa said.

Applicants may register through PSA’s regional and provincial officers by next year. Partners for the projects such as some offices of Philippine Postal Corp., Government Service Insurance System, and Social Security System will also be used as registration centers for the project.

PSA expects to issue 100 million IDS for both Filipinos and aliens by 2022. — Luz Wendy T. Noble

High Court sets Shari’a bar exams

THE Supreme Court has scheduled the 16th Special Shari’a bar exams for Jan. 19 and 26 next year.

In a Nov. 5 resolution signed by Clerk of Court Edgar O. Aricheta, the court granted the request of Saidamen B. Pangarungan, secretary of the National Commission on Muslim Filipinos.

The court has appointed Court of Appeals Associate Justice Japar B. Dimaampao as chairman of the Board of Examinees.

It also ordered the Office of the Bar Confidant for petitions to take the exam until Dec. 15.

Under the law, Shari’a courts, mostly in Mindanao, will have authority over cases involving personal, family and property relations, and commercial transactions, and criminal cases involving Muslims. — Vann Marlo M. Villegas

Lawmakers to raise P10M for SEAG gold medalists

CONGRESSMEN will raise P10 million from their salaries next month to reward Filipino gold medalists at the 30th Southeast Asian (SEA) Games, according to a House of Representatives resolution filed yesterday.

House Speaker Alan Peter S. Cayetano together with several lawmakers filed House Resolution 568, which seeks to honor athletes who brought “honor and pride to the country.”

SEA Games gold medalists are entitled to P300,000 cash incentive under the law. They will also receive more incentives from the Philippine Olympic Committee.

More than 1,000 Filipino athletes are competing in the biggest SEA Games in history, with 530 events covering 56 sports across Clark, Subic, Metro Manila, and Southern Luzon. — Genshen L. Espedido

Sandiganbayan told to hear graft case vs Lapid

THE Supreme Court has ordered the country”s anti-graft court to hear a corruption case against Senator Manuel “Lito” M. Lapid for approving the purchase of fertilizer without public bidding when he was still Pampanga governor in 2004.

In a 13-page decision dated Aug. 19 and released only on Tuesday, the court’s second division ordered the Sandiganbayan to “resolve the case with reasonable dispatch.”

The Sandiganbayan had gravely abused its discretion when it dismissed the case against Mr. Lapid and three others due to inordinate delay, the high tribunal said.

In reversing the Sandiganbayan’s ruling, the high court noted that there had been no allegations that the graft complaint against the respondents were politically motivated.

The Sandiganbayan in September 2016 dismissed the criminal case against Mr. Lapid because his right to a speedy disposition of the case had been violated.

“No such delay attended the Ombudsman’s proceedings that would warrant the dismissal of the criminal case against herein correspondents,” the high court said. — Vann Marlo M. Villegas

OCTOBER finds fewer Filipinos jobless, looking for more work

THE LATEST government labor data showed the ranks of jobless Filipinos and those employed but wanting more work decreasing in October, the Philippine Statistics Authority (PSA) reported this morning.

Preliminary results of the PSA’s October 2019 round of the Labor Force Survey put the country’s unemployment rate at 4.5%, down from the 5.1% recorded in the same survey round last year.

This is equivalent to 2.05 million jobless Filipinos, down from 2.203 million in October 2018.

Meanwhile, the underemployment rate – the proportion of those already working, but still looking for more work or longer working hours – improved to 13% from 13.3%. This translates to 5.615 million underemployed Filipinos, down from 5.502 million previously.

The latest unemployment and underemployment rates were the lowest among the October rounds of the LFS since the government adopted new definitions for the LFS in 2005.

The size of the labor force was approximately 45.196 million out of the 73.528 million Filipinos aged at least 15 years old, yielding a labor force participation rate of 61.5%. This was higher than last year’s 60.6%.

The employment rate, which is the proportion of the employed to the total labor force – inched up to 95.5% in October from 94.9% the previous year.

By major economic sector, services made up the largest share of the employed population. In October, the employment share in that sector improved to 57.7% from 56.8%.

The industry sector accounted for 18.9% of employed Filipinos in October, down from last year’s 19.1%.

Agriculture employed 23.5% of the workers, down from 24.1%. – Jobo E. Hernandez

Inflation picks up in November

Inflation inched up to 1.3% in November following five straight months of easing, the Philippine Statistics Authority (PSA) reported earlier this morning.

November’s headline inflation rate was up from 0.8% in October, albeit slower than the six-percent inflation rate posted in November 2018.

The latest inflation reading was also higher than the 1.2% median estimate in BusinessWorld’s poll of 16 economists conducted last week but fell within the Bangko Sentral ng Pilipinas’ (BSP) 0.9%-1.7% forecast for the month.

The overall rise in prices of widely used goods averaged 2.5% in the 11 months to November compared to the BSP’s 2.4% forecast and 2-4% target range for 2019.

Stripping out volatile prices of energy and food, core inflation steadied at 2.6% in November. Year-to-date, it averaged 3.3%.

In a press briefing, National Statistician Claire Dennis S. Mapa said the faster inflation was primarily due to the higher annual increases in alcoholic beverages and tobacco (17.6% from 16.5% in October); housing, water, electricity, gas and other fuels indices (1.2% from 0.6%).

He also noted the health index’s 3.1% uptick, which was faster than 2.9% in October.

The heavily-weighted food and non-alcoholic beverages index posted a year-on-year growth of zero-percent in November versus the 0.9% decline in October.

Meanwhile, food-alone inflation continued to decline by 0.2% in November but was slower compared to October’s 1.3% contraction. — Edwin C. Aruta, Jr.

Factory output falls for 11th straight month in October

Manufacturing output once again declined in October, extending its streak to eleven straight months, the government reported this morning.

Factory output, as measured by the volume of production index (VoPI), declined by 3.7% year on year in October, lower than September’s revised 3.6% contraction but a reversal from last year’s 2.9% growth, preliminary results of the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries showed.

Since the start of the year, factory output declined by an average of 7.6% versus the 9.8% growth recorded in January-October 2018.

Manufacturing production has been in negative territory since December 2018.

“The decline of VoPI in October 2019 can be attributed to the decreases in the indices of nine major industry groups led by furniture and fixtures (-32.0%), miscellaneous manufactures (-23.0%), petroleum products (-17.5%) and electrical machinery (-17.3%),” the PSA said in a statement.

In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) improved that month to 52.1 from September’s 51.8 and October 2018’s 54.0, marking the strongest improvement in nine months or the 52.3 logged in January.

A PMI reading above 50 signals improvement in business conditions from the preceding month, while a score below that point indicates deterioration.

Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.5%. Twelve of the 20 sectors registered capacity utilization rates of at least 80%. — Mark T. Amoguis

Pushing the local export industry forward

This first week of December, the Department of Trade and Industry (DTI) through the Export Marketing Bureau (EMB), together with the Philippine Exporters Confederation Inc. (PhilExport) and the Export Development Council (EDC), is setting up various activities for the annual celebration of the National Exporters’ Week.

The observance of the week-long event serves as a way for the public and private sectors to assert their commitment to export promotion and development in the country.

This year’s National Exporters’ Week features a series of seminars dubbed as “Usapang Exports,” which runs from Dec. 3 to 5. It is composed of different information sessions that cover various engaging discussions on exports.

The first info session, Export-Ready! Guide to Exporting for MSMEs (micro, small, and medium enterprises) held last Tuesday, tackled the DTI programs for MSMEs, Global Food Trends and Prospects for Philippine Export Products, and Online Presence for Marketing Success Trends and Future of E-commerce.

Meanwhile, the info session yesterday on Product Certification for Exports and Cross-Border Logistics centered on Green Business Certification for food and non-food, Halal Certification Updates, IP Cycle from Creation towards Protection and Commercialization, Advantage of Batangas Port, and the Future of Logistics.

The last info session on Market Opportunities and Trends in Africa: The Next Frontier, which is happening today, tackles market opportunities in South Africa, Nigeria, Kenya, Morocco, and Ethiopia, among others.

As part of the week-long celebration, the National Exporters’ Week Bazaar also opened last Monday at the DTI International Bldg. in Makati City, which will run until Dec. 13. For its part, the PhilExport, has also been conducting regional and sectoral consultations with SME exporters throughout the week.

The highlight of this year’s National Exporters’ Week is the National Export Congress 2019 (NEC 2019), which will be held tomorrow, Dec. 6, at the Philippine International Convention Center in Pasay City. The congress will include panel discussions from today’s industry experts, recognition of top exporters, and the Export Enablers Exhibit.

With the theme “Driving Exports through Digital Transformation,” the NEC 2019 will put the spotlight on the significant role that technology and collaboration plays in growing exports. It will also discuss innovative ways to enhance the competitiveness of Filipino MSME exporters through digitization.

According to PhilExport President Sergio R. Ortiz-Luis, Jr., the MSMEs need to level up their operations and processes, and improve their business strategies and efficiencies amid the rapid changes and emerging opportunities in the age of digitalization and e-commerce.

He added that they must also be aware and actively seek out of the resources, training, and support available to them from the government and the private sector.

The Philippine economy remains strong, with export as one of its key growth drivers. According to the Philippine Statistics Authority (PSA), the country’s total export sales reached $6.25 billion last August, reflecting an increase of 0.6% from the $6.22 billion recorded in August 2018.

“This was due to the increases in export sales of three of the top 10 major export commodities, namely, gold (93.2%); ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (7.6%); and electronic products (6.6%),” the PSA said.

In terms of commodity group, exports of electronic products continued to be the country’s top export with total earnings of $3.66 billion. This amount, which accounted for 58.5% of the total exports’ revenue in August 2019, went up by 6.6% from the $3.43 billion export receipt in August last year, the PSA said.

Among the electronic products, components/devices (semiconductors) accounted for the biggest share of 42.9%.  Exports for these electronic products rose by 4.1% to $2.68 billion in the said month from $2.58 billion in August of the previous year.

By major type of goods, exports of manufactured goods accounted for 83.2% of the total exports or a value of $5.20 billion last August. It was followed by exports of mineral products and total agro-based products amounting to $428.31 million and $390.56 million, respectively.

Among the country’s major trading partners, United States of America (USA) accounts for the highest export value.

“Exports to the USA comprised the highest value of $992.72 billion or a share of 15.9% to the total exports in August 2019. Exports to this country grew by 7%, from $928.07 million in August 2018,” the PSA said.

Other major export trading partners that month were People’s Republic of China at $944.23 million; Hong Kong, $938.26 million; Japan, $870.03 million; and Singapore, $353.53 million. — Mark Louis F. Ferrolino

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