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DA questioned over shift to farm credit from subsidies

SENATOR CYNTHIA A. VILLAR questioned the Department of Agriculture’s shift to farm credit from subsidies, saying that the strategy has lost over P8 billion for a previous government.
At a DA budget hearing, Ms. Villar, who chairs the chamber’s agriculture committee, said Secretary Emmanuel F. Piñol’s credit-based system did not succeed during the Arroyo administration.
“We did that before and we lost P8-billion. It was managed by DA and the Cocofund. So we transferred it to LANDBANK. Why are we going to that model?” Ms. Villar told Mr. Piñol.
“I read the mandate of ACPC (Agricultural Credit Policy Council). They are not allowed to give credit. You don’t transfer the money to ACPC, you give it to a bank and make a model how the bank will give it out,” Ms. Villar added.
The Arroyo-era losses stemmed from loan defaults.
“We’re not good at lending out money. ACPC lost P8 billion,” Ms. Villar said.
According to Mr. Piñol, the shift to farm credit was approved by President Rodrigo R. Duterte.
Mr. Piñol said in 2019, the proposed loan fund is P5.1-billion for 74,000 target beneficiaries. He said the DA has reformed the lending system to avoid the mistakes of the past.
“As of last year, the production loan easy access (PLEA) program channeled through cooperatives and rural banks has a repayment rate of 96%. The lending rate of LANDBANK was very low,” Mr. Piñol said, noting that the program started in June 2017.
In a statement on Monday, Land Bank of the Philippines said it has outstanding loans of P39.9 billion issued to fishermen and farmers as of the first half of 2018. Loan releases in the first six months amounted to P26.8-billion, which benefited 274,255 small farmers and fisherforlk.
ACPC Executive Director Jocelyn Alma R. Badiola said the agency is mandated to administer funds and credit lines are open to cooperatives through 163 banks all over the country.
“We are very careful with funds. We have learned our lesson… We are careful in selecting our loan conduits,” Ms. Badiola said.
Ms. Villar also called on Mr. Piñol to explain why the DA reduced the budget for domestic rice procurement to P7 billion from P11 billion previously.
The Department of Budget and Management reduced the DA budget by 10.54% to P49.8-billion in 2019.
Mr. Piñol said that the budget reductions were ordered by the Department of Budget and Management, noting that the DA had proposed P15 billion for rice purchases.
Mr. Piñol added: “In spite of this, we are still projecting that there will be major positive performances” in rice output but still called for a review of the budget amid a shortage of low-cost rice sold by the National Food Authority, which has emboldened sellers of commercial rice to raise their prices.
“We can be rice sufficient, but we have to invest… We have land and abundant sunshine, but we need irrigation,” Mr. Piñol said.
“The fact that we face a problem in food supply warrants a review of the budget,” Mr. Piñol said.
Ms. Villar said the main problem facing farmers was not irrigation but the lack of mechanization.
Meanwhile, Ms. Villar agreed that more funding for rice is needed.
“We will try [to increase the budget] but we are adding it indirectly via the Rice Competitive Enhancement Fund… in effect, we are not touching the budget proper but we are adding in other areas,” Ms. Villar said in a chance interview.
She said that her committee will “try hard” to pass the rice tariffication bill this month to liberalize rice imports. The tariffs generated by importing rice more freely will be applied towards making domestic rice farming more competitive.
Meanwhile, Mr. Piñol said that DA should not be blamed for inflation but rather pointed to tax reform, which has increased fuel prices. — Reicelene Joy N. Ignacio

House passes mobile number portability bill on 3rd reading

THE HOUSE of Representatives on Monday approved on third and final reading a bill allowing mobile phone subscribers to switch networks without changing their numbers.
With 216 affirmative votes, zero negatives and no abstentions, the chamber approved House Bill 7652, “Mobile Number Portability,” which will require all Public Telecommunications Entities (PTEs) to provide subscribers the option to retain their current mobile numbers when changing networks, free of charge.
PTEs will also “set up a mechanism for the implementation of MNP and not to install network features, functions or capabilities that will impede implementation of the nationwide MNP system.”
PTEs also need to ensure the confidentiality of all information obtained, in compliance with the Data Privacy Act of 2012.
The new entity providing telecommunication services is required to activate the subscriber’s ported number within 24 hours.
The old provider, meanwhile, must transmit the notice of clearance to the new provider within 24 hours upon receipt of request for porting.
Penalties for failure to comply with the bill include a fine of P100,000 to P300,000 on first offense; P400,000 to 600,000 on second; and P700,000 to P1 million on third, plus the revocation of the PTE franchise.
Its counterpart measure, Senate Bill 1636, passed on third reading on Feb. 19 and was transmitted to the House of Representatives. — Charmaine A. Tadalan

BIR letter notices: Not enough for a tax assessment

Imagine driving your car on a clear sunny afternoon, when suddenly, you are blocked and signaled to pull over by an apparent traffic enforcer in civilian clothing. To your surprise, he asks for your driver’s license and hands you a ticket for an alleged violation. Not recognizing his authority as a traffic enforcer, you refuse to give your license and question his right to apprehend you. However, he insists. Fortunately, this situation is not likely to happen; but if it does, you can expect it to be unpleasant.
The point in question is the authority of the person telling you that you have violated a rule. From a tax perspective, the issue of authority was tackled in the case of Medicard Philippines, Inc. (Medicard) vs. Commissioner of Internal Revenue (G.R. No. 222743, April 5, 2017), wherein the authority of the Bureau of Internal Revenue (BIR) to assess Medicard was challenged. In this case, the BIR, upon finding discrepancies between Medicard’s income Tax Returns (ITRs) and value-added tax (VAT) Returns for 2006, issued a Letter Notice (LN) to Medicard. Thereafter, without subsequently issuing a 2006 Letter of Authority (LoA), the BIR then issued a Preliminary Assessment Notice (PAN) and Formal Assessment Notice (FAN) against Medicard for an alleged deficiency VAT.
The case went through the rounds until it reached the Supreme Court (SC). The SC pronounced that, as the BIR assessed Medicard by virtue of a mere LN, and not by virtue of an LoA, the BIR’s assessment was void. This SC decision was recently rehashed and highlighted by the BIR in its Revenue Memorandum Circular (RMC) No. 75-2018, which was issued to emphasize the doctrinal rule enunciated by the SC in the Medicard case on the statutory requirement of an LoA.
How does a Letter Notice basically differ from a Letter of Authority?
In issuing an LN, the BIR, in effect, is performing a no-contact-audit. Here, the BIR performs a computerized matching of data from the taxpayer’s submitted tax returns and information. In case the comparison reveals some discrepancies, the taxpayer will be informed by the BIR through a Letter Notice. An LoA, on the other hand, is the authority given to the appropriate revenue officer assigned to perform assessment functions. The LoA empowers or enables the revenue officer to examine the books of account and other accounting records of a taxpayer to collect the correct amount of tax.
The SC, in the Medicard case, and subsequently, the BIR, by issuing RMC 75-2018, recognize that issuing an LN to assess a taxpayer is not valid. No assessments can be issued or no assessment functions or proceedings can be done without the prior approval and authorization of the Commissioner of the BIR or his duly authorized representative through an LoA. The concept of an LoA is therefore clear and unequivocal. Any tax assessment issued without an LoA is a violation of the taxpayer’s right to due process and is therefore “inescapably void.”
Clearly, a revenue officer must be clothed with authority before proceeding with an examination or assessment. The authority must be embodied in an LoA, and not in the form of a mere LN to the taxpayer. An LN is not an authority to conduct an audit or examination of the taxpayer leading to the issuance of deficiency assessments. Due process demands that after an LN has served its purpose, the revenue office should have properly secured an LoA before proceeding with the further examination and assessment of taxpayer.
The key word in RMC 75-2008 is “authority.” The BIR examiners should be properly authorized under the tax rules in order to validly assess a taxpayer. It is also noteworthy that, in the RMC, the BIR stated that, to help forestall any unnecessary controversy and to encourage due observance of judicial pronouncements, any examiner or revenue officer initiating tax assessments or performing assessment functions without an LoA shall be subject to appropriate administrative sanctions. This latter provision would certainly give teeth to the implementation of the issuance.
Thus, unless an LoA is served to the taxpayer, any findings or issues the BIR examiners may find during their audit are not valid, since in the first place, no examination or audit should have happened due to the tax agents’ lack of authority.
It is a welcome development on the part of the taxpayers that the BIR, by issuing RMC 75-2018, is showing its commitment to strictly observe due process in assessment cases. Nonetheless, an LN cannot just be set aside by the taxpayers even if it is not equivalent to an LoA, as the findings in the said LN can be a possible source of a BIR assessment once the BIR issues a subsequent LoA. Knowledge is power. Taxpayers, if armed with the proper knowledge of how to react to the BIR’s assessment procedures, can better prepare for and withstand a future BIR audit.
 
Jenica Angeles is a senior of the Tax Advisory and Compliance of P&A Grant Thornton.
Jenica.Angeles@ph.gt.com
+63(2) 988-2288

Reduce fares and increase passenger convenience by increasing supply

Economics is the study of proper allocation of limited resources mainly via market mechanism. If there is rising demand for a particular commodity or service, the price goes up as indicator of consumers’ willingness to pay for more services or goods, and this tells existing and potential providers to increase the supply as there is more revenue and profit to be made.
When the supply outstrips the demand due to rising competition, the price begins to flatline or decline, telling producers to stop expanding the supply, otherwise the price will keep declining further and they will lose money and may go bankrupt.
The role of government as regulator and prohibitor in this case should be limited unless a commodity or service can directly and adversely affect public health and safety, like the sale and distribution of guns, ammunitions and bombs, toxic and poisonous substances, and substandard or expired medicines, food and drinks.
When government intervenes and regulates a lot even for very useful services like providing convenient public transportation to people who have no cars or have cars but do not want to drive because of frequent heavy traffic, that is a signal or red flag that government becomes abusive and is engaged in corruption and cronyism, directly or indirectly.
The Land Transportation and Franchising Regulatory Board (LTFRB) is among the most bureaucratic and prohibitionist agencies in government. It issues plenty of NOs, prohibitions and restrictions to entrepreneurs and companies that want to provide convenient and safe rides to the public.

The long lines of people daily in many areas and cities who cannot get fast and convenient rides are the result of LTFRB bureaucratism. The franchise of legal and accredited air-con vans, buses, ride-sharing services is limited and capped or controlled at low levels. This seems a calculated move so that there will be more illegal and “colorum” vans, buses, ride-sharing cars as passenger demand is very high. And that is where lots of apprehensions, driver harassment, corruption and extortion can come in.
Last week, there were two news reports in BusinessWorld about continuing LTFRB bureaucratism of transport network vehicle service (TNVS) or transportation network companies (TNC):
(1) “LTFRB junks order for Grab to reimburse passengers” (Sept. 5), and
(2) “LTFRB approves P2-per-minute TNVS charge” (Sept. 6).
Report #1 is the agency taking back its previous order that Grab should reimburse future passengers but it should still pay the agency P10 million for “overcharging” its passengers and failure to inform the board of its P2-per minute charge.
Report #2 is the agency allowing the per minute charge and ordering TNVS to give detailed and unbundled breakdown of fares — flag down rate, per kilometer rate, travel time rate and surge price.
The P2-per minute charge is an important incentive for drivers to endure heavy traffic or flooded areas and pick up, bring passengers to their destinations.
In a deregulated environment, TNVS should be allowed to charge whatever amount as their per minute charge so long as passengers know their rates via online transactions. So a TNVS can charge P5, P10 per minute or higher — because it is fielding an SUV or a BMW or Benz to passengers who can afford.
I checked the LTFRB budget, the biggest item is on its “service” for issuing the Certificate of Public Convenience (CPC), granting of permits and establishment of routes.
One can interpret it as we taxpayers giving the LTFRB hundreds of millions of pesos yearly so that it can choose who among the entrepreneurs and businesses can expand and who should be choked. We are giving them lots of money so it can harass and even confiscate and impound private property that provide services to wary and harassed passengers but has no accreditation precisely because the agency has capped and limited the number of accredited vehicles to small numbers.
LTFRB bureaucratism seems to be doing the exact opposite of what government should do — to respect private property and allow market mechanism to respond to passengers’ rising and changing demand.
 
Bienvenido S. Oplas, Jr. is president of Minimal Government Thinkers, a member institute of Economic Freedom Network (EFN) Asia.
minimalgovernment@gmail.com

T for Trouble

President Rodrigo Duterte claimed last Saturday, Sept. 8, that Senator Antonio Trillanes IV is colluding with the Liberal Party (yellows) and the communists (reds) in efforts to topple his government by October. Trillanes, meanwhile, remains camped out in his Senate office as of this writing to avoid arrest following the issuance of Presidential Proclamation 572 (PP572).
President Duterte signed PP572 on Aug. 31 voiding Trillanes’ amnesty which purportedly was invalid from the start because of the latter’s alleged failure to submit an official amnesty application form and admit his guilt over his involvement in the uprisings against former president and now House Speaker Gloria Macapagal-Arroyo. The President’s revelation in Davao prompted the AFP Chief of Staff, Gen. Carlito G Galvez, to issue a forceful statement, to wit:
• The Armed Forces of the Philippines (AFP) submits to the majesty of the Supreme Court (SC) and yields to its wisdom as it tackles the petition filed by Senator Trillanes pertaining to PP 572.
• In deference to the SC that has taken cognizance of the case, we will not anymore comment on its merits as we hope other parties would follow suit.
• Let me belie claims by some quarters of divisiveness or rumblings in the AFP. I assure our people that, as in many times in the past, the AFP will be one and undivided as an organization.
• Let me then, as the AFP Chief of Staff, take this occasion to warn persons who or groups that attempt to divide the AFP by sowing intrigues and discord among its Officers and Enlisted personnel. You will not succeed.
• I am nonetheless reminding every soldier, airman, sailor, and marine not to meddle or take part in partisan politics. Our loyalty is to the Constitution. I command the troops to adhere to the rule of law and always obey the Chain of Command. Violation of these instructions will be dealt with severely; and personnel who will get involved will be immediately relieved from their posts and investigated.
• While I am aware that the troops have individual views on many issues, those merely hallmark an intelligent and matured organization like the AFP. But we always put the interest of the organization and the nation above our own.
• Finally, I have, as the appointing authority, commissioned the General Court Martial (GCM) that shall continue hearing the case of the erstwhile Navy Lieutenant Trillanes IV. When the GCM resumes, it shall proceed from where it stopped in its proceedings when Presidential Proclamation 75 was signed.
• The proceedings, however, will be held in abeyance until the SC has ruled on the merits of PP572.
The way I see it, from what has been reported about Senator Trillanes and the way he has conducted himself publicly through the years, he does come across as a cocky obnoxious Manchurian candidate, someone controlled by foreign and local principals to divide institutions and society, so that they can rule us. We should research whose bidding he did that for; for how much; and at what cost to the nation given all his malicious machinations, misadventures and miscalculations?
His fellow PMA cavaliers have spoken out against him. My estimate is that the Senate and the House would have a low opinion of him as well. If a survey was done today to gauge the extent of society’s support for him, I believe he’d receive low marks too. Social media circles spew fire and brimstone against his outlandish claims and calumny. He didn’t fool BBC’s Stephen Sakur, that’s for sure, who unmasked him for what he really is — fraudulent.
Now comes the issue of amnesty. He insists he was granted that. But wasn’t the process improperly executed to begin with and did he actually fulfill all of the requirements? Here’s someone whose shattered credibility and integrity as mutineer, coup plotter, backchannel and oppositionist, wants us to believe him one more time.
On Jan. 5, 2011 GMA News Online reported Trillanes’ “general admission of guilt” for violating military rules and the Revised Penal Code (RPC). Despite the admission, he said he never regretted participating in the 2003 mutiny where some 300 “Magdalo” rebels took over the Oakwood Hotel in Makati to air their grievances against the Arroyo administration. He says they never denied what he described was “something out of the ordinary.” While admitting to “violating some rules,” they did not own up to the mutiny and coup d’etat charges lodged against them in civil and military courts.
Let’s see where all this will lead us to. But for now, the uncertainty is destabilizing the business climate. Investors are on neutral mode to wait out the fluid situation. Both friend and foe say the President isn’t helping the situation any. As a friend, I’ll stick my neck out to express my thoughts on mitigating risk.
1. Less talk, less mistake.
2. Insist on timely, accurate and thorough info to make informed decisions.
3. Avoid rash decisions or speaking in public when you’re angry.
4. You’re on the global stage. Anything you say or do could be used against you.
5. Insist on strategy-based performance and results from well selected teams.
6. Appoint new whips if incumbents are not up to the job to carry out your intent.
7. Clean up the stables of those unfit to serve and hire professionals to help you.
8. Choose your battles, don’t overextend.
9. Win the war on crime and corruption with criminal justice system reform.
10. Threats to quit demoralizes society and emboldens its enemies.
11. You’re damned, right or wrong. Just do what’s right and do it the right way.
Mr. President, your enemies want you out of Malacañang on or before the end of this year. That, plus your threats to quit, are destabilizing and deflating. They offer no stability nor clarity, no hope nor solutions to the people’s daily crosses.
Hang tough and let them tighten their own nooses around their necks. Don’t let them wear you down. Rest easy, the AFP-PNP and the people are behind you.
 
Rafael M. Alunan served in the cabinet of President Corazon C. Aquino as Secretary of Tourism, and in the cabinet of President Fidel V. Ramos as Secretary of Interior and Local Government.
rmalunan@gmail.com
map@map.org.ph
http://map.org.ph

Is Duterte a resurrected Marcos?

After Senator Leila de Lima, Senator Trillanes now seems next in line for Malacañang’s retaliatory moves against prominent critics.
In both cases, the purposive arbitrariness of Malacañang has been on full display. In De Lima’s case, intimate sexual relations — otherwise deemed personal and beyond the scope of state encroachment — were highlighted. In Trillanes’ case, procedural technicality was invoked. This recent move is clearly suspect, not only because revoking amnesties has never been done before but also because Trillanes was not the only military officer involved in the mutiny/amnesty being questioned. Why then were the other mutineers such as Nicanor Faeldon (now part of Duterte’s government) spared from the same fate? Malacañang’s issue thus is not the mutiny or the amnesty, but Trillanes himself. In the vernacular, we have a term for this: “hinanapan lang ng butas.”
In a democracy, no one is supposed to be penalized for holding and expressing his or her political beliefs. This latest episode thus begs the question: Are we now under a dictatorship? Is Rodrigo Duterte a resurrected Ferdinand Marcos?
DEMOBILIZING THROUGH FORCE
The demobilization of the opposition through force is often the distinguishing mark of a dictatorship. Such demobilization also happens in democracies, but in dictatorships, it is done through illegitimate or duplicitous, coercive means.
According to Mark R. Thompson in his 1995 book The Anti-Marcos Struggle: Personalistic Rule and Democratic Transition in the Philippines, “Marcos demobilized much of the traditional opposition by abolishing Congress; shuttering pro-opposition newspapers, radio stations, and television stations; banning demonstrations; and imprisoning many leaders of the opposition.”
Similar developments have taken place: (i) while Duterte has not abolished Congress, he has captured the legislature through a “supermajority” in the House of Representatives and the removal and/or weakening of opponents in the Senate, (ii) Duterte has also tried to “shutter” media institutions such as Rappler, ABS-CBN and Inquirer, (iii) Senator de Lima has been in jail for one and a half years and Senator Trillanes’ arrest now seems forthcoming, and (iv) Duterte’s intervention in the Judiciary has also been revealed in the ouster of Chief Justice Sereno through a quo warranto. Moreover, just like Marcos, Duterte has been looking to the military and the police as a base of support.
Both Marcos and Duterte also made/make use of “enemies” as mobilizing factors. Communists for Marcos, drug users and pushers for Duterte. Consolidating around enemies was/is the way by which these leaders separate/d the grain from the chaff: those who did/do not acknowledge the (identified) “enemies of the state” are also their (Marcos’s and Duterte’s) enemies.
Marcos’s type of dictatorship, prevalent in the ‘70s — the kind that demobilizes traditional opposition and directs and mobilizes the political apparatuses of the state to centralize power in a military junta or a “strongman” — has been labelled by some scholars, most notably by the Argentinian political scientist Guillermo O’Donnell, as “bureaucratic authoritarianism.”
In the regimes between Marcos and Duterte, demobilization of the opposition also happened but it came in the form of capturing hitherto opposition forces through material inducements and political horsetrading (e.g pork barrel). What sets Duterte apart from these regimes and makes him more similar to Marcos is his use of force to quell dissent and mobilize support.
All this has fostered a politics of fear and a culture of violence — exactly what Marcos built and what Duterte is now rebuilding. In Marcos’s time, this kind of politics and culture resulted in more than 70,000 imprisonments, 34,000 torture victims and 3,240 deaths (as per Amnesty International). In Duterte’s time, the number is just as alarming: more than 20,000 deaths. The dominance of fear and violence makes Duterte’s regime a de facto dictatorship — even without the Marcos-style proclamation of martial law.
POPULAR SUPPORT
One observable difference between the Marcos and Duterte regimes is the level of political cohesion within their ranks. Marcos’s Kilusang Bagong Lipunan (KBL) was monolithic. Meanwhile, Duterte’s PDP-Laban — the once irrepressible opposition party that challenged the Marcos dictatorship — has splintered into factions. Very recently, we saw — on national TV — the in-fighting between Gloria Macapagal Arroyo and Pantaleon Alvarez for the House Speakership post. Before that, we saw the political skirmish between Alvarez and presidential daughter-Davao City Mayor Sara Duterte, between Alvarez and Congressman Floirendo, and, between Congressman Fariñas and the Marcoses. Even on the federalism issue, we see a divide between Duterte’s political operators and his economic managers.
While Duterte’s camp lacks political cohesion from within, it has something that Marcos did not have: a massive, popular support base. Thus, while Marcos was “bureaucratic authoritarian,” Duterte has been labeled as “populist authoritarian.” Duterte may not have a KBL (although Sara Duterte’s Hugpong is probably on its way to becoming a KBL) but he has the DDS and a number of Mocha Usons in and outside of government.
The presence of these supporters creates a semblance of democracy and this, in turn, provides justification for the Duterte camp to deny any suggestion that Duterte is indeed dictatorial. For them, the DDS are an indicator of inclusion and pluralism, not dictatorship.
Duterte’s supporters are, in fact, active, not passive — owing in large part to the effectiveness of the rhetoric and imaging that Duterte has been carrying. Unlike Marcos who presented himself (and Imelda) as some sort of royalty, Duterte has projected himself as hoi polloi — no different than the common tao (common man, to be exact). His manner of dressing, speaking/cursing are all tailor-fitted to that image. Even his rape jokes are presented as ordinary or commonplace.
Despite this rhetoric and imaging, Duterte is actually surrounded by rich business people more than “ordinary people.” This alliance with the elite (most likely the elite displaced by the previous government) is something that Duterte has in common with Marcos. In both cases, the preference for the elite and the middle class and the disregard for the lower classes (the poorest of the poor) are apparent — in practice.
From the lens of class, Marcos and Duterte are thus comparable. From the lens of human rights, they too are comparable although the institutional-structural violence under Marcos was more pronounced and visible (given also the length of the Marcos dictatorship). From the lens of gender rights, Duterte is the worse dictator.
SAME DAMAGE
The question of “who is better/worse” may actually not be the most essential of public conversations. What we probably need are long conversations on why we keep on producing leaders with very authoritarian ways.
I see at least two reasons why: (i) because, after Marcos, our fundamental political-economic structure remained unchanged in the sense that sections of society were always excluded — and these sections readily serve/d as potential/actual base for whoever promises social inclusion, and (ii) our social institutions — our families, schools, churches, social and political movements — are highly hierarchical and undemocratic; we have no culture of democracy; dictatorial rule is thus always a temptation.
Marcos and Duterte may not necessarily be of the same mold, but dictatorship, regardless of “type,” is always damaging to a nation’s political development, economic potential and societal fabric. And the damage is always deep, multi-dimensional and far-reaching.
The best analogy I can think of is rape. No matter the circumstances, the effect of rape is always the same: human and societal brokenness. Hindi mahalaga kung sa talahiban o sa kwarto nangyari ang rape, kung kakilala o di kakilala ang rapist, kung bata o matanda ang na-rape, kung “mabait” o sira-ulo ang nang-rape, kung “malaswa” o mala-birhen ang na-rape o kung maganda o pangit.
Rape is rape. Dictatorship is dictatorship.
 
Carmel V. Abao is a faculty member of the Political Science Dept of the Ateneo de Manila University. She teaches political theory and international political economy.

Imaginary MBA 199: Seminar on Crazy Rich Asians

Description: An integrative course on understanding global social, economic and political environments of business from the perspective of contemporary Asian systems as influenced by China’s rise, particularly depicted in a 2018 film of the same title. An integrated business and film appreciation course useful for scenario planning, design thinking, behavioral economics, organizational behavior, game theory, and strategic finance/ marketing.
Who should take this: Millennials, who want to establish foothold in new markets. Baby boomers, Generation X and Y of Asia and the rest of the world who wish to understand how their legacy relations and businesses may be managed by their offsprings/ successors.
Prerequisites: Life-long courses vetted for equivalency in the Master program by the participants themselves. Open to both MBA-degree and non-degree type-students looking for integration of management courses to life — for money, merriment or both.
This course is about the movie, not just books and news of everyday business life. It is reflective of the real world of 21st C humans in business and society, useful for assessing environments and succeeding in the firm’s triple bottom lines of people, planet and prosperity/ profits for all.
The movie begins with a quote from Napoleon Bonaparte (China is a sleeping giant, let her sleep, for when she awakes, she will move the world). However, the seminar will focus on something students of today are likely to appreciate more — what Bruce Lee is immortalized with in a tourist souvenir shirt from Hong Kong (not in the movie): “Knowing is not enough, we must apply. Willing is not enough, we must do.”
The story line is simple: rich boy Nick hides his princeling status to poor immigrant girl Rachel she met in the city that never sleeps; Nick’s Chinese mom in an Asian city cannot accept Rachel into the family and plots the separation of the two. But it becomes more complicated: poor girl uses the loss aversion concept that she teaches in a major university to win two other sides of her trilemma (repeated use of “two in, one out” approach in decision making). She made it in New York, she should make it in Singapore.
That Bruce Lee quote may as well be the 21st enterprise strategy of leaders: use the head (cognitive knowledge), the heart (affective relations), and the hand (action-oriented management that uses both head and heart) to be effective in the new knowledge era of the fourth industrial revolution. Rachel showed this strategy in the classrooms of both university (lecture hall) and life (mahjong session). Others failed — colorfully shown as the series of insta-messaged news of Nick bringing over Rachel to Singapore from New York, pictures and all, traversing the worldwide web of intriguing reactions.
The movie is full of allusions to the role of certain regions in the 21st C world. Pacific ASEAN Lines will fly you from the West to the East, a new role for a critical bridge between places and across time, albeit ASEAN is emblazoned in lowercase across the aircraft. The journey will change your perspective of the colonial age that gave geography its 21st C political boundaries of race and color (ostentatious Malay side represented by Princess Intan, played by Kris Aquino; stereotype turbaned guards of Singaporean mansions; rowdy and flashy entertainers gyrating to Western band and music, echoed in the fancy wedding announcement and bachelorette parties), or religion (affluent women in a prayer group drowning in gossip between chapters and verses of Ephesians and Corinthians). Changed as well may be the Western notion that messy kids of rich parents from the Far East could not be the harbingers of the new majority shareholders of their own workplace, business or society.
But the deep part of this seminar calls for repeated applications of ideas that people’s behaviors are not one-stage actions. Rather, they unfurl as stories — or games — in the short- and long-terms, with gains and pains designed by winners as climax of processes and journeys. Beginning with the end in mind, only certain players — who think what other protagonists think — are likely to succeed in the final round; they build scenarios in their mind for the win-win solution that zero-sum players will fail to see — and thus lead the trilemma to a beautiful conclusion.
Students in this seminar will apply the original trilemma among Rachel, Nick and his Mom to Napoleon’s observation on China, in the context of the current South China Sea impasse, with the Philippines and the United States as the other parties.
Scenarios are mapped out separately (China-US, Philippines-US, China-Philippines) to suggest that another trilemma (combinations of political, economic, and socio-cultural dimensions treated always as “two in and one out”) faced by these players will likely end disastrously if only competitive solutions are applied. Empathy and co-opetition are introduced to better understand several prisoner’s dilemma, here repeated in three different sets of relations in the Asian Trilemma.
The world has limited and imperfect information even in the age of Big Data; non-rational players face all sorts of cognitive biases and are nudged to variously think fast or slow; markets are constantly being reinvented with fields of academic study in University 1.0 when they cross boundaries of 21st C knowledge everywhere (agribusiness, ecotourism, fintech, mechatronix; religion + science + ethics; statistics/ mathematics + computer information + domain expertise for decision making in data science; healthcare and education + artificial intelligence + public administration; criminology + forensics using data extracted from sensors+ statistics + hypothesis testing, etc.).
The Seminar looks at the necessary and sufficient conditions to establish the peace and prosperity that great civilizations ought to practice outside the Middle Kingdom, in contrast to vindictive nation states born out of colonial strategies — the Opium Wars deeply etched in China’s psyche are now the perfumed nightmares of Crazy Rich Asians, and beyond. Indeed, the onus is on other players as well — they need new understanding of the VUCA (volatile, uncertain, complex and ambiguous) environments of real life that are really stranger than fiction. Sign on!
The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.
 
Federico “Poch” Macaranas is an adjunct professor at the Asian Institute of Management (AIM) who has put on new tires (re-tired) enjoying teaching wise leaders how to ride the world of millennials.
fmmacaranas@gmail.com
map@map.org.ph
http://map.org.ph

San Beda, Letran collide anew in NCAA Season 94

By Michael Angelo S. Murillo, Senior Reporter
LONG-TIME National Collegiate Athletic Association rivals San Beda Red Lions and Letran Knights meet for the second time in Season 94 today in the opening seniors’ game at 2 p.m. at the FilOil Flying V Centre in San Juan City.
Currently at second and third place, respectively, in the standings midway into the race, the Lions (10-1) and Knights (7-3) go for the victory that would help fortify their place in the top half of the pecking order and claim for a Final Four spot in the ongoing season.
The two teams had it tight in their first-round encounter on Aug, 10, with Mendiola-based San Beda edging its Muralla-based rival, 80-76, in overtime.
Robert Bolick and AC Soberano rose for the Lions in extra time to stave off a gallant challenge from the Knights.
Bolick hit two free throws late to ice the game while Soberano scored all of his six points off two triples in OT to propel his team’s push to the victory.
The veteran Bolick had all-around numbers of 20 points, 11 rebounds, six assists and two steals while Cameroonian big man Donald Tankoua had a double-double of 11 points and 13 rebounds.
“I salute him (Soberano). He came in and help us win this game,” said San Beda coach Boyet Fernandez of Soberano’s impact in said game.
“Robert is Robert, he will win us games again and again,” he added.
Heading into today’s game, Mr. Fernandez said they are expecting another tough fight against the Knights.
“We expect it to be tougher for us because we know Letran is a strong team and is always a contender,” he said.
Letran, for its part, did not lack effort in trying to win in the first meeting of the two teams.
Five players finished in double-digits in scoring for the Knights with Bong Quinto tallying a game-high 21 points.
JP Calvo had 14, while Jeo Ambohot, Jerrick Balanza and Christian Fajarito finished with 13, 11, and 10, respectively.
Letran fought hard throughout the contest but just could not hit the mark down the stretch that allowed the Lions the opening it needed to chalk up the win.
Following the San Beda-Letran clash is the battle between the College of St. Benilde Blazers (7-3) and San Sebastian Stags (2-9) at 4 p.m.
BALANZA
Meanwhile, Letran’s Balanza, recently ruled out for the entire season after undergoing brain surgery, was named NCAA player of the week by the league’s press corps, acknowledging the courage and poise he has shown in this trying times.
The Knights also dedicated their 99-82 victory over the Arellano Chiefs on Sept. 6 to their currently sidelined teammate and said Balanza is a source of inspiration for them.
“Jerrick is still part of the team. He has to be away for a while for health reasons but his presence in the dugout and in the practices is still there,” said Letran coach Jeff Napa of Balanza, who finished the opening round of the season with averages of 7.4 points, 2.6 rebounds and 2.2 assists.
Balanza underwent surgery to remove the tumor in his brain on Sept. 7 and was hailed as a success. He is currently recovering but needs financial assistance to attend to the obligations related to his treatment.
For those who wish to help Balanza, you may deposit your donation at any BDO branch, under the account name of Colegio de San Juan de Letran, Inc., with account number 4500003129 and BDO Intramuros as branch.

Djokovic wins 3rd US Open

NOVAK DJOKOVIC — AFP

NEW YORK — Novak Djokovic clinched his third US Open title on Sunday with a 6-3, 7-6 (7/4), 6-3 triumph over Juan Martin del Potro, taking him level with Pete Sampras’s mark of 14 Grand Slams.
Djokovic, playing in his eighth final in New York and already the champion in 2011 and 2015, is now just three Slams behind Rafael Nadal and six back from the all-time record 20 held by Roger Federer.
It was also the third time the 31-year-old Serb — who missed last year’s tournament with an elbow injury which sent his career into a mini-crisis — completed the Wimbledon-US Open double.
“I want to say Pete, I love you, you’re my idol,” said Djokovic of Sampras.
“To the support of the loved ones, my kids, my wife, my small team of people that has been there with me through difficult times as well,” added the Serb who underwent elbow surgery after the Australian Open in January.
For world number three Del Potro, it was a heartbreaking experience coming in just his second Slam final, nine years after he was crowned US Open champion before a long battle with wrist injuries pushed him into depression and to the brink of retirement.
“When I had my surgery I could truly understand what Juan Martin was going through when he had surgeries that kept him away form the tour for two or three years,” added Djokovic.
It was Djokovic’s 15th win over the Del Potro and fifth in five at the Slams.
It came in a final which was business-like rather than thrilling, a relief for a tournament still reeling from the controversial women’s final on Saturday.
The result also means that 50 of the last 55 majors have been won by the ‘Big Four’ of Federer, Nadal, Djokovic, and Andy Murray.
Del Potro backed Djokovic to surpass Federer’s mark of 20 Slams.
“Of course he can. Novak has everything to make records in this sport,” said the Argentine.
‘MY IDOL’ DJOKOVIC
“I was so happy to be playing the final against this magnificent idol,” added Del Potro of his close friend Djokovic.
“He knows that he’s one of my friends on tour and he knows he’s one player I want to watch win on tour. Of course I’m sad to lose but I’m happy for Novak as well. You deserve to win.”
With the Arthur Ashe Stadium roof closed as heavy rain swept New York, conditions were slow and sluggish.
After taking just two points off Del Potro’s first three service games, Djokovic, in his 23rd final at the majors, pounced to break for 5-3.
The key was his success with a lung-busting 22-shot rally and he pocketed the set when the 29-year-old del Potro netted a forehand.
It was only the second set dropped by the Argentine at the tournament.
For Djokovic, it was an illustration of him growing into the championships as he took his run of consecutive sets won to 14, stretching back to the second round against Tennys Sandgren.
Djokovic was soon 3-1 up in the second set before Del Potro carved out his first break point of the match to level at 3-3.
He had three more chances in the eighth, all saved by Djokovic in a marathon 20-minute game which left even Hollywood superstar Meryl Streep clasping her head in astonishment.
The effort took its toll on a suddenly weary-looking Del Potro as a 95-minute set was claimed by Djokovic in the tiebreak.
Del Potro was looking at having to become the first man since Pancho Gonzales in 1949 to win the US title from two sets down.
Djokovic sprinted into a 3-1 lead in the third set before a battling Del Potro clung on, hitting back for 3-3.
But off the back of a 24-shot rally, Djokovic broke again for 5-3 and he was within tantalizing touching distance of his 14th Grand Slam title, just three months after he had left Roland Garros in despair after a shattering quarter-final exit. — AFP

WTA chief backs Serena as row grows over US Open ‘sexism’

NEW YORK — Serena Williams’s claim that the code violations that sparked her meltdown in the US Open final were sexist stirred debate, with WTA Tour chief executive Steve Simon backing her on Sunday.
Williams was handed three code violations — and docked a point and then a game — in her 6-2, 6-4 loss to Naomi Osaka in the Flushing Meadows final.
Osaka out-played her childhood hero to become the first Japanese player to win a Grand Slam, but her accomplishment was swamped in the controversy surrounding 23-time Grand Slam champion Williams.
The American superstar claimed that chair umpire Carlos Ramos meted out penalties for infractions that male players could have gotten away with, specifically a violation for verbal abuse after she called him a “thief” and a “liar” for warning her for coaching from her players’ box, then docking her a point when a racquet abuse violation followed.
Eventually she was docked a game — putting Osaka on the brink of victory.
Simon said the affair brought to the forefront the question of whether different standards are applied to men and women in the officiating of matches.
“The WTA believes that there should be no difference in the standards of tolerance provided to the emotions expressed by men vs women and is committed to working with the sport to ensure that all players are treated the same,” he said.
“We do not believe that this was done last night.”
Williams was most incensed by the first code violation she received — for coaching from her box.
It’s not clear if she even saw the hand gestures by coach Patrick Mouratoglou sitting her box, although he admitted in an interview with ESPN that he was trying to advise her — and said all coaches do it.
COACHING ‘HYPOCRISY’
“Yes, I was coaching just like everybody else. We have to stop this hypocrisy. Furthermore, Serena didn’t even see my gestures. She felt humiliated by the warning,” said the Frenchman.
Simon said the sport as a whole should examine the rules on coaching, noting that the WTA already allows on-court coaching during regular tour events — if a player requests it.
US great Billie Jean King addressed both issues, also seeing things Williams’s way.
“When a woman is emotional, she’s ‘hysterical’ and she’s penalized for it,” King tweeted. “When a man does the same, he’s ‘outspoken’ & and there are no repercussions. Thank you, @serenawilliams, for calling out this double standard. More voices are needed to do the same.”
National Organization of Women president Toni Van Pelt weighed in with a statement calling for the USTA to sever any ties to Ramos for “a blatantly racist and sexist move.”
Williams’s pleas to referee Brian Earley and a Grand Slam supervisor — called to the court after she failed to get satisfaction from Ramos — were to no avail.
The USTA said in a statement after the match that the decision to hand out the final code violation and game penalty was “not reviewable.”
“Because I’m a woman you’re going to do this to me,” she fumed on court and after the match Williams didn’t walk back that charge.
“I’ve seen other men call other umpires several things,” she said. “I’m here fighting for women’s rights and for women’s equality and for all kinds of stuff.”
Men’s champion Novak Djokovic dreaded warily when asked to weigh in on matter.
Djokovic noted that it was an “awkward situation” for both competitors and “tough” for the umpire.
“I have my personal opinion that maybe the chair umpire should not have pushed Serena to the limit, especially in a Grand Slam final,” he said.
“He did change the course of the match. It was, in my opinion, maybe unnecessary. We all go through our emotions, especially when you’re fighting for a Grand Slam trophy. — AFP

Agatha Wong: For the love of wushu

AGATHA CHRYSTENZEN Wong could have easily been a swimmer, a karatedo athlete or even a ballet dancer, but it is in wushu that she has found her place under the sporting sun.
It is a sport that the newly minted Asian Games bronze medallist has vowed dedication to, something she aspires to successfully share with others with the hopes of more people getting to appreciate wushu and eventually picking it up.
“My parents were athletes and they made me try a lot of sports like swimming, karatedo and wushu. I also tried ballet. But when I had to choose, I chose wushu,” said Ms. Wong, 20, in a media roundtable on Sept. 6 hosted by the College of St. Benilde, the school where she got her degree in Consular and Diplomatic Affairs.
“Wushu is a very practiced sport all over the world. If you asked people which is the number one exercise in martial arts it is actually wushu. It is [prevalent] not only in Asia but also in Europe and the Americas. So when you’re from the Philippine team and you’ve gone to international competitions they know you are good,” she added.
And the top caliber that Filipinos have in wushu was what she showed in the recently held 18th Asian Games in Jakarta, Indonesia, where Ms. Wong wound up with a bronze in the women’s taijiquan and taijijian all-around event.
Competed third in the lineup, Ms. Wong tallied a total of 19.36 points behind gold medal winner Lindswell Lindswell of Indonesia with 19.50 points and silver medallist Juanita Mok Uen Ying of Hong Kong with 19.42 points.
Her bronze was one of the 15 that the Philippines had to finish 19th overall in the medal standings of the quadrennial continental sporting event.
Ms. Wong said that she is very proud of the bronze medal that she got, considering the preparation they had in the lead-up was not ideal as hoped, particularly with the support, or lack thereof, that they got.
“To be honest, the support was not that solid before the Asian Games. The team had financial problems, we had no coach and no budget for new costumes… And then we didn’t train in China, which was important in big competitions like the SEA Games and Asian Games. It was mandatory for us to train in China because we would have had a better shot in the Asian Games,” she said.
But Ms. Wong rose above it all through good old hard work and resilience.
WOMEN CAN DO IT
She went on to say that she, too, is proud of being part of the recurring theme in the Asian Games of women doing well for the Philippines.
Of the 21 medals won by the country, 13 were from women, including the four gold medals care off weightlifter Hidilyn Diaz, skateboarder Margielyn Didal, golfer Yaku Saso and the Philippine women’s golf team.
“I think we know that every country is actually a dominantly patriarchal society so you know when they comment that, ‘You play like a girl.’ It’s quite an insult. But in this case, out of 21 medals [we got], 13 of those were from Filipino women and I can say that I’m really proud not only to be a Filipino but basically to be a girl and represent this country,” said Ms. Wong.
Adding, “I think their perspective on gender and equality here has changed as well and I think they started to view women as no longer the weaker one. When you look at it we’re equally the same as men. So I just want every Filipino to know that you cannot look down on women because women are as a great as men.”
Having done well in the sport of wushu, Ms. Wong said takes pride in what she has accomplished to date and setting her sights on more mountains to conquer.
“When I want something I really try to do everything I can to achieve it. The road to where I am now was not easy. I had to balance academics and the sport along the way. But it made me tougher and shaped my mentality that I have as an athlete,” Ms. Wong said.
Up next for Ms. Wong is the Wushu World Cup in November in Myanmar and then the 2019 Southeast Asian Games that the country is hosting and the World Championship next year. — Michael Angelo S. Murillo

Phoenix Petroleum supports Pinoy athletes’ dream with P50 million to Siklab Atleta

IN CULMINATION of its “Buhayin Ang Laban Para Sa Ginto” donation drive, Phoenix Petroleum has turned over a cash donation amounting to P50 million to Siklab Atleta Pilipinas Sports Foundation on Sept. 7, 2018.
Last Independence Day, Phoenix Petroleum launched the campaign in support of the country’s dream of winning its first ever Olympic gold medal at the upcoming Tokyo 2020 Olympic Games.
The company pledged to match every liter of Phoenix PULSE Technology-blended fuel purchased at Phoenix stations from June 12 to August 12, 2018 with a 25-centavo donation to Siklab Atleta.
The two-month-long campaign gathered a total of P25 million from customers who fueled up at Phoenix. Overwhelmed by the support of fellow Filipino motorists, Phoenix Petroleum doubled the amount—making the total amount to be donated P50 million.
“We thank our fellow Filipinos who showed their nationalism by participating in our donation drive. This initiative aims to reignite Filipino patriotism and the spirit of bayanihan, as we all work toward a common goal, which is to bring glory to the Philippines,” Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon said.
Siklab Atleta Pilipinas Sports Foundation, Inc. is a private non-profit organization launched in 2017, which aims to bring to life every Filipino athletes’ dream of winning a gold medal in the Olympics. Phoenix Petroleum is one of the top companies in the country who has pledged to support the projects and initiatives of Siklab Atleta.
Through Siklab Atleta, top Filipino athletes will be provided with improved and upgraded training equipment and facilities, coaching services, exposure to international competitions, and scientific training methods to further hone their talents and develop their skills.
With 545 retail stations nationwide, Phoenix Petroleum is the leading independent and top three oil company in the country. Earlier this year, it launched Phoenix PULSE Technology, a fuel additive with advanced cleaning and protection properties for enhanced power and acceleration. Phoenix PULSE Technology is available in all fuel grades, adding value to every peso fueled up at Phoenix Petroleum.