Facebook Instagram Linkedin X Youtube
Home Blog Page 10378

Guimaras told to turn to agriculture as tourism drops 74% in August

ILOILO CITY — Local government units (LGUs) in Guimaras have been advised to develop agriculture for the time being pending the resolution of disrupted boat service to the island province which caused tourist arrivals to drop 74% in August.

Department of Tourism (DoT)-Western Visayas Regional Director Helen J. Catalbas offered the department’s help in marketing Guimaras produce in Iloilo.

On Aug. 3, three boats sank in bad weather in the Iloilo Strait, leading to the imposition of restrictions on the ferry services that the island depends on. The restrictions include limited hours of operation, which has made day trips less manageable and put visitors at risk of missing their return trips to the Panay mainland.

“This is a challenge. LGUs, municipalities, province, please look at your (farming) potential. If you need training, we will help you. You need to partner with huge establishments, with which we can help you,” she said during an inter-agency dialogue of public and private tourism stakeholders on Oct. 3.

Ms. Catalbas cited the example of 40 farmers in Jordan, Guimaras who were trained to supply produce to SM City Iloilo.

She said one of the DoT’s plans is to offer market-day trips to Jordan, which faces Iloilo city along the strait.

“With more farmers being trained, Jordan will be the bagsakan (wholesale supply hub) in Guimaras. We have identified 20 potential markets in the region, but we will start with Jordan,” she added.

During the dialogue, Guimaras Governor Samuel T. Gumarin reported that visitor arrivals from Aug. 4-31 fell 74% year-on-year.

“We only recorded 11,432 arrivals compared to the 43,709 in the same period in 2018,” he said, adding that tourism receipts also dropped to P9.8 million from P42.9 million.

Meanwhile, stakeholders are still pushing for the resumption of 24-hour boat service between Guimaras and Iloilo with safety provisions in place.

The Integrated of the Bar Philippines (IBP)-Guimaras Chapter has filed a civil action before an Iloilo Regional Trial Court to lift the restrictions imposed by the Maritime Industry Authority (MARINA).

“The 24/7 navigation is possible because it only takes 15 minutes from Iloilo to Guimaras, we don’t really need the (restrictions),” IBP-Guimaras Vice-President Tomas E. Jungco, Jr. said.

Marjorie T. Mella, owner of Jem Home Farm in Guimaras, expressed support for the IBP’s action, although she said even opening up boat service until 10 p.m. would address the situation.

“If they can’t give us 24/7, maybe extend our travel at night time because it’s very difficult for us. It hasn’t been an easy ride for us,” she said.

MARINA-Region 6 Director Jose Venancio A. Vero, Jr. said the protocols were approved at the national level and are intended to protect the public.

“As regards (the) 24/7, we have an existing policy… we cannot do anything because that is a policy set by the national (government),” Mr. Vero said.

He also noted that prevailing weather conditions sometimes make the Iloilo Strait and the channel from Iloilo to Guimaras “treacherous.”

He said wooden-hulled motorboats are suitable only for daytime navigation. — Emme Rose S. Santiagudo

Risk from POGO departure not considered major — BSP

THE Bangko Sentral ng Pilipinas (BSP) reiterated its position that the exit of Philippine Offshore Gaming Operators (POGOs) will have no significant effect on the economy.

BSP Governor Benjamin E. Diokno said: “Di naman talaga kailangan ng POGO. Yun pa rin ang assessment namin. (POGOs are not really needed. That remains our assessment.) It will not be a financial risk to the economy (if POGOs exit), kasi hindi naman ganon kalaki ang exposure nila sa real estate (the real estate sector’s exposure to POGOs is not that great).

Mr. Diokno was speaking to reporters on the sidelines of The Asset’s 14th Philippine Forum.

He added that said that Malacañang has yet to respond to his recommendation.

POGOs have become an irritant in the relationship with development donor China, which fears that its foreign exchange controls could be undermined. In August, the Chinese embassy in Manila announced a crackdown on online gambling, to bring the industry in line with its general ban on gambling in all forms.

POGOs have also generated discontent because of perceptions that the largely Chinese work force is taking away jobs and could be running rings around the alien work permit system and withholding tax rules.

At the same event, Finance Secretary Carlos G. Dominguez III said that the government is not against POGOs in principle but added that they should follow the tax rules.

“We are only implementing the law. But they have to follow and pay taxes as required by law,” he said in response to a question at a forum.

The exit of POGOs will leave a “glut” in office space which can be absorbed by traditional demand, UnionBank of the Philippines, Inc. chief economist Carlo O. Asuncion told BusinessWorld.

“There will be a glut in office space that, I think, will readily be taken up by traditional demand like that coming from conglomerates, construction, finance, professional services, technology, etc… The non-POGO office demand is still robust and stable,” Mr. Asuncion said in a text message.

He said POGOs take up between 1 million and 1.3 million square meters of office space in Metro Manila, with a high concentration in the so-called “Bay Area” reclamation zone.

However, Mr. Asuncion said in the real estate sector, “growth has softened from 10.9% in the first half of 2018 to 7.2% the same period this year. So, one can say that the impact of POGOs has not largely been felt.”

In a September report, Fitch Ratings said a crackdown on POGOs will have no significant effect on the banking sector.

“We understand that most major property developers have placed internal limits on their direct exposure to such operators in light of the potential policy risk,” Fitch said, noting that the vigilance over the sector could affect the domestic property demand more, as POGOs have absorbed about a third of Metro Manila’s office space from 2017-2018.

The government stopped accepting applications for new POGOs at least until the end of 2019 pending a policy review on the sector.

“POGO demand for space is expected to decelerate by the end of this year because of the temporary ban by the government,” Mr. Asuncion said. — Luz Wendy T. Noble

ASF testing capacity under strain as disease spreads

BLOOD SAMPLE testing for African Swine Fever (ASF) is encountering bottlenecks at the Bureau of Animal Industry (BAI) national office because of limited capacity or supply at regional laboratories, the bureau’s director said.

BAI Director Ronnie D. Domingo told reporters Wednesday that the referrals from the regions often overwhelm the national laboratory’s processing capacity of about 600 samples a day.

“Ang sabi sa akin ng laboratory ang (that their) capacity nila mga 600 samples every day (The laboratory told me that it can process about 600 samples a day)… Kung biglang dumating yung isang tambak mula sa probinsya (If a large volume of samples suddenly arrives),” the national laboratory has to adjust, he said.

Confirming the presence of ASF usually takes 10 hours, but due to the volume of samples, some results may take two to three days before release, he said.

The ability to test blood samples efficiently is becoming more critical with the spread of ASF, which could soon include another town in Plaridel, Bulacan.

The Department of Agriculture (DA) has conducted tests in Barangay Sipat, Plaridel, after a pig farmer reported unusual hog deaths in the area on Oct. 2. Mr. Domingo has yet to confirm the results of testing on Plaridel blood samples.

The DA has confirmed ASF in 20 locations. The first cases surfaced in Rodriguez and Antipolo Rizal, Guiguinto, Bulacan, and various locations in Quezon City, Pangasinan and Pampanga.

The number of hogs culled has surpassed 20,000 head as of Oct. 1, which is 0.15% of the total population.

The Crisis Management Task Force on Swine said in a bulletin on Wednesday that about 12,000 head of swine have tested positive for ASF.

The suspicion of ASF triggers the so-called 1-7-10 protocol, which calls for the cull of all hogs within a one-kilometer radius as well as the disinfection of all farms. The seven-kilometer radius is declared a surveillance area, subject to testing and sampling, while movement of hogs is restricted in the 10-kilometer ring. — Vincent Mariel P. Galang

Davao water contractor seeks gov’t aid for right-of-way, traffic

DAVAO CITY — Aboitiz-controlled Apo Agua Infrastructura, Inc. (AAII) is seeking the support of government agencies in obtaining right-of-way and in managing road traffic associated with the construction of its P12.6-billion bulk water supply project, which is due for completion in 2021.

“Apo Agua deserves to be assisted and helped in terms of moral support, understanding, especially on some challenges on the road right-of way and traffic,” Councilor Danilo C. Dayanghirang said in an interview during a site visit at the Tamugan River Monday.

AAII General Manager Cirilo C. Almario III said the contractor needs multi-agency assistance particularly for the pipe-laying work to enable raw water transmission, which has started.

The installation of a 60-kilometer treated water pipeline is scheduled to start Oct. 21.

“We have 13 teams, generally 13 sites sabay sabay na mahuhukay (that will be dug simultaneously) for us to meet the 2021 target completion of the project,” Mr. Almario said.

Among the agencies that AAII has been coordinating with are the Department of Public Works and Highways, City Engineers Office, Public Safety Command Center, and the City Transport and Traffic Management Office.

“Other than the security also (on) traffic management,” Mr. Almario said, the contractor is also working with barangay officials to ensure minimal inconvenience to commuters.

AAII is a joint venture between Aboitiz Equity Ventures (AEV) and J. V. Angeles Construction Corporation (JVACC).

Mr. Dayanghirang said the city government would like to see construction work hastened to immediately address demand in areas currently with inadequate water supply.

“If they can shorten (construction), the better… because people cannot afford to be kept waiting,” the councilor said.

Mr. Almario said while the contractor has the capacity to undertake construction work 24/7, there are other considerations such as obstructing main roads in the daytime and generating noise in the evening in residential areas.

Once operational, Apo Agua will deliver 300 million liters per day to the Davao City Water District as provided under its bulk water supply agreement. — Maya M. Padillo

Transportation dep’t open to privatizing fire-damaged LRT-2

THE Department of Transportation (DoTr) said Wednesday that it is open to proposals to privatize the Light Rail Transit Line 2 (LRT-2) which had to be partially shut down after a fire damaged the rail line’s power system last week.

“Those options are open. Whether it will materialize, only the future can tell,” Secretary Arthur P. Tugade told reporters on the sidelines of the launch of the new Philippines AirAsia headquarters at the Ninoy Aquino International Airport (NAIA) Terminal 3 in Pasay City, when asked for comment on Senator Sherwin T. Gatchalian’s proposal.

The Light Rail Transit Authority (LRTA) has suspended operations in two stations of LRT-2 until mid-2020 due to fire damage sustained Thursday. It said it will take nine months to repair the damage that forced the closure of the last two stops heading into the Marikina Valley — Katipunan and Santolan stations.

In a statement Tuesday, Mr. Gatchalian said: “The LRT Line 2 is the only remaining segment among the three existing LRT and MRT lines that has yet to be privatized. The LRTA needs to seriously look into the privatization of the operation and maintenance of the LRT-2 in order to avoid disruptions in operations.”

The Senator added: “Bukod sa paglalaan ng ng libreng sakay para sa mga apektadong pasahero ay kailangang paghandaan din ng LRTA ang long-term viability ng linya. Sa ngayon ay pagsasapribado sa operasyon ng LRT-2 ang pinakamainam na solusyon (Beyond offering free rides to those affected by the shutdown, the LRTA has prepare for the line’s long-term viability. Privatization is the most appropriate solution).”

The LRTA has estimated that at least P430 million is needed to fix the damaged system, which will cover hiring a contractor and acquiring replacement parts.

The President’s Spokesman, Salvador S. Panelo, said at a Palace briefing Tuesday that “there should be improvement” in the LRTA’s management of the LRT2.

“You’re not maintaining it properly,” he said in the course of denying a state of crisis in Metro Manila’s transportation system.

According to the latest Number Quality-of-life-index, published in Deutsche Bank’s annual “Mapping the world’s prices” report, Manila ranked 54th out of 56 major cities in quality of life. The ranking is based on traffic congestion and commute times, purchasing power, regional crime and safety, overall quality of health care, general cost of consumer goods, and housing affordability, among others. — Arjay L. Balinbin

Dar to announce ruling on rice safeguard duty imposition this week

AGRICULTURE Secretary William D. Dar is expected to announce a decision on the possible imposition of safeguard duties on imported rice by tomorrow, Friday.

“We are discussing it,” he told reporters on the sidelines of the Senate hearing for the Department of Agriculture’s (DA) 2020 budget on Wednesday.

Under Section 7 of Republic Act No. 8800 or the Safeguard Measures Act, government agencies are authorized to make a preliminary determination that imports are harming domestic industry within 30 days from receipt of a petition or a motu proprio initiation of the preliminary safeguard investigation.

The Philippines informed the World Trade Organization (WTO) for such investigation on Sept. 12, with a surge in rice imports blamed for a plunge in the farmgate price for domestic palay, or unmilled rice, following the implementation of the Rice Tariffication Law.

The law liberalized rice imports in exchange for a tariff of 35% on Southeast Asian grain.

According to the WTO, a safeguard investigation will take in evidence from importers, exporters, and other parties.

A WTO member can only impose a safeguard action, like restricting imports temporarily, only if imports are proved to be the cause of the injury.

In September, Mr. Dar noted that rice imports from March to August hit 2.4 million metric tons (MMT), well above the estimated 1.5-MMT to 2-MMT import requirement to meet domestic demand. The country is 93% self-sufficient in rice, which means only 7% is needed to be filled in by imports.

According to DA’s price monitoring for Oct. 9, imported commercial rice is retailing for P34 to P55 per kilo. Domestically-sourced commercial rice sells for P35.26-P52.74. — Vincent Mariel P. Galang

Guidelines for foreign workers in the Philippines

The Department of Tourism (DoT) reported a 7.59% increase in tourist arrivals to the Philippines in the first quarter. This increase translates to around 2,204,564 foreign visitors from January to March 2019.

However, not all foreign visitors travel around the country strictly for leisure. A segment of the tourist market also visits the country for business or employment.

For instance, non-visa required nationals (such as Americans, Australians, Japanese, etc.) enjoy a 30-day visa waiver. Apart from tourism, they are allowed entry into the country for business-related activity or for the eventual assumption of duties related to work activities.

With the influx of foreign workers, the government is seeking to tighten its rules on issuance of work permits. Setting stringent regulations in place, the Department of Labor and Employment (DoLE), the Bureau of Internal Revenue (BIR), the Department of Justice (DoJ), and the Bureau of Immigration (BI) circularized the Joint Guidelines on the issuance of employment permits to foreign nationals on May 1.

TIN REQUIREMENT FOR WORK PERMIT AND WORKING VISA
Previously, only those applying with the BI for a visa to work for over six months, or those applying for an Alien Employment Permit (AEP) with DoLE were obliged to secure a Taxpayer Identification Number (TIN). Subsequently, the TIN requirement for AEP was removed when Provisional Work Permit (PWP) applications, processed while the work visas are still pending, were likewise required to be supported with a TIN. A PWP allows foreign nationals to commence working in local establishments, usually within the validity period of three months or until the work visa has been approved.

These days, with the issuance of the Joint Guidelines, all applications for work permits and working visas must be supported by a TIN. Regardless of the duration of the assignment, foreign workers are required to apply for a TIN.

Thus for the guidance of applicants, the BIR issued Memorandum Order No. 28-2019 that outlined the procedures and registration requirements to secure a TIN for foreign workers. It provides clarity on what, how, and where applications for issuance of a TIN may be filed.

Issuance of a TIN is without prejudice to the option of availing applicable tax treaty benefits based on existing treaties.

IMPLEMENTING RULES ON SWP AND PWP APPLICATIONS
Under BI Operations Order No. JHM-2019-008, foreign nationals, who will be working in the Philippines for six months or less, must apply for a Special Work Permit (SWP) with the BI. An SWP is issued only to those who intend to work, engage in specific activities, or render services outside of an employment arrangement, such as: 1. Professional athletes, coaches, trainers, and assistants; 2. International performers with exceptional abilities; 3. Artists, performers, and their staff, who perform before an audience for a fee, subject to compliance with the requirements of the concerned agency, office or body; 4. Service suppliers coming primarily to perform temporary services and who do not receive a salary or other remuneration from a Philippine source other than expenses incidental to their temporary stay; 5. Treasure hunters authorized to search for hidden treasure with a permit from the concerned government agencies and instrumentalities; 6. Movie and television crews authorized to film in the country by the relevant regulatory office, body or agency; 7. Foreign journalists practicing their profession or covering a specific event in the country; 8. Trainee/s assignees assigned in government instrumentalities, government-owned and controlled corporations (GOCC), and private entities; 9. Lecturers, researchers, trainers, and others pursuing academic work, assigned in schools, universities, educational and research institutions, government agencies, and other entities (with or without compensation); 10. Religious missionaries and preachers; 11. Commercial models and talents; 12. Culinary specialists/Chefs; 13. Professionals; and 14. Consultants or specialists.

While the current list appears comprehensive and inclusive of all work activities that may qualify for an SWP, it must be read as merely suggestive in nature. As long as the application can show that the intended pursuit is within the ambit of qualified activities and merits the approval of the Bureau, an SWP can be granted to foreign nationals.

The new Operations Order also raised the need for a PWP issued by the DoLE for foreign workers who have pending applications for a working visa with the BI. The PWP serves as an authorization for the foreign national to work pending the approval of the working visa.

Although to some extent, the guidelines merely reiterate previous policies, the harmonizing of inter-agency regulations, hopefully, addresses the overlap of responsibilities, ensures efficient processing of applications, and reinforces compliance with work permits and visas. More significantly, a clear policy direction should allay the growing apprehension among Filipinos of losing employment opportunities to their foreign counterparts, weed out illegal foreign workers, and regulate tax evasion among undocumented workers.

With the increase in visitor receipts due to growth in tourist arrivals and the boom enjoyed by the real estate industry thanks to demand for leased spaces, the current influx of foreign workers should be seen as a welcome development, rather than a threat, to our economy.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute for specific advice.

 

Larissa C. Dalistan-Levosada is a Senior Manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of PwC global network.

+63 (2) 8845 2728

larissa.c.dalistan@pwc.com

What needs to happen first in order for water body rehabilitation efforts to succeed

By Robert Y. So

IN OCTOBER 2018, the Pasig River made headlines for winning the inaugural Asia River Prize award from the International River Foundation. The organization recognized the efforts of the Pasig River Rehabilitation Commission (PRRC) to clean and restore the river to make it biologically habitable again. These efforts include removing structures that directly pollute the river, diverting waste being discharged into the river, and relocating thousands of informal settlers around the river into decent homes.

Less than a year later, the PRRC would make headlines again as President Rodrigo Duterte fired its executive director, Jose Antonio Goitia. While no specific reason was given for the termination, the administration stated that it was part of “the President’s continuing mandate to eradicate graft and corruption.”

Notably, the sacking came only a few months after the Commission on Audit reported that six of PRRC’s rehabilitation projects were moving very slowly despite already using a majority of their respective budgets. While PRRC subsequently denied the claims, it still admitted that it was facing challenges with the six projects, namely the presence of informal settlers and opposition from local government units.

The situation underscores an unfortunate reality in local water rehabilitation projects — it takes more than a couple of cleanup efforts to really become impactful. In order for the Pasig River, Manila Bay, and all other bodies of water around the country to be fully rehabilitated, there needs to be some fundamental changes done in the areas surrounding them to ensure that any cleanup effort won’t go to waste.

LOOKING OUTSIDE
To understand what it takes to make a water rehabilitation project effective, it’s best to look at successful examples around the world. Fortunately, one of the most noteworthy water rehabilitation projects in recent history can be found in neighboring Singapore.

As Singapore rose as a global center for trade and commerce in the 19th and 20th centuries, it’s main body of water, the Singapore River, became more and more polluted. With both residential and commercial locations dumping their waste into the river, it became a large, foul-smelling obstacle and a negation of Singapore’s development.

In fact, nothing concrete was done until 1977. By then, former Prime Minister Lee Kuan Yew had ordered various Singaporean government agencies to undertake the cleaning of the Singapore River as well as the adjacent Kallang Basin. After years of extensive planning, the government embarked on a 10-year plan to restore the river to its former glory.

A study by The Royal Swedish Academy of Sciences noted three activities that had to be done to fast track the rehabilitation project, on top of actually removing the waste that was already in the bodies of water. First was the relocation of several commercial industries around the river that dumped hazardous waste into the river, which included farms, vendors, and manufacturing plants. Second was to move the thousands of informal settlers living along the edges of the bodies of water, who discharged waste into the rivers for their daily sanitary needs, into public housing.

Third, and perhaps the most important, was to recognize pollutants that were far away from the bodies of water, emanating from areas around the country that didn’t have proper sewage systems. As the sewage in these areas wasn’t treated correctly, their waste was eventually discharged into the rivers and contributed to increasing water pollution. And so various government agencies were mobilized, tasked to remove any structures that discharged untreated waste into the rivers as well as to connect these areas to a formal sewerage system.

LOCAL ROADBLOCKS
While local water rehabilitation efforts have been able to replicate the first two activities of the Singapore River rehabilitation project, the same can’t be said about the third activity. Manila Water revealed at the start of the year that its sewerage system covered only 23% of its clients, while Maynilad’s equivalent figure was 20% by the end of 2018.

Both concessionaires have been fined by the Supreme Court for these low figures as a violation of the Clean Water Act. However, Manila Water and Maynilad both attributed these low figures to citizens choosing not to connect to their sewerage systems for fear of incurring higher costs in their utility bills due to sewerage charges. The two have urged the Department of the Interior and Local Government (DILG) to task local government units in mobilizing these sewerage efforts in their own areas.

Moreover, the two concessionaires are only required to treat the sewage of residential properties. Thus, other types of properties such as commercial, office, and industrial developments need to treat their own sewage and waste water, and they do so by tapping specialty contractors that provide the necessary sewerage technology. While the discharge from these private developments is regulated, these specialty contractors are not. The authenticity of their technology is left to the property developers to validate, resulting in a large variance between the quality of sewage and waste water treatment per development.

All these figures mean that an overwhelming majority of waste being dumped into the bodies of water around Metro Manila is not treated properly. Even if large-scale cleanups of the Pasig River and Manila Bay happen, they will not be able to do anything about the untreated waste that will be discharged into these bodies of water by unsewered locations, further increasing water pollution and hindering rehabilitation efforts.

GREAT AGAIN
What needs to happen, then, is to fast track the installation of sewerage systems across the region in order to ensure that any waste discharged into Manila Bay and the Pasig River has been treated properly. Proper sewerage will not only reduce the pollution in the region’s bodies of water, it will also improve the quality of life for many residents, as they will be less prone to waterborne diseases.

Taking a page from the Singapore River rehabilitation, this effort must involve the contributions of various government agencies and private companies, as improving the sewerage system of an entire region requires massive investments in technology and infrastructure. The 10-year Singapore River rehabilitation project reportedly cost the Singaporean government around S$200 million. Factoring inflation, that would cost around S$342 million today, or almost P13 billion.

Fortunately, the Metropolitan Waterworks and Sewerage System has already set targets for improving the sewerage coverage in Metro Manila. While it found the Department of Environment and Natural Resources’ target of 100% coverage by 2026 “unrealistic,” the agency is committed to connect the entire region to a sewerage system by 2037. It further revealed that it aims to reach 40% coverage by 2022, which it considers the “tipping point.”

It is only through installing proper sewerage systems across the region and through private developers investing in authentic and appropriate sewage treatment technology that we will be able to start fully restoring the Pasig River, Manila Bay, and the rest of the region’s bodies of water to their former glory. While it might take longer than the 10 years it took Singapore to clean up its major rivers, the care, consideration, and mindset to do things right will result in a most significant effort by government, the private sector, and communities to make the region’s bay and waterways great again — the same that first brought life to a city and defined Manila as our nation’s capital.

Waste-to-energy merits consideration

More than a year ago I wrote about a commentary in The World Post regarding new Dutch technology that was looking into incineration as a “clean” alternative to garbage disposal. And while we have existing laws on promoting solid waste management and banning incineration, I believe this matter deserves a second-look by our policy makers.

To begin with, some quarters claim that not all types of waste incineration are banned locally, citing some precedents contained in Supreme Court rulings. On the other hand, pro-environment groups continue to press the government to strictly enforce existing laws on solid waste management, while upholding the ban on burning garbage.

I reiterate now my call a year ago for policy makers as well as the public to rethink the matter, and to make an “informed” choice regarding incineration, particularly towards technologies that convert waste into energy. Technologies have changed, so have circumstances, and so did the urgency for new and more effective modes to manage solid waste and ocean plastic pollution.

Legislators should start reviewing the Clean Air Act, the Clean Water Act, as well as the Solid Waste Management Act — two of three of which are now about 20 years old. There should be a comprehensive audit of how these three laws and their implementing rules have actually served us in the last two decades, and whether their provisions have resulted in more positives than negatives. In particular, I call for a review on the ban on incineration.

Incineration technologies were different 20 years ago, and waste-to-energy conversion projects were not as sophisticated as they are now. Conversion processes have changed that even biomass and other waste conversion modes have actually become “cleaner” by eliminating “tar” and by making sure that emissions meet standards.

Already, Bill Gates’s foundation is looking into developing new toilets particularly for the developing world, via a system that will not only save water but will also recycle it through some process of distillation. But this entails solid waste being “incinerated” to become dust, also as a mode of separating liquids from solids. And he is looking into modular facilities that can be deployed easily.

I believe we should start doing the same, making the effort to better understand the new technologies available and how they can be applied to our situation. And while there may be gaps in law or in policy that can allow certain processes or technologies to be used, nothing can beat a clear and unequivocal mandate given through legislative and executive fiat.

Simply put, the country and its people need to make an informed choice for the future. We have dabbled with solid waste management — and banning incineration — for about 20 years now. And what have we got to show for it now? Some quarter claims our solid waste management law is among the best in the world. But have we actually solved our garbage problem? Have we actually cleaned our air and water sources? Or do we remain to be among the top sources of ocean plastic or plastic pollution in our world seas?

I am not lobbying for any particular technology. However, I do believe that looking for ways to benefit from waste — and using them productively rather than just burying them — will better serve the interests of our people. If incineration can prove itself “clean” enough as a process, then I believe we should consider it and promote it rather than strictly confining ourselves to what law prohibits at present. Laws can be changed to benefit people.

Incineration, or course, is not the only recourse. Technologies that make use of waste plastic in road construction as well as converting waste plastic into building material should likewise be encouraged and promoted. The effort should not be driven purely by the private sector. The government, whether national or local, should have some stake in the game.

Municipal waste-to-energy facilities will ease the pressure on local governments as well as the MMDA to build and operate landfills. Moreover, costs in waste management can be offset by income from power generation. At the very least, through a combination of solar farms and waste-to-energy facilities, perhaps cities and towns can be partly energy self-sufficient.

The MILENA-OLGA process, for instance, entails heating garbage to over 705° Celsius. And while converting solid waste to gas generates carbon dioxide, this is offset by reducing the use of fossil fuel and eliminates methane produced by landfills. The process also claims to emit zero wastewater and produce no particulates or other pollutants.

And only a small portion of the original solid waste — garbage — is left over as inert white ash, which can be used to make cement. The system is said to be capable of powering turbines similar to those used for generating electricity with natural gas.

Puerto Princesa City in Palawan has reportedly partnered with a private company to put up a waste-to-energy plant that will make use of garbage from the Sta. Lourdes Sanitary Landfill. About 110 metric tons of garbage per day will be used as fuel or feed stock to generate 5.5 megawatts of electricity.

Other than Puerto Princesa, I believe even Davao City has initiated a waste-to-energy project, to be supported by Japanese funding and technology. Waste-to-energy facilities can benefit particular islands with limited space for landfills, and small cities and towns. Even places like Baguio City and Boracay can benefit from such technology.

There will always be arguments for and against waste incineration and waste-to-energy conversion. But we need to reopen the floor to debates and informed discussions, to allow all parties concerned to discuss the issues, and for policymakers to consider all the pros and cons. Garbage-related laws dating back 20 years or so need to be reviewed and updated to deal with the pressing needs of today.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

Coal use and GDP growth correlation

Among the tricks used by the anti-fossil fuel, anti-coal groups is to never recognize growth and economic modernization of countries that have relied on cheap, stable and reliable energy source. So for this paper, I scoured through actual numbers of coal consumption in million tons oil equivalent (mtoe) from 1965-2018, and GDP growth 1965-2018. Data source for the former is the BP Statistical Review of World Energy, June 2019, and for the later, the WB, World Development Indicators database, August 2019.

First I computed the annual growth rate of coal mtoe from 1966 to 2018, then got the averages per 10 years. (See Table 1.)

The WB’s GDP growth rates are already in percentages so I just computed the averages per 10 years. (See Table 2.)

What do the numbers show?

One, there is clear correlation between growth in coal consumption and growth in GDP, for all countries above in most years indicated. See the US, Australia, and Japan — deceleration in coal use from 2006 to 2018 translated to low growth of below 3% for the US and Australia, and a maximum of 1.1% growth for Japan. For Germany, their energy transition away from coal resulted in ever-rising energy prices and slow growth, below 2% from 1996-2018.

Two, for developing or emerging economies: Turkey’s average coal use of about 5% a year also translated to around 5% GDP growth. For China, about 6% average growth in coal use translated to around 9% average GDP growth from the 1960s to 2005. Decline in coal use by China also showed decline in GDP growth over the past three years.

Three, among the world’s biggest economies in terms of GDP size are also the world’s biggest consumers of coal energy — the US, China, India, and Japan.

This is not to say that coal use is the single most important factor for fast or slow growth of countries, no. There are a dozen other factors of course, but having cheap, stable and reliable electricity is one of the most important prerequisites to have high and sustained growth. No big manufacturing, banking, tourism projects will stay in a country which has frequent blackouts, or there is zero blackout but electricity prices are high due to frequent use of diesel gensets.

The climate alarmism movement is dishonest and deceptive. If there is less rain, less floods, less snow, they say it is proof of “man-made” warming/climate change/CC. If there are more rains, more floods, more snow, they say it is also proof of “man-made” warming/CC. And so we send more money (taxes, subsidies) to the UN, government and their new crony firms. Whatever weather and climate.

Climate change is true but it is cyclical and natural, largely nature-made and not man-made. To say that we need more government, more UN, and mandatory renewable energy to fight less rain and more rain, less floods and more floods, is a cheap but painful insult to our brains and pockets.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

What instrument do you play?

By Tony Samson

THE ORCHESTRA has been employed often as paradigm for the effectiveness of organizations, including of course a performing group of musicians.

The similarities that justify using the metaphor of the orchestra for the effectiveness of an organization involve the need for coordination and performance levels for the harmonious rendition of the plan (or musical score). Corporate planning sessions, also called VVM (for Vision, Values, and Mission) point to effectively combining the different instruments and sounds (including whining, moaning, and sobbing) that emanate from different parts of the organization. In the conglomerate structure, there is the addition of distance, disparity of goals, and unusual instruments (like the nose flute) to contend with.

Here are some orchestral issues that organizations contend with:

The extremely talented cellist doesn’t follow instructions and seems to play solo all the time. She doesn’t follow the conductor’s instruction for a pianissimo rendition to let the first violin take the lead. The egregious talent is usually accompanied by a bad attitude and a prima donna sense of entitlement and short fuse. Should such a talent be wasted in an orchestra, or is she best when playing solo (the theme from Sophie’s Choice) with the rest taking an accompanying role? Isn’t such a difficult but highly accomplished talent worth keeping… from the competition?

What about musicians who play below par? They don’t meet their targets because they don’t rehearse or simply lack the talent. Can an orchestra afford to keep them? As Maria Callas, the great diva and exemplar of the prima donna tantrum-thrower, once noted about the quality of performance — the first drop in quality, like gliding up to the high notes is noticed first by the artist herself. The second level of deterioration may be picked up by the conductor. The lowest level is noted by the audience itself. A consistent below-par performance for even a sought-after soprano means it’s time to get off the stage and just teach. Master Class, the play (1995) on Maria Callas as mentor explores this theme.

Discordant notes that spoil a performance include not meeting timelines, skipping rehearsals, failing to master the material, and, of course, the mismatch of talent and the assigned role in the ensemble. (Maybe, she should try the harp.)

What about the conductor himself? Shouldn’t the leader (or facilitator) be subject to criticism as well? If an orchestra is not performing well (or missing its targets too long) some blame must fall on the conductor. Isn’t this why conductors are celebrated for having great orchestras under them? After all, they have a hand in picking the talents to hire as well as the music that suits them.

The orchestra needs to work together to play one piece. The corporate expression is clear in establishing the way to a successful performance — are we on the same page?

Orchestras, or bands, need to decide which niches to cater to. Rock bands can be as successful as symphony orchestras, and can make more money, even with a smaller audience, usually on their feet and screaming.

The orchestra paradigm for business organizations has much to offer. Nurturing and building a team to achieve goals, using the disparate talents and the strong egos of individuals, is an intriguing challenge.

Maybe the orchestra idea only applies to large companies with many moving roles. The small entrepreneurs like the caterer, couturier, and event planner hew closer to the solo performer who can improvise in a karaoke setting of uneven quality.

In both types of organizations, large or small, the critical question to ask of a new member is simple — what value do you bring to the enterprise? What instrument do you play, and play at an acceptable level of virtuosity? (We already have a good cymbalist.)

For orchestras, as well as corporations, the final test of a performance, whether harmonious or discordant (some pieces call for atonal renditions), is marketability. It is still the paying audience that determines the success of the organization.

Musicians, like their corporate counterparts, can have a hard time switching jobs even as a freelancer in a pick-up band. Not every orchestra has an opening for a cymbalist… even when he brings his own instrument.

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

Only Donald Trump can save the global economy

By Ferdinando Giugliano

AS THE global economy shows signs of stuttering, the race is on to find the right policy response. In Europe, many central bankers are asking politicians in countries such as Germany to unleash a fiscal stimulus to complement their recent monetary push. In the US, President Donald Trump is lambasting the Federal Reserve for failing to cut rates fast enough, letting the dollar appreciate excessively.

But any such antidote would only be a second best response to what is really driving the global slowdown. The world economy is suffering because of trade tensions and the pernicious effect that uncertainty is having on the spending decisions of consumers and companies. Until this is resolved, any other policy moves will only have a mitigating effect on growth.

The scale of the challenge facing the world economy is clear from the latest batch of forecasts from the World Trade Organization (WTO) published last week. The WTO now predicts that global merchandise trade volumes will rise by only 1.2% in 2019, which is less than half than the 2.6% growth forecast in April. Trade growth is expected to recover next year to 2.7%, but much depend on how trade tensions pan out. In the past two years, the same measure has grown at an average yearly rate of 3.8%.

There is strong evidence that robust trade growth leads to fast economic growth. In a classic study, economists Jeffrey Frankel and David Romer have found that a country’s distance from other countries is a powerful predictor of economic growth, after accounting for other characteristics. The authors note that such geographic factors are not a consequence of income or government policy, but have an important role in determining how much a country trades. Hence they conclude that trade must have a significant effect on growth, specifically by spurring the accumulation of physical and human capital and by allowing companies to enjoy economies of scale.

Other studies have also shown that episodes of trade liberalization have pushed companies to become more productive. Another set of economists, Nicholas Bloom, Mirko Draca and John Van Reenen, wrote in a paper that the increased influx of Chinese imports into Europe following Beijing’s entry into the WTO has sparked greater innovation in Europe, underlining to the positive effect of competition from abroad.

TRADING BLOWS
It is no surprise then that the deleterious impact of the trade conflict between the US, China and other countries is becoming progressively clearer. Last week, a number of indicators in the manufacturing sector — which is most exposed to external demand — showed pronounced weakness across the global economy. In the US, the Institute for Supply Management’s factory index fell to 47.8 in September, the lowest since June 2009, while the measure of export orders fell to 41, the lowest since March 2009. The HIS Markit’s index for manufacturing in the euro area touched 45.7 last month, the lowest level since October 2012, at the height of the bloc’s sovereign debt crisis. The drop was particularly sharp in Germany, which saw the measure fall to 41.7, the lowest reading since 2009.

Moreover, the impact risks being long lasting in the absence of a truce. In her maiden speech as managing director of the International Monetary Fund, Kristalina Georgieva said that the cumulative effects of trade conflicts — including the impact on confidence and market reactions — could mean a loss of around $700 billion, or about 0.8% of global gross domestic product, by 2020. “This is approximately the size of Switzerland’s entire economy,” Georgieva said.

There is little doubt that other policy areas can contribute to supporting the world economy. In particular, there is ample room for some European countries such as Germany to respond to this external shock by boosting domestic demand. This would also help to re-orient its economy away from exports, which are proving a double-edged sword after years of boom. In the US, the Federal Reserve will want to look at what is going on beyond manufacturing before deciding whether to add to rate cuts in the second half of this year.

But even if policy makers pulled all the other right levers, uncertainty will endure so long as the US administration does not pull back from protectionism. The key questions for the world economy remain whether Trump will finally decide to change course and, if he doesn’t, whether any new US president would. You don’t realize just how good the gains from globalization are until you’ve lost them.

 

BLOOMBERG OPINION

1...10,37710,37810,379...14,238Page 10,378 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube