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Green group calls for no-car hours on weekend mornings in parts of Davao City

ENVIRONMENTAL GROUP Interface Development Interventions (IDIS) is now advocating for the approval of the proposed Bike Hours and Days ordinance to promote cycling as a sustainable means of transport in Davao City. “We are pushing for an hour or a day to give an opportunity for the biking community, amateur or professional, to use the city’s road,” Ruel Kenneth A. Felices, IDIS partnership building officer, said in a media forum earlier this week. The draft ordinance is now at the office of City Councilor Mabel Sunga-Acosta, who chairs the peace and public safety committee. Mr. Felices said under the draft, they are proposing to have no-car zones in parts of the city from 6 to 8 a.m. during Saturdays and Sundays. He added, however, that they are ready to make adjustments in the proposal in consideration of the city government’s bus transport system planned for initial implementation soon. Mr. Felices also said that the ultimate goal is to eventually have bicycle lanes in the city. — Maya M. Padillo

Duterte honors soldiers wounded in clashes with Abu Sayyaf

PRESIDENT RODRIGO R. Duterte on Tuesday honored 11 wounded-in-action soldiers in Sulu, Malacañang said. “President Rodrigo Roa Duterte paid tribute to injured soldiers fighting the Abu Sayyaf Group by conferring them the Order of Lapu-Lapu with rank of Kampilan during his camp visit to Camp General Teodulfo Bautista in Sulu,” the Palace said in a statement on Wednesday. Mr. Duterte conferred the Order of Lapu-Lapu on “11 soldiers wounded during the May 31 encounter with the Abu Sayyaf Group at Barangay Pansul, Patikul, Sulu.” They are: Cpl. Arsenio Opaco Jr., Cpl. Sonny Jumoc, Pfc. Edwin Yurong, Pfc. Edeson Alom, Pfc. Abduhasad Baladji, Pcf. Joevertt Ramirez, Pvt. Dominic Osorio, Pvt. Jeric Peñaredondo, Pvt. Raymund Balambao, Pvt. Ramil Diaz Jr., and Pvt. Albert Daligdig. “The Order of Lapu-Lapu is given to persons in government or private sector who have rendered extraordinary service or have made exceptional contributions to the success of the President’s campaign or advocacy,” the Palace said. “The Kampilan medal is conferred on persons who were seriously wounded or suffered great loss of property as a direct result of their participation in such action.” The President also awarded the Gold Cross Medal to Lt. Col. Abdulmoel Alamaia, Lt. Col. Ronaldo Amteo, 1st Lt. Romel Pacer, 1st Lt. Geronimo Vergara, Cpl. Ariel Sanchez, Cpl. Engelbert Tañan, and Cpl. Reylan Busmeon during his meeting with the soldiers stationed at Camp Teodulfo Bautista. In his speech, Mr. Duterte said: “Sa panahon na kailangan ninyo ang inyong (In times when you need your) commander-in-chief to be with you, beside you, and to die with you, nandito ako sa mga panahon na ‘yan (I am here in those times).” — Arjay L. Balinbin

Almost 70,000 jobs on offer during Independence Day fair

THE DEPARTMENT of Labor and Employment (DoLE) will be hosting its annual Independence Day job fair on June 12 in various sites nationwide, offering 68,893 vacancies. In a statement on Wednesday, DoLE said there will be 22 Trabaho, Negosyo, Kabuhayan (TNK) job and business fairs in 16 regions. A total of 560 employers, consisting of 461 local and 99 overseas, will be participating. DoLE listed the following jobs as having the most number of vacancies: machine operators, production worker/factory workers, customer service representatives, call center agents, sewers, sales clerks, cashiers, delivery crew, service crew, and marketing officers. For overseas openings, DoLE said, “(T)he top vacancies are for cleaners, professional nurses (general), waiters/waitresses, service crew, company drivers, registered midwife, staff nurse, English teachers (Japan), janitress, barista, technicians (general), and nursing aides.” — Gillian M. Cortez

Nation at a Glance — (06/06/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (06/06/19)

April factory output posts biggest drop in a decade

INDUSTRIAL PRODUCTION dropped for the fifth straight month in April, marking the steepest fall in almost a decade, the Philippine Statistics Authority (PSA) reported on Tuesday.

Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries showed factory output, as measured by the Volume of Production Index (VoPI), contracting by 14% year-on-year in April versus the revised 9.5% decline in March and the 21% growth in April 2018.

The April reading marked the fifth straight month of decline and was the sector’s worst performance in almost a decade or since the 14.6% contraction in July 2009.

The five-month losing streak is also the longest since the 12-month slump between November 2008 and October 2009.

Year to date, factory output decline averaged 9.1% compared to the 14.5% growth average in 2018’s comparable four months.

The PSA reported 11 out of the 20 subsectors contracted in April, with seven recording two-digit declines: tobacco products (-29.2%), leather products (-25.5%), petroleum products (-24.3%), food manufacturing (-20.6%), furniture and fixtures (-19.6%), basic metals (-16.2%) and transport equipment (-11.8%).

In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI)dropped to 50.9 in April from 51.5 in March, marking the slowest improvement in nine months. A reading above 50 indicates improvement in business conditions from the preceding month.

While the VoPI and the PMI both seek to measure performance of the manufacturing sector, they differ mostly in terms of methodology used. The VoPI looks at the percentage change in production volumes in a particular period relative to a base period while the PMI indicates whether the proportion of respondents that reported an increase outweighs those that reported a decrease as regards indicators like output, new orders, inventory, employment, input and selling prices, as well as sentiment over the following 12 months.

Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.3%. Eleven of the 20 sectors registered capacity utilization rates of at least 80%.

Manufacturing has long been recognized as an essential sector for inclusive growth. Known for its multiplier and spillover effects, the sector is one of the biggest contributors to the Philippine gross domestic product (GDP). In the first quarter of 2019, manufacturing contributed 1.1 percentage points to the 5.6% GDP growth during the period.

The National Economic and Development Authority (NEDA) said in a statement that the government expects manufacturing to bounce back in the months ahead.

“[M]anufacturing output is expected to recover supported by improved domestic demand in the coming months. Easing inflationary pressures, accelerated government spending on infrastructure, and a more upbeat consumer outlook also provide additional support given expectations of additional income and availability of more jobs,” Socioeconomic Planning Secretary Ernesto M. Pernia, NEDA’s director-general, said in a statement.

Mr. Pernia also noted that in order to accelerate the growth of manufacturing, both “whole-of-government” and “whole-of-society” approaches are needed. The former refers to joint activities performed by the different government agencies in providing a common solution to a particular issue while the latter extends it to include stakeholders such as those in the private sector.

“The needs of the food processing sector should be addressed as it accounts for the largest share among all manufacturing sub-sectors. This points to the critical importance of agriculture which, besides being the source of food, is also the feeder sector to the food manufacturing sub-sector,” Mr. Pernia said.

Food manufacturing, which is the largest subsector in terms of contribution to factory output, has been registering declines for nine straight months or since August 2018. Of those nine months, six showed double-digit declines.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc. (UnionBank), attributed the slowdown to the still-elevated levels of inflation and interest rates coming from the previous year.

“This consequently increases financing costs that directly impact firms’ production and expansion activities, and not to mention, the initial impact on domestic demand due to higher price levels,” Mr. Asuncion said in an e-mail.

“Of course, it should also be mentioned that external perception about global economic growth and its future prospects may have also been a factor in this marked slowdown in factory output, making companies rethink initial plans of additional production and other expansion activities.”

Last year saw inflation accelerating for nine straight months, peaking at a nine-year-high 6.7% in September and October before decelerating to six percent in November and 5.1% in December. This brought the full-year 2018 average to a decade-high 5.2% against the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target range for 2018.

In its bid to quell inflation, the BSP hiked interest rates by a cumulative 175 basis points (bp) in five consecutive meetings in 2018. It was only in its May 9 meeting this year that the central bank took the first step in monetary policy normalization by partially dialing back benchmark rates by 25 bp. A week later, it announced a phased 200 bp cut in the reserve requirement ratios imposed on banks — the first of which took effect last Friday.

“[D]eclining growth of prices will help drive consumption and encourage consumers to resume buying and financial institutions to keep lending,” UnionBank’s Mr. Asuncion.

“The second half of 2019 may see an improvement of factory output.” — MAM

Tobacco tax measure makes it out of Congress

By Charmaine A. Tadalan
Reporter

THE CONTENTIOUS proposal to further increase excise tax rates for tobacco products barely made it out of the 17th Congress after the Senate scrambled to revise the version it approved Monday night in order to make it acceptable to the House of Representatives.

The House adopted the Senate version, in effect, doing away with a bicameral conference committee that would otherwise have been needed in order to harmonize conflicting provisions, as well as ratification.

Tuesday marked the last session day of the 17th Congress. Any bill that failed to secure both chambers’ final approval by yesterday will have to be filed and go through public hearings and plenary debates anew in the 18th Congress that opens on July 22.

The Senate, voting 21-0, approved anew on Tuesday Senate Bill No. 2233 after amending revenue sharing at the local level in the face of opposition of some House lawmakers representing tobacco-producing provinces.

The approved proposal increases the excise tax on tobacco products to P45 in 2020 and by P5 every year until reaches P60 per pack in 2023, then by five percent annually thereafter.

Senate Majority Leader Juan Miguel F. Zubiri said members of the House, representing tobacco-producing provinces, threatened to vote against the adoption of the bill if the 50-50 revenue share between provinces and municipalities was not amended.

At present, 15% of tobacco excise tax collections are earmarked for provinces producing burley and native tobacco, of which 70% goes to cities and municipalities, while the remaining 30% goes to the provincial government.

Sabi ni Speaker GMA, pinuntahan daw sya ng northern bloc congressmen (Speaker Gloria M. Arroyo said northern bloc congressmen approached her and), they threatened not to approve the ‘sin’ tax measure if this were not addressed,” Mr. Zubiri told reporters earlier on Tuesday.

As a compromise, the Senate reconsidered the bill it approved on final reading on Monday and retained the 70-30 distribution in favor of cities and municipalities.

Mr. Zubiri told reporters before the plenary session that the Senate “will have a reconsideration of the approval of the ‘sin’ tax measure, open the period of amendments… Pasa na namin (We will approve it anew) on second and third reading this afternoon, tapos i-adopt na ng (to be adopted by the) House.”

Hindi na kami papayag pa ng bicam, wala na kaming panahon para sa bicam (We will not go for a bicameral conference committee, we have no more time for bicameral conference committee meetings),” he said, adding that the measure will be transmitted to Malacañan Palace “by next week” for signing into law.

House Deputy Majority Leader Wilter W. Palma II of the first district of Zamboanga Sibugay motioned to adopt the measure in Tuesday’s session. “I move that we adopt Senate Bill 2233 as an amendment to House Bill 8677,” he said, followed by approval by the chamber.

The bill had been certified as urgent by President Rodrigo R. Duterte, which allowed the Senate to disregard the legislative rule that second- and third-reading approvals have to take place at least three days apart, hence, allowing same-day approvals.

The additional “sin” tax collections on tobacco and alcohol products are supposed to help finance implementation of Republic Act No. 11223, or the Universal Health Care Act (UHC), which is expected to have a P63-billion funding gap in its first year of implementation.

DoF’s proposals for both “sin” taxes were estimated to yield P30 billion and P32 billion from tobacco and alcohol products, respectively. The Senate’s approved version, however, is estimated to generate just P15 billion in its first year of implementation.

The same measure also levies a P10 excise tax per pack of heated tobacco products beginning 2020 and annual increase of five percent thereafter.

It will also impose a P10 excise tax on 0-10 milliliters vapor products, P20 on 10.01-20 ml, P30 on 20.01 ml-30 ml; P40 on 30.01 ml-40 ml, P50 on 40.01 ml-50 ml; and P50 with P10 increase for every additional 10 ml on products with more than 50 ml.

Heated tobacco and vapor products are currently not taxed.

Cigarettes are currently levied P35 per pack, after RA 10963 increased it to P32.50 from P30 in January 2018 and to P35 beginning July 2018. It is scheduled to go up to P37.50 in January 2020.

The Phillip Morris Fortune Tobacco Corp. Inc. (PMFTC) said that while it supports funding for UHC programs, the tax hike could worsen smuggling.

“This will be the eighth cigarette tax increase since 2012 and the higher rate raises some concerns over unintended consequences,” PMFTC said in a statement on Tuesday.

“We call on the government to exercise vigilance to curb the illicit cigarette trade which may worsen as a result of this excise tax increase, and undermine government efforts to raise funds for the UHC,” the company added.

“We are also counting on the government to provide the appropriate safety nets for farmers, workers and retailers whose livelihood would be impacted by this new round of tax increase.”

Telcos ordered to allow mobile phone unlocking

TELECOMMUNICATION COMPANIES are now required to allow customers to unlock mobile phones starting this month, as the National Telecommunications Commission (NTC) released last week rules and regulations on this matter.

Memorandum Circular No. 01-05-2019, signed by the NTC on May 31 and published in a newspaper on Monday, outlined the process for telecommunications firms to “unlock” mobile devices, or disable the software that prevents a gadget from connecting to another network.

Globe Telecom, Inc. and PLDT, Inc.’s wireless unit Smart Communications, Inc. offer subscription deals that allow customers to buy mobile phones and devices free of charge or through a subsidy, but in return, are tied to a lock-in period with the provider.

The NTC rules that telcos must allow both postpaid and prepaid subscribers to unlock their mobile devices upon request, but separate policies apply for each.

For postpaid subscribers, the NTC said telcos must entertain “customers and former customers in good standing and individual owners of eligible devices after the fulfillment of the applicable postpaid services contract, device financing plan or payment of an applicable early termination fee.”

For prepaid subscribers, the requirement is to have complied with “usage requirements or agreed terms and conditions.”

Telcos such as Globe and Smart must complete the unlocking of eligible mobile devices within two business days from receipt of a request, or have tapped the original equipment manufacturer to do the unlocking.

If it is unable to do either, the telco concerned must provide an explanation to the customer why the device to be unlocked does not qualify for the process, or provide a reasonable explanation if more time is needed to complete unlocking.

The rules will be in effect 15 days after Monday publication, or on June 18.

Sought for comment on the new policy, PLDT-Smart Public Affairs Head Ramon R. Isberto said the company already complies with the new requirement. “We have already been assisting customers who, at the end of their subscription period, have asked for the unlocking of their phones. So tinutulungan na namin, actually [We’re already helping them, actually],” he said in a telephone interview.

Globe was unable to reply as of press time. As of end-March, Globe said it had a total of 83.49 million prepaid and postpaid subscribers, while PLDT had 63.95 million from Smart, TNT and Sun.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Bank system hacking, credit and ATM card fraud face stiffer penalties

THE SENATE has approved on third and final reading a measure imposing stiffer penalties on those who hack bank systems.

With 20 affirmative votes and no negative ones, the chamber on Monday approved on final reading House Bill No. 6710, which amends Republic Act No. 8484 or the “Access Devices Regulation Act of 1998.” The bill was approved in the House of Representatives in February last year. The Senate’s adoption of the House bill eliminates the need for a bicameral conference committee to harmonize conflicting provisions and for ratification.

The measure declares “the commission of a crime using access devices is a form of economic sabotage and a heinous crime and shall be punishable to the maximum level allowed by law,” Section 1 of the bill read in part.

The measure among others will include in its coverage the skimming of automated teller machine (ATM) cards, hacking banking systems and counterfeiting of credit or debit card.

At present, the law imposes just P10,000 or twice the value obtained through the offense and six to 20 years of imprisonment for access device fraud.

If enacted, mere possession of at least 10 counterfeit access devices and/or unauthorized access devices which was used to access at least one account will warrant a fine of at least P500,000 and imprisonment of 12-20 years.

The bill defines a counterfeit access device as a card, plate, code or account number, among others, “that is counterfeit, fictitious, altered or forged, or an identifiable component of an access device or counterfeit access device or any fraudulent copy or reproduction.”

Those found in possession of such devices — even if they were not proven to have accessed any account — face six to 12 years imprisonment and P300,000 fine. Those using fraudulent credit cards face four to 10 years imprisonment and a fine equivalent to twice the value obtained. Those who used even just one counterfeit device or possessed device-making or altering equipment face 10-12 years jail time and P500,000 fine.

Those found guilty of hacking a bank’s system, skimming of at least 50 ATM cards or online banking accounts face life imprisonment and P1-5 million fine.

The bill also directs banks to submit real-time reports on access device fraud incidents to the National Bureau of Investigation and the Anti-Cybercrime Group of the Philippine National Police. — Charmaine A. Tadalan

ASEAN Manufacturing Purchasing Managers’ Index, May

ASEAN Manufacturing Purchasing Managers’ Index, May

Meralco to invest in more green energy projects

MANILA Electric Co. (Meralco) on Tuesday said it is developing 1,000 megawatts of renewable energy projects in the next five to seven years.

In a statement, Meralco President and Chief Executive Officer Ray C. Espinosa said the expansion is in keeping with the company’s unwavering shift to renewable energy and the adoption of sustainable practices.

“Meralco is committed to developing large-scale renewable energy projects that can deliver competitive electricity for our customers, without any requirement for subsidy or support, while keeping environmental stewardship and sustainability as top priorities in our business,” Mr. Espinosa was quoted in a statement.

Subsidiary MGEN Renewable Energy, Inc. (MGreen) is working on several renewable energy projects, primarily solar, wind and run-of-river hydro.

The company aims to bring in additional supply to further the Philippines’ growth and help ensure availability of green and cost-competitive power supply in the coming years.

MGreen is a wholly owned subsidiary of Meralco PowerGen Corp.(MGen), which in turn is the power generation arm of Meralco.

“We are working on several renewable energy prospects and we recognize the significant reduction in the development cost, particularly for large-scale solar and wind over the past years. Notwithstanding the ongoing requirement for new reliable baseload generation to support the fast-growing Philippine economy, we believe that the time is right to focus on building our green energy capacity and we intend to be a key player in this expanding sector,” MGen President and CEO Rogelio L. Singson said in the statement.

“MGen, through MGreen, will continue working on the realization of our project opportunities, and will work in partnership with established developers to maximize our growth potential,” he added.

The listed distribution utility saw its core net income rose 14% to P5.6 billion in the first quarter, despite a “modest” 2% growth in energy sales volume.

Meralco earlier said its reported net profit, which includes one-time gains, went up 7% to P5.7 billion during the January to March period.

The company attributed its first- quarter performance to: “higher distribution revenue underpinned by the 2% growth in energy sales volume; the positive contribution from Clark Electric Distribution Corporation (CEDC), following the settlement in 2018 of an unexpected claim by the Clark Development Corporation over the distribution revenues earned by CEDC from 2014 – 2018; and turnaround operating results of the company’s Retail Electricity Supply units.”

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Janina C. Lim

Ayala’s higher stake in Generika gets PCC OK

THE health care arm of Ayala Corp. (AC) said it has gained the Philippine Competition Commission’s (PCC) approval to increase its stake in the Generika group of companies.

The listed firm told the stock exchange Tuesday Ayala Healthcare Holdings, Inc. (AC Health) was given the nod by the anti-trust body to subscribe to an increase in shares in Generika.

“With this, AC Health will proceed with the closing of the increase in the stake from 50% to 52.5% as regards Actimed, Inc., Novelis Solutions, Inc. and Pharm Gen Ventures Corp.,” it said.

It noted the increase in stake in Erikagen, Inc., which is also under the Generika group, is “still subject to certain conditions precedent.”

The listed conglomerate first announced the planned increase in stake in Generika in March, where it said it will subscribe to a total of 970,412 shares in the group, divided into 706,579 shares in Actimed, 155,921 shares in Novelis, 65,807 shares in Pharm Gen Ventures and 42,105 shares in Erikagen.

AC Health President and Chief Executive Officer Paolo Maximo F. Borromeo had earlier said the company expects the additional capital from the increased stake in Generika will help its store and product expansion.

“We continue to see increasing demand for quality generic medicines and are excited about Generika’s growth potential. The additional capital will help us with our store and product expansion efforts,” he told BusinessWorld in March.

AC Health started acquiring shares in the Generika group of companies in 2015, and had since planned to expand its stores to 1,000 from the current 800 by 2020.

Aside from Generika, AC Health also has a 75% stake in Bacolod-based Negros Grace Pharmacy, Inc. and operates FamilyDoc clinics across Urban Luzon.

AC booked an attributable net income of P8.03 billion in the January to March period, 5% up from in the same period last year, driven by the growth of its property, banking and telecommunications units. — Janina C. Lim

Understanding China

Although my maternal grandfather was born and raised in China, my half-breed mother, who grew up with a childless Visayan aunt, never learned to speak Chinese. I was, however, exposed to some relatives in the Chinese community in my hometown. I guess this encouraged my lifelong curiosity about my latent “Chineseness.” In fact, I spent three years after office hours learning and practicing T’ai Chi in Chinatown, Binondo, Manila. In a way, this helped me appreciate concepts like “using the force of your opponent to defeat him,” and “resorting to indirect, not direct confrontation to confuse the enemy” and “investing in loss.”

Michael Pillsbury of the US-based Council on Foreign Relations and the Institute for Strategic Studies has written a book entitled The Hundred-Year Marathon first published in 2015. He described it as “China’s Secret Strategy to Replace America as the Global Superpower.” This goal, he said, is targeted at the year 2049, or a hundred years after the founding of the People’s Republic of China (PROC).

Today, this is no longer a secret. It is a patently blatant goal, despite a quote in the book’s opening chapter from the ancient Chinese essays referred to as the Thirty Six Stratagems that says “Deceive the heavens to cross the ocean.”

This quote is almost a clear-cut explanation of what has happened to our legitimate but ignored claims to the West Philippine Sea, as affirmed by the UN Arbitral Court based on the United Nations Council on the Law of the Sea (UNCLOS).

We wring our hands in dismay at the incredible behavior of the PROC and the extent to which they brazenly assert their claim, including dissemination of the so-called Nine-Dash Line deemed as fiction by the UN Arbitral Court as well as the hasty reclamation and building of military facilities including airports on the islets, including those included in our own legitimate territories based on international law. This all happened swiftly, it seems to me, while the United States was preoccupied with the nuclear threat from North Korea, a protégé and ally of China. It seems to me that the US could not afford to antagonize China, whose help it needed to neutralize the North Korean aggressiveness, if it reacted strongly to China’s aggressiveness in the “South China Sea.” We may have been entertaining sentimental illusions in expecting “Big Brother” America to come to our aid and repel the Chinese territorial aggressiveness in our marine resources.

RAWPIXEL.COM

Mao Tse Tung’s strategy mentor, the ancient military thinker and subsequent general, Sun Tzu, attributed as author of The Art of War, said that in order to win, the great general must first know the enemy and know himself. Learning the Art of War enabled Mao Tse Tung to defeat the better-armed Nationalist anti-communist Chiang Kai Shek who had support from Western powers, in taking control of China. This, Mao did after he retreated to Yunnan in the decades-long Long March where he consolidated his position.

Mao’s successor, Deng Siao Peng focused his efforts on developing China’s economy. Deng is quoted to have said “Poverty is not socialism. To get rich is glorious.” I guess my grandfather was born too soon. He and his cousins migrated to the Philippines to escape their hard life in Amoy, China. Today, China is second only to the United States in GDP; and is racing to catch up on per capita incomes. Deng sent thousands of bright scholars to the US and other advanced countries for further studies. He said, “When our thousands of Chinese students abroad return home, you will see how China will transform itself.” Today, we see China’s technological advances which have generated thousands of billionaires in their home country. Technology transfer has been eased by manufacturing facilities located in China where labor costs are much lower. Alibaba, TenCent and other technology-based multinationals are booming. Today, the US is fighting to ban use of Hua Wei products and to deny it access to suppliers of chips and other inputs to Hua Wei products and services.

We cannot expect China to behave ethically under norms practiced in the West, especially those in Christian countries. Communism is a godless ideology. In fact, Karl Marx was quoted as saying “religion is the opium of the people.” Many of my exemplary professors at the University of San Carlos here in Cebu were German priests who taught engineering sciences and philosophy after being expelled from China. We also cannot expect China to respect standards observed in democracies, which it is not. It is clear that PROC is an authoritarian government. It justifies the murder of thousands of its citizens during the Tiananmen pro-democracy demonstrations thirty years ago as “the correct policy.” It has also not apologized for the arbitrary detention at the Hong Kong airport of our esteemed former Ombudsman and Supreme Court Justice Conchita Carpio Morales. Meanwhile, our own government has explained that China has the prerogative to decide who may enter their country.

Here is a consoling thought. Sun Tzu, ironically, was actually against armed warfare. The opening verse of Sun Tzu’s classic Art of War is the basic clue to his philosophy. “War,” he said, “is a grave concern of the state; it must be thoroughly studied.” Nevertheless, he considered war detrimental to the state and the people because it damaged property, allocated goods and services to fighting enemies, and in general caused a great deal of suffering to all sides of a conflict. He said that the great general is one who takes over a territory without the use of arms.

In his translation of The Art of War, Samuel B. Griffith says Sun Tzu said war was to be preceded by measures designed to make it easy to win. The master conqueror frustrated his enemy’s plans and broke up his alliances. He created cleavages between sovereign and minister, superiors and inferiors, commanders and subordinates. His spies and agents were active everywhere, gathering information, sowing dissension, and nurturing subversion. The enemy was isolated and demoralized; his will to resist broken. Thus without battle, his army was conquered; his cities taken and his state overthrown.”

What I have learned from these readings and observation of recent and current historical events is that, indeed, China has a longer-term and more strategic perspective, and subtle and nuanced lessons from its millennia and more history.

In this context, we should be able to assess whether our leadership has been making the right strategic moves or has just been plain clueless and thus bumbling its way through. Perhaps Rodrigo Duterte should read Sun Tzu in order to be able to read and play his cards right and not end up being such a pitiful and shameful lackey. It seems to me that China needed our help in order to realize its objectives. Our strategic location and membership in ASEAN should have counted for something. But we may have been too naïve to appreciate and exploit the complex situation to our nation’s benefit.

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and an independent development management consultant.

tsabesamis0114@yahoo.com

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