IRA ruling need not expand deficit, petitioner claims
THE GOVERNMENT may not need to widen its fiscal deficit to comply with a Supreme Court ruling to provide local governments with their “just share” of national government revenue, the former governor who obtained the court decision said.
Hermilando I. Mandanas, a former Batangas governor and Representative for the province’s 2nd district, who also chairs the Luzon Regional Development Committee, added that the committee signed a resolution on Thursday urging the Department of Finance and the Department of Budget and Management to implement the high court’s ruling.
He said that the ruling should be implemented retroactively, with a total liability to LGUs of internal revenue allotments (IRAs) worth about P1.5 trillion from 1992 — the year when the Local Government Code was enacted — to 2018.
The law states that local governments are entitled to a 40% share of “national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year.”
For 2019, the local government share, known as the Internal Revenue Allotment (IRA) is officially reckoned at P575.5 billion but under the ruling’s interpretation should include P200 billion more.
The high court, sitting en banc, said on July 3 in a statement that it voted 10-3 in favor of including all national taxes in the calculation of IRAs such as those collected by the Bureau of Customs and the Bureau of the Treasury. It has yet to publish its final resolution.
Department of Budget and Management Secretary Benjamin E. Diokno has said that the government will likely file a motion for reconsideration through the Office of the Solicitor General because of the risk of a credit rating downgrade because the fiscal position would become “unmanageable,” with the budget deficit expanding to 6% of gross domestic product — double the 3% planned.
Mr. Mandanas said in a briefing in Mandaluyong City, “I am asking DBM to recompute because of the SC decision because it would affect definitely the budget. But the 6% deficit — that is not true.”
Mr. Mandanas said that the additional IRA should be taken from current allocations for national line agencies, and at the same time leaving these agencies’ functions to local government units (LGUs) such as conditional cash transfers, fertilizer funds and farm-to-market roads from the Agriculture department and medical services from the Health department, among others.
“Just transfer the funds. Take that out from the national line agencies. The funds that are really for basic services that should be done by locally, give it to the local government,” Mr. Mandanas said.
“It would increase the amount of money so they will be able to perform their mandated basic services. We do not need to borrow money. We will just implement the law,” he added.
He said that the unallocated shares from previous years could be paid in tranches for up to 20 years, but added that the mode of payment still depends on the SC’s final decision.
“My suggestion is you cannot pay it one go. So the back pay will be paid in maybe five, 10, or 20 years. That can be subject to negotiations.”
Mr. Mandanas said that providing more funds to LGUs will be “more transparent” and “more efficient” as the LGUs themselves know their needs more than the national government.
“Our credit rating will even go up because we will be able to spend our money more efficiently. We would be able to spend more, infrastructure projects can even built faster. Barangays will build the roads they need. It will not damage the national government.”
The National Economic and Development Authority Assistant Secretary Mercedita A. Sombilla has said that the proposal is “rational,” adding that “their demands are valid… I really hope that things are going in a positive direction, which is really good for the regions and the LGUs.”
Many LGUs depend on income from the national government which has stunted the development of their ability to raise their own funds via real property and business taxes, among others.
Mr. Mandanas countered by saying: “The basic principle is you would just devolve the funds that they are able to spend. Like fertilizers. The soil conditions are different in the towns and municipalities.”
Finance Secretary Carlos G. Dominguez III said the government will await the formal release of the ruling before taking any action.
“As of [Wednesday], we haven’t yet received the decision from the SC and will comment after we get a chance to study it closely and evaluate its implications,” Mr. Dominguez told reporters yesterday in a mobile phone message. — Elijah Joseph C. Tubayan
Marawi rehab moving on to second contractor
THE Task Force Bangon Marawi (TFBM) said Thursday that the groundbreaking for the rehabilitation of Marawi City’s most affected area (MAA) has been reset for August following “unsuccessful negotiations” with the Bagong Marawi Consortium (BMC) last month.
“We had an unsuccessful negotiation with the Bagong Marawi Consortium, and now we are in the process of negotiating with the next in line, which is Power China. With regard to the details of the ongoing negotiations, I was informed that the groundbreaking is reset for the third or last week of August,” TFBM and Housing and Urban Development Coordinating Council (HUDCC) chairperson Eduardo D. del Rosario said in a briefing at the Palace.
The delay in the selection of the developer, according to Mr. del Rosario, will “not affect” the government’s “target date of completion, which is at the last quarter of 2021.”
HUDCC Secretary General Falconi Ace Millar said Power China has yet to tap some local companies “to meet the 75-25” requirement, referring to the foreign and local mix of participants. “So, definitely, it will not be solely undertaken by Power China,” he said.
As for BMC, Mr. Millar said it failed to satisfy requirements “with regard to financial, technical, and legal aspects.”
“For example, with regard to legal compliance, some of the documents were not translated into English. We had a hard time reviewing these documents, which were submitted in Chinese. With regard to financial capacity, we required them to comply with the equity requirement or to show proof of set-aside deposits, which they have failed to comply with,” Mr. Millar said.
Mr. Del Rosario said that in terms of the timetable, “We are on time. We programed the rehabilitation in such a way that we will be able to complete [it] not later than December of 2021. We are on time.”
Mr. Del Rosario added that President Rodrigo R. Duterte has not expressed any “displeasure” over the progress of the rehabilitation. “The President is very appreciative when things go right, and he has always said that the government has acted fast in Marawi. He has also said that had he assigned other people to the job we might still be building transitory shelters.” — Arjay L. Balinbin
DENR says climate-change plan names 22 provinces
THE Department of Environment and Natural Resources (DENR) said Thursday that it identified 22 vulnerable provinces in its climate change and disaster risk cluster road map for 2018-2022, which has been submitted to Malacañang.
Environment Secretary Roy A. Cimatu, who also heads the Cabinet Cluster on Climate Change Adaptation, Mitigation, and Disaster Risk Reduction (CCAM-DRR), said that the four-year plan recommends upgrades in the adaptability of 22 provinces, 822 coastal municipalities, and some major cities.
He did not give a full list of the vulnerable areas, though the department said separately that priority provinces for 2019 are the Dinagat islands, Masbate, Negros Oriental, Sarangani, Sorsogon, Surigao del Norte, Surigao del Sur and Western Samar.
Other government agencies that are part of the CCAM-DRR cluster are also expected to turn in road maps on Participatory Governance, Infrastructure, Human Development and Poverty Reduction, Security, Justice, and Peace, and Economic Development.
Undersecretary for Climate Change and Mining Concerns Analiza Rebuelta-Teh said that the road map’s resolution was issued in January and is expected to be implemented through a Risk Resiliency Program (RRP).
“The RRP is the framework program to assist the Philippines in strengthening the resiliency of natural ecosystems and the adaptive capacity of vulnerable communities to short and long-term risks,” she added.
“The RRP also aims to contribute to the attainment of the Philippine Development Plan goal of inclusive growth by minimizing the impacts of climate and disaster risks.”
The DENR said the 2019 priority areas were selected for high poverty, susceptibility or exposure to hazards, and critical or degraded watersheds.” — Anna Gabriela A. Mogato
DTI to sign UAE market-access deal for halal products
THE Department of Trade and Industry (DTI) is set to sign a deal with the United Arab Emirates (UAE) which will allow easier access to Philippine halal products, especially those produced by micro, small, and medium-scale entrepreneurs.
In a statement, the DTI said its Philippine Accreditation Bureau (PAB) will be signing a memorandum of understanding (MoU) with the UAE’s Emirates Authority For Standardization And Metrology next week
“The signing of the MoU is expected to support the country’s bid to boost halal exports to UAE,” the DTI said.
Once the MoU is signed, PAB-accredited halal certifying bodies will automatically recognized in the UAE, facilitating entry into the UAE market at lower cost. The deal is expected to particularly benefit the MSMEs facing difficulties in meeting certification requirements.
The DTI recently released a road map which hopes to streamline the halal certification process.
The global market for products compliant with Islamic dietary and animal-slaughter rules is estimated at $2.6 trillion. The DTI targets halal exports of $1.4 billion in 2018, nearly double 2017 levels.
The government has been launching a series of workshops to help promote opportunities in the global market for halal while arriving at agreements with Muslim states for market access.
Republic Act 10817 or the Philippine Halal Export Development and Promotion Act of 2016 requires the DTI to explore ways to fill global demand for quality halal products and services. — Janina C. Lim
Fee waiver for trademark applications expanded to more MSMEs
THE Department of Trade and Industry (DTI) and the Intellectual Property of the Philippines (IPOPHL) said they have expanded a program to waive trademark application fees for micro, small, and medium enterprises (MSMEs) to accommodate 1,000 more applications.
The so-called “Juana Make a Mark” program is now budgeted for 2,000 MSMEs, which can save up to P3,000 from waived basic filing, color claims, and first publication fees.
The effectivity was extended to Feb. 14, 2019, or until all such entitlements have been exhausted.
Trade Secretary Ramon M. Lopez said the program is intended “to help the MSMEs be part of the local supply chain and eventually venture out to the global market.”
Logos, brands, label marks and trade names are viewed as key marketing tools that MSMEs need to differentiate their goods or services from those of their competitors.
IPOPHL Director General Josephine R. Santiago said the extension of the program gives the agency more time to reach far-flung areas where there may be trademark applicants.
“The success of the first round of the program shows MSMEs are realizing the significance of trademarks, such as an edge in marketing their products,” Ms. Santiago said in a statement.
In the three months to March, trademark applications totaled 8,400, up 12.56% year on year.
Ms. Santiago attributed this to the growing awareness of the importance of trademarks.
The DTI requires potential applicants availing of the waived fees to be in a DTI or IPOPHL priority sector, or to be situated in areas which are prone to natural disasters or facing social and/or economic challenges, among others.
Priority sectors are agribusiness; aerospace parts; automotive and auto spare parts; chemicals, electronic manufacturing and semiconductor manufacturing services; construction; design-oriented furniture and garments; shipbuilding (RORO, small or medium-sized vessels); information technology and business process management; tools and dies; tourism; and transport and logistics.
IPOPHL launched the program in 2017.
The bulk of the trademark applications filed by MSMEs involve distinctive local pastries, delicacies, coffee, tea, and sugar. This was followed by processed food from fruits and vegetables indigenous to the area. — Janina C. Lim
Current management doctrines have long since become archaic
By and large, current management principles and practice are a throwback from a relatively placid era long gone. Their intellectual moorings are largely the handiwork of legendary management guru Michael Porter whose Five Forces model of the business enterprise, to this day, continues to dominate management thinking and practice — three and a half decades since the publication of his classic work, “On Competition.”
However, for all their current popularity, these ideas and the management principles that they imply have become irrelevant in today’s fast-paced world of business.
THE EVOLVING WORLD OF BUSINESS
With the advent of the computer age in the early nineties, and with the increasingly global scale of the flow of economic goods, financial services and information, the business environment has become extremely and irreversibly complex, volatile and uncertain. Under these dynamic conditions, “solving” management problems in the usual manner is no longer feasible.
There are no lasting “solutions” to problems that shift by the day!
Today’s economy is best described by the following essential characteristics:
• High-intensity interconnectivity
• Knowledge-based production technologies
• Value creation on a global scale
• Non-linear instability, unpredictability and ambiguity
These features of the New Economy require a totally different approach in the way we manage, and by extension, in the way we teach business.
A TEN-POINT MANAGEMENT AGENDA
For the purpose of moving from where we are now to where we ought to be, we propose a Ten-Point Agenda for management in the emergent world of business:
1. On the concept of the firm: From one that seeks to maximize immediate profits or shareholder wealth to one that seeks to maximize the production of economic value.
It can be shown that, properly executed (i.e., by implementing appropriate strategies for allocating value to all other stakeholders), value maximization invariably leads to the maximization of profit or shareholder wealth, treated in our model of the firm as a residual.
2. On the nature of the business organization and its environment: From a given set of institutional arrangements and governance mechanisms to one characterized as continuously evolving Complex Adaptive Systems (CAS).
3. On the strategic goal of the firm: From establishing dominance in existing markets to prepositioning in emerging ones.
4. On the source of market strength: From competitive advantage to collaborative advantage.
5. On the major source of core competency of the business: From financial and physical capital to Human Capital, in particular, the knowledge and skills that are embedded in people.
6. The main implementing business model: From one that emphasizes revenue generation, efficiency and cost effectiveness to one that stresses innovative and creative business solutions.
7. The major sub-areas of strategy: From strategies in the specific managerial functions of production, marketing, finance, and human resources management to strategies for creating value for the firm’s major stakeholders — its customers, its workers, its suppliers, and the community of which it is an integral part.
8. Corporate Governance: From exclusivity, or one focused solely on the interests of owners or stockholders to inclusivity, or one that factors in the economic interests of all groups that contribute to the process of value creation, in particular, those who represent the poorest segments of society.
9. Corporate Social Responsibility: From social responsibility as altruism and philanthropy (doing good), to social responsibility as an integral part of strategy for the sustainability of the business (doing well).
10. Preferred analytical and decision-making tools: From statistical analysis and mathematical modelling for the purpose of predicting outcomes and finding optimal solutions to business analytics and agent-based modelling for the purpose of discerning patterns.
TOWARDS A NEW BREED OF BUSINESS LEADERS
The role of an organizational leader has traditionally been defined as one of setting a clear and unified vision of the organization and providing a sense of direction for achieving its goals. However, in today’s complex and unpredictable business environment, setting a well-defined trajectory for the organization has become an impossibility.
In today’s digitally driven world, running a highly interconnected business enterprise requires a new brand of leadership, that of managing interphase. This entails two sets of leadership skills:
• Those of managing interphase in complex and continuously evolving enterprise settings that consist of highly interconnected and interactive components and processes, and
• Those of managing interphase between the immense computational capabilities of Artificial Intelligence on the one hand, and the creative, instinctual and emotional faculties of humans on the other.
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.
Niceto S. Poblador is a member of the MAP Corporate Governance Committee, a retired U.P. Professor, and until recently was Professorial Lecturer at the U.P. School of Economics.
nspoblador@gmail.com
map@map.org.ph
http://map.org.ph
Offender of the faith
Before Rodrigo Duterte, no Philippine president, as morally challenged as some of them may have been, had ever disparaged Catholicism and Christianity, much less cursed the God Christians, Muslims, and Jews worship in common. Even Ferdinand Marcos, to whose overthrow in 1986 both the institutional Church as well as its activists contributed, did not take that path, although among the victims of his terrorist regime were nuns, priests, pastors, and other religious workers.
That some of the country’s past presidents were devout Catholics was certainly among the reasons. But the more skeptical would probably attribute their refusal to mock the faith of 90% of Filipinos to their knowing that it would neither serve any rational purpose nor help them in the next elections. Some did bristle at the Catholic church’s attempts to influence government policies and even took positions contrary to that of the clergy, while having themselves photographed on their knees in church and secretly courting the Iglesia ni Cristo’s fabled command votes. That was about the farthest even the most fervent and most hypocritical disciples of the separation of Church and State went. Common sense decided the rest.
But it was also a matter of good manners and breeding. And perhaps unintentionally, the respect that they showed the Christian faith and its God, as well as Islam and Allah, was in keeping with everyone’s, especially any leader’s, responsibility of respecting the beliefs of others rather than contributing to the further fragmentation of a people already divided along economic, social, ethnic, and even racial lines.
In contrast, Mr. Duterte has been taking every opportunity, including those events in which he’s in attendance but which have nothing to do with Church-State relations, to verbally abuse the clergy. He has even justified the killing of at least one priest because he (Fr. Mark Ventura) was supposedly no different from him (Mr. Duterte) because he too had an eye for the ladies. He has also questioned Biblical accounts of creation and insulted the Judeo-Christian God — whose existence, however, he has denied.
Why Mr. Duterte has been directing the attention of this predominantly Christian, Catholic country to the Church, priests, and God could be explained by the circumstances in which it is happening. Among those Filipinos worried about the future of this country, a slew of urgent issues has been of critical concern since he assumed the Presidency two years ago. They include:
[1] The human rights violations and the killing of suspected drug users and pushers mostly among the poor, as well as of social and political activists, Lumad leaders, “istambay” (loiterers), and even local government officials (Ten mayors and five vice-mayors have been killed since August 2016, a month after Mr. Duterte assumed office. Three mayors were slain in supposed encounters with the police; a fourth was killed by the police while already in custody.);
[2] The surge in the inflation rate to a record high of 5.5% (7.7% in the Autonomous Region of Muslim Mindanao) due to the disastrous Tax Reform Acceleration Inclusion law;
[3] The likely railroading by Mr. Duterte’s rubber-stamp Congress of a new constitution 64% of the people do not want, but which would nevertheless change the unitary form of government into a federal one and as a result strengthen dynastic and warlord rule, emasculate the Bill of Rights, enable Mr. Duterte to run for two four-year terms, and allow foreign penetration and control of the media, the economy, public utilities, and even the professions;
[4] The Duterte regime’s not doing anything about imperialist China’s continuing violation of Philippine sovereignty in the West Philippine Sea, where that once socialist country has constructed military bases, bars Filipino fisherfolk from their traditional fishing grounds in the Philippines’ Exclusive Economic Zone, and even steals the catch of those who manage to elude its coast guard cutters;
[5] The regime’s scuttling of the peace talks with the National Democratic Front of the Philippines just when the peace negotiators were on the verge of signing an agreement on the social and economic reforms that if implemented would address the roots of conflict and end the 49-year-old civil war; and
[6] The imminent danger of Mr. Duterte’s placing the entire country under martial law supposedly to enable him to address criminality and the illegal drug trade, but which in reality would enable him to suppress all protest and dissent as terrorist acts, arrest regime critics, and keep himself and his co-conspirators in power.
If his rants against the Church, the Bible and God Himself are meant to deflect attention from the above issues so he can more freely prepare for the coup against the 1987 Constitution he’s always had in mind since day one of his troubling rule — in the same manner that he lulled the public and political opposition into complacency when he kept saying he would not run for President in 2016 — if that is the intention, it is at least partly succeeding.
His tirades have offended the Catholic and Christian faithful, except his Bible-thumping acolyte Manny Pacquiao, who believes that even the most vicious governments are founded on divine right. Mr. Duterte has provoked a debate between his partisans, trolls, and media mercenaries on the one hand and priests, bishops and those who take their Christianity and Catholicism seriously on the other.
The latter have labeled him blasphemer, called him the anti-Christ, and even cursed him as the devil himself. But his rants have also beguiled free-thinkers, agnostics, atheists, and the simply anti-clerical among the population. They applaud what they think is his attempt to address the long overdue need to put the Catholic Church in its place, question its tax exemption privileges, assail its involvement in politics and its intervening in State policies, chastise it for its great wealth in a country where 22 million are desperately poor, and recall its sorry record of collaboration with the power elite from the Spanish colonial period onwards.
Mr. Duterte’s tirades have apparently struck a sympathetic chord among those who are critical of the many failings of the Church. In the process, he has succeeded in deflecting attention from the real issues that should concern every citizen who still cares for this country and its people.
Some of the accusations against the Church are both accurate and valid. But they are issues best left for a better time when the country is not as perilously close to losing all those gains and values that while far from complete, and always at risk, its best sons and daughters have managed to win for the people through the decades. Respect for human rights and for free expression and press freedom, the enshrinement of the right to life, due process and liberty in the 1987 Constitution, and the making of a just and lasting peace are values and objectives that need defending and constant re-affirmation.
This is not the time to read into the ravings of the Offender of the Faith meanings he very likely never intended. Because he is neither a historian nor theologian, nor even reasonably well-informed, and his profanity-laced tirades against Christianity and God being thoroughly at odds with the standards of rational discourse, there may not, in fact, be any appropriate time at all to ever, ever, ever take his views on anything seriously. But his regime’s relentless march to tyranny, the lawlessness and violence of it, the corruption, brutality and the hate — these are entirely different matters that demand careful attention, and the most appropriate response.
Luis V. Teodoro is on Facebook and Twitter (@luisteodoro). The views expressed in Vantage Point are his own and do not represent the views of the Center for Media Freedom and Responsibility.
www.luisteodoro.com
Judicial delays: cost and causes
The constitutional right to due process has always been foundational for the Philippines. Yet an unfortunately resignedly accepted aspect thereof is the delay with which justice is dispatched. Surely, “justice delayed is justice denied” but other consequences — particularly on the economy — also prevail.
One recent study (Melcarne and Ramello, Universita` del Piemonte Orientale, April 2017) of 175 national judicial systems found that “judicial delay turns out to be a relevant and significant determinant of growth, as every extra year needed to dispose (on average) private litigation lowers growth rate by over 1%.”
Perhaps unsurprising considering, as the study contends, that the “judiciary is the main instrument for economic actors to solve their disputes.” Also, a “faster judiciary helps making the protection of property rights more credible.”
This is buttressed by a World Economic Forum brief (Why rule of law is the bedrock of sustainable development, September 2015, Andrew Ozanian): “The reason is because the rule of law can be seen as a linchpin right, something on which other rights depend. As access to justice improves, a lot of other things we value improve as well. The rule of law is a cornerstone for a better functioning economy.”
The impact of judicial speed is not only felt at the macro level but even on the ground, particularly by individual business organizations. In “Does the Quality of the Judiciary Shape Economic Activity? Evidence from India” (Matthieu Chemin Department of Economics, LSE, October 11, 2004), “a slow judiciary implies more breaches of contract, discourages firms from undertaking relationship-specific investments, impedes the access of firms to formal financial institutions, and favors inefficient dynasties. The negative implications of having an inefficient judiciary are large — moving a firm from the highest to the lowest pendency state would result in a 10% improvement in firm performance.”
Perhaps it is no coincidence then that the Philippine fall in the World Justice Project’s 2017-2018 rule of law report mirrors the Philippine downgrading in the World Competitiveness Yearbook rankings.
For the rule of law, the Philippines plunged 18 slots from 2016, to the current 88th out of 113 countries and 13th out of 15 countries in the East Asia & Pacific region. Significant factors were low scores in “fundamental rights” and “criminal justice.” In competitiveness, the Philippines fell 9 slots (50th out of 63 countries), the sharpest decline for the country in the last ten years. A low point is “efficiency of legal framework in settling disputes.”

In his superb masteral thesis “Judicial Performance in Case Deliberations: The Cases of Two Lower Level Trial Courts in Quezon City and Pasay City”, Mark Jason Aludino (an MA candidate in Political Economy with Specialization in International Relations and Development at the University of Asia & the Pacific School of Law and Governance) gives a fresh, pioneering, and ultimately practicable insights into the root causes of judicial delays in the Philippines.
The thesis findings are too numerous to be tackled here but focus for now is made on its determinations regarding Philippine cultural or societal aspects and judicial speed: “Court culture is a vital factor in influencing the pace of litigation and the efficiency of the courtroom staff. In terms of courtroom leadership, the judge maintains the most pivotal role and in the attempt to speed up proceedings, the judge controls a major part of it, with how they deal with the trial flow, requests from parties, and the conduct of their staff.”
The trick, however, is that the “judge’s envisioned management style has to be in-sync and supported by the branch clerk, especially since they are considered as the ‘court managers.’” But this can only be possible if the “judge is able to appoint his or her own staff members”, for which they are currently disallowed from doing.
Another, as Mr. Aludino (who’ll be proceeding for further studies on international relations at the Maxwell School of Syracuse University) points out, is “the litigants’ behavior”, which is “widely considered as the biggest determinant of court delay. This is also perhaps the most challenging to control”.
Admittedly, litigants’ behavior may be constrained by economic circumstances but then outright dilatory tactics (e.g., absenteeism, lack of preparedness, rescheduling — particularly with regard to the conduct of cross-examinations, and abuse of the registered mail system) clearly need proscription.
It is because of such, more than any other factor, that “delays become common in courts and the impact has been extremely detrimental to whatever efforts the court puts in place, as well as negatively impacting the efforts of the judge and other court actors to hasten litigation.”
Clearly, unlike in the past administration, where the words “rule of law” was employed merely as a political trope, people are now recognizing that the rule of law’s proper application has real world beneficial implications.
At the very least, the above-cited studies show that Filipinos must learn to distinguish between being merely legalistic and actually respecting the rule of law.
Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.
jemygatdula@yahoo.com
www.jemygatdula.blogspot.com
facebook.com/jemy.gatdula
Twitter @jemygatdula
Encore
A surprise voyage back to the Nordic continent was truly refreshing and exciting. After the sweltering sultry tropical months, it was worth the long flight to a cooler, invigorating climate. The temperature levels ranged from 120°C on cool clear nights to 260°C with glorious sunny days.
A few years ago, a similar voyage had been cloudy, rainy and cold during the same month. There were only a few days of sunshine. One could not go to some of old towns because of the heavy rains.
Occasionally, the sun would peek through the clouds and the landscape would light up like an enchanted tableau.
It was almost surreal, returning to the same places but being able to see the other cities and experience them — this time in perfect summer weather.
Each city has maintained her distinct characteristics — language, cuisine, people, and zoning. But there are ongoing construction and restoration work in some areas. The medieval towns have remained frozen in time bubble — well-preserved and protected.
In Copenhagen, the royal botanical gardens, parks, and sidewalks were abloom with thousands of flowers, trees and shrubs. The mermaid on the rock is always the star attraction. The Tivoli gardens at night are enchanting. The rock and rap concert drew thousands of young, gorgeous blonde fans. The Danish Royal Ballet performs there in autumn.
Bicycles were used everywhere. Some bikers had rolling prams that could carry four toddlers. The cars, buses, and taxis were strictly limited and regulated. It felt safe to walk and to breathe clean air. However, the difference was the presence of some wandering, disheveled gypsies poking through the bins.
An important destination was historic Berlin with the Wall, Checkpoint Charlie, the monuments and museums. Finally, there was the long-awaited visit to the Brandenburg gate and the famous wall that divided the city and families. There is a section where well known artists have painted on the eastern side surface. It is street art at its finest. This city is special because of the gracious hospitality of Berliner friends.
The picturesque Tallinn is a Heritage site. Its cobbled stone streets and pastel colored buildings have colorful and unique doors, window ledges that hold red blooms. The cobalt blue sky has streaks of white and silver — airplanes that crisscross above. The quiet tranquility clears the mind.
Finally, one sees the fabled city of St. Petersburg, the cultural center and home of the tsars on the Baltic. This encore trip was truly serendipitous.
One has the chance to retrace the steps to magnificent palaces and see the mirrored ballrooms with chandeliers, the amber wall panels, the fragile porcelain collections and delicate furniture, paintings, tapestries, antique desks and clocks.
The best architects designed the structured, symmetrical French gardens reminiscent of Versailles. The spectacular fountains have golden sculptures. The water flows from the mountains and these are run by gravity, just like the Roman fountains.
The ancient forest is filled towering pine trees, evergreens. There were brilliant tulips, roses, irises and flowers and birds. In summer, the tsars lived in the small royal villas overlooking the Baltic.
The rival of the Louvre in Paris is the Hermitage. It is probably the largest museum in the world. The five interconnecting palaces contain hundreds of thousands of artworks. If one could spend a minute admiring each painting and sculpture, it would take about seven years to accomplish. Only a small fraction of the collections can be displayed.
A new blitzkrieg 5-hour tour of the masterpieces of the Renaissance and the Impressionists, the Fauvists, Cubists was even more impressive. The Impressionists are housed in a separate palace with modern lighting and walkways. Catherine the Great (originally a German princess married to the ill-fated Peter II) had started the vast collection centuries ago. One can only have a quick glimpse of the cultural treasures that go back to ancient Egypt.
The Orthodox basilicas with golden domes and intricate mosaic artworks. The exquisite painted icons of gold on wood, the ornate altars, golden chalices and delicate stained-glass windows are indescribably stunning.
It was awesome to watch Swan Lake by the Kirov Ballet. A live orchestra played Tchaikovsky’s music. The experience was breathtaking. Odette/Odile and the Prince were outstanding graceful performers. The corps du ballet fluttered their arms like swan wings. They danced with near perfect precision and discipline. The former minimalist set of shimmering shades of blue has been updated to a more elaborate backdrop with a video for special effects. There are no superstars. All the lead and alternate lead dancers were excellent. There were three new dancers from Asia who blended well in the ensemble.
At midnight, the sun sets, and the blue sky turns to silver indigo. In June, the legendary “white nights” grow longer. It is a prolonged twilight. Then the sun rises at four o’clock. People are happy because they rarely have sunlight during the winter months.
The skies were ablaze with fireworks to celebrate the 315th birthday of St. Petersburg founded by Peter the Great. The city is called the “Venice of the North” because of its numerous islands and drawbridges. There are motorized boats that take people around. One has a different perspective seeing the city architecture from the water.
It takes time for the mind to store and digest all the overwhelming images. Soon the imagination will transform the magical moments — fiery sunsets, seascapes and skies — into new dreamscapes.
Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.
mavrufino@gmail.com
Peso ends flat following positive US data, renewed trade tensions

THE PESO ended flat against the dollar on Thursday following upbeat US producer price data and renewed trade tensions between China and the US.
The local unit closed Thursday’s session at P53.50 versus the greenback, ending flat from its finish on Wednesday.
The peso opened the session slightly weaker at P53.55, which was also its intraday low. On the other hand, its best level for the day stood at P53.495.
Dollars traded rose to $595.3 million from the $355.9 million that switched hands the previous day.
A trader said the peso closed flat on Thursday due to profit-taking by investors.
“The peso closed flat as investors took profits from the relatively stronger dollar during the day,” a trader said in an e-mail.
The trader added that investors pocketed gains following “the release of better-than-expected US producer prices report on Wednesday, along with the renewed escalation of US-China trade tensions.”
US wholesale prices posted the biggest year-on-year rise since November 2011, standing at 3.4%.
Meanwhile, the US threatened China to slap another 10% tariffs on $200 billion worth of Chinese goods. Beijing said the action was “completely unacceptable,” noting that it would complain to the World Trade Organization.
Another trader said Thursday’s trading was mostly driven by corporate demand.
“I think the trading [on Thursday] was corporate-driven. We saw some demand from oil companies,” the second trader said in a phone interview.
Rizal Commercial Banking Corp. Economist Michael L. Ricafort said: “The possible further hike in local policy rates may have caused relatively stable peso exchange rate versus the dollar recently.”
Previously, Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla, Jr. said the monetary authority will review and update its assessment and forecast inflation path.
Last month, inflation accelerated to a fresh five-year high of 5.2%, surging from May’s 4.6% figure and the 4.7% median forecast among economists in a BusinessWorld poll.
On Friday, the first trader sees the peso to move between P53.40 and P53.60, while the other gave a slightly tighter range of P53.40-P53.55.
Most Asian currencies were also treading water on Thursday, as a cautious backdrop left investors uncertain about their bets a day after the latest US trade tariff threat had spread fresh tumult in financial markets. — Karl Angelo N. Vidal with Reuters
Shares inch up amid escalating US-China tensions
SHARES closed a tad higher on Thursday, with no new leads to draw investors back to the market.
The 30-member Philippine Stock Exchange index (PSEi) added 0.23% or 16.85 points to close at 7,350.58.
The broader all-shares index also went up 0.16% or 7.19 points to 4,455.20.
The PSEi managed to defy Wall Street’s negative performance overnight, in response to rising trade tensions between the United States and China.
“The Philippine markets continue to be perceived as a safe haven when US stocks fell sharply after the Trump administration announced new tariffs on Chinese goods, further escalation tensions between the two economies in the world, which some investors fear could morph into a full-on trade war,” Regina Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
Mr. Limlingan earlier said that investors see the PSEi as a less volatile market since it is a net importer.
The Dow Jones Industrial Average dropped 0.88% or 219.21 points to 24,700.45, while the S&P 500 index shed 0.71% or 19.82 points to 2,774.02. The Nasdaq Composite index slipped 0.55% or 42.59 points to 7,716.61.
US President Donald J. Trump released earlier this week a fresh round of tariffs for $200 billion worth of Chinese goods, which now covers around 10,000 products. Mr. Trump said he’s prepared to slap tariffs on another $200 billion in goods in the future.
Meanwhile, most Asian markets closed higher on Thursday, mounting a recovery from the initial shock after Mr. Trump’s announcement on the new tariffs. MSCI’s index of shares in Asia Pacific excluding Japan went up 0.53% during afternoon trading.
Locally, four sectoral indices ended in positive territory, led by financials which jumped 0.97% or 17.57 points to 1,824.08. Industrials followed with a 0.74% uptick of 76.89 points to 10,390.30. Holding firms climbed 0.33% or 24.42 points to 7,248.80, while services went up 0.03% or 0.55 point to 1,432.98.
Meanwhile, property lost 0.53% or 19.19 points to 3,582.08 and the mining and oil counter gave up 0.28% or 27.17 points to 9,681.06.
Even as the main index advanced, decliners still outpaced gainers, 106 to 84, while 46 issues remained unchanged.
The market saw some 2.13 billion issues switch hands valued at P5.53 billion, higher than Wednesday’s P5.16-billion turnover.
“While the PSEi ended above its recent high, it might be too soon to be overly optimistic as the index still closed at practically the same level. Volume was also light at only P5.5B — a clear breakout would need a large accompanying volume,” Papa Securities Corp. trader Gabriel Jose F. Perez said in an e-mail.
Foreign investors accelerated their selling, with net foreign outflows climbing P262.82 million from the P85.69 million recorded in the previous session. — Arra B. Francia
