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N. Korea 'already starting' denuclearization: Trump

North Korea has already begun its denuclearization, US President Donald Trump said Thursday, after many observers greeted with skepticism the results of his historic meeting with the North’s leader Kim Jong Un.
“They’ve already blown up one of their big test sites. In fact, it was actually four of their big test sites. And the big thing is, it will be a total denuclearization, which is already starting,” Trump said at a cabinet meeting.
In late May, before the June 12 Trump-Kim summit in Singapore, Pyongyang said it had fully demolished its only known nuclear test site.
Foreign journalists invited to the Pungyye-ri test facility in North Hamgyong province described a series of explosions throughout the day, three of them in entry tunnels, followed by blasts that demolished a nearby barracks and other structures.
Punggye-ri has been the staging ground for all six of the North’s nuclear tests, including the latest and by far most powerful one in September last year which Pyongyang said was an H-bomb.
Experts are divided over whether the demolition will render the site inoperable. Skeptics say the facility has already outlived its usefulness with six successful nuclear tests and can be quickly rebuilt if needed.
At their summit, Kim and Trump signed a pledge “to work towards complete denuclearization of the Korean Peninsula,” a stock phrase favored by Pyongyang that stopped short of longstanding US demands for North Korea to give up its atomic arsenal in a “verifiable” and “irreversible” way.
The summit pledge was followed by the US military’s postponement of major joint exercises with its ally South Korea following a pledge by Trump to halt the drills which have aroused repeated anger in the North.
Trump and Kim also agreed on the repatriation of the remains of American soldiers killed during the 1950-1953 Korean War.
The president said at the cabinet meeting that “they’ve already sent back, or are in the process of sending back, the remains.”
A US official had said Tuesday that Pyongyang may soon begin returning remains from among up to 200 sets the North says it has recovered. — AFP

Greece crisis declared 'over' as eurozone agrees debt relief

Eurozone ministers declared the end of the Greek debt crisis early Friday agreeing debt relief and a big cash payout for Greece, part of a broad bailout exit deal that will close eight years of financial rescues for cash-strapped Athens.
Greece is slated to leave its financial rescue on August 20 and finance ministers from the 19 countries that use the single currency were under pressure to offer Athens a goodbye deal that left it strong in the eyes of the financial markets.
“The Greek crisis ends here tonight,” said EU Economic Affairs Commissioner Pierre Moscovici, after marathon talks in Luxembourg.
“We finally got to the end of this path which was so long and difficult it is a historic moment,” the former French finance minister said.
The agreement is an important turning point for the eurozone nearly a decade after Greece stunned the world with out-of-control spending and sparked three bailouts and a near collapse of the euro single currency.
The deal was expected to be an easy one, but last-minute resistance by Germany — Greece’s long bailout nemesis and biggest creditor — dragged the talks on for six hours.
With writing-off loans off the table, eurozone ministers agreed to extend maturities by 10 years on major parts of its total debt obligations, a mountain that has reached 180 percent of GDP — almost double the country’s annual economic output.
The eurozone creditors also agreed to disburse 15 billion euros ($17.5 billion) to ease the country’s exit from its programme. This would leave Greece with a hefty 24 billion euro safety cushion, officials said.
“I am happy,” Greek Finance Minister Euclid Tsakalotos said after the talks.
But “to make this worthwhile we have to make sure that the Greek people see concrete results… they need to feel the change in their own pockets,” he added.
‘Concerns’
Greece’s latest 86-billion-euro programme was agreed in 2015 after six contentious months of negotiation, bringing the level of assistance received by Athens to 273.7 billion euros since 2010.
The rescue loans came in return for hundreds of stringent reforms that landed like a rock on the Greek economy, which shrank by nearly 25 percent in just a few years and sent unemployment surging.
But after the pain, including wage and pension cuts and tax hikes, Greece’s economy has stabilised and is expected to post moderate growth this year.
Greece however will remain under the watch of its creditors after the bailout and under stricter terms than for Portugal, Ireland and Cyprus following their respective bailouts.
Under German demands, Greece’s debt relief in the short-term will be conditional on the continued implementation of agreed reforms, which if successful could inject about one billion euros to the government’s underfunded budget every year.
“We will ensure that the pressure to implement further reforms remains strong… in the medium and long term,” said Austrian Finance Minister Hartwig Loger.
Opposite the hardliners were France and the European Central Bank, which argued that reduced debt was crucial in order for Greece to gain the trust of the markets.
The International Monetary Fund, led by the tough-talking Christine Lagarde, welcomed the debt relief, but cited reservations about Greece’s obligations over the long term.
“In the medium term analysis there is no doubt in our minds that Greece will be able to reaccess the markets,” Lagarde said after the talks.
“As far as the longer term is concerned we have concerns,” she added.
The reform-pushing IMF played an active role in the two first Greek bailouts, but took only an observer role in the third in the belief that Greece’s debt pile was unsustainable in the long term.  — AFP

OPEC showdown looms as Iran, Saudi argue over output hike

OPEC ministers are bracing for a stormy meeting in Vienna Friday where they will discuss a Saudi proposal to hike oil output despite fierce resistance from Iran, setting the stage for a showdown between the arch foes.
At stake is the fate of an 18-month-old supply-cut deal between members of the Organization of the Petroleum Exporting Countries and allied countries credited with clearing a global oil glut and lifting crude prices.
But Saudi Arabia, backed by non-member Russia, says the time has come to raise production to meet growing demand and appease major consumer countries like the United States, India and China who have complained about the spike in prices.
“Our customers have spoken loudly and we must listen to them,” Saudi Energy Minister Khalid al-Falih said at a technical meeting on the eve of the OPEC gathering in Vienna.
But hopes of a compromise were dealt a blow when Iranian Oil Minister Bijan Namdar Zanganeh walked out of the meeting early, telling reporters: “I do not think an agreement can be reached.”
Iran has bristled at the thought of easing the output ceiling at a time when its oil industry is facing renewed sanctions over US President Donald Trump’s decision to quit the international nuclear deal with Tehran.
However Riyadh, which cheered Trump’s move, is under pressure from its US ally to open the spigots as Trump hopes for lower pump prices ahead of November’s mid-term elections.
Iran’s Zanganeh, speaking to reporters on the sidelines of a Vienna seminar earlier this week, accused Trump of trying to politicise OPEC and said it was US sanctions on Iran and Venezuela that had helped push up prices.
Venezuela, in the throes of an economic crisis that has slashed its petroleum production, is also opposed to changing the oil cartel’s output policy, as are several other countries who would struggle to immediately increase production.
But Saudi Arabia has the backing of Russia, which is facing mounting calls from domestic oil firms to end the cutbacks so they can cash in on the higher oil prices.
Russian Energy Minister Alexander Novak, who attended Thursday’s technical meeting, said it was “very important” not to allow the oil market to “overheat”.
Face-saving compromise?
The 14-nation OPEC cartel and its 10 non-member partner nations, known as OPEC+, together account for more than 50 percent of the world’s oil supply, giving them huge sway over the global market.
The deal they initially agreed called for production to be trimmed by 1.8 million barrels per day, but OPEC claims production restraints and geopolitical factors have actually seen output fall by far more, to around 2.8 million bpd.
Speaking after Thursday’s meeting, ministers said they would recommend lifting production by a nominal one million barrels a day at Friday’s OPEC meeting and Saturday’s gathering of non-OPEC partners.
“Not every country can meet this number,” admitted Saudi’s Falih, in a nod to the problems in Venezuela, Iran and Libya, where clashes between rival factions have damaged key oil infrastructure.
The Saudi- and Russia-led proposal would allow several hundred thousand more barrels of oil to come to the market without however amending the milestone pact — paving the way for a face-saving compromise with Iran.
But Iraqi Oil Minister Jabbar al-Luaibi suggested it was far from a done deal.
The proposal was approved by a majority, but “not everybody”, he told reporters. — AFP

Trade war fears weigh on stocks as Dow falls for 8th straight day

Global stock markets fell Thursday on escalating trade tensions with a profit warning from Daimler tied to US-China tariffs weighing on auto shares.
A day before the European Union was to slap retaliatory tariffs on a range of American benchmark products, including jeans and motorbikes, analysts said trade war fears were quickly turning into the real thing.
“We have a trade war — and it’s an escalating trade war,” SEB chief economist Robert Bergqvist told AFP in an interview.
“Investors… are more cautious today, they are waiting for the right time to reduce their exposure in stock markets,” he said.
Equity markets in Frankfurt and Paris fell more than one percent, while the Dow dropped for an eighth straight session. The blue-chip US index is composed of many companies seen as especially vulnerable to a trade war.
Automakers fell hard after luxury carmaker Daimler cut its profit forecasts for 2018, blaming new tariffs on cars exported from the United States to China.
The German company has major US plants that export to China. China plans higher levies on the vehicles in retaliation for US tariffs on Chinese goods.
Daimler itself fell 4.3 percent, while German rivals Volkswagen and BMW fell by similar margins.
US auto giants Ford and General Motors were also down, as was French company Renault.
Oil prices, meanwhile, dropped on the eve of an output decision from the Organization of the Petroleum Exporting Countries, the 14-nation cartel that pumps 40 percent of global crude.
Expectations are growing that OPEC will raise its collective production ceiling. However, Iran’s oil minister walked out of a key meeting with OPEC peers, as a rift deepened with regional rival Saudi over its push to ramp up the cartel’s oil output.
Sterling rallies
The British pound rallied after traders viewed a Bank of England monetary policy meeting as boosting the odds of an interest rate hike this summer.
This time, the vote to keep rates unchanged was 6-3, with three members voting to lift rates. Only two central bankers supported a hike at the last meeting.
“The bank kept its policies unchanged at this meeting, as expected, but the tone of the meeting was somewhat more hawkish than expected,” said Silvia Dall’Angelo, senior economist at Hermes Investment management.
Among individual companies, Dow member Intel dropped 2.4 percent after Brian Krzanich resigned as chief executive over a consensual relationship with an employee that violated a company non-fraternization policy. Chief Financial Officer Bob Swan will serve as interim chief executive while the company searches for a replacement.
Online retailers fell after the US Supreme Court decided US states had broad rights to tax online sales of goods and services. Amazon fell 1.1 percent and eBay dropped 3.2 percent.
Key figures around 2100 GMT
New York – Dow Jones: DOWN 0.8 percent at 24,461.70 (close)
New York – S&P 500: DOWN 0.6 percent at 2,749.76 (close)
New York – Nasdaq: DOWN 0.9 percent at 7,712.95 (close)
London – FTSE 100: DOWN 0.9 percent at 7,556.44 (close)
Frankfurt – DAX 30: DOWN 1.4 percent at 12,511.91 (close)
Paris – CAC 40: DOWN 1.1 percent at 5,316.01 (close)
EURO STOXX 50: DOWN 1.1 percent at 3,403.37 (close)
Tokyo – Nikkei 225: UP 0.6 percent at 22,693.04 (close)
Hong Kong – Hang Seng: DOWN 1.4 percent at 29,296.05 (close)
Shanghai – Composite: DOWN 1.4 percent at 2,875.81 (close)
Euro/dollar: UP at $1.1607 from $1.1572 at 2100 GMT
Pound/dollar: UP at $1.3245 from $1.3172
Dollar/yen: DOWN at 109.96 yen from 110.36 yen
Oil – Brent Crude: DOWN $1.69 at $73.05 per barrel
Oil – West Texas Intermediate: DOWN 17 cents at $65.54 per barrel — AFP

China's Xi denounces 'protectionism, isolationism and populism'

Chinese President Xi Jinping Thursday lambasted “protectionism, isolationism and populism” and again vowed to open up Asia’s largest economy, as Beijing faces an escalating trade dispute with the United States.
Xi told a gathering of foreign business executives that after “signs of stability and improvement in the world economy” last year, “we must also stay vigilant because … we have seen a surge of trade protectionism, isolationism and populism”.
The leaders of mining giant BHP Billiton, German carmaker Volkswagen and British conglomerate Swire were seen at the meeting according to images from Chinese state television.
Trade relations between Beijing and Washington risk descending into all-out conflict, with US President Donald Trump having threatened to impose tariffs on almost all of Chinese exports to the United States.
Without mentioning the Trump administration, the Chinese president condemned “Cold War mentalities and zero sum games” where exporting countries are seen as the only winners of trade exchanges.
“The peace and development of the world faces more and more severe challenges,” Xi cautioned.
China’s head of state also reiterated his promises of economic openness made in April at the Boao Forum for Asia, the “Chinese Davos”, where he promised to accelerate the opening up of the Chinese financial sector.
In spite of Beijing’s conciliatory tone, Western companies complain about unfulfilled pledges and a tough business climate in the country due to factors such as internet censorship and unfavourable regulations.
In a survey released Wednesday by the European Union Chamber of Commerce in China, nearly half of European firms said it had become “more difficult” to do business in the past 12 months.
And a fifth said they have been victims of forced technology transfers, a practice denounced fiercely by Washington as it carries out a probe on the issue while threatening tariffs in retaliation. — AFP

Easy as A, B, Xi: China gives economic lessons to North Korea

Chinese President Xi Jinping has coached his North Korean counterpart Kim Jong Un on high-stakes diplomacy. Now he seems poised to give the young autocrat another lesson: how to reform a state-controlled economy while keeping an iron grip on power.
Beijing has long pushed for Pyongyang to adopt similar measures to those that fuelled China’s dizzying ascent from a communist backwater to one of the world’s largest trading powers.
But while the highly secretive, nuclear-armed North has been quietly carrying out economic reforms for some time, officially it still promotes the merits of its system and denounces the evils of capitalism.
In recent months, as relations between China and North Korea have experienced a renaissance, Kim has transformed from a recalcitrant and standoffish troublemaker to Xi’s eager pupil.
The shift followed a decision by Beijing to back UN sanctions banning imports of coal, iron ore and seafood from its unruly neighbour, after years of hushed diplomacy failed to convince the North to stop its nuclear and missile tests.
It didn’t take long for Kim to change his tune: he made his first visit as leader to his country’s sole major ally in March, quickly followed by two more trips, during which he toured Chinese tech and science hubs.
Kim, who is in his mid-30s, seemed eager to learn: Chinese state media has been filled with images of the attentive leader taking copious notes during his meetings with Xi.
“We are happy to see that the DPRK (North Korea) made a major decision to shift the focus to economic construction,” Xi told Kim in their most recent meeting Tuesday, according to state news agency Xinhua.
“China is ready to share its experience” with Pyongyang, Xi said the next day.
China as a model
China’s “reform and opening” under Deng Xiaoping in the 1980s started an economic boom that has made it the world’s second-largest economy and a crucial driver of global growth.
Despite pressure from Beijing to follow its example, in public Kim had appeared resistant, in 2016 decrying “the filthy wind of bourgeois liberty and ‘reform’ and ‘openness’ blowing in our neighbourhood”.
But in practice he has brought in limited changes, from allowing private traders to operate in informal markets to giving state-owned enterprises some freedoms to operate, and turning a blind eye to private company operations.
Having completed the development of his atomic arsenal, Kim announced in April that his priority was now “socialist economic construction”.
A delegation from his ruling Workers’ Party of Korea visited Beijing in May to learn about economic reforms.
At a historic summit with US President Donald Trump in Singapore last week, Kim expressed his commitment to the denuclearisation of the Korean peninsula — and Washington is offering him sanctions relief if he gives up his weapons.
The summit also saw Kim take the opportunity to explore the affluent city-state, with images of his visit to an expensive hotel, casino and other tourist sites widely distributed by North Korean media.
The visit bore “a certain historic resemblance” to a 1979 trip by China’s then-leader Deng to the United States as the country stood on the verge of economic reform, said Zhao Tong, North Korea specialist at the Carnegie-Tsinghua Center in Beijing.
Deng was able “to see for himself the successful development of western countries”, said Zhao, who predicts that North Korea has now reached its own major turning point.
Afraid of collapse
Before leaving Beijing on his latest visit this week, Kim toured an agricultural technology park and a rail traffic control centre.
“It looks like this trip is aimed at studying China as a model for economic development post-denuclearisation,” said Koh Yu-hwan, professor of North Korean Studies at Dongguk University, pointing to the attendance of Pyongyang’s chief economic officer Premier Pak Pong Ju.
The collapse of the Soviet Union in the early 1990s has so far deterred North Korea from opening up its economy as much as China would like.
But Beijing has spelled out to North Korea that it believes its economic success was achieved thanks to the help of a stable Communist regime.
“China has been saying to North Korea for years that it’s possible to maintain a one-party regime while opening up to the outside world,” said China expert Jean-Pierre Cabestan of Hong Kong Baptist University.
Xi’s tightening grip on power since coming to power in late 2012 — with a lack of organised opposition and the use of surveillance technology to keep tabs on the population — will likely help reassure Kim, Cabestan said.
Despite its fear of failure, “at the moment there is no other option” for North Korea other to open up, said Zhu Feng, international relations professor at China’s Nanjing University.
However a prosperous South Korea complicates the situation for the North, which may fear being swallowed up by Seoul economically if they reunify, as happened to the former East Germany, Cabestan said.
For the time being, Pyongyang’s official line remains the same.
Capitalism “is a corrupt society rushing headlong into its doom”, the state-run Rodong Sinmun newspaper wrote last week.
— Patrick Baert, AFP

Vibrant than ever

Comprising the provinces of Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales, Central Luzon plays a huge role in the Philippine economy. It remains the biggest producer of rice, the country’s most important staple crop, hence its “Rice Granary of the Philippines” title. But the region’s economy has become more diversified, thanks to developments like the economic zones in Clark and Subic, both in Pampanga.

According to the National Economic and Development Authority Regional Office 3 (NEDA 3), the gross regional domestic product (GRDP) of Central Luzon grew 9.3% in 2017. Though the rate was slightly lower than the 9.5% posted in 2016, the agency noted in an April press release that it was still the third highest among the regional economic growth rates in the country. Furthermore, Central Luzon contributed 0.6 percentage point to the country’s 6.7% GDP growth rate last year.

“All three economic sectors namely Agriculture, Hunting, Forestry and Fishing (AFF), Industry and Services and all sub-industries except Mining and Quarrying posted positive growths. NEDA 3 keenly awaited the 2017 GRDP estimates because historically, GRDP growth in the region tended to be much lower a year after a high growth is recorded,” the agency said.

But when the estimates finally came in, the agency was pleased that the region was able to sustain a high growth, despite it being a few percentage points lower this time. “Further, the 2017 growth remains higher than the national growth rate of 6.7%. The region is even steadily increasing its share of the country’s GDP from 9.7% of the country’s GDP, up from 9.5% in 2016 and from 9.3% in 2015,” the agency said.

“Central Luzon is thus realizing its role of becoming the primary contributor to the country’s economy.”

The region’s 9.5% GRDP growth rate exceeded the upper-range target of 6.9% set by NEDA 3’s Central Luzon Regional Development Plan (CLRDP). This plan, which covers the years from 2017 to 2022, follows the Philippine Development Plan 2017-2022, a blueprint for the country’s development under President Rodrigo R. Duterte’s administration.

NEDA 3 said the plan also has targets for poverty reduction and employment rates to see if economic growth truly benefits the vulnerable segments of the population. “In terms of employment, the PSA estimated that the region’s employment rate in 2017 was 93.4%, which is a slightly lower than the target 93.7% set for the year,” it said.

As the implementation of major infrastructure projects planned for the region starts, more jobs are expected to be created. One such project, the agency noted, is the 9,450-hectare development of New Clark City in Tarlac. Part of this is the development of a 200-hectare Administrative Center where a number of government offices will be located.

“The Department of Transportation (DoTr) Central office has already relocated in Clark. Secretary Mark A. Villar of the Department of Public Works and Highways (DPWH) recently stated that the agency will soon follow the lead of DoTr, and more agencies are expected to tag along,” NEDA 3 said.

A 20,000-seater athletics stadium and a 2,000-seater aquatics centers are already being constructed in the New Clark City. “These will serve as venues for the athletics and water sports during the 30th Southeast Asian Games which will be hosted by the Philippines in 2019. In addition to Clark, Subic and Bulacan are also going to be venues for the SEA games,” the agency said.

Another infrastructure project that the region will see is the Manila-Clark railway. The groundbreaking for the said project was held early this year in Marilao, Bulacan. Meanwhile, the feasibility study of the Cavite-Corregidor-Bataan Interlink Bridge to strengthen the connectivity and economic agglomeration between Central Luzon, Metro Manila and CALABARZON, the agency said, was being undertaken by DPWH.

“Flood management and vulnerability reduction programs will be vigorously pursued to protect existing assets from the destructive forces of nature, and to strengthen the overall resiliency of the region,” NEDA 3 added.

When it comes to poverty, NEDA 3 noted that an update to Central Luzon’s poverty incidence of 11.2% will not be available until next year. “However, the very good economic performance of the region in 2016 and 2017 and the jobs generated by the various infrastructure projects, suggest that poverty rate had likely lowered to the CL-RDP target 10.6 percent in 2017,” it said.

In addition to the abovementioned developments, Central Luzon managed to ramp up its palay production by 8.73% from 3.34 million metric tons (MT) in 2016 to 3.63 million MT in 2017, according to data from the Philippine Statistics Authority (PSA). In the final quarter of 2017, which saw palay production reach 7.32 million MT (which was higher than the 7.01 million MT recorded in the same period of 2016), Central Luzon bested all other regions in terms of incremental increase in production.

“The regions that contributed significant increments in production were Cagayan Valley (2.40%), Central Luzon (3.15%), Bicol Region (0.74%) and Central Visayas (0.59%),” PSA said in a January release. The agency noted that one of the factors to which the increases in output were attributed was the increased yield in Central Luzon resulting from the use of better seeds, close monitoring of pests and diseases and sufficient water supply.

Pampanga: A beacon of Philippine culture, history, economy

As Metro Manila struggles with the country’s continued economic growth, developments of another kind are happening in Pampanga. As one of the areas included in the government’s massive Build, Build, Build infrastructure program, the culinary capital of the Philippines is having a turn at the spotlight.

Billions of pesos from the public and private sectors are surging into the Clark Freeport area, from the construction of additional property estates, to the various attractions, recreational venues, and local businesses that have popped up in anticipation of the Clark International Airport’s expansion.

The Clark International Airport New Terminal Building had begun construction in the fourth quarter of 2017 and is slated for completion in 2020. The goal of the project, under the government’s infrastructure plan, is to provide a new mass transport system to help solve congestion in the country’s main urban centers, and create interconnectivity in the whole archipelago. Other infrastructure projects in the area include the Manila-Clark Railway and the Subic-Clark Railway.

New Clark City, a planned community in Capas, Tarlac, is rising up to be a national cultural beacon and could become a key destination in the ASEAN region, as the main host of the 2019 Southeast Asian Games. Also one of the big ticket projects of the Build, Build, Build program, New Clark City upon completion will be the country’s first smart, green and disaster-resilient city. It will feature a mixed use area consisting of residential, commercial, agro-industrial, educational institutions, and information technology developments.

Key infrastructure developments in Clark are boosting Central Luzon’s gross domestic product (GDP). According to the Bases Conversion and Development Authority (BCDA), the government body in charge of the area’s development, Central Luzon’s economic output grew to 9.3% in 2017, almost 3% higher than the country’s GDP of 6.7% for the same year.

Foreign investors are looking in, and international names like the Marriott Hotel, Sunvalley Hilton, and Aqua Planet are shaping the future landscape of Clark Freeport.

According to a statement by BCDA, Central Luzon business chambers are attributing the growth to the high-impact projects like New Clark City, the Clark International Airport, the Manila-Clark Railway and the Subic-Clark Railway.

“I commend the Duterte administration for making Clark a part of the country’s economic strategy as the region has been experiencing an influx of new businesses and investments for the past five years,” Pampanga Chamber of Commerce and Industry, Inc. President Jess Nicdao said.

Mr. Nicdao also noted the huge potential of Clark International Airport as a major gateway with the passenger capacity expected to increase to 8 million a year upon completion of the new terminal building.

“Passengers coming from north of Metro Manila are using the airport as it is more convenient compared to the Ninoy Aquino International Airport,” Mr. Nicdao said.

Elsewhere in Pampanga, local developers are rushing to keep up with the demand for new properties located in the river province. Pampanga’s potential as a national economic powerhouse is creating a demand for residential and commercial spaces that real estate developers like Filinvest, SMDC, and Megaworld are loathe to pass up.

Among them, properties like Ayala Land’s Alviera, a 1,125-hectare integrated township located in the municipality of Porac; Century Properties’ The Resort Residences at Azure North, a 8-hectare mixed-use development in line with its Azure Urban Resort concept in Parañaque; Vista Land’s Camella Homes project, which continues to build communities throughout the province, are giving Filipinos the incentive to leave the hectic life of Metro Manila behind in favor of Pampanga’s distinctive allure.

Historically, Pampanga has always been an important province to the country. During the Spanish regime, it was one of the richest Philippine provinces, functioning as a trading hub for Manila and its surrounding region. Kapampangan agricultural, fishery and forestry products as well as on the supply of skilled workers were abundant. It also played a key role for the Americans during their occupation, and even served as a critical base of operations during the second world war.

A province of rich history and culture, Pampanga still holds the prestige as home to some of the Philippines’ most prominent people. From presidents like Diosdado Macapagal, and his daughter, Gloria Macapagal-Arroyo, to artists like acclaimed movie director Brillante Mendoza and esteemed singer Lea Salonga, the province has given the Philippines so much of its identity. Despite all this, as more attention is given to it and the more it grows as a center of economic activity, clearly Pampanga can still offer much more. — Bjorn Biel M. Beltran

Empowering Filipinos financially

Some would frown upon hearing about multi-level marketing, which is usually confused with scams or fraudulent schemes. However, these kinds of businesses — along with network marketing and direct selling — are accepted as a legitimate sales and marketing method, which have financially empowered many individuals regardless of economic stature throughout time.

Multi-level marketing is usually defined as a mode of business wherein products are directly marketed or sold to consumers instead of the traditional way of selling products from a fixed retail location.

Reports indicate that in recent years, direct selling has gained a strong foothold in the country as a retail option. In fact, citing a 2016 report from Euromonitor International, the Direct Selling Association of the Philippines (DSAP) noted that direct selling in the Philippines continues to grow as more Filipinos from the lower-income segment — which holds a large share of the population — choose to purchase products from this channel due to the availability of installment payment schemes and familiarity of consumers towards sellers, which are usually relatives or close friends.

DSAP further cited the report and said that there is also a notable percentage of the population who were encouraged to enter direct selling and become sales agents because of the minimal start-up requirements and the limitless profits and opportunities that they can gain from it.

Separate media reports noted that direct selling is one of the major alternative sources of income or as a means of augmenting finances for some, especially among women. It is also said that one of the advantages in direct selling is its flexibility — allowing individuals who are either employed or unemployed to earn extra income at their own pace and time.

Moreover, it is said that Filipinos opt to be involved in this industry because it doesn’t require business experience or high educational background.

Apart from the income-generating opportunities and financial success multi-level marketing and direct selling presents, individuals who engage in the business also have the opportunity to be mentored and trained by companies involved in the industry.

According to some  companies, they invest in harnessing the potential of its members by developing their personality, entrepreneurial skills, and leadership skills among others.

DSAP, for example, made initiatives in educating the public about direct selling through various programs as indicated in the association’s Web site. DSAP said that as service to its members, they invite speakers from related fields to help them benchmark against other industries.

In a larger perspective, DSAP reportedly said that as membership in direct selling grows, these sellers generate income for themselves, pay taxes, and generate employment — thus contributing to the development of the country.

Meanwhile, the future of direct selling in the country seems to have a healthy outlook. According to a 2018 report by Euromonitor, direct selling continues to allure Filipinos who aim to better themselves.

“Direct selling seeks to exploit the market potential through a network-centric business model, often with an emphasis on health and beauty products. The prevalence of underdeveloped retail markets and the growing obsession with health amongst women make direct selling alluring to Filipinos who are looking for economic power, and those looking to better themselves via self-improvement.”

Avon Cosmetics, for example, as cited by Euromonitor, can reach far-flung provinces, beating even the expanding reach of shopping centers and online retailing in the Philippines.

On the other hand, the report continued to note that companies selling products related to wellness is seen to benefit from the rise in concern for healthy living. Euromonitor noted that a recent Asia Pacific Sports Nutrition Survey reported that seven out of 10 Filipinos consumed some form of supplement in the last six months.

Meanwhile, separate reports indicate that direct selling is thriving despite the rise of e-commerce and convenient online shopping as Filipino consumers continue to trust products that are recommended by families and friends.

While network marketing or direct selling creates boundless opportunities, companies warn of fraudulent schemes like pyramiding that disguises as legitimate direct selling enterprises.

DSAP defines pyramiding as an illegal money scam often confused with legitimate network marketing plans, where people are convinced to pay money for a chance to profit from the payments of others who might join later.

But, how to differentiate legitimate ones from the frauds? Experts say that pyramiding usually involves entities primarily earning by recruiting other people with the latter paying registration fees to join the pyramid scheme.

DSAP, on the other hand, suggested to consider some factors first before joining a multi-level marketing or direct selling company. The association advised to consider if companies have a product and that these products have fair market value, or if there is a reasonable product return policy among other factors to make sure that the enterprise you are joining is legitimate. — Romsanne R. Ortiguero

Turning potentials into successes

Network marketing or multi-level marketing (MLM) remains a popular business model today but is anchored with an undesirable reputation. Many people often associate the word “scam” to this strategy as many pyramid schemes attempt to present themselves as legitimate MLM businesses. The bad image of this strategy makes it harder for many distributors and MLM companies to get ahead and be successful.

There are several ways to succeed in the world of direct selling such as building self-confidence, developing excellent communication skills, and creatively introducing the products to the others. But before distributor gets this far, it must actually start with an understanding on what network marketing is and how to properly look at it.

According to Don Teague, an online marketer based in United States, a distributor must understand that network marketing is a business opportunity and not a get rich quick scheme.

“Any network marketing opportunity should be considered a business opportunity and not a get rich quick scheme. Any reputable opportunity is going to take hard work. If it were a ‘simple’ way to get rich quick, would anyone really tell you about it? You should also treat anyone whom you may do business with as a potential business partner. The only way to be successful in network marketing is to have a network of trusted alliances, who can help build your business foundation,” Mr. Teague said.

And since many people see network marketing and a pyramid scheme as the same thing, a distributor must know its difference. Mr. Teague cited an excerpt from a statement made by the Federal Trade Commission, an independent agency of the US government that protects consumers and promotes competition, to show the discrepancy of the two.

“Multi-level marketing programs are known as MLM’s, and unlike pyramid or Ponzi schemes, MLM’s have a real product to sell. More importantly, MLM’s actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales,” the excerpt reads.

In the Business Reference Guide of Amway Corporation, the world’s top direct selling company, Amway presented tips to succeed in MLM business.

“Building a balanced business requires three components: use the products yourself so you get to know them better, sell the products to customers, and help new IBOs (Independent Business Owners) to do the same,” Amway said.

The company explained that product sales are the key to earning money, so an IBO should think of the products the customers would likely order again and again by experiencing it firsthand.

“Product experience is the best tool,” Amway said, noting that being familiar with the products help an IBO talk about the products with confidence and make it easy to sell to customers. “Share your favorites, and friends and family will likely be interested in buying them too,” the company added.

After becoming familiar with the products and introducing them to customers, the last key to succeed in MLM, according to Amway, is to build for profitability. This can be achieved by expanding the business and sharing the MLM opportunity through sponsoring others.

In the case of Amway, the IBO may earn monthly performance bonuses based on its sales, as well as on the monthly and annual leadership bonuses based on the sales of downline IBOs.

These tips are actually the structure to stride the ladder of success in MLM, and it still depends on the capacity of an IBO or distributor to get through it, specifically in selling the products and building the network.

Social media seems like an obvious choice for marketing; there is Twitter and Facebook. But as Mr. Teague explained, there are still other social networking sites and there is a best way to post content over these 50 websites at once.

“Sure, you know about Twitter and Facebook. However, did you know there are over 50 different websites that could be considered a social network site?” he said. “OnlyWire.com will allow you to post your content to 50 social networks through one easy platform.”

Blogs are another great tool to build network marketing opportunity. However it takes work to build a blog, with one of the most important factors being regularly updated quality content, Mr. Teague said. In this matter, consider automating the posts through software packages that have the ability to schedule posts, and have them go ‘live’ on the site at preferred date and time.

Another tip for building network marketing business is webinars. Mr. Teague explained that a webinar is a great way to share your message with a large group of people at one time. “You could hold a webinar each week with continually updated content, which would keep people coming back for more if your content is valuable,” he said. — Mark Louis F. Ferrolino

Koreas discuss reunions for war-separated families

North and South Korea on Friday held Red Cross talks to discuss resuming reunions for families separated by the 1950-53 Korean War, the latest step in the diplomatic thaw on the peninsula.
Millions of people were separated during the conflict that sealed the division between the two Koreas nearly 70 years ago.
Most died without having a chance to see or hear from their relatives on the other side of the border, across which all civilian communication is banned.
The resumption of the family reunions — last held in 2015 — was one of the agreements reached between North Korean leader Kim Jong Un and the South’s president Moon Jae-in at their landmark summit in April.
Only about 57,000 people registered with the South Korean Red Cross to meet their separated relatives remain alive, most of them aged over 70.
Even if reunions are arranged, only 100 participants from each side will be selected.
For the lucky few chosen to take part, the experience is often hugely emotional, as they are given only three days to make up for decades of time apart, followed by another separation at the end, in all likelihood permanent.
“Let’s make the meeting a success by conducting it from a humanitarian perspective,” said the South’s chief delegate Park Kyung-seo, as he began discussions at North Korea’s scenic Mount Kumgang resort.
Pak Yong Il, Pyongyang’s chief delegate, responded: “The fact that the North and South are holding the first Red Cross talks in our famous Mount Kumgang is meaningful in itself.”
The reunion programme began in earnest after a historic inter-Korean summit in 2000 and they were initially held annually, but strained cross-border relations have made them rare.
Pyongyang has a lengthy track record of manipulating the divided families’ issue for political purposes, refusing proposals for regular reunions and cancelling scheduled events at the last minute.
North Korea has previously demanded it will not agree to family reunions unless Seoul returns several of its citizens, including a group of waitresses who defected from a restaurant in China. — AFP

YouTube offers creators new ways to earn money

YouTube, often criticized for not compensating creators well enough, will allow them to set up paid channel memberships, the company said on Thursday.
Currently the vast majority of revenue at the Google-owned service comes from advertising and that will remain a focus, said Neal Mohan, YouTube’s chief products officer.
“But we also want to think beyond ads. Creators should have as many ways and opportunities to make money as possible,” he said.
Viewers will pay $4.99 a month for channel memberships giving them access to exclusive content including livestreams, extra videos or shout-outs on channels with more than 100,000 subscribers.
Creators will also be able to sell merchandise like shirts or phone cases directly on their channels, the company said.
YouTube returns a small part of its advertising revenue to content creators who regularly accuse the platform of giving them only crumbs.
The site is facing increasing competition from other platforms using more and more video.
YouTube says it has more than 1.9 billion users but the figure only counts those who log in via their accounts. — AFP

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