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France looks to Philippines as partner for developing legal framework to strengthen Paris Agreement

FRANCE has invited the Philippines to be its partner in developing a legal framework that would promote environmental justice, intended to protect those who are most vulnerable to climate change, in line with the Paris Agreement, according to Senator Loren B. Legarda. In a statement, Ms. Legarda, chair of the Senate committee on climate change, said: “This new framework can strengthen the goals of the Paris Agreement, and I believe the Philippines can be France’s strong ally in this initiative. A strengthened climate partnership between an industrialized nation like France and a vulnerable developing country like the Philippines would inspire other nations to move forward with the implementation of the Paris Agreement even with current challenges, such as the US President’s decision to withdraw from the accord.” Ms. Legarda is part of the eight-member Senate delegation that went on a three-day visit to France on June 27-30 to meet with French counterparts in commemoration of the 70th anniversary of the signing of the Philippines-France Treaty of Friendship. — Jil Danielle M. Caro

Our transport system, communal pride, and united future

Introspective

By Raul V. Fabella

I allowed myself a moment of elation at the announcement of the railway link between Clark and Metro Manila. Such moments are rare in the desert of “sombriety.” It meant that the government has finally decided, after what seemed like an endless Caspar Milquetoast moment, that the best way to address the air transport gridlock into and out of Metro Manila was to make Clark International Airport as an alternate global gateway. Indeed, it has for some time dawned on many that Clark should have been upgraded as a global gateway even without the fast train link with Metro Manila.

Those of us who live in North Metro Manila now face a shorter daytime motor travel time to Clark International Airport than to NAIA. Furthermore, the waiting time for a landing clearance in traffic-jammed single-runway NAIA could drag to outrageous lengths, sometimes even longer than the actual flying time from origin. Clark International Airport with two runways runs no such risk. After debarking at and hurdling the inundated customs clearance in a creaky throwback called NAIA Terminal 1, one runs the gauntlet of Metro Manila’s infamous traffic crawl amidst unsightly urban blight and squalor. By this time the new arrival is asking the question “What’s more fun in the Philippines?”

This switch has many other potential benefits. Clark International Airport will serve Central and Northern Luzon apart from North Metro Manila passengers. Logistical and time costs for these travelers will drop even without the fast train facility. South Metro Manila, Calabarzon, and Bicol passengers will get a better deal from de-clogged NAIA. Imagine the amount of vehicular traffic now jostling for space in EDSA that will dematerialize. Still, it took a financial inducement from Japan for a fast train link to clinch the no-brainer deal for Clark International Airport. Although the speed train link condition itself seems to me to smack of Manila-centrism, still am I grateful. In this day and age, we should be thinking of decompressing Metro Manila; creating new regional centers of commerce and industry does that. This would reverse the population and capital crush towards Metro-Manila causing its infrastructure to buckle. There is however a great gulf between imagination and birthing. The present resolve could again founder on the rocks of social incoherence.

That others are skeptical is understandable. Recall NAIA Terminal 3, delivered in 2002 but unable to take off because of the potholes of endless lawsuits. Recall the San Roque Dam’s irrigation potential for 70,000 hectares left high and dry by our social inability to iron out solutions to a conflict of interests. And instead we talk endlessly of irrigation-deficit. Boo Chanco’s (The Philippine Star, June 28, 2017) warning that business-as-usual, rather than “change is coming” politics is threatening to derail the “Build Build Build Program” is better heeded. Would-be presidents are lining up funding this early. Scarier still is the chipping away at the transparency and accountability system painstakingly built up by former DPWH Secretary, Babes Singson. Contrast this sad state of serial failures with such robust collective action achievements as the Three Gorges Dam in China and the Seoul-Pusan highway in South Korea. We are, in the parlance of political science, flaccid at collective action, unable to ‘act in concert’ for big projects. Is it any wonder that our arterial infrastructure is a constant source of embarrassment for citizen and nation? Whence is this flaccidness?

Historian Ambeth Ocampo (Philippine Daily Inquirer, 06.28.2017) did the nation favor by digging up a report by Miguel Lopez de Legaspi, dated July 1569. Segments of the report are worth repeating (emphasis mine):

“The inhabitants of these islands are not subjected to any law, king, or lord… the people do not act in concert or obey any ruling body; but each man does whatever he pleases and takes care only of himself and his slave… These people declare war among themselves at the slightest provocation, or with none whatsoever…”

Echoes of Thomas Hobbes’s rendition of pre-civilized life as a “warre of all against all” (Leviathan, 1668) almost a century later. We of course know that hyperbole in a report to Legazpi’s patron, the King of Spain, is only natural. We are aware of the 16th century European, but especially Iberian, bias against Indios and the need to justify colonial occupation. Joseph Conrad’s description of the African Congo River delta as Heart of Darkness (1902) demonstrates this bias’ historical tenacity even as he raised the question of whether Europe, which covets the bounty from African ivory trade and foments mayhem to defend it, is guiltless of such savagery. Still and all, Ocampo’s reading of Legazpi’s observation as “painfully relevant to the present” cannot be lightly dismissed. It seems that our social incoherence may have preceded the oft-blamed colonial experience.

Ours is a painfully incoherent society. At a drop of a hat we are less likely to vocalize than to TRO. President Duterte’s “war on drugs’ echoes Big Brother’s (George Orwell, 1984) attempt at closing the ranks of the popular sentiment if without the same success. One cannot close ranks around a state of embarrassment. One closes ranks around a state of great elevation and self-affirmation. The Beijing-Llasa railway does this for China; the Seoul-Pusan Highway did it for South Korea. Duterte will start to bind the nation better with a few game-changing infrastructures like the One Philippine Power Grid tying together Luzon, Visayas and Mindanao.

A world class throw-forward airport terminal and a fast train from Clark International Airport to TriNoma-North SM complex run by an accountable private concessionaire will begin to chip away at the embarrassment for arrivals headed south. For those heading north to Baguio, the SCTEx and TPLEx will greet the arrivals with the hope and promise of harvest rather than with sickness in the gut. A rational and well-run transport system will begin to reconstruct our self-belief, our communal pride and ultimately reprogram our collective neural networks towards “acting in concert” for the future.

Raul V. Fabella is a retired professor of Economics at the University of the Philippines and a member of the National Academy of Science and Technology.

A tribute to Tita Saling

Yellow Pad

By Filomeno S. Sta. Ana III

Her full name is Rizalina Bautista Boncan. Friends call her Saling. We call her Tita Saling — the loving, caring aunt, even to non-relatives.

To name a daughter after Jose Rizal can be forbidding, but Saling lived up to it: enlightened, courageous, patriotic, heroic.

On a deeply personal level, I was pained and shaken when I received from my friend Mike Limjap the tragic news about the passing away of our dear Tita Saling. In truth, I felt a tinge of guilt for not having visited her in the past few years.

A few Fridays ago, before Tita Saling’s passing, Mike and I had dinner, and I asked him how she was. Mike said Tita Saling was hale and hearty when he saw her during the family Christmas reunion. I was relieved to hear that from Mike because the last time I talked to Tita Saling to belatedly inform her of my wife Mae’s death, I sensed that she was fragile.

More recently, another friend, Jessica Reyes-Cantos, asked me to invite Saling to a reunion of former Freedom from Debt Coalition (FDC) people. Saling was the FDC’s founding treasurer. I failed to contact Tita Saling; neither was I able to join the get-together.

Much earlier, my mom Paula asked me repeatedly to arrange a dinner with Tita Saling. My mom and Saling were, for a short time, classmates during their childhood. Again, I was not able to do this.

At the time that Mae was undergoing dialysis treatment, she reminded me several times that it was high time we visited Tita Saling. Mae and I considered Tita Saling a close friend and a second mother.

Once upon a time, Mae and I visited Tita Saling every Christmas season, and we exchanged gifts. Her son Raul, Jr., whom Tita Saling fondly called Raulito, narrated to me how “she would vigorously prepare the Christmas lunches you and Mae would have at home. She made sure that every detail was promptly given attention so her well-loved visitors would feel right at home.”

Sometimes, when Saling would cook and deliver food for her brother who resided at UP Village, she would surprise us with a visit at our home, which she called a Swiss house because of its gabled roof and expanded eaves.

Occasionally, we had lunch in restaurants near her home. In one instance, her fellow smoker, neighbor and girlfriend, Tita Maring Feria, joined us for lunch. The conversation was filled with tsismis and jokes, mainly about Marcos and minions and sometimes about Saling’s and Maring’s mischievous mayor, Jojo Binay.

A favorite restaurant of Saling was the one on Jupiter Street, which served crackling lechon Macau. No fancy and expensive restaurant for her. One time, Mae and I brought her to the Corner Tree. Upon learning that the food, though delicious, was pricey, she told us that she&#8217;d be as satisfied with the food served in a <i>carinderia</i> or in Max&#8217;s.

True to her Ilocano roots, she lived simply despite being materially endowed. She knew how to husband resources and let the money grow. (That was why she was elected FDC treasurer.) In her 80s, she opted to do away with the car and chauffeur, preferring to walk to go to Mass or take a tricycle to buy food at a nearby <i>talipapa</i>, or hail a cab to purchase groceries at Landmark.

Like Mae, Tita Saling was a storyteller. She shared with us the story of her life. Like all of us, she had sad experiences — World War II, the period of dictatorship, family issues, etc. But because she had a happy, cheerful disposition, the bad episodes neither diminished her nor slowed her down. In fact, her trials and struggles made her a strong woman.

She had copious notes and journals, which she wanted us to edit. They were personal narratives, but also a chronicle of different periods of our nation&#8217;s history, turbulent and euphoric.

In her life, she always helped people, in the city or in the rural areas. She was most generous to those with less in life. And because the adage that those who have less in life must have more in law is violated in the Philippines, Saling joined movements to change the laws and transform the system.

Like Marcos, she was an Ilocano. But she fought Marcos. She had courage. She resisted the dictatorship at a time that it was a lonely struggle.

She was part of the core group of rebel women belonging to the Concerned Women of the Philippines led by Nini Quezon Avance&#241;a. They joined protest actions, campaigned for the release of political prisoners, and asserted human rights.

After the dictatorship&#8217;s downfall, Saling continued to pursue various causes. She became a trustee and treasurer for many years of the broadest coalition then, the Freedom from Debt Coalition. She was part of the FDC leadership that, at various times, included personalities of various professional backgrounds and political persuasions: Liling Briones, Butch Montes, Noel de Dios, Randy David, Bertie Lim, Carol Araullo, Maitet Diokno, RC Constantino, Gani Serrano, Lidy Nacpil, Jolly Macuja, Chito Gascon, Rene Ofreneo, Alex Aquino, Bong Mendoza, Ed Tadem, Viking Logarta, Boy Tripon (+), Boy Morales (+), Pipo Reyes (+), Gon Jurado (+), Aida Lava (+), et al.

Tita Saling was a leader — a heroic and lovable woman. A Rizalina, indeed.

I regret I was no longer able to directly communicate with Tita Saling since Mae&#8217;s passing. There were opportunities, but I missed them. I have to remind myself again of the saying that life is short, and we should not postpone doing things that we wish we did, especially concerning relationships.

Tita Saling will be in my heart, in my thoughts with lots of love.

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

<a href=”http://www.aer.ph” target=”_blank”><i>www.aer.ph</i></a>

Rizalina Boncan (R) with me and my wife Mae, taken sometime in 2013.

Dealing with Duterte

Streetwise

By Carol Pagaduan-Araullo

Bad news for the peso

Corporate Watch

Amelia H. C. Ylagan

President Rodrigo Duterte’s first year in office was unfortunately marked by a devalued peso, which fell by 7.33% to P50.53 to the US dollar as of Friday June 30, from P47.08 on June 30, 2016 (freecurrencyrates.com, 07.01.2017).
When the peso declined five percent in September 2015 following China’s devaluation of the yuan, the Bangko Sentral/National Treasury “adopted a managed float that swung through changes in investor sentiments, rather than a dollar peg that is harder to defend in times of distress (The Philippine Star 09.15.2015).” The entire Association of Southeast Asian Nations (Asean) has learned their lessons from the Asian financial crisis of 1997/1998 and the global financial crisis of 2008/2009 as they watched debt service and maturities vis-à-vis foreign exchange reserves, and diluted the effects of currency depreciations (Ibid.).

The exchange to the dollar had been below P48 for many years in the peso’s managed float (from 1993 to present) as it maintained price stability to sustain economic growth while keeping the peso convertible in a changing and increasingly interdependent world economy (The Philippine Star, 10.31.2016). But even a weak peso has both positive and negative effects on the Philippine economy, according to BSP Deputy Governor Diwa C. Guinigundo (xinhua.com, 09.09.2015). While certain sectors, such as exporters, overseas Filipino workers (OFWs), and the business process outsourcing (BPO) sector, would benefit from a cheaper peso, it would at the same time make imported fuel, raw materials, and other imported goods more expensive (Ibid.).

Leonor Briones, former National Treasurer and at that time back-to economics professor at the University of the Philippines (now incumbent Secretary of the Department of Education under President Duterte) said that the depreciation of the peso is “double-bladed” for the reasons cited by Guinigundo, adding that the government would need more funds to pay for the servicing of the country’s foreign debts which are denominated in US dollars (Ibid.). That September in 2015, the peso plunged to P46.93 pesos to the US dollar, its lowest level in more than five years (Ibid.)

But after just more than a year, the peso broke the critical level of P48/$1 and dived to a seven-year low. The peso was the worst performing currency in Asia vs. the US dollar, which was strengthen ing with the prospects of Fed rate hikes in December. The September depreciation of 4.1% was the worst monthly performance since October 2000, at the height of the political crisis during former President Joseph Estrada’s term. The peso was at its weakest in 16 years. (The Philippine Star, 10.31.2016).

Columnist Wilson Sy analyzed whether the peso is weak on its own or a victim of the US dollar’s strength. He concluded that “contrary to popular notion, the peso’s drop in September was not due to a strong dollar. In fact, the peso was a victim of its own weakness (Ibid.).” Foreign funds became jittery due to negative headlines, and pulled out. The peso weakness caused stock prices to fall, bond yields to go up and credit default swaps to rise. Foreign funds flying out and Philippine asset prices plunging across the board prompted investors to reduce their exposure to the Philippines even more, causing the currency to depreciate further (Ibid.). It was barely three months into President Duterte’s incumbency.

Foreign media was more vocal than local media in tying up the depreciation of the peso to Duterte. “The firebrand Duterte, who is often compared with Trump, has sparked concerns in markets not just for his erratic outbursts, which have included threatening China with a ‘bloody’ confrontation over disputes in the South China Sea (note: Duterte position pivoted 180 degrees as he now avoids clashing with China), but also for pursuing a ‘law-and-order’ agenda that has been blamed for a surge in extrajudicial killings. Murders allegedly have been ordered by the Philippine president during his tenure as mayor of Davao city (CNBC 09.27.2016.).”
Ratings agency Standard & Poor’s affirmed its BBB long-term rating on the country but made a significant inclusion: “We believe this could undermine respect for the rule of law and human rights, through the direct challenges it presents to the legitimacy of the judiciary, media, and other democratic institutions. When combined with the president’s policy pronouncements elsewhere on foreign policy and national security, we believe that the stability and predictability of policy making has diminished somewhat (Ibid.).”
The ratings agency’s warning spooked markets, Joey Cuyegkeng, senior economist for Asia at ING, said: “To make such concern an ‘official concern’ reinforced market’s guarded disposition (Ibid.).” Duterte (reportedly) responded with a profanity-laden speech complaining about ratings agencies and promising to create alliances with China and Russia (Ibid.).

And so on June 30, at the close of Duterte’s one year in office, the peso tumbled to around P50.5, threatening to go to P51 (tradingeconomics.com, 07.01.2017). It must have been seen coming, as core inflation rate increased 2.90% in May 2017 over the same month in the previous year, from a record low of 1.40% in September of 2015. Was all the monetary/economic upheaval some market risk-reaction to the declaration of martial law in Mindanao on May 23, and the reported growing numbers of killed, the estimated massive property, and moral damage to the country and to the people?

Outgoing BSP Governor Amando Tetangco said in May that it (martial law) was a “decisive move” for Duterte. “The main objective is to improve security as well as peace and order situation which should lead to even greater confidence down the road,” Tetangco told reporters (ABS-CBN News 05.24.2017).
Good news bears for the Philippine peso? So we pray.
Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines. ahcylagan@yahoo.com

SC urged: Compel DENR and DoE to review coal plants ‘proliferation’

A GROUP of environmental advocates and lawyers petitioned the Supreme Court (SC) yesterday to compel the Department of Energy (DoE) and Department of Environment and Natural Resources (DENR) to comply with a review om national air quality.

Inside the Philippine Supreme Court — BW FILE PHOTO

Petitioners, through its counsel Jose Manuel I. Diokno, filed a 64-pages petition for continuing mandamus to direct the DENR to “immediately review or revise ambient air quality guidelines values, emission standards for stationary sources, and effluent standards.”

The petitioners also asked the high court to compel the DoE to issue the Renewable Portfolio Standards (RPS). The RPS, according to the DoE’s website, is a “market-based policy that requires distribution utilities and other industry participants to source a portion of their power supply from eligible renewable energy sources.”

The petitioners, who are residents of Bataan, Cebu and Palawan, said the DoE and DENR “have allowed coal plants to proliferate, making the country more, instead of less, dependent on fossil fuels.”

They added that the DENR failed “to administratively prosecute coal plants operating without the Continuous Emission Monitoring Systems (CEMS) and Continuous Emission Opacity Systems (COMS) as required by the Clean Air Act.” The petitioners further asked that the DENR be ordered to disclose the coal plant companies operating without CEMS and COMS.

The DoE, in turn, “neglected its duty under the Renewable Energy Act to formulate Renewable Portfolio Standards (RPS) Rules and to establish the Green Energy Options Program,” the petitioners said.

The DoE, when sought for comment, said in a mobile message by Energy Undersecretary Felix William B. Fuentebella that Energy Secretary Alfonso G. Cusi has repeatedly emphasized the department’s mandate “to ensure the delivery of energy services to consumers.”

“Through his [Mr. Cusi’s] leadership, the DoE is looking at it from the consumers’ point of view. That is the reason why the DoE gives so much weight (to) the available data that will enable consumers and decision-makers to decide the direction it will take,” the agency added.

“In looking at the numbers to meet demand, the capabilities of these renewable energy technologies must still be complemented by the conventional technologies that include nuclear, coal, natural gas and diesel plants,” the agency also said.

The DoE said consumer needs remain their priority in “adopting a demand-driven and technology neutral policy and bases its decision on data.”

The DENR was also sought for comment but is yet to reply as of reporting. —  Kristine Joy V. Patag

Suit Yourself

Smoke and spirits

A combination ‘much like sex.’

Getting the party started with your own home bar

The clink of the glasses, the rattle of the ice in the shaker, and the laughter of your loving friends around you.

Handsome players

Ready for an eargasm?

Eye to eye with death

Hanging out with predators.

Favorite Things | Appreciating time

The cofounder of Bremont tells us about the watch he wants but can never have.

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