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Batanes in the time of COVID

JR PADLAN -UNSPLASH

COVID-19 is no longer a public health emergency nationally and internationally, but have we learned our lessons from this catastrophe? It goes without saying that we must learn our lessons, for the world will inevitably face another pandemic — it is just a matter of when.

One particular concern is learning local lessons. We have heard many stories on the ground, and it is important to document these stories and distill the lessons, which can also apply to other emergencies or catastrophes.

And here Batanes is a good case study: a remote island which is no stranger to calamities and whose people are known for resilience, self-reliance, and cooperation.

The province of Batanes is the northernmost point of the Philippines. The unique setting of Batanes, the smallest province with the smallest population in the Philippines, makes it prone to a variety of challenges, from unstable electricity and cell signal to insufficient water supply. Batanes’ isolation from the rest of the country has often posed problems for its locals.

It has been more than four years since the first case of COVID arrived in the Philippines. Batanes, however, didn’t record a single case until the end of September 2020. In May 2021, after counting 10 cases, the province was declared COVID-free. In the time of COVID, Batanes’ isolation (as well as the provincial government’s stringent quarantine measures) provided an advantage against the crisis that brought the rest of the country to a standstill.

While Ivatans obediently followed the safety measures, some farmers in Barangay Chanarian poked fun at mobility restrictions, such as the “no angkas” policy that prohibited even married couples who lived in the same home from riding the same motorcycle. Others complained that although they weren’t prevented from visiting their farms, they couldn’t leave their homes: they had to stay home to teach their children, sometimes doing their schoolwork for them.

During this time, parents, some of whom had never gone beyond high school, struggled to teach their children, a burden imposed upon them by the “modular” method of distance learning adopted by most public schools. While some argue that “modular learning,” where students are given worksheets to answer in place of in-person instruction, is more equitable than online classes since many public school students lack devices that connect to the internet, the lack of instruction prompted students to search online for answers anyway, causing those in remote and rural areas to struggle more than their urban counterparts. The return of face-to-face classes was met with relief by Ivatan parents, who said they could finally work on their farms and attend association meetings as they needed. The long-term effect of modular learning has yet to be measured, but one farmer says his children, like many others, will graduate grade six “na walang kaalam-alam” (knowing nothing).”

According to an association of mataw fishers, those who engage in traditional means of catching dorado and flying fish during the summer, mobility restrictions did not prevent them from going out to sea. They were, however, prohibited from selling the fish in the town proper, causing a steep drop in income. Until June 2021, when restrictions were loosened, their catch was limited to family consumption. Those who caught more fish than they could store in their freezers gave them away for free. Despite a successful fishing season, they had no income to buy essential goods, such as medicine and household supplies.

While restrictions eased up in mid-2021, the road to recovery was thwarted when, in September 2021, Typhoon Kiko hit Batanes, causing P358-million worth of damage to an already devastated economy. After the typhoon, people ventured out of their homes to look for food, causing a spike in COVID cases and the return of mobility restrictions. Crop production plummeted and many Ivatans suffered, especially families who depended on farming as a subsistence activity. In response to the devastation, locals invoked yaru, the Ivatan word for bayanihan (communal cooperation), when better-off members of the community butchered their own livestock to give away to more vulnerable individuals.

These coinciding disasters proved that provinces like Batanes have a more fraught pathway to recovery than other areas in the Philippines; while the entire country was set back by the pandemic, the devastation was not equal. The natural hazards that are endemic to Batanes compounded the effects of a nationwide health crisis.

Despite its vulnerability, the province struggles to attract funding from the national government: politicians at the national level see little incentive to assist a province with less than 10,000 voters. If this justification of institutional neglect prevails, Ivatans will be left to fend for themselves, with no one to depend on but each other. As the Philippines faces an accelerating climate crisis that is predicted to bring more diseases and typhoons, it is crucial to remember the Ivatans, as there will be a need to redistribute resources from those that have enough to those that have less.

 

Isabel Rodrigo conducted a study for the Samdhana Institute and Action for Economic Reforms on the pandemic’s impact on marginalized communities.

Treasury bill, bond rates may end mixed

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could end mixed amid the peso’s continued weakness against the dollar.

The Bureau of the Treasury (BTr) on Monday will auction off P15 billion in T-bills, or P5 billion each in 91-, 182-, and 364-day papers.

On Tuesday, it will offer P30 billion in reissued 20-year T-bonds with a remaining life of 19 years and 10 months.

T-bill and T-bond rates could track the mixed movements in secondary market yields following the peso’s continued depreciation against the dollar, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

At the secondary market on Friday, the 91- and 182-day T-bills went up by 9.36 basis points (bp) and 8.35 bps and 4.57 bps week on week to end at 5.8663% and 5.9804%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website.

Meanwhile, the yield on the 364-day T-bill went down by 1.7 bps to end at 6.0344%.

The 20-year bond also inched down by 0.31 bp week on week to close at 6.799%.

On Friday, the peso closed at P57.65 per dollar, depreciating by 46 centavos from its P57.19 finish on Thursday, Bankers Association of the Philippines data showed. 

This was the peso’s worst finish since its P58.19-per-dollar close on Nov. 10, 2022.

Year to date, the local unit has depreciated by P2.28 from its P55.37 finish on Dec. 29, 2023.

Mr. Ricafort said the peso sank due to renewed tensions between Israel and Iran.

Meanwhile, the 20-year T-bond’s rate could end at 7% to 7.25%, with bids likely to be rejected as the market continues to be pressured by a hawkish US Federal Reserve, a trader said in an e-mail.

Top US central bank officials including Federal Reserve Chair Jerome H. Powell backed away on Tuesday from providing any guidance on when interest rates may be cut, saying instead that monetary policy needs to be restrictive for longer and further dashing investors’ hopes for meaningful reductions in borrowing costs this year, Reuters reported.

Fed policy makers have said since the start of the year that rate cuts are contingent on gaining “greater confidence” that inflation is moving towards the central bank’s 2% goal, but readings over the past few months show price pressures may even be moving in the opposite direction.

“The recent data have clearly not given us greater confidence and instead indicate that it’s likely to take longer than expected to achieve that confidence,” Mr. Powell told a forum in Washington, in what is likely to be his last public appearance before the April 30-May 1 policy meeting.

US central bankers are universally expected to leave rates unchanged at their upcoming meeting, but until early this month analysts and investors thought rate cuts would likely start with an initial quarter-percentage-point reduction at the Fed’s June 11-12 meeting, with two more cuts happening by the end of 2024.

The first rate cut is expected in September and the odds of a second cut are dwindling.

“If higher inflation does persist, we can maintain the current level of restriction for as long as needed,” Mr. Powell said. “At the same time, we have significant space to ease should the labor market unexpectedly weaken.”

In separate remarks earlier on Tuesday, Fed Vice Chair Philip Jefferson omitted any mention of rate cuts, and said the US central bank was ready to keep its tight monetary policy in place “for longer” if inflation fails to slow as expected.

In his last public remarks, on Feb. 22, Mr. Jefferson included what had been a staple of recent Fed communications – that “if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back our policy restraint later this year,” a nod to the possibility of reducing the Fed’s benchmark overnight interest rate from the current 5.25%-5.5% range to account for a slowing pace of price increases.

Last week, the BTr raised P15 billion as planned from the T-bills it offered as total bids reached P39.831 billion or more than twice the amount on the auction block.

Broken down, the BTr borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P10.939 billion. The average rate for the three-month paper rose by 9.8 bps to 5.87% from the previous week. Accepted rates ranged from 5.824% to 5.895%.

The government likewise made a full P5-billion award of the 182-day securities, with bids reaching P13.632 billion. The average rate for the six-month T-bill stood at 5.973%, up by 8.8 bps, with accepted rates at 5.9% to 5.99%.

Lastly, the Treasury raised P5 billion as planned via the 364-day debt papers as demand for the tenor totaled P15.26 billion. The average rate of the one-year debt went up by 6.1 bps to 6.044%. Accepted yields were from 6.025% to 6.064%.

Meanwhile, the reissued 20-year bonds to be auctioned off on Tuesday were last offered on March 19, where the government made a full P30-billion award of the papers at an average rate of 6.189%, 6.1 bps below the 6.25% coupon for the series.

The Treasury plans to raise P195 billion from the domestic market this month or P75 billion from T-bills and P120 billion via T-bonds.

The government borrows from local and foreign sources to help fund its P1.48-trillion budget deficit, which is capped at 5.6% of gross domestic product for this year. — A.M.C. Sy with Reuters

SEC files criminal complaint versus MFT Group, Foundry Ventures

THE Securities and Exchange Commission (SEC) has filed a criminal complaint against Maria Francesca Tan (MFT) Group of Companies, Inc. and Foundry Ventures I, Inc. for allegedly engaging in illegal investment activities.

The complaint was filed with the Department of Justice (DoJ) on April 5, citing violations of Sections 8, 26, and 28 of Republic Act No. 8799, also known as The Securities Regulation Code (SRC), in relation to Section 6 of Republic Act No. 10175, the Cybercrime Prevention Act, the SEC said in a statement over the weekend.

The SEC also charged MFT Group and Foundry Ventures with violations of Section 54.1 in relation to Section 54.2 of the SRC and Section 177 of Republic Act No. 11232, the Revised Corporation Code, and SRC Rule 68, in connection with material misrepresentations in their audited financial statements (AFS).

“The filing of the criminal case stemmed from complaints submitted by several investors who participated in the investment scheme of the MFT Group, which later transitioned to Foundry Ventures,” the SEC said.

 “The MFT Group allegedly promised guaranteed returns ranging from 12% to 18% of the amount they invested, which was considered as interest income. The scheme was perpetuated through the issuance of postdated checks reflecting a 1% to 1.5% monthly interest to interested investors, who were given either a promissory note or borrower-lender agreement, as proof of their investment,” the SEC added.

The SEC said that Isla Lipana & Co. was also implicated in the complaint, as it served as the independent auditor of the MFT Group and Foundry Ventures for the fiscal years 2018 to 2021.

“In relation to the misrepresentations in the MFT Group’s FS, the SEC found that Isla Lipana colluded with the MFT Group in their fraudulent activities by making it appear that the financial statements of the company were fairly presented despite inconsistencies and inaccuracies in the AFS,” the SEC said.

“Isla Lipana issued an unqualified opinion for the years 2020 and 2021, indicating that the AFS of the MFT Group are fairly presented in all material respects and in accordance with the identified financial reporting framework,” it added.

The commission previously issued a cease-and-desist order against MFT Group and Foundry Ventures. The order was made permanent on April 1.

“We welcome the opportunity to clear our names and are hopeful that the DoJ will exonerate us. From the very beginning, we were never shown a copy of the alleged complaints and it is only now that the SEC produced the alleged complaints for the DoJ,” MFT Group said in a statement.

“Consequently,  we have confirmed that the complaints were spearheaded by personalities we have previously identified as the ones responsible for an online smear campaign and who have ulterior motives to fabricate charges. These are the same personalities we have previously sued for damages,” it added.

Also sought for comment, Isla Lipana said: “We received a copy of the complaint on 19 April 2024.”

“‘Maria Francesca Tan (MFT) Group of Companies, Inc.’ is our audit client. While the name of the company we audit bears ‘Group of Companies,’ we are auditing that company as a stand-alone entity and we are not the auditors of any other company within the group, or the group in general,” it added. 

“The last report we have issued for the standalone company was for the year ended 31 December 2021. We have not yet issued our report for the calendar years 2022 and 2023 pending completion of our audit procedures. We shall fully cooperate with the pending investigation,” it also said. — Revin Mikhael Ochave

Startup fund-raising journey to be explored at La French Tech Manila event on April 25

La French Tech Manila invites aspiring entrepreneurs and established startups to an evening exploring the intricacies of the startup fund-raising journey.

On its Facebook page, La French Tech Manila announced that it will hold a panel discussion themed “Navigating the Startup Fundraising Journey” on April 25, 6:30 p.m. at Seltsam in Legazpi Village, Makati City.

The panel will consist of seasoned veterans in the startup ecosystem who will share their invaluable insights, strategies, and firsthand experiences to guide you through the maze of fund raising.

The speakers include Frederic Levy, chief executive officer (CEO) of social commerce platform TOKIi; Carl Garcia, vice-president of Rocket Equities; Joseph de Leon, founding member of the Manila Angel Investors Network; and Priya Thachadi, founder of Unlock Impact and CEO of Villgro Philippines. The discussion will be moderated by Amanda Cua, CEO of content and community platform BackScoop.

Aside from the discussions, the event will also open networking opportunities to connect attendees with like-minded individuals, industry experts, and potential investors.

This event is co-presented by the French Chamber of Commerce and Industry in the Philippines, iScale Solutions, Inc, and Proseso Consulting.

Those who want to attend may secure their spot by registering at https://lu.ma/event-startup-fundraising.

Isuzu renews partnership with PHL Rallycross Series

Flanking an Isuzu D-Max are (from left) champion rally driver Driver Louie Camacho, Isuzu Philippines Corp. Assistant Division Head for Sales Robert Carlos, and Philippine Rallycross Series Directors Olson Camacho and Ronnie Trinidad. — PHOTO FROM ISUZU PHILIPPINES CORP.

ISUZU PHILIPPINES CORP. (IPC) announced the renewal of its partnership with the 2024 Philippine Rallycross Series. This partnership, which began in 2021, has been “a pivotal part of IPC’s engagement with motorsports, particularly rallycross, where the Isuzu D-Max has showcased its superior power and performance,” the company said in a release.

The Philippine Rallycross Series is sanctioned by the Automobile Association Philippines (AAP), and “provides a platform for rallycross drivers and enthusiasts to showcase their skills and test their vehicles’ performance on challenging dirt tracks.”

IPC Assistant Division Head for Sales Robert Carlos said, “Our renewed partnership with the Philippine Rallycross Series is a testament to Isuzu’s belief in the power and passion of Philippine motorsport. Showcasing our champion Isuzu D-Max, which has triumphed in its category for two years running, we celebrate the relentless spirit of those who dare to push the limits.”

The Isuzu D-Max is known for its “robust performance in rallycross.” It is powered by a robust 4JJ3 Blue Power diesel engine delivering 190ps of maximum power and 450Nm of torque. It boasts a suspension system “engineered to conquer the rigors of rallycross tracks.”

Champion rally driver Louie Camacho, who will be behind the wheel of the D-Max, expressed his admiration for the vehicle: “The performance of the D-Max on the rallycross track is phenomenal. Its unrivaled power, precision control, and superior suspension allow for an exhilarating driving experience that truly stands out,” he said.

Australia pushing farm chemicals regulator reforms

REUTERS

CANBERRA — The Australian government will push the country’s farm chemicals regulator to improve the quality and integrity of its decision-making and reduce its focus on approving pesticides at a consistent pace, it said.

A review of the Australian Pesticides and Veterinary Medicines Authority (APVMA) last year questioned its corporate culture and standard of oversight, suggesting it may have been too accommodating of industry interests.

However, farm and industry groups say turmoil at the regulator due to the review and government reaction to it has resulted in the APVMA taking too long to approve new products and that this is leading to preventable crop losses worth billions of dollars.

Agriculture Minister Murray Watt said that under previous governments, the regulator had a disproportionate focus on approving chemicals within statutory time frames and not enough attention was paid to compliance and enforcement.

He said the APVMA should take a more balanced approach that would elevate environmental and public health considerations, stakeholder engagement and compliance alongside time frames.

“We want to ensure that we have the world’s best chemical regulator, so that consumers and our overseas customers can have confidence in the food and fiber we produce,” Mr. Watt said. “At the same time, the APVMA needs to be structured so that it can independently and efficiently approve new, safe chemicals that help farmers do their job.”

The agriculture ministry said the APVMA would not be moved back to Canberra, the capital. Its removal to the regional town of Armidale in 2019 caused huge staff turnover that damaged its performance, the review of the regulator found.

The review was sparked by accusations that a senior staff member urinated on colleagues at a staff Christmas party in 2021. The APVMA’s CEO and board chair both resigned last year. — Reuters

Taylor Swift surprises with second Tortured Poets Department album

AMAZON.COM

LOS ANGELES — Taylor Swift surprised fans with her new record The Tortured Poets Department on Friday, revealing it was a double album featuring songs about heartbreak and a period described as “the saddest story” of the singer’s life.

Ms. Swift’s 11th studio album, featuring 16 tracks, was released at midnight EDT. Two hours later she revealed a second installment with 15 more songs.

“I’d written so much tortured poetry in the past 2 years and wanted to share it all with you,” Ms. Swift wrote on Instagram.

The Tortured Poets Department came 18 months after 2022’s Midnights.

Spotify said Poets broke the record for the platform’s most-streamed album in a single day this year, achieving the feat in less than 12 hours.

Ms. Swift, 34, has been setting music industry milestones and boosting local economies with The Eras Tour, which resumes in Paris in May.

Time magazine named Ms. Swift its 2023 Person of the Year, citing her musical accomplishments and influence on everything from pop culture to voter registration.

A description of Poets on Instagram said it was “an anthology of new works that reflect events, opinions and sentiments from a fleeting and fatalistic moment in time — one that was both sensational and sorrowful in equal measure.”

“This period of the author’s life is now over, the chapter closed and boarded up,” it added.

“There is nothing to avenge, no scores to settle once wounds have healed. And upon further reflection, a good number of them turned out to be self-inflicted.”

The post also suggested that Ms. Swift used the writing process to heal.

“This writer is of the firm belief that our tears become holy in the form of ink on a page. Once we have spoken our saddest story, we can be free of it,” it said.

The Instagram post did not say which events Swift was referring to. Fans have speculated she was writing about her relationship with British actor Joe Alwyn. The pair split in April 2023 after six years of dating.

A representative for Mr. Alwyn could not immediately be reached for comment.

Ms. Swift is among several of music’s top female artists releasing albums in what is being called “Pop Girl Spring.” Beyonce’s Cowboy Carter debuted in March. Dua Lipa and Billie Eilish have releases scheduled for May.

Reviews of Poets were mostly positive, with Rolling Stone calling the music “wildly ambitious and gloriously chaotic.” Billboard said the album was “extreme in its emotions and uninterested in traditional hits; not everyone will love it, but the ones who get it will adore it fiercely.”

Other critics were not as impressed. Britain’s NME described it as “surprisingly flat and, at times, cringeworthy.”

‘THE MOST HONEST’
Fans dissected each tidbit of the new album, even noting that avowed cat lover Ms. Swift chose to release it on National Cat Lady Day.

Anne Most, a Taylor Swift fan who lives in Los Angeles, said Poets felt like a crossover between the pop album Midnights and the folk record Folklore.

“Lyrically it’s the most honest Taylor’s ever been, and it makes your heart hurt for what she went through,” Ms. Most said, adding, “Has anyone checked on Joe?”

Many Swifties, as her fans are called, said they stayed up late into the night to stream the songs. “I’m only a couple of songs in and I’m obsessed. Thank you Taylor,” a fan who identified herself as Nikki wrote on Ms. Swift’s X account.

Others headed to record stores to buy CD or vinyl versions.

Mike Batt, 59, co-owner of Silver Platters record store in Seattle, said he had a rush of customers seeking The Tortured Poets Department when he opened in the morning.

“The thing with Taylor is it’s not just a flash in the pan type of thing,” Mr. Batt said. “She has reinvented herself from the country artist that she started out, to the singer songwriter that she is today, and more of a pop artist than a country artist.

“And everything about it, from her embracing her fans and making them feel special, it’s reciprocated,” Mr. Batt added. — Reuters

Small is beautiful

Greenbelts 1 and 2 in the iconic Greenbelt Mall area have been closed for renovation since April this year, part of the three to four year “re-development” (reportedly costing P13 billion) of the Ayala Malls concept for a mixed-use commercial complex in this prime area in Makati. Greenbelt was once a park and had an aviary at its beginnings in the 1980s. It slowly developed through the years into a small “run-to” commercial center for the community of residents near the area and the daytime population of office workers from nearby office buildings, along with students/professors/staff at the Asian Institute of Management (A.I.M.) school and hotel near the park. The New World Hotel is also in Greenbelt, on Esperanza Drive.

Regular massgoers at the Santo Niño de Paz Chapel in the center of Greenbelt Park (built in 1983) nod to each other and venture to say a painful “Sayang, ano?” What a pity indeed, to see our cozy little “town center” boarded up from us — it is like watching memories and experiences of many years being put in a box, to be taken away to an attic to gather the dust of forgetfulness. But there can be no sissy emotional attachment — the re-development of the Greenbelt Mall will be for the greater good of the greater others.

The 41-year-old Greenbelt 1 will be redeveloped into a luxury mall showcasing leading local global brands. It will have four levels of basement parking and four levels of retail spaces above (BusinessMirror, Feb. 20). It is rumored that these will be in two high-rise buildings fronting Legazpi St. — with the floors above leasable as office spaces for Business Process Outsourcing (BPOs) and other corporate businesses. Greenbelt 1 will be reopened in 2028.

Greenbelt 2, fronting Esperanza Drive, with its present 12,355 square meters gross leasable area, will retain its 28 two- and three-level leased high-end residential units (single-detached) on top of retail stores that will continue the format and offerings of the adjacent Greenbelt 3 – which contains imported-brand luxury stores including “major league” global fashion houses like Christian Dior, Louis Vuitton, etc.). “Greenbelt will evolve from the Philippines lifestyle capital to the next regional fashion and luxury destination,” the developer, Ayala Land said (manilastandard.net, March 31).

Perhaps the “sayang” said by the small, affected community around Greenbelt comes with the helpless realization that “progress” cannot be stopped — and “bigness” can only swallow up “smallness.”

“Big is Beautiful” is the magic success formula for the global capitalist society that has risen from the brutal levelling of the World Wars in the 1940s. Expansion and more expansion. Production and delivery of products and services covered the world. Big, bigger, biggest — global corporations and international economic cooperation took over the forces of supply and demand in economies big and small. Aye, there’s the rub — smaller economies must now scratch for that bottom line of profit. All is fair in love and war, and it has been an unequal war for survival and wealth.

Yet in the 1970s, at the time of the worldwide Oil Crisis, emerged a German-born British economist, Ernest Friedrich Schumacher, who espoused “Small is Beautiful,” advancing small, appropriate technologies, policies, and polities as a superior alternative to the mainstream ethos of “bigger is better.” (His book, Small is Beautiful: A Study of Economics as If People Mattered, written in 1973, was ranked by The Times Literary Supplement in 1995 as among the 100 most influential books published since World War II.)

Schumacher’s philosophy is one of “enoughness,” appreciating both human needs and limitations, and the appropriate use of technology and concern for the depleting environment. It grew out of his study of village-based economics in India, which he later termed Buddhist economics. He discussed the gap between the center of the world system and the developing world as it existed then, and the responsibility of economic actors to temper their profits with the needs of their markets.

Schumacher argues for more decentralized control of large enterprises, a form of nationalization that can successfully compete with conventional profit-driven businesses but with the welfare of employees and the common good in mind. He faults conventional economic thinking for failing to consider the most appropriate scale for an activity, denouncing the notion that only “growth is good,” and that “bigger is better.” And further, questioned the appropriateness of using mass production in developing countries, promoting instead “production by the masses.” (inkedin.com, June 14, 2016).

Fifty years after Schumacher submitted his propositions for humane economics (which some branded as socialist and left-leaning), his mantra, “Small is Beautiful,” seems to have urged a deep meditation on the sins of greed for gain and glory in obsessive profit-taking.

Perhaps the COVID pandemic that tyrannically slowed global economic activity forced the point on temperance and a “back-to-basics” simplicity. “Gigantism,” as Schumacher sees it, does not seem to have worked, then and now. “For several decades, mass production methods were producing more cheap goods than ever before; the mass media and mass culture opened up new opportunities to a wider audience than ever. It was creating bigger markets and bigger political entities, (which) led to a dehumanization of people and the economic systems that ordered their lives,” economist Madeleine Bunting said in her review of Schumacher’s book (theguardian.com, Nov. 10, 2011).

Schumacher warned that the modern economy is unsustainable. Natural resources (like fossil fuels), are treated as expendable income, when in fact they should be treated as capital, since they are not renewable, and thus subject to eventual depletion. Nature’s resistance to pollution is limited as well. He urged governments to focus on sustainable development for themselves individually and for the interdependent global economy. Shared expertise and cooperation are vital to the survival of all. Schumacher cautioned that technology transfer to Third World countries will not solve the underlying problem of an unsustainable economy. He prescribed instead, an intermediate technology transfer that will consider the level of the developing country to use it effectively. He worried about the creation of wants beyond needs, and the possible, and perhaps unintended manipulation of demand and supply. Power corrupts.

Schumacher was also one of the first economists to question the suitability of using GNP – gross national product – to measure human well-being, emphasizing that “the aim ought to be to obtain the maximum amount of well-being with the minimum amount of consumption.” He deplores the heedless rush with which emerging economies are growing, without concern for moral and spiritual values.

Might that be about us, the small Philippine economy, trying to act like the “Big Boys” of the developed economies, wanting to have what they have, thinking about how we can get into the “in-crowd” of the Rich and Famous of the world?

First, we must think of the 25.24 million poor Filipinos (22.4% of population in 2023) whose per capita income is not sufficient to meet their basic food and non-food needs (pna.gov, Jan. 19). The Gini coefficient — which measures the inequality among the values of a frequency distribution, such as levels of income — in the Philippines is forecast to be 0.42 in 2024 (equal distribution of income = 0). The unemployment rate in the Philippines is seen at 5.08% and there are about 2.44 million unemployed people in the Philippines this year. The employment rate in the Philippines is expected to be 56.46% in 2024.

Is it enough that the Philippines rose 23 spots to land 53rd (out of 143 countries surveyed) in the 2024 World Happiness Report? (The Philippines was 76th in 2023 and 60th in the 2022 reports.) The World Happiness Report, initiated by the United Nations in 2011, is a ranking of national happiness based on respondent ratings of their own lives, which the report also correlates with various (quality of) life factors — the more basic of which are peace and contentment.

“I suggest that the foundations of peace cannot be laid by universal prosperity, in the modern sense, because such prosperity, if attainable at all, is attainable only by cultivating such drives of human nature as greed and envy, which destroy intelligence, happiness, serenity, and thereby the peacefulness of man,” E.F. Schumacher said.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

BDO expects margins to be flat or lower as market awaits cuts

BW FILE PHOTO

BDO Unibank, Inc.’s net interest margin (NIM) could be flat or slightly lower this year, depending on when the Bangko Sentral ng Pilipinas (BSP) will begin its rate cut cycle, its top official said.

“I think generally we expect rates to go down, and when things start to stabilize, we expect NIMs to slightly decline because yields will go down. So that means that we expect it to be flattish to slightly going down,” BDO President and Chief Executive Officer Nestor V. Tan told reporters on the sidelines of their annual stockholders’ meeting on Friday.

BDO’s NIM stood at 4.6% in 2023, up from 4.1% the previous year.

Mr. Tan said he expects the BSP to move alongside the US Federal Reserve to protect the peso.

“There are two factors that you have to manage: the interest rate and the impact of the interest rate policies worldwide on our foreign exchange, both of which have inflationary and economic impact. So, if I were to guess, I would say they will move in lockstep with the Fed,” he said.

The Fed last month kept its target rate at the 5.25%-5.5% range for a fifth straight meeting after raising interest rates by a cumulative 525 basis points (bps) from March 2022 to July 2023.

Meanwhile, the BSP’s policy-setting Monetary Board this month left its target reverse repurchase rate unchanged at a near 17-year high of 6.5% for a fourth straight meeting.

The BSP raised borrowing costs by 450 bps from May 2022 to October 2023 to help bring down elevated inflation.

BSP Governor Eli M. Remolona, Jr. earlier said that their planned easing cycle may be pushed back to the first quarter of 2025 “if things are worse.”

He also told Bloomberg in an interview that rate cuts won’t be huge and will bring the policy rate closer to about 6%.

Mr. Tan noted that the bank can recoup the impact of lower borrowing costs on BDO’s NIMs through their low-cost current account, savings account (CASA) deposits.

“As you can see also, CASA is picking up. So, we may be able to offset that with lowering the cost of funds,” he said.

BDO’s total deposits rose by 10.76% to P3.57 trillion last year from P3.22 trillion in 2022, with its CASA ratio at 72%.

In the first quarter, deposits rose by 13% year on year, also mainly driven by the increase in low-cost CASA deposits.

BDO’s net income grew by 12% year on year to P18.5 billion in the first quarter as its core businesses remained strong.

The Sy-led bank’s shares last went down by P2.60 or 1.76% to close at P145.50 apiece on Friday. — Aaron Michael C. Sy

Napocor targets to fast-track bidding for hybridization program 

PHILSTAR FILE PHOTO

STATE-LED National Power Corp. (Napocor) said it is expediting the bidding process for its accelerated hybridization program to allow private companies to build renewable energy facilities in off-grid areas.

“In essence, a portion of the electricity that Napocor would have produced using its diesel power plant will be replaced with the generated electricity by the RE facility of the REPP (renewable energy power provider) which in turn reduces the cost to Napocor and the government,” Fernando Martin Y. Roxas, Napocor president and chief executive officer, said in a statement over the weekend. 

Napocor said it is now finalizing the bidding documents for its hybridization project.

The proposed entry of the private sector will augment and replace the current capacity of the Small Power Utilities Group (SPUG) diesel power plants, it noted.

Under the project, Napocor plans to bid out four clusters of off-grid areas such as Batanes, Palawan, Bicol, and Tawi-Tawi.

“The SPUG diesel power plants are grouped into clusters wherein four clusters will be piloted for procurement. These are clusters in Batanes, Palawan, Bicol, and Tawi-Tawi,” Mr. Roxas said.

The private firms will develop, finance, construct, and operate the renewable energy facility for their chosen clusters, Mr. Roxas said, adding that Napocor will serve as the off-taker of electricity generated from the facility at an agreed contracted price.

According to its website, the project will use the existing subsidized and approved rate of the Energy Regulatory Commission (ERC) as the limit for the bid offer.

“The winning bidder, the Renewable Energy Power Provider (REPP), will be awarded a Renewable Energy Power Purchase Agreement (REPPA) with Napocor,” he said.

The project will use hybridization of technologies, such as diesel and renewable energy, which also aim to reduce the subsidies for the Universal Charge for Missionary Electrification (UCME).

As authorized by Republic Act No. 9136, or the Electric Power Industry Reform Act (EPIRA), the UCME is collected from on-grid electricity end-users to fund Napocor’s electrification programs and projects, particularly in remote areas not connected to the grid, which must use diesel generators.

Napocor is mandated to provide electricity to all far-flung areas not connected to the main grid through SPUG plants. To date, Napocor operates 281 SPUG plants, mostly powered by diesel, in 190 areas. — Ashley Erika O. Jose

US to spend $1 billion on food aid abroad amid global hunger crisis

REUTERS

THE US Department of Agriculture (USDA) and the US Agency for International Development (USAID) will distribute $1 billion in US commodities to countries with high hunger rates, the agencies said.

The countries that will receive the aid — including the Democratic Republic of Congo, Yemen, South Sudan, Sudan, and Haiti — are among the most stricken by hunger, according to the United Nations’ World Food Program.

Global hunger is getting worse, with 745 million more people moderately to severely hungry worldwide in 2023 than in 2015, leaving the world offtrack to meet a sustainable development goal of ending hunger by 2030, according to the United Nations.

The causes of expanded hunger are global conflict, climate change, and the long tail of recovery from the COVID-19 pandemic for the world’s poor, the UN says. Hunger is rising the most in Sub-Saharan Africa.

The US-grown commodities to be purchased and sent abroad include grains and beans, the USDA said. The USDA will buy the commodities and USAID will distribute them, the agencies said.

The US is also facing high hunger rates in the wake of the pandemic, and USDA in 2022 spent $2.3 billion on food purchases for schools and food banks. 

“With many millions of people in dire need worldwide, the US agricultural sector is well positioned to provide lifesaving food assistance,” Agriculture Secretary Tom Vilsack said in a statement. Reuters

Winterpine showcases portfolio of brands at MIAS 2024

PHOTO FROM WINTERPINE MARKETING CORP.

WINTERPINE MARKETING CORP. has been offering automobile owners a wide range of automobile accessories and enhancement solutions for 45 years. It started out as a store in 1979, which grew and expanded into distribution, retail, automobile conversions, and, now, e-commerce. At this year’s Manila International Auto Show (MIAS), Winterpine showcased the brands under its wing, said to offer “next-level” comfort, convenience, safety, and performance.

3M Automotive Film is one such marque. At MIAS, Winterpine brought in the premium 3M Automotive Film Ceramic IR line — a metal-free film that prevents RFID interference and corrosion, and features Nano-ceramic technology for superior heat rejection and glare reduction. 3M films are recommended by the Skin Cancer Foundation.

TrackBuddy allows a car owner to track his or her vehicle in real time and set geofences for alerts through a user-friendly app. Meanwhile, HP Camcorders are in-car video recorders (or dashcams) featuring high-resolution imaging, recording, and connectivity for auto or motorcycle owners.

Aeroklas, on the other hand, are high-quality pickup truck utility accessories. Many OEMs around the world are said to choose Aeroklas to enhance the form and function of all kinds of vehicles. The brand offers a wide range of solutions to protect cargo and the pickup truck with high-grade bedliners, hydraulic-assisted deck covers, canopies, stepboards, and more.

Japan’s leading air freshener, Air Spencer, is also carried by Winterpine. The brand offers a wide variety of scents ranging from fruity or fresh aromas to even perfume. Air Spencer has special absorbents to control the release of the scent and even features dual-opening cans for longer-lasting benefits.

Lastly, Winterpine also features audio system brands Kicker, JL Audio, and Rockford Fosgate.