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World Cup-bound Blu Girls need proper training and exposure

FOR the Philippine Blu Girls to have a chance to compete against the best of the best in the WBSC 18th Women’s Softball World Cup in Italy in July, they must be given proper training and compete in more games.

“Kailangan naming ng exposure,” (We need exposure) said Philippine team captain Ann Antolihao during yesterday’s Philippine Sportswriters Association Forum at the Philippine Sports Commission’s office in Malate, Manila.

“But we were told we will have a training camp somewhere,” she added.

Ms. Antolihao, who was accompanied by catcher Maria Celyn Ojare and outfielder Cristy Joy Roa during the weekly public series forum, and the Filipinas were coming off a World Cup spot-clinching performance in the Asia Cup in Incheon, South Korea where they finished fourth out of nine teams.

The Blu Girls will come in as the lowest ranked country in the bracket that they were in — Group C — as Asia Cup champion Japan is World No. 2, Canada No. 4, host Italy No. 8, Venezuela No. 22 and New Zealand No. 28.

But Ms. Roa said they are unfazed.

The other brackets are Group A composed of Chinese Taipei, United States, Great Britain, Australia and Africa’s No. 2 team and Group B comprising of China, Cuba, Puerto Rico, the Netherlands and Africa’s No. 1 squad.

The World Cup should also help the Blu Girls warm up as they are also scheduled to plunge into action in the Hangzhou Asian Games slated Sept. 23 to Oct. 8. — Joey Villar

No excuse to lose

When the Lakers go up against the Timberwolves today for the right to claim the seventh seed in the Western Conference, they will be at a decided advantage. They’re heavily favored not just because crypto.com Arena will be hosting the play-in match. More importantly, they will have a full rotation only too ready to consolidate their significant turnaround after the trade deadline with a postseason berth. Meanwhile, the visitors will be handicapped by the totally avoidable absence of starters Rudy Gobert and Jaden McDaniels.

Indeed, the Lakers should be ashamed of themselves should they wind up suffering a setback today. It doesn’t matter that their provisional standing affords them another shot at the playoffs. They simply have no excuse to lose — not with Anthony Davis in peak form and LeBron James finally getting back on track following a lengthy period of convalescence from a right foot injury. And if there’s any proof of the efficacy of their most recent roster moves, it’s that they now boast of the best defense in the West.

Whether the Lakers’ progress translates to a second title in four years is, however, another matter altogether. If nothing else, their loss to the Clippers last week underscored their frailties. Never mind that it was their fifth game in eight days. The fact that they were battling for an outright berth should have had them geared up to show their best.

Not that James is complaining. Given the inauspicious start of the Lakers’ 2022-23 campaign, he isn’t wrong to note that their finish above .500 is “pretty cool.” Then again, he isn’t competing for mediocrity. He’s all about the hardware, especially at this point in his career. Which is why he and the rest of the purple and gold need to make the most of the new lease on life. After all, anything less than an outcome that sees the Larry O’Brien Trophy in his hands cannot but be deemed a failure.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

South Korea fines Google $32M for blocking games on competing platform

REUTERS

SEOUL — South Korea’s antitrust regulator has fined Alphabet, Inc.’s Google 42.1 billion won ($31.88 million) for blocking the release of mobile video games on a competitor’s platform.

The Korea Fair Trade Commission (KFTC) said on Tuesday that Google bolstered its market dominance, and hurt local app market One Store’s revenue and value as a platform, by requiring video game makers to exclusively release their titles on Google Play in exchange for providing in-app exposure between June 2016 and April 2018.

Google said it will review the final decision by the KFTC to evaluate the next course of action.

“Google makes substantial investments in the success of developers, and we respectfully disagree with the KFTC’s conclusions”, a spokesperson said.

The KFTC said the move against the US technology giant is part of efforts by the government to ensure fair markets.

Game makers affected by Google’s action include Netmarble, Nexon and NCSOFT, as well as other smaller companies, the antitrust regulator added.

In 2021, Google was fined more than 200 billion won by the KFTC for blocking customized versions of its Android operating system. — Reuters

US designates WSJ reporter as ‘wrongfully detained’ by Russia

A RUSSIAN FLAG flies with the Spasskaya Tower of the Kremlin in the background in Moscow, Russia, Feb. 27, 2019. — REUTERS

WASHINGTON — The United States on Monday determined that Russia has “wrongfully detained” American Wall Street Journal (WSJ) reporter Evan Gershkovich, effectively saying that espionage charges are bogus and that the case is political.

“Journalism is not a crime,” State Department spokesperson Vedant Patel said in a statement. “We condemn the Kremlin’s continued repression of independent voices in Russia, and its ongoing war against the truth.”

The US government would provide all appropriate support to Mr. Gershkovich and his family, said Mr. Patel.

Mr. Patel also called for Russia to release Paul Whelan, a former US Marine serving a 16-year sentence in a Russian prison and is also designated by Washington as “wrongfully detained.”

Russia’s FSB security service said on March 30 it had arrested Mr. Gershkovich, accusing him of gathering information about a Russian defense company that was a state secret.

Russia’s embassy in Washington did not immediately respond to a request for comment on the designation.

The Wall Street Journal has denied Mr. Gershkovich was spying. The White House has called the espionage charge, which carries a jail term of up to 20 years, “ridiculous.”

US President Joseph R.  Biden has called for Mr. Gershkovich’s release and Secretary of State Antony Blinken in an April 2 telephone call with his Russian counterpart Sergei Lavrov raised Washington’s concerns over the reporter’s “unacceptable detention.”

Mr. Patel told reporters earlier that Moscow had formally notified Washington of Mr. Gershkovich’s detention over the weekend, but had not yet granted US consular officials access to the journalist.

The Wall Street Journal’s publisher and editor in chief said the “wrongfully detained” designation “will unlock additional resources and attention at the highest levels of the US government in securing his release.” 

“We are doing everything in our power to support Evan and his family and will continue working with the State Department and other relevant US officials to push for his release,” the Journal’s publisher and Dow Jones chief executive, Almar Latour, and Editor in Chief Emma Tucker said in a statement after the State Department announced its decision.

Reuters was unable to reach Mr. Gershkovich’s family for comment.

Responsibility for the case will now be transferred from the State Department’s Bureau of Consular Affairs to the office of the Special Envoy for Hostage Affairs, raising the issue’s political profile and allowing the government to allocate more resources to securing Mr. Gershkovich’s release.

Legislation passed by Congress in 2020 lists 11 criteria to help determine if a US citizen is “wrongfully detained.” The US Secretary of State uses these criteria to make the designation, but a case does not need to fulfill all 11 points to merit the “wrongfully detained” label.

The list includes, among other things, that the individual is being targeted primarily because they are an American citizen or that the detention is intended to influence US government policy.

Another factor is whether the individual is being held in “inhumane conditions” or was detained in a country where the US mission has received credible reports that the detention is merely a pretext.

The Biden administration has secured the release of at least 25 “wrongfully detained” Americans. More than 30 other US citizens are still being held abroad with that designation. — Reuters

China proposes measures to manage generative AI services

The logos of Microsoft Corp. and OpenAI, as well as the ChatGPT 4 name, are seen in this photo illustration. — PHOTO ILLUSTRATION BY JONATHAN RAA/NURPHOTO VIA REUTERS CONNECT

HONG KONG — China’s cyberspace regulator unveiled draft measures on Tuesday for managing generative artificial intelligence (AI) services, saying it wants firms to submit security assessments to authorities before they launch their offerings to the public.

The rules drafted by the Cyberspace Administration of China (CAC) come as several governments are considering how to mitigate the dangers of the emerging technology, which has experienced a boom in investment and consumer popularity in recent months after the release of OpenAI’s ChatGPT.

They also come after a slew of Chinese tech giants, including Baidu, SenseTime and Alibaba, showed off in recent weeks their new artificial intelligence models which can power applications ranging from chatbots to image generators.

The CAC said that China supports AI innovation and application and encourages use of safe and reliable software, tools and data resources, but content generated by generative AI had to be in line with the country’s core socialist values.

Providers will be responsible for the legitimacy of data used to train generative AI products and measures should be taken to prevent discrimination when designing algorithms and training data, it said.

The regulator also said service providers must require users to submit their real identities and related information.

Providers will be fined, have their services suspended, or even face criminal investigations if they fail to comply with the rules.

If inappropriate content is generated by their platforms, the companies must update the technology within three months to prevent similar content from being generated again, the CAC said.

The public can comment on the proposals until May 10, and the measures are expected to come into effect sometime this year, according to the draft rules. — Reuters

Theranos founder Elizabeth Holmes cannot remain free during appeal, judge rules

THERANOS FOUNDER ELIZABETH HOLMES — EN.WIKIPEDIA.ORG
THERANOS FOUNDER ELIZABETH HOLMES — EN.WIKIPEDIA.ORG

A US JUDGE on Monday denied Theranos founder Elizabeth Holmes’ request to remain free on bail while she appeals her conviction on charges of defrauding investors in the failed blood-testing startup that was once valued at $9 billion.

Ms. Holmes, who rose to fame after claiming Theranos’ small machines could run an array of diagnostic tests with just a few drops of blood, was convicted at trial in San Jose, California last year.

US District Judge Edward Davila sentenced Ms. Holmes to 11 years and three months in prison in November. Ms. Holmes asked Davila to postpone the sentence while the 9th US Circuit Court of Appeals reviews her case.

Mr. Davila concluded that even if Ms. Holmes won her appeal to challenge the Theranos technology evidence, it wouldn’t result in a reversal or a new trial of all the counts she was found guilty of.

“Contrary to her suggestion that accuracy and reliability were central issues to her convictions, Ms. Holmes’ misrepresentations to Theranos investors involved more than just whether Theranos technology worked as promised,” he said.

Ms. Holmes, who is scheduled to begin serving her sentence in April, may ask the 9th Circuit to grant bail.

In denying the release appeal, Davila noted that Ms. Holmes was unlikely to flee or endanger the community.

Prosecutors said during the trial that Ms. Holmes misrepresented Theranos’ technology and finances. Ms. Holmes testified in her own defense, saying she believed her statements were accurate at the time.

On appeal, Ms. Holmes plans to challenge several of the judge’s rulings, including his allowance of evidence about Theranos’ test accuracy that postdated her statements to investors.

Ms. Holmes’ co-defendant, former Theranos President Ramesh “Sunny” Balwani, was convicted of defrauding Theranos investors and patients at a separate trial and sentenced to 12 years and 11 months in prison.

In March, Mr. Davila denied Mr. Balwani’s request to remain free on bail during his appeal. The 9th Circuit also ruled that Mr. Balwani’s sentence should not be postponed while it considers his case.

The case is US v. Holmes et al., US District Court, Northern District of California, No. 18-00258. — Reuters

Asian Hospital announces stockholders’ virtual annual meeting

 

 

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Game-changing reforms

PHILIPPINE STAR/KRIZ JOHN ROSALES

Former President Rodrigo Duterte may have been better known (notoriously?) for his controversial drug war internationally, but his substantial legacy has been on the economic front. Despite the economic contraction that happened under his watch during the pandemic, he can be credited with numerous game-changing economic and social legislation.

Here’s a partial list: the Rice Tariffication Law, the Corporate Recovery and Tax Incentives for Enterprises Act better known as CREATE (reforming incentives and reducing taxes), the Tax Reform for Acceleration and Inclusion Law or TRAIN 1 (reducing personal income taxes on individual taxpayers), the Public Service Act Amendment (liberalizing foreign ownership in transport and telecommunications), amendments to the Corporation Code, the Build-Build-Build Program (hiking infrastructure spending to 5% of GDP), the Foreign Investment Act Amendment, the Retail Trade Liberalization Law, membership in the free trade bloc RCEP (Regional Comprehensive Economic Partnership), amendments to the Bangko Sentral ng Pilipinas (BSP) and Social Security System (SSS) Charters, the Increased Sin Taxes (RA 11346 and 11467), the Ease of Doing Business Law, the Real Estate Investment Trust Revised Implementing Rules and Regulations,the Personal Property Security Act (RA 11057), EO 127 on Satellite Broadband, EO and DAO on mining permit liberalization and lifting open pit mining ban, RA 11231 (Agricultural Free Patent Law) and RA 11573 (Land Titling Simplification Law) and, lastly, a political and economic achievement, the Comprehensive Bangsamoro Peace Agreement.

What about President Bongbong Marcos? So far, I haven’t seen his administration putting game-changing reforms or economic legislation on his agenda, save for one or two. The ratification of the country’s membership in RCEP and the issuance of the Implementing Rules and Regulations of the Public Service Act Amendment may be said to be game-changing, although the initiative started with the previous administration.

Another initiative that started under the previous administration (by former Socio-economic Planning Secretary Karl Chua) but which the Marcos Jr. administration implemented is the liberalization of foreign investments in the Renewable Energy sector. Previously, only majority-owned Filipino firms were allowed to invest in solar, wind, and ocean, under the old protectionist Department of Energy (DoE) Implementing Rules and Regulations (IRR).

However, Marcos Jr.’s Department of Justice issued an opinion that the natural resources provision in the Constitution didn’t cover solar, wind, and ocean as these energy sources weren’t depletable and represented kinetic, rather than potential energy. The DoJ opinion paved the way for the energy department to issue a new IRR to allow 100% foreign ownership in solar, wind, and ocean projects.

Because of this new IRR, a Danish firm, the Copenhagen Infrastructure New Markets Fund, recently pledged to invest $5 billion in developing 2,000 megawatts (MW) of wind energy in the Philippines. Kudos to Energy Secretary Raphael “Popo” Lotilla, who had been championing this reform, and Justice Secretary Crispin Remulla for making this investment possible.

A reform that the Marcos administration can rightfully proclaim credit for is the amendment to the IRR of the Build-Operate-Transfer (BOT) law or Public-Private Partnership law. The Duterte administration rushed a BOT IRR that was unfriendly to private investors before bowing out. Faced with an unfavorable fiscal climate for increasing infrastructure spending, the Marcos administration rightfully corrected the BOT IRR.

However, implementation is still unremarkable, and we have yet to see a fat pipeline of projects that will see fruition soon.

A piece of the Marcos administration economic legislation that could be game-changing is the New Agrarian Emancipation Act, which has yet to be signed by the President into law, although the bill had been ratified by both the House and the Senate on March 22.

The New Agrarian Emancipation Act condones agrarian reform beneficiaries’ P57-billion debt covering 610,054 agrarian reform beneficiaries (ARBs).

Probably, the Marcos Jr. administration wasn’t looking or was totally clueless, but the New Emancipation Act could have been a giant step backward rather than forward. As I wrote about in my last column, the House version contained a pernicious provision that said condoned farmers are prohibited from selling or leasing their land for 10 years, thereby preventing any form of land consolidation and tying them to the land even if they are too old or unwilling to farm.

Fortunately, the Senate dropped this provision during plenary and its version was eventually adopted in the bicam version ratified by the House and Senate. Both chambers, however, decided not to touch the existing Comprehensive Agrarian Reform Law (CARL), which contained a provision that agrarian reform beneficiaries can’t sell or lease their land for 10 years.

However, because CARL started in 1987 and we have the longest-running land reform program in the world, the majority of the Certificates of Land Ownership Award or CLOAS issued are now more than 10 years old.

I said the legislation could be game-changing because it will allow farm consolidation by leasing. However, it may be too soon to celebrate yet. After it’s signed by President Marcos Jr. into law, the Department of Agrarian Reform must formulate the IRR. It could put up new obstacles like requiring its permission for any sale or lease.

The administration should also optimize this law by getting the Land Bank or the National Development Company to consolidate farmlands by leasing them and subleasing to agribusiness ventures. And, no, this won’t lead to the displacement of farmers. Firstly, they will earn a rental income rather than the paltry income they earn from farming their own small plots presently (that is why most farmers now are just working part-time in farming). Secondly, they could be hired as farmworkers with more benefits and a steady income in larger, more productive agribusiness farms.

Apart from the New Agrarian Emancipation Act, I don’t see anything substantial in Mr. Marcos Jr.’s agenda that could be game-changing. The Maharlika Investment Bill, if passed into law, could even be a black mark on his record. The benefits of a merger of the Development Bank of the Philippines (DBP) and Land Bank are doubtful. TRAIN 3 or the Land Valuation Act, which started under President Duterte, has yet to be passed into law.

Charter Change to remove the foreign ownership restrictions in the Constitution can be game-changing, but Mr. Marcos Jr. has shown little enthusiasm for it.

There’s a lot of nice legislation in the Philippine Development Plan but I don’t consider them game changing. None of them address the big binding constraints to Philippine growth.

What are some of these game-changing legislations that I would like to see?

I would like to see an Apprenticeship Law. The present Apprenticeship law in the Labor Code restricts apprenticeship to technical industries only and limits it to six months. An expanded Apprenticeship Law will involve the private sector in improving the training and increasing the productivity of our workforce, most of whom graduate from K-12 without employable and relevant skills. An Apprenticeship Law will be both a labor market and education reform.

The economy should get a boost and food inflation could be controlled if the administration abolishes all quantitative restrictions and applies tariffs on all food imports, just as the previous administration did with rice with the Rice Tariffication Law. Short of that, the administration should pass a Livestock Development bill that will reduce the tariff on corn, which accounts for 60% of the cost of livestock. Our neighbor, Vietnam, imposes a 2% tariff on corn, while we insist on controlling the importation of corn and impose a tariff of 15% for out of quota importations when our projected shortage is 2 million metric tons annually. The result is high prices for pork and chicken, making them unaffordable to poor families suffering from protein malnutrition.

With the price of rice expected to increase in the coming months due to events beyond the administration’s control, such as the global shortage of fertilizers and the coming El Niño or dry season, the administration should be proactive and get the price of corn, a staple substitute, to fall. Otherwise, the administration may face a political crisis if both the price of rice and corn become unaffordable.

There are other bills that I would like to see go into law that are similarly game-changing: The Tree Growing Bill and the Forest Cadaster Bill, which will spur the development of the wood industry and help regreen our denuded forestlands; the repeal of RA 3018 and amendment of PD 194, which will liberalize foreign investment in the critical rice and corn sectors; and the Salt Industry Development Act, which can reverse the decline of the domestic salt industry.

If President Marcos Jr. wants to equal or surpass the economic achievements of former President Duterte, he must do more in getting game-changing economic legislation passed. Merging the DBP with Land Bank and organizing an ill-conceived Maharlika Investment Fund are not going to be up there with the historic economic achievements of President Duterte like the Rice Tariffication Law or the Public Service Act Amendment. These won’t make, in the words of his father, “this nation great again.”

 

Calixto V. Chikiamco is a member of the board of IDEA (Institute for Development and Econometric Analysis).

totivchiki@yahoo.com

EO on digital infrastructure should target red tape

KEVIN KU-UNSPLASH

The reality of red tape has crippling consequences to our nation. Red tape is a euphemism for the numerous bureaucratic bottlenecks, usually of a corrupt or administratively inefficient nature, that delay what should be a logically necessary and efficient process.

Alas, red tape has become so institutionalized and tolerated that it has become a critical factor in the timelines of projects, notwithstanding these projects’ potential benefits to society and to the economy. Without red tape, doing business would be easier. And when there is ease of doing business, investments both foreign and domestic would come.

The curious thing is that eliminating or even minimizing red tape in specific fields has been shown to yield extraordinary results that should prompt our government leaders to act decisively on this regard.

For example, in the area of telecommunications and connectivity, two joint memorandum circulars addressing red tape have resulted in drastic changes that have translated into tangible benefits to the people. This is because it was found that while there is urgency to build digital infrastructure as fast as we can to cover more areas in the Philippines, various forms of bureaucratic gate-keeping — not the lack of technology or even capital resources — have prevented telcos from providing better and wider connectivity.

The are two anti-red-tape policies that have been proven effective — JMC no. 1 series of 2020 for the issuance of permits, licenses, and certificates for the construction of telco towers, and JMC no. 2 for the installation of telecommunication and internet infrastructure. These were jointly issued by the Anti-Red Tape Authority, the Department of Information and Communication Technology, Department of the Interior and Local Government, Department of Public Works and Highways, Department of Health, Department of Human Settlements and Urban Development, the Food and Drug Administration, the Civil Aviation Authority of the Philippines, the National Telecommunications Commission, and the Bureau of Fire Protection.

The processing times to secure permits were drastically reduced: from eight months to 16 days for telco towers, and from 2.5 years to just two and a half months for other infrastructure. The number of permits that had to be obtained went down from 13 to eight, and the number of other required documents fell from 86 to 35.

Because of this bureaucratic streamlining, approximately 7,000 additional towers were built in just 18 months, bringing the total to 29,700 from 22,700.

However, these JMCs that rationalize and clearly articulate bureaucratic guidelines have a fixed shelf life — they would only be in force until July of this year. What will happen after that?

This is the reason the Private Sector Advisory Council (PSAC) and the Anti-Red Tape Authority (ARTA) have called on the government to issue an executive order (EO) to cover the provisions of the two circulars.

An EO, unlike a JMC, has the force and effect of a law that would compel all local government units and agencies to abide by the guidelines designed to make licensing and permitting processes more efficient.

The benefits of connectivity have always been there but were made even more evident during the pandemic-induced lockdowns, when people were forced to work, learn, and perform business transactions and personal interactions from their homes.

Then again, even without the pandemic to remind us, digital transformation has always been prescribed as indispensable to economic recovery and sustainable development. When a country’s digital infrastructure is in place and up to speed with global standards, that country becomes more competitive and attractive to investors.

There is a direct correlation between a country’s digital competitiveness and its economy. For example, in the 2022 IMD World Digital Competitiveness, Denmark was ranked first because of its level of digital readiness, integration of digital technologies, business agility, and adaptability.

The ranking, according to the Director of the World Competitiveness Center (WCC), Arturo Bris, describes the importance of national factors in explaining the digital transformation of companies and the adoption of digital practices by citizens. “Digital nations result from a combination of digital talent, digital regulation, data governance, digital attitudes and the availability of capital,” he said.

Following Denmark are the United States, Sweden, Singapore, and Switzerland. The Philippines, on the other hand, is at 56th place out of 63 countries ranked.

In his many pronouncements, President Ferdinand Marcos, Jr. has articulated that he recognizes the need to fast-track our digital transformation for economic growth, development, and being at par with other countries. It is heartening to hear that the Palace seems digital transformation is needed to propel our country forward.

President Marcos has also cited the critical role of the private sector as partners in nation-building. Indeed, foreign investors and the private sector will generate jobs and economic opportunities, allowing Filipinos to upgrade their skills and thrive in the digital economy.

But these pronouncements to expand and enhance connectivity should be backed by accelerative policies like PSAC and ARTA’s proposed EO on digital infrastructure that needs immediate action by the President.

We trust that our leaders fully appreciate how critical the digital infrastructure EO will be in achieving economic recovery goals. The long-term utility and inclusive empowerment of a robust and extensive digital infrastructure network will serve as the backbone of our competitiveness and growth in the global digital economy.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

Higher Education in the context of a world in flux

McKinsey & Company, a global management consulting firm, recently published a report that describes the post-COVID world as a “world in flux.” Flux is a word that is normally attributed to a constant oscillation between one state to another. It describes change, but change that is sudden and even violent.

The pandemic indeed created so many life-altering changes that were so sudden on an individual and organizational level. So it is not surprisingly that these abrupt changes have brought out the best and the worst in all of us.

In higher education, there are three notable changes: 1.) the use of technology to enhance teaching and learning; 2.) the rise of transdisciplinary research; and, 3.) the need to go beyond societal impact.

TECHNOLOGY-ENHANCED EDUCATION
Online teaching and learning have created opportunities for educators to understand and explore digital technologies in communicating, instructing, assessing, and interacting with learners. While this is not new, its uptake has increased dramatically as instructors find it useful in redesigning their course offerings and making them more suitable in the 21st century.

In order to maximize the achievement of learning outcomes in digitally enhanced learning spaces, behavioral and institutional barriers must be addressed. As we move forward to coming back to our physical campuses, it is worth noting that ultimately, there should be no distinction between digital and physical learning spaces because we should be able to seamlessly learn in all kinds of spaces.

In particular, universities must recognize the value of adult learners as independent and mature, where rote learning should no longer be the norm. For meaningful learning to take place, self-directed learning and social constructivism as key guiding principles should be used as bases for reimagining what institutional support mechanisms should be provided.

TRANSDISCIPLINARITY
Similarly, transdisciplinarity is nothing new. It connotes the transcendence of knowledge beyond disciplinal boundaries to create a holistic approach in understanding and solving a complex problem. This term was introduced in the 1970s and later on, formalized as a research community in 1987 when the International Center for Transdisciplinary Research and Studies (CIRET) was established. In its charter, CIRET pointed out value of transdisciplinarity: that societal problems are so complex that a single discipline will not be adequate to even sometimes formulate a good research question.

Transdisciplinarity also necessitates the inclusion of non-traditional stakeholders in the research process such as industry, civil society, and community-based organizations. This democratizes how knowledge is being produced, communicated, and eventually used for public policy purposes. There were countless examples of these during the pandemic, when the need to understand and find a cure for the virus required the participation of those who were not only in the field of life sciences and medicine, but also mathematicians, anthropologists, community health and data science among others.

While there continue to be many debates surrounding transdicplinarity, but we cannot deny its significance now as our world is in a flux.

MAKING A STAND
Universities are created to serve societal needs. As the world we live in gets more complex and unpredictable, the operationalization of this mission becomes more challenging. Often, it requires a substantial amount of resources to generate desired results and make an impact in sustainable development goals that matters most.

About a decade ago, many Higher Education Institutions (HEIs) in the country started to institutionalize service learning in their curriculums. This credit-bearing educational approach that combines learning objectives with community engagement and service was an effective way to develop not only critical thinking and problem-solving skills, but also co-develop solutions to complex challenges that a partner community is currently facing.

But social engagement is no longer enough in a world that is in flux. Making the world a better place demands that universities must also make a clear stand on matters that are unjust. This lens had taken a back seat, perhaps, when most universities were focused on the internationalization of the 4th Industrial Revolution five years ago.

But the fact is that our political landscape has shifted. Political responsibility must be reinstated as part of the operationalization of every university’s core mission. It is true that taking on a clear position is not cost-free, but having a vague or no position is even costlier. Ultimately, HEIs duty is to protect and promote values that necessitate everyone to live a productive and decent life; values such as human rights, dignity of labor, diversity, equity and inclusivity, etc.

NAVIGATING THE FLUX
For HEIs to navigate these changes successfully, behavioral and institutional barriers must be addressed.

First, collaborative learning should be embedded in all aspects of the university — teaching and learning, research, industry engagement, including within its own operational aspects. However, I would like to put a caveat. What we do NOT want to see is the proliferation of “collaboration” (i.e., putting people in groups to do a project). What we wish to develop is a mindset of learning through working together — whether inside the classroom, in digital spaces, in laboratories, or in the offices. A university is, in the end, a learning community. Knowledge cannot be taught; it must be developed together, even if we do not agree with each other.

Second, HEIs must ensure that the structures it provides cultivate its mission and goals. An organization cannot be in the mission of bridging inequalities if it cannot address the inequalities within its own backyard. Some of these inequalities are obvious: students’ access to technologies and other learning resources, junior researchers’ access to funding, the inadequate support to post-retirement academics, etc. But some are more discreet: mental health issues, the lack of child care facilities for young employees who are struggling to balance work and family obligations, and the lack of representation of non-teaching staff in policy tables, to name a few.

Indeed, the pressures of sudden episodes of change affect every employee and students alike. The challenge therefore is how to better navigate these nuances and ensure that the university continues to be a relevant and caring place of learning and of work.

Third, for a university to successfully navigate a world in flux, it requires leadership with a mindset of resilience as well as humility. Many have written about resiliency and how this is a necessary trait to lead the workplace today. But to be resilient also means having the courage to admit you have made a mistake and will strive to do better. There will always be failures; this is a fact. But the goal is to use these as opportunities for learning. Humility also reinforces the need to be transparent in the decision-making process, not only in the decisions leaders make. People, most especially those in the frontlines of the organization, must be able to understand and take part in this process because their personal and professional lives will be affected by these. What truly matters now, more than ever, is the assurance that there is a conscious and deliberate choice for universities to hold their leaders accountable for their actions towards their responsibilities — and that this is implemented in a structured and consistent manner.

In the end, a world in flux needs a university that espouses collaborative learning within and outside its own organization, by moving beyond disciplinal and traditional boundaries in order to holistically understand the challenges. To do this will necessitate leadership that is not afraid to admit mistakes done, that is committed to learn and be better, and make bold and decisive decisions that are not only socially relevant but also politically essential.

 

Anne Lan K. Candelaria, Ph.D. is the Associate Dean for Graduate Programs of the Ateneo de Manila University. She is also an Assistant Professor of the Department of Political Science.

Strengthening regulations on e-money

CHRISTIANN KOEPKE-UNSPLASH

With fast-paced digitalization, electronic money (e-money) has rapidly become a regular part of the public’s daily transactions, particularly in the urban and urbanized areas. Since its introduction, e-money has much evolved, with various industry participants introducing differing consumer e-money products and platforms. During the recent pandemic, such e-money system has further become the staple transaction media of many consumers considering the convenience of its use. As of mid-2022, one of the largest EMIs (based on customer base) recorded over 60 million users, constituting 83% of the adult population in the Philippines.1

Given these rapid developments, local regulations are expected to keep abreast with changes in the manner by which the public transacts with e-money in light of its present scale. Hence, on Feb. 7, the Bangko Sentral ng Pilipinas (BSP), in an effort towards strengthening the regulation of e-money issuers (EMI), released BSP Circular No. 1166 series of 2023 amending the pertinent provisions of the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions. The new BSP issuance on e-money aims to promote public safety and protection in dealing with e-money by updating regulations to be responsive and adaptable to existing circumstances.

Among the amendments introduced by the Circular are the expansion of the definition of e-money and the imposition of additional disclosure requirements as well as higher liquidity and capitalization requirements on EMIs.

NEW DEFINITION OF E-MONEY
Under previous regulations, e-money was defined as the monetary value as represented by a claim on its issuer that is: 1.) electronically stored in an instrument or device; 2.) issued against receipt of funds of an amount not lesser in value than the monetary value issued; 3.) accepted as a means of payment by persons or entities other than the issuer; 4.) withdrawable in cash or cash equivalent; and, 5.) issued in accordance with the provisions of existing regulations.2

E-money is now defined as electronically-stored monetary value that is: 1.) maintained in a non-interest-bearing non-deposit transaction account; 2.) denominated in or pegged to the Philippine peso or other foreign currencies; 3.) pre-funded by customers to enable payment transactions; 4.) accepted as a means of payment by the issuer and by other persons or entities including merchants/sellers; 5.) issued against receipt of funds of an amount equal to the monetary value issued; 6.) represented by a claim on its issuer; and, 7.) withdrawable in cash or cash equivalent or transferable to other accounts/instruments that are withdrawable in cash.3

While it appears that the definition has been substantially modified, certain additions were merely reproduced from the previous regulation and incorporated into the new definition of e-money. For instance, the new definition includes the phrase “non-interest-bearing non-deposit transaction account” based on other provisions of the previous regulations which already indicated that e-money shall not earn interest and are not deposits.

However, the following are the significant changes in the definition of e-money:

Being accepted as a means of payment by the issuer is no longer per se an exclusion from the definition. This means that acceptance for payment by the issuer does not result in taking out the instrument or device from the definition of e-money. However, it must be emphasized that the Circular distinguishes between a closed-loop and an open-loop electronic wallet system. Closed-loop electronic wallet system, pertaining to those wherein the money is accepted as a means of payment only by the merchant-issuer, is not covered by the relevant provisions of the MORB.4

Transfer to other accounts/instruments that are withdrawable in cash is now included as a means of redemption.5 Under previous regulations, the definition limits redemption of e-money to withdrawal of cash or cash equivalents. With the new definition of e-money, systems which only allow transfer to other accounts/instruments that are withdrawable in cash, even if such systems do not in itself provide for redemption in cash or cash equivalents, are now covered by regulations on EMIs.

The BSP reported 70 supervised e-money issuers as of Feb. 3.6 Given the foregoing modification in the definition of e-money, it is expected that more players may now be considered as EMIs and fall within the coverage of the relevant BSP regulations.

ADDITIONAL COMPLIANCE REQUIREMENTS FOR EMIS
The Circular requires EMIs to provide clear terms and conditions on the use of e-money and obtain acknowledgment from users and merchants that they have read the terms and conditions prior to their availment of e-money services.7 This disclosure requirement appears to be an attempt by the regulators to ensure transparency to the public when dealing with e-money, and, at the same time, to require EMIs to educate new consumers on the uses of and risks associated with e-money.

EMIs are also mandated to participate in the automated clearing house in accordance with the National Retail Payments Systems Framework.8 With this requirement, the transfer of e-money becomes closely integrated into the banking and payment system.

The new capitalization requirements for EMIs shall now be the higher of: a.) the required minimum capitalization for banks or non-bank financial institutions (NBFI) depending on bank category or NBFI type, respectively, or, b.) the minimum required capitalization based on EMI category as large scale (i.e., P200 million capital requirement) or small scale (i.e., P100 million capital requirement). A large-scale EMI is one with a 12-month average value of aggregated inflow and outflow transactions equal to or greater than P25 billion.9

Further, to be able to meet e-money redemptions at all times, EMIs are required to maintain sufficient liquid assets equal to the amount of the outstanding e-money issued for each currency in which the e-money obligations are denominated, subject to the criteria provided under the Circular.10

Existing EMIs authorized to issue e-money or engage in e-money operations must, within three months from effectivity of the Circular, submit to the BSP a certification of compliance with the applicable requirements above and, if necessary, an undertaking for full compliance therewith within one year from issuance of the Circular.11

In view of the foregoing amendments, prudence requires banks and NBFIs under the supervision of the BSP to re-assess whether the products or services they offer to the public fall within the new definition of e-money and to evaluate whether they meet the new compliance, liquidity, and capitalization requirements imposed by the BSP.

1 Cordero, T., “GCash now has over 60M users, covering 83% of adult population” published on May 24, 2022, available at https://www.gmanetwork.com/news/money/companies/832676/gcash-now-has-over-60m-users-covering-83-of-adult-population/story/.

2 Manual of Regulations for Banks, Section 702.

3 Manual of Regulations for Banks, as amended by BSP Circular No. 1166 series of 2023, Section 702 on Definition of Terms.

4 Ibid.

5 Id.

6 BSP List of Supervised EMIs published on Feb. 3, available at https://www.bsp.gov.ph/Lists/Directories/Attachments/7/emi.pdf

7 Manual of Regulations for Banks, as amended by BSP Circular No. 1166 series of 2023, Section 702 on Disclosure Requirements.

8 Manual of Regulations for Banks, as amended by BSP Circular No. 1166 series of 2023, Section 702 on Interoperability of Systems.

9 Manual of Regulations for Banks, as amended by BSP Circular No. 1166 series of 2023, Sections 702-Q, 402-S and 402-N on Capital Requirements.

10 Manual of Regulations for Banks, as amended by BSP Circular No. 1166 series of 2023, Section 702 on Liquidity Requirements.

11 BSP Circular No. 1166 series of 2023, Section 5

This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

 

Nathanael A. Quijano is an Associate of the Corporate & Special Projects Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

naquijano@accralaw.com

(632) 8830 8000

[B-SIDE Podcast] Who should get a pet? 

Follow us on Spotify BusinessWorld B-Side

Filipinos love their pets, and demand for vet services did not wane all throughout the pandemic, said Richard P. Encomienda, a veterinarian from the Vets in Practice hospital.   

In this B-Side episode, he talks to reporter Patricia Mirasol about his life as a vet, and imparts advice for people considering getting a pet. 

It is important to consider both your lifestyle and financial situation when deciding to become a pet owner, Mr. Encomienda said. 

“As long as the pet is alive, it’s your responsibility, your commitment, to keep it healthy and happy,” he said. “Research on the breed. Some breeds need to be outside more often, like Labradors or retrievers. If you get a smaller breed, they can be let out once a day.”  

A dog’s lifespan is anywhere between 10-13 years, although there is variability among breeds and sizes. A cat’s lifespan, meanwhile, is typically 16 years.  

Dogs are five times more popular than cats in the Philippines. 

Big dogs require two 20-kilogram sacks of dog food a month, with midrange brands costing P6000-10,000 per month for that amount of food.  

“That doesn’t include yearly vaccines; that would be around P1500. Plus, if you include heartworm prevention, [then you would need to shell out more],” Mr. Encomienda added. 

Topics related to animals and pets were among the top five Facebook and Instagram Reels (or short-form videos) in the Philippines for the first three quarters of 2022, according to Meta. 

Despite the costs of being a fur parent, demand for vet services did not abate during the first series of lockdowns in 2020, Mr. Encomienda told BusinessWorld.   

“Business was stable,” he said. “People just walked in [pre-COVID-19], but the pandemic forced us to set up appointments.”  

Recorded remotely on January 11, 2023.

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