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Retrofitting our democracy

Presidential aspirant and Vice President Leni Robredo visits fisher folks in Talisay, Cebu during her campaign sortie Feb. 24, 2022. — PHILIPPINE STAR/ MICHAEL VARCAS

As a Catholic congregation with a mission to provide human and Christian education to the young, we, the De La Salle Brothers, are constantly immersed in the world of young people. As mentors, teachers, and guides, we listen to their complaints, problems, stories, hopes, and dreams. We dialogue with them regardless of their creed, culture, and convictions, and learn from them, too. Because they are our primary concern, we believe that the upcoming election is not just about choosing a new leader. In our message to the Lasallian Family, “Discerning Our Future: The 2022 Elections” dated Dec. 8, 2021, we said that this election is also “about choosing the kind of future we want for ourselves, our children, and our children’s children.”

We offered eight ethical principles for discerning the kind of leadership our country needs and deserves. One of these principles is the “promotion of subsidiarity which favors grassroots empowerment for social development over autocracy and authoritarianism.” Subsidiarity is a key principle of Catholic Social Teaching. We believe that everyone has the right to participate in decisions that affect their lives. Subsidiarity requires that decisions are made by the people closest and most affected by the issues and concerns of the community. Enshrined, too, in Article XIII, Sec. 16 of our Constitution, this principle gives everyone both a space and a voice at the table, and empowers them to participate in creating the common good.

Subsidiarity is the dynamic cooperation principle in the multi-level governance of the European Union, and is also the guiding principle of the Canadian Federation. The same principle is behind Republic Act No. 11054, otherwise known as the Bangsamoro Organic Law. In business, an example can be found in the small-to-medium-sized enterprises (SMEs) in Germany, which is the third largest exporting nation worldwide. SMEs account for over 99% of all their businesses. A 2020 study by Fred Mear and Richard Werner of De Montfort University in the UK revealed that the application of subsidiarity coupled with adequate staff training in German SMEs resulted in “greater productivity and material performance as well as greater job satisfaction.” The study concludes that subsidiarity is the secret of success of their SMEs.

In the Philippines, one of the best models of governance guided by the subsidiarity principle is the Naga City People’s Council, initiated during the leadership of the late Jesse Robredo. During those 19 years as mayor of Naga, this Ramon Magsaysay awardee partnered with every sector of society and established an effective mechanism to public participation, particularly of the marginalized sectors and other vulnerable groups, in local governance.

Leni Robredo continues his legacy of partnership politics today. As Vice-President, her flagship anti-poverty program Angat Buhay has partnered with 372 organizations and mobilized P520 million worth of resources for more than 600,000 families in 223 communities nationwide. Although she is bereft of political machinery and resources, her presidential bid is driven by local people’s councils and the generosity of individuals and other volunteers campaigning on her behalf.

Are we ready for this kind of participatory and consultative democracy? Perhaps some still prefer taking orders instead of taking responsibility for their decisions. I suspect, however, that the youth are ready and capable of this kind of partnership politics. As digital pioneers and now digital natives, young people over the last two decades prefer collaborative, bilateral, experiential, and dialogical approaches to learning. We need to dialogue with them and ask what kind of future they want before we decide whom to vote for.

On Feb. 10, the De La Salle University Brothers expressed support for the Robredo-Pangilinan team: “In our collective discernment, the De La Salle Brothers of the Taft Community unanimously agreed that the tandem that has unceasingly defended our fundamental liberties and who continue to work in solidarity with those who empower and improve the plight of the poor and vulnerable sectors is the partnership of Leni Robredo and Kiko Pangilinan.” To date, more than 120 groups coming from different sectors of society have expressed their support for Leni and Kiko.

During the pandemic, a number of our schools took the opportunity to retrofit some old buildings in order to re-strengthen the existing structure, improve their sustainability, and make them seismic resistant. As we continue our democracy building since its restoration in 1986, we need to make it resistant to autocracy and authoritarianism. It is time to retrofit our democracy with subsidiarity through the Robredo-Pangilinan team.

 

Brother Richie P. Yap, Fsc is a member of the Brothers of the Christian Schools founded in France by St. John Baptiste de La Salle. He is a Humanities and Social Sciences faculty member of the Senior High School of De La Salle University and specializes in Religious Education.

richie.yap@dlsu.edu.ph

Europe warns Russia may face new sanctions for ‘war crimes’

REUTERS

SOME European Union (EU) governments are pushing for the bloc to quickly impose new sanctions in response to multiple reports that Russian troops executed unarmed civilians in Ukrainian towns, according to diplomats familiar with the discussions.

The European Commission was already honing measures that would mostly focus on closing loopholes, strengthening existing actions — such as export controls on technology goods and fully sanctioning banks already cut off from the SWIFT global payments system — and expanding the list of sanctioned individuals.

Some EU nations argue there is now a trigger for even more penalties to be put in place with speed, with Ukrainian officials reporting evidence of war crimes committed by Russian troops in northern areas, according to a diplomat familiar with the discussions.

There is not yet consensus on all the details for a new package, or when to implement it, even as the bloc’s executive arm seeks in the meantime to put forward a set of corrective measures as early as this week. A small number of member states, including Germany, are opposed to sanctioning Russia’s energy sector, its maritime trade and other key industries, and EU sanctions require unanimous support.

The question for EU members is what actions would spur a fresh and fuller set of sanctions. Some continue to argue such measures should only be explored if Russia were to use chemical weapons or capture a major city, three diplomats said, asking not to be identified as the discussions are private.

Other states say the reported events in places like Bucha, a town on the outskirts of Kyiv, are enough to warrant action. One of the diplomats said even the fresh measures on the table were not enough given the extent of the potential war crimes.

Estonia’s Prime Minister Kaja Kallas said a fifth around of “strong EU sanctions” should come as soon as possible, while Polish Prime Minister Mateusz Morawiecki called on EU leaders to hold an emergency summit soon to discuss the events in Bucha, saying the bloc should sever all trade ties with Russia without delay.

Ukraine has accused Russian soldiers of killing unarmed civilians, with officials saying they found hundreds of bodies in Bucha after Russian troops left. Mykhailo Podolyak, an adviser to President Volodymyr Zelensky, posted several photos on Twitter of dead people, some with their hands tied behind their backs.

Zelensky renewed charges that Russia is committing genocide in Ukraine, telling CBS’s Face the Nation his citizens “are being destroyed and exterminated.”

Kremlin spokesman Dmitry Peskov dismissed the claims of war crimes. “It’s clear to the naked eye that there are a lot of fakes and staged shots,” Mr. Peskov said by text message when asked to comment on images released by Ukrainian officials. Russia’s Defense Ministry called the accusations by Ukraine a “provocation” in a statement on its website.

German Foreign Minister Annalena Baerbock said in a Twitter post that anyone responsible for war crimes must be held accountable and sanctions would be tightened. In a statement to reporters in Berlin on Sunday, Chancellor Olaf Scholz said Germany and its allies will agree “further measures” against Russia in coming days. He did not provide details or mention the Russian imports of gas, oil and coal that Germany heavily relies on.

“Putin and his supporters will feel the effects and we will continue to make weapons available to Ukraine so it can defend itself against the Russian invasion,” Mr. Scholz said.

It comes as Russia shifts tactics in the war, redeploying troops away from the north after weeks of failure to make ground. Instead its campaign is focusing on areas in the east, including the Donetsk and Luhansk regions of Donbas, and Mariupol, a port city that has already been under siege for weeks.

Odesa meantime was rocked by explosions early Sunday. Russia fired high-precision missiles from ships and aircraft that struck an oil refinery and three storage facilities near the southwestern port city, Defense Ministry spokesman Igor Konashenkov said.

The organization Human Rights Watch said on Sunday it had documented several cases of apparent war crimes committed by Russian forces, including summary executions.

“The cases we documented amount to unspeakable, deliberate cruelty and violence against Ukrainian civilians,” said Hugh Williamson, Europe and Central Asia director at Human Rights Watch. “Rape, murder, and other violent acts against people in the Russian forces’ custody should be investigated as war crimes.”

Ukraine wants the International Criminal Court to send missions to investigate “war crimes” uncovered in Bucha and other formerly occupied towns, Foreign Minister Dmytro Kuleba said.

“We are still collecting bodies, uncovering graves, but the count is already in hundreds,” he told the UK’s Times Radio in an interview. On Twitter he again called for a full oil and gas embargo of Russia by Group of Seven (G7) nations and for ports to be closed to all Russian vessels and goods.

The US last month made a formal determination that Russian troops had committed war crimes. At the time Secretary of State Antony Blinken said the US had seen “credible reports of indiscriminate attacks and attacks deliberately targeting civilians, as well as other atrocities.” President Joseph R. Biden has said he considers Vladimir Putin a war criminal.

Mr. Blinken on Sunday called the images of alleged Russian atrocities a “punch to the gut,” but stopped short of labeling them genocide.

Increasingly frustrated with the stance of their counterparts, several EU countries, including Lithuania and Poland, have announced they will unilaterally stop importing Russian energy, while Estonia has put forward a proposal to withhold and freeze a share of Russia’s energy revenue that it says could be an initial compromise.

One of the diplomats said it was hoped that the unilateral moves would lead to an agreement among all member states to do more in order to avoid risking damage to the EU’s united front. — Bloomberg

Economist wins Costa Rica election for president

SAN JOSE — Economist Rodrigo Chaves extended a hand to the opposition upon winning the Costa Rican presidency on Sunday after a bruising election campaign in which the former World Bank official vowed to break with traditional politics.

Defeating former president Jose Maria Figueres by about 53% to 47% in a run-off vote, according to preliminary results, the bearded 60-year-old Mr. Chaves quickly dropped his confrontational campaign rhetoric and said it was time to work together.

“Tonight, let’s set aside the party colors that can easily divide us,” Mr. Chaves, told dozens of cheering supporters in the capital, San Jose, on Sunday night. “I humbly ask you that we unite beneath the blue, white and red of our national flag.”

Mr. Chaves will take office next month with his Social Democratic Progress Party (PPSD) holding just 10 of the national parliament’s 57 seats, while the party of Figueres, who came first in an indecisive first round vote in February, has 19.

At 57%, turnout was the lowest in decades, reflecting apathy among many voters in Costa Rica, where straitened economic times have fueled disenchantment with the political class.

Mr. Chaves, whose campaign was buffeted by allegations of sexual harassment stemming from his time at the World Bank, had vowed to use referenda to work around parliament, and also pledged to help the poor by keeping down the price of basic goods.

He has repeatedly denied the harassment allegations. But his policies, combative style and confrontational approach to the media drew comparisons to other anti-establishment leaders in the Americas, including former US president Donald Trump.

A few dozen Mr. Chaves’ supporters gathered for a modest but lively watch party at a downtown hotel. Dancing began before the results and the festivities continued after his speech.

Caravans of revelers celebrating Mr. Chaves’ victory honked their car horns as they passed the hotel where Mr. Figueres’ supporters had gathered. Inside, the mood was somber and party flags were lowered immediately after Mr. Figueres conceded.

ECONOMIC CHALLENGE
In the end, a belief that Mr. Chaves could deliver a fresh start for Costa Ricans proved decisive in seeing off the challenge of Mr. Figueres, who was president from 1994-1998 and is a scion of one of the most powerful political families in the country.

Adrian Salazar, 57, and his family were among the Chaves supporters celebrating in the streets of central San Jose.

“I voted thinking we weren’t going to win, but confident that we need new faces to save the country,” said Mr. Salazar, attributing the triumph to a “hunger for real change.”

Still, in his victory address, Mr. Chaves namechecked Mr. Figueres’ father, three-time president Jose Figueres Ferrer, as he sought to win over opponents to help him govern.

Mr. Chaves spent almost three decades at the World Bank, and is not a complete newcomer to politics. He briefly served as finance minister under outgoing president Carlos Alvarado, who is barred by law from seeking immediate re-election.

Mr. Chaves sought to underline his economic credentials in his campaign pitch to Costa Ricans, who over the past two decades have seen unemployment steadily creep up, inequality rise and the country slip deeper into debt during the coronavirus disease 2019 (COVID-19) pandemic.

In Jan. 2021, the country agreed to $1.78 billion in financial assistance from the International Monetary Fund.

In exchange, the government vowed to adopt a raft of fiscal changes and austerity measures to stabilize finances. But the fragmented parliament has so far made little headway on them. — Reuters

Ukraine accuses Russia of war crimes after bodies found bound, shot

President of Ukraine Volodymyr Zelenskyy/Flickr

BUCHA, Ukraine — Ukrainian authorities were investigating possible war crimes by Russia after finding hundreds of bodies, some bound and shot at close range, strewn around towns near Kyiv after Kremlin forces withdrew to refocus their attacks in other parts of the country. 

In the town of Bucha, 37 km northwest of Kyiv’s city center, Reuters reporters saw a man sprawled by the roadside, his hands tied behind his back and a bullet wound to his head. 

Bucha’s deputy mayor, Taras Shapravskyi, said 50 of some 300 bodies, found after Russian forces withdrew from the city late last week, were the victims of extrajudicial killings carried out by Russian troops. 

Reuters could not independently verify those figures or who was responsible for the killings. 

Russia’s defense ministry said in a statement issued on Sunday that all photographs and videos published by the Ukrainian authorities alleging “crimes” by Russian troops in Bucha were a “provocation,” and no resident of Bucha suffered violence at the hands of Russian troops. 

Satellite images showed a 45-foot-long trench dug into the grounds of a Ukrainian church where a mass grave was found this week. Reuters reporters in Bucha visited a mass grave at one church that was still open, with hands and feet poking through the red clay heaped on top. 

Pictures of the destruction and apparent violence towards civilians sparked widespread condemnation of Russia and leader Vladimir Putin. US Secretary of State Antony Blinken described the images as “a punch in the gut,” while United Nations Secretary-General Antonio Guterres called for an independent investigation. 

“Putin and his supporters will feel the consequences,” said German Chancellor Olaf Scholz, adding that Western allies would agree on further sanctions in the coming days. 

Japan said it would consult with allies about additional sanctions. 

“Japan takes deaths of innocent civilians in Ukraine extremely seriously. We are really shocked,” Chief Cabinet Secretary Hirokazu Matsuno told a regular news conference. 

Germany’s Defense Minister Christine Lambrecht said the European Union must discuss banning the import of Russian gas — a departure from Berlin’s prior resistance to the idea of an embargo on Russian energy imports. 

The UN Security Council will discuss Ukraine on Tuesday — as scheduled — and will not meet on Monday as requested by Russia, said Britain’s mission to the United Nations, which holds the presidency of the 15-member council for April. 

Russia had requested the Security Council convene on Monday to discuss what it called a “provocation by Ukrainian radicals” in the town of Bucha after Kyiv accused Russian troops of killing civilians there. 

Russia has previously denied targeting civilians and has rejected allegations of war crimes in what it calls a “special military operation” aimed at demilitarizing and “denazifying” Ukraine. Ukraine says it was invaded without provocation. 

Human Rights Watch said it had documented “several cases of Russian military forces committing laws-of-war violations” in the Ukrainian regions of Chernihiv, Kharkiv and Kyiv. 

Ukraine’s foreign minister called on the International Criminal Court to collect evidence of what he called Russian war crimes. The foreign ministers of France and Britain said their countries would support any such probe. 

However, legal experts say a prosecution of Putin or other Russian leaders would face high hurdles and could take years. 

WIDESPREAD FIGHTING
Russia has pulled back forces that had threatened Kyiv from the north, saying it intends to focus on eastern Ukraine. 

Ukraine’s General Staff said Russia expected to mobilize about 60,000 reservists. 

“The military-political leadership of the Russian Federation has begun measures to covertly mobilize reservists in order to bring military units to wartime status,” the general staff said on Monday. 

Reuters could not independently confirm the claim. 

Explosions were heard in the early hours of Monday in the cities of Kherson and Odesa, in the south, while air raid sirens sounded across the country’s east. 

British military intelligence said Russian troops, including mercenaries from the state-linked Wagner private military company, are being moved into the east. 

Serhiy Gaidai, the governor of eastern Luhansk region, said Russia was building up forces to break through Ukrainian defenses. 

“I am urging residents to evacuate. The enemy will not stop, it will destroy everything in its path,” he said in comments carried on Ukrainian television. 

Ukrainian President Volodymyr Zelenskyy appeared in a video aired at the Grammy Awards in the United States and appealed to viewers to support Ukrainians “in any way you can.” 

“What is more opposite to music? The silence of ruined cities and killed people,” said Mr. Zelenskyy. 

Missiles struck near Odesa on Sunday, with Russia saying it had destroyed an oil refinery used by the Ukrainian military. The Odesa city council said “critical infrastructure facilities” were hit. 

Ukraine evacuated more than 2,600 people from the southeastern port of Mariupol and the region of Luhansk on Sunday, Ukrainian Deputy Prime Minister Iryna Vereshchuk said. Ukrainian officials were in talks with Russia to allow several Red Cross buses to enter Mariupol, she added. 

The Red Cross abandoned earlier attempts due to security concerns. Russia blamed the charity for the delays. 

There was little sign of a breakthrough in efforts to negotiate an end to the war, although Russia’s chief negotiator, Vladimir Medinsky, said talks were due to resume on Monday via videoconference. — Simon Gardner/Reuters

Indonesia’s GoTo sells stake in Philippines e-wallet Coins.ph

SINGAPORE — GoTo Group, Indonesia’s biggest tech firm, said on Monday it had sold its majority stake in Filipino e-wallet Coins.ph, signalling the end of it efforts to capture the Philippines market.

Ride-hailing and payments firm Gojek, which merged last year with e-commerce leader Tokopedia to form GoTo, had acquired the stake in 2019 as it planned a full expansion into the Philippines. But the plan was halted in the same year after regulators did not grant it a ride-hailing license.

The Philippines, with a young, digitally-savvy population of 110 million, has seen increased investments from regional tech firms, including GoTo rivals Sea and Grab.

“Our focus on international operations remains in place,” said a GoTo spokesperson. 

“We are committed to our core market in Indonesia as well as to our deepening investments in Vietnam and Singapore.”

GoTo said last week it plans to raise $1.1 billion in its upcoming initial public offering (IPO) in Jakarta, in one of Asia’s biggest IPOs so far this year. — Reuters

Climate change could cost US budget $2T a year by end century — White House

Image via US Fish and Wildlife Service Southeast Region/Flickr

WASHINGTON — Flood, fire, and drought fueled by climate change could take a massive bite out of the US federal budget per year by the end of the century, the White House said in its first ever such assessment on Sunday. 

The Office of Management and Budget (OMB) assessment, tasked by President Joseph R. Biden, Jr., last May, found the upper range of climate change’s hit to the budget by the end of the century could total 7.1% annual revenue loss, equal to $2 trillion a year in today’s dollars. 

“Climate change threatens communities and sectors across the country, including through floods, drought, extreme heat, wildfires, and hurricanes (affecting) the US economy and the lives of everyday Americans,” Candace Vahlsing, an OMB climate and science official, and its chief economist Danny Yagan, said in a blog seen by Reuters ahead of publication on Monday. “Future damages could dwarf current damages if greenhouse gas emissions continue unabated.” 

The analysis found that the federal government could spend an additional $25 billion to $128 billion annually on expenditures such as coastal disaster relief, flood, crop, and healthcare insurance, wildfire suppression and flooding at federal facilities. 

Just last year, a record heatwave and drought in the US West gave rise to two massive wildfires that tore through California and Oregon and were among the largest in the history of both states. 

The severe drought that has gripped parts of the US West since mid-2020 is likely to persist or worsen this spring due, the National Oceanic and Atmospheric Administration said in March. 

US military bases, including Offutt Air Force Base in Nebraska and Tyndall Air Force base in Florida, have suffered billions of dollars in damage in recent years from floods and hurricanes. 

The OMB said increased wildfires could boost federal fire suppression costs between $1.55 billion to $9.6 billion annually. Nearly 12,200 federal buildings and structures could be flooded as seas rise with replacement costs of nearly $44 billion. 

Absent policies and actions to slow the rate of greenhouse gas emissions, world temperatures are on pace to rise more than 2 degrees Celsius above pre-industrial levels by the end of the century. 

The grim OMB assessment came hours before publication of a      long-awaited UN climate science panel report on methods of curbing the emissions, a report that some scientists say may downplay certain potentially devastating scenarios due to its consensual nature in which 195 governments had to sign off on it. 

Mr. Biden, a Democrat who positioned himself as a champion for tackling climate change when he took office in January 2021, has been forced to support hiked domestic oil drilling and liquefied natural gas exports to Europe as Russia’s war on Ukraine spikes energy inflation. 

The president’s “Build Back Better” bill, which contained hundreds of billions of dollars in funding to fight climate change and support clean energy, has been stalled in the narrowly-divided Senate by Republicans and West Virginia’s conservative Democrat Senator Joe Manchin, the founder and partial owner of a private coal brokerage. 

Mr. Biden late last month submitted a $5.8 trillion budget plan to Congress with a focus on deficit reduction in an apparent overture to Mr. Manchin has said he could not vote for the bill because it would worsen deficits. Mr. Biden’s budget plan calls for nearly $45 billion to tackle climate change in fiscal year 2023, an increase of nearly 60% over fiscal year 2021. — Timothy Gardner/Reuters 

What political upheaval in Pakistan means for rest of the world

World Economic Forum/Valeriano Di Domenico

WASHINGTON/ISLAMABAD — Pakistan Prime Minister Imran Khan blocked a no-confidence vote he looked sure to lose on Sunday and advised the president to order fresh elections, fueling anger among the opposition and deepening the country’s political crisis. 

His actions have created huge uncertainty in Islamabad, with constitutional experts debating their legality and pondering whether Mr. Khan and his rivals can find a way forward. 

The nuclear-armed nation of more than 220 million people lies between Afghanistan to the west, China to the northeast and nuclear rival India to the east, making it of vital strategic importance. 

Since coming to power in 2018, Mr. Khan’s rhetoric has become more anti-American and he has expressed a desire to move closer to China and, recently, Russia — including talks with President Vladimir Putin on the day the invasion of Ukraine began. 

At the same time, US and Asian foreign policy experts said that Pakistan’s powerful military has traditionally controlled foreign and defense policy, thereby limiting the impact of political instability. 

Here is what the upheaval, which many expect to lead to Khan’s exit, means for countries closely involved in Pakistan: 

AFGHANISTAN
Ties between Pakistan’s military intelligence agency and the Islamist militant Taliban have loosened in recent years. 

Now the Taliban are back in power, and facing an economic and humanitarian crisis due to a lack of money and international isolation, Qatar is arguably their most important foreign partner. 

“We (the United States) don’t need Pakistan as a conduit to the Taliban. Qatar is definitely playing that role now,” said Lisa Curtis, director of the Indo-Pacific Security Program at the Center for a New American Security think-tank. 

Tensions have risen between the Taliban and Pakistan’s military, which has lost several soldiers in attacks close to their mutual border. Pakistan wants the Taliban to do more to crack down on extremist groups and worries they will spread violence into Pakistan. That has begun to happen already. 

Mr. Khan has been less critical of the Taliban over human rights than most foreign leaders. 

CHINA
Mr. Khan has consistently emphasized China’s positive role in Pakistan and in the world at large. 

At the same time, the $60-billion China-Pakistan Economic Corridor (CPEC) which binds the neighbors together was actually conceptualized and launched under Pakistan’s two established political parties, both of which want Mr. Khan out of power. 

Opposition leader and potential successor Shehbaz Sharif struck deals with China directly as leader of the eastern province of Punjab, and his reputation for getting major infrastructure projects off the ground while avoiding political grandstanding could in fact be music to Beijing’s ears. 

INDIA
The neighbors have fought three wars since independence in 1947, two of them over the disputed Muslim-majority territory of Kashmir. 

As with Afghanistan, it is Pakistan’s military that controls policy in the sensitive area, and tensions along the de facto border there are at their lowest level since 2021. 

But there have been no formal diplomatic talks between the rivals for years because of deep distrust over a range of issues including Mr. Khan’s extreme criticism of Indian Prime Minister Narendra Modi for his handling of attacks on minority Muslims in India. 

Karan Thapar, an Indian political commentator who has closely followed India-Pakistan ties, said the Pakistani military could put pressure on a new civilian government in Islamabad to build on the successful ceasefire in Kashmir. 

On Saturday, Pakistan’s powerful army chief General Qamar Javed Bajwa said his country was ready to move forward on Kashmir if India agrees. 

The Sharif political dynasty has been at the forefront of several dovish overtures towards India over the years. 

UNITED STATES
US-based South Asia experts said that Pakistan’s political crisis is unlikely to be a priority for President Joseph R. Biden, Jr., who is grappling with the war in Ukraine, unless it leads to mass unrest or rising tensions with India. 

“We have so many other fish to fry,” said Robin Raphel, a former assistant secretary of State for South Asia who is a senior associate with the Center for Strategic and International Studies think-tank. 

With the Pakistani military maintaining its behind-the-scenes control of foreign and security policies, Mr. Khan’s political fate was not a major concern, according to some analysts. 

“Since it’s the military that calls the shots on the policies that the US really cares about, i.e. Afghanistan, India and nuclear weapons, internal Pakistani political developments are largely irrelevant for the US,” said Ms. Curtis, who served as former US President Donald Trump’s National Security Council senior director for South Asia. 

She added that Mr. Khan’s visit to Moscow had been a “disaster” in terms of US relations, and that a new government in Islamabad could at least help mend ties “to some degree.” 

Mr. Khan has blamed the United States for the current political crisis, saying that Washington wanted him removed because of the 

recent Moscow trip. — Jonathan Landay and Gibran Naiyyar Peshimam/Reuters

China expects sharp drop in holiday travel due to COVID outbreaks

Beijing Capital International Airport. — Wikimedia Commons

BEIJING — China’s transport ministry expects a 20% drop in road traffic and a 55% fall in flights during the three-day Qingming holiday due to a flare-up of coronavirus disease 2019 (COVID-19) cases in the country. 

More than 27 Chinese provinces and regions have recently reported coronavirus cases, mostly the highly transmissible Omicron variant, forcing the authorities to impose stringent mobility restrictions or even city-wide lockdowns. 

Chinese typically travel back to their hometowns to worship their ancestors during the tomb-sweeping festival. 

The average daily number of vehicles on the roads are estimated to reach 39–40 million during the holiday, which kicked off on April 3, down 21% from the same period last year, according to a statement from the Ministry of Transport. 

The number of planned flights was forecast to decrease by 55% this holiday from the year before, with air travelers also at only 20% of last year’s levels, the ministry said. 

China on Sunday reported a total of 13,287 new daily cases for April 2, the highest level since February 2020. 

The country’s “dynamic clearance” COVID policy has dampened consumption of transportation fuels in China. The two-stage lockdown in financial hub of Shanghai, starting from March 28, could reduce fuel demand by 200,000 barrels per day. 

Authorities across China have also implemented anti-COVID measures at entertainment sites during the Qingming holiday, including limiting the number of tourists and requesting for negative nucleic testing results from inter-provincial travelers. — Reuters

Taiwan says new COVID cases won’t affect reopening plans

REUTERS

KAOHSIUNG, Taiwan — A recent rise in Taiwan’s domestic coronavirus disease 2019 (COVID-19) cases will not affect plans to gradually reopen as hardly any of the new infections have caused serious illness, Premier Su Tseng-chang said on Sunday. 

Unlike large parts of the rest of the world, Taiwan has kept the pandemic well under control due to strict and early control measures, including an efficient contact and tracing system and largely closing its borders. 

In the first quarter of this year Taiwan reported 1,266 domestic cases, and only one death, though the government has been on alert as infections spiked over the past week or so, while remaining at comparatively low numbers, with 183 new cases on Sunday. 

Speaking to reporters in the southern city of Kaohsiung, Mr. Su said the “new Taiwan model” in combating COVID-19 was a “normal life, active epidemic prevention and steady opening.” 

“Although the number of confirmed cases will increase, more than 99.7% of them are mild or asymptomatic, so don’t worry, we can open up step by step steadily and live a normal life,” he added. 

The government has not raised its alert level despite the new cases and only tweaked existing rules, confident its measures already in place will be effective and unconcerned about health facilities being overwhelmed. 

Taiwan has maintained mandatory mask wearing, including while people are outside, and almost 80% of the population have had two vaccine shots while more than 50% have had three. 

Taiwan is gradually relaxing quarantine rules for all arrivals on the island. In March, the government lowered the amount of time to be spent in isolation from 14 days to 10, and hopes to reduce it further in the months ahead. 

However, Taiwan has not reopened to most foreign visitors, generally limiting those who can come in to citizens and residents. 

Taiwan has reported only around 24,000 COVID cases since the pandemic began and 853 deaths. — Reuters

[B-SIDE Podcast] Cancel culture 

The social media hive mind is as fast as it is vicious. Say or do something triggering and you could find yourself going viral and getting canceled. 

“The common definition of cancel culture is that it’s a form of public shaming. Sociologically, it’s society’s way of regulating itself. When we cancel somebody, you’re making a moral judgment,” says Nicole C. Curato, a Professor of Political Sociology at Centre for Deliberative Democracy and Global Governance at the University of Canberra. “The key to understanding cancel culture is that there’s an element of unmet expectation.”

In this B-Side episode, Ms. Curato tells former BusinessWorld reporter Marielle C. Lucenio what it means to get canceled and whether businesses should risk taking a political stand knowing that they could face backlash.

Nina Ellaine Dizon-Cabrera, founder and chief executive officer of Colourette Cosmetics, also shares what it was like when Twitter tried to cancel her in November 2020, after she used the hashtag #NasaanAngPangulo.

Recorded remotely in February 2022. Produced by Earl R. Lagundino and Sam L. Marcelo.

Philippines’ progress in fighting financial crimes

To keep the integrity of financial institutions and the economy in general, activities that lead to the diversion of resources away from economically- and socially-productive uses must be prevented from thriving. Fighting and preventing these activities, particularly money laundering and the financing of terrorism, have been regarded as essential in keeping economies stable.

With global institutions like the Financial Action Task Force (FATF) taking the lead in these areas, the Philippines has likewise been active in anti-money laundering and combating the financing of terrorism (AML/CFT), although the FATF’s latest evaluation reveals that much more needs to be achieved.

In the Philippines, the Anti-Money Laundering Act (AMLA) of 2001 serves as the framework by which efforts AML/CFT efforts are pushed. In efforts to improve its the country’s AML/CFT drive, the AMLA was amended several times, the latest of which was signed by President Rodrigo R. Duterte in January 2021. The Anti-Money Laundering Council (AMLC), the country’s financial intelligence unit (FIU), is tasked to implement AMLA, along with the “Terrorism Financing Prevention and Suppression Act of 2012.”

Republic  Act  No. 11521, which is said to further strengthen AMLA, gives additional powers to the AMLC, namely: applying before a competent court for a search and seizure warrant and a subpoena; preserving, managing or disposing of assets pursuant to a freeze order, preservation order or judgment of forfeiture; and implementing targeted financial sanctions against the proliferation of weapons of mass destruction and its financing. The amendment also expands the list of covered persons, which now includes real estate developers and brokers and Philippine offshore gaming operators (POGOs) and their service providers.

For over two decades now, AMLC has been steadfast in pushing AML/CFT in the Philippines. Its current chairman, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno, recalled the council’s recent initiatives last year at an annual AML/CFT summit.

“The AMLC is closely coordinating with law enforcers, such as the National Bureau of Investigation and the Philippine National Police, as they are the primary investigators for predicate crimes. For the first eight months of 2021, the AMLC has filed a total of 85 cases, varying from civil and criminal cases and involving over P1.31 billion and other assets,” Mr. Diokno started sharing in a message during the summit.

The BSP governor also noted the continued progress in the National Anti-Money Laundering and Countering the Financing of Terrorism Strategy (NACS) for 2018 to 2022, which is aimed at coordinating efforts of relevant agencies in AML/CTF.

“The NACS has also integrated the International Co-Operation Review Group (ICRG) Action Plan to ensure a whole-of-nation approach in addressing our country’s shortcomings in its AML/CTF system,” he added.

AMLC, Mr. Diokno continued, is sharing its risk assessments, strategic studies, and typologies with law enforcement agencies and covered persons to increase awareness of money laundering and terrorism financing typologies and red flags.

FATF, in a statement last month, recognized the country’s progress in AML/CTF. “Since June 2021, when the Philippines made a high-level political commitment to work with the FATF and APG (Asia/Pacific Group on Money Laundering) to strengthen the effectiveness of its AML/CFT regime, the Philippines has taken steps towards improving its AML/CFT regime, including by increasing the resources of its FIU and utilizing its targeted financial sanction framework for terrorism financing, ahead of any relevant deadlines expiring,” the global financial crime watchdog said on its website.

Additionally, AMLC Executive Director Mel Georgie B. Racela said in a recent BusinessWorld report that more financial intelligence analysts, investigators, and lawyers were hired to boost the operational capabilities of their units on compliance as well as litigation and evaluation. “Relevant Philippine authorities continue to work together in strengthening the country’s AML/CFT measures and in showing progress toward effectiveness,” Mr. Racela added.

In spite of these efforts, however, the Philippines is yet to get out of FATF’s “gray list” of jurisdictions subjected to increased monitoring for “dirty money” risks.

In the same statement, FATF calls for the Philippines to keep working on implementing its action plan by demonstrating that effective risk-based supervision of designated non-financial business and professions is occurring, as well as that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets.

Among several organizations actively collaborating in combatting financial crimes, the Philippine Amusement and Gaming Corp. (PAGCOR) is expected to play an important role in mitigating risks associated with casino junkets.

Aside from creating the PAGCOR Anti-Money Laundering Supervision and Enforcement Department (PASED), PAGCOR signed a memorandum of agreement with AMLC in 2020, enjoining both parties to cooperate in the area of capacity building to enhance both of their capabilities in addressing AML/CTF issues and concerns. Last January, PAGCOR was recognized by AMLC for its invaluable contribution AML/CFT efforts.

Furthermore, FATF also seeks progress on how the Philippines implements new registration requirements for money or value transfer services and applies sanctions to unregistered and illegal remittance operators, as well as on how it implements measures with respect to non-profit organizations without disrupting their legitimate activities.

The watchdog also sees the need to ensure that beneficial ownership information is accurate and up-to-date and that its access is streamlined for law enforcement agencies.

Moreover, the task force said it will keep checking for increases in the use of financial intelligence; in money laundering investigations and prosecutions; and in the identification, investigation, and prosecution of terrorism financing cases. It will also monitor for enhancements in the effectiveness of the country’s targeted financial sanctions framework for both terrorism financing and proliferation financing. — Adrian Paul B. Conoza

Towards strengthening anti-money laundering in the country

The Philippines has been deemed to be vulnerable to money laundering and terrorism funding. This, according to the Philippinest AML (Anti-Money Laundering) Report, is due to its growing economy and geographic positioning within major trafficking routes. Strengthening AML laws and regulations is therefore crucial to address the risk and fight financial crimes.

Money laundering is an illegal process of making assets or cash obtained from criminal activities appear to have come from legitimate sources. Simply put, from the word itself, money laundering makes dirty money look clean.

Back in 2000, lacking basic legal AML framework, the Philippines was blacklisted by the global money laundering and terrorist financing watchdog Financial Action Task Force (FATF), falling under its list of Non-Cooperative Countries and Territories (NCCT).

It was on Sept. 29, 2001 when the Republic Act (RA) No. 9160, otherwise known as the Anti-Money Laundering Act of 2001 (AMLA), was signed into law.

It declared the policy of the State “to protect and preserve the integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity.”

Under the AMLA, the State should also “extend cooperation in transnational investigations and prosecutions of persons involved in money laundering activities wherever committed.”

The law also created the Anti-Money Laundering Council (AMLC), which is tasked to implement the AMLA. AMLC is composed of the Bangko Sentral ng Pilipinas Governor as chairman, and the commissioner of the Insurance Commission and the chairman of the Securities and Exchange Commission as members, acting unanimously in the discharge of its functions.

But despite the RA 9160, the country remained on the NCCT list. The AMLA was then first amended through RA 9194 signed in March 2003. The amendments included the reporting of suspicious transactions, among others. The country was removed from the NCCT list in February 2005.

However, due to the lack of laws on counter-terrorism financing (CTF) and other required regulations, the Philippines was placed on the grey list in February 2010. It had to address the identified AML/CTF deficiencies until December 2011, which it failed to meet and was downgraded to the dark grey list in February 2012.

AMLA was further amended through RA 10167, and RA 10168 or the Terrorism Financing Prevention and Suppression Act of 2012 was signed, bringing the country back to the grey list yet urged to fully address the remaining deficiencies.

In February 2013, through the signing of RA 10365, AMLA utnderwent its third amendment. That year, the country exited the grey list but remained on the watchlist. The FATF still expressed concerns about the casino sector risk and the lack of coverage under the AMLA. Casino operatzions were later covered under the AMLA through the passage of RA 10927 signed in July 2017. The country was then removed from the watchlist.

Looking to further strengthen anti-money laundering regulations, AMLA was amended through RA 11521 signed in January 2021 and took effect on Feb. 8 last year. Part of such amendments, among others, include additional powers to AMLC and new covered persons.

Among the powers granted to AMLC are to apply for the issuance of a search and seizure order and subpoena before a competent court and the authority to “preserve, manage or dispose assets pursuant to a freeze order, asset preservation order, or judgment of forfeiture.”

The law also added “real estate developers and brokers” and “offshore gaming operators, as well as their service providers” as covered persons. It also required real estate developers and brokers to report single cash transactions that exceed P7.5 million to AMLC.

Furthermore, under the RA 11521, “the implementation of targeted financial sanctions related to the financing of the proliferation of weapons of mass destruction, terrorism, and financing of terrorism, pursuant to the resolutions of the United Nations Security Council” is added in the declared policy of the State.

The Philippines has returned to FATF’s list of “Jurisdictions Under Increased Monitoring” or the grey list in June 2021.

The watchdog, in a statement last month, said the country should continue to implement measures concerning casino junkets, beneficial ownership, non-profit organizations.

It nonetheless recognized the country’s progress since June last year, when it made “a high-level commitment to work with the FATF and APG (Asia/Pacific Group on Money Laundering) to strengthen the effectiveness of its AML/CFT regime.” — Chelsey Keith P. Ignacio