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Gov’t urged to implement nationwide academic remedial program

PHILSTAR/ MICHAEL VARCAS

A SENATOR on Sunday urged the government to implement a nationwide remedial program for students, after the Education department announced the suspension of in-person classes in areas under Alert Level 3. 

Senator Sherwin T. Gatchalian, chair of the Senate Committee on Basic Education, Arts and Culture, said Senate Bill No. 2355 or the proposed Academic Recovery and Accessible Learning (ARAL) Program Act would implement “systematized” tutorial sessions for learners who are struggling to achieve the minimum level of mastery required in Language, Mathematics, and Science. 

The proposed program aims to “cover the most essential learning competencies on Language and Mathematics for Grades 1 to 10 and Science for Grades 3 to 10,” Mr. Gatchalian said in a statement. 

He said the program seeks to improve learners’ critical and analytical thinking skills, adding that it will also target learners who did not enroll for school year 2020-2021.

Mr. Gatchalian, citing the National Economic and Development Authority, said the “yearlong lack of face-to-face classes will cost the Philippine economy P11 trillion in productivity losses over the next 40 years.” 

Finance Secretary Carlos G. Dominguez has said the government must find a way to regain the school days lost due to the pandemic, noting that the lack of face-to-face classes might affect the youth’s learning capacity. 

The pilot implementation of limited in-person classes started in Nov. 2021, with 28 Metro Manila schools joining the pilot run last December.

The Department of Education has already deferred the expansion of limited face-to-face classes following the imposition of Alert Level 3 in Metro Manila and various provinces due to a surge in coronavirus cases. — Kyle Aristophere T. Atienza 

Zamboanga City to require negative RT-PCR test result again starting Jan. 12

ZAMBOANGA City’s health office conducts free rapid antigen testing at the international airport and other entry points for travelers on a voluntary basis. — ZAMBOANGA CHO JMANGILA

ZAMBOANGA City will again require a negative RT-PCR test result starting January 12 from inbound travelers coming from areas under a coronavirus alert level higher than that of the city, which is currently at level 2.

The city government, in a statement over the weekend, said the local task force handling the pandemic response decided to reimpose the requirement to help avert the spread of the Omicron variant.

The rule applies regardless of a person’s vaccination status. It will be in effect at ports and land borders.  

For those coming from areas under the same or lower alert level, no test result is required but “may be subjected to random antigen testing upon entry through the airport, seaport or land border,” the local government said.  

Zamboanga City, a main gateway and commercial hub in southwestern Mindanao, has been conducting free rapid antigen testing at entry points for travelers on a voluntary basis.

The city had 178 active coronavirus cases as of Jan. 8 out of the total 24,175, based on Department of Health data. There were 671 deaths and 23,326 recoveries. — MSJ

Ban on welcome/send-off groups at Davao airport remains in effect as city notes rise in COVID cases

BOC

THE DAVAO City government has issued a reminder that welcome or send-off groups remain prohibited at all transport hubs, including the international airport, seaports, and bus terminals. 

“We need to remind, especially out-of-town people, that there is a ban on welcome and send-off at the Davao International Airport,” City Tourism Operations Office (CTOO) Head Generose D. Tecson said.

She noted that there were reported welcoming or send-off parties last week, “until we tightened security again.”

The ban was put in place starting Feb. 11, 2020 due to the coronavirus pandemic as well as for security reasons. The Civil Aviation Authority of the Philippines, which manages the airport, has also issued guidelines related to the ban. 

The reminder comes as local health officials warned of another potential coronavirus disease 2019 (COVID-19) surge given an increase in the number of daily positive cases last week. 

“There’s an increase in our COVID-19 cases. It began when we started having double digits… we had 67 (on Jan. 6). Yes, we are increasing but the positivity rate remains below five percent. We do not have a surge yet but we are anticipating it,” said Michelle B. Schlosser, a doctor who serves as spokesperson of the local coronavirus task force. 

She reported that the 67 new confirmed COVID-19 cases were among the 1,410 swabbed on Jan. 6, representing a 4.75% positivity rate. The city had zero new cases on Jan. 1, and the first double-digit record started on Jan 3 with 16 cases.

On Jan. 8, the city had 121 new cases, bringing the total to 54,124 with a 95.9% recovery rate, based on Department of Health data.

“The city is preparing for a surge and mitigating its risk po. We are requesting the public to submit themselves to COVID-19 management and have themselves vaccinated and avail of the booster shots,” Ms. Schlosser said in a statement from the city government.

Manila ramps pediatric vaccination, booster shots

PHILIPPINE STAR/ MICHAEL VARCAS

THE CITY government of Manila ramped up its vaccination program against coronavirus with sites open over the weekend for 12-17 year olds and booster shots, with services also offered to non-residents.

The weekend venues were mainly in shopping malls within the Philippine’s capital city, including SM Manila and San Lazaro, Lucky Chinatown, and Robinsons Place.

As of Friday, 229,787 shots had been administered to minors while 169,204 individuals have received their booster shots. 

The city government is also preparing for pediatric vaccination covering those aged 5 to 11. Online pre-registration through the Manila COVID-19 website is ongoing.

The national government said vaccine doses for 5-7 year olds are expected to be delivered soon. — Jaspearl Emerald G. Tan

For two years, I pined for travel. Getting home was a relief

PUPKLYAK-FREEPIK

PERSONAL DETAILS scrawled on Post-it notes, an unmasked security guard, and an hours-long wait in a US rental car. My family was two days from departure for Singapore and the window for getting a negative COVID-19 verdict was closing fast. The line at a drive-in testing operation at the University of Colorado snaked for several blocks and the sun had barely risen. It didn’t inspire confidence. The American healthcare system was wrestling with the rampant Omicron variant that showed where the US, for all its financial and industrial prowess, falls down. I just wanted to get back to the city-state safely. Its hyper-managed approach to the pandemic might have something going for it after all.

Singapore’s very gradual re-opening is being tested by Omicron, too, though officials have so far resisted returning to a version of lockdown. I have been skeptical the past two years as to whether Singapore had the policy mix right. Open too much and COVID may race through the densely populated island. Keep the economy under wraps too long, and the tiny republic could be left behind, jeopardizing its carefully tended reputation as a hub for capital and talent. After this trip, I have become more sympathetic to the things Singapore does appear to have gotten mostly right.

In the course of a three-week stay in Colorado to visit in-laws, my perspective went from awe at the relative absence of restrictions, to concern, and then to near paranoia. By the end of December, I donned a KN-95 mask to walk outside, even with the wide streets of suburban Denver deserted. Being allowed to return to Singapore required staying well — and having the papers to prove it. With cases surging, upending plans to return to offices, roiling airlines, and threatening to overwhelm public services, this looked like a riskier bet than a few weeks earlier.

The Vaccinated Travel Lanes that allow for quarantine-free travel to Singapore from selective locations remain in place, though the government has suspended sales of new tickets in response to Omicron. I half-expected quarantine to be reinstated by the time of my return. The health minister has warned a fresh virus wave will hit the island and that the country needs to be ready. Singapore reported 813 new COVID cases on Thursday, up from 805 a day earlier. There were 365 new Omicron cases.

Throughout Asia, the US is often portrayed as a kind of pandemic frontier land, where anything goes and authorities can’t get it right. As I looked deeper, I found important nuances. Granted, there is no nationwide mask mandate — in Colorado there’s not even a state requirement. There are, however, city and county rules that resemble parts of Singapore’s strictures: Many stores and cafes display signs making it clear that masking is a condition of entry.

A big failure is lack of enforcement. Nobody reminds people of their obligations. The idea that safe distancing ambassadors patrol shopping areas as they do in Singapore is a non-starter. At Dick’s Sporting Goods store in Lakewood, the doors are plastered with instructions to mask up. Many people do, yet some refuse, and staff don’t police the rules. We cut short a visit to the Downtown Aquarium in Denver upon seeing scores of people, many uncovered, jammed between the gift shop and the restaurant. Our life is in Singapore, for now, and we just couldn’t risk infection, especially given our two small children are not yet vaccinated.

Arriving at Denver airport Dec. 30, armed with negative test results and reams of paperwork, proved the start of another ordeal. Despite flying with a Singapore Airlines partner, United Airlines, to San Francisco before connecting with SIA, counter staff appeared flummoxed by the phalanx of boxes to be checked: Vaccinated Travel Pass, which enables your access to the VTL, receipts for pre-paid PCR tests on arrival, and so on. Then there was the inevitable delay and the prospect of cancellations owing to Omicron and weather. At what point do we just walk away and regroup? Getting a later flight wouldn’t necessarily do it. Our COVID protocols would need to be redone because of their two-day validity.

In the end, we made it. A seven-day regimen awaited. A PCR test at Changi Airport was followed by a combination of tests at home and a few supervised by staff at a clinic. Once you’re confirmed negative, and upload the results to a Ministry of Health website, you go about your day. Friends and colleagues elsewhere in Asia are surprised there isn’t mandatory quarantine in a hotel or state facility, as there is in Hong Kong. A few months earlier, before VTLs, there would have been. For the luxury of sleeping in my own bed, I am thankful.

Such gratitude shows how much COVID skews perceptions of what is normal.

The week of tests delivered the desired outcome. Big relief. It’s not that Singapore has excelled in handling the pandemic. For a country ruled by one party since independence in 1965 that has carefully cultivated a reputation for administrative excellence, there’s been an unnerving amount of backtracking and misfires. Things can change quickly and a new wave of restrictions might not be far off. As a center for trade and commerce, officials need to be careful not to scare away too much top-tier imported talent. Many were holding out for the year-end home visits.   

I do, however, feel safer. Better to do my job in the right time zone. The kids can go to school. The office is open, Singapore having recently stepped away from work-from-home as default. I hope to travel for business in coming months. For now, being back safely might be enough.

BLOOMBERG OPINION

Uncertainty and polarization

PIKISUPERSTAR-FREEPIK

Before the spread of the Omicron variant, the world expressed optimism that the pandemic would wane. The rollout of safe and effective vaccines — fast in advanced countries but slow in developing ones — offered a way out of the pandemic. The pandemic would fade and turn into an endemic disease in places lagging in vaccination.

The outlook thus was a strong recovery in the major economies with knock-on effects on emerging markets. But then came Omicron. And it is rampaging throughout the world.

Omicron has a large number of mutations, and it is highly transmissible. It is capable, too, of immune escape. It has re-infected people previously infected by COVID-19. It has struck fully vaccinated people, including those who have received a booster.

We need to combat the idea that Omicron is “a blessing in disguise” for being mild and that it is a “natural vaccine.” Omicron is a virus, not a “natural vaccine.” People are getting hospitalized and dying because of it.

Those who treat Omicron as a blessing do not understand how deadly a highly infectious, albeit less severe variant, can be. To quote the title of an essay by Kevin Kavanagh (Infection Control Today, Jan. 5, 2022): “Those who underestimate Omicron aren’t doing the math.” The high infection rate has translated into an extremely high absolute number of hospitalizations and deaths even though the big proportion of cases are mild. This in turn has overrun the health systems.

In a trice, Omicron has dampened the world’s, and our country’s, incipient optimism. The brighter mood has dimmed, and expectations have lowered.

The full impact of Omicron is about to be felt in the Philippines. The onset of 2022 is characterized by COVID-19 cases growing exponentially. More, we are barely convalescing from the devastation caused by super-typhoon Odette.

Omicron has created new problems. Uncertainty has heightened. But Omicron is not the sole factor behind the uncertainty. Political polarization may be spooking business and investments.

Election time always brings uncertainty. Businessmen would rather wait for the election outcome before making any investment decisions. It is somewhat different this time — more perilous. The business community is most sensitive to the political polarization, which will intensify in the event of a victory for Ferdinand “Bongbong” Marcos, Jr. At present, Marcos, Jr. leads the poll surveys by a wide margin.

The eminent Financial Times titled its Nov. 26, 2021 story: “Marcos Jr’s presidential bid stirs painful memories in Philippines.”

Pantheon Macroeconomics, an independent UK-based provider of economic intelligence, fears that a Marcos victory poses a risk to Philippine economic recovery. Its report, released in December 2021, said: “Elections in the Philippines are rarely fought on economic policy. But they still carry significant event risk, particularly if Ferdinand R. Marcos, Jr., the current frontrunner and the son of an ex-dictator, wins.”

Japan’s Nomura Global Research shares the same view as above. In its monthly report titled “No holiday cheer” (December 2021), the Nomura global financial services group wrote: “Marcos Jr., in our view will likely be regarded as less market-friendly than [Leni] Robredo, particularly when it comes to experience at the national level and in articulating a strategy for the country to recover from the pandemic.” In the same vein, while Nomura gave Robredo a perfect score of five for business friendliness, Marcos received a score of one.

Nomura further said: “A Marcos victory will likely be viewed negatively owing to perceptions against him, in part because his candidacy is facing some petitions for disqualification on grounds of making false statements and a previous conviction of failing to file income tax returns.”

The legal case of disqualifying Marcos as a candidate for President is the proverbial Damocles sword hanging over his head.

The polarization was seeded early in the term of President Rodrigo Duterte. As payback for the political support of the Marcos family, Duterte allowed the remains of the late dictator be buried at the Libingan ng mga Bayani with full military honors.

Worse, Duterte has pursued a similar violent approach to that which Marcos undertook during the dictatorship. Duterte has waged a merciless war against both drug users and rebels, marred by extra-judicial killings. He has stymied the opposition by jailing critics and closing a media franchise.

Meanwhile, Marcos, Jr. never conceded his loss to Robredo in the 2016 election for Vice-President. He challenged the narrow election outcome, but the Supreme Court eventually ruled against him.

The abandonment of civilized engagement, the sowing of distrust, the utter disrespect to opposition personalities, and the virulence of the rhetoric as exhibited by the likes of Larry Gadon all spell increased polarization. And for years, there has been a virtual army spreading fake news to tarnish Robredo and to distort history.

The fact is, Leni Robredo’s approach of cooperating with the administration and other parties and her campaign of “radical love” serve to attenuate the polarization.

Even as Omicron is causing uncertainty and wreaking havoc, it will come to pass in a few weeks or months. But there is a bigger uncertainty, a more dangerous problem. How we resolve the uncertainty and polarization that will have a longer-term impact, for better or for worse.

We need to overcome the pandemic. We need to end the polarization. The opportunity to do so and to enable recovery and healing is, obviously, to elect the most competent, the most unimpaired candidate.

Still, there is a bright side. Despite the fact that the economy has been badly battered by the pandemic, the expectation is that once the pandemic subsides — we just don’t know at this time where its terminal point is — the economy will adjust towards recovery.

 

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

www.aer.ph

Why the National Competitiveness Council needs to be reconvened

The decision of the Duterte government to dissolve the once successful National Competitiveness Council (NCC) and integrate its functions into the Anti-Red Tape Authority (ARTA) proved to be a mistake. The NCC should have been allowed to continue operating.

Although ARTA, under the baton of the attorney Jeremiah Belgica, has made significant headway in minimizing red tape in government agencies, it is lacking the bandwidth to address the multitude of issues needed to lead the country towards higher rankings in competitiveness. Under ARTA’s watch, the Philippines’ standing eroded in terms of overall economic competitiveness, corruption perception, rule of law/justice system, economic freedom, and gender equality, among others indices. Of course, ARTA cannot be blamed for everything. Much of the degradation is the doing of Malacañang’s policies, questionable practices, and corruption scandals.

The NCC was a success because it was hyper-focused and managed professionally. It will be recalled that from its establishment in 2006 until its final days in 2016, the Philippines rose in most competitive indices nearly every year. The country’s steady ascent was most pronounced between 2010 and 2016, under the watch of its private sector co-Chairman, Guillermo “Bill” Luz.

Mr. Luz managed the NCC like a private sector think tank. Although its board of directors consisted of the Secretaries of Trade and Industry, Finance, Energy, Tourism, Education, and NEDA (National Economic and Development Authority), its officers and staff were composed of professionals, mostly from the academe.

The beating heart of the NCC were sectoral working groups that supervised 13 aspects of governance as follows: Agri-Trade Logistics, Anti-Corruption, Anti-Smuggling, Budget Transparency, Business Permits and Licensing, Education and Human Resources Development, ICT Governance, Transport and Trade and Logistics, Judicial System, Infrastructure, Inter-Agency Business Process Interoperability, Performance Governance Systems, and, Power and Energy Services.

These working groups assessed the situation on the ground and formulated action plans to make bureaucratic processes more efficient and more transparent. They worked hand-in-hand with government agencies and/or local government units to implement reforms. Those that had difficulty implementing reforms were subjected to a meticulous mentoring and process coaching exercise. Government units that failed to roll out reforms were brought to the attention of the cabinet secretary in whose jurisdiction they fell. Top-level action ensued to clear the impediments to reforms.

Like a private enterprise, the NCC operated with a well-considered action plan and stealth. They were committed to meet lofty targets on slim timelines.

Unfortunately, ARTA has its hands full with its two core mandates. The first is to assist both National Government agencies and local government units (LGUs) in streamlining their operations, re-engineering their procedures, and digitizing their regulatory management systems. The second is enforcement oversight.

Although it would seem that streaming, re-engineering, and digitization is the cure-all to improve competitiveness, it is only one aspect of it. There are other peripheral issues that must be addressed such as enforcement of contracts, openness of markets, disaster resiliency, monitoring gender equality and discrimination, and many others.

Given the enormity of ARTA’s two core mandates, it is left with little capacity to attend to the peripheral issues that affect competitiveness. The results speak for themselves. After peaking in 2015, the Philippine tumbled in most competitive indices even before the pandemic struck in early 2020. Here is a summary of our pre-pandemic standings:

In the World Economic Forum’s Global Competitiveness Report, the Philippines was deemed the 47th most competitive economy among 138 nations. By 2019, the country’s standing plunged to 64th place. We are in 6th place among ASEAN’s 10 nations, better than Vietnam, Cambodia, Laos, and Myanmar.

In the World Bank’s Ease in Doing Business rankings, the Philippines was in 95th place out of 189 countries evaluated in 2015. Our position deteriorated to 124th place in 2018 before improving to 95th place in 2019. We are in 7th place among ASEAN’s 10 nations, only better than Cambodia, Laos, and Myanmar.

In Transparency International’s Corruption Perception Index, the Philippines was adjudged the 95th most corrupt country among 189 nations in 2015. By 2019, corruption perception worsened and our standing plummeted to 113th place. Again, in ASEAN, we are only better than Cambodia, Laos and Myanmar.

In the World Travel and Tourism Report, the Philippines was at 74th place among 141 countries in 2015. Our standing slipped by one rank to 75th place in 2019.

The World Economic Forum’s Gender Gap Report measures gender equality. The Philippines has always been a global leader in this field, having been ranked the 7th most gender neutral nation in 2015. Our position deteriorated to 16th place in 2019 due to the growing sentiment of misogyny in the executive branch of government.

The Global Innovation Index measures an economy’s capacity to harness technologies to produce goods and services in a cheaper, faster, or better manner. The Philippines was in 83rd position in 2015 and improved to 54th position in 2019. This is one area where the Philippines improved in the last six years.

The World Economic Forum’s Global Information and Technology Index measures future readiness of economies. The Philippines was in 77th place in 2015, falling to 80th place in 2019.

The WJP Rule of Law Index measures a country’s performance in upholding fundamental rights, national security, regulatory enforcement, civil and criminal justice. The Philippines was in 51st position, out of 113 countries in 2015. Our ranking sank to 90th place in 2019.

In terms of Economic Freedom, or the extent by which one can control his or her own labor and property to pursue wealth, the Philippines was 76th place out of 178 nations in 2015. By 2019, our standing was practically unchanged as we ranked 73rd place out of 180 nations.

Soft power refers to a country’s economic and cultural influence in international relations. Our standing remained static here too. We stood at 30th place out of 100 countries in 2015. In 2019, we slipped one notch down to 31st place out of 100 countries.

As we prepare for a new government next year, the next administration will do well to recognize that ARTA is doing a good job in cutting red tape and streamlining bureaucratic processes. Let them carry on with more focus and not be stymied by managing the country’s competitiveness rankings. It makes more sense to reconvene the National Competitiveness Council again according to the think-tank model of Mr. Luz. It is a formula that works.

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@AndrewJ. Masigan

Twitter @aj_masigan

What for, is the Budget?

BW FILE PHOTO

“A national highway? No signs at all of any steel bars to reinforce the gravel-and-sand-and-concrete mix. No wonder Typhoon Odette (international name: Rai) could easily crush it and leave it looking like soda biscuits cracked into pieces,” Bishop Ambo said on Facebook. “The photo shows a road that is only about three inches (about 7.5 centimeters) thick with one inch of asphalt applied on top of it. Who would construct a national highway this way?” he asked.

Bishop Pablo Virgilio Siongco David, popularly called Bishop Ambo, is the bishop of the Diocese of Kalookan and president of the Catholic Bishops’ Conference of the Philippines (CBCP). He is a known critic of President Rodrigo Duterte’s War on Drugs and human rights violations (The Philippine Star, retrieved July 8, 2021).

But Bishop Ambo has asked a question that needed to be asked. Why do Filipinos get a national highway “looking like soda biscuits cracked into pieces” after a typhoon? Taxes have paid for infrastructure, and government has been incurring soaring debt to finance the shortfall of revenues for Duterte’s ambitious Build, Build, Build program. What for, then, is the National Budget?

On Dec. 20, 2021, Duterte signed a P5.024 trillion ($98.45 billion) budget for 2022, now the country’s largest ever, 11.5% bigger than the 2021 national budget. This budget is Duterte’s last before his single six-year term ends in June. Midway through the budget year, the new government to be elected on May 9 will have to take over and implement the spending plan based on the optimistic revenue and sources projections of the Duterte government.

The 2022 budget will “inspire actions that focus on building resilience amidst the pandemic, sustaining momentum towards recovery, and continuing the legacy of infrastructure development,” Duterte’s office said in a statement. It includes capital outlays of P1 trillion for infrastructure spending, budgetary support for state corporations, and capital transfers to local government units (https://www.reuters.com/, Dec. 30, 2021). The combined allocation for Road Networks and Flood Control System accounts for 48.3% of the total infrastructure outlay for 2022 (https://cpbrd.congress.gov.ph/).

The Congressional Policy and Budget Research Department (CPBRD) reports: “Combined allocations for all departments in 2022 amounts to P2,869.2 billion — which is 57.1% of the total P5,023.6-billion expenditure program. The remaining P2,154.4 billion are Special Purpose Funds (SPFs) involving appropriations for specific purposes, but recipient agencies have not yet been identified during budget preparation. Allocations for the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) combined accounts for over one-fourth (26.3%) of the total NG budget in 2022. Total ALGU-IRA (share of Local Government Units [LGUs] of all national tax collection including that of the Bureau of Customs) amounts to P959 billion which is P263.5 billion (37.9%) higher than the 2021 level.

“Other big items under SPF are as follows: 1.) Interest Payment, P512.6 billion; 2.) Pensions and Gratuity Fund (PGF), P232.9 billion; and, 3.) Budgetary Support to Government Corporations (BSGC), P206.7 billion. Next to ALGU-IRA, it is PGF that posts a relatively high increment in 2022 — i.e., it will increase by P80.1 billion of 52.4%. Roughly 71% of total PGF will be used to pay for pensions of the military and uniformed personnel or MUPs (P153.1 billion), veterans (P10.9 billion), and civilian personnel (P1.6 billion).” (Ibid., CPBRD). “The military and police both get bigger budgets than the health department. The Armed Forces of the Philippines was given P213.78 billion while the Philippine National Police was given P190.69 billion” (https://www.rappler.com/, Dec. 30, 2021).

“It may be noted that an amount of P45.4 billion for the procurement of COVID-19 vaccine booster shots was placed under Unprogrammed Appropriations — the funding of which will depend on availability of new sources of revenues, including foreign loans,” the CPBRD said (CPBRD, op. cit). The Department of Health was given a total of P188.3 billion in the budget (Rappler, op. cit.).

“The Philippines 2022 Budget is not afraid of Debt,” analyst James Guild says (https://thediplomat.com/ Nov. 14, 2021). “Outstanding government debt ballooned from P8.2 trillion in 2019 to P10.2 trillion in 2020 as the state ran big deficits to battle the pandemic. Through the first three quarters of 2021, government debt has increased again to P11.9 trillions. Even without knowing the final numbers for 2021, the government is planning to borrow yet another 7.5% of GDP in 2022 to finance public expenditures. That shows clear evidence to me that Philippine policymakers are not living in fear of capital markets punishing them for over-borrowing. They obviously feel it is more important at this time to stimulate the economy with counter-cyclical public spending.”

Guild says that this fiscal attitude of debt aggressiveness is similar to that of Indonesia in its 2022 budget, and quite different from that of Thailand which is seeking to reduce government spending, deficits, and borrowings as soon as possible. He suggests that “they (Philippine policymakers) expect economic growth in 2022 to be robust, with GDP growing between 7% to 9%. I don’t know if the economy is really going to grow at that clip, and neither do they. But the other important assumption is that they’ve allowed room for plenty of borrowing to make up the difference.” (Ibid.)

Gross domestic product (GDP) is expected to expand by 5% to 5.5% this year, up from a previous estimate of 4% to 5%, the government’s Development Budget Coordination Committee (DBCC) said after reviewing the 2021-2024 macroeconomic assumptions, fiscal program, and growth targets. The government retained its GDP growth targets at 7%-9% for 2022 and 6%-7% for both 2023 and 2024. The budget deficit for 2021 was estimated at 8.2% of GDP, considering higher-than-target revenues and lower-than-programmed disbursements. Government projects the deficits for the next three years to be on a downward trajectory: 7.7% of GDP for 2022, 6.1% of GDP for 2023, and 5.1% of GDP for 2024 (Reuters, op.cit.).

Three key actors in the National Government’s infrastructure development efforts (the Departments of Transportation or DoTr, Public Works and Highways, and Information and Communications Technology or DICT) have had dismal performances in terms of disbursement (over total available appropriations). In 2020, the disbursement rates of these departments were at a low of 23.3% (DICT), 28.6% (DPWH), and 35.3% (DoTr). The low absorptive capacity of these departments can be alarming especially as the infrastructure outlay for 2022 is considerably high (CPBRD, op.cit.). In 2021, the Health department (DoH) posted an obligation rate of 86.1%, and a much lower disbursement rate of 69.2%. This is also alarming considering the crucial role that the department has to play in the country’s fight against COVID-19. “It is incumbent upon DoH to ensure that appropriations redirected to it are actually expended, and that they are utilized wisely and prudently for specified purposes,” the CPBRD said in its website.

Funds are to be utilized for specific purposes. That is what the National Budget is for. A masterplan for spending is meticulously laid out and expected to be followed. But the intricacy of the bureaucracy dulls the sharp checks and balances, and “the devil is in the details” — the Devil meaning Corruption.

That’s how we get a national highway crushed by a typhoon “looking like soda biscuits cracked into pieces.”

 

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

ahcylagan@yahoo.com

China reports country’s first community spread of Omicron

REUTERS

CHINA saw its first Omicron cases in the community, igniting a mass testing blitz in the northern city of Tianjin as the country strives to maintain its zero-tolerance approach to COVID in the face of more transmissible variants.

The two cases in the port city were confirmed as being Omicron by the Chinese Center for Disease Control and Prevention, after its local branch completed the genome sequencing, CCTV reported. The infections were from the same transmission chain but officials have yet to establish if the strain is the same as imported Omicron cases reported earlier in Tianjin, according to the report.

China’s commitment to its COVID Zero policy has seen it restrict movements and implement mass testing and other measures in cities spread across the country. Further outbreaks raise the risk of new lockdown measures that could disrupt production and shipping in an economy already battling weak consumption and a property market slump.

Tianjin first reported the two cases late Saturday and neither of the people, one of whom is a child, have traveled outside of the city in the past 14 days. The government announced that it will start mass testing from 7 a.m. Sunday, in order to “effectively prevent the further spread of the omicron variant,” state news agency Xinhua reported.

China, which is set to host the Winter Olympics in Beijing next month, has been determined to maintain COVID Zero even as cases spread and other countries adopt policies of living with the virus. The recent flareups, while small compared to international cases, are fueling the most protracted stretch of infections in China since the virus first emerged in Wuhan two years ago.

The southern technology hub of Shenzhen is discouraging people from leaving after reporting two infections, the eastern metropolis of Zhengzhou required all residents to be tested and Xi’an in the northwest has confined most of its population of 13 million to their homes since before Christmas.

China reported 92 new local cases on Saturday, which compares to 90,000 in New York state.

While cases have continued to crop up, until the weekend China hadn’t seen local transmission of the Omicron variant. — Bloomberg

Vaccine skeptics slammed across Europe amid surge

REUTERS
A PERSON attends a demonstration to protest against a bill that would transform France’s current coronavirus disease 2019 (COVID-19) health pass into a “vaccine pass,’’ in Paris, France, Jan. 8. — REUTERS

FROM Boris Johnson to Emmanuel Macron, Europe’s leaders are increasingly going after anti-vaxxers as the battle against the fast-spreading Omicron variant deepens the region’s pandemic fatigue.

Amid a seemingly unstoppable surge in infections, officials are focusing restrictions on unvaccinated people rather than resorting to widespread clampdowns. The strong overall uptake in inoculations has emboldened leaders to go more aggressively after holdouts, prodding them in various ways to roll up their sleeves.

French President Macron took the rhetoric to a new level this week when he said his government’s strategy was to “p—- off” those who have refused shots. In the UK, Johnson accused anti-vaxxers of spreading “nonsense.” German Chancellor Olaf Scholz, who supports making shots compulsory, has labeled the anti-vax movement “a tiny minority of reckless extremists.”

With the pandemic entering its third year and about 70% of Europe fully vaccinated, the leaders are betting they have popular support for this approach.

Across the continent, the policy of coercion is becoming l’ordre du jour, with many governments trying to make life difficult for those refusing a vaccine and brushing aside concerns about civic freedoms.

Mr. Macron, who faces a difficult re-election campaign this spring, is banking on support among the millions who are desperate to leave the pandemic behind. Some 77% of the population is fully vaccinated, according to government figures, putting him squarely on the side of the majority.

On Friday, he stood by his remarks, saying it “was my responsibility to ring the alarm.”

VACCINE RATES
On Saturday, several thousand people joined marches across France to protest against restrictions for the non-vaccinated, brandishing placards denouncing Mr. Macron’s choice of language and his government’s latest efforts to tighten rules. According to local press reports, the protests were mainly peaceful although police fired tear gas amid minor clashes in Paris.

France is toughening restrictions on those without inoculations, looking to put in place a vaccine pass to access bars and restaurants, or even to travel by train.

Neighboring Italy on Wednesday made shots compulsory for people over 50, though the fine of 100 euros ($113) for non-compliance has been kept deliberately low.

In Austria, the unvaccinated are barred from most areas of life, including non-essential shopping, hotels and restaurants, although enforcement is spotty. The country also wants to make vaccines mandatory for everyone from next month, though implementation may be delayed.

Thousands marched in Vienna on Saturday against the restrictions and upcoming mandate, resuming weekly protests seen before the holidays. Banners included ones that urged “Have the courage to use your own judgement.” Meanwhile, a number of businesses in Austria have closed voluntarily due to high COVID cases as the Omicron variant spreads.

Germany, Europe’s biggest economy, is already in what some officials have termed a “lockdown of the unvaccinated,” with limits on access to theaters and other leisure activities.

On Friday, authorities created an even bigger hurdle, requiring negative tests at restaurants and non-essential stores for fully vaccinated people. Only those who’ve had boosters get no-hassle access.

“Anyone who hasn’t been immunized is endangering themselves,” Mr. Scholz said.

The controversy over such measures found a new global flashpoint this week when world tennis No. 1 Novak Djokovic — a vocal vaccine-mandate critic — was denied entry to Australia. That followed anger over a decision to grant the Serbian player an exemption to play in the Australian Open without proof of vaccination.

European governments — unable to halt, or even slow, the spread of infections — are zeroing in on the unvaccinated as part of efforts to protect their health services from being swamped.

While vaccines don’t completely stop transmission, research suggests they reduce the chance of severe symptoms from Omicron. That should mean less pressure on hospitals, and especially intensive care units.

Data in the UK show a far higher hospitalization rate among those who haven’t had a vaccine.

While Mr. Johnson has said he favors a voluntary approach to vaccinations, this week his frustration with anti-vaxxers boiled over.

“I want to say to the anti-vax campaigners, the people who are putting this mumbo jumbo on social media, they are completely wrong,” he said. Given the “tragedy” going on, “it’s time that I and government call them out on what they’re doing,” he said.  — Bloomberg

EU plans law requiring tech companies to do more to fight child sexual abuse

REUTERS

FRANKFURT — The European Union (EU) plans to legislate in the coming months to require technology companies to do more to tackle child sexual abuse, beefing up current voluntary arrangements, a top official said in a newspaper interview.

EU Home Affairs Commissioner Ylva Johansson told Germany’s Welt am Sonntag that internet service providers and social media firms had reported 22 million offences related to child sexual abuse in 2020, up from 17 million in 2019.

But she said that was only a fraction of the real number. “I will propose legislation in the coming months that will require companies to detect, report, and remove child sexual abuse,” Ms. Johansson was quoted as saying.

“A voluntary report will then no longer be sufficient.”

Under current EU rules, social media networks and mail and messenger services such as Facebook and Google have a choice whether or not to follow up on offences.

Mr. Johansson said the fight against the abuse of minors should be better coordinated and a specialist European center was needed to improve prevention, law enforcement and victim support. — Reuters

Seven dead, 3 missing after rock face collapse at Brazilian waterfall

BRASILIA — At least seven people died and nine were seriously injured when a wall of rock collapsed on top of motor boats below a waterfall in southeastern Brazil on Saturday, the fire department said.

A tower of rocks suddenly broke away from the canyon wall and came crashing down on several leisure boats, sending out a huge wave over the lake at Capitolio, in Minas Gerais state.

Videos posted on social media showed tourists shouting as the column of rock crashed into the water, smashing two boats.

Authorities said three people were still missing after others feared lost were located by telephone. Divers searched the lake.

The people hurt in the accident had broken bones and one was in serious condition in hospital with head and facial injuries. Some 23 others were treated for light injuries, he said.

The region has been under heavy rainfall for two weeks, which could have loosened the rock face. On Saturday, a dike overflowed at an iron ore mine 300 kilometers to the east, cutting off a major federal highway.  — Reuters

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