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Meat processors question wider distribution of pork imports 

MEAT PROCESSORS said they oppose plans to more widely distribute pork imports to areas where prices are high, saying the measure will not significantly address high prices.

In a statement, the Philippine Association of Meat Processors, Inc. (PAMPI) said Memorandum Circular No. 23 issued by the Department of Agriculture (DA) on Oct. 25 “is an exercise in futility and will not address the unabated high prices of pork.”

In a memorandum circular, the department cleared the distribution of pork imports to include areas with “relatively high” prices of pork outside the current coverage area known as the National Capital Region Plus (NCR Plus), which consists of Metro Manila, Bulacan, Rizal, Laguna, and Cavite.

Initially, the DA had allowed the sale of pork imports in wet markets, supermarkets, and Kadiwa outlets within the NCR Plus.

The memorandum circular also allowed the selling of pork imports under MAV plus to processors and institutional buyers.

According to PAMPI, the government increased the volume of pork imports and reduced tariffs without addressing the constraints on selling imported pork, which is frozen, in wet markets without freezers.

“Stall owners in wet markets do not have freezers. They barely have enough capital to pay for daily deliveries of fresh pork. So how can they sell imported pork even if they are priced cheaper?” PAMPI said.

“On the other hand, importers and traders who fell for the reduced tariff incentive cannot move their imported pork to the wet markets. As a result, imported pork products are tied up in cold storage,” it added.

As of Oct. 11, the National Meat Inspection Service (NMIS) estimated that frozen pork in accredited cold storage facilities at 73,294.01 metric tons (MT), up 60.2% from a year earlier.

Rolando E. Tambago, Pork Producers Federation of the Philippines, Inc. president, said in a mobile phone interview with BusinessWorld that the recent memorandum circular of the DA is “ridiculously unreasonable.”

“The DA should offer tangible solutions to help hog producers and make sure that the surplus supply from the Visayas and Mindanao is reallocated to other major market areas,” Mr. Tambago said.

“In fact, there are regions in the Visayas and Mindanao that are experiencing massive surpluses of pork,” he added.

Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said in a statement that there is no mechanism for distinguishing pork imports within the Minimum Access Volume (MAV) quota, which are covered by the order, from those exceeding the MAV quota once the products exit the port of first entry.

“Since there is no first border quarantine inspection, we would not even know if these pork imports are tainted with African Swine Fever (ASF) or not,” Mr. Cainglet said.

On May 10, President Rodrigo R. Duterte issued EO 133, which expanded the MAV quota for pork to 254,210 MT from the previous 54,210 MT, referred to as the so-called MAV plus, in order to increase supply and stabilize prices in the wake of the African Swine Fever outbreak.

The additional 200,000 MT worth of pork imports were divided into two tranches, with 140,000 MT scheduled to arrive between July and October and the remaining 60,000 MT landing between November and January. — Revin Mikhael D. Ochave 

PHL may tap Hungarian expertise in digitization, transport  

PHILSTAR

THE PHILIPPINES expects to collaborate with Hungary in areas like digitalization and transportation, according to the Department of Trade and Industry (DTI).

In a statement Wednesday, the DTI said it met with Hungarian representatives on Oct. 18 and 19 for the third meeting of the two countries’ Joint Commission on Economic Cooperation.

The DTI said discussions on transport cooperation are expected to begin soon with a draft memorandum of understanding (MOU) already tabled for consideration.

It added that the two sides also clarified their plans to cooperate on the environment.

“The meeting also paved the way for discussions on Technical and Vocational Education and Training (TVET) cooperation and science, technology and innovation through MoUs being finalized by relevant agencies with their Hungarian counterparts,” the DTI said.

Agreements announced include a material transfer agreement between the Hungarian University of Agriculture and Life Sciences and the Bureau of Plant and Industry for a project in Barangay Don Bosco, Parañaque City. The agreement involves vegetable seed for testing and experimentation.

Another agreement was a partnership agreement between Startup Campus Inkubator Plc., Hungary and QBO Innovation Hub.

“(The agreement) aims to capitalize on the rapidly growing startup ecosystems with government support in high-growth services such as artificial intelligence, big data, and financial technology, among others,” the DTI said.

The DTI said discussions are continuing on finalizing a loan package to implement projects of the Laguna Lake Development Authority and the National Disaster Risk Reduction and Management Council.

“The projects include an online water quality monitoring system in Laguna de Bay and its tributaries and the purchase of compact water treatment units for use during disasters and other emergencies,” the DTI said. — Revin Mikhael D. Ochave  

BIR form 2316, substituted filing and e-signatures

With the end of the year approaching, most people start preparing for the holidays. For accountants and tax practitioners, this is also the time to plan for year-end statutory obligations, such as the Certificate of Compensation Payment/Tax Withheld for Compensation Payment With or Without Tax Withheld (BIR Form 2316) which must be issued to employees and submitted to the Bureau of Internal Revenue (BIR).

BIR Form 2316 must be accomplished by an employer for each employee receiving salaries, wages, and other forms of remuneration, indicating the total amount paid and the taxes withheld for the calendar year. It must be issued to the employee on or before Jan. 31 of the succeeding year, or on the day of last payment of wages in case of termination from employment. This certificate, in turn, should be attached to the employee’s Annual Income Tax Return (AITR) in case the employee opts to file one or is not qualified for substituted filing.

EMPLOYEES QUALIFIED FOR SUBSTITUTED FILING
Employees who meet certain conditions need not file an AITR. The BIR Form 2316 filed by their employers serves as their AITR (i.e., substituted filing). Under Revenue Regulations (RR) No. 2-98, as amended, individual taxpayers qualified for substituted filing are: 1. those receiving purely compensation income, regardless of the amount, 2. Those with only one employer in the Philippines for the calendar year, and 3. those whose income taxes have been withheld correctly by the employer. Qualified employees must signify their intention for substituted filing by signing the declaration portion of BIR Form 2316 in three copies and returning it to the employer.  The employer must file the duplicate copy of the form to the BIR with the certified list of qualified employees, reflecting the name of the employee, their tax identification number (TIN), their compensation income, tax due, and tax withheld.

Under BIR rules, should the employee need a BIR-stamped ‘Received’ copy of BIR Form 2316, this may be requested from the BIR through submission of a form accompanied by the employer’s certification of inclusion in the list of employees qualified for substituted filing. Employers may also handle this request on behalf of their employees.

EMPLOYER OBLIGATIONS FOR BIR FORM 2316
The employer is to prepare BIR Form 2316 in triplicate, to be distributed as follows: original — employee’s copy; duplicate — BIR’s copy; and triplicate — employer’s copy, to be retained for 10 years.

BIR Form 2316 must be signed by both the employer’s authorized officer and the employee, under penalty of perjury. The employer must give the original copy to the employee, while a duplicate copy is to be submitted by the employer to the concerned BIR office no later than Feb. 28 of the succeeding year.

On Aug. 3, 2021, the BIR issued RR 16-2021, further amending the provisions on the manner of submitting BIR Form 2316. Under the RR, only scanned copies of BIR Form 2316 are to be accepted by the BIR. Taxpayers should therefore ensure that the file format and naming conventions, including the actual submission of the form, comply with the rules of the BIR.

Under the RR, all taxpayers must manually submit a Digital Versatile Disc Recordable (DVD-R) containing the soft copies of BIR Form 2316 using PDF file format with the filenames alphabetically arranged in the DVD-R. The filename must contain the employee’s surname, TIN, and the taxable period (e.g., Dela Cruz_123456789000_12312021). In addition, the DVD-R must be labeled following the format prescribed by the BIR along with a notarized sworn declaration that the soft copies contained in the DVD-R are the complete and exact copies of the originals.

Since there are still months to go, I’m hoping that the BIR also comes up with a platform for the online submission of these documents, similar to the Electronic Audited Financial Statements (eAFS) System, which is the platform used for the online submission of required attachments to the AITR. It will eliminate the need for taxpayers to flock to the BIR offices, and make complying with this obligation more convenient and efficient, not to mention safer for all concerned.

ARE ELECTRONIC SIGNATURES ALLOWED FOR BIR FORM 2316?
On Feb. 26, 2021, the BIR circulated Revenue Memorandum Circular (RMC) No. 29-2021, allowing the use of e-signatures on certain BIR Forms/Certificates, including BIR Form 2316. This was in response to the continuing effect of the COVID-19 pandemic and compliance with Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

Under the circular, employees and withholding agents/employers have the option to use e-signatures on the BIR Forms even without seeking prior approval from the BIR. An e-signature includes digital signatures and other methods. Previously, the requirement was that the forms should be signed manually or in wet ink to be considered valid and binding.

It is also worth noting that under RMC 18-2021 circulated on Feb. 2, 2021, the BIR allowed the submission of duplicate copies of BIR Form 2316 even without the employees’ signatures, provided that the authorized representative of the taxpayer-employer signed it. Although this RMC was specifically for the taxable year 2020, let’s hope that the BIR also implements this for the 2021 submission.

Considering that the COVID-19 pandemic continues to affect our way of working, the BIR should continue to develop and implement new measures and platforms that will help taxpayers to meet their statutory obligations. After all, in precarious times, adaptation is the key to moving forward.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Renz Anthony K. Boaloy is a manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

renz.anthony.k.boaloy@pwc.com

Atlanta defeats Houston 6-2 to win Game One of World Series

ATLANTA Braves designated hitter Jorge Soler hits an infield single against the Houston Astros during the eighth inning in Game One of the 2021 World Series at Minute Maid Park. — REUTERS

JORGE Soler and Adam Duvall slugged home runs and the Atlanta Braves overcame the loss of right-hander Charlie Morton by riding an early outburst to a 6-2 victory over the host Houston Astros in Game 1 of the World Series on Tuesday.

The Braves scored in each of their first three at-bats, building a 5-0 lead against Houston’s Framber Valdez (0-1). The left-hander had twirled eight spectacular innings in Game 5 of the American League Championship Series (ALCS) against the Boston Red Sox, but three pitches into his fourth start this postseason, Valdez found himself trailing.

Soler drilled a 2-0 sinker from Valdez into the Crawford Boxes in left field, a 382-foot leadoff blast that signaled the start of an abbreviated outing for Valdez. The Braves recorded three batted balls with exit velocities of at least 105 mph in the top of the first inning, including an Austin Riley RBI double that scored Ozzie Albies and doubled the lead to 2-0.

After facing six batters in the first inning, Valdez faced seven more in the second, with Soler plating Travis d’Arnaud with a fielder’s choice grounder. Despite those struggles, Valdez retook the mound in the third, but he faced only two batters, with Duvall following an Eddie Rosario single with a two-run homer to left that traveled 387 feet with a 111.7 mph exit velocity.

Valdez allowed five runs on eight hits and one walk with two strikeouts in two-plus innings.

Morton pitched out of a bases-loaded jam in the bottom of the first thanks in part to a dazzling defensive play from Albies, who smothered a grounder from Kyle Tucker before assisting on the final out. Morton opened the second by taking a sharp grounder from Yuli Gurriel off his lower right leg but appeared unfazed while retiring the bottom of the Houston lineup in order.

In the third inning, Morton winced and buckled while recording a called third strike on the leadoff batter, Jose Altuve. He departed with Atlanta medical personnel, and the Braves later announced that Morton sustained a fractured right fibula that would sideline him for the remainder of the World Series.

Armed with a five-run lead, Braves relievers A.J. Minter (1-0), Luke Jackson, Tyler Matzek and Will Smith covered the final 6 2/3 innings, allowing two runs on seven hits and one walk with eight strikeouts. Minter threw a career-high 43 pitches in 2 2/3 innings after replacing Morton in the third.

Houston got run-scoring groundouts from Chas McCormick in the fourth inning and Carlos Correa in the eighth. Atlanta’s Freddie Freeman hit a sacrifice fly in the top of the eighth.

Soler, Albies and Rosario each had two hits for the Braves. Houston got three hits from Michael Brantley and two apiece from Kyle Tucker and Gurriel.

Game 2 of the best-of-seven series will be played on Wednesday in Houston. — Reuters

Top conference players have eyes on the PBA championship

PBA Philippine Cup BPC candidates (from left) Ian Sangalang and Calvin Abueva of the Magnolia Hotshots and Mikey Williams of the TnT Tropang Giga have their eyes on the championship but proud and honored to have been considered for the tournament’s top individual award. — PBA IMAGES

GAME Four of the best-of-seven PBA Philippine Cup finals series was played on Wednesday just as the best player of the conference (BPC) award was handed out.

Three players in the running for the top individual plum are currently seeing action in the championship of the ongoing Philippine Basketball Association (PBA) tournament, namely: Magnolia Pambansang Manok Hotshots’ Calvin Abueva and Ian Sangalang, and TnT Tropang Giga rookie Mikey Williams.

While they were proud and honored to be among those in the hunt for the BPC award, all three made it known that still primary for them is to win the championship.

“To win the BPC award is just a bonus for me,” said Mr. Abueva in Filipino during the pre-finals press conference on Oct. 20.

He was leading in statistical points (SPs) in the most recent update of the league on the race with 34.2 SPs, built on averages of 15.2 points, 10 rebounds, 2.8 assists, 1.1 blocks and a steal through the semifinals.

“The stats you don’t pay too much attention to that. You go to the finals to win the trophy above all else,” he added.

The same goes for teammate Mr. Sangalang, third-running as per the last update.

“I went here to the bubble not to be a candidate for the BPC, but to get back to the finals and win,” said the Magnolia big man, who had 33.0 SPs from norms of 16.7 points, 8.8 rebounds and 1.4 assists.

“I’m just playing my game and making sure I’m ready each time. All other things are just going to be a bonus.”

For Mr. Williams, fourth in the race with 32 SPs, winning the championship with TnT has always been the goal.

“I came to the team trying to fit in and do my share in our push to win the championship and here we are. That was the goal and I’m just being ready,” said the number four pick in this year’s rookie draft.

Entering Game Four, Mr. Williams and the Tropang Giga had the inside track to win the title, leading the series at 2-1.

Mr. Williams had been solid in the first three games of the series, averaging 29.3 points, punctuated by a 39-point outburst in their Game Three loss where he made a PBA finals record 10 three-pointers. He was complementing it with 6.6 rebounds, 4.3 assists and a steal.

The Hotshots dropped to a 0-2 hole early in the series but managed to break through with a win in the third game to gain some traction.

Mr. Abueva had been churning out a double-double of 12 points and 10 rebounds while Mr. Sangalang had been steady for 16.6 points, 5.3 rebounds, 2.3 assists and 1.3 blocks.

Other players in the running for the BPC award were Northport’s Robert Bolick with 33.7 SPs (second) and San Miguel’s June Mar Fajardo with 31.8 SPs (fifth).

U23 Azkals play Singapore in AFC Asian Cup Qualifiers

THE U23 Azkals return to action in the 2022 AFC Asian Cup Qualifiers on Thursday, taking on host Singapore at the Jalan Besar Stadium. — DARSHAN MEHTA INSTAGRAM/THE AZKALS FB PAGE

THE Philippine Under-23 (U23) men’s national football team returns to action in the 2022 Asian Football Confederation (AFC) Asian Cup Qualifiers on Thursday, taking on host Singapore at the Jalan Besar Stadium.

Coming off a 0-3 loss at the hands of Korea Republic in their opening match on Monday, the U23 Azkals are looking to bounce back in their scheduled 8 p.m. contest against the home team to steady their bid for a spot in the Asian Cup, which is happening in Uzbekistan next year.

A second loss will strike a major blow to the Philippine side’s bid as qualification phase format only has the 11 group winners and the four best runners-up advancing to the final tournament.

The U23 Azkals held the Koreans to a nil-nil count at the halfway point of their match but were unable to contain their opponents in the second half once the latter got traction.

Defender Lee Kyu-hyuk broke through for Korea in the 52nd minute, with teammate Go Jae-hyeon making it a 2-0 game 20 minutes later.

For good measure, the young Taeguk Warriors added another goal in the 89th minute, care of Park Jeong-in.

Against Singapore, the U23 Azkals will face a team which is out to get its own breakthrough after being held to a 2-2 draw by Timor-Leste in their opener also on Monday.

Singapore turned to an added time goal from Jordan Emaviwe to pull even and salvage a point for its efforts.

NEW COACH
Meanwhile, the Philippine women’s national football team has a new coach in Alen Stajčić.

The former Australian team coach Mr. Stajčić, 47, was officially named on Tuesday and is tasked to steer the Philippines in its bid for a historic International Federation of Association Football (FIFA) Women’s World Cup spot through the AFC Women’s Asian Cup India 2022 in January.

Mr. Stajčić replaced Marlon Maro, who guided the national team to a second straight AFC Asian Cup berth after victories over Nepal and Hong Kong in the AFC Women’s Asian Cup qualifiers in Tashkent, Uzbekistan, in September.

The new Philippine coach boasts of impressive credentials, including a five-year stint with the Australian women’s national team, which was highlighted by qualification to the 2015 and 2019 FIFA Women’s World Cup and the Rio 2016 Summer Olympics, where the team reached the quarterfinals.

Joining Mr. Stajčić is assistant coach Nahuel Arrarte.

“We are thrilled that Alen Stajčić has accepted the position to be the head coach of the Philippine Women’s National Team head coach,” said Philippine Football Federation (PFF) President Mariano Araneta. “His appointment shows the commitment and determination of the PFF to give our women’s national team the best possible chance to qualify for the FIFA Women’s World Cup.”

The PFF is currently in the process of finalizing the team’s preparation for the Asian Cup that will see it hold tryouts and training in California beginning on November.

Anthony Davis leads LeBron-less Lakers past Spurs

LOS Angeles Lakers forward Anthony Davis (3) attempts to control the loose ball above San Antonio Spurs forward Drew Eubanks (14) in the second half at AT&T Center. — REUTERS

ANTHONY Davis racked up 35 points and grabbed 17 rebounds, Russell Westbrook added 33 points and 10 rebounds, and the pair hit the final two baskets of the game to lift the visiting Los Angeles Lakers to a 125-121 overtime win over the San Antonio Spurs on Tuesday.

Playing without LeBron James, who was ruled out hours before the game with right ankle soreness, the Lakers pulled out to a six-point lead in the extra period before San Antonio rallied to tie the game at 121. Davis then grabbed an offensive rebound and scored, the Spurs’ Devin Vassell missed a 3-point shot, and Westbrook slammed home a dunk on the ensuing possession to finish off San Antonio.

The Spurs led by 12 points heading to the fourth quarter but Los Angeles forged a 17-4 run to take a 102-101 advantage with 7:11 to play. A layup by San Antonio’s Keita Bates-Diop with 32.2 seconds left ultimately sent the game into the extra period.

San Antonio went 1-for-9 from the free-throw line in the fourth quarter and overtime.

Malik Monk added 17 points and Austin Reaves had 10 for the Lakers, who have won two straight after losing their first two outings of the season. James suffered his injury in the second quarter of Los Angeles’ win over Memphis on Sunday.

Jakob Poeltl led the Spurs with a career-high 27 points and added 14 rebounds. Dejounte Murray added 21 points, 12 rebounds and a career-high 15 assists for his fifth career triple-double; Lonnie Walker IV had 21 points; Vassell scored 19; and Keldon Johnson tallied 11 points San Antonio, which has lost three straight games.

San Antonio led 29-27 at the end of the first quarter despite 10 points in the period from Davis. The Lakers jumped back in front on a 3-pointer by Kent Bazemore at the 7:38 mark of the second quarter and led by as many as six points over the last half of the period until Walker IV canned a jumper from beyond the arc with 1.7 seconds remaining to push the Spurs to a 62-61 lead at the break.

Davis led all scorers at half time with 16 points, with Westbrook adding 12 for the Lakers. San Antonio had four players in double figures scoring in the first half, led by Murray’s 13 points. Vassell and Walker IV had 11 and 10 points, respectively, off the bench for the Spurs by half time. — Reuters

Tier One Entertainment bares expansion to Japan

TIER One Entertainment, the gaming and esports entertainment pioneer in Southeast Asia, announced its first foray outside the region by expanding its footprint to Japan.

The expansion is part of its strategic move when it signed an investment deal with its investors KAYAC, a Japan-based internet firm, and Warner Music Group, a global media company that has a strong market presence in the East Asian country.

Along with its plans to discover the hottest up-and-coming local talents to sign and develop, Tier One Entertainment is debuting its first idol group in Japan to delight Japanese and global fans.

These four multi-talented individuals are set to redefine what it means to be an influencer and content creator who challenge the status quo.

The first member was announced by the company, with details shared by its Chief Executive Officer, Tryke Gutierrez, during the official launch livestream on Oct. 8.

Model and cosplayer Harry “har_fie” Field will be the first member of “Project 4,” the unofficial name of the idol group. The rest of the members will be revealed in a series of promotions that Tier One Entertainment will launch in the next couple of months.

With the company strategically positioned at the intersection of content creation, media properties, and esports, the launch of the new idol group comes along with its vision of bringing gaming to the mainstream.

“Japan is a country with a long history both in gaming and innovation in multimedia. With over 57% of its population being gamers, there’s a big opportunity for us to grow our brand,” said Mr. Gutierrez.

“Tier One is bringing our brand of entertainment to the Japanese gaming industry. Our goal is to gather a core team and build an initial roster of content creators that will elevate esports and video games in Japan in ways the country has never experienced before,” he added.

Tier One Entertainment was founded in 2017 and is a Singapore-registered entity with operations in the Philippines, Myanmar, Malaysia, Vietnam and Japan.

Raducanu battles past Hercog to secure first WTA Tour victory

US Open champion Emma Raducanu had to work hard for her first win on the Women’s Tennis Association (WTA) Tour after her fairytale New York triumph as she recovered from a set down to beat world number 124 Polona Hercog (4-6, 7-5, 6-1) in the Transylvania Open in Romania on Tuesday.

Raducanu announced herself on the grandest stage when she claimed the Flushing Meadows title as a qualifier last month, but the 18-year-old Briton lost to Aliaksandra Sasnovich of Belarus in straight sets at Indian Wells.

Still without a coach after parting ways with former Davis Cup player Andrew Richardson and having skipped the Kremlin Cup in Moscow, world number 23 Raducanu had sought to temper the expectations but showed her class in a difficult match.

She surrendered the opening set tamely after being 4-1 up before showing glimpses of the fighting character that marked her maiden major success to draw level at one-set apiece.

With the momentum going her way, Raducanu raised her level by a notch and roared to 5-0 in the deciding set. — Reuters

Does sustainability please the crowd?

UPKLYAK-FREEPIK

(Part 3)

In the past couple of weeks, we discussed how crowdfunding was an up and coming way to spur sustainability projects. Today I discuss the results of a research project co-authored with Professor Yulia Titova at IESEG School of Management building on the Master thesis of my student Jade Tissier. We had unique access to the KissKissBankBank (KKBB) crowdfunding platform and created a database using this information. Founded in September 2009, KKBB is the first and largest crowdfunding platform in Europe. Although it is Europe-based, projects are spread across 174 countries making it a truly global platform.

Any person with an innovative or creative idea can present their project to the platform free of charge. It then goes through a screening process by KKBB. KKBB lets project creators categorize their projects within one of the following categories: Music, Movies, Live performance, Arts, Sports and Expeditions, Food, Print, Fashion, Web and Tech, Photography, Education, Design and Innovation, Media, Event, Games, Local authorities, and finally the two categories we define as sustainability-oriented: Solidarity and Green projects. A large percentage of projects presented are culturally oriented, whereas sustainability oriented-projects account for 13% of all projects. We examined projects from 2010-016, with a final dataset including 22,404 project observations.

What do our results say? Does sustainability please the crowd? Indeed, it does. Crowdfunders choose to support sustainable projects above all other types of projects. This first finding clearly supports previous research that investors are motivated by both financial and non-financial returns. Indeed, the crowdfunders we looked at not only do not require monetary compensation but further, are keen to select projects based on their sustainability components. The immaterial utility gained such as happiness and satisfaction of making a difference in this world can be shown to matter to today’s young, generally wealthy investors.

However, we uncovered that this is particularly relevant for social sustainability projects rather than environmental sustainability projects. It appears that the urgency of the projects can partially explain this, wherein we find that social sustainability projects are perceived by the crowd to be more urgent than environmental projects (and other non-sustainability projects on average) and thus attract more money from investors.

Indeed, with the increasing amount of awareness campaigns on the precarious situation in which we find ourselves in today, it seems that crowdfunding campaigns have not only become shorter over time; but that people are more willing to fund campaigns that appear more urgent. This is a very interesting and keen observation. Whereas some forms of Social or Responsible Investment appeal to longer term investors and want to go against the short-term mentality of financial markets, crowdfunding appeals to investors who want to make a direct and tangible impact on an urgent, usually social problem. Further, due to the fact that there are a myriad of problems and issues that need to be solved, agents simplify their selection process by funding those that appear to be in most need of funding first.

We also find that whereas the quality of the campaign measured by the presence or absence of a video has no real effect on the probability of funding, whether direct or indirect, the information provided measured by the length of the description moderates the attractiveness of the more urgent social sustainability campaigns. This quality measure can be interpreted as the availability of information. That is, if a campaign is social, likely perceived as urgent, but provides less information, then it is more likely to attract less funding than if it provides more information. These results are indeed intuitive and illustrate how agents, regardless of preferences for philanthropic action nevertheless take into account rational considerations in making decisions. This highlights a very strong case for crowdfunding as a phenomenon: Projects must be both urgent and provide information for it to be successful, because people care about the impact of their money.

Our study is a first foray into this domain and there is much more to explore for future research. First is the categorization of projects. What we label as sustainability projects are based on the campaigners’ self-selection of categorizing their project as either solidarity or green projects. This does not mean that projects in other categories are simply not sustainable. However, it does appear that campaigners prefer not to position them as such. More research needs to be done to categorize which projects are sustainable or, even better, to have an index or level of sustainability to add more variation to the data. Further improvements must also be done for a better operationalization of quality. We must be able to clearly distinguish a good project from another in a better, more systematic way. 

Most important is the fact that we do not know what happens after the fundraising campaign. Success cannot merely be conceptualized as a fundraising activity — albeit being the focus of our paper and nevertheless a big first step. Rather, we must be able to assess the social impact of crowdfunded projects after they have been funded to understand whether our money truly does what we, as a crowd, dream for it to do: change the world.

“One person can make a difference, and everyone should try.” — John F. Kennedy n

Note: References are available upon request.

 

Daniela “Danie” Luz Laurel is a business journalist and anchor-producer of BusinessWorld Live on One News, formerly Bloomberg TV Philippines. Prior to this, she was a permanent professor of Finance at IÉSEG School of Management in Paris and maintains teaching affiliations at IÉSEG and the Ateneo School of Government. She has also worked as an investment banker in The Netherlands. Ms. Laurel holds a Ph.D. in Management Engineering with concentrations in Finance and Accounting from the Politecnico di Milano in Italy and an MBA from the Universidad Carlos III de Madrid.

Living with plastic

RAWPIXELS.COM-UNSPLASH

We live in a plastic world, no two ways about that. And, whatever we say or think of plastic and plastic products, an outright ban on production or sale is simply unrealistic at this point. I am sure alternative materials are in the works. Eventually, plastic will be replaced, much like how plastic replaced wood, metal, glass, and stone in a lot of applications. But plastic will not be leaving us anytime soon.

Recycling plastic waste, for me, is an acceptable option for now. However, recycling all discarded plastic is easier said than done. Consumers have a big role to play in this, particularly in making their plastic waste suitable for recycling. The burden of preparation, I believe, must be shared by consumers themselves who enjoy the convenience of using plastic products.

Manufacturers should be made responsible for their products and their impact on the environment. However, consumers of these products share in that great responsibility. While consumers can opt to shun plastic use as much as possible, this is easier said than done. The alternative is to limit plastic use, and then reuse or dispose responsibly by recycling.

To prepare plastic refuse for recycling takes a lot of effort at the consumer level: rinsing or washing when necessary; sorting; cutting into smaller pieces when needed; popping plastic bubbles and tightly packing plastic bags; and then bringing the items to the local material recycling facility or to drop off points for such purpose. The entire effort entails time and resources as well as energy.

But such is the responsibility that goes along with the convenience of using plastic products. And if people choose to enjoy this convenience without exercising any responsibility for plastic use, then we will end up with a world drowning in refuse. Already, our waste problem is at crisis level, with much of it now polluting particularly waterways and oceans.

The key is educating consumers on how to properly dispose of plastic waste and how to prepare them for reuse or recycling. This is the main challenge for manufacturers, producers, and the government. We need to make it easy and convenient for people to properly dispose of plastic waste. We also need to educate them on how to best go about it. We can also provide incentives to communities for reusing and recycling plastic waste.

It is laudable that that a group of recyclers are turning bottles, single-use sachets, and snack food wrappers into building materials. Reuters reported that this group uses the Plastic Flamingo, or The Plaf, to collect waste, shred them, and then mold them into posts and planks called “eco-lumber.” The end-product can be used for fencing, decking, or even shelters.

“[It] is 100% upcycled material, 100% made from plastic waste materials, we also include some additives and colorants and it is rot-free, maintenance-free, and splinter-free,” Reuters quoted Erica Reyes, The Plaf’s chief operating officer, as saying. The social enterprise has collected over 100 tons of plastic waste to date.

But the big challenge is that “people are unaware of how to dispose of these plastics,” said Allison Tan, The Plaf’s marketing associate. “We give that avenue that instead of putting it in landfills or oceans… you give it to recycling centers like us and we would upcycle them into better products.”

In a forum co-hosted by the World Bank and the Norwegian Embassy in Manila in 2019, I recall a private sector representative who noted that the Philippines did not produce nearly as much plastic products as other countries, and yet it was among the top producers of plastic waste in our oceans. From this, I gathered that the issue was not our production or use of plastic, but our inability to properly dispose of our plastic waste.

But effective solid waste management means taking “politics” and “corruption” out of local garbage collection and disposal. It also means educating people and giving them the means to reuse and recycle particularly plastic waste. Manufacturers, producers, and consumers should be incentivized rather than penalized for doing their part in addressing the plastic waste issue.

I recall a study by the University of Baghdad, by researchers Zainab Ismail and Enas A Al-Hashmi, that used waste plastic in concrete mixture as aggregate replacement. After 86 experiments and 254 tests, the duo concluded that reusing waste plastic as a sand-substitution aggregate in concrete could reduce the cost of construction materials and address plastic waste problems.

Research at the University of Bath also concluded that plastic waste could be a viable partial replacement for sand in structural concrete. The study, done in partnership with the Goa Engineering College in India, showed that plastic waste in place of sand in concrete could help in the reuse of plastic waste as well as allow the sustainable use of a natural resource like sand.

A study by Ahmad Jassim of the University of Basrah, meantime, concluded that “plastic cement” could be produced from mixing high density polyethylene waste (used plastic bottles and food crates) and Portland cement. He also noted that this cement’s “density was decreased, ductility increased, and workability improved,” resulting in the production of “lightweight materials.”

Plastic waste can also be mixed with bitumen for road construction, using a technology first credited to Professor Rajagopalan Vasudevan of Thiagarajar College of Engineering in Madurai. Plastic-bitumen composite is said to have better wear resistance than standard asphalt; does not absorb water; and, has better flexibility which results in smoother, lower-maintenance roads.

“Plastic roads” already exist in the Indian cities of Pune, Bengaluru, and Jamshedpur; and, in Indonesia’s Bali, Surabaya, Bekasi, Makassar, Solo, and Tangerang. In 2018, the Dutch company Volkerwessels built a bicycle path made of recycled plastic in Zwolle, in northeast Netherlands. And in 2019, the UK Department of Transport announced a £1.6 million trial of a plastic road technology developed by Scottish reinforcement company MacRebur.

Locally, in late 2019, San Miguel Corp. (SMC) laid plastic-mixed asphalt on a 1,500 square meter pilot site in its logistics center in General Trias, Cavite. The road used 900 kilos of recycled plastic as a binder with bitumen to produce the asphalt. The road, meant to withstand heavily loaded trucks and equipment, is said to exceed Public Works standards.

To me, all these studies and developments point to the viability of repurposing plastic waste into something highly productive and useful. Such efforts also keep plastic waste from ending up in our oceans, and, at the same time, allow the more sustainable use of natural resources like sand, river pebbles, and rocks as concrete aggregates for construction.

But the plastic recycling effort needs help. Lawmakers and policymakers should consider funding education and information campaigns and providing support and incentives to industries and consumers that reuse, recycle, and repurpose plastic waste. A bigger step, perhaps for the new administration, is to consider allowing the use of plastic waste technologies in public works construction.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Political messaging: What you say and don’t say

PCHVECTOR-FREEPIK

As we inexorably head toward the elections on May 9, 2022, we reflect on the political marketing landscape and how things are shaping up as candidates stick to what their handlers or campaign managers have prescribed for a victorious campaign.

One of the key parts of any campaign is communications or messaging strategy, which has a symbiotic relationship with overall perception management or even brainwashing.

Those who know both the theoretical and practical aspects of political messaging realize that at the end of the day, the purpose of all communications and messaging is to convince the voter to elect a particular individual or political party.

Since advertising is expensive and there is a heavy barrage of competing messages that create clutter, one’s message must be short, succinct, compelling, memorable, and credible or truthful. A message is propaganda and there is nothing wrong with propaganda as long as the message is true and not a dressed-up pack of lies reminiscent of the Martial Law years.

With the abundance of fake news, competing messages and objective reality are ignored in place of incredible conspiracy theories and glossy but misleading presentations peddled by so-called influencers. Executing true and ethical messaging has become a very daunting challenge. The work needed to counteract organized and systematic brainwashing multiplies a hundredfold if the sponsor of false information has billions of pesos and dollars at his disposal. The challenge becomes even greater if, as is usually the case, the lies had been repeatedly uttered and were unchallenged for so long. In short, anyone who has heavily invested in historical revisionism and misinformation for several years has a head start. This early lead can however be overcome by repeatedly telling the truth about your candidate and allowing others to tell the truth about your opponent(s); “If you don’t stop telling lies about me, I’ll tell the truth about you.” 

If there is any organization to account for the proliferation of lies, revisionism, hatred, anger, and envy, and for contributing to the threats to democracy, one of them has to be Facebook. The company is now being investigated both in the United States and the UK. The hate speech and the societal division that Facebook condones, promotes, and tolerates, albeit profitable, has created a toxic atmosphere of deception and extreme rightist and autocratic behavior.

What makes messaging even tougher is the COVID pandemic which, if not managed wisely through practical measures, could result in voter disenfranchisement, suppression, or denial. Serious presidential candidates are advised to frame a part of their messaging around what they plan to do to lick this health emergency which has affected the economy and other aspects of life like food security, nutrition, education, peace and order, and work and livelihood opportunities. The credibility of what one promises to do to overcome the pandemic challenge is, however, put very much under microscopic scrutiny and referenced with what one has actually done (or not done) in the frontlines as one’s contribution to the overall effort to alleviate the problems created by the pandemic. Nonchalance will not help.

We now look at how the campaigns of “leading” presidential candidates execute their communications and messaging strategy, i.e., What is their message.

Let’s start with the front runner, Ferdinand Marcos, Jr. Marcos Jr.’s basic messages are: avoid the mention of the family name for to do so is to stoke bitter memories of Martial Law and its uncommon corruption, brutality, and Imeldific extravagance in the middle of widespread poverty and economic deprivation. So, the message is use “BBM” for Bongbong Marcos. Those are the instructions of Cambridge Analytica and they are to be followed. (This according to news reports quoting Brittany Kaiser, a former Cambridge Analytica business development director-turned-whistleblower. The Marcos camp has denied any connection with Cambridge Analytica. — Ed.) After all, Cambridge receives millions of dollars in professional services. It has handled Trump, presidential wannabe Ted Cruz of Texas, and other Republicans who now idolize Trump. One other alleged Cambridge directive is the use of pink, the color of the opposition candidate, Vice-President Leni Robredo. That ploy is obviously meant to confuse the followers of the Vice-President. 

Other messages include outright revisionism: that the dictator was “kidnapped” and did not flee the Philippines at the height of the EDSA People Power Revolution. That he had wanted to go to Ilocos but the Americans brought him to Hawaii… along with crates full of cash, jewelry, bank certificates, gold bars and other evidence of a “frugal” life.

Another message is that life during Martial Law was like living in the Garden of Eden, and so on and so on. There is, however, almost no mention of the Junior’s sterling record of public service in the Senate, as Governor of Ilocos Norte, and what he did during the height of the pandemic to help the people a la Patricia Non.

With respect to Junior’s scholastic record, an alleged statement of former Congressman Rudy Fariñas, another Ilocos Norte political kingpin, seems to indicate there are serious questions about Junior’s industry, diligence, and commitment to learning at Oxford, for example. Even his claim of having been a MILO kids taekwondo champion in 2000 at the age of 40 (seen on the candidate’s official website and now removed), stands out for its brazen lack of respect for martial arts’ unofficial but accepted code of ethics and for sports people’s ability to discern the truth behind the claim.

We still have to find official statements of his record as Senator and Ilocos Norte Governor, although there are supporters’ social media posts which include grabbing credit for a wind-powered energy project. There is very little in his corner’s messaging to indicate his grasp of the country’s problems aside from the usual lack of resources, some of which could be traced to Martial Law thievery and extravagance. There is no solid proof of sincere empathy for the marginalized, many of whom he, unfortunately, seems to have mesmerized with his slick YouTube and TikTok productions. None of these video productions can, however, back up the image of trustworthiness he is trying to cultivate.

The whole communications package seems consistent with Analytica’s tactics — confuse, confuse, with lots smoke and mirrors at this point, as it was during the Senior’s tenure and very similar to Trump’s Cambridge-backed campaigns. The only clear and consistent aspect of the messaging is the magnificence of the Junior’s campaign headquarters along the historic EDSA.

Manila Mayor “Yorme” Moreno’s message is: “I’m an action man. I act on the city’s problems right away especially during this pandemic. I sleep at City Hall to immediately act on problems. I’m here 24/7.” In short, Aksyon Agad (action at once). This go-to-guy narrative is spiced up with anecdotes of his impoverished youth — sleeping in Manila’s streets, eating restaurant left-overs, scrounging through garbage for plastic items for resale, Tondo Boy origins, working hard to enroll in some of the world’s finest institutions of higher learning. He caps off these inspiring stories with his folksy speeches which never fail to attract attention and sympathy. 

But his telling Filipinos, in a dismissive manner, to “move on” and to stop blaming the Martial Law dictatorship for the country’s ills and murders and tortures, gets some people to jump up with alarm and ask some serious questions about his commitment to the rule of law and human rights. One gets to wonder that probably he’s unaware that poverty, his early status, prevents the enjoyment of the full range of basic human rights. Stating his admiration for both the dictator and Lee Kuah Yew probably has Lee turning in his grave. 

The probable impression created is that Yorme needs more seasoning and needs to think more deeply about significant cause and effect situations — that absolute power corrupts absolutely and ultimately leads to the deprivation of human and economic rights. He may continue to reflect profoundly on the reality that governing the Philippines is going to be much more complex than administering the affairs of the 42.88 square kilometer area of the capital city. Crossing swords at this time with the country’s second highest elected official may have created an image of arrogance and lack of humility.

Apart from messaging, Yorme and his handlers probably ought to look at their internal messaging and operations, taking into account signs of disarray and infighting within the Aksyon Demokratiko party, particularly in the matter of naming candidates at the local level. Yorme’s handlers ought to be reminded of what they very well know: “All politics is local.”

Next week: Messaging: VP Leni Robredo, Senator Panfilo Lacson, and Senator Manny Pacquiao

 

Philip Ella Juico’s areas of interest include the protection and promotion of democracy, free markets, sustainable development, social responsibility and sports as a tool for social development. He obtained his doctorate in business at De La Salle University. Dr. Juico served as Secretary of Agrarian Reform during the Corazon C. Aquino administration.