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PGA Tour hits back at LIV with increased prize money, new events

PROFESSIONAL Golfers’ Association (PGA) Tour commissioner Jay Monahan accused the Saudi-back LIV Invitational Series of attempting to buy the game of golf on Wednesday then went on the offensive, unveiling larger purses, new events and a different calendar.

Speaking at the Travelers Championship in Cromwell, Connecticut, Monahan conceded that the PGA Tour cannot compete with the LIV Series when it comes to cash but upped the ante announcing it would increase purses at eight events during the 2022-23 season to an average of $20 million.

Backed to the tune of $250 million by Saudi Arabia’s Public Investment Fund, the LIV is offering purses of $25 million at seven-of-eight events and a $50-million prize fund at the series finale to be played in October at former US President Donald Trump’s property in Doral.

If those figures are not startling enough then the astronomical sums dangled in front of golf’s biggest names in an effort to lure them away from the PGA Tour are eye-popping.

Six-times major winner Phil Mickelson, according to media reports, got a $200-million appearance deal to sign on with the rebel circuit and former Masters champion Dustin Johnson $125 million.

“I am not naïve. If this is an arms race and if the only weapons here are dollar bills, the PGA Tour can’t compete,” said Monahan.

“The PGA Tour, an American institution, can’t compete with a foreign monarchy that is spending billions of dollars in an attempt to buy the game of golf.

“We welcome good, healthy competition.

“The LIV Saudi Golf League is not that. It’s an irrational threat; one not concerned with the return on investment or true growth of the game.”

LIV Golf CEO and former world number one Greg Norman has said the new series offers players “free agency” and fans an exciting new way of watching golf.

Along with a bump in prize money, Monahan also announced a new three-event international series in the fall for the top players to be held in Europe, Asia and the Middle East.

In 2024, the PGA Tour will return to a calendar year schedule rather than the current model that sees a season split over two years.

There will also be changes to the FedEx Cup playoff with a greater focus on the best players.

Currently the top 125 in the points standing qualify for the first playoff event but in 2023 that will be cut to 70.

The top 50 will advance to the second playoff event with the top 30 qualifying for final at East Lake in Atlanta.

Monahan also continued to point to the traditions and legacy that go with playing on the PGA Tour.

He also reminded members that they do not have to make apologies when they tee it up at a PGA Tour stop, while LIV golfers must defend their decision to participate in a series that critics say amounts to blatant “sportswashing” by a nation trying to improve its reputation in light of human rights concerns.

“On the PGA Tour, our members compete for the opportunity to add their names to history books, and, yes, significant financial benefits, without having to wrestle with any sort of moral ambiguity,” said Monahan. “We don’t expect to overcome this current challenge by relying on our legacy and track record alone.

“We will ultimately come out of the current challenge stronger because of our loyalty and support of our players and fans, the best in the world, as well as our planned future growth and with our values as our North Star.” — Reuters

Bright future

Even now, not a few quarters remain convinced that the Celtics should have walked away with the 2022 National Basketball Association championship. Notwithstanding their incapacity to extend the Finals to a winner-take-all match, pundits who can’t seem — or simply refuse — to move on continue to insist that they squandered a golden opportunity. Not that the oddsmakers thought differently while the set-to was still ongoing; at no time did they play the role of underdogs in betting circles, not even when they had lost two contests in a row and headed into Game Six with their backs to the wall.

To be sure, the voices of disappointment do have some fuel to support the contention that the Celtics grossly underachieved. They had the superior roster by far, and boasted of the league’s top defense seemingly able to keep the explosive Warriors at bay. In addition, they carried confidence borne of emphatic Game Seven victories in their last two series. And when viewed from this prism, their finish as runners-up may, indeed, be seen as a regrettable outcome.

That said, a glass half-empty is likewise a glass half-full. Considering where the Celtics stood in late January, the fact that they made it all the way to the Finals should be celebrated. With first-year head coach Ime Udoka in the sidelines, they were then dismissed as little more than middling pretenders with supposed stalwarts who needed more time to mature. And then they clicked; an impressive 26-6 slate for the remainder of the regular season, tops in the league, provided them with no small measure of momentum for a deep playoff run.

By the time Game Six of the Finals rolled around, though, the Celtics looked spent. No doubt, it was because of all the effort they hitherto expended. When the 2021-22 season drew to a close, first-team all-NBA selection Jayson Tatum had 500 more minutes on his legs than the next player in the entire league. Little wonder, then, that his forays to the basket frequently ended with errant attempts, and that he wound up with an all-time record 100 turnovers through the postseason. At a time when his leadership was needed on the court and off, he had tuned out ostensibly because of fatigue.

Forget about the naysayers, though, From the Celtics’ vantage point, there is no reason for them to hang their heads in shame. For one thing, the Warriors are no slouch, with no better proof of the fact than four titles from six Finals appearances in eight years. For another, dwelling over What Ifs is both wrong and counterproductive; all things considered, there can be no better way to get over the outcome than to learn from it. The core of the green and white continue to have a bright future. How it turns out is up to them.

 

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

PCCI cites agri, tourism among key sectors to boost employment; assures support to Marcos admin 

FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINE Chamber of Commerce and Industry (PCCI) cited four industries that the incoming leadership should prioritize to improve local employment as it vowed support for the countrys economic recovery.   

The business community will lend its full support and cooperation to the new government,PCCI President George T. Barcelon said in a statement on Thursday.  

We definitely recognize the need for us to unite and rally behind President-elect (Ferdinand R.) Marcos (Jr.) in order to accelerate the countrys recovery and growth momentum.”  

According to Mr. Barcelon, the Marcos administration should put special focus on agriculture, manufacturing, tourism, and infrastructure.  

The new government should focus on harnessing and developing key sectors that have huge beneficial impact on the economy particularly in terms of employment, he said.    

The PCCI head also said that the move of Mr. Marcos to temporarily lead the Department of Agriculture is a confidence-building measure that under his leadership, agriculture will finally be given the long overdue attention it needs as a sector that is crucial and foundational part of our countrys economic transformation.”  

PCCI Agriculture Committee Chair Paul Cuyegkeng said the decision of Mr. Marcos to take on the Agriculture department is a bold move and one that shows strong leadership.”    

Mr. Cuyegkeng said the incoming president should consider establishing a long-term institutionalized” agricultural policy with a master plan that seeks to implement self-sufficiency in food, an agro-industrial base for processed products for both domestic and export markets, and export of fresh agricultural products with a competitive advantage.    

SERIOUS CRISIS
Meanwhile, progressive groups led by left-leaning coalition Bagong Alyansa Makabayan (Bayan) will hold a major protest during the inauguration of Mr. Marcos in the capital Manila on June 30.  

A major demonstration will be held starting 9:00 a.m. at a peoples park located just a few kilometers away from the venue for the oathtaking of Mr. Marcos, Bayan Secretary General Renato Reyes told a virtual news conference.  

The demonstration will serve as a platform to inform the government of the issues that the incoming administration must address, Mr. Reyes said.   

We want to express that the country is really facing a serious crisis,he said. Our countrymen are suffering from high prices of goods and low salaries and it is just right that they hear the voices of the people on June 30.”  

Mr. Reyes said state forces cannot stop the protest since it will be conducted in a designated freedom park, an area where demonstrations or gatherings can be held without any prior permit, based on Philippine law.  

Ador R. Torneo, who teaches political science at the De La Salle University, told BusinessWorld that Mr. Marcos should allay the fears and concerns of civic groups and the international community to achieve a stable government as the country recovers from the pandemic.  

He needs to mend fences, build bridges, and tone down the highly polarized political environment, he said in a Messenger chat. Revin Mikhael D. Ochave and Kyle Aristophere T. Atienza 

1st Davao dive expo set June 24-26 

THIS paddle-flap scorpionfish (Rhinopias eschmeyeri) is among the creatures photographed by Department of Environment and Natural Resources-Davao Regional Director Bagani Fidel A. Evasco during a recent series of dives in different parts of the region. The DENR-Davao Facebook page posted an online exhibit of the images in celebration of this year’s World Ocean Day, held every June 8. — DENR-DAVAO FACEBOOK PAGE 

THE DEPARTMENT of Tourism (DoT) is holding the first Davao Dive Expo this weekend at the SM Lanang Premier in Davao City, highlighting both well known sites in Samal and new ones in other parts of the region.  

“It is our hope that through this initiative, we can further promote our established and emerging dive sites and bring the awareness of this tourism activity to our communities,” said DoT Davao Regional Director Tanya Rabat Tan said in a statement.   

Among the new dive sites that are being promoted are those in Davao Oriental province, particularly in Mati City and the town of Governor Generoso.   

The June 24-26 regional expo, which follows the Samal Dive Festival held in the last week of May, features a daily dive and marine protection forum by respected conservation experts.  

We envision that the staging of the dive expo will create a wider underwater biodiversity appreciation and promote further marine wildlife protection to both tourists and locals,” said Ms. Tan.  

There will also be an underwater photo exhibit of various dive sites in the region, pop-up booths for local dive shops, dive destinations, and other allied services.  

KADAYAWAN FESTIVAL
Meanwhile, the Kadayawan Festival in Davao City will be held this year with in-person activities after two years of all online events due to the coronavirus pandemic.   

Tourism and Operations Office Chief Generose D. Tecson said the festivals executive committee has approved the proposed face-to-face activities.   

They already approved our Kadayawan from August 15 to 21 and the mode of the festival will be face-to-face. The activities were also approved as well as the contest guidelines for some activities like the Indak-Indak, Pamulak, Pitik sa Kadayawan and Sayaw Kadayawan,Ms. Tecson said over the city-run radio station.  

Other highlights include a cultural show featuring the 11 indigenous groups in the city and a sports fest of tribal games.  

Ms. Tecson said most of the activities will be held in open spaces but participants and spectators will still be required to follow minimum public health standards such as wearing of face mask. MSJ 

Senator calls on gov’t to speed up delivery of national IDs 

A SENATOR on Thursday said the long wait for the delivery of national identification cards (ID) isunjustifiable, with some having registered more than a year ago but have yet to receive the card.  

The National ID could have been the trusted card used for the speedy distribution of cash aid, fuel vouchers, health benefits and other basic services that Filipinos desperately need to help tide them over the challenging times,Senator Mary Grace S. Poe-Llamanzares, who chairs the Senate Public Services Committee, said in a statement.    

The streamlined information in one card would have made public and private transactions less cumbersome and trying,she added. 

She noted that more than half of the populationhave done their part by registering. It’s high time that the government does its share by delivering the National ID to our citizens without further delay.”  

The senator also called on the Philippine Statistics Authority (PSA) to ensure the veracity and accuracy of the data in the card, while remaining open to avenues for modifications if needed.  

As of March, around 8.2 million cards have already been distributed to Filipinos, according to data released by the PSA. This makes up 24% of their 33.8 million target for 2022.   

The PSA earlier apologized for delays in the delivery of national IDs due to logistical problems caused by the pandemic. They also noted that they were prioritizing the delivery for low-income households. Alyssa Nicole O. Tan 

Plebiscite for Maguindanao split into 2 provinces set Sept. 17  

MAGUINDANAO.GOV.PH

A PLEBISCITE for the division of Maguindanao into two provinces is set on Sept. 17, the Commission on Elections (Comelec) announced on Thursday. 

The Comelec full court decided on the schedule during their regular session on Wednesday, acting Comelec spokesperson John Rex C. Laudiangco told reporters in a Viber message. 

In May last year, President Rodrigo R. Duterte signed into law a measure dividing Maguindanao, a province in southern Philippines under the Bangsamoro region, into Maguindanao del Norte and Maguindanao del Sur.  

The Maguindanao provincial government earlier allocated P120 million for the plebiscite, wherein residents will decide whether or not to approve the split.   

A similar plebiscite was held in Palawan in March 2021, wherein majority voted not to divide the province into three.   

Last year, the election body had postponed several plebiscites that were supposed to be conducted before the May 9 national and local elections, citing time constraints for the preparations.  

The Supreme Court, in a 2019 decision, upheld the Comelec’s power to “defer the conduct of all plebiscite so as to enable it to focus all its attention and concentrate all its manpower and other resources on this preparation for the said elections,” according to a Comelec resolution dated Aug. 18, 2021.  

Meanwhile, Mr. Laudiangco also announced the approval of the resumption of the voter’s registration period from July 4 to 23 ahead of the barangay and Sangguniang Kabataan elections in December. John Victor D. Ordoñez 

NBI arrests investment fraud suspect in Cavite 

NBI FACEBOOK PAGE

A SUSPECT for investment fraud who allegedly collected as much as P17.8 million has been arrested in Kawit, Cavite, according to the National Bureau of Investigation (NBI). 

In a statement on Thursday, the NBI said the suspect was captured through an entrapment operation on June 9 following a complaint filed by the victim.    

After the arrest, the suspect returned the money, which was supposedly an investment in what turned out to be a non-existent business.   

The suspect is facing charges for violation of Article 315 of the Revised Penal Code in relation to the Cybercrime Prevention Act of 2012.  

Under the law, swindling is considered a cybercrime if the violation was committed through the use of information and communications technologies.   

Those convicted of fraud under the cybercrime law may face six to 12 years in prison and a fine of at least P200,000.  

The suspect had contacted the victim through Facebook offering a “rare opportunity” to diversify funds and represented herself as the owner of Frontier Freight Forwarders shipping importing company.John Victor D. Ordoñez

Hobbling along

US PRESIDENT RICHARD M. NIXON

The country that every survey says Filipinos trust the most marked, on June 17, the 50th year of the 1972 Watergate scandal that led to the resignation of then US President Richard Nixon in 1974.

Its anniversary occurred in the middle of a US Congressional investigation into the Jan. 6, 2021 “insurrection” during which a mob of several hundred white supremacists and neo-fascist thugs tried to forcibly prevent the official certification of the victory of Joseph Biden in the November 2020 Presidential elections.

Watergate was an office building in Washington, DC that housed the Democratic Party’s National Committee (DNC). Five men broke into the DNC offices in June 1972 to photograph campaign documents and install wire-tapping and other listening devices. But they were apprehended and their connection to Nixon’s Committee to Re-elect the President (CRP) was established through, among other means, a series of investigative journalism reports by Washington Post reporters Robert Woodward and Carl Bernstein which they later republished in book form with the title All the President’s Men.

A Congressional inquiry found that Nixon had approved the criminal act and was legally accountable. Rather than risk impeachment and prolong the crisis, he resigned as US President on Aug. 8, 1974.

The conjunction of the commemoration of the 50th year of the scandal with the ongoing investigation and hearings by the January 6th Congressional Committee on what has  been described as “an insurrection,” an “attempted coup,” and “an attack on US democracy” has invited comparisons between then and now.

In interviews with US media, Carl Bernstein, now in his 70s, said that the difference between the 1972-74 crisis and the current situation in the US is that “the system worked” then, but is currently failing.

During that time the media closely followed the issue and in fact managed to find evidence that showed Nixon knew about and approved the break-in. The US Congress diligently did its job of getting at the facts, with both Republicans and Democrats working together. The Courts ruled that Nixon had to surrender to Congress the tape recordings from his White House office in which he and his co-conspirators discussed the break-in. And 60% of the US population believed that he should either be prosecuted or impeached, or should resign.

In contrast, despite the January 6th Committee’s findings that the 2021 attack on, and occupation of US Congressional offices was egged on by former President Donald Trump so he could stay in power, only a handful of Republicans have condemned him and called his claim that there was fraud in the 2020 elections a lie.

Some police officers were killed and injured during that attack, which endangered Trump’s own Vice-President Mike Pence, House of Representatives Speaker Nancy Pelosi, and several other congresspersons and senators from the Democratic Party. But a number of Republicans who support what much of US media refer to as “Trump’s big lie” that Biden and the Democrats stole the election are likely to win the Republican primaries — which decide who the party will run in this November’s mid-term elections for state governors and members of the US House of Representatives — over those who don’t.

Neither is there unanimity among Americans that Biden defeated Trump in a fair and honest election in 2020 — and rather than withdraw from public life as Nixon did, Trump is likely to run for President again in 2025. Because he has the support of most Republicans, and his base is still intact, he could recapture the Presidency then, and further feed the violence and hate that afflict so much of US society.

The US is deeply divided, even as gas prices soar, mass shootings threaten communities almost every week, and the inflation rate surges to nearly unprecedented levels. In defense of its global hegemony, the world’s only remaining superpower is also waging a proxy war in Ukraine against Russia.

Founded in 1776 and now 246 years old, the United States of America is supposed to be a mature democracy. But it is nevertheless in the throes of the economic and political crises that are usually perennial conditions of life only in the Third World countries of Asia, Africa, and Latin America.

But more troubling than the economic difficulties its citizenry is experiencing are the challenges its democratic institutions face, whose consequences are likely to affect the way the US is governed for years to come. Those challenges are due in large part to right-wing greed for power, in combination with the misinformation and disinformation that afflict vast sectors of its population.

If those two factors sound as if they are equally the causes of the weakness if not the outright demise of democracy in some of the poorest countries of Planet Earth, it is because they are.

As in those other countries, what little is left of democracy has again given way to despotism in the Philippines, and there is little evidence to suggest that it will pass either sooner or later. What recent events have established is that, because of a largely disinformed public among other factors, it is likely to be the rule rather than the exception in the coming decades of the foreseeable future. History indeed repeats itself — and the second time is no less tragic than the first.

Because democratic governance is crucial to economic and social development, there is little hope that the perennial poverty and its lethal consequences on the lives and fortunes of the Filipino millions will ever give way to even the most minimum levels of prosperity. What is likely is that this country will continue to hobble along from one crisis to the next without any change-making solution in sight.

But wait. Much of the rest of the planet is in the same dire straits of mass unemployment, high prices and runaway inflation, social injustice, and lives of quiet desperation, even as global warming threatens the very existence of the entire human race.

The culprit responsible, say those of a liberal bent, is unbridled greed for pelf and power, and the democratization of wealth and governance the solution. But democracy is being blamed by its enemies, whether directly or by implication, for the world’s ills, and curtailed by the very same forces responsible for those infirmities.

Just as Donald Trump uses the US Constitution and democracy to attack both, so does the Philippine oligarchy do the same. In democracy’s name it condemns as “rebels,” “reds,” and “terrorists,” and causes the arrest of those who dare exercise their rights to free expression, peaceable assembly, and the other entitlements the Constitution protects.

The oligarchs have also frustrated every effort at democratizing governance, for example by turning the Party-List System into just another means for them and their surrogates to continue to monopolize State power.

The fall of socialist regimes and the restoration of capitalism in many countries in the 1990s provoked the view that the current stage of history is also its last. The adherents of the theory that liberal democracy is the pinnacle of political evolution are correct: individual freedom and self-rule are the prerogatives of all of humanity. But democracy has never been as imperiled as it is today by the tyrants who rule in its name. Despite the economic and social crises that afflict not only the poorest countries of the world but also the wealthiest, no alternative seems to be available, the only prospect being more of the same.

Rather than repeating itself, perhaps history is indeed coming to an end.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

Managing inflation, avoiding social unrest

PHILIPPINE STAR/KRIZ JOHN ROSALES

A couple of days ago, US Fed Chairman Jerome H. Powell clarified before the Senate Banking Committee that the central bank was “not trying to provoke” a recession while admitting that it is “certainly a possibility.” To those who are incurably averse to tightening monetary policy, Powell’s clarification is very helpful in assessing the Fed’s thinking, even as one should agree it was hopelessly behind the curve. There is a cost to doing too late, and too little, and definitely, playing catch-up is not exactly neat.

Powell’s calvary began with his insistence that the creeping inflation early last year was only transitory. It turned out inflation was more long-lasting as it was broad in scope, with prices of goods and services rising by as much as 8.6% last month. Consumer expectations of higher prices led workers to demand higher wages and their employers to impose higher prices for their goods and services. That is how the inflationary cycle was motivated in the US, such that the Fed was forced to run apace with a 25-basis-point increase in March and 50 basis points in May and a massive 75 basis points this month.

There is no denying the fact that inflation has gone global due to skyrocketing fuel prices. For instance, GlobalPetrolPrices.com reported that in Germany, gasoline prices averaged €1.894 or $1.991 per liter as of June 20. At P54 to a dollar, that should be around P107.51 in the Philippines. A jeepney driver in Manila was quoted by the Associated Press (AP) to be spending $16.83 or P900 for diesel to run his vehicle before this oil price run-up. Today, he has to shell out $41.40 or P2,200. “That should have been our income already. Now there’s nothing, or whatever is left,” or only 40% of what he used to make.

More from AP: “A motorcycle taxi driver in Vietnam turns off his ride-hailing app rather than burn precious fuel during rush-hour backups. A French family scales back ambitions for an August vacation. A graphic designer in California factors the gas price into the bill for a night out. A mom in Rome, figuring the cost of driving her son to camp, mentally crosses off a pizza night.”

When habits and personal finances are altered by this latest round of huge oil price increases, inflation could be more entrenched. With the light at the end of the Russia-Ukraine war tunnel seeming to be distant, and the higher likelihood of another surge in COVID-19, the collateral effect on growth could not be trivial. Reducing consumption, the biggest determinant of economic growth, could also shave off several percentage points from domestic output and economic welfare.

Of course, US Treasury Secretary Janet Yellen argued that while she expected the US economy to slow down, “I don’t think a recession is at all inevitable.” She must be coming from the view that tightening monetary policy was aimed at stabilizing the US economy by addressing the risks to runaway inflation. It is the Russia-Ukraine war, high fuel prices, and supply chain snarls that undermined market sentiment for growth.

What do we make of that in the Philippines?

The recent editorial of the Philippine Daily Inquirer has an interesting take as captured by the question: What can be done by the incoming administration of Bongbong Marcos, Jr. to mitigate the impact of inflation on the lives of ordinary Filipinos this year and the next? We stress, as we stressed in the past, inflation inflicts pain on everybody but not everybody shares the same threshold for pain.

It is sad that some members of Congress would rather take the easy way out by proposing to suspend the collection of taxes on diesel, gasoline, cooking gas and other fuel products. While this move could bring immediate relief to consumers, both rich and poor, this would also reduce public revenues for equally important budget items for social services, capital spending, and infrastructure. More perverse is that while fuel taxes are proposed to be suspended, they are also opposing new taxes designed to help pay for the budget including the servicing of the P12.7-trillion national government debt.

In a recent blog, IMF’s David Amaglobeli, Emine Hanedar, Gee Hee Hong, and Celine Thévenot reported their survey of how member countries responded to the unprecedented surge in oil prices. Many countries limited the increase in domestic prices either by cutting corresponding taxes on these imported products or providing direct price subsidies. Both measures actually impinged on government budgets that had already been weakened by the two-year-old pandemic.

The best approach, based on the IMF study, is not to cap the price pass-through but to allow it while protecting the most vulnerable households. “That’s ultimately less costly than keeping prices artificially low for all irrespective of their ability to pay.”

More than half of the 134 member countries surveyed had at least one response to higher energy and food prices. In the case of the emerging and developing economies, there were fewer new policy measures, as the Fund noted, due perhaps to existing subsidies and policies to limit or avoid changes in local prices. But there were fewer attempts to limit the pass-through of higher global prices. The reason could either be smaller fiscal space or their ability to upgrade the social safety net could be constrained.

Limiting price-through could affect the good market decision to be more energy-efficient. Subsidizing consumer prices could encourage more consumption and in the process fuel higher energy prices.

What is more equilibrating is for a time-bound, targeted relief for the most vulnerable sectors of the poor as well as public transport drivers. A more efficient and less-prone-to-corruption modality of cash transfers should be explored. Local government units should be bypassed as much as possible.

In effect, we need to allow global oil prices to pass through to local prices and the way to mitigate it is to protect households and other sectors most likely to be seriously affected.

For the sake of our people and country, the incoming Marcos administration could very well consider the Fund advice to focus on investing in social safety nets and restructuring existing policies on subsidy. What can be expected from it is stronger resiliency and productive spending to ensure more sustainable and inclusive growth.

Failure of government to arrest runaway inflation and cushion its negative impact on the people’s economic welfare risks the possibility of social unrest. We should recall that the same issue of a gasoline price increase triggered the Diliman Commune of Feb. 1-9, 1971, even as it subsequently escalated into a military assault of the University of the Philippines. Even through the pandemic where social distancing protocols could be a disincentive for mass action, the IMF reported anti-government and anti-lockdown social unrest in Canada, New Zealand, Austria, and the Netherlands. This pandemic-related activism seems to be waning, but public frustration with sharply rising oil and food prices is bound to produce more social unrest of the kind we last saw some years ago.

This risk is growth-negative. Consumption is likely to level off because of uncertainty. Output is likely to be lost both in manufacturing and services. Foreign and domestic investors alike might be disincentivized from increasing their exposure in the economy, whether in manufacturing, mining, agriculture, or even in infrastructure.

It should therefore be no surprise that in previous surveys of the key concerns of Filipinos, it has always been inflation that topped the list. No, we don’t suggest that Marcos Jr. should take over the Bangko Sentral ng Pilipinas (BSP) because inflation is expected to breach the target this year and perhaps next year. The BSP is an independent constitutional agency. Most important, its Monetary Board and economists are more than competent to handle the job.

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Nuclear is the future: Trouble is, nobody wants a reactor in their backyard

FREEPIK

As energy security becomes a growing source of angst, it’s clear that large-scale, reliable use of renewable resources remains a distant reality in many countries. That’s allowed a more controversial — and almost perfect — alternative to make a comeback: nuclear. Trouble is, nobody wants a reactor in their backyard and the memories of past accidents remains a serious concern.

But with costs rising and few solutions at hand, both governments and companies are turning to nuclear power as a cleaner and cheaper source to help them reach their ambitious climate goals.

Even if a few years away, the development of, and investment in, nuclear energy sources and storage methods could ensure industrial operations highly dependent on pre-heating processes for raw materials and high temperatures are able to function as the world navigates its way through this energy crisis. With all the supply chain snarls over the past year, a power shortage is the last thing consumers and businesses need.

In Japan, the median levelized cost of energy* is far lower than utility scale solar and offshore wind. A recent survey showed that more than 80% of Japanese companies are in favor of restarting nuclear reactors to meet power needs. Electric utility Kansai Electric Power Co. is resuming work at one its idled reactors earlier than planned to manage energy demand. Bringing the Mihama No. 3 reactor online will lower the need for liquefied natural gas, and the firm’s nuclear generation could grow 76% by 2023 as it brings back more reactors, according to Bloomberg Intelligence.

In India and China, it’s proving competitive, too, where dirtier options like coal are now more expensive. South Korea is focused on reviving nuclear power, which contributes to about 27% of the nation’s energy mix.

Earlier this year, the Biden administration issued a notice of intent for the implementation of a $6-billion nuclear credit program that supports the operation of reactors — “the nation’s largest source of clean power” — across the country. Last week, the US Department of Energy awarded over $60 million for 74 nuclear projects. British jet engine maker Rolls-Royce Motor Cars Ltd., backed by the UK government and other investors, said late last year it was going to begin building smaller and cheaper reactors. Some of its compact modular reactors are expected to come online by 2029 and the regulatory processes are already underway.

The return to nuclear makes sense: The cost of extending the lifetime of power plants and building reactors in countries that have stuck by the energy form is cheaper and competitive. Those that haven’t are now struggling with their aging fleet of reactors and lack of other sources.

The biggest stumbling block, though, is the deep-seated anxieties around safety and waste disposal. Memories of nuclear accidents like Three Mile Island in 1979, Chernobyl in 1986, and Fukushima Daiichi in 2011 continue to loom large in both public and corporate memory. Yet what’s often forgotten is that on a deaths-per-unit of electricity basis, nuclear remains at the bottom of the list, while coal is at the top.

The progress that’s been made on alleviating issues around nuclear power is underappreciated. For instance, safety in reactors is typically based on an assessment of the core melting. To address these concerns, 14 countries have come up with lower-risk designs and development of a new generation of reactors. These systems will use different coolants, like molten salts or liquid metal, and methods that ultimately make nuclear power production cleaner, secure, and more efficient. Reactors that use such materials seek to reduce or cut the production of dangerous gases that explode under pressure.

A host of startups are working on making nuclear power more acceptable. NuScale Power LLC is building small modular reactors that could eventually power 60,000 homes per unit. The firm, which has received more than $450 million of support from Washington, is working with the US and Romanian governments to build a plant in the eastern European country. Meanwhile, Sweden’s Seaborg Technologies has teamed up with Samsung Heavy Industries Co. to build a floating, compact molten salt reactor that could change energy use in logistics. Bill Gates-backed TerraPower — also focused on small reactors — has partnered with South Korea’s industrial conglomerate SK Group to build these plants.

Nuclear power stands to be the solution, or at least fill major energy gaps, in the coming years. In addition to the existing nuclear fission used in commercial reactors, startups are now pushing towards nuclear fusion technologies and have raised billions of dollars from the likes of Tiger Global LP and Bill Gates. Rejecting the power source out of fear isn’t going to get us too far, and nor will scare-mongering. Companies and countries shouldn’t be shying away from openly discussing nuclear energy and raising awareness. Public acceptance is key. Without it, we’ll be breathing dirty air and living through outages.

*Present cost of energy generation of a generator over its lifetime.

BLOOMBERG OPINION

US urges nations to reach out if having issues with Russian food, fertilizer

ST. BASIL’S CATHEDRAL is seen during the Victory Day Parade in Moscow, Russia, June 24, 2020. — REUTERS/SHAMIL ZHUMATOV

NEW YORK — Countries should ask the United States for help if they have any problems importing Russian food and fertilizer, a senior US official said on Wednesday, stressing that such goods were not subject to US sanctions over Moscow’s war in Ukraine.

“Nothing is stopping Russia from exporting its grain or fertilizer except to own policies and actions,” US State Department Bureau of Economic and Business Affairs Assistant Secretary, Ramin Toloui, told reporters.

But he added that concerns had been raised about “so-called over compliance with sanctions.” Washington has slapped Moscow with a broad range of sanctions since Russia invaded neighboring Ukraine on Feb. 24.

Facilitating Russian food and grain exports is a key part of attempts by U.N. and Turkish officials to broker a package deal with Moscow that would also allow for shipments of Ukraine grain from the Black Sea port of Odesa.

A meeting between Russia, Ukraine, Turkey and U.N. officials would likely be held in Istanbul in coming weeks, sources in the Turkish presidency said on Tuesday.

“We are fully supportive of this and want to see that play out,” Mr. Toloui said of the U.N. efforts. “We’ll continue close coordination with the U.N. delegation and the government of Ukraine on ways to mitigate the impacts to global food security of (Russian President Vladimir) Putin’s war in Ukraine.”

Russia’s war has stoked a global food crisis. Russia and Ukraine account for nearly a third of global wheat supplies, while Russia is also a key fertilizer exporter and Ukraine is an exporter of corn and sunflower oil.

Moscow denies responsibility for the food crisis, blaming Western sanctions and Ukraine for mining its Black Sea ports.

“The United States does not want there to be impediments to the ability of countries, companies to purchase Russian food, Russian fertilizer, and for those goods to access international markets,” Mr. Toloui said.

He encouraged countries to contact the US Treasury Department or local US embassies if they were having issues.

US Secretary of State Antony Blinken will attend a food security ministerial meeting in Germany on Friday ahead of a three-day Group of Seven (G7) nations summit, also in Germany, starting Sunday. — Reuters

Moderna booster candidate shows strong response against Omicron subvariants

MODERNA, INC. said on Wednesday that an updated version of its COVID-19 vaccine designed to target the Omicron variant also generated a strong immune response against the fast-spreading Omicron subvariants BA.4 and BA.5, which have gained a foothold in the US in recent weeks.

The updated vaccine, which Moderna is hoping will be approved for use as a booster shot for the fall, is a bivalent vaccine, meaning it contains vaccine designed to target two different coronavirus variants — the original variant from 2020 and the Omicron variant that was circulating widely last winter.

Moderna said that while the shot elicited a weaker response versus BA.4 and BA.5 than it does against the BA.1 subvariant it was specifically designed to combat, the data suggests the new shot could produce “lasting protection against the whole family of Omicron variants.”

“This is a strong, powerful antibody response,” Moderna Chief Medical Officer Paul Burton said at a news conference. “It is probably long lasting and I think the conclusions are that boosting or primary vaccination with (the updated vaccine) really could be a turning point in our fight against SARS-cov-2 virus.”

Moderna has been producing the updated vaccine on its own dime ahead of any regulatory approvals, and Chief Executive Stephane Bancel said the company could begin supplying the shot in August.

The company plans to submit applications to regulators in the coming weeks to ask for approval of the shot — which it calls mRNA-1273.214 — for the fall season.

The two sublineages, which were added to the World Health Organization’s monitoring list in March and designated as variants of concern by the European Centre for Disease Prevention and Control, accounted for more than a third of US cases last week.

The US Food and Drug Administration plans to hold a meeting of outside experts next week to discuss the best composition of booster shots for the fall.

Pfizer and BioNTech are also testing several possible variant-adapted COVID-19 vaccines, including a bivalent candidate similar to Moderna’s.

The European Medicines Agency last week launched a rolling review of their candidates, although the companies have yet to release any data on how well they work. BioNTech this month said market clearance could come as early as August but could also take until September or later in the fall. — Reuters