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Why food is more expensive today than for most of modern history

PRESSFOTO-FREEPIK

Global food prices shot up nearly 33% in September 2021 compared with the same period the year before. That’s according to the UN Food and Agriculture Organization (FAO)’s monthly Food Price Index, which also found that global prices have risen by more than 3% since July, reaching levels not seen since 2011.

The Food Price Index is designed to capture the combined outcome of changes in a range of food commodities, including vegetable oils, cereals, meat, and sugar, and compare them month to month. It converts actual prices to an index, relative to average price levels between 2002 and 2004. This is the standard source for tracking food prices — nominal prices, as they’re known, which means they’re not adjusted for inflation.

While nominal prices tell us the monetary cost of buying food in the market, prices adjusted for inflation (what economists call “real” prices) are much more relevant to food security — how easily people can access appropriate nutrition. The prices of all goods and services tend to rise faster than average incomes (though not always). Inflation means that not only do buyers need to pay more per unit for food (due to its nominal price increase), but they have proportionately less money to spend on it, given the parallel price increases of everything else, except their wages and other incomes.

Back in August, I analyzed the FAO’s inflation-adjusted Food Price Index and found that real global food prices were actually higher than in 2011, when food riots contributed to the overthrow of governments in Libya and Egypt.

Based on real prices, it is currently harder to buy food on the international market than in almost every other year since UN record keeping began in 1961. The only exceptions are 1974 and 1975. Those food price peaks occurred following the oil price spike of 1973, which drove rapid inflation in many parts of the global economy, including the production and distribution of food.

So, what’s now pushing food prices to historic levels?

The drivers of average international food prices are always complicated. The prices of different commodities rise and fall based on universal factors, as well as those specific to each commodity and region.

For example, the oil price rise which started in April 2020 has affected the prices of all food commodities on the FAO index, by increasing the costs of producing and transporting food. Labor shortages resulting from the COVID pandemic have reduced the availability of workers to grow, harvest, process, and distribute food, another universal cause of commodity price rises.

The real average price of food has actually been increasing since the year 2000, reversing the previous trend of a steady decline from the start of the 1960s. Despite global efforts — that have, in part, responded to targets set by both the UN Millennium Development and the subsequent Sustainable Development Goals to reduce hunger — prices have made food steadily less accessible.

No single commodity has been continually responsible for the average real price increase from 2000. But the price index of edible oil crops has grown significantly since March 2020, driven mainly by the price of vegetable oils shooting up by 16.9% between 2019 and 2020. According to FAO crop reports, this was due to the growing demand for biodiesel and unsupportive weather patterns.

The other food category adding most to the overall food price rise is sugar. Here, again, unfavorable weather, including frost damage in Brazil, has reduced supply and inflated prices.

Cereals have added less to overall price increases, but their accessibility worldwide is particularly important for food security. Wheat, barley, maize, sorghum, and rice account for at least 50% of global nutrition, and as much as 80% in the poorest countries. Global buffer stocks of these crops have been shrinking since 2017, as demand has outstripped supply. Running down stores has helped stabilize global markets, but prices have increased sharply from 2019.

Again, the reasons for individual fluctuations are complicated. But something that deserves attention is the number of times since the year 2000 “unpredictable” and “unfavorable weather” has been reported by the FAO to have caused “reduced harvest expectations,” “weather-stricken harvests,” and “production decrease.”

Europeans might worry about the price of pasta as Canadian droughts slash wheat harvests. But, as the real price index for cereals creeps towards levels that escalated riots over the price of bread into general uprisings in 2011, there is an urgent need to consider how communities in less affluent regions can weather these stresses and avoid unrest.

Our technological capacity and socioeconomic organization cannot successfully manage unpredictable and unfavorable weather. Now would be a good time to imagine food supply in a world warmer by more than 2°C — an outcome now considered increasingly likely according to the most recent Intergovernmental Panel on Climate Change report.

Without radical changes, climate breakdown will continue to reduce international access to imported food, well beyond any historical precedent. Higher prices will reduce food security, and if there is one solid law of social science, it’s that hungry people take radical steps to secure their livelihoods — especially where leaders are perceived to have failed.

 

Alastair Smith is a Senior Teaching Fellow in Global Sustainable Development at the University of Warwick.

Effects on the ground of expanded court jurisdiction in civil cases

MACROVECTOR-FREEPIK

On July 30, President Rodrigo Duterte signed into law Republic Act No. 11576, which expanded the jurisdiction of the Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts (first level courts). This also effectively increased the jurisdictional value under the Regional Trial Courts (second level courts) for civil actions involving title to, or possession of, real property, or any interest therein. Thus, from an assessed value of the property exceeding P20,000 (except in Metro Manila, which should exceed P50,000), the real property must now have an assessed value exceeding P400,000 before the second level courts can take jurisdiction.

Senate Bill Nos. 1359 and 1353 reveal that the intent of the law is to declog the second level courts. Senate Bill No. 1359 relied on the data of the Court Management Office of the Office of the Court Administrator (OCA), which show that the first level courts have a lower number of pending civil cases compared to the second level courts. In 2017, the pending civil cases with the first level courts and second level courts were 19,832 and 117,785 respectively; while in 2018, the figures were at 21,169 and 108,484 cases, respectively.

Senate Bill No. 1353 attributes this significant swamp of cases at the second level courts to the considerable rise of the fair market value of real property in the Philippines and the fact that it has been 17 years since Batas Pambansa Blg. No. 129 has been amended to reflect inflation and other factors causing an increase in the value of real properties.

Simply, the cause for the passage of the law, and the goal sought to be realized, is to uphold everyone’s Constitutional right to speedy disposition of cases.

Section 4 of R.A. No. 11576 provides that the law “shall apply prospectively in the second level courts and first level courts.” However, the OCA, through OCA Circular No. 115-2021 dated Aug. 20, made a clarification on cases which should be remanded to the first level courts. Based on the circular, those cases now falling within the jurisdiction of the first level courts pursuant to R.A. No. 11576, though filed in the second level courts prior to its effectivity, but for which no Pre-Trial Order has yet been issued, must be remanded to, and heard by, the first level courts.

This means that cases which were already filed prior to the effectivity of R.A. No. 11576 on Aug. 21, but for which no Pre-Trial Orders have been issued, should be remanded to the first level courts. On the ground, this has resulted in some delay in the resolution by the second level courts of incidental issues, such as provisional remedies (temporary restraining orders and/or writs of preliminary injunction to protect litigants’ real properties), motions to dismiss, and even affirmative defenses.

Another OCA Circular — Circular No. 118-2021 — was issued on Sept. 1. This Circular suspended the remand of cases pending the approval of the revisions to the Rules on Summary Procedure and Small Claims Cases. It directed the second level courts to instead, in the meantime, conduct an inventory of cases to be remanded to the first level courts and submit the same on Sept. 15.

Consequently, some second level courts have already suspended the proceedings while awaiting the direction of the OCA, allowing the remand of the cases to the first level courts.

As it stands, civil cases affected by the passage of the new law are now at a standstill. Litigants hope that some guidance to both the bar and the bench will come soon.

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

 

Shiela Vae A. Hoylar is an Associate of the Cebu Branch of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

sahoylar@accralaw.com

North Korea fires missile, accuses United States of ‘double standards’

KCNA VIA REUTERS

SEOUL — North Korea fired a missile towards the sea off its east coast on Tuesday, South Korea’s military said, as Pyongyang called on the United States and South Korea to scrap their “double standards” on weapons programs to restart talks.

The missile was launched from the central north province of Jagang at around 6:40 a.m. (2140 GMT), the South’s Joint Chiefs of Staff said. Japan’s defense ministry said it appeared to be a ballistic missile, without elaborating.

The latest test underscored the steady development of North Korea’s weapons systems, raising the stakes for stalled talks aimed at dismantling its nuclear and ballistic missile arsenals in return for US sanctions relief.

The launch came just before North Korea’s ambassador to the United Nations urged the United States to give up its hostile policy towards Pyongyang and said no one could deny his country’s right to self defense and to test weapons.

South Korea’s President Moon Jae-in ordered aides to conduct a detailed analysis of the North’s recent moves.

“We regret that the missile was fired at a time when it was very important to stabilize the situation of the Korean peninsula,” defense ministry spokesman Boo Seung-chan told a briefing.

The US Indo-Pacific Command said the launch highlighted “the destabilizing impact” of the North’s illicit weapons programs, while the US State Department also condemned the test.

‘DOUBLE STANDARDS’
At the U.N. General Assembly, North Korea’s U.N. envoy, Kim Song, said the country was shoring up its self-defense and if the United States dropped its hostile policy and “double standards,” it would respond “willingly at any time” to offers to talks.

“But it is our judgment that there is no prospect at the present stage for the US to really withdraw its hostile policy,” Mr. Kim said.

Referring to a call by Mr. Moon last week for a formal end to the 1950-53 Korean War, Mr. Kim said Washington needed to permanently stop joint military exercises with South Korea and remove “all kinds of strategic weapons” on and around the peninsula.

The United States stations various cutting edge military assets including nuclear bombers and fighter jets in South Korea, Guam and Japan as part of efforts to keep not only North Korea but also an increasingly assertive China in check.

Mr. Kim’s speech was in line with Pyongyang’s recent criticism that Seoul and Washington denounce its weapons development while continuing their own military activities.

Kim Yo Jong, the powerful sister of North Korean leader Kim Jong Un, has said the North is willing to improve inter-Korean ties and consider another summit if Seoul abandons its double standards and hostile policy toward Pyongyang.

“The conditions she suggested were essentially to demand that the North be accepted as a nuclear weapons state,” said Shin Beom-chul, a senior fellow at the Korea Research Institute for National Strategy in Seoul.

“Their goal is to achieve that prestige and drive a wedge between Seoul and Washington, taking advantage of Moon’s craving for diplomatic legacy as his term is running out.”

Mr. Moon, a liberal who has prioritized inter-Korean ties, sees declaring an end to the Korean War, even without a peace treaty to replace an armistice, as a way to revive denuclearization negotiations between the North and the United States.

However, Mr. Moon, who has been in office for a single term, faces sagging popularity ahead of a presidential election in March.

Hopes for ending the war were raised after a historic summit between Kim Jong Un and then US President Donald Trump in Singapore in 2018. But that possibility, and the momentum for talks came to nothing, with talks stalled since 2019. — Reuters

Pandemic pushes Chinese tech giants to roll out more courier robots

REUTERS

BEIJING — More than a thousand robots are set to join the delivery personnel ranks of Chinese behemoths Alibaba, Meituan and JD.com over the next year as the pandemic fuels demand for contactless services.

The firms expect to operate over 2,000 robots between them by 2022, up about four-fold from now, their executives said, encouraged also by falling costs of making robots.

Millions of couriers still deliver packages for as less as 3 yuan ($0.47) in China, but companies have been exploring the use of drones or box-like robots on wheels from as early as 2013 amid a labor crunch that has worsened due to the pandemic.

Beijing has also ordered firms to ensure rest periods for couriers as they scramble to meet rising demand and deadlines.

“The COVID-19 pandemic has been a big boost” for robot rollout plans, said Xia Huaxia, chief scientist at Meituan.

The food-delivery giant launched its robot service in Feb. 2020 when infections were high in Beijing, earlier than a planned end-year launch.

JD.com too brought forward its plans to launch its robot service, said Kong Qi, chief scientist of the e-commerce giant’s autonomous driving unit. It had targeted a June 2020 launch in Beijing, but started using the service in Wuhan in February as the central Chinese city was locked down.

“We want people and vehicles to work better together and not for vehicles to replace people. It is just in the most boring section of the delivery guy’s work that we will try to replace,” he said.

LIMITS VS BENEFITS
Still, human delivery personnel outnumber robots, which have limitations such as inability to climb stairs. Also, robots are only allowed on certain routes like in housing estates and school campuses because of speed limits and road conditions.

Robots also tend to be used to deliver less time-sensitive products like packages, rather than food.

“The efficiency is low for office areas where people are ordering a lot of food and parcels but the vehicle’s capacity is limited,” said 25-year-old Zhang Ji as she picked up a package delivered by an autonomous vehicle near her office in Beijing.

But proponents espouse long-term benefits of robots such as lower last-mile delivery costs. Researchers at the University of Michigan said fully and partially automated vehicles could cut delivery costs by 10−40% in cities.

Alibaba’s last-mile logistics vehicle has delivered over a million orders as of September to more than 200,000 consumers, the company said. It operates over 200 robots and plans to have 1,000 by March and 10,000 over the next three years.

COSTS ARE DOWN
Costs of making robots are down, said Wang Gang, vice president at Alibaba who is in charge of autonomous driving, mainly due to lower prices of lidar sensors that help measure distances and render images around vehicles.

Alibaba and JD.com said the cost of making their robots was below 250,000 yuan ($38,662) apiece and falling.

JD.com, which operates about 200 robots, plans to expand to some 1,000 units by the end of 2021.

Meituan sees the cost of making its robots at around 400,000 yuan this year, versus 600,000 yuan in 2020, Mr. Xia said.

Meituan’s robot will cost less than 200,000 yuan in 2025, which is when the industry will see mass-application of over 10,000 units of such robots, Xia said.

Meituan currently has around 100 delivery robots.

Delivery firms in other countries have also been testing robots. Russian’s Yandex and online food-ordering company GrubHub plan to start using driverless robots to deliver food on US college campuses.

“I hope robots can be used widely soon because it will make our life more convenient … it will also reduce face-to-face contact during the pandemic so we can be safer,” said 28-year-old Pan Hongju, a programmer in Beijing. — Reuters

Trading scandal that rocked the Fed offers chance to reshape it

THE RESIGNATION of two Federal Reserve chiefs amid a stock-trading scandal means an unexpected number of top monetary-policy jobs are coming up for grabs — and there’ll likely be an unusually intense spotlight on who fills them. 

Eric Rosengren and Robert Kaplan, presidents of the Fed branches in Boston and Dallas, announced their retirement on Monday following disclosures about their trading activity last year. 

The episode embarrassed the Fed, which is trying to persuade the public that it cares about Main Street even as its policies enrich asset holders.

It also leaves six seats on its 19-member Federal Open Market Committee that could be filled in the coming months, at a time when the central bank is under pressure to make its top ranks more diverse — and also split over the outlook for monetary policy. 

As they seek to defuse the former criticism, the bank’s leadership in Washington is likely to grab more influence over new appointments at the regional banks, whose own boards may end up getting sidelined, Fed-watchers say. 

There’s “an opportunity for the Fed’s Board of Governors to initiate a more open and transparent process” for selecting Fed presidents, said Andrew Levin, a Dartmouth College economist and former Fed Board senior staff member. “Serious consideration should be given to a wide range of candidates, not just longtime Fed insiders or those with close ties to finance and wealth management.” 

Raphael Bostic, the Atlanta Fed chief, became the first Black regional president in 2017, more than 100 years after the system’s establishment in 1913. Among the 12 current regional presidents, just three are women.

Along with its racial and gender makeup, the FOMC’s policy inclination could shift too. Right now, it’s finely balanced.

In its most recent set of projections, the committee was evenly split between those who expect rates to stay near zero through the end of next year — to bolster growth and employment — and those who expect at least one hike before the end of 2022, to counter a spike in inflation as the economy reopens.

The departing Mr. Rosengren is viewed as moderately hawkish — as are Richard Clarida and Randal Quarles, two vice chairs of the Fed whose terms are due to end in the coming months. Their replacements could swing the committee in favor of officials who would like to take their time in tightening policy. 

Chair Jerome Powell’s term is also due to end in February. President Joseph Biden hasn’t indicated whether he’ll reappoint him and a decision is expected this fall.

REVIEWING THE RULES
Mr. Rosengren, 64, said Monday he’ll depart on Thursday — more than nine months ahead of his mandatory retirement — citing health concerns. Mr. Kaplan, who’s the same age, could have remained in his post until 2025, but said he’ll depart on Oct. 8 instead.

The announcements followed revelations earlier this month about stock-trading which led both men to pledge that they would divest individual stocks and other controversial holdings. Mr. Powell said he would conduct a system-wide review of the rules governing the permissible investment holdings and activities of senior Fed officials. 

Mr. Kaplan and Mr. Rosengren both made purchases while the Fed was buying a wide range of assets to support the economy. They’re not the only policy makers to run into trouble over such issues.

Members of Congress on both sides of the aisles have been criticized over profits that they or members of their family have made on individual stocks, at a time when public policy during the pandemic is widely seen as propping up financial markets.

The search for Mr. Rosengren’s and Mr. Kaplan’s successors would ordinarily be led by the heads of the Boston and Dallas Fed boards. Unlike members of the Board of Governors, who are nominated by the president and confirmed by the Senate, regional chiefs are selected by that bank’s board of directors — typically made up of regional business leaders and members of non-profit organizations.

But in recent years their appointments have drawn more scrutiny, especially over the question of diversity — prompting the Board in Washington to become more deeply engaged in the search and selection process.

While Mr. Bostic’s appointment in 2017 and Mary Daly’s selection in San Francisco in 2018 were welcomed, four other spots went to white men, three of whom were Fed insiders.

In 2015, the Philadelphia board picked one of its own members, Patrick Harker, for the top job. Also in 2015 Dallas chose Mr. Kaplan, a former Goldman Sachs executive. In 2018, Richmond tapped former McKinsey consultant Thomas Barkin and New York chose John Williams, then already president of the San Francisco Fed.

During its search, the New York Fed board claimed to put an emphasis on diversity and inclusion, said Claudia Sahm, a former Fed economist and senior fellow at the Jain Family Institute.

“Where did they end up?” she added. “With a white guy who grew up inside the Fed.” — Bloomberg

Senate GOP blocks bill to raise debt limit and avert shutdown

SENATE Republicans blocked a bill that would suspend the debt ceiling into Dec. 2022 and keep the government operating past Sept. 30, forcing Democrats to find a new strategy to address two fast-approaching deadlines with acute economic consequences.

The 48-50 largely party-line vote fell well short of the 60 needed to advance the House-passed legislation to the floor.

“Republicans would let the country default for the first time in history,” Senate Majority Leader Chuck Schumer said after the vote. “It’s one of the most reckless, one of the most irresponsible votes I have seen taken in the Senate.”

Mr. Schumer switched his vote to “no” at the last moment, which allows him to call up the bill for another vote later. But he gave no indication of any further strategy to prevent a government shutdown early Friday and a default on government obligations sometime in October.

Republicans refused to back the debt ceiling suspension because they say they don’t approve of Democrats’ plans to spend trillions as part of President Joseph Biden’s far-reaching economic plan, even though a major portion of the current debt accumulated under Republican control of Congress and the White House. That’s a departure from the usual bipartisan votes on the debt ceiling.

Senate GOP leader Mitch McConnell said Democrats have known for 10 weeks that Republicans wouldn’t provide them the votes to raise the debt cap, and that the crisis is a manufactured one.

Both parties largely agree on a short-term extension of federal funding through Dec. 3, but Democrats attached the debt-ceiling suspension to that must-pass measure.

Treasury Secretary Janet Yellen has repeatedly stepped into the fray. She has made direct appeals to lawmakers, and late last week she called on leaders of Wall Street’s largest financial firms, including JPMorgan Chase & Co.’s Jamie Dimon and Citigroup, Inc.’s Jane Fraser, to help pressure Republicans to act, according to people familiar with the matter.

“It is imperative that Congress swiftly addresses the debt limit. If it does not, America would default for the first time in history,” Ms. Yellen will tell a Senate Banking Committee hearing on Tuesday, according to her prepared testimony. “The full faith and credit of the United States would be impaired, and our country would likely face a financial crisis and economic recession.”

Read More: Debt Limit Fight as Much About 2022 Politics as Fiscal Policy

So far, financial markets aren’t showing much concern about a potential US default. Investors are demanding only slightly higher interest rates on Treasury bills due in late October and early November — the period considered at risk for delayed payments. The pricing disparity on Monday was just about two basis points, roughly a tenth of what it was during a 2013 debt-limit episode.

House Speaker Nancy Pelosi and Senator Dick Durbin of Illinois, the No. 2 Democratic leader, indicated last week that Democrats don’t want a shutdown or a default on US obligations.

An alternative would be to strip the debt ceiling provision from the government funding bill and move that separately. That legislation to fund government operations also would provide $28.6 billion for states recovering from a series of hurricanes and wildfires as well as $6.3 billion to resettle Afghan refugees and likely would have bipartisan support in the House and Senate.

The debt ceiling could then be moved through a process called reconciliation that would allow Democrats to pass it in the Senate while avoiding a Republican filibuster. The most likely scenario would have Democrats revise an already-passed budget resolution that set the stage for an economic package of up to $3.5 trillion, creating separate legislation to raise the debt ceiling.

The matter threatens to distract from the task of completing negotiations on the economic package, because it could take nearly two weeks to move a debt cap increase using that tactic.

The Senate Budget Committee would have to rework the so-called budget resolution and a likely partisan panel deadlock means the 50-50 split Senate would have to vote to discharge it and bring it to the floor. Changing the budget resolution would trigger a lengthy Senate debate and a “vote-o-rama,” where scores of amendments could be offered. Likewise, the actual debt ceiling legislation also would go through that same extended process.

Once the Senate is finished, the House would have to clear the amended budget resolution and the debt-cap hike.

Democrats “have every single tool they need to do their job,” Mr. McConnell said before the vote.

Senator Chris Van Hollen of Maryland dismissed the idea of going through a convoluted reconciliation exercise to raise the debt limit, and predicted Republicans would eventually allow the debt limit to go up.

“They’ll have that on their hands,” Mr. Van Hollen said of a debt limit crisis. “It’s going to be pretty obvious to the American public after we vote on this a couple of times between now and then that they’re tanking the economy.”

The time it would take to avert a government shutdown and prevent a debt ceiling default would almost certainly slow down completion of the economic package, which is already entangled by differences between Democratic moderates and progressives.

There is still no overall price tag for the economic package, and moderate Democratic senators Joe Manchin of West Virginia and Kyrsten Sinema of Arizona have said they want it scaled back from the $3.5 trillion originally planned. There are also differences on various provisions including taxes and climate change. — Bloomberg

Help frontliners and marginalized communities fight COVID-19 by donating your Globe Rewards points

As celebrations continue this September, dubbed as 917 month, Globe hopes to rally its customers to help in the fight against COVID-19 by encouraging them to donate their Globe Rewards points to provide support to frontliners, COVID-19 patients and indigent families.

Globe supports several initiatives that directly impact the ongoing battle against the dreaded disease. It also customized its digital solutions and platforms like GlobeOne app to provide customers a way to show malasakit and support for their chosen advocacies anytime and from the safety of their homes.

“As a company, we strive to do our part in contributing to the solution against this ongoing pandemic. Since the launch of the donation feature on Globe Rewards, the support from our customers has been nothing but overwhelming. Through our collective support for our partners in the healthcare sector, we hope to continue working together in alleviating the local health situation,” said Yoly Crisanto, Globe Chief Sustainability Officer and SVP for Corporate Communications.

Globe has spearheaded several donation drives that helped organizations at the forefront of the global health crisis. Company employees organized #OneGlobeVsCOVID and raised over P27.5 million in a fundraising initiative to provide much-need personal protective equipment, face shields, and face masks to healthcare workers in 60 hospitals.

In April 2020, a total of 491,821 Globe subscribers also raised more than P36 million in cash donations through their Globe Rewards points, benefiting health workers and frontliners in 10 medical institutions nationwide. The level of engagement witnessed from the subscribers was historic for Globe Rewards’ Donate program as it was the highest amount raised for a single campaign.

Globe Rewards is also a partner of the PGH Medical Foundation and staunchly supports the organization’s advocacy for caring for pediatric cancer patients and frontliners and patients affected by the pandemic. In the recent Brigadang Ayala initiative that supports hospital personnel, PGH medical director, Dr. Gerardo Legaspi, thanked Globe and Globe Rewards for their unwavering support.

“In the early days when resources were scarce, they were ready to lend a hand, making us equipped with ventilators, testing machines, PPEs all until we’ve been sufficiently supported by other groups for us to continue operating. Nagulat kami, even as we sleep, the Globe Rewards continue to pour in. Every time I check with the [PGH] foundation, may pera pa. We have the opportunity now to put the attention on the most important resource of our hospital, which is our human resource,” said Dr. Legaspi of the initiatives that raised more than P23 million for the PGH Medical Foundation.

Aside from healthcare support, Globe also extends assistance to families going hungry due to current mobility restrictions. Globe sought to address this by partnering with the Walang Iwanan Alliance (WIA), a citizen-led initiative to build a platform that unites all efforts to mitigate or end hunger in the most vulnerable communities across the country, especially those deeply affected by the pandemic.

Last year, the company donated more than P4 million to the cause. It was followed by another donation worth P1.2 million, which came from the fundraising drive initiated by our customers through Globe Rewards.

The impact of the pandemic has left thousands suffering while natural disasters only compounded their problems. This year, WIA was able to focus its initiatives on helping feed families at local food banks and provide community pantry services for those who needed it most.

Continue supporting COVID-19 related initiatives by donating via Globe Rewards. Download the new GlobeOne app now. Atin ang #GDayEveryday.

Globe strongly supports the United Nations Sustainable Development Goals, particularly UN SDG No. 9 for Industry, Innovation, and Infrastructure. Globe is committed to upholding the United Nations Global Compact principles and contributing to 10 UN SDGs.

Learn more by visiting www.globe.com.ph.

 

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National Artist Bienvenido Lumbera, 89

National Artist for Literature Bienvenido “Bien” Lumbera passed away on the morning on Sept. 28, 9 a.m., due to “complications of stroke,” said his family. He was 89 years old. 

A poet, librettist, dramatist, and critic, Lumbera was proclaimed a National Artist in 2006, with the citation pointing out that “as a poet, he introduced to Tagalog literature what is now known as Bagay poetry, a landmark aesthetic tendency that has helped to change the vernacular poetic tradition.” 

Among his best-known works were Likhang Dila, Likhang Diwa, a collection of poems in Filipino and English (1993); Balaybay, Mga Tulang Lunot at Manibalang (2002); and Sa Sariling Bayan, Apat na Dulang May Musika (2004). He also wrote the libretto for the rock opera ballets Tales of the Manuvu, and Rama Hari for Ballet Philippines.

He had taught literature, creative writing, and Philippien Studies in various universities in the Philippines including the Ateneo de Manila University, De La Salle University, the University of the Philippines Diliman, and the University of Santo Tomas. He was Professor Emeritus at the Department of Filipino and Philippine Literature in UP Diliman. 

Always a progressive, Lubera was arrested during Martial Law, and was detained from January to December 1974. 

Through the years he co-founded many organizations, including the Philippine Studies Association of the Philippines and Manunuri ng Pelikulang Pilipino. He was the founding chairperson of the media group Kodao Productions and a member of the Concerned Artists of the Philippines and the Bagong Alyansang Makabayan. 
 
As news of his passing spread, messages poured out on social media.  

Veteran Journalist Inday Varona-Espina wrote: “Paalam (goodbye) Bien Lumbera: Filipino poet, critic and dramatist. He is a National Artist of the Philippines and a recipient of the Ramon Magsaysay Award for Journalism, Literature and Creative Communications. He won numerous literary awards, including the National Book Awards from the National Book Foundation, and the Carlos Palanca Memorial Awards. A former political detainee, Mang Bien was a staunch member and supporter of many progressive groups.” 

The Director’s Guild of the Philippines noted Lumbera’s role in the Philippine film industry: “Dr. Lumbera also led the Concerned Artists of the Philippines, sat as a progressive Vice-Chairman of the 1998 Movie and Television Review and Classification Board, and counted among the fiercest advocates for free expression. Not only a man of the arts, he was truly a man of the people.”  

Writer and activist Lualhati Bautista wrote on Facebook: “Paalam, Bien, (Bienvenido Lumbera), Pambansang Alagad ng Sining. Isa ka sa mga taong mahal ko talaga. Pakikiramay sa iyo, Cynthia, sa pamilya, sa lahat ng manunulat, estudyante, at mga kaibigan. Dala mo ang aming taos-pusong pagpupugay.” (Goodbye, Bien, National Artist. You are a person that I truly love. I give my condolences to you, Cynthia, to the family, to all the writers, students, and friends. You carry with you are full-hearted honor).  

The UP Department of Speech Communication and Theater Arts pointed out that Lubera had written plays for the theater group Dulaang UP, including Hibik at Himagsik nina Victoria Laktaw. “He was an inspiration and mentor to many Filipino writers,” they wrote in a Facebook post. “Maraming salamat po sa lahat, Lolo Bien!” (Thank you for everything, Grandfather Bien!) 

Born on April 11,1932, Mr. Lumbera was a native of Lipa, Batangas. He finished his Bachelor of Literature degree and master’s degree at the University of Santo Tomas, and then earned his Ph.D. in Comparative Literature from Indiana University in 1968.   

Among his many accolades are the Ramon Magsaysay Award for Journalism, Literature, and Creative Communication Arts; the Pambansang Gawad Pambansang Alagad ni Balagtas, Unyon ng mga Manunulat ng Pilipinas; National Book Awards, and the Carlos Palanca Memorial Award for Literature.  

The Cultural Center of the Philippines announced that it will host an online novena and tribute on for the fallen National Artist on Oct. 6. It said that it would be releasing information on the Necrological Service traditionally held at the CCP Main Theater for National Artists after consulting with the family. — MAPS

China’s electricity crunch is world’s latest supply-chain threat 

REUTERS
A Chinese flag is seen on the top of a car near a coal-fired power plant in Harbin, Heilongjiang province, China Nov. 27, 2019. Picture taken November 27, 2019. — REUTERS/JASON LEE

China’s energy crisis is shaping up as the latest shock to global supply chains as factories in the world’s biggest exporter are forced to conserve energy by curbing production.

The disruption comes as producers and shippers race to meet demand for everything from clothing to toys for the year-end holiday shopping season, grappling with supply lines that have been upended by soaring raw material costs, long delays at ports and shortages of shipping containers.

Chinese manufacturers warn that strict measures to cut electricity use will slash output in economic powerhouses like Jiangsu, Zhejiang and Guangdong provinces — which together account for almost a third of the nation’s gross domestic product — and possibly drive up prices.

Local governments are ordering the power cuts as they try to avoid missing targets for reducing energy and emissions intensity, while some are facing an actual lack of electricity.

Clark Feng, whose Vita Leisure Co. buys tents and furniture from Chinese manufacturers to sell overseas, said electricity curbs in the eastern province of Zhejiang, where the company is based, have dealt another blow to businesses. Fabric makers in the province that are suffering production halts have started to hike prices and postpone taking new overseas orders, he said.

“We were already struggling to ship goods overseas, and now with the production capacity restriction, it’s definitely going to be a huge mess,” said Feng. “We already had to deal with so many uncertain factors, and now there’s one more. It will be harder to deliver orders, especially for the holiday season.”

Yiwu Huading Nylon Co. Ltd., a maker of synthetic fabric nylon in Zhejiang, suspended half of its production capacity since Sept. 25 in response to the local government’s order to cut electricity consumption, according to a stock exchange filing Monday. The company expects output to resume from Oct. 1 and said it will look to minimize the impact of the closure.

PORT DISRUPTIONS
The power problems come after recent port disruptions in China rippled across global supply chains. Part of Ningbo port, one of the world’s busiest, was idled for weeks last month following a Covid outbreak, while Yantian port in Shenzhen was shut in May.

The energy crunch will weigh on China’s economy at a time when it’s already slowing because of factors such as stringent virus control measures and tighter restrictions to rein in the property market.

Nomura Holdings Ltd., China International Capital Corp. and Morgan Stanley have also either downgraded GDP growth forecasts or have warned of lower growth because of the power disruptions.

“Global markets will feel the pinch of a shortage of supply from textiles, toys to machine parts,” said Lu Ting, chief China economist at Nomura Holdings Inc in Hong Kong. “The hottest topic about China will very soon shift from “Evergrande” to “Power Crunch.”

Apple iPhone assembly operations in China are beginning to reduce their energy consumption, Pegatron Corp., a key partner for Apple Inc. and one of the assemblers of its iPhone, said on Monday. The company said it’s taking energy-saving measures to comply with local government policies.

Yet the firms responsible for producing the Apple handset have avoided drastic cutbacks in production so far and appear to be getting preferential access to energy in order to keep operations going, according to people familiar with the situation.

Authorities are watching for disruption, with the People’s Daily, the official newspaper of the Chinese Communist Party, saying in an Sunday editorial that the shortages would force companies to raise the prices of goods for Chinese consumers. The government of northeast Liaoning province urged local regulators to prevent power curbs from impacting production and residential use, state broadcaster CCTV reported.

With the power crisis moving from the factory floor to people’s homes, electricity utility State Grid Corporation of China said Monday it will try its best to avoid power cuts to meet basic residential demand.

Analysts say the power shortages will inevitably impact both heavy industries such as aluminum and steel right through to downstream sectors. In the industrial hub of Guangdong, the provincial energy administration issued a notice Sunday that said large-scale cuts to factories have already been implemented.

“No one knows when the supply chain bottleneck will be overcome,” said Hao Hong, head of research and chief strategist at Bocom International. “But it is looking ominous for this winter.”

Chen Yubing, manager at Suzhou Berya Textile Technology Co. Ltd., an exporter of polyester and nylon fabric based in Zhejiang, said his company has suffered “huge losses” due to the suspension. The company’s production lines were only allowed to operate three days a week starting from early September and the latest order on Monday means it will be allowed to operate every other day. Half of the company’s sales come from overseas clients.

“We have problems delivering some orders already,” Chen said. “All we can do now is wait and negotiate with customers.” — Bloomberg

Failed TikTok deal ‘strangest thing I’ve worked on,’ Microsoft CEO says

MYRIAMMIRA-FREEPIK

Microsoft Corp’s near-acquisition of social media app TikTok last year was the “strangest thing I’ve ever worked on,” Chief Executive Officer Satya Nadella said on Monday.

TikTok had been ordered by then-U.S. President Donald Trump to separate its U.S. version from Chinese parent ByteDance because of national security concerns about the collection of U.S. users’ data. Microsoft in August 2020 began talks on the proposed acquisition but the deal collapsed by September.

Trump’s divestment push ended by the time he left office in January and no potential suitor ending up acquiring TikTok.

Speaking at the Code Conference in Beverly Hills, California, Nadella said he was looking forward to bringing Microsoft’s security, child safety and cloud expertise to TikTok.

“It’s unbelievable,” Nadella said of the experience during an on-stage interview. “I learned so many things about so much and so many people. First of all, TikTok came to us. We didn’t go to TikTok.”

“TikTok was caught in between a lot of things happening across two capitals,” Nadella continued. “President Trump had a particular point of view of what he was trying to get done there, and then it just dropped off. The [U.S. government] had a particular set of requirements and then it just disappeared.”

Nadella said what attracted ByteDance CEO Zhang Yiming to Microsoft was the U.S. company’s services related to content moderation and child safety, developed through products included in Xbox video gaming tools and on business social network LinkedIn.

ByteDance did not immediately respond to a request for comment.

Nadella said he has no idea whether the U.S. is still pushing for a deal under President Joe Biden. The Biden administration has said it is reviewing the national security concerns.

“At this point, I’m happy with what I have,” Nadella said.

He also expressed support for greater government regulation of cryptocurrency rules, which could stifle ransomware attacks since the ransoms often flow through opaque systems. — Reuters

Unregulated crypto markets will ‘not end well’ — SEC

Reuters

U.S. cryptocurrency markets and related platforms will “not end well” if they stay outside the purview of regulators, according to Securities and Exchange Commission Chairman Gary Gensler.

“There’s trading venues and lending venues where they coalesce around these, and they have not just dozens but hundreds and sometimes thousands of tokens on them,” Gensler said Monday at the Code Conference in Beverly Hills, California. “This is not going to end well if it stays outside the regulatory space.”

The regulator has previously labeled crypto as the “Wild West” and signaled that he wants more robust oversight of the markets. Last week, Republican Senator Pat Toomey called on Gensler to codify rules for the industry, rather than pursuing “regulation by enforcement.”

At Monday’s conference, Gensler declined to comment on remarks made earlier this month by Coinbase Global Inc. Chief Executive Officer Brian Armstrong that the SEC was regulating by litigation and engaging in “sketchy behavior.” — Bloomberg

Apple’s new iPhone to take longer to reach customers – analysts

Apple iPhone 13 / Apple website

Apple Inc’s customers will have to wait for a few more weeks to lay their hands on the new iPhone 13 as supply chain delays and strong demand lead to one of the longest waiting times for the phone in recent years, analysts said.

The delivery time for Apple’s iPhones after a new launch is watched by analysts as one of the measures to gauge demand for the flagship phone’s newest model. But this year, it is also shining a light on supply chain issues plaguing technology companies ahead of the holiday shopping season.

Analysts at J.P.Morgan and Credit Suisse said customers across the world who had pre-ordered the new models online would have to wait more than four weeks for the iPhone 13 Pro and Pro Max and about 2 weeks for the base iPhone 13.

In the United States, which accounts for over a third of iPhone shipments, the delivery time for the iPhone 13 series was 19 to 34 days in the second week, compared with 7 to 20 days in the first week, both greater than the lead times for the iPhone 12 Series.

Apple was not immediately available to comment on the delays in delivery times.

“While admittedly part of the expansion in the lead times is on account of the supply chain constraints, we still find the material increase in the lead time in Week 2 relative to Week 1 as an indicator of the robust demand for upgrades, likely exceeding low investor expectations into the launch,” J.P.Morgan analyst Samik Chatterjee said.

Apple’s partners Verizon, Vodafone UK and Best Buy cited high demand and product supply issues in replies to customers on Twitter. Many users on social media also flagged the delays.

“With a delay on the delivery for iPhone 13 pro max I might as well cancel! They talking (about until) October 30th,” one user said on Twitter.

On Sunday, several Apple and Tesla Inc suppliers suspended production at some Chinese factories for a number of days to comply with tighter energy consumption policies, putting supply chains at risk in the peak season for electronics goods.

The iPhone 13, priced between $699 and $1,599, comes with a sharper camera, a new bionic chip and improved connectivity. It has been available for pre-booking since Sept. 17. — Reuters

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