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30-year infrastructure plan bill hurdles House committee

PHILIPPINE STAR/ MICHAEL VARCAS

THE HOUSE Committee on Public Works and Highways approved a substitute bill Wednesday that seeks to adopt a 30-year national infrastructure plan.

The unnumbered substitute bill that will replace House Bill 8151 or the 30-Year National Infrastructure Program Act of 2021 covers major infrastructure projects by the National Government in transport, energy, water resources, information and communications technology, and social infrastructure.

It will require the National Economic and Development Authority (NEDA) in coordination with oversight and implementing agencies to draft and implement the 30-year plan, divided into six five-year phases.

The proposed measure will also serve as a basis for medium-term and annual programming and budgeting for infrastructure, including for the drafting of National Expenditure Plans and General Appropriation Acts.

It also requires a minimum annual budget allocation for infrastructure projects by the NEDA and Department of Budget and Management to comprise at least 5% of gross domestic product.

Among the amendments made to the approved bill were the inclusion of poverty alleviation, environmental sustainability, and financial viability among the criteria for project selection, along with risk management measures to adapt to large-impact disruptive events.  

Samar Rep. Edgar Mary S. Sarmiento said approval of the bill will ensure continuity in all infrastructure projects funded by the National Government regardless of the agenda of the current and future administrations moving forward.

A counterpart measure filed by Senator Emmanuel D. Pacquiao is pending at committee level. — Russell Louis C. Ku

DENR requests additional funds for river dredging

PHILSTAR

ENVIRONMENT SECRETARY Roy A. Cimatu has asked the budget department for an additional P4.65 billion to buy new dredging equipment to be used in removing sandbars from the Bicol and Cagayan River basins.

Some P1.45 billion will support operations in the Bicol River basin and P3.2 billion will fund activities in the Cagayan River basin.

In a statement Thursday, the Department of Environment and Natural Resources (DENR) said Mr. Cimatu is pushing for the early removal of sandbars from the Bicol River between 2023 and 2025, and from the Cagayan River between 2025 and 2028.

He said that while priority funding should be allotted for initiatives focusing on the public health emergency, “priority should likewise be given to equally important efforts on climate change and disaster mitigation programs meant to assure the country of its food security and prevent, or at least minimize loss of precious infrastructure due to flooding.”

“If we invest now, the best (case scenario) is to have these pieces of equipment this year,” he added.

At present, the DENR is using the dredging equipment of the Department of Public Works and Highways (DPWH) for both river basins.

The DPWH and DENR are both part of the Task Force Build Back Better (TF BBB) which is in charge of restoring the river basins in Cagayan, Bicol, and Marikina.

According to Mr. Cimatu who also chairs the TF BBB, the group’s achievements are “proof” that the government can finish the project faster and at less cost than private contractors.

The Department of Budget and Management (DBM) confirmed that it has received the DENR’s request for additional funding.

“The request was referred to the DPWH for possible accommodation in the available funds of DPWH,” DBM Spokesperson Rolando U. Toledo told BusinessWorld. — Angelica Y. Yang

Upgraded Siquijor airport, seaport to boost regional dev’t

PHILSTAR

THE NEWLY upgraded airport and seaport of Siquijor are projected to boost employment, economic growth, and trade in the Central Visayas, the Transportation department said Thursday.

Officials from the Department of Transportation and the Philippine Ports Authority inaugurated Siquijor’s modernized airport and upgraded seaport on Thursday.

Noon, sampung pasahero lang ang kapasidad ng old airport, ngayon ay pinaganda natin ito at na-expand, nadagdagan ng 50 passengers ang capacity at any given time. In the future, magiging 100 na ito (We expanded the capacity of the old airport to 50 at any given time from 10. This will rise to 100 in the future),” Transportation Secretary Arthur P. Tugade said in his speech during the ceremony.

The department said the airport upgrade project covered the construction of a new passenger terminal building, a powerhouse, and a vehicle parking area.

Works are underway to make the airport ready for commercial operations. Civil Aviation Authority of the Philippines Director General Jim C. Sydiongco said the government will be implementing a P450-million project for the site acquisition, extension, and asphalt overlay of Siquijor airport’s runway.

The improvements are targeted for completion by June 2022, he added.

The Transportation department added: “The Siquijor port development, which started in 2018 and was formally completed early this year, doubles the vessel berthing capacity of the terminal to eight from the previous four vessels, thus enabling it to handle bigger, more sophisticated passenger vessels.”

“It likewise increased the number of Ro-Ro ramps to two, therefore reducing the queueing by more than half the time as well as equipped the terminal with enough capacity to handle a vessel up to 65 meters in length,” it added.

The department hopes both projects will help with social and economic development, growing the tourism industry and expanding opportunity in the province and the region. — Arjay L. Balinbin

Gov’t laying groundwork to regulate rabbit imports for meat

CALGARY REVIEWS

THE DEPARTMENT of Agriculture (DA) has issued transitory guidelines on rabbit imports, part of a broader plan to develop alternative sources of meat.

Agriculture Secretary William D. Dar signed Memorandum Circular No. 15 on Aug. 25 which will govern the import process.

Mr. Dar said there is increasing interest from farmers in rabbit meat production due to the low production costs and ease of propagation.

“The growing awareness and local acceptance of rabbit meat as an alternative source of protein amid the rising prices of major livestock commodities such as pork and poultry meat have ignited a subsequent increase in the sanitary and phytosanitary import clearance (SPSIC) requests for meat-type rabbit breeds,” Mr. Dar said.

“The DA prescribes the following guidelines … in order to facilitate the safe importation and introduction of superior genetics from other countries while preventing the inadvertent introduction and spread of transboundary animal diseases of rabbits,” he added.

Under the memorandum circular, any prospective importer must be authorized as a live rabbit importer by the Bureau of Animal Industry-National Veterinary Quarantine Services Division (BAI-NVQSD) and should apply for import clearances through the DA intercommerce services website.

The circular requires the rabbit farm and livestock transport vehicle to be accredited by the BAI or DA regional office, while the proposed quarantine site should be inspected by the BAI-Veterinary Quarantine Services in the area.

The DA said only certified rabbit farms and authorized exporters endorsed by the source country will be accepted, and that the proposed quarantine site should have enough cages, housing ventilation, and be thoroughly disinfected prior to the arrival of the imported rabbits.  

“Upon submission of the accomplished questionnaire to BAI, exporting countries of rabbits shall submit their proposed International Veterinary Certificate (IVC) for evaluation of BAI, following the import terms and conditions set by the BAI. After the agreement of both countries on the IVC, trade can now commence,” the DA said.

According to the DA, imported rabbits should be born and bred in the exporting country and must be free from Rabbit Hemorrhagic Disease/Viral Hemorrhagic Disease (RHD/VHD), Myxomatosis and Tularemia.

The imported rabbits should be at least 60 days old and not pregnant at the time of shipment, with identification marks such as microchips embedded in each rabbit.

Agricultural group Samahang Industriya ng Agrikultura (SINAG) is one of the advocates of utilizing rabbits as an alternative source of meat amid the sharp decline of pork supply due to the ongoing African Swine Fever (ASF) outbreak.

However, SINAG Executive Director Jayson H. Cainglet said in a phone interview that the import guidelines do not bode well for the rabbit industry.

“The local rabbit industry includes livestock and poultry raisers who were displaced due to African Swine Fever and other reasons. The industry is already popularizing the consumption of rabbit as an alternative meat source. As a result, we urge the DA to develop the industry first before thinking about imports,” Mr. Cainglet said. — Revin Mikhael D. Ochave 

Efficiency law seen producing up to 23% in energy savings

PHILSTAR

ENERGY SAVINGS with the full implementation of the energy efficiency law could amount to 23%, Senator Sherwin T. Gatchalian said.

“We’ve seen some initial data. Right now, the law is still being implemented, but initially we’ve seen savings of about 23% from businesses if this law is fully implemented,” he said at a virtual event Thursday.

“That’s the same savings that we can realize if government also fully implements the law.”

The Energy Efficiency and Conservation Act or Republic Act No. 11285 aims to institutionalize energy efficiency through conservation programs.

Energy savings refer to the percentage reduction of energy consumption to perform the same task, which lowers spending on power and reduces environmental harm.

Mr. Gatchalian, who chairs the Senate Committee on Energy, said the law is in its infancy but it can contribute to the efficiency of industries.

“The traditional thinking of economic growth is you add more power, but in Germany they have already demonstrated that you can grow by being more efficient and consuming less power.”

Philippine Energy Efficiency Alliance, Inc. President Alexander de Ramos Ablaza said economy-wide energy savings would likely be the equivalent of 21% of final energy demand.

“We’re hoping that the energy efficiency and conservation law will be the first policy measure. It will not be the only measure, but there will be supplemental pieces of legislation,” he said in a phone interview Thursday.

The law needs to be fully enforceable within the next few years, he said. — Jenina P. Ibañez

Fiscal efforts for nothing?

Last Wednesday, the broadsheets reported that the Philippines will receive 1.958 billion Special Drawing Rights (SDRs) or around $2.777 billion from the International Monetary Fund (IMF). Member countries receive this support for financing measures to help them recover from the coronavirus pandemic.

The Fund derives its income from its lending program to any of its 190 member countries experiencing temporary balance of payments difficulty and in the process secure financial and monetary stability as well as facilitate international trade. In recent years, the Fund has also championed the cause of high employment and sustainable economic growth and poverty reduction around the world. The Fund also runs its own investment portfolio.

Providing additional reserves is imperative given the health pandemic’s corrosive impact on output and prices, as well as on jobs and income. Otherwise, it would be years before we could expect to recover our pre-pandemic levels of economic growth and quality of life. Economic scarring could be very deep and long lasting.

This is a big help to the Philippines.

With our current holding of 837.964 million SDRs, the Fund transfer brings our total holding to 2.795 billion SDRs or about $3.964 billion. This should be reflected shortly in our end-July gross international reserves (GIR) of $106.548 billion.

This increment to the GIR is technically the National Government’s (NG). Membership at the Fund is governmental even as the representation is done by the monetary authorities. While our membership subscription has always been advanced by the Bangko Sentral ng Pilipinas (BSP), NG would always write a noninterest bearing promissory note for settlement on maturity.

How do we expect this additional resource to be used by NG?

Globally, the Fund released $650 billion to its constituents, of which $275 billion went to emerging markets and developing countries. IMF Managing Director Kristalina Georgieva expressed hope that “the SDR allocation will provide additional liquidity to the global economic system — supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt.” The use is expected to be prudent and well-informed.

This means some $2.8 billion or P140 billion of the country’s budget is now covered by new money.

If this were to be used this year when P2 trillion is programmed for borrowing, NG could simply reduce its borrowing to about P1.86 trillion. Further exposure to the capital market is minimized while maintaining a pre-determined level of public spending for vaccines, medical supplies and facilities, infrastructure, and social services. Debt sustainability is an important component to ensure quicker bounce back.

Since SDRs cannot be used directly to pay off foreign debt principal or interest, NG could opt to request the BSP to exchange it for hard currency instead. If this is the mode of use, the reserves level will be constant because the SDR inflow will be matched by as much FX outflow. If the proceeds of the SDR support are to be used for domestic purposes, the BSP could exchange the SDR for pesos and increase the reserves level by $2.8 billion. However, P140 billion of domestic liquidity will be infused into the market. This is like reducing the required reserves ratio by a little less than 10% given the latest deposit liabilities level of around P1.5 trillion.

All up, this should be a big debt relief for the government.

For the budget deficits this year and the next, estimated to reach 9.3% and 7.5% of GDP, respectively, are simply enormous but necessary. It follows that the ratio of borrowings to GDP is also projected to balloon this year and the next to around 60% from only 39.6% in 2019 before the pandemic. In absolute terms, NG outstanding debt at end-December 2019 stood at P9.8 trillion but this rose to P11.2 trillion at end-June 2021. This level of debt could be another P2 trillion higher at end-2022 but with the SDR factor, could be lower by P140 billion.

But we expect both the deficit and its financing to remain rising.

There are continuing and additional demands on the budget. We need to procure more vaccines; equip our public hospitals with stronger facilities; hire more public personnel in the health sector, education, information technology; and lately, even in government audit. Infrastructure remains indispensable although the choice between infra and health should be skewed to life. We should know where to put the proceeds of our taxes and borrowings.

But Janet S. Cuenca of the Philippine Institute for Development Studies in December 2020, demonstrated the actual priority of the NG. With its declaration that its priority for 2021 is to “sustain and strengthen government efforts in responding to and recovering from the pandemic,” we would expect both the Department of Health and the Department of Social Welfare and Development would have ranked higher because they were servicing both health and social sectors in this time of pandemic. This year’s budget instead placed greater premium on maintenance of peace and order as well as national defense. The Department of the Interior and Local Government and Department of National Defense topped their counterparts in health and social services. In fact, this year’s budget allocated a significant amount to the National Task Force to End Local Communist Armed Conflict (better known as NTF-ELCAC) as part of the government’s recovery program to adapt to post-pandemic life. As far as we know, its budget for next year even exceeded the budget for the University of the Philippines.

Such budget dynamics should highlight the importance of what the fiscal authorities are trying to achieve for this government and its successor in 2022.

If the remaining tax bills under the Comprehensive Tax Reform Program are passed by Congress before the end of this year, the country will succeed in restoring the pre-pandemic budget deficit by 2025. These two bills are the Real Property Valuation and Assessment Reform Act and the Passive Income and Financial Intermediary Taxation. Both are expected to bring in more public revenues and mitigate the fiscal risk of unsustainable deficit and uncontrollable borrowings.

One can add that should the pandemic be neutralized by a more massive vaccine rollout, the possible administration of booster shots, sustained compliance with health protocols, economic recovery will be quicker. Business activities would be in full swing much earlier.

The battle in Congress is going to be uphill but it must be worth it. As Finance Secretary Sonny Dominguez clarified, “the government can bring down its deficit either by lowering the budget or raising more revenues.”

But there’s a catch.

The recent Commision on Audit findings on potential sources of corruption in public agencies would make the job of our economic managers rather difficult, if not impossible. The huge leakage in the national budget virtually defunds critical public spending and compels greater credit exposure. Anything that detracts from fiscal sustainability even for a few inches could take us many miles away from it.

The evidence is all around us.

What has been budgeted is either unused or misused. It has become ordinary to hear that hospitals, both private and public, are turning away patients because they are simply over the top. COVID-19 patients get their treatments in emergency rooms, along the sidewalk or along the driveway. In Cebu, hospitals are running out of capacity. Highlighting the sustained incidence of COVID-19, crematoriums are also fully booked not only in Laguna but also in Cebu. The ayuda (government assistance) remains a dream for many impoverished Filipinos including the elderly.

It’s only a matter of time before we see more hospitals refusing to render medical services because PhilHealth continues to buy time before it reimburses hospital charges and advances. Massive protests and mass walkouts from health institutions are also great possibilities if the NG fails to pay salaries and special risk allowances on time. Health Secretary Francisco Duque’s suggested dialogue between PhilHealth and affected hospitals will never work unless money is made available. Not all hospitals, in the first place, commit fraud. It is incumbent upon PhilHealth to do due diligence but pay promptly. Otherwise, the health infrastructure could collapse. We can then kiss economic recovery goodbye.

The SDR support will be trivialized. Those fiscal efforts will be for nothing.

 

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.

Strike three for the US

AMBER CLAY-PIXABAY

Last week’s chaos at Afghanistan’s Kabul Airport was somewhat reminiscent of the scene in the former South Vietnamese capital of Saigon (now Ho Chi Minh City) when US troops pulled out in 1975 as the guerrillas of the National Liberation Front (NLF), which the US had derisively labelled the “Vietcong,” took control of the city.

Thousands of Afghans and people of other nationalities including Overseas Filipino Workers (OFWs) who fear that the Taliban’s regaining control of the country would endanger them, were cheek-by-jowl fighting for places in departing commercial flights as the US military began flying out its own personnel. The Taliban’s cancellation of commercial flights left thousands stranded, although some OFWs did manage to leave. But the crush continued, and claimed several lives.

That disturbing spectacle was not quite the same as that in Saigon, 1975. What much of the world saw through photographs and video then was the mad scramble at the US Embassy among US collaborators for seats in the helicopters that were leaving the premises. But what the images from Kabul and the former Saigon were conveying was the same: the US had lost another war of its own making.

The “loss” of China to the forces of Mao Zedong is arguably the first. Although the US supported the Kuomintang Party during the civil war in that country, the Communist Party of China nevertheless won nationwide power in 1949. But that probably does not count, because US involvement in that war was relatively limited.

With the communist victory in China, and alarmed over the possibility of revolutionary change in Asia in the post-World War II period, the US supported France in its attempt to recover its former colonies in “French Indochina,” which included Vietnam, where the nationalist-communist forces of Ho Chi Minh’s Vietminh were waging a war of independence against their former colonizer after fighting the Japanese invaders during World War II.

Ho issued a declaration of Vietnamese independence patterned after that of the US, and was hoping for US support. But even without it, Vietminh General Vo Nguyen Giap succeeded in defeating the French forces in the decisive 1954 battle of Dien Bien Phu. In the aftermath, to justify US intervention in Vietnam, then President Dwight Eisenhower concocted the “Domino Theory,” which argued that the “loss” of that country to the Vietminh would lead to the fall, like so many domino tiles, of the countries of Southeast Asia to communism.

With US prompting, Vietnam was divided into North and South, with the Vietminh in control of the independent North, while a French-influenced regime was initially installed in the South, where NLF forces nevertheless continued the fight for independence and reunification.

The “Domino Theory” has since proven to be as absurd as the US claim that wars of national liberation were all directed by the former Soviet Union. But in the next two decades until 1975, the US escalated its involvement in Vietnam by supporting a succession of compliant regimes there; deploying military “advisers” and, eventually, 549,000 of its own troops as combatants; and carpet bombing presumed guerrilla bases. But it nevertheless lost the war to the NLF — an enemy without an air force, a navy, tanks, and heavy artillery — at a cost of billions of dollars, over a million Vietnamese lives, and 50,000 of its own soldiers.

The Afghanistan debacle is a seeming reprise of what happened in Vietnam. The US war against the Taliban began in late September 2001 shortly after the attacks on the World Trade Center in New York and on Department of Defense offices in the Pentagon on Sept. 11, presumably by the terrorist group Al-Qaeda. Because of its refusal to surrender Al-Qaeda leader Osama bin Laden, whom the US believed was in Afghanistan, the Taliban-controlled government was overthrown by US and anti-Taliban forces such as the Northern Alliance by December 2001.

The US failed to capture Osama bin Laden, and its military forces and other personnel stayed in Afghanistan, setting up governments it approved of, training the Afghan armed forces and keeping at bay the Taliban, which remained in control of pockets of Afghan territory. Despite its success in killing Osama bin Laden in 2011 — in Pakistan and not in Afghanistan — during the Barack Obama presidency, the US nevertheless stayed on for another 10 years until August this year, when the Taliban rapidly regained control of the entire country as US military forces began to withdraw — and the Afghan army it had trained and the government it had supported melted away without a fight. In its attempt to “modernize” Afghanistan only to abandon it, the US has left the most vulnerable sectors of its population at the mercy of the Taliban.

Although the end of both led to a rush for thousands to flee, one of the differences between the Vietnam and Afghanistan wars is the nature of the winning forces.

The leaders of now independent Vietnam have reunited their country, and, despite the huge human and material costs of the 35-year war there, have managed to effect its transition into a rapidly developing society with a strong economy, and as an equal member of the international community.

The Islamic fundamentalist Taliban is, on the other hand, a regressive entity that has a long record of violence and repression against the population and a disdain for the rights of women to education, to engagement in the professions, and to equality. It will very likely launch a pogrom of suppression and annihilation against liberated women, artists, and journalists, former government workers, and intellectuals. The prospects for the future of Afghanistan are, to say the least, bleak.

The end of the Vietnam War also led to the exodus of evacuees and refugees to the US and other countries, but the number of Afghan refugees will probably exceed the number of those from Vietnam. Today, as in 1975, the US rightwing is once again sounding the alarm bells about the US’ being “invaded” by millions of non-white immigrants. They were from Vietnam then; they will be from Afghanistan now. The racist assumptions of that claim aside, if indeed that happens, the US will have only itself to blame for waging “wars of choice” rather than “wars of necessity.”

If we discount the “loss” of China, the US has lost three such wars since the 1970s: those it waged in Vietnam, in Iraq, and in Afghanistan. In every instance the consequences have led to the influx of refugees into the US. But those who lament that “invasion” ignore the fact that they have been disastrous for the populations of those countries: Iraq, which the US invaded in 2003, but withdrew from in 2011, is, for example, still in ruins and in chaos.

But so have the consequences of the wars of intervention the US has won been as catastrophic, such as those it waged in Latin America — and, dare we say, the Philippines? — in support of some of the most corrupt, most vicious, and most murderous despots in recent history who are violently resistant to the democratization and development that can lift millions out of the depths of poverty and despair into which an unjust order has flung them. US intervention during the last 100 years has done little to benefit the peoples of the world, but has instead made vast areas of the planet “… a darkling plain/Swept with confused alarms of struggle and flight…” (Matthew Arnold, “Dover Beach”).

 

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

www.luisteodoro.com

Why it will soon be too late to find out where the COVID-19 virus originated

SARS-CoV-2 has caused the greatest pandemic of the past 100 years. Understanding its origins is crucial for knowing what happened in late 2019 and for preparing for the next pandemic virus.

These studies take time, planning, and cooperation. They must be driven by science — not politics or posturing. The investigation into the origins of SARS-CoV-2 has already taken too long. It has been more than 20 months since the first cases were recognized in Wuhan, China, in December 2019.

This week US President Joe Biden was briefed by United States intelligence agencies on their investigation into the origins of the virus responsible for COVID-19, according to media. Parts of the investigation’s report are expected to be publicly released within the next few days.

An early report from the New York Times suggests the investigation does not conclude whether the spread of the virus resulted from a lab leak, or if it emerged naturally in a spillover from animals to humans.

While a possible lab leak is a line of enquiry (should scientific evidence emerge), it mustn’t distract from where the current evidence tells us we should be directing most of our energy. The more time that passes, the less feasible it will become for experts to determine the biological origins of the virus.

I was one of the experts who visited Wuhan earlier this year as part of the World Health Organization’s (WHO) investigation into SARS-CoV-2 origins. We found the evidence pointed to the pandemic starting as a result of zoonotic transmission of the virus, meaning a spillover from an animal to humans.

Our inquiry culminated in a report published in March which made a series of recommendations for further work. There is an urgent need to get on with designing studies to support these recommendations.

Today, myself and other independent authors of the WHO report have written to plead for this work to be accelerated. Crucial time is disappearing to work through the six priority areas, which include:

• further trace-back studies based on early disease reports

• SARS-CoV-2-specific antibody surveys in regions with early COVID-19 cases. This is important given a number of countries including Italy, France, Spain, and the United Kingdom have often reported inconclusive evidence of early COVID-19 detection

• trace-back and community surveys of the people involved with the wildlife farms that supplied animals to Wuhan markets

• risk-targeted surveys of possible animal hosts. This could be either the primary host (such as bats), or secondary hosts or amplifiers

• detailed risk-factor analyses of pockets of early cases, wherever these have occurred

• and follow up of any credible new leads.

The biological feasibility of some of these studies is time dependent. SARS-CoV-2 antibodies emerge a week or so after someone has become infected and recovered from the virus, or after being vaccinated.

But we know antibodies decrease over time — so samples collected now from people infected before or around December 2019 may be harder to examine accurately.

Using antibody studies to differentiate between vaccination, natural infection, or even second infection (especially if the initial infection occurred in 2019) in the general population is also problematic.

For example, after natural infection, a range of SARS-CoV-2-specific antibodies, such as to the spike protein or nucleoprotein, can be detected for varying lengths of time and in varying concentrations and ability to neutralize the virus.

But depending on the vaccine used, antibodies to the SARS-CoV-2 spike protein may be all that is detected. These, too, drop with time.

There is also a need to have international consensus in the laboratory methods used to detect SARS-CoV-2-specific antibodies. Inconsistency in testing methods has led to arguments about data quality from many locations.

It takes time to come to agreement on laboratory techniques for serological and viral genomic studies, sample access and sharing (including addressing consent and privacy concerns). Securing funding also takes time — so time is not a resource we can waste.

Moreover, many wildlife farms in Wuhan have closed down following the initial outbreak, generally in an unverified manner. And finding human or animal evidence of early coronavirus spillover is increasingly difficult as animals and humans disperse.

Fortunately, some studies can be done now. This includes reviews of early case studies, and blood donor studies in Wuhan and other cities in China (and anywhere else where there was early detection of viral genomes).

It is important to examine the progress or results of such studies by local and international experts, yet the mechanisms for such scientific cross-examination have not yet been put in place.

New evidence has come forward since our March report. These papers and the WHO report data have been reviewed by scientists independent of the WHO group. They came to similar conclusions to the WHO report, identifying:

• the host reservoir for SARS-CoV-2 has not been found

• the key species in China (or elsewhere) may not have been tested

• and there is substantial scientific evidence supporting a zoonotic origin.

While the possibility of a laboratory accident can’t be entirely dismissed, it is highly unlikely, given the repeated human-animal contact that occurs routinely in the wildlife trade.

Still, the “lab leak” hypotheses continue to generate media interest over and above the available evidence. These more political discussions further slow the cooperation and agreement needed to progress with the WHO report’s phase two studies.

The WHO has called for a new committee to oversee future origins studies. This is laudable, but there is the risk of further delaying the necessary planning for the already outlined SARS-CoV-2 origins studies.

 

Dominic Dwyer is the Director of Public Health Pathology, NSW Health Pathology, Westmead Hospital and University of Sydney, University of Sydney.

Even the best climate forecasts are shaded by clouds

THE Intergovernmental Panel on Climate Change’s (IPCC) latest report has confirmed much that we already knew: Human activities have caused an unprecedented warming of the Earth and, as a result, we’re seeing more frequent droughts and heat waves, extreme rainfall and record-breaking temperatures.

Still, many aspects of climate remain uncertain, and some are quite puzzling. An important one of these is climate sensitivity, defined as the rise in average global temperature that’s expected to result from a certain increase (often taken as a doubling) in the atmospheric concentration of carbon dioxide. In 1979, MIT meteorologist Jules Charney first estimated this to be in the range 1.5 to 4.5 degrees Celsius. In the 42 years since, remarkably, scientists have learned very little more about this quantity, even as the computers they use to model climate and weather have grown a trillion times more powerful.

What’s especially odd is that this persistent uncertainty stems, at least in part, from something even non-scientists know very well: clouds.

Clouds are involved because of the basic reality that shifting the atmosphere to a slightly higher temperature evaporates water, producing more of them. More clouds, in turn, would be expected to either drive temperatures up further, or to lower them. But researchers aren’t sure which way things will go, because clouds can have different effects.

During daytime, they reflect light up toward the sky, reducing the amount of heat reaching the ground. More clouds reflect more light and heat. At night, on the other hand, clouds act like blankets, trapping heat that might otherwise escape the atmosphere and radiate away.

You might think that scientists could use computers to simulate the complexity and solve their riddle. But clouds, although big on the human scale — stretching to as much as a mile or more wide — are tiny compared with the whole atmosphere, too small for scientists to include in any sensible way in today’s computer climate models. The models work by breaking up the atmosphere into discrete parcels, generally well over 10 miles wide, and they either leave clouds out or only approximate their effects. The amount of cloud cover in a region might be estimated as proportional to the local humidity, for example.

Another problem with clouds is that they’re made of water, one of the most complex substances in the universe, able to change easily from solid to liquid to vapor, and often coexisting in one small region as all three. So, the number of possible pathways for further feedback is mind-boggling. Even the best climate models contain significant uncertainty about the state of clouds at any temperature — in particular, how much water they hold, and whether that water is liquid or frozen. And these uncertainties translate into errors in projections of climate sensitivity under temperature change.

One slightly perverse outcome of this situation is that efforts to improve some of the components in climate models — making clouds’ liquid-ice mixture more realistic, for example — have actually been found to make the overall models worse. This is because other components of the models, including calculations of how quickly clouds rain out their moisture, have made compensating errors. It will take improvements in both to get a better end result.

Hence, the road to perfection in climate models is winding, and full of obstacles. The latest IPCC report now estimates the climate sensitivity to be in the range 2.5 to 4.5 degrees C, shifting slightly toward the higher end of Charney’s original estimate. This suggests the planet is likely to be slightly more sensitive to continuing greenhouse-gas emissions than scientists had thought, which is not exactly a reassuring thought.

The climate forecast is ever so slightly more certain than before. But the picture remains cloudy — in part, because of clouds.

BLOOMBERG OPINION

The worldwide supply chains problem keeps getting worse

REUTERS

A SUPPLY chain crunch that was meant to be temporary now looks like it will last well into next year as the surging delta variant upends factory production in Asia and disrupts shipping, posing more shocks to the world economy.

Manufacturers reeling from shortages of key components and higher raw material and energy costs are being forced into bidding wars to get space on vessels, pushing freight rates to records and prompting some exporters to raise prices or simply cancel shipments altogether.

“We can’t get enough components, we can’t get containers, costs have been driven up tremendously,” said Christopher Tse, chief executive officer of Hong Kong-based Musical Electronics Ltd., which makes consumer products from Bluetooth speakers to Rubik’s Cubes.

Mr. Tse said the cost of magnets used in the puzzle toy have risen by about 50% since March, increasing the production cost by about 7%. “I don’t know if we can make money from Rubik’s Cubes because prices keep changing.”

China’s determination to stamp out Covid has meant even a small number of cases can cause major disruptions to trade. This month the government temporarily closed part of the world’s third-busiest container port at Ningbo for two weeks after a single dockworker was found to have the delta variant. Earlier this year, wharves in Shenzhen were idled after the discovery of a handful of coronavirus cases.

“Port congestion and a shortage of container shipping capacity may last into the fourth quarter or even mid-2022,” said Hsieh Huey-chuan, president of Taiwan-based Evergreen Marine Corp., the world’s seventh-biggest container liner, at an investor briefing on Aug. 20. “If the pandemic cannot be effectively contained, port congestion may become a new normal.”

The cost of sending a container from Asia to Europe is about 10 times higher than in May 2020, while the cost from Shanghai to Los Angeles has grown more than sixfold, according to the Drewry World Container Index. The global supply chain has become so fragile that a single, small accident “could easily have its effects compounded,” HSBC Holdings Plc. said in a note.

Higher freight rates and semiconductor prices could feed into inflation, said Chua Hak Bin, senior economist at Maybank Kim Eng Research Pte. in Singapore. In addition, producers including Taiwan’s Giant Manufacturing Co., the world’s biggest bicycle maker, say they will raise prices to reflect the increased costs.

In the US, forecasters have lowered growth projections for this year and lifted inflation expectations into 2022, according to Bloomberg’s latest monthly survey of economists. Compared to a year earlier, the personal consumption expenditures price index is now expected to rise 4% in the third quarter and 4.1% in the fourth, double the Federal Reserve’s 2% goal.

Hong Kong-based coffee-machine maker Eric Chan doesn’t see the crunch easing for months as he juggles a supply line that involves hundreds of components to meet booming demand for kitchen appliances.

DELTA VARIANT
The spread of the delta variant, especially in Southeast Asia, is making it difficult for many factories to operate at all. In Vietnam, the world’s second-largest producer of footwear and clothing, the government has ordered manufacturers to allow workers to sleep in their factories to try to keep exports moving.

Even mighty Toyota Motor Corp. is affected. The automaker warned this month it will suspend output at 14 plants across Japan and slash production by 40% due to supply disruptions including chip shortages.

On the other side of the planet, companies in the UK are grappling with record low levels of stock and retail selling prices are rising at the fastest pace since Nov. 2017.

Germany’s recovery is also under threat. A key measure of business confidence in Europe’s largest economy, released on Wednesday by the Munich-based Ifo institute fell by more than economists had predicted with the drop blamed in part on shortages for metals, plastic products and semiconductors, among other goods. It is hard to see supply chain bottlenecks being resolved any time soon, with some major exporters including Indonesia and Vietnam still struggling to contain the delta outbreak. It could continue to drag on the global recovery by slowing production and pushing up costs, although not derailing it.

At the heart of the price pressures is the transport bottleneck.

Big retailers tend to have long-term contracts with container lines, but Asian production relies on networks of tens of thousands of small and medium-sized producers who often arrange shipping through logistics firms and freight forwarders. They in turn have been struggling to secure space for clients as vessel owners sell to the highest bidders.

Some 60% to 70% of shipping deals on the Asia-America route are done through spot or short-term deals, according to Michael Wang, an analyst at President Capital Management Corp. He said auction-style pricing may continue until Chinese New Year in Feb. 2022.

Buyers agree. In Germany, more than half of the 3,000 firms polled by the Association of German Chambers of Industry and Commerce expected widespread supply-chain problems to persist into next year.

Colin Sung, general manager of Dongguan-based World-Beater International Logistics Co., said one client had more than 70 containers of goods sitting at a warehouse in Shenzhen because his American buyer didn’t want to pay the shipping cost. Mr. Sung said 60% to 70% of his clients have cut shipments due to rising costs.

ASIAN FACTORIES
For Asian factories outside China, the problem is even worse. Many Chinese companies are willing to pay above-market rates to load their cargo, said a spokesman at HMM Co., South Korea’s biggest container line. So when the ships call at ports outside China, they’re already almost full.

Chinese companies that spent decades shifting production of lower-value components to cheaper labor markets in South and Southeast Asia now face the headache of trying to get those parts to factories where they can be assembled into finished products.

As factories succumb to lock-downs, manufacturers are forced into a game of whac-a-mole, switching raw materials from one country to another. Some have resorted to air-freighting materials such as leather to factories to keep production lines rolling.

Meanwhile, Luen Thai’s Tan, who is also Deputy Chairman of the Federation of Hong Kong Industries, is trying to figure out how he’ll fill festive display windows in time for Christmas.  Bloomberg

PBA hails combined efforts of stakeholders in season return

PBA Commissioner Willie Marcial said the expected resumption of the Philippine Cup next would not have been possible if not for the combined efforts of league stakeholders. — PBA IMAGES

By Michael Angelo S. Murillo, Senior Reporter

THE Philippine Basketball Association (PBA) is expected to resume its temporarily halted All-Filipino tournament next week in Pampanga in what the league describes as a product of the combined efforts of stakeholders amid a challenging situation.

At a media forum on Thursday, PBA Commissioner Willie O. Marcial said that they are excited to resume activities after a month of stoppage and grateful that the entire PBA family was involved in making the return a possibility.

Mr. Marcial said the teams and players worked in tandem with the league in pushing for the continuation of the Philippine Cup, halted since Aug. 2 after Metro Manila was placed under Enhanced Community Quarantine (ECQ) and, later on, under Modified ECQ.

The teams, he said, were very cooperative in making the necessary adjustments as far as the training of the players and making sure all the prescribed protocols were being followed to make a strong case for the league’s ability to conduct activities under a safe and healthy environment.

They are now in different parts of Pampanga training in preparation for the resumption of games beginning in the first week of September at the Don Honorio Ventura State University (DHVSU) in Bacolor.

Players, too, were part of the return process, Mr. Marcial said, even chipping in for their accommodation and food as the league goes into a “semi-bubble.”

“The players reached out to me, led by LA Tenorio (of Barangay Ginebra), that they want the tournament to continue. But I was honest with them. I said we cannot go into another bubble like last year because it is very expensive. We spent at least P70 million for that and we cannot do it again for now,” said the PBA chief in Filipino.

“But LA said he talked to the team captains and they agreed to shoulder some of the expenses to lessen the burden on the league and the teams,” he added.

It was a welcome move, Mr. Marcial said, which helped facilitate the league’s push for resumption.

The PBA formally got the approval of DHVSU on Wednesday to use its facilities for the games after getting the endorsement of Pampanga Governor Dennis G. Pineda and Congressman Aurelio D. Gonzales, Jr.

The league said proceedings in Bacolor will be guided by health and safety protocols approved by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) and the provincial government of Pampanga.

Part of the protocols approved is the antigen testing of all the teams in the morning of each play date, which would mean five antigen tests per week since the PBA is shifting to five play dates — Wednesdays, Thursdays, Fridays, Saturdays and Sundays — once it returns to action.

Mondays are for RT-PCR tests, with the results expected to come out the next day.

Player and team movements will be limited to hotel-game venue-hotel.

The PBA Philippine Cup opened on July 16 with games held at the Ynares Sports Arena in Pasig City under a closed-circuit setup.

Action was stopped after matches on Aug. 1 just as Metro Manila was placed under ECQ because of rising coronavirus disease 2019 (COVID-19) cases, particularly the Delta variant.

The league spent the next weeks looking for areas which could hold its games, eventually finding a willing host in Pampanga, which is under a less strict setup of Modified General Community Quarantine.

Two more Filipino Paralympians get their Tokyo campaigns going

FILIPINO para-swimmer Ernie Gawilan competes in the men’s 200m individual medley SM6 event at the Tokyo Paralympic Games on Friday. — ERNIE GAWILAN FB PAGE

TWO more Filipino Paralympians get their respective campaigns going at the Paralympic Games in Tokyo on Friday.

Wheelchair racer Jerrold Mangliwan and para-swimmer Ernie Gawilan will be on tap in scheduled events of the sporting meet for the differently-abled.

Mr. Mangliwan will see action in the men’s 400m T52 event while Mr. Gawilan competes in the men’s 200m individual medley SM6.

The Tokyo Games will be the second Paralympics for Mr. Mangliwan, 41, who has paraplegia which he acquired from polio, and knows how tough the competition is.

But he remains undeterred, believing that they have trained well enough, and confident of his chances.

“Quitters don’t win. So we will not quit,” said Mr. Mangliwan in Filipino. “We have seen the records of my opponents and me and my coach feel I have a chance against them.”

He went on to say that the strategy for them is to take it a round at a time and do their best.

“My goal is to make it to the finals and take it from there.”

Mr. Gawilan, 30, also a veteran Paralympian, meanwhile, is sure of what he wants to achieve in Tokyo.

“We’re going there not just to play around, but to compete and do well,” said Mr. Gawilan, who is lacking both legs and has an underdeveloped left limb.

The Davao native is a decorated para-swimmer, having won medals, including gold, in the Asian Para Games and ASEAN Para Games.

He takes pride in being an inspiration to many differently abled individuals, and something he looks to continue doing at the Tokyo Games.

“Sports has helped me become the person that I am now. It was not easy, but if you have determination and you work hard you can achieve whatever you want in life,” he said in a recent media forum.

Meanwhile, para-swimmer Gary Bejino failed to advance to the finals of the men’s 200m IM SM6 event on Thursday at the Tokyo Aquatics Centre after finishing last in a field of 17, which was divided in three heats. He clocked in at 3:17.19.

He gets backs into action in the men’s 50m butterfly S6 and 400m freestyle S6 on Sept. 2 and men’s 100m backstroke S6 on Sept. 3. — Michael Angelo S. Murillo