Prosecutors, auditors to be deployed in corruption-prone agencies

July 27, 2021 | 8:41 pm

PROSECUTORS and auditors will soon be designated as resident ombudsmen in government agencies prone to corruption, the Department of Justice (DoJ) said.

Justice Secretary Menardo I. Guevarra told reporters in a group message on Tuesday that they are expecting to sign next week the formal agreement with the Office of the Ombudsman and the Commission on Audit (CoA) for the deployment.

The DoJ-led Task Force Against Corruption “will exert greater efforts to help the President in his anti-corruption drive in the remaining months of his administration,” Mr. Guevarra said.

“With the cooperation and support of the (Ombudsman), we shall soon deploy DoJ prosecutors and CoA auditors as resident ombudsmen in various graft-prone agencies of the government,” he said.

Mr. Guevarra also said he agrees with President Rodrigo R. Duterte’s statement during his last State of the Nation Address on Monday that corruption is nearly impossible to eradicate.

“There is not a single country in the world where corruption in one form or another does not exist,” Mr. Guevarra said, “the challenge is to create a framework where corruption will be difficult to thrive, such as adopting electronic transactions, reducing red tape, streamlining legal processes, and imposing stiffer penalties.”

As of June 30, the TFAC reported that local governments and the Department of Public Works and Highways were the subject of most corruption complaints they received in the first half of the year.

Other agencies with complaints include the Land Registration Authority, Department of Environment and Natural Resources, Bureau of Customs, and various government-owned and controlled corporations. — Bianca Angelica D. Añago

Justice chief says no new law needed, just more budget for legal assistance to police

July 27, 2021 | 8:41 pm

menardo-guevarra-palace-briefing_2018-04-09_16-32-24 — JUSTICE SECRETARY MENARDO I. GUEVARRA — *PCOO.GOV.PH*

JUSTICE SECRETARY Menardo I. Guevarra said the Public Attorney’s Office (PAO) has already been ordered to provide legal assistance to uniformed personnel who are facing charges in relation to the performance of their duties, and what is needed is a bigger budget for this rather than passing a new law.

“The DoJ (Department of Justice) has a standing directive to the PAO to extend legal assistance to police officers (up to the level of SPO4) and other uniformed personnel who get sued in the course of performing their official duties,” Mr. Guevarra told reporters in a group message on Tuesday.

He also said the national police and the military have special funds for such cases, hence “maybe an increased budgetary allocation for this purpose will be enough, assuming existing funds are insufficient.”

In his last State of the Nation Address on Monday, President Rodrigo R. Duterte said there is a need to pass a law that will provide free legal assistance to military and police officers as well as other enlisted personnel “to help them from charges arising incidents related to the performance of official duty.”

Mr. Guevarra also clarified that the provision of free legal assistance “is not the same as legal protection.”

The provision of free legal assistance for uniformed personnel is just to provide them with the means to “defend themselves in court for acts done in relation to their official duties, such as fighting terrorists and criminals,” he said.

He added that military and police who are charged with cases are presumed innocent until proven guilty, and “like every one of us, they are also entitled to due process of law.” — Bianca Angelica D. Añago

Understanding the four industrial revolutions

July 27, 2021 | 7:50 pm

Part 2

From what we have written so far, it is clear that the first Industrial Revolution (IR 1.0) would not have occurred were it not preceded by long periods of a gradual increase in the productivity of the agricultural sector.

In the case of England, this “green revolution” was made possible through the enclosure movement, the draining of swamps, and the discovery of new plant varieties, especially of legumes that could be planted during the winter season such as peanuts, clover, alfalfa, and other varieties that provided additional food supplies for humans and animals during the winter. In addition, some of these new plant varieties were nitrogen-fixing and thus fertilized the soil, making it unnecessary to leave the land fallow for long periods of time. England’s experience was replicated by other large countries in Europe and elsewhere which had an important agrarian population. An industrial revolution can happen only if the productivity of agriculture increases sufficiently to release workers for the industrial sector and to provide reasonably priced food for the urban population. In the case of the industrialization of Japan, a significant improvement in agricultural productivity was also a pre-requisite to the importation of borrowed technology on which Japan depended heavily in its efforts to industrialize in the latter part of the 19^th century and early 20^th centuries.

This explains why the Philippines never really had a real IR 1.0. None of the stages of the Industrial revolution (second, third or fourth) can really help us address the serious challenge of mass poverty unless we first have an agricultural revolution, i.e., a significant increase in the productivity of our agricultural sector that is needed for sustainable and inclusive growth. Seventy five percent of the poorest of the poor in our country are in the rural areas and they heavily depend on agriculture, fisheries, and forestry for their livelihood.

Not only did we fail in providing this pre-condition to the first industrial revolution, our feeble attempts to develop a post-agrarian manufacturing sector after gaining political independence in 1946 did not get much traction because, unlike our “tiger economy” neighbors, we lingered too long in the stage of import-substitution industrialization and failed to launch export-oriented manufacturing enterprises that could have significantly employed our excess labor and reduced mass poverty. Instead, in the name of Filipino First, we erected highly inefficient, capital-intensive industries by surrounding them with very high tariff walls, maintaining an unrealistic foreign exchange rate that we kept at P2 to $1 for a long period of time as our neighbors were devaluing their currencies to support their export-oriented industries, and gifted these “babied” industries with very cheap loans by keeping real interest rates at unrealistically low levels. This explains why manufacturing never contributed more than 12% or so to our labor force (as compared to 20% to 25% of most our East Asian neighbors) and not more than 20% or so to GDP (as compared to over 30% among our peers).

It should not be a surprise then that today we have a predominantly service-oriented economy, with services contributing some 60% to our nation’s Gross National Product (GNP). Manufacturing contributes only 23% while the whole of industry (which also includes mining, construction, and public utilities) contributes 34%, with agriculture accounting for a measly 10%.

No need to cry over spilt milk, though. What is done is done. We can still strive for a real IR 1.0 if we work hard in the next decade or so to significantly improve the productivity of our farm sector and its allied sectors in agribusiness (post-harvest facilities, agricultural inputs, cold storage, logistics, food processing or manufacturing and food retailing). Agribusiness can do much to address the mass poverty that is the greatest scandal in our economy. At the same time, by equipping these more than 20 million people who are poor today with higher incomes, we can finally succeed in fostering the growth of the industries typical of the IR 1.0 (food, clothing, shelter, and other basic necessities) on the basis of a large domestic consumer market of close to a 150 million people in the next 20 years. We need no longer aspire to be as export-oriented as our neighbors (especially the likes of Singapore, Taiwan and Hong Kong) because most of our enterprises can be sufficiently sustainable on the basis of their sales to the large domestic market (as our largest manufacturing enterprises are already doing now).

Completing our IR 1.0 can be strongly complemented by our giving the highest priority to the sectors that comprised the IR 2.0, which is also known as the Technological Revolution. This was the period between 1870 and 1914 during which there were massive installations of extensive railroad and telegraph networks, which allowed for more rapid transfer of people and ideas. While IR 1.0 was driven by limited use of steam engines, interchangeable parts, and mass production, and was largely water-powered, IR 2.0 was characterized by the build-out of railroads, large-scale iron and steel production, widespread use of machinery in manufacturing, greatly increased use of steam power, greater use of the telegraph and of petroleum, and the beginning of electrification. This period was most especially characterized by the discovery of electricity. Increasing electrification made it possible for factories to develop the modern production line. This period saw great economic growth that resulted from very high increases in productivity in many sectors. We can actually compare this period with what is happening now in the Philippines as we focus on the Build, Build, Build programs of both the government and private sectors.

As we try to complete the unfinished IR 2.0 in the Philippines, there must be a focus on extending the transport, telecommunication, and electrification revolution to the rural areas where the majority of the poorest Filipinos live and work. The Government budget for Build, Build, Build must continue to be concentrated in the countryside, especially in the building of farm-to-market roads, irrigation systems, post-harvest facilities, and the other requirements of the small farmers for increased productivity. Improvements of urban infrastructure, especially in Metro Manila and Metro Cebu, should, as much as possible, be addressed through the Public-Private Partnership (PPP) mode, using the capital and management expertise of the private sector. We should continue to give incentives to corporations like San Miguel, Megawide, DMCI Holdings, Metro Pacific, and the ICTS (Razon) group of companies to invest heavily in airports, skyways, power plants, railways, and seaports.

Rural electrification should be given another big push, now with renewable sources of energy such as solar, wind, hydro, and biomass. It is providential that these renewable sources of energy, in addition to addressing the problem of climate change, can be financially viable at smaller scales of operations that can bring electricity to remote areas that are not connected to the grid. This is especially crucial in the numerous islands that are very attractive for both domestic and foreign tourism, such as the existing solar plant close to the famous underground river of Palawan.

As regards railroads, I still have hopes that, despite our political differences with China, this major economic power in Asia can still help us build railways that will make travel within the whole island of Mindanao faster and more efficient. It is Mindanao that very badly needs the Second Industrial Revolution.

To be continued.

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is Professor Emeritus at the University of Asia and the Pacific, and a Visiting Professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Duterte’s SONA Finale

July 27, 2021 | 7:50 pm

President Rodrigo Duterte has delivered his last State of the Nation Address (SONA). Lasting for almost three hours, the national chief executive presented his administration’s accomplishments and his calibrated prognosis of the current state of the country, its economy, and its people.

He discussed the administration’s performance for the past five years that expectedly legitimizes its actions and policies. The speech interspersed issues and achievements covering: free tertiary education, the universal healthcare, the war against illegal drugs and criminality, the Marawi victory, the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao, infrastructure achievements and digital connectivity, ease of doing business, freedom of information, anti-corruption, rice tariffication, the welfare of the OFWs, the Balangiga Bells, and maritime commons in the West Philippine Sea.

The president also highlighted populist acts such as tax reforms, the importance of MSMEs, the Malasakit Centers, the social amelioration program, Bayanihan I and II, and the health system. He also underlined the importance of vaccination as the most effective solution to the pandemic crisis.

Also noteworthy is the presidential recognition of the crucial role of the private sector and LGUs in the COVID-19 response, tracing, treatment, and vaccination roll-out.

Before ending his address, the President expressed the legislative priorities for his final year, which included the creation of the following: the unified system of separation, retirement, and pension for the military and uniformed personnel; a national economic recovery task force; an OFW center; a center for disease prevention and virology; and a center for disaster resilience. Further, he also asked Congress to pass the E-Governance Act, a law to provide free legal assistance to enlisted personnel, and the amendments to the Foreign Service Act, Public Service Act, and amendments to the Retail Trade Liberalization Act of 2000.

Another key aspect in the address pertains to foreign policy. While maintaining his stand for an “independent” policy, the President emphasized the need to “work with all nations” and “seek partnerships that work.” He also expressed gratitude to the ASEAN for supporting his government and stated that “the Philippines will continue to be a responsible member of the international community.”

Though skeptical about the worthiness of the Arbitral Ruling of 2016 about the dispute in the West Philippine Sea (WPS), he stated that “the Arbitral Ruling is now part of international law.” But the source of his contention or dilemma is rooted on the implementation or realization of this ruling.

This last SONA of President Duterte can simply be analyzed using a two-dimensional lens — what was discussed and what was not discussed. This probing technique directly exposes the gap or shortcomings and even the failures in terms of government performance for the entirety of its term.

Nonetheless, the SONA was quite disconnected from the economic hardships that the Filipinos are experiencing on the ground.

Based on the recent face-to-face interviews, Pulse Asia’s June 2021 Ulat ng Bayan national survey revealed that the 2021 SONA acquired an awareness rating of 69% only, comparably lower than the 2019 survey of 75%, and even much lower than 2018, which was 83%.

As for the people’s expectation, the “Most liked issue to be discussed by President Duterte in his coming SONA” according to the respondents pertain primarily to three gut issues, i.e., “creation of jobs or livelihood” (38%), “improving the national economy” (35%), and “controlling inflation” (33%). This is followed by: “plans to expedite COVID 19 vaccination” (31%), “increasing pay of workers” (26%), and “improving educational system” (26%).

Across economic classes, “the creation of jobs or livelihoods” is the astounding priority, registering at 49% for ABC, 37% for D, and 35% for those belonging to class E.

By and large, the survey implies the breadth and depth of issues that the administration should be responsive to and accountable for — recovery of jobs and livelihoods and to alleviate the economic hardships that the whole nation has to suffer and endure.

To a certain extent, the President delved into the pressing issues and concerns of the population. However, his long ramblings about the drug war, the communist insurgency, and the two water concessionaires could have been more constructive if he gave the people more clarity on his administration’s direction towards economic rebound. He should have allotted more time to comprehensively discuss strategic policies for post-pandemic recovery.

Glazed with emotional expression, his immutable narratives on the drug problem and the West Philippine Sea issue persisted. The human rights controversy over his war on illegal drugs was insistently rationalized by his illustration of the murdered civilians and law enforcement officers by the hands of drug-driven criminals. His narrative on the West Philippine Sea started positively with a few lines asserting the arbitral decision and the rule of international law but was negated by his defeatist narrative and one-dimensional view of the futility of going to war with China. He deliberately ignored the emerging inter-continental alliance to stand up against Beijing’s destabilizing aggression and settled on maintaining the status quo of defeatist appeasement.

In its entirety, the SONA simply revolved around the President’s remaining political agenda. While we should all agree with his last call, that is, “Together, let us rise as a nation,” the cornerstone of rising up from this pandemic should have been laid down throughout his address. Rising up as a nation entails inclusive and responsive governance anchored on an all-sector participation led by the inspiring and unifying spirit of an enlightened leadership. Something we were hoping for.

Victor Andres “Dindo” C. Manhit is the President of the Stratbase ADR Institute.

Body-worn cameras in the execution of warrants

July 27, 2021 | 7:49 pm

Almost four years after the death of Kian delos Santos, a 17-year-old student who allegedly fought back yet was shown in a CCTV footage to have helplessly died in the hands of our own law enforcement officers, the growing clamor for transparency and accountability in the operations of the Philippine National Police (PNP) persists.

As the government’s response, on July 9, the Supreme Court released its June 29 Resolution, which approved A.M. No. 21-06-08-SC, or the Rules on the Use of Body-Worn Cameras in the Execution of Warrants.

Upon its effectivity, law enforcement officers are expected to use at least two devices (one body-worn camera and one alternative recording device) to capture relevant incidents during the execution of both arrest and search warrants. Notably, officers are also required to comply with the Rules even in effecting warrantless arrests, insofar as it is practicable.

In the event that body-worn cameras are unavailable, the police officers implementing the warrant must, prior to the execution, file an ex parte motion and secure the court’s approval for the use of alternative recording devices.

The cameras must be activated upon arrival at the place of arrest and must not be turned off until the person has been delivered to the nearest police station or jail. This notwithstanding, the Rules provide for the following instances as to when the devices may be deactivated during any arrest or search:

1. Communications between law enforcement personnel unrelated to the conduct of the search/arrest;

2. Encounters with undercover officers or confidential informants;

3. When officers are on break or engaged in non-work-related activities;

4. Inside places where there is a reasonable expectation of privacy and there is no legal reason to be present (e.g., restrooms and locker rooms), unless the premises are covered by the search warrant;

5. Strip or body cavity searches;

6. Privileged communications; and,

7. Such other circumstances provided by the court issuing the warrant which is part of constitutional privilege and where the dignity of an individual may outweigh the public necessity for recording.

In addition, redaction of information and images is also permitted in sensitive cases such as those involving minors, sexual offenses, and domestic violence.

Another salient provision is Rule 3, Section 2 of the Rules, which broadened the authority of Executive Judges of Regional Trial Courts. Now they can act on applications of search warrants filed by the PNP, the National Bureau of Investigation, the Anti-Crime Task Force, the Philippine Drug Enforcement Agency, and the Bureau of Customs which are to be implemented in their respective judicial regions involving cases of: (i) heinous crimes; (ii) illegal gambling; (iii) illegal possession of firearms and ammunitions; and (iv) violations of the Comprehensive Dangerous Drugs Act of 2002, the Anti-Money Laundering Act of 2001, the Customs Modernization and Tariff Act, and other relevant laws that may be enacted by Congress and included by the Supreme Court. This expressly repealed Chapter V, Section 12 of A.M. No. 03-8-02-SC, as amended, which lodged such authority only in executive judges of the RTCs in Manila and Quezon City.

The Rules also allow media representatives to record warrantless arrests effected for drug operations. Although this is already being done, what is new is that the data recorded by the media during the operations must be turned over and downloaded by the data custodian within 24 hours from the time of recording. A high standard is also required in establishing the chain of custody of the recordings.

As to its effect on the subject case, an officer’s failure to use a body-worn camera varies depending on whether the operation conducted is an arrest or search. If the warrant to be executed is an arrest warrant, said failure does not render the arrest unlawful nor render the evidence obtained inadmissible. The circumstances of the arrest may be proved by testimonies of the arresting officers, the person arrested, and other witnesses to the arrest.

On the other hand, if a search was made and the officers failed to use the required devices without reasonable grounds, the pieces of evidence obtained are inadmissible for the prosecution of the offense for which the search warrant was applied. As such, the person searched may accordingly file a motion to suppress evidence. This remedy is likewise available for persons searched incidental to an arrest by virtue of a warrant, but where the arrest was made without use of the required body-worn cameras or alternative recording devices.

Regardless of whether an arrest or search was made, non-compliance without any justifiable ground, or deliberate interference with or manipulation of the camera’s ability to accurately capture the operation, may result in contempt of court without prejudice to any administrative, civil, or criminal action that may be filed against the erring officer.

The recordings remain private and are only to be treated as public record subject to disclosure when the act recorded resulted in an assault or death of a law enforcement officer. As such, consent on the use of the recordings in court proceedings must be secured in the presence of the one’s counsel. Under the Rules, a person’s silence shall be taken to mean that he/she consented to the use of the recording.

It may be reasonably argued that the Rules still has various gaps which may be circumvented. For instance, the Rules failed to elaborate on the “reasonable grounds” for non-compliance. Nevertheless, this development should be seen as taking a step forward to enforcing and strengthening legal limits on the use of arbitrary power. If the promulgation of the Rules will prevent another death and will save another Kian delos Santos, then this progress is certainly a positive and a welcome development.

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

How Xi’s Four Pillars of Regulation will reshape China’s Big Tech

July 27, 2021 | 7:48 pm

Xi_Jinping — Chinese President Xi Jinping. — WIKIPEDIA.ORG

FROM THE US to the European Union, governments are clearly uneasy with the pervasive power of Big Tech: The influence of their social media platforms on elections, the security of the vast amount of consumer data they store, and the exploitation of gig economy workers who don’t enjoy health insurance or receive overtime pay. In the US, Congressional hearings have been conducted and anti-trust lawsuits filed, but nothing substantial has come about. Judging by the Nasdaq 100 Stock Index, Big Tech in the West is still thriving.

China’s political leadership perceives the same set of problems as well. But China is willing to go a lot further to rein in the clout of its tech giants.

Look at what’s just happened to after-school tutoring providers as a good warning. In a sweeping overhaul, China is banning companies that teach the K-12 school curriculum from making any profit. On Friday, New Oriental Education & Technology Group, Inc., a blue-chip, tumbled down 54% to close at $2.93 per share, or $5-billion market cap. The company’s net cash, adjusted for deferred revenue and refund liabilities, pegs this stock’s worth to $2.30, according to a Goldman Sachs Group, Inc. estimate. Essentially, investors appear to be betting that New Oriental will be liquidated. Similarly, TAL Education Group closed down to $6 per share, lower than the bank’s estimated net cash value of $6.70.

While what happened to education stocks shocked the outside world, it was not exactly surprising inside China. Since last November, Beijing has been reining in Big Tech’s power, and foreign investors are just starting to come to grips with the seriousness of the bureaucracy.

Broadly, Beijing is concerned about four pillars of stability: banking, anti-trust regulation, data security, and social equality. All of Beijing’s major interventions reflect these concerns: the last-minute scuttling of fintech giant Ant Group Co.’s $34-billion initial public offering (IPO) last November because of its potential disruption of banking; Alibaba Group Holding’s record $2.8-billion fine for monopolistic business in April; and the cybersecurity watchdog’s investigation into DiDi Global, Inc. immediately after its $4.4-billion IPO this month.

Social equality is at the heart of the ban of for-profit after-school tutors. Confronted with blanket advertising and fear mongering, anxious middle-class parents feel compelled to send their kids to mind-numbing cram schools, in some cases even before children get into kindergarten. No one wants her kids to be left behind just because her neighbors have invested more money into education.

Gig economy workers’ rights are also at the heart of the government’s push for social equality. On Monday, the government posted notices that online food platforms must respect the rights of delivery staff and ensure that those workers earn at least the local minimum income. Food delivery giant Meituan dived 14%, its worst on record, wiping out about $30-billion market cap. DiDi, which depends on gig drivers, is also likely to take a hit.

President Xi Jinping doesn’t care if stock investors, many of them foreigners, lose billions of dollars. He knows that China’s middle class will have his back. They like these regulatory crackdowns. The Ministry of Education’s for-profit tutoring ban is a crowd-pleaser. In the Chinese society, a family’s wealth alone already gives its offspring a natural edge, but the middle class does not enjoy seeing that edge amplified through an army of tutors. Meanwhile, big cities’ consumers are sympathetic to gig economy workers, often migrants from rural areas, calling them endearingly “fast delivery little brothers.” And by regulating Ant like a bank, consumers are less likely to be sold risky financial products too.

Going forward, investors need to realize the four pillars are part of President Xi Jinping’s vision to ensure another 100 years for the ruling Communist Party, which just celebrated its centenary. In the past, Big Tech companies were evaluated in terms of sales, their total addressable market, or even monthly active users. Now investors need to factor in Big Government.

For instance, DiDi doesn’t do much more than host a taxi-hailing app. That’s a service a smart city’s government can also provide. Or why should Ant Group be allowed to cross-sell its investments, insurance, and consumer loan products, while banks are being asked to spin off their wealth management arms?

In the future, China’s big tech will be less exciting and unable to exploit consumer data to make more money. They might — gasp — just be turned into state-owned Big Banks, or Big Utilities. When that happens, China’s technology companies might have to be valued in terms of book or even net cash. Liquidation risk is real in Xi’s China. He wants a more equal, livable society, and any obstacles will be swept away.

BLOOMBERG OPINION

Global growth to stay strong but virus the top risk, say economists

July 27, 2021 | 7:32 pm

BENGALURU — Global economic growth prospects are holding strong for this year and next, despite a significant majority of economists in Reuters polls warning new variants of the coronavirus pose the biggest risk to that outlook.

A global survey of nearly 500 economists taken this month also concluded recent rising inflation in key economies around the world would be transitory.

The global economy was now forecast to expand a sizzling 6.0% this year, which would be its fastest in nearly half a century, followed by a still-robust 4.5% in 2022. Both were marginal increases from the April poll.

Slightly more than half the 48 economies polled on each quarter were upgraded for both years.

But a surge in the latest variant of the virus, which has kept the delayed Tokyo 2020 Olympics an event without spectators, is a reminder that vaccination may have improved but the pandemic has not gone away.

“In recent weeks, financial markets have caught up to the idea that the COVID crisis is not entirely over. The Delta variant adds to the challenge, raising the number of cases and the threshold for herd immunity,” said Ethan Harris, global economist at Bank of America Securities.

“Overall, we see the Delta surge as a moderate headwind to global growth, but as new information comes in, we can be persuaded otherwise.”

Financial markets are on edge ahead of the US Federal Reserve’s meeting this week, where policymakers are grappling with increased coronavirus infections and a disrupted global supply chain that could induce more price pressures.

As for risks to the global economy, nearly 80% of economists, or 160 of 202 responding to an extra question, said the biggest was a spread of new coronavirus variants.

Over 70% of economists, or 152 of 209, said the current uptrend in global inflation was transitory.

But respondents upgraded their 2021 inflation forecasts for 35 of 48 economies polled on and 31 of them for next year. At the same time, there were 29 economies with growth upgrades for this year and 26 for next, suggesting some price stickiness.

“What makes market pricing in the US more instructive is that they clearly rate the (Fed’s) policy willingness to look through higher inflation as being credible. This is at a time when US inflation has surprised to the upside again, and is leading a spate of upside surprises across DMs and some EMs,” said Christian Keller, head of economics research at Barclays.

While economists expected the Fed to end its bond-buying program by end-2022, with a few more analysts now predicting a rate hike as early as next year, the Bank of Japan and the Bank of England were predicted to keep policy unchanged through to the end of next year.

The European Central Bank, meanwhile, will start tapering its pandemic-related asset purchases sometime after its September meeting and stop buying them by the end of March.

While developed economies have handled the pandemic with massive vaccination drives, emerging ones are still dealing with shortages of doses.

“Vaccination remains the key,” noted Vishwanath Tirupattur, strategist at Morgan Stanley. “Risks remain elevated in countries with low vaccine penetration, especially in South and South East Asia, Africa and other EM economies.”

In China, the world’s second biggest economy, economic growth likely slowed sharply to 8.1% in the second quarter from a record 18.3% in January-March as new COVID-19 outbreaks have weighed on consumer spending.

Economists expected Australia’s resource-heavy economy to take a hit this quarter from renewed lockdown restrictions and India’s economic rebound was also predicted to lose momentum.

Brazil’s economy was forecast to extend its “jobless recovery” after this year’s inflation surge, while prospects for growth in Mexico looked brighter.

How labor markets recover or adapt effectively once government support schemes lapse will also be key in coming months to both the growth and inflation outlook.

Jobless rates were broadly expected to remain above pre-COVID-19 levels in coming years, including in the United States where the pace of hiring has been very strong in recent months.

According to Michael Every, global strategist at Rabobank, “a weak, atomized global labor market acts as a huge structural headwind to sustained wage inflation, and thus to sustained inflation in general.” — Reuters

South, North Korea restore hotlines as leaders seek to rebuild ties

July 27, 2021 | 7:31 pm

SEOUL — South and North Korea have restored hotlines that Pyongyang severed a year ago when ties deteriorated sharply, with renewed efforts by the two countries’ leaders to rebuild relations, the South’s presidential Blue House said on Tuesday.

South Korean President Moon Jae-in and North Korean leader Kim Jong Un have exchanged multiple letters since April and agreed to reconnect the hotlines, said Mr. Moon’s press secretary, Park Soo-hyun. North Korea’s state media outlet, KCNA, also said all inter-Korean communication channels resumed operation at 10 a.m. Tuesday (0100 GMT) in line with an agreement between Mr. Moon and Mr. Kim.

“The two leaders have explored ways to recover relations by exchanging letters on several occasions, and agreed to restore severed hotlines as a first step for that process,” Mr. Park said in a statement. “They have also agreed to regain trust as soon as possible and foster progress on relations again.”

KCNA touted the reopening of the hotlines as “a big stride in recovering the mutual trust and promoting reconciliation.”

North Korea cut the hotlines in June 2020 as cross-border ties soured after a failed second summit in Feb. 2019 between Kim and former US President Donald Trump, which Mr. Moon had offered to mediate.

The move was followed by the destruction of a joint liaison office inside the North that had been set up in 2018 to foster better ties, plunging relations between the rivals to a low point.

Seoul’s defense ministry confirmed that a military hotline was tested on Tuesday and that twice-daily regular communication would resume.

The Unification Ministry, which handles inter-Korean affairs, also said telephone lines installed at the border truce village of Panmunjom had also been restored, welcoming it and expressing hopes for a restart of cooperation.

Mr. Moon has called for a revival of the hotline and talks, pinning high hopes on US President Joseph R. Biden to restart negotiations aimed at dismantling North Korea’s nuclear and missile programmes.

But it was unclear whether the hotline reopening was a serious sign that Pyongyang would respond to overtures by Mr. Moon and the Biden administration, which called for a “reliable, predictable and constructive” way to kickstart denuclearization talks.

“The United States has been continuing to reach out to North Korea ever since President Biden took office. I think this shows willingness on Pyongyang’s part to respond,” said James Kim of the Asan Institute for Policy Studies in Seoul.

“But it is premature to read too much into these gestures,” Mr. Kim added. “We need to see some seriousness on Pyongyang’s part to move towards denuclearization for us to say that there is genuine progress.”

Yang Moo-jin, a professor at the University of North Korean Studies in Seoul, said exchanging information on COVID-19 and natural disasters may be a way to rebuild ties.

North Korea has not formally confirmed any COVID-19 outbreaks, but it closed its borders and took strict anti-virus measures, seeing the pandemic as a matter of national survival.

The announcement came as the two Koreas marked the 68th anniversary of the armistice that ended the 1950-53 Korean War. Kim paid tribute to fallen soldiers and sent gifts to surviving veterans, according to KCNA. — Reuters

Study shows antibodies from Sinovac’s COVID-19 shot fade after 6 months, booster helps

July 27, 2021 | 7:31 pm

BEIJING — Antibodies triggered by Sinovac Biotech’s COVID-19 vaccine decline below a key threshold from around six months after a second dose for most recipients, although a third shot could have a strong boosting effect, according to a lab study.

Chinese researchers reported the findings from a study of blood samples from healthy adults aged between 18-59 in a paper published on Sunday, which has not been peer reviewed.

For participants receiving two doses, two or four weeks apart, only 16.9% and 35.2% respectively still had a level of neutralizing antibodies above the threshold six months after the second dose, the paper said.

Those readings were based on data from two cohorts involving more than 50 participants each, while the study gave third doses to a total of 540 participants.

When participants in some cohorts were given a third dose, about six months after the second, neutralizing antibody levels after a further 28 days had increased around 3-5 fold from the levels seen four weeks after the second dose, the study showed.

The study was conducted by researchers at disease control authorities in Jiangsu province, Sinovac, and other Chinese institutions.

Researchers cautioned the study did not test the antibodies’ effect against more transmissible variants, and that further research was needed to assess antibody duration after a third shot. — Reuters

Tokyo asks for more hospital beds as infections rise

July 27, 2021 | 7:30 pm

Tokyo Olympics — A woman walks past a large-scale reproduction of Tokyo 2020 Olympic Games medal at Nihonbashi Mitsui Tower in Tokyo, Japan, July 14. — REUTERS/KIM KYUNG-HOON

TOKYO — Olympic host city Tokyo has asked hospitals to prepare more beds for COVID-19 patients as the Japanese capital grapples with a rise in infections, broadcaster TBS said on Tuesday.

Daily infections in the city, which has seen an influx of overseas visitors for the Tokyo Games, doubled to 1,429 on Monday from a week earlier.

That was the highest number for a Monday since the pandemic began and followed a similar record set on Sunday.

Infection numbers tend to dip following weekends and holidays when testing capacity shrinks so experts and policymakers are closely watching Tuesday’s numbers, due to be released in the afternoon, to get a clearer picture of the situation.

With hospitals admitting growing numbers of patients, Tokyo aims to raise the number of beds to 6,406 by early next month from the current capacity of 5,967, TBS said.

Hospitals should look at pushing back planned surgery and scaling down other treatments, the broadcaster said, citing a notice to medical institutions from city authorities.

Health experts had warned that seasonal factors, increased mobility, and the spread of variants would lead to a rebound in coronavirus disease 2019 (COVID-19) cases this summer.

Kyoto University professor Yuki Furuse earlier projected that new daily cases in Tokyo could rise to 2,000 in August, potentially maxing out hospital beds in Tokyo and the area.

While vaccinations are boosting protection for the oldest citizens most likely to need emergency care, just 36% of the population has received at least one shot, a Reuters vaccination tracker shows.

The initially sluggish inoculation push finally gained steam last month, but has recently ebbed again among logistical snags.

Many Japanese had wanted the Games postponed again or canceled, fearing the influx of athletes and officials could add to the surge.

The Games are being held under tight quarantine rules to prevent the spread of the virus, but 155 cases have emerged involving athletes and others.

A strict “playbook” setting out rules to avoid contagion mandates frequent testing for the virus, restricted movements and wearing masks by athletes and others in most situations. — Reuters

Long wait over

July 27, 2021 | 7:22 pm

Weightlifter Hidilyn Diaz makes history as first Filipino Olympic gold medalist

THE Philippines is no longer gold medal-less in the Olympic Games, thanks to weightlifter Hidilyn Diaz.

Four-time Olympian Diaz, 30, finally secured that elusive gold for the country by topping the women’s 55kg category at the Olympics on Monday night at the Tokyo International Forum.

It ended nearly a century of searching for gold in the Olympics for the Philippines while completing for Ms. Diaz a mission to improve on her silver medal performance in the Rio Games in 2016.

Ms. Diaz scored a total of 224 kilograms to edge China’s Liao Qiuyun, who had a total of 223.

She lifted 97 kgs in the snatch and completed her gold conquest by lifting 127 kgs — an Olympic record — in the clean and jerk in her third and final attempt.

Kazakhstan’s Zulfiya Chinshanlo won the bronze with a total of 213.

The Filipino bet went back and forth with Ms. Liao in the clean and jerk on her way to the gold.

The Chinese, who also lifted 97 kgs in the snatch, put the pressure on Ms. Diaz on her final attempt after seizing the lead by lifting what was then an Olympic record of 126 kgs to take her total to 223.

That left Zamboanga City native Diaz with no choice but to go for 127 kgs in her last attempt in the clean and jerk to go up one over Ms. Liao. Had she ended up tied with the Chinese, the latter would have won as she is three kilos lighter than Ms. Diaz.

With all confidence, Ms. Diaz completed the task of lifting the needed weight to set a new Olympic record and, more importantly, win the gold medal.

Making the feat more impressive was that in a virtual press conference for Philippine media on Tuesday from Tokyo, Ms. Diaz said while she had attempted to lift 127 in training, it was something that continuously frustrated her, unable to complete it.

But when the need came up for her to deliver, she rose to the challenge and was very proud of her effort.

NOT EASY
The road to Tokyo was also not easy, Ms. Diaz shared, made tougher by the pandemic.

“There were a lot of challenges. I had to deal with self-doubt, and there were people who were doubting me if I could win gold. But I’m thankful for the people behind me, especially the ‘HD Team,’ who stuck with me and really prepared me for this Olympics,” said Ms. Diaz, who was joined in the press conferences by her coaches Kaiwen Gao and Julius Naranjo, sports nutritionist Jeaneth Aro and sports psychologist Dr. Karen Trinidad.

“During the pandemic, we really had to work harder with all the restrictions,” added Ms. Diaz, whose team trained in Malaysia for the past year.

Also present during the press conference were Philippine Chef de Mission Mariano V. Araneta and Philippine Olympic Committee President Abraham N. Tolentino.

For winning the gold, Ms. Diaz is set for a huge windfall.

At the onset, she is set to receive P33 million in cash incentives, a house and lot in Tagaytay care of Mr. Tolentino, and a condo unit. The cash is broken down as P10 million each from the government, under Republic Act 10699, or the “National Athletes and Coaches Benefits and Incentives Act; Manny V. Pangilinan’s MVP Sports Foundation, and San Miguel’s Ramon S. Ang. Businessman and lawmaker Mikee Romero pledged P3 million.

The condo unit, located at Eastwood City, will be given by Megaworld and is worth P14 million.

Mr. Tolentino said incentives could add up as he feels more groups or individuals are inclined to show their appreciation for what Ms. Diaz has done and the rest of the Philippine team.

In winning the gold, Ms. Diaz expressed hope that what she has achieved would provide inspiration for the Filipinos to continue moving forward despite the challenges present at the moment.

“It was not easy winning gold just like what everybody is facing now with the pandemic. But we’re survivors and we find ways. And we just have to keep fighting until we reach our goal.”

Ms. Diaz will be back in the country on Wednesday.

RESOLUTIONS FILED
Meanwhile, following the victory of Ms. Diaz, separate resolutions were filed both at the Senate and House of Representatives, honoring her and other outstanding Filipinos.

Senators Juan Miguel Zubiri, Juan Edgardo Angara and Francis N. Tolentino authored a resolution which seeks to establish a Philippine Senate Medal of Honor which recognizes the extraordinary efforts and contributions of outstanding individuals or institutions in various fields of expertise such as sports, military and defense, law enforcement, science and technology, education, humanitarian, and public service.

They hope that by doing so, those to be recognized will serve as inspiration for Filipinos.

At the House, Zamboanga Rep. Mannix Dalipe filed a resolution to commend and congratulate Ms. Diaz for her gold medal win. Aside from this, Rizal Rep. Fidel Nograle also called for Congress to give a Congressional Medal of Achievement to the country’s first-ever Olympic gold medal winner. — Michael Angelo S. Murillo

Petecio faces Colombian for spot in semis; Watanabe falls

July 27, 2021 | 7:22 pm

FILIPINO boxer Nesthy Petecio takes on Colombian Yeni Marcela Arias Castañeda on Wednesday for a spot in the semifinals in the women’s featherweight division that would assure themselves of a medal in the Tokyo Olympic Games.

Ms. Petecio of Davao del Sur earned a ticket to the quarterfinals after upsetting top seed Lin Yu-Ting of Chinese Taipei by split decision, 3-2, in their Round of 16 encounter on Monday at the Kokugikan Arena in Tokyo.

The judges scored it, 28-29, 29-28, 28-29, 29-28, 29-28, for the Filipino.

Ms. Petecio hopes to have her winning streak continue against Ms. Castañeda, who was a bronze medal winner at the 2019 Pan American Games.

In case she advances to the semifinals, Ms. Petecio is already sure of a medal since losing semifinalists are given bronze medals.

Meanwhile, Filipino-Japanese judoka Kiyomi Watanabe saw her Olympic campaign come to an abrupt end in the opening round of her women’s -63kg match against Cristina Cabana Perez of Spain on Tuesday at the Nippon Budokan.

Ms. Watanabe, the country’s female flag-bearer in the Olympic opening ceremony, was knocked out by Ms. Perez just 38 seconds into the match by way of ippon.

The Philippine bet tried to take down her opponent, but instead saw Ms. Perez transitioned for a corner throw and pounced on Ms. Watanabe after.

Ms. Perez won by a score of 10-0.

“This was a very painful loss for Kiyomi and for us. Very painful indeed. We’re thankful for all the support and we’ll bounce back,” said Dave Carter, Philippine Judo Federation president, shared after Ms. Watanabe’s match.

Ms. Watanabe made her Olympic debut in Tokyo and qualified through the continental rankings.

Later on Tuesday, also set to compete were swimmers Luke Gebbie and Remedy Rule as well as weightlifter Elreen Ann Ando.

Mr. Gebbie was to see action in the 100m freestyle while Ms. Rule was to compete in the 200m butterfly at the Olympic Aquatic Centre.

Ms. Ando, meanwhile, competes in the women’s -64kg division and was to come on the heels of the golden conquest of veteran teammate Hidilyn Diaz on Monday. — Michael Angelo S. Murillo

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