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Lessons from Mr. SyCip

Washington SyCip, Founder of SGV & Co., would have been 100 on June 30 this year. Well into his ’90s, Mr. SyCip stayed vital and many were confident that he would reach his centenary effortlessly because he had remained active — both physically and mentally — throughout his prolific life. When he suddenly died on board an airplane on his way to scheduled meetings in New York City, there was a collective reaction of disbelief, even if he was already 96 years old at the time.

For us in SGV, Oct. 7, 2017 would be “the day the music died” because in so many ways, Mr. SyCip was our rock star. He had a great following, he could command thousands to listen to him, he would get thunderous applause after he spoke, and there would be kilometric lines of people hoping to get selfies with him. However, the analogy ends there because Mr. SyCip’s career was obviously not in music; he was a business icon who contributed immensely to professionalizing Philippine accountancy and to advancing national development.

Mr. SyCip is the only person I know who had met all the Philippine Presidents from Manuel L. Quezon to Rodrigo Duterte. He met President Quezon as a young boy when he accompanied his father on a certain occasion. He had been a witness to milestones in Philippine history for nine decades, which included his active service during the Second World War in India as a cryptographer. He returned in 1946 to Manila, a city in ruins, and immediately set up his accounting firm because he knew that reconstructing the economy would require sound financial services. He was only 25.

A FATHER FIGURE WITH VISION AND PURPOSE
For the next 50 years of his life, Mr. SyCip saw the phenomenal growth of SGV from a one-person office to a multinational entity called The SGV Group, which had member firms in several countries. He helped establish the leading accounting firms in Taiwan, Thailand and Indonesia, among others. In the 1980s, when he saw that IT would heavily influence the office of the future, he made sure that SGV would have the necessary resources by collaborating with a global professional services firm. His mind, it seemed, was at least 20 years ahead of the present time; he had this unique gift of envisioning the world and how to make it a much better place.

With Mr. SyCip’s passing, we were orphaned but not abandoned — because as a father figure, Mr. SyCip had made sure that even without him, SGV would be able to maintain its stature. From the very start, he had already articulated his purpose for SGV and that is for the firm to aid in national development. One of his most frequently quoted statement goes, “SGV can only prosper if the nation prospers.” He instilled a discipline that fostered integrity, excellence and quality work. In turn, these became values that evolved into a culture that also includes meritocracy, inclusiveness and stewardship. Mr. SyCip ingrained in each of us that the firm was not owned by a single person and, for SGV to thrive, its current leaders must take good care of it for generations yet to come.

Propitiously, a year before his demise, SGV had undergone an institutional exercise in revisiting and articulating its purpose in terms that can be better understood by a younger generation. When all had been said and done, we reverted naturally to Mr. SyCip’s vision of contributing positively to national development. The updated 21st century articulation of that vision led to SGV’s Purpose Statement: To nurture leaders and enable businesses for a better Philippines. This is how we continue to carry out Mr. SyCip’s legacy in everything that we do.

However, it is not always an easy task to live that purpose. As simple as it sounds, there are multifarious and complex behaviors, skills, and relationships that impinge upon our Purpose. In trying to live that Purpose, I draw on four life lessons that Mr. SyCip impressed upon us.

The first lesson is to WALK FAST.

In a personal encounter I had with him, he told me to STEP ON THE GAS! The statement connotes speed, which is something that Mr. SyCip emphasized — to work quickly and diligently but with precision and accuracy. Time was valuable to him and wasting even a second was unacceptable. You had to be punctual and he practiced what he preached. Most of the time he would be the very first person in the office and when he called partners in their offices at 8 a.m. (the official start of work hours), they had better be there to personally answer his phone calls.

In the office, he would chide staff members if they took their time entering and exiting the elevators. In a calm but forceful voice he would say, “You are delaying the progress of the nation!” For him, there was never enough time to meet with people and read his issues of The Economist and voluminous reports. He led a frenzied work schedule with his calendar filled up for at least a year and a half; he would even have trips scheduled three years in advance. For Mr. SyCip, time was gold.

The second lesson is to EMBRACE CHANGE.

Needless to say, in his 96 years he had experienced the rise and fall of governments, trends in fashion, the evolution of technology and others. The accounting profession has traditionally been a conservative one but upon his retirement, Mr. SyCip discovered new things that awed him — like denim jeans, for example. He was in his 80s when he was presented his first pair of jeans which he found comfortable and suitable for traveling. In time, he took to wearing them to the office in bright colors too. He likewise owned a pink iPod following the recommendation of a granddaughter and would listen to his playlists of classical and Broadway musicals.

He enjoyed speaking with young people to find out what kept them preoccupied. He went to bars that they frequented and attended the concerts of Madonna and Taylor Swift. Mr. SyCip once dressed up as Jedi Master Yoda for an SGV event but only after he received a mini lecture on Star Wars and what it meant to be one with the Force. He loved the fact that Yoda was over 800 years old and still fighting menacing characters! For Mr. SyCip, one had to accept change in order to thrive in an ever-changing world.

The third lesson is to LISTEN TO OTHERS.

By listening to others, Mr. SyCip didn’t just listen to clients, government officials, diplomats and other business leaders. He also listened to the plight of the poor and uneducated, he listened to the problems of farmers and fishermen who could barely send their children to school, and he listened to struggling women who had difficulty making ends meet. It was in listening to others that Mr. SyCip was able to acquire the knowledge he needed to give sound advice. Hearing from others provided him with the wisdom that people sought.

Mr. SyCip was known to be an excellent speaker and while his voice was soft, I have witnessed how an entire auditorium would be hushed in complete silence once he started. Perhaps he was simply returning the favor of listening when he wasn’t the one doing the talking. For Mr. SyCip, listening was essential to human connectedness and problem solving. It was also basic good manners.

The fourth lesson is to NEVER STOP LEARNING.

The training program in SGV is legendary and it was Mr. SyCip who early on determined the need for continuous learning for staff members to progress in their careers and personal lives. He encouraged potential partners to pursue graduate school and earn MBAs either in foreign universities or at the Asian Institute of Management, which he co-founded. He would test partners of their knowledge of current events and if he found it lacking, the partner would be gifted with a subscription to The Economist. His advocacies later focused on education, particularly in advancing basic public education. He believed that it would be education that would eventually eradicate poverty.

Mr. SyCip had an unquenchable thirst for new knowledge because that kept him in touch with current issues. He would also use the information in giving advice to others. When a staff member’s son contracted dengue fever, he asked questions on its cause, care and recovery to the last detail. Why? So that he would understand its severity and why the staff member had to take a leave to personally care for her child. He found joy in gadgets even if he never learned to send text messages. Why? Because it made his assistants more accessible and saved him time. He relished all knowledge, whether it affected the global economy or a teenager’s fragile health. For Mr. SyCip, learning was a lifelong passion.

A LEGACY THAT GUIDES OUR PURPOSE
On his centenary, I now reflect on the enormous impact Mr. SyCip made on my life, and the lives of thousands who were fortunate to have known him. It is daunting to have been given the responsibility of leading almost 6,000 professionals amid the pandemic in a precarious moment in human history. I am indebted to Mr. SyCip for his lessons and his legacy that serve as guideposts toward our Purpose. It is now our turn to remind the next generation to walk fast, to embrace change, to listen to others and to never stop learning.

Thank you, Mr. SyCip.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Wilson P. Tan is the Country Managing Partner of SGV & Co.

Gov’t told to brace for potential variant surge

PIXABAY

THE GOVERNMENT should brace itself for a potential surge in coronavirus infections because of the Delta variant from India, according to researchers from the country’s premier university.

The Octa Research Group on Sunday noted that based on experience, cases multiply when new variants of the coronavirus arrive.

“Over the past year and a half, we had a surge when there was a new variant,” molecular biologist Nicanor Austriaco, a member of the research group, told the ABS-CBN News TeleRadyo. “It’s now coming down after the arrival of Alpha and Gamma variants. Now we have to protect ourselves against Delta,” he said.

The Alpha coronavirus variant was first detected in the United Kingdom, while the Gamma variant came from Brazil and Japan. The Delta variant is considered to be the most concerning variant seen yet.

OCTA was set to recommend lockdown levels for Metro Manila for July later on Sunday or early Monday.

The variants from India and Brazil are swiftly overthrowing the variant from the UK, which used to be the most-dreaded, in the United States. Health experts are worried that continued outbreaks would continue in the US because of these variants, unless vaccination efforts could be boosted further.

The UK variant, which is 50% more transmissible than the version from Wuhan China swept the US at the start of the year. It was also linked to a surge in infections in the UK last fall, accounting for more than 90% of cases there.

In the US, the UK variant became the predominant strain in a matter of months and accounted for about 70% of cases by end-April.

The Indian coronavirus variant is considered the most concerning because it is said to be 50% to 60% more infectious and may cause a more severe disease.

When the Indian variant first appeared in the UK at the start of April, it rapidly overcame the Alpha variant and now accounts for 90% of new cases.

The variant from Brazil is said to be not as transmissible but may slightly affect the effectiveness of vaccines.

The Department of Health (DoH) reported 6,096 coronavirus infections on Sunday, bringing the total to 1.4 million.

The death toll rose by 128 to 24,372, while recoveries increased by 6,912 to 1.3 million, it said.

There were 52,570 active cases, 1.4% of which were critical, 89.5% were mild, 5.6% did not show symptoms, 2% were severe and 1.48% were moderate.

The agency said 15 duplicates had been removed from the tally, 13 of which were tagged as recoveries.

Sixty-nine cases tagged as recoveries were reclassified as deaths. Three laboratories failed to submit data on June 25, the agency said.

About 13.8 million Filipinos have been tested for the coronavirus as of June 25, according to DoH’s tracker website.

The coronavirus has sickened about 181.6 million and killed 3.9 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 166.1 million people have recovered, it said.

Mr. Austriaco said Metro Manila and eight other major economic hubs could reach herd immunity by year-end if the Indian variant is contained.

“Given the numbers, our hope that we will reach herd immunity in the National Capital Region Plus 8 by Christmas is reasonable,” he said, referring to the provinces of Batangas, Bulacan, Cavite, Laguna, Pampanga and Rizal, as well as Metro Cebu and Metro Davao. “This does not take into account the Delta variant.”

DoH earlier said it was seeking to vaccinate at least 108,000 people daily in these areas as more vaccines arrive.

The Philippines has reported 17 cases of the Delta variant, including one death. There had been no community transmission of the variant, Health authorities said earlier.

The government had given out 8.9 million coronavirus vaccines as of June 22. About 2.25 million Filipinos have been fully vaccinated out of a 58-million target.

It identified 10 more areas that are experiencing rise in coronavirus disease 2019 (COVID-19) infections, namely, Cagayan de Oro, Bacolod, Baguio, Zamboanga, Dumaguete, Tuguegarao, General Santos, Naga, Legazpi, and Iloilo City, that will be included in the COVID-19 vaccination priority. — Norman P. Aquino and VMMV

Duterte’s refusal to cooperate with ICC may upset US and EU

By Bianca Angelica D. Añago, Reporter

PRESIDENT Rodrigo R. Duterte’s refusal to cooperate with a potential investigation by the International Criminal Court (ICC) of his deadly war on drugs could further upset Western powers such as the United States and European Union (EU), political analysts said.

“Western powers such as the US and EU would certainly be concerned about this refusal to cooperate,” Robin Michael Garcia, president of WR Numero Research, said in a mobile phone message on Sunday.

“Duterte’s refusal could embolden these countries to open up the conversation and make it part of negotiations in pandemic support and other types of aid,” he added.

The presidential palace earlier rejected a recommendation by the ICC’s outgoing chief prosecutor to open a probe into alleged crimes against humanity committed by Mr. Duterte’s in connection with his anti-drug campaign.

Presidential spokesman Herminio L. Roque, Jr. said the plan is “legally erroneous and politically-motivated,” adding that the international court does not have jurisdiction over cases involving crimes against humanity.

ICC Chief Prosecutor Fatou Bensouda on June 14 said she had asked the Hague-based tribunal’s pre-trial chamber to allow her office to probe the killings.

She said her office had been taking measures to collect and preserve evidence in anticipation of a possible probe. Her office found sufficient evidence that local police had committed human rights violations by executing drug suspects who allegedly resisted arrest.

Mr. Roque has said the President and his government would not cooperate with the Netherlands-based tribunal on any potential investigation because it was not “in aid of substantial justice.”

The European Parliament in September issued a resolution expressing its “deep concern over the rapidly deteriorating human rights situation in the Philippines under Duterte.” The legislators condemned the thousands of extrajudicial killings related to the drug war.

The parliament also urged the European Commission to withdraw trade preferences if the Philippine government fails to address the killings.

While US President Joseph R. Biden had not spoken against Mr. Duterte’s drug war, he is “tough on human rights” based on US policy toward other countries, Mr. Garcia said.

While the ICC move does not involve any trade embargoes or economic sanctions, it could affect Mr. Duterte’s “reputation in the international community especially among the Western countries,” said Dennis C. Coronacion, chairman of the University of Santo Tomas Department of Political Science.

Mr. Duterte earlier said stopping the anti-illegal drug campaign would “destroy our country.”

A human rights group earlier asked the ICC to order Mr. Duterte’s arrest for alleged crimes against humanity in connection with his deadly war on drugs.

In a supplementary pleading, members of Rise Up for life and for Rights asked the tribunal to detain the tough-talking leader pending his trial and investigation of the country’s human rights situation.

The complainants cited the need to open an investigation into crimes against humanity in the Philippines, and for the court to issue a warrant of arrest against Mr. Duterte.

The group also said the Justice department’s review of extrajudicial killings was neither comprehensive nor transparent. The public does not have access to its reports, it pointed out.

Justice Secretary Menardo I. Guevarra, who is reviewing drug-related deaths, earlier said his office had received 52 case records from police and 107 cases from the Philippine Drug Enforcement Agency.

Civil society groups plan to sue government agencies over ‘inaction’ on list of single-use plastic goods that should be banned

PHILSTAR

CIVIL SOCIETY groups and other stakeholders on Sunday said they intend to press charges against the National Solid Waste Management Commission (NSWMC) and other government agencies for failing to prepare the list of single-use plastic products that should be banned in line with the Ecological Solid Waste Management Act of 2000.

In a statement on Sunday, Oceana Philippines said the groups sent notices to file legal cases to NSWMC; the Departments of Trade, Science and Technology, Health, Public Works, and Agriculture; and the Metropolitan Manila Development Authority, among others.

Oceana is one of the groups planning to take legal action against the government agencies for taking so long to come up with the list of products and packaging which are deemed harmful to the environment.

“We can no longer bear the inaction of the NSWMC which has failed to implement its mandated task to prepare a list of NEAPP (Non-Environmentally Acceptable Products and Packaging). Their lack of concern for 20 long years is far too deplorable and inexcusable. The groups believe it was time to interpose and take the necessary action on this issue,” Oceana Vice President Gloria Estenzo-Ramos said.

The marine conservation group added that stakeholders took the first step to legally compel the commission and several agencies due to their alleged “apathy to the heavy burden of mounting plastic pollution.”

In February, the environment department approved a resolution classifying plastic straws and coffee stirrers under the NEAPP, citing that these “may be banned soon.”

NSWMC Alternate Chair and Environment Undersecretary Benny D. Antiporda said these are the first products which received the NEAP classification.

According to the Ecological Solid Waste Management Act or Republic Act 9003, the NSWMC is required to prepare a list of NEAPP within a year after the law takes effect and provide annual updates.

All items listed as NEAPP should not be produced, distributed, and used.   

BusinessWorld sought NSWMC for comments but has yet to receive a reply as of press time.

On June 2, House Deputy Speaker and Antique Representative Loren B. Legarda filed a resolution seeking a probe on the NSWMC for its “failure to act on its ministerial function” in preparing the NEAPP since the solid waste management law was enacted, despite its legal obligations and budgetary support of P1.3 billion in 2017.

“This massive delay in implementation has exacerbated the plastic pollution crisis in the country to the point where we have become known as among the top marine plastic debris polluters in the world with the largest source of single-use plastics leaking into the ocean,” Ms. Legarda’s House resolution read.

The Philippines has produced 2.7 million metric tons of plastic waste, with more than half a million metric tons that leaked to the ocean, according to a 2015 study conducted by non-profit organization Ocean Conservancy.

Based on a 2019 waste assessment brand audit report of the Global Alliance for Incinerators Alternatives, the country generated 164 million pieces of sachets, 48 million shopping bags, and 45.2 million pieces of labo bags or the thin, transparent type. — Angelica Y. Yang

Senate bill filed to phase out single-use plastic, styrofoam products

PHILSTAR

A SENATOR has filed a bill that will regulate and phase out the production of single-use plastic and styrofoam goods, citing the plastic pollution problem to which the Philippines is considered among the biggest contributors.

Senator Emmanuel “Manny” D. Pacquiao filed Senate Bill No. 2262, which aims to control the production, importation, sale distribution and use of single-use plastic and styrofoam products.

He noted that the Philippines produces 2.7 million tons of plastic waste each year, 20% of which end up in the ocean, citing a statement from the United States Agency for International Development last year.

This has placed the Philippines as the third largest contributor to plastic in the ocean.

The senator also cited a 2015 report indicating that almost half or 48% of solid waste in the country are produced in the capital region.   

“The biggest contributor to this problem is our excessive use of single-use plastics. Single use plastics are designed to be used just once and are often thoughtlessly discarded,” he said in the explanatory note of the bill.

“Without decisive and effective action on this problem, we could end up with 12 billion tons of plastic litter in landfills and the environment and with more plastics than fish in the sea by 2050,” he said, citing the United Nations Environment Programme report in 2018.

The measure also calls for the formulation of a phase-out plan, which includes a reduction and recovery among consumers, responsibility schemes for producers, identifying alternative products, and establishing fiscal and non-fiscal incentives.

Under the bill, single-use plastic products such as plates and saucers, cups, bowls and lids, cutlery, food and beverage containers made of expanded polystyrene and sachets, among others, must be phased out within four years.

Drinking straws, stirrers, sticks for candy, balloon and cotton bud, buntings, confetti and packaging or bags of less than 10 microns shall be phased out within a year.

Production, importation, sale distribution, provision or use of the plastic or styrofoam product shall be prohibited.

On the other hand, properly labeled flexible disposable plastic straws for people with medical conditions shall be allowed when no reusable or compostable alternatives are available.

This provision on prohibition shall not apply to the use by hospitals, nursing homes or other medical facilities for medical treatment, according to the measure.

The proposal — similar to the Ecological Solid Waste Management Act of 2000 — also spells out the responsibilities of various departments as well as the National Solid Waste Management Commission in identifying plastic products that must be banned.

The bill also tasks government agencies to develop and implement programs that will assist local manufacturers in acquiring sustainable resources of raw materials and technology for recyclable materials as alternatives.

Producers and importers will also be required to establish responsibility programs to prevent plastic wastes from leaking into the environment within the first two years of the law.

Companies that fail to meet the recovery or offsetting of plastic product footprint target shall pay an amount equivalent to 5% of the cost if the single-use product “set in the market to the producers and importers’ responsibility corporation… net of whatever amount already spent for recovery for the period.”

Commercial establishments, meanwhile, will be mandated to promote the use of reusable and recyclable products. They shall also charge take-out food or delivery services for every use of single-use plastic product whether they are disposable or compostable.

The proposed law will also allow any citizen to file civil, criminal or administrative action against those who violate the provisions of the bill, government agencies with orders inconsistent with the measure and any negligent public officer.

Implementing rules and regulations of the law shall be crafted within six months from its effectivity. — Vann Marlo M. Villegas

Supreme Court directs Ozamiz court to pursue PNB cases vs lawyer over unfunded checks

THE SUPREME Court has directed the municipal trial court of Ozamiz City to resume the trial of cases filed by the Philippine National Bank (PNB) against a lawyer for P12.8 million worth of checks issued without sufficient funds.

The country’s highest court, acting on a petition filed by PNB, overturned the June 1, 2015 decision of the Court of Appeals (CA), which voided the criminal cases against respondent Henry S. Oaminal.

In its 2015 decision, the CA nullified the proceedings before the Ozamiz City court for having been conducted without jurisdiction because the criminal accusations were signed only by the previous prosecutor and not by the prosecutor in-charge of the case.

However, the Supreme Court, in its decision dated February 17 and published on June 22, held that the CA erred in dismissing the cases because the “informations” signed by the previous prosecutor were valid.

Informations are “accusation(s) in writing charging a person with an offense, subscribed by the prosecutor and filed with the court,” according to the Supreme Court.

It said the reinstatement of the informations by Heronimo S. Marave, Jr., the first prosecutor in-charge of the case, was “already sufficient to vest upon the trial court jurisdiction over the subject matter of the criminal cases.”

It added that Roberto A. Lao, the acting city prosecutor designated by the Department of Justice in August 2002, did not have to refile the exact same documents with his signature as it would “impose a redundant and pointless requirement on the prosecution.” — Bianca Angelica D. Añago

BFAR lifts red tide warning in parts of Leyte, Negros Oriental   

THE BUREAU of Fisheries and Aquatic Resources (BFAR) announced that areas in Leyte and Negros Oriental are officially free from red tide contamination.   

BFAR said in its 19th bulletin that shellfish harvested in Cancabato Bay, Leyte and Tambobo Bay, Negros Oriental are safe for human consumption following results of water testing in these areas.

However, BFAR said the areas of Milagros, Masbate; Sorsogon Bay, Sorsogon; Dumanquillas Bay, Zamboanga del Sur; and Murcielagos Bay, Misamis Occidental have recently tested positive for red tide or paralytic shellfish poison.   

Red tide warnings are also still up in Dauis and Tagbilaran City, Bohol; Daram Island, Cambatutay Bay and Irong-irong Bay, Western Samar; Calubian, Leyte; Murcielagos Bay, Zamboanga del Norte; Balite Bay, Davao Oriental; and Lianga Bay and Bislig Bay, Surigao del Sur.    

All types of shellfish and Acetes sp. or alamang coming from areas with red tide warnings are unfit for human consumption. Other marine species sourced in the same areas can still be eaten with proper handling.

Red tide occurs as a result of high concentrations of algae in the water. Human consumption of contaminated shellfish may result in paralytic shellfish poisoning, which affects the nervous system.

Typical symptoms of paralytic shellfish poisoning are headaches, dizziness, and nausea. Severe cases may cause muscular paralysis and respiratory problems. — Revin Mikhael D. Ochave   

5.1 magnitude earthquake in Surigao del Sur

A MAGNITUDE 5.1 earthquake shook parts of eastern and northern Mindanao Sunday afternoon, with aftershock expected but no immediate reports of serious injury or damage. The Philippine Institute of Volcanology and Seismology (Phivolcs) recorded the tremor at 3:14 p.m. with epicenter east of Bayabas town in Surigao del Sur province. Various intensities were felt in areas along the southern mainland’s eastern areas and in the northern Mindanao province of Misamis Oriental.

PNoy and inclusion

One of the few experiences of pure exhilaration and hope at the start of 2021 was negotiating the newly opened Skyway 3. Those of us who have suffered through the travails and tribulations of the old normal EDSA on our way to south Metro Manila and NAIA feel like we are being teleported to the highways and byways of more affluent countries where these amenities are a common sight and which we, perhaps, sometimes and with reason, despaired of ever having. In my own mind I associate these amenities with economic abundance; which is why driving through Skyway 3 makes me feel like being at the door of similar abundance. Such buoyancy and exhilaration are becoming a more common experience, thanks to the presidency of Benigno Aquino III, popularly called PNoy.

What do all the entries in the following list have in common — the newly inaugurated Skyway 3, the Tarlac-Pangasinan Expressway (TPLEX), the Ninoy Aquino International Airport Expressway (NAIAX), the Cavite-Laguna Expressway (CALAX), the North Harbor Link Project? First of all, they were constructed under the Public-Private Partnership umbrella and, second of all, the contracts for major phases of these projects were signed and work started in President Benigno Aquino III’s watch. Finally, they will be operated by private groups making them more accountable and sustainable. They freed the national treasury of required funding apart from the right-of-way financing.

And they all make you feel increasingly like you belong to, rather than are being left behind by, the emerging Asian Century. When I was breezing through TPLEX for the first time on my way to Baguio, my heart skipped a beat and I stopped to acknowledge my debt of gratitude to PNoy’s watch. Viewed from the lenses of 20 years ago, they seemed so improbable, they may as well have been “black swans.” Thanks to PNoy’s watch that made PPP the main powertrain to arterial infrastructure, they are slowly being dragged towards the center of our experience where they belong. And because they lower the cost of transported produce to both rich and poor, they are inclusive.

And how did we, PNoy’s bosses, fare as a nation under his watch? The average rate of growth of the Philippine GDP during PNoy’s watch was 6.2%, higher than the average during the watch of any president in our history. The puzzle in 2015 was why the rapid economic growth (7.3% in 2014) did not seem inclusive — the poverty incidence seemed stuck at 26% which was where it was in 2010 when the PNoy watch started. So worked up was PNoy about this that he personally puzzled over it with Planning Secretary Dr. Arsenio Balisacan. Dr. Balisacan was, and still is, a strong proponent for riding economic growth to poverty reduction. This conundrum in 2015 proved premature when in November 2016 it was announced that the poverty incidence had declined from 26.3% to 21.6%, an almost 5% difference in six years, a remarkable achievement in our neck of the woods and even elsewhere. Had we chipped away at poverty at this rate during the Millennium Development Goal (MDG) Era (1990-2015), we would have more than attained the MDG target of 17% poverty incidence. As it turned out, we went from 34% to only 26% among those that fell short of the target. Dr. Balisacan was right: poverty reduction almost always tracts economic growth, if with a lag!

What made for this inclusion outcome during PNoy’s watch? PNoy’s watch scaled up the CCT Program (Conditional Cash Transfer or 4Ps) where targeted poor were accorded cash transfers to keep kids at school. That clearly should account for some improvement. But largely glossed over (PNoy himself was primarily concerned with why CCT did not seem to figure in the 2015 poverty statistics) was the marked change in the emerging structure of the Philippine economy in his watch. Everyone noticed the economy growing faster but few noticed that the quality of growth was also improving — growth was becoming more favorable to poverty reduction. This is because economic growth has two aspects: first is quantity of growth (whether it is high or low); the other is the quality of growth: whether its leading edge is markedly more pro-poor because it employs more people from low-income classes and pays higher and more stable incomes to the less educated. Manufacturing is more pro-poor in low-income countries (< $10,000 per capita) than the Services sector as it does exactly those functions better. Thus, when Manufacturing leads growth, poverty incidence retreats faster that when the economy is growing with Services as the leading edge. The figures in the chart show the comparative growth performance of Manufacturing and Service sectors for all the presidential watches since Marcos.

The red bar shows the growth of the Service sector and the blue bar shows the growth rate of the Manufacturing sector for each presidential watch. Note that the blue bar is always shorter than the red bar except during PNoy’s watch. Under Aquino III’s watch, Manufacturing was leading the growth of the economy: it was a growth characterized not only by quantity but by quality. Neither the romanticized Marcos’ watch nor the deservedly admired Ramos’ watch could match.

If I may hazard a guess, it was foreign investment and especially Japanese foreign investment that made the big difference in the growth of Manufacturing. Foreign investment just over $1 billion in 2010 grew to $8 billion by 2016. It was that time when super salesperson Director Lilia De Lima, having won the Japanese investors’ trust, was herding investors to PEZA (the Philippine Economic Zone Authority) in numbers which were outrunning the available space. Matuwid na daan (the straight path) had struck a chord with foreign investors; they saw in PNoy the pedigree of one who sticks religiously to contracts — a chip, as it were, of the old petticoat. For wasn’t his mother, Cory Aquino, who as president decided that the Philippines will honor all its debts even those contracted (and squandered) by the Dictator Marcos over the objections of many left leaners in her cabinet who favored repudiation? And foreign investors flock to contract stability like bees to nectar. For PNoy was a true child of Cory: a principled but a reluctant leader, ever uncomfortable with the wielding of power. In macho circles, he would fit the description of a wimp.

A disturbing observation emerges from the figures in the chart: the Duterte watch, halfway into its term, had reverted to the old normal with respect to the Manufacturing-Service growth comparison. In the first full year of Duterte’s watch, Manufacturing outpaced the Service sector, thus fulfilling the “continuity” promise of Duterte’s economic managers. But into the first half of his watch, the economy seemed to revert to business-as-usual. This was even before the COVID-19 pandemic which only worsened the outlook for the economy and the reduction of poverty.

Yes, PNoy looks like a wimp in comparison to his successor. But only time will tell how PNoy’s “mission accomplished” will compare in terms of measurable performance. From where we stand in mid-2021, we should be grateful if Duterte’s watch will manage to match the Wimp’s.

 

Raul V. Fabella is an Honorary Professor of the Asian Institute of Management (AIM), a member of the National Academy of Science and Technology (NAST) and a retired professor of the University of the Philippines. He gets his dopamine fix from hitting tennis balls with wife Teena and bicycling.

Addressing vaccine hesitancy

PHILIPPINE STAR/ MICHAEL VARCAS

From the start of the COVID-19 vaccine rollout, experts and doctors emphasized equitable vaccine distribution as the key to ending the pandemic. Unfortunately, aside from having more physical barriers to vaccination, those of lower socioeconomic status are also more hesitant to be vaccinated.

On May 27, Secretary Carlito Galvez reported that 40% of those in classes D and E are unwilling to be vaccinated against COVID-19. Vaccine uptake is much higher among classes A, B, and C. This is concerning, as the poor are at high risk for COVID-19 due to their limited access to healthcare services and living in close quarters.

As local government units (LGUs) expand their vaccination program to the A5 group or indigent population, it’s crucial to understand the root of vaccine hesitancy so that communication strategies can fit to their situations. After all, there’s no simple, one-size-fits-all solution or response to vaccine hesitancy.

Action for Economic Reforms (AER), in partnership with the Healthcare Professionals Alliance Against COVID-19 (HPAAC), organized a focus group discussion towards understanding the reasons behind Filipinos’ vaccine hesitancy. Further, the discussion attempted to address specific concerns of the participants through explanations from doctors. The participants were composed of vaccine-hesitant people, including beneficiaries of the Pantawid Pamilyang Pilipino Program; members of AKTIB, an alliance of community organizations; and senior citizens from Metro Manila and the Visayas.

The main sources of vaccine hesitancy among the group include concerns on side effects, fear due to existing comorbidities, mistrust of the vaccine development process, preference for a certain vaccine brand, and false information circulating in their communities.

Fear of side effects was frequently brought up during the discussion. In exit interviews, frontline government workers were worried about being unable to work due to the fever, chills, and body pains that they heard were common reactions to the vaccine. In no-work, no-pay settings, the poor cannot risk sacrificing a day off to recuperate from vaccine side effects.

Based on the exit interviews conducted, participants responded well to the doctors’ discussions and were now willing to be vaccinated.

What worked in convincing the small group we gathered to get vaccinated?

Ensuring participants’ comfort helped in effectively communicating with the group. The doctors who facilitated the discussion kept the tone casual, engaging, and relatable, as if they were having a one-on-one chismis (gossip) session with participants. This put participants at ease and made them more open. They acknowledged and validated their concerns rather than dismissing them and explained every concern in simple terms. This healthy exchange of ideas and concerns provided a strong foundation of trust.

The results from the roundtable discussion showed that having empathy and trust, not using force nor shaming, is what encourages vaccination.

Clearly, our President could stand to practice this empathy and compassion. In a public address last week, he threatened to jail those who refuse to be vaccinated. Forcing people into being vaccinated only heightens their mistrust of authority, which contributes to vaccine hesitancy.

However, while it’s easy to tell people to “listen to the science,” we have to accept that, often, it’s not science that bears greater weight when people make decisions. Even after attending the roundtable discussion in which doctors lengthily explained the vaccine development process, one participant (who was otherwise still willing to be vaccinated) still had questions on its long-term effects due to the perception of a rushed vaccine process. “Sabi ng kaibigan ko, hindi sapat ang studies, seven years dapat ‘yung paggawa ng vaccine, ‘e ito one year lang.” (My friend said, the studies are insufficient; making a vaccine takes seven years, but here, it took only one year to produce the vaccine.)

Gossip and personal experiences often prove to be more potent than scientific studies in convincing people. This is understandable, as personal stories from friends appeal to their emotions, triggering a response that’s hard to calm by citing evidence from trials.

Studies show that one of the most effective ways to combat vaccine hesitancy is to highlight the personal benefits of vaccination. But from our discussion, the message people said stuck with them was the emphasis on the collective benefits from vaccination — how getting vaccinated against COVID-19 can protect the larger community from COVID-19 and help in reopening the economy.

As the government continues the vaccine rollout, we hope that more people are also able to utilize the power of a simple conversation in convincing those around them to get vaccinated. Sharing links to videos on how vaccines are developed or pronouncements from government authorities can often work but may not be as direct or effective as sitting down with people and having an open, respectful, validating conversation to discuss their specific concerns. More than this, community discussions and information campaigns are crucial especially for those who do not have access to the internet. The government needs to listen to the communities to learn the information being spread so they can immediately correct misinformation.

Responsible reporting from the media on vaccine side effects and effectiveness is still crucial, and the Department of Health’s initiative of setting up KIRA (Katuwang na Impormasyon para sa Responsableng Aksyon), a chatbot on Facebook Messenger built to address questions about COVID-19, is worth lauding.

But the problem of vaccine hesitancy is more than just a knowledge gap that can be solved with information drives; it is a complex issue that requires empathy and pakikipagkapwa-tao (humanitarianism).

 

Pia Rodrigo and Emmanuella Iellamo are communications and research officers of Action for Economic Reforms, respectively.

Farewell, President PNoy

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Thursday morning woke up crying. Guilt perhaps. Or regret at opportunities lost to appreciate and thank an honest and decent president, one of few that the country ever had. It was only at mid-day that it was formally announced on national television that immediate-past President Benigno Simeon “Noynoy/PNoy” C. Aquino III passed away June 24, 2021 at 6:30 a.m., of renal failure from complications of diabetes.

It has been five years since PNoy turned over the reins of government to long-time Davao Mayor Rodrigo R. Duterte, who won over runner-up Mar Roxas of Team PNoy in the 2016 presidential elections. And PNoy had been in quiet retirement until he died, except when the rabid fangs of the new power turned on his shins to try to bring him down to grovel in lost prestige and respect of the Filipino people. PNoy was perhaps the most accused and maligned post-term by the successor government.

Why was this? Some say that perhaps it was because he was not corrupt, as in the common qualifier for the traditional politician (derogatively called “trapo” in the local lingo, meaning “a stinking wet old rag that sops up the people’s money”). He was also painted as stupid and weak by his detractors — as if stupid and weak were opposite to wise, strong, and corrupt. Even in the campaign for the 2010 elections when he was convinced to run for president, opponents circulated alleged documents by known psychiatrists (later denied) stating that PNoy was mentally and emotionally unstable. It seemed that many did not like his political style and slow pacing, which was very similar to that of his mother, Corazon “Cory” Aquino, the first president in the restoration of democracy by the 1986 EDSA I People Power Revolution.

It has been the embarrassment of the EDSA Revolution that between 1986 and 1991 some 11 coup d’états were attempted to topple Cory Aquino’s government. President Cory Aquino’s only son (of five offspring), Noynoy was 27 years old when he was wounded in the siege of Malacañang Palace in 1987. As much as the physical and political trauma affected Cory, so must those early betrayals of the principles of EDSA I have seared into the heart and soul of that young man Noynoy, who saw his father Ninoy’s “Impossible Dream” of Filipino Freedom come true with a People Power Revolution, then immediately dissipate with the brutal, shamefaced attempts to grab power by trusted former supporters. Back to dictatorship?

The attempts to establish military rule or a military-backed dictatorship were thwarted, thanks be to God. But the coups were a tragic loss of idealistic innocence for Cory, for Noynoy, and for the Filipino people. A comment on a website painfully described the collective consciousness: “the situation appeared desperate, for not only were military commanders around the country waiting to see which side would triumph in Manila, but the people of Manila, who had poured into the streets to protect Aquino in February 1986, stayed home this time” (http://www.globalsecurity.org/military/ops/classic_resolve.htm, cited in Wikipedia). Without granting absolute credence and adherence to the independent opinion expressed therefrom, it stands to reason, why indeed was Cory Aquino left to fend for herself and her government in the crises? Where was people power?

The cascade to the subconscious of the “desertion” could have given license to more falling away of those unified by EDSA I. Political breakaways from Cory’s party formed new alliances among their preferred “friends” and even new friends from reconsidered enmities. So many new political parties were formed. Some political analysts and common observers thought that those who had worked hard for EDSA I might have expected to be rewarded with positions in the government of Cory. When expectations were not met, then they bailed out of Cory’s influence and dependence, and worked out their own political objectives and goals.

But Cory heroically pieced together the broken pieces of the democracy, laying the ground for the take-off of the country to social, political, and economic prominence in the ASEAN region and the world. Strict adherence to constitutional laws and principles of the country and those of the world, with her deep spirituality and morality, guided her governance. And the freedoms of the Filipinos, won at EDSA I, prevailed and strengthened. Fidel Ramos, Joseph Estrada, and Gloria Arroyo were presidents after her.

When Cory died on Aug. 1, 2009, the Filipino people came out en masse in a funeral procession from the five-day wake at the Manila Cathedral to the family mausoleum in Parañaque. It was like the emotional, demonstrative funeral procession of her late husband, Benigno Aquino, Jr., who was assassinated on Aug. 21, 1983 — the “cause” for the subsequent revolution against the dictator Marcos. Cory died at a most critical time, when deeply entrenched corruption was the shame of government and society. And so, her son Noynoy was convinced to run for president at the 2010 presidential elections.

It was the unrelenting positivity of the Filipino people that elected Benigno Simeon Aquino III as the 15th president of the Republic of the Philippines. It was trust that the pernicious graft and corruption would be stopped by a truly honest and decent president, in the mold of the president elected by the people in February 1986 and installed by the people by the EDSA People Power Revolution. It was the refurbishing of a symbol of integrity and loyalty to the people. “Kayo ang Boss” (you, the people, are my Boss), Noynoy declared upon taking his oath. He was nicknamed “PNoy” (for President Noynoy). His motto was “Walang mahirap kung walang corrupt” (there will be no poverty if there is no corruption). His mission-vision statement was embodied in the “Matuwid na Daan” (Straight Road) anti-corruption drive that was, unfortunately, weakly supported by legislators and jurists.

Good governance made for good economics, PNoy (an Economics graduate of the Ateneo de Manila University) espoused. At the end of his six-year term, the Philippines was crowned the fastest growing country in Asia as it hit 6.9% growth, even as the world was just recovering from the recession. “High growth numbers have become the norm under the watch of President Benigno Aquino III… the kind of growth the Philippines has sustained over the past six years has been significant and the world has taken notice. As he ends his presidency, Aquino will leave an economy now universally seen as a global star,” Rappler reported on June 17, 2016.

Like his mother, Cory, PNoy was strict against graft and corruption. He was “close to the ground,” not haughty or elitist, despite his advantage in social status and education. As an example, he outlawed the use of car sirens (the wang-wang) by government VIP vehicles that would give officials preferred passage though street traffic. But he was most criticized for often delayed action and reaction. But people might have forgotten how the traumas of being deserted, and betrayed by so-called “allies” or friends, as experienced in the early days post EDSA I, might have taught him to be careful and pause to analyze before acting.

Now that PNoy is gone is when he reaps accolades for integrity and honesty. He is forgiven his faults for having no malice or self-interest, only a deep concern for the Filipino people. Foreign Secretary Teodoro Locsin, Jr., former speechwriter to Cory Aquino, twitted gushingly: “I’m out of Twitter from grief over the death of a sea-green incorruptible, brave under armed attack, wounded in crossfire, indifferent to power and its trappings, and ruled our country with a puzzling coldness but only because he hid his feelings so well it was thought he had none; it was the way he and his siblings were raised by a great woman — their mother and of our restored democracy (without her none in power yesterday and today would be). She created the democratic space that made it possible. She believed that one must never let oneself go.”

Cory and PNoy. The fruit does not fall far from the tree.

Farewell President PNoy.

 

Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

The psychology of DDS

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The DDS — some call them the Duterte Death Squad, others say it stands for Duterte Diehard Supporters. Whatever “DDS” stands for, this group has proven to be a strategic political tool that serves the Duterte dynasty.

Analytics derived from social media listening platforms shows that there were approximately 200,000 to 250,000 DDS members active on various social media websites last year. Of this number, 30% are organic (real people with real convictions), while the remainder consist of paid trolls who are under the employ of messaging agencies. Upon further research, I discovered that messaging agencies charge about P5 million to deploy 15 trolls, who in turn, have their own “smurf” villages, for a 30-day period. The core messages originate from the client themselves but are re-worded, re-contextualized and converted into MIMEs by the messaging agency or the public relations firms they are attached to. Maintaining an army of trolls requires both organization and money.

The DDS are strategic to the Duterte political agenda. Not only do they give the impression of a solid political base, their noise makes them appear more formidable than they really are. By design, they are encouraged to be rabid, confrontational and attack like a mob when challenged. The idea is to clobber dissenting voices into silence then strut like a peacock afterwards. The act of “strutting” validates the strength of the group from within. The overarching presence of the DDS in our political landscape is designed to portray the Duterte firmament as immovable.

This piece is not to meant to question the strength of the DDS nor validate/invalidate their effectiveness. Rather, my purpose is to delve into the psychology of the (unpaid) members DDS and what motivates them.

When Mayor Duterte announced his presidential bid in 2016, he was hardly known in the national stage. How was he able to recruit his first core members of DDS?

Political strategists infer that three factors played in Mayor Duterte’s favor.

The first factor is what strategists call “the edge of innovation” — also known as offering the right proposition at a time it is needed most. It will be recalled that back in 2016, the nation hankered for a “strong” leader.” One with unbendable political will, one who was not stymied by bureaucratic and/or democratic processes, one who could get things done without fear of repercussions and one who represented the common Filipino, not the elite. Intentionally or unintentionally, Mayor Duterte portrayed himself as that man.

The second factor was the absence of character dissonance. The Mayor presented himself as-is, where-is, complete with defects. He was unapologetically unrefined, un-academic (more street smart), irreverent and uncouth. He carried no pretenses. The narrative they heard from the Mayor’s speeches was a match to his optics. Authenticity sells and this is the wellspring of his appeal. The fact that he is a politician (known to be posers and liars), yet authentic, added to his attraction.

The third factor was simplicity of message. He solution to the country’s problems could not have been more elementary — solve the drug problem and our lives will be better, today and in the future. Although we all know that building a prosperous nation and an efficient government takes more than just solving the drug problem, it is man’s nature to want to distill complex issues into simple cases of cause and effect. This is especially true when the majority of the electorate don’t understand the workings of economics, public governance, and human development. The less educated resonate with quick fix solutions — and this is what the Mayor pandered to.

Fast forward to today and the DDS is still going strong despite the President falling short in fulfilling his promises. He even backtracked altogether in solving the drug problem and defending our territories from China’s grab. Why do the (unpaid) DDS persist?

Simply put, the DDS persists because of the feeling of empowerment the members get in being a part of the group. It has little to do with the President’s achievements.

Edward Louis Bernays is the Austrian pioneer in the field of propaganda. Bernays theorized that individuals naturally feel a sense of importance when they are attached to a group, especially one that is politically driven. Being a member of a group gives its members a feeling of potency, something they would not possess on their own. This feeling of potency and empowerment can be addictive.

When one is a member of a group, individual personalities and values disappear and its members take on the personality of the group. And since groups are naturally driven by impulses and emotions, they become highly suggestable. This is why a group like the DDS can be easily swayed by their handlers. They can be led to feel strong emotions (e.g., rage, contempt) and called into action even if it means breaking the law and breaking one’s moral code.

Mind you, the group does not have to physically together to feel a sense of belonging. Being a member of a group is a state of mind.

Members of a group can hide under the cloak of anonymity. With anonymity comes less fear of the law or social castigation. Group members act less civilized because anonymity exempts them from consequences. This is why group have the propensity to act like a mob.

A group, and the principles it stands for, are highly contagious too, asserts Bernays. The power of collective thought can easily sway others to adopt the same thought. One validates the other and a cascade of new recruits follows. This is why groups, like the DDS, have grown from just a handful of “apostles” to more than 200,000.

Love them or hate them, the DDS are part of our political landscape today. It will do us well to understand their psychology.

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook @AndrewJ. Masigan

Twitter @aj_masigan