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IC considering incentives for participating in catastrophe facility

The Insurance Commission (IC) said it is working on a program of incentives to encourage non-life insurance companies to participate in the upcoming Philippine Catastrophe Insurance Facility (PCIF), including tax breaks.

Deputy Insurance Commissioner Erickson H. Balmes said in a forum Tuesday that the World Bank proposed the study of possible tax incentives the government can offer associated with the PCIF to make it more attractive and sustainable.

“Last month in our last meeting, the World Bank announced that they are going to be engaging a tax expert to look into how to create tax incentives for the pool so that in lean years, (tax) will be collected, and in good years, the tax incentive will be applied,” Mr. Balmes said during the roundtable arranged by the Asian Development Bank Institute (ADBI) and the Organization for Economic Cooperation and Development (OECD).

He said the IC aims to promote participation in the catastrophe pool by offering tax breaks. He did not elaborate, saying only that the details of the proposal are under review.

He said the IC issued Circular Letter (CL) 20-72 in June 2020 to count participation in the PCIF in the good governance scorecard for non-life insurers.

It released CL 2021-2027 on April 12 announcing the formal establishment of the PCIF, outlining the sustainable catastrophe insurance premium rates and requiring all non-life companies to join the group working on the details of the facility.

The facility is expected to be fully launched by April 2022.

It is meant to help non-life insurance companies better manage disaster-related exposure and expand the industry’s capacity to take on more risk. Prior to this, insurance companies had to seek reinsurance overseas for their natural disaster-related insurance products.

Pooling resources in the PCIF and keeping them within the country will help the non-life sector boost its premium base and eventually expand the lineup of catastrophe insurance products on offer.

Mr. Balmes said the IC will monitor the rates adopted by non-life insurers for their catastrophe insurance products. – Beatrice M. Laforga

Gilas Pilipinas begins FIBA OQT campaign against host Serbia

GILAS PILIPINAS begins its FIBA Olympic Qualifying Tournament bid against host team Serbia. — FIBA

By Michael Angelo S. Murillo, Senior Reporter

THE Philippine national men’s basketball team begins its campaign in the International Basketball Federation (FIBA) Olympic Qualifying Tournament (OQT) early on Thursday morning (Manila time) in Belgrade, Serbia, against the host team.

With a bid anchored on youth and program development, Gilas Pilipinas will try to go deep in the tournament happening until July 4 and vie for the lone Tokyo Olympic spot up for grabs.

First for the Philippines is a showdown with world number five Serbia in a Group A clash set for 2:15 a.m. here.

For the OQT, Gilas has brought the same team that represented the country, and did well, in the recent FIBA Asia Cup Qualifiers at Clark City in Angeles, Pampanga, early this month.

The 12-man roster is composed of Dwight Ramos, Justine Baltazar, SJ Belangel, RJ Abarrientos, Will Navarro, Angelo Kouame, Mike Nieto, Isaac Go, Jordan Heading, Carl Tamayo, Geo Chiu and Kai Sotto. Coach is Gilas program director Tab Baldwin, aided by coaches Jong Uichico, Caloy Garcia, Sandy Arespacochaga and Sandro Soriano.

Mr. Baldwin said in the lead-up that they are expecting a tall order in the OQT with the high level of competition but that they are staying the course of not only putting on a good showing but also getting valuable experience for the young players which they could use moving forward.

Apart from Serbia, Gilas, the 31st ranked team in the world, is also set to face off with the Dominican Republic (19th) in Group A.

“It’s gonna be a great challenge and we’re excited about it,” the Gilas coach said.

But Mr. Baldwin cautioned that some of their players are banged up, including versatile guard Dwight Ramos, who is ruled “unlikely to suit up” for Gilas in the two games because of a groin injury, albeit the team is still hoping he can give it a go.

Carl Tamayo (ankle) and naturalized player Angelo Kouame (knee) are not a hundred percent healthy but are expected to play.

Serbia, the nationals’ first opponent, will be without reigning National Basketball Association  (NBA) most valuable player Nikola Jokić and Atlanta Hawks shooter Bogdan Bogdanović, but is still “world-class,” said Mr. Baldwin.

The host team will have on tap NBA players Nemanja Bjelica (Miami) and Boban Marjanović (Dallas) as well veteran guard and former NBA campaigner Miloš Teodosić.

Meanwhile, Group B of the Serbia OQT will have one less competitor as Senegal failed to travel to Belgrade after a number of its players tested positive for the coronavirus, giving other teams in the grouping — Italy and Puerto Rico — direct entry to the semifinals.

In the OQT, the top two teams from each group advance to the crossover semifinals where the winners battle for the Olympic spot in the finals.

Simultaneous with the Serbia tournament are OQTs in Croatia, Canada and Lithuania, where one Olympic spot each is also on offer.

Gilas Pilipinas matches can be seen over One Sports and One Sports+ as well as through online livestream over mobile devices through Smart’s gigafest.smart.

Paul George (41) helps Los Angeles Clippers stay alive against Phoenix Suns

TRAILING for the first time all night and staring at elimination in the series, the Los Angeles Clippers knew exactly what to do.

Get out of Paul George’s way.

And because they did, they’ll get an opportunity to do it again.

George scored a postseason-career-best 41 points, Reggie Jackson ignited a late spurt and the Clippers survived by holding off the host Phoenix Suns (116-102) in Game 5 of the Western Conference finals on Monday night.

The win in a potential season-ending game was the third of the postseason for the Clippers, who now return home down 3-2 for Game 6 in the best-of-seven series on Wednesday.

“We thrive in this moment,” insisted George, whose team was down 3-2 in the first round against Dallas before winning the last two games to move on. “We’re fighters. We’re scrappy.”

George had 20 of his 41 points in the third quarter, when the Clippers responded to their first deficit of the game to gradually pull away.

A three-point play by Cameron Johnson got the Suns within 98-94 with 6:58 to play, but that’s when Jackson took over.

Jackson hit two 3-pointers and slammed down a dunk in a 14-2 burst during which he and George combined to do all of the Clippers’ scoring. The surge increased the lead to 16 with 4:03 to go.

The Suns, who had won five straight at home, never got appreciably closer after that.

“Situations like that really bring you together, and you find a way,” George said. “Reggie’s one of the most positive people. He keeps everything light, and that’s what you need.”

George’s 41-point total surpassed the 39 he’d scored for the Indiana Pacers against the Washington Wizards in 2014 and matched against the Toronto Raptors in 2016. He shot 15-for-20 on Monday and also found time for a game-high 13 rebounds and team-high six assists.

Afterward, he credited his coach, Tyronn Lue.

“He allows us to come out here and play freely. He doesn’t put any extra pressure on,” he praised. “We knew what we’re facing and what we’re up against. That’s all that needs to be said. That’s who T-Lue is. He’s as cool as they come. We take after his identity.”

Jackson chipped in with 23 points and Marcus Morris, Sr. had 22 for the Clippers. DeMarcus Cousins, pressed into 11 minutes of duty with Ivica Zubac out due to a sprained right medial collateral ligament, added 15 points off the bench.

Seeking to make their first-ever trip to the NBA Finals, the Clippers outshot the Suns 54.8 percent to 45.2 percent.

No more than 10 minutes after the final buzzer, Lue was writing a script for Game 6. It sounded a lot like the one he’d authored for Game 5.

“It’s not winning three games; we’re trying to win each quarter,” he disclosed. “Having to win three games, that can be a lot of pressure. We try to win a quarter. It starts there. We came out with the mind-set. We won three out of four quarters.”

Devin Booker had a team-high 31 points for the Suns, whose last berth in the NBA Finals came against the Chicago Bulls in 1993. They’ve since lost in the Western finals to the San Antonio Spurs in 2005, the Dallas Mavericks in 2006 and the Los Angeles Lakers in 2010.

Chris Paul had 22 points to go with a game-high eight assists, and Johnson added 14 points for Phoenix. Deandre Ayton recorded 10 points and a team-high 11 rebounds.

Paul recognized the opponent in Game 5. It was the same one the Clippers had faced on Saturday, a game the Suns won 84-80 to go up 3-1.

“They were a little bit like us in Game 4. They hit us,” he observed. “They got too comfortable. We’ve got to do better.” — Reuters

Golfers Saso and Pagdanganan qualify for Olympic Games in Tokyo

REIGNING US Women’s Open champion Yuka Saso will be one of two Filipina golfers who will represent the Philippines in the Tokyo Olympics. — KATHRYN RILEY/USGA

FEMALE golfers Yuka Saso and Bianca Pagdanganan are through to the Olympic Games in Tokyo next month, becoming the 16th and 17th Filipino athletes, respectively, to book their spots in the rescheduled quadrennial sporting meet.

Nineteen-year-old Saso, the 2021 US Women’s Open champion, and Ms. Pagdanganan, 23, Asian and Southeast Games gold medallist, qualified based on their world rankings and were to be formally announced by the International Golf Federation later on Tuesday.

Filipino-Japanese Saso is currently ranked number nine in the world while Ms. Pagdanganan is at 42nd.

The two join male golfer Juvic Pagunsan in the Philippine golfing team for the Tokyo Olympics.

The inclusion of Mses. Saso and Pagdanganan was already known weeks prior because of their strong showing in the professional circuit.

Ms. Saso bagged the US Open championship and made history to fortify her position in the world’s top 10 while Ms. Pagdanganan is steadily competing in the Ladies Professional Golf Association Tour.

They both saw action in the recent KPMG Women’s PGA Championship in Atlanta, Georgia.

The National Golf Association of the Philippines expressed excitement over Mses. Saso and Pagdanganan and Mr. Pagunsan representing the country in the Olympics.

The local golf federation shared that said players are playing at a high level which should serve their respective campaigns in good stead.

Apart from the three golfers, Filipino athletes heading to Tokyo are pole-vaulter EJ Obiena, gymnast Caloy Yulo, boxers Eumir Felix Marcial, Irish Magno, Nesthy Petecio and Carlo Paalam, weightlifters Hidilyn Diaz and Erleen Ann Ando, rower Cris Nievarez, taekwondo jin Kurt Barbosa, shooter Jayson Valdez, judoka Kiyomi Watanabe and trackster Kristina Knott.

The Tokyo Olympics is scheduled from July 23 to Aug. 8. Golf will be played for the second straight Olympics in Japan. Golf competitions are scheduled from July 29 to Aug. 7 at the Kasumigaseki Country Club. — Michael Angelo S. Murillo

SMC sports facility turned into vaccination site

SAN MIGUEL Corp.’s newly opened sports complex in Pasig is currently being used as a venue for the group’s vaccination program.
SAN MIGUEL Corp.’s newly opened sports complex in Pasig is currently being used as a venue for the group’s vaccination program.

THE newly opened sports complex of San Miguel Corp. (SMC) is serving a new purpose for now as it has been turned into a vaccination site to augment the country’s fight against the spread of the coronavirus.

Completed in May, the facility, which is located along C-5 road in Pasig City, was recently the venue of a two-day vaccination event for employees, essential workers and extended workforce across the San Miguel Group.

SMC President Ramon S. Ang, in a statement, said the temporary conversion of their sports facility is part of their push to align their efforts to help the government during this time of the pandemic.

“Vaccinating as many Filipinos as we can is important to reaching herd immunity and getting our economy back up. That is why we have been helping our LGUs (local government units) with their vaccination rollout, in whatever way we can,” said Mr. Ang, whose group has been active in setting up vaccination sites both for the public and frontline and essential workers.

“To help decongest the city’s vaccination venues and reduce the strain on health workers, we volunteered our new basketball facility and enlisted our own doctors and nurses to help Pasig City personnel in conducting vaccination here,” he added.

The ongoing effort, SMC said, is under the company’s P1-billion “SMC Ligtas Lahat” vaccination program.

Aside from the sports facility, SMC has a vaccination site at the La Salle Green Hills campus in Mandaluyong which will be fully operational by August. It also partnered with the city to co-manage the Jose Rizal University mega site that caters to A4 category workers and city residents.

SMC is also looking at activating 14 other vaccination sites in Laguna, Cavite, Batangas, Albay, Pampanga, Pangasinan, Isabela, Bataan, Cebu, Iloilo, Bacolod, Davao, and Cagayan de Oro, once its own vaccines arrive next month.

The SMC Sports Complex is intended for use by the teams under the conglomerate playing in the Philippine Basketball Association, namely, the San Miguel Beermen, Barangay Ginebra San Miguel Gin Kings, and Magnolia Hotshots Pambansang Manok.

It has three air-conditioned main basketball courts covering a total of 5,013 square meters. It features “Regupol” rubberized basketball court flooring. Areas can be separated with an electric curtain divider. It is equipped with electric ceiling-mounted (forward folded) and fixed-wall mounted basketball systems, and portable basketball systems.

The facility also has a fitness gym with separate male and female lockers and shower rooms, as well as three viewing decks with toilets on the second floor.

“We are proud of this facility and the excellent job that our architects, engineers, and workers have put into building it and ensuring that it adheres to international standards. We are even prouder of this facility now because even though it can’t be used by the teams yet, it is serving a meaningful purpose-protecting lives during the pandemic,” Mr. Ang said. — Michael Angelo S. Murillo

GAB chairman Mitra talks pro sports at PSC sports summit

GAMES and Amusements Board (GAB) chairman Abraham Mitra is the resource person on “Professional Sports in the Philippines,” the topic for the 12th virtual session of the Philippine Sports Commission’s (PSC) national summit on Wednesday.

The GAB head will talk about directives and limitations of the agency as the government arm mandated to regulate and supervise professional sports and games, and to prevent illegal booking and gambling activities connected to any professional sports.

Mr. Mitra, who was a former legislator at the House of Representatives, is also expected to touch on their experience as part of a tripartite group, along with the PSC and Department of Health, tasked to create a joint order — Joint Administrative Order No. 2020-0001 — which governs the conduct of sporting activities, including the training resumption of the Philippine Team, during this time of the pandemic.

“We would like to thank Chairman Mitra for accepting our invitation. This is a good opportunity for our participants to have an in-depth understanding of professional sports and how it is different from what we do here in PSC for amateur sports.” said PSC Chairman William Ramirez.

The online PSC summit is aimed at taking insights of different sports stakeholders and using them as foundations in crafting a sustainable and workable short to long-term plan for Philippine sports.

The PSC said all data gathered from the web series will be processed and studied to create a new set of resolutions to be presented to sports leaders for action.

Swiss beat France on penalties to reach Euro 2020 last eight

BUCHAREST — Switzerland’s Yann Sommer saved France striker Kylian Mbappe’s penalty to secure a 5-4 shootout win over the world champions following a thrilling 3-3 draw after extra time on Monday to reach the Euro 2020 quarterfinals where they will meet Spain.

On a memorable evening for Swiss football, the so-called Nati repeatedly beat the odds, coming from 3-1 down with two goals in the final five minutes to force extra time and eventually penalties.

It was Switzerland’s first knockout stage victory at a tournament since 1938 and the first time they have made the last eight since the 1954 World Cup which they hosted. They will next face Spain on Friday in St. Petersburg.

“Honestly, I am still in shock,” said Sommer, who became the most capped Swiss keeper with 65 international appearances.

“We showed courage, heart, we left everything out there. When you come back from two goals down against the world champions it is just unbelievable, and then to win on penalties, I could not be prouder of the way we did it.”

France, who had started with an unusual three-man defense and lacked any real bite up front in the first half, looked to be heading for victory when Karim Benzema struck twice in two minutes early in the second half.

He latched on to Mbappe’s through ball in the 57th minute to cancel out Switzerland’s first-half lead from Haris Seferović’s header.

Benzema then headed home from near the goal-line two minutes later to take his tournament tally to four as France grabbed control of the game only minutes after the Swiss missed a 55th minute penalty and the chance to go 2-0 up when Hugo Lloris saved Ricardo Rodriguez’s spot kick.

SWISS COMEBACK
By the time Paul Pogba curled a sensational shot into the top corner in the 75th minute to make it 3-1 for France, who had reverted to a four-man backline in the second half, few believed the momentum could shift once more.

“Nobody believed in us anymore at that stage,” Sommer said. “But before the game, we had said no matter what happens in the game, it doesn’t matter if we’re down, or if things are going well, we play until the end.

“We felt France had become a bit complacent and maybe thought they had already won it. So we used that to our advantage.”

Seferovic sneaked into the box again to head in his second goal with five minutes left and substitute Mario Gavranović beat Lloris to snatch a 90th-minute equalizer and force extra time after France substitute Kingsley Coman’s drive hit the bar.

Olivier Giroud twice came close for France having come off the bench but the game was to be resolved on penalties where Sommer swatted Mbappe’s spot kick away after five Swiss players had scored to earn their first ever tournament shootout win.

The result means France coach Didier Deschamps will miss out on becoming the first man to win World Cup and Euro titles both as a player and a coach.

“It is my responsibility and I told the players that I assume it,” Deschamps, who won the 2018 World Cup with France, said of the shock loss.

“When France win, merit goes always to the players. When things are less good, then it is my responsibility. But that’s the way sport is. You have to accept it even if it hurts.” — Reuters

Tiafoe stuns third seed Tsitsipas in opening day shock

LONDON — American Frances Tiafoe caused the first big upset of the Wimbledon men’s singles tournament by beating third seed Stefanos Tsitsipas (6-4, 6-4, 6-3) on Monday.

Tsitsipas, playing his first match since his French Open final defeat by Novak Djokovic on June 13, was on the backfoot from the beginning against a 57th-ranked opponent who took the game to him.

The Greek also went out in the opening round on his last previous appearance at the grasscourt tournament in 2019, when he was seventh seed. Wimbledon was not played last year due to the COVID-19 pandemic.

“It sounds pretty damn good,” Tiafoe told the cheering 6,000 strong Court One crowd, sheltered by a roof from the drizzle outside, as the result was read out.

“Definitely, one of my best (matches). From start to finish, it was pretty clean.

“This is what you train for, this is what it’s all about. I live for these kind of moments. If you’d seen me on the sidecourts, you might have seen a different performance today but I love this… got to make something good happen.”

Tiafoe broke serve in the opening game and it set the tone for a match in which Tsitsipas, who had said at the weekend that he was feeling more confident on grass, showed only occasional flashes of brilliance.

He failed to convert any of his six break points.

Tiafoe went 5-4 up in the second set, after Tsitsipas saved two break points, and held his nerve when the Greek had three chances to break back.

The American broke serve again at the start of the third set, saved two break points and then had three match points on Tsitsipas’ serve to wrap things up in just over two hours. He did it on the third as Tsitsipas netted a backhand.

“I’ve made a ton of changes and I’m trying to just move the right way. Obviously, I’m not even close to where I want to be,” said the 23-year-old Tiafoe of his performances to date. “I haven’t even scratched the surface.

“Today was big. I definitely needed that. That guy’s special, he’s going to do a lot of great things… but not today.”

Tsitsipas still has the doubles to play with his younger brother Petros.

Tiafoe’s next opponent will be Spain’s Roberto Carballes Baena or Canadian Vasek Pospisil. — Reuters

Scottie Pippen accuses Phil Jackson of being racist

BASKETBALL Hall of Famer Scottie Pippen on Monday accused his former coach Phil Jackson of being a racist.

While appearing on the Dan Patrick Show, the Chicago Bulls great followed up previous comments he made about Jackson during a recent GQ interview.

Pippen, 55, referenced a play in the latter stages of Game 3 of the 1994 Eastern Conference semifinals when the Bulls opposed the New York Knicks. Jackson drew up the final shot for then-rookie forward Toni Kukoc, who is white, as opposed to Pippen, who infamously refused to reenter the game.

“By saying a racial move, then you’re calling Phil a racist,” Patrick said to Pippen.

“I don’t got a problem with that,” Pippen said.

Patrick responded, “Do you think Phil was or is (a racist)?”

“Oh yeah,” Pippen said.

Pippen didn’t let it end there.

“Why would Toni, who was a rookie, get the last-second shot and you put me out of bounds? That’s what I mean racial,” Pippen said.

When Patrick suggested that a design for a last shot may not define Jackson as a racist, Pippen responded: “Well, that’s your way of putting it out, and I have my way. I was in the locker room with him. I was in practices with him. You’re looking from afar.”

Kukoc hit the shot that won the game for Chicago.

Pippen also took issue with Michael Jordan, his longtime Bulls teammate who left the team to play baseball following the 1992-93 season.

“Yeah, it was a big decision, but it was a selfish decision, but it was kind of who Michael Jordan was,” Pippen said. “That was a guy who believed he can do anything on his own.”

Pippen was a seven-time All-Star who won six NBA championships alongside Jordan in Chicago. Jackson was in charge of the Bulls for the entire run. — Reuters

Suiting up

As sure as night follows day, Trey Young will suit up in the Hawks’ match against the Bucks tonight. It doesn’t matter that a magnetic resonance imaging scan he underwent after Game Three of the Eastern Conference Finals revealed a bone bruise in his right foot. He may be listed as questionable, but it’s also the condition of the red and yellow heading into the pivotal set-to. Absent his unique shot- and playmaking prowess, they don’t stand a chance.

To be sure, the Hawks looked well on their way to victory the other day. Empowered by a capacity crowd of 16,650 at the State Farm Arena, the hosts started strong and needed all of the first three and a half minutes of the set-to to erect a double-digit lead. And though the Bucks would eventually claw back and stay close, they appeared to have the capacity to dictate the pace and thereby keep the momentum — until, that is, Young suffered from a sprained ankle off a freak turn of events with 36 ticks left in the third quarter. He was backpedaling out of bounds after the ball was stolen from him when he stepped on the foot of referee Sean Wright, in his words a “freaky bad accident.”

Nonetheless, the unforeseen development proved to be the difference for the Hawks; then up by three, they found themselves outscored by 14 the rest of the way. Meanwhile, Young, missing what he termed his “blow-by speed,” could do no better than score three points on one-of-four shooting in the span; just as crucially, he had zero assists along with a foul and a turnover in a minus-15 line over the last eight minutes and 44 seconds of the contest. In other words, the sprained ankle made him mortal. Before it slowed him down, he had been good for 32 markers (on 11-of-19 shooting from the field) and four dimes.

Which, in a nutshell, is why Young will not be missing tipoff of Game Four. He’s not one of the toughest players in the National Basketball Association for nothing, and he knows the Hawks need him on the court for them to at least have a fighting chance against the powerhouse Bucks. How well he does may be in question, but this much is clear: Hurting or not, he won’t not try.

 

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

Addressing the Philippine education crisis

BW FILE PHOTO

Part 2

Even before the pandemic, there were worrying signs of an education crisis in the Philippines. The most widely disseminated news about the crisis came from a report of the Program for International Student Assessment (PISA) of the Organisation for Economic Co-operation and Development (OECD) in 2018 which showed Filipino students ranking the lowest among 79 countries in mathematics, science, and reading. In math and science Filipino 15-year-old students obtained 353 points and 357 points, respectively, against the 489 OECD average for both categories. The OECD 2018 PISA Country Note for the Philippines stated: “Fifteen-year-old students in the Philippines scored lower in reading, mathematics, and science than those in most of the countries and economies that participated in PISA 2018… No country scored lower than the Philippines and the Dominican Republic… Over 80% of students in the Philippines did not reach a minimum level of proficiency in reading, which is one of the largest shares of low performers amongst all PISA-participating countries and economies.” These tests started to be administered in 2000 and are repeated every three years. In the 2018 tests, the Philippines ranked second to the last (Dominican Republic) in math and science. In reading it ranked last.

In another international test, the 2019 report of the Trends in International Mathematics and Science Study (TIMMS), our Grade 4 students obtained the lowest scores in mathematics and science among the 58 countries involved in the study. There was a clear deterioration from 2013 to 2019. The Philippines scores decreased by 61 points (from 358 in 2003 to 297) and by 83 points (from 332 in 2003 to 249) in mathematics and science achievement, respectively. A third international test, the Southeast Asia Primary Learning Metrics (SEA-PLM) Program 2019 Main Regional Report revealed that only 10% of our Grade 5 students met the proficiency standards of reading, 2% writing, and 17% in mathematics. The same report showed that more than half of our Grade 5 students are taught by teachers who got training in the language of instruction from in-service trainings or none at all.

It is reasonable to expect that this poor performance of Filipino students will be exacerbated as a result of the public health emergency during the ongoing pandemic. Under the new normal, the many lockdowns have resulted in zero face-to-face interaction, and students have been forced to rely on learning materials to continue their education. This has resulted in a learning crisis in which poor content quality in modules and distance learning materials are prevalent. Because of widespread loss of employment and decreased incomes, especially among the C, D, and E households, some 2.7 million pupils have dropped out of school. Among those who have managed to continue schooling, a big number have no access to learning devices necessary for online instruction. To make matters worse, public expenditures on education and training have suffered budget cuts as these compete with health needs.

In a report to a joint committee of members of the Philippine Business for Education (PBEd) and some legislators, former Secretary of Education Armin Luistro painted a bleak picture of our pupils enrolled in basic education. Among learners, 52% are in poor health, 44% suffer from insufficient nutrition, and 37% lack sleep. In September 2020, during the height of the pandemic, 30.7% suffered from hunger. There are 1.9 million pupils who are wasted and 309,000 severely wasted. Among the learners, 65% are bullied, 26% are lonely, and 20% are unsafe. As regards the quality of teaching, 40% are absent teachers and 35 to 60% delay their classes. Because of paucity of learning materials, 20% of the pupils have to share textbooks.

These serious challenges to learning among our youth can be partly explained by the inadequacy of public expenditures on education. PISA estimates that government spending per learner in the Philippines is just 10% of the OECD average. In 2020, spending on education was 13.5% of the government budget, down from 17% in 2017. The ideal percentage is 20%. Among our peers, such as Thailand, Vietnam, and Malaysia, the equivalent percentage is over 20%. As regards spending on education as a percentage of GDP, the Philippines also lags behind our East Asian neighbors which spend five to 10% of GDP on public education, compared to our 3%. It is hoped that the increase in the incomes of the LGU units of some P225 billion in 2022 as a result of the Mandanas ruling will be substantially channeled to public education.

To be realistic, it will take herculean efforts for the Government to reach levels of expenditures on public education that approximate those of developed countries and even our East Asian peers. After all, quality education is just fourth in priority among the so-called Sustainable Development Goals (SDGs).

The first is No Poverty. The second is Zero Hunger. The third is Good Health and Well Being.

Quality Education is fourth.

It is understandable that more of the government’s limited budget will go to address the first three priorities. The most direct solution to poverty is investing more in agricultural and rural development, which also addresses the No Hunger goal if agricultural productivity is increased significantly through providing small farmers with more farm-to-market roads, irrigation systems, post-harvest facilities, and all the resources they need to get more productivity from their small holdings. Because of the experiences during the pandemic, it is reasonable to expect that expenditures on health will for the immediate future be given priority over education. It is, therefore, imperative that the Government mobilize the private sector to invest heavily in education.

What the Bureau of Internal Revenue (BIR) just did through RR 5021 is manifestly counterproductive. I fully agree with Senators Sonny Angara and Ralph Recto that the BIR made an erroneous interpretation of the CREATE bill by increasing the income tax rate on so-called propriety educational institutions that are run by stock corporations to 25% from the current 10%.

Private educational institutions, whether not-for-profit or for-profit, are providing what is known in economic parlance as a “public good.” When they educate an individual, they are not just benefiting the pupil or student but the whole of society. Education has significant external economies, that is, benefits to the entire society over and above the good done to the individual consumer of the service. In the language of the millennials today, we should consider an educational institution organized for profit as a “social enterprise.” Those who put up a for-profit educational institution are benefiting society in the same say that a non-profit school or university is doing. The only difference is that the former has a more practical way of sustaining its existence by generating some profit.

Those of us who put up not-for-profit schools have to be forever begging and soliciting donations, which eventually will cut down the taxes collected by the Government since most of these donations are tax deductible. There is also no guarantee that the not-for-profit institutions can sustain their operations by being completely dependent on the generosity of donors. The for-profit educational institutions make a significant contribution to society by delivering a public good in a sustainable way. They do this by generating some profits for the stockholders. In a society like the Philippines in which the Government is always short of funds to deliver public goods like public works, public health, and public education, the finance authorities should refrain from taxing schools organized for profit. In fact, I would even extend this reasoning to for-profit hospitals and other medical facilities, especially if they devote part of their facility to charity wards. These social enterprises are just taking the place of the Government that is unable to deliver all the public goods it has the obligation to provide to the general population.

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

Stepping up pandemic response and sustainability in mining communities

DAVID HELLMANN-UNSPLASH

The COVID-19 pandemic induced the sharp decline in economic activities that crippled businesses, widened our pre-existing social inequalities, and inflicted hardship on the most vulnerable. Despite these, the pandemic also presented an opportunity to assess untapped resources that can be harnessed to move forward sustainably and inclusively.

Before the pandemic, businesses had already reinvented themselves to better balance economic goals and prevailing issues such as public health, climate resilience, and environmental stewardship. Amid the pandemic, businesses have gone beyond their core operations to provide unsolicited assistance to the most vulnerable communities of the country.

In remote and isolated areas, the Philippine mining industry’s COVID-19 responses have been quick and impactful. The mining companies’ deep-rooted relationship with the members of the communities, as well as their financial capabilities and technical expertise, enabled immediate and effective action on their communities’ concerns.

On public health, large-scale metallic mining companies swiftly realigned their funds and spent over P380 million in COVID-19 responses last year, benefiting over 1.1 million households and nearly 300,000 frontliners all over the country. The companies also constructed new or repurposed their existing facilities to serve as isolation and treatment areas.

For example, Philex Mining Corp. (PMC) and its subsidiary Silangan Mindanao Mining Co., Inc. (SMMCI) supported the communities and local government of Benguet and Surigao del Norte, respectively. The companies supplied much-needed medicines and financial assistance to community members and employees. Similarly, to aid medical frontliners, personal protective equipment or PPEs were given to different local hospitals of Benguet, Baguio, and Surigao del Norte.

In Nueva Vizcaya and Quirino, despite being non-operational since July 2019, OceanaGold Phils., Inc. built a P10.8-million first-class isolation facility that can accommodate multiple people. The facility comes complete with medicine for patients with respiratory problems and equipped with oxygen and rapid antigen test kits.

Similarly, Nickel Asia Corp. (NAC) and its affiliates Cagdianao Mining Corp. (CMC) and Taganito Mining Corp. (TMC) donated P18 million to the Philippine National Red Cross to build a molecular testing laboratory in Caraga. TMC also donated some rapid anti-body test kits (RATs) to help detect COVID-19 cases in Surigao del Norte.

To boost the national and local government’s COVID-19 vaccination programs, mining companies will also procure the vaccines, not just to employees, but also for their host and neighboring communities of their mining sites, all of which are in remote areas.

Mining companies did not only provide appropriate health protection to their employees and communities, but also provided aid to the local governments in laying and implementing the necessary steps to ensure their long-term sustainable economic recovery.

On the environment, through the Chamber of Mines of the Philippines’ (COMP) adoption of the Toward Sustainable Mining (TSM) principles and practices, mining companies address the concerns on environmental rehabilitation and conservation. TSM is a set of tools and indicators to drive performance and ensure that key mining risks are managed responsibly. It also aims to enable mining companies to meet society’s needs for minerals, metals, and energy products in the most socially, economically, and environmentally responsible way.

As frontliners in magnifying the need to rehabilitate and restore the forest, the mining sector, through the Mining Forest Program, was able to plant 36.87 million seedlings in mined-out and other areas as of May 31, 2020, and this is with an impressive survival rate of 91.58%.

On climate resilience, Filminera Resources Corp. and PhilGold Processing and Refining Corp. distributed food to almost 400 families in Masbate who were among the hardest hit by typhoons Rolly and Ulysses. The companies also donated P5 million to help rebuild damaged houses and distribute relief goods following the 6.6 magnitude earthquake in Masbate.

On development, the mining sector provides underdeveloped areas an opportunity to prosper in a new environment that benefits all linkages needed to support mining projects. Mining investments create a multiplier effect that cascades to the national and local economies in terms of taxes, infrastructure development, employment, and linked industries. Taken together, they can certainly make a serious dent in the government’s poverty alleviation agenda.

In fact, in 2016, data from the American Chamber of Commerce of the Philippines, shows that pending foreign direct investments (FDI) for mining in the Philippines amount to a total of $23 billion. Notably, these investments are in far greater number than the 2017 FDI of $10.26 billion, 2018 FDI of $9.95 billion, and 2019 FDI of $7.65 billion.

Now, with the lifting of the moratorium on mining permits, we are one step closer to effectively reaping the untapped economic potential of the country’s vast mineral endowments. However, to fully achieve this and attract worthy investments, the mining industry must adopt, in full-scale, the TSM. At the same time, inconsistent and ambiguous regulatory hindrances such as the open-pit mining ban, a misguided policy that is not supported by science, should be resolved. It is also imperative that the legitimate mining industry, despite being unfairly suppressed for decades by an unstable policy regime, go beyond their mandated responsibilities and practically becomes the government’s proxy in developing infrastructure and eventually a thriving mining community where there was zero economic activity. Definitely, there is a need for a balanced partnership between the government and the mining sector, a strategy that would reflect on a more equitable, inclusive, and sustainable future.

 

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