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Davao Oriental signs P296.5-M bulk water supply deal with Mactan Rock

THE DAVAO Oriental provincial government has signed a P296.5-million bulk water supply project with Mactan Rock Industries, Inc., which will address demand for the capital Mati City.

Mactan Rock Industries, a Cebu-based water management firm, was the sole bidder for the project, the provincial government said in a press statement.

The project “poised to address the lack of water supply in the City of Mati is set to start within the next few days,” it said.

The bulk water system will use both surface and groundwater and will be set up along the Mayo River.

It will supply 11 of the city’s 26 villages, namely: Mayo, Don Salvador Lopez, Don Enrique Lopez, Don Martin Marundan, Dahican, Bobon, Tamisan, Lawigan, Matiao, Central and Sainz.

Governor Nelson L. Dayanghirang said he initiated the project “a few years back” to address water supply problems in the growing city.

“The big-ticket water project is also a significant boost to investments in the province as it will attract even more tourism-related investments in the city,” he said.

The provincial government said the project is designed to be sustainable, ensuring a balance between providing sufficient water supply to Mati City and protecting natural resources. — MSJ

Private-public partnerships sought to strengthen healthcare system

THE PHARMACEUTICAL and Healthcare Association of the Philippines (PHAP) has named Diana M. Edralin as its new president.

In a statement on Thursday, PHAP announced that Ms. Edralin has replaced Beaver R. Tamesis, who will now be the group’s chairman emeritus after serving as president for six years.

Ms. Edralin previously held leadership positions at pharmaceutical firms such as AstraZeneca, Eli Lilly and Novo Nordisk.

“We have witnessed that the health of the nation is crucial to its social and economic progress. Due to its wider implications, health should be prioritized. Public and private investments and collaborations to strengthen the healthcare system will be crucial as we navigate our way out of the pandemic, and prepare for any future health concerns,” Ms. Edralin said.

“As a science-driven organization, we are in unique position to partner with the government and the nation to ensure that innovative and life-saving medicines and vaccines are available to Filipino patients at the time they are needed,” she added.

Further, Ms. Edralin said the group will work on the introduction of new medicines in the country to improve the health of Filipinos, citing lessons learned from policies formed during the coronavirus pandemic.

“First, regulatory processes can be accelerated without compromising the high standards set by the government. Second, the government can centralize the procurement of medicines and vaccines to secure supply, and make these available for free or at lower prices,” she said.

“And third, the continued open collaboration between the public and private sector can save more lives and eventually kickstart economic recovery.”

Other members of the PHAP board are: Vice President Janette Jakosalem (Market Managing Director, Zuellig Pharma Philippines); and trustees Yee Kok Cheong (General Manager, Boehringer Ingelheim Philippines); Melissa Comia (General Manager, Abbott Philippines); Lotis Ramin (President, AstraZeneca Pharmaceuticals Phils.); Ken Saito (President and General Manager, Otsuka Philippines Pharmaceutical, Co.); Jugo Tsumura (President and Managing Director, Novartis Healthcare Pharmaceutical, Inc.); and Teodoro Padilla (Executive Director, PHAP). — Revin Mikhael D. Ochave

Quezon rep vows to push for free medical education law

QUEZON 4th District Rep. Angelina D.L. Tan, who is running for provincial governor in the May elections, on Thursday said she will ensure improved delivery of medical services in the province, citing a continued health-focused governance agenda

“This is why I am pushing for the College of Medicine (and) the Doctor Para sa Bayan Act. This is what our actions will be anchored on, its implementation.” Ms. Tan said in a radio interview.

The Doktor Para sa Bayan Act or Republic Act No. 11509 directs universities to help the government provide one doctor per community through scholarship grants.

Ms. Tan cited that a P100-million fund has been allocated in this year’s national budget for the establishment of the College of Medicine in Southern Luzon State University (SLSU), where medical students can study for free.

“We were able to ask for funds for the building that will be used here in SLSU for the College of Medicine. Luckily, this year, 2022, in the GAA (General Appropriations Act), they gave an initial fund worth P100 million,” she said. — Jaspearl Emerald G. Tan

CHR urged to help find missing peace consultants

A HUMAN rights group on Thursday appealed to the Commission on Human Rights (CHR) to help search for missing peace consultants who were allegedly abducted in Davao del Norte.

“We call on the Commission on Human Rights to help the families of the peace consultants and their companions to search military camps, police stations, and safehouses to ensure that they are alive and are accorded their rights,” Karapatan Secretary General Cristina E. Palabay said in a statement.

Karapatan said one of the peace consultants of the National Democratic Front of the Philippines (NDFP) was on his way to a banana plantation in Davao del Norte to look into the situation of workers and farmers in the afternoon of Mar. 7 when he disappeared. The other NDFP consultant was reported to have been approached by military personnel on Mar. 8. The two have yet to be located by their respective families.

“Our people deserve genuine peace. These attacks not only spoil efforts to advance just peace but instead perpetuate militarism, violence, and injustice,” Ms. Palabay said. — John Victor D. Ordoñez

A betrayal of hope and possibilities

COURTESY OF THE AUTHOR

It was the reunion of the 40 surviving members of the 1971 Constitutional Convention (ConCon) at the Manila Hotel on March 19. Originally, there were 320 of them. Fifty years after crafting the third Philippine Constitution (PhilCon), the delegates chose to write and launch their book, A Legacy of Hopes and Possibilities. In their late 70s and 80s, this book could very well be their swansong.

But both the 1971 ConCon framers and their output, the 1973 PhilCon, are in many ways different from their predecessors.

The first Philippine Constitution of 1899, also known as the Malolos Constitution, was cast to flesh out the Filipinos’ aspiration to be independent from Spain. It was necessary to guide the First Philippine Republic. Drafted by a committee, it was subsequently ratified by delegates both elected and appointed by President Emilio Aguinaldo during the Malolos Congress.

With a fundamental law of the land that created the three branches of government, and a defined territory under the authority of a government supported by a revolutionary army, the First Republic of the Philippines was born.

It did not last long.

Spain lost the war with the US and ceded the Philippines to Washington following the December 1898 Treaty of Paris. The Filipinos, having declared independence six months earlier, refused to recognize the US, which, in turn, also rejected the revolutionaries’ independent posture. War was inevitable and the US suppressed protracted Filipino resistance.

The second PhilCon that was ratified in 1935 was formulated in a period of relative peace to prepare the Philippines for self-rule. An Insular Government had been installed a few years after the US-Philippine war ended, and Filipinos were gradually given more access to the three branches of government. This was effectively appeasement to buy peace.

It was the Tydings-McDuffie Act or the Philippine Independence Act of the US Congress that established the process to take place after a 10-year transition period. With 202 elected delegates, the 1934 ConCon drafted a constitu-tion that established a political system similar to that of the United States. In 1946, the Philippines became an independent republic.

As clarified by former Supreme Court Chief Justice Hilario Davide, Jr., the main speaker at the book launching, there was “a short-lived pseudo-Constitution” during the Japanese occupation of the Philippines in 1942-45. For legitima-cy, a constitution could be good optics for a puppet government.

From 1946 through the 1960s, at least two presidents, Diosdado Macapagal and Ferdinand Marcos, expressed the need to amend the 1935 Constitution and strip it off what Delegate Pablo Trillana III called “vestiges of its colonial past.” Congress subsequently enacted RA 6132 calling for the conduct of the 1971 Constitutional Convention which, to Trillana, involved a reframing of the Constitution “at the cusp of two eternities — the vanished past and the uncertain future.”

The 1973 Constitution was different from both the Malolos Constitution and the 1935 Constitution. There was no more revolution to adjust to, or the need to demonstrate our capacity for self-rule. There was a complete blank sheet to chart our destiny as Asia’s first Republic.

In many ways, the 1973 Constitution was indeed the product of independent minds. Its preamble emphasized that Filipinos were sovereign and independent, and their desire for a government that upheld the blessings of democracy with justice, peace, liberty and equality. It expanded the Philippine territory beyond what Spain ceded to the United States, to include the whole archipelago including the waters around, between, and connecting the islands irrespective of their size, that constituted the internal waters of the country. As BizNewsAsia’s Antonio Lopez commented, the 1973 Constitution antedated the 2009 nine-dash line submission by China to the United Nations of its territorial map.

The 1973 Constitution defined for the first time who are natural born Filipinos. Unlike its predecessor, it also provided for the Duties and Obligations of Citizens. Delegate Richard Gordon, the youngest at 25 then, quoted the specific article in the book, that required the citizens to be loyal to the Republic, exercise their rights responsibly, engage in gainful employment and exercise their right of suffrage. The 1987 Constitution deleted this portion.

Accountability was introduced for the first time in the 1973 Constitution. Anti-graft concerns led the ConCon delegates to create the Tanodbayan and the Sandiganbayan to ensure corrupt practices are dealt with expedi-tiously.

Many other features distinguished the 1973 Constitution.

The book dedicated several chapters to show them including the reduction of the voting age from 21 to 18, and in the process, expanding the electorate; adopting both English and Filipino as official national languages; and expansion of provisions on social justice.

On his reflection on the economic provisions of the 1973 Constitution, Delegate Gary Teves admitted that the “slogan ‘Filipino first’ resonated with many delegates and policy makers” then. He cited various conditions that “pointed to the conclusion that we did not have a severe need for foreign investments to supplement our domestic capital.” Thus, the fundamental law of 1973 turned out to be restrictive of foreign investment during this time of globalization and open markets. In hindsight, Teves would like more flexibility given to Congress to adjust economic policies as circumstances change.

Finally, judicial reforms were introduced in the 1973 Constitution including the Supreme Court’s new power to dismiss judges and to make temporary assignments to other stations with their consent, and limiting appoint-ment to the judiciary to natural-born Filipino citizens.

As Delegate Ricardo Quintos, lead convenor of the 1971 ConCon@50 and Legacy Book publisher, so elegantly put it, “the spirit and bloodlines of the Convention must be expressed through the horizons of history.” He re-ferred to the facts of history. The delegates were elected in the cleanest and fairest election in history. They came of their own accord to brainstorm on their vision of the future prior to the Convention. The delegates sustained their work despite the imposition of martial law in September 1972 with all its threats to life and liberty. It has served to provide the basis of many court rulings and the 1987 Constitution. To him, this is the 1971 ConCon’s leg-acy of hope and possibilities.

Unfortunately, such a legacy was sabotaged by President Marcos himself. Delegate Leandro Garcia in the book called it “trickery.” Marcos allowed the ConCon to continue with its work because the “whole structure of the political framework was almost finished.” In fact, two months after martial law was declared, the final draft was already approved by the Convention.

But the so-called Transitory Provisions were inserted. Section 3 of Article 17 provided that “the incumbent president of the Philippines shall initially convene the Interim National Assembly and shall preside over its sessions until the interim speaker shall have been elected.” Marcos was also granted the same powers and prerogatives under the 1935 Constitution as well as those vested in both the president and the prime minister envisioned in the 1973 Constitution until the Interim National Assembly was called.

The Interim National assembly was never convened.

Introducing amendments to the Constitution, Marcos replaced the Interim National Assembly with the Batasang Pambansa and chose its composition from his own cabinet. Despite the activation of the legislature, Marcos contin-ued to exercise the powers of both the president and the prime minister. He called for an election in 1981 after martial law was lifted yet upon winning the election, he continued to rule as president and exercised the powers vested in the prime minister.

According to Gordon in his prologue, “presidential intervention may be assumed in any constitutional exercise and presidential influence can be overwhelming and formidable. It all came to a head when the elderly Delegate Eduardo Quintero … fearlessly exposed that there were special envelopes containing cash given to certain delegates by agents of the Palace, mostly delegates from Leyte.” Gordon himself was threatened with bodily harm. Dele-gate Davide called it the martial law regime of terror and greed.

If the first two sets of framers of PhilCons did their architecture during a war of liberation and a war for self-government, the 1973 ConCon delegates had actually seen the face of terror and greed. It was Marcos’ one-man rule that betrayed their legacy of hope and possibilities.

But they should know that they have a more enduring legacy. Their legacy has lived on in the 1987 Philippine Constitution, and perhaps in future reframing of our Constitution.

In the same reunion and book launch, emceed by Delegate Lilia de Lima and Delegate Jose Leviste, Jr., the 40 surviving delegates decided to leave another legacy. They decided to uphold the governance principles of honesty and integrity, competence and servanthood, in the coming May 2022 election. They endorsed Vice-President Leni Robredo for President.

The book is hardly their swansong.

 

 

DIWA C. GUINIGUNDO is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years.

In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC.

He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Media policy as election issue

MACROVECTOR-FREEPIK

During a May 31 press conference after the 2016 campaign for the Presidency of this endangered republic, a reporter asked President-elect Rodrigo Duterte his views on the killing of journalists, which among other con-sequences had led the US-based press freedom watch group Committee to Protect Journalists (CPJ) to describe the Philippines as “the most dangerous place in the world to practice journalism.”

Mr. Duterte not only practically justified the killings by saying that those killed “did something wrong,” he also implied that all the broadcasters and print journalists killed in the rural areas were corrupt, despite research findings that only 10% of them had ever been so accused, while some 90% were exposing official corruption and/or local criminality.

Mr. Duterte’s declaration turned out to be indicative of what has since been his repressive press and media policy. Over the past six years of his troubling watch, he has caused the shutdown of the ABS-CBN network, the withdrawal of the Securities and Exchange Commission (SEC) registration of the Rappler news site and the persecution and harassment of its staff, and the banning of journalists from covering his Office as well as public events in which he is present, while his military and police minions “red tag” and arrest on fabricated charges media practitioners he does not approve of.

Deny it as many journalists will, these attacks have dampened the media’s essential role of monitoring government and holding it to account. And even that most fundamental media responsibility of all — providing their audiences the information they need — has also suffered.

Not only is it because the shutdown of ABS-CBN has denied the communities it used to serve such vital information as the imminence of volcanic eruptions and typhoons, it is also because much reporting has fallen into simply quoting this or that source without analysis or interpretation — officially so as not to appear biased, but in reality, in fear of persecution.

Equally distressing is the flagging interest of some media organizations in asking the hard questions that journalists have to ask of the powerful and those aspiring for public office, and even in fact-checking their claims.

Two recent incidents come to mind. The Senate Committee on Electoral Reforms was appraised during a hearing on March 9 by, among other groups, the National Movement for Free Elections (Namfrel) and the Parish Pas-toral Council for Responsible Voting (PPCRV) that the Commission on Elections (Comelec) stopped them from entering the National Printing Office (NPO) where ballots for the 2022 elections were being printed, and the Come-lec warehouse in Laguna in which vote-counting machines are stored. Journalists were similarly excluded.

Only four online media organizations reported the hearing. Neither print nor radio and TV did. Only later did one broadsheet report the absence of witnesses to the printing of ballots. It was followed by other print and TV organizations nearly a week after the event, on March 15. Only then did the Comelec allow media and election watchdog groups into the NPO after allowing access to its Laguna warehouse the day before, on March 14.

The question this incident provokes is why only a handful of online media organizations reported the Comelec breach of the Omnibus Election Code. One possible answer is the hesitancy of some media organizations in call-ing attention to, and being critical of, “untouchable” government agencies whose members are so evidently well connected they are unlikely to suffer any consequences for even their most egregious offenses.

Almost at the same time that all this was happening, some media organizations replicated the claim of one broadsheet that half a million (!) people attended the March 13 Marcos Junior-Sara Duterte rally in Las Piñas, a claim the Marcos-Duterte camp attributed to the local police, which, however, denied making that estimate, and said that only some 18,000 were in attendance in that rally. But two online news sites nevertheless repeated in their reports the same 500,000 figure, while another broadsheet did the same.

In addition to the possibility that what makes such bad reporting possible is the total absence of the skepticism journalists are supposed to have a healthy dose of — “Half a million? Really?” — is the suspicion that there are under-the-table “arrangements” between some media organizations and the more moneyed candidates to make the latter look more popular than their rivals.

But it is also one more indication of the disturbing development in some media sectors of the mindset that even if something seems wrong, there isn’t much sense in looking into it because doing so will most likely get one and one’s media organization into trouble.

Evident is the need for all this to change by restoring the democratic space — and the focus on the principle of doing the right thing as an ethical and professional responsibility — that would encourage all media practition-ers to be as thorough in their roles as government watchdogs as their colleagues who, despite tremendous difficulties, are trying their best to provide the citizenry both the relevant information and analysis these times need.

An administration committed to the defense and enhancement of that space, of which free expression and press freedom are primary elements, can help do that — with, however, the involvement of both the media themselves and the citizenry. But glaringly absent in the current election campaign is any mention of the media as an election issue. No journalist or media organization has asked the candidates, whether for President, Vice-President, Senator, Congressperson, or Party-List Nominee what their policies on the media are or would be once they are elected to the posts they are running for.

No one has even raised, as did that journalist in 2016, any question on this or that candidate’s views on the continuing killing of journalists, the answer to which could provide a clue today, as it did then, on the candidate’s attitude towards, and what could therefore be his or her policies on, the press and media.

The media should raise such questions now, before the May elections, so the candidates can reveal in their platforms of governance whether they intend to honor and respect, to even enhance through words and deeds, the rights to free expression and press freedom the Constitution guarantees and protects — or, for those tyrannically inclined, whether, a la Rodrigo Duterte, they will ignore and even undermine those rights once they are in pow-er.

From the mid-1960s until 1972 when the Marcos dictatorship shut them down, not only the magazines but also some broadsheets were providing in-depth pieces on the most urgent political, social, and other issues the Fili-pino nation had to contend with. But almost on the eve of the declaration of martial law, then Philippines Free Press editor Teodoro M. Locsin, Sr. described the Philippine press as “cheap” rather than free.

He was not referring to all of the media, and neither was he describing only how cheaply some of its sectors could be bought, but also how even those others aware of the value of truth-telling to people’s lives could be har-assed and threatened into silence by an administration focused on keeping itself in power through any and whatever means including repression.

It is to preclude the election of another such regime that the entire country needs to hear what their media policy is or will be from the candidates vying for public office, most specially the Presidency. Make no mistake about it, every last one of them including the most mindless has one.

 

LUIS V. TEODORO is on Facebook and Twitter (@luisteodoro).
www.luisteodoro.com

The utter inutility of mandatory mask wearing

HELLO-I-M-NIK-UNSPLASH

Had a friend that recently took a plane trip. Finally being able to sit down after going through the interminable boarding procedures, lengthened by even more inane COVID-19 protocols, a stewardess approached her and told her to put on her mask.

Why? Because some guy, 30 feet away, said he was uncomfortable seeing her bare face. My friend argued back saying the request was ridiculous, particularly as everybody had to take off their masks anyway during the flight when the meals are served.

And she’s right: public mandatory mask rules are deranged and absurd.

Science bears this out: “The only two sizeable studies evaluating masks in the context of COVID-19 failed to demonstrate statistically significant reductions in confirmed viral transmission either for surgical masks (one study) or for cloth masks (the other).

“The first study, conducted from April to June 2020 in Denmark, found that 42 (1.8%) of 2,392 subjects provided with more than four dozen three-layer surgical masks reported SARS-CoV-2 infection, versus 53 (2.1%) of 2,470 in the con-trol group. That is a difference of only 0.3%, which is not statistically significant (p = 0.38). Although adherence to masking instructions was imperfect, an analysis of only those self-reporting that they did adhere to the protocol also failed to find a benefit.

“A much larger study in Bangladesh examined the ability of masks to reduce community-wide infection rates, including as source control. Six hundred cluster-randomized villages were studied between November 2020 and January 2021.” Again, the findings indicate that mask mandate benefits were practically non-existent. “Also of interest, five-month follow-up surveillance revealed that proper mask use dramatically declined within intervention villages from approximately 28% to 14%, raising questions about long-term feasibility.” (See “How Effective Are Cloth Face Masks?,” Cato Institute, Winter 2021/2022, http://bit.ly/CATO_FaceMasks; see also “Modeling the filtration efficiency of a woven fabric: The role of multiple lengthscales,” De Anda, Wilkins, et al., AIP Physics of Fluids, March 2022, http://bit.ly/AIP_FaceMasks)

And varied country experiences corroborate the foregoing: South Korea, New Zealand, Japan, Hong Kong, Scotland, and New Mexico and Los Angeles in the United States all saw COVID cases rise following the strict applica-tion of mask mandates. On the other hand, England, as well as Texas, Iowa, and Florida saw cases either maintained or lowered upon the lifting of mask mandates.

For more detailed information on the insanity of mask mandates, Ian Miller’s book, Unmasked: The Global Failure Of COVID Mask Mandates (Post Hill Press, January 2022) is a very good resource.

In fact, masks could actually be doing more harm than good. And this is contrary to those saying that nobody knew of this at the pandemic’s beginning. The Federalist already reported back in November 2020 (“Many Studies Find That Cloth Masks Do Not Stop Viruses Like COVID”) that:

“‘Maskne,’ face rashes, ‘mask mouth,’ and sore throats point to bacteria building up in masks due to the humid, stagnant air and changes in the oral microbiome, which can cause systemic inflammation and downstream disease. A 2015 study found that healthcare workers who wore cotton face masks suffered from significantly more respiratory illness than those who wore surgical masks.

“Previous research conducted by Fauci himself found that the main cause of death in the 1918 Spanish flu pandemic was from bacterial pneumonia. Inhaling higher bacterial counts with every breath sounds like an especially bad idea.

“The WHO specifically recommends against wearing a mask while exercising because ‘masks may reduce the ability to breathe comfortably. Sweat can make the mask become wet more quickly which makes it difficult to breathe and promotes the growth of microorganisms.’”

Of course, pro-maskers regularly bring this up: “If face masks weren’t effective, then why do doctors wear masks when performing surgery?”

The problem with this “argument” is that public settings are obviously not operating rooms. Doctors wear face masks in the operating room’s sterile environment because of the necessity to protect the cut-up patient who now has an open wound that could easily get infected by germs from the doctor’s mouth and nose. Another reason, though secondary, is to protect the doctor from possible splashes when he is cutting up the patient.

And yet this is not the situation being contemplated in relation to mandatory mask requirements with the ostensible objective of controlling COVID-19 spread: the general public’s lack of training with regard to mask-wearing, the feasibility of long-term mask-wearing, the quality and cleanliness of the masks, the extent to which masks can actually stop transmission from one person to another, the physical closeness of people to each other (including population density of the areas involved), air circulation quality, and so on are all clearly different to the circumstances inherent in an operating room.

The point is that, like vaccination, mask wearing should be an individual decision based on personal responsibility. But to force people to wear masks under risk of penalty is simply unjustified and arbitrary government over-reach.

 

JEMY GATDULA is a senior fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence

https://www.facebook.com/jigatdula/
Twitter@jemygatdula

Why finance attracts the least trustworthy among us

JCOMP-FREEPIK

FORMER Goldman Sachs banker Tim Leissner has been fessing up to an awful lot of dishonest behavior lately.

Under questioning from both the prosecution and defense, Leissner admitted to faking divorce documents, creating phony e-mail accounts, marrying multiple women at once, and keeping money that wasn’t his. That’s just a brief summation from an article by Patricia Hurtado of Bloomberg News that also includes a fun bullet-pointed list of Leissner’s “Web of Lies.” For the jury in the trial of Roger Ng over his alleged role in the loot-ing of Malaysian sovereign wealth fund 1MDB, the serial prevarications of Ng’s former boss Leissner (who already pleaded guilty) present some challenges in determining how seriously to take his testimony.

For the rest of us, they raise some interesting questions. Was Leissner, once the Southeast Asia chairman of the world’s most prestigious financial institution, a total outlier? Or was his boundary-pushing and lack of trustwor-thiness just on the extreme end of a financial-industry continuum that includes a lot of other dodgy behavior?

There’s a new(ish) paper by four business and economics professors based in Germany and Austria that attempts to answer this, sort of. A version recently accepted for publication in the journal Management Science is ti-tled “Social Preferences of Young Professionals and the Financial Industry,” while there’s an earlier, paywall-free draft called “Trustworthiness in the Financial Industry.” The key finding is that university students who score low in trustworthiness in a simple game are more likely than others to end up working in finance. You probably want to know more about that game. It was introduced in 1995 by three American accounting professors, who structured it like this:

Subjects in room A decide how much of their $10 show-up fee to send to an anonymous counterpart in room B. Subjects were informed that each dollar sent would triple by the time it reached room B. Subjects in room B then de-cide how much of the tripled money to keep and how much to send back to their respective counterparts. The accounting professors dubbed this an “investment game,” but others took to calling it the “trust game.” For social scientists it has become what one recent review article described as “a workhorse to measure individual differences in trust and trustworthiness.” The decisions made in Room A are said to reflect trust and those in Room B trustworthiness. That is, the more money one sends to Room B from Room A the more trusting one is, and the more money one returns from B to A, the more trustworthy.

My initial reaction upon reading the description of the game was that those in Room B who skimped on their return payments to Room A were just selfish. They weren’t reneging on commitments, just acting like the cold-blooded “economic man” of microeconomic theory and maximizing their gains. The designers of the original trust game posited that its “Nash equilibrium,” the solution that rational players should arrive at in a non-cooperative game, was everybody sitting on their money.

Actual trust-game participants tend to be wiser than that, understanding that trusting behavior in Room A increases the size of the pie for everyone — although they’re generally not willing to maximize potential gains by handing over all the money. When the authors of the paper that inspired this column, Andrej Gill, Matthias Heinz, Heiner Schumacher and Matthias Sutter, conducted a version of the trust game (in which every participant played both roles) among 265 business and economics students at Frankfurt’s Goethe University in 2013, the first-mover students (Room A) sent an average of 38.7% of the money to the second movers (Room B), who in turn returned 20.5% of that (tripled) amount.

Gill et. al. also asked the students about their career interests. While in the first-mover role, the behavior of the 70 students with high interest in finance careers wasn’t much different from the rest. As second movers, though, those with high interest in finance returned just 15.5% of the money, while the 91 with low interest in the field returned 24.3%, and the 104 with medium interest 22.3%.

This difference is statistically significant, with a p-value (chance of it being the product of random variation) of 0.001, so it seemed to the four researchers to be worthy of an article in an academic journal. After getting pushback from journals that students’ stated career preferences might not signify much, they then tracked down 231 of the participants in 2019 and 2020 to find out about their career paths. The results were quite similar. Among the 75 who had gone into finance, the average share returned as second movers was 14.8%, versus 22.8% among the rest. Once again, there was little difference in first-mover behavior. To co-author Sutter, director of the experimental economics group at the Max Planck Institute for Research on Collective Goods in Bonn, the first-mover/second-mover disparity is an indication that it isn’t just selfishness at work. “If the people later on working in the financial industry were simply more selfish, then you would expect that they would send less as first mover,” he told me. “They have the same level of trust in other people, but in their reaction to being sent the money they behave differently.” Another experiment conducted by Heinz and Schumacher among students at the universities of Cologne and Düsseldorf found that those with a high interest in finance were less willing to cooperate in a group game unless they enjoyed clear benefits from the cooperation. They can’t be relied on as much to contribute to mutual success, which in a sense makes them less trustworthy. Whether you buy that or not, it does track with negative public perceptions of bankers and others in finance, especially since the global financial crisis of 2007 and 2008. And it seems like it might be a bad thing for both the financial sector and the economy as a whole. Part of the point of the trust game is that trusting behavior increases overall wealth — something that tends to be true outside the experimental-economics laboratory as well. What is to be done? Before 1990, finance workers earned similar education-adjusted wages to those in other fields. Since then, thanks in large part to deregulation, pay in finance has far outstripped the competi-tion, which has made it “very attractive to people who have a bit more of a selfish gene,” Sutter says. Reforms proposed to reduce financial-crisis risk by changing incentive structures in finance might have the wel-come side effect of attracting different sorts of people into the sector, he and his co-authors conclude.

Or something like that. It’s clear that the main point of the paper is simply to make public an interesting and possibly important experimental result, not to provide a blueprint for financial reform. Though the policy sugges-tions did make me wonder what careers “untrustworthy” people might favor if finance became less attractive. “I have no idea,” Sutter said when I asked him about that. Then he reconsidered: “My guess is they would go into consulting.”

BLOOMBERG OPINION

Putin wants ‘unfriendly’ countries to pay for Russian gas in roubles

RUSSIAN President Vladimir Putin. — REUTERS

LONDON — Russia will seek payment in roubles for gas sold to “unfriendly” countries, President Vladimir Putin said on Wednesday, and European gas prices soared on concerns the move would exacerbate the region’s energy crunch.

European nations and the United States have imposed heavy sanctions on Russia since Moscow sent troops into Ukraine on Feb. 24. But Europe depends heavily on Russian gas for heating and power generation, and the European Union (EU) is split on whether to sanction Russia’s energy sector.

Mr. Putin’s message was clear: If you want our gas, buy our currency. It remained unclear whether Russia has the power to unilaterally change existing contracts agreed upon in euros.

The rouble briefly leapt after the shock announcement to a three-week high past 95 against the dollar. It pared gains but stayed well below 100, closing at 97.7 against the dollar, down by more than 22% since Feb. 24.

Some European wholesale gas prices were up to 30% higher on Wednesday. British and Dutch wholesale gas prices jumped.

Russian gas accounts for about 40% of Europe’s total consumption. EU gas imports from Russia this year have fluctuated by 200 million to 800 million euros ($880 million) a day.

“Russia will continue, of course, to supply natural gas in accordance with volumes and prices… fixed in previously concluded contracts,” Mr. Putin said at a televised meeting with government ministers.

“The changes will only affect the currency of payment, which will be changed to Russian roubles,” he said.

German Economy Minister Robert Habeck called Mr. Putin’s demand a breach of contract and other buyers of Russian gas echoed the point.

“This would constitute a breach to payment rules included in the current contracts,” said a senior Polish government source, adding Poland has no intention of signing new contracts with Gazprom after their existing deal expires at the end of this year.

Major banks are reluctant to trade in Russian assets, further complicating Mr. Putin’s demand.

A spokesperson for Dutch gas supplier Eneco, which buys 15% of its gas from Russian gas giant Gazprom’s German subsidiary Wingas GmbH, said it had a long-term contract denominated in euros.

“I can’t imagine we will agree to change the terms of that.”

According to Gazprom, 58% of its sales of natural gas to Europe and other countries as of Jan. 27 were settled in euros. US dollars accounted for about 39% of gross sales and sterling for about 3%. Commodi-ties traded worldwide are largely transacted in the US dollar or the euro, which make up roughly 80% of worldwide currency reserves.

“There is no danger for the (gas) supply, we have checked, there is a financial counterparty in Bulgaria that can realize the transaction also in roubles,” Energy Minister Alexander Nikolov told reporters in Sofia. “We expect all kinds of actions on the verge of the unusual but this scenario has been discussed, so there is no risk for the payments under the existing contract.”

Several firms, including oil and gas majors Eni, Shell and BP, RWE and Uniper — Germany’s biggest importer of Russian gas — declined to comment.

“It is unclear how easy it would be for European clients to switch their payments to roubles given the scale of these purchases,” said Leon Izbicki, associate at consultancy Energy Aspects. He said, however, that Russia’s central bank could provide additional liquidity to foreign exchange markets that would enable European clients and banks to obtain needed roubles.

Moscow calls its actions in Ukraine a “special military operation.” Ukraine and Western allies call this a baseless pretext.

ONE-WEEK DEADLINE

Mr. Putin said the government and central bank had one week to come up with a solution on moving operations into the Russian currency and that Gazprom would be ordered to make the corresponding changes to contracts.

In gas markets on Wednesday, eastbound gas flows via the Yamal-Europe pipeline from Germany to Poland declined sharply, data from the Gascade pipeline operator showed.

“The measures taken by Russia may also be interpreted as provocative and may increase the possibility that Western nations tighten sanctions on Russian energy,” said Liam Peach, emerging Europe econo-mist at Capital Economics.

The European Commission has said it plans to cut EU dependency on Russian gas by two-thirds this year and end its reliance on Russian supplies “well before 2030.”

But unlike the United States and Britain, EU states have not sanctioned Russia’s energy sector. The Commission, the 27-country EU’s executive, did not respond to a request for comment.

Mr. Habeck said he would discuss with European partners a possible answer to Moscow’s announcement. Dutch Prime Minister Mark Rutte said more time was needed to clarify Russia’s demand.

“In their contracts it’s usually specified in what currency it has to be paid, so it’s not something you can change just like that,” Mr. Rutte said during a debate with parliament.

Russia has drawn up a list of “unfriendly” countries corresponding to those that have imposed sanctions. Deals with companies and individuals from those countries must be approved by a government com-mission.

The countries include the United States, European Union member states, Britain, Japan, Canada, Norway, Singapore, South Korea, Switzerland and Ukraine. Some, including the United States and Norway, do not purchase Russian gas.

The United States is consulting with allies on the issue and each country will make its own decision, a White House official told Reuters. The United States has already banned imports of Russian energy. — Reuters

By offloading rote tasks to bots, retailers can focus on strategy

PIXABAY

By Patricia B. Mirasol, Reporter

The use of robotic process automation (RPA), in conjunction with artificial intelligence (AI), will free retailers from rules-based tasks and allow them to focus on strategic and creative ones.

RPA is a form of automation that uses software bots to carry out structured and repetitive tasks. The combination of RPA, AI, and machine learning (ML) working together is often referred to as intelligent automation, said Kevin Redmond, vice president of data, AI & automation at IBM Asia Pacific.

“We can say AI and ML is like our brain, taking in available information and making decisions, while RPA is like our hands, performing actions that need to be done — possibly based on the decisions made by AI and ML,” he explained in an e-mail to BusinessWorld.

RPA is an effective way to streamline workflows in supply chain management and tailored promotions, added Natalie Pia H. Azarcon, managing partner at IBM Consulting, IBM Philippines.

“Retailers can author [RPA] bots capable of copying data from supply chain management systems like Oracle into standardized order forms. The bots can even submit orders through online portals, or help process invoices by entering data into accounting systems,” she said in a separate e-mail.

Customer experience can likewise be improved through a bot’s transfer of customer purchase data into a marketing system.

“The data can be used to segment customers for tailored offers and advertisements,” Ms. Azarcon told BusinessWorld. “RPA can also communicate personalized offers to customers through interactive voice response technology… encouraging repeat business.”

Other retail use cases of RPA, which can be deployed in the cloud or on-premise, include fraud detection, sales analytics, and returns processing.

Continuing with his human analogy, Mr. Redmond noted that chatbots are like our ears and mouth. RPA chatbots go beyond the scope of normal chatbots, he said. For instance, instead of sending customers step-by-step instructions on how to change their mailing addresses like the latter is wont to do, the former can go ahead and change the detail itself from the backend.

Mr. Redmond added that the potential for RPA is “limitless,” given that many tasks are candidates for automation. The pandemic — which puts a stress on effective operational management in the face of hybrid work — accelerated its growth.

“RPA is focused largely on cost reduction and is an innovation and survival game plan for companies to stay competitive,” he said. “Manpower cost is one of the top three cost components of organizations, and companies need to optimize their human labor with digital labor to maximize productivity.”

A November 2021 study released by Forrester, a research and advisory company, found that a credit union system organization’s use of RPA resulted in a productivity gain of about $740,000 over three years. The time needed for account creation also fell from two days to 40 minutes, allowing 80% of the 40,000-strong workforce to move on to higher skill tasks.

On invasion milestone, Ukraine urges solidarity as Western leaders gather

Ukrainian President Volodymyr Zelensky — UKRAINIAN PRESIDENTIAL PRESS SERVICE/HANDOUT VIA REUTERS

LVIV/KHARKIV, Ukraine/ BRUSSELS — Ukraine’s leader called for solidarity on Thursday, a month since Russia’s invasion began, warning he would see who sells out at summits in Europe where bolstering sanctions and NATO is planned but restrictions on energy could prove divisive.

US President Joseph R. Biden, Jr., has arrived in Brussels for meetings of the alliance, Group of 7 (G7), and European Union over a conflict that began on Feb. 24 and has caused more than 3.6 million refugees to flee the country.

Mr. Biden’s visit could also shine light on a dispute with European allies, some of whom are heavily reliant on Russian oil and gas, over whether to impose further energy sanctions.

The issue has been a “substantial” topic and the subject of “intense back and forth” in recent days, White House national security adviser Jake Sullivan told reporters. The United States has already banned imports of Russian oil.

President Vladimir Putin on Wednesday said Moscow planned to switch gas sales made to “unfriendly” countries to roubles, causing European gas prices to soar on concerns the move would exacerbate the region’s energy crunch.

As the humanitarian toll from the conflict continues to rise, driving a quarter of Ukraine’s population of 44 million from their homes, President Volodymyr Zelenskyy called on people around the world to take to the streets and demand the war end.

“Come from your offices, your homes, your schools and universities, come in the name of peace, come with Ukrainian symbols to support Ukraine, to support freedom, to support life,” he said in a video address.

The United States planned to announce more sanctions on Russian political figures and oligarchs on Thursday, and officials would have more to say on Friday about European energy issues, Sullivan said.

Ahead of his meeting with Mr. Biden, NATO Secretary-General Jens Stoltenberg said the alliance would boost its forces in Eastern Europe by deploying four new battle groups in Bulgaria, Hungary, Romania, Slovakia.

Mr. Zelenskyy said on Thursday he expected “serious steps” from Western allies.

He repeated his call for a no-fly zone and complained that the West had not provided Ukraine with planes, modern anti-missile systems, tanks or anti-ship weapons.

“At these three summits we will see who is our friend, who is our partner and who sold us out and betrayed us,” he said in a video address released early on Thursday.

KYIV HIT 

Moscow calls its actions in Ukraine a “special operation” that it says is not designed to occupy territory but to destroy its southern neighbor’s military capabilities and capture what it regards as dangerous nationalists.

The West says this a baseless pretext for an unprovoked war.

Although the Kremlin says its operation is going to plan, Russian forces have taken heavy losses, stalled on most fronts and face supply problems. They have turned to siege tactics and bombardments, causing huge destruction and many civilian deaths.

Kyiv Mayor Vitali Klitschko told reporters on Wednesday that 264 civilians in the city had been killed by Russian attacks. He later said one person was killed and two wounded on Wednesday when shells hit a shopping center parking lot.

Russia has denied targeting civilians.

US Secretary of State Antony Blinken said the United States had assessed that members of Russia’s forces had committed war crimes.

Mr. Blinken said there had been “numerous credible reports of indiscriminate attacks and attacks deliberately targeting civilians, as well as other atrocities.”

Worst hit has been the southern port of Mariupol, where hundreds of thousands of people have been sheltering since the war’s early days under constant bombardment and with food, water and heating supplies cut.

Satellite photographs from commercial firm Maxar showed massive destruction of what was once a city of 400,000 people, with residential apartment buildings in flames.

A total of 4,554 people were evacuated from Ukrainian cities through humanitarian corridors on Wednesday, a senior official said, considerably fewer than the previous day.

Ukraine’s armed forces chief of staff early on Thursday said Russia was still trying to resume offensive operations to capture the cities of Kyiv, Chernihiv, Sumy, Kharkiv, and Mariupol.

To counter troop shortages, Moscow was moving in fresh units close to the Ukraine border and calling up soldiers who had recently served in Syria, it added in a Facebook post.

‘UNFRIENDLY’ COUNTRIES 

As Western leaders prepared to meet, British Prime Minister Boris Johnson said he would push for an increase in defensive lethal aid to Ukraine.

The first US shipment from a new, $800 million arms package for Ukraine authorized last week will start flying out in the next day or so, a senior defense official said.

Mr. Putin’s threat to switch certain gas sales to rubles sent European futures soaring on concerns the move would exacerbate an energy crunch and jam up deals that run to hundreds of millions of dollars every day.

Russian gas accounts for some 40% of Europe’s total gas consumption.

Moscow has drawn up a list of “unfriendly” countries which have imposed sanctions. They include the United States, European Union members, Britain, and Japan, among others.

“The changes will only affect the currency of payment, which will be changed to Russian rubles,” said Mr. Putin.

And as an information battle also rages, a Russian regulator blocked Alphabet’s news aggregator Google News, saying it allows access to what it calls fake material about the military operation, Interfax news agency said.

Google said in a statement that some people were “having difficulty” accessing the Google News app and website in Russia and this was “not due to any technical issues at our end.”

Earlier the company said it would not help websites, apps and YouTube channels sell ads alongside content that it deemed exploited, dismissed or condoned the conflict. — Natalia Zinets, Vitalii Hnidiy, and Jarrett Renshaw/Reuters 

Madeleine Albright, former US secretary of state and feminist icon, dies at 84

Former US secretary of state Madeleine Albright (1937–2022), ca. 1997. US Department of State/Wikimedia Commons

WASHINGTON — Madeleine Albright, who fled the Nazis as a child in her native Czechoslovakia during World War Two then rose to become the first female US secretary of state and, in her later years, a pop culture feminist icon, died on Wednesday at the age of 84. 

Her family announced her death on Twitter and said she had died of cancer. Leaders, diplomats and academics remembered her as a trailblazer on the world stage. 

Albright served as US ambassador to the United Nations from 19931997 in US President Bill Clinton’s administration. He then nominated her to become the first female secretary of state and she served in that role from 19972001. 

“Madeleine Albright was a force. She defied convention and broke barriers again and again,” US President Joseph R. Biden, Jr., said. He directed US flags be flown at half-staff at the White House and government buildings, including embassies, until March 27. 

She was a tough-talking diplomat in an administration that hesitated to involve itself in the two biggest foreign policy crises of the 1990s — the genocides in Rwanda and Bosnia-Herzegovina. 

She once upset a Pentagon chief by asking why the military maintained more than 1 million men and women under arms if they never used them. 

The plain-spoken Albright took a tough line on a 1996 incident where Cuban jet fighters downed two unarmed US-based planes, saying: “This is not cojones, this is cowardice,” using a Spanish vulgarity meaning “testicles.” 

While at the United Nations, where Security Council members stood in silence on Wednesday to honor her memory, she pressed for a tougher line against the Serbs in Bosnia after Bosnian Serb military forces laid siege to the capital Sarajevo. 

During Mr. Clinton’s first term, many of his administration’s top foreign policy experts did not want to get involved because they vividly remembered how the United States became bogged down in Vietnam. 

In 1995, Bosnian Serb soldiers overran three Moslem enclaves, Srebrenica, Gorazde, and Zepa, and massacred more than 8,000 people. 

The United States responded by working with NATO on airstrikes that forced an end to the war but only after it had been going on for three years. 

Albright’s experience as a refugee prompted her to push for the United States to use its superpower clout. She wanted a “muscular internationalism,” said James O’Brien, a senior adviser to Albright during the Bosnian war. 

Early in the Clinton administration, while she unsuccessfully advocated for a quicker, stronger response in Bosnia, Albright backed a UN war crimes tribunal that eventually put the architects of that war, including Serbian President Slobodan Milosevic and Bosnian Serb leaders, in jail, O’Brien said. 

The painful lessons learned in Rwanda and Bosnia served the United States well in Kosovo, when Washington saw the more powerful Serbs begin a program of ethnic cleansing of ethnic Albanians. NATO responded with an 11-week campaign of air strikes in 1999 that extended to Belgrade. 

Kosovo President Vjosa Osmani said on Wednesday she was “deeply shocked by the loss of Kosovo’s great friend,” adding that the intervention “gave us hope, when we did not have it.” 

During efforts to press North Korea to end its nuclear weapons program, which were eventually unsuccessful, Albright traveled to Pyongyang in 2000 to meet North Korean leader Kim Jong-il, becoming the highest ranking US official to visit the secretive Communist-run country at the time. 

FEMINIST HEROINE 

Once the Clinton years and the 1990s were over, Albright became an icon to a generation of young women looking for inspiration in their quest for opportunity and respect in the workplace. Albright was fond of saying: “There’s a special place in hell for women who don’t help each other.” 

Albright was a marked contrast to her predecessors and male colleagues in uniform suits. She used clothes and jewelry to send tart, political messages. One favorite was a snake brooch, a reference to Iraqi leader Saddam Hussein calling her an “unparalleled serpent.” 

She wrote a book about her signature jewelry, one of several bestsellers, explaining that the pins were a diplomatic tool. Balloons or flower pins would indicate she felt optimistic, while a crab or turtle would indicate frustration. 

Born Marie Jana Korbelova in Prague on May 15, 1937, she and her family fled in 1939 to London when Germany occupied Czechoslovakia. She attended school in Switzerland at age 10 and adopted the name Madeleine. 

She was raised a Roman Catholic but after she became secretary of state, the Washington Post dug up documentation showing that her family was Jewish and relatives, including three grandparents, died in the Holocaust. Her parents likely converted to Catholicism from Judaism to avoid persecution as Nazism gained strength in Europe, the paper reported. 

After the war, the family left London and returned to Czechoslovakia, then in the throes of a communist takeover. 

Her father, a diplomat and academic who opposed communism, moved the family to the United States where he taught international studies at the University of Denver. One of his favorite students was Condoleezza Rice, who would become the second female secretary of state in 2005 under Republican President George W. Bush. 

“It is quite remarkable that this Czech émigré professor has trained two secretaries of state,” Albright told the New York Times in 2006. 

Albright attended Wellesley College in Massachusetts, and got a doctorate from Columbia University. She became fluent or close to it in six languages including Czech, French, Polish and Russian as well as English. 

In 1959, she married newspaper heir Joseph Medill Patterson Albright, whom she met while working at the Denver Post, and they had three daughters. They divorced in 1982. 

She followed her father into academia but also became involved in Democratic Party politics. Albright joined the staff of Senator Edmund Muskie, a Maine Democrat, in 1976 and two years later became a member of President Jimmy Carter’s National Security Council staff. 

Since leaving the Clinton administration, she has written a series of books. One, Hell and Other Destinations, was published in April 2020. Others include her autobiography, Madam Secretary: A Memoir (2003), and Read My Pins: Stories from a Diplomat’s Jewel Box (2009). 

The plain-spoken Albright made forays into popular culture. Parks and Recreation star Amy Poehler’s character had a picture of Albright in her office. 

In 2005, the Gilmore Girls television series the character Rory dreamt that Albright, wearing a red suit and an eagle pin, was her mother. 

In 2018, she and fellow former secretaries of state Colin Powell and Hillary Clinton briefed a fictional secretary of state in Madam Secretary, a TV drama where she spoke passionately about the dangers of abusive nationalism. — Diane Bartz/Reuters

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