El Salvador plans first ‘Bitcoin City’, backed by bitcoin bonds

November 22, 2021 | 1:25 pm

Bitcoin-crypto — ANDRE FRANCOIS MCKENZIE-UNSPLASH

MIZATA, El Salvador – El Salvador plans to build the world’s first “Bitcoin City”, funded initially by bitcoin–backed bonds, President Nayib Bukele said on Saturday, doubling down on his bet to harness the crypto currency to fuel investment in the Central American country.

Speaking at an event closing a week-long promotion of bitcoin in El Salvador, Bukele said the city planned in the eastern region of La Union would get geothermal power from a volcano and not levy any taxes except for value added tax (VAT).

“Invest here and make all the money you want,” Bukele said in English, dressed all in white and wearing a reversed baseball cap, in the beach resort of Mizata. “This is a fully ecological city that works and is energized by a volcano.”

Half of the VAT levied would be used to fund the bonds issued to build the city, and the other half would pay for services such as garbage collection, Bukele said, estimating the public infrastructure would cost around 300,000 bitcoins.

El Salvador in September became the first country in the world to adopt bitcoin as legal tender.

Although Bukele is a popular president, opinion polls show Salvadorans are skeptical about his love of bitcoin, and its bumpy introduction has fueled protests against the government.

Likening his plan to cities founded by Alexander the Great, Bukele said Bitcoin City would be circular, with an airport, residential and commercial areas, and feature a central plaza designed to look like a bitcoin symbol from the air.

“If you want bitcoin to spread over the world, we should build some Alexandrias,” said Bukele, a tech savvy 40-year-old who in September proclaimed himself “dictator” of El Salvador on Twitter in an apparent joke.

El Salvador planned to issue the initial bonds in 2022, Bukele said, suggesting it would be in 60 days time.

Samson Mow, chief strategy officer of blockchain technology provider Blockstream, told the gathering the first 10-year issue, known as the “volcano bond”, would be worth $1 billion, backed by bitcoin and carrying a coupon of 6.5%. Half of the sum would go to buying bitcoin on the market, he said. Other bonds would follow.

After a five year lock-up, El Salvador would start selling some of the bitcoin used to fund the bond to give investors an “additional coupon”, Mow said, positing that the value of the crypto currency would continue to rise robustly.

“This is going to make El Salvador the financial center of the world,” he said.

The bond would be issued on the “liquid network”, a bitcoin sidechain network. To facilitate the process, El Salvador‘s government is working on a securities law, and the first license to operate an exchange would go to Bitfinex, Mow said.

Crypto exchange Bitfinex was listed as the book runner for the bond on a presentation behind Mow.

Once 10 such bonds were issued, $5 billion in bitcoin would be taken off the market for several years, Mow said. “And if you get 100 more countries to do these bonds, that’s half of bitcoin‘s market cap right there.”

The “game theory” on the bonds gave first issuer El Salvador an advantage, Mow argued, saying: “If bitcoin at the five-year mark reaches $1 million, which I think it will, they will sell bitcoin in two quarters and recoup that $500 million.” – Reuters

Democracy slipping away at record rate, intergovernmental body warns

November 22, 2021 | 1:24 pm

BRUSSELS – A greater number of countries are sliding towards authoritarianism, while the number of established democracies under threat has never been so high, the International Institute for Democracy and Electoral Assistance (IDEA) said on Monday.

Populist politics, the use of COVID-19 pandemic restrictions to silence critics, a tendency of countries to mimic the anti-democratic behaviour of others, and disinformation used to divide societies are mainly to blame, the Stockholm-based intergovernmental organisation said in a report.

“More countries than ever are suffering from ‘democratic erosion’,” IDEA said in its 2021 study on the state of democracy, relying on data compiled since 1975.

“The number of countries undergoing ‘democratic backsliding’ has never been as high,” it said, referring to the regressive turn in areas including checks on government and judicial independence, as well as media freedom and human rights.

Afghanistan, which was taken over by Taliban militants in August after international troops withdrew, is the most dramatic case this year, while Myanmar’s Feb. 1 coup marked the collapse of a fragile democracy. Other examples include Mali, which has suffered two coups since 2020, and Tunisia, where the president has dissolved parliament and assumed emergency powers.

Large democracies such as Brazil and the United States have seen presidents question the validity of election results, while India has witnessed the prosecution of groups of people critical of government policies.

Hungary, Poland, Slovenia and Serbia are the European countries with the greatest declines in democracy. Turkey has seen one of the largest declines between 2010 and 2020.

“In fact, 70 per cent of the global population now live either in non-democratic regimes or in democratically backsliding countries,” the report said.

The COVID-19 pandemic has led to a surge in authoritarian behaviour by governments. The study said that there was no evidence that authoritarian regimes were better at fighting the pandemic, despite Chinese state media reports to the contrary.

“The pandemic provides additional tools and justification for repressive tactics and silencing of dissent in countries as diverse as Belarus, Cuba, Myanmar, Nicaragua and Venezuela,” the report said. – Reuters

Marines on track for worst vaccination record in U.S. military

November 22, 2021 | 1:20 pm

WASHINGTON – The U.S. Marine Corps is set to have the worst vaccination record among military branches, with thousands of active-duty personnel set to miss the service’s Nov. 28 deadline to be fully inoculated.

About 91% of active personnel are fully vaccinated and 94% partially vaccinated as of Wednesday, according to a Marine Corps statement on Sunday.

Service members are considered fully vaccinated 14 days after getting a single Johnson & Johnson shot or 14 days after their second dose of Pfizer or Moderna vaccine — meaning it is too late for many to complete the vaccination process by the deadline.

The Navy has the highest vaccination rate at 96.7% of active-duty personnel fully vaccinated, followed by the Air Force at 96.4%. An Army spokesperson said 92% of active-duty soldiers were fully vaccinated. The Army deadline is Dec. 15 for active duty and June 30 for the National Guard.

Army Secretary Christine Wormuth warned on Tuesday that soldiers, including National Guard members, who refuse to get vaccinated would not have their service renewed unless they have an approved exemption, according to a memo seen by Reuters.

Her warnings come as Oklahoma Governor Kevin Stitt, a Republican, defied the federal mandate and said he would not require National Guard members in his state to get vaccinated.

Other Republicans opposing vaccine mandates include Senator Ted Cruz who on Saturday responded to Wormuth’s memo by tweeting: “Biden admin persecuting our soldiers. This is not good for America.”

In addition to the military, the Biden administration mandated vaccination for most federal employees, contractors, and health workers. More recently the White House said it would require private employers with at least 100 workers to mandate vaccination or weekly testing, a rule being challenged in court.

Nearly 60% of Americans are fully vaccinated. – Reuters

[B-SIDE Podcast] Money Talks: Know yourself, know your path

November 22, 2021 | 9:49 am

Follow us on Spotify BusinessWorld B-Side

Money Talks is a series on personal finance sponsored by Metropolitan Bank & Trust Co. (Metrobank).

Local investors are propping up the Philippine investment market as according to the Philippine Stock Exchange, local retail investors accounted for 74.3% of the stock market transactions in the first quarter of 2021. Moreover, Finance Secretary and Capital Market Development Council (CMDC) chair Carlos G. Dominguez III said the increase in retail investor participation is a symbol of the trust and confidence of the public in the country’s investment landscape.

Yet many Filipinos are left out of this equation. In this B-Side episode, Sharon W. Zulueta, vice president and head of the trust retail products division at Metrobank, discusses with BusinessWorld why only a fraction of Filipinos put their trust in the financial market, and why more should.

TAKEAWAYS

Financial exclusion is still the norm for many Filipinos.

“To put it in context, out of the total adult population in the Philippines only 29% have a formal account—meaning an account with a bank, a microfinance non-government organization, has an e-money account, cooperative, etc. Of these, only 10% actually use it to invest. So only a tiny fraction of Filipinos invests in the market.,” Ms. Zulueta said.

Things will get better with the country’s growth.

Economic growth can naturally increase financial inclusion, as more Filipinos gain income and access to the financial system.

“The number of Filipinos that have opened formal accounts are those that have the capacity to stash away money in that account, or those people who have jobs who use that account to receive their salaries every month. So the ability of Filipinos to open a formal account is tied to the progress of the country,” Ms. Zulueta said.

“When the country progresses, more Filipinos will be more included in the financial system.

Take a step back.

Before investing, neophytes should first know why they’re getting into it. “You have to take a step back before you dive into the investing world,” said Ms. Zulueta. “You have to know yourself and know what type of investor you are.”

First-time investors should consider their purpose, their appetite for risk, their time horizon, and their hurdles.

There’s more to investing than time deposits.

“When we talk about assets, typically for Filipinos we think about cash, time deposits, money that is placed in savings or checking accounts. Why is it not necessarily a good thing even though you’re technically setting aside money?” Ms. Zulueta asked. “There’s the problem of inflation, or the rate by which prices of goods go up every year. Right now, inflation is at 4-5%. Let’s say you bought chicken last year for P100 a kilo, right now it’s going to be P104 a kilo. The value of your money actually goes down over time, unless you invest it.”

Look beyond the local market for opportunities.

Those who are already investing can stand to benefit from diversifying where they invest.

“One advice I would give in order to have a more diversified portfolio regardless of where you are in your investment life is looking beyond local. Diversifying your portfolio does not just mean diversifying your asset classes, it’s really diversifying in terms of geography. Look at investing in more developed countries like the US or Europe or even in other Asian countries,” Ms. Zulueta said.

“The Philippine stock market has been challenged in the past five to ten years for many reasons. But we’ve seen that the US market has done phenomenally well the past five to ten years, mainly driven by the technology industry. If you were just invested in the Philippine local market, you would have had dismal returns. But if your portfolio was a little more diversified in terms of geography, and you put a bit more money in markets outside the Philippines, you would have done better.”

It’s also a matter of trust.

For many people, banks or investing are unfamiliar concepts and that can have the effect of turning them away from the market altogether. But it doesn’t have to be that way.

“Banks have a fiduciary relationship with their clients. What does that mean? It means that banks have the responsibility to do what’s best for their clients. Especially for Filipinos who have limited experience with banks, trust is built over time,” Ms. Zulueta said.

“If you’re really not interested in investing, hire somebody whom you trust to do it for you. A bank can guide you and make it easy for you to have that exposure to different markets and for you to have sound asset management that would allow you to grow your assets over time.”

Recorded remotely on Oct. 15, 2021. Interview by Santiago J. Arnaiz, BusinessWorld contributor and chief operating officer of health startup Day3 Innovations. Research by BusinessWorld special features writer Bjorn Biel “JB” M. Beltran. Produced by Paolo L. Lopez and Sam L. Marcelo.

Follow us on Spotify BusinessWorld B-Side

Converge puts customers in the front seat of innovation

November 22, 2021 | 8:58 am

Converge flexiBiz customers enjoy the bandwidth they need, when the need it the most.

Innovation has long become a buzz word in the ICT space. Every new service or technology may be an improvement, but not necessarily an innovation. Some even confuse innovation with novelty.

What is innovation? Converge Chief Operations Officer Jesus C. Romero has a simple definition: “It’s a different and better way of serving customer needs. It’s a first, not just in a company, but in the entire industry and is commercially successful.”

Innovation is not just being new for newness’ sake. It’s a modern solution that serves a purpose, and in the case of Converge, it’s serving the customers that drives the innovation.

“Putting customers at the front seat of our innovation process and driving our business forward is what makes Converge the fastest growing internet service provider today. We make sure our product and service offerings answer to what Filipinos need, at this time,” COO Romero added.

Converge opened its first Fiber-Fast Business Center, a multi-experience / multi-channel business center where we can receive payments via drive-thru, and customers can apply for a line while in safely parked in their cars.

In the first quarter of 2021, Converge, having seen the volume and pace of consumption of Filipinos of connectivity in 2020, launched a product that gives customers the freedom to choose when they want to have increased speeds.

This innovation doesn’t just adjust the broadband connection to the customers’ productivity hours, it also adjusts to their wallets.

The Converge Time of Day broadband plans offer doubled download speeds at pre-set times of the day. Daytime doubled speeds means an online class, a business meeting, and Youtube browsing can take place in one household, all at the same time. A perfect product, attuned to Filipinos’ pandemic needs.

The Time of Day innovation adjusts to Filipinos’ consuming behavior, whether they be an individual or a business.

The Time of Day plans of Converge are: TOD 2000 (100 Mbps / 200 Mbps) and TOD 3000 ( 300 Mbps / 600 Mbps).

Converge is the first in the market to offer Time OF Day, an innovative product that offers doubled download speeds at pre-set times of the day.

This innovation concept is also applied to another product series of Converge called flexiBiz. These are SME-oriented broadband plans that offer the same, tailored innovation (doubled speeds during the day or same speed 24/7) for businesses, at a price within their reach. Through offering ‘customized’ connectivity, businesses are able to realize cost savings and operational efficiency.

Romero further explains, “We have been improving our service offerings to support the SME segment as we recognized that a lot of them were severely affected by the pandemic. We know that while their budgets had to adjust, their bandwidth requirements increased as they shifted operations online. This is where flexiBiz comes in. We created a product that gives them the bandwidth they need at the time they need it the most. So whether their business operates during the daytime or at night, the SMEs will receive faster speeds at lower costs.”

In tandem with these innovations, Converge also upgraded its standard broadband plans for the second time, giving customers speeds of up to 800mbps at no additional cost.

The upgraded FiberX plans are: FiberX1500, from 35 Mbps now 50 Mbps ; FiberX 2500 from 100 Mbps now 300 Mbps, and FiberX 3500 from 200 Mbps to 800 Mbps.

The company also recently offered a speed upgrade for their customers.

The Network is the Product

If customers drive product innovation, what exactly is the product? The product is the superior fiber technology that Converge harnesses and which makes up its nationwide domestic network.

Converge’s network is the first in the country to run on 400 Gbps technology, and now upgraded to the industry-leading standard of 800 Gbps, which makes it the only ISP in the country to use this technology. This capacity makes possible high-speed data transfers that are needed for streaming, remote storage, and next-generation technologies

“Converge believes that the network is the product. When the network is the best in class then we will have the best in class products. We design our networks using three strict parameters. One it must have high availability, to have as few failures as possible. Second, it must be low latency and the third is non-blocking meaning there is no congestion on the network,” Romero said, underlining the features of the country’s most modern fiber backbone.

Backed by the best broadband technology and a network design that efficiently connects users around the country, Converge can freely innovate and focus on serving customers better.

With Converge showcasing true innovation at every turn and building an expansive network, the message is clear: as long as Filipinos continue to hunger for high-speed broadband connection, Converge will be there to serve the need however and whenever they need it.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Get Mapúa’s premier engineering and IT education from home through its fully online programs

November 22, 2021 | 8:00 am

A good college education is one of the most rewarding achievements a person can have. Getting an academic degree from a reputable institution presents numerous opportunities for individuals seeking to launch their careers successfully. Mapúa University, an enabler of Filipinos’ successes here in the country and abroad, understands this very well and ensures that its program offerings meet the desired outcomes of learners under any circumstance.

Mapúa is a top-ranked university in Asia, as declared by Quacquarelli Symonds (QS), with internationally recognized program offerings. It is a known trailblazer in Philippine education with significant contributions to reforming the traditional learning setup. Over the years, it has harnessed the potential and power of digital technology in delivering leading-edge education to learners, constantly innovating delivery methods that break geographical, time, and eventual barriers. This makes Mapúa a recognized leader in digital education and online learning in the Philippines and one of the most digital-ready universities in Asia.

Upholding excellence in digital learning

Mapúa’s most recent remarkable undertaking for digital education is the launching of Mapúa ÚO^x or the Ubiquitous Online Experience. It is its initiative in delivering fully online bachelor’s degree programs through its very own platform Cardinal EDGE or Education in a Digital and Global Environment.

Offered under Mapúa ÚO^x are six Commission on Higher Education (CHED)-approved fully online undergraduate programs in engineering and information technology, namely Computer Engineering, Electrical Engineering, Electronics Engineering, Industrial Engineering, Computer Science, and Information Technology.

The fully online programs uphold the same excellent quality of education as Mapúa’s internationally accredited on-campus counterparts’ (blended programs). They follow the principle of outcomes-based education, with curricula designed to attain the desired student outcomes that will make their graduates highly competitive and qualified for the professions they are prepared for.

Features and benefits of Mapúa ÚO^x

The Mapúa ÚO^x programs are facilitated through Mapúa’s strong digital capabilities composed of powerful educational tools and vast and up-to-date online learning resources. This expands the reach of its education globally, bringing its world-recognized education closer to Filipino homes.

The programs provide learners with the flexibility of “anytime, anywhere” education. They feature teaching and learning activities that are designed to be asynchronous, wherein there is no required real-time interaction between students and instructors. Students can access content and coursework at a time that best suits their schedule, with deadlines for completion and submission of assessment tasks and the University’s academic calendar being the only time considerations in these programs.

Furthermore, the flexibility of self-paced learning makes the required academic tasks not interfere with day-to-day routines like family life, chore time, or even leisure breaks, which allows students to develop other skills and pursue their passions alongside learning.

Getting assistance from the University will also be convenient for fully online students despite the remote learning setup, as Mapúa provides life coaches that act as advisers throughout students’ academic life. Life coaches closely assist on matters related to fully online studies, such as academic advising and enrollment, career advising and placement opportunities, goal setting, time management and social skills coaching, and other transactions with the University.

Creating this alternative to on-campus schooling presents excellent opportunities for learning for Filipinos. It has made Mapúa’s world-renowned education accessible to students, helping them earn their dream degree toward the attainment of their personal goals. This is also equally notable for parents who want to ensure their children the best education they desire for them regardless of geographical, time, and other constraints. The fully online programs follow Mapúa’s quarter system, and students may apply and enroll in any quarter in the academic year.

Visit https://www.mapua.edu.ph/DigitalAcademics/UndergraduatePrograms.aspx to learn more about Mapúa University’s fully online bachelor’s degree programs.

Applications for Academic Year 2022-2023 are ongoing. Interested students may apply online at https://www.mapua.edu.ph/ApplyNow2.aspx. To request more information about Mapúa University and your preferred programs, visit https://www.mapua.edu.ph/ExploreMapua.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Give the gift of holiday hygiene

November 22, 2021 | 8:00 am

Even though we’re two years well into the pandemic, you can’t deny that coronavirus essentials STILL make for no-brainer holiday presents.

So if you’re a practical gift-giver, here are our top BENCH/ Everyday Essentials for gifting:

BENCH/ Alcogel Ultimate Clean Air + Surface Disinfectant Spray

A room spray and a disinfectant in one, BENCH/’s Air + Surface Disinfectant Spray is definitely on the top of our nice-to-gift list! It comes in Powder Power, Lavender Dreams, and Ring Around a Rosey scents that have a fresh aroma that lingers, but never overpowers. Plus points because it’s also available in travel-sized 60ml bottles, so you can disinfect on-the-go!

BENCH/ Alcogel Antibacterial Hand and Body Wash

The perfect gift for the skindulgent friend who loves to give their skin a treat! This antibacterial hand and body wash from BENCH/ is infused with Argan Oil and Vitamin E for that smooth and moisturized feeling.

BENCH/ Alcogel Skin Antiseptic Solution

This BENCH/ Alcogel skin sanitizer kills 99.9% of bacteria to keep skin clean and germ free. The non-sticky formulation and long term effectiveness makes this product an essential for friends and family who are always out and about their daily activities.

BENCH/ Alcogel Clean Kitchen

Christmas is among the celebrations where the kitchen is essential. Good thing this all-natural brew BENCH/ Clean Kitchen Sanitizer does an impressive job keeping kitchens, utensils, surfaces, and even fresh produce spick-and-span clean and germ free!

BENCH/ Organics Lavender Castile Soap

This essential soap is perfect for the essential oil lover — or anyone for that matter! Why? With seven different uses (face, body, hair, shaving, dishes, surfaces, and washing fresh produce!), your giftee is sure to find this all-in-one lather useful.

Find these practical holiday gifts in BENCH/ stores nationwide, or at their official online store at https://shop.bench.com.ph/.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Finance chief bucks tax on super-rich

November 22, 2021 | 12:34 am

A PLAN TO TAX the super-rich could lead to aggressive tax avoidance schemes and drive investment out of the country, according to the Department of Finance (DoF).

In a letter to House Speaker Lord Allan Jay Q. Velasco, Finance Secretary Carlos G. Dominguez III said the proposal is unlikely to boost government revenue.

“While this wealth tax could initially lead to gains in tax collections, it could, at the same time, discourage growth and investments in the long haul,” the agency said in a separate statement at the weekend.

House Bill 10253 or the proposed Super-Rich Tax Act of 2021 will impose a tax of 1-3% on rich people.

Under the bill filed by a minority bloc at the House of Representatives, the tax would be used to fund for medical assistance, education, employment, social protection and housing for the poor.

The DoF estimated the bill would generate P57.6 billion in revenue each year, while some congressmen said the government could collect P236.7 billion from just 50 of the country’s richest.

But the agency said lost investments caused by the tax would cut the country’s revenue in the long run and reduce new jobs.

“There is a risk of capital flight if the wealth tax is passed in the Philippines,” Mr. Dominguez said.

Only four countries continue to implement the wealth tax — Belgium, Norway, Spain and Switzerland, he said.

“Many countries that had wealth taxes before ended up repealing the said measures particularly because of the increased capital mobility and access to tax havens in other countries,” he added.

Think tank IBON Foundation said the measure would generate P467.1 billion from 2,919 people who have taxable assets exceeding P1 billion. These super-rich account for 0.003% of the population and control 16% of the country’s wealth, it said.

This estimated revenue could fund P10,000 in emergency aid to 18.6 million poor households, subsidies for micro, small and medium enterprises to support a daily wage increase of P100 for three months and hiring additional health workers.

Nongovernment organization Freedom from Debt Coalition has been pushing for a wealth tax to finance the country’s COVID-19 pandemic response. It said candidates for the national elections should pledge that social development will take up a bigger portion of the country’s budget than debt payments.

Meanwhile, Mr. Dominguez said the proposed tax would discourage businesses from taking on riskier ventures that could benefit the public.

They will be subject to tax liabilities on the high capital value of their assets while they generate low profits at the start of operations, he said.

“Wealth taxes fail to significantly promote economic equality or create additional fiscal space,” the Finance chief said. “Moreover, net wealth taxes often failed to meet their redistributive goals as a result of their narrow tax bases, tax avoidance and tax evasion.”

He also expressed concerns about enforcement, citing the need to relax the Bank Secrecy Law and develop exchange of information agreements with other countries to assess wealth in the absence of a reliable database identifying the country’s richest. — Jenina P. Ibañez

Election spending not a concern for prices — BSP

November 22, 2021 | 12:33 am

By Luz Wendy T. Noble, Reporter

PHILIPPINE ELECTIONS next year are unlikely to cause consumer prices to spiral out of control because the economy remains below its full capacity, according to the central bank.

“It will not be significant enough to affect the path of inflation, which we see going back to within the target range in 2022,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco G. Dakila, Jr. told a news briefing on Boracay Island in central Philippines on Thursday.

“Demand conditions continue to be muted so any additional spending will come at a time when we are still operating below full capacity,” he added.

The Monetary Board on Thursday cut its inflation forecast for this year to 4.3% from 4.4%, though this is still above the BSP’s 2-4% target. Estimates for 2022 and 2023 were kept at 3.3% and 3.2%.

At the same meeting, the Monetary Board kept the key policy rates untouched at their record lows. Central bank Governor Benjamin E. Diokno said they need to keep supporting an economic recovery that has gained traction.

Election spending helps boost growth because it fuels consumption, but could cause faster inflation, Asian Institute of Management economist John Paulo R. Rivera said.

“While election spending accelerates the multiplier effects of consumption on economic growth, it also reinforces the pressure on inflation given the combined effects of holiday spending and premature campaigning,” he said in a Viber message.

Election-related spending contributed about 1% to economic output in past presidential elections, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

But the 2022 elections might be different amid restrictions related to a global coronavirus pandemic, he said in a Viber message.

“Election-related spending for 2022 could be reduced compared to previous elections amid greater focus on social media and some restrictions on person-to-person campaigning,” he said. “Campaign contributions from donors could also be reduced amid cost-cutting during the pandemic.”

Mr. Dakila said political developments are not a “significant consideration” in formulating monetary policy. “We have always been emphasizing that the decision of the board is guided by the inflation outlook.”

Inflation continued to exceed the target at 4.6% in October, though slower than 4.9% in September mainly due to a slower increase in food prices. Inflation averaged 4.5% for the 10 to October.

Mr. Dakila had said inflation might return to levels within the BSP target as early as this month. The central bank is set to review policy rates on Dec. 16.

Political dynasties dominate 2022 PHL elections

November 22, 2021 | 12:32 am

By Kyle Aristophere T. Atienza, Reporter

ELBERT JOHN HONORICA, 25, says he knows better than to vote for a presidential candidate who comes from a political dynasty, a main feature of Philippine politics.

“An alliance like that of the Marcoses, Dutertes and Arroyos is not unprecedented,” the millennial activist said in a Facebook Messenger chat. “The triple-threat alliance is simply shameless and shows their obvious thirst for power.

“In the Philippines, multiple parties compete in a political climate focused on personalities and dominated by powerful dynasties. President Rodrigo R. Duterte’s predecessor, the late Benigno S.C. Aquino III, was the son of former President Corazon C. Aquino, whose People Power Revolution ended the dictator’s more than 20-year rule.

More than 70,000 people were jailed, about 34,000 were tortured and more than 3,000 people died under the dictator’s martial rule, according to Amnesty International. The government has recovered P174 billion of the family’s ill-gotten assets, the Presidential Commission on Good Government has said.

The Dutertes also have their own brand of dynastic politics, having ruled Davao City in southern Philippines for decades. Mr. Duterte was a former mayor, while his daughter Sara Duterte-Carpio is the city’s chief now. Both her brothers are also into local politics.

Ms. Duterte-Carpio registered her candidacy for vice-president this month under the political party of ex-President Gloria Macapagal-Arroyo, a known powerbroker in Philippine politics.

The presidential daughter will run in tandem with the late dictator’s son Ferdinand “Bongbong” R. Marcos, Jr., who filed his candidacy for president in October.

“A Marcos-Duterte-Arroyo alliance will irreparably entrench dynastic rule in the country,” said Temmario C. Rivera, chairman of the Center for People Empowerment in Governance.

“While seething with its own internal rivalries and distrust of each other, even their temporary, opportunistic alliances will make it very difficult to mount political challenges against them,” he said in a Messenger chat.

Julio C. Teehankee, a political science professor at De La Salle University, said the alliance of powerful families would mark the peak of dynastic politics in the country, which seems to be aimed at protecting them from lawsuits and political persecution.

“Arroyo has been brokering the Marcos-Sara alliance,” he said in a Messenger chat. “The former queen has become the kingmaker. Even the best laid plan of mice and men can be countered by an equally crafty politician in the person of President Duterte.”

“That will serve as each family’s political protection — a dynastic consolidation for political survival,” he added.

The International Criminal Court (ICC) has ordered an investigation of Mr. Duterte’s crackdown on illegal drugs that has killed thousands, saying crimes against humanity might have been committed.

An infrastructure think tank warned that allowing dynasty members to hold national elective posts would worsen corruption in infrastructure projects.

“We can be more than certain that one of the major vehicles for dynastic plunder will be multibillion infrastructure projects due to the sheer magnitude of project costs and the prospect of massive but illicit value capture in a single project,” InfraWatch convenor Terry L. Ridon said in a Facebook Messenger chat.

He said corruption in public infrastructure would be worse under a dynastic regime because the whole family would benefit from it, not just a single politician.

Human rights activists and victims of Marcos martial rule have asked the Supreme Court to affirm a decision by the country’s anti-graft court charging former First Lady Imelda R. Marcos with seven counts of graft for illegally funneling at least $352 million to Swiss foundations in the 1970s when she was governor of Metropolitan Manila.

Civic leaders have also asked the Commission on Elections to block the presidential run of Marcos, Jr., saying he’s ineligible to run for office after a trial court convicted him in 1995 for failing to pay income taxes.

FAMILY INTERESTS
“This move shows that the Dutertes are also traditional politicians seeking to protect their interests, possibly hoping that if they win, the father can be saved from prosecution,” said Maria Ela L. Atienza, a political science professor from the University of the Philippines.

“The question here is which political family is allowing themselves to be used by the others,” she said in a Viber message. “As alliances of traditional politicians and political families go, there could be a time for them to eventually fight for dominance and the alliance will break up.”

Senator Christopher Lawrence T. Go, Mr. Duterte’s former aide, dropped out of the vice-presidential race and will run for president instead. This shows that some people in the Duterte camp distrust the Marcoses, who could not guarantee the ruling camp of greater political support, said Antonio Gabriel La Viña, a professor of law and politics at the Ateneo de Manila University.

“In the end, what matters to them is their personal or family interests, not of the people,” he said by telephone. They haven’t focused on the pandemic response and have failed to focus on their platforms.”

Jean Encinas-Franco, who also teaches political science at UP, said the failure of post-People Power administrations to reform the country’s political system is partly to blame for the mockery of the electoral process.

“They have abused the electoral process because they know that they can get away with it without accountability,” she said by telephone. “They downplay the intellect of the electorate.”

Mr. Rivera said personality-driven politics has been present in the country even before Mr. Marcos became president.

“Far more acrimonious is the relationship between Marcos and Arroyo going back all the way to the deep rivalry between the family patriarchs, former Presidents Diosdado Macapagal and Ferdinand, Sr.,” he said.

The two were bitter rivals in the Liberal Party, the political group of Vice-President Maria Leonor G. Robredo.

“They were bitter rivals in the Liberal Party and the latter switched party and joined the Nacionalista Party to run against the incumbent Macapagal for the presidency in 1965,” he said.

Mr. Macapagal and his daughter Gloria helped the anti-dictatorship movement that soon became her political enemy, he said. “The Gloria Arroyo who became president is another story.”

Ms. Franco said the significance of votes from religious blocks could not be ignored in a tight presidential race.

An important religious group is the Iglesia ni Cristo (INC), which is known to vote as a block. Its more than a million voters could be enough to swing the results, she said, noting that the bloc had historically backed the Marcoses.

The INC, which backed Mr. Duterte and the younger Mr. Marcos’s failed vice-presidential bid in 2016, is expected to support administration bets.

Political observers have said the next Philippine president would again fail to get the support of majority of voters.

A clan winner threatens the fight for political reforms, Ms. Atienza said. “The Marcos-Duterte team will be a threat to the fight against the dominance of political dynasties and personality-oriented politics.”

Chezka Decena, a 38-year-old Bongbong Marcos volunteer, begs to disagreee.

“My elders only had praises for the late Marcos,” she said by telephone. “There was no rape and crime during his time. I know when he declared martial law — there was anarchy.”

More than 70,000 people were jailed, about 34,000 were tortured and more than 3,000 people died under the dictator’s martial rule, according to Amnesty International.

Crop exports at risk from fading Chinese rebound

November 22, 2021 | 12:31 am

By Jenina P. Ibañez, Senior Reporter

EXPORTERS expect agricultural orders from China to slow as the country’s economic rebound fades, an industry group’s top official said.

“We expect that there might be some effects especially on agricultural products,” Philippine Exporters Confederation, Inc. (Philexport) President Sergio R. Ortiz-Luis, Jr. said by telephone. Mining exports won’t be affected, he added.

There have not been a significant cancellation in orders despite the expected slowdown, he said.

China’s economy grew by 4.9% in the third quarter, slower than expected and below the 7.9% growth in the second quarter after power shortages and supply chain constraints dampened recovery.

This poses risks to global recovery fueled by China’s raw material orders after the country quickly reopened during the initial stages of the pandemic, according to Bloomberg News.

China was the Philippines’ second-biggest export destination after the United States in the nine months through September, government data showed.

Exports to China worth $8.72 billion accounted for 15.7% of Philippine exports during the period, growing by 23% from a year earlier.

In September alone, Philippine exports to China declined by 14.7% year on year to $1.05 billion.

Despite China’s recovery slowdown, Mr. Ortiz-Luis said shipping containers that transport goods to China are available amid a global container shortage.

The global shipping industry has been facing a shortage of vessel space after demand bounced back in some countries, pushing freight rates higher and causing delays in the shipments of goods.

“There are boats that go to China even though there is a shortage,” Mr. Ortiz-Luis said in Filipino.

The economic slowdown in China poses a big challenge to global recovery, National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon said.

“From a global supply perspective, the Chinese economic slowdown could increase the cost of trade because of supply chain gaps,” she said in a Viber message.

Emerging markets and exporters could experience slower demand from China, she added. “For the Philippines, our strong macroeconomic fundamentals are expected to provide resiliency against external shocks, including a China slowdown.”

Trade and investment opportunities from China remain despite its slower economic growth, Trade Secretary Ramon M. Lopez said.

“There is still optimism but it can be viewed with caution given their slowdown, so we need to watch this development closely,” he said in a Viber message.

Mr. Lopez said the country should continue to develop manufacturing capacity for higher value-added products, diversify goods and services and expand market destinations.

The government should continue to pursue economic reforms such as opening up the country to more foreign investment, build on the infrastructure program and boost the country’s foreign trade agreements, he added.

Megaworld plans P6-billion business district in Bulacan

November 22, 2021 | 12:07 am

MEGAWORLD Corp. is planning a central business district called the Northwin Main Street, which will be located within its 85-hectare Northwin Global City township in Bulacan.

In an e-mailed statement on Saturday, Megaworld said the 16-hectare commercial district will offer 145 shophouse and commercial lots due for turnover in 2026. The company’s sales from the project are estimated to reach P6 billion.

“Since the township is just conveniently located along the North Luzon Expressway (NLEX), and just 20 kilometers away from Metro Manila, this will be the nearest business district outside of the capital where companies and businesses can build their shops and officers,” Megaworld Executive Vice-President for Sales and Marketing Noli D. Hernandez said.

“We also encourage entrepreneurs to become part of this global business district, which will soon be just 20 minutes away from the much-anticipated New Manila International Airport in Bulacan,” he added.

The commercial district will complement Megaworld’s P98-billion Northwin Global City township, which will also feature residential condominiums, hotels, malls, mixed-use commercial buildings, educational institutions, and office towers.

Megaworld said Northwin Main Street is designed to mimic Fifth Avenue in New York City, emphasizing its walkability. It will feature promenades and walking parks, with 44% of the district allocated for green and open spaces.

Its shophouse lots will be offered from 250 square meters (sq.m.) to 550 sq.m. Shophouses, which will be designed with a French-inspired architecture, may be built up to three-storeys high to accommodate retail, food, and beverage retailers.

Megaworld said the topmost floor of shophouses may also be used for residential or office purposes.

Meanwhile, its commercial lots span from 450 sq.m. to 750 sq.m. and may go up to five-storeys high and may be used for office or boutique hotels.

Shophouses and commercial lots will be lined up in pedestrian-friendly streets and it will also feature gardens and parks.

Megaworld shares on Friday closed lower by 0.60% or two centavos, finishing at P3.30 apiece. Megaworld shares on Friday closed lower by 0.60% or two centavos, finishing at P3.30 apiece. — Keren Concepcion G. Valmonte