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PayPal launches crypto checkout service

LONDON — PayPal Holdings Inc. will announce that it has started allowing US consumers to use their cryptocurrency holdings to pay at millions of its online merchants globally, a move that could significantly boost use of digital assets in everyday commerce.

Customers who hold bitcoin, ether, bitcoin cash, and litecoin in PayPal digital wallets will now be able to convert their holdings into fiat currencies at checkouts to make purchases, the company said.

The service, which PayPal revealed it was working on late last year, will be available at all of its 29 million merchants in the coming months, the company said.

“This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet,” President and Chief Executive Officer Dan Schulman told Reuters ahead of a formal announcement.

Checkout with Crypto builds on the ability for PayPal users to buy, sell and hold cryptocurrencies, which the San Jose, California-based payments company launched in October.

The offering made PayPal one of the largest mainstream financial companies to open its network to cryptocurrencies and helped fuel a rally in virtual coin prices.

Bitcoin has nearly doubled in value since the start of this year, boosted by increased interest from larger financial firms that are betting on greater adoption and see it as a hedge against inflation.

PayPal’s launch comes less than a week after Tesla Inc. said it would start accepting bitcoin payments for its cars. Unlike PayPal transactions where merchants will be receiving fiat currency, Tesla said it will hold the bitcoin used as payment.

Still, while the nascent asset is gaining traction among mainstream investors, it has yet to become a widespread form of payment, due in part to its continued volatility.

PayPal hopes its service can change that, as by settling the transaction in fiat currency, merchants will not take on the volatility risk.

“We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants,” Mr. Schulman said.

The company will charge no transaction fee to checkout with crypto and only one type of coin can be used for each purchase, it said. — Reuters

 

How Bangladesh has changed

The country has come a long way since the ‘70s.

It is not often that Bangladesh is mentioned in international media. If there is news about the country, it is usually about a political crisis, natural disasters, or spectacular accidents. 

This is unfortunate since Bangladesh has enjoyed steady and strong economic growth in recent decades, which has benefited a large proportion of the country’s 165 million inhabitants. 

When Bangladesh became independent from Pakistan in 1971, it was one of the poorest countries in the world. What are the reasons for the strong economic growth that has benefited broad strata of the population?

I have been following the development in Bangladesh for over 40 years. During the latter half of 1970, I worked as a visiting research fellow at the Bangladesh Institute of Development Studies in Dhaka and participated in a major national poverty study. 

I was a social anthropologist and did fieldwork in a typical village for weeks and months at a time over a four-year period. People in the village were impoverished and were depending largely on employment and income from the agricultural sector. 

This was the case for most people in the country’s 60,000 villages at that time. The agricultural sector was characterized by simple technology and the output was very low. There were few jobs outside agriculture.

I saw poverty daily in the village where I lived, among my closest neighbors. It was primarily lack of food. 

Many poor families only ate one or two meals a day for long periods of the year. Few people could afford to buy chicken, meat, or fish. The nutritional situation was very bad, and many people became weak and ill. Child mortality was high and life expectancy short. Many people did not have access to clean water and the sanitary conditions were miserable. The public health and education services in the village were very bad. Almost no girls attended primary school. The international aid organizations and the Bangladesh authorities were pessimistic about the future for the country. 

After many years of absence from Bangladesh, I returned in 2009 to the country and the village I had lived in during the late 1970s. I was very happily surprised to see the positive economic and social transformation that had occurred in the village. 

I decided that I wanted to do a restudy of the village and during the period between 2010 and 2016, I again conducted fieldwork in the village on various occasions. I interviewed the same families I knew from the 1970s. Many of the old and grown-up people I knew from the past were dead, but I talked with their children who all recognized me. All families had a significantly higher standard of living. 

Nobody starved anymore and the poor and landless ate three meals a day and there was money left after the food had been purchased.

The increased material standard in the village was easily visible. The houses that people lived in were built of corrugated aluminum sheets or brick, not bamboo and straw as before. People had enough clothes and much better tools and equipment in their homes. 

The village had received electricity and all the families in the village were connected. Half of the families had bought televisions, and almost everyone had a radio and a mobile phone. Many families had their own water pump and the sanitary conditions had improved. 

In their homestead plot, many families in the village had several cows, goats, chicken, a vegetable garden, and fruit trees. Women earned their own income by selling milk, fruits, and vegetables in the market.

Not at least, many people in the village benefited from the new job opportunities that had been created outside agriculture. Many young women worked in the textile industry in the capital, Dhaka, and contributed to the family’s economy. 

The public education and health system had also improved significantly. The village school was nicely refurbished. All the children attended primary school and most completed and continued to secondary school. 

A few decades ago, women moved little outside the home. Much of the family’s honor was linked to keeping women and young girls in purdah, tucked away from public space. Today, girls and women have become far more “visible” and active in new areas of the village. 

In the morning and afternoon, the roads in the village were full of girls in fine school uniforms with books under their arms. This was an unthinkable sight 40 years ago. Many girls received scholarships paid by the government and international donors to attend school.

Health professionals visited the village regularly. All children received a vaccination book. One nurse told us that 80 percent of young married couples in the village used family planning methods.

How representative is the development of this village compared to what is currently 88,000 villages in the country? 

All national statistics confirm that the changes I saw in the village I studied have to a large extent occurred in most of the villages in Bangladesh.

The green revolution has taken place across much of the country. Total rice production has increased from 12 million tons in the 1970s to 36 million tons today. Bangladesh is more than self-sufficient in grain and can today export rice. 

Within a few years, Bangladesh is expected to pass China and become the world’s largest exporter of textiles. 

Today, 10 million people, mostly young men, are migrant workers and send back $15 billion a year to their families. Most work in the Middle East. Life expectancy in Bangladesh has increased from 59 years to 72 years over a 40-year period. 

Now, women give birth to an average of 2.3 children compared to six children in the 1970s. Almost all children are vaccinated, and all go to school. Bangladesh reached most of the Millennium Development Goals set by the UN.

Infrastructure has improved across the country. Huge bridges are built across the great rivers, Brahmaputra and Ganges, and link the country together. Bangladesh has become a large construction site.

No other developing country has given the voluntary organizations so much room for action. NGOs in Bangladesh have become a model for NGOs in other countries and the NGOs of Bangladesh export their ideas and working methods to NGOs worldwide. 

What is the reason Bangladesh has largely succeeded in its development over the last decades? 

Many would argue that an important reason is that the country has been integrated into the international labor market and that international companies are now investing in the country and creating millions of jobs for poor people.

Another reason is that the most important development actors: government, NGOs, and international donors have managed to cooperate well. The government of Bangladesh, unlike many other developing countries, has allowed NGOs to operate in many sectors across the country and international donors have provided financial support to many of these programs.

What role have foreign donor organizations played in Bangladesh? After independence, international donors poured much money into the country with the WB in the lead. 

As economic growth accelerated, aid declined. The voluntary organizations are today largely self-financed. Western embassies, formerly mainly engaged in development assistance and development programs, are now mostly engaged in creating business cooperation between their own country’s business companies and the companies in Bangladesh.

Is the development in Bangladesh a sunshine story? To a large extent, it is. 

The writer is a social anthropologist and has written several books on Bangladesh. This article was earlier published in Norwegian Daily, Klassekampen, in September 2019 and in Bangladesh Daily, The Dhaka Tribune, in January 2020. This is an abridged version. 

Bangabandhu lives forever

Bangabandhu will live forever in Bangladesh—the country he founded. One can kill a man but one cannot kill a spirit. Bangabandhu instilled in the hearts of millions the spirit of Bangali nationalism that inspired them to fight against all odds for their freedom and emancipation. Bangladesh is a sovereign and independent country today and it is primarily due to his bold and courageous leadership. All efforts of the reactionary elements to undermine him in the past have failed. One cannot draw a circle without a center nor can one write the history of our independence struggle without acknowledging Bangabandhu’s pivotal role. He is at the heart of Bangladesh and will always remain there.

The emergence of Bangladesh as a sovereign and independent state is one of the remarkable developments of the 20th century. It is an epic tale of how an unarmed but determined people defeated a well-armed repressive machinery. Three million people were killed, 10 million took shelter in India, and countless others were subjected to the worst forms of persecution in the hands of the occupation army. This genocide had little parallel in history. Finally justice and truth triumphed over injustice and falsehood.

Our armed struggle lasted for nine months, but our movement for freedom and independence had been more than two decades long. It passed through various phases, movements for protecting our language and our ethnic identity, for grant of autonomy on the basis of Six Points, mass upsurge of 1969, elections of 1970 and finally, our glorious war of independence. Bangabandhu played a central role in all these phases. Some elaboration is needed to put our movement for independence in its correct historical perspective.

The Muslims of Bengal had passionately supported the Pakistan movement as they had believed that the creation of a separate Muslim homeland would emancipate them from British colonial rule as well as economic domination. Unfortunately, the ruling Pakistani clique turned out to be the new exploiters which had no interest in the welfare of the Bangalis. Their only interest was to economically exploit the Bangalis, and to obliterate their linguistic and cultural identity.

Soon after the creation of Pakistan, Urdu, the language of the minority in the western wing, was declared as the sole state language over Bangla—the language of the majority, who lived in the eastern wing. In the historic language movement, Bangabandhu played a central role to protect our mother tongue Bangla. Bengalis are the only nation in recorded history who had laid down their lives to protect their language. The Pakistani authorities had to bow down to public demand and restore Bangla’s due national status. The conspiracy, however, continued.

The Pakistani ruling clique dissolved four western provinces and created an amalgamated West Pakistan and renamed East Bengal as East Pakistan with a strong central government. Bangabandhu, as the elected representative of the people to the constituent assembly, protested against the Pakistani design to wipe out our ethnic identity. He demanded that Bengal’s ethnic identity must be respected and that a referendum or a plebiscite should be held to seek public mandate to this change of name.

Bangabandhu fought against the military regime of Ayub Khan and continued to press for grant of full autonomy to East Bengal. His historic Six Points demand for autonomy provided the “charter of survival” for Bangalis. The Pakistani ruling clique opposed it and even tried to intimidate Bangabandhu by starting the Agartala conspiracy case against him. He was undeterred. In the face of mass upsurge of 1969, the Ayub regime caved in and released Bangabandhu unconditionally. They invited him to a political dialogue to extract a concession from him on the question of autonomy, but he flatly refused.

On Dec. 5, 1969 at a public meeting, Bangabandhu underlined that “there was a time when all efforts were made to erase the word Bengal from this land and map. The existence of the word Bengal was found nowhere except in the term Bay of Bengal.” He announced at that meeting that “East Pakistan” henceforth would be called “Bangladesh.” From that moment, creation of Bangladesh became the Bangalis’ cherished goal and they never looked back.

His charismatic and bold leadership inspired millions and they gave him and his party, Awami League, absolute majority at the National Assembly elections in November 1970. The new Pakistani military ruler Yahya Khan tried to entice him with all kinds of offers, including the Prime Ministership of Pakistan but he refused to betray the trust and confidence reposed in him by his people.

When Yahya postponed the National Assembly session at the behest of the West Pakistani leader Zulfikar Ali Bhutto, Bangabandhu, in his historic Seventh March speech categorically told his people: “The struggle this time is the struggle for emancipation; the struggle this time is the struggle for our independence. Since we have given blood we will give more blood. God willing, the people of this country would be liberated. Turn every house into fort; face the enemy with whatever you have… Victory shall be ours. Joy Bangla!” The people responded to this clarion call wholeheartedly.

Before the occupation army arrested him and started the genocide, Bangabandhu sent a message to the nation: “This may be my last message; from today Bangladesh is independent. I call upon you, the people of Bangladesh, wherever you might be and whatever you have, to resist the army of occupation to the last. Your fight must go on until the last soldier of the Pakistan occupation army is expelled from the soil of Bangladesh. Final victory is ours.” This call was carried by the Reuters and was published in the international press.

People fought bravely against all odds and Bangalis paid the heaviest price for freedom and independence. Bangladesh was born and soon thereafter, Bangabandhu returned after nine months of captivity. Dhaka went delirious and millions were on the streets to receive him. Before landing, the British comet, which brought him from London, circled for 45 minutes over the countryside, in deference to Bangabandhu’s desire to see his “Shonar Bangla.”

As a freedom fighter diplomat posted in Washington DC in 1971, I must recall here with deep appreciation and gratitude, the wholehearted support and cooperation that we had received from the Government and people of India during the critical period of our nationhood. The emotional bond that  was established in 1971 remain a dominant  factor in the country’s political, cultural and social wave and guide us in establishing close and cooperative ties with our largest neighbor, India.

Bangabandhu suffered more than anybody in the hands of Pakistanis and their cohorts and yet, in his first speech, he asked his people to exercise restraint and not to take revenge against them. If Bangabandhu had not returned, many feared that there would have been a bloodbath in Bangladesh. Alas, these reactionary forces were behind his killings three years later.

At the international level, Bangabandhu had a unique position. It is largely due to his personal appeal that nearly 100 countries, including most of the major powers, recognized Bangladesh within a few months. Again, due to his personal interceding with the Indian leadership, India withdrew its troops within three months from Bangladesh. This is an unprecedented event in contemporary history. The United Nations, even before Bangladesh was admitted as a member, set up UNROD (subsequently UNROB after Bangladesh’s admission)—the largest international relief and reconstruction efforts under its aegis.

On the basis of Bangabandhu’s foreign policy based on peaceful coexistence and “friendship to all and malice towards none,” Bangladesh was able to establish close and cooperative ties with all the countries of the world, and Bangladesh joined the Non-aligned Movement (NAM), the Commonwealth, the Organisation of Islamic Conference (OIC), and finally the United Nations. At his speech at the UN, he announced that “peace is an imperative for the survival of mankind. It represents the deepest aspirations of men and women throughout the world. Peace to endure, however, must be based on justice.”

At home, the country was largely able to restore its totally devastated economic infrastructure; millions of refugees returned home from India and thousands of stranded Bangladeshis returned from Pakistan. The country adopted its first constitution providing the basic guideline of the newly independent state. The country’s first five-year plan was adopted which inter alia, gave primary emphasis on education, health, agriculture, and rural development. The basic aim of the plan was to alleviate poverty and build Shonar Bangla.

On Aug. 15, 1975, Bangabandhu and members of his family were murdered. His two daughters Sheikh Hasina and Sheikh Rehana survived as they were abroad at that time. Bangabandhu may have been killed by the assassins, but his indomitable spirit still inspires his countrymen to build Shonar Bangla. It is a matter of great satisfaction that Bangladesh, under the dynamic leadership of his able daughter Prime Minister Sheikh Hasina has made giant strides during the recent years and the country aspires to reach the middle income level status within a matter of years. Bangladesh today is not a “bottomless basket” but it is one of the fastest economies in the world. That day is not too far when Bangabandhu’s dream of Shonar Bangla will be fulfilled.

Long live Bangabandhu!

The writer is a former Foreign Secretary of Bangladesh. This article was earlier published in a publication of Bangladesh High Commission in India in 2018.

2GO Group, Inc. sets schedule of virtual stockholders’ meeting

AyalaLand, Inc. announces schedule of virtual stockholders’ meeting

Philippine National Bank sets stockholder’s meeting via remote communication

Notice-of-ASM-Newsprint

Jobless Filipinos hit 4.2M in Feb.

By Lourdes O. Pilar, Researcher

THE RANKS of jobless Filipinos increased in February, a month before the government tightened lockdown restrictions in Metro Manila and nearby provinces due to a surge in coronavirus disease 2019 (COVID-19) cases, according to the latest data on jobs.

Preliminary results of the Philippine Statistics Authority’s (PSA) February 2021 round of the Labor Force Survey (LFS) released on Tuesday showed there were about 4.187 million unemployed Filipinos. This was more than the 3.953 million recorded in the January round.

This put the unemployment rate at 8.8% in February, up from 8.7% in January.

Philippine labor force situation (Feb. 2021)

The February reading was the third highest since the jobless rates recorded in April 2020 and July 2020 at 17.6% and 10%, respectively.

The February survey round marked the first of the monthly surveys to be conducted by the PSA to closely monitor the current job situation in the country amid the pandemic. In previous years, the surveys were conducted and released quarterly.

Meanwhile, the underemployment rate — the proportion of those already working but still looking for more work or longer working hours — worsened to 18.2% in February from 16% in January. This translated to 7.85 million underemployed Filipinos, more than the 6.589 million in the previous survey.

“Although the unemployment rate marginally increased to 8.8% in February 2021 from 8.7% in January 2021, the gradual reopening of the economy allowed more people to rejoin the labor force,” Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua, Finance Secretary Carlos G. Dominguez III, and Budget and Management Secretary Wendel E. Avisado said in a joint statement.

The size of the labor force was about 47.341 million in February, up from 45.201 million in January. This brought the labor force participation rate to 63.5% from 60.5%.. This was the highest since April 2020, according to the PSA.

The employment rate — the proportion of the employed to the total labor force — stood at 91.2% in February, down from 91.3% in January. In absolute terms, however, the number of employed Filipinos increased to 43.153 million from 41.248 million in January.

“This means we have surpassed our pre-pandemic employment level of 42.6 million in January 2020,” the economic managers said.

The employment rate in the service sector increased to 58.4% in February from 57.2% in the previous month. On the other hand, those in agriculture and industry slipped to 23.9% (from 24.4%) and 17.7% (from 18.4%), respectively.

In absolute terms, there were 1.6 million jobs restored in services, followed by 259,000 in agriculture and 46,000 in industry. The economic managers said this trend “signals rising economic activity.”

“Around 8.7 million jobs were lost when we imposed the strictest quarantine from March to May 2020. As we carefully relaxed our restrictions, more jobs were gradually restored and the total number of jobs created since April last year at 9.3 million led to employment exceeding pre-COVID levels in February 2021,” they said.

Working hours averaged 38.9 a week, fewer than the average of 39.3 in January.

Full-time workers, or those who worked for at least 40 hours  a week, made up 59.9% of the total employed in February. This was lower than 61.4% in January.

Meanwhile, part-time workers accounted for 38.5%, up from the previous month’s 38.1%.

“Even as the economy has been said to be reopening [at the beginning of 2021], these February employment numbers are seemingly telling a different story,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

“Reopening should mean the return of jobs, but instead, unemployment has risen including underemployment,” he said. “This may mean that more firms are probably shedding off jobs or are closing down resulting in direct unemployed people or people employed in ‘part-time’ jobs. These part-time jobs may mean that people work fewer hours or full-time jobs but have lower pay due to the pandemic challenges,” he added.

In a separate e-mail, ING Bank N.V. Manila Branch Senior Economist Nicholas Antonio T. Mapa said regardless of the level of lockdown, economic activity and the job market would remain subdued and challenged “given the substantial loss of momentum in the economy.”

“The overall negative sentiment has caused households to cut back on spending to just the bare necessities and perhaps modest discretionary spending, limiting economic activity,” he said. “Meanwhile, with firms pressured by the downturn, not too many are in expansion mode, limiting job opportunities available for job seekers,” Mr. Mapa said.

“We are well past the stage that lockdowns are causing hunger and unemployment, the economy is stuck in low gear,” he added.

Asked on the prospects of jobs data going back to pre-pandemic levels, both economists were not so upbeat.

“Until we see the economy charging again at its former breakneck speed, we will predict that unemployment will remain above its medium-term average of 5.3%. Unless the economy is expanding fast enough to absorb the slack in labor, jobs for Filipinos will be few and far between,” Mr. Mapa said.

UnionBank’s Mr. Asuncion said unemployment and labor force participation “may worsen” due to the challenges posed by the ongoing pandemic.

“We are expecting recovery (normalization) of jobs set back further because of the re-imposition of restrictions lately. The initial expectation was to return to pre-pandemic GDP (gross domestic product) level by [the second half of 2022], thus, this may be moved farther to the end of 2022,” Mr. Asuncion said.

“Any form of people movement restriction can undermine jobs recovery, and we continue to hold the view that the quick and effective rollout of COVID-19 vaccines is a main driver of economic recovery and consumption and investment confidence,” he added.

The Philippine economy slumped to a record 9.5% last year as it implemented one of the longest and most stringent lockdowns in the world.

This year was seen to be a period of economic recovery as the government gradually reopens sectors of the economy. Recent developments, however, put a damper on this outlook.

The government has placed Metro Manila and the provinces of Bulacan, Rizal, Cavite, and Laguna under enhanced community quarantine, the strictest lockdown level, for two weeks until April 4 due to a surge in COVID-19 infections.

The Department of Health reported 9,296 new COVID-19 cases on Tuesday, bringing the total number of cases to 741,181 and active cases to a record 124,680.

Philippines back to square one a year into pandemic as virus cases surge

By Norman P. Aquino, Special Reports Editor
and Vann Marlo M. Villegas, Reporter

SARAH J. FERNANDEZ (names have been changed) invited several relatives and friends to her house in Manila for her 38th birthday this month, while the capital and nearby cities were experiencing a fresh surge in coronavirus infections.

Several days later, she developed flu-like symptoms and had difficulty breathing. She and her two brothers got hospitalized and were found to have been infected with the coronavirus.

Meanwhile, the Santiago family in the village of Doña Josefa in Las Piñas City invited friends over to a party, a week before President Rodrigo R. Duterte placed the capital region and nearby provinces under a strict lockdown this month.

Guests without face masks were seen spilling into a portion of the street while the loud party went on into the wee hours of the morning.

A year into the pandemic, daily infections in the Philippines are at their peak and highly contagious variants of the COVID-19 virus are sweeping the nation, largely due to a slow vaccine rollout and widespread complacency.

Health authorities reported 10,016 coronavirus infections on March 29, the highest daily tally since the pandemic started last year. About 732,000 people in the Philippines have gotten sick from the virus, while more than 13,000 have died.

The increase in infections is not unique to the Philippines, World Health Organization (WHO) Country Representative Rabindra Abeyasinghe told an online news briefing this month.

He cited widespread complacency because of “vaccine optimism” after the government started its vaccination drive on March 1 using 600,000 CoronaVac doses donated by China.

“It’s the small changes at the individual level, but at a community level it has opened a room for the virus transmission to increase,” Mr. Abeyasinghe said. “We need to become more vigilant and more compliant with the requirements.”

Rising infections might also be due to the circulation of more contagious coronavirus variants, he said.

Fredegusto Guido P. David, a research fellow at the OCTA Research Group from the University of the Philippines, earlier said daily cases might hit 11,000 by end-March due to people’s failure to comply with health protocols.

The group also expects total bed and intensive care units for coronavirus patients in Metro Manila to reach full capacity this week if the current rate of transmission continues.

“These projections suggest that the current surge in the capital is at a critical juncture,” he said in an e-mailed report.

Mr. Duterte locked down the entire Luzon island in March last year, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

‘IT’S THE VIRUS’
It took several months before quarantines were relaxed and businesses were allowed to reopen. Now, it’s back to square one despite a vaccination program that prioritizes health workers.

The President again put Manila, the capital and nearby cities and provinces under a strict weeklong lockdown until April 4 to ease pressure on dwindling hospital beds amid a spike in daily cases.

Active coronavirus cases in the Philippines may almost quadruple to 430,000 by the end of April if stricter quarantine measures were not imposed, the Department of Health (DoH) said on Monday.

Metro Manila and the provinces of Bulacan, Cavite and Rizal were at “critical risk” given the swift rise in infections, while Laguna is at high risk, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing.

“It’s not because of the government,” Presidential Spokesperson Herminio “Harry” L. Roque, Jr., who said the state response against the pandemic had been “excellent,” said this week. “It’s because of the virus,” he added, blaming COVID-19 variants that are more contagious.

On Monday night, Mr. Duterte said he would allow private companies to import coronavirus vaccines amid the slow rollout of the government’s vaccination program.

“I have ordered Secretary Carlito Galvez to sign any and all documents that would allow the private sector to import at will,” he said in a televised speech. “Whatever amount they want,” he said in Filipino.

The private sector would be allowed to buy vaccines immediately because state vaccine supply had been limited amid a “ruckus” in the global vaccine trade, Mr. Duterte said.

The government had prevented companies from importing coronavirus vaccines unless it was in coordination with the Health department.

Mr. David noted that while strict quarantines are frowned upon because of its effects on the economy, there’s no doubt that it’s very effective in controlling the pandemic.

“We don’t support lockdowns totally because it affects the economy,” he said in a Zoom Cloud Meetings interview. But it was the only way to slow infections at the height of the pandemic last year and maybe now as well.

“Since we didn’t know what was happening, the lockdown was the only method,” he said. “It’s a primitive method but it was the only way to curb the pandemic.”

Antonio L. Dans, a member of Health Professionals Alliance Against COVID-19, said “there’s no question that it was the right move.”

“If we had not called for that lockdown in March, by November in Metro Manila alone, we would have seen 10 million infected, two million hospitalized and 180,000 deaths,” he said in a Zoom interview. “We averted those by going on a lockdown.”

Critics have said the Philippines could have avoided more lockdowns — one of the longest and strictest in the world — had the government aggressively negotiated access to the vaccines being developed last year.

Filipinos generally distrust vaccines and science, with only 25% Metro Manila residents willing to get vaccinated against the coronavirus, according to a poll by OCTA in December. About 47% of the respondents were undecided, while 28% said they would not get the shot.

The Philippine government had been unable to vaccinate at least 250,000 Filipinos daily to meet its 50 million goal this year due to supply problems. Only 656,331 people have been vaccinated against the coronavirus as of March 27, according to DoH.

Mr. Duterte has said rich countries were being prioritized by drugmakers.

With a gross domestic product (GDP) per capita of $9,471, the Philippines ranked 76th among the poorest countries last year.

But poorer nations such as Bangladesh, Cambodia and Còte d’Ivoire, with a GDP per capita of $5,028, $4,664 and $4,457, respectively, got their vaccines before the Philippines, according to the website Our World in Data.

Nicholas Antonio T. Mapa, a senior economist at ING Bank N.V. Manila, said lockdowns might be needed to control the surge.

“However, they do inflict severe damage on the economy,” he said in an e-mail. “Thus, it’s important for us to address the health issue.”

Mr. Mapa expects the Philippine economy to recover by the end of next year. “Any delays to the vaccine rollout will push this back further.”

Jarlien Valdez, a 36-year-old sales staff in Manila, is worried about losing her job if the enhanced quarantine in the capital was extended. “I need to feed three kids, so it’s difficult,” she said in a Facebook Messenger chat.

She lost her job temporarily when the shop she works at was shut down at the height of the pandemic last year. She returned to work four months later but got a pay cut because of the shortened work days.

Ms. Fernandez, mentioned at the outset, regrets being careless.

“I wish I was more careful and avoided social events,” she said. “I was lucky to have recovered, along with my brothers. I think I’ve learned my lesson.”

PHL raises P24B via Samurai bonds

THE PHILIPPINES raised ¥55 billion (P24.2 billion) from a three-year, Japanese yen-denominated “Samurai” bond offering, the Bureau of the Treasury (BTr) said on Tuesday.

The note, which has a coupon set at 0.001%, is a discount bond, which the IFR financial news service described as “an unusual structure in the cross-border yen bond market.”

The Treasury said in a statement this was the Philippines’ first bond issuance in Japan to fetch a zero coupon rate.

Finance Secretary Carlos G. Dominguez III said the government returned to the samurai bond market “while rates are still relatively low.”

The Treasury upsized the volume of samurai bonds it sold to ¥55 billion from the initial plan of ¥30 billion, due to strong investor demand. The bonds were priced at 21 basis points (bps) above benchmark, or the tightest spread the government had so far in the market since 2018.

The proceeds of the fund-raising activity will be used for budgetary support and repayment of maturing government debt.

“The landmark transaction highlights the government’s capability to respond to challenging times with creative solutions to free up fiscal space to augment the National Government’s COVID-19 (coronavirus disease 2019) response,” National Treasurer Rosalia V. de Leon said in a statement.

Moody’s Investors Service assigned a senior unsecured rating of “Baa2,” while S&P Global Ratings gave a “BBB+” rating to the Japanese yen-denominated bond, similar to current sovereign rating given by the two agencies to the Philippines.

The bonds will be settled on April 13 and will mature on April 12, 2024.

“This bond offering brings to light the government’s relentless drive to generate sufficient resources to fund its COVID-19 response and other priority programs that are meant to return the country soon enough to the path of high and inclusive growth,” Mr. Dominguez said.

SMBC Nikko Securities, Inc. served as the sole lead manager and book runner for the deal.

Last year, the government shelved its plan to tap the Samurai bond market as it opted to take advantage of the strong liquidity in the domestic market.

The last time the BTr issued Japanese yen-denominated bonds was in August 2019, when it raised ¥92 billion across four tenors.

Moody’s said the Philippines has “stable access to funding at moderate costs” and could support its future fiscal consolidation plans after the pandemic, given its track record of prudent economic and fiscal management and robust banking system.

“Unless the Philippines faces a significant and prolonged drop in remittances and an acceleration in the fragmentation of regional supply chains, growth potential will continue to be boosted by favorable demographics and ongoing improvements in the investment climate,” it said.

The debt watcher said a rating upgrade is possible once the government has restored its fiscal and debt position that had been dragged by the ongoing pandemic, and the economy returns to pre-crisis growth rate.

Meanwhile, it said a downgrade is possible if its fiscal and debt metrics worsens further, existing policies that support economic and fiscal strength are reversed, and if the strength of institutions and the government weakens.

The Philippines, one of Asia’s most-active sovereign bond issuers, plans to raise as much as $5.5 billion from the commercial debt markets this year to plug a budget deficit that covers the government’s pandemic response measures, including vaccine orders and flagship infrastructure projects. — Beatrice M. Laforga with Reuters

Deficit balloons in Feb. as spending picks up

By Beatrice M. Laforga, Reporter

THE NATIONAL GOVERNMENT’S budget deficit more than tripled to P116 billion in February against its year-ago level, as the double-digit growth in spending outpaced the uptick in revenues, the Bureau of the Treasury (BTr) reported on Tuesday.

In its latest cash operations report, preliminary BTr data showed the budget deficit more than tripled last month from P37.6 billion in February 2020. It was also wider than the P14-billion fiscal gap in January.

The Treasury attributed the wider budget gap to the faster pace of spending versus revenue growth, after the government released P45 billion in additional capital to state-run financial institutions for their credit guarantee and lending programs.

The government runs on a budget deficit if it spends more than the revenue it generates. Tax collections have declined amid a slowdown in economic activity due to the pandemic. The government is increasing spending to drive the recovery this year.

Overall state spending jumped by 37.3% to P335.5 billion in February from P244.4 billion a year ago. This was also faster than the 1.18% increase in January spending.

Primary spending — total expenditures less interest payments — surged by a third to P304.4 billion from P229 billion a year ago, driven by the additional capital given to three state-led financial institutions.

As part of the second stimulus package of the government, the Development Bank of the Philippines (DBP) received P12.5 billion in additional funds, while the Land Bank of the Philippines got P27.5 billion. The Philippine Guarantee Corp. likewise received P5 billion in additional capital to expand its credit guarantee to banks lending to small businesses.

Interest payments nearly doubled to P31.2 billion in February, after the Treasury settled coupon payments for the retail Treasury bonds (RTBs) issued last year and interest was paid for the euro-denominated bonds sold last year.

Total revenues grew by 6.2% to P219.6 billion in February from P206.8 billion a year ago, a turnaround from the 11.5% contraction in January.

Tax revenues, which accounted for 93% of total revenues, climbed by 7.3% year on year to P203.3 billion.

The Bureau of Internal Revenue (BIR) collected P154.1 billion, up by 8.4% from a year ago. The Bureau of Customs (BoC) generated P47.2 billion in duties and taxes, up by 5.35%.

This partly offset the 19% slump in taxes collected by other offices to P1.9 billion in February.

Meanwhile, revenues from non-tax sources such as the proceeds from privatization efforts and other fees and charges fell by 37.3% from a year ago to P16.3 billion.

The Treasury posted P4.6 billion in income, down by 22% year on year due to lower collections from Philippine Amusement and Gaming Corp. and investments.

Nontax revenues generated by other offices inched up by 1.37% to P11.7 billion.

The February deficit caused the two-month fiscal gap to surge almost nine times to P130 billion from P14.6 billion in the same period last year.

Total spending grew 18.27% to P610.3 billion from P516 billion a year ago. This was driven by the 21% jump in primary expenditures which hit P532 billion.

Interest payments also went up slightly by 1.85% to P78.2 billion.

Despite the higher income last month, the January-February revenues of P480.3 billion was still 4.22% lower year on year due to reduced tax collections.

The BIR collections fell by 0.24% to P336.3 billion in those two months, while Customs reported a 6.2% drop to P94.5 billion in revenues. Taxes collected by other state offices were also down by 3.15% to P5.2 billion.

Non-tax revenues also remained below than year-ago levels, which declined by 24% year on year to P44.3 billion.

The BTr’s income went down by 32% to P23.2 billion due to lower dividends, while non-tax income by other offices likewise slipped by 12% to P21.1 billion.

The proportion of interest payments relative to total spending eased to 12.81% as of end-February, from 14.88% in the same period last year. As a percentage of revenues, interests paid accounted for 16.28%, higher than the 15.31% a year ago.

Economists expect the monthly fiscal gap to widen further in the coming months, as the government further ramps up spending to drive economic growth.

“I believe that spending should follow the set programmed expenditure and additional spending, if needed, is something that has to go through Congress. If the recent re-imposed restrictions should continue, the Duterte government should finally seriously consider a third fiscal stimulus to help support the economy and its already slower-than-expected recovery,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

Cid L. Terosa, senior economist at University of Asia and the Pacific, said the muted rebound in tax collections amid the crisis will mean a further widening of the budget deficit in the coming months.

“As the economy recovers, gains in revenue collections will continue to be modest as long as the administration of the mass vaccination program continues at a tortuous pace,” Mr. Terosa said.

The economy is struggling to recover, as the snail-paced mass vaccination rollout dampens business sentiment. The tighter lockdown and surging infection rates are also  further threatening the overall outlook.

“Slower economic growth can lower the rate of increase in tax collections. The long and winding road to economic recovery that the country is traversing implies that the faster generation of more and more revenues will take time as well,” Mr. Terosa added.

The government set a cap for its budget deficit this year at 8.9% of gross domestic product.

National Government Fiscal Performance

National Literature Month celebration looks back at 500 years of history

LIKE other forms of art, literature mirrors our country’s culture and history as Filipinos. Five hundred years of the Filipinos’ story will be explored in this year’s celebration of National Literature Month.

The National Commission for Culture and the Arts (NCCA), together with the Komisyon sa Wikang Filipino (KWF) and the National Book Development Board (NBDB) mark the 7th National Literature Month in April with online workshops, talks, and contests.

This year’s celebration carries the theme, “Limandaang Taon ng Pagsulat sa Kalibutang Filipino” (500 Years of Writing the Filipino World),” coinciding with the quincentennial of the introduction of Christianity in the Philippines.

Kung marami tayong manunulat noong nakaraan sa ating kasaysayan, marami mga bagong manunulat sa kasalukuyan na dapat binibigyang halaga natin upang magsilbing gabay ng mga kabataan sa mga susunod na henerasyon (If we have had renowned writers in history, there are also many new writers today whom we have to value so that they may serve as an inspiration to the youth in the generations to come),” Arthur P. Casanova, KWF Chairperson, said in an online press conference on March 26 held via Zoom and streamed through Facebook.

Ang pag-aaral ng panitikan ay magbibigay daan sa pagpapayaman ng magagandang kinagisnan, at mahigit na pagbubutihin natin ang kasalukuyan na hinaharap dahil sa ating patuloy na pagtangkilik ng ating panitikan (Studying literature paves the way to enrich what we grew up with, and we will face the present better because of our continued support of our literature),” Mr. Casanova added.

LOCAL LANGUAGES AND CHRISTIANITY
To kick-off the month-long celebration, a virtual celebration featuring a wreath-laying ceremony to commemorate Araw ni Balagtas on April 2 (which is the birthday of Florante at Laura author Francisco “Balagtas” Baltazar) at Orion, Bataan.

The KWF will hold a series of online webinars streamed through Facebook (https://www.facebook.com/komfilgov) at 10 a.m. to noon on the following dates: April 5, “Wikang Katutubo: Wika ng Dekolonisasyon” (Native Languages: Language of Decolonization) with anthropologist Dr. Alicia Magos of the University of the Philippines Visayas; April 12, “Mulang Babaylan hanggang kay Darna at ang Di-Matapos-tapos na Pakikibaka ng mga Filipina” (From the Babaylan to Darna and the never ending fight for liberation of Filipinas) with speaker Dr. Raquel Buban of De La Salle University (DLSU);  April 19, “Kasaysayan: Batis ng Panitikan” (History: Spring of Literature) with speaker Dr. Lhai Taylan of DLSU; and April 26, “Pagsasalin Mula Wikang Katutubo Tungong Filipino Bilang Kultural na Dekolonisasyon at Pagsasa-Filipino ng Filipino” (Translation from Native Languages into Filipino as a Cultural Decolonization and Filipinizing Filipino) with Ilokano language and culture expert, Dr. Leo Tejano.

The writers union Unyon ng mga Manunulat ng Pilipinas (UMPIL) will hold the lecture series “UMPILan sa Facebook Live!” (https://www.facebook.com/UnyonNgMgaManunulatSaPilipinas) on April 7, 3 p.m., with the first lecture, given by Fr. Jose Mario Francisco SJ and Leo Zafra, focusing on the significance and the correlation of Christianity with Philippine literature. The rest of the episodes will be held on the succeeding Saturdays of April at 3 p.m. Speakers include Dr. Alicia Magos and Dr. Allan Derain on April 10; Dr. Agnes Brazal and Dr. Jayeel Cornelio on April 17; and Dr. Nerissa Balce and Dr. Jovito Cariño on April 24.

PROMOTING ORAL TRADITIONS
The National Committee on Literary Arts will launch the online “Reading the National Artists for Literature Series” (https://www.facebook.com/National-Committee-on-Literary-Arts-105263157841382), this time focusing on the works of Carlos P. Romulo (in cooperation with University of the Philippines — Baguio) and Jose Garcia Villa (in cooperation with Ateneo de Manila University School of Humanities) on April 16 and 23, respectively. Dr. Jose Dalisay, Jr., Professor Emeritus of the UP Diliman Department of English, will lead the conversation on the works of Pulitzer Prize awardee Carlos P. Romulo while Dr. Jonathan Chua, Dean of the School of Humanities of Ateneo de Manila, will discuss National Artist for Literature Jose Garcia Villa. An online symposium on the works of award-winning playwright and writer Dr. Isagani Cruz, “Isagani R. Cruz: A Beautiful Mind,” will be held on April 24 (2 to 4 p.m.). It will feature speakers Dr. Ronald Baytan, Dr. Isidoro Cruz, Dr. Shirley Lua, and Dr. John Iremil Teodoro as they explore and examine the depth of Mr. Cruz’ writing and research.

The National Committee on Literary Arts will also focus on promoting Filipino oral forms and traditions with an online competition series which will be held in Batanes. The “Timpalak Florentino H. Hornedo: Ang Paglikha at Pag-awit ng Laji (Bersiyong Onlayn)” aims to encourage writing and singing of the traditional Ivatan literary art form, laji.

Meanwhile, two new competitions will be highlighting the balitaw in Visayas and leleng in Mindanao — participatory songs sung during special occasions. Launching in their respective regions on April 5, the “Timpalak Leleng” is open to high school students from the Zamboanga Peninsula, while “Timpalak Balitaw” is open to secondary and college students of Cebu, Bohol, Negros Oriental, and Siquijor.

PHILIPPINE INTERNATIONAL LITERARY FESTIVAL
Other activities include the NBDB’s 12th Philippine International Literary Festival (PILF), which will be the first edition of the festival to run all year long.

According to a press release, this year’s PILF will focus on a “clear-eyed reexamination of Philippine history through the country’s literary outputs and ideas in the past 500 years.”

The first of the festival’s many activities include Author on Author webinars covering topics about historical research, post-pandemic futures, and the pre-Hispanic Philippine script Baybayin. In addition, the NBDB will also launch a nationwide virtual tour of independent bookstores called My Book, My Cities Interactive Map: Manila which will be available through Google maps. Schedules for webinars and the release of the interactive map will be posted on NBDB’s official Facebook page (https://www.facebook.com/nbdb.phil).

The NBDB’s upcoming projects include a nationwide library building program for indegenous communities which will begin in July. “This plan is to help encourage reading by making quality materials accessible even to those living in remote areas,” NBDB Chairperson Dante Ang II said.

“In doing so, we hope to promote award winning books in other words published by Filipino publishers, and recognized not only by NBDB, but also by other associations and organizations that give awards to such exemplary works. These efforts are symbolic of NBDB’s pivot to focus more on national book publishing development,” he added.

NBDB’s flagship program, Booklatan sa Bayan, is currently hosting its online workshops on writing stories for children.

Closing the celebration of National Literature Month is UMPIL’s Gawad Pambansang Alagad ni Balagtas, Benitez, at Bucaneg which recognizes the works of the established writers and scholars on Philippine literature. The awards ceremony will be live streamed via the UMPIL Facebook page (https://www.facebook.com/UnyonNgMgaManunulatSaPilipinas) on April 30.

The awardees for the Gawad Pambansang Alagad ni Balagtas are Albert Alejo, SJ (Poetry and Translation in Filipino), Joel David (Film Criticism in English), Patrick Flores (Art Criticism in English), Luisa Igloria (Poetry in English), Michael Obenieta (Poetry in Cebuano), Bibeth Orteza (Screenplay), and Jessica Zafra (Fiction and Essay in English). In addition, Dr. Lily Rose Tope of UP Diliman will be awarded the Gawad Paz Marquez Benitez while the Communication Foundation for Asia will be honored with the Gawad Pedro Bucaneg.

For more information, visit the NCCA’s official Facebook page.  Michelle Anne P. Soliman

Car importers expect flat to 20% sales growth

By Jenina P. Ibañez, Reporter

IMPORTED car sales in 2021 could span between flat to 20% growth, which could depend on the government’s final decision on safeguard duties, Association of Vehicle Importers and Distributors, Inc. (AVID) President Ma. Fe Perez-Agudo said.

The Trade department slapped 200-day provisional safeguard duties on imported cars to protect local jobs after it found a link between a decline in local industry employment and an import surge, based on a petition from an auto parts labor group.

“The best scenario is we will still achieve 20% growth this year with or without safeguard measures,” Ms. Agudo said at a BusinessWorld Velocity online event on Tuesday.

“The worst scenario of course will be, there will still be a flat growth this year, coming of course from a very low base last year.”

AVID reported a 41% sales drop to 51,719 units in 2020 compared with the 87,169 vehicles sold in 2019 due to the lockdowns declared to contain the pandemic and weak consumer demand.

In February 2021, imported car sales declined 15% to 5,401 vehicles compared with 6,342 in the same month last year, although month-on-month sales increased by 3%.

The industry expects a slowdown during the 200 days the duties are applied as the companies await the results of the Tariff Commission’s investigation, Ms. Agudo said. Car companies have started raising prices as they collect deposits for imported cars during the provisional period.

“At the same time, [we’re] calibrating our options as most industry players are doing right now, because the real impact if this is passed would still be felt probably by the last quarter of this year when, really, we have already zero inventory of the pre-safeguard tax measure pricing,” Ms. Agudo said.

“But I still go for the positive outcome because people would still continue to need mobility.”

Ms. Agudo said that some passenger car sales remain strong as consumers buy low-ticket or cheaper units.

“I could see traction going to utility vehicles because it will provide both support for transportation of people and cargo transportation,” she added.

Similarly, Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) President Rommel R. Gutierrez said that the industry group expects 30-35% growth this year, but that projection could drop to 20-25% if the duties derail recovery efforts. The recovery of the car industry to pre-pandemic sales, he said, could be as late as 2023.

The Safeguard Measures Act or Republic Act No. 8800 allows domestic producers to ask the government to conduct an investigation into their import competitors if they claim to have been injured by excessive imports.

Workers group Philippine Metalworkers Alliance, which had petitioned for the safeguards, said that the duties are not enough to save the industry. The group said that the government must revisit its car industry development program and address the high costs of power and transportation.