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‘More equitable’ net metering needed for solar

By Angelica Y. Yang, Reporter

THE PRESIDENT of Energy Development Corp. said Monday that higher net metering rates will encourage power consumers to invest in solar technology for their homes and buildings.

“This simple policy change will accelerate the adoption of solar in our country,” Richard B. Tantoco, president and chief operating officer of Energy Development Corp. said during the virtual BusinessWorld Insights: Kickstarting Green Recovery event Monday.

Mr. Tantoco said that he participates in the government’s net metering scheme, which allows eligible customers to generate their own electricity through their own renewable energy (RE) facilities, with the excess power being exported to distribution utilities (DU) for peso credit which will offset their power bills.

He said he is able to sell the extra power generated by his solar panels at P4, but purchases electricity from his DU at almost thrice the price or P11.

“In other jurisdictions, this offsetting happens at a much more equitable rate like (in) Hawaii. For example, you can buy (from the grid) at P11 but when you produce extra, instead of selling it at P4, you (can) end up selling it at about P10,” Mr. Tantoco said.

There is a need to integrate RE into the power system, according to House Deputy Speaker and Antique Rep. Loren B. Legarda, who was also present during the event.

Based on estimates from the Energy department, coal accounted for 44.5% of the power generation mix, while RE sources made up a combined 25% in 2015.

“We need to cast out misplaced notions on RE. Otherwise, our limited understanding will cloud our ability to meet our goal of achieving energy independence. We need to wake up to the reality that coal and other fossil fuels are on their way to becoming stranded assets (and) obsolete,” Ms. Legarda said.

The legislator said RE sources provide clean and indigenous power. “They also provide thousands of green jobs for people, improve air quality and protect our ecosystems,” she said.

Greenpeace Southeast Asia Executive Director Naderev Sano said the transport, food, building, and energy sectors must reduce their carbon footprint in order to contribute to the green recovery.

He said climate change affects all sectors, and it is a duty to limit its effects.

“The planet is hurtling in a dangerous trajectory that may go beyond (the warning) beyond (the global temperature increase of) 1.5 degrees Celsius and we need to avert that,” he said.

Metro Pacific proposed toll structure approved for CALAX Subsection 5

MPCALA HOLDINGS

THE TOLL Regulatory Board (TRB) has issued a notice approving the fee structure for Cavite-Laguna Expressway (CALAX) Subsection 5, from Silang East Interchange to Santa Rosa-Tagaytay Interchange, which is due to open this quarter.

TRB Executive Director Alvin A. Carullo issued the notice on July 13. A copy of the notice has been posted on the TRB’s official website.

Class 1 vehicles or ordinary cars will pay P27, while Class 2 vehicles like buses and small trucks will pay P55.

P83 will be collected from large trucks or Class 3 vehicles.

MPCALA Holdings, Inc., a unit of Metro Pacific Tollways Corp. (MPTC), is hoping to open the Subsection 5 by the end of this month or the first week of August.

CALAX Subsection 5 is a 7.2-kilometer, 2×2 lane expressway that will link Sta. Rosa-Tagaytay Road to Silang, Cavite.

MPCALA Holdings said the section is expected to serve 5,000 vehicles daily once fully operational. It is expected to help decongest traffic along Governor’s Drive, Aguinaldo Highway, and Sta. Rosa-Tagaytay Road.

Currently, the operational segments of CALAX run from Mamplasan to Sta. Rosa, Laguna, serving approximately 10,000 vehicles daily.

“Upon completion, CALAX will span 45-kilometers with eight interchanges at the following locations: Kawit, Governor’s Drive, Open Canal, Silang (Aguinaldo) Highway, Silang East, Santa Rosa-Tagaytay, Laguna Boulevard, and Laguna Technopark. It shall serve about 45,000 vehicles while cutting travel time between Cavite and Laguna from two hours to under an hour,” MPCALA Holdings said in a recent statement.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

WESM central scheduling to continue in Mindanao — DoE

THE DEPARTMENT of Energy (DoE) ordered the power industry in Mindanao to carry on with the central scheduling scheme in place for the wholesale electricity spot market (WESM) until the department announces the date of commercial operations of the region’s spot market.

“All Mindanao electric power industry participants mandated to register in the WESM shall continue to participate in the WCS (WESM Central Scheduling) and shall comply with the guidelines, procedures, and instructions of the market operator and the system operator in the implementation of the same,” Energy Secretary Alfonso G. Cusi said in a July 24 advisory.

He said that generator trading participants in the region must follow the five-minute scheduling and dispatch of power based on the market management system, as well as the “re-dispatch” instructions of the National Grid Corp. of the Philippines.

Mr. Cusi added that participants must complete their WESM registration within the central scheduling period. Those who do not fulfill this requirement will face sanctions.

Entities including grid-connected and embedded generators required to register with the WESM must first participate in the WCS.

The market operator earlier said that there will be no WESM, WESM settlement or spot market transactions during the central scheduling period.

On June 26, the Independent Electricity Market Operator of the Philippines (IEMOP) rolled out the enhanced WESM design and operations setup in Luzon and Visayas. The improved setup reduces the time between the scheduling and dispatch of power to five minutes.

Around two weeks later, IEMOP noted an improvement in its peak demand projections, with accuracies of day-ahead forecasts hitting 94.7% in Luzon, 92% in Visayas and 96% in Mindanao.

Better forecasts give market participants access to accurate estimates in the changes of prices and conditions for the next day, IEMOP Manager of Operations Planning and Modeling Edward I. Olmedo has said. — Angelica Y. Yang

Taxpayer’s mental health matters!

Mental health includes our emotional, psychological, and social well-being.  If we find it difficult to handle stress, relate to others, and make choices, then there might be a problem.  This is generally applicable to all, and with a lot of problems in today’s trying times and various tax rules to think about, these can take their toll on taxpayers’ mental health.

So, how are you taxpayers?

Since the start of the lockdowns last year, there have been many developments in the Philippine tax environment that have proved to be alarming.  In 2020, one of the more popular topics was transfer pricing.  The message of the BIR in its issuances then was clear — it will strictly implement the Philippine transfer pricing rules.  Guidelines were issued on who are required to prepare transfer pricing documentation and how it should be prepared.  Even back in 2019, the BIR had set the tone by issuing a Revenue Audit Memorandum Order (RAMO) about Transfer Pricing Audit Guidelines containing the procedures on how the examiners are to evaluate a taxpayer’s related-party transactions. The issuance of the audit guidelines signaled that the BIR was gearing up to conduct an audit on taxpayers with regard to their compliance with the transfer pricing rules.

The possibility of a transfer pricing audit and the many regulatory issuances on transfer pricing may have created some anxiety on the part of the taxpayers, as many still believe that further guidance is forthcoming from the BIR. The cause of concern is mainly anchored on the recognition that transfer pricing is not an exact science. One might say there could be a wide range of possible disagreements between the BIR examiners and the taxpayer in a future tax audit, such as on the reasonableness of the number and quality of the comparable companies identified; the appropriateness of the alternative industry selected when, after following all the criteria in the BIR’s RAMO 1-2019, no comparable company has qualified; the differences in information at the time of preparation of the transfer pricing documentation as against the information already available at the time of BIR audit, among others. 

As the transfer pricing documentation involves judgment in various stages of preparation, some are anticipating that such judgments could differ from that of the BIR examiners at the time of audit; and hence, it might not be hard to predict the direction of court litigation on transfer pricing.  Unless there is further supplemental guidance on transfer pricing rules, taxpayers could be justified in feeling apprehensive about their prospects in court.

Another item that has been recently causing stress to the taxpayers is the influx of BIR notices of audit or letters of authority.  There are even some who have received a notice of audit for taxable year 2020.  Others are attending to BIR audits on more than one covered year simultaneously. For the finance and tax people, receiving such notices means a vast amount of work on top of their everyday duties.

While taxpayers understand that the government is just doing its job on tax audits, and particularly during these trying times when the government is in dire need of funds, the one that really causes worries and sleepless nights to the taxpayers is receiving an unreasonably long list of tax assessment findings. Surely, there are BIR examiners who are fair in their findings; but when a taxpayer is lucky enough to be assigned to some examiners who will issue a long list of findings, then that is when taxpayers may feel overwhelmed.

Thus, the wish of the taxpayers has always been to experience a more careful audit from the BIR examiners, as a letter from the BIR containing a long list of findings is enough to cause additional mental stress to a taxpayer.

There have also been recent debates about whether or not to impose the 12% value-added tax (VAT) on the local purchases of Philippine Economic Zone Authority (PEZA)-registered entities.  Discussions on matters related to the cross-border doctrine, on ecozones being a foreign territory, and on the applicability of VAT zero-rating to purchases that are “directly and exclusively” used in the registered project, among others, are all up in the air.

Some of the discussions revolve around the definition of “directly and exclusively,” as some interpretations would appear to put suppliers at risk of being exposed to a VAT deficiency finding in a future BIR audit, depending on the assessment by the PEZA-registered buyer as to whether its purchases are directly and exclusively used in its project.  What if the classification by the buyer turns out to be erroneous when evaluated by the BIR in its subsequent audit?  Can the supplier just pass on the VAT to the PEZA-registered buyer at the time of transaction as a conservative approach?  What if the buyer refuses to pay the VAT?  Could there be a mechanism that protects suppliers from being possibly exposed to VAT deficiency?

The above questions are just few of the many reservations that are causing mental strain and confusion among taxpayers, both to the suppliers and the PEZA-registered buyers.  It can be assumed that there are supplier’s billings still waiting to be issued, while the suppliers are waiting for further guidance from the regulators.

There are many other tax issues that a taxpayer encounters; if a taxpayer is not that resilient, some of these tax issues may unfortunately affect mental health.  While it is appreciated that the government listens to the taxpayers’ concerns and pleas, it would certainly help if everything gets cleared up in no time.  For the taxpayers, try to relieve your stress, find time to relax, and talk to a friend.  Remember — your mental health matters.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Olivier D. Aznar is a partner and head of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Skateboarder Didal misses out on podium finish

CARLO Paalam of the Philippines in action against Brendan Irvine of Ireland. — REUTERS

Boxers Nesthy Petecio, Carlo Paalam advance to next round

TOP Filipino skateboarder Margielyn Didal reached the finals of the women’s street skateboarding event at the Tokyo Olympics on Monday but missed out on landing a podium finish.

Made history by becoming one of the skateboarders in the sport’s Olympic debut, Ms. Didal, 22, finished seventh in the finals of the street competition held at the Ariake Urban Sports Park.

Meanwhile, boxers Nesthy Petecio and Carlo Paalam are through to the next round of their respective divisions.

Cebu native Didal booked a spot in the finals of the women’s street event by making it to the top 8 in the preliminaries with a score of 12.02, good for seventh place.

In the finals, she struggled, particularly in the tricks where she only managed to complete only one of her five tries with a score of 2.97 (second trick).

She wound up with a final score of 7.52, ahead of Japanese Nishimura Aori (6.92).

Japan, however, was the biggest winner in the event with 13-year-old Nishiya Momiji (15.26) taking gold and Nakayama Funa (14.49) winning bronze.

Brazilian Rayssa Leal (14.64) won the silver.

BOXERS ADVANCE
Also on Monday, boxers Nesthy Petecio and Carlo Paalam advanced their Olympic campaigns.

Women’s featherweight Petecio upset top seed Lin Yu-Ting of Chinese Taipei by split decision, 3-2, in their Round of 16 encounter at the Kokugikan Arena in Tokyo.

The judges scored it, 28-29, 29-28, 28-29, 29-28, 29-28, for the Filipino boxer.

Ms. Petecio of Davao del Sur had it tough against Ms. Lin in the first two rounds but dug deep and did just enough in the third to hack out the big win.

The featherweight boxing quarterfinal phase happens on July 28. If Ms. Petecio advances to the semifinals, she is already assured of an Olympic medal.

Meanwhile, flyweight Paalam won his opening-round bout, beating Ireland’s Brendan Irvine by split decision in their Round of 32 clash, 4-1.

The judges scored it, 30-27, 29-28, 28-29, 30-27, 29-28, in favor of the Bukidnon native.

Twenty-three-year-old Paalam started aggressive from the opening bell, trying to get early momentum from his taller opponent.

He was successful in doing so, landing solid blows to the body and head.

Mr. Irvine managed to land shots as the fight wore on but in the end, it was not enough to thrust him to the win.

Next for Mr. Paalam is a Round of 16 clash with Algeria’s Mohamed Flissi on July 31.

One last Filipino athlete was set to see action on Monday in weightlifter Hidilyn Diaz who was to compete in the -55kg category. Ms. Diaz was angling to improve on her silver medal-winning performance in the 2016 Olympic Games in Rio, Brazil. — Michael Angelo S. Murillo

Filipino rower Cris Nievarez savors Olympic experience, looks to come back stronger

FILIPINO Cris Nievarez grateful for a chance to get Olympic experience just as he vowed to come back stronger and better. — PHILIPPINE ROWING ASSOCIATION

FILIPINO rower Cris Nievarez’s Tokyo Olympics campaign came to an end on Sunday, but he remains grateful for the opportunity given to him just as he vowed to use the experience he got to come back stronger and better in the sport.

The Quezon Province native saw action in the quarterfinals of the men’s single sculls event at the Sea Forest Waterway in Tokyo where he finished fifth out of six competitors in his heat.

The result prevented him from advancing to the semifinals, where only the top three qualify, and meant the end of the push for him.

Despite falling short in his quest in his first-ever Olympics, 21-year-old Nievarez shared he still has a lot to be thankful for, including the chance to showcase Philippine rowing at the biggest stage.

“This is big for my experience. And I’m thankful for the chance I got here in the Tokyo Olympics. It will go a long way in helping to prepare me and be ready for future competitions. Hopefully, I can come back and compete in the next Olympics (in Paris in 2024),” Mr. Nievarez communicated to local media from Japan.

“Here, I was able to see the strengths of the other athletes and I also got see the aspects of my game that I have to improve on,” added the Philippine bet, who was the only qualifier in the men’s sculls event from Southeast Asia and one of two Asians who moved past the preliminaries.

For the Philippine Rowing Association (PRA), the performance of Mr. Nievarez in Tokyo is something to build on.

“He’s still young and this should only help him,” said PRA official Magnum Membrere. “He still has a lot ahead of him.”

Philippine rowing made its return in Tokyo after two decades. Before Mr. Nievarez, Benjamin Tolentino was the last Filipino rower to compete in the Olympics in 2000 in Sydney.

BARBOSA NOW BACK IN MANILA
Meanwhile, taekwondo jin Kurt Barbosa was the first Filipino Tokyo Olympian back in the country following his campaign.

Mr. Barbosa and his team arrived in the Philippines on Sunday night after finishing his Olympic bid on Saturday.

He fell to Korean top seed Jun Jang in the opening round of the -58kg division, losing, 6-26, relegating him to the repechage.

Unfortunately for Mr. Barbosa, his hopes of at least salvaging a bronze medal through the repechage were dashed after Mr. Jun suffered an upset loss, 19-25, in the semifinals at the hands of Tunisia’s Mohamed Khalil Jendoubi. Had the Korean made it to the finals, Mr. Barbosa would have seen action still and vie for a podium finish.

Also ending his campaign was shooter Jayson Valdez, who finished 44th out of 47 competitors in the 10m rifle shooting competition with a total of 612.6 points. — Michael Angelo S. Murillo

US men’s basketball team falls to France in first Olympics loss since 2004

KEVIN Wayne Durant of USA and Evan Fournier of France compete in the basketball game between France and USA during day 2 of the Tokyo 2020 Olympic Games on July 25 in Tokyo. — REUTERS

SAITAMA, Japan — The US men’s basketball team suffered a shock 83-76 defeat at the hands of France on Sunday, losing at the Olympics for the first time since 2004 and for just the sixth time in the history of the tournament.

The French had upset the US men when they last met in the 2019 International Basketball Federation (FIBA) World Cup quarterfinals and they had their number again on the first day of group play at the Saitama Super Arena, powered by a game-high 28 points from Evan Fournier.

“It felt good, it felt good,” Fournier told Reuters.

Moustapha Fall had high praise for his teammate.

“He is the offensive leader for us, always aggressive, always trying to score,” Fall said of Fournier. “We knew he was going to be our leader offensively and he assumed this role, so he is good for us.”

The Americans got out to a good start in the first half, leading 45-37 at the break on the back of their defensive energy, but were outscored 25-11 in a disastrous third quarter with France taking the lead.

Team USA clawed back to briefly regain the lead in the fourth quarter, but the French wouldn’t go away and took their first ever Olympic win versus the United States.

Star US player Kevin Durant was saddled with foul trouble early and found it hard to get into a rhythm. He fouled out near the end of the game.

The United States is always the team to beat at basketball — they now have a 138-6 record and have won gold 15 times since joining the Olympic program in 1936 — boasting more depth than any other country with their star-studded National Basketball Association (NBA) lineups.

But their recent form suggested reaching the top of the podium would not be as easy as in the past, after they dropped two straight exhibition games this month including a surprise loss to world 22nd-ranked Nigeria.

Preparations were also disrupted by the absence of players due to this year’s late NBA playoffs and late replacements due to COVID-19 protocols and injury.

Devin Booker, Jrue Holiday and Khris Middleton were finally able to join the team after the last game of the NBA finals on July 20. Holiday scored a team-high 18 points on Sunday despite having flown into Japan the day before.

US head coach Gregg Popovich said his team had to be more consistent, pointing to several leads they had let slip away.

“We gave all of those up. Because of a lack of consistent defense, too many errors on offense, possessions where we didn’t move and took ill-advised shots. So you understand it, look at it, put in the work and try to get better.”

In other Group A action on Sunday, the Czech Republic held on to beat Iran (84-78) after the Iranians had cut a 22-point deficit down to four points with less than a minute to go.

In Group B, Australia overcame a 22-turnover performance to top Nigeria (84-67), while Italy fought to a 92-82 win against Germany that saw the Italians pull away late after tightening up their defense.

In their next games on Wednesday, the United States will take on Iran and France will meet the Czechs, while Australia will face Italy and Germany will take on Nigeria.

NO PLAN TO RESCHEDULE MORE EVENTS AS STORM APPROACHES
Tokyo Olympic organizers said there is currently no plan to reschedule further events due to a tropical storm heading towards the main Japanese island of Honshu.

Rowing and archery events have been moved due to the storm, which is forecast to bring rain to the capital on Tuesday.

“At this time, there are no plans to change the schedule for any of the other events due to be held on Tuesday,” Tokyo 2020 spokesman Masa Takaya told reporters on Monday.

The storm is currently forecast to pass to the north of Tokyo, according to the website of the Japan Metereological Agency. — Reuters

Aussie ‘Terminator’ takes gold on pool duel with US’ Ledecky

TOKYO — The great pool rivalry between Australia and the US passed to a new generation on Monday when a 20-year-old known as “Terminator” hunted down the US dominator of women’s distance swimming in a dramatic 400m freestyle final in Tokyo.

Australian Ariarne Titmus clawed back Stanford graduate Katie Ledecky’s early lead to win gold, delaying the American’s quest for the three more gold medals that would make her the most successful female Olympic swimmer of all time.

“I can’t believe it, I’m trying to contain my emotions,” said Titmus, who praised her rival for raising the bar in the sport.

“I thanked her, I wouldn’t be here without her. She set this incredible standard. All credit to her for the swimmer she is.”

Team USA got their victory in the 4x100m men’s relay, beating Italy by more than a second with Australia taking the bronze.

British swimmer Adam Peaty roared with pride after he became the first Olympic swimmer to defend an Olympic title with a gold medal in the 100m breaststroke. Canadian Maggie MacNeil stormed to victory in a close women’s 100m butterfly.

The high-stakes swimming finals, staged in the morning in Tokyo to reach prime-time American television viewers, were held in a nearly empty aquatic center with spectators banned because of coronavirus disease 2019 (COVID-19) restrictions.

The loud cheers of one fan, however, were heard across the world when video footage of Titmus’ coach Dean Boxall headbanging and dancing in the stands became a focus for National Broadcasting Company (NBC) commentators and went viral, making him an instant Games meme. — Reuters

Chery Tiggo returns to winning ways, beats Perlas 

Jaja Santiago and the Chery Tiggo Crossovers bounced back from a loss in their previous game by defeating the Perlas Spikers in straight sets in PVL Open Conference action on Monday. (PVL Media Bureau) 

The Chery Tiggo Crossovers swung back to winning in the Premier Volleyball League Open Conference on Monday after defeating the Perlas Spikers in three sets, 25-10, 27-25, 25-23, in action held at the PCV Socio-Civic Cultural Center in Bacarra, Ilocos Norte. 

Dealt their first defeat last time around, the Crossovers made sure they would not fall in consecutive matches by staying the course amid the tough challenge presented by the Spikers. 

Jaja Santiago led Chery Tiggo in the win with 15 points, 11 coming from kills. Shaya Adorador added 12 points of her own while Dindin Santiago-Manabat and Arriane Layug chipped in eight and seven points, respectively. 

The Crossovers had their way in the opening set but were made to sweat by Perlas in the next two sets, with the second extended. 

Amid the challenge by the Spikers though, Chery Tiggo showed composure and resilience to hold off its opponent en route to the victory. 

“Definitely, I’m happy. A win is a win,” said Chery Tiggo coach Aaron Velez post-game. “But there’s a lot of work to do and we can’t relax.” 

The win took the Crossovers to a 3-1 record, solo third in the ongoing Open Conference. 

For Perlas, which dropped to a second straight defeat in as many matches, it was Sue Roces and Nicole Tiamzon who led the way with 11 points apiece. 

Chery Tiggo next plays on Wednesday against the Sta. Lucia Lady Realtors while Perlas takes on the Cignal HD Spikers on Thursday. —Michael Angelo S. Murillo

Lady Aces, Glow Boosters weekend winners at the WNBL

THE Parañaque Lady Aces and Glutagence Glow Boosters (in photo) were winners in weekend action of the Women’s National Basketball League. — WNBL

THE Parañaque Lady Aces and Glutagence Glow Boosters were winners in weekend action of the Women’s National Basketball League (WNBL) at the Bren Z. Guiao Convention Center in San Fernando, Pampanga.

Parañaque defeated the Pacific Water Queens, 85-56, in their game on Sunday, July 25, while Glutagence beat the Quezon Lady SparTAN, 75-60, the previous day.

Allana Lim took the lead role for the Lady Aces as she scored 18 points and grabbed 10 rebounds in their debut game in the first professional season of the WNBL.

Ms. Lim, the 2012 University Athletic Association of the Philippines most valuable player out of Far Eastern University, scored 12 of her total points in the opening half that saw them build a comfortable 41-24 advantage at the break. They did not look back from there.

Jhenn Angeles and Angeli Gloriani backstopped Ms. Lim with 12 and 11 points, respectively.

For the Queens, who dropped to their second defeat in as many matches, it was Snow Peñaranda who showed the way with 19 points and 12 rebounds.

Meanwhile, Glutagence kept its record spotless by notching its second straight win in as many matches at the expense of Quezon.

The Glow Boosters picked things up in the fourth canto, outscoring the Lady SparTAN, 26-6, to overturn a five-point deficit, 49-54, entering the payoff quarter, and creating separation from which the latter could not recover from.

Raiza Palmera-Dy led Glutagence anew in the win, tallying 22 points, nine rebounds, eight assists and two steals.

Micah Figuracion (13 points), Khate Castillo (12) and Carol Sangalang (8) also stepped up for the Glow Boosters.

Kristine Duran made 12 points and Dianne Ventura had nine points for Quezon.

WNBL action resumes on the weekend of July 31 and Aug. 1 which will see the Taguig Lady Generals making their debut and playing consecutive games against the Lady SparTAN and Pacific Water Queens, in that order. — MASM

Where to, workforce?

VECTOR JUICE-FREEPIK

If we were still of that age, when droves of students write up their CVs and send out resumes, we would be very worried. One, where do you apply for work? In my younger days, schools would send your names to prospective employers (like hotels as I took Hotel and Restaurant Management) and, with luck, you may land a job easily.

These days, the young are scared of getting sick, of working in a real office where they may get the virus, and instead may look for work online as virtual assistants, artists, or writers.

For the past 16 months, I have hired people for their talent, not for their educational background. We work virtually and I do not even ask from where or when they graduated. Mostly, referrals work — from friends who know exactly the service or work assistance I need — tech, artists, writers, and even social media teams.

So, where do our K-12 graduates go to seek employment?

THE INDOOR OFFICE
Online seems to be the answer.

1. It is safe. You need not go to a physical office but can get paid just the same.

2. It is practical. You need no uniforms or lunchboxes.

3. It is rewarding. People pay virtual assistants and employees who render service albeit virtually.

What about those who wish to work in QSRs (fast food places), coffee shops, and other food establishments? I am afraid that would be increased exposure to the elements.

Like water seeking its own level, the workforce, especially the younger new graduates of K-12 or those who even are in the middle of school, will tend to look at employment that’s safer and more practical. More people will want to work from home, and learn new skills that can make them employable, such as training from the Technical Education and Skills Development Authority (TESDA) and other tech-voc institutions. TESDA can teach you baking, welding, and even painting — skills which can make you employable in safer spaces.

THE OUTDOOR OFFICE
The other opportunity is in wide open spaces, like farms and gardens. The young can go to the K-12 senior track of Organic Agriculture, Farming, and other skills that bring you to safer open-air spaces for work or employment. K-12 has an Organic Agriculture track and the Department of Agriculture’s Agricultural Training Institute (ATI) has courses in just about anything related to growing food.

This development is going to make the youth go into agriculture or farming, rather than cruise ships and hotels or restaurants. Agriculture or farming are and would be safer than having to commute to the city, looking for a crowded boarding house, and eating bad food.

Our youth must be redirected to think “new normal.” There is wisdom in seeking safer places while being of use in society as a gainfully employed teen — which is the objective of K-12. It is unfortunate that many employers and parents still have not appreciated the merits of the program, which, of course, got eclipsed when college education was recently made free. However, college may not be the best path to employment in this new age. The key is practicality and safety. Where are you best placed? Indoors or online — or outdoors in an open-air environment like gardens and farms?

What are the skills you need to add to your K-12?

1. Online skills are in demand. Coding, STEM, social media marketing, SEO, SEM.

2. Practical skills in agriculture or agri-business. This is the new business idea.

3. Specialty art — painters, graphic artists, etc.

4. Writing — master Filipino or English writing and be a writer or virtual assistant.

There is life after lockdown. There are careers after online classes. But we need to look elsewhere and look away from traditional jobs.

This is the new reality for our youth. Even a college education may not be the best way forward.

And to our legislators and the Department of Education, please coordinate and think of how the K-12 program can be optimized. When we said K-12 graduates could get employed right away, did we tell employers how to employ them?

Maybe employers need a briefing or two on the K-12 program. And a change in mindset may soon be coming to Human Resource practitioners. If their boss or CEO says so. Just like how we explained CSR (corporate social responsibility) at the turn of the millennium, the CEO needs to be apprised of the merits of hiring just graduated K-12 teens. Or change the employment policies of big business. So the youth can find their rightful place to be useful in society.

Otherwise, K-12 may produce more “tambays,” adding to the unemployed statistics and a disillusioned next generation.

If you are a CEO or an HR practitioner, when was the last time you hired a newbie that finished 12th grade? If we must keep the youth busy and productive, we must change the way we formulate and enforce hiring policies in our companies.

At the next job interview, we must give the 12th grade graduate a chance. And maybe hone him or her into a most useful member of the next generation of leaders. Our country will be ruled by the young and keeping the young fearless, versatile, and hungry must be the way to do it.

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or MAP.

 

Chit U. Juan is a member of the MAP Inclusive Growth Committee and the President of the Philippine Coffee Board, Inc.

pujuan29@gmail.com

map@map.org.ph

http://map.org.ph

The world’s cascade of disasters is not a coincidence

MACROVECTOR-FREEPIK

“IT NEVER RAINS, but what it pours,” sang Judy Garland to Mickey Rooney in 1938, memorably describing what happens “if Lady Luck should happen to desert you.”

You stub your toe, ouch,

You hit your elbow, ooh,

You bump your head, ooh.

You step on a tack and you let out a howl.

There’s soap in your eyes and you can’t find a towel.

You try to comb your hair but can’t arrange it,

Spill orange juice on your dress and have to change it.

Then all day long

Everything you touch goes wrong.

“The same thing happens in life,” the song goes on. “But on a very much larger scale.”

Too right. Poor humanity just can’t catch a break these days. No sooner does the COVID-19 pandemic appear to be receding than a new Delta variant sweeps the world, far more contagious than earlier versions of the coronavirus. Simultaneously, there are disastrous floods in Europe’s Rhineland and China’s Henan Province. Huge wildfires rage in Siberia and in Oregon. And in a succession of countries — Afghanistan, Cuba, and Haiti, to name just three — political order threatens to break down.

The idea of a time of troubles — a period when somehow everything goes wrong — is deeply rooted in the human imagination. In the book of Exodus, God inflicts no fewer than 10 plagues on Egypt. He turns the water of the Nile into blood. He sends frogs, then lice, then flies, then a pestilence that kills the livestock, then a plague of festering boils, then a hailstorm, then locusts, and then three days of darkness. He signs off with a disease that kills the first-born children of every Egyptian family — not to mention the first-born calves.

It never rains but it pours.

God had a purpose in plaguing Egypt: to persuade the Pharaoh to release the Israelites from bondage. In our secular age, we seek similar meanings in bad times. The obvious inference from images of cars reduced to flotsam and jetsam by torrential rain in places as far apart as Kreuzberg and Zhengzhou is that we need to get a lot more serious about reducing greenhouse gas emissions. No doubt. But there is more to all this tribulation than that.

Superficially, in the phrase made famous by Lemony Snicket, it’s all just “a series of unfortunate events” — no more than a very nasty coincidence that the latest wave of the pandemic should happen at the same time as so many extreme weather events and a wave of social and political unrest. On closer inspection, however, we can see that there are connections between these disasters — and that they are in fact parts of interlocking trends.

It looks as if the world is bumping up against some kind of ceiling. It appears that, given the constraints of our existing energy technologies, we cannot support much more than our current population of 7.9 billion humans without destabilizing the planet, even though the United Nations projects that we shall get to 10.9 billion by the end of the century. I doubt that. As if to curb our numbers, our technological advances and demographic expansion have created ideal conditions for significant, life-shortening disasters.

It is precisely the expansion of human settlement that has increased the probability of new zoonotic diseases emerging. It is precisely the growth of international air travel that has increased the probability of pandemics. It is precisely the way we have constrained major rivers with dams and rigid banks that has increased the probability of disastrous flooding, quite apart from still-rising carbon dioxide emissions.

This is not to say that we cannot overcome these problems. History suggests that we can. European populations by the 1300s had become rather too large in relation to the basic technologies of that era, at a time when the world’s population was just over 390 million. With most people engaged in subsistence agriculture, it did not take much — a succession of bad years, of bad weather and bad harvests — to render the population highly susceptible to a pandemic of bubonic plague.

The population of England began to decline before the Black Death struck in the 1340s. The combination of climatic disappointments and a novel pathogen led to demographic disaster. The plague then unleashed a kind of cascade, as mass death led to economic and social dislocation, which in turn led to religious and political upheaval.

At this point we move from coincidence to causation. In a vain attempt to ward off further divine retribution, thousands of European men wandered from town to town as flagellants, whipping and scourging themselves in collective acts of expiation. At the same time, in numerous towns — especially in Germany — Christian communities turned on the Jewish minority, whom they blamed for the plague.

The Black Death fundamentally destabilized European society. Drastic population declines led to labor shortages which led, in turn, to attempts by landlords and the state to bind peasants more strictly to the land. In England, these measures ultimately precipitated the Peasants’ Revolt of 1381.

As in our time, plague and war competed to shorten lives. It is not easy to wage war in a time of pandemic, but somehow the English and the French managed. For the next 100 years, the warring kingdoms clashed on land and sea, the efforts to seize territory from one another generally petering out when their armies fell too sick to keep fighting. It was the same story in Italy.

We are not only 700 years ahead of the people of that time. We are countless scientific discoveries ahead of them. Nevertheless, our experience resembles theirs in eerie ways. Waves of pandemic coincide with severe weather. These natural disasters then precipitate economic, social, and political crises.

Predictably, it is some of the world’s weakest states that have been the first to succumb to this kind of contagion. With the US intent on remaking the movie Saigon 1975 in Kabul, Afghanistan is sinking back under the rule of the Taliban, a theocratic regime with a vision of social order that dates back even further than the Black Death.

Cuba, one of the last remaining communist dictatorships of the old type, is teetering on the brink of collapse, deprived of the revenue from tourism that kept its economy afloat and now held together (like its chilly northern European counterpart, Belarus) by brute repression. Haiti, a morass of anarchy and poverty that was barely a polity before, has now descended into complete mayhem following the assassination of its president, Jovenel Moise. Myanmar is on the brink of civil war in the wake of a military coup.

Other poor countries will go the same way. Some 155 million people across 55 countries suffered from acute food shortages or full-blown famine in 2020, according the 2021 Global Report on Food Crises, an increase of 20 million compared with 2019. The Democratic Republic of Congo and Yemen are among the hardest-hit countries. The latest Global Peace Index, published by the Institute for Economics and Peace (IEP), names Azerbaijan, Belarus, Burkina Faso, Honduras, and Zambia as the five “most deteriorated countries” in terms of political stability.

Yet this contagion from pandemic to political chaos is not confined to the most wretched nations of the earth. The IEP estimates that there was a 10% increase in violent demonstrations in 2020 from the year before. Political instability deteriorated in 46 countries.

Not all those countries were dirt poor. Half of all people in Brazil, Mexico, and the Dominican Republic report violence as the greatest risk to safety in their daily lives. Lebanon was once “the envy of the Arab world,” to quote Al Jazeera. But its per capita gross domestic product has fallen by a staggering 40% since 2018, the World Bank estimates, as a result of political paralysis, corruption, and inflation. South Africa is the richest country in sub-Saharan Africa. But more than 200 people died in political violence in KwaZulu-Natal and Gauteng following the imprisonment former President Jacob Zuma.

To an extent not fully appreciated, the US, too, is experiencing unrest and instability. Since the extraordinary wave of protest that followed the murder of George Floyd in Minneapolis last June, there has been a marked increase in urban violence, specifically in the number of homicides, which rose by 25% in 2020. (Data for 2021 are patchy, but in Chicago the 2020 level has thus far been maintained.) At the same time, the deterioration of conditions in Central America has led to surge of new migrants across the southern border.

Superficially — and to the relief of the mainstream media — political normalcy has been restored at the top, in the person of President Joe Biden, who has done his best to make the presidency dull again, after the four years of overexcitement under Donald Trump.

Yet this normalcy is illusory. Trump has not gone away. He remains the front-runner to be the Republican nominee in 2024. He retains an ardent base of supporters. Worse, the weird network of conspiracy theorists — who lean toward Trump politically — continues to deter a significant proportion of the population from getting vaccinated against COVID-19, ensuring that the next wave, brought to you by the Delta variant, will kill tens of thousands.

In a poll published last week, one in five American adults said it was definitely or probably true that “the US government is using the COVID vaccine to microchip the population.” Is there any real difference between such magical thinking and the superstitions that led medieval peasants to flog themselves?

The cascade of disaster is ubiquitous, in other words, as the social and political consequences of the pandemic, the lockdowns and extreme weather play out. Yet we should not deceive ourselves into thinking of 2020 as a strange annus horribilis that abruptly brought all these evils into the world. The trends toward both a pandemic and a crisis of public order were visible well before last year.

COVID-19 was not the first public health emergency caused by a new coronavirus. SARS in 2003 and MERS in 2012 provided the overture to this dance of death. In the same way, the global peace index shows that the rising trend of public protest can be traced back 10 years. The IEP estimates that what it calls “major unrest events” increased by 251% between 2011 and 2019. (Interestingly, the same is not true of either war or homicide, both of which declined globally.)

A new paper published by three economists at the International Monetary Fund identifies a rising frequency of social unrest events since the mid-1980s, with peaks in 1999, 2011, and 2019. As Metodij Hadzi-Vaskov, Samuel Pienknagura and Luca Ricci point out, there is a kind of feedback loop, whereby a major unrest event is associated with a one-percentage-point reduction in GDP six quarters after the event. They cite the yellow-vest protests in France in 2018 and the pro-democracy protests in Hong Kong a year later as examples of the process whereby unruly protests make a country’s economic situation significantly worse.

The most systematic attempt to explain such phenomena is by researchers led by Edward D. Lee at the Santa Fe Institute. Looking at statistics from the Armed Conflict Location & Event Data Project that cover warfare in Africa since 1997, Lee and his team hypothesize a kind of contagion effect. “At each newly infected region,” they write, “conflict becomes endemic, generating instability, news reports, and fatalities.”

What they call “conflict potency” only wanes as distance reduces both the relevance of the original bone of contention and the density of transport infrastructure. They describe the phenomenon of spreading violence as a “conflict avalanche.” I believe we are living through a global version of such an avalanche.

The reason I find this approach so attractive is it captures two important realities about the historical process. First, most states and societies are complex adaptive systems, meaning that the interactions of all the multiple elements are very difficult indeed to model accurately and are characterized by emergent properties and phase transitions. Second, the most important characteristic of human societies is the way social networks cause all kinds of contagion, from the spread of novel pathogens to the dissemination of crazy memes like “anti-vaxx.”

It is not for me to hypothesize what really lay behind the 10 plagues that struck Egypt during the captivity of the Israelites. Suffice to say that this was probably not the first time in human history that a combination of natural and man-made disasters left a whole nation vulnerable to multiple forms of contagion.

In the same way, there were reasons why Judy Garland had days when it didn’t just rain but poured. Addicted to amphetamines and barbiturates from an early age (booze came later), chronically insecure about her appearance, cursed in her love life (she was married five times), nearly always broke, and seriously suicidal on at least two occasions, Garland’s life was one of the great show-business train wrecks.

When Garland stubbed her toe, hit her elbow, and bumped her head, it was not just because Lady Luck had deserted her. In the same way, this cascade of disaster that we are living through is more than just bad luck; it has real and intertwined causes. Small wonder the billionaires have taken to exploring space. What used to be “the final frontier” is fast becoming the ultimate hedge. And at least in space it neither rains — nor pours.

BLOOMBERG OPINION