Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7365

The perfect storm: Why the Philippines faces prolonged economic pain

The country faces a perfect storm leading to prolonged economic pain. Yes, not a V-shaped recovery as a government spokesmen would like us to believe, but more like an L, with just a slightly elevated but elongated leg (the slight elevation coming more from base effects rather than real recovery).

There are numerous factors causing the perfect storm.

First is a highly political budget, more appropriate for elections rather than dealing with a still untamed pandemic and healing the economic scars of an extended lockdown. Hefty increases have been heaped on the Department of Transportation (DoTr) and Department of Public Works and Highways (DPWH), two departments known for “pork” and “corruption” but whose track record in effective spending is poor. According to Senator Frank Drilon, the DPWH budget contains P345 billion in lump sum appropriations, technically known as “pork.”


In contrast, the Department of Health has suffered a cut in the budget even if the total number of COVID-19 cases continue to rise. A mere P2.5 billion has been allocated for vaccines. The new House leadership has reportedly increased this, but Senator Ping Lacson is questioning the constitutionality of making changes to the House budget after it had been passed on third reading.

Agriculture, the star of the economy during the lockdown having registered a 1.2% positive growth rate, has also suffered a budget reduction.

On the other hand, P16.4 billion has been allocated to fight insurgency through barangay pacification operations to be supervised by the National Task Force to End Local Communist Armed Conflict (NTC-ELCAC), an amount bigger than that of the Department of Trade and Industry (P5 billion).

Second, monetary policy has proven to be ineffective even if the Bangko Sentral ng Pilipinas (BSP) has pumped money into the banking system. Credit growth in the last quarter was negative. Banks have been investing in government securities instead. As John Maynard Keynes said, fighting a recession with monetary policy is like “pushing on a piece of string.”

The only real effective macroeconomic tool to fight a pandemic-caused recession is fiscal policy because consumption and investment spending has shriveled. Unfortunately, fiscal spending is fraught with inefficiency, incompetence, and corruption. Exhibit No. 1 is the multi-billion peso losses due to fraud from PhilHealth, the frontliner health institution. Perhaps, the “trust-deficit” is the reason why the P1.3-trillion ARISE economic stimulus was never considered.

Third, the amount of fiscal stimuli is parsimonious. The amounts under Bayanihan I and II which can really qualify as stimulus are no more than 3% of GDP. Even then, under Bayanihan I, the Department of Social Welfare and Development (DSWD) left some P10 billion unspent. Under Bayanihan II, with just two months to go, the Department of Budget and Management (DBM) hasn’t released about P40 billion.

The economic managers are saying that the CREATE (Corporate Recover and Tax Incentives for Enterprises) bill, if passed into law, will stimulate the economy. CREATE will lower corporate income taxes from 30% to 25% immediately and 1% thereafter until the rate reaches 20%.

CREATE is the wrong prescription for the demand shock caused by the pandemic. A tax cut in the face of a demand shock won’t work. It will benefit only large profitable corporations rather than MSMEs which are facing losses and credit cutoffs. With no consumer demand, businesses are more likely to pay dividends, give their management unrestricted bonuses, stash money in government securities, or buy back stock.

It will only work if the investment climate is favorable and large investments flow in, but the demand shock, the restrictive laws against foreign investment, President Duterte’s tirades against the private sector, and the poor infrastructure indicate that the private sector won’t invest the tax savings.

On the contrary, if more investments don’t come in order to increase tax revenue, the government eventually has to pass more consumption taxes to limit the runaway deficit, magnifying the demand shock.

Fourth, labor rigidities embodied in Philippine Labor laws mean that the excess labor supply in the labor market won’t “clear.” Therefore, employment and income growth will be sluggish. In market economics, if the supply of a particular commodity is much more than demand, the price of that commodity should fall for the market to absorb the excess supply. However, because of minimum wage laws and other wage and labor rigidities (26 official holidays, 13th month pay, security of tenure, etc.) capitalists are unlikely to hire even if there’s a mass of unemployed. On the contrary, due to the strong peso, which makes capital imports cheaper, the low interest rates, and the lessons of the pandemic, capitalists are more likely to automate should demand pick up.

The resulting negative feedback loop — slow employment growth leading to lower incomes and lower consumption leading to low investment — will lead to persistent sluggish economic growth.

Fifth, the international market won’t provide any immediate hope either. The global economy will shrink by 3% this year, according to the IMF. With the US and Europe seeing second and third waves of the pandemic, it’s unlikely that our export sector will revive anytime soon. On top of this, the tourism market is barely alive and may take two more years to revive.

Sixth, other factors will continue to dampen consumption spending, which accounts for some 70% of the economy. Overseas remittances have declined in the first six months from January to June. While there was a slight uptick in June and July probably due to seasonal increase for tuition payments, remittances fell sharply again in August. About 400,000 OFWs have also lost high paying jobs in industries as diverse as construction and cruise ships.

The strong peso has also decreased the disposable peso incomes of OFWs. Their families are likely to tighten belts further.

On the other hand, the strong peso is a strong indicator of a very weak economy, with imports falling more than exports.

Seventh, the Philippines is the worst in managing the pandemic in Asia and there’s no indication that the pandemic will be under control anytime soon. The problem is that while the government has improved testing and treatment capacity, it still must improve significantly on the tracing part. Therefore, the government is more likely to be reliant on dumb lockdowns rather than smart, focused quarantine of exposed persons should the infection rate start rising again with looser restrictions.

Even if vaccines become available, it’s unlikely that a majority of the population will get vaccines before 2022. Almost all vaccines, except one, being developed require two shots and must be transported in vials using refrigerated facilities. Can the government be trusted to do the procurement and logistics of mass vaccination?

Eighth, with elections coming in a year and half from now, the political situation doesn’t augur well for the government focusing on managing the pandemic or for passing economic reforms. A taste of that was the bitter infighting over the Speakership between Lord Allan Velasco and Alan Peter Cayetano and the fight over the pork-laden budget. Only a small window exists next year until senators and congressmen get distracted by the coming elections in 2022 while President Rodrigo Duterte focuses on getting his anointed one elected.

Ninth, President Duterte’s health is a huge uncertainty hanging over his leadership. The uneven state of his health could complicate the campaign against the pandemic and an economic recovery plan. There were instances during the past six months of the lockdown when he seemed ill and distracted and had delegated all the decisions to subordinates whose decisions totally disregarded the negative effects on the economy.

Tenth, the European Union parliament is threatening to cut the Philippines off its GSP plus trade privileges over alleged human rights violations of the Duterte administration. Some 400,000 jobs would be lost if factories servicing the EU market shut down without tariff free access to the EU market.

Finally, there’s huge geopolitical uncertainty which could turn negative for the country. The increased tensions over Taiwan increase the risk of a conflict among China, Taiwan, and the USA in an area close to the Philippines. As a treaty ally of the United States, the Philippines may also be dragged in.

Moreover, the election of Joe Biden to the US Presidency can bring enhanced US pressure on the Philippine government over human rights violations, affecting trade relations and deterring US investors.

I’m not alone in forecasting prolonged economic pain. The IMF has named the Philippines number one in the world in terms of economic scars from the coronavirus ().

However, it would be interesting to see how President Duterte will respond to the cratering economy as he seeks to give a boost to the election chances of his anointed one in 2022. There are indications that in the face of recent doleful numbers, his administration is rushing to open the economy. He has also lifted the ban on gas exploration in the South China Sea, which, if China accepts, could lead to a peaceful settlement of the South China Sea issue.

There’s a perfect storm alright. Can President Duterte steer us out of it? Or will the country end up like the ill-fated Andrea Gail in the movie The Perfect Storm?

 

Calixto V. Chikiamco is a board director of the Institute for Development and Econometric Analysis.

idea.introspectiv@gmail.com

www.idea.org.ph

Building a resilient community through an inclusive local economy

In an effort to address the years of stagnation of the rice sector, the Rice Tariffication Law (RTL) was signed into law on Feb. 14, 2020. The RTL should increase the rice competitiveness of the Philippines and improve the rice farmers’ well-being.

There are, however, lots of criticisms of the RTL, mainly on its negative impact on the farmers. Due to the import liberalization of rice, the price of rice has gone down, thus benefiting  consumers, but which lowered the price of palay (unhusked rice), and thus lowering the income of rice farmers.

In Palimbang, Sultan Kudarat, there is, however, a growing community of rice farmers who seem not to be negatively affected by the RTL. A closer look at this community would show us that the seeds of an inclusive local economy have started to grow.

A rice milling enterprise has been set up called Molenaar, which is a joint venture between farmers, local entrepreneurs, and overseas Filipinos. It has a farm machinery pool consisting of tractors, planters, rotary weeders and harvesters. This farm machinery pool will soon be transformed into a social business, meaning that all profits will be spent on further developing and expanding the farm machinery pool.

Molenaar has started to break the farmers’ dependency on the rice traders. The increased mechanization of rice farming has lowered the production cost of palay. Molenaar is able to offer a reasonable price for the palay. Farmers serviced by the farm machinery pool and Molenaar are no longer at the mercy of rice traders for the price of their palay, thus making them weather the negative impact of the RTL.

This also offers possibilities for rice farmers to optimally benefit from the various components of the RTL. The farm machinery pool, which is operated in a business-like manner, is an ideal structure through which rice farmers can avail themselves of the mechanization program of the RCEP (Rice Competitiveness Enhancement Program). Experience has already shown that giving machines to individual farmers often does not result in the mechanization of rice farming. Machines which were earlier distributed by the Department of Agriculture (DA) to individual farmers were unused. Several farmers turned over their machines to the farm machinery pool for them to be managed. A business-like manner of operation will ensure that the machines are well-maintained and are efficiently used, thus serving more farmers.

This developing inclusive local economy in Palimbang is not just limited to the rice sector. The indigenous Manobo people in the highlands of Palimbang are planting vegetables, and selling their vegetables to people in the lowlands of Palimbang. This program was enabled by the Pasali Foundation through the help of the ALS-EST (Alternative Learning System – Education and Skills Training). Recently, a local entrepreneur in Palimbang has set up a fishing business. Small economic activities, such as selling cakes and pizzas — food items which are normally available in city shopping malls, have emerged.

Developing an inclusive local economy has helped make Palimbang a resilient community, despite the COVID-19 pandemic. It is a kind of resiliency that has protected the citizens from the negative economic impact of the pandemic as it has contributed to the community’s food self-reliance.

This developing inclusive local economy in Palimbang is a result of years of painstaking effort of the community, with support from overseas Filipinos, specifically from The Netherlands. To understand how this inclusive local economy evolved in Palimbang, let me walk you to a bit of the history of our work in Palimbang.

HOW IT ALL STARTED
In 2004, Pasali Netherlands won a contest by Cordaid (a Dutch funding agency) with its entry “From Brain Drain to Brain Gain.”

Nonoy Ty and two other Pasali members used the prize money to start Pasali’s work in Palimbang, Sultan Kudarat province, in 2005. Then in 2011, Nonoy asked me and my husband Carlo to help out in Pasali’s work.

We went for a visit in January 2012. We learned about Pasali’s Children Program, which helped hundreds of indigenous and Moro children go to school; the urban farming project; the water installation work; a land redemption Program; and the setting up of the Palimbang Tri-People Organic Farming Association (PTOFA), with more than 200 farmers as members.

What impressed me was Pasali’s work with Palimbang’s Dulangan Manobo tribe. Duma Bonifacio, the tribe’s chieftain, briefed us about the work that was done in his area. Achievements included improved farming methods, establishment of a corn milling machine, the stopping of illegal logging, and the planting of rubber trees. But he was exceptionally proud of the “school” (it then only offered only Grades 1 and 2) that had recently been set up. His eyes glowed when he talked about the school, and of the better future his people will face if they would be educated. He was himself illiterate, but he knew the value of education.

BRAIN GAIN
“From Brain Drain to Brain Gain” is Pasali’s call. Overseas Filipinos, instead of being a drain having left the Philippines, can actually help in Philippine development. In addition to their remittances, overseas Filipinos can contribute their expertise, know-how, network, and resources to help development work in the Philippines. Pasali is applying “Brain Gain” in its work in Palimbang, General Santos City, and other towns.

Overseas Filipinos have helped a lot to develop the work of Pasali in the Philippines. It was the money from Pasali Netherlands (the prize money, plus personal resources) which launched the work of Pasali Philippines. Engineer Felix Pulmano, one of the Pasali members who moved from Rotterdam to Palimbang, made simple machines for the work (e.g. a corn milling machine, rotary weeders). A Dutch friend facilitated the donation of metal-working machines from the Netherlands. Nonoy Ty has been an able leader of the whole work of Pasali: tapping support from within the Philippines and outside; inspiring and guiding all the work of Pasali.

In 2012, we realized the importance of putting the work on an enduring basis, so that it could continue even as funding sources from abroad dry up. We looked into ways in which overseas Filipinos could help with the work. The idea of setting up a social business came to mind. A social business is one which pursues social goals, but is run efficiently. Its profits would either be reinvested or would go to social projects.

FARM MACHINERY
Palimbang farmers asked Pasali to help them acquire farm machinery. We decided to set up a Farm Machinery Pool (FMP), to lower farmers’ costs, increase farm yields, and eventually increase the amount of land under cultivation. We conceptualized the FMP as a social business. The machines will be run by skilled operators, the management of the machines will be conducted with business-like efficiency, and the profits will be used to acquire more farm machinery and finance projects that help the community.

The FMP would consist of tractors (to plow the fields), planters and combine-harvesters. The tractors work five times faster than the hand tractors that many farmers still use. (And tractors are at least 10 times faster than carabaos). The combine-harvesters work five times faster than the rice threshers that farmers have been using, and they will reduce wastage during harvesting from more than 20% to less than 3%.

The German funding agency, Bread for the World (BfW), agreed to fund our farm machinery. It provided Pasali with one tractor, two planters, a combine-harvester, an excavator, and a small dump truck.

The donation was made to the Pasali Philippines Foundation. Pasali then set up its machinery pool as an autonomous unit with independent finances.

MOLENAAR
Pasali set in motion the establishment of a rice mill in 2013, and started milling operations in 2017. It is a set-up where local entrepreneurs, overseas Filipinos, and farmers have equal shares (each group having 1/3 of the shares) — in the investment and decision making.

The rice mill is called Molenaar Enterprises (“molenaar” is the Dutch word for “miller”). Molenaar is an “inclusive business,” which is run for the benefit of the farmers.

Molenaar buys palay directly from farmers for a good price. This palay price is higher than what middlemen pay for it. It also has a scheme of providing production loans to farmers, which are repayable at harvest.

Molenaar continues to endure challenges. Traditional rice traders tried to deprive Molenaar of palay to mill by offering farmers a higher price for their harvest. The large-scale importation of rice has led to lower retail prices. This has not hurt Molenaar, which sells most of its milled rice locally, in Palimbang or neighboring towns.

The lack of working capital is the problem that mostly limits Molenaar from achieving higher production. Much of the capital that it has is tied up in production loans; which means that less money is left for the actual buying of palay.

Molenaar, the FMP, and the Pasali Foundation are the three components of the overall plan to lift the rice farmers of Palimbang out of poverty. This combination taps the skills and resources of the farmers, the local entrepreneurs and overseas Filipinos. If this approach is successful, we will build on it to find ways for farmers of other crops to be lifted out of poverty, and to help other economic sectors of Palimbang and other towns as well.

 

Ma. Ophelia Butalid-Echaves is a founder of the Pasali Foundation, a former city councilor in Tilburg, The Netherlands, and is currently working at the Netherlands Council for Refugees.

On health and physicality

Like many professionals, the seven months in quarantine pushed me to reassess my values. I realized that the accumulation of wealth and the consolidation of power does not define success — neither does recognition nor fame. In the end, it is our relationships, our health, and our wellbeing that matters. I realize that this may read like a cliché, but it does not make it less true.

I am a 53-year-old man who has spent the better part of my life studying and working. I have been rewarded with a beautiful family and a colorful career. Years of hard work has taken a toll on my body. I now take maintenance medicines to control my blood pressure, I have mild arthritis and an irritating acid reflux problem. As for my physical well being — lets just say I’ve had better days. Some 20 years ago, I dedicated myself to physical fitness by eating healthy and committing to a rigorous exercise regimen. All that paid off with a toned physique and a youthful appearance. More than the physical benefits, however, what I relished most was the boost in confidence that came with being physically fit. The confidence reflected in my bearing, in the way I spoke and behaved, all of which benefited my work and social life.

As we age, life happens and other priorities supersede the need to take care of ourselves. Although I no longer work-out like I used to, I still play tennis once a week. Tennis has kept my health and weight on an even keel. But now that I am 53, that youthful appearance has dissipated. Age has taken away the elasticity from my skin and it now slumps in many parts. Facial muscles are less resilient and sag, causing jowl lines, eyebags and the beginnings of turkey neck.

During the quarantine, I had all the time to reflect on my health and wellbeing. I realized that I don’t mind the sagging skin, the wrinkles, the age spots, and the receding hairline. I look at them as scars of my struggles and marks of my collective experiences, good and bad. I wear them with pride as if they were medals of battle. What I regretted was how I neglected giving my body the care it deserved. Ageing is perfectly fine — it is physical neglect that made me feel most remorseful.

Being the best you can be is not about looking young or being handsome or beautiful. Rather, it is about being healthy and making the most of what you have.

In my life as a businessman, I often interact with government officials, diplomats and corporate executives. I noticed that those who are well but put together, those who are well groomed and those who take care of themselves are given more respect. They wield more gravitas and are looked upon with greater esteem. In contrast, those who have no restraint in the dining table, those ungroomed and those sloppily dressed are often looked upon with trepidation. It is human nature. Intelligent beings gravitate towards those who appear more disciplined, more organized and more responsible. We are repelled by disorder, chaos and sloppiness. One’s appearance sends clear signals of who you are.

After years of physical neglect, I decided to get my act together. I resolved to be the best I can be notwithstanding my age and circumstances. My journey started with a physical check-up to determine if all my vitals were in good order. Apart from high blood pressure, I am generally healthy, thank God! I then started to play tennis more often and eat healthier. More greens and less wine.

I will be honest — I also sought physical enhancements. After much research, I came across Dr. Cyril Mitchel Agan, a product of the UP College of Medicine with extensive experience in pharmacovigilance at Johnson & Johnson. Dr. Agan is a specialist in the male anatomy and an expert in non-surgical physical enhancements. Seventy percent of Dr. Agan’s clients are male, many of whom are leaders in the fields of finance, technology, the creative industries, and government. Specializing in male professionals was intentional, a niche pursued by Jan Conadera, who heads Dr. Agan’s business affairs. Their clinic is called Lift Aesthetic Clinic, located in BGC.

I visited Dr. Agan and had a chat about what he could do for me. The young doctor was quick to stress that his procedures are not meant to artificially alter one’s features, but to enhance them. The good thing about men is that we can look better as we age, said Dr. Agan. Enhancements are all about heightening one’s masculine features and making one appear robust and dignified in maturity.

To this, Dr. Agan focuses on certain critical facets — making the jawline stronger, making the cheeks more angular and making the eyes appear fresher.

A strong jawline and chin speaks of military discipline, fortitude and strength. Angular cheekbones are indicative of courage and determination. A fresher eye area exudes good health and virility.

I opted for the jawline enhancement since it is the area that I felt would have the most impact on my features. The procedure involved injecting a filler called Hyaluronic Acid (HA). HA is a chemical that our bodies naturally produces. It is not foreign to the body and will naturally melt away in about two years. It adheres to the skin in a manner that it preserves one’s facial expressions.

HA fillers were developed in Switzerland and manufactured by a company called Teoxane. It is considered the gold standard as far as facial fillers go. This is what Dr. Agan used to shape my jaw.

I arrived at the clinic at 2 p.m. and was out by 3:15, just in time for my 4 p.m. meeting. The procedure itself took less than an hour and involved injecting HA fillers in strategic areas. Dr. Agan is arguably the country’s best in as far as contouring the male face. There was a bit of pain but not enough to merit anesthesia. Light bruising lasted for three days.

The results were immediate and I was extremely happy by them. My jawline became defined and angular — the difference is obvious. It made my features sharper and most importantly, it made me feel good about myself.

The operative word here is “feel.” At the end of the day, procedures like these are about making you feel good. These good feelings translate to confidence and enhanced wellbeing.

There is no shame in self care. In fact, I highly recommend it for men in their senior years like me. Those who l care for themselves will live longer, be happier, and enjoy more fulfillment.

 

Andrew J. Masigan is an economist

PBA set to resume action after fine-tuning safety protocols

FOLLOWING a brief pause to its ongoing tournament to fine-tune health and safety protocols, the Philippine Basketball Association (PBA) will resume action on Tuesday at the Angeles University Foundation in Pampanga.

Moved to suspend proceedings in the Philippine Cup beginning Oct. 30 on the recommendation of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) Technical Working Group and the Department of Health (DoH) Advisory Group of Experts to give time to craft new “bubble” protocols, the PBA on Saturday announced it was set to return and play.

The league reaffirmed its commitment to comply with the latest directives from the government so as to ensure the health and safety of the 350 participants in the PBA bubble at Clark City.

Among the recommendations of the IATF is the appointment of an independent marshall, who shall oversee and ensure compliance with health and safety protocols, as recommended by the Department of Interior Local Government; and for the league to have a separate temporary quarantine facility within the Clark Freeport Zone.

The IATF also addressed the concern over a player of the Blackwater team, who initially tested positive for the coronavirus but later yielded negative results in confirmatory antigen and reverse transcription polymerase reaction (RT-PCR) tests, in relation to the resumption of games.

The recommendation was for the league to complete first the 10-day isolation of the player from the date of swabbing before resuming the games and the completion of 14-day quarantine and testing before entering the bubble for all those who will test positive moving forward.

The PBA reopened its coronavirus pandemic-hit season on Oct. 11 after getting government nod under a bubble setup in Clark City, where all the participants are holed up for the duration of the Philippine Cup.

The league’s government-approved return guidelines were put to a test recently as apart from the Blackwater player, a referee also initially tested positive for the coronavirus. The game official, too, was ruled a case of “false positive,” or “when someone does not have the coronavirus, tests positive for it” after his confirmatory tests yielded negative results.

The referee and player continued to follow quarantine procedures after, staying in the Athletes’ Village in Capas, Tarlac, as a precautionary measure.

Amid the developments, the PBA assured that there was nothing to worry about and that they were addressing the matter accordingly.

The league vowed to continue to be on guard and assure the integrity of its bubble while closely coordinating with the pertinent government agencies.

“We would like to reiterate that the PBA bubble has not been breached, but we must always strengthen our protocols in consultation with the IATF and NTF (National Task Force) to ensure the safety of everyone in the bubble,” the PBA said in a statement.

QUADRUPLE-HEADER PLAY DATES
Meanwhile, to make up for the lost play dates since Oct. 30 and for the league to stay on track of finishing the elimination round by Nov. 11, the league will have quadruple-headers on Nov. 3, 4, 6, 8, and 11 with matches beginning at 10 a.m. and triple-headers beginning at 1 p.m. on Nov. 5 and 9.

For Nov. 3, the schedule matches will have Blackwater taking on the defending champions San Miguel Beermen (10 a.m.), Phoenix Super LPG Fuel Masters battling Terrafirma Dyip (1 p.m.), Northport Batang Pier against TNT Tropang Giga (4 p.m.), and Barangay Ginebra San Miguel Kings versus the Alaska Aces (6:45 p.m.). — Michael Angelo S. Murillo

Folayang’s reascent push takes a hit with latest loss

By Michael Angelo S. Murillo , Senior Reporter

VETERAN Filipino mixed martial arts star Eduard “Landslide” Folayang’s thrust to go back to the sport’s mountaintop at this stage of his career took a blow when he absorbed a unanimous decision loss to Australian Antonio ‘The Spartan” Caruso on Friday at ONE Championship’s “Inside The Matrix” event in Singapore.

Viewed by many as a “crossroads” fight for the 36-year-old Team Lakay stalwart, Mr. Folayang put up a gallant stand but just could not overcome the height and reach advantage of his opponent en route to slumping to the defeat.

The loss was the fourth in the last five fights for Mr. Folayang (22-10), leaving observers to float the idea that maybe it is time for Landslide to hang his gloves and retire.

It is a thought that Mr. Folayang had shot down in the lead-up to the fight and after it, reiterating that he still has it in him to fight and would continue to do so.

For local combat sports analyst Nissi Icasiano, while the last year and a half have been tough for the former two-time ONE lightweight champion, he does not think that it is time for Mr. Folayang to call it a career.

The analyst, however, admitted that the Filipino MMA star’s push to once again be in the mix of contenders in the stacked lightweight division got more tricky with the Caruso loss.

“Is it time for Folayang to retire after that loss? My honest opinion: I think he has a couple of fights left in him before he can call it a career. I’ve seen worse, and it’s not the kind of fight you would draw a conclusion that his time is up. He is still there, believe me,” said Mr. Icasiano in an online interview with BusinessWorld.

“Definitely, the loss hampered his bid to at least break into the top five of the lightweight rankings. It’s sad to say, but it’s back to square one for the Landslide.  I won’t be surprised if Eduard gets relegated to the gatekeeping role after this. From a matchmaker’s perspective, it’s the most plausible option in order to gauge if he is still within the caliber of a lightweight contender,” he added.

Meanwhile, Inside The Matrix saw two world titles change hands.

“The Burmese Python” Aung La N Sang of Myanmar lost his middleweight title to Reinier “The Dutch Knight” De Ridder of The Netherlands while Martin “The Situ-Asian” Nguyen of Australia saw his featherweight title taken from him by Vietnamese-American Thanh Le.

The erstwhile champions fell in devastating fashion with Aung La sent to submission due to a rear-naked choke in the opening round. The Burmese fighter, however, still holds the ONE light-heavyweight title.

Mr. Nguyen, for his part, was knocked out in the third round.

ONE lightweight champion Christian “The Warrior” Lee of Singapore and women’s strawweight champ “The Panda” Xiong Jing Nan of China, meanwhile, retained their respective titles.

Next for ONE Championship is “Inside The Matrix II” on Nov. 6 also in Singapore and to be headlined by the world welterweight title clash between champion Kiamrian Abbasov of Kyrgyzstan and challenger James Nakashima of the United States.

Relief, gratitude after success of Chooks-to-Go 3×3 season

THE 2020 Chooks-to-Go 3×3 Pilipinas season drew to a successful conclusion on Friday at the INSPIRE Sports Academy in Calamba, Laguna, leaving organizers relieved and grateful for being able to pull it off despite the myriad of challenges.

Hit by the coronavirus pandemic, the people behind the newly recognized league worked and planned hard to see the tournament through, even if it meant going the costly “bubble” way, which had them holing up all the participants in the government-approved facility of National University for the two-week duration of the President’s Cup.

The tournament ended on Friday with Family’s Brand Sardines-Zamboanga City Chooks emerging the biggest winner, taking the grand finals over the Nueva Ecija Rice Vanguards, 22-19, in a highly competitive championship game while also bagging the P1-million top prize.

Zamboanga City, composed of national team pool members, also took three of the four previous legs of the tournament which started on Oct. 21.

“The Chooks-to-Go Pilipinas 3×3 President’s Cup bubble at INSPIRE Sports Academy was a resounding success… Beyond the players who were the main actors in the 3×3 basketball spectacle, many people behind the scenes toiled round the clock for weeks for the seamless execution of the tournament and keep everyone safe,” wrote Bounty Agro Ventures, Inc. president and league owner Ronald Mascarinas of the tournament, which also served as part of the preparation of the national team for the Olympic Qualifying Tournament next year.

To see the tournament through, Chooks-to-Go 3×3 Pilipinas had to work with pertinent government agencies, including the Games and Amusements Board (GAB), to guide it from the planning all the way to the competition proper to come up with the right protocols.

It also employed the services of medical and safety experts so as to ensure that no stone was left unturned as far as health and safety was concerned throughout the bubble.

And its efforts paid off with the successful run of the tournament, with zero positive cases of the coronavirus.

The league was also lauded by its partners for staying the course and being cooperative through the whole process.

“We thank them (league) for their diligence and close working relationship with the GAB. We look forward to working again with them soon. They have exceeded the suggested protocols and it paid off,” said GAB chairman Baham Mitra in a statement.

“We’re really very happy and proud of Chooks-to-Go for really being able to pull this off. This is the one and only ‘full’ bubble. And the most important thing we’ve seen is because of our strict implementation of health protocols, the ‘full’ bubble remained intact,” INSPIRE Sports Academy marketing director Lee Tajonera, for their part, said.

With the successful staging of the 2020 Chooks-to-Go 3×3 Pilipinas season, Mr. Mascarinas also expressed hope that the potential and beauty of 3×3 basketball be recognized by more Filipinos.

“The success of the tournament removes any doubt that 3×3 is now becoming basketball’s most popular format and is here to stay. We just had our official coming-of-age party, and what a party it was!” – Michael Angelo S. Murillo  

F1 confident of completing season despite lockdowns

LONDON — Formula One (F1) teams are confident the 2020 season will be completed safely despite countries going into lockdown to combat the coronavirus pandemic.

There are five of 17 races remaining — this weekend’s Emilia Romagna Grand Prix at Imola in northern Italy, then Turkey and two races in Bahrain followed by a finale in Abu Dhabi.

Seven of the teams are based in England, where the government announced a new lockdown on Saturday until December, but exemptions have previously been granted for F1 and are expected to continue.

Toto Wolff, principal of champion Mercedes who are based in Brackley near Silverstone, told reporters the sport was prepared.

“I think the lockdowns that we see in Europe now are very different to the lockdowns in spring,” he said.

“It will impact our lives, that’s for sure, and it will heavily impact some industries. But I think we can find a way of working around it.

“You never know whether we can do all the races that are being left because, clearly, the health question comes first,” added the Austrian.

“It’s in the hands of the health authorities in the countries that we are visiting to accept motor racing and host us. If these guys decide it’s too much of a risk, then obviously we can’t race there.”

Formula One has raced in Europe since the July season-opener in Austria, with teams flying charters directly to airports near circuits and remaining in protective bubbles with minimal contact with locals.

Paddock entry is strictly controlled, spectators barred or greatly reduced in numbers and all staff regularly tested and within 24 hours of arrival.

Formula One has conducted 60,000 tests so far with only 54 positive results over four months.

Business travel and cross-border transport of freight have continued and Formula One has secured exemptions from quarantine thanks to its strict protocols.

“I think we’re still feeling quite safe and the health and safety for our people is protected, which is the most important thing,” said McLaren principal Andreas Seidl.

“The situation is quite dynamic at the moment, there’s no change in any of the plans. We still plan to go ahead with all the races coming.” — Reuters

Guardiola rules out Camp Nou return

ALEX TREMPS

BENGALURU — Manchester City boss Pep Guardiola on Saturday reiterated his desire to stay with the Premier League club and ruled out a potential return to his former club Barcelona when his contract expires at the end of the season.

Barcelona has been in turmoil for months; club president Josep Maria Bartomeu resigned last week to preempt a vote of no confidence, and presidential candidate Victor Font is keen on reuniting Lionel Messi with Guardiola.

Guardiola spent four seasons as Barca manager, winning three league titles and two Champions Leagues. But he told BT Sport that he backed Ronald Koeman, the current manager, and would only return to the club as a fan.

“My career as a manager in Barcelona is over. There are incredible people who can be in charge,” Guardiola said after watching City beat Sheffield United, 1-0.

“Ronald Koeman is an excellent manager. So it’s over [for me]. I will come back to watch a game, but it’s done. I am happy here, I have the desire to do well and this is the most important thing.

“Now, there will be elections in Barcelona and hopefully they can choose the right person and the right board to maintain this incredible club as it is, at the highest level.”

Having appointed former player Koeman as manager in the close season, Barca has won only two of their opening five league games, and lost 3-1 at home to rival Real Madrid, while Messi is yet to score from open play. — Reuters

Thiem to skip Paris Masters; Halep tests positive for COVID-19

MUMBAI — Austrian Dominic Thiem has joined world number one Novak Djokovic in pulling out of this week’s Paris Masters after struggling with blisters in his foot during the Vienna Open.

US Open champion Thiem complained of the problem after his title defense in Vienna ended in the quarterfinals on Friday.

Thiem would have had little time to recover as the final ATP Masters 1000 event of the year starts on Monday.

He is expected to use the break to get some rest before traveling to London for the season-ending ATP Finals, which takes place from Nov. 15-22.

Defending champion Djokovic opted out of the Paris tournament as he will not lose any ranking points under the ATP Tour’s revised system this year due to the coronavirus disease 2019 (COVID-19) pandemic.

Rafael Nadal will be the top seed at the Paris Masters while Greek Stefanos Tsitsipas will be seeded second with seven of the top 10 men’s player attending the tournament.

Nadal, who won his record-equalling 20th Grand Slam title at Roland Garros in October, will return to Paris seeking to equal Djokovic’s record haul of 36 ATP Masters 1000 titles.

The Spaniard has a first-round bye and will open his Paris campaign against Filip Krajinovic or Feliciano Lopez in the second round.

Russia’s Andrey Rublev and Argentine Diego Schwartzman will also hope to seal the remaining two spots in the ATP Finals, which is played between the top eight men’s single players, with strong results in Paris.

HALEP TESTS POSITIVE FOR COVID-19
Meanwhile, world number two Simona Halep tested positive for the novel coronavirus and is recovering well from her mild symptoms.

“Hi everyone, I wanted to let you know that I tested positive for COVID-19,” the 29-year-old Romanian said on Twitter on Saturday. “I am self-isolating at home and am recovering well from mild symptoms.

“I feel good… we will get through this together.”

The former world number one did not travel to New York for this year’s US Open Grand Slam due to health concerns over the pandemic.

Halep, who won the French Open in 2018 and is the reigning Wimbledon champion, made the trip to Paris for the claycourt Grand Slam but went down to eventual champion Iga Swiatek in the fourth round at Roland Garros last month.

The Women’s WTA Tour has a tournament scheduled in Austria from Nov. 9 but Halep had said her 2020 season was over following her French Open defeat. – Reuters

Redemption

No one involved in the Tigers’ hiring of A.J. Hinch as manager was likely aware of the symbolism, but there it was, anyway. Three days after the end of his unprecedented season-long suspension from any and all activities relating to Major League Baseball, he found himself back in the thick of things. That the highest echelons of the sport couldn’t wait to take him back despite his inability to stop his charges from desecrating its integrity during his time with the Astros speaks volumes of his singular value in game management. After all, he did earn a championship and come to within a game of making it two out of two in the World Series, bowing in the rubber match before being banned.

Whether his leadership has improved during his forced absence from The Show is, of course, another matter altogether. No doubt, he used the punishment as an impetus for introspection. And, no doubt, he knew that as soon as his suspension is lifted, he would generate interest from franchises who believe in his competence as a winner. His monumental misstep notwithstanding, he understood the capacity of sports to provide second chances—and especially to proven producers. History is replete with controversial figures who managed to overcome past trials with present accomplishments.

To be sure, redemption begins with opportunity, and it bears noting that Hinch was willing to be given one by several quarters. It’s why the White Sox, for instance, were caught with a mistake that had them including his signature alongside Tony La Russa’s mug in their announcement of their new manager. They had their eyes on him, but, apparently, the Tigers were faster, calling him a mere half hour after the Dodgers claimed the Commissioner’s Trophy. And he, not surprisingly, pounced on the chance; it’s easy to miss baseball and hard to scratch an itch to return, and he rightly thought he shouldn’t be pushing his luck.

And so Hinch starts trekking his path to redemption with the Tigers. It’ll be fraught with obstacles, on and off the field. The talent he has at his disposal can best be described as filled with potential, and fans wouldn’t be wrong to wonder how much it will be affected by the excess baggage he brings with him. At the same time, this much is true: he’s very good at what he does. It’s what he didn’t do that felled him, and darned if he hasn’t already learned his lesson.

 

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

England enters second lockdown

LONDON — Prime Minister Boris Johnson ordered England back into a national lockdown after the United Kingdom passed the milestone of one million coronavirus disease 2019 (COVID-19) cases and a second wave of infections threatened to overwhelm the health service.

The United Kingdom (UK), which has the biggest official death toll in Europe from COVID-19, is grappling with more than 20,000 new coronavirus cases a day and scientists have warned the “worst case” scenario of 80,000 dead could be exceeded.

Mr. Johnson, at a hastily convened news conference in Downing Street after news of a lockdown leaked to local media, said that the one-month lockdown across England would kick in after midnight on Thursday morning and last until Dec. 2.

In some of the most onerous restrictions in Britain’s peacetime history, people will only be allowed to leave home for specific reasons such as education, work, exercise, shopping for essentials and medicines or caring for the vulnerable.

“We must act now,” Mr. Johnson said, flanked by his chief medical officer, Chris Whitty, and his chief scientific adviser, Patrick Vallance. “Unless we act, we could see deaths in this country running at several thousand a day.”

The government will revive its emergency coronavirus wage subsidy scheme to ensure workers who are temporarily laid off during a new England-wide lockdown receive 80% of their pay, he said.

Essential shops, schools, and universities will remain open, Mr. Johnson said, and while elite sports will continue, amateur sports for adults and children will be asked to stop.

Pubs and restaurants will be shut apart from for takeaways, and outbound international travel will be discouraged except for work. All non-essential retail will close.

Places of worship will remain open for private prayer, though funerals will be limited to close family members only.

Mr. Johnson’s imposition of stricter curbs came after scientists warned the outbreak was going in the wrong direction and that action was needed to halt the spread of the virus if families were to have any hope of gathering at Christmas.

EUROPE LOCKED DOWN
The measures bring England into alignment with France and Germany by imposing nationwide restrictions almost as severe as the ones that drove the global economy this year into its deepest recession in generations.

Mr. Johnson was criticized by political opponents for moving too slowly into the first national lockdown, which stretched from March 23 to July 4. He fell ill with COVID in late March and was hospitalized in early April.

A national lockdown represents a dramatic change of policy for the prime minister, who has been saying for months that it will not be necessary.

Two weeks ago he defended his strategy of a patchwork of local restrictions by saying he wanted to avoid the “misery of a national lockdown”. Currently, areas of England are subject to one of three tiers of coronavirus restrictions.

“I am optimistic that this will feel very different and better by the spring,” Mr. Johnson said, adding that there was realistic hope of a vaccine in the first quarter of next year.

Asked by reporters what took him so long to impose a national lockdown, Mr. Johnson said it was a constant struggle to balance the risk to life and the risk to livelihoods.

“We have to mindful the whole time of the scarring and the long-term economic impact of the measures,” Mr. Johnson said. His medical adviser Mr. Whitty said that without the tougher measures then the National Health Service could be overwhelmed.

Keir Starmer, the opposition Labour leader, who called for a lockdown two weeks ago, said the delay introducing the restrictions will come “at an economic cost and a human cost”.

Lawmakers are expected to vote on the proposals on Wednesday.

The new lockdown will heap more pressure on finance minister Rishi Sunak and the Bank of England to increase their already huge support for the UK economy, the world’s sixth-biggest. The economy slumped a record 20% in the spring.

So far, the United Kingdom has reported 46,555 COVID-19 deaths — defined as those dying within 28 days of a positive test. A broader measure of those with COVID-19 on their death certificates puts the toll at 58,925.

The United Kingdom has the world’s fifth largest official death toll, after the United States, Brazil, India and Mexico, according to a Johns Hopkins University tally. — Reuters

US economic inequality widens amid COVID-19

WHEN the temperature dipped near freezing in Columbus, Ohio in mid-October, the children had no heat. The gas had been shut off in their apartment for nonpayment. DaMir Coleman, 8, and his brother, KyMir, 4, warmed themselves in front of the electric oven.

The power, too, was set to be disconnected. Soon there might be no oven, no lights and no internet for online schooling. The boys’ mother, Shanell McGee, already had her cell phone switched off and feared she could soon face eviction from their $840-a-month apartment. The rundown unit consumes nearly half her wages from her job as a medical assistant at a clinic, where she works full-time but gets no health benefits.

Just 14 miles northwest of McGee’s neighborhood, Kiki Kullman is having one of the best years of her life.

The real-estate business she runs with her family just sold the highest-priced house in its history: a 13,000-square-foot estate, listed for $4.5 million, that came with an elevator and a classic-car showroom. And in late October, Ms. Kullman closed on a home of her own — a $645,000 three-story Colonial, painted a stately white with a front door flanked by columns, a pleasant place for her two-year-old twin boys to grow up.

Columbus exemplifies the economic split animating America’s coronavirus crisis.

Professionals like Ms. Kullman are thriving, thanks in part to pandemic-induced policies by the Federal Reserve that have buoyed the stock market and fueled industries such as real estate with record-low interest rates.

For many lower-wage workers, meanwhile, the crisis has delivered a cruel shove, toppling families like the McGees who were already living on the financial edge. Nationwide, millions of people including hotel workers, retail clerks, waiters, bartenders, airline employees and other service workers have lost jobs as coronavirus disease 2019 (COVID-19) fears crushed consumer demand.

Economists call this phenomenon a “K-shaped” recovery, in which those on the top continue to climb upward while those on the bottom see their prospects worsen.

Ned Hill, professor of economic development at Ohio State University, called that downward slope of the K “fat and broad and long and ugly looking.” He said there’s little hope for a return to normal as long as coronavirus continues to spread unabated in the United States. In Ohio, COVID-19 cases are soaring and hit a record of 3,590 new cases on Oct. 29. In Columbus alone, at least 643 people have died.

“People’s jobs and incomes have disappeared, and they aren’t coming back until people’s threat of dying from the virus dissipates,” Mr. Hill said. “That’s it.”

Located in the center of Ohio, about halfway between Pittsburgh and Indianapolis, Columbus is a city of some 900,000 people. Home to Ohio State University and the state’s capital, its employment is rooted in sectors like hospitality, education and health, government, and professional and business services.

That mix has allowed it to fare better during the crisis than some other Rust Belt cities that are more heavily dependent on manufacturing. Columbus’s September unemployment rate of 7.5% was lower than the national average of 7.9%. But like the rest of the United States, its front-line and modestly skilled workers have been slammed the hardest.

The divergence of fortune can be seen in the city’s housing market.

For those with means, like the clients of real estate agent Ms. Kullman, low interest rates have translated into cheaper mortgages, allowing them to afford bigger houses. Columbus is just one of four US cities — along with Cincinnati, Kansas City and Indianapolis — where houses are selling in less than five days on average, according to real estate research firm Zillow.

“It is crazy to see in Columbus the million-plus price point getting multiple offers and all-cash bids,” said Ms. Kullman, 36.

For renters hammered by the downturn, meanwhile, housing is a precarious business.

During the early days of the pandemic as Ohio’s residents sheltered in place, evictions in Columbus fell, thanks to local and federal protections to keep renters in their homes. But since September, 1,774 eviction cases have been filed, far surpassing summer levels, according to Princeton University’s Eviction Lab, which tracks evictions. The Greater Columbus Convention Center now serves as a bustling eviction court.

Those filings came despite a Sept. 4 decree by the US Centers for Disease Control and Prevention (CDC) banning all evictions nationwide until Jan. 1 to prevent a surge of newly homeless people from contracting and spreading the coronavirus. Under the moratorium, landlords cannot evict tenants who can no longer pay rent because their earnings have been affected by COVID-19.

But landlords are not required to inform tenants of these protections and are free to file eviction lawsuits. Only renters who know about the CDC ban, qualify for it and take legal action to assert their rights can stop their evictions. Among the 24 cities the Eviction Lab tracks, Columbus is one of the few where evictions did not fall after the ban.

The fallout can be seen across Columbus. The local pot of money from federal relief to help cash-strapped tenants pay rent was tapped out in September. Food banks are running low on staples, and homeless shelters are at capacity, according to community advocates.

Utility shut-offs have surged to the point that lawyers for the Legal Aid Society of Columbus have resorted to filing personal bankruptcy petitions for tenants to keep their heat, lights and water on.

If present conditions persist, and without a new round of federal relief, as many as 40 million people could be at risk of eviction in coming months, according to the Aspen Institute, a think tank. In a typical year, 3.6 million eviction cases are filed.

‘BEING POOR COSTS YOU’
Even before the pandemic, Ms. McGee, 29, was struggling financially. In 2014, she bought a 2008 Chevy Malibu off a corner lot charging 22% interest. She said the junker stopped running long ago, so she stopped paying in 2016. Ms. McGee said she offered to return the vehicle, which has 176,475 miles on it, but the lender wouldn’t take it back.

In March, Ms. McGee’s live-in boyfriend lost his job at a fast-food restaurant as Ohio went on lockdown, cutting their household’s income. In August, he was diagnosed with COVID-19 and the entire family had to quarantine. That same week, Ms. McGee got a call from her employer, telling her that her lender had gotten a court order to garnish 25% of her wages to repay more than $10,000, with penalties and late fees, that she still owed on the car.  

That left her with take-home pay of $728 every two weeks. She couldn’t afford school supplies for her sons and had to borrow gas money from her mom to get to work in her boyfriend’s car.

“It was heartbreaking, it was everything all at once,” said Ms. McGee, who wears rectangular glasses and has a broad, easy smile.

She sought help from Paul Bryson, an attorney with the Legal Aid Society who filed a bankruptcy petition in October to get Ms. McGee’s utilities turned back on and the garnishment frozen. The court approved the petition, but not before Ms. McGee’s lender took $1,023 of her wages.

“Being poor costs you a lot of money,” Bryson said. “Even before the pandemic, somebody’s entire life falls apart when they get a garnishment. And now? If nothing is done, we are just going to have a lot of people on the street.” Ms. McGee’s car lender, Columbus Mortgage, did not respond to requests for comment.

LIVING THE DREAM
For years, Ms. Kullman, the real estate agent, fantasized about living on Bedford Road, a coveted address in the Columbus suburbs.

In the region’s poshest neighborhoods, sumptuous houses that make perfect pandemic compounds, with amenities like his-and-hers home offices and roomy basements for online schooling, can sell in a day, often with multiple offers in all-cash deals well above the asking price. Ms. Kullman said some shoppers are submitting bids without ever touring a house. The most desperate are agreeing to “no-remedy” inspections, meaning they won’t ask for concessions if the inspection turns up a major defect. Others, she said, have authorized “crazy escalation clauses with no cap.” In real estate parlance, that means they will beat any other offer, no matter how high the price.

“You have to sign away your life to get the house you want,” Ms. Kullman said.

In August, Ms. Kullman, who runs the Kullman Group at Street Sotheby’s International with her husband, father and sister, found out that a couple who lived on Bedford Road were about to move. She made a bid before the house hit the market and the owners accepted. The Colonial is right next door to her sister’s home; their kids will share backyards.

Ms. Kullman is aware of her good fortune amidst the pandemic, and the mean hand that coronavirus has dealt to the city’s most vulnerable.

Her husband has been doing business with a landlord who’s selling a portfolio of homes in Columbus’s low-income neighborhood of Linden. Non-paying tenants in those properties have been getting eviction notices.

“It is night and day, what we see here,” Ms. Kullman said. “Which is not what you would expect in COVID. It’s sad but it’s true.” — Reuters

1...7,3647,3657,366...12,727Page 7,365 of 12,727
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube