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BoC seizes counterfeit clothing, smuggled meat worth P316M

PHILIPPINE STAR

THE Bureau of Customs (BoC) confiscated on Friday P316 million worth of smuggled counterfeit-branded clothing and meat.

In a statement issued over the weekend, the BoC said it seized P300 million worth of clothing from various warehouses in Pasay City. The brands being counterfeited were Adidas, Crocs, DC, Dickies, Disney, Fila, Frozen, Gap, Havaianas, Hello Kitty, Jag, Jordan, Lacoste, Lee, Levi’s, Louis Vuitton, Marvel, Mossimo, Nike, Petrol, Puma, Tribal and Uniqlo.

It also confiscated smuggled frozen meat, Peking duck and black duck valued at P16 million from a warehouse in Navotas City.

The BoC said the seizures were conducted in cooperation with the Manila International Container Port, Customs Intelligence and Investigation Service of the Port of Manila, and the Enforcement Group Enforcement and Security Service.

Customs Commissioner Rey Leonardo B. Guerrero said the agency will continue to work on deterring illegal activity. — Beatrice M. Laforga

Asian Dev’t Bank drops coal investments, may support more natural gas projects

REUTERS

THE Asian Development Bank (ADB) said in its first energy policy draft that it will not be funding new coal-fired plants but will consider investing in eligible natural gas projects.

“ADB will withdraw from financing new coal power and heat plants,” the bank said in its policy draft which was posted on its website Friday.

It added that it will not finance any coal mining, oil and natural gas field exploration, drilling or extraction.

The ADB said it will support its member-countries by financing technologies which will control the emissions of their currently operating coal-fired power plants and district heating systems. But the bank clarified that it does not plan on participating in investments that modernize, upgrade or renovate coal-fired facilities “unless it is to re-engineer such plants for use of cleaner fuels, such as natural gas or renewable energy sources.”

In the draft, the bank said it is looking at funding projects “with hybrid electricity solutions involving fossil fuels as backup systems together with renewable energy (RE)” for remote areas and isolated grids.

“We are happy that ADB finally decided to abandon coal once and for all in this draft policy,” environment and energy think-tank Center for Energy, Ecology, and Development (CEED) said in a statement Friday.

“However, in all its interventions, the Bank must have the immediate and complete phase-out of coal in mind. Retrofitting and any allowances for emissions in current projects would defeat the stated objective of the draft policy,” it added.

In its draft, ADB said that it may consider funding natural gas projects, including gas transmission and distribution pipelines, and liquified natural gas terminals, as long as all its requirements are met. “ADB will define sound screening criteria for other fossil fuel-generation projects, notably natural gas.”

Natural gas, for the bank, has played a key role in helping countries reduce emissions from coal. But it noted that generating power from natural gas does not eliminate greenhouse gas emissions.

“Despite these concerns, the current supply contracts and plans are expected to cause natural gas use to increase in the region during the next decade… In this context, it is a likely scenario that many of the region’s economies will continue to include gas in their energy transition strategies to replace coal and fuel oil,” the ADB said.

CEED expressed concern over the bank’s support for gas projects, including natural gas-related infrastructure and facilities.

“Asian communities, which are some of the most climate-vulnerable and pay some of the highest electricity rates in the world, need access to clean and affordable renewable energy. Fossil gas will just delay the necessary transition, at great cost to these communities,” CEED said.

Manila-based international policy group Institute for Climate and Sustainable Cities (ICSC) said Friday that ADB still leaves the door open to gas even as it closes the door on coal.

“There is no bridge in the world without an end, and if the Bank will consider fossil gas as a bridge and transition fuel, it needs to stipulate an end,” ICSC Senior Policy Advisor Pedro H. Maniego, Jr. said in a statement. “ADB did cite green hydrogen from renewable energy sources, which could eventually replace natural gas. Policies toward this end need to be established with urgency.”

In its policy draft, the ADB said achieving a low-carbon pathway in the energy transition requires power from renewable primary energy sources.

“The ADB will support a transition to cleaner power systems by supporting accelerated deployment of renewable energy including sustainable hydropower, solar PV installations and concentrated solar facilities for power, solar energy from collectors to heat, and on-shore and off-shore wind power,” it said.

The bank added that it will support large hydropower projects, but the application process will be “highly selective.”

“ADB will only support large hydropower schemes that have been evaluated as part of a robust strategic environmental and social assessment that has considered both alternative locations and designs,” it said.

CEED called large hydro projects a “destructive” form of RE projects, which are not “ecologically just.”

“In lieu of these and instead of promoting privatized systems, ADB would do well to support community-based microgrids which would empower local communities and can fuel the sustainable development we need today,” CEED said. — Angelica Y. Yang

DTI agency seeking to quantify value of design industry

THE Design Center of the Philippines is planning a survey this year which will seek to quantify the design community’s contributions to the economy, a Trade department official said.

The Design Center, an arm of the Department of Trade and Industry (DTI), helps promote Philippine design, provide food packaging services for small businesses, and develop sustainable products.

Working with a UK-based partner, the Design Center’s study will help identify what constitutes the design sector’s value-added.

“There is still a general perception of design primarily from an aesthetic point of view, so what we really wanted to underline is service design,” Design Center Executive Director Rhea Matute said in an online interview.

Service design focuses on using design principles to plan systems across industries.

“That conversation will be easier to have when you have data behind you as well as successful case studies,” she said.

The design economy, she added, includes both businesses that directly provide design services and those that employ design-related work.

“Within a larger economy, for example… you employ designers to develop your collaterals to help you develop your website. So to a certain extent, they’re participants in the design economy because they employ designers. So (the study will seek to come to an) understanding of how designers contribute not just to direct design sectors but to the larger economy and the kind of value they provide,” Ms. Matute said.

The Design Center will be focusing on nine areas as case studies: Manila, Makati, Quezon City, Taguig, Cebu, Davao, Baguio, Pampanga, and Cagayan de Oro.

“(We’ll be) understanding in each of nine how design is contributing to the larger economy of the city or the province so we’re reaching out to Luzon, Visayas and Mindanao through these nine areas.”

The Design Center is in the data-collection stage and is hosting roundtable discussions, with plans to release a report by August. The final output, a so-called design map, will in turn help shape a national design policy by the fourth quarter.

The national design policy to develop the sector is being formulated by a design council that includes government and private sector representatives.

“We want… design in the country… to make us more competitive, to be able to develop businesses that are competitive not just in the country but globally and to be able to use that soft power of design to have a recognition of the country that would be more transformative,” Ms. Matute said. — Jenina P. Ibañez

Pasig City sets up investment office

PHILIPPINE STAR/ MICHAEL VARCAS

PASIG CITY said it has issued an ordinance creating an economic development and investment office to drive business development and help the city recover from the economic downturn.

In ordinance no. 14 series of 2021 signed on April 29, the city government defined the office’s mandate as to promote investment and economic development. It restructures the Pasig City investment promotion center as the city’s primary investment arm, to be headed by an investment officer.

The office, the ordinance said, will help develop cost-effective business registration systems to attract investors, protect investor rights, and improve the city’s competitiveness.

The office will also help draft a local investments and incentives code, conduct marketing activity, and identify revenue-generating partnerships with the private sector.

The ordinance tasks the investment promotion officer with serving as Pasig City’s economic development representative in dealings with the National Government.

The organization of the office conforms to guidelines from the Department of Interior and Local Government released in December.

“(The office) will surely alleviate the economic problems faced by Pasig City especially during the time of the coronavirus 2019 pandemic, wherein both the national and local economy have taken a hit, with resultant unemployment and underemployment, shut down of industries and businesses, and the decline of gross domestic product,” according to the ordinance. — Jenina P. Ibañez

Prioritizing the integrity agenda in times of uncertainty

First of two parts

Pressure from the COVID-19 pandemic on emerging market economies continues to impede business growth. Economies and companies all over the world are seeing unprecedented challenges and difficulties, which have further exacerbated potential integrity issues. According to the emerging markets perspective of the EY Global Integrity Report, corruption and fraud still pose a major threat to long-term success for businesses. While regulatory regimes and activities designed to strengthen company integrity have increased during the recent months, the remote working conditions and regulatory scrutiny following the New Normal have only aggravated existing issues while presenting new ones.

The Global Integrity Report, conducted by global market research agency, Ipsos MORI, surveyed more than 1,700 employees from across all levels of large organizations in 21 emerging market countries. It presents relevant insights into the ethical challenges the organizations faced. From board executives to staff members, nearly 63% of the respondents believe it is difficult to maintain standards of integrity during periods of uncertain market conditions or periods of accelerated change. However, the report also reveals that emerging market businesses push efforts to mitigate misconduct, with 44% sharing how much easier it has been to report misconduct in the past three years, and 55% saying their management regularly communicates the significance of operating with integrity.

The report discusses four key areas — ranging from cybersecurity to raising corporate integrity higher in the management agenda — that organizations must focus on in their integrity agendas. By considering how the respondents dealt with these areas of risk, businesses may gain insights into how to overcome some of the challenges to post-pandemic recovery. The first part of this article will discuss prioritizing corporate integrity and encouraging the use of whistleblower channels.

PRIORITIZING CORPORATE INTEGRITY
The reputational damage from corporate integrity scandals can heavily scar the reputations of both the companies in question and their stakeholders, damaging even executives who are clearly not involved in such scandals. Stakeholder relationships are also impacted, compromising the long-term value of the involved business.

It is critical for organizations to build an integrity agenda from the top and clearly communicate the relevance of acting with integrity. Corporate integrity is not a mere act of compliance — to act with integrity is both the right thing to do and a means to differentiate the business.

Though frequently highlighting the importance of integrity in company-wide communications is an important step, actual action plans are much more significant. Senior management must reinforce their integrity message with clear examples, institute key performance indicators (KPIs) and have clear and quantifiable metrics to gauge the impact of their integrity initiatives.

Formal policies and programs will provide an avenue for top management to set an example, emphasizing that everyone will be held responsible for their actions regardless of rank or individual performance.

ENCOURAGING THE USE OF WHISTLEBLOWER CHANNELS
All employees should be heard. To truly embed integrity into an organization, it is critical to foster a culture of speaking up and active listening. Developing the right reporting channels not only provides a clear indicator of how the organization truly embraces integrity — it also discourages individuals from reporting issues directly to regulators or the media. Whistleblowing about unethical behavior can result in high-risk situations that may affect the reporting individual’s safety or lead them to fear reprisal both personally and professionally. The report states that 37% of the respondents in emerging markets do not report concerns about integrity due to apprehensions about their careers, while a worrying 29% choose to keep their concerns private due to fear of their own personal safety.

However, progress is still being made, particularly in emerging markets, with 44% of companies saying it is easier to report concerns in the past three years, and 31% sharing that their companies offer more protection to whistleblowers compared to before. This is driven in part by tighter regulations in emerging markets, but it is also in the best interest of the company to make the whistleblowing process as easy as possible. Employees who are unable to bring their issues to management may instead go directly to a regulator or to social media, leading to a much higher risk of reputational damage. On the other hand, fostering “psychological safety” among employees can help drive productivity, employee satisfaction, and even workplace innovation.

As a key pillar of any organization’s corporate governance framework, whistleblower programs require board oversight to be successful. Employees need to feel safe to report misconduct and believe that it is both a practical solution and in the best interest of the organization. Companies should provide multiple channels to report concerns so employees can choose an option that is comfortable and advantageous to them.

A minimum requirement to consider for a whistleblowing mechanism includes a formal system that efficiently normalizes the process, such as case management, resource allocation, and clarity regarding how to speak up. Protection is also imperative, and anonymous complaints must be addressed by stakeholders.

In the second part of this article, we will discuss the need for an increased focus on data protection and cybersecurity, and the need to address integrity issues in third party providers.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Roderick M. Vega is a Partner and the Forensic and Integrity Services (FIS) Leader of SGV & Co., and Dennis F. Antonio is an FIS Senior Manager of SGV & Co.

Allow imports to address domestic shortage

VECTORJUICE/FREEPIK

The logic is simple. All other things being equal, the price increases as supply of the particular good decreases. Alternatively, all things being equal, the price decreases as supply increases. Similarly, all else being equal, the price of the good increases as demand increases. And the price decreases as demand goes down.

That is the law of supply and demand.

An old joke goes that a national leader once wanted to repeal the law of supply and demand. The joke exposes ignorance of how markets behave.

Yet, our senators do not properly understand the basics of supply and demand. Consider their position on the pork shortage.

Prices have sharply risen because of the severe shortage of hogs brought about by the African Swine Fever (ASF). Also constraining the supply are rules that restrict the quantity of pork importation. The law’s minimum access volume for 2021 is fixed at 54,210 metric tons. But the economist Ramon Clarete estimates that in 2020, the supply gap for pork was more than 500,000 metric tons. The National Economic and Development Authority (NEDA), on the other hand, has estimated the supply gap in 2021 to reach 477,000 metric tons.

The supply gap estimates may vary, albeit insignificantly. But what is clear is that the supply gap is so huge. Hence, it comes as no surprise that year-on-year inflation in April 2021 increased by 57.7% nationally and by 68.5% in the National Capital Region.

Allowing significant importation is the only way to address the big supply gap and substantially reduce prices. However, to encourage imports, high tariff barriers likewise have to be eased. Hence, the President signed Executive Order (EO) No. 128, series of 2021, which is titled: Temporarily Modifying the Rates of Import Duty on Fresh, Chilled or Frozen Meat of Swine under Section 1611 of Republic Act No. 10863, Otherwise Known as the “Customs Modernization and Tariff Act.”

The senators however resisted this. Authored principally by Senator Franklin Drilon and co-signed by 18 senators, a Senate Resolution urges “the President to withdraw Executive Order No. 128, which provides for the temporary modification of the rates of import duty for fresh, chilled or frozen meat of swine, and to recall the recommendation to increase the Minimum Access Volume of pork.”

Senator Drilon, the most vocal in opposing Executive Order No. 128, ostensibly wants to protect the local hog raisers. But he and fellow senators dismiss the plight of the more than 100 million consumers who are reeling from the higher price of pork and its knock-on effect on prices of other goods.

Of course, we have to give support to the domestic swine industry, but it should not be at the expense of the Filipino people. The interests of the whole people must come first, especially during the pandemic.

The government has a plan to help the domestic producers. The domestic producers will be part of the solution to address the supply gap. Meeting the supply gap will not be exclusively done through importation. It is recognized though that the domestic industry cannot by itself immediately solve the huge gap in supply.

The Department of Agriculture is committed to improving hog production and accelerating the repopulation program. But while we are rebuilding our pig supply, the government cannot simply sit back and let inflation go haywire.

Hence, importation by increasing the minimum access volume and bringing down tariffs is an imperative. The Executive Order reduces the tariffs from 30% in-quota and 40% out-quota to 5% in-quota and 15% out-quota for the first six months and 10% in-quota and 20% out-quota for the following six months.

To be sure, the government has clearly stated that the lower tariff rates are only temporary. The measure intends to alleviate the crisis, until domestic supply returns to normal.

A recent development is that the Senate is seeking a compromise. Senator Ralph Recto has telegraphed the Senate’s message: “I don’t mind increasing the (MAV) minimum access volume, but why reduce the taxes? If the consumer does not get the reduced price, then what was the P13 billion for?” The amount Senator Recto is referring to is the forgone revenues resulting from lower tariffs.

Senator Recto’s statement does not make sense. We return to the relationship of supply and prices. Lower tariffs will encourage importation; lower tariffs also translate into reduced prices for consumers. The entry of imported pork also decreases prices as overall supply increases.

On the other hand, notwithstanding an increase in the MAV, high tariffs will remain a barrier to pork importation and will not lead to significant price reduction.

Neither the Senate’s original position nor the compromise it is seeking favors the Filipino people. The Senate position serves the interests of those who want pork prices to remain high.

Ironically, the senators are the ones crying for relief to the people in this time of pandemic.

We refuse to believe that they are ignorant of the law of supply and demand. We refuse to believe that they are ignorant of the fact that lower meat prices provide relief to our people who are suffering from a triple crisis — the pandemic crisis, the economic crisis, and the food crisis.

We hope the Senate sees the light. Executive Order No. 128 which modifies that tariff rate on pork imports and increases the minimum access volume will not at all kill the industry that our senators are protecting. Our paramount concern should be giving relief to the Filipino people, many of whom are now cash-strapped and hungry.

 

Filomeno S. Sta. Ana Iii And Jessica Reyes-Cantos are the coordinator and president of Action for Economic Reforms, respectively.

ASF crisis, an opportunity to modernize our pig industry

FREEPIK

Agriculture Secretary William Dar inherited the ASF crisis, coming into office just as the country officially declared our African Swine Fever (ASF) outbreak in August 2019. Nearly two years from his appointment, the ASF crisis is still felt. It was only last week that our leaders reportedly struck a compromise on what to do with pork tariffs and imports. I am not going into that issue. Though important in light of the current shortage, having more imports is a temporary measure. However, licking the ASF virus and modernizing our pig industry are the real solution, and helping the industry attain that is the most important assistance to producers.

Secretary Dar faces a tough problem as there is as yet no ASF vaccine that his administration can roll out effectively and quickly. The development of a vaccine may still take some time.

In the meantime, the country continues to bear the problems of a pork shortage and the current inability of the industry to recover lost inventory due to the ASF disease. The Department of Agriculture’s (DA) estimate of the shortage is 388,000 metric tons (MT). Biosecurity measures appear as weak as the coordination between national and local government units (LGUs), good reason to believe the ASF virus may still be spreading in our country.

What’s being done or planned to be done to help pig producers?

Late last year the DA launched INSPIRE or the Integrated National Swine Production Initiatives for Recover and Expansion. This swine recovery program aims to restore quality and genetically superior breeder stocks and finishers; modernize the production environment in ASF-free zones; and implement strict biosecurity measures. Ultimately the program aims to help producers recover lost incomes and make available pork supply at affordable prices to consumers.

Over three years, the recovery program targets to produce 738,805 MT of pig meat, valued at P157 billion. To attain this goal, 115,800 pig farmers have to raise 10.5 million finishers. This requires 62 breeder farms to produce 440,563 breeders, surpassing by 42% the country’s breeder base that the industry lost to ASF. In turn, 33,500 grandparent breeder stocks would be needed. The private sector is expected to add 20 breeder farms, contributing nearly half of the breeder stock to be recovered.

The repopulation program is “calibrated,” involving only ASF-affected areas released from quarantine. These so-called “pink” areas had gone through the program’s sentinel protocol successfully. The protocol requires a rest period from production for a period of 50 days — 30 days of which are spent on cleaning and disinfecting the farm, and 20 days for bioassay to check if the area is ASF-free — after which sentinel pigs are raised on the farm for 40 days. If none of these pigs die from ASF during this period, the area is released from quarantine, and the repopulation program is started, with beneficiary farms getting access to ASF-free sows and finishers and related repopulation benefits.

The LGUs and the DA implement sentinel protocols, with the LGU having the authority to release an area from quarantine. Reportedly, seven barangays in the City of Lipa and two others in the town of Malvar, Batangas were recently declared “pink” areas. Sentinel protocols are currently implemented in other places in Batangas, Quezon, and Rizal. These towns — namely Montalban in Rizal, San Juan and Laurel in Batangas, and Mulanay in Quezon — are reported to be conducting bioassays.

The distribution of pigs to beneficiaries is conditional on the receiving areas having been declared ASF-free. Intended beneficiaries throughout the country should be informed that the repopulation program could not be started if their LGUs had not yet released the areas where their farms are from quarantine. This requirement makes good sense except that when it is not properly communicated to beneficiaries, failure to distribute re-population benefits could be grounds for criticizing the program.

Let us define accountabilities. Assistance starts with implementing the sentinel protocol. If “red” or ASF-affected areas are not going through the sentinel protocol, then this may be taken to be a delay in the delivery of the assistance. According to the program, there are about 2,333 barangays which were hit by ASF. We are now in the middle of the first of the three years of the program, and the DA is only talking about few scores of barangays going through the sentinel protocol.

In fairness, this program is not fully funded yet. Maybe the DA should now be asking Congress for the P27 billion it needs to implement its share in the cost of the repopulation program. This may start to be fully funded in 2022, that would only mean DA has to extend the program to 2024.

A performance measure of INSPIRE is the number of “red” areas which are undergoing sentinel protocols. A related measure is how long did a “red” area wait before starting the protocol. It is possible that areas may fail in the program, and thus the re-herding program could not be started. This should not be taken against the program since re-population benefits are conditional on the receiving areas passing the sentinel protocol.

A second performance measure is how many of the areas released from quarantine are receiving the benefits of the program, and has the related measure on the delay of receiving the benefits.

Program implementation can be slower than it should be if those in charge of the program do not have full control of resources, are weak in planning, and are overly cautious not to make a mistake for fear of being brought to the Ombudsman. But here’s another important potential obstacle.

The INSPIRE program cannot fly without the cooperation of LGUs and industry. How many LGU officials are ready to take on the responsibility of implementing the sentinel protocol in their respective localities? Sentinel protocols can be delayed in localities where LGU officials are not adequately informed by the DA about the program, or are not ready yet to implement it. The responsibility is not just on the sentinel protocol but, more importantly, on enforcing biosecurity measures to protect the “pink” areas from the ASF-virus. This may take distributing mobile testing kits to pig farms undergoing the repopulation program, and truck disinfection facilities positioned at entry points to a province or island.

LGUs should consider that lack of resources cannot be an effective alibi for inefficiency because of the added resources they have due to the Mandanas ruling.

The DA must produce and update a map of ASF-affected areas. The map should be effectively communicated to beneficiaries, who should know if they are entitled to receive the assistance under the repopulation program. The map may indicate if LGUs and the DA had already agreed to implement the program in ASF-areas. This is to clearly assign the responsibility of any delay of program implementation between the DA and the LGU.

The DA has a monitoring unit for its programs. Perhaps this can be mobilized to gather real time information on program implementation.

For this very important program, perhaps a third-party evaluation of the program be done in the middle of it to summarize all the information about the program’s implementation, and compare that with the reports of the DA.

The agreement to implement the program should include representatives from the industry. Our pig industry is privately run, and for this program to succeed industry representatives must be involved, especially the commercial farms. These farms have the potential of accelerating the recovery of our pig inventories. Unlike backyard farms, commercial farms are easier to secure. The program’s inputs can be quickly translated by these farms into outputs and outcomes.

Program implementation is handled by this tripartite body including the LGU, industry representative, and the DA. As soon as sentinel protocols and re-population programs are started, this tripartite body should regularly meet to monitor the program and address any issues that may arise during the implementation.

MODERNIZATION OF THE INDUSTRY
A big challenge of the program is transforming the backyard sector of the industry. This sector comprises 60% of the industry. Experts have advised that traditional backyard farming is extremely vulnerable to highly contagious animal diseases. It is open and difficult to secure, especially if raising pigs is incidental work to generate extra cash for a household. The repopulation program in commercial farms could be vulnerable to highly contagious animal diseases like ASF with open backyard farms in operation, particularly in the same province and if biosecurity measures are not strictly enforced.

To address the problem, the INSPIRE program suggests the clustering of 50 to 60 backyard farms, to be operated and managed as a cooperative, association, or some other business entity. Clustered farms are easier to bio-secure. The DA will provide the repopulation benefits including bio-secured modern housing facilities and other support services.

The clustered pig farms are encouraged to centrally procure stocks, feeds, drugs, and other inputs; access credit facilities; raise pigs as one farm to ensure uniform application of technology; engage the services of slaughterhouses, logistics service providers; and market their products. If feasible, they may partly integrate operations. The LGUs are required to provide veterinary services and other administrative support to maintain area-wide biosecurity control measures to ensure the success of the program.

This is such an important modernization step for our pig industry. But are backyard farmers ready for this? There may be areas that are, such as I heard Lipa City is, but others may not be open to changing how they raise pigs, especially if they have to be in business with other farmers.

Perhaps, the LGUs can help facilitate this transformation by providing tax incentives and other benefits. A cluster of backyard farms can be declared by LGUs to be an agri-economic zone, receiving benefits from LGUs for a given period of time. With the Mandanas ruling, LGUs may be more able to finance these incentives for the economic development of their localities.

One important benefit that clusters of pig farms can receive from LGUs is the disposal of pig waste. Commercial farm operators had identified this to be costly and the cluster of backyard farms may not be able to afford this. But environmental rules require the proper disposal of pig waste. LGUs may offer benefits for the proper disposal of pig waste from farm clusters declared as local economic zones. LGUs can aggregate pig waste in their localities and operate a biomass energy plant, or contract out such a plant in their locality.

Let a study be done to identify how business clusters of former backyard farms ought to be formed; what incentives should they receive from local and national government agencies; how long should they receive such additional incentives; what does this mean for the individual backyard farmer; what safeguards are needed to protect the interests of all farmers concerned; do we need a special law for this?

The LGUs and DA have to undertake an information program to make backyard farmers know of the advantage they may have if they clustered their farms. There may also be a need for training the members of a cluster on how to do a pig business as one farm. It may also be possible for the cluster to hire third party professional managers to operate the farm.

Commercial farms as well in the first few years of the repopulation program should be made eligible for tax incentives under the new CREATE law. These farms may introduce modernization innovations in pig farming intended not only to bio-secure their farms but also to increase productivity.

 

Ramon L. Clarete is a professor at the University of the Philippines School of Economics.

Languishing

RAWPIXEL.COM/FREEPIK

Aha! That’s the word for it — languishing. This feeling of emptiness and a listless lack of drive and purpose. No fulfillment or pride of achievement. Day turns into night and night turns into day, your Circadian rhythm has lost step to intermittent insomnia. Maybe you get too much of the blue light from gadgets and the computer going online 24/7 for work and for play. Netflix bingeing too. And look what food bingeing has done to the Greek-god body — now looking like a goddam Gr—k!

“Psychologists find that one of the best strategies for managing emotions is to name them,” Adam Grant, an organizational psychologist at Wharton said in The New York Times (the April 19 article has gone viral). “In psychology, we think about mental health on a spectrum from depression to flourishing. Flourishing is the peak of well-being: You have a strong sense of meaning, mastery and mattering to others. Depression is the valley of ill-being: You feel despondent, drained and worthless,” Grant says.

“Languishing is the neglected middle child of mental health. It’s the void between depression and flourishing — the absence of well-being. You don’t have symptoms of mental illness, but you’re not the picture of mental health either. You’re not functioning at full capacity. Languishing dulls your motivation, disrupts your ability to focus, and triples the odds that you’ll cut back on work. It appears to be more common than major depression — and in some ways it may be a bigger risk factor for mental illness,” he warns.

It was sociologist Corey Keyes of Emory University in Georgia, USA who first focused on the middle mental syndrome in 2002 and named it “languishing.” It was developed further by other researchers in relation to productivity studies for business and operations. (Interestingly, in economic and business lingo “languishing” has long been used descriptively, as in “languishing in debt” or “languishing GNP,” etc., meaning staying in the doldrums, can’t quite get up.) In this protracted COVID-19 pandemic, collective “languishing” forced by the plunge of economic productivity and opportunities to the dark pit of uncertainty can cause traumatic damage to the moral and social fiber of the people.

Two more years of languishing (for a total of three years from the start of the pandemic lockdowns in March 2020) might already make a habit of laziness and indifference among the people, who would have surrendered to and would no longer be exasperated with restricted activity. But two more years of languishing in mental and emotional limbo is even optimistic. Most epidemiologists project five to seven years of proper clinical trials for the vaccines to be confirmed and released as true and effective protection against the virus. But wait, there’s more — the virus keeps mutating, and vaccines have to be constantly upgraded to address the rapidly emerging new variants of the virus. Health officials carefully remind all that what is being administered as vaccines coming in small shipments from abroad are dispensed on “emergency use authorization” (EUA). Why even worry about the medium- and long-term side effects of whatever vaccine may randomly have been jabbed into you? Just languish.

The “jab” has thus exacerbated the languishing. “What the heck” and “Whatever” are the shrug of the shoulders for come-what-may, in the uncertain promise of the only option — the vaccine. Fr. Johnny Go, S.J., is concerned about this protracted “languishing.” On a Zoom webinar last week for Assumption College parents and alumni, he cautioned that this new-named social/psychological/mental/emotional/behavioral malady is akin to “Acedia” — mental/spiritual sloth or apathy — one of the Seven Deadly Sins (also known as the Capital Vices, or Cardinal Sins) that can give rise to other immoralities in Christian catechesis.

Fr. Johnny distinguished between productivity, an obsession in today’s competitive race for more wealth, and plain activity, which limits expectations of maximized returns from such efforts. And yet activity can have a purpose beyond the material goals of productivity. Set doable personal goals like, maybe, learning something new (studying), volunteering for service to others, and strengthening relationships — especially with family. Focus on personal spiritual development — what really matters in life? Lower your expectations about quantifiable material productivity in this languid time of the pandemic. Remember the languishing in the 14 years of Martial Law, when many businesses were closed or taken over, even schools were closed in the beginning, media and information were controlled, and movement restricted — pretty much like what is happening now in the restrictions of the pandemic.

Yes, we remember the languishing in Martial Law, from 1972 to 1986, until the groundswell that was the 1986 People Power EDSA Revolution roused people from the lethargy, and fresh hopes burst with color as on a morning sunrise. Memories of the exuberance after languishing so long can suggest the realistic objectives of meaningful activity to keep both the spirit and body healthy while believing and trusting in a coming release from suppression and controls.

It seems a weird coincidence, perhaps a painful joke, that in the languishing under the dominating COVID-19, the people must be jolted from lethargy: national elections will be held in May 2022. National elections were likewise held in Martial Law in February 1986 (just before EDSA I), when the languishing people were roused from torpid sleepiness to confirm and reaffirm the dictator Marcos as continuing Dictator. But the EDSA Revolution happened instead. Marcos was ousted. The Filipino spirit fought and slew the devil of mental and spiritual sloth.

We must remember the valuable lessons learned from the EDSA experience. “What the heck” and “Whatever” with a shrug of the shoulders for come-what-may are suicidal tendencies when our future as a people collectively, and the opportunities for a better life individually, are challenged. There is something in our democracy now that does not seem quite right. Those of the older generations who experienced EDSA I must remember “Never again” emblazoned in our minds and hearts. No acedia or mental and spiritual sloth on principles and moral/spiritual values of Right and Wrong; Good or Bad; Just or Unjust; Love and Hate.

The coming elections will be a test (again) of how the Filipino spirit shall fight and slay the devil of mental and spiritual sloth.

Languishing has allowed much “Me-time” or time to be alone and be introspective on how we have lived our lives towards the best we can be before we meet our Creator and face judgment. Yes, so many close friends and relatives have died of COVID-19, or a pre-existing co-morbidity that was perhaps hastened by extreme anxiety from COVID. Too close to home. Deaths have riveted consciousness to one’s own mortality. The pandemic has helped heal souls even before bodies have been healed by mutable vaccines.

“We have no control of the virus,” Fr. Johnny said. “But we have control of ourselves.”

 

Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Plummeting education standards: A national emergency 

FREEPIK

Filipino children born in the last 10 years are at a disadvantage even before they enter the workforce. Due to educational standards that have plummeted, the average Filipino today has become intellectually inferior to his counterparts from the rest of Asia, Europe, and North America. Unable to compete, this will relegate the Filipino to be the manual laborers of the world unless radical reforms are set into motion. It is a national tragedy.

Every three years, the Program of International Student Assessment (PISA) evaluates 600,000 15-year-old students from 79 countries. The Philippines participated for the first time in 2018 for which 7,233 Filipino students from 187 public and private schools were evaluated. The results were appalling.

In reading, or the ability of students to extract information from a moderately long text, Filipino children were dead last among 79 nationalities evaluated. None of our students were able to comprehend lengthy narratives, deal with abstract concepts or make distinctions between fact and opinion.

In math, or the ability to interpret how simple situations can be represented mathematically (e.g., comparing prices between currencies), Filipino students were second to the last among all nationalities.

In science, or the ability to recognize basic scientific principles, Filipino students were at 71st position out of 79 countries, at par with Panama.

Our private school pupils, supposedly our best and brightest, are only at the same level in reading as students from Uruguay (ranked 48th overall). In math, they are at par with students from Morocco (ranked 73rd). In science, they are at the level as Indonesia (ranked 72nd). In other words, even our private schools students are in the lower 10% in terms of academic competence. Less than one percent of Filipino students were at the level of their counterparts from Singapore.

The average Filipino student has an average Intelligence Quotient (IQ) of 86 compared to an IQ of 108 for the average Singaporean, South Korean, or Hongkonger. Filipinos children have the lowest IQ in ASEAN, lower than kids from Myanmar, Laos and Cambodia. It’s safe to say that our youth are among the least future-ready on the planet.

Having a young population with generally low IQ comes with dire consequences. It will lead to mediocrity in governance, poorly run public institutions, a low success rate in entrepreneurship, slow technology adoption and low disciplinary compliance. This is because those with low IQ make important decisions based on emotional considerations, not based on empirical facts, evidence and analysis. They are also more impulsive and talk without filters.

Most worrying is that a whopping 69% of Filipino students believe that they are consigned to their level of intelligence. Only 31% believe they can improve if they work hard.

At the heart of the problem is the government’s lack of urgency and lackadaisical attitude towards uplifting our education standards. Save for a brief moment under Brother Armin Luistro who insisted on adding one more year to our elementary curriculum (K+12 program) and who built 10,000 public school classrooms through a public-private-partnership transaction, the Department of Education (DepEd) has only delivered the bare minimum, at best.

The DepEd, under the leadership of Secretary Leonor Briones, has secured the lion’s share of the national budget amounting to more than P600 billion per year. According to the DepEd, its thrust is four-tiered: 1.) To review and update the K-12 Program, 2.) To improve learning facilities, 3.) To upskill and reskill teachers and school heads’ through a transformed professional development program; and 4.) to engage all stakeholders for support and collaboration.

The DepEd’s thrust is a basket of motherhood statements. Is it enough to arrest the downward spiral in educational standards? We will know later this year when PISA conducts its next student assessment audit.

But I am not optimistic. Education was never high on the Duterte’s government’s list of priorities. If only the resources squandered on the war on drugs were channeled to education, we would be in a better place today.

The DepEd’s problem goes beyond the lack of classrooms, the lack of school facilities and ill-equipped teachers.

The problem is its outdated educational system which was developed during the pre-war era and simply enhanced by sporadic modifications. The system needs to be broken down and rebuilt from the ground up, taking new technologies in learning into consideration. More ambitious standards need to be adopted with bias to the sciences and engineering. Programs on discipline and ethics must improve. Innovation and creativity must be encouraged. Digital tools must be harnessed and emphasis must be given to English proficiency, which is fast eroding.

I realize that it is easier said than done. However, it must be noted that DepEd’s equivalents in Vietnam, Myanmar, and Cambodia have uplifted their socialist-based educational systems with less resources. Their youth register higher academic proficiencies and IQ than Filipinos.

Developing intelligence should be approached holistically. Studies show that 50% of intelligence is hereditary and developed in the womb. Thus, prenatal and maternal care play an important part. The remaining 50% is developed in schools. It is influenced by nutrition, mental health, home life, quality of instruction, and quality of learning facilities.

Even our higher learning institutions are eroding. According to the QS World University Rankings, the standards of the University of the Philippines have plunged from the 314th highest in 2010 to 396th in 2021. Ateneo’s ranking also fell from 307th in 2010 to between 601-650th place in 2021. De La Salle University was no different — its rankings eroded from 451 to 500th place in 2010 to 801 to 1,000th place today.

The constitution’s provision that bans foreign learning institutions from operating in the Philippines is working against our national interest. In effect, it deprived us of collaborations and learning transfers that would have uplifted our own educational standards. In contrast, Singapore benefited immensely from having Yale University, Chicago University, and INSEAD on their shores. It helped to advance Singaporean learning standards to a point where Singaporean universities are now counted among the top 50 in the world.

The future of the Philippines is bleak even if we are in our demographic sweet spot. There will always be a limit to our success for as long as our workforce is less intelligent than the rest of the world’s.

The state of our educational system is akin to a malignant cancer tumor that is slowly spreading. Unless radically arrested, it will debilitate the nation. This must be dealt with as a national emergency.

******

On a lighter note, here is a message from the Italian Chamber of Commerce:

The chamber, together with The European Diner (TED), Pocofino, and Danesi Cafè, would like to invite one and all to an event called “Tiramisù” on May 18 at 5 p.m.

This event will give you the chance to order a DIY Tiramisù kit featuring products from TED and Danesi Coffee. Along with the Tiramisù kit, you will get access to an exclusive webinar where you will learn how to assemble authentic tiramisù and learn about the history of Italy’s favorite dessert.

The webinar will be led by none other than Paolo Durante, co-owner and executive chef of TED (located in BGC). Representatives from Danesi Cafè in Italy will also be joining us to tell us more about their famous coffee blends.  Please call 0927-762-3906 for more details.

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@Andrew J. Masigan

Twitter @aj_masigan

PBA catches a break

THE Philippine Basketball Association’s push to start its delayed Season 46 caught a break late last week when it got government approval to have its member teams resume practices. — PBA IMAGES

Country’s hosting of FIBA Asia Cup Qualifiers gets nod, too

THE Philippine Basketball Association’s (PBA) push to start its delayed Season 46 caught a break late last week when it got government approval to have its member teams resume practices.

In an announcement made on Friday, the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID), through Resolution No. 114, gave the go-ahead on the planned workouts of PBA teams in areas under general community quarantine (GCQ) or moderate GCQ setup.

Also approved was the country’s hosting of the third window of the International Basketball Federation (FIBA) Asia Cup Qualifiers in June in a “bubble” setting at Clark City in Angeles, Pampanga.

In his online media briefing on Friday, PBA Commissioner Willie Marcial said the league welcomes the development as it serves as a prelude to the possible start of their new season in the next few weeks.

The league chief said he will meet with players and team officials this week to discuss the PBA’s protocols for the return to practices, including 5-on-5 scrimmages, which they hope to start at least by May 18.

Mr. Marcial is also set to meet with Games and Amusements Board (GAB) Chairman Baham Mitra to discuss the protocols in line with the Joint Administrative Order crafted by GAB along with the Philippine Sports Commission and Department of Health.

The PBA has short-listed Batangas City as a possible practice destination for teams since the area is under GCQ.

Mr. Marcial and his team have already inspected and approved the Batangas City Coliseum, Batangas State University Gym and the Lyceum-Batangas Gym as training venues.

Some teams, meanwhile, have made it known that they plan to trek North for their training.

But the PBA is not closing its doors on having the training’s resumption inside the National Capital Region, especially if the quarantine status in the NCR and the nearby provinces of Bulacan, Rizal, Cavite, and Laguna is downgraded to GCQ.

The Greater Manila Area is still currently under a Modified Enhanced Community Quarantine (MECQ) setup after a spike in coronavirus cases recently.

The MECQ status is in effect until May 14 and subject for reevaluation.

“It’s great news for us that we’re now allowed to return to practices. We’re studying our options and waiting for further developments as we move forward,” Mr. Marcial said.

The PBA is set to impose stricter guidelines as it resumes activities to ensure their successful conduct leading to the season start.

The guidelines cover among other things the needed swab tests for all concerned and orderly scheduling of practices.

Meanwhile, PBA governor Alfrancis Chua of Barangay Ginebra shared that they are now looking at June 15 as the start of Season 46 while also enjoining all members of the league to do their part in making the return to practices a success.

“After being given the approval to return to practice, it’s now our turn to show that we can hold activities in a safe manner to prove that it can be done and we can stage our new season,” said Mr. Chua in Filipino on The Chasedown program on Saturday.

Mr. Chua was with Mr. Marcial in a meeting with government officials two weeks ago where they presented the PBA’s proposal for the staging of Season 46.

The league was originally targeting to start its new season on April 18 until the surge in coronavirus cases in the country forced its deferment.

FIBA ACQ
In another development, the IATF-EID approved the Samahang Basketbol ng Pilipinas’ (SBP) hosting of the FIBA Asia Cup Qualifiers third window from June 16 to 20 in Clark.

The event will be staged in a bubble setting and conducted under strict health and safety protocols.

Game venue will be the Angeles University Foundation Sports & Cultural Center with Quest Hotel serving as the teams’ home.

Three groups are set to see action in the window, including Group A, which has the Philippines, South Korea, Indonesia, and Thailand.

“We’re looking forward to hosting our friends from Groups A, B and C and showing the kind of hospitality that the Philippines is known for,” said SBP President Al Panlilio in a statement.

Adding, “The SBP knows that Filipino basketball fans have waited for a long time for this and we’re just as excited as they are to have international basketball in our country again.” — Michael Angelo S. Murillo

Team Philippines member Coo goes for Olympic BMX qualification in Colombia

UNITED States-based Patrick Coo will be the lone Philippine representative in the International Cycling Union World Cup Round 4 Olympic qualifier in Bogota, Colombia, on May 30. — PATRICK COO FB PAGE
UNITED States-based Patrick Coo will be the lone Philippine representative in the International Cycling Union World Cup Round 4 Olympic qualifier in Bogota, Colombia, on May 30. — PATRICK COO FB PAGE

TEAM Philippines bicycle motocross (BMX) racer Patrick Coo seeks to earn a spot in the Tokyo Olympics when he takes part in the International Cycling Union (UCI) World Cup Round 4 Olympic qualifier in Bogota, Colombia, on May 30.

United States-based Coo, 19, is set to meet coaches Ednalyn Hualda and Frederick Farr from the Integrated Cycling Federation of the Philippines (PhilCycling) in the Colombian capital this week to prepare and comply with the 14-day quarantine protocol for the event.

The top junior racer will be the lone Philippine representative in Colombia after London 2012 Olympian Daniel Caluag was a no-go because of his job as a frontliner nurse in Kentucky. 

Despite that, Mr. Coo is excited to represent the country in the qualifiers and break through.

“I am very much motivated and excited to go after that slot [to the Tokyo Olympics],” said Mr. Coo, the 2019 Asian BMX juniors champion.

“I train hard all the time, but I am expecting tough opponents in Colombia.”

To qualify for Tokyo, Mr. Coo has to finish at least in fourth place in the Bogota qualifier.

For its part, PhilCycling said it is fully behind the push of Mr. Coo for the Olympics and looking forward to seeing his growth with the national team.

“We are hoping for Patrick to qualify for the Tokyo Olympics not only because of his potential to become a champion, but because of his passion and motivation — he trains endlessly,” PhilCycling head and Philippine Olympic Committee President Abraham Tolentino said in a statement. 

Mr. Coo is based in Bellflower, California, and born to Filipino parents Benjamin, who hails from Iloilo, and mom Romalyn from Cagayan de Oro City.

In 2019, he took part in a Tokyo Olympics test event and made a short visit to the country after.

In Colombia, Mr. Coo looks to join seven other Filipino athletes who have already qualified for the Olympic Games in Tokyo, namely: pole-vaulter EJ Obiena, gymnast Caloy Yulo, boxers Eumir Felix Marcial, Irish Magno, Nesthy Petecio, and Carlo Paalam, and weightlifter Hidilyn Diaz.

The rescheduled Olympics happens from July 23 to Aug. 8. — Michael Angelo S. Murillo

Athletes in vaccination priority list sought

2019 SEA GAMES WEBSITE
AN APPEAL was made for Filipino athletes, especially those seeing action in international competitions like the Olympics, to be included as essential workers in the government’s priority list to be vaccinated against the coronavirus. — 2019 SEA GAMES WEBSITE

SENATOR Francis Tolentino on Sunday made an appeal to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) to have Filipino athletes, especially those seeing action in international competitions like the Olympics, included as essential workers in the government’s priority list to be vaccinated against the coronavirus.

The senator made the remarks as both amateur and professional athletes remain excluded in the “A4 Priority” of the government in its ongoing nationwide vaccine rollout.

He expressed concern over it since the Tokyo Olympics is fast approaching while other athletes are also looking to train for the 31st Hanoi Southeast Asian Games (SEA Games).

The rescheduled Olympics this year is set for July 23 to Aug. 8 while the SEA Games takes place from Nov. 21 to Dec. 3.

“The athletes should also be prioritized as sports development should be part of the post-pandemic recovery process,” Mr. Tolentino said in a statement. “The physical well-being of our athletes is reflective of the health of the nation.”

Of the seven athletes who have qualified so far for the Olympics, only boxer Eumir Felix Marcial (two jabs in the United States) and weightlifter Hidilyn Diaz (one in Malaysia) have been inoculated to date. A total of 626 athletes, meanwhile, were identified for Team Philippines to the Hanoi SEA Games.

The Philippine Olympic Committee President (POC) earlier announced that businessman Enrique Razon pledged Moderna vaccines for the Philippine Olympic delegation, including administrative staff and media.

“The vaccines are in transit [for Olympics-bound athletes], but the problem is that all of our Olympic-bound athletes are training abroad,” said POC President Abraham Tolentino. “We will try to contact our counterparts if it is possible to include our athletes in their countries’ vaccination program.”

Olympic-bound athletes EJ Obiena (pole vault) and Caloy Yulo (gymnastics) are training in Italy and Japan, respectively, while boxers Nesthy Petecio, Carlo Paalam, and Irish Magno are in Thailand.

The POC also allotted a $40,000 grant from the Olympic Council of Asia for the inoculation of the SEA Games-bound athletes.

Senator Tolentino also made the same appeal for professional athletes playing for different sports leagues.

Currently included in the A4 Priority list are frontline workers in commuter transport, wet and dry markets, food service, news media, education, specific government agencies, and overseas workers. — Michael Angelo S. Murillo

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