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New demands in a post-pandemic period

Controversial French writer Michel Houellebecq recently declared that the world will be just the same after the coronavirus — only worse. Houellebecq described COVID-19 as a “banal virus” with “no redeeming qualities.” He warned that self-distancing and home-working accelerate isolation — the “obsolescence of human relationships.”

Indeed, incidents of depression and domestic abuse are reported to be higher now, worldwide.

In addition to assaulting human relationships, this pandemic is making new demands and putting pressure first on governments; second on markets; and third on science.

FIRST: DEMANDS ON PUBLIC POLICY
Governments face formidable challenges now. In normal times, government intervention in key economic sectors would be met with criticism, if not disdain. But in a crisis, a ubiquitous government is not harshly questioned. It is even expected.

In addition to seeking a coherent public package to combat the pandemic, MSMEs and big corporates now clamor for government support.

Under its proposed stimulus package, the Philippine Congress is exploring how more loans and guarantees can be granted with negative interest rates. These effectively translate into grants. If this will help small business survive and keep jobs, this might be worth pursuing. It’s a call of Congress.

Of the US economy, Nobel laureate Paul Krugman recently affirmed, “the principal job of economic policy right now isn’t to provide stimulus.” He pointed out that instead of sustaining employment and GDP, government must instead “provide life support — to limit the hardship of Americans who have temporarily lost their income.”

Since this global crisis involves human lives and jobs, this must also be true for the Philippines.

If we go by this principle, Congress may wish to pace its strategies into modules. It is too daunting for our economic managers to source funding for health mitigation, social protection and growth stimulus — all in one package.

Now, more than ever, the national budget is finite. While a few hundred billion pesos in additional public spending may be accommodated through a supplementary budget, a limit should be recognized. Funding is not free and easy.

In this time of the pandemic, heavy lifting by governments and monetary authorities around the world requires massive funding. This is achieved through 1.) raising higher revenues, 2.) more borrowings, and, 3.) public debt monetization. In this regard, during an economic lockdown, revenue-raising is futile. In the Philippines, the public sector has already tapped domestic and external capital markets for higher borrowing. The Bangko Sentral has also monetized public debt through its provisional advances.

What other recourse do we then have? What is more imperative at this time?

As we stressed in previous columns, the viciousness of the pandemic necessitates that our Congress and economic managers prioritize public health safety. Social protection and economic recovery can be pursued as a second plank of public policy.

In the spirit of recognizing trade-offs and as Congress had passed the Bayanihan to Heal as One Act, it must make the hard choice of respecting the presidential authority to realign the budget. Some infra projects should be allowed carry-over to 2021. Not only is this a matter of urgency. It is also a practical option. After all, there is limited public capacity to execute multi-year projects of the Build, Build, Build (BBB) Program. Moreover, with the approaching rainy season, and after two months of lockdown inactivity, the Department of Public Works and Highways and Department of Transportation can only do so much in the remaining six months of 2020.

Again, wise words from Krugman: “We’re going into the economic equivalent of a medically induced coma, in which some brain functions (must be) temporarily shut down to give the patient a chance to heal.” Let us heal as one.

As if the BBB Program is not already enough concern, several days ago, freelance writer William Pesek alleged that overseas sovereign credit raters are getting anxious and thus, the Philippine government should be more concerned about a different BBB: the nation’s credit rating.

Pesek needs to recognize that any possible change in credit ratings are understandable during this time of crisis. This is true not just for the Philippines, but for all nations as the global economy plunges into a recession. In the score board of the International Monetary Fund (IMF), except China and India, all major country groupings are likely to show contraction in 2020. While the growth forecasts of the National Economic and Development Authority (NEDA) and Bangko Sentral ng Pilipinas (BSP) are lower, no less than the Fund expects the Philippines to ride out 2020 with a modest growth of 0.6 percent, not a recession anyway. We know Pesek knows that as a rule, credit rating agencies are absolutely pro-cyclical.

SECOND: NEW STRESS ON MARKETS
The pandemic demands markets that work. Around the world, there was a deafening absence of resilience in supply chains for health gear like masks and gloves; health equipment like testing kits and ventilators; and health facilities like quarantine wings, hospital beds, and ICU units. Software apps for contact tracing and monitoring are also scarce.

Markets were not prepared for the viral outbreak. Risk management clearly failed to provide markets with intelligence and appropriate mitigants. This is despite Bill Gates’ warning a few years ago about an approaching viral pandemic.

Markets are now only playing catch-up. The US, UK, and China are racing to produce a vaccine. Four Chinese companies were reported to be testing vaccines on humans. Israel was also reported to have succeeded in isolating a key coronavirus antibody in its Institute for Biological Research.

This game of catch-up is aggravated by the virus’ rapid spread and mutation. This means we are all vulnerable to a second surge.

Since current research for a potential vaccine has been based largely on the genetic sequence of earlier strains, the outcome may be rendered less relevant and less effective. We strongly hope this will not happen.

THIRD: LEVELED-UP SCIENCE
This brings us to the demands now put on science. The pandemic clearly demands the centrality of science in public policy. This pandemic cannot be reduced to no less than a global health issue with fatal consequences. Rather, approaches to defeat it require some balancing and careful consideration of each country’s economic and social survival.

Science works well with a multidisciplinary approach. Analysis of the current medical issues can be enriched by economics, model building, statistics, political science and psychology. In utilizing varied strategies and engaging other expertise there can be a clearer prognosis of what civil society can expect in the next few weeks and months.

With better results from mass and random testing, as well as contact tracing, the Philippines’ Inter-Agency Task Force on Emerging Infectious Disease would have a more solid basis to make recommendations to the Executive and to formulate guidelines and protocols. Protecting and promoting the safety of the general public will be more data and evidence-based, leading to the desired outcome of a flattened epidemiological curve.

Business activities can then more carefully resume with appropriate safeguards.

 

Diwa C. Guinigundo is the former Deputy Governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was Alternate Executive Director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Making China pay

US Secretary of State Mike Pompeo began the week with a blast: “There’s enormous evidence that… the virus originated in Wuhan, China.” His comments followed weeks of strident demands from many other countries — from Australia to the UK to Germany and Japan — for the totalitarian regime to open up regarding the events that led to this pandemic.

Law commentators suggest holding China liable by way of the international law on State responsibility, particularly as to public health. The possibilities on that front, however, remain to be seen: China has not conceded jurisdiction to the International Court of Justice, remains a permanent member of the Security Council with veto power, refused to join the International Criminal Court, and is suspected of inordinate closeness to the World Health Organization.

On the State to State level, the legal options of making China responsible seem minimal. One route is the World Trade Organization (WTO), which foresees global trade contracting by 13%-32%. For the Philippines, OFW remittances are expected to slow down to 2% (from 3%), and exports to fall by $300 million.

The WTO’s dispute settlement system under GATT Article XXIII theoretically allows cases to be filed when an act — any act — by a WTO member (and China is one recognizing the WTO Dispute Settlement Body’s jurisdiction) causes another member’s trade to suffer.

Another avenue for the Philippines is to offset possible pandemic related damages against its debts to China, which (as of March 2019) was at $980 million. Aside from the humongous trade loss mentioned above, the Philippine economy (at least according to the University of Asia and the Pacific’s Peter U) was set to grow by 6.5% this year. Most analysis now peg it at around 2%. Add P275 billion of the National Budget now realigned under the Bayanihan Law, P600 billion in additional economic stimulus, a $1.5 billion ADB loan, plus individual and corporate losses, related deaths, bankruptcies, and such.

Domestically, the first step for the Philippines should be to simply enforce its laws: criminal, tax, smuggling, and immigration.

As far as hauling China or its officials before a Philippine court, it’s a longshot. Yet there are avenues worth looking at. One is RA 9851: Thus, any person or group committing a “crime against humanity” against Filipino citizens, even though such a person is a foreign official, can be held liable by a Philippine court. Admittedly, regarding foreign officials, “international law may limit the application” of RA 9851. Nevertheless, the law itself is open to the possibility of such a suit being “within the bounds established under international law.”

Finally, two enterprising upper-class UA&P students with a knack for studying finance, military and political history, and law put forward another tact: to hold instead the Communist Party of China (CCP) liable.

Rob Ong and Carlos Victa argue that the CCP may be classified as a non-resident foreign entity with its own distinct legal personality separate from the People’s Republic of China (PROC). Thus, though sovereign immunity may (for the sake of argument) attach to PROC officials, as such, nevertheless, the CCP wholly controls and directs the actions of the PRC and its instrumentalities. The CCP effectively helms China’s activities within the Philippines, whether it be through a corporation owned by the PRC or any of its instrumentalities. And yet the CCP, not being a government agency, is not covered by sovereign immunity.

This line of argument does have some basis, particularly considering Yaodi Hu v Communist Party of China, 2012 WL 7160373, at *3 (W.D. Mich. Nov. 20, 2012), which precisely held that the CCP is not entitled to sovereign immunity under the US Foreign Sovereign Immunities act.

If the argument holds, then cases can be filed (as example but not limited to) for quasi-delict, Corporation Code violations or of environmental laws, and the abovementioned RA 9851, by our government motu proprio or by private Filipino citizens before our courts against the CCP or its officials, specially if the CCP has physical or business presence here in the Philippines. Assuming causal relation between the damages incurred by the Filipinos (death, physical injuries, loss of profit, or employment) and the CCP’s fault or malice (e.g., concealment of valuable information) is proven, then China’s funds or assets here in the Philippines can be garnished to answer for such damages.

All the foregoing, however, is merely meant to initiate studies on the matter. And note the options discussed here were limited to the legal. There are diplomatic, financial, technological, or other such alternatives worth researching.

Frankly, this should be a non-partisan issue among Filipinos. If indeed China is responsible for this pandemic and if indeed it is possible to hold China to account, then we should unite in exerting all efforts that justice be done. That is, assuming our government is so inclined, has Filipino interests in mind, and possessed of the political will and foreign affairs savviness to do so.

 

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

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COVID-19 cases hit 10,343; death toll at 685 — Health dep’t

THE Department of Health reported 339 new coronavirus infections on Thursday, bringing the total to 10,343.

The death toll climbed to 685 after 27 more patients died, it said in a bulletin. One hundred twelve more patients have gotten well, bringing the total recoveries to 1,618, it added.

Of the 339 new cases, 61% or 1205 were from Central Visayas, almost a third or 110 were from Metro Manila and 7% or 24 came from other regions, DoH said.

The agency said 1,886 health workers have been infected, 403 of whom recovered and 24 died.

DoH said 130,990 people have been tested — 13,379 were positive and 117,332 were negative. Positive cases were more than the confirmed cases because these still had to be validated, it added.

Health Undersecretary Maria Rosario S. Vergeire said the country has a coronavirus death rate of 6.6%.

“We are seeing a large decrease and slowdown in the new cases and deaths,” she said, citing the Luzon-wide lockdown that started on March 17.

Katherine Reyes, associate dean for research of the University of the Philippines-Manila College of Public Health, said people would have to “live with the virus” until a vaccine is developed. People should take care of themselves by practicing personal hygiene, she added.

In a separate statement, the Health department said the government had taken delivery of seven metric tons of personal protective equipment and other medical supplies from the United Arab Emirates.

The virus has sickened 3.8 million and killed more than 265,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 1.3 million people have recovered from the disease, it said. — Vann Marlo M. Villegas

ABS-CBN franchise renewal won’t be vetoed, Roque says

PRESIDENT Rodrigo R. Duterte was unlikely to veto a bill seeking to renew the franchise of broadcast giant ABS-CBN Corp., which had been critical of his administration.

Mr. Duterte was inclined to sign the measure, which both houses of Congress have yet to pass, into law, his spokesman Harry L. Roque said at a news briefing on Thursday.

The media company was forced to sign off this week after the National Telecommunications Commission ordered it to stop operating upon the expiration of its 25-year franchise on May 4.

“Unless there is any constitutional infirmity, I don’t think the President is inclined to veto it,” he added.

Mr. Roque insists the President is “neutral” on the ABS-CBN issue.

Mr. Duterte’s government recently renewed his attacks on ABS-CBN, with his chief government lawyer asking the Supreme Court to revoke the media network’s franchise.

Solicitor General Jose C. Calida accused ABS-CBN of using an “elaborately crafted corporate veil” to allow foreign investors to take part in its ownership.

The network allegedly violated the ownership restriction when it issued Philippine depositary receipts to foreigners.

The media network has called the lawsuit “an effort to shut down ABS-CBN to the serious prejudice of millions of Filipinos who rely on the network for news, entertainment and public service.”

Salvador S. Panelo, Mr. Duterte’s chief lawyer, has said that while the President’s displeasure at ABS-CBN might have a basis, he had nothing to do with the lawsuit.

Critics have said the issue of ABS-CBN’s franchise has become both personal and political. Mr. Duterte had openly harbored a grudge against the broadcaster.

In 2017, he accused ABS-CBN of swindling after it refused to run political ads he had paid for during the 2016 presidential campaign.

Mr. Duterte had also criticized the broadcaster for airing news stories about his alleged secret bank accounts. He said he would block the renewal of the company’s franchise if he had his way.

“I will not let it pass,” he said in 2018. “Your franchise will end. You know why? Because you are thieves.”

In February, Mr. Duterte said he had forgiven the network, asking it to donate to charity the ad money it wanted to refund him. — Gillian M. Cortez

Who’s up for the job of decontaminating Facebook?

FREEPIK

By Kara Swisher

SO, BIG SURPRISE, I have not been asked to be on Facebook’s Supreme Court of content. I was all ready to do an anti-Sherman if called: I will accept if nominated and will serve if elected.

Half of its members were finally announced on Wednesday morning, including four co-chairs, one of whom is Helle Thorning-Schmidt, a former prime minister of Denmark. She is clearly aces in terms of reputation and credibility, one of a slate of 20 members who scream global, fancy résumés, diverse and politically balanced.

Together, the independent organization, which is funded by the social media giant by a trust it cannot mess with, will judge appeals from users on material that has been taken down from the platform by the company, and it will review policy decisions that the company has submitted to the board.

The group selected so far — there are 20 more names to come — is qualified to do all that and a bag of chips. There is a former judge and vice-president of the European Court of Human Rights (Andras Sajo), the former editor in chief of The Guardian (Alan Rusbridger), a Nobel Peace Prize recipient who promoted free speech in Yemen during the Arab Spring (Tawakkul Karman), a vice-chancellor of the National Law School of India University (Sudhir Krishnaswamy), the former director general of the Israeli Ministry of Justice (Emi Palmor) and the leader of Africa’s Internet Without Borders (Julie Owono).

Impressively impressive no doubt, and designed to be that way, which is why it is also nonoffensively nonoffensive.

As yet, there are no loudmouths, no cranky people and, most important, no one truly affected by the dangerous side of Facebook. I asked in a press call on Wednesday morning, for example, why there were no board members like the parents of the Sandy Hook victims, who were terrorized by the conspiracy theorist Alex Jones on the platform until he was finally tossed off. I also asked whether we could find out who turned down an offer to be on the oversight board.

I was given appropriate nonanswers to both those questions, along the lines of we’ll see and there are privacy concerns naming those who said no thanks. Which is why the rollout left me with the nagging feeling — especially after looking over the complex setup that is planned to hear cases — that the oversight board has all the hallmarks of the United Nations, except potentially much less effective.

I am not trying to be glib here, because solving the problem of how to deal with speech across the largest and most unwieldy communications platform in human history is not for the faint of heart. It may be beyond the capabilities of anyone: I am not sure that any deliberative body would be capable of doing so, given that Facebook and its founder and chief executive, Mark Zuckerberg, have purposefully created a system that is ungovernable.

With no real checks and balances built in from the start, the product has become a free-for-all that stresses engagement over context, speed over reflection and viral growth above all.

It’s ironic, of course, that right now the idea of internet virality is much less of a positive thing as COVID-19 rages across the world. But acting like a virus — Facebook spreads and spreads and spreads exponentially — has been the thing that the company has excelled at compared with other social media companies. It’s viral power is what has made it one of the most lucrative and successful organizations on the planet.

Which is to say in the simplest of terms that it is built that way, and Facebook’s problems are structural in nature. It is evolving precisely as it was designed to, much the same way the coronavirus is doing what it is meant to do. And that becomes a problem when some of what flows through the Facebook system — let’s be fair in saying that much of it is entirely benign and anodyne — leads to dangerous and even deadly outcomes.

That is what makes the job for these board members such an overwhelming challenge, since they are charged with dealing with issues on a case-by-case basis. To my mind, that is trying to push back the ocean with one hand.

And perhaps that is why one of its co-chairs, Michael McConnell, called for “patience” as the board developed. A former US federal circuit judge who is also a constitutional law professor at Stanford Law, a religious-freedom and First Amendment expert and a US Supreme Court advocate, Mr. McConnell seemed the most canny of the bunch when describing its role.

“We are not the internet police,” he noted flatly, discussing its role in hearing appeals and being deliberative. But that is perhaps the problem, in that we now have a kind of court, but without the real-time protection of cops where and when most of the damage is done.

Last fall, I wrote a column on the oversight board, hoping that there would be some way to fix this. “Facebook has presented many ideas over the years to limit the toxicity — problematic artificial intelligence monitoring or more troubled systems that employ overwhelmed human moderators or even a blog effort in 2017 called ‘Hard Questions,’ to name a few,” I wrote. “But this latest effort is intriguing — and even laudable. So while the possibility of its becoming a giant PR Potemkin village to assuage critics is very high, it deserves public support.”

I still think that, but I am also less sure that a very smart group of qualified and thoughtful people under pressure from a fire hose of all the awful issues of our digital lives can actually help and rein in what Facebook has wrought.

“We won’t please everyone,” Mr. McConnell also noted. Indeed not.

 

THE NEW YORK TIMES

 

Kara Swisher, editor at large for the technology news website Recode and producer of the Recode Decode podcast and Code Conference, is a The New York Times contributing Opinion writer.

Regulator says there’s enough supply of water in capital, nearby cities

THE National Water Resources Board (NWRB) on Thursday said there was ample water supply in Metro Manila despite lower water levels in Angat Dam.

Angat Dam had posted a steady decline in its water level, with a daily drop of about 20 centimeters amid the summer heat, board Executive Director Sevillo D. David, Jr. told DZBB radio.

The dam’s water level goes down by a meter in five to six days, he said.

The water level in Angat Dam was at 189.28 meters as of Thursday morning, 0.19 meter lower, according to the local weather bureau.

The dam has a minimum operating level of 180 meters and a normal level of 212 meters.

“The current level of Angat Dam is still normal despite its decline,” Mr. David said. “It is really expected to go down during the summer months.”

Mr. David said NWRB and the Metropolitan Waterworks and Sewerage System were closely monitoring the water situation in the dam.

He added that the weather bureau expects rains by the end of the month, which will raise the water level.

NWRB has increased the water allocation of Metro Manila’s two water concessionaires to 46 cubic meters since the government declared a public health emergency due to the novel coronavirus pandemic.

“Water is used for sanitation and preventive measures such as handwashing during the COVID-19 pandemic,” Mr. David said, adding that people should use water responsibly. — Revin Mikhael D. Ochave

What your post-lockdown office will look like

By Therese Raphael

WHETHER working from home has been a productivity and wellness-enhancing revelation or a burden to be shouldered with stoic resolve depends on your job, your home setup, and your personality. It may even depend on the day. But just as air travel changed beyond recognition after 9/11, traditional offices appear set to become safer, cleaner, and less pleasing environments too.

UK Prime Minister Boris Johnson is preparing to unveil detailed guidance on Sunday for bringing Britain out of lockdown. Each employment sector will have to adapt in different ways but leaked drafts of his plans suggest that those of us who work in conventional offices will find they look and feel very different in the coronavirus era.

One noticeable change will be proximity to other workers; we’ll sit at least two meters (6.5 feet) apart. There will be no squeezing in the extra person at the lunch table or in a conference room. Forget hot desking. The use of printers and whiteboards will be frowned upon. Tape or paint will mark off lanes and close off desks to enforce distancing and spacing, even in elevators. Sanitizer stations will be everywhere. We’ll arrive and leave at staggered times, in single file, from separate entrances if possible.

Some will happily accept these curtailments in order to be back in the physical fray of office life, and out of their own kitchens and living rooms. For this group, there’s no substitute for face time with colleagues and the energy an office brings.

Others have found remote working saves time and energy on commuting, while it has the happy advantage of lessening your chances of infection. Many of these people feel it also provides fewer distractions and a better life balance without sacrificing productivity (although others have found all hope of balance or delineation between work and personal time has gone out the window).

The “WFH” fans will take a dim view of the brave new workplace. I can bounce between the opposing views depending on the day and task, but I probably lean toward thinking that a remote-working option balanced with plenty of office time is optimal. That seems confirmed by studies that show workers are happiest when they have some control over their environment.

A recent Gallup poll of at-home workers in the US found more than half wanted to continue to work remotely as much as possible, although the number dropped to 53% from 62% the longer their spell of remote working continued. Workers in finance, technology, media, insurance, and professional services were most likely to prefer remote working more than those in education, retail, construction, and transport.

What’s surprising is how positively managers view the experience, with more than half saying they’ll allow employees to work remotely more often. The result may be extra regional offices, less business travel, and more Zoom meetings.

There may be other benefits to the change. When we’re in the office, we may value our relationships with colleagues a bit more than in the days before COVID-19. Given that many women take career breaks because of their employer’s dogmatic rigidity on working practices rather than any desire for a long pause, a new flexibility may prove beneficial to women. It may help men become more engaged in parenting and home life.

In the UK, remote working has been increasing in recent years, although it still only applied to 5% of the country’s workforce before this period of lockdowns. That’s likely to change, given the range of jobs that can be done remotely and the government’s need to manage the flow of people using mass transit systems like London’s Tube.

If Britain follows a similar strategy to Ireland’s (announced last week) and responds to the growing pressure from business leaders to provide return dates, workers with very little contact in their offices could be back at work before the end of June, while others would return in the second half of July. But Johnson will probably ask those who can work from home to keep doing so. That would make sense. His “stay at home” message has been so successful that many Britons are reluctant to return to work environments.

Still, the reopening plans will also create confusion, and employers demanding clarity are unlikely to get it. As prescriptive as it sounds, the new guidance will still leave a lot up to interpretation, sprinkling in phrases such as “where possible.” Britain’s trade unions are already pressing for clearly mandated safety measures. Keir Starmer, leader of the opposition Labor Party, has criticized the consultation documents as too vague and he’s calling for a “national safety standard.”

I haven’t walked around the City of London since our team was sent home in March, but I picture miles of empty offices and deserted streets, normally the working home of some 522,000 professionals, who emerge from Underground stations each morning, fill gleaming buildings and patronize the local bars, gyms and restaurants. Worst of all is thinking of Bloomberg’s recently built, prize-winning headquarters standing largely empty. But just as people got used to new rules for flying after 9/11, I suspect we’ll be back to sharing space with colleagues eventually. It’s just going to be different.

“I wish there was a way to know you’re in the good old days before you’ve actually left them,” said the character Andy Bernard (Ed Helms) in the finale of the NBC sitcom The Office. Don’t we all.

 

BLOOMBERG OPINION

#COVID-19 Regional Updates (05/07/20)

Wage rates, incentives, logistics key issues in balik probinsya program

SUPPORT services and infrastructure such as access roads in remote areas — like this new highway between Lanao del Norte and Bukidnon — are key components in attracting people and investors to the government’s Balik Probinsya program. — MANNYPIÑOL

THE Mindanao Development Authority (MinDA) set off this week on a mission to start scouting for areas where the national government’s new program called balik probinsya — literally means back to the province — could be piloted.

Two provinces, Zamboanga del Norte and Lanao del Norte, immediately signed up.

MinDA Chair Emmanuel F. Piñol, in a post on his Facebook page where he journals the agency’s travels, said Zamboanga del Norte Governor Roberto Y. Uy committed an available land of at least 50 hectares where a resettlement area with agri-fisheries potential can be set up for local “families who are now among the informal urban dwellers in Metro Manila and Metro Cebu.”

In Lanao del Norte, local officials said the town of Kauswagan is “ready to accept the first 200 families who would like to come home… in a 5-hectare housing-with-livelihood activity.”

President Rodrigo R. Duterte signed on May 6 an executive order formalizing and setting out guidelines for the Balik Probinsya, Bagong Pagasa (BPBP) program, which was prompted by the coronavirus disease 2019 outbreak, with most cases centered in the country’s highly-urbanized areas, especially the National Capital Region.

The program’s aim is to “reverse migration” by boosting economic opportunities in less urbanized and rural areas.

“(T)he uncontrolled upsurge of population in the NCR brings to the fore longstanding issues on the lack of viable and sustainable employment opportunities in the countryside, unbalanced regional development, and unequal distribution of wealth.

Mr. Piñol said following the Presidential order, MinDA will take the next step of holding workshops to prepare the localities “for the first returnees.”

But as these “model” pocket sites get off the ground, the success of a larger scale and sustainable balik probinsya scheme would need higher wage rates, incentives for investors, and an improved logistical system.

“Personally, I see this discriminatory wage rates (whose constitutionality could be challenged) as one of the reasons why many job seekers flock to the urban centers,” Mr. Piñol said.

Davao City Chamber of Commerce and Industry President John Carlo B. Tria told BusinessWorld any proposal “to raise wage rates can be studied further” while the concern on incentives can be addressed more quickly with the passage of the Corporate Income Tax and Incentives Rationalization Act (CITIRA).

Under CITIRA, which is still under congressional discussion, the Fiscal Incentives Review Board’s (FIRB) coverage will include private businesses apart from government-owned and controlled corporations.

With the FIRB’s expanded authority, Mr. Tria said, “incentives can be developed to achieve the intended purpose of bringing industry to regions other than existing industrial centers.”

“This is because, I believe current incentives such as those provided by PEZA (Philippine Economic Zone Authority) are generally applied to export oriented industries,” he added.

The business leader also said setting up key infrastructure facilities like cold storage and the improvement of seaports and airports are necessary complement production.

“These can all create the local employment that can drive the Balik Probinsya,” he said.

MinDA will present on Friday to the BPBP Council, chaired by Executive Secretary Salvador C. Medialdea, several models for resettlement.

Among these are agriculture-based communities with irrigation and market linkage support from government, and processing centers with private investors tapping local workers and raw materials for the production of value-added commodities.

BILL
In a related development, Bohol Rep. Kristine Alexie B. Tutor, a member of the House of Representatives’ housing and urban development committee, filed on Wednesday a bill seeking to decongest the metropolitan areas.

“I have filed House Bill 6674 to directly respond to the urgent need for a Balik Probinsya program for the urban poor, especially those in Metro Manila, Metro Cebu, and Metro Davao. HB 6674 complements and dovetails with Executive Order (EO) 114 of President Rodrigo Roa Duterte also about Balik Probinsya,” she said in a statement Thursday.

HB 6674, if passed, will be known as the Balik Probinsya Public Housing and Relocation Act.

Under the proposed law, the Philippine Statistics Authority (PSA) will be mandated to design and conduct surveys of urban poor households residing in informal settlements to gather “economic, social, and personal data necessary for implementing economic and social policies.”

The bill also tasks the Department of Human Settlements and Urban Development (DHSUD) to identify and designate Balik Probinsya Public Housing relocation sites to host migrating communities.

“The bill lays down the mandate to have ready employment for the beneficiaries, public housing, and the essential components of a functioning, thriving community. Jobs, education, electricity, water, and health services are mandated,” Ms. Tutor said.

For economic sustainability of the public housing communities, Ms. Tutor said the bill includes “mandates for ecozones and tourism enterprise zones as components of the commercial areas of the communities.”

Micro, small and medium enterprises (MSMEs) operating in Balik Probinsya Public Housing Communities will exempted from value-added taxes in their first three years of operation.

“The Balik Probinsya program is a medium term solution to the urban congestion and population density of Manila, Cebu, and Davao. I am hopeful that by Year 2022, the first Balik Probinsya public housing communities would have its first batches of residents settled in,” Ms. Tutor said. — Carmelito Q. Francisco and Genshen L. Espedido

Nationwide round-up

House minority leader seeks NTC abolition

HOUSE of Representatives Minority Leader Bienvenido M. Abante, Jr. filed House Bill 6701 on Wednesday seeking the abolition of the National Telecommunications Commission (NTC) for its alleged “defiance” to Congress over the franchise of broadcast firm ABS-CBN Corp.

“Contrary to its previous pronouncements, the NTC issued a Cease and Desist Order directing ABS-CBN to cease operations immediately. This brazen act of NTC is an open defiance and an insult to Congress. The NTC should be abolished and its functions and powers be transferred to the DICT (Department of Information and Communications Technology) where it can be better exercised and hopefully be more responsive to the needs of our changing times,” said Mr. Abante, who represents Manila’s 6th District, in the bill’s explanatory note.

The bill proposes to transfer all of NTC’s assets, contracts, and documents, including existing appropriations, to the DICT.

The DICT secretary will also be authorized to enter into sales through public bidding, negotiated sale, lease or any other form of divestment or transmission of rights over assets of the NTC. Proceeds of the sales will be remitted to the Bureau of Treasury.

NTC officials and employees who choose to leave government service will be given a severance package in addition to the separation and retirement benefits which they are entitled to, with the funds to be sourced from the proceeds of the sale of NTC assets.

NTC Deputy Commissioner Edgardo V. Cabarios did not immediately reply to requests for comment.

ABS-CBN, whose congressional franchise expired on May 4, stopped its broadcast operations on Tuesday night in compliance with the NTC order.

Meanwhile, 13 senators on Thursday asked the NTC to reconsider the cease and desist order issued against ABS-CBN.

Senator Risa N. Hontiveros-Baraquel on Thursday said a resolution is being finalized asking NTC to fulfill its commitment to grant a provisional authority to allow continued operation of the network pending franchise approval.

Ms. Baraquel cited NTC’s earlier statement made before a Senate hearing.

She added the Senate could also consider citing the NTC in contempt, just as the House committee on legislative franchises had warned.

“Sa House, sinabi niya (they said that’s) contemptible ‘yan. That could be a similar stand taken by us in the Senate.”

The resolution was signed by Senate President Pro Tempore Ralph G. Recto, Majority Leader Juan Miguel F. Zubiri, Minority Leader Franklin M. Drilon, and Senators Francis N. Pangilinan, Juan Edgardo M. Angara, Emmanuel Joel J. Villanueva, Ma. Lourdes Nancy S. Binay, Manuel M. Lapid, Sherwin T. Gatchalian, Emmanuel D. Pacquiao, Leila M. de Lima and Pia S. Cayetano.

Solicitor General Jose C. Calida filed a quo warranto petition in February on the network’s existing franchise, citing among others the violation of ownership requirement.

This prompted the Senate public services committee to conduct an inquiry, in which the media network was cleared of the alleged violations.

The chamber later passed a resolution allowing the NTC to authorize ABS-CBN’s continued operation.

The bill extending the franchise of ABS-CBN Corp. and its unit ABS-CBN Convergence, Inc. for another 25 years is pending at the committee level. — Genshen L. Espedido and Charmaine A. Tadalan

Mall-wide sale banned under eased quarantine rules

SHOPPING malls are prohibited from holding bargain sale and other marketing events under the government’s general community quarantine (GCQ) policy to avoid the convergence of people in these enclosed areas given the continued threat of coronavirus disease 2019 (COVID-19) transmissions.

“Wala muna po tayong sales at saka mga marketing events na magdadahilan para magdagsaan ang tao (We will not have sales and marketing events that will draw crowds),” Palace Spokesperson Harry L. Roque said on Thursday.

The ban is part of the GCQ guidelines for malls and shopping areas released by the Department of Trade and Industry.

The GCQ generally allows the resumption of public transportation and reopening of more businesses and government offices.

Other measures that shopping malls must implement include strict social distancing and the deployment of dedicated personnel who will monitor normally dense areas such as escalators and where people need to line-up.

Foot traffic within the mall must also be limited to a maximum of one person for every two square meters. — Gillian M. Cortez

Save the Children calls attention to plight of young population amid outbreak

SAVE the Children Philippines called on the government and local health authorities not to overlook the needs of the young population amid the health crisis, noting that 424 children in the country have been infected by the coronavirus disease 2019 (COVID-19), nine of whom have died.

“No child should die from preventable causes,” said Save the Children Philippines Chief Executive Officer Alberto T. Muyot.

The local office of the international organization said other existing health-related concerns such as malnutrition makes Filipino children more vulnerable to the virus.

“Children who die from COVID-19 may have been suffering from acute malnutrition or wasting caused by hunger with complications such as pneumonia and dehydration due to diarrhea,” Mr. Muyot said.

Amado Pawaran, health and nutrition advisor of the organization, said proper nutrition is key to prevent malnutrition and micronutrient deficiency. This will also boost the immune system, which serves as protection against illnesses.

“The COVID-19 pandemic and the enhanced community quarantine did not only create a situation that posed challenges to the nutrition programs for severely malnourished children as operations of health centers have been disrupted, worse, it has resulted to the inability of families to meet their basic food requirements due to income losses,” he said.

The highest confirmed COVID-19 cases among children is in the 15-19 years old bracket with 154 cases. This is followed by children below four years old, according to Department of Health data, including the nine reported deaths. — Vann Marlo M. Villegas

US grants additional $5.9M fund for PHL COVID-19 fight

THE United States government on Thursday said it will provide another P298 million ($5.9 million) to the Philippines in aid of its efforts to address the impact of the coronavirus disease 2019 (COVID-19) outbreak.

On top of this, the US Agency for International Development (USAID) will also partner with 18 hard-hit local government units for a more effective crisis management and response plan.

“This latest assistance builds on our long-standing relationships with local government units across the Philippines, and represents our continued commitment to our Filipino friends, partners, and allies in this time of crisis,” American Ambassador to the Philippines Sung Kim said in a statement on Thursday.

The US government earlier provided a $9.3 million funding, or around P472 million, which brings its total COVID-19 response assistance to $15.2 million, or over 768 million.

The additional grant will also be used in establishing public hand-washing facilities, and providing food supplies to local communities. It may also be used in support of local businesses affected by the lockdown.

“To assist with small and micro-enterprise recovery, USAID will facilitate access to credit and provide grants and skills training to heavily affected sectors and communities,” the embassy said.

The new tranche of financial assistance includes $875,000, or P44 million, from the US Department of State’s Bureau of Population, Refugees, and Migration for the International Committee of the Red Cross.

This amount will be used to acquire additional medical supplies and expanding hospital capacity, among others. — Charmaine A. Tadalan

P3.5M worth of overpriced instant noodles seized from online seller

THE government seized more than P3.5 million worth of overpriced instant noodles being sold online by a seller based in Las Piñas City.

The Department of Trade and Industry (DTI) and the Philippine National Police (PNP) conducted the operation on April 30, arresting two people and recovering more than 6,000 boxes of Lucky Me noodle brand.

The instant noodles, classified as basic goods, were sold online for P9.50 each, above the government’s standard retail price set at P7.75.

DTI, in a press statement on Thursday, said the seized goods “are in the custody” of the SM Group of Companies’ Legal Department assistant vice president “who undertakes to fully cooperate” in the ongoing investigation.

DTI further clarified that “SM and the aforementioned Executive are not involved in the online resale of overpriced items of certain individuals.”

The DTI, along with the Agriculture and Health departments, released a joint memorandum on March 18 imposing a price freeze on basic necessities and prime commodities following the declaration of a state of public health emergency due to the coronavirus disease 2019 outbreak.

Violators may face up to P2 million in fines or up to 15 years’ imprisonment.

“The utmost protection to the rights, welfare, and safety of consumers is very crucial, especially at this time,” DTI Secretary Ramon M. Lopez said. — Jenina P. Ibañez

Media task force, NBI to probe slay of Dumaguete broadcaster

JUSTICE SECRETARY MENARDO I. GUEVARRA — PCOO.GOV.PH

JUSTICE Secretary Menardo I. Guevarra said he has instructed the Presidential Task Force on Media Security to probe the killing of a radio broadcaster in Dumaguete City, while the National Bureau of Investigation will assist or conduct a parallel investigation if necessary.

“We let the NBI step in whenever the PNP (Philippine National Police) faces a blank wall or when there is reasonable basis to believe that other law enforcers may be involved,” he told reporters in a mobile-phone message.

According to the National Union of Journalists of the Philippines, local broadcaster Rex Cornelio Pepino was gunned down May 5 “as he headed home with his wife after hosting his regular program.”

“It is alarming that Cornelio was the third journalist — all broadcasters — murdered (in the city) in as many years,” NUJP said.

The Committee to Protect Journalists (CPJ) called on the authorities to conduct “a swift and transparent investigation” on the killing of Mr. Pepino.

CPJ ranks the Philippines fifth in the Impunity Index in 2019, a report on killings of journalists and where perpetrators were unpunished. — Vann Marlo M. Villegas

Employees, companies welcome WFH setup as ‘new norm’ evolves

With the government extending the enhanced community quarantine to May 15 in select regions, provinces, and cities, including Metro Manila to mitigate the spread of the coronavirus, the Philippines is joining the worldwide trend of encouraging people to work from home (WFH) wherever feasible to intensify social distancing.

Research recently released by Lenovo shows that employees and businesses are adapting to work from home arrangements, with smart technologies having already enabled the rise of a global workforce that stays connected in a work-from-anywhere world.

“Our survey suggests that the employee experience was already changing before the pandemic hit,” said Michael Ngan, president and general manager of Lenovo Philippines. “For example, in the past 15 years, the number of those regularly working from home has grown 159% in the US and the same increase is happening in other markets. While our current situation is extraordinary, we are seeing a real willingness from workers to adapt and adopt flexible work arrangements. This confirms that corporate technology investments are paying off, as most people now feel productive at home and believe that the workforce will move more in this direction once the crisis has passed.”

The Lenovo study, which looked at employee attitudes towards WFH in China, Japan, Germany, Italy, and the US, found that a majority of employees (87%) felt at least somewhat ready to make the shift to WFH when required. Most had already been either encouraged (46%) or required (26%) to WFH as part of COVID-19 mitigation measures as these countries were among the most hardly hit by the pandemic. Furthermore, 77% expect that companies will either encourage or at least be more open to letting staff work remotely in the future.

Telecommuting in the Philippines

Even when the quarantine is lifted, the Philippine government is expecting reduced economic activity as a result of the public’s hesitation to engage. In addition, a pro-work from home stance has already been raised as a solution to traffic woes, particularly in the capital region of Metro Manila. The Telecommuting Act (R.A. 11165) was signed into law to allow employees to conduct work at home or remotely outside the workplace.

The move to telecommuting is also a welcome development to the nation’s rising gig economy which thrives on hiring employees on a flexible and freelance setup through online platforms. The Philippines currently ranks sixth in the world and is the fastest-growing market for the gig industry, revealing a 35% year over year growth in freelance earnings as reported in financial services company Payoneer’s 2019 Global Gig-Economy Index.

With the freedom to work anywhere, flexible schedules, the opportunity to prioritize work according to personal schedules, plus the ongoing pandemic, the gig economy in the Philippines is expected to see tremendous growth this year. All these reiterate the need for companies to invest in smarter mobile technologies designed to bolster employee productivity at home or outside the office.

Smarter technology, digital natives

Worldwide, the rapid adoption of WFH policies has been made possible by the increasing sophistication and affordability of smart mobile technology, which has enabled many employees to work when away from their desk.

Changing workforce demographics play a part too. The Millennials and Generation Z employees who make up nearly 60% of the workforce today grew up with video on demand, networked video games, and video communication platforms. These digital natives are driving the development and adoption of technology for remote working and collaboration.

The ‘race for talent’ has also put organizations under significant pressure to rethink their workspace, technology, and culture to attract and retain the best people. A 2018 Harvard Business School global study of 6,500 business leaders found that over 60% predicted that employee expectations for flexible working will significantly affect the future of work.

A human resources consulting firm recently revealed that a majority of employers are still hiring talent, despite the anticipated business impact from the coronavirus outbreak. In late February 2020, 44% of respondents said that they already offer remote working as an employee benefit to either all of their staff or select employees and functions.

“At a time when all companies need to navigate uncertainty and keep their business running, technology enables them to keep moving forward. Companies need to adjust now and ensure their employees have the video tools, technology, and training required to succeed today and in a future where more remote working may be the norm,” Mr. Ngan added.

Lenovo’s Tips for a Productive Remote Workforce

 – Get the tech in place: The team will need the right technology for remote work. Laptops need to be easy to carry, seamlessly integrated with the corporate infrastructure, and installed with video conferencing technology and other collaboration tools. Accessories like noise-cancelling headphones and additional large monitor could also be essential for some workers.

 – Hold a team meeting at the same time every day: When teams are working remotely, there’s nothing more important than ongoing communication. Going beyond official emails and work updates, a scheduled team meeting to discuss daily priorities will help everyone stay on track.

 – Make video conferencing the new normal: Video conferencing and content-sharing tools keep employees connected across town or around the world and help them avoid feelings of isolation. Employees appreciate the engaging style of video, but they need to have the right technology and the confidence to use it.

 – Keep a team chatroom open all day: A single open group chatroom will likely see more chatting than the video channel because it allows more casual shop talk, water-cooler chats, and late night ‘you had to be there’ jokes. Younger professionals will be especially comfortable in this medium, helping others to get on board.

Encourage flexible work schedules: As COVID-19 impacts schooling, childcare and other services, let your workforce know that you understand that they may be juggling work and home responsibilities in new and challenging ways.

UAAP shows support for ABS-CBN after shutdown

LONG the home of the University Athletic Association of the Philippines (UAAP) through the ultra high frequency channel S+A, member schools of the collegiate league moved to show its support for media giant ABS-CBN following its forced shutdown of its broadcast operations early this week.

The schools issued their respective statements on the forced closure, lamenting the turn of events and how it was a big blow, among other things, to the flow of information especially during these trying times with the coronavirus disease 2019 (COVID-19) pandemic.

“Filipinos need ABS-CBN now, especially now during these urgent times of the pandemic, when the information provided by our country’s broadcast journalists spells the difference between life and death for our citizens, most of whom still get their news from television and radio,” said Ateneo de Manila University president Fr. Jet Villarin, SJ in a statement.

“We urge our lawmakers to act post-haste to approve the ABS-CBN franchise and restore its broadcast,” he added.

It was a testament shared by the University of Santo Tomas, which described ABS-CBN as “a constant companion of Filipinos here and abroad.”

“The Pontifical and Royal University of Santo Tomas laments the order to stop ABS-CBN from continuing its broadcast operations, as it is a clear disservice to the Filipino people, in time of the pandemic, when information, delivered fast and wide, is key to saving lives,” UST’s statement read.

On the part of Far Eastern University, the school said the timing of the closure could not have come at the most inopportune of time, particularly how a large number of employees could lose their jobs.

“In the face of a public health crisis, the unemployment of the network’s employees aggravates their economic and health situations as well as those of their families. They need a government that understands their plight,” FEU’s statement read, referring to the 11,000 people that ABS-CBN employs.

It went on to urge the network to exhaust all legal actions to resolve its current predicament.

On Tuesday evening, ABS-CBN stopped operations of Channel 2, DZMM, MOR and other regional television and radio stations, in compliance with a National Telecommunications Commission (NTC) order.

The order was issued after the expiry of its legislative franchise on May 4.

As ABS-CBN shut its operations, S+A also ceased broadcast.

S+A has been home to the UAAP for 20 years. It also broadcast games of the National Collegiate Athletic Association, Premier Volleyball League and Maharlika Pilipinas Basketball League as well as events of ONE Championship, among others.

For now, ABS-CBN officials said not thing is definitive yet as far as their sports broadcast is concerned but that they are exploring their options. — Michael Angelo S. Murillo

UFC 249: Ferguson vs Gaethje to air on FOX Sports on Sunday

UFC 249, the return-to-action event by the Ultimate Fighting Championship after taking some time off because of the coronavirus disease 2019 (COVID-19) pandemic, will be aired over FOX Sports in the Philippines on Sunday, May 10.

Happening at the VyStar Veterans Memorial Arena in Jacksonville, Florida, UFC 249 will be headlined by the interim lightweight title clash between Tony Ferguson and Justin Gaethje. Co-headlining is the UFC bantamweight championship fight between reigning champion Henry Cejudo and challenger and former champ Dominick Cruz.

The event was originally set to take place on April 18 but was postponed because of COVID-19.

The Florida event will be one of the first to restart in the mainland United States, which is still in the thick of the fight against the highly contagious respiratory disease.

“I can’t wait to deliver some great fights for the fans,” UFC President Dana White said in a statement of their return. The UFC will follow the event up with two more cards on May 13 and May 16.

The UFC said the events will be closed to the public and will take place with only essential personnel in attendance.

Others in the main card of UFC 249 are heavyweight Francis Ngannou against Jairzinho Rozenstruik, featherweight Jeremy Stephens versus Calvin Kattar and heavyweight Greg Hardy vs. Yorgan de Castro.

Broadcast of the main card of UFC 249 begins at 10 a.m. — Michael Angelo S. Murillo with Reuters

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