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Peso gains as BSP boosts small banks’ liquidity

THE PESO appreciated against the greenback on Wednesday before the Holy Week break on the back of positive sentiment due to the central bank’s move to boost liquidity and amid lower coronavirus disease 2019 (COVID-19) infections in some countries.

The local unit ended trading at P50.585 per dollar on Wednesday, rising by 9.5 centavos from its P50.68 close on Tuesday, according to data from the Bankers Association of the Philippines.

The peso was also stronger by 29.5 centavos versus its P50.88 close last Wednesday and by 13.5 centavos from its Friday finish of P50.72 per dollar.

The currency opened Wednesday’s session at P50.60 per dollar. Its weakest showing was at P50.695 while its strongest was at P50.58 against the greenback.

Dollars traded increased to $521 million from $455.9 million on Tuesday.

A trader said the peso’s strength continued its recent trend of appreciation on the back of the Bangko Sentral ng Pilipinas’ (BSP) announcement of a cut in the minimum liquidity ratio for smaller banks.

“The strengthening was more of a continuation of the trend of peso’s strength. A little bit of risk on for us because there was a recent announcement for liquidity ratio cut for thrift banks so it’s a bit of easing so it’s a positive for peso,” the trader said in a phone call.

The BSP slashed the minimum liquidity ratio (MLR) requirement for smaller lenders to 16% from 20% until end-2020 to boost the war chests of thrift, rural and cooperative banks amid the extended lockdown in Luzon.

“The BSP recognizes that the COVID-19 outbreak and community quarantine implemented to combat the spread of the disease has elevated the liquidity risk exposures of banks arising primarily from higher demand for funds by depositors, borrowers or both,” BSP Governor Benjamin E. Diokno said in a memorandum dated April 7.

Earlier, the central bank cut universal and commercial banks’ reserve requirement ratio by 200 basis points to 12% effective on April 3.

Meanwhile, another trader attributed the peso’s gains to global optimism amid what seemed like a plateau in the number of infections in some virus hotspots, as well as some profit taking before the two-day break.

“The peso appreciated from prevailing market optimism that coronavirus-related cases are already plateauing in major global hotspots. There was also some cautious profit taking ahead of possible coronavirus developments during the Holy Week break,” the second trader said in an e-mail. — LWTN

Feeding the frontliners: ‘We do what we can and we do what we must’

In the days before the pandemic, Waya Araos-Wijangco’s restaurant, Gourmet Gypsy Art Cafe, specialized in eclectic global cuisine. The restaurant’s bohemian interiors served as a perfect backdrop to dates. Now, Gourmet Gypsy’s kitchens are working on something more urgent than promoting romance: they produce food for frontliners and communities affected by the pandemic.

BusinessWorld interviewed Ms. Araos-Wijangco via Zoom last week to talk about their efforts. Along with her team, Ms. Araos-Wijangco has elected to stay isolated inside the facility. Remarking that they were like soldiers assigned to barracks, she laughed with much-needed cheer and said, “Right now? Yes!”

Gourmet Gypsy’s staff gets chicken ready for 350 meals which will be delivered to hospital workers at the Lung Center, Heart Center, National Kidney and Transplant Institute, East Avenue Medical Center, and Quirino Memorial Medical Center.

All the efforts are concentrated in her allied vocational school, Open Hands, which has amenities and roomy quarters “that are socially distant from each other,” she pointed out. All the employees wear masks and gloves at all times. All the employees still continue to get compensation. “Ako lang ang volunteer!,” she laughs. Taking a serious tone, she noted, “They’re all breadwinners. We have to make sure that their families are fed too.”

The food and donations are picked up and delivered with a no-contact protocol. All these measures were taken to ensure that the meals they prepare will be safe from the virus. “Even before the lockdown started, we locked down our kitchen,” she said.

On April 1, 50 frontliners at the Cardinal Santos Hospital tucked into their lunch of daing na bangus and ginisang kalabasa, sitaw at malunggay. On the menu for breakfast on Palm Sunday were quesadillas and choriburgers. And sometimes frontliners are in for a sweet treat — frontliners at Lourdes Hospital received boxes of macarons this week.

Thousands of donated quail eggs.

“We make an effort to really make our meals as nutritious as possible. We try not to resort to shortcuts,” Ms. Araos-Wijangco said. “It’s really a challenge to do the menu planning,” she said, because they always have to work with whatever arrives at their doorstep. “You have to put together a meal that’s nutritious, does not spoil easily — right? And it has to be palatable and delicious.” 

Cash and in-kind donations are received by them through the help of organizations like Frontline Feeders Ph (under RockED) and Salamat PH Healthcare Heroes. “They’re the ones who look for donors, and then they send us money so that we can keep producing the food.” Sometimes, they receive donations from private individuals, especially donations in kind like rice and meat. Bigger organizations have also helped — on March 30, they received 1.7 tons of fruits and vegetables from the Pilipinas Shell Foundation, which had bought the produce from farmers in Rizal. Another time they received 6,000 quail eggs. Donors have sent herbs from their gardens. She noted that a donation of six tons of vegetables was due to arrive early this week. 

As of the time of writing, according to her, they have produced 15,000 meals for more than 20 hospitals. 

While a large part of their efforts go to medical frontliners, Ms. Araos-Wijangco makes sure that the food goes to where it is most needed. She cites, for example, that some prestigious hospitals will have a lot of people backing them up, while less-famous hospitals might have to do with less. “We keep a database of the hospitals, and who donates to the hospitals, so that no food is wasted,” she said. “We look for the hospitals who really need it, because they’re not known in circles of donors.” Some of the food also goes towards communities with feeding programs. “We’re facing the urgency of the needs of frontliners and the needs of communities. We need to make sure that people are fed… para hindi tayo magkaroon ng unrest (so we don’t have unrest).”

Ms. Araos-Wijangco, as a small business owner, acknowledges the challenges that will face her and other business owners once the quarantine is lifted. “We’re going to come back to a changed world,”  she said. “Of course, there’s constant worry about what we are going to do when this is all over, and we reopen. We need to lobby with the government for support of SMEs. When we go back, we’re going to be deep in debt.”

“I can’t really dwell on what to do about that yet. Baka maiiyak na ako (I might cry). We’re doing what we can, given our skills, given what we can do at the moment — this is the most urgent need, and so we address it.”

Asked for how long she can keep doing it, she said, “Well, as people keep supporting us, we’ll keep going. The need is there, and we have the capacity. We do what we can and we do what we must.”

According to Ms. Araos-Wijangco, donation details can be found and can be coursed through the Facebook pages of Frontline Feeders Philippines under RockED and Salamat PH Healthcare Heroes. 

The show goes online

A virus outbreak and enhanced community quarantine (ECQ) have inspired more creativity than hindered it. While the audience is temporarily avoiding going to the theater, new stories are going to them online instead.

The Philippine Educational Theater Association (PETA) launches Charot! The Unwanted Prequel today at noon on its official Facebook page. “Since the lockdown, we’ve been trying to keep our presence online through the Facebook page,” PETA’s artistic director Maribel Legarda told BusinessWorld in a video interview. “It’s our small contribution to this confinement that there is some kind of entertainment and educational activity,” she added. 

During the first week of quarantine, Charot! The Musical (2019)’s playwrights Michelle Ngu and J-mee Katanyag suggested coming up with a story where Charot’s characters find themselves in the current pandemic situation. 

The new story is set a month prior to the events in Charot! The Musical which was set in May 2020 and tackled moving towards a federal form of government. In Charot! The Unwanted Prequel, the country known as “P.I.” has been under the governance of Papsy for four years, and the nation is faced with dealing with the “Charona veerus.” 

The story will be told through a series of video episodes which will be uploaded on PETA’s Facebook page weekly.

Ms. Ngu said that the script draws its inspiration from current events, trending topics on social media, and citizens’ reactions to the news.

The first episode features how Nanay and Tita Mary Grace are coping with the enhanced community quarantine. The story focuses on the disparity between socioeconomic classes and how some sectors are left behind despite given solutions. 

Ms. Ngu said that the actors are given instructions on how to shoot scenes on their own based on the script. Their videos are then sent to an editor. 

“It’s interesting since we are being forced to reinvent theater in another way all of a sudden,” said Ms. Legarda, citing challenges on how theater adapts to digitalization. “It’s interesting to work in different spaces, but you’re still trying to create this piece together.” 

The second episode will feature a FAQs session about health and wellness with the Beki Cab Driver; while the theme for the third episode is still in the works. 

Ms. Legarda and Ms. Ngu hope that the platform “will be able to speak about current happenings,” and “inspire critical thinking and vigilance.” 

“Right now we have three episodes. Hindi pa namin alam if madadagdagan (We are not certain if more episodes will be added). I guess, we’re open to that,” Ms. Ngu said. 

ONLINE WORKSHOPS AND DONATIONS

Meanwhile, PETA’s Let’s Get Creative online workshops, moderated by the company’s actors and teachers, will resume on April 13. The workshops cover a variety of topics such as dance, music, acting, and crafts. The start of PETA’s summer Workshop Express classes have been pushed back from May 2 to June 7. 

Aside from creating online content, the theater company is also conducting two donation efforts. The first is for the distribution of rice to 300 families in Brgy. Kristong Hari, Quezon City, the barangay where PETA’s theater center is located. As of April 7, PETA was able to distribute P66,800 worth of rice. The second donation drive is meant for healthcare workers. PETA artists’ have come up with a collaborative version of  the song “Munting Parangap” from the musical Rak of Aegis, which was released together with a call for donations for medical equipment such as personal protective equipment which will go to the frontliners of the East Avenue Medical Center. 

To stream the show and for more information on donation efforts, visit https://www.facebook.com/PETATHEATER/. — Michelle Anne P. Soliman

Doing good: More helping hands

The government says that the best thing a civilian or non-frontliner can do to fight COVID-19 is to stay at home and wash your hands, but as the quarantine continues, there are those who feel that they can help the fight even from the sidelines. Here are more organizations who are supporting our frontliners.

LANDERS SUPERSTORE

Supermarket chain Landers, alongside Popeyes, Kuya J, 8990 Holdings Inc., Isla Sugbu Seafood City, and Majestic Restaurant, distributed 595 boxes of Landers Central pizza, 315 buckets of Popeyes Chicken, and 46 bags of groceries containing essential items like toiletries and snacks to 34 hospitals and six army checkpoints. 

“Each box of pizza and bag of groceries contain heartfelt messages of thanks and encouragement from the staff and members of Landers Superstore,” a company statement read.

Among those that received donations are the Philippine General Hospital, San Lazaro Hospital, Asian Hospital and Medical Center, The Medical City, St. Luke’s Medical Center QC and BGC, Cardinal Santos Medical Center, and East Avenue Medical Center, along with other hospitals in Cebu and Laguna.

Army checkpoints in Alabang and Susana Heights, among others, also received donations.

“The project aims to reach out to more hospitals and checkpoints in the next few days as we reach the critical stages of the enhanced community quarantine,” the company said.

ALLIANZ-PNB LIFE

Similarly, insurance company Allianz-PNB Life provided meals for the Lung Center of the Philippines and the company said in a statement that it will continue to do so for three more weeks.

“We are grateful for the dedication of our doctors, nurses, and service staff during these challenging times. We salute them for their hard work,” Alexander Grenz, Allianz-PNB Life CEO, said in a statement.

“The meals we are offering is Allianz’s small way of showing our gratitude. This initiative was also made possible with our partnership with Mr. Andreas Meneghetti, Managing Director of Boehringer Ingelheim Business Services Philippines, and our caterer, Roje Charesse Ortega of DJLH Lechon House,” he added.

THE ORIENTAL HOTELS AND RESORTS

Filipino hotel chain The Oriental Hotels and Resorts announced that it is offering free accommodations to medical frontliners. The group has hotels in Albay, Bataan, and Leyte.

“We have opened up all our hotels for free to all working medical frontliners, we have to protect them because they are our first line of defense. I hope other hotel owners will follow suit, the sooner we get all our acts together, the earlier this will all end and the sooner we can all get back to normalcy,” The Oriental Hotels and Resorts Group Chairman Wilbert  Lee said in a statement.

DLSU ENGINEERING

Faculty members of De La Salle University’s (DLSU) Gokongwei College of Engineering are developing face shields for hospitals and the Philippine National Police using 3D printing.

The university’s program is a response to the urgent request of De La Salle University Medical Center, Philippine General Hospital (PGH), and the PNP Explosive Ordnance Device/K9 (EOD/K9) Group for Personal Protective Equipment (PPEs).

The team’s face shield is based on universal specifications prescribed by medical practitioners, and the design is available online. 

Currently, the program has distributed 50 face shields for the DLSU Medical Center and 50 for PGH, and have also started giving out face shields for the PNP.

SECURITY BANK

Security Bank donated three negative pressure ambulances to the Philippine Red Cross to be used to transport suspected COVID-19 cases from their homes to medical facilities. The donation is said to be worth P11.4 million.

Negative pressure ambulances serve high-risk patients to protect patients and paramedics from cross-contaminating one another. To reduce the risk of cross-infection, the vehicles are equipped with tools to lower air pressure and disinfect and filter the air.

It’s still hard to predict who will die from COVID-19

In every epidemic, some die, others become ill and recover, and the luckiest live through infection without symptoms. In today’s pandemic, we are seeing this play out before our eyes. Although the initial epidemiological data show that COVID-19 is more severe in older people, men, and those with pre-existing conditions such as heart and lung disease, not everyone with severe disease has these risk factors. And not everyone at risk has the same symptoms, prognosis or outcome.

Why do people manifest such differences? And why is it not possible to predict an individual’s experience? To address this complex question, it is important to first get our terminology right. “Infection” means acquisition of the coronavirus after exposure to it. Infection is not synonymous with exposure — or with disease. Disease is a clinical state associated with cough, fever, and other symptoms that ranges from mild to severe. These symptoms arise from damage to tissues and the immune system. Death occurs when there is so much damage that the body cannot maintain blood oxygenation and other necessary functions.

In past epidemics, death and survival were attributed to providence or fortune. Modern medicine and science provide a better understanding of why infection can lead to such different outcomes. Among individuals in the same risk group — the same age, say — differences in infection outcome can result from five different variables outside their control.

The first of these is microbial dosage or inoculum, the number of viral particles that cause infection. Small numbers of viral particles are more likely to be contained effectively by the body’s defenses. Then, infection may cause no symptoms or only mild disease. In contrast, a large number of particles can lead to increased viral growth, overwhelming the immune system and causing more severe disease.

Genetics may also influence susceptibility to severe infection. Viruses often gain access to host cells via surface proteins, which vary in presence and nature from person to person. Someone with no such surface proteins may be resistant to infection. In the case of HIV, for example, some people lack the receptors needed for viral infection and are not susceptible to the virus.

A third variable that influences infection outcome is the route by which a virus enters the body. It’s possible that virus inhaled in the form of aerosolized droplets triggers different immune defenses than does virus acquired by touching contaminated surfaces and then touching one’s face. The nose and the lung differ in local defenses, so the route of infection could significantly affect the outcome.

The fourth variable is the strength of the coronavirus itself. Viruses differ in virulence — their capacity to damage host tissues or immunity — even when they are all the same species. This is why flu seasons vary in severity from year to year. The varieties of a virus such as coronavirus differ depending on small genetic characteristics and how these affect the interaction with human hosts. As the coronavirus spreads from person to person, it may undergo unique changes in its genetic structure that enhance or attenuate its capacity to do harm. Strains that are more virulent could lead to more severe disease.

Finally, people’s immune status — especially their history of prior infectious diseases — crucially determines how they respond to a new infection. The immune system remembers previous encounters with microbes, and that affects how it fights and responds to new ones. In the case of dengue, infection with one type of the virus can make the individual more susceptible to infection with a different type of the same virus. In other situations, a recent infection with a virus can affect susceptibility to an unrelated new infection. For example, having had the flu before coronavirus infection could change the course of COVID-19 disease in unpredictable ways. When a person’s immune system has no memory of an infectious agent, it may be unable to rapidly respond, and this may allow the invader to escape detection, giving it more time to cause damage.

Taken together, these variables create a complex picture. The amount of virus, our genes, the route of infection, the variety of the virus, and our immunological history combine to produce outcomes ranging from asymptomatic infection to death. And because these parameters can vary so much from infected person to infected person, it’s impossible to predict who will live and who will die. Therefore, despite accumulating evidence that most who acquire the coronavirus will not develop severe disease, the uncertainty of who is at grave risk enhances the pandemic’s terror.

In this regard, today’s situation is similar to past pandemics in which the matter of who would live and who would die was also mysterious — and led people to attribute outcomes to fortune or supernatural intervention. However, COVID-19 is different from the 1918 flu, in that today a robust scientific establishment can quickly analyze what’s happening and help figure out how best to prevent and treat infections. Science is humanity’s lifeline. In the days ahead, physicians, scientists, epidemiologists, and many more will work hard to understand individual susceptibility to coronavirus. The COVID-19 pandemic will teach us a great deal of new science that will make us better prepared for the next outbreak.

Preserving the fabric of the Philippine economy

The President just extended the Luzon-wide quarantine to April 30. This is necessary to protect public health. Now, social and economic policies must accompany it to ensure its sustainability.

Much of the public and private efforts thus far have been directed toward fortifying the fragile safety net that most vulnerable households rely on. To be sure, these initiatives are a first-order concern. But even as we attempt to save lives, we must also save livelihoods.

The enhanced community quarantine (ECQ) has made it impossible for many entrepreneurs to sustain their businesses and pay their workers. Yet there is little indication that adequate relief is forthcoming for micro-, small-, and medium-scale enterprises (MSMEs). There are 250,000 MSMEs in Metro Manila alone, and they generate close to 3 million jobs. These enterprises are responsible for the majority of the economy’s output. Without a plan to save them, millions of Filipinos will lose their livelihoods. With this job destruction will go business knowledge and processes that form the fabric of the Philippine economy.

On March 22, faculty members from the UP School of Economics and I released our plan (“A Social Protection and Economic Recovery Plan”) for how the government can contain the public health crisis while ensuring that there is still an economy to restart when we come out the other side.

A key component of the plan is for the government to provide financial assistance to businesses to preserve jobs.

Recently, the Department of Labor and Employment rolled out the COVID-19 Adjustment Measures Program (CAMP). Those who qualify for the P5,000 cash assistance are workers forced into flexible working arrangements and those who currently do not have work because of a temporary business closure. So far, 200,000 workers — of which 80,000 are in the informal sector — received direct financial aid totaling P622 million. More will certainly be required.

This will save many jobs, but not all. Businesses have non-payroll obligations, too, such as rent. What would be more effective is for the government to subsidize revenue losses proportional to how many workers are laid off. The subsidy can take the form of government-backed bank loans to facilitate the movement of cash into the hands of targeted businesses and their employees. The Bangko Sentral ng Pilipinas (BSP) can take on the default risk of these loans to encourage banks to lend money. After all, the BSP has already relaxed its capital adequacy requirements to encourage banks to part with their cash. In this sense, private financial institutions are merely serving as conduits for what is essentially government aid.

There are several advantages to this approach. One, it ensures business continuity: it will allow owners to pay their workers while also meeting their non-payroll obligations. Two, the administration will be borne by banks which are best-equipped to handle business loan applications. Three, the government will only have to deal with several hundred banks instead of up to a million MSMEs.

Over the weekend (April 4–5), the National Economic and Development Authority and the Department of Finance released a survey to seek input from consumers and businesses. This is laudable, but we did not need a survey to understand that the problem is a liquidity gap for both businesses and households.

Entrepreneurs have closed up shop and laid off workers even as the ECQ had just started. With the signing of the Bayanihan to Heal as One Act, the government took a step in the right direction. The scale of the powers given to the Chief Executive acknowledges the severity of the problem. But the government needs to act much faster than it already has at a scale that the unprecedented economic crisis demands.

 

Alfredo Paloyo is a Senior Lecturer in Economics at the University of Wollongong, Australia.

Twitter: @AlfredoPaloyo.

Messing with IP rules may affect COVID-19 response

With around a third of the world’s population in lockdown, humanity desperately needs new treatments to turn the tide against COVID-19. Our hopes depend on sensible coordination between the government and private sector. 

Government and the private sector have essential roles to play. With irreplaceable expertise in practical research, clinical trials, manufacturing and distribution, the private sector knows how to take treatments from lab to bedside.

Public sector leadership, meanwhile, can direct resources where they are most needed, clearing obstacles and coordinating efforts. 

Globally, researchers are racing to develop technologies to keep people out of intensive care and allow health systems to cope. Their tireless efforts fuel hopes of a treatment to ease the worst symptoms within weeks, and a vaccine within 18 months. 

The private sector is rising to this Herculean research and development effort. At least 20 companies are conducting clinical trials of potential treatments, with a further six racing to be the first to find a vaccine.

Many governments are working to quickly clear the approval path for desperately needed treatments. Brazil is removing regulatory bottlenecks by relying on approvals for medicines in other major markets. We hope other countries will follow.

Crucially, public health authorities are collecting data, sharing vital information, and directing treatments where they are most needed.

Public-private coordination will give us a fighting chance. 

But campaigning by health NGOs such as Médecins Sans Frontières and the UN-funded South Centre is pressuring governments into drastic action. They are calling for new legislation to pre-emptively confiscate the intellectual property (IP) of any coronavirus treatment yet to be invented, in the hope that treatment will be free for all.

This short-sightedness has struck already. Canada, Chile, Ecuador, and Israel have already moved to suspend IP rights such as patents for new COVID-19 treatments with others set to follow. The Philippines may follow. 

Crisis demands extraordinary efforts, but these populist proposals risk undermining the global system for developing and delivering urgent treatments.

For instance, drug makers must spend millions to ramp up manufacture for any new treatment. Yet this is fraught with commercial risk. Kenneth Kaitin, director of the Tufts Center for the study of drug development, says: “You don’t want to invest a lot in manufacturing before you know you are going to have a drug on the market. [Yet] you want to make sure you can manufacture as much as needed, perhaps hundreds of thousands of doses at the end of the day.” 

IP rights enable firms to mobilise the money for these massive manufacturing and supply chain investments and manage that risk. 

IP is also vital to turning a promising idea into a real treatment. Dr. Derrick Rossi is the founder of Moderna, a young biotech company that brought the first potential COVID-19 vaccine to clinical trials in record time. We asked him recently if the government could replace the private sector in bringing treatments to patients. His response: “not a chance.” 

Funding basic research is key, but just the start. “Academics are good at academia and fundamental science. They are not good at developing drugs for patients,” says Dr. Rossi. Nor do governments have the expertise, facilities, or resources to take a new treatment to market, and they usually cannot tolerate the risk of losing massive amounts of money on treatments that often don’t work out. 

The existence of IP rights has enabled a rapid response to COVID-19 by the private sector. Companies are looking afresh at old drugs in their patent portfolios that never made it. Others are investigating repurposing existing medicines for other diseases. Short term, they offer the best hope of an effective COVID-19 treatment. 

IP rights have not stood in the way so far. The UK will shortly make available millions of new antibody tests at minimal cost. Investigations continue into the usefulness of chloroquine, a malaria drug whose patent has long expired. A promising HIV drug has been licensed for global generic production by its US owner. And many of the other existing drugs that are being repurposed for COVID-19 are off-patent. 

The private sector is mobilizing not for their share prices, but because it’s the right thing to do. But removing IP rights will only inject uncertainty into an already difficult picture.

 Technology will play the key role in allowing us to get back to our normal lives. But globally, we need governments to lead and not get distracted by counterproductive ideas. 

Prof. Mark Schultz is the Goodyear Tire & Rubber Company Chair in Intellectual Property Law, University of Akron School of Law. Philip Stevens is Executive Director of the Geneva Network. 

How COVID-19 is shaking up the moral universe

The epidemic forces everyone to confront deep questions of human existence, questions so profound that they have previously been answered, in many different ways, by the greatest philosophers. It’s a test of where all humans stand.

The coronavirus pandemic is a test. It’s a test of medical capacity and political will. It’s a test of endurance and forbearance, for believers a test of religious faith. It’s a test, too, of a different kind of faith, in the strength of the ideas humans choose to help them form moral judgments and guide personal and social behavior.

The epidemic forces everyone to confront deep questions of human existence, questions so profound that they have previously been answered, in many different ways, by the greatest philosophers. It’s a test of where all humans stand.

What is right and what is wrong? What can individuals expect from society, and what can society expect of them? Should others make sacrifices for me, and vice versa? Is it just to set economic limits to fighting a deadly disease?

The lieutenant governor of Texas thinks that those over 70 “shouldn’t sacrifice the country” by shutting down economic activity, but should instead be ready to sacrifice themselves. A 22-year-old partying on Spring break in Florida becomes a social media sensation with a different critique of social distancing, saying, “If I get corona, I get corona.” Consciously or not, both men are placing themselves in distinct moral traditions.

Several philosophies of social justice have claimed wide adherence in the modern world. They do not line up neatly with party political labels, and most people have sympathy for more than one. Here is a guide to some of the leading idea systems undergirding competing conceptions of right and wrong. Each is being put to the test. As you are put to the test, which do you choose?

RAWLSIANS

Many westerners are Rawlsians without knowing it. Fifty years ago, the Harvard philosopher John Rawls tried to work out how people would construct their society if the choice had to be made behind what he called a “veil of ignorance” about whether they will be rich, poor, or somewhere in-between. Faced with the risk of being the worst off, Rawls posited, humans would not demand total equality, but would need to be assured of the trappings of a modern welfare state. The assurance of basic necessities and the opportunity to do better would form the foundation for social and political justice and provide the ability for people to assert themselves.

Rawls’s monumental 1971 book, A Theory of Justice, is now regarded as the clearest moral and intellectual justification for modern center-left mixed economies. But the idea comes from somewhere deeper. Rawls was not religious, but his philosophy is essentially in line with the golden rule handed down by the Old Testament prophets and by Jesus, that we should do as we would want to be done by. Some religious leaders have approached the awful dilemmas presented by the coronavirus just as Rawls would, by taking treatment of the worst off as the criterion for social action.

“I hope the lessons we take from our country’s experience with COVID-19 aren’t about food or avoiding the spread of germs,” wrote Russell Moore, the president of the Ethics and Religious Liberty Commission of the Southern Baptist Convention in the New York Times, “but about how we treat the most vulnerable among us. A pandemic is no time to turn our eyes away from the sanctity of human life.”

Pope Francis also invoked sympathy for the most afflicted as he addressed a prayer to an empty St. Peter’s Square. “We have realized that we are on the same boat, all of us fragile and disoriented, but at the same time important and needed, all of us called to row together, each of us in need of comforting the other,” he said.

Perhaps because of their religious resonance, Rawlsian ideas have guided the approach to the pandemic chosen by authorities in the western world. Societies are mobilizing, and governments are taking extra powers to mandate claustrophobic lockdowns in a bid to minimize the death and suffering of the weakest.

Even those who aren’t religious tend to accept the logic of the veil of ignorance. If a person is unwilling to be abandoned, governments are not entitled to give up on them; they must do their best to protect everyone, particularly the weakest.

UTILITARIANS

Other philosophies produce very different ways of dealing with the epidemic. Under utilitarianism, most associated with the 19th-century British philosopher John Stuart Mill, rulers must be guided to the total happiness, or “utility,” of all the people, and should aim to secure “the greatest good for the greatest number.”

In Victorian Britain, this was a radical creed, and the first utilitarians were passionate liberal reformers. But the utilitarian calculus opens up a new possibility — that in situations such as a pandemic, some people might justly be sacrificed for the greater good. It would benefit society to accept casualties, the argument goes, to minimize disruption.

Explicit utilitarian thinking still seems beyond the pale. When Britain’s Sunday Times reported that Dominic Cummings, chief adviser to Prime Minister Boris Johnson, had advocated in private meetings a policy of letting enough people get sick to establish nationwide “herd immunity, protect the economy, and if that means some pensioners die, too bad,” it caused an outcry and met with an immediate and impassioned denial by Downing Street. Even Cummings, an iconoclast, refused to be attached to such brutally utilitarian ideas.

Mill himself would not have advocated putting money ahead of people’s lives, but a utilitarian calculus is not about balancing money and life. If a recession could lead to shorter lives and widespread misery, it is possible that making less of an attempt to save every last life from the pandemic now could lead to greater total happiness.

In the UK, a paper by an academic at the University of Bristol used mathematical techniques developed to measure the cost-efficiency of safety measures in the nuclear power industry to calculate the likely savings of human life by different approaches to the virus, and found that a 12-month lockdown followed by vaccinations would be best. But it cautioned that this would only create a net saving of life if the reduction in gross domestic product could be kept to 6.4% or less.

That paper, broadcast on the BBC, provoked a fiery response from economists, and some research suggests counterintuitively that recessions lengthen lives. Most people find the mere attempt at such an exercise callous, but it’s difficult to dismiss it. Governments and insurers do indeed put a notional price on a human life when setting policy. Must every last patient be given the utmost care if this plan of action causes greater suffering in the long run? Or, as President Donald Trump put it: “We can’t have the cure be worse than the problem.”

It’s intuitive to view moral problems through a utilitarian lens and then to find outcomes like this distasteful, and to reject them because they conflict with the golden rule. If the lockdowns drag on for months, utilitarian ideas may bubble back to the surface.

LIBERTARIANS

The libertarian place in American thought is long and distinguished. Its lineage goes back at least to the Enlightenment philosopher John Locke and the founding fathers, and in its modern incarnation gains inspiration from the author Ayn Rand, who outlined her ideas in novels and essays. For her, man had a right “to live for himself” and an individual’s happiness “cannot be prescribed by another man or any number of other men.”

The most famous libertarian thought experiment was conducted by another Harvard philosopher, Robert Nozick, in a riposte to Rawls. He imagined what kind of political state would be built, and how much personal liberty citizens would surrender, if everyone were dropped into a utopian landscape with no social structures. The novelist William Golding gave one answer in The Lord of the Flies. To avoid the descent into violence that the schoolboys of Golding’s novel endure, Nozick, in Anarchy, State and Utopia, reckoned that people would set up a very limited state dedicated to self-defense and the protection of individual rights — but nothing more.

The western coronavirus response has hugely expanded state powers and limited individual rights with little debate, and to date populations have consented to privations that Rand and Nozick argued they should never accept.

But wait. There have been objections to lockdowns on the libertarian basis that they infringe on rights. Critiques are appearing saying that politicians haven’t proven that such drastic measures are necessary. Before the coronavirus, the US suffered a measles epidemic as the result of anti-vaccination activism, a libertarian cause that put parents’ right to choose not to vaccinate their children above the state’s attempt to defend other parents’ right to expect that their own children wouldn’t have to mix with unvaccinated peers. Panic buying, and hoarding of medical equipment also show that many people are following Rand’s idea of self-determination and putting themselves first. Such ideas may grow more appealing after a few more weeks of self-isolation.

In public spaces around the world, libertarians are in conflict with the state. Social media is full of images of big social gatherings, often in luxurious social settings. “If I get corona, I get corona,” as the 22-year-old said on video in Florida. “At the end of the day, I’m not gonna let it stop me from partying.” Oklahoma’s governor even felt the need to tweet that he was at a packed restaurant.

Libertarians are not only found on the political right. As the crisis began to unfold, the American Civil Liberties Union made a statement accepting that civil liberties must “sometimes” give way when it comes to fighting a communicable disease — but “only in ways that are scientifically justified.” It said, “The evidence is clear that travel bans and quarantines are not the solution.”

The right to walk in a park looks like a flash point. In March, New York Governor Andrew Cuomo was furious to see crowds expressing libertarian sympathies — whether they saw it that way or not — by gathering in parks. “It’s arrogant,” Governor Cuomo said. “It’s self-destructive. It’s disrespectful to other people. And it has to stop and it has to stop now!”

New Yorkers started organizing to keep the parks open.

In these conditions, individual choices become freighted with moral significance. How, for example, will society eventually judge behavior like that of Kentucky Senator Rand Paul? Arguably the most prominent libertarian in the US, he continued to socialize as normal for a week after being told that he had had contact with someone who tested positive for the coronavirus. He had no symptoms. Recall that there are many elderly members of the Senate. Then, after a workout in the Senate gym, he discovered that he had himself tested positive.

COMMUNITARIANS

Yet another approach is based on the notion that everyone derives their identity from the broader community. Individual rights count, but not more than community norms. These notions go back to the Greeks, but in modern times, the philosophy is most widely connected to the sociologist Amitai Etzioni and philosopher Michael Sandel. Sandel’s Liberalism and the Limits of Justice is another riposte to Rawls, arguing that justice cannot be determined in a vacuum or behind a veil of ignorance, but must be rooted in society. He sets out a theory of justice based on the common good.

Speaking to Thomas Friedman of the New York Times, Sandel said: “The common good is about how we live together in community. It’s about the ethical ideals we strive for together, the benefits and burdens we share, the sacrifices we make for one another. It’s about the lessons we learn from one another about how to live a good and decent life.”

The virus has attacked in exactly this place, depriving everyone of life in a community. And communitarian ideas are showing themselves. Across Europe, people on lockdown have arranged to go to their windows and balconies to applaud their national health services. These are seen as bedrocks of society. At London’s Olympic opening ceremony in 2012, a pageant of Britishness, the organizers celebrated the National Health Service with dancing nurses wheeling hospital beds. For many countries with a modern welfare state, celebrating and supporting the workers of their public-health service is seen as a communitarian duty.

This is a critical point of difference with the US, where the expansion of medical care is a hugely contentious issue. Communitarians like Princeton’s Michael Walzer argue that any system of medical provision requires “the constraint of the guild of physicians.” The coronavirus promises to bring this debate to a head.

Communitarianism also underlies much social conservative thought. When the very conservative Republican Texas Lieutenant Governor Dan Patrick said on Fox News that the rest of the country should not sacrifice itself for the elderly, he was making a communitarian argument, not a utilitarian one.

“No one reached out to me and said, ‘As a senior citizen, are you willing to take a chance on your survival in exchange for keeping the America that all America loves for your children and grandchildren?’” Patrick, who is 63, told the host Tucker Carlson. “And if that’s the exchange, I’m all in.”

In this telling, it is the patriotic duty of the elderly not to force privations on their country, and make life worse for their grandchildren. Such a communitarian ethic has always resonated within the US (just read Alexis de Tocqueville), and it provoked an outcry on social media.

China practiced another kind of communitarianism after the coronavirus first appeared in Wuhan in January. The people of that city were told to lock themselves in, and often forcibly quarantined, for the good of the community and the state, largely identified with the Communist Party. Under Xi Jinping, the Party has rehabilitated the Confucian thought that long justified obedience to a hierarchical and authoritarian but benevolent state. That the notion of social solidarity remains strong showed in the spectacular discipline with which China and other Asian nations dealt with the problem.

‘WE ARE ALL RAWLSIANS NOW’

For now, the approach being adopted across the West is Rawlsian. Politicians are working on the assumption that they have a duty to protect everyone as they themselves would wish to be protected, while people are also applying the golden rule as they decide that they should self-isolate for the sake of others. We are all Rawlsians now.

How long will we stay that way? All the other theories of justice have an appeal, and may test the resolve to follow the golden rule. But I suspect that Rawls and the golden rule will win out. That is partly because religion — even if it is in decline in the West — has hard-wired it into our consciousness. And as the epidemic grows worse and brings the disease within fewer degrees of separation for everyone, we may well find that the notion of loving thy neighbor as thyself becomes far more potent.

DICT warns vs security risks of using video, teleconferencing applications

THE DEPARTMENT of Information and Communications Technology (DICT) reminded the public to take measures to be safe in using video and teleconferencing applications amid security issues that have emerged recently.

“Video and Teleconferencing software and tools are now being widely used by millions of Filipinos for work, as the enhanced community quarantine is imposed by the Philippine Government,” the DICT said in an advisory on Tuesday.

“However, a number of security issues have recently surfaced for certain Video and Teleconferencing Applications, including allegations regarding the activation of the device’s video camera without the user knowing,” it added.

The department’s cybersecurity bureau, for its part, urged users to “take appropriate steps to be more cybersafe and secure” in using such applications.

It said a user can set up his meeting as private, and he should not share or announce his meeting ID number on social media or messaging platforms. He can also secure his meetings with passwords.

The host should also be notified when people join, and he should carefully inspect the list of participants periodically.

Other suggestions are to carefully control screen sharing and recording; keep camera and mic turned off unless needed; and be aware of everything that’s within view of the camera.

The DICT also advised users to install firewall software from trusted firewall security companies and free browser extensions that block tracking activities of applications such as Chrome’s AdBlock Plus and Firefox Ad Hacker.

“When not in use, cover your webcam as some hackers have the capability to turn it on without you knowing,” the department added. — A.L. Balinbin

Free access to e-learning tools offered

SECURITY BANK Corp. has partnered with Singapore-based e-learning platform 88Tuition to provide free access to its learning programs until June 30 for Filipino students who are not able to attend school due to the enhanced community quarantine.

“We wanted to support our employees and clients whose children’s learning environment had been disrupted. This is our way of supporting them while keeping them safe,” Security Bank told BusinessWorld in an e-mail interview.

“88Tuition is a reputable partner and has captured the Singapore market… The curriculum content is parallel with that of our local curriculum. 88Tuition has carefully selected the instructors. They are some of the best teachers in Singapore,” the company said.

Since announcing the program a few days ago, Security Bank reported they had “close to 300 sign-ups” in three days.

The free access allows families and their children “personalized home-based education” via 88Tuition’s content library with subjects including Science, Math, English, and Chinese suitable for students from Grade 1 to Grade 10.

“[The learning] videos [are] created by some of the best teachers in Singapore, that will help them continue and enrich their learning during this period of interruption in their regular classes. It simulates a normal class routine and provides homework through an easy dashboard that parents can access,” Security Bank said in a statement.

Security Bank is also reviewing “other ways to partner” with 88Tuition once the quarantine ends. Singaporean multinational bank, DBS, is currently a partner of 88Tuition and offers discounted rates for its members.
To sign-up for the free e-learning program and for more information, visit https://www.88tuition.com/securitybank. — ZBC

Import incentives under the Bayanihan Act

Like many countries, the coronavirus disease 2019 (COVID-19) pandemic has placed most of the cities and provinces in the Philippines under quarantine to restrict the movement of people. While quarantine is being enforced to contain the spread of the disease, it also limits the movement of essential workers and slows down the flow of critical goods needed to address the situation.

To tackle the crisis, Republic Act no. 11469 or the Bayanihan to Heal As One Act was passed, declaring a state of public health emergency throughout the country. Among its key provisions are tax exemptions for importation of health care equipment and supplies; and adopting measures that minimize the disruption of supply chains to ensure the availability of essential goods.

Easing taxes and permits

The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) issued their respective guidelines on exemptions from customs duties, VAT, and excise tax, as applicable, of imported supplies and equipment. Both Revenue Regulations (RR) 6-2020 and Customs Administrative Order (CAO) 7-2020 are effective during the three-month implementation of the RA, which may be extended by Congress.

Both regulations release importers from tax liabilities when importing goods such as personal protective equipment (PPE) like gloves, gowns, masks, goggles, face shields, surgical equipment and supplies; laboratory equipment and its reagents and maintenance; medical equipment and devices; consumables such as alcohol, sanitizers, tissue, thermometers, hand soap, detergent, sodium hypochlorite, cleaning materials, povidone iodine; common medicines in tablet and suspension form like paracetamol, mefenamic acid, vitamins, hyoscine, oral hydration solution and cetirizine; and COVID-19 testing kits and others identified by the Department of Health. The exemption applies whether the goods are imported for donation or commercial purposes.

In addition, manufacturers of health-related equipment and supplies are given the same tax and duty exemption on imported materials used for production, provided that the company is registered with any government incentive promotion agencies or included in the master list of the Department of Trade and Industry (DTI).

RR 6-2020 further exempts imported donated goods intended for the national government or its agencies from donor’s tax and relaxes the requirements for a permit called Authority to Release Imported Goods (ATRIG) to facilitate fast clearance of goods from customs.

As stipulated in CAO 7-2020, the tax and duty exemptions can be availed of by securing the appropriate endorsement from the Department of Finance (DoF). Given that the DoF endorsement will take time to secure, the BoC is allowing the filing of a Provisional Goods Declaration (PGD) to immediately clear goods while the exemption endorsement is in process. The importer is required to submit the endorsement after the quarantine period.

The BoC also waived its requirement to present a certificate of product registration (CPR) from the Food and Drugs Authority (FDA) prior to the clearance of regulated products. Effectively, shipments containing donations of PPEs, ventilators, respirators and its accessories for treatment of COVID-19 patients, and face mask importation of private companies for their own use will be cleared by the BoC without a CPR.

The same applies for commercial importation of medical equipment and supplies, except that the importer will have to produce a license to operate (LTO) from the FDA and proof of pending application for CPR. Importers of ventilators, respirators, and their respective accessories for commercial purposes will only need to provide a copy of their LTO.

Expediting clearance and movement of containers

Another memorandum was jointly signed by the secretaries of the DoF, the Department of Agriculture (DA), and the DTI on April 2 to facilitate the immediate customs clearance and improve the flow of containerized cargoes of essential goods. Joint Administrative Order (JAO) 20-01 was immediately made effective to prioritize the clearance and movement of shipments containing food, medicine, and medical and basic goods.

Since food and medical supplies are regulated, the agencies under the DA and the FDA cut the processing time of applications for import permits to three working days to reduce the time spent in the preparation of documents for customs clearance.

The BoC also reduced its clearance processing time to effect immediate release containers from port terminals. To do this, importers must file goods declarations to the BoC within two days from the arrival of goods. For imported goods enclosed in a refrigerated container, the declaration can be filed prior to its arrival. In return, the BoC will complete its assessment within 24 hours. The importer is expected to pay import taxes within 24 hours from the issuance of the BoC’s tax assessment. After the payment of taxes, importers have three days to claim the goods from customs warehouses or container terminal yards.

It appears that the government has rolled out policies to ensure that the people will be provided with what they need at this time. COVID-19 shall pass. After this trying time, perhaps we will come out from isolation as better people with better systems in place.

 

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers WMS Pte. Ltd. — Philippine Branch. The content is for general information purposes only, and should not be used as a substitute for specific advice.

Luningning M. Pizarra is a Manager at the Worldtrade Management Services of PricewaterhouseCoopers WMS Pte. Ltd. — Philippine Branch.
+63 (2) 459 2005
luningning.m.pizarra@pwc.com

First Shoshin builds JoJoCare telehealth app for online care services

The whole country is met by unprecedented events due to the COVID-19 crisis which has drastically changed the way we go about our daily lives. Among these changes: How do you consult doctors about your health concerns without violating quarantine protocols and without exposing yourself to the risk of getting infected if you do get a chance to go out?

This is the driving force behind First Shoshin Holdings’ (FSH) $1M investment into JoJoCare, a new venture under the JoJo brand described as a holistic self-care app that helps grant people access a diverse selection of healthcare and wellness professionals without leaving their home.

Coping with the COVID-19 crisis through digital means

Just as people have begun to shift towards tools like Zoom to keep in touch with coworkers and loved ones, JoJoCare is a platform where clients and professionals can stay connected through online conferences for easier (and safer) access to care that otherwise would be difficult to obtain. FSH sees this extending well beyond the current crisis, reshaping how people interact with healthcare providers forever.

Delivering care through telehealth, JoJoCare’s mission is two-fold:

  • to help field experts gain additional revenue stream by offering an innovative cost-effective avenue for their services,
  • and to help people easily talk to field experts for medical advice or other services within the comforts of their home.

Available 24/7, the JoJoCare platform allows users to book their virtual medical, legal, education, and general wellness appointments anytime which can be arranged via chat, audio, or video call. Streamlining the experience, users can also pay for these services online through online bank transfers or through the company’s proprietary payment gateway JoJoPay. JoJoCare has partnered with 20 general practitioners for its soft launch scheduled by the end of April, and will offer a number of free sessions to alleviate the impact of the pandemic.

“At First Shoshin, we advocate innovation that solves real-world problems and this venture into health technology is an exciting step for us,” said JoJoCare Chairperson Sally Ponce-Enrile. “We believe the future of healthcare is inseparable from telehealth.”

Ponce-Enrile says JoJoCare is modernizing telehealth by providing integrated services within the health and wellness industry under one platform as opposed to the fragmented apps available in the market. “JoJoCare maximizes access to a range of healthcare services not limited to medical. We want people to be able to virtually visit doctors, lawyers, educators, fitness experts, and other practitioners all in one place. This will also help rural communities that lack the healthcare infrastructure to access services that would otherwise be unavailable,” she said.

If you’re a licensed professional interested in joining the network of JoJoCare experts, you can get in touch with the JoJoCare team at hello@myjojo.com.