Facebook Instagram Linkedin X Youtube
Home Blog Page 8856

Law office, tour operator probed for Wirecard

GOVERNMENT agents are investigating a law office and tour operator for alleged links to German payment company Wirecard AG, whose collapse had been blamed on mismanagement, according to the Justice department.

The National Bureau of Investigation (NBI) and Anti-Money Laundering Council have been looking at the financial transactions of the law office and tour operator, Justice Secretary Menardo I. Guevarra told reporters in a Viber group message on Sunday.

He said state agents have submitted three reports on Wirecard, whose missing 1.9 billion euros ($2.1 billion) was supposedly placed in two Philippine banks. The Philippine central bank had said the money had not entered the country’s financial system.

“We hope to finish the investigation before the year ends,” Mr. Guevarra said.

The Justice department earlier suspended three Immigration officers for tampering with the travel records of Jan Marsalek, a dismissed board member and former chief operating officer at Wirecard.

Two of the three officers had been assigned at Mactan-Cebu international Airport, while the other was at the main office in Manila.

It was reported earlier that Mr. Marsalek arrived in Cebu in June and left for China the next day based on Immigration records.

But Mr. Guevarra in July said Mr. Marsalek did not arrive in the country based on CCTV footage, airline manifests and other records. He also did not leave the Philippines for China. — Vann Marlo M. Villegas

Nationwide round-up (11/08/20)

PHILSTAR/MICHAEL VARCAS

Groups call on gov’t to drop Smartmatic system for 2022 elections

CIVIL society and church organizations have jointly called on the government to stop using the current automated election system of Smartmatic, citing problems in past polls “that far outweighed the benefits.” The statement issued over the weekend was signed by the Brotherhood of Christian Businessmen and Professionals, Businessmen and Professionals for Good Governance, Christian Family Movement of the Philippines, Inc., Filipino American Human Rights Alliance Kontra Daya, National Citizens’ Movement for Free Elections, and the National Council of Churches in the Philippines, among others. It asks the Commission on Elections (Comelec) to terminate its contracts with Smartmatic and uphold a more transparent election process. “The decision to shift to an electronic voting system in 2010 which would provide a faster count and results transmission was good, but through the years, there have been many problems with the system that far outweighed the benefits and eroded the people’s trust in the automated electoral process, casting doubts on the results of each election,” the groups said in a statement over the weekend. They also urged Congress to pass a law mandating Comelec to adopt an alternative automated election system (AES). “We the people agree and would rather have an alternative AES that is more transparent and Filipino-made that ensures sovereignty of our election process. We appeal to President (Rodrigo R.) Duterte, Congress, and the Comelec, to ensure that the 2022 national elections are fair, accurate and transparent, and will truly reflect the people’s will,” they said. — Kyle Aristophere T. Atienza

Immigration bureau on higher alert for trafficking as foreign travel rules eased

IMMIGRATION officers at airports have again been directed to be extra alert for human trafficking activities after the government eased restrictions for travel abroad. Commissioner Jaime H. Morente said trafficking syndicates are likely to resume attempts to send Filipinos abroad for illegal employment “in the guise of being tourists.” “We will not allow them to board their flights and they will be sent home,” Mr. Morente said in a statement. The Bureau of Immigration said more than 300 Filipinos have been referred so far this year to the Inter-Agency Council Against Trafficking and the Philippine Overseas Employment Administration for being possible victims of human trafficking or illegal recruitment. Non-essential foreign travel was banned during the strict lockdown beginning mid-March, and was lifted October 21. — Vann Marlo M. Villegas

Regional Updates (11/08/20)

DENR forms team to probe quarrying around Mayon Volcano

ENVIRONMENT Secretary Roy A. Cimatu has formed a composite team that will investigate quarrying operations around Mayon Volcano, and establish if these were the culprit for the lahar flow that killed at least six residents at the height of typhoon Rolly last week. Mr. Cimatu said the team, to be led by his department, is composed of officials from the Mines and Geosciences Bureau (MGB), Environmental Management Bureau, and the local government. Around 12 quarrying operations have been suspended near the volcano in the typhoon’s aftermath. Mr. Cimatu said the probe will mainly focus on the 12 quarrying sites, but all other operations within the vicinity of Mayon Volcano will also be checked. “The concentration of the investigation is the culpability of these 12 quarrying sites which operate at the same river that there were casualties,” he said. If cleared, the quarry operators will be allowed to resume.

LOCAL REGULATION
Mr. Cimatu also explained that quarrying operations are primarily under the monitoring of provincial or city regulatory mining board (PCRMB) as provided under Department of Environment and Natural Resources (DENR) administrative order No. 2010-21. PCRMBs are tasked to check and approve the mining permit applications of quarry, sand and gravel, guano, gemstone gathering, and small-scale mining operations. “All quarrying in the provinces is being managed by the regulatory board there composed of DENR, local government unit, and other agencies of government in one province.  The chairman of that is the regional director of MGB and the vice-chairman is the governor,” Mr. Cimatu said. Industry groups and non-government organizations are represented in the board. At the same time, he added, the provincial governor also has authority to issue permits for quarrying in accordance with Republic Act No. 7160 or the Local Government Code. — Revin Mikhael D. Ochave

Tropical depression Tonyo moves out as another LPA under monitoring

WIND and rain warning signals related to tropical depression Tonyo, which reached just level 1, were lifted as of 5 p.m. Sunday as the weather disturbance moved out towards the West Philippine Sea. Tonyo, the 20th storm to enter the country this year, was located 185 kilometers west of Calapan City, Oriental Mindoro as of 4 p.m. Sunday and expected to be out of the Philippine area by Monday morning. It is forecasted to intensify into a tropical storm on its way out. Meanwhile, weather bureau PAGASA is monitoring a low pressure area (LPA) spotted 920 kilometers east of Hinatuan, Surigao del Sur as of 1 p.m. It will be named Ulysses if it develops into a tropical depression. PAGASA Weather Specialist Chris Perez, in a briefing Sunday afternoon, said the LPA may pass through the southern and central Luzon areas within the next two to three days.

A narrow but clear victory

The American people have chosen change. Joe Biden is their President-elect, having obtained more than the 270 electoral college votes needed to win. With respect to the popular vote, with 93% of votes already counted, President-elect Biden leads by close to four million votes.

It is a sufficient margin that should put to rest any doubt on the Biden victory. It is convincing. But that winning margin is actually narrow. In terms of vote percentage, Biden leads Donald Trump by less than three points (though this can increase once the final count is done).

In the swing states, the margin for Biden is razor thin. (These states determine the final election outcome, for voters in these places tend to swing back and forth between Democrats and Republicans.) Biden’s winning margin in Pennsylvania and Wisconsin (part of the “blue wall” since voters in these states lean towards the Democrats) is less than a percentage point (pp).  In Pennsylvania, he leads by 0.55 pp; in Wisconsin, by 0.62 pp.  In other battleground states, Biden leads in Georgia by 0.18 pp and in Arizona by 0.56 pp.

The tight race surprises many. After all, the pre-election surveys, including the forecast of FiveThirtyEight, which consolidates and weighs polling data, showed that Biden would defeat Trump in the national polls by more than eight points.

Anyhow, a win is a win. A hard-fought win is sweet for Biden and the Democrats. Obviously, the loss is most bitter for Trump.

Nevertheless, what could have explained the narrower margin, the polling error?

To answer that question, an article — actually an interview — done by Zack Stanton, the Politico Magazine digital editor, is a must read. It is titled “‘People are going to be shocked’: Return of the ‘shy’ Trump voter?” (politico.com, Oct. 29, 2020).

The interviewees, Dutch economist Arie Kapteyn of the University of Southern California Dornsife Center for Economic and Social Research and pollster Robert Cahaly of the opinion polling Trafalgar Group expressed their skepticism over the pre-election surveys that predicted a big Biden victory. Working independently from each other, they concluded that the majority of the surveys underestimated support for Trump. Their separate forecasts in 2016 went against the tide as they predicted a Trump victory over Clinton.

The interviewees offered unique insights into survey techniques and questions and respondents’ behavior. For example, to uncover the real but hidden opinion of a respondent, one must find ways to reduce the “social desirability” bias.

To quote, Kapteyn, “We actually get a 10-point lead, nationally, for Biden over Trump…. But if you look at the ‘social circle’ question, Biden only gets like a 5- or 6-point lead…. In general — and certainly on the phone — people may still be a little hesitant to say… that they’re Trump voters.”

The learning here is how a survey can correct for biases that affect either candidate. In other words, a survey that addresses the social desirability bias will capture the latent preferences for both Biden and Trump. Instead of just asking the question whether voters are for Biden or Trump, the pollster should also ask a “social circle” question like: “Who do you think your friends and neighbors will vote for?” In this manner, says Kapteyn, “it is easier for people to share their true opinions without fear of being judged for their views.”

Correcting the social desirability bias does not necessarily favor one candidate. As Kapteyn said, there is symmetry in the shyness.

Cahaly has a different view on the shy voter, but it also makes sense. Asked if he thinks there are shy Biden voters, he answered: “No. And not because it’s just for Republicans. For example, had Bernie Sanders been the nominee and been beat up every day as being socialist, there would be a tremendous ‘shy’ vote among moderate-to-conservative Democrats who would vote for him as their nominee, but those who may not want to tell people.”

Whether the pre-election surveys made a correct prediction is no longer the issue. Nonetheless, Kapteyn got it right that Biden’s lead would be narrower than what the polls predicted. (The final outcome will probably be tighter than Kapteyn’s forecast.) The margins in the battleground states are tiny, contrary to the forecast of most poll surveys. Take Wisconsin, Biden won by less than a percentage point even though the ABC-Washington Post’s forecast was a 17-point margin for Biden. In Pennsylvania, Biden has won by a hairline — less than a percentage point. The conventional pollsters underestimated the count for Trump. So we should listen to Kapteyn and Cahaly to get insights or lessons from their survey design and method.

The most important lesson from Kapteyn and Cahaly is about correcting the social desirability bias. But they offer other valuable insights as well: having a shortened questionnaire; reducing dependence on phone surveys, thus protecting anonymity; using other platforms like text, e-mail, and online; and increasing the sample size.

The final outcome is nevertheless clear. The Biden victory is not a landslide, but it is convincing and credible. The US election outcome is a rejection of the Trump administration that has destroyed the rule of law, reason, science, and truth; an administration that has fomented hatred and division, inequality, misogyny, and racism.

Yet, the struggle for change is far from over. That Trump’s loss was narrow, that he obtained votes much bigger than what he received when he won in 2016, that he has not conceded all forebode continuing polarization.

God bless America.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

Good news, lingering doubts

 

I am pleased to share with readers our Oct. 27, 2020 post to subscribers of GlobalSource Partners (globalsourcepartners.com), a New York-based network of independent emerging markets analysts. Christine Tang and I are their Philippine Advisors.

Amidst a succession of GDP growth downgrades, most recently by the IMF, we are watching three developments this month that signal better prospects heading into 2021.

1. Remittances have surprised on the upside. Monies sent home have expectedly declined but not as much as anticipated. After plummeting by double digits in April and May year on year, the inflows rebounded in June and July, each by nearly 8%, then slipped again in August but only by 4%. For the six-month period since the pandemic started (from March to August), remittances fell moderately by 5% year on year, bringing the year to August decline to only 2.6%. This is good news considering that in our last outlook report, we were expecting a 7% contraction for the year. (The ADB and the World Bank forecast double digit drops in remittance inflows earlier in the year.)

What appears to be driving the stronger than expected remittances are inflows from countries that have large Filipino migrant populations (US and Canada) where the respective governments have also provided generous fiscal support, including wage subsidies (e.g., US, Singapore), and/or have managed the outbreak relatively better (e.g., east Asian economies). Too, despite the bust in cruise tourism, remittances from seafarers have also performed better that expected due to improved trade volumes in 3Q.

Nevertheless, there are still significant downside risks moving forward with several host countries facing a resurgence of COVID-19 (including the US and in Europe) that risks keeping unemployment high for longer, and the prospect of continuing low oil prices weighing down oil exporting economies, particularly in the Middle East which host many overseas Filipino workers.

At the same time, remittances may come under renewed pressure as fiscal packages are downsized or withdrawn following sharp increases in public debts, more businesses closing shop especially in the service sector where many overseas Filipino workers, and possible waning of momentum in global trade amidst continuing geopolitical uncertainties. Moreover, despite better than expected dollar remittances, the peso’s over 4% appreciation so far this year reduces the support to domestic consumption.

2. After a dramatic speakership fight at the House of Representatives early this month that provoked a televised presidential rebuke and necessitated the calling of a special session of Congress to pass the 2021 national budget, the Lower House under a new leadership quickly approved the spending bill that is expected to be sent to the Senate today. Considering the President’s certification of the bill as urgent for the government’s continuing struggle against COVID-19, expectations are that a new appropriations law will be ready by the start of next year.

Yet, while the P4.5-trillion (22% of GDP) budget, which is 10% above this year’s approved budget (excluding supplemental funds under the Bayanihan Act), appears on paper to be responsive to the COVID-19 crisis (with proposed spending priorities for health, infrastructure development, and post-pandemic adaptation), a lingering question is how well the executive can implement the plans and programs. Reports indicate failures at the height of the pandemic to distribute allocated social amelioration funds both fully and in a timely way. Also, out of the P140-billion supplemental budget approved in September, the budget department reported that releases have only totaled P4.4 billion with P46.2 billion pending approval of the Office of the President and the remaining P89.4 billion still awaiting requests from the concerned departments. Given fiscal authorities’ relatively conservative stance in the fight against COVID-19, underspending a limited budget would be tragic especially in the face of the pandemic’s disproportionate impact on lower income groups.

3.  Now into the eighth month of varying lockdown stringency, the Philippine government is finally attempting in earnest to open the economy. After flip-flopping last month, it has proceeded to reduce distancing protocols for public transport to maximize the share of the economy allowed to open under the latest guidelines (about 65% per the planning secretary vs. only 50% effectively if those who are allowed to work have no means of getting to work). It has also allowed more age groups to leave homes, reduced curfew hours, and eased tourism restrictions including allowing outbound travel and local hotels to operate at 100% capacity. The decision resulted from a full cabinet meeting early this month and was taken subject to the conditions that everyone observes the minimum health standards and that hospital capacity remains below the 70% threshold (the latest occupancy rate is 52% in Metro Manila).

The move to open up the economy is being done at a time when there appears to be some plateauing of the COVID-19 infection curve, with the doubling time lengthening since late August and the reproduction number falling below 1. The caveat however is that since Oct 16, testing has dropped significantly as the Philippine Red Cross (PRC) stopped accepting the state insurance agency’s credit for non-payment of about P1 billion in arrears. Prior to the suspension, the PRC was conducting about a third of the 30,000 tests done on average per day. Too, challenges remain in isolating individuals who have tested positive for the coronavirus as well as in contact tracing, critical functions for successfully suppressing the virus per the experience of other countries. Hence, while it is good news that the government has finally taken the tough decision to “dance” with COVID-19, diligently planning the steps for opening the economy while managing health risks, many harbor lingering concerns about implementation, the Philippine’s Achilles heel. 

 

Romeo L. Bernardo was finance undersecretary during the Cory Aquino and Fidel Ramos administrations.

romeo.lopez.bernardo@gmail.com

Lessons from an election

“STOP THE COUNTING!” Donald Trump said in all-caps in his Twitter account.

He had been ranting and raving since the Nov. 3 US elections to stop the counting of the votes and just the day after, unilaterally declared himself the winner for a second term as POTUS — President of the United States of America.

SCOTUS (the Supreme Court of the US) will hear of this, he said in a tantrum, as he threatened to file cases of election fraud. The Republican machinery refined Trump’s blind fury, filing legal charges instead in the proper venues of the state courts concerned: to stop ballot counting in Michigan and Pennsylvania, to recount in Wisconsin, and to prevent the counting of absentee ballots in Georgia that it claims arrived after an Election Day deadline.

Nevertheless, the counting continued. “The Supreme Court is more tolerant of state courts’ interpreting their own election laws rather than federal courts,” professors at the Boston University (BU) School of Law said on BU Today. Besides, “none of the votes being counted right now are affected by the lawsuit(s),” the legal experts said. “Count every vote,” the Democrats insisted.

After three tense days of counting after election day, Democratic presidential candidate Joe Biden was just six Electoral College votes shy of the necessary 270 Electoral Votes to be elected president. On the weekend, 504 out of 538 electoral college votes had been called, and Biden won Nevada, Wisconsin, Michigan and Arizona, getting a clear win of 290 electoral votes versus Trump’s 214 which included Florida, Texas, Ohio, and Iowa.

Yet it was not all about Trump or Biden. It was about testing democracy in a government of the people, by the people and for the people. For fraud and manipulation of an election disenfranchises all voter-groups by self-serving individuals grabbing the power of choice, the right of the collective majority to make it happen. And for fraud to be insinuated as having been done by the voters themselves would be an unforgivable affront to American integrity, character, and values — even as freedom of expression and belief are sacrosanct in a democracy.

The American people drafted a Constitution, now over two centuries old, to embody the democratic principles to govern themselves and live their lives in peace and prosperity. The first 10 amendments are known collectively as the Bill of Rights. Since the Constitution was put into operation on March 4, 1789, only 33 amendments have been proposed by the United States Congress and sent to the states for ratification, 27 of these having been ratified by the requisite number of states, and are part of the Constitution (reference: footnoted WikiSource listings).

The Separation of Powers, a political doctrine embedded in the US Constitution, imposes a strict system of checks and balances among the Executive, Legislative, and Judicial bodies in government to ensure that individual rights are protected under the indispensable rule of law. In the 2020 presidential elections, held in the extremely restrictive COVID-19 pandemic, rights under the Constitution were uncurtailed, and the American people chose their leaders, despite the temerity of a tough-guy President to try and “Stop the counting.”

The Associated Press reported that 18 Senate seats were won by the Republicans in the November 2020 elections, bringing the total number of Republican Senators to 48. Democrats have 14 new seats, bringing the total number of Democratic Senators up to 46. Other parties have two seats. Counting the incumbent (not covered by these elections) 30 Republican Senators and 33 Democrats, there will be a tenuous division in the Senate, with 51 votes needed for a majority.

In the wholly newly elected House of Congress, the Democrats now have 214 seats (close to the 50% +1 majority) compared with the Republicans’ 196 seats.

Partisanship will not be imputed on the Judicial branch of the government. But as of Nov. 4, 2020, the United States Senate has confirmed 220 Article III judges nominated by Trump, including three associate justices of the Supreme Court of the United States, 53 judges for the United States courts of appeals, 162 judges for the United States district courts, and two judges for the United States Court of International Trade (from US Judiciary listing).

It seems so neatly set up for the rights and freedoms in a democracy, like the world model for all democracies as America is. But history and culture come to bear on the smooth execution and management of a people’s democracy. America, a “Nation of Immigrants” as it is called, was an instant democracy, with its people precisely “escaping” from the tyrannies of autocratic rule in the countries they originally came from. As a test of fire of their firm belief in the equality of persons and peoples, America emancipated the slaves. The 13th Amendment (of Article IV, Section 2) of the US Constitution, passed by the US Congress on Jan. 31, 1865, and ratified Dec. 6, 1865, abolished slavery in America and stressed that all men are equal.

So much for democracy in America. But can the same level of refinement of what can be called a democracy be replicated or at least worked up to, in a small developing country like the Philippines, with its US-style government born just after the Second World War? Have 300 years of colonization by Spain and 50 years under America affected the Filipino psyche such that hierarchical systems and feudal authority figures have diverted the necessary tunnel vision for rights and freedoms — in this high-gear global competition for power and influence?

The recent US elections, when a strong-man President dared to test his power and influence above all, have been closely watched by the Filipino people. Perhaps it is because the presidential and national elections are coming in 2022 — and under the same constraints of the vise-grip of the coronavirus pandemic on the people’s anxieties and energy level. Already, there have been perceived aggressive intrusions on people’s basic rights — like in the critically sensitive and alarming aspects of freedom of speech and of thought. Laws that would have been unpassable in other times, have passed in Congress and the Senate against unsustained protests by rights groups.

There are matters to be learned from the recent US elections: first is the vigilance for the maintenance of a system of checks and balances in government. In the Philippine political milieu, voters have a chance to reinforce the separation of powers by not voting for political dynasties in order to stop the entrenched patronage system that capitalizes on the people’s dependency on powerful individuals who cannot and will not resist the temptations of corruption and rent-seeking. Perhaps it would be good not to vote for a leader with autocratic tendencies. Secondly, voters must insist on the accountability of public officials — voters must review track records of reelectionists, and remember campaign promises on election day, to hold the elected official to account in his term. Voters must not shirk their responsibility to keep watch that rights are not transgressed and the people’s tax money is not stolen by corrupt officials — for the good of all in the democracy.

Votes should never be sold, for money or for reflected power from immoral leaders and officials. Lessons in life, in a democracy.

 

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

ahcylagan@yahoo.com

Where did the Philippines go wrong? What did Vietnam do right?

Last month, the International Monetary Fund announced that Vietnam will surpass the Philippines in terms of per capita income by the end of this year. This comes on the back of Vietnam’s decisive anti-virus response which significantly insulated it from the pandemic’s economic blowback. Vietnam’s economy is poised to grow by 3% in 2020 while the Philippine economy will likely contract by a massive 9%.

This was bound to happen. Since Vietnam adopted its Doi Moi policies in 1986 (Doi Moi consist of economic reforms designed to transform Vietnam into a market-driven, socialist state), the socialist republic has increased per capita income from $200 to $3,500. From being one of Asia’s poorest nations, the average Vietnamese is now wealthier than the average Filipino.

How did this happen? The fates of both nations were a result of two distinct paths to development. Vietnam adopted a policy of rapid industrialization while the Philippines relied on its population to drive growth. Vietnam’s socialist government succeeded in instituting the necessary reforms to make its environment conducive to manufacturing while the democratic government of the Philippines was only marginally successful.

The decline of Asia’s star economy of the 1960s began under Marcos’ leadership. Contrary to the misnomer that the best days of the country were under Marcos, statistics show that the economy began to decelerate and lose much of its competitiveness under the despot’s watch. During the Marcos kleptocracy, privately owned businesses that were profitable and competitive were “nationalized” and meted out to cronies to usurp. Among them were companies involved in steel manufacturing, cement manufacturing, auto and auto parts manufacturing, light electronics and construction, among others. These companies eventually closed under crony mismanagement. Our competitiveness in these industries were lost in the process.

Marcos putrefied our institutions by instilling a culture of corruption which remains pervasive up to today. The dictator broke the country’s finances by amassing billions in debt for graft-ridden projects that failed to contribute to national productivity. Marcos relegated two generations of Filipinos to poverty.

By the time the despot was ousted in 1986, the country was an economic wreck. Public utilities were owned by the state and operated with wanton inefficiency. Government institutions were as corrupt as they were inefficient. Private businesses lost their competitiveness and struggled to stay afloat. All these were exacerbated by massive capital flight and a foreign debt load we could not pay.

When President Cory Aquino took over, her first priority was to re-establish our democratic institutions — which she did. But unfortunately, neither Cory, nor any other President after her, including President Duterte, made a commitment to industrialize the nation as Vietnam did.

As mentioned earlier, our leaders relied on our population to fuel growth. GMA relied on OFW remittances to keep the economy afloat. PNoy’s accelerated the development of the IT-BPO industry which later became a new source of foreign exchange. President Duterte depended on household consumption to drive the economy.

Although the Philippine economy grew by an average of 5.3% from 2000 to 2019, its foundations remain “shallow.” I say “shallow” because our manufacturing base remains dangerously thin, our level of exports are substantially lower than our ever-increasing imports, agricultural output is at subsistence level and our service industry is generally comprised by low-value services (eg. call centers). Ours is a consumption-lead economy, not one driven by production.

In contrast, Vietnam embraced industrialization with gusto. During the early days of Doi Moi (1986 to 1990), the Vietnamese sought to attain food security. To achieve this, the socialist government decentralized farming and introduced incentives for production expansion. The monopoly of the state over international trade was broken and private enterprises were allowed to import and export. Farmlands were distributed to individual farmers and excess crops, beyond the mandated quota, could be maintained by the farmers. Regions were encouraged to plant according to their comparative advantage. Price controls were removed. These reforms were the foundation of Vietnam’s agricultural revolution and the reason why it is a net exporter of agricultural products today.

In 1987, the Vietnamese government introduced its first Foreign Investment Law to attract foreign capital and develop its industrial sector. The law permitted complete foreign ownership of domestic physical assets and opened all but a handful of industries to foreign investors. In 1990, the Law on Private Enterprises which provided a legal basis for private firms was enacted. In the same year, the Vietnamese government began the process of privatizing state-owned enterprises.

With its new wealth, tax revenues were diverted to underdeveloped areas through investments in infrastructure and social welfare. As a result, poverty rates declined significantly in the countryside.

From the year 2000 to the present, Vietnam sought to become the region’s center for export manufacturing. Its competence increased not only in agricultural products but also in apparel and footwear as well as electronics and high technology products. As of 2019, Vietnamese exports topped $300 billion, four times more than that of the Philippines. Vietnam bagged $112 billion worth of foreign direct investments from 2010 to 2019 while the Philippines attracted only $57 billion.

How did Vietnam become the favorite destination for multinational companies? It is a combination of many reasons. The first is that it pursued as many free trade agreements as it possibly could. This lowered the tariffs imposed on both imports and exports. Vietnam, today, has free trade agreements with ASEAN, the US, WTO members, China, India, Japan, Korea and members of the Trans Pacific Partnership (ex US).

Next, the Vietnamese government made large investments in primary education and healthcare. Infrastructure spending was gradually increased to 8% of GDP. Lately, it has been investing heavily to modernize its digital backbone.

Finally, it made conditions conducive for manufacturing. This included lowering power cost (it is 43% cheaper than the Philippines), a stable policy regime, the development of upstream and downstream supply chains and better trading infrastructure like seaports and export processing zones. In addition, the Foreign Investment Law of 1997 was revised several times such that Vietnam now offers one of the most attractive fiscal incentives in the region. It also helps that Vietnam is geographically closer to China and East Asia.

Vietnam’s economy will continue to soar and the Philippines will be hard-pressed to catch up unless it embraces industrialization. Not to do so will cause us to be left further behind in the development race.

Since Marcos’ ouster, we have failed to fully industrialize the nation. Let’s hope that the next administration has the vision and political will to do so.

 

Andrew J. Masigan is an economist

US president-elect Biden calls for healing, unity

WILMINGTON, Del./WASHINGTON — President-elect Joe Biden declared it was “time to heal” a deeply divided America in his first speech after prevailing on Saturday in a bitter election, even as President Donald Trump refused to concede and pressed ahead with legal fights against the outcome.

Mr. Biden’s victory in the battleground state of Pennsylvania put him over the threshold of 270 Electoral College votes he needed to clinch the presidency, ending four days of nail-biting suspense and sending his supporters into the streets of major cities in celebration.

“The people of this nation have spoken. They have delivered us a clear victory, a convincing victory,” Mr. Biden told honking and cheering supporters in a parking lot in his home town of Wilmington, Delaware.

The Democrat pledged that as president he would seek to unify the country and “marshal the forces of decency” to battle the coronavirus disease 2019 (COVID-19) pandemic, rebuild economic prosperity, secure healthcare for American families and root out systemic racism.

Without addressing his Republican rival, Mr. Biden spoke directly to the 70 million Americans who cast ballots in support of Mr. Trump, some of whom took to the streets on Saturday to demonstrate against the results.

“For all those of you who voted for President Trump, I understand the disappointment tonight. I’ve lost a couple times myself. But now, let’s give each other a chance. It’s time to put away the harsh rhetoric, lower the temperature, see each other again, listen to each other again,” he said.

“This is the time to heal in America.”

He also thanked Black voters, saying that even at his campaign’s lowest moments, the African American community had stood up for him. “They always have my back, and I’ll have yours,” he said.

Mr. Biden was introduced by his running mate, US Senator Kamala Harris, who will be the first woman, the first Black American and the first American of Asian descent to serve as vice president, the country’s No. 2 office.

“What a testament it is to Joe’s character that he had the audacity to break one of the most substantial barriers that exists in our country, and select a woman as his vice president,” Harris said.

Congratulations poured in from abroad, including from conservative British Prime Minister Boris Johnson, Canadian Prime Minister Justin Trudeau and German Chancellor Angela Merkel, making it hard for Trump to push his repeated claims, without evidence, that the election was rigged against him.

Mr. Trump, who was golfing when the major television networks projected his rival had won, immediately accused Mr. Biden of “rushing to falsely pose as the winner.” Clusters of Mr. Biden supporters lined two blocks of his motorcade’s route back to the White House.

“This election is far from over,” he said in a statement.

Mr. Trump has filed a raft of lawsuits to challenge the results but elections officials in states across the country say there has been no evidence of significant fraud, and legal experts say Mr. Trump’s efforts are unlikely to succeed.

As the news of his win broke, cheers and applause were heard around Washington, with people emerging onto balconies, honking car horns and banging pots. The wave of noise in the nation’s capital built as more people learned of the news. Some sobbed. Music began to play, “We are the Champions” blared.

In the Brooklyn neighborhood of Bedford-Stuyvesant, some people erupted in screams of joy as word spread. Several residents danced on a fire escape, cheering while others screamed “yes!” as they passed by.

Trump supporters reacted with a mix of disappointment, suspicion and resignation, highlighting the difficult task that Mr. Biden faces winning over many Americans, especially in more rural areas, who believe Mr. Trump was the first president to govern with their interests at heart.

“It’s sickening and sad,” said Kayla Doyle, a 35-year-old Trump supporter and manager of the Gridiron Pub on Main Street in the small town of Mifflintown, Pennsylvania. “I think it’s rigged.”

Angry pro-Trump “Stop the Steal” demonstrators gathered at state capitol buildings in Michigan, Pennsylvania and Arizona. Protesters in Phoenix chanted “We want audits!” One speaker told the crowd: “We will win in court!”

There were isolated instances of Trump and Biden supporters confronting one another, as occurred between two groups of about 100 each in Harrisburg, Pennsylvania, but there were no immediate reports of the violence many had feared. The pro-Trump protests mostly faded as the results sank in.

Before the election, Mr. Trump refused to commit to a peaceful transfer of power if he lost, and he falsely declared victory long before counting was complete.

Former and present political leaders also weighed in, including congratulations from former Democratic President Barack Obama, for whom Mr. Biden served as vice president, and Republican US Senator Mitt Romney. Trump ally Senator Lindsey Graham called on the Justice Department to investigate claims of voting irregularities.

The networks’ declaration for Mr. Biden came amid concerns within Mr. Trump’s team about the strategy going forward and pressure on him to pick a professional legal team to outline where they believe voter fraud took place and provide evidence.

Mr. Trump’s allies made it clear the president does not plan to concede anytime soon.

One Trump loyalist said the president simply was not ready to admit defeat even though there would not be enough ballots thrown out in a recount to change the outcome. “There’s a mathematical certainty that he’s going to lose,” the loyalist said.

Mr. Biden’s win ends Mr. Trump’s chaotic four-year presidency in which he played down a deadly pandemic, imposed harsh immigration policies, launched a trade war with China, tore up international agreements and deeply divided many American families with his inflammatory rhetoric, lies and willingness to abandon democratic norms.

On Saturday, Trump campaign manager Bill Stepien urged supporters to be ready to attend protests or rallies that the campaign is “propping up around the country,” according to a person familiar with the situation.  

DIFFICULT TASK AHEAD
For Mr. Biden’s supporters, it was fitting that Pennsylvania ensured his victory. He was born in the industrial city of Scranton in the state’s northeast and, touting his middle-class credentials, secured the Democratic nomination with a promise to win back working-class voters who had supported Mr. Trump in 2016.

He launched his campaign in Pittsburgh last year and wrapped it up with a rally there on Tuesday. It was a tight race in industrial states such as Pennsylvania, Michigan, Wisconsin and Minnesota, but Mr. Biden did enough to prevail.

He faced unprecedented challenges. These included Republican-led efforts to limit mail-in voting at a time when a record number of people were due to vote by mail because of the pandemic, which has killed more than 236,000 people in the United States.

When Mr. Biden enters the White House on Jan. 20, the oldest person to assume the office at age 78, he likely will face a difficult task governing in a deeply polarized Washington, underscored by a record nationwide voter turnout.

Both sides characterized the 2020 election as one of the most crucial in US history, as important as votes during the 1860s Civil War and the 1930s Great Depression.

Mr. Biden’s victory was driven by strong support from groups including women, African Americans, white voters with college degrees and city-dwellers. He beat Mr. Trump by more than four million votes in the nationwide popular vote count.

Mr. Biden, who has spent half a century in public life as a US senator and then vice president under Mr. Trump’s predecessor Mr. Obama, will inherit a nation in turmoil over the pandemic and the related economic slowdown, as well as protests against racism and police brutality.

Mr. Biden has said his first priority will be developing a plan to contain and recover from the pandemic, promising to improve access to testing and, unlike Mr. Trump, to heed the advice of leading public health officials and scientists.

In addition to taming the health crisis, Mr. Biden faces a huge challenge remedying the economic hardship caused by COVID-19. Some 10 million Americans thrown out of work during coronavirus lockdowns remain idled, and federal relief programs have expired.

The US economy remains technically in recession, and prospects are bleak for a return to work for millions, especially in service industries such as hospitality and entertainment, where job losses hit women and minorities particularly hard.

Mr. Biden also has pledged to restore a sense of normalcy to the White House after a presidency in which Mr. Trump praised authoritarian foreign leaders, disdained longstanding global alliances, refused to disavow white supremacists and cast doubt on the legitimacy of the US election system.

Despite his victory, Mr. Biden will have failed to deliver the sweeping repudiation to Mr. Trump that Democrats had hoped for, reflecting the deep support the president still retains.

This could complicate Mr. Biden’s campaign promises to reverse key parts of Mr. Trump’s legacy. These include deep Trump tax cuts that especially benefited corporations and the wealthy, hardline immigration policies, efforts to dismantle the 2010 Obamacare healthcare law and Mr. Trump’s abandonment of such international agreements as the Paris climate accord and Iran nuclear deal.

Should Republicans keep control of the US Senate, they would likely block large parts of his legislative agenda, including expanding healthcare and fighting climate change. That prospect could depend on the outcome of four undecided Senate races, including two in Georgia that will not be resolved until runoffs in January.

For Mr. Trump, 74, it was an unsettling end after an astonishing political rise. The real estate developer who established a nationwide brand as a reality TV personality upset Democrat Hillary Clinton to win the presidency in 2016 in his first run for elected office. Four years later, he becomes the first US president to lose a re-election bid since Republican George H.W. Bush in 1992.

Despite his draconian immigration curbs, Mr. Trump made surprising inroads with Latino voters. He also won battleground states such as Florida, where his pledge to prioritize the economy even if it increased the threat of the coronavirus appeared to have resonated.

In the end, though, Mr. Trump failed to significantly widen his appeal beyond a committed core of rural and working-class white voters who embraced his right-wing populism and “America First” nationalism.

Duane Fitzhugh, a 52-year-old teacher celebrating Biden’s victory outside the Trump Hotel in Washington, said it was as if an evil enchantment was being lifted.

“It’s like a pall fell over the country four years ago and we’ve been waiting years for it to end,” he said. — Reuters

Kamala Harris breaks barriers as America’s next vice president

REUTERS/KEVIN LAMARQUE

WASHINGTON — Kamala Harris made history on Saturday with her election as Joe Biden’s vice president, becoming the first woman, first Black American and first Asian American to win the second highest US office.

Ms. Harris, 56, is widely seen as an obvious candidate for the Democratic Party nomination in 2024 should Mr. Biden, who will be 78 at their inauguration on Jan. 20, decide not to seek a second term. She hasn’t weighed in publicly on such speculation.

Edison Research and the major US television networks on Saturday projected their victory, based on unofficial final results, even though the incumbent president, Republican Donald Trump, vowed to continue fighting in courts.

A US senator from California, Ms. Harris has a track record of shattering glass ceilings. She served as San Francisco’s first female district attorney and was California’s first woman of color to be elected attorney general.

Her background in criminal justice could help a Biden administration tackle the issues of racial equality and policing after the country was swept by protests this year. She is expected to be a top adviser on judicial nominations.

Ms. Harris, whose mother and father emigrated from India and Jamaica, respectively, had her sights set on becoming the first woman US president when she competed against Mr. Biden and others for their party’s 2020 nomination.

She dropped out of the race last December after a campaign hurt by her wavering views on healthcare and indecision about embracing her past as a prosecutor.

Mr. Biden looked beyond some of the harsh words Ms. Harris had for him in that campaign to name her his running mate in August. She has proven to be a valuable and polished stand-in, appealing especially to women, progressives and voters of color, all critical to the party’s election hopes.

Ms. Harris, who developed a deep fundraising network during her Senate and White House bids, has been instrumental to Mr. Biden’s raking in record sums of money in the closing months of the campaign. Her selection sparked a burst of excitement in the Democratic base and among the party’s donors.

“Harris always made the most sense as a running mate for Biden because she had the ability to help him unify the Democratic coalition across racial and generational lines and was able to spike base enthusiasm,” said Joel Payne, a Democratic strategist who worked for Hillary Clinton’s 2016 presidential campaign.

A TEAM PLAYER
Accusations from progressives that Ms. Harris did not do enough to investigate police shootings and wrongful conviction cases when she was California’s attorney general helped doom her own presidential run but surfaced little during her time as Mr. Biden’s running mate.

Ms. Harris has often defended her record, saying as she did in a town hall event last year that she had worked her whole career “to reform the criminal justice system with the understanding that it is deeply flawed and in need of repair.”

Mr. Trump and his re-election campaign had sought to paint Ms. Harris instead as a tool of the Democratic left who would wield power and influence behind the scenes in a Biden presidency.

Prior to her selection, several Biden aides say that Ms. Harris was able to put to rest concerns among some in the former vice president’s camp that she would be too personally ambitious to make a trustworthy partner.

Ms. Harris has shown herself to be a team player, taking on a lower-profile role and holding virtual and in-person political events that sometimes drew little news coverage, while often speaking in terms of what Mr. Biden would do for the country if elected and making an impassioned case against Mr. Trump.

“Joe and I were raised in a very similar way,” Ms. Harris said of Mr. Biden at her October debate against Vice President Mike Pence. “We were raised with values that are about hard work, about the value and the dignity of public service and about the importance of fighting for the dignity of all people.”

DOUBLE DUTY
Ms. Harris juggled her running mate duties with her day job in the Senate. Befitting her background as a prosecutor, she was a deft cross-examiner of US Supreme Court Justice Amy Coney Barrett at Barrett’s Senate confirmation hearing in October, weaving Mr. Biden’s campaign message on healthcare and climate change into her line of questioning.

As the Senate’s only Black woman, Ms. Harris emerged this year as a leading voice on racial justice and police reform after Minneapolis police killed African-American man George Floyd in May. She marched with protesters on the streets of Washington and won over some liberal skeptics.

Asked on “60 Minutes” last month why, given Mr. Biden’s age, he believed Ms. Harris would be ready to step into the presidency if something happened to him, the presidential candidate rapidly fired off five reasons.

“Number one, her values. Number two, she is smart as a devil, and number three, she has a backbone like a ramrod. Number four, she is really principled. And number five, she has had significant experience in the largest state in the Union in running the justice department that’s only second in size to the United States Justice Department. And obviously, I hope that never becomes a question,” he said.

Ms. Harris is married to attorney Douglas Emhoff, who has been a fixture on the campaign trail. His two children from a previous marriage refer to their stepmother as “Momala.” — Reuters

Global uncertainty could risk World War III, says UK military chief

LONDON — Current global uncertainty and anxiety amid the economic crisis caused by the coronavirus pandemic could risk another world war, the head of Britain’s armed forces has warned.

In an interview aired to coincide with Remembrance Sunday, the annual commemorations for those who have been killed and wounded in conflict, Nick Carter, Britain’s Chief of the Defence Staff, said an escalation in regional tensions and errors of judgement could ultimately lead to widespread conflict.

“I think we are living at a moment in time where the world is a very uncertain and anxious place and of course, the dynamic of global competition is a feature of our lives as well, and I think the real risk we have with quite a lot of the regional conflicts that are going on at the moment, is you could see escalation lead to miscalculation,” Mr. Carter told Sky News.

Asked if that meant there was a genuine threat of another world war, Mr. Carter replied: “I’m saying it’s a risk and we need to be conscious of those risks.”

Mr. Carter, who became the British military chief in 2018, said it was important to remember those who had died in previous wars as a warning to those who might repeat past mistakes.

“If you forget about the horror of war, then the great risk I think is that people might think that going to war is a reasonable thing to do,” he said.

“We have to remember that history might not repeat itself but it has a rhythm, and if you look back at the last century, before both world wars, I think it was unarguable that there was escalation which led to the miscalculation which ultimately led to war at a scale we would hopefully never see again.” — Reuters

ROS Elasto Painters score big win over the Blackwater Elite

By Michael Angelo S. Murillo, Senior Reporter

THE Rain or Shine (ROS) Elasto Painters scored a big win over the Blackwater Elite, 82-71, on Sunday at the Angeles University Foundation (AUF) Arena in Pampanga to give their PBA Philippine Cup playoff push added muscle.

On a slide entering the contest, losing three straight, the Elasto Painters used a strong run in the third canto to create separation from the Elite and held on the rest of the way for the victory to regain its footing in the ongoing Philippine Basketball Association (PBA) tournament and improve to a 5-4 record.

Sophomore Javee Mocon led the ROS charge in the victory, finishing with a double-double of 19 points and 13 rebounds.

After holding a four-point cushion in the opening half, 38-34, the Elasto Painters cranked things up in the third canto, outscoring their opponents, 25-11, to stretch their lead to 18 points, 63-45, with one quarter left to play.

In the fourth period, Blackwater tried to rally back, but it could only come to within eight points when everything was already settled with 34 seconds remaining.

Beau Belga finished with 14 points for Rain or Shine, with rookie Clint Doliguez and Ryan Arana adding eight points each.

“Credit to the players. The three-game losing streak started to put pressure on us, but we just focused on shooting better and grinding it out,” said ROS coach Caloy Garcia, whose team moved to a share of fifth spot with three other teams as of this writing.  

For Blackwater (2-7), it was Mac Belo who showed the way with 15 points to go along with eight rebounds.

Guard Roi Sumang and veteran Nino Canaleta added 11 points apiece for the Elite, who have lost six straight.

With the loss, Blackwater is now out of the running for a spot in the quarterfinals. Also eliminated are the Northport Batang Pier (1-7) and Terrafirma Dyip (1-7).

In the PBA Philippine Cup, only the top eight teams after the elimination round advance to the next round with the top four teams enjoying a twice-to-beat advantage over their lower-seeded opponents.

The top seed faces the number eight team, #2 vs. #7, #3 vs. # 6, and #4 vs. #5.

In case of a tie, playoff games will be held only for the #8 seed. For the rest, the quotient system will be in effect.

Meanwhile, games on Monday will have the Phoenix Super LPG Fuel Masters against Blackwater at 1 p.m., Alaska Aces versus the NLEX Road Warriors at 4 p.m., and the Barangay Ginebra San Miguel Kings against Terrafirma at 6:45 p.m.

CEO Alfredo S. Panlilio: Drawing parallels between sports and corporate life

SPORTS and corporate life may seem to be distinct things, but at the core, they are pretty much similar.

This was the focus of the speech of PLDT chief revenue officer and Smart president and CEO Alfredo S. Panlilio at the recently held PH Digicon 2020, a virtual business convention which gathered top industry leaders from across the world, sharing expert insights on technology and business.

Mr. Panlilio drew from his experience as a sportsman and sports advocate as he underscored how sports and corporate life operate on similar points.

“Sports engender a sense of belonging and build solidarity between you, your teammates, your coaches, and your wider community… Being a sportsman means exhibiting respect for your competitors and to everyone around you,” said Mr. Panlilio, who is also president of the MVP Sports Foundation and team governor of the Meralco Bolts in the Philippine Basketball Association.

Adding, “As a telco executive, I realize that there exists an inextricable link between connectivity, corporate life, and sports. While the squeaky hardwood of the basketball court feels completely different from the low-key carpet of the boardroom and the office, both environments prize similar values.”

Mr. Panlilio went on to liken to what he does for PLDT-Smart to that of managing a team, which includes speaking to key players about the need to level up and to work as a team; maximizing the use of data analytics; monitoring top-ups, regional performance, geographical demand; and a number of other metrics to make better decisions.

“We have enhanced our capacities by investing in better fiber systems, LTE, and 5G. “How these values manifest in business and in sports may look very different, but the core philosophies and strategies are the same,” he said.

Accountability, too, is primordial in the corporate setup and sports, Mr. Panlilio said.

“The accountability we inculcate among our employees is the same accountability we like seeing on the court — players admitting their mistakes and vowing to play harder, and smarter — during the next game.”

MAMBA MENTALITY
A go-getting mindset — built around preparation, hard work, and developing new skills to overcome setbacks and challenges as embodied by the late National Basketball Association legend Kobe Bryant’s famous Mamba Mentality — goes a long way, Mr. Panlilio said.

He shared that it is the same grit and determination he has seen with the successful people he has worked with.

For the PLDT-Smart executive, continued improvement is also key to flourish be it in sports or corporate life.

“Whenever I am asked about our performance, I cannot help but answer the question like an athlete during a post-game interview. I would say: I’m happy we won, but the series isn’t over. There are a lot of things we could do even better. Better teamwork. Better discipline. Better accountability. More inclusion. We need to review the film. We need to see how we can improve. We do what we do to create a future where all of us can win, and we will not stop until we achieve that.”

PLDT Enterprise’s PH Digicon 2020 happened from Oct. 28 to 30. — Michael Angelo S. Murillo

1...8,8558,8568,857...14,244Page 8,856 of 14,244
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube