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Meralco Bolts look to pick up the pieces after another finals loss

By Michael Angelo S. Murillo
Senior Reporter

FAILED to notch a first-ever Philippine Basketball Association title for a third time, the Meralco Bolts admit it is tough to swallow, but that they are nonetheless bent on picking up the pieces, moving on and continuing with their championship quest.

Lost in their best-of-seven PBA Governors’ Cup finals series, 1-4, against perennial championship tormentors Barangay Ginebra San Miguel Kings, the Bolts rue the missed opportunity to finally join the league’s championship roll but recognize that the Kings had their number anew.

“That (Kings) definitely was the better team. We had our opportunities in Game One and in Game Three but we just could not capitalize on those 50-50 chances. Hats off to them because they really played well in the series. Even the game we won (Game Two) they played well,” said Meralco import Allen Durham, whose team saw its championship hopes extinguished after dropping Game Five, 105-93, on Friday..

Mr. Durham underscored that the loss of big man Raymond Almazan because of knee injury early in Game Three and for Game Five affected their ability to put up a sustained fight against the Kings.

“He (Almazan) definitely would have helped us especially in rebounding and second-chance points. That’s why he was there and he was doing it all conference long and we lose him and it was tough,” said Mr. Durham, adjudged PBA best import for the third time.

Mr. Almazan went down early with a left knee injury in the first quarter of Game Three after colliding with Barangay Ginebra guard LA Tenorio.

He was later diagnosed with a lateral meniscal tear which would require surgery.

Mr. Almazan surprisingly was able to play in Game Four but in Game Five was forced to sit it out to avoid risking further damage.

His absence took a toll on Meralco as it could not keep in step with the Kings, whom it had difficulty containing especially when it went to their big guys like Japeth Aguilar and Greg Slaughter.

The finals defeat of the Bolts was the third at the hands of Barangay Ginebra, which defeated the former in the Governors’ Cup finals in 2016 and 2017.

Despite another finals loss, Meralco coach Norman Black said that they can at least take solace in the fact that they got to finish the season on a better note.

“We finished the year better. Entering the tournament we were coming off an 11th and ninth place finish in the previous conferences. The addition of Raymond and Allein (Maliksi), and the return of AD (Durham), made us competitive. It showed that we improved our talent and played better as the year progressed,” said Mr. Black, reiterating that they are going back to the drawing board and coming back better.

“Things did not go as we wanted it. We’re now 0-3 in the finals and it’s tough. But still, personally I have a lot of growth not only in the series but the entire season. We took a lot from this series and hopefully when we get the chance to be in the finals again we would be better,” Bolts wingman Chris Newsome, for his part, said.

McGregor makes fast work of Cerrone in UFC return

LAS VEGAS, NEVADA — Former two-division champion Conor McGregor returned to the Octagon with a stunning knockout of Donald Cerrone in under a minute at UFC 246 on Saturday in his first fight since losing a lightweight title bout to Khabib Nurmagomedov 15 months ago.

The 31-year-old Irishman left ‘Cowboy’ Cerrone bloodied just seconds into the fight by ramming shoulders into his face before landing a head kick that stunned his opponent.

McGregor then pounded strikes into a downed Cerrone before referee Herb Dean called a halt to the action.

The victory was McGregor’s first since November 2016 at Madison Square Garden when he beat Eddie Alvarez to win the lightweight title and become the organisation’s first simultaneous two-weight champion. — Reuters

Part-time cager

For critics, it’s fair to categorize Kawhi Leonard as a part-time player. Thus far, he has suited up in 33 of the Clippers’ 43 matches — which means he’s sidelined roughly once in every four outings. Save for a left knee contusion that had him decommissioned in November, the development is planned and in adherence to a strict load management program that has him sitting out of either game in back-to-back sets. And for all the second-guessing about the plan’s implications on public perception, there can be no disputing its effects to the bottom line.

Indeed, Leonard is an absolute beast when he burns rubber. The Clippers are a heady 25 and eight with him at the helm, and they’re certainly capitalizing on his presence. He’s norming 34.1 possessions per 40 minutes of play (a career-high number that dwarfs previous usage rates), and with reason. Even as his total exposure is down, his stat line is at or near his best ever. And, needless to say, the red, blue, and silver are banking on lightning to strike twice. The Raptors pretty much used him the same way en route to the championship, limiting him to 60 games in the regular season and then unleashing him in the playoffs.

There is, to be sure, a downside to the conservative treatment. Leonard hasn’t exactly endeared himself to fans for doing what he deems is best for himself and his employers. The third and penultimate voting results for the 2020 National Basketball Association All-Star Game places him a poor third in the West frontcourt (notably behind Lakers powerhouses LeBron James and Anthony Davis), and fifth in the entire league. Meanwhile, the Clippers are third in their highly competitive conference, and closer to sixth than first. Evidently, they’re willing to accept a lower seeding if it means preserving him for the stretch run.

The Clippers can’t complain, really. They knew it was the price they had to pay in order to get him. And while it continues to be a gamble, current and projected returns make it a reasonable one. With the reigning Finals Most Valuable Player on their side, they’re closer to the hardware than ever. Never mind the naysayers. The real reckoning comes in the end, and they’re confident they’ll have all the benefits to show when the time comes.

 

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

Our dysfunctional bureaucracy as a binding constraint

It’s becoming ever more clear that our dysfunctional, weak, inefficient, and corrupt bureaucracy is a binding constraint to growth and development. It belongs up there together with our low agricultural productivity, labor rigidities, and monopolies in strategic industries as major constraints for the country to attain its true growth potential.

We have an LTFRB (Land Transportation Franchising and Regulatory Board) that refuses to open the public transport sector to technological innovation and change. On the contrary, it enables monopolistic practices with its refusal to allow Gojeck to compete with Grab and its incredibly stupid decision to set an artificial cap for motorcycle ride-sharing drivers and force Angkas to reduce its driver force to give way to favored new players.

We have an MWSS (Metropolitan Waterworks and Sewerage System) which passes the blame of our water shortage woes on to the private sector when it didn’t do anything in the past 20 years to create new bulk water sources.

We have both the Department of Public Works and Highways (DPWH) and Department of Transportation (DOTr) guilty of underspending and making the administration’s BBB (Build, Build, Build) program more a PPP (Powerpoint Presentations) than real achievements on the ground.

As I mentioned in a previous article, economist Mylinda Gayle Limlengco wrote a paper for Nagoya University on how the spending of the Agricultural Department bureaucracy had a zero correlation with increased output. In other words, the Department of Agriculture (DA) might as well be abolished and the farm sector wouldn’t feel the difference. The DA’s incompetence is reflective of the rest of the bureaucracy.

I need not mention the scams in Philhealth, PNP (Philippine National Police), Food and Drug Administration, Bureau of Corrections, Customs, etc.

Probably President Rodrigo Duterte knows this, but is just not willing to deal with it. In his first two years, he appointed many Davao cronies, San Beda Law schoolmates, and other political supporters to key institutions in government. They not only underperformed — to say the least — but were also corrupt, inefficient, or both, that even President Duterte denounced some of them. Thus, he resorted to appointing retired or former military officers to key positions in government: the Department of Agrarian Reform, the Department of Housing and Urban Development, the MMDA (Metropolitan Manila Development Authority), the National Irrigation Authority, the Department of Communications and Technology, etc. As of last count, there were more than 55 ex-military in key government positions.

The problem is that appointing ex-military in key positions of government doesn’t solve the ills of the bureaucracy. While most of them have graduate degrees, nonetheless, they lack the experience or the institutional memory to do their present jobs really well. Even if they perform well, there will be no continuity. With the advent of a new administration, there will be another turnover and new political appointees will start learning on the job.

A key problem is that our bureaucracy is highly politicized. Presidential appointments are made down to the assistant director level. This leads to lack of meritocracy in our bureaucracy and short term thinking with a focus on politics and corruption.

The bureaucracy is supposed to be a counterweight to our elected officials in the executive and legislature who have to answer to voters during their limited term. The bureaucracy is supposed to provide the medium- to long-term thinking which our elected officials are incapable of providing because elected officials have a fixed term of only three to six years. Moreover, elected officials must pander to the short-term interests of voters while the bureaucracy doesn’t have to.

A new president will have to deal with the problem of our dysfunctional bureaucracy if ever he or she wants to sustain or surpass our current growth momentum. The failure of our bold and ambitious infrastructure program is due for a repeat unless the bureaucracy is reformed.

Alas, the politics doesn’t augur well for the next — or any — president, to reform the bureaucracy since political supporters will demand their share of the bureaucratic spoils and current laws allow presidential appointments down to the assistant director level.

I don’t believe we will ever reform our bureaucracy unless and until we become a more outward looking economy, i.e. the tradables of manufacturing and agriculture become major drivers of economic growth. That is not the present case, where services represent the largest portion and our export to GDP ratio is a mere 30% (and declining over the years), compared to other countries like Vietnam where exports are seen as crucial and represent 100% of GDP.

The fact of the matter is that outward looking economies have the best and most efficient bureaucracies. Taiwan, Singapore, Japan, Hong Kong, and China are all outward looking economies and they rely on their efficient bureaucracies to nurture their outward- looking economies forward.

It’s not hard to see why this is so. To conquer foreign markets and win against trading rivals, producers have to have an efficient bureaucracy behind them. Samsung, Hyundai, LG, and other South Korean companies, for example, would not be able to compete in the world market if their home bureaucracy weren’t efficient. If their government couldn’t provide good infrastructure, for example, their export goods wouldn’t be able to move efficiently and competitively to foreign markets.

On the other hand, here in the Philippines, the political economy favors a weak and inefficient bureaucracy. With the oligarchy in many regulated, inward-looking non-tradable industries (power, banking, ports, shipping, real estate, etc.), the incentive is to “capture the regulator” or prevent competition rather than support an efficient and impartial bureaucracy.

A halfway solution to the problem of a dysfunctional bureaucracy had been to do PPPs or Public-Private Partnerships. Unfortunately, President Duterte, acting as if the Philippine bureaucracy moves as quickly and efficiently as his local government bureaucracy, moved away from PPPs. This is why his BBB or Build, Build, Build program has fallen far short of expectations. He has also shown that the government is an unreliable partner, and with his threats (laden with expletives) to cancel the contracts of Maynilad and Manila Water, private investors face huge regulatory risks in doing PPP. What this portends is adverse selection — only the politically connected who can mitigate the political and regulatory risk — will bid for PPP contracts.

Frankly, I don’t know if there’s a solution to our dysfunctional, inefficient, and corrupt bureaucracy. The incentives in our political and economic systems don’t point toward bureaucratic reform. What I do know is that breaking up the country’s highly concentrated markets and getting more competition, especially from foreign investors, and an emphasis on export tradables (manufacturing and agriculture) will raise the demand for better governance.

In the meantime, it’s enough to know that our bureaucracy is a binding constraint to growth. That knowledge may help us start moving to reform it.

 

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

idea.introspectiv@gmail.com

www.idea.org.ph

Italian woes

Last month, my wife and I treated ourselves to a trip to Italy to watch Placido Domingo at the La Scala Opera House in Milan. Accompanied by another couple, we looked forward to immersing ourselves in the city’s old world grandeur for which the Opera is an integral part.

What we experienced was not quite what we expected. Apart from the city being overrun by trash and litter, homeless people scattered about in the hundreds. Gypsies and scammers roamed the tourist zones in search of holidaymakers to victimize. There was a feeling of disorder and quiet chaos in the air.

The situation is so dire that in our hotel, flyers were passed advising tourists to refrain from talking to strangers and to keep personal belongings close to one’s person. Forewarned, we took all the precautions when roaming the streets, even going so far as placing our wallets in our front pockets and using bags rigged with double zippers.

On our second day, three young girls, about 16 years old, insinuated themselves with our group as we made a mad rush to board the subway. There was body contact between us but we thought nothing of it as this is normal in all crowded subways. In the train, my wife felt a strange sensation in her stomach. When she looked below, she saw the hand of one of the young girls insider her bag, just about to snatch her wallet. My wife made a huff. The girls pretended not to speak English and not knowing what we were accusing them of. The rest of the subway passengers did not seem to care. The three girls alit at the next stop.

Understandably, my wife was shaken. As we comforted her, we decided to check our own pockets. Our companion was shocked to discover that she had lost her cash which was tucked inside her double-zipped bag. As for me, I lost my wallet which was deep inside my front pocket. We were all robbed!

Still shaken, another girl approached us and attempted to pull another scam on us. It was clear that tourists in Milan are fair game for petty criminals.

The incident marred our trip. We just wanted to get out of there.

Coincidentally, we met a Filipino friend who was also in Milan along with his wife and six kids. He narrated that in his last visit to Milan a few months back, the whole family was robbed of 13 suitcases while on a pitstop on the way to the airport. The police offered no help not withstanding the fact that the robbers were caught on CCTV cameras. It was as if robberies were part of the Italian experience.

How could the fourth largest economy of the European Union fall to such depths of lawlessness and despair?

We left Milan the following day and proceeded to Verona where we stayed at the beautiful Delser Hotel. The owner, Alfredo Delser, provided us with perspective on the state of Italy today.

With both frustration and resignation, he intimated that the root of Italian woes is the toxic combination of economic stagnation, unemployment, and political indecisiveness.

The Italian economy grew by only 0.9%, 1.5%, and 0.9% in 2016, 2017, and 2018, respectively. It faces zero growth for 2019 and 2020. This is due to several reasons.

First, it is strapped with crippling debt of $2.24 trillion, representing 130% of the country’s gross domestic product. The weight of principal and interest payments prohibits the Italian government from pump-priming the economy.

Second is a dearth of investments. Due to the lack of confidence in the Parliament, companies, local and foreign, are holding off on building or expanding factories. Moreover, banks are up to their necks with bad loans making them reluctant to lend to new ventures.

Third is a drop in consumer spending. The prevailing sentiment of uncertainty has lead households to increase their precautionary savings. Spending on new homes, cars, and consumer goods is on an all time low. Exacerbating matters is that less families qualify for the Italy’s equivalent of conditional cash transfers (called Reddito di Cittadinanza). This has put less money in circulation.

Fourth is low export growth. Italian exports is estimated to have expanded by a mere 2.6% in 2019 to decrease further to 2.2% in 2020. This is because Italian exports are closely linked to the supply chain of the German automotive industry. Unfortunately, demand for German cars is on a decline as consumers migrate to ride-sharing platforms like Uber, Cabify, and MyTaxi.

The unemployment rate in Italy is a staggering 10% (double that of the Philippines) and so the government is desperate to pump-prime the economy if only to create jobs. They planned to do this by imposing more tax cuts (to encourage investments) and embark on an aggressive spending program to be financed by more debt.

Problem is, the European Union prevents them from exceeding a debt ceiling of 2.3% of GDP. Last year, the Italian government already faced steep fines from the European Commission for breaching its debt level limits.

Adding to Italy’s woes is the pressure to increase its Value Added Tax (VAT) to shore up national revenues and balance the budget. The upshot of this is a tighter choke on consumer demand and investments, weakening the already sputtering economy.

The Parliament was able to delay the implementation of VAT increase last year but has no choice but to implement it this year. VAT will increase from the present 22% to 25.2% in 2020 and 26.5% in 2021. This will make it even harder for the Italian economy to eke out growth.

The Italian parliament is controlled by two opposing blocs, the skeptics of the EU known as the Five Star Movement and the pro-EU Lega Nord. Even amid crisis, these opposing parties can’t seem to agree on a unified plan to get the country out of the funk that it is in. Political bickering and indecisiveness is the order of the day in most parliamentary hearings.

The once powerful industrial economy of Italy is losing steam. It is an old economy that is unable to reinvent itself due to the lack of fresh investments in new ideas. Good thing it has its tourism industry to rely on. But even that is threatened by criminality.

As we Filipinos know too well, getting a country’s financial house in order takes years, if not decades. Italy will have to swallow the bitter pills of austerity measures and increased taxes to manage its debts. Only then can it begin to think about growth. Things will get worse before they get better. Italy will come out a stronger economy after this.

 

Andrew J. Masigan is an economist.

Taal has lost her patience

The volcano might have been upset when the Augustinian friars first came in 1572 to establish a township on the shores of the lake in Batangas province. She erupted, most likely not in welcome, and blew her top in obvious agitation of disturbed peace and the intrusion into her sacred territory. “Ta-al” was what the natives called the volcano-island, “sin ta-as ng langit” (high as the sky) and queen in their primitive Nature-worship.

The friars carried on the name of Taal for the volcano, the surrounding lake and the town on the shore, perhaps unadmittedly intimidated by the unwelcoming fireworks and the noticeable restlessness of the strange volcano with its crater-lake within a lake. A historical account of Norbert Lyons tells that the volcano displayed such great activity that Father Torna de Abreu had a huge cross of native anubing wood erected on the brink of the crater. An exorcism?

Taal volcano continued to rattle her “intruders” with regular eruptions until her exasperation vented in the great 200-day eruption of May 15 to Dec. 1, 1754. Taal’s fury destroyed the old poblaciones (town centers) of Lipa, Taal, Sala, Bauan, and Tanauan. These were abandoned and reestablished several kilometers away from the lakeshore after volcanic activity had subsided (Knittel, Ulrich: 1999. “History of Taal’s activity to 1911”).

Taal Lake was once open to the Verde Island Passage and the South China Sea as part of Balayan Bay, Batangas. The 1754 eruption of the volcano deposited so much volcanic debris to the southwest that Taal Lake was absolutely cut off from the sea. The waters of the lake rose from sea level to five meters above sea level, with its once-saline waters becoming freshwater after the Pansipit River, Taal Lake’s sole outlet to the open sea was blocked. A happy concession from this are the specialty fishes that evolved unique to Taal Lake which adapted from salt water species to the tasty, sought-after fresh-water delicacies of the rare maliputo (trevally) and the overharvested Sardinella tawilis, the only freshwater sardine in the world.

A little sulfurous and ever-so-slightly-salty body of water, up to 600 feet deep and measuring as much as 32 kilometers across, Taal Lake — where the majestic Taal Volcano dips her skirt hem — had become perhaps the most beautiful lake in the country, and the most abundant in marine ecology in the protective Taal Caldera formed by very large volcanic eruptions from 500,000 to 100,000 years ago. The Taal Lake basin was declared as a national park, the Taal Volcano National Park, by Proclamation No. 235 on July 22, 1967 covering 62,292 hectares.

Is beauty an excuse for raping? Is abundance a reason for taking more than what is needed for survival? Folklore about Taal tells about the Lakan (an old sage) who guarded the volcano and guided the townspeople in peaceful sharing of the abundant natural resources of the forests and the lakes — everyone was happy and content, and there was no envy and deceit where there was no greed. Then Lakan tested them: he was going away, and leaving them to abide in honor not to go up the mountain beyond the forbidden area near the crater of the volcano. The Lakan left, and the townspeople followed the rules at first, but they could not help it anymore when he was gone too long and thought he was never to return. They went up to the crater and found glowing gemstones. And the volcano erupted in anger, and spewed dead bodies with its fire and ash.

Such was the deadly wrath of Taal in 1911, erupting for 14 days — Jan. 27 to Feb. 10 — when 1,335 people were killed and ash covered places as far as Manila City, 50 kilometers away. Until last year (2019) there had been 33 recorded eruptions at Taal since 1572, the year the friars first came and disrupted Taal’s equanimity. The total death toll from Taal’s eruptions is estimated at 6,000 by the Philippine Institute of Volcanology and Seismology or Phivolcs.

There was a period of hyperactivity from 1965 to 1977, culminating in the last major phreatic eruptions of 1976 and 1977. Since that time, Taal Volcano Island has been declared a high-risk area and a Permanent Danger Zone (PDZ), hence habitation is strictly not recommended. But many poor families live in the PDZ because of the rich volcanic soil for subsistence farming, the lake that gives generous supply of daily fish, and the forests that offer easy picking of most of whatever else might be lacking.

And in the relative quiet of the Taal volcano, economic activity boomed around it, urged by the increase in population and the urbanization that created needs from easily-satisfied wants proffered by vigorous commercial strategists. Organized tourism brought people to view the beauty of the lake and the volcano in the cool temperature of Tagaytay and Alfonso in Cavite, until businesses and vacation homes elbowed themselves onto the ridge that provided a panoramic view of the majestic Taal.

But the rich seem to have taken over the benefits in the Taal Basin. The small fisherfolk have been whining to dismantle vast tracts of fish pens in Taal Lake which are owned by private individuals and big fishing firms, and for regulators to order operators to comply with the lake’s carrying capacity and prioritize the fishing rights of small fisherfolk who have been deprived of their traditional fishing grounds due to the privatization of the fishing water, a newspaper report showed (Business Mirror, June 5, 2019).

Taal Lake has been choked with some 6,000 commercial fish pens — the maximum number allowed by the Bureau of Fisheries and Aquatic Resources (BFAR) after 2006, when the lake had 14,000 pens owned by big businessmen cultivating mostly bangus (milkfish) and tilapia (St. Peter’s fish). The province of Batangas has produced more than 16,400 metric tons of bangus, which is 4% of the country’s total production in 2018. But in May to June 2019, a total of 605 metric tons (MT) of tilapia and bangus were lost to a fish kill in Taal Lake. The damage could easily cost around P50 million. Fishermen’s group Pamalakaya said in the news that this was the third fish kill to hit Taal Lake since 2018, citing incidents that happened in November, which affected 60 MT or equivalent to P5-million worth of tilapia, and the following January that killed 99.8 MT of fish (Ibid.).

BFAR reported the continuous plummeting of the level of dissolved oxygen (DO) in Taal Lake, which has reached 0.33 parts per million (ppm) at the surface of Taal Lake and 0.66 ppm at the bottom when the normal DO level should be between 5 to 6 ppm at which fish breathe. All this was caused by the overstocking of fish in the commercial fishpens. Did we not listen and understand, when the Lakan, caretaker of Taal, said to the townsfolk: take and enjoy the bounty of Mother Nature, but “Moderate Your Greed”?

Taal has lost her patience. After 42 years, on Sunday afternoon, Jan. 12, 2020, Taal Volcano erupted again, spewing miles-high atomic blooms of dense sulphur and silica ash over Batangas and Cavite, blown by strong winds over Metro Manila and threatening Central Luzon. Some 160,000 evacuees gathered in 300 centers as lockdown (no-man’s-land) was imposed on Aguinaldo, Alitagtag, Bala, Cuenca, Laurel, Malvar, San Nicolas, Sta. Teresita, Taal, Talisay, parts of Lipa, Mataas na Kahoy, and Tanauan. No fishing was allowed in Taal Lake. The National Disaster Risk and Rehabilitation Management Council (NDRRMC) is taking care of 22,472 families of 96,061 individuals, the Philippine Star reported.

Reactive measures will not prevent further horrible calamities. The only way would be to go back to the beginning of peaceful, beautiful Taal — the town, the Lake, the Volcano, and humbly admit to the extreme exploitation that we humans have done to her. And from there, change our attitude and relationship with Nature, vowing to follow rules of balance and restoration.

Humans are no match to Nature’s wrath.

 

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

ahcylagan@yahoo.com

Dina Abad’s lasting legacy

This piece is a slightly shortened version of the remarks of Dina Abad’s husband, Butch Abad on the occasion of the Ateneo School of Government’s launching of the Dina Abad Emerging Leaders Fellowship on Jan. 18, 2020.

We gather with a purpose that is close to our hearts: the launching of the Dina Abad Emerging Leaders Fellowship program, and our celebration of her enduring legacy. What a fitting present for her birthday, which is eight days from today.

I am deeply grateful to the Ateneo School of Government (ASoG) — not only for their generosity in naming the fellowship program after Dina, but also for appointing Dina as the school’s very first dean. For those familiar with the ASoG’s provenance, Dina was in fact one of its founders. The idea to establish the school first came to her during her Mason Fellowship at the John F. Kennedy School of Government at Harvard University in 1995.

Since its inception, the ASoG became her academic home. Here, she embraced the strength of her identity as a public servant and academician. This identity — principled, ambitious, and feisty — and we can all agree that she was feisty! — would later govern her engagement in elective politics.

And so today is a homecoming for Dina, because you were very much her second family — despite of, or even because some of you, became frenemies at some point. It takes a lot of trust between people to disagree respectfully and without fear. Because of all this, you were her treasured kin in political reform and public service.

Dina was an academic by profession. She loved teaching. She enjoyed mentoring students and upstarts in development work. While she was a serious student of history and politics, the idea of entering the arena of elective politics was something she did not relish. It was not out of her distaste for the wheeling-and-dealing that characterize our politics. She was pragmatic enough to understand the need for that and could accept it — up to a point. It was also not because of the notoriety of abuse of power and corruption that generally taint our politicians. She was confident that she could deal with those very negative — and sometimes unfair — impressions about politics and politicians in this country.

What she was concerned about was her stubborn embrace of her beliefs and values that might not lend her to the necessary and unavoidable compromises that wielding power in the service of the common good requires. She was afraid that her bullheadedness might alienate our leaders in Batanes and her colleagues in Congress and prevent her from getting constituency and policy work done. But, at the same time, she was a firm believer in the principle of logos et praxis: engaging the political arena was an opportunity to marry theory with practice and test in the real world the ideas she taught vigorously in class, the values she sought to impart among her students. On top of this, it would be an opportunity to put into practice a principle that she had often repeated in class: that not all politics is bad; that politics can be a force for good.

So when the challenge was put before her to run for Congress in 2004, she was at best ambivalent: excited, at the prospect of entering a new realm of engagement; but apprehensive, that she may not have what Dr. Alran Bengzon calls the “intestinal fortitude” to survive it. Apart from being a reluctant neophyte, she was a Kapampangan, not an Ivatan, and she hardly spoke the language. But with her community organizing and people skills and experience and the unrelenting hard work, Dina was unmatched in the campaign trail. She won her first electoral battle comfortably.

No sooner had she warmed her seat in the House when the “Hello, Garci!” scandal exploded in the political scene, when I and other Cabinet members resigned to protest electoral fraud and its subsequent cover-up. The crisis triggered impeachment proceedings in the House of Representatives and Dina, even the neophyte that she was, found herself one of its prime movers.

It was to be Dina’s first test as a politician. Then President Gloria Macapagal-Arroyo was hardly a stranger to Dina. They were both from Lubao, Pampanga, and their families, including ours, were close to each other. Macapagal-Arroyo was in fact Dina’s professor in Maryknoll.

In similar circumstances, many people would understandably submit to these personal affinities. Kilala ko siya, kaibigan ko sila. May naitulong ’yan sa amin. (I know her, she is a friend. She has helped us.) Most of us would have kept our distance, or taken a neutral position, a safe and understandable option in our political culture. An even more politically pragmatic move was to have sided with the President, as many of Dina’s colleagues did despite damning proof of cheating and fraud.

And yet, despite her personal ties to Arroyo, Dina dared to be at the forefront of the impeachment process. In the minds of her veteran and more pragmatic colleagues in the House, it might have been an ill-advised position for a first-time legislator representing a vulnerable province to take. They might have thought her to be naïve or, worse, a fool for endangering her budding political career. But unlike most of them, Dina rejected the political reflex of self-preservation at the expense of her standing by what is right. While she was mindful of the political risks, speaking truth to power, to exact accountability was, for her, the right thing to do.

When the impeachment bid failed, the consequences of Dina’s principled stand began to bear on her. The Congressional allocation for her development priorities in Batanes was discontinued, including critical regular infrastructure projects. In the last two years of her three-year term, the province suffered a long dry spell in terms of national government subsidies for development, a severe punishment for a small and poor province. With little to show in her first term as Representative, Dina’s leaders were expectedly concerned about how this would impact on her chances of getting re-elected. Her opponents and detractors were certain to pounce on her for prioritizing her national advocacies over her constituency concerns.

Regardless, it was expected that Dina would run for a second term. But Dina was clear-eyed about what Batanes needed: national government support that would deliver basic social services and infrastructure development to spur growth and development in the province. As the province had experienced in 2005 and 2006, Dina was certain that that kind of support was once again going to be denied the province by the Arroyo administration should she get re-elected. After much deliberation and consultations with family and political leaders, Dina made the difficult, if not the politically inconceivable, decision not to run for re-election in 2007. She felt strongly that no matter how deeply and strongly she embraced her principles, the interest of the province and her constituents was paramount. It was too much of a price the Ivatans had to pay. Conversely, giving up a chance at staying in power in favor of being at peace with her conscience was, while a difficult choice, a no-brainer for Dina.

Out of office for the next three years, Dina was warmly welcomed back in ASoG, while keeping her development initiatives in Batanes.

As the Arroyo administration was winding down, Dina thought that 2010 was a good time to return to Congress. But unlike in 2004, it was going to be an uphill climb: she was up against a moneyed incumbent who did not play by the rules, amply supported by an administration that was determined to frustrate her. But grit, unrelenting hard work and her ability to attract young leaders, mostly women, into her campaign, enabled her to prevail — even if by just 35 votes. A win is a win, she would remind critics.

With the election of President Noynoy Aquino, a close friend and partymate, the next three years — 2010-2013 — was to be the complete opposite of her first three years as Representative: investments in social services, infrastructure, heritage and environmental conservation, and eco-tourism development were unprecedented. The developments during that period are generally credited for laying the foundation for the emergence of Batanes as among the top tourism destinations in the country today.

It was also during this period that Dina felt most fulfilled as a national policymaker. Apart from being able to more than fulfill his obligations to her constituents in terms of local legislation and constituency services, her advocacies for transparency and accountability in governance, meaningful devolution, engagement with the citizenry and key policy reforms such as sin tax reform and reproductive health legislation, found robust appreciation and support from the President and his Cabinet, his partymates and in Congress.

As her auspicious second term was coming to an end, the general expectation in Batanes was that her re-election was a foregone conclusion. With support from a sitting President in a midterm election, it was seen to be a “walk in the park” for her.

It should have been — except for a crisis in our local party chapter and how she insisted it should be handled. The mayorship of the capital town, Basco, had opened up, and a number of party mates had expressed interest. Instead of dictating her choice, which would have simplified the process and which would have been generally accepted, Dina set in motion an inclusive process so that consensus could be achieved. That process came to pass and a common candidate was selected.

Everything should have been smooth sailing afterwards. However, the incumbent governor — a politically powerful, long-time ally — repeatedly refused to accept the result of the process and insisted on his stepson, who incidentally was also our nephew and a popular local figure. When the governor refused to stand down and no compromise seemed possible despite all efforts being expended, Dina did the unimaginable: She gave the governor an ultimatum before eventually asking the governor to disassociate himself from the party. It was to be another wrenching process. But to Dina, the choice was clear: fostering respect for party processes and party discipline or risking insubordination in the ranks and weakening the organization. While I cautioned Dina about taking such a drastic step and its consequences, especially for her re-election prospects, I saw the wisdom in her decision; it was her brand of leadership.

True enough. What was expected to be an easy win, again turned into a tough, problematic contest. But Dina once again prevailed — but only by a precarious margin of 350 votes.

For Dina, the risk was worth taking as she managed to prove once again a point: It is possible to do good politics and still prevail in the end.

After her victory in the 2013 elections, Dina was more convinced that it was possible to immerse oneself in the rough-and-tumble world of Philippine politics without having to abandon one’s conviction and reform aspirations. For sure, it was fraught with risks and uncertainties. But for Dina, it was a small price to pay to be consistent with her principles and be at peace with herself.

Her disposition did gain for her notoriety as the Liberal Party’s informal whip in the House, keeping party mates in check and shepherding them when they stepped out of line. President Noynoy loved to tease that her name should not be Henedina, but should have been “HinDina Abad” — because she did not indulge tomfoolery among her partymates in the House. She was very vocal and upfront when she disagreed with her party mates — even with the President himself.

In the length of time she was legislator, Dina found herself in the midst of many political skirmishes and wheeling-and-dealing. But she chose to keep a healthy sense of detachment from all of that. She kept one foot in the halls of Congress, and another firmly planted in her reform advocacies and academic pursuits.

Altogether, Dina’s courage and principled decision-making became her compass towards political reform and true service to her constituents. Thus, she did not consider it unthinkable to stand up for what was right, even if that meant taking serious risks or relinquishing office.

She ended her engagement in elective politics satisfied that, despite all the temptations that attended wielding political power — and despite the difficult and delicate tension inherent to weaving in and out of politics — she kept her moral and spiritual core intact. As she managed this private struggle, some peers and colleagues must have thought she was being stubborn or difficult. In truth, she was simply manifesting her lifelong effort to preserve her wholeness in the face of difficulties and challenges she had to confront as an advocate of genuine reforms.

Most people believe that no one can be both an accomplished politician and a genuine reformist. Dina’s character and career disproved this with admirable aplomb. Even then, it was not easy work. For ultimately, it took a toll on her physical wellbeing. She managed to endure her condition, and she kept it to herself until it began to weaken and debilitate her.

In paving the singular path of her political career, she drew guiding light from the ideas and values that was inculcated to her during her student volunteer work days in Maryknoll among fisherfolks in Baras, Rizal and nurtured and instilled into her as a trade unionist, an agrarian reform advocate, an anti-martial law activist, a progressive legislator, and upheld and given voice by the Ateneo School of Government.

Dina understood the limitless potency of ideas to spur political and social reform. And this is why the ASoG was so dear to her. In Dina’s view, the ASoG was a cradle of powerful ideas from which genuine change could emerge. She envisioned this institution as a refuge for politicians and academics — a safe harbor for those who yearn to be better leaders for the sake of nation-building.

It is our hope that through the Dina Abad Emerging Leaders Fellowship, we can create fertile ground for the genesis of ideas and action, carve out new space for innovating political reform, and provide a rich opportunity for future leaders in Philippine governance and civic action. Such a purpose cleaves so well to Dina’s lasting legacy: courageous, progressive, compassionate and inclusive leadership that makes nation-building possible.

Nation at a Glance — (01/19/20)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

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Barangay Ginebra back as king of the PBA Governors’ Cup

By Michael Angelo S. Murillo, Senior Reporter

THE Barangay Ginebra San Miguel Kings are once again Philippine Basketball Association Governors’ Cup champions after closing out their best-of-seven finals series with the Meralco Bolts with a 105-93 victory in Game Five on Friday at the Mall of Asia Arena in Pasay City.

Having more to give especially in the second half, the Kings outlasted the Bolts to take the series, 4-1, and win the season-ending PBA tournament for the third time in the last four years.

It was also the 12th title for Barangay Ginebra in the PBA just as it continued its domination of Meralco in the league finals, having beaten the latter in each of the three championship series they have met.

Game Five played a game of runs in the opening quarter.

Barangay Ginebra got early traction, building a 14-8 advantage at the 6:48 mark of the first quarter with import Justin Brownlee and guard Stanley Pringle leading the way.

The Bolts though would regroup, with reinforcement Allen Durham and Baser Amer on the lead, going on an 8-0 run in the next two minutes to go ahead, 16-14.

They would pick up on the momentum shift after to race to a 26-19 lead at the conclusion of the opening frame.

The teams continued to jostle to begin the second frame but Meralco continued to hold sway, 34-24, at the 8:03 mark.

Barangay Ginebra kept pressing it on Meralco as the quarter progressed, only to find a Bolts crew able to hold on and stay ahead, 46-40, at the break.

The Kings opened the third canto strong, outscoring the Bolts, 12-7, to come to within a point, 53-52, in the first four minutes.

Meralco was able to regain its footing, racking up six straight points after to create further separation, 59-52, at the 6:14 mark of the quarter.

The Kings stayed the comeback course, eventually taking the lead, 61-60, with 3:40 to go after an LA Tenorio triple.

Barangay Ginebra stayed ahead, 70-64, heading into the fourth quarter.

With their season on the line, the Bolts began the fourth aggressively.

Allein Maliksi and Mr. Amer helped their team pull even at 77-all with 8:46 remaining, forcing the Kings to sue for time.

It was a timeout Barangay Ginebra put into good use as off it they scored seven straight points to make it an 84-77 count after a minute and a half of play.

Five quick points from Mr. Durham and Chris Newsome pushed the Bolts to within two, 84-82, by the halfway point of the quarter.

But it proved to be the last hurrah for Meralco as from there the Kings started to pull away.

Japeth Aguilar, Scottie Thompson and Mr. Brownlee propelled their team to a ferocious 19-6 run to take a 103-88 lead with 1:30 left in the match.

By then it was all over except the shouting.

Mr. Aguilar led the Kings with 25 points, eight rebounds and four blocks. He was later named finals most valuable player.

Mr. Brownlee finished with 24 points, 10 assists and seven rebounds while Mr. Pringle had 17 points and eight assists.

Mr. Thompson had 14 points, nine rebounds and six assists, with Mr. Tenorio adding 12 points for Barangay Ginebra.

For Meralco it was Mr. Durham who top-scored with 29 points, to go along with 21 rebounds and eight assists.

Mr. Amer had had 17 points while Mr. Newsome had 13 for the Bolts, who played without big man Raymond Almazan because of knee injury.

“The push late in the second quarter played a huge difference for us. Meralco did a good job in making adjustments for this game. But credit to the players for stepping up in the second half, allowing us to win,” said Barangay Ginebra coach Tim Cone, who with the win notched his 22nd league title.

BSP has space to ease monetary policy — Diokno

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno

By Luz Wendy T. Noble

THE Bangko Sentral ng Pilipinas (BSP) has enough “monetary space” amid easing by central banks around the world, BSP Governor Benjamin E. Diokno said on Friday.

“I just came from Basel and the consensus is that interest rates globally will be low for a long time,” he told reporters. “In reality, we still have a lot of monetary space.”

Inflation is likely to remain stable despite the the risk of an uptick from the eruption of Taal Volcano in Batangas province, Mr Diokno said.

“The BSP expects inflation to stay on course in 2020,” the governor said. The central bank expects inflation to average “near the midpoint of the target band at 2.9%” for this year and in 2021, he said.

The government has set an inflation target of 2-4% for 2020 until 2022.

The Philippine central bank cut its benchmark interest rate by 75 basis points (bps) last year to help support the economy after raising it by a total of 175 bps in 2018.

The government is forecasting economic growth of 6.5% to 7.5% this year after the economy was estimated to have grown by 6% to 6.5% last year.

Mr. Diokno said the central bank is on track, based on its “forward guidance,” to cut the reserve requirement ratio (RRR) for banks to a single digit, in line with the regional level.

“Then we have a lot of possibilities, we have a lot of monetary space to reflect some change,” he said.

After 400 bps of cuts last year, the reserve ratio for universal and commercial banks now stand at 14%, while those for thrift and rural banks are at 5% and 3%, respectively.

Mr. Diokno said the central bank would assess the effect of Taal Volcano’s eruption on both inflation and economic growth.

Finance Secretary Carlos G. Dominguez III this week said that the National Capital Region and Calabargon — made up of the provinces of Cavite, Laguna, Batangas, Rizal and Quezon — contributed 36% and 17%, respectively to the country’s gross domestic product (GDP) in 2018.

‘GRADUAL UPTICK’
Mr. Dominguez has also said the eruption’s effect on inflation would be minimal and manageable.

The combined effects of typhoons in December and the Taal eruption could cause inflation to spike to 3% at the start of the year, Philippine National Bank (PNB) economist Jun Trinidad said in a note on Friday.

Aside from the Taal Volcano eruption, inflation risks include increased volatility in oil prices after escalating tensions in the Middle East paired with the continued impact of the African Swine Fever outbreak, Mr. Diokno said.

There could be a “gradual uptick” in Inflation in the early part of the year because the base effects from 2018 have been diminishing, said Dennis D. Lapid, director of the BSP’s Department of Economic Research.

But slower economic growth paired with unclear trade policies in major economies could “weigh down on global economic activity and thus mitigate upward pressures on commodity prices,” he said.

Inflation in December was at 2.5% after an uptick in consumer demand during the holiday season and typhoons, among other things.

This was well within the central bank’s 2-4% target. Average inflation last year slowed to 2.5% from 5.2% in 2018.

Also on Friday, Mr. Diokno said the country is poised to achieve a “credit rating A” within two years after the government put in place structural reforms.

“Our target is to get it within two years,” he said. “And to me, the key there is structural reform,” he added, referring to tax changes and amendments to the central bank charter, among other things.

In May, S&P Global Ratings raised the country’s long-term sovereign credit rating to BBB+ from BBB, bringing it one notch away from an A-level rating.

Damage from Taal hits P3 billion; fisheries most affected

DAMAGE from the eruption of Taal Volcano has reached P3 billion, with the fishery sector suffering the most devastation, the Agriculture department said on Friday.

Thousands of people have left their homes after the volcano spewed a column of ash 14 kilometers into the air on Sunday. The ashfall reached as far as cities near the capital, forcing financial markets to suspend trading and the Manila airport to close.

Taal Volcano, one of the world’s smallest and active volcanoes, continues to spew ash and an explosive eruption could happen in days, according to the nation’s volcanology agency.

The second-highest alert status remains hoisted there and a 14-kilometer danger zone from the volcano remained off limits to people.

The Agriculture department said in a bulletin on Thursday evening damage has reached P3.06 billion, affecting 15,790 hectares of land and 1,923 animals.

Coffee, cacao, pineapple, vegetables, rice and coconut were among the damaged crops. Fisheries has suffered P1.6 billion in damages, particularly for tilapia and milkfish, it said.

Taal Lake, the country’s third-biggest lake that fills the Taal Caldera — a large volcanic caldera formed by very large eruptions — contains tilapia, milkfish and the endemic freshwater sardine tawilis, among other fish.

The Calabarzon region — made up of the provinces of Cavite, Laguna, Batangas, Rizal and Quezon — accounted for 41% of the country’s inland fishery production in 2018 at 164,200 metric tons (MT), according to Philippine Statistics Authority data.

Marine fisheries accounted for 3.93% or 1.89 million MT, while agriculture had a 6.58% share or 2.304 million MT.

Marine fisheries accounted for 3.93% or 1.89 MT, while agriculture had a 6.58% share or 2.304 million MT.

Fish from the lake are not safe to eat because of their high sulfur content, Agriculture officials said earlier.

The Bureau of Animal Industry delivered 20 bags of animal feeds and medicine for rescued livestock, while the Philippine Carabao Center and National Dairy Authority gave 2.5 tons of roughages that will be delivered to Batanagas province on Saturday.

The Agriculture department’s regional field office in Cagayan Valley and Nueva Vizcaya Agricultural Terminal will donate 10 tons of assorted vegetables that will arrive in Lipa City on Saturday.

Meanwhile, the League of Associations, which consists of 11 associations of vegetable farmers and traders in La Trinidad, Benguet, will be giving three to four tons of assorted vegetables. — Vincent Mariel P. Galang

Jollibee raises $600M from offshore debut

JOLLIBEE Foods Corp. (JFC) raised $600 million from a landmark sale of perpetual securities in its offshore capital market debut, restocking its chest after buying the company behind US specialty chain Coffee Bean & Tea Leaf (CBTL).

It was the first time for the Philippine fast-food giant to issue perpetual bonds and the first time to tap offshore capital markets since it was listed in 1993. “This issuance is one of the first by an Asian restaurant company,” it said in a stock exchange filing on Friday.

The transaction was oversubscribed by almost 10 times the original issue amount of $400 million, allowing the company to increase the transaction to $600 million and tighten final pricing by 35 basis points to 3.9%, Jollibee said.

It added that the issuance marks the lowest pricing for a five-year perpetual bond issued by a Philippine company, “reflecting the strong demand for a JFC bond and the reputable credit standing of the company.”

The company said it would use the proceeds of the bond sale for general corporate purposes and to repay short-term debt after it bought International Coffee and Tea, LLC, the company behind The Coffee Bean & Tea Leaf.

The securities will be accounted for as equity.

The Regulation S dollar-denominated issuance will have an initial distribution rate of 3.9%, non-callable for five years, and payable semi-annually. “Reg S” securities are available only for offers and sales outside the US.

Jollibee unit Jollibee Worldwide Pte. Ltd. will issue the securities, which are unrated and will be listed on the Singapore Exchange Securities Trading Ltd.

“The objective of management for this issuance is to further strengthen the balance sheet of JFC to build a stronger foundation for accelerating its growth in order to achieve its vision to become one of the top five restaurant companies in the world,” the company said.

Jollibee shares closed 6.27% or P12.60 higher at P213.60 each on Friday. — Victor V. Saulon