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Tackling peace, plastics, PWDs: Mindanao’s social entrepreneurs band together

DAVAO CITY — Mindanao’s social entrepreneurs have banded together to create a bigger impact in the communities and draw more attention to the country’s southern islands.

“It’s always been Manila wherein a lot of entrepreneurs were recognized. We are on the same page helping people, saving the environment, and I think it is time for Mindanao to be recognized as a hub for social entrepreneurship,” said Joseph “Joe” Castillo, founder of the Joe Green Project, which teaches mothers, particularly those in calamity-hit areas, convert plastic trash into backpacks and wallets.

Joe Green Project is one of the members of the newly-formed Social Entrepreneurs of Mindanao, a network intended to foster collaboration among both members and other groups.

Coffee for Peace founder Joji Felicitas Pantoja, another member, said this would allow them to draw from each other’s specialization and avoid duplication of projects.

“Why not talk and discuss where can we collaborate,” she said.

Ms. Pantoja cited as an example Paquibato, a remote part of Davao City that is one of the local government’s focus areas for development under its anti-insurgency program.

Nag-usap-usap na kami kung ano ang magandang dalhin sa (We are already discussing what would be good to introduce in) Paquibato as a social enterprise,” she said.

The group is also open to assisting other organizations that want to work there, “We could guide them,” said Ms. Pantoja, who has more than a decade of experience working on peace efforts alongside coffee production in conflict-affected areas.

TAX BREAKS
Banding together would also mean having a bigger voice for lobbying government on policies, particularly in terms of program support and possible tax breaks for the social enterprise sector.

Ryan D. Gersava, founder of Virtualahan, which focuses on providing job and livelihood opportunities to persons with disabilities (PWDs) and other disadvantaged persons, said social enterprises should not simply be lumped together with the micro, small, and medium enterprises (MSMEs) sector.

Social enterprise, he described, is the “child” when you marry business and non-government work.

“This is a new generation of an organization that has a business model of making profit but has an intention to generate (social) impact,” he said.

Mr. Gersava said social enterprises “break barriers” and fill in gaps in existing public and private structures.

He cited his own Virtualahan, which offers digital skills training as well as an entrepreneurship program, then links their members to potential employers or investors.

The training is not 100% free, but Virtualahan helps trainees who cannot afford the fees to find sponsors, usually from among the potential employers.

“A lot of employers want to become socially conscious and want to hire PWDs and other disadvantaged groups, but don’t know how. They don’t have the confidence or the capacity to be able to do that,” he said.

Virtualahan currently has a community of 300 members in over 60 cities nationwide. Graduates of their skills program have gone on to become data analysts, website developers, graphic designers, or virtual assistants; while the entrepreneurs have ventured into internet cafe and food businesses.

Ms. Pantoja said, “We see to it that we have balance. If there is no money, how can we continue on our mission? We have to take care of our clients, products that are marketable, and we have to make sure that our suppliers are paid well and are also improving their livelihoods.” — Maya M. Padillo

Still a rainy Friday due to monsoon as typhoon Hanna exits

THE SOUTHWEST monsoon will continue to bring moderate to heavy downpours in Luzon and the Western Visayas Region on Friday as typhoon Hanna (international name: Lekima) heads out of the Philippine area. Weather bureau PAGASA, in its 5 p.m. Thursday update, said the “outer rainbands” of Hanna will also continue to bring moderate to heavy rains on Friday over Batanes and the Babuyan Group of Islands. Moderate to heavy monsoon rains will be experienced until Friday afternoon in Ilocos Region, Cordillera Administrative Region, Zambales, Bataan, Occidental Mindoro and northern portions of Palawan (including Calamian Islands). Light to moderate with intermittent heavy monsoon rains will prevail over Metro Manila, Western Visayas, CALABARZON (Cavite-Laguna-Batangas-Rizal-Quezon), and the rest of Central Luzon and MIMAROPA (Mindoro-Marinduque-Romblon-Palawan). Rough sea conditions will also prevail in the western seaboards of Luzon and Visayas, and the northern and eastern seaboards of Mindanao. Meanwhile, the low pressure area estimated at 180 kilometers (km) west of Dagupan City, Pangasinan as of Thursday morning had dissipated by afternoon. Typhoon Krosa, located about 1,950 km east of extreme northern Luzon as of Thursday afternoon, is not expected to enter the Philippine area.

Senate to hold provincial bus ban hearing on Tuesday

THE SENATE committee on public services will hold on Tuesday a public hearing on the provincial bus ban, which was put on a test run Wednesday and worsened traffic along EDSA. Senator Grace S. Poe, who chairs the committee, said on Thursday that the hearing aims to shed light on the policy that has brought “matinding kalbaryo (immense suffering)” to those passing through EDSA and make those responsible for the “kaguluhan (turmoil)” accountable. “We will thresh out all these issues in a productive dialogue where all stakeholders will have a voice and will be part of the solution,” she said. The committee will tackle Senate Resolution No. 954, which sought to conduct an inquiry on the proposed traffic scheme. The Metropolitan Manila Development Authority pushed through with the dry run of the provincial bus ban, in an attempt to ease traffic congestion, despite a court order issued against it. — Charmaine A. Tadalan

Iloilo City council to conduct separate probe on sea tragedy

THE ILOILO City council will conduct its own inquiry “in aid of legislation” on the Aug. 3 sea tragedy where three pumpboats capsized and 31 people died. “Questions have been raised as to why the pumpboats were allowed to set sail, particularly the MB Jenny Vince, which was allowed to take in passengers a mere matter of hours after two pumpboats have already been sunk by squalls,” said Councilor Ely A. Estante Jr., proponent of the resolution calling for the probe. “Observations were also made about the apparent inability of the PCG (Philippine Coast Guard) to conduct (immediate) rescue operations,” the councilor said. Meanwhile, four PCG officials and two from the Maritime Industry Authority (Marina) in Western Visayas have been relieved from their posts while a PCG-Marina joint investigation is ongoing. Transportation Secretary Arthur P. Tugade, who was in Iloilo and Guimaras Wednesday, said the PCG station commanders, Commodore Perlita Cinco for Iloilo) and Commodore Joe Luviz Mercurio for Guimaras, alongside two of their duty officers have been relieved. “Pending the result of the investigation, they have been relieved alongside Marina Regional Director for Western Visayas, Rizal Victoria, and another franchising officer of Marina,” Mr. Tugade said. PCG Region 6 commander Commodore Allan Victor T. Dela Vega, meanwhile, stressed that the relief order is part of the procedure pending the result of the investigation. “It’s not conclusive that they are guilty,” he said. — Emme Rose S. Santiagudo

Empty wharf

Still no activity at the Santo Rosario Wharf in Buenavista, Guimaras on Aug. 8, five days since the suspension of pumpboat operations following Saturday’s sea mishap that claimed 31 lives. The roll on-roll off vessels serving the Iloilo-Guimaras route use the Jordan Port. The affected pumpboat sailors have been given assistance by local government and the Department of Social Welfare and Development.

Javier named national scientist for his work in agriculture

IPBUPLB

AGRONOMIST AND and former University of the Philippines president Emil Q. Javier has been declared as a national scientist for his “outstanding contributions” to the progress of science and technology in the field of agriculture. President Rodrigo R. Duterte signed Proclamation No. 781 on Aug. 2 conferring on Mr. Javier the rank and title of national scientist. According to the Palace, the work of Mr. Javier in the field of agriculture, “through spearheading the Institute of Plant Breeding which popularized high-yielding crops and disease-resistant varieties in the country and Asia, evinces his outstanding contributions to the progress of science and technology in the Philippines.” The Palace also noted that Mr. Javier led and promoted “sound agricultural policies and programs, massive utilization of climate resilient and environment friendly agricultural innovations, and improved governance and management systems to help improve the livelihood of Filipino farmers and fisherfolk.” — Arjay L. Balinbin

Nationwide round-up

Bill on alcohol consumption restrictions filed

bar alcohol
PHILSTAR

THE CHAIRPERSON of the House committee on heath has filed a bill that prohibits the selling, serving, and consumption of alcohol and alcoholic beverages in all streets, sidewalks, parks, and parking areas. House Bill 3047, filed by Quezon 4th district Rep. Angelina D.L. Tan, also prohibits the consumption of liquor in all establishments between 12 midnight to 8 a.m., except restaurants, hotels, supermarkets, and bars within Metro Manila and other highly-urbanized areas, which may be allowed to serve alcohol until 2 a.m. During his State of Nation Address last July, President Rodrigo R. Duterte said he wanted to have a midnight liquor ban. Recently, Manila City Mayor Francisco “Isko Moreno” Domagoso ordered the cancellation of business permits of stores selling liquor near schools and universities. — Vince Angelo C. Ferreras

PDP-Laban gearing up for reorganization

A REORGANIZATION of the Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban) is in the pipeline, Senator Aquilino L. Pimentel III, who sits as the ruling party’s president, said amid leadership change speculations. “It’s about time that the PDP-Laban will follow its constitution and we will call for the a national assembly,” Mr. Pimentel told reporters on the sidelines of the party’s celebration for Senator Emmanuel D. Pacquiao’s boxing victory Wednesday night. Talks of a possible leadership change rose after around 12 members of the PDP-Laban switched to the National Unity Party (NUP), which has also just adopted among its members Presidential son and Davao City 1st District Rep. Paolo Z. Duterte. Mr. Pimentel also said the party reorganization may still push through within the year. “We will listen to the voice of the members. Definitely, there will be some changes sa committee chairmanships. We can still do it, (it’s only) August (now).” — Charmaine A. Tadalan

Blundering along

Like the American invasion and conquest of the Philippines at the turn of the 20th century, the Duterte watch has been as bloody and as blundering.

The four-day shutdown of the gaming operations of the Philippine Charity Sweepstakes Office (PCSO) was the more recent example of regime’s incapacity to address the country’s many problems. Its policy of unrestricted rice imports, which is further impoverishing farmers, is another. And there’s also the influx of vast numbers of Chinese nationals among whom there’s likely to be military personnel that’s creating a national security problem for the country. The Duterte administration has in fact more than once created more problems rather than solving a pre-existing one.

Apparently, neither Mr. Duterte nor his closest advisers were unaware, or simply didn’t care, that the closing of PCSO’s lotto and other outlets would affect the livelihoods of the over 300,000 men and women who operate them and other games in various capacities all over the country, and that, in any case, they have little or nothing to do with the corruption Mr. Duterte said afflicts the agency.

The PCSO is one of those government units to which Mr. Duterte had earlier appointed to head the usual military retiree. The same appointee had resigned, citing widespread corruption in the agency for his reason in doing so. Allegations of corruption have hounded the PCSO for years, but it stands to reason that that problem is most likely to be most pronounced at the highest levels of its bureaucracy rather than at the outlets’ and even the players’ level, as Mr. Duterte alleged when he summarily ordered their closure. But despite its near disastrous impact on over a quarter of a million Filipinos, the PCSO blunder was nothing compared to the cost in real lives of Mr. Duterte’s bumbling and brutal “war on drugs.”

If both local and international human rights defenders are correct, its mindless implementation has cost the country over 30,000 dead including women, minors, and children as young as three years old. Those deaths have also made widows and orphans of thousands in the country’s poorest communities who have been arbitrarily deprived of their families’ breadwinners. But despite this unprecedented cost in Filipino lives, rather than abate, the drug problem has become even worse.

Not that Mr. Duterte did not have prior warning that the “kill them all” approach has never worked. It didn’t work in Thailand, and it hasn’t worked anywhere else. But despite that record of failure elsewhere, and the futility of that approach to the Philippine drug problem, Mr. Duterte’s police minions are still swelling the already huge numbers of suspected drug addicts and pushers killed, while failing to stop the flow of billions of pesos worth of drugs into the Philippines. The same approach has also created a brewing humanitarian crisis that’s adding to the poverty of thousands of families and forcing them to resort to petty crimes and other desperate means in order to survive. Research has established, for example, that in their desperation, some of the widows of those killed in the “drug war” have resorted to prostitution.

But rather than review its “kill, kill, kill” approach to the drug problem, there is mounting evidence that it is being replicated in Mr. Duterte’s all-out war against the New People’s Army (NPA) and the political party that commands it, the Communist Party of the Philippines (CPP).

But it’s not the NPA alone that the police and military are targeting but also the farmers, workers, and lawyers organizations as well as human rights defenders and political and social activists groups that the regime claims to be CPP “fronts.”

Because the members of those organizations are unarmed and above-ground, they are easier targets for either assassination or the filing of all sorts of criminal charges. The NPA is not directly affected because it is armed and a clandestine organization. But the idea is to deny it the political and other support the regime claims are provided by the legal organizations it has been targeting. It is essentially the same tactic the US Central Intelligence Agency (CIA) used in Vietnam in the 1970s under the aegis of its “Phoenix Program.” By assassinating civilian non-combatants thought to be supportive of the Vietnamese National Liberation Front, the Program was a form of terrorism and came close to committing genocide.

That tactic’s failure — the Americans and their Vietnamese collaborators lost the war in 1975 — validates the argument that repression, state terrorism, and murder, when used against social movements with legitimate aims, inevitably fail, or, if they succeed at all, do so only for a time. It failed in South Africa as it did in Vietnam. It failed in Chile — and it failed in the Philippines some 40 years ago, when, despite the extrajudicial killings, the arbitrary arrests and detention, the torture and terrorism of the Marcos kleptocracy, the NPA not only survived but even grew in number, strength, and influence.

The lesson from that period as well as from the experience of other countries apparently escapes the Duterte regime and its military and police minions. Against all reason have they made Negros Oriental province a laboratory in which to test the effectiveness of the “kill, kill, kill” approach to the so-called insurgency by encouraging, if not carrying out, the killing of progressive lawyers, human rights defenders, farmers, and workers.

Apparently, however, it isn’t working as they thought it would. In apparent desperation, Mr. Duterte has announced that he will arm firemen, whom he has ordered to “kill the enemy.” As usual, however, that obvious attempt to augment the already huge numbers of police and military personnel in Negros is likely to be another regime blunder.

Part of its costs will be the further surge in human rights violations, given the expected absence of any orientation on it for firemen, since, as Mr. Duterte has often declared, he doesn’t care for human rights. Beyond that, however, is the distinct possibility that the guns of insufficiently trained firemen will fall into the hands of the NPA, as, indeed, even those of trained police and military personnel have added to the NPA arsenal in the course of its tactical offensives, ambushes, and raids on police stations and military detachments.

Mr. Duterte had the opportunity to be the greatest President this country has ever had when, early in his term, he seemed to have been truly committed to seeing peace talks with the National Democratic Front of the Philippines — the umbrella organization of the CPP, NPA and other revolutionary groups — to their logical conclusion: that of arriving at an agreement to implement the social and economic reforms that would address the poverty, inequality, and social injustice that for 300 years has driven Filipino rebellions and the demand for change and even revolution.

Not only has Mr. Duterte squandered that opportunity by cancelling the talks at their most crucial stage, he is right now also committing the very same monumental blunder every administration in this country has made since 1946: the stubborn and counterproductive adherence to the use of violence to address rebellions and “insurgency,” and with it, the refusal to put in place the reforms that can finally bring peace to this sorry land. Contrary to his and his trolls’, admirers’, and supporters’ claims, Mr. Duterte is no better than his predecessors, and far worse in his enshrinement of killing as official policy.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

End of contract, end to misery?

Even before he got elected, President Rodrigo Duterte committed to abolish the existing practice of “End of Contract” or Endo which characterizes all the familiar contractual arrangements which bind temporary, projects-based, or intermittent workers.

Citing blatant acts of avoiding the cost implications of regularization, owners of businesses were warned that their illegal and exploitative activities shall be stopped. Endo for workers, Endo for capitalists.

Consistent with his call, the Department of Labor and Employment issued DO 174-17, a regulation that tightened elements of permissible contracting or subcontracting, registration of contractors, consequences of non-compliance, provided wider visitorial inspection powers to its personnel and reiterated the solidary liability of “direct” and “indirect” employers. DO 174-17, in addition to the Labor Code provisions prohibiting “labor only” contracting plus various Department of Labor and Employment (DOLE) orders, really drove the message that the government is serious about protecting our laborers’ right to security of tenure.

The effects were tremendously felt and many big companies, especially in the retail sector, telecoms, and food chains, were compelled to regularize their staff who were performing non-core jobs, presumably under the test of “not necessary or desirable” to the business of these employers. Millions of pesos were spent to comply with the law. It was painful and their financial results demonstrated such agony. Even the local stock market reacted.

But it did not end there. In 2018, our President certified the anti-endo bill as urgent. Expectations were high on the part of the working class, but as far as management was concerned, it was another threat of a cost escalation that could impact their bottom line.

The recent veto by Malacañang of the Endo bill is not a signal that the President has forgotten his commitment. I believe that there is a realization on the part of the administration to more carefully formulate an effective balance that would protect our laborers while at the same time keep the economy and businesses as vibrant as possible for the long term.

Business interests must be given a premium too in order to create that right balance between labor and capital. The central argument of the business sector is that temporary, seasonal, flexible working arrangements where people are fairly compensated for tasks, treated humanely and equitably during such periods, coupled with a complement of regular staff doing the core jobs, stimulates the employment market. In other words, the success of business enterprises translates to a bigger labor force with presumably, sustainable benefits for everyone.

It is a fact that many Filipinos, especially the young graduates and millennials, desire more non-structured work options that give them more choices. Tying them down to a regular contract limits their flexibility and affects quality of life decisions. The opportunities created by encouraging independent contractors and entrepreneurs revitalizes the market, it moves them to improve their craft/competence/technical or manual skills. Bigger participation in the labor market is enhanced. The net effect is to lower labor costs and makes our companies more competitive and profitable in the long run.

Different jurisdictions outside of the Philippines have encouraged short-term hiring through limited deregulation and the effects on direct foreign investments have been good. Competitiveness is central to economic development.

But let’s do a quick objective review of the facts and the history of this issue. Are we indeed adding further to the misery of our toiling masses by not passing this law or are we just not realizing that even without this law, there is a sufficient legal anchor for our workers to hold on to?

A check on the various issuances regarding the matter will reveal that there is a plethora of legal measures that seek to curb the evils of labor-only contracting and agreements that seek to frustrate workers’ rights to security of tenure. Consider our Labor Code, its implementing rules, various DOLE orders and advisories (Nos. 3, 10, 18-02, 18-A, 174-17, Circular No. 01 and EO No. 51.) and add to this a bulk of jurisprudential pronouncements from our Supreme Court.

We have a lot in the realm of law to protect our workers from the evils of labor-only contracting. What we need are sensible changes in enforcement, authentic and stronger tripartite relationships of labor, management, and government, and an end to flip-flopping court decisions.

More law does not mean more improvements in the lives of our citizens. Let’s begin with really building up the economy and arming it with a true social conscience. Balance is essential.

 

Ariel F. Nepomuceno is a management consultant on strategy and investment.

Either learn mere marches now or prepare to hold a gun later

It was John Adams who said that “I must study politics and war, that our sons may have liberty to study mathematics and philosophy. Our sons ought to study mathematics and philosophy, geography, natural history and naval architecture, navigation, commerce and agriculture in order to give their children a right to study painting, poetry, music, architecture, statuary, tapestry and porcelain.”

Now, as noted in a previous column I wrote (“Defend your country, not just your thesis;” April 2017), “the average age of a World War II soldier is 26 years old, in Vietnam 22, the first Gulf War 27, in Afghanistan and Iraq, 30.

“By taking account of our demographics, we see that Filipinos from the 20-35 year old group constitute 26 million of our total population (around 25% of the present 105 million). If statistics are to be believed, more than 95% of that demographic is literate.

No distinction is being made here between male and female (roughly a ratio of 1.04 male/female), as academics and intellectuals have been telling us that there is really no difference between the two and that sex is a mere social construct.

“Even if only 10% of that can be transformed into combat efficiency, 2.6 million added to the roughly 100,000 professional soldiers we currently have.”

An additional 2.6 million certainly helps.

Of course, numbers are not everything. Quality and preparedness also matter. Regarding youths, the following facts are important:

“Divorce ‘is catastrophic for children.’ And it ‘is destructive to both boys and girls, but each sex suffers differently. Girls who grow up deprived of their father are more likely to become depressed, more likely to self-harm, and more likely to be promiscuous. But they still have their mothers, with whom they clearly identify. Boys do not have a comparable identification and thus suffer more from father absence. They also tend to act out in a manner that’s harmful to others.” (Suzanne Venker, “Missing fathers and America’s broken boys,” February 2018)

The US today is notorious for school shootings. But what mainstream media (mostly liberal) refuse to report is that most, if not all of the shooters were bereft of fathers, “whether due to divorce, death, or imprisonment” as Susan Goldberg points out (“When Will We Have the Guts to Link Fatherlessness to School Shootings?” February 2018).

Then there’s this: “72% of adolescent murderers grew up without fathers; the same for 60% of all rapists.” The “number of single-parent households is a good predictor of violent crime in a community, while poverty rate is not.” (Terry Brennan, cofounder, Leading Women for Shared Parenting).

The point here is that a secure country ready to defend itself rests substantially on healthy families where the biological father and mother are together to care for the children. A bit ironic but there’s no going around that fact.

The other factor is preparedness for combat itself.

Other countries require military service for their youth: France, Thailand, Sweden, and South Korea. Israel, China, Norway require it for women. The US doesn’t require compulsory military service but all males between 18-25 of age are registered for Selective Service in case a draft is needed.

Military service has certain secondary benefits. It has been found to “reduce criminal activity for youth offenders who enter service at ages 19-22. For this group property crime is reduced for up to five years from the beginning of service.” (“Does Peacetime Military Service Affect Crime?”; Albaek, et al., Institute for the Study of Labor, Discussion Paper No. 7528, July 2013)

Furthermore, military service programs are proven to impart leadership skills, resilience, organization. (“3 Ways Your Team Can Benefit from Military-Style Leadership Training,” Stephen Potter; July 2015).

And, of course, discipline, respect for authority, and patriotism.

There are proposals to provide opt-outs or alternatives to the ROTC. That is flat-out wrong.

The argument proffered is that other civic programs can also inculcate patriotism. But patriotism in relation to military service is a secondary benefit as stated above. Our entire educational system already does that. The real reason, the main vital purpose of compulsory military service, is to ready the youth to defend the country.

If they’re not made to do that or have the choice to opt-out (to do instead what, gardening or dressmaking?), then who else will fight for the country?

It’s compulsory because it’s highly unjust that only some (mostly the poor) will be expected to do their duty and sacrifice while others are entitled not to (e.g., the rich kids).

There’s a reason why Apolinario Mabini (in his “True Decalogue”) encouraged Filipinos to be ready to “combat the common enemy.”

The same reason why all our constitutions, from Malolos to the present, mandated the call for citizens to be ready for military service.

Because, learning their Publius and Plato, our founding fathers were wise enough to know something which today’s intellectuals forget: weakness invites oppression. Thus, “si vis pacem, para bellum.

“If you want peace, prepare for war.”

 

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

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

Nation at a Glance — (08/09/19)

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

Nation at a Glance — (08/09/19)

Hong Kong protesters strike market nerves at last

By Katrina Hamlin

HONG KONG — Blockades and walkouts roiled Hong Kong this week. Unlike similar unrest in 2014, investors are getting anxious. Trade tensions and economic weakness in China have helped to erase the Hang Seng Index’s gains this year, but local indicators like real estate and retail are cooling too. Beijing may not mind that protests squeeze business, if the rising cost of resistance divides the movement. That means there could be more disruption to price in.

A rare general strike on Monday halted traffic and shuttered shops across the territory, which has endured both peaceful marches and violent clashes for two months now. Police have retaliated with tear gas and rubber bullets, while pro-Beijing and anti-Beijing factions have assaulted each other on streets and in subway stations. Protesters want a controversial bill allowing extradition to China to be withdrawn, but have other demands too, including universal suffrage.

Despite the drama, the stock market was open. Hong Kong shareholders rarely flinch at political crises: they held steady when protesters occupied the financial hub’s central business district in 2014. But this time could be different.

Markets are frazzled. A depreciating yuan, a trade war, and slowing Chinese demand all hurt Hong Kong’s open economy. While the S&P 500 is up by double digits year-to-date, the Hang Seng Index is flat. Local firms that earn most of their revenue in the special administrative region are particularly hard hit. Property group Sino Land is down more than 10% for the period, and cosmetics seller Sa Sa has lost a third of its market capitalization. Retailers from luxury group Richemont to high-street pharmacy Watsons reported flagging sales. Tourism numbers are growing more slowly than last year, and the volume of home purchases fell in June, according to Midland Property. Across the board, companies in the city’s benchmark are priced at around 13 times future earnings — peers in the S&P 500 are valued closer to 20 times.

So far staid bond and credit default swap markets have shown little reaction to the rapid decay of the city’s status quo. That might not last. Neither the territory’s nominal leader Carrie Lam nor her backers in the central government appear open to compromise. Escalation would further spook markets: unfortunately that seems more and more likely.

 

REUTERS BREAKINGVIEWS