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Uniqlo owner considers paying star employees $280,000 after three years

ASIA’S largest retailer is hoping that a $280,000 annual salary and a managerial title in three years will lure top talent as it grapples with one of the tightest labor markets in Japanese history.

The salary being considered by Uniqlo owner Fast Retailing Co. would be more than three times the average pay at the company, and nearly 10 times the national average in Japan for those with similar employment tenures.

The higher pay is meant to draw in talented people to Fast Retailing and is being considered by Chief Executive Officer Tadashi Yanai, the company said. He is mulling putting the higher salaries into effect next spring. The effort follows a move earlier this year to raise compensation for some new hires.

The company is considering promising young talent a move into management within three years with annual salaries of 20 million to 30 million yen ($279,329) for those sent to the US or Europe, and more than 10 million yen for those in Japan, according to a Nikkei report from an interview with Mr. Yanai.

As Japan struggles with an aging population and a shortfall of young workers, businesses are dismantling previously sacred cultural norms, like the correlation of pay with experience, and the notion of lifetime employment. Tech companies in Japan have made similar moves to draw in young talent, promising million-dollar salaries and raising starting pay by 20% for top candidates.

The average Fast Retailing annual pay was about 8.77 million yen as of August 2018, according to company filings. The lowest salary at the company was about 4 million yen a year, the Nikkei report said, citing previous data from the company’s recruiting website. Nationally, the average annual salary for workers with up to four years of work experience was 3.1 million yen in 2017, according to figures compiled by the National Tax Agency.

Fast Retailing assigns most fresh recruits to work in Uniqlo stores, but under the new system, more will be sent to specialized departments that suit their skills in areas including information technology and design, according to the Nikkei report. The company will then choose candidates for managerial positions in Japan and overseas after three to five years. — Bloomberg

Great inaugural effort

Super Neptunia RPG
PlayStation 4/PC via Stream

DESPITE having taken off only at the turn of the decade and coming up with zero output in 2016, the Hyperdimension Neptunia series has managed to churn out a whopping 17 titles to date. The bounty is both a testament to the popularity of the franchise and the sheer inventiveness of developer Compile Heart and publisher Idea Factory. And it isn’t as if they’re simply out to satisfy the cravings of a captive market across platforms and media. To the contrary, their prolificacy is a reflection of their creativity and ensuing willingness to test the boundaries of their constituencies.

If nothing else, the release of Super Neptunia RPG on the Sony PlayStation 4 and on Windows underscores Idea Factory’s desire to inject freshness to its intellectual property. Considering the loyalty of the considerable fan base, the safe bet would have been for it to stick to what works and produce another title in the main series. Instead, it has opted to go for a spinoff, and, what’s more, spread the welcome mat for Canada-based Artisan Studios. The collaboration is its first for the series with a developer outside Japan, as clear a sign as any of its continued desire to push the envelope.

The good news is that Super Neptunia RPG holds promise from the get-go, employing familiar settings and characters, albeit with a twist to set up its presentation as a two-dimensional platformer. It starts with longtime series protagonist Neptune suffering from amnesia and compelled to collect taxes by way of 2D game cartridges from Gamindustri denizens while she tries to regain her memory. Soon enough, she reasons that the shadowy Bombyx Mori, her employer, isn’t after the public’s welfare, and thusly resolves to set things right. En route, she teams up with usual party mates Noire, Blanc, and Vert, who, like her, are game consoles personified as goddesses and all of whom also have no recollection of their past.

Super Neptunia RPG does its preamble with equal parts panache and patience, making use of cut scenes to flesh out the narrative and taking the time to introduce its dramatis personae. Humor is laced in abundance, often breaking the fourth wall in its telling — a tack Hyperdimension Neptunia fans know only too well and gamers new to the franchise will, no doubt, appreciate. The meta approach works, and is backstopped by lush and beautifully rendered 2D visuals and first-rate audio cues; purists will invariably stick to the Japanese track, but the English voice acting offers an otherwise-excellent alternative.

Parenthetically, Super Neptunia RPG’s mechanics mimic those of Metroidvania offerings, ensuing that gamers exert effort on both exploration and combat. That said, the seeming emphasis on strategy during battle, featuring character formation and customization options, is trumped by the relative ease with which challenges are overcome, and not simply because of the possibility of chaining attacks via shared ability points. Indeed, button mashing proves to be an effective tool for triumph even as the pace of play can be sped up by literally fast-forwarding proceedings.

Needless to say, side quests are aplenty in Super Neptunia RPG; interaction with non-playable characters will yield tasks that require venturing in large swaths of land. In other words, it’s a veritable feast for completionists who need to scratch their itch of getting to every nook and cranny of, opening every treasure chest in, and collecting every item on, the world map. In any case, gamers will be spending well over double digits in hours to reach the end, providing good value for money at $49.99 for the PlayStation 4 and certainly at much less for Windows-based rigs.

Speaking of platforms, Super Neptunia RPG proves to be a technical marvel even on a midrange personal computer; performance is spotless, with nary a hiccup or frame drop. At the same time, gamers may want to make use of a controller, which provides a smoother interface compared to the traditional keyboard setup. Meanwhile, it doesn’t fare as well on the PlayStation 4 Pro; occasional stutters will crop up, although there is reason to hope for the coming of a corrective patch similar to that issued for the Japanese version.

In sum, Super Neptunia RPG comes off as a great inaugural effort from Artisan Studios. Not coincidentally, the Switch version releases today, and, for all the relative limitations of the hybrid console, Idea Factory couldn’t have come up with a better title to introduce the series to Nintendo diehards. Its lighthearted tone, simple combat system, and newbie-friendly approach amp up the fun factor on the go. At home, though, gamers can’t go wrong with either the PS4 or Windows iterations.

THE GOOD:

• Brand of humor familiar to series regulars and certain to appeal to newcomers

• Outstanding level design

• Lush two-dimensional visuals accentuating the meta factor

• Excellent English voice acting

• Appropriately energetic soundtrack

THE BAD:

• Relatively easy battles

• Side quests can be inconsequential

• Occasional stutters on the PS4 version

• Overworld interface could be better

RATING: 8/10

POSTSCRIPT: Gamers keen on knowing more about the work that went into Super Neptunia RPG may want to keep tabs on the Reddit Ask Me Anything session early tomorrow morning, Manila time. Representatives of Artisan Studios, including co-founders Mario Rizzo and Julien Bourgeois and lead animator Charles Duchesne, will be on hand to answer queries about the release.

BoT seen holding key rate despite flagging growth

BANGKOK — Thailand’s central bank is expected to keep its benchmark policy rate steady on Wednesday for a fourth straight meeting, a Reuters poll showed, despite slowing growth and the way many Asian central banks have shifted toward easing policy.

In the survey, 14 economists predicted the Bank of Thailand’s (BoT) monetary policy committee (MPC) will keep its one-day repurchase rate at 1.75% — half a point above the record low. One analyst forecast a quarter-point cut on weaker growth.

The MPC raised the policy rate in December for the first time since 2011, by 25 basis points (bp), but has since held it steady, saying policy will depend on economic data.

While faltering growth and low inflation, with the headline rate just 1.15% in May, support policy easing, the BoT has reiterated concerns about financial stability risks and high household debt.

Charnon Boonnuch, economist of Nomura in Singapore, sees no policy change the rest of this year, though he expects an outlook downgrade by the central bank.

“The tone should continue to be more dovish on the growth outlook…but we do not expect the BoT to cut the policy rate in 2019, owing to its concerns about financial stability” and limited room to cut, he said.

Last month, the BoT said 2019 economic growth would be less than its forecast of 3.8%. It will give a new projection on Wednesday. Last year’s growth was 4.1%.

WEAK Q1 GROWTH
Southeast Asia’s second-largest economy grew just 2.8% in the first quarter, the weakest annual pace in over four years, as exports declined amid trade tensions.

Domestic political uncertainty remains after a March election as junta chief-turned-civilian prime minister Prayuth Chan-ocha will lead a fragile coalition. His cabinet line-up is expected to be announced by next month.

The central bank will be hoping that the new government does “more of the heavy lifting” with measures to try to stimulate growth, said Kobsidthi Silpachai, head of capital markets research of Kasikornbank, which expects no BoT policy change this year.

HSBC said the recent dovish tilt from most central banks and a potential further deceleration in global and domestic growth, could prompt the BoT to “reverse course” on monetary policy in future.

ING sees a cut as soon as this week, “if only to reverse the 25 bp rate hike from late 2018,” economist Prakash Sakpal in Singapore said in a note.

“It’s hard to imagine the BoT ignoring the 1Q GDP (gross domestic product) data, while activity data for the second quarter doesn’t offer much hope that the worst is over.” — Reuters

How PSEi member stocks performed — June 24, 2019

Here’s a quick glance at how PSEi stocks fared on Monday, June 24, 2019.

 

Rising welfarism, rising taxes

Among the factors given why President Duterte’s Senatorial bets won and shut out the opposition in the May 2019 Senatorial elections were: a. high popularity of the President; b. high visibility of his build-build-build programs; c. reduction in inflation in 2019; and, d. failure of the opposition to convince voters that they are the “right group to lead the charge.”

These were contained in the articles written by fellow columnists in BusinessWorld, particularly:

1. “Understanding President Duterte’s approval ratings” by Andrew J. Masigan (June 04).

2. “Why the opposition lost in the 2019 Midterm (Senatorial) Elections” by Diana J. Mendoza (June 11).

3. “Why President Duterte’s senate bets won” by Calixto V. Chikiamco (June 17).

4. “Vox populi” by Romeo L. Bernardo (June 24).

I think what was missing among those analyses is that the Duterte administration has expanded welfarism and endless subsidies to the public regardless of their impact on the budget deficit, public borrowings, and need for more taxes. In short, Duterte has bribed the voters with more freebies on top of existing ones to get more votes.

Consider what the administration has expanded so far:

1. Free tuition in all state universities and colleges (SUCs), RA 10931 (Aug. 3, 2017)

2. Free irrigation law, RA 10969 (Feb. 2, 2018)

3. Free feeding program, RA 11037 (June 20, 2018)

4. Expanded/free nutrition program, RA 11148 (Nov. 29, 2018)

5. Free/expanded PhilHealth, RA 11223 (Feb. 20, 2019)

6. Free/expanded PhilHealth for persons with disabilities (PWDs), RA 11228 (Feb. 22, 2019)

7. Magna Carta for the Poor (more freebies and mandates), RA 11291 (April 12, 2019)

8. Institutionalizing 4Ps (expanded CCT), RA 11310 (April 17, 2019)

9. Sagip-Saka law (more freebies to farmers), RA 11321 (April 17, 2019).

Freebies are not really free — they are costly to the rest of the taxpayers. The numbers would show that compared to previous two administrations, the rise in public debt stock was very high under the current administration, average of P588 billion/year vs. P223 billion/year under the Aquino, and P265 billion/year under the Arroyo administrations. (See Table 1.)

The Philippines’ public debt/GDP ratio has been steadily declining, from 74% in 2004, 55% in 2009, to only 42% in 2016. Then the Duterte administration came and the decline has stopped and steadied at 42%. (See Table 2)

More welfarism, subsidies, and freebies with no timetable means more waste and social inefficiencies. Even the non-poor (like many college students in SUCs like the University of the Philippines) were considered poor and hence, became entitled to more freebies.

We need less welfarism and freebies. We instead need to cut taxes and regulations, encourage more entrepreneurship and job generation by the private sector. Then state dependence will decline and more self-reliant citizens will flourish.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

Slam of party-list system a mere sham

“The party-list system has become one evil,” bewailed President Rodrigo R. Duterte at the oath taking of the newly elected officials of Cagayan de Oro City on June 13. He accused the rich of using their money to insert themselves into Congress. “They (party-lists) are named after laborers, but their nominees are millionaires,” said he.

The representative of party-list 1 Pacman in the 17th Congress as well as in the 18th Congress is Michael “Mikee” Romero, whose net worth of P7.9 billion makes him the richest member of the House of Representatives. Manila Teachers Party-list Representative Virgilio Lacson has a net worth of P793.87 million, Delphine Lee of Agri, P254.3 million, Jesulito Manalo of Angkla, P124.5 million, and Mila Magsaysay of Senior Citizens, P95.7 million.

Presidential Spokesperson Salvador Panelo said the President was simply “expressing an idea and that’s for the Comelec (Commission on Elections) to respond to it.” Mr. Panelo makes it appear that the President defers to the Comelec, a constitutional body that is supposed to be independent of the dictates or influence of the highest official of the land. But the Comelec has demonstrated many times a willingness to abide by the biddings of the President.

Take the case of the Comelec’s acceptance of Ronald Cardema’s petition for last-minute substitution as the nominee of the party-list group Duterte Youth. The law says a youth sector nominee “must at least be 25 but not more than 30 years of age on the day of the election.” Mr. Cardema is 34 years old. There is also the issue of Mr. Cardema being the chair and chief executive officer of the National Youth Commission on the day of the elections. That should have disqualified him from being a substitute nominee of the Duterte Youth as incumbent officials of the executive branch are disallowed from running for Congress. That is why Bong Go resigned from his position as President Special Assistant months before the elections. So, did many other administration officials who ran for Congress.

The issue is cut and dry, yet the Comelec has not disqualified Mr. Cardema outright from representing the Duterte Youth in the House of Representatives. Mr. Cardema is a rabid supporter of President Duterte. According to Mr. Cardema himself, his wife withdrew as a nominee of Duterte Youth in his favor because she got scared of the idea of debating with leftist representatives and said that he would be in the best position to debate with them. The Comelec must be looking intensely for ways to justify his insertion into Congress.

Some time in May, Comelec Chair Sheriff Abas said, “The party-list system has become a joke. Those who join are billionaires while the marginalized are ousted. But that can be fixed by Congress.” He said the Comelec was, however, limited to implementing what the law allows.

The law is very clear. RA Republic Act No. 7941 or the Party-List System Act provides that: “The State shall promote proportional representation in the election of representatives to the House of Representatives through a party-list system of registered national, regional, and sectoral parties or organizations or coalitions thereof, which will enable Filipino citizens belonging to the marginalized and underrepresented sectors, organizations and parties, and who lack well-defined political constituencies but who could contribute to the formulation and enactment of appropriate legislation that will benefit the nation as a whole, to become members of the House of Representatives.”

Twenty-nine party-list groups not only have fabulously rich people as nominees but are also allies of President Duterte, members of political dynasties, and relatives of government officials. Among them are Probinsyano Ako’s Caesar Fariñas, son of outgoing Ilocos Norte representative Rudy Fariñas, ACT-IS’ Jocelyn Tulfo, sister-in-law of Special Envoy to China Ramon Tulfo, and the aforementioned Ronald Cardema.

In 2010, the Comelec — then dominated by President Gloria Arroyo’s appointees: Nicodemo Ferrer, Elias Yusoph, Lucenito Tagle, and Armando Velasco — allowed her son Mikey, whose net worth at the time was P99 million and who never owned a security agency or a fleet of tricycles, to represent the party-list of tricycle drivers and security guards, in violation of RA 7941. When a disqualification complaint was filed with the Supreme Court against Mikey, the Court, also dominated by Arroyo appointees and headed by Renato Corona, her own choice of chief justice over two more senior associate justices, quickly dismissed the disqualification complaint.

Then in 2013, the Court — still dominated by Arroyo-appointees — ruled that party-lists need not represent any “marginalized and underrepresented” sector. The Court said it is sufficient that their members advocate common ideologies or governance principles regardless of their economic status. In effect, the Supreme Court usurped the function of Congress by changing the law.

The ruling enabled multi-millionaires, members of political dynasties, and those well-connected to the powers-that-be to use the party-list system as the easier and cheaper way of getting elected to the House of Representatives, thus crowding out of Congress the real marginalized folks.

The Comelec is now dominated by appointees of President Duterte. If he really finds rich people representing party-lists evil, he can direct the Comelec, as President Arroyo did, to observe RA 7941 by disallowing rich people from representing party-lists.

In the event party-lists representatives Romero, Lacson, Lee, Manalo, Magsaysay, Farinas, and Tulfo invoke the Supreme Court ruling that removed the concept of “marginalized sectors” from the law, then the President can influence the Supreme Court, as President Arroyo did, to restore the concept in the law.

After all, the Supreme Court has reversed its rulings many times. The high tribunal had ruled in 2008, 2009, and 2011 that the retrenchment of 1,423 Philippine Air Lines employees in 1998 was illegal and ordered their reinstatement. But in late 2011, in response to a mere letter from PAL lawyer Estelito Mendoza, the Court en banc issued a memorandum recalling the Court’s resolution.

With authoritarian Rodrigo R. Duterte as President and his appointees now dominating the present Supreme Court, I expect it to be more compliant to the President’s dictates and wishes as it had shown in the past. All His Highness had to do was say he wanted Ferdinand Marcos buried in Libingan ng mga Bayani, martial law imposed in the whole of Mindanao, and Chief Justice Maria Lourdes Sereno ousted from the Supreme Court , and his appointees to the Court willingly obliged.

With the chief justice his own choice and many of the associate justices now his own appointees (There are seven associate justices who are Duterte appointees, and four each appointed by Gloria Macapagal-Arroyo and Benigno Aquino III — Ed.), the Supreme Court should have by now done away with the system the President considers evil after he expressed his disgust over it. But it has not, because the Chief Justice and the associate justices sense that the disgust is feigned. It stands to reason that the President would be happy to have the rich like Mikee Romero, Virgilio Lacson, and Jesulito Manalo and the relatives of his political allies like Caesar Fariñas and Jocelyn Tulfo represent party-lists in Congress because they are staunch supporters of his legislative agenda.

It is within President Duterte’s power and influence to do away with the evil the party-list system has become. But the evil thrives.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He has been a politicized citizen since his college days in the late 1950s.

Water woes

Metro Manila and adjoining provinces are facing rotating water service interruptions again despite the onset of the rainy season.

Angat Dam, from which comes all the raw water of Maynilad and Manila Water comes, is almost at “critical level” necessitating mandatory cuts in the water supply by both water distribution concessionaires.

BACKGROUND
The 1997 Privatization Act — Republic Act No. 8041, known as the “National Water Crisis Act,” was signed into law by President Fidel V. Ramos.

The Act paved the way for the transfer of water distribution from the Metropolitan Waterworks and Sewerage System (MWSS) to the private sector — the West Zone to Maynilad and the East Zone to Manila Water. The terms of the bidding provided that Maynilad would get 60% and Manila Water 40% of the water from Angat Dam.

At the time of the privatization in 1997, MWSS was losing water heavily and could not provide reliable potable water service to the residents of the metropolis. Practically all customers were without continuous daily supply and many without even a few hours of regular service. Water loss in the distribution system averaged more than 65% — through leakages and illegal connections.

The Privatization program was considered a success by analysts — based on the terms imposed by MWSS and its adviser, the International Finance Corp. (IFC).

Both Manila Water and Maynilad have actually provided much better service than MWSS, giving 24 hours of potable water to almost all the residents in their respective zones.

Manila Water was cited by the Harvard case study series and by the Asian Development Bank (ADB) for successfully providing water service as good as those in the Asia Pacific Region, sometimes even better in terms of reducing lost water in the system (non-revenue water, or NRW).

WHAT’S WRONG WITH THE CURRENT SITUATION?
The current problems were predictable from the start of the privatization program.

When top representatives of the IFC visited Manila Water in early 1997, we discussed the following with them:

1. They advised solving the wrong problem when viewed from needed long-term solution. The terms of reference for bidding required that the interested companies bid the lowest tariff rate they could offer compared with the rate of MWSS (winning bids: Manila Water at P2.32/cubic meter (cu m) for the East Zone; Maynilad at P4.17/cu m for the West Zone). Yet, the MWSS tariff rate of P8.78/cu m at that time was not what people were complaining about — rather it was the non-availability, unreliability, and quality of water service. The guidelines did not consider the need for another major dam to back up Angat Dam, the only source of water for Metro Manila and adjoining provinces.

2. The low tariff rates would be initially welcomed by the residents, but that would regularly require upward adjustments to address increased costs due to foreign exchange rates on the foreign loans passed on by MWSS to the concessionaires. Any rate increase would then be meeting with negative response and opposition by many. (For example, an increase from P2.32/cu m to P3.50/cu m at Manila Water would be viewed as an unacceptable 50% increase.)

3. The terms of the bidding should have kept the P8.78/cu m rate and required the bidder to offer the highest “concession fees.” At P8.78/cu m, the concessionaires would have very good cash flows, from which the “concession fees” could be drawn by MWSS.

4. The high concession fees would then be used by MWSS to fund the construction of the second major dam for the long-term needs of Metro Manila and the neighboring provinces.

5. The Laiban Dam construction project had already been in place earlier, and even the diversion tunnel had been started during the previous Administration. Somehow that project was stopped.

PREDICTABLE RECURRING SHORTAGES
Unless another dam like Angat is built and put into operation soon, the current problem of shortages will continue.

Any solution by both Manila Water and Maynilad will only be temporary, short term, and provide small supplemental supply.

Both water concessionaries will always bear the brunt of criticism and even threats from the government to cancel their contracts. The real culprits are the government planning and regulatory bodies that continue to procrastinate on the urgent need for a second major dam to complement Angat Dam.

Unless such a new dam is built, the whole Metro Manila and adjoining provinces face dire consequences if anything happens to Angat Dam. In fact, this was the subject of a privilege speech of congresswoman Michaela Antonio recently.

WHAT TO DO NEXT
Pray that our government planning and regulatory executives decide to act before it is too late.

We know that water crisis will recur almost every year without a new “Angat Dam.”

The risk of damage to Angat Dam is a real one should “The Big One” happen.

LET US PRAY!

The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines.

 

Filemon T. Berba, Jr. is the Chairman of Philippine Foundation for Science and Technology, the former MAP President in 1982, and the first President of Manila Water Company, Inc. in 1997.

For previous articles, please visit map.org.ph.

map@map.org.ph

berbaft@gmail.com.

Out of the loop

By Tony Samson

THE system that allows for working outside the office is able to keep everyone in the loop, even when they’re out of town. The chat groups are not turned off for vacations. They continue in their different clusters and work groups, which sometimes include clients.

So, is the one on vacation still in the loop? Not really.

Even with the “always on” digital environment which can be accessed while you’re out of the country, you are no longer in the decision-making loop or wield any influence over what is going on. (Informal coffee, meetings in the corridor, and canteen lunches are not accessible in real time.)

Urgent moves are made in your absence without your self-serving inputs, no matter how exalted your title is. (We didn’t think it was important enough for us to disturb your Alaska cruise when deciding on your successor.) Rounds of congratulations on pitches won and principals thanked are spectacles on stage with you in the audience, in the nose-bleed section. (They can’t hear you.) Refrain from joining the ticker-tape parade — where’s the victory party? Lurkers are not invited.

What do you do when you’re out of the loop?

Stay out. So, there is a takeover of your company? You cannot really avert disaster by abruptly rebooking your ticket to come home a week earlier, which is anyway costly and difficult to pull off. It only signals despair. It’s best to come back as scheduled.

Corporate reversals of fortune are like medical diagnoses. By the time they’re painful, they are already in stage four and impervious to cures. Anyway, they may have sorted themselves out by the time of your arrival as scheduled. Sticking to your schedule shows that you are not a panicky person. If indeed you have reason to panic, why rush? An anxiety attack is definitely a postponable luxury.

Distance provides perspective. There’s a new management? The previous head is out on an official trip in Paris and declares he is stepping down, and wants more family time… starting 15 minutes ago. Power shifts in the new team are still developing. Not being there while live bullets are zinging away offers you a glimpse of the action with the sound on mute. This allows some context and the proper perspective — it’s not always about you. Although sometimes it is.

Your name may not even figure in the word wars. You are presumed to be unavailable and like a teleserye that can go on with one character out for a few episodes (he is down with dengue) the plot moves on with the remaining actors. The absent role is put on hold, eventually popping back into the story, free from blame for the feud that exploded a few segments back.

Stay with the big picture. Messaging different people in the office for details reminds them that you are not where you are supposed to be, bothering them when they are trying to save their own jobs. Just wait for chats and posts, even if these carry the bias of the reporters and often offer stale news. This is preferable to playing detective by interviewing witnesses digitally, and getting a fragmented picture of what’s happening, turning into a long-distance pest.

Political and corporate changes happen when a leader is out of the country. Plotters like to do their nasty things when the target of regime change (or succession planning) is out and cannot defend himself or call on his loyal troops. It’s even convenient to justify any residue of betrayal — well, he was not here in the time of crisis. By the time he returns, everyone has become a turncoat anyway.

Still, a leader who shuns the head office for its suffocating accessibility can opt to occasionally move operations to distant parts outside the capital. There, he can be more himself and get away with unscripted silences or pronouncements, with a smaller coterie. He is then truly never out of the loop. He brings it along wherever he happens to be, requiring favor-seekers to follow where he is at the moment, with photo ops for the news.

It’s not clear in these cases when work and vacation overlap. So, the unavailable one is never really absent… or present.

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

Federal but not in name

By Michael Henry Ll. Yusingco

ONE of the very first matters discussed by the 1986 Constitutional Commission was the form of government well-suited for Filipinos after two decades of authoritarian rule. A query by the sublime constitutionalist, Fr. Joaquin G. Bernas, SJ, is particularly relevant to us now, to wit:

“Should we continue a system where practically all governmental power must come from the central government, from Manila? Must we continue the overdominance of Manila over the rest of the country?” [Record of the Constitutional Commission, Volume 1, June 3, 1986, p. 25]

President Rodrigo R. Duterte’s answer to this question was to shepherd the transition of the country to a federal system of government. But the President seemed to have lost the resolve to push this agenda during his term, conceding that presently, there really is no palpable public support for federalism.

And of course, there is that deep distrust with a Congress dominated by political dynasties. Resolution of Both Houses No. 15 hastily passed under the leadership of Speaker Gloria Arroyo is clear evidence that dynastic lawmakers will exploit charter change to further entrench themselves in power.

So, if changing the 1987 Constitution cannot be the answer to Fr. Bernas’ question, is there still hope to break the “overdominance of Manila over the rest of the country”? Is there an alternative path to further decentralizing government? The answer is legislative reform.

Local autonomy is a mandatory prescription of the 1987 Constitution. As per the framers, local autonomy under the charter means “a kind of maximum decentralization, short of federalization.”

This description of how local autonomy is to be understood in the 1987 Constitution denotes that our decentralization framework can approximate a federal set-up. In fact, Article X has provisions that actually exhibit features of a federal system, giving support to the observation by federalism scholars that we already have a quasi-federal set-up under the current charter.

Furthermore, the constitutional parameters mandating for a local government code (Article X, Section 3) allow for the creation of a decentralization framework that could actually function like a federal system, to wit:

“The Congress shall enact a local government code which shall provide for a more responsive and accountable local government structure instituted through a system of decentralization with effective mechanisms of recall, initiative, and referendum, allocate among the different local government units their powers, responsibilities, and resources, and provide for the qualifications, election, appointment and removal, term, salaries, powers and functions and duties of local officials, and all other matters relating to the organization and operation of the local units.”

However, amending the Local Government Code of 1991, the Administrative Code and possibly other special laws would clearly be tedious work for our lawmakers. A more viable, albeit audacious, option is to just enact a new Local Autonomy Law to supplant the current decentralization apparatus.

This new law can approximate a federal set-up by incorporating these three features in the new decentralization system:

1. Regional governance framework.

2. Clear power sharing between the local government and the national government as well as amongst the different levels of local governments.

3. Intergovernmental Relations (IGR) mechanisms.

Notably, this new omnibus local autonomy legislation does not have to be created from scratch. Indeed, the Bangsamoro Organic Law (BOL) can be a good starting point. For reference, these specific provisions of the BOL can be used as benchmarks:

1. Article VII on the Bangsamoro Government for the regional governance framework. For example, the new law can create a Regional Development Authority comprised of all provincial governors in the region. This body shall be exclusively and primarily responsible for development planning for the region with national government agencies having only support roles.

2. Article V on the Powers of Government for the clear allocation of powers between the different levels of government. The point to remember here is that the division of functions must be formulated in such a way that the assignment of accountability is unequivocal.

3. Article VI on Intergovernmental Relations, specifically the creation of an Intergovernmental Fiscal Board to govern an enhanced fiscal decentralization arrangement.

However, precisely because of this substantial devolution of public functions and funds, it is imperative that the new law must have measures to ensure the sustained and significant involvement of the people in local governance. Therefore, it is critical that civil society organizations must have mandatory participation in the regional governance body and in all IGR platforms. Keeping in mind, of course, that the genuine engagement of the community in subnational-level governance is crucial to the success of the new local autonomy regime itself.

Many Filipinos today are utterly exasperated at the fact that despite the mandatory prescription of local autonomy in the 1987 Constitution, the national government still has an omnipresent role in the management of state affairs. This anomaly must be addressed by Congress now even if the administration decides to postpone charter change.

But enacting a brand-new local autonomy law that would approximate a federal structure is but one proposal to address Fr. Bernas’ plea made in 1986. Correspondingly, our lawmakers must make overhauling the current decentralization framework a top priority this year so that other suggestions can be properly heard.

For the 18th Congress to doggedly pursue this particular legislative reform will not only appease the 16 million Duterte voters, but also an entire nation growing ever more impatient with its over centralized government.

And if in the next two and half years our lawmakers do nothing to change the status quo, then we have no choice but to elect more dynasty slayers in Congress 2022. We need lawmakers who will not be afraid to dismantle Imperial Manila.

 

Michael Henry LI. Yusingco, LL.M is a non-resident research fellow at the Ateneo Policy Center of the Ateneo School of Government.

Tax haul from more inshore fishing seen at P24B

THE Bureau of Fisheries and Aquatic Resources (BFAR) said fishermen should make more use of inshore, municipal waters to boost the government’s ability to tax and modernize the industry.

BFAR National Director Eduardo B. Gongona said taxing boats in undisputed Philippine waters could raise as much as P24 billion for the government, which can be used to fund upgrades to the fishing sector.

Ngayon ang battle cry namin (Our battle cry is) take care of municipal waters to take care of the whole fishing industry,” he said during the first “Kapihan at Talakayan Tungo sa Malinis at Masaganang Karagatan,” a briefing on the state of fisheries.

In the first quarter of 2019, fisheries output rose 0.97% year-on-year after contracting 4.58% a year earlier.

“Fishing now becomes not a right but a privilege,” he said.

“We are losing hundreds of billions of pesos, and (the cure) is to protect and manage our municipal waters. Doon na lang muna tayo sa strategy na yun (Let’s focus on that strategy) kasi (because) municipal waters are where the fish habitats are… where the food chain of all the fishes (are),” he said.

Fishermen classified as eligible to ply municipal waters are those using fishing vessels of three gross tons or less, or those who do not require boats.

Municipal waters include streams, lakes, inland bodies of water and tidal waters within a municipality which are not classified as protected areas.

Based on data from BFAR, municipal fishing production in 2017 was 1.13 metric tons (MT), with Region IV-B accounting for 125,265.66 MT, followed by Region V at 125,132.98 MT, and Region VI at 123,888 MT.

He also said fishermen have the potential to earn more in municipal waters.

“Based on our records, there is more money in galunggong (round scad) than in tuna. Of the P139 billion that fisheries have contributed, P39 billion lang ang galing sa (was generated by) tuna, while for pelagic fish like galunggong, with a small percentage of several high value fish, it’s almost P100 billion,” he said.

“We should be discussing how to fill the gaps so that we can catch all the catchable fish in municipal waters. Galunggong only live two years… and if they are not be captured, they will migrate to other places outside municipal waters,” he said. — Vincent Mariel P. Galang

Indonesia deficit to be plugged with produce, auto parts exports

THE Department of Trade and Industry (DTI) is looking into narrowing the trade deficit with Indonesia by exporting more agricultural commodities and car parts.

“President Rodrigo (R.) Duterte is pushing for the Philippines to narrow its trade imbalance with Indonesia. Thus we hope that openness from both countries will result in a mutually beneficial trade relationship between the two countries,” Trade Secretary Ramon M. Lopez said in a statement.

Mr. Lopez discussed trade opportunities with his counterpart, Minister of Trade Enggartiasto Lukita, on the sidelines of the ASEAN Summit. They agreed to follow-up meetings in Indonesia by August or September.

In 2018, Indonesia was the Philippines’ ninth largest trading partner, with exports to the Philippines worth $6.4 billion. The Philippines’ exports to Indonesia totaled $866.2 million.

Indonesia expressed a willingness to import more shallots, bananas, and alcoholic beverages from the Philippines. Indonesian company PT Mayora Indah Tbk, a food company that makes the Kopiko brand of instant coffee, started importing desiccated coconut from the Philippines in April.

Mr. Lopez also proposed to Indonesia exports of auto parts from the Philippines for the Toyota Fortuner SUV, which is manufactured in Indonesia and is one of its top vehicle imports, as well.

The Philippines is also hoping to export the Mitsubishi Mirage G4 and Toyota Vios small cars to Indonesia when the country becomes the regional production center for these vehicles.

The two also discussed special safeguards (SSG) on coffee imports to the Philippines, as ordered by the Department of Agriculture via Department Order No. 6. It cited increased imports of Kopiko instant coffee, affecting domestic coffee manufacturers. — Vincent Mariel P. Galang

DTI launches capacity-building program for Iloilo MSMEs

Department of Trade and Industry (DTI) logo

THE DEPARTMENT of Trade and Industry (DTI) in Iloilo said it launched a capacity-building program for small entrepreneurs at the barangay level.

The Negosyo Serbisyo sa Barangay, which primarily aims to spread awareness of various DTI programs and activities, hopes to benefit 87 barangays from the 17 fourth- and fifth-class municipalities in Iloilo province, according to DTI Provincial Director for Iloilo Ermelinda P. Pollentes.

She added that the DTI plans to cover all 87 barangays by November.

DTI’s Industry Development Division Senior Trade and Industry Development Specialist and Negosyo Center Account Officer Mutya D. Eusores said the DTI is targeting about 100 participants per gathering.

“It’s a half-day event gathering at least 100 residents in a particular barangay. It will be an information education campaign on the services of Negosyo Centers and development partners,” Ms. Eusores said.

Ms. Eusores said the activity will help existing as well as potential micro and small enterprises develop their ventures.

“We will be inviting representatives from other agencies and institutions like microfinance institutions who provide services for SMEs. They can expect consultancy services for those who want to start their businesses and awareness on how they can level up their products and services,” she said.

Ms. Pollentes said it is important to bring DTI’s programs at the community level to encourage more entrepreneurs.

“We go to the barangays because we want them to become entrepreneurs. We want to create an entrepreneurial revolution because that’s the only way we can compete with our neighboring countries. Our (DTI) secretary wanted us to reach more people in the grassroots,” she said. — Emme Rose S. Santiagudo