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Palace not fazed should UN probe push through

By Arjay L. Balinbin, Reporter

MALACAÑANG expressed confidence that the call by the special rapporteurs of the United Nations (UN) for an independent investigation into alleged human rights violations in the Philippines will have no impact on the country’s membership in the international body.

There will be “no” impact even if the UN body acts on this call, Presidential Spokesperson Salvador S. Panelo told BusinessWorld in an ambush interview last Monday.

Asked what the Philippines will do in case the investigation pushes through, the spokesman said: “Wala (Nothing).”

The Philippines is a signatory to the UN’s Universal Declaration of Human Rights (UDHR).

“They can do their worst,” he added, “Wala ‘yan. Walang maniniwala d’yan (That’s nothing. No one will believe that).”

Last Friday, 11 UN Special Rapporteurs called on the UN Human Rights Council to conduct an independent investigation into the alleged rights violations in the Philippines.

In a statement issued from Geneva and posted on the official Website of the UN Human Rights Office of the High Commissioner, they said: “Given the scale and seriousness of the reported human rights violations, we call on the Human Rights Council to establish an independent investigation into the human rights violations in the Philippines.”

The Special Rapporteurs and Working Groups, as explained on the statement’s footnote, “are part of what is known as the Special Procedures of the Human Rights Council… Special Procedures’ experts work on a voluntary basis; they are not UN staff and do not receive a salary for their work.”

“Has the UN body responded to it? Wala pa naman eh (They haven’t yet),” the spokesman said.

The experts said they have recorded “a staggering number of unlawful deaths and police killings in the context of the so-called war on drugs, as well as killings of human rights defenders.”

They also noted that only “very few independent and effective investigations have taken place.”

University of the Philippines Political Science professor Maria Ela L. Atienza, in an email to BusinessWorld last Sunday when sought for comment on the matter, said: “The Philippines, while not having a perfect record in the area of human rights, used to be one of the leading and respected voices from the developing world in the UN in the areas of human rights, women’s rights, and environmental issues, including climate change.”

However, she added, this has “changed” when Mr. Duterte came to power in 2016 and launched his war against illegal drugs.

“The government, including all secretaries appointed in the Department of Foreign Affairs, has defended the war on drugs,” Ms. Atienza said.

She also noted that the President has “lambasted the UN and human rights advocates and accused them of interfering in the nation’s internal affairs.”

CoA warns OVP, LGUs over funds for local projects

THE COMMISSION on Audit (CoA) has called out the Office of the Vice-President (OVP) to be stricter in monitoring funds disbursed to local government units (LGUs) from its budget.

In its 2018 annual audit report, CoA cited some LGUs for the non-issuance of official receipts (ORs) and failure to submit quarterly reports for the funds transferred by the OVP.

CoA said over P44.66 million of the P80 million total budget for locally-funded projects were transferred to 29 cities and municipalities.

Of the 29 LGUs, 19 cities and municipalities did not submit official receipts of the transferred amount, totaling more than P28 million.

CoA pointed out that it was a violation of the memorandum of agreement between the OVP and LGU, which provides that the latter shall “issue an Official Receipt for the amount received from the OVP.”

“Instead of OR, it was noted that only a Certification from the recipient-LGU was given to the OVP, who accepted this Certification, though it was not the documentary requirement prescribed,” said CoA.

The state auditors also said the OVP “did not diligently follow up the submission of ORs, which is imprudent for a Source Agency (SA), whose fund is being disbursed.”

“It could mean that the agency is not keen or interested in ensuring the legitimacy of its projects,” CoA said.

Further, the report said only 12 locally-funded projects amounting to P19.6 million were completed last year.

“The agency needs to observe and oversee that funds were utilized as intended. The absence of the liquidation reports and quarterly reports cast doubt on the accuracy and regularity of disbursements of the funds,” said CoA.

CoA also questioned the procedure of the OVP in the selection of recipient LGUs.

“In the discussion, there are gray areas that taint the impartiality and fairness of the screening process i.e. Were there surveys made? Were the proposed areas chosen from a systematically-gathered information?…how did the ACCD (Area and Constituency Concerns Division) and the Local Affairs and Special Projects Division) [of the OVP] rank the cities and municipalities?,” said CoA. — Vince Angelo C. Ferreras

Romero still richest solon; ‘poorest’ is Kabataan’s Elago

REPRESENTATIVE MICHAEL L. Romero of 1 PACMAN Party-list remained the richest member of the House of Representatives based on the summary of Statements, Assets, Liabilities, and Net Worth (SALN) of congressmen as of December 2018.

Mr. Romero, owner of F&S Holdings, Inc. which recently increased its stake in the operation of Philippines AirAsia, Inc., recorded a P7.858 billion net worth, up from P7.291 billion in 2017.

The tycoon-lawmaker was followed by Negros Occidental 3rd District Rep. Alfredo B. Benitez with a net worth of P1.017 billion.

Others in the top 10 were: former First Lady and now Ilocos Norte 2nd District Rep. Imelda R. Marcos, P923.8 million; Quezon City 4th District Rep. Feliciano R. Belmonte Jr, P864.8 million; Manila Teachers Rep. Virgilio S. Lacson, P793.9 million; former mayor and now Marikina 1st District Rep. Bayani F. Fernando, P748 million; Davao del Norte 2nd District Rep. Antonio D. Floreindo, P714.6 million; Batangas 6th District Rep. Vilma Santos-Recto, P555.3 million; Leyte 1st District Rep. Yedda K. Romualdez, P487.6 million; and House Speaker and Pampanga 2nd District Rep. Gloria Macapagal-Arroyo, P479.5 million.

Kabataan Party-list Rep. Sarah I. Elago stayed as the “poorest” lawmaker with a net worth of P85,400. — Vince Angelo C. Ferreras

Officials underscore freedom from poverty on 121st Independence Day

AS THE Philippines celebrated its 121st Independence Day on June 12, which marks the end of Spanish colonial rule, the country’s officials highlighted the continuing work needed to achieve freedom from poverty and social equality. In his message, President Rodrigo R. Duterte asked the public to commit themselves to the dream of Filipino heroes and martyrs of a “truly independent” Philippines. “Let us commit ourselves to ensure that their sacrifices have not been in vain and that their dream of a truly independent Philippines — whose people live freely in a secure, stable and prosperous society — will be achieved within our lifetimes,” said Mr. Duterte, who commemorated the day at a military camp in Lanao del Sur. For her part, Vice-President Maria Leonor G. Robredo, who led the ceremonies at the Rizal Park in the capital, said public servants and all Filipinos to this day have the responsibility to fight for and build a country where each citizen has an equal opportunity to be part of development. “…na lahat ay kabahagi at walang maiiwan. Na lahat ay may pantay-pantay na oportunidad sa pag-unlad,” she said in her speech in Filipino. Finance Secretary Carlos G. Dominguez III, who attended the Rizal Park event, tweeted: “As we mark the 121st anniversary of our nation’s independence, may we continue to work as one in instituting game-changing and transformative reforms that will make every Filipino free from the worst form of oppression, which is poverty. There is much to celebrate in terms of our economic gains that we have accomplished so far, but much more needs to be done to fully realize our goal of achieving a decent, comfortable, and healthy life for every law-abiding Filipino.” — with a report from Arjay L. Balinbin

PACC clears Piñol from corruption allegations

THE PRESIDENTIAL Anti-Corruption Commission (PACC) announced on Wednesday that it has cleared Agriculture Secretary Emmanuel F. Piñol from allegations of corruption. In a statement, the PACC said that through its Resolution No. 14, series of 2019 dated June 10, it has “cleared” the Agriculture chief and “found no evidence pointing to unexplained wealth.” The resolution was approved by the Commission en banc after a “seven-month full lifestyle check” on the official. The PACC said the investigation was conducted with the aid of its partner agencies, including the Anti-Money Laundering Council (AMLC), the National Bureau of Investigation (NBI), Land Transportation Office (LTO), Land Registration Authority (LRA), and the Philippine National Police, Civil Security Group, Fire Arms and Explosives Office (PNP-CSG-FEO), among others. “It should be made public that after Secretary Piñol volunteered to undergo a full lifestyle check, other officials of the Duterte administration have followed suit and are now undergoing probe by the PACC,” it added. — Arjay L. Balinbin

DoJ to seek hold departure order vs suspects in ‘ghost’ dialysis case

JUSTICE SECRETARY Menardo I. Guevarra yesterday said the Department of Justice (DoJ) will apply for a hold departure order (HDO) against all accused in the “ghost” dialysis claims once the case is filed in court. “As soon as the information is filed in court, the prosecution will file an application for the issuance of an HDO against all accused,” Mr. Guevarra said in a text message. The National Bureau of Investigation (NBI) on Tuesday filed criminal complaints of estafa and falsification of documents against Bryan Christopher W. Sy, one of the owners and vice president of WellMed Dialysis and Laboratory Center Corp. (WellMed), and nine others over the questionable dialysis treatments claimed from the Philippine Insurance Corp. (PhilHealth). Included in the complaints are whistleblowers Edwin C. Roberto and Liezel Aileen Santos and seven other WellMed officials. The DoJ has considered submitted for resolution the complaint against Mr. Sy and the whistleblowers after undergoing inquest proceedings. The whistleblowers, according to their legal counsel Harry L. Roque, Jr., will apply to be placed under the witness protection program. — Vann Marlo M. Villegas

Deaths due to dengue in Western Visayas more than double to 48 in Jan-May

DENGUE CASES in the Western Visayas Region rose to 8,613 in Jan-May this year from 2,886 in the same period 2018, with deaths more than double at 48 from 23, based on the data from the Department of Health-Center for Health Development (DoH-CHD)-Region 6. “We recorded a 198 percent increase in the number of dengue cases this year with Iloilo province leading the highest recorded cases at 2,516 and 12 deaths followed by Negros Occidental has 2,277 with 17 deaths,” said Maria Lourdes Monegro, DoH-CHD entomologist. Capiz, with 1,245 dengue cases and seven deaths ranked third, followed by Aklan with 1,019 and five deaths. Iloilo City had 555 cases with four deaths; Bacolod City, 433 with one death; Antique 285 cases with two deaths; and Guimaras with 187 cases. Of the deaths, 31 were children aged one to 10. Officials again appealed for public participation to curb dengue cases, especially with the rainy season coming. “The 4S program, which stands for search and destroy mosquito breeding places, self-protection, seek early consultation and say yes to fogging or indoor and outdoor spraying, are cost effective measures that we can do and can be applied to our barangays,” said Elvie Villalobos, head of the DoH-CHD 6 Infectious Disease and Environmental and Occupational Health Cluster. As part of the campaign to reinforce dengue awareness, the DoH and the Iloilo City government will celebrate the ASEAN Dengue Day on June 14 at the Diamond Jubilee Hall after a caravan around the city. The Philippine Red Cross Iloilo chapter will also conduct a blood-letting activity on the same day, and the collected blood will be donated to dengue patients. — Emme Rose S. Santiagudo

DRRMO recommends 15 areas as no-build zones in Davao City; existing structures to be demolished

MEMBERS of Task Force Davao help residents during a flooding due to heavy rains in early November 2018. — EASTMINCOM PHOTO

THE DAVAO City Disaster Risk Reduction and Management Office (CDRRMO) has identified 15 areas that are highly prone to floods and landslides, and will recommend for these to be declared as “no-build and habitation zones.” In a press statement from the city government on Tuesday, CDRRMO chief Alfredo D. Baloran said his office has already prepared its recommendation to manage risks and prevent loss of lives and properties. “The City Disaster Risk Reduction Management Council already adopted our recommendation, we will make a resolution to be endorsed by the City Council for implementation,” Mr. Baloran said. He added that all existing structures inside the no-build and habitation zones will be demolished by the City Engineer’s Office. “We are doing this to ensure that they will be safe from calamities. It is better if we will adopt mitigating measures. Those areas are dangerous for people, especially during the rainy season,” Mr. Baloran said. He added that before the demolition is implemented, the city housing unit will conduct a survey of all residents living in the identified areas to determine if they qualify for housing relocation.

IDENTIFIED AREAS
The identified flood-prone areas are: Dike, Phase 3, NHA Bangkal in Barangay Talomo; Purok Lugot, Suraya Homes in Cabantian; Purok 23, Kuot, Davao Impress Subdivision in Barangay Sasa; San Juan Village, Bangkal in Barangay Talomo; Taal Riverside in Talomo and New San Isidro in Buhangin. The landslide-prone areas are: Purok Damayan in Barangay Buhangin Proper; Old Smokey Mountain in Barangay Matina Pangi; Quinones Compound in Barangay Matina Crossing; Purok 29-B, SPDA in Barangay Panacan; Phase 1, Greenland Subdivision in Barangay Cabantian; Purok 46, San Vicente in Barangay Talomo; Phase 3, Wellspring in Catalunan Pequeño; Abrazaldo Compound in Matina Crossing; and Sitio Gulay, Sincere Subdivision in Catalunan Pequeño.

Nation at a Glance — (06/13/19)

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 — (06/13/19)

MBAs can make a positive difference

For the first time, Harvard Business School and the Booth School of Business at the University of Chicago have not increased tuition for their MBA programs. Applications to the US business schools have been dropping due to online alternatives and more specialized courses. Worse, many international applicants have been scared off by anti-foreigner sentiment in many parts of the US. Some business schools, such as the University of Illinois Gies College of Business, have gone further and shut down their on-campus MBA programs altogether.

While the MBA program remains generally popular, it has been heavily criticized. Action learning pioneer Reg Revans of Manchester University has complained that the emphasis on technical skills and theoretical frameworks in the US model of the MBA program leads to “moral bankruptcy assured” — referring to the initials of the program. Revans had tremendous foresight because decades later, many of the spectacular business scandals, such as Enron at the turn of the century and the bank collapses leading to the Global Financial Crisis, were overseen by MBAs.

Peter Navarro, Professor at the University of California-Irvine, critiqued the top MBA programs for lacking ideal features that would produce better business leaders such as: a curriculum built on a foundation of multidisciplinary and integrative problem-solving; experiential exercises aimed at real-world problem-solving and student-centered learning; emphasis on the learning of soft skills such as communication, leadership, negotiation, interpersonal adeptness, and teambuilding; a global perspective and information technology focus; and ethics and corporate social responsibility.

In my observation, most MBA programs use paper case studies to train students to analyze management problems and propose solutions. As a result, MBA graduates learn to argue their recommendations based on “facts” described in the paper case. Similarly, the final requirement of the MBA is often an analysis of a company based on publicly available information and then a set of recommended strategies. This training approach based on static cases may help develop students’ analytical and argumentation skills when dealing with paper-based information. However, without training in ethics, interpersonal skills, and real-world problem-solving, MBA graduates can be weak in introducing practical needed change in actual organizations.

At De La Salle University, we redesigned the MBA program several years ago to try to avoid the weaknesses of traditional MBA programs. We aligned the program more closely with the university’s mission to be a force for social transformation in terms of human development and social justice through its graduates.

We orient students on the ethical mandates for business social responsibility enunciated in the Constitution, business law, and Catholic social principles. We train them on a Code of Ethics for Business that specifies their moral duty to promote human dignity and the common good. The Code mainly calls on students to avoid conflicts of interest, treat others with respect and dignity, preserve the environment, offer socially positive products and services, and be transparent in reporting company performance. Most, if not all of the major business scandals of the past two decades, have resulted from violations of these tenets.

We changed the final requirement of the program from merely recommending strategic actions that may be proposed to a company to, instead, actually implementing action within their own organizations. This insider action research project, as it is called, requires the student to collaborate with people within the organization to confront a real and important organizational problem. Using scientific papers and practical knowledge from experience, the collaborators plan and implement needed changes. They then evaluate the outcomes of their change efforts and reflect on how they have personally and professionally developed from having worked on the project. Finally, the student derives an experiential theory that can help others to better understand how similar issues in other organizations may be addressed.

Our students have pursued many worthwhile insider action research projects. For example, a BPO agent worked with his team to lessen the chronic body pains they experience at work. They proposed and implemented wellness and ergonomic activities and more flexible work schedules. Their work comfort improved significantly, but they identified additional needed work.

A CFO dealt with strong criticisms of the budgeting process from budget units that had difficulties complying with submission requirements. Through empathetic face-to-face dialogues, the CFO redesigned the budgeting process to better meet the needs of the budget units while meeting the financial planning needs of the company as a whole.

An MBA degree does not guarantee successful business leadership in the workplace. But we are hopeful that business leaders grounded in social responsibility, reflection, collaboration, and scientific problem-solving can better address the dynamic challenges of the business world.

 

Dr. Benito L. Teehankee is the Jose L. Cuisia Professor of Business Ethics and Coordinator of the Business for Human Development Network at De La Salle.

benito.teehankee@dlsu.edu.ph

Right tool for the job

If you have car engine troubles, do you bring it to a vulcanizing shop? If you have leaky plumbing, do you call a mason to “cement” the job? Or, if you need to tighten a screw, do you get a hammer? I guess the answers to these questions are pretty obvious, right? Common sense dictates that you use the right tool for the work required.

Economics, in a way, can be seen in a similar light. A wise man I once knew remarked that even economics, to an extent, was common sense. No need to complicate concepts like buying low and selling high, or adjusting prices depending on supply and demand, or matching opportunity with need. Even an unschooled farmer will have the sense to sell his goods at the highest price.

And this brings me to one of the issues of the day: Manila’s airport congestion. My apologies if I oversimplify the issue, but this I may do only to show a point. I do not claim to be an expert in airport operations of flight management. However, I am a user or beneficiary of both, and I believe that to an extent, even end-users like me have a point of view.

To my mind, an airport is basically a place where aircraft can take off and land. In short, the runway is the meat, everything else is gravy. More than 20 years ago I had the pleasure of visiting the scenic town of Bongao, Tawi-Tawi. The Fokker from Zamboanga City landed on the airstrip, dropped us off, picked up passengers, and then flew away. A runway and a small terminal were enough. Perhaps this may no longer be the case to date, but at the time, it was the right tool for the job.

Since after the war, from 1949 onwards, we have had two runways for all commercial flights, general aviation flights, as well as Air Force flights to and from the Manila airport. This was after international flights were moved to the Nichols Air Base area (now Villamor) from the Nielson Tower in what is now known as Ayala Triangle Gardens in Makati City.

Seventy years after, we still have only two runways in operation at the Manila Ninoy Aquino International Airport (NAIA) — but now serving four passenger terminals and all civilian and military flights out of the metropolis. In 1949, the Philippine population was estimated at about 19.7 million. Now, it is about 108 million. In 2018, all terminals at NAIA reportedly handled a record-breaking annual passenger traffic of over 45 million.

What does “simple” economics tell us about this situation? Do we need more airport terminals? Yes. Do we need more efficient airport operations? Without doubt. But, do we need more runways? This, to me, is the real issue and should be the priority. NAIA desperately needs more runways and additional taxiways that are wide enough to allow for safe “wingtip to wingtip clearance” for the largest-capacity aircraft.

A third and fourth runway will help ease congestion at NAIA, but building them is easier said than done. Expropriation in Pasay or Paranaque cities, or reclamation at Manila Bay, will be difficult to pursue. But those are the only ways one can acquire more space for new runways. An option is to close NAIA, flatten the place, and build anew but making better use of space available. This will be difficult, painful, and perhaps unnecessary.

If we cannot build more runways at NAIA, which does not appear to be feasible at the moment, then we should decongest NAIA by looking for a nearby “third runway.” In the regard, I believe the government’s decision to tap the Atienza Air Base at Sangley Point in Cavite City for general aviation is a step in the right direction. By sea, the distance between NAIA and Sangley is about 10 kilometers. By land, it is about 30 kilometers.

Sangley actually has the potential to service commercial flights, but this will require “updating” the runway and building a new terminal as well as parking facilities. More planning is required for this. But while “converting” Sangley will also take time and resources, I believe this to be a more practical approach to “expansion” rather than “expanding” NAIA itself. For one, working on Sangley will not affect NAIA operations.

Sangley need not be fancy. Take the case of an aircraft carrier, which is a “floating airport” that consists mainly of a runway, hangars, and a control tower. Without an operating runway, or a damaged catapult, an aircraft carrier is effectively dead in the water. So, the runway is the most important element. “Have runway, can fly” should be the objective here.

I have been on the US Navy amphibious ship USS Bonhomme Richard. Sized about two-thirds of a regular aircraft carrier, the ship secures the Asian region with its load of helicopters, fixed-wing aircraft that take off and land on their own power, amphibious as well as armored vehicles, heavy equipment, and about 2,500 Navy crew members and a Marine expeditionary force.

The ship has a 15-bed intensive care unit and a 44-bed hospital ward. It feeds about 2,500 people with four meals daily. It runs on steam, with boilers running on the same jet fuel used on aircraft on board. The ship also has its own ability to recycle the condensation from its propulsion system and at the same generate potable water for drinking and cooking and for sanitation use, among others.

While offshore, the ship directs air traffic and flight operations. It caters to helicopters and fixed-wing aircraft in need of servicing and refueling. In short, it is a floating airport that can be easily deployed to where there are deep enough waters, and from its belly it can deploy amphibious vehicles and landing craft for a beach landing. One can only imagine how efficient crew and operations must to effectively run a ship like the Richard.

This is not to say that Sangley can and should be operated as such. However, there are lessons to be learned from aircraft carriers and Landing Helicopter Docks or LHDs like the Richard. Building new airports, additional ones and not replacements, are necessary. But while new facilities are still to be built, improving existing operations will be crucial to running a “tight ship.”

The Sangley option is significant. Improving Clark airport will also be crucial. The Bulacan airport is the long-term option. Once Sangley and Clark are in order and Bulacan is operational, then long-term plans for NAIA can be put into effect. Meantime, we need to focus on providing transportation links to Cavite, Clark, and Bulacan from Metro Manila.

Of course, all these options will take time. And will come at a cost. Nobody but nobody, even the government, will build for free. Users like me should be prepared to pay fees for such efficiency, or must be ready to pay more in taxes. And while the government can borrow to fund these projects, we should always be conscious of the fact that a government loan today is a tax tomorrow.

To my mind, any “airport” can sufficiently operate even without a large, well-appointed terminal as long as it has enough runways for aircraft to safely but quickly takeoff and land. Much like an aircraft carrier. So, if this means that Sangley can be operated for commercial flights even in a spartan manner, then we should consider this.

Well-appointed terminals and lounges or even “tubes” can be foregone. Duty-free shopping and recreational areas can be dispensed with. Spartan accommodations will do, as long as we move people quickly and safely. Comfortable, airconditioned buses/coaches can be used to ferry people from NAIA to Sangley. On the bus, during the drive, passengers can already be processed by ambulant Immigration personnel.

Initial customs and security inspection of baggage can be done curbside at NAIA prior to riding the bus, and can be tagged as pre-inspected. Then they will be loaded into a separate truck or bus dedicated to air cargo. Baggage and cargo can be “reprocessed” on site before they are loaded on board. Upon arrival at Sangley, “processed” passengers disembark from the bus at the tarmac and get on stairs straight into the plane.

This is a far-fetched scenario. Perhaps an oversimplification, but not altogether impossible. But under the theory “have runway, will fly”, this approach for Sangley remains to be a “budget” option for passengers — and a government — that are willing to trade comfort and luxury for efficiency and a quick and safe way to fly.

 

Marvin A. Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

Break up big tech or not, society should know the technical implications for the Internet

By Rajnesh Singh

AGAINST the backdrop of growing unease worldwide about the power of big technology companies, whether governments should break them up has become a common talking point.

US Democratic presidential contender Elizabeth Warren threw a spotlight on the issue in March with a proposal that would lead to the breakup of big Silicon Valley platform firms, including Google, Amazon, and Facebook.

“You can be the umpire in a baseball game, or you can have a team in the game,” Warren explained this in terms of a baseball analogy, “but you don’t get to be the umpire and have a team in the game.”

The analogy drives the message home but obscures the fact that the technology giants’ products are wildly popular all around the world. So many of us use a similar set of Internet services every day to text, search, or shop, among other online activities.

Today, a handful of actors play a significant role in our increasingly connected societies. Besides the Silicon Valley firms, Tencent and Alibaba are also growing their dominance, particularly in the Asia-Pacific region, and across multiple dimensions including payment services.

The debate on the influence of these companies has typically focused on the economics, namely how they could buy out potential competitors and use their dominance to move into other lines of business. Other arguments include worsening income inequality, weakening workers’ bargaining power, and slowing innovation. But, this is not just about big tech; it is also about the Internet.

As the markets concentrate, it is time society ponders what it means for not only competition and consumer choice, but also the technical aspects of the Internet.

The technical implications for the Internet could be real and are too important to ignore. We should be clear-eyed about the possibility that a more centralized Internet could impede its resilience, openness, and diversity — properties that have made the Internet thrive.

These platforms run on what we call total service environments. They have evolved into providing a range of communications, entertainment, and productivity and lifestyle services and tools designed to be “one-stop shops” on the Internet. To keep users engaged and continue to grow revenues, they expand into new service and content areas. They also gain market share in their respective markets due to data control and network effects.

In fact, our continuous research into the area, spearheaded by our flagship Global Internet Report 2019 (https://future.internetsociety.org/2019/), shows trends of consolidation are taking place not only in applications, but also in access provision, such as Internet Service Providers (ISP) and mobile network operators, and service infrastructure, such as naming and addressing management and hosting and distribution of content.

The effect is that the open, collaborative, and interoperable Internet is increasingly influenced by a small number of large companies, and organizational scale and market share play a significant role in the development and deployment of the open technical standards on which the Internet depends.

We observe the growing use of largely platform-driven application programming interfaces (API) puts more of the Internet’s functionality and interoperability in the hands of powerful ecosystems, whose interests may not align with those of others.

Finally, future innovation, services, and applications may depend on the availability of a small set of proprietary platforms and services, rendering those applications less resilient, reliable, and capable of supporting further innovation.

There are clear benefits to operating at scale, including how platforms can greatly benefit the user by providing services that offer seamless experiences. However, it is unclear what the impact is on innovation, entrepreneurship and, importantly, competition.

We believe that the Internet and the important properties that make the Internet such a powerful platform empower users with certain abilities. These abilities underpin the social value that the Internet provides to people, and includes the ability to connect, speak, innovate, share, choose, and trust. Some of these are bound to be more susceptible to impact from consolidation if this trend continues unabated.

None of this comment is to urge policymakers to regulate, which in turn could lead to consumers potentially not being able to use the popular products they appreciate. It is important that we realize measures against consolidation could create unintended consequences both for markets and the Internet.

It is why before society decides if, or how, it should regulate big tech, we should further the understanding of how an increased consolidation may shape the technical future of the Internet — and what we need to do to preserve it.

 

Rajnesh Singh is Regional Director of the Asia-Pacific Regional Bureau at the Internet Society.

@RajneshSingh