Home Blog Page 9824

DoH makes pitch for sin taxes to close UHC funding gap

By Gillian M. Cortez
Reporter

THE Department of Health (DoH) said higher sin taxes will be required to fund expanded outpatient benefits and health insurance coverage for poor patients when the Universal Health Care (UHC) Law takes effect next year.

In a briefing Wednesday, Health Undersecretary Rolando Enrique C. Domingo said the imminent rollout of UHC makes it urgent to pass the proposed Package 2+ of the Comprehensive Tax Reform Program because this will be used to subsidize PhilHealth, the government health insurance program, which will move to universal coverage next year, as well as expand the scope of covered outpatient treatment.

“Most of the money that is earmarked for UHC coming from sin taxes will go to primary health care at ang enrollment ng mga kababayan natin na hindi makakbayad sa sarili nila sa PhilHealth kaya (and to enrol all Filipinos who are not able to pay for PhilHealth which is why) we really need that collection,” he said.

Package 2+ will increase taxes of alcohol, heated tobacco products and e-cigarettes.

The proposed budget of the DoH for 2020 is P160 billion, lower than the P254 billion needed in order to effectively roll out UHC next year. The UHC, signed in February, with its Implementing Rules and Regulations (IRR) released earlier this month, authorizes the enrolment of all Filipinos in PhilHealth, greatly expanding the insurance scheme’s responsibilities.

Under UHC, PhilHealth will have direct contributors paying their own premiums, and indirect contributors — the poor — who will be subsidized by the government.

Around P30 billion to P40 billion is expected to be collected under the proposed tax measures, according to Department of Finance (DoF).

The government proposal to raise taxes on sin products is also premised on future savings from long-term health improvement in the general population, in the form of reduced future health complications for smokers and drinkers.

At the briefing, Finance Assistant Secretary Antonio G. Lambino II estimated that the equivalent of 1% of GDP is spent on alcohol consumption.

Aabot sa P211.2 billion ang magiging economic cost ng pagkonsumo ng alcohol sa taong 2020. Ang halagang ito ay katumbas ng one-third ng kabuuang gastos ng bansa sa health care (The economic cost of consuming alcohol is P211.2 billion in 2020. This is more than one third of the total spending on health care),” Mr. Lambino said.

The DoH said that more Filipinos have picked up the habit of using e-cigarettes and vaporizers, many of them young. Mr. Domingo said he received reports of children at the elementary level using these devices.

The DoH released an administrative order (AO) in June that regulates the use, sale, import, and manufacture of e-cigarettes and vapes but the order is currently subject to a court injunction pending challenges to the order’s legality.

The DoH’s position is that using these products is unsafe despite their being allegedly 95% safer than traditional tobacco products.

In other countries, reports have emerged of e-cigarette or vaping product use-associated lung injury (EVALI), with the US alone having more than 1,600 cases.

“We have been getting a few cases that we are going to be reported to our regional offices for validation and we hope to be able to present this to the press very soon,” he added regarding EVALI cases in the Philippines.

Regulation of shipping charges could hurt competitiveness

THE government’s plan to regulate the fees charged by international shipping lines that operate in the Philippines will likely disrupt the trade and negatively affect the country’s competitiveness, according to a study conducted by a University of the Philippines professor.

In a presentation of his “Study on International Shipping in the Philippines” in Manila Wednesday, Epictetus E. Patalinghug, a professor emeritus at the University of the Philippines-Virata School of Business, said the proposed Joint Administrative Order (JAO) that seeks to regulate the fees and charges of international shipping lines that operate in the country “will likely disrupt the trade and affect the competitiveness of the Philippines.”

Mr. Patalinghug noted at the Wallace Business Forum at the Sofitel Hotel that the JAO drafted by Department of Finance (DoF), Department of Trade and Industry (DTI), and Department of Transportation (DoTr) has not been yet been finalized.

The DTI said in a statement earlier this year that the purpose of the order is “to address the reported concerns of the business sector regarding the prevalent high shipping charges and port congestion.”

Mr. Patalinghug’s study found that “there is no collusion in the industry and that the imposition of shipping fees and charges is following internationally acceptable standards.”

The study said the “intense” competition in the international shipping industry has resulted in the oversupply of vessels, leading some shipping companies to “impose origin and destination surcharges on top of freight rates to recover their losses.”

He recommended that shipping companies “may voluntarily post in their websites all-in freight charges, unbundling the basic freight rate from the itemized surcharges;” and JAO, in the short run, “may refocus its thrust… to drafting monitoring rules and guidelines specifying the criteria and procedures to be followed by carriers when they impose surcharges.”

Mr. Patalinghug’s study also noted that the long-term goal of government policy is to “build regulatory capacity in a single agency tasked to promulgate rules and regulations on surcharges that can be imposed by international shipping lines’ service providers.”

He noted that international shipping contributes to increased Philippine trade in the ASEAN region, as well as with China, Japan, South Korea, India, Hong Kong, Taiwan, Germany, and the United States.

“The volume and value of imports and exports grew at an average annual rate above 5% for the 2010-2018 period,” Mr. Patalinghug said during his presentation.

He said port efficiency should also be improved, noting that port infrastructure accounts for more than 40% of transport costs.

“Inefficient ports have higher handling costs,” he said.

He also argued that private entities “should handle the commercial side of terminal operations and management” while the government should focus on “policy-making, regulating environment, safety, and content regulations.”

He said the JAO wants freight rates to include all surcharges and other fees. Citing the World Shipping Council’s position, he said: “Surcharges are really separated by shipping lines from base freight rates to specifically address and recover distinct and identifiable costs separate from basic transport service.”

Mr. Patalinghug also noted that the Association of International Shipping Lines, Inc. has questioned the legal authority of the Bureau of Customs to regulate the imposition of surcharges. He told reporters during an interview that JAO, if pursued, “may face legal issues.” — Arjay L. Balinbin

First year of TRAIN raised P84B in extra revenue, reduced poverty slightly — study

LOWER personal income taxes and increased excise on key commodities generated additional revenue of over P84 billion for the government in the first year of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, while reducing poverty and income inequality “very slightly,” according to a study published by a research institute affiliated with De La Salle University.

The study, “Assessing the Potential Impacts of the Tax Reform for Acceleration and Inclusion and the Build, Build, Build Program,” published by the university’s Angelo King Institute for Economics and Business Studies, found “clear increases in the capital stock which drive economic growth, with the industry sector leading the way and the services and agricultural sectors lagging.”

It said the government had increased capital available to spend on the flagship infrastructure program, known as “Build, Build, Build,” as well as its social programs like rice subsidies, fuel vouchers and unconditional cash transfers — safety-net items implemented to cushion the blow of higher fuel prices resulting from the increased excise tax.

“Results suggest that TRAIN I has prompted additional revenue in social programs and infrastructure spending,” according to the study.

Republic Act No. 10963 or the TRAIN Law, which went into force in January 2018, also raised excise taxes on sugar-sweetened beverages and automobiles.

Simulations conducted by the institute also estimated additional revenue of P136.2 billion in the second year — 2019 — and P184.7 billion and 185.6 billion in subsequent years.

It said the tax hikes added about 0.69% percentage points to inflation in 2018, while contributing less in 2019 — 0.54 percentage points and continuing downward through 2022, as “higher growth would significantly dominate the inflationary effects.”

It said tax reform has “reduced poverty and reduced income inequality very slightly” based on its simulations.

It added that a scenario that held personal income tax rates unchanged was found to possibly generate ”higher government revenue which may prompt higher spending and allocation to additional social programs and infrastructure in addition to higher economic growth and a greater reduction in poverty.” — Beatrice M. Laforga

Joint exploration talks convene in Beijing

THE Philippines and China convened on Monday the first meeting on joint oil and gas development in the West Philippine Sea, the Department of Foreign Affairs (DFA) said Wednesday.

The meeting of the Inter-Governmental Joint Steering Committee on Cooperation in Oil and Gas Development, created during President Rodrigo R. Duterte’s August meeting with Chinese President Xi Jinping, was held in Beijing on Oct. 28.

“The Committee had a candid, in-depth and friendly exchange on cooperation arrangements under the MoU (Memorandum of Understanding),” the DFA said in a statement.

The Committee also “agreed to further push forward communication and coordination on oil and gas development, with a view to achieving progress in accordance with the MoU.”

Mr. Duterte, during his visit, raised the Philippines’ claim over the disputed waters, as affirmed by the Permanent Court of Arbitration.

Mr. Xi, however, asserted that China refuses to recognize the 2016 Hague ruling that invalidated its claim based on the so-called nine-dash line, which is found in maps fencing off much of the sea. The line extends far beyond Chinese territory and skirts the coastlines of other claimants like Vietnam, thereby denying their claims to a broader exclusive economic zone.

The Philippine delegation was led by Foreign Undersecretary for Policy Enrique A. Manalo, while the Chinese panel was led by Vice Foreign Minister Luo Zhaohui.

Also present were Assistant Secretary for Maritime and Ocean Affairs Generoso DG. Calonge and Energy Undersecretary Donato D. Marcos.

The Committee is set to convene for a second time in early 2020.

On Monday, the Philippines-China Bilateral Consultation Mechanism (BCM) on the South China Sea convened for a fifth time to discuss practical maritime cooperation and enhancement of dialogue. The BCM is also scheduled to meet within the first half of 2020. — Charmaine A. Tadalan

Deferred income tax complications under CITIRA

Almost two years after the enactment of the Tax Reform for Acceleration and Inclusion (TRAIN) law, corporations are gearing up for the second package in the government’s ongoing tax reform program. House Bill (HB) No. 4157, or the Corporate Income Tax and Incentives Rationalization Act (CITIRA), was approved by the House of Representatives on Sept. 13. It aims to gradually lower the corporate income tax rate and rationalize corporate tax incentives.

Currently, CITIRA is undergoing deliberations at the Senate and is expected to take effect beginning Jan. 1.

What are the changes in the income tax rates?

Currently, the regular corporate income tax (RCIT) rate is 30%. Entities with special registrations enjoy a gross income tax (GIT) rate of 5% or a special income tax rate of 10%.

Under CITIRA, the RCIT rate shall be reduced by one percentage point every year beginning Jan. 1, until Jan. 1, 2029, thereby reducing the rate to 20% from 30%. Aside from regular corporate taxpayers, the rate shall also apply to offshore banking units (OBUs) and regional operating headquarters (ROHQs) that are currently taxed at 10%, with the ROHQ being given a two-year transition period.

On the other hand, registered activities under the Strategic Investment Priority Plan will enjoy an Income Tax Holiday (ITH) incentive for three to six years depending on the business location. When the ITH incentive expires, they will be subject to a preferential income tax rate (PITR) or enhanced deductions for two to four years. The PITR is 18% commencing Jan. 1, but shall be reduced by one percentage point every two years beginning Jan. 1, 2022, until Jan. 1, 2030, bringing the rate down to 13% from 18%. The PITR shall apply to taxable income, calculated as gross income less deductions (such as direct costs, operating expenses, and other expenses).

A registered enterprise that opts to apply RCIT after the expiration of the ITH may avail of the enhanced deductions, which include: (i) depreciation allowance for qualified capital expenditure; (ii) up to 50% additional deduction on direct labor expense and domestic input expense; (iii) up to 100% additional deduction on research and development, training costs, and infrastructure development; (iv) reinvestment allowance to manufacturing industry; and (v) enhanced net operating loss carryover.

For existing registered activities under ITH, the transitory provision provides a five-year maximum period to avail of the combined remaining ITH period and 5% GIT incentive. For existing activities under 5% GIT, the transitory provision covers the following periods: two years (for activities enjoying the incentives for more than 10 years), three years (for those with incentives between five to 10 years), and five years (for incentives below five years).

After the end of the incentive period, registered enterprises shall be subject to RCIT.

How do changes in the rates affect both current and deferred income tax (DIT)?

Apart from the expected upward movement on the income tax of registered enterprises, OBUs, and ROHQs, as well as the downward impact on the income tax of normal corporations, the new income tax rates will make current and DIT calculations more complicated.

For accounting purposes, the DIT assets or liabilities shall be determined using the tax rates that have been enacted or substantially enacted at the financial reporting date and are expected to apply when the related DIT assets are realized, or DIT liabilities are settled.

Let us assume that the entity has unrealized foreign exchange losses amounting to P100,000, as at Dec. 31, 2019. Based on management evaluation, the unrealized foreign exchange losses will be realized in the next three years. The DIT asset shall be computed as follows:

For a registered enterprise enjoying tax incentives for 10 years and will be subject to PITR of 17% beginning Jan. 1, 2022, the DIT asset shall be calculated as follows:

Based on the current rules, realized foreign exchange losses are not deductible from gross income for GIT calculation; hence, no DIT asset may be declared for 2020 and 2021. However, in the CITIRA, realized foreign exchange losses are recognized as a deductible expense; thus, the DIT asset will be calculated in the year when the entity shifts to the new PITR.

For companies with a fiscal year-end other than Dec. 31, the taxable income shall be computed without regard to the specific date when sales, purchases, and other transactions occur. The income and expenses for the fiscal year shall be deemed to have been earned and spent equally for each month of the period. In case the entity’s fiscal year-end is March 31, 2020, the taxable income from April 1 to Dec. 31, 2019, shall be subject to 30% while the taxable income from Jan. 1 to March 31, 2020, shall be subject to 29%.

Using the same assumptions earlier and using a fiscal year-end of March 31, 2020, the calculations of the DIT asset become more complex, as follows:

More complicated calculations are expected for a registered entity with a fiscal year-end.

The same detailed calculations shall be performed for all other temporary differences.

Temporary differences are differences between the carrying amount of an asset or liability in the statement of financial position and its tax basis. These are deductible or taxable in determining the taxable profit or loss of future periods when the carrying amount of asset or liability is recovered or settled.

With barely two months before the year ends, companies should now start analyzing the impact of CITIRA in their tax compliance and financial reporting. Due to the complexities of income tax calculations that CITIRA may create, management should maintain orderly documentation to support their tax calculations and efficiently time the realization of deferred taxes.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Jane R. Alcause-Fabro is a Director at the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

(02) 845-27 28

jane.r.alcause@pwc.com

Conservatives know the value of thinking locally

By Cass R. Sunstein

WHAT DIVIDES the right and the left? Not 50 years ago, or 20 or even 10 years ago, but right now?

Here’s one speculation: Conservatives tend to be localists; they focus on their families, their towns, their states and their nation. Progressives are far more likely to be universalists who focus on human beings as such.

New evidence strongly supports this speculation, and explains a lot about current political divisions, not only in the US and Canada but also in Europe and elsewhere. It also offers concrete lessons for aspiring politicians, whether they’re on the right or the left.

The relevant studies were conducted by a team of researchers led by Northwestern University’s Adam Waytz and including New York University’s Jonathan Haidt, who has done the defining work on the differences between conservatives and progressives. Their principal finding is that conservatives show a clear preference for tighter and “more defined” social circles, emphasizing “their immediate social groups,” while progressives favor looser circles, and express “compassion toward individuals broadly construed.”

In one of their studies, more than 14,000 participants were asked to say how much they identify with — that is, feel a part of, feel love toward, or have concern for — groups of various sizes, including their community, their country, and “all human beings everywhere.”

Progressives were more likely than conservatives to identify with all human beings everywhere. Conservatives were more likely than progressives to identify with their community and their country.

In another study, more than 3,000 participants completed a “love of humanity” survey, in which they were asked to say how strongly they agree with statements about family, friends, and humanity. For example: “There are times in my life when I’ve felt strong feelings of love for all people, not just the specific people I’m close to.”

The key finding was that as compared with conservatives, progressives had higher numbers on love of humanity, while as compared with progressives, conservatives registered higher on love for family and friends.

But the most intriguing finding, and the wildest, involves neither identification nor love, but rather geometric shapes. More than 4,000 participants were asked which they like better: tight shapes (on-screen dots retaining the form of a triangle) or loose ones (on-screen dots moving around and orbiting one another freely). Assuming that the localist-universalist distinction “reflects a worldview beyond policy interests,” the researchers hypothesized that conservatives would prefer tight shapes and progressives, loose ones.

That’s exactly what they found. As the researchers put it, “the relationship between ideology and preference for geometric looseness–tightness is related to preference for social looseness–tightness.” More speculatively, they suggest that the “more ‘primitive’ preference for looseness–tightness might drive people of different political ideologies toward social circles of different expansiveness.”

Step back and consider that. Divisions between conservatives and progressives, or between Republicans and Democrats, are often thought to turn on economic equality, race and sex discrimination, or perhaps climate change and the environment. But Waytz and his colleagues suggest the divisions run even deeper.

When President Donald Trump rejects “globalism,” and emphasizes instead “patriots,” he speaks to a large chunk of the American electorate — as do Brexiters who favor a British identity over a European one.

Conservative politicians are smart to emphasize their concern for the local and the national over the global — and to criticize their opponents’ priorities. (Note to those who seek to reduce greenhouse-gas emissions: “Global warming” might not be the most effective term.) Even many who do not identify as conservatives might well be moved by politicians who talk about the importance of family, friends, and localities, and left a bit cold by abstract appeals to human beings as such.

It follows that if progressive candidates want to have broad appeal, they should be eager to speak in intensely local terms, and show voters how their policies would help the people closest to them. And when they speak of policies that would help people outside voters’ circles — refugees, say, or asylum seekers — they would do well to enlist the time-honored sentiment that links localism with universalism: “There but for the grace of God go I.”

 

BLOOMBERG OPINION

Philippine Swine Fever

The spread of African Swine Fever (ASF) among local pigs is already wreaking havoc on the local food production chain. As hog producers face losses due to dropping farm gate prices, as a result of a declining demand for pork, food processors are also now calling for a temporary ban on the use of local pork for canned and processed meat production.

But like many other similar situations in the past where the food chain had to grapple with some malady or affliction affecting livestock (mad cow disease, avian flu, hoof and mouth disease, etc.), I am certain both hog producers and meat processors will all eventually survive the ASF dilemma. The ASF scare, in my opinion, even if prolonged, remains temporary.

My bigger concern is a malady that seems to afflict more than just pigs, and cover an area wider than Luzon. And unlike ASF, or polio, or dengue, or other diseases that afflict livestock or humans, this particular malady does not seem to have any cure. Worse, it is something that has been festering for some time, and it seems that nobody can do anything about it.

I call it, Philippine Swine Fever of PSF. Basically, it is the affliction of always making a mess — a pigsty — of things, while feigning helplessness in dealing with the situation, and always waiting for someone else to clean up. This afflicts us all, in one way or the other. But the problem is more pronounced in urban areas, where we have more “pig pens” than in the countryside.

You see, pigs cannot be expected to clean up after themselves. That is simply not in their nature. So, pig pens tend to be messy. Pigs soil themselves. They eat where they urinate and defecate. They don’t groom themselves, nor take baths even when natural water sources are available. In the end, what keeps the pen — and the pigs — clean are those who “care” for them.

In similar fashion, many of us, particularly in big cities, are very much like these pigs, afflicted with our own kind of “swine fever” that makes us act like, well, pigs. Not to insult the lowly porker, but they are what they are. And, in people’s case, while we would like to think that we are better than them, judging from the way we take care of our “pens,” we are, indeed, just like them.

Philippine Swine Fever plagues a big percentage of the urban population, creating “beings” that we can refer to, for simplicity’s sake, as driving pigs, smoking pigs, dog-owner pigs, littering pigs, and mobile-phone pigs. I am still at a loss as to how the PSF “virus” had managed to spread so widely, and so quickly. But, in a way, I guess we are all to blame for it.

Driving pigs are those who hog lanes and parking slots, and who refuse to cede even just an inch in any traffic situation. You usually find them behind you, impatiently honking their horn, and weaving in and out of traffic. A mutation of the virus afflicts particularly public utility drivers, who think that it is okay for them to pick up and drop off passengers anytime and anywhere, and that it is perfectly all right to block traffic for the “sake” of their customers.

Smoking pigs are those who smoke anytime and anywhere they please; who forget that second-hand smoke is worse and more dangerous than vehicle exhaust; and who litter their cigarette butts, mindlessly assuming that there will always be someone else to clean up their mess. They engage in their filthy habit without a care for others — believing that smoking can be equated with rights and freedom. Some hide in dark corners and hidden passages, but they always leave behind a trace of their crime.

Dog-owner pigs are a breed of their own. Some of them believe that it is actually fine to let their pet dogs urinate and defecate anywhere in public, as long as it is outside their homes. Pavements are always the unwilling victim. They also think that parks, playgrounds, grassy knolls, and tree stumps are all public dog toilets — and that “nature” will work on the disposal part. They will let their dogs poop anywhere else but inside their own homes or backyard.

A mutation of this afflicted breed is the type to actually bag the poop, or wrap it in old paper, but leave the thing, still. Perhaps this comes with the mistaken notion that poop, once wrapped, is no longer poop, and that it will magically dispose of itself. Dog poop, in my opinion, is not garbage that should end up in landfills. Rightly or wrongly, my dog’s poop is flushed down the toilet. But many, particularly those with swine fever, would rather let the rains wash them away.

Littering pigs, some of whom are also smoking pigs, are just as messy. The usual suspects are patrons of fast-food outlets, and convenience and sari-sari stores. Where waste baskets or garbage bins are hard to come by, the street and the sidewalk will do. Public roads — and the drainage systems — have become catch basins for plastic food containers, disposable coffee cups, and candy and food wrappers, and cigarette butts, courtesy of these pigs.

The tricky ones are the mobile-phone pigs. They are not as messy as the others also afflicted with swine fever. But, when they reveal themselves, it is hard to miss them. Loud ring tones are usually followed by loud, endless conversations on “unlimited” plans that allow them to go on, and on, and on. Private calls in public places likes restaurants and coffee shops, where they try to talk “above” the noise, and end up making the place even louder and noisier.

The worse variation of this affliction is the silent-type, where the pig is glued to his mobile phone screen and its audio output, closing his eyes and ears to the rest of the world. And while he thinks he is being “tidy” by keeping to himself, he forgets that he is either driving, crossing the street, or walking down the lane practically unmindful of others and everything else around him.

Of course, ours is not the only pigpen-capital in the world. Others may just be as dirty if not worse. For example, Paris residents love their dogs, too. But Paris is also the only city I have visited, so far, where they have pay- or coin-operated portable toilets on sidewalks where people — and maybe pets — can relieve themselves, when necessary. Simply put, we are not beyond hope.

Just as ASF can be licked, eventually, we don’t have to be swine forever. We can opt to live not in pig pens but in clean, orderly, peaceful cities. What can differentiate us from pigs is our ability to clean up after ourselves, and our ability to recognize the need to keep our “pens” clean for ourselves and for others. Even female dogs know when to clean up after their young and groom them. And we thought we are the evolved ones?

 

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

matort@yahoo.com

Energy matters ASEP, CELLS, INIR

Upon the invitation of the Ateneo School of Government, I attended the project launch of the Access to Sustainable Energy Program-Clean Energy Living Laboratories (ASEP-CELLs) in Xavier University (XU), Cagayan de Oro City on Oct. 28. It is an EU-funded project that targets to achieve 100% rural electrification through renewable energy (RE).

The speakers at the launch were XU President Fr. Roberto Yap; Department of Energy (DoE) UnderSecretary Felix “Wimpy” Fuentebella; Program Manager of the Environment and Climate Change, EU in the Philippines, Giovanni Serritela; and ASEP-CELLs’ Senior Technical Advisor Dr. Josef “Jop” Yap. Jop has been my friend since the 1980s at the UP School of Economics (UPSE).

There was a brief press conference then two panel discussions, First about “Towards greater energy security,” and the second, “Building a low-carbon Mindanao.”

During the press conference, I raised two points, on prices and energy security. How the project can avoid proposing and advocating another round of subsidies to RE that can further jack up the monthly electricity bill of all consumers nationwide, and aim instead at lowering prices. And given the intermittency of variable REs like solar and wind, how to ensure energy stability and security, and how to get people to avoid using the really dirty energy — candles and gensets — due to frequent blackouts.

I checked the Philippines’ and other countries’ solar-wind generation. After decades of huge subsidies and other fiscal plus non-fiscal incentives to rich Europe, the share of solar-wind has not even reached one-fourth (25%) of total power generation in Germany.

Among Asians, many rich and emerging economies of the region hardly care about raising the RE components to no more than 0.5% of their total power production — HK, Indonesia, Malaysia, Singapore and Vietnam (see Table 1).

Yesterday, I attended the hand-over ceremony of the Official Integrated Nuclear Infrastructure Report (INIR) Report by the International Atomic Energy Agency (IAEA) to DoE Secretary Alfonso G. Cusi, at F1 Hotel in BGC Taguig City.

Nuclear energy remains taboo and a “scary” option for many Filipinos until now, or they may support it but “not in my backyard” (NIMBY). The technology for nuclear power generation and safety keeps improving such that many rich countries in the world continue to use nuclear power until now (see Table 2).

The speakers in the event were Miko Kovachev, Head of the Nuclear Infrastructure Development Section, IEAE; Ambassador to Austria Maria Cleofe Natividad; Mikhail Chudakov, Deputy Director General of IEAE; and of course DoE Secretary Cusi. Congressman Mark Cojunagco, the main nuke power advocate in Congress, and DoE Assistant Secretary Gerardo “Gerps” Erguiza Jr. also spoke.

Good move, Secretary Cusi. On these, may I mention these two energy-related events next month:

First, The Arangkada Philippines Project (TAPP) Conference on Nov. 21 at Marriott Hotel Manila. Theme is “Turning on the TAP – Tourism, Agribusiness, Power.”

Second, the 13th International Climate and Energy Conference on Nov. 22-23 in Munich, Germany, organized by the European Institute for Climate and Energy (EIKE). The Secretary-General of EIKE, Wolfgang Müller, is my friend. We met at the Heartland Institute’s 4th International Climate Change Conference (ICCC) in Chicago in 2010, then in the 13th ICCC in Washington, DC in July this year.

Conventional energy sources should continue to be used in the Philippines alongside with RE. Secretary Cusi is correct in adopting a “technology agnostic” policy — let more power plants from different sources and technologies be built to further expand our power capacity and reserves. No special privileges and government mandates as much as possible, just give the consumers cheap, affordable, stable, and reliable electricity.

 

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

minimalgovernment@gmail.com

Seeking discomfort for success

After graduating from college four years ago, I started working for Sterling Bank of Asia, Inc. I have been with the same department since the start. Having a daily routine for four years can be exhausting from time to time. Questions began to rise in my mind: So, what’s next for me? Should I leave the company that started my career path, or should I continue to look for my purpose in this company?

Challenging and pushing myself to my limits has always been one of my traits. Somehow, I can never be content because I know that I can still do better. But being an overachiever can have a negative effect. I fear failure. I’ve always wanted to try the training program that the bank offers but, I hesitate for fear that I would fail during the process.

The Center for Learning unit under my company’s Human Resources Management Group is always promoting the Management Training Program. This program allows current employees and new hires to undergo a one-year extensive learning experience that would enhance the skills of the trainees in various units, segments, and departments.

Qualifications for this program include: a rating of at least a “Very Good” score in existing employees’ latest performance appraisal; a good transcript of records and other extra-curricular involvement for fresh graduates; and exceptional working experiences for other new hires. The first step in the application process is to pass written examinations and a panel interview with executive department/group heads. After passing these hurdles, the trainees will undergo classroom lessons, rotational sit-in experiences in different departments, examins, and multiple screening tests by the panel.

More than the promotion to Assistant Manager after passing the program, it is the technical skills development, leadership, and values that everyone will gain that have more weight. On the other side, by helping trainees attain their personal goals, the bank will be rewarded with a workforce that is full of competent people who have a high sense of urgency and responsibility. The common goal of the bank and its employees to offer the best quality of service to customers will be achieved and customer retention is highly possible.

This career change may not be easy. I think being apprehensive is normal but one of the training officers, Celle Paguio, once asked me “Why are you scared? Management will not judge you on your current status or capabilities as an employee, rather, the program will help you enhance your skills and achieve your highest potential. This is a matter of developing, not assessing.”

I then realized that the fear of failing this program is just my own judgment and no one else’s. I am grateful to have colleagues who are very encouraging and supportive of my career path. I promised myself that in 2020, I will grab the opportunity to apply as a management trainee.

The idea of leaving the company because I thought that my job was becoming routine is starting to fade. I believe staying with the company is part of my life’s purpose. Learning how to make my job fulfilling is the challenge. By daring to face my fears and signing up for a whole year of training, I will reach my goals. Going outside my comfort zone will actually bring me success. At the end of the day, hitting two birds with one stone is a great idea — learning while earning a living.

 

Angela Carmela L. Cerdeña is an MBA student at the Ramon V. del Rosario College of Business. This essay was written as part of the requirement in her Strategic Human Resource Management class.

angela_cerdena@dlsu.edu.ph

The madness of crowds

By Tony Samson

IF YOU have no idea what the phrase “Season 82” stands for, you can skip this piece and move to another page for more salubrious topics like the gender wars, the senator’s next boxing match, and the recounting of votes for an election held 42 months ago. It’s the final four of college men’s basketball. No additional details are needed.

I will try to be neutral on this commentary and will not reveal the school that I’m rooting for. Still, just so there are no false attributions or motives ascribed to this corner, let it be known that all my shirts are blue, which is just a personal affinity for shades of azure, cobalt, and cyan; none at all for verdigris or moss, which are not anyway colors identified with outerwear.

Here are some things to expect in the coming games and the madness of crowds these engender. The post-season contest may extend up to six or seven games depending on how the cards fall among four teams.

Wednesday, Saturday, and Sunday afternoons in the coming two weeks will be blocked off by otherwise rational hardworking corporate types as well as doctors (please do not schedule hysterectomies on these days) and lawyers. Meetings will be moved for unexplained reasons. Trips are postponed.

Sports commentators will analyze game strategies and which players to watch out for. Some handwringing angst-ridden writing with an uncontrolled spasm of exclamation points will pop up on social media and some school online pages after one team in the running is eliminated — they’re still peaking but just ran out of runways.

Long-lost friends will come out of nowhere looking for tickets, usually cadging free ones — it’s such a small amount. Do I need to write you a check? These are supporters seldom seen at the games anyway.

For a particular game, the eating places near the venue are clogged two hours before the warm-up of the players. Patrons will be color coded. This early bird syndrome is explained to the uncomprehending as: a 1.) need to find a parking space; 2.) meet up with other ticket holders to discuss the chances of the team; and 3.) have a second lunch after the one eaten at home.

Of the seven games that will complete the season and declare the champion, at least two will be extended to one overtime and three won by less than three points, or one possession. This will engender complaints of biased officiating, against the loser of course.

Personally, I like boring games with precision passing, looking for the open man, taking of high-percentage shots, rebounding and making put-backstage for second-chance points, and then back to the other end for a swarming defense, a block, and forcing a turnover. It’s really cookie-cutter stuff.

We’re not looking for isolated plays and highlight-reel showboating, like a dunk followed by a snarl at the unsuccessful guard by a player from a losing team. After all, watching a game should be like going to the theater. The audience should have an inkling of how it ends. It’s only the performance of the actors and the enthusiasm of the crowd roused to a standing ovation that defines the game.

The singing of the school song, preferably the first one up, caps the day. Then it’s time to go home, maybe pass the Gesu (oops) and wait for the announcement when the T-shirts will be available and watch out for the replay.

Of course the madness doesn’t really end. It’s not supposed to.

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

Why are so many Chileans protesting?

By Tyler Cowen

THE PROTESTS in Chile have mostly come as a surprise, which should caution against simple explanations for them. In fact, caution is warranted whenever the question is how to interpret civil unrest.

In the case of Chile, it has the highest real wages in Latin America, income inequality has mostly been falling, and life expectancy is above average for the region. By Latin American standards Chile has a low rate of crime and a high degree of public order. Chile has had open and honest elections, and peaceful transfers of power, since 1990.

So if you think the protesters are complaining about conditions in Chile — well yes, of course. But you still need a theory of why people in Chile’s neighboring countries, which are generally doing worse along multiple dimensions, are not also taking to the streets. That is difficult to explain, and it suggests that there are multiple and complex causes of the unrest in Chile, and perhaps in many other countries too.

There have been a few attempts to blame the protests on “neoliberalism” in Chile and the history of “the Chicago Boys.” But again, the puzzle is why many in worse-off Latin American nations aren’t even more upset. Neoliberalism, for instance, seems to have allowed Chile to avoid the relative decline of Argentina. A good rule of thumb is that if your hypothesis can’t explain cross-sectional variations across nations or regions, it probably isn’t very well thought through.

Second, a protest against poor conditions is not the same as a protest against inequality. Many Chilean complaints revolve around the pension system, health care, water rights, public transportation, schools and corruption. Are Chileans upset that their transport options aren’t better? That’s a complaint in absolute terms. Or are they upset that they are riding the subway while many of the wealthy have private cars with drivers? That’s a relative complaint.

The answer will depend on the protester, and in virtually all protests around the world there will be those with both motives. But some North American commentators try to equate these two grudges and subsume them all under the heading of inequality. That just won’t wash.

Your interpretation of this question, whether the complaints are absolute or relative, will influence how you try to address the protests. Is the answer to narrow the gap between the rich and the poor? Or is it simply to improve public services?

As a general matter, it is not easy to find systematic correlations between high income inequality and social unrest. In many cases, income inequality leads to an uninvolved or dispirited population, just as in the U.S. many of the worse-off individuals are also the least likely to vote.

So often the response to poor objective conditions has a lot to do with the subjective framing of those conditions. And in that regard it may be useful to point out several relevant features of the Chilean situation.

Perhaps most important, Chile’s democracy has been successful for long enough that expectations are relatively high, and to some extent Chile considers its peers to be the other OECD nations (Chile is the first OECD member in South America). Note that Chile has high income inequality by OECD standards, but not by Latin American standards.

Another observation: Income inequality is often more galling when different economic classes encounter each other on a regular basis. So much Chilean economic and social activity is concentrated in Santiago, just as in South Korea it is in Seoul and in Singapore it is in… Singapore. In all three countries, I believe, feelings of inequality and envy are worse for that reason. By contrast, if you are a lower-middle-class person in, say, Mississippi, you may view the mansion and private plane of Bill Gates as if from a different universe.

I’ve also found Chile to have a relatively tough set of social expectations in terms of class, dress and educational background, and a relatively narrow set of expectations for women. These pressures for conformity may contribute to discontent.

A related point is that Chile has a relatively small percentage of indigenous citizens compared to many other Latin American nations. Therefore many poorer Chileans may, if only subconsciously, see themselves as less successful versions of wealthier Chileans, rather than perceiving themselves as belonging to a different group altogether, with a separate language and customs. I have loved my time in Chile, where I have visited virtually every region, and enjoy the Chilean people. Yet I find there is something a little monotonous and oppressive in its national spirit.

These are all speculations, I realize, and hardly definitive answers. Take them in that spirit — and by the same token, beware of simplistic theories drawn from domestic politics about civil unrest in faraway places.

 

BLOOMBERG OPINION

Ateneo sweeps way to finals

By Michael Angelo S. Murillo
Senior Reporter

THE defending champions Ateneo Blue Eagles earned a direct trip to the finals of Season 82 of the University Athletic Association of the Philippines (UAAP) after completing a sweep of the elimination round with an 86-64 victory over the University of the Philippines (UP) Fighting Maroons on Wednesday at the Mall of Asia Arena in Pasay City.

Displaying their trademark steadiness on both ends of the court throughout the contest, the Eagles were not to be denied of win number 14 in the ongoing tournament to roll straight to the finals and render the semifinals a step-ladder.

Earlier in the day, the De La Salle Green Archers and University of the East Red Warriors ended their Season 82 campaigns on a winning note, defeating the Adamson Soaring Falcons and National University Bulldogs, 89-63 and 79-77, respectively.

Ange Kouame and Thirdy Ravena helped Ateneo get early traction, 9-4, with five minutes lapsing in the opening quarter.

UP though would fashion a charge back in the next minute on the lead of Bright Akhuetie and Kobe Paras, overtaking the Eagles, 10-4.

Momentum swung back and forth after, before the count settled at 21-20, with the Maroons on top, after the first 10 minutes.

The nip-and-tuck race continued in the second frame with the two teams fighting to a score of 31-27 in favor of the Eagles midway into the quarter.

Ateneo though made a strong push the rest of the way and built a double-digit cushion, 45-32, at the half.

At the start of the third canto Akhuetie and Paras tried to jolt the Maroons to a fight back.

But the Eagles kept UP at bay as they further extended their lead to 20 points, 58-38, at the 4:21 mark with Will Navarro making his presence felt on offense.

Ateneo continued to pour it on to build a 65-44 advantage heading into the payoff quarter.

With momentum greatly in their favor, the Eagles came out swinging to start the fourth with Isaac Go on the firing end.

It was a 24-point lead for Ateneo, 73-49, at the eight-minute mark.

UP continued to show fight but with little headway.

The score was at 75-55, and the Eagles still on top, with 3:40 left in the game and it was all Ateneo from there.

Kouame top-scored for the Eagles with 20 points to go along with 12 rebounds and five blocks, followed by SJ Belangel with 14 points, Navarro 13 and Ravena 11.

For UP it was Paras who led with 13 points with Akhuetie and Javi Gomez De Liaño adding 11 points each.

“We know this is a huge accomplishment as far as basketball is concerned, going undefeated. But the job is not done for us. This is just the season before the season,” said Ateneo coach Tab Baldwin of their 14-0 accomplishment, the first in the UAAP in more than a decade.

“It’s going to be harder for us but I’m proud of the effort of these guys,” he added.

EXITING WITH A WIN
In the preceding games, meanwhile, La Salle (7-7) and UE (4-10) exited the tournament with victories.

One-and-done player Jamie Malonzo saved his best for last as he led the Archers to the 89-63 rout of the Falcons, finishing with 34 points, boosted by seven triples, and 12 rebounds.

Justine Baltazar also tallied a double-double with his 14 points and 13 rebounds in a game where La Salle took a lead as big as 30, 66-36, late in the third frame.

Graduating Archers player Andrei Caracut also had 14 markers in his final UAAP game.

For UE, it was another one-and-done in Rey Suerte who showed the way.

Suerte, a star player in Cebu, uncorked 25 points, including the go-ahead basket late in the game, to cap off his short UE career and tow his side to the 79-77 win over NU.

With their losses, meanwhile, Adamson and NU capped off their campaigns with 4-10 and 2-12 records, respectively.