August 29, 2015

Google rejects E.U. antitrust allegations as flawed BRUSSELS—Google rejected on Thursday a complaint by Europe’s competition watchdog that the Internet giant is abusing its dominance in Web searches to promote its own products.

The European Commission (EC), the European Union’s executive body, alleged in April that Google has improperly favored its shoppingcomparison service in its own search results, in a high-stakes case that could lead to billions of euros in fines.

Google Senior Vice President Kent Walker said in a blog post that the commission’s conclusions “are wrong as a matter of fact, law and economics.” Google said it submitted a rebuttal of the EC’s case of around 150 pages with economic, data and legal analysis to back up its position.

The commission aims to ensure fair competition in the 28-nation EU, and it is concerned about Google’s dominant market position. The company processes about 90 percent of the searches in the EU, compared to 66 percent in the US.

Critics contend that online consumers are unable to see compelling alternatives from other merchants who either refuse or can’t afford to pay to be catapulted into a high spot in Google’s shopping rankings. Google charges merchants to be in its shopping results, unlike its general index that logs links from all web sites. AP

Mobile messaging and social media Pinterest and Instagram usage doubled since 2012. Growth on other platforms is slower.

% of adults who say they use the following social media platforms Facebook 67

Pinterest

15 ’12

Instagram

Linkedin

Twitter

71 71 72

’15

21

28 31

’12

13 17 ’15

’12

26 28

’15

20 22

’12

28 25

16 18

23 23

’15 ’12

’15

Source: Pew Research Center Graphic: Staff, Tribune News Service

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U.N. Media Award 2008

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DOMESTIC LIQUIDITY GREW 8.5% IN JULY, GIVING BSP ANOTHER REASON TO RETAIN INTEREST RATES

M3 level supports keeping of rates T

By Bianca Cuaresma

he amount of cash circulating in the financial system and the kind of growth it is showing have extended a measure of confidence among monetary officials not to tamper with the rate at which they borrow from or lend to banks at present and over the immediate horizon.

INSIDE

This was indicated in latest data released on Friday by the Bangko Sentral ng Pilipinas, in which domestic liquidity growth—the broadest money measure known as M3 among economists—grew by 8.5 percent in July, or slightly lower than in June, when this grew by 9.3 percent.

Its continued growth allowed domestic liquidity to aggregate P7.7 trillion in July that regulators attributed to sustained demand for credit.

“The bulk of bank loans during the month was channeled to key production sectors, such as real-estate

THE DIGITAL DISCONNECT God’s powerful hand

D

EAR God, You sent our Holy Guardian Angel into this world to keep us safe all the time.

To guide and protect us at all cost. He is Your voice speaking to us in our conscience to have clearer decisions to make. He is our guiding hand all day and night. He is Your powerful hand helping us to have a good fight against evil things. He helps us and lead us to Your Kingdom. Amen.

DAILY PRAYER, VIRGIE SALAZAR AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Life

SOMETHING LIKE LIFE: A WORLD IN NEED OF A

LITTLE MORE COMPASSION »D4

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Saturday, August 29, 2015

D1

THE DIGITAL DISCONNECT

In relentless pursuit of ‘connecting,’ we miss out on each other

J

B T B The Seattle Times

UST as I set foot into a busy intersection on Fifth Avenue in downtown Seattle, a sport-utility vehicle appears in the corner of my eye, and it’s not slowing down.

As it speeds closer to the crosswalk, I notice the woman driving it has a mobile phone held to her ear. Does she even realize she’s running a red light? Suddenly, as if an alarm bell has gone off in her head, she slams on the brakes and stops so close to me I could reach out and tap on her driver’s-side window. We lock faces. She’s in shock. Her eyes widen with an “Oops, my bad” contrition. I’m peeved. And I flash back a glare

that retorts, “Yeah, damn right it is.”

Funny thing is, in this whole 10-second episode, the driver never takes the phone from her ear. Satisfied she hasn’t mowed down a pedestrian, she waves demurely, continues chatting and speeds right off.

If this incident was just a road-safety matter, that would be bad enough. After all, phoning and texting while driving are epidemic in this country, with cities and states either passing laws or pushing to strengthen laws aimed at people who do it.

The danger on our roads is clear.

The much bigger question is whether something profound is happening with the way we use technology in our everyday lives.

We’re entering uncharted territory as phones and

computers get smarter and tools like Facebook and Twitter take their place on the social-networking landscape next to cafés, the public square and cocktail hour. A recent Harris Interactive poll found that the average Internet user spends 13 hours online each week, e-mailing not included. A decade ago, the number was almost half that. According to a report from the University of California at San Diego, the average American consumes a brain-exploding 34 gigabytes of content and either sees or hears 100,000 words each day, from the Web to TV to text messages.

The wave of new traffic laws is but one symptom of an uneasy feeling that something’s out of balance in a

C  D

life

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Saturday, August 29, 2015

ROCKIN’ THE BLUES Denim button-down shirt paired with denim

MIXED PRINTS Plaid shirt layered over a star-printed denim dress.

SPORTY VIBE Statement hoodie paired with blue jeans.

GOING FOR CUTE AND ADORABLE

K

NOWN for its stylish interpretations of emerging and current trends, premium Spanish brand (Sfera) goes for incredibly cute and adorable this time for its collection for babies and kids, underscoring the fact that one can never be too young to be fashionable.

(Sfera’s) new collection for Kids & Babies is all about cute cuts, pretty and playful prints, and youthful colors, as well the attractive prices the brand has been known for.

There are whimsical pink tulle skirts and floral leggings, prints-charming tees, and graphic denim dresses for girls. Boys, on the other hand, look cool and

casual with striped shirts and checkered shorts. Babies are not far behind on the style-o-meter with brightly colored overalls and hoodies.

Fun accessories complete the look: hot pink satchels, smart sneakers, and sensible belts.

The Spanish brand opened its first store in Asia at the premium SM Makati in September 2014. Carrying a vast number of clothing lines for men, women, kids and babies, as well as accessories, shoes and bags, and swimwear, (Sfera) has found its foothold in the local fashion scene by way of superior clothing quality in chic styles and reasonable prices, as well as the loyal customer base that continuously flock to its flagship store for wearable but fashionable pieces. n

D3

New moms quickly learn to be ready for life’s unexpected messes. Feeding and playtime are joyous moments but they also come with soiled garments and messy bibs. Moms know that keeping their babies adorably clean and fresh all day means they need to wash load after load of cloth diapers, baby garments and sheets.

However, commercial laundry detergents are not “babyfriendly.” Most contain harsh chemicals that can contribute to skin allergies and rashes. which is why moms should choose a laundry wash that does not contain any ingredient that might irritate baby’s delicate skin.

Thankfully, trusted natural brands like Tiny Buds (www. tinybudsbaby.com) have a safer alternative for careful mothers. The just-launched Tiny Buds Natural Laundry washes and Fabric Softeners for Babies is a must-try for all new moms. They are made from mild and natural ingredients that will keep baby’s garments clean without harming delicate skin.

Lorina from the Tiny Buds team shares: “ever since we introduced Tiny Buds, we have received so many inquiries asking if we also have a laundry item. we believe moms have come to trust our sincere commitment to producing all-natural baby products that they trust we can provide a laundry wash that would be safer to use on their babies’ clothes.” each of the Tiny Buds Natural Laundry products is developed from a natural plant base that rinses away easily in water and leaves little to no residue on clothes. Moms are also assured that they are free from artificial coloring, strong fragrances, harsh chemical additives and fillers.

Thier natural formulation is mild enough that the laundry water will not harm plants and the environment.

In addition to being safe for little ones and friendly to nature, moms will love the Natural Laundry washes from Tiny Buds because they keep baby’s laundry touchably soft and smelling fresh. each one is color-safe and recommended by pediatricians for washing cloth diapers, too.

THE LITTLE DANDY Cardigans and sneakers are superb choices to finish off a shirt-and-jean ensemble.

The digital disconnect Continued from D1 world where the Blackberry, at the time of its dominance not too long ago, was jokingly dubbed “Crackberry” by owners who couldn’t seem to put it away even in social settings.

A cynic might say we’re literally and virtually surrounding ourselves with this stuff, cocooning ourselves in webs of friends, both real and fake, with no concern about the distinction, filling the dead air of our mundane lives with tweets, texts, online alter egos...and ill-timed but seemingly urgent phone chats.

Here, people you think you know can click on your name and either add you to their lives or delete you in an instant. No muss, no fuss. It’s all so impersonal, yet hard not to take personally. Connecting with people a more traditional way, like writing letters or spending face time with acquaintances or clinking glasses at a bar and batting eyes the way people hook up in the movies, can feel like a clunky vestige of another era.

But our relentlessly multitasking society’s message is either learn to thrive in this fastmoving new realm or miss out.

“I tell my students all the time, ‘You’re being sent a double message by your culture,’” says David Levy, a technologist at the University of Washington (UW) Information School, who focuses on qualityof-life and attention-span issues in our quickening digital age. “The very device, the laptop, which has become an essential tool for learning, is the same device that brings them music and their Facebook friends and pornography. The very device that’s making possible whole new kinds of learning is also the source of endless distraction.”

He says he hears from students all over the

country that they want to scale back the time they spend online and devote more hours to quiet time.

“I’m now convinced that we, in the older generation are missing a chance to have a real conversation with younger people about this.”

By the time people reach the forested Internet addiction recovery center outside of Fall City, Washington, known as reStart, the time for pre-emptive action has long since passed.

This is where counselors Hilarie Cash and Cossette Rae treat clients who are holed up in their Internet bubbles, sometimes after losing partners, jobs and homes because of their problem. ReStart, which opened in August, is the first rehab center in the nation aimed solely at helping a new category of addict that researchers are still working to understand. By February eight people had completed the program.

What’s not new, perhaps, is the reason people come to depend on their virtual tools and worlds. “I think what we do is seek emotional satisfaction through texting or the Internet,” says Cash, who became intrigued by the Internet obsession in the mid-1990s after meeting her first video-game addict.

The problem is “it’s like satisfying hunger by eating sugar.”

It becomes a vicious spiral.

“If we give up real-life social experience, then I think we starve ourselves of what we need emotionally,” Cash says.

She once treated an addict of the popular role-play game “World of Warcraft” who went from being socially adept to feeling completely inept. The more he played online games, the more he regressed.

“He had to rewire,” she says.

Cash notes humans learn to bond with

each other, to attach emotionally, in early childhood, then cultivate that impulse through a lifetime of interactions. But the brain is susceptible to experiences that override our ingrained behaviors.

Cash has treated gaming addicts who were so withdrawn, they were no longer able to look another person in the eyes.

One UW student and gaming addict forged academic transcripts for three years to fool his parents into thinking he was doing well in his classes. He wasn’t even attending them.

“That’s not an anomaly,” Cash says of clients she’s worked with over the past decade.

One day at reStart, a woman named Peggy waits for her teenage son to finish a counseling session and explains what happened when he developed what appeared to be an addiction to “World of Warcraft.” By his senior year of high school, he was playing more and more frequently, sometimes missing school.

She’d take away his computer’s power cords or Internet router, but he always found a way around her restrictions.

“I had the computer locked in the cabinet at one point, and he took the lock off the cabinet to get it out,” Peggy says.

It was clear, something deeper than a gaming obsession was happening with her son. “The addiction had gotten so far ahead of those underlying issues that you can’t get to them,” Peggy says.

Taking on another persona in an online game “was a way for him to escape, have fun and build self-esteem in a nonthreatening way.

You become that character in a sense, and that character can gain admiration from other characters, and respect.”

Now that Peggy’s son has finished the

Continued on D4

parentlife

See “M3,” A8

EXPLORE WIRELESS JV T P

New moms discover a safer way to wash baby’s clothes

dungarees.

Thai Prime Minister Gen. Prayuth Chan-ocha (left) and President Aquino gesture following their joint statement on Friday at Malacañan Palace in Manila. Prayuth is on a two-day official visit, aiming at strengthening relations between the two Southeast Asian neighbors. AP/Bullit Marquez

PHL, Thailand vow to strengthen TELSTRA, SAN MIGUEL ties on trade, security, education

D1

CUTE AND ADORABLE Parentlife

activities; electricity, gas, steam and air-conditioning supply; wholesale and retail trade, and repair of motor vehicles and motorcycles; financial and insurance activities; and manufacturing,” BSP Governor Amando M. Tetangco Jr. said in a statement.

He welcomed the pace of domestic-liquidity expansion in July, saying that this was sufficient to sustain the country’s growth momentum.

“The continued expansion of domestic liquidity during the month indicates that money supply remains sufficient to support economic growth,” Tetangco said.

d3

elstra Corp., Australia’s biggest phone company, is in talks with the Philippines’s San Miguel Corp. about investing in a wireless joint venture (JV) in the Southeast Asian country.

“No agreements have been reached in relation to these matters, and there is no certainty” that a deal will occur, Telstra said in a regulatory statement on Friday.The Melbournebased company was selecting banks for expansion in the Philippines, according to a headline on subscriber-only web site TMT Finance.

San Miguel, the Philippines’s largest company with investments spanning food, packaging, energy and beer, said last month it would pay P5.75 billion ($123 million) for a 51-percent stake in Liberty Telecoms Holdings Inc. Telstra CEO Andy Penn has described Asia as a key part of his growth strategy, and the company spent $697 million last year buying Pacnet Ltd. to gain access to its undersea cables connecting Asia and the Pacific. Bloomberg News

By Butch Fernandez

resident Aquino and Thai Prime Minister Pray uth Chan-ocha met on Friday, with the goal of strengthening Philippines-Thailand cooperation on trade and investments and security, as well as people-to-people ties.

Mr. Aquino said the Philippines and Thailand are committed to come up with a memorandum of understanding on Cooperation in Combating Illicit Trafficking in Narcotic Drugs, “which reiterates our shared belief that our peoples must be protected from dangerous drugs.”

“As part of our efforts, coordinated operations between Philippine and Thai agencies will be conducted; and, through this process, we look forward to sharing information between our relevant law-enforcement agencies,” President Aquino said in a press statement for the first official visit of the Thai leader in the country.

President Aquino assured the visiting Prime Minister that the Philippines is open for business and ready to welcome Thai investors in food and agri-business, construction services, infrastructure, as well as participation in the administration’s flagship private-public

partnership (PPP) projects.

“This gives us the impetus to work towards further increasing our bilateral trade,” Aquino told Prime Minister Chan-o-Cha. “We are also pleased to note that Thai investments approved by our investment promotion agencies have more than doubled in 2014.”

Aquino added: “Your Excellency, the Philippines is open for business and there are many more exciting prospects that Thai investors can explore to take advantage of the Philippines’ growth. These include the areas of food and agribusiness, construction services, and infrastructure Continued on A2

India plans drilling in disputed sea in challenge to China EMMERS: “It’s clear that India has interests in the South China Sea, as is evident by deepening maritime relations with the US and Japan.”

I

ndia’s state-owned Oil & Natural Gas Corp. (ONGC) plans to revive exploration activity in waters off Vietnam’s coastline that are also claimed by China, a person with direct knowledge of the matter said.

The company has approval from Prime Minister Narendra Modi’s

PESO exchange rates n US 46.7050

administration to drill exploratory wells in a disputed part of the South China Sea that it acquired rights to in 2006, the person said, asking not to be identified because the discussions are confidential. ONGC last attempted drilling in 2009, three years before China invited bids for the same area.

The move to assert India’s commercial rights in a contested area may be a sign Modi is joining the US and other Asia-Pacific nations to check China’s territorial ambitions.

Previous efforts by Vietnam and the Philippines to explore in disputed parts of the South China Sea have led to clashes with China.

“It’s clear that India has interests in the South China Sea, as is evident by deepening maritime relations with the US and Japan,” said Ralf Emmers, associate dean at the S. Rajaratnam School of International Studies in Singapore.

“And, certainly, China has been more active in the Indian Ocean,

making Delhi a bit nervous.”

China has stepped up efforts to assert claims to more than 80 percent of the South China Sea, which hosts $5 trillion in annual shipping.

It is building artificial islands and runways in the area, fueling tension and protests by fellow claimants.

Continued on A8

n japan 0.3860 n UK 71.9444 n HK 6.0263 n CHINA 7.2916 n singapore 33.3893 n australia 33.4635 n EU 52.5571 n SAUDI arabia 12.4523 Source: BSP (29 August 2015)

A2

News

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Saturday, August 29, 2015

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PHL, Thailand vow to strengthen ties on trade, security, education Continued from A1

and PPP projects.”

At the same time, President Aquino said the Philippines is also looking forward to Thailand’s hosting of the sixth meeting of the Philippines-Thailand Joint Commission for Bilateral Cooperation, which the President described as “an excellent platform for our countries to discuss topics of mutual interest, including mechanisms to further enhance our defense cooperation and develop our armed forces.”

Mr. Aquino also noted that the two countries strengthened cooperation on defense resulted in the recently signed Terms of Reference for the conduct of various activities between their Armies, and the recently held talks between their Navies. “We also look forward to the signing of the Terms of Reference for the Philippines-Thailand Joint Committee on Military Cooperation this year,” Aquino added.

As regards fostering people-to-

people ties between the two countries, Mr. Aquino said both he and the Thai prime minister recognize that “education is of prime importance in developing the abilities of our peoples.”

“So that they themselves may have the wherewithal to fulfill their aspirations for their families, their communities and the future we share as brother nations. This is the principle behind our continued work toward the signing of the memorandum of agreement on the Exchanges of Professional Teachers.

Through this, we will have the opportunity to further enhance the capabilities and competencies of both our Filipino and Thai teachers,” the Filipino leader said.

On trade and investment, President Aquino noted that Philippine companies, such as San Miguel Corp., Liwayway Food Industries Co. Ltd., Goldilocks and Monde Nissin have established their presence in Thailand.

“Thai enterprises, have, likewise,

opened doors of opportunity for my countrymen. Siam Cement Group, Charoen Pokphand Foods Philippines Corp. and the Dusit International are only some of the companies that have active operations here on our shores,” Mr. Aquino said. ”We took note of how these companies have continued to expand in our respective countries, because of the sustained support that our governments and peoples have given them.”

President Aquino said Thailand was the Philippines’s eighth-largest trading partner in 2014.

“Bilateral trade between our countries has reached more than $5 billion, and more of our people are discovering the beauty of each other’s country through expanded tourism exchanges. Indeed: These reflect the deep affinity between our peoples, one that is the product of centuries of interaction,” he said.

In terms of security, the two leaders welcomed the signing of the terms of reference for the

working group of the Philippine Army and Royal Thai Army in April this year.

“In the same way that the prime minister was instrumental in strengthening the partnership between our Armed Forces during his time as chief of the Royal Thai Army, so too does he continue to work with us in order to forge the kind of defense relations that enables us to serve our peoples in a more holistic manner. We are confident that this agreement will further strengthen our defense and security cooperation for the welfare of our peoples and of our brothers in Asean,” President Aquino said.

Mr. Aquino took the opportunity to thank the people of Thailand f or “generously extending” to the Philippines $100,000 financial assistance and 500 metric tons of rice in the aftermath of Typhoon Hagupit [local code name Ruby] last year.”

“Such an action only demonstrates the solidarity of your people with mine. On this note please accept the

deepest gratitude of my government and my people,” President Aquino said.

“Might I also take this opportunity to express our condolences to the people of Thailand for the recent tragedy that occurred in your capital. As always, we, Filipinos, will stand with our brothers, the Thai people,” he added. Accompanied by his wife Naraporn Chan-ocha, Prayuth arrived in the Philippines on Thursday night and was set to leave on Friday afternoon.

He was elected prime minister in August last year, months after he launched a military coup against the government. The Thai prime minister congratulated President Aquino for reviving the Philippine economy under the “straight path” vision.

“May I congratulate President Aquino and the government of the Philippines once again in reviving the economy to achieving a continued high growth for the past five years,” Prayuth said in a joint media statement after the bilateral meeting

between him and President Aquino in Macalañang.

“I’ve learned from the newspaper today that during the second quarter of this year, the Philippines achieved the growth of 5.6 percent.

As a result, the Philippines is praised by the international community as the new ‘rising star’ of the region.

I am confident that the vision laid

by President Aquino will serve as an important foundation in guiding the Philippines toward greater prosperity in the future,” he added.

Prayuth said both he and Mr. Aquino “are pleased with the close and comprehensive relations.” ”We shared the view that as Thailand and the Philippines advance toward the seventh decade of our relations and the formation of the Asean community this year, we should work even more closely together to enhancing the “Partnership for Prosperity” between Thailand and the Philippines and strengthening the Asean community at large,” he said. PNA

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Saturday, August 29, 2015 A3

PETRON TAKES INDUSTRY LEAD WITH PRODUCTION OF EURO-4 GASOLINES

M

ARKET leader Petron Corp. achieved an industry first as it announced today all gasoline variants produced at its Bataan refinery are now Euro-4 compliant.

The Euro-4 gasoline products are now available in Petron service stations in Mega Manila and will soon be available nationwide, meeting the government’s mandate ahead of schedule.

Petron, which pioneered the first locally produced Euro-4 premium plus gasoline in the Philippines, Blaze 100 Euro-4, is also the first company to locally produce a full line-up of gasoline variants that meet Euro-4 standards. This is six months ahead of the government mandate to make available Euro-4 fuels by January 2016.

Petron has four gasoline variants—the most extensive in the industry—namely, Blaze 100 Euro 4 (RON 100), XCS (RON 95), Xtra Advance (RON 93), and Super Xtra (RON 91). All Petron Euro-4 gasolines, with world-class additives, ensure engine cleanliness and efficient combustion for optimum engine performance and improved fuel economy.

Euro 4 is a globally accepted European emission standard for vehicles, which requires fuel with significantly low amounts of sulfur (0.005 percent or 50 parts per million [PPM]) and benzene (maximum of 1 percent by volume). Reduced sulfur and benzene content in gasoline makes fuels more environmentfriendly, as vehicles release less harmful emissions.

The company added that Blaze 100 Euro 4 even exceed Euro-4 global standards. Introduced in July 2013, two-and-a-half years ahead of the mandate, this premium gasoline has a sulfur content of less than 35 PPM and 1-percent benzene content, superior than the Euro-4 standard.

“The local production of various gasoline grades under this global fuel standard is another milestone in the oil industry. These products are proudly Philippine-made,” Petron President and CEO Ramon S. Ang said. “As the pacesetter in the

industry, we hope that this encourages other players to follow suit.”

“More important, our launch of a complete line-up of Euro-4 gasoline products affirms our commitment to introduce fuels relevant to consumers while reducing our environmental footprint,” Ang added.

Petron’s early compliance was made possible by its massive $2-billion upgrade at its Bataan refinery, which increases its local production of gasoline, diesel and petrochemicals and also allows the production of Euro-4 fuels.

The company said it will start the domestic production of Euro-4 compliant diesel products soon.

PETRON offers complete line-up of Euro-4 gasolines. Petron Corp.’s full line-up of gasoline variants, Petron Blaze100 Euro-4, XCS, Xtra Advance and Super Xtra are now all Euro-4 compliant. This is ahead of the mandate of the Department of Energy which requires oil companies to offer Euro-4 fuels by January 2016 to help improve air quality in the country. Motorists can now avail themselves of products in Petron service stations in Mega Manila and soon, nationwide.

Economy

A4 Saturday, August 29, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

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Full-year 7% to 8% growth goal now nothing but a ‘pipe dream’–Drilon

S

enate President Franklin M. Drilon expressed concern on Tuesday about the country’s ability to meet its target economic growth this year, which, he said, is being dragged down by what continues to be an “alarming” trend of government underspending.

The Senate leader’s statement came after the Philippine Statistics Authority and the National Economic and Development Authority on Thursday reported the country’s gross domestic product (GDP) for the second quarter of 2015 at 5.6 percent, which is way below the 6.4 percent it registered in the same period last year.

Drilon asked the country’s economic managers if the target GDP of 7 percent to 8 percent is still within reach, “when our present economic performance indicates otherwise?”

While he wishes to be as optimistic as the country’s economic managers, Drilon said that it is becoming more apparent now that the full-year target of 7-percent to 8-percent GDP is a “pipe dream.”

“The higher GDP target is ideal, but at the rate things are going it would be unattainable. It would mean the economy has to grow by at least 8.7 percent in the remaining quarters in order to achieve the minimum growth rate target of 7 percent, which is impossible to achieve,” Drilon said.

He noted that even Economic Planning Secretary and Neda Director General Arsenio M. Balisacan had earlier said that “the higher end of the 2015 goal would be difficult to achieve.”

“I am, therefore, asking our Cabinet members who lead the government’s economic cluster to conduct a serious reassessment of our current standing, including a realistic description of what the country could and could not achieve for this year.

Only then can we move forward and come up with the necessary solution,” Drilon said.

He pointed to government underspending as one of the key areas which require “immediate action,” citing that government spending represents nearly 20 percent of the Philippines’s annual GDP. “The 3.9-percent increase in government consumption in this quarter is a welcome development, but it is obvious much more needs to be done in terms of fixing issues on spending, such as bureaucratic bottlenecks, especially in the public infrastructure sector,” Drilon said. PNA, Recto Mercene

Potential 2016 bet favors BIR, Customs, GSIS privatization

D

avao City Mayor Rodrigo Duterte has yet to make up his mind on the people’s call for him to run for President but he says if it is his destiny to become the country’s leader, he would like to see a radical overhaul of government in the country, including the privatization the “graft-ridden” Bureau of Customs (BOC).

“I don’t covet the presidency but if by God’s will I would be President, I would not sit there for six uneventful years and continue the system as it is today,” Duterte said, repeating earlier pronouncements made in previous speaking engagements.

“The government is like a computer infected with a malevolent virus and there is an urgent need to reformat it. We really have to overhaul the system,” the Davao City mayor said.

In the government overhaul that he proposes, Duterte said that Customs, which recently made the headlines following the controversial proposal of its head, Alberto Lina, to open balikbayan boxes for duties and tariff examination, should be privatized to put an end to well-entrenched syndicate composed of corrupt officials and employees.

“The Bureau of Customs should be privatized. That is the only way we could dismantle and end the systemic corruption in that agency,” Duterte said.

Duterte recently issued a statement castigating the BOC for prying into the boxes of presents and goodies sent by Filipino foreign workers to their families back home.

“After Customs, the BIR [Bureau of Internal Revenue] and GSIS [Government Service Insurance System] should go private, and their functions could be taken over by reputable firms, which operate

much like the SGS,” Duterte said.

Duterte was referring to the Société Générale de Surveillance, a Geneva, Switzerland-based company which, alongside other firms like Bureau Veritas, Intertek, TÜV, Germanischer Lloyd (DNV GL), AS International and Cotecna, is involved in the inspection and verification of the quantity, weight and quality of traded goods.

“Privatizing the customs bureau would eliminate political interference in its operations and free it from the image of being a ‘fundraising’ agency for the political party in power during election seasons,” Duterte said. Duterte pointed out that the BOC and the BIR have become bloated government agencies, which could no longer totally supervise and control the actions of its officials and employees.

“Look at the BIR. Even if Kim [Henares, the BIR commissioner] is an outstanding and honest government official, the system of tax collection opens windows of opportunities for corruption,” Duterte said.

“Look at the GSIS. Government workers put their money there for their future but when they apply for a loan to build their homes and for other needs, they literally have to beg and wait for the release of their own money,’ he said.

“If I were President, those earning P25,000 and below should be exempt from income taxes and the computation of payable taxes should be based on a computerized formula. Let’s put an end to the system where the tax collectors haggle with the taxpayers on the amount due government. That is where corruption comes in,” Duterte said.

Privatizing Customs, the BIR and the GSIS would provide greater transparency, accountability and efficiency, Duterte said.

Shop ’til you drop A mother and her two children are all set to embark on a shopping spree at a popular mall in Mandaluyong City where children’s wear and accessories are being sold at a hefty 50-percent discount. Nonoy Lacza

2 firms close deal to develop Biliran geothermal project

R

By Lenie Lectura

enewable-energy (RE) provider Emerging Power Inc. (EPI) and Orka Energy Inc. will jointly develop a geothermalpower project in Biliran.

“We are quickly expanding our RE portfolio. Orka’s expertise will help us in our mission to supply clean energy and provide plenty of job opportunities for the people of Biliran,” EPI Chairman Antonio Martin Zamora said.

Both signed an agreement that effectively gave EPI a 60-percent controlling interest in Biliran Geothermal Inc. (BGI), which has a 25-year geothermal RE contract covering 260 square kilometers in the province of Biliran.

BGI has successfully completed

drilling eight wells in the southern portion of the concession area, which is estimated to supply 100 megawatts (MW) of power to the grid. Initial research shows that another estimated 170 MW could be developed in the northern part of the concession area.

“Orka Energy and EPI share the same vision: harnessing geothermal energy to meet Asia’s demand for cleaner, sustainable energy. We look forward to working with EPI on the Biliran project to create long-term value for all stakeholders, and to responsibly and sustainably power homes, communities and businesses across the Philippines,” Orka CEO Eirikur Bragason said.

Orka Energy is owned by Chandler Corp., a private investment group that invests globally across

a range of industries, including energy, financial services, consumer and health care.

The core team of Orka Energy has developed 1,500 MW of geothermal power into operation in the last 30 years. EPI, meanwhile, is majority owned by Nickel Asia Corp.

(NAC), one of the country’s biggest mining firms.

NAC earlier said it would guarantee the loan facility of EPI for up to P3 billion over a three-year period to finance EPI’s RE projects.

EPI is also putting up a 40-MW geothermal-power company in Oriental Mindoro; a 100-MW solar and wind project in Subic; a 30-MW Hybrid (Solar, Bunker) project in Palawan; a 10-MW solar project in Camarines Sur; and a 2.5-MW biogas project in Quezon province.

Palace switches gears on odd-even traffic scheme

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alacaÑang clarified on Friday that the “radical” traffic solution floated by President Aquino earlier suggesting possible imposition of weeklong odd-even vehicle volume reduction scheme is just“one of many options” the government is mulling to address daily gridlocks in Metro Manila’s main thoroughfares.

“It is important to point out it’s only one of many options being considered,” Communications Secretary Herminio B. Coloma Jr. said, explaining there was no target date yet for enforcing an extended odd-even scheme disclosed by the President during a speech in Mandaluyong the other day.

Coloma asserted that Mr. Aquino was only listing several options under consideration in the face of mounting complaints from motorists and commuters who have to bear with the daily traffic gridlocks that take hours to untangle.

He pointed out that the possible revival and imposition of an extended odd-even scheme was not yet final.

“It’s not a‘plan.’He [President Aquino] said it’s a ‘radical solution’ that is among the options being considered,” Coloma said, adding that “consultations are ongoing with stakeholders.”

According to President Aquino himself, “malapit nang ipresenta sa akin ang iba’t ibang plano para maibsan ang

siksikan ng mga sasakyan.”

Aquino added: “Ang akin po: Ang pinakaradikal dito ay hatiin ang bilang ng bumibiyaheng sasakyan—salitan ang pagbabaybay ng odd at even na plaka sa ating mga kalsada kada linggo. Pihadong luluwang ang trapik dahil kalahati ng sasakyan ang mawawala, pero sigurado pong marami na namang aalma dahil hindi magagamit ang kotse nila.”

The President proceeded to cite official statistics on what he called “the good news and bad news,” noting that over 22,400 new vehicles are sold every month, in addition to about 100,000 motorcycles sold monthly since 2014.

Butch Fernandez

‘Niyogosyo’ Sen.

Cynthia Villar (third from left), chairman of the Senate Committee on Agriculture and Food, leads the ribbon cutting and opening of the Trade Fair and Exhibit during the 29th National Coconut Week Celebration and 2nd International Coconut Festival with the theme “Niyogosyo: Sagot sa Mabilis na Pag-Asenso” on Thursday at the Mega Trade Hall, SM Mega Mall, Mandaluyong City. With her in photo are (from left) Undersecretary for Operations Fredelita C. Guiza of the Office of the Presidential Assistant for Food Security and Agricultural Modernization; Philippine Coconut Authority Administrator Romulo N. Arancon Jr.; and Cory Quirino. PNA

briefs

DPWH: P4.9B spent for NCR, Regions 3, 4A flood-control projects

The government has invested P4.9 billion in structural and nonstructural flood-mitigating projects for the National Capital Region (NCR), Regions 3 and 4A, a Cabinet official said.

Public Works Secretary Rogelio L. Singson said the 96 completed projects are part of the P5-billion Priority High-Impact Flood-Control program for Metro Manila and its neighboring regions in the Flood Management Master Plan.

The bulk of the completed projects— 46 of them—are contracts under the program for Valenzuela, Obando and Meycauayan. The projects involve the construction and improvement of flood control and river walls, desilting, and installation of pumping stations.

The government is spending P351 billion for long-term structural floodmitigation measures. There are 11 multiyear projects under the Flood Management Master Plan, including the improvement of the San Juan River, the Pasig-Marikina River and the construction of a box culvert in Blumentritt, Manila. Lorenz Marasigan

Binay issues call for tax reform Vice President Jejomar C. Binay on Friday said that existing income-tax brackets must be adjusted to current inflation rates, as he called for reforms in the country’s taxation scheme.

“Our tax system must be seen as fair—meaning, those with fat pay checks pay higher taxes than those whose pay checks are less—and inflation-adjusted tax brackets, albeit reduction of tax revenues, is simply fairness,” he said. The Vice President, quoting the Tax Management Association of the Philippines, said the Philippines has the highest income tax in Asia: 32 percent for those with at least P500,000 annual income.

“Dinaig pa natin ang pinakamayamang bansa sa Asean tulad ng Brunei kung saan zero percent ang income tax rate at Singapore na nasa 2 percent lamang [We’re even better than the richest countries in Asean, like Brunei, where the income-tax rate is zero, and Singapore, which is only 2 percent],” he said.

Binay said that, while Malacañang has denied it several times, the belief that the administration has blocked the passage of pending legislation lowering the income tax cannot be disregarded. “The solid evidence: not less than 17 proposed bills pending today, yet not one of them could expect to be passed by the present Congress,” he said. Recto Mercene

Lawmaker seeks addl perks for barangay officials, employees Barangay officials and employees can look forward to the grant of additional benefits in their performance as government’s front-line workers in bringing social services to their communities.

Rep. Juliette T. Uy of the Second District of Misamis Oriental filed House Bill 5950, which seeks to provide incentives to all barangay officials and employees, including barangay tanod and members of the lupong tagapamayapa.

Under the bill, the salaries, wages, compensation, remuneration, honoraria and allowances and other emoluments receive by barangay officials and employees shall be exempted from income taxation.

Gross benefits received by such barangay officials and employees, of whatever nature or character, shall, likewise, be exempted from income taxation. The measure also states that government medical and health-insurance programs under existing laws shall include in their coverage free basic health services and medicines to barangay officials and employees.

Likewise, all barangay officials and employees shall be considered members of the Government Service Insurance System, and shall be covered with life insurance and social security. PNA

Shopping

A BusinessMirror Special Feature

www.businessmirror.com.ph

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(SFERA)’S NEW COLLECTION FOR KIDS & BABIES

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INCE it opened its first store in Asia at SM Makati, premium Spanish brand (Sfera) has elicited a lot of buzz from Manila’s stylish set.

But (Sfera) is for Kids & Babies, too, showing that one can never be too young to be fashionable.

(Sfera’s) new collection for Kids & Babies is all about cute cuts, pretty and playful prints, and youthful colors, as well the attractive prices the brand has been known for.

There are whimsical pink tulle

skirts and floral leggings; prints charming tees, and graphic denim dresses for girls. Boys, on the other hand, look cool and casual with striped shirts and checkered shorts. Babies are not far behind on the style-o-meter with brightlycolored overalls and hoodies.

Fun accessories complete the

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1. SPORTY VIBE. Statement hoodie paired with blue jeans.

2. ROCKIN’ THE BLUES. Denim buttondown shirt paired with denim dungarees

3. FLORAL PICKS. Liberty-print peplum

top paired with textured tights and boots.

4. THE LITTLE DANDY. Cardigans and sneakers are superb choices to finish off a shirt and jean ensemble.

5. CUTE AND COORDINATED. Gray printed shirt, drawstring joggers and sneakers.

6. MIXED PRINTS. Plaid shirt layered over a star-printed denim dress.

7. WARMING UP. Padded hooded vest layered with a striped pullover worn with colored pants, and a fair isle sweater paired with joggers.

8. STYLE CHECK. Checkered long-sleeves shirt worn over a squirrel-print pullover and paired with denim jeans.

9. SEE YOU LAYER. Plaid shirts and knit pullovers layered and paired with denim dresses, shorts, and leggings.

look-hot pink satchels, smart sneakers, and sensible belts.

These and more from the (Sfera) Kids & Babies Collection—all now at newer, more attractive prices—can be found at (Sfera) 2/F SM Makati. You

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Saturday, August 29, 2015 A5

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7 can also follow the latest from (S f e r a) on instagram: @sferaph (#SferaPH), on facebook: SFERA Philippines and on its international web site www.sfera.eu.

(Sfera) opened its first store in Asia at the 2nd Floor of premium

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mall, SM Makati in Manila, Philippines in September of 2014. Carrying a vast number of clothing lines for Men, Women, Kids & Babies, as well as Accessories, Shoes & Bags, and Swimwear, (Sfera) has found its foot-

hold in the local fashion scene from superior clothing quality in chic styles and reasonable prices, as well as the loyal customer base that continuously flock to its flagship store for wearable but fashionable pieces.

A6 Saturday, August 29, 2015

Opinion BusinessMirror

editorial

Heavy traffic?

Get out of Manila

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he post on Twitter from the Metropolitan Manila Development Authority (MMDA) read simply: “Expect moderate-heavy traffic at Edsa Megamall due to 4-day sale.”

The transportation situation in the metropolis has gone from inconvenient to absurd. The government’s response has been a complete failure, and comments from responsible government officials are ridiculous. The idea that heavy traffic is not life-threatening was bad enough. But now the idea that the best solutions are either taking half the vehicles off the road through an odd-even scheme or a four-day workweek shows the administration is clueless about what to do.

Actually, the most responsible comment came from the MMDA, which said that the traffic situation in the metropolis is expected to get worse in the next 15 years. However, the reason for the 15-year window is that the government will start implementing the Roadmap for Transport Infrastructure Development for Metro Manila and its Surrounding Areas by 2030.

The administration has taken much criticism also for saying that the problem is because of increasing national wealth that has also increased the number of cars and other vehicles on the road. The above-mentioned tweet from the MMDA about a shopping-mall sale creating heavier traffic would seem to support the government’s position. But if our memory can go back farther than 2010, a weekend sale at the Megamall has always caused traffic problems even when the Philippines was seen as an economic “basket-case.”

Everyone is becoming a traffic-management expert with a multitude of ideas on how to solve the problem. For example: There are too many unnecessary buses plying Edsa. The problem is not the amount of cars, but the fact that Filipinos are terrible drivers. Cars should be limited, and public mass transportation be given priority on Metro Manila roads.

We are as frustrated about the situation as you are. We are just as tired talking about Manila traffic as you are hearing about it.

More than a decade ago, the Thailand government commissioned a study about Bangkok traffic. Bangkok police then had a special “flying squad” just to assist women about to give birth who were stuck in traffic. The study concluded that it would take an investment of $4 billion (a massive amount then); and by the time the money was spent and all the improvements made, road use would have increased so much that the situation would have barely improved at all.

In our case, every solution offered is nothing more than a Band-Aid approach that does not deal with the cause of the problem.

A 40-year-old picture we found of the Guadalupe Bridge on Edsa looks much as it does today, although vehicle capacity has increased tenfold. What has greatly changed, though, is the population around the bridge, which has increased by, perhaps, 500 times.

The only long-term solution to Metro Manila’s traffic congestion is to decongest the metropolis. Otherwise, we can wait until 2030 for the government’s master plan to get deployed. We are willing to bet we will still be fighting heavy traffic to get to Megamall’s three-day sale in 2030 if we do nothing to decongest Metro Manila.

Expectations are almost useless John Mangun

OUTSIDE THE BOX

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o paraphrase the founder of Fubu clothing company Daymond John, “The financial and commodities markets are a cruel teacher. They love to give you the test first and the lesson later.”

This past week has seen some of the largest percentage daily moves in stock market recorded history and daily volatility that is unprecedented. The Dow Jones Industrial Index (DJIA) had the largest open price-to-close range, or intraday fall, of 588 points. That day also saw the largest daily swing from the high to the low of over 1,000 points. Because of that huge swing, the DJIA futures contracts trade a 4,500-point whip around through the day.

But it was not just the stock markets. Crude-oil futures fell by 5 percent, breaking below the critical $40a-barrel price. But since that drop, the price has recovered 14 percent for more than a 20-percent movement in just a few days. The same type of volatile trading occurred in the currency markets, with the US dollar index losing 3 percent and then gaining all of it back. The Japanese yen made even a larger move.

The gloom-and-doom crowd went

from Zero to Hero and back to Zero in a very few days, with markets recovering from their crashes almost as if nothing happened. The “Don’t Worry, Be Happy” crowd went nuts when the DJIA was down 1,000 points on Monday, and then considered itself the smartest group on the planet when the market ended down only 588 points.

This kind of volatility usually “whipsaws” traders, and the smart ones stay on the sidelines watching all the action while drinking a bottle of fine wine.

The Philippine Stock Exchange (PSE) was not an exception, losing 6.7 percent this past Monday and another 2.7 percent early in the day on Tuesday. But by the close of Tuesday’s trading, the PSE reversed and finished 0.58 percent higher for the day.

The fact that the global markets fell was not a surprise, as virtually everyone has been expecting a decline.

This included the “bubble-maniacs”

looking for financial-market Armageddon to those thinking a small correction was necessary. But the key is that virtually no one expected the extreme volatility and reversal.

I have been talking about extreme volatility for some time, but that does not make me any sort of an “expert.” It is just that the economic-cycle change coming at the end of September calls for this time of financial and assetprice volatility that has been seen every time the cycle has changed up or down in the past. It is just that we all have short memories.

Here is something else to consider. This past week on the PSE is not even the greatest percentage or point move from weekly top to weekly bottom. There were two weeks in 2013 that saw greater volatility in both points and percentage. Back then, the US Federal Reserve (the Fed) was to blame because everyone “knew” that a catastrophic and stock market-killing US interest-rate hike was absolutely imminent.

This time around, that interestrate hike is still imminent and is still market-killing, but now it is all China’s fault. Interestingly, US Treasury Secretary Jack Lew said this a month ago: “I will say that China’s markets still are pretty much separated from world markets.” And speaking about a decline in the Chinese stock market and the effect on global markets, Mr. Lew continued, “So you’re not going to, I don’t think, see the direct linkage there.”

When it comes to the financial and asset markets, “Who are you going to trust? Who are you going to call?” Barely a week ago, the global stock markets were destined to fall another 50 percent, wiping out the global banking system and reducing us all to buying and selling goods using seashells. The US dollar was going to collapse, as Europeans rushed back to their own currency and everyone else sought a safe haven in Japan.

The Chinese government would be forced to close the stock markets and declare martial law, as millions of investors march toward Tiananmen Square. The members of the Fed would probably all disappear and meet up with their European counterparts on a South Pacific island bunker to ride out the next episode of Mad Max. Of course, all those predictions might come true in the coming week—or they might not—and that is the point. Just when you think you have it all figured out, the markets slap you on the side of the head, and then teach you the lesson that forecasting is for fools. It is the longer-term trends and cycles that will eventually win the day.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Japan’s central bank is China’s biggest cheerleader William Pesek

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BLOOMBERG VIEW

ank of Japan (BOJ) Governor Haruhiko Kuroda has a new strategy to support his country’s listing economy: talking up China’s.

It’s a marked break with what other Japanese officials are saying. Finance Minister Taro Aso and economy czar Akira Amari have been eager to blame China’s slowdown for Japan’s woes. It’s somewhat surreal to see them urge Beijing to implement economic reforms when they’ve done nothing of the sort in Tokyo—and with more time on the job than their Chinese counterparts.

Kuroda, however, is guilty of taking things to the opposite extreme. Speaking in New York, he challenged the negativity shrouding Asia’s biggest economy, saying he’s “reasonably sure” China will grow between 6 percent and 7 percent this year and next—a prediction that hardly anyone else has endorsed. Kuroda has effectively lashed his credibility, and his legacy, to China’s trajectory. It’s not hard to understand why he might have felt he had no choice.

Kuroda has to contend with three big problems. The first is demographics. Just as his predecessor Masaaki Shirakawa warned, Japan’s consumer prices are bound to fall as its population ages.

The second is a dearth of confidence: Monetary policy has been rendered comatose by the public’s hesitance to borrow and banks’ hesitance to lend. The third is China’s slowdown—a variable far beyond Tokyo’s control, but no less critical for Japan’s fate.

Prime Minister Shinzo Abe’s revival program has three parts—monetary stimulus, fiscal spending and deregulation—but China’s boom has always been the unofficial fourth. Until now, that is.

China’s outlook is deteriorating faster than most investors expected, causing an existential crisis for Abenomics.

The world needs to regain some perspective on China. As Nicholas Lardy of

the Peterson Institute wrote in the New York Times, the data on China’s economic fundamentals—growth in wages, nonagriculture job growth, disposable income and household expenditures— belie the ongoing meltdown hysteria.

Naysayers, Lardy says, are making the mistake of interpreting China’s data through the lens of its industrial sector.

Yes, China’s electricity rates are plummeting. But that’s only because China is shifting to a services-based economy that’s less power-intensive than steel production or garment manufacturing.

The fact that China isn’t crashing should put most of the world at ease.

But even a moderate slowdown could prove a lethal blow for Japan. China’s combination of deflation and currency devaluation is reducing the odds that the trillions of dollars of monetary stimulus Kuroda has pumped into markets since April 2013 will ever gain any traction.

The yen’s 22-percent drop since Kuroda unleashed his quantitative-easing (QE) experiment pumped up profits at Toyota and Sony and fueled a rally in the Nikkei. It has failed, though, to encourage executives to increase wages or invest in new businesses.

Arguments for another dose of QE must be weighed against the costs.

Rather than make Japan more resilient and competitive, Tokyo’s weak-yen policy is increasing its dependence on

exports—in other words, China—at the very worst time. The $5 trillion of wealth that Shanghai-listed equities have erased since June is already more than Japan’s annual output.

The better solution would be for Aso and Amari to stop bellyaching and get to work. If they’d spent the last 975 days loosening labor markets, building a progrowth-tax system, encouraging innovation and lowering trade tariffs, they wouldn’t be so shaken by a spell of bad economic news in Beijing or tumbling stocks in Shanghai.

It stands to reason Kuroda is doing—and saying—everything he can to pierce the negativity fogging China.

After all, a stable and vibrant China would do more for Japan than another QE jolt. Kuroda’s happy talk about China goes hand-in-hand with his insistence, contrary to all evidence, that Japan is on pace to meet its 2-percent inflation target, and BOJ officials’ excuse-making about how weak oil prices are to blame for their policy failures.

But these kinds of statements pose risks of their own; if they prove to be illusory, they will put a serious dent in the BOJ’s credibility.

The simple fact is that, unless Japan tends to its own problems, it will inevitably get dragged ever deeper into China’s.

And in that case, Japan’s leaders will have no one to blame but themselves.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Underneath the straight asphalts

‘Laudato Si’ Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

Cecilio T. Arillo

database

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HIS is the title of one of the interesting commentaries I received in reaction to my column, “An illustration of the blame game,” published on August 7.

“Passed by a ‘hot stuffed’ article of yours,” said the sender, banker and volunteer-teacher Yna Maceda, “while searching for the latest business buzz(es), I was reminded of Robert Kiyosaki’s line: ‘When people are lame, they love to blame.’

“I am not here to critic this daang matuwid thing. It is never my intention.

But I definitely agree with you and Mr. Gonzales’s analysis of this whole blame game. It unravels the real ‘structure’ of daang matuwid—underneath the straight asphalts, the road is round... we are just moving in circles...not heading anywhere.”

“Abhorring as it can be, this blame game has long penetrated the veins and membranes of almost all institutions globally, including the bureaucratic government we long have. Sarcastically speaking, in our beloved country, we have this circle called Nato—not the North Atlantic Treaty Organization, but ‘No Action Talk Only’ (Though, others might think it is ‘Noynoy Aquino/Administration TalkS**t Only’). A classic example of their TalkS**t: blaming UST. “While they are busy pointing fingers, their God-given intellects, creativeness and energies (supposedly for nation transformation) are being wasted in formulating/crafting arguments to defend themselves. Whoah! So efficient, effective and economical (3Es). If only they can translate these 3Es for the advancement of the nation and not to cover their bum as**s.

“Thank you for putting a challenge to all of us. We (personally, I) have been sidetracked and distracted by these circus and dramas that we almost forgot vigilance on the real issues—starting from the huge government expenditures. Truly appreciate the rundown of examples: (1) P354-billion floodcontrol program, (2) P200-million flood control study; and (3) P60-million economic feasibility study on VOM.” In his rejoinder, Luigi Aimes Tan, who claimed to be a taxpayer and a lawabiding citizen, said: “At a time when our people do not trust their government, how will you easily evade being responsible over your neglected duties and miscalculated actions? Yes, the ‘blame game’ is an easy way out. I agree with what Prof. (Ernie) Gonzales said about the issue on flooding in Manila.

The blame game is what this government, the President together with his Cabinet, is playing.

“If there is one thing that the Philippines should brag about, it’s our history and culture. And the 400-year-old university in España is a testament to that. If you cannot respect your history, then you do not deserve to be sitting in that seat in Malacañang, Mr. President.”

In another commentary e-mailed to this writer, Mariekris Santo said: “It is good that your term (referring to the President) will end soon. But I hope all your mistakes, together with this country’s flawed justice system, will not haunt you forever.

“I see that our President does not value the preservation of our country’s

culture and heritage. It is such a shame because he should lead by example to all Filipinos. UST and the Rizal Monument are parts of our country’s history.

I cannot imagine what other historical landmarks or institutions that the President and his administration are willing to sacrifice and take for granted in the name of daang matuwid.

“There is no doubt that Philippine politicians are active players of a ‘blame game.’ When Leyte was strongly hit and greatly devastated by Supertyphoon Yolanda, we were the focus of the entire world and even the international media saw how slow the action of our government was, as there was no cooperation and effective communication between the national and local government.”

Michelle G. Gloriani, a student, said: “The P354-billion flood-control program allocated by the government is a very huge amount of money, and it is the right of every Filipino citizen to know where and how it is being spent.

“Thinking of the proposed project, this will not just endanger a historical site, but it will also endanger thousands of students innocently studying and striving to have a better future. The climate change is different now, and if a very huge rainfall will pour on Manila, the said catchment basin for UST will not be enough to contain the water, which is very risky.”

“With the worsening condition of flood control, or the absence thereof, it is high time that flood-control measures be studied and, hopefully, be implemented soon. And, when we talk about the worst flood conditions in the Metro, the first thing that comes to mind is España, since it easily transforms into a body of water even with just a few moments of heavy rain,” Charmaine Pinlac said in her commentary.

Pinlac said it is just appropriate that the government address this problem.

However, a solution to a problem should not result to another problem. “And this is what Dr. Gonzales, I believe, is pointing out. In the construction of an underground catchment basin in UST, the institution and its 400-year-old legacy might be gravely affected, hence, the objection of the UST administration in the said DPWH project.”

“As I see it,” said Patricia Ann A. Tuazon of the UP Manila Graduate School, “the reason President Aquino’s daang matuwid would not take off is because he’s trapped in his blame game.”

When he blamed the former administration in his first State of the Nation Address, the Filipino people noded in agreement. After almost six years of governance, when he still blamed the former administration for the flaws of this country, the Filipino people can only shake their heads in disappointment. This blame upon blame is starting to shape his legacy as the President of this nation.”

Because of limited space, this writer apologizes to those whose reactions were not included in this column.

To reach the writer, e-mail cecilio. arillo@gmail.com.

Special thanks MAIL

Please e-mail your letters to the editor to opinion@businessmirror.com.ph.

Letters chosen for publication in this section are edited for brevity and clarity.

WE would like to express our gratitude for accommodating our request and assigning one of your writers to cover the recent media roundtable with Metrobank Card Corp.’s executives about their YAZZ card and the celebration of their 30th anniversary.

We truly appreciate this and we do hope for your continuous support.

Danica Valdes-Lloren President Visions and Expressions

Part 3 Note: We continue the reprint as a series of the Holy Father Pope Francis encyclical Laudato Si (On Our Care for Our Common Home).

My appeal

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he urgent challenge to protect our common home includes a concern to bring the whole human family together to seek a sustainable and integral development, for we know that things can change.

The Creator does not abandon us; He never forsakes His loving plan or repents of having created us. Humanity still has the ability to work together in building our common home. Here, I want to recognize, encourage and thank all those striving in countless ways to guarantee the protection of the home that we share.

Particular appreciation is owed to those who tirelessly seek to resolve the tragic effects of environmental degradation on the lives of the world’s poorest. Young people demand change. They wonder how anyone can claim to be building a better future without thinking of the environmental crisis and the sufferings of the excluded.

I urgently appeal, then, for a new dialogue about how we are shaping the future of our planet. We need a conversation, which includes everyone, since the environmental challenge we are undergoing, and its human roots, concern and affect us all. The worldwide ecological movement has already made considerable progress and led to the establishment of numerous organizations committed to raising awareness

of these challenges. Regrettably, many efforts to seek concrete solutions to the environmental crisis have proved ineffective, not only because of powerful opposition, but also because of a more general lack of interest. Obstructionist attitudes, even on the part of believers, can range from denial of the problem to indifference, nonchalant resignation or blind confidence in technical solutions.

We require a new and universal solidarity.

As the bishops of Southern Africa have stated: “Everyone’s talents and involvement are needed to redress the damage caused by human abuse of God’s creation”. All of us can cooperate as instruments of God for the care of creation, each according to his or her own culture, experience, involvements and talents.

It is my hope that this encyclical letter, which is now added to the body of the Church’s social teaching, can help us to acknowledge the appeal, immensity and urgency of the challenge we face. I will begin by briefly reviewing several aspects of the present ecological crisis, with the aim of drawing on the results of the best scientific research available

Saturday, August 29, 2015

today, letting them touch us deeply and provide a concrete foundation for the ethical and spiritual itinerary that follows. I will then consider some principles drawn from the Judaeo-Christian tradition which can render our commitment to the environment more coherent. I will then attempt to get to the roots of the present situation, so as to consider not only its symptoms but also its deepest causes. This will help to provide an approach to ecology, which respects our unique place as human beings in this world and our relationship to our surroundings. In light of this reflection, I will advance some broader proposals for dialogue and action, which would involve each of us as individuals, and also affect international policy. Finally, convinced as I am that change is impossible without motivation and a process of education, I will offer some inspired guidelines for human development to be found in the treasure of Christian spiritual experience.

Although each chapter will have its own subject and specific approach, it will also take up and reexamine important questions previously dealt with.

This is particularly the case with a number of themes, which will reappear as the encyclical unfolds. As examples, I will point to the intimate relationship between the poor and the fragility of the planet, the conviction that everything in the world is connected, the critique of new paradigms and forms of power derived from technology, the call to seek other ways of understanding the economy and progress, the value proper to each creature, the human meaning of ecology, the need for forthright and honest debate, the serious responsibility of international and local policy, the throwaway culture and the proposal of a new lifestyle. These questions will not be dealt with once and for all, but reframed and enriched again and again.

To be continued

Legalize sex work but not sex buyers

By Simon Hedlin & Birgitta Ohlsson | TNS

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he human-rights organization Amnesty International voted this month to develop a policy that supports full decriminalization of prostitution—both selling and buying sex. Antitrafficking organizations and women’s rights activists in the US criticized the move, but others have embraced it, including Washington Councilman David Grosso. He is now considering introducing legislation that would decriminalize prostitution in the nation’s capital.

Grosso is right when he says that America needs new prostitution laws that “respect the fact that sex workers are human beings, too.” But critics are also correct that blanket decriminalization is a terrible idea that could risk increasing human trafficking.

There is a middle way: Decriminalize the selling of sex, but criminalize the buying of sex.

In 1999 Sweden pioneered this approach, which meets two essential

objectives: It helps protect the human rights of people in prostitution while reducing the demand for paid sex, making commercial sexual exploitation less profitable.

Some allege that decriminalizing the buying of sex would make prostitution safer and turn it into a profession like any other, both of which would aid the combat against human trafficking. But the evidence suggests otherwise.

New Zealand decriminalized the buying of sex in 2003. Five years later, its Prostitution Law Review Committee reported that the law did little to curb violence in the sex trade. Germany made it legal in 2001, but the industry has certainly not become like other professions. A federal government survey released in 2007 found that very few sex workers had a “contract of employment,” and it concluded that legalization had not resulted in any “measurable improvements to prostitutes’ social protection.”

In the Netherlands, where brothels are licensed by local governments, monitoring the sex industry has severely

drained public resources, and research has found that fighting sex trafficking, therefore, “May even be harder in the legalized prostitution sector.”

Notably, several studies of prostitution laws have reported that, in countries where buying sex has been decriminalized, sex trafficking typically is more prevalent. This is not surprising. When it is easier to purchase, demand for commercial sex goes up and more money can be made from exploiting victims.

For traffickers, no buyers equals no business. The better policy alternative for the US is to follow Sweden’s approach and remove criminal sanctions for selling sexual services without making it permissible to buy.

Although the Swedish model is, by no means, perfect, it is the best option.

Norway, Iceland, Northern Ireland and Canada have adopted it. And the data suggest that it is working. In Sweden a 2014 report estimated that the proportion of Swedish men, who have paid for sex, dropped from 13 percent in 1996— before the law was enacted—to 8 percent in 2008. By contrast, surveys have found

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Caritas Manila recently opened its first Segunda Mana charity outlet outside Metro Manila when it inaugurated its 21st charity outlet at Basement Level, World Bazaar of Starmall, in San Jose del Monte City, Bulacan.

Senators Cynthia and Manny Villar donated free mall space for the charity outlet in Starmall San Jose del Monte City, as well as those at Starmall Edsa, Alabang and Las Piñas.

Segunda Mana is the donations-inkind program of Caritas Manila, which accepts preloved items, such as clothes, shoes, bags, toys, home and fashion accessories as gifts for charity. These, in turn, are distributed in 21 charity outlets at affordable prices.

Other charity outlets are in Caritas Manila’s main office at 2002 Jesus Street, Pandacan, Manila, and in our partner malls in Victory Mall—Caloocan, Alabang, Pasay, Las Piñas and Lacson-Quiapo; Sta. Lucia East; Greenfield District; Isetann Recto; Riverbanks Marikina; Farmer’s Plaza Cubao; Makati Square; Harrison Plaza; Metropoint Pasay; Comoda Ville Antipolo; San Roque Cathedral in Caloocan; and Sancti Josef Commercial Malabon.

Please support Segunda Mana by donating items you no longer need, have excess of, or your company’s old and slow-moving inventories. Proceeds from Segunda Mana charity outlets fund Caritas Manila’s flagship program, Youth Servant Leadership and Education Program.

To know more about Segunda Mana and other programs of Caritas Manila, visit www.caritasmanila.org.ph. For your donations, call our donor care lines 563-9311, 564-0205, 0999-7943455, 0905-4285001 and 0929-8343857. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph. For comments, e-mail veritas846pr@gmail.com.

that sex-buying rates in the US have not changed much since the 1990s. Up to 14 percent of American men have purchased sex at some point.

It is disgraceful that the US, as reported by the Human Rights Project for Girls, jails victims of sex trafficking as offenders. By some counts, more than 90 percent of those who are arrested for prostitution in the US are those who sell sex; fewer than 10 percent are buyers.

Yet many people in prostitution are victims of exploitation, whereas buyers are often among the privileged. A 2013 survey of American men, who frequently bought sex, found that almost half had an annual income of $120,000 or more, and close to 80 percent had graduated from college.

Ultimately, decriminalizing sellers and criminalizing buyers is only part of the solution. Sex workers must have better access to housing, health care, education and opportunities to leave the sex industry. There is more to be done not only in the US, but also in Sweden to address the widespread stigma, abuse and health risks in prostitution.

In the war against extremism, human rights are losing

By David A. Super | TNS

R

evelations that the Islamic State has concocted a theological rationalization of the systematic, institutionalized rape of Yazidi, Christian and other women are appalling. We had been aware that it and its ally, Boko Haram, were particularly brutal toward women, but elevating these acts to religious duties is the most grotesque distortion.

Alas, this is not new. It is eerily reminiscent of Imperial Japan’s rationalization for enslaving tens of thousands of Koreans and others as “comfort women” for soldiers fighting for its deified emperor. It also echoes the Fourth Crusaders, who regarded their cause as so holy that it justified the systematic rape of (mostly Christian) women they encountered in cities along the way. (The Fourth Crusade became so enmeshed in this and other barbaric behavior that it never actually reached the Holy Land.)

In our own time, the nominally Christian Lord’s Resistance Army in Uganda makes similar claims.

The Islamic State’s theology of rape is every bit as much of a perversion of

the teachings of the prophet as the crusaders’ twisted, self-serving rationalizations were betrayals of the Gospel of Jesus. Any number of devout Muslims recoils in horror from the Islamic State just as Christians today have largely wiped the Fourth Crusade from our collective memory.

But, rather than treating these atrocities as bizarre anomalies, we must understand what fuels them if we are to defeat them. A large part of it is rampant disrespect for and degradation of women even under “moderate” regimes. That desensitizes men to women’s suffering and denies women the social and political tools to defend themselves.

The other part, however, is an ossified, unreasoning, traditionalist approach to religion. Rather than attempting the fool’s errand of separating “moderates” from “extremists,” we should pay far more attention to the difference between modernizers and traditionalists — and to those who share our democratic values (including respect for the full personhood of women) and those who do not.

Our current approach is a hopeless muddle.

We support the bombing of the Houthis—whose top priority is expelling al-Qaeda from Yemen and who have shown no interest in events outside their borders. We condemn the Islamic State’s public beheadings and ally ourselves with Saudi Arabia, which sentenced a dissident blogger to 1,000 lashes—essentially a public death by torture.

We are so eager to secure the Islamist government of Turkey’s help against the Islamic State that we acquiesce in its bombing of the Kurds—who have been the only consistently effective ground force against the Islamic State (and who are caring for hundreds of thousands of Syrian and Iraqi refugees with little international aid). And now we seem to be sending signals that Syrian President Bashar Assad, whose barbarism spawned this explosion and who continues indiscriminate bombing of his own people, might be acceptable, after all.

Granted, our missteps have made much harder the task of supporting democratic modernists, Muslim and secular alike. In country after country, we encouraged pro-Western democrats to rise against autocrats only to abandon them when they faced predictable repression.

Had we supported the Shiite uprising against Saddam Hussein after the first Iraq war, the resulting regime would have been much more pro-American; by the time we actually intervened, most of our friends had been slaughtered. The same is true for Libya, for Syria, and increasingly for Egypt and Bahrain.

Hopelessness is the fuel that makes al-Qaeda, the Islamic State, and other depraved entities possible. Young men with no jobs and dismal life prospects make easy targets for recruiters offering appealing scapegoats: the West, or Israel, or non-Muslims, or women. Young men despairing of being able to support a family are obvious targets for the false theology of rape.

It is only by vanquishing hopelessness that we can deprive the Islamic State of its lifeblood of recruits; no amount of bombs, and no amount of lesser-of-evils diplomatic maneuvers will do the job.

And hopelessness will not disappear as long as countries are ruled by autocrats, secular or religious: their regimes perpetuate the corruption that prevents development of healthy economies. As long as Assad is in power, al-Qaeda and the Islamic State will grow.

2nd Front Page BusinessMirror

A8 Saturday, August 29, 2015

Comelec, Smartmatic ink deal for 2016 polls

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By Joel R. San Juan

HE Commission on Elections (Comelec) and SmartmaticTotal Information Management (TIM) Corp. finally inked the P1.7billion contract for the lease of 23,000 Optical Mark Reader (OMR) machines that will be utilized in next year’s national and local elections.

Comelec Chairman Andres D. Bautista announced in a news conference that the contract was signed on Thursday, or after almost three weeks of intense negotiations.

Following the signing of the contract, the poll body immediately issued the notice to proceed to Smartmatic for the provision of the 23,000 OMR machines.

The Comelec also disclosed that it had issued the notice of award to Smartmatic covering the lease of 70,977 OMR machines, with a contract price of P6.3 billion.

“We also signed the notice of award in respect to the 70,977 OMR

machines yesterday [Thursday],” Bautista told reporters. “This contract for 70,977 [OMR machines] will mirror the 23,000 contract, so negotiations should not be as intense. We are looking to sign that maybe next week,” he added.

Earlier the Comelec abandoned the option to repair the more than 80,000 existing Precinct Count Opical Scan machines for use in next year’s elections and opted to lease all new OMR machines from Smartmatic. Based on its timetable for the 2016 elections, the Comelec is eyeing the delivery of the new OMR machines by January.

Malaysians gear up for street rallies urging Najib to quit M

alaysian activists are putting more pressure on embattled Prime Minister Najib Razak to resign with major street rallies this weekend, following allegations of suspicious money transfers into his accounts.

Najib has been fighting for political survival, after leaked documents in July showed he received some $700 million in his private accounts from entities linked to indebted state fund 1Malaysia Development Buhad (1MDB). He later said the money was a donation from the Middle East, fired his critical deputy and four other Cabinet members, as well as the attorney general investigating him.

The police have declared the rally, which starts Saturday and ends Sunday, illegal because protesters have no permission to use the Independence Square, a national landmark.

The government blocked the web site of Bersih, the coalition for clean and fair elections that is organizing the rallies, and the army said it will intervene if a state of emergency is declared.

Activist Maria Chin, the head of Bersih, which means “clean” in Malay, said that Najib should resign. More important, she said the political system and state institutions, which have been dominated by the ruling National Front for decades, must be reformed to be more transparent and accountable.

“Many people have lost confidence in Najib. The Bersih 4 rally will show a vote of no confidence against Najib by the people,” Chin said.

She said that Bersih expects more than 250,000 people to attend the rally. It will go on until midnight on Sunday, the eve of Malaysia’s 58th National Day marking independence from Britain. This is the fourth rally organized by Bersih, and the third one since Najib took power in 2009. Tens of thousands of people turned up for the last two rallies in 2011 and 2012, which were dispersed by authorities using tear gas and water cannon. Chin said the protesters will converge at five different locations in Kuala Lumpur before marching to the Independence Square, and will gather around it, after authorities warned that the square is off-limits due to preparations for National Day celebrations.

Rallies will also be held simultaneously in Kuching in Sarawak state and Kota Kinabalu in Sabah state, both on Borneo island.

Deputy Home Minister Nur Jazlan Mohamed said on Friday that the police will monitor and facilitate traffic, but warned of action if it turns violent or protesters break the law. He said protesters should show their unhappiness with the government at the ballot box, not in the streets.

“If they no longer trust the National Front government, they should wait till the next general elections,” due in 2018, he said. Support for Najib’s National Front has eroded in the last two general elections. It won in 2013, but lost the popular vote for the first time to an opposition alliance. AP

M3. . .

Continued from A1

Similarly, bank lending during the period continued to expand but at a slower pace compared to that in June.

The BSP said bank-lending growth averaged 13.5 percent in July, slower than lending activities growing at a comparably faster rate of 14.2 percent in June.

Loans for production activities—which comprise about P8 of the P10 lent by banks to the country— grew by 13.4 percent from the 14.2-percent expansion in June.

“The expansion in production loans was driven primarily by increased lending in the real-estate sector, electricity, gas steam and air-conditioning supply sector, wholesale and retail trade, repair of motorcycle and motor vehicles, financial-insurance activities and manufacturing.

Bank lending to other sectors also expanded, except for transportation and storage, and other community, social and personal activities.

Loans for household consumption, meanwhile, grew by 13.7 percent in July, also slower than the 14.9 percent in June. The growth was brought about by sustained growth in auto loans, credit-card loans and salary loans.

Meanwhile, net public-Tsector credit rose by 6.5 percent in July, faster than the 1.1-percent growth (revised) a month earlier.

www.businessmirror.com.ph

PESO LOGS BIGGEST MONTHLY DECLINE IN ALMOST a YEAR

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he peso fell this month by the most since September, as a surprise yuan devaluation and the prospect of a US interest-rate increase bolstered demand for dollars.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said on Thursday he saw no need to adjust monetary policy given the improving economy, which expanded 5.6 percent from a year earlier in the second quarter after a 5 percent growth in the previous three months. There’s a 54-percent chance the Federal Reserve (the Fed) will raise its benchmark interest rate this year, based on prices in the futures market.

“The BSP’s signal that it doesn’t see a need to change monetary policy supports the dollar,” said Alan Cayetano, head of foreign-exchange trading at Bank of the Philippine Islands in Manila. “When the Fed hikes interest rates, we may see further pressure on the peso.”

The peso fell 2.1 percent from July 31 to 46.735 a dollar at the close of trading in Manila, prices from the Bankers Association of the Philippines show. Local financial markets will be closed for a holiday on Monday.

All of Asia’s emerging-market currencies weakened this month, as China’s August 11 devaluation of the yuan sparked concern of a currency war. Malaysia’s ringgit and Indonesia’s rupiah led losses, with slides of 8.8 percent and 3.2 percent, respectively.

The dollar headed for its first weekly advance against the euro in more than a month, as a rally

in stocks and accelerating growth fueled speculation the US economy will be resilient to a slowdown in China.The greenback has gained against all its Group of 10 peers except the yen this week as traders increased to 53 percent the odds the Fed will raise interest rates this year, from as low as 46 percent on Tuesday. The currencies of New Zealand and Australia, which has China as its biggest trading partner, led declines among major counterparts this week.

“The Fed will desperately try to raise rates in 2015, but they’d certainly like to see stability in equity markets before they do,” said Derek Mumford, director at Rochford Capital in Sydney, who sees the dollar strengthening against emerging- market currencies but struggling against the euro. “In equity and currency markets, huge volatility is going to continue.”

The dollar appreciated 1.1 percent during the past week to 1.1258 per euro as of 6:54 a.m. in London, the biggest gain since the period ended July 17. The greenback dropped 0.9 percent over the same period to ¥120.95.

It was little changed on Friday.

The MSCI Asia Pacific Index of stocks rose for a third day, following an eight-day losing streak.

The US economy expanded at a 3.7-percent annualized rate last quarter, exceeding all estimates of economists surveyed by Bloomberg, a report showed on Thursday. A day earlier, the Commerce Department said capital goods orders increased in July by the most in a year. Bloomberg News

India plans drilling in disputed sea in challenge to China Continued from A1

China warning

China on Thursday again warned India to avoid any exploration activities in disputed areas.

“It’s illegal if any foreign enterprise conducts activities in waters under Chinese jurisdiction without permission,” the foreign ministry said in a faxed statement.

Related parties should “avoid taking actions that will make disputes complicated.”

The South China Sea is estimated to hold as much as 30 billion metric tons of oil and 16 trillion cubic meters of gas, which would account for about one-third of China’s oil and gas resources, according to the official Xinhua news agency.

ONGC Videsh Ltd.—the New Delhi-based explorer’s overseas unit—hasn’t drilled a single well in Vietnam’s oil and gas Block 128 since it was awarded rights nine years ago.

ONGC said on Thursday in an exchange filing that its partner Vietnam Oil & Gas Group, also known as PetroVietnam, has extended the permit for Block 128 to June 2016, after it expired two months ago. officials at PetroVietnam didn’t return calls seeking comments.

India’s navy

ONGC is also seeking renewal for Block 06.1, which has a permit that ends in 2022, the person said. The

block, ONGC’s first overseas asset, started natural-gas production in 2002. ONGC is expanding its presence everywhere and Vietnam isn’t an exception, Chairman Dinesh Kumar Sarraf said in New Delhi on August 13. Spokesman Pallab Bhattacharya didn’t respond to two emails seeking comment.

The company has few reasons to be optimistic about Block 128.

The company earlier abandoned adjacent Block 127 after failing to find oil or gas.

In 2012 China invited foreign companies to explore nine blocks that overlapped with Block 128 and other areas Vietnam had already awarded to companies, including Exxon Mobil Corp.

Since taking power last year, Modi has invested in India’s navy and called for protecting freedom of navigation in the South China Sea. He’s also bolstered defense ties in the region, agreeing to sell Vietnam four offshore patrol boats and approving India’s first-ever naval exercises with Australia.

Vikas Swarup, the spokesman for India’s foreign ministry, didn’t answer calls to his phone or an e-mail seeking comment.

India must be cautious, as it lacks the ability to match China both militarily and economically, said C. Uday Bhaskar, director, Society for Policy Studies in New Delhi. “Will India go to war with China over this?” he said.

“The answer is no.” Bloomberg News