Businessmirror april 25, 2015

Serene journey Tourists ride a banca to get to

a floating gazebo in the middle of Lake Danao, one of the main actitivies on the lake aside from camping, trekking, picnics and retreats. A perfect getaway from the hustle and bustle of the city, Lake Danao is a violin-shaped lake nestled in the mountains of Ormoc.

It has about 139 hectares of total area and is about 700 meters above sea level. NONIE REYES

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

BusinessMirror A broader look at today’s business

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Tuesday, November 2014 10 No. Saturday, April 25,18, 2015 Vol.Vol. 10 No. 19940

n n

P25.00 nationwide | 6 sections 28 pages | 7 days a week

BSP CHIEF SAYS Decline in rice prices to offset hike in power rates, oil prices

April inflation seen hitting 1.9% to 2.8 %

By Bianca Cuaresma

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Lina promises to make BOC ‘more efficient, systematic’

he increase in the price of consumer goods is likely to remain tame in April, despite the hike in oil prices and power rates, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

BSP Governor Amando M. Tetangco Jr. said in a text message to reporters that inflation in April will likely settle between 1.9 percent and 2.8 percent.

“Price pressures may come from the upward adjustments in local pump prices of oil and power rates.

However, higher energy prices may be offset by the continuous decline in rice prices,” Tetangco said.

Should inflation hit the low end of the BSP’s forecast, the rate will be the lowest since August 2009 and will put the four-month average of the country’s inflation at 2.3 percent. In January to March, inflation averaged 2.5 percent.

The projected inflation this month is well within the government’s target of 2 percent to 4 percent for 2015.

Tetangco also said the BSP remains mindful of developments in the domestic and global fronts, and that it is ready to adopt appropriate policies to ensure that economic targets are met.

“Moving forward, the BSP will continue to monitor emerging prices trends and adopt appropriate policies in line with its commitment to See “Inflation,” A2

By Joel R. San Juan

B

and 2007 to 2012 and 2014, it is the least happy compared to its Asean counterparts.

Singaporeans, ranked 24th out of 158 with a score of 6.798 out of 10, are the happiest in the Asean because of their high incomes and healthy life expectancy. This was followed by Thailand, which ranked 34th with a score of 6.455, due to a strong support system and higher

USINESSMAN Alberto D. Lina on Friday assumed office as head of the Bureau of Customs (BOC), replacing John P. Sevilla, who blamed politics for his exit from the bureau.

In his acceptance speech at the turnover ceremony for the post, Lina vowed to continue the reforms that Sevilla had already instituted and to come up with new ideas to make processes in the bureau “more efficient and systematic.”

Lina also acknowledged that he is aware of the obstacles he is facing to efficiently perform his mandate but assured the stakeholders that he is ready to face the challenges considering that it was not his first time to lead the bureau.

Lina served as head of the BOC for five months in 2005, during the term of then-President Gloria MacapagalArroyo. He later resigned together with the so-called Hyatt 10 Cabinet members, who resigned from the Arroyo administration owing to alleged irregularities in the 2004 elections.

“Now that I am here, I believe my extensive experience in the private sector will be tested. The primary task assigned to us is not easy, with the end in view of increasing efficiency and improved revenue generation,” Lina said.

He also assured Finance Secretary Cesar V. Purisima, who attended the turnover ceremony, that more reforms will be put in place “with innovation and determination.”

Lina admitted that he will have

See “Happiness,” A2

Continued on A2

ALL-NEW MUSTANG

Matteo Guidicelli (from left), Ford Ferza ambassador; Minnie Valencia-Bustamante, vice president for marketing and sales, Ford Philippines; Kay Hart, managing director, Ford Philippines; and Stefano Marcelo, Ford Ferza ambassador, during the launching of the All-New Ford Mustang held at Bonifacio Global City Amphitheater. NONOY LACZA

Pinoys find ‘happiness’ in friends and family

By Cai U. Ordinario

W

hat makes Filipinos happy? The answer is simple: family and friends.

Based on the World Happiness Report 2015, having social support, consisting of family and friends who are ready to help in times of need, is the main reason Filipinos are happy.

Apart from a strong support

PESO exchange rates n US 44.2680

system, other top reasons that make Filipinos happy are higher incomes and the freedom to make life choices.

“Countries with sufficiently high quality social capital appear to be able to sustain or even improve subjective well-being in the face of natural disasters or economic shocks, as the shocks provide them an opportunity to discover, use and build upon their communal links,”

the report stated.

However, Filipinos are least happy about corruption. Filipinos still believe that corruption is still widespread in the government and businesses in the country.

Compared to other countries in the report, the Philippines was ranked 90th out of 158 countries with a score of 5.073 out of a perfect 10. While its happiness score improved by 0.219 between 2005

n japan 0.3705 n UK 66.6942 n HK 5.7124 n CHINA 7.1423 n singapore 33.0014 n australia 34.4498 n EU 47.9600 n SAUDI arabia 11.8117 Source: BSP (24 April 2015)

A2

News

BusinessMirror

Saturday, April 25, 2015

Spain. . .

Continued from A8

She said the MFM was a good opportunity for more Spanish goods to be sold to the Philippines.

Meanwhile, Calvo said “there’s no better place than Manila to showcase a fusion of cultures,” as he explained the reason for the staging of the very first Madrid Fusión outside of Spain.

“So far it’s proceeding very well,” he said, adding that “other countries would be jealous of our cultural blend which represents our cultural legacy.” The Spanish ambassador earlier joined Tourism Secretary Ramon R. Jimenez and executives of Madrid Fusión organizers in opening the International Gastronomy Congress by lighting a giant palayok on stage.

Thereafter, Calvo and Jimenez opened the trade exhibit by slicing into a jamon and chopping a lechon, respectively.

The ambassador said the MFM is “an opportunity for both our countries and to share our experience in Spain in incorporating food and gastronomy as a touristic asset for the Philippines.”

He said if the Philippines were to incorporate food and gastronomy in its promotions to foreign travelers, along with its beautiful sites and cultural landmarks, “it will strenghten your offer as a tourist destination.”

Spain, for instance, set up Saborea España (Tasting Spain), a public and private association dedicated to promote food tourism in Spain.

In its 2012 global report on Food Tourism, the United Nations World Tourism Organization said: “Gastronomic tourism is a local phenomenon of universal scope that is in a clear growth phase; it has a positive impact on the economy, employment and local heritage, as tourists seek to get to know not only the local food but also to know its origin and production processes, making it an expression of cultural tourism; it has great potential for expansion as a main motivation for tourism trips and although this type of tourism is still practised by a minority of tourists, the fact is that it is attracting a very select type of tourist with a high volume of expenditure on very high-quality products, and last, the development of gastronomic tourism contributes to improving the general perception of the destination.”

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Lina promises to make BOC ‘more efficient, systematic’ Continued from A1

to focus on the Asean economic integration during his watch. The Asean integration will pave the way for the creation of an Asean Economic Community, a single market among the 10-Asean member-states—Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The integration is envisioned to usher in a freer flow of goods, services, investment and skilled labor in Southeast Asia with trade barriers out of the way.

“This is no longer just a concept, it is already a reality. This initiative is expected to increase trade and economic activity with our Asean neighbors. It is imperative that we ask ourselves if we are prepared for this impending expansion. We have no other recourse. We must be ready. It is time to engage our “ bosses” in an environment revitalized with the spirit of true and efficient service,” Lina said.

Lina said he has come up with five guiding

Inflation. . .

principles in order to prepare the BOC for the Asean economic integration.

These principles include: “Inculcate integrity in our work ethic,” “level the playing field,” “battling corruption,” “addressing port congestion” and “performance management.”

He said corruption should be addressed with a combination of factors such as “increased awareness, appropriate technology and resolute action on violators.”

“We will continue to be as transparent with our data. We will light up the darkest corners where this malady lingers. We will not abandon the campaign to eliminate it. In fact, we will expand it and pursue the campaign with more determination,” he added.

He added that in order for port congestion to be addressed, the BOC should work together with other stakeholders, such as the importers, exporters, forwarders, customs brokers, shipping lines, port owners, port users, trucking companies and all involved in the supply chain.

The BOC will allso tap the support of regula-

Continued from A1

the inflation target and in support of the country’s growth objectives,” he said.

Economists said the Monetary Board, which will meet in May, is expected to retain its current monetary-policy stance.

Earlier, the National Economic and Development Authority (Neda) said high inflation will be kept at bay despite the El Niño weather phenomenon and thin power supply.

“While the current episode of mild El Niño and power woes still pose risks to inflation, the continuing efforts to ensure that appropriate policy actions are implemented are expected to temper inflationary pressures over the near to medium term,” Economic Planning Secretary and Neda Director General Arsenio M. Balisacan said.

The Philippine Statistics Authority is expected to release the April inflation rate in the first week of May.

Happiness. . .

tory agencies such as the local government, the Metropolitan Manila Development Authority, the Philippine Ports Authority, the Department of Public Ways and Highways, the National Police and other institutions.

Sevilla, meanwhile, blamed intense lobbying by some influential groups as one of the factors for his resignation, which President Aquino accepted immediately.

He specifically cited the case of lawyer Teddy Raval, head of BOC’s Intellectual Property Rights Division.

Sevilla said Raval’s appointment to the Enforcement and Security Service (ESS) in lieu of its acting director Willie Tolentino is purportedly being pushed by an influential religious group.

The ESS, according to Sevilla, is a very vital position since it has control over 400 armed police forces of the BOC who are manning the various cargo ports.

Sevilla noted that those lobbying for Raval’s appointment have never mentioned his qualifications and credentials for the post but

consistently dropping the religious sect’s name as his backer.

The former BOC chief said he would appear before the Senate and House of Representatives if he would be called to attend a hearing on the allegations of politicking and influence peddling in the agency.

But if the legislators would ask him to disclose names of these individuals meddling in Customs affairs, Sevilla replied, “I will pray over it.” As this developed, vouched for the full compliance of newly appointed Lina, owner of a logistics and brokerage company, with conflict of interest regulations following his appointment to head the BOC. “Applicable laws are being observed in all presidential appointments,” Communications Secretary Herminio B. Coloma Jr. said. Asked if this meant Lina had already complied with conflict of interest rules and cut ties with Air 21, his company that does business with the bureau he now heads, Coloma assumed this has been done.

With Butch Fernandez and Catherine Pillas

Continued from A1

incomes similar to that of the Philippines. Malaysia, Indonesia and Vietnam followed by ranking 61st with a score of 5.770; 74th, 5.399; and 75th, 5.36, respectively.

The happiness of these three countries were largely due to strong social support and higher incomes.

Among these Asean countries, the least source of their happiness comes from perceptions of widespread corruption, except for Singapore. In Singapore the least source of happiness was the level of generosity. The report stated that this is measured by the donations made to charitable institutions

in the past month.

Overall, Switzerland, Iceland, Denmark and Norway topped the rankings. All four countries have average scores between 7.5 and 7.6, and the differences between them are not statistically significant.

The rest of the top 10 (in order) are Canada, Finland, the Netherlands, Sweden, New Zealand and Australia, all with average scores above 7.28. There is more turnover, almost half, among the bottom 10 countries, all with average ladder scores below 3.7.

The World Happiness Report ranked countries according to incomes or gross

domestic product per capita; social support; healthy life expectancy; freedom to make life choices; generosity; and perceptions of corruption.

Gallup Inc. provided data used in connection with the preparation of the World Happiness Report.

The report is edited by Prof. John F. Helliwell of the University of British Columbia and the Canadian Institute for Advanced Research; Lord Richard Layard, director of the Well-Being Programme at LSE’s Centre for Economic Performance; and Prof. Jeffrey D. Sachs, director of the Earth Institute at Columbia University.

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Editor: Dionisio L. Pelayo • Saturday, April 25, 2015 A3

Retired justice puts Sereno to task for scolding lawyer

A

By Joel R. San Juan

RETIRED Supreme Court (SC) justice and noted constitutionalist has called on the sitting justices to refrain from scolding lawyers during interpellation to avoid accusation of bias and prejudgment.

Sereno

force of better reasoning, the Court decides that it erred in adopting the doctrine and decides to overrule the doctrine,” he explained.

Earlier, Fr. Ranhillo Aquino, dean of the San Beda College Graduate School of Law, said Sereno may have prejudged the case involving Binay when she spiritedly articulated her stand against the condonation doctrine.

“Appearances of siding with a theory or a party should be avoided,” Mr. Aquino said an interview with justice and court reporters.

President Aquino said the manner of interpellation by Sereno would appear to be a prejudgment of the case for ordinary people, but also stressed that justices “are like that in many times” during oral arguments.

Retired Associate Justice Vicente Mendoza made the plea, after Chief Justice Maria Lourdes P.A. Sereno reprimanded lawyer Sandra Marie Coronel for espousing the condonation doctrine to

defend her client, Makati Mayor Jejomar Erwin “Junjun” Binay, during the oral arguments on a petition brought to the Court by Ombudsman Conchita Carpio Morales.

The Ombudsman’s petition

SC allows Napoles to attend hearings at Sandiganbayan

Mary Jane transferred to ‘execution prison’

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HE Supreme Court on Friday granted the request of Sandiganbayan Presiding Justice Amparo CabotageTang for pork-barrel scam alleged mastermind Janet Lim-Napoles to be brought to the antigraft court to attend bail hearings on several plunder cases filed against her.

The antigraft court chief magistrate’s request was prompted by Napoles’s conviction by the Regional Trial Court in Makati City of serious illegal detention, where she was sentenced to reclusion perpetua.

Consequently, Napoles was moved to the Correctional Institute for Women (CIW) in Mandaluyong City from Camp Bagong Diwa in Taguig City to commence her service of sentence.

Under the Rules of Court, any hearing for a convicted person should be conducted in the prisoner’s place of detention.

However, citing impracticality and reasons of security, Cabotaje-Tang requested the SC for permission to allow Napoles to be brought to the Sandiganbayan on those dates that her bail hearings would be conducted.

“Finding the reasons to be well-taken, the SC has granted the request,” SC Spokesman Theodore Te said. Joel San Juan

By Recto Mercene

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HE appeal for convicted Filipina drug trafficker Mary Jane Veloso to be spared from the death penalty appears to have dimmed, as she was taken out of the Wirogunan Prison in Yogyakarta and taken to the prison island of Nusakambangan on Friday morning.

Vice President Jejomar C. Binay reiterated his appeal for prayers for Veloso, after learning of her sudden transfer.

“I urge everyone to include Mary Jane and her family in their prayers.

Let us pray that the Indonesian government will heed our appeal for the commutation of Mary Jane’s sentence,” Binay said.

Nusakambangan is an island prison for high-profile prisoners, and sometimes known as Execution Island.

An armored car leading a convoy of vehicles, believed to be carrying Veloso, was seen leaving her prison.

She is among foreign drug convicts who are facing imminent execution, despite the appeal of the Philippine

sought the nullification of the writ of preliminary injunction that the Court of Appeals issued, enjoining it from implementing the six-month preventive suspension order it issued against Binay

in connection with graft charges filed against him.

Sereno aggressively questioned Coronel during interpellation on the condonation doctrine that the SC itself laid down 56 years ago, and which it has never set aside or reversed.

Mendoza, who served the SC for nine years until 2003, said it was unfortunate that Sereno vented out on a lawyer her frustration over the condonation doctrine, which she branded as “unfortunate doctrine” and example of a “bad-case law.”

“Don’t scold lawyers for invoking the doctrine. After all, that doctrine was laid down by the Court itself,” Mendoza said.

Mendoza added that under the doctrine of stare decisis (let the decision stand), that is the law until, by

government and international bodies for clemency.

The Department of Foreign Affairs (DFA) said in a text message that the Indonesian government has ordered all prisoners up for execution, with or without pending appeal, to be transferred to the island, including Veloso.

“Lawyers and embassy were not notified in advance of the transfer,” the Dfa said, adding that the media would be informed of developments as they happen.

In a letter he gave to Vice President Jusuf Kalla at the sidelines of their bilateral meeting in Jakarta on Wednesday afternoon, Binay sought the compassion of his Indonesia counterpart to spare the life of Veloso and commute her death sentence.

“I most respectfully appeal for your humanitarian consideration on the case of Mary Jane Veloso, a Filipino national sentenced to death in Yogyakarta in 2010. She comes from a humble background and attained only a basic education. She is also a single mother of two sons,” he said.

“She became the target of a neigh-

bor by the name of Maria Cristina Sergio, who offered her work as a household worker in Kuala Lumpur, Malaysia. Mary Jane happily accepted, as her only intention was to work overseas in order to earn enough to provide a better future for her two children, who depend solely upon her for support,” he added.

Binay mentioned that Veloso had been an “unwitting victim of drug trafficking,” and she did not know she was carrying heroin in her bag when she was traveling to Indonesia.

“All of our investigations indicate that she was, indeed, fooled into carrying the drugs into Indonesia.

The Philippine Drug Enforcement Agency, after having investigated and interviewed Mary Jane, categorically stated their opinion of her innocence in drug trafficking. If, indeed, Mary Jane had been working as a drug mule, surely her family would have felt the benefits of the illicit trade, and would not be in such dire financial straits up to the present,” Binay said.

“I appeal to you on considerations of compassion, and assure you that the Philippine government is ex-

hausting all avenues to ensure that proper justice is served to those responsible for deceiving Mary Jane into having brought the drugs into Indonesia. The National Bureau of Investigation has filed cases of human trafficking against Miss Sergio and other accomplices,” he added.

The Vice President also assured Kalla that the Philippine government fully respects the stand of the Indonesian government to the rule of law.

“I merely ask that the penalty of death not be implemented on a woman, a single mother, and clearly an unwitting and unwilling victim of merciless drug-trafficking syndicates,” he said.

Located on the Indian Ocean and separated by a narrow strait off the southern coast of Java island, Nasukambangan has been dubbed by by journalists as the “Alcatraz of Indonesia.”

The island is notorious for its maximum-security prisons, home to convicted murderers, terrorists, drug traffickers, and those convicted in high-profile corruption cases.

British military natural Legislator seeks review of hybrid voting system disaster specialists arrive A

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OME 40 members of a specialist British military unit have arrived in the Philippines this week to work alongside the government and disaster-relief organizations as part of an annual training exercise in different parts of the world.

Focusing on Manila, members of 77 Brigade will share experiences with government departments, local authorities and humanitarian agencies in an integrated approach modeled on the scenario of a major earthquake.

Their mission during the twoweek deployment will be to look at examples of the existing Philippine earthquake contingency response plans; and working with Philippine colleagues, offer suggestions that will help save lives by enhancing the country’s ability to respond to an earthquake in an urban setting.

British Ambassador Asif Ahmad said, “The effects of Typhoon Yolanda [international code name Haiyan] were a real eye opener, not just for the Philippine government but for many others across the world, including our government. We are very much aware of the importance of proper planning in mitigating the worst effects of natural disasters. Thousands of lives can be saved by effective preparation and coordination in advance of and in the aftermath of disasters. Exercise Civil

Bridge is Great Britain’s continuing commitment to working together on disaster risk management, learning and sharing with each other.”

The exercise commander, Lt. Col. Jem Blades of the Royal Engineers, said: “It’s great to be here, working with the Philippine government and, in particular, the National Disaster Risk Reduction and Management Council regarding earthquake-mitigation measures in Manila.”

“It’s an excellent opportunity for the British Armed Forces to work closely with a broad spectrum of experts from government departments, nongovernment organizations and local authorities, as well as the Philippine Armed Forces.”

“Our teams include individuals who bring specialist knowledge of earthquakes, humanitarian relief and disaster recovery, and we hope to share our experiences, as well as learn from others.”

Blades added, “What we learn here in Manila will also enable us to work more effectively with others in different parts of the world.”

77 Brigade draws upon a wealth of civilian and military skills from both Regular and Reservist members from the Army, Royal Navy and Royal Air Force, who provide expertise ranging from civil engineering and policing to strategic communications. Recto Mercene

minority congressman on Friday said the Commission on Elections (Comelec) must now work double time to prepare for the 2016 national elections, following the Supreme Court’s decision to scrap the P268-million contract between the Commission on Elections and Smartmatic-TIM. Given this situation, Nationalist People’s Coalition Rep. Rodito Albano of Isabela, a senior member of the House Minority Bloc, said the Comelec must now determine the viability of using the Transparent and Credible Election System (TCrES that had been proposed to the poll body before.

Albano said the Comelec is duty-bound to immediately chart a new timeline and look for viable alternatives to the ill-fated Smartmatic-TIM contract.

“No way should the poll body be deterred from seeking new options, even as it is expected that Smartmatic-TIM would file a motion for reconsideration and other legal maneuvers,” Albano said.

The TCrES is an open Internetbased voting system that promises transparency and openness as it provides a mix of manual and automated processes.

Under the TCrES system, the voting and precinct count or canvass will be done manually before they are encoded at the precinct level prior to transmission of the precinct results electronically to the municipal, provincial and national board of canvassers, as well as the Central Verification Server for the official automated counting of votes.

This hybrid system is easily implementable and would cost the

government a billion less compared to the Smartmatic-TIM contract, Albano said.

He said the hybrid system follows the new election patterns in other First World democratic countries, particularly in Germany, where a reversal to manual elections was adopted because of the imperative need to ensure openness and transparency in every step of the election process.

The downside in automated elections is the lack of openness and transparency in the counting or canvass of votes, and its transmission to the municipal, city, provincial and national board of canvassers, Albano said.

“No one really knows what the count is after voting at the precinct level, until these so-called automated results are finally released to the public,” Albano said.

Binay to rich countries: Be protector not aggressor of weak neighbors

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HE leaders of A sia and Africa’s more progressive countries were urged to act as protectors of its neighbor countries, instead of being sources of insecurity and fear.

The appeal was aired by Vice President Jejomar C. Binay, as he also invoked the principles adopted during the first Bandung Conference espousing peace and sovereignty of nations over their territories, saying these have “gained greater validity and relevance over time” and “remain the best weapons of the weak against the strong.”

Binay, reading the Philippines’s position during the 10th anniversary of the New Asian-African Strategic Partnership and the commemoration of the 60th anniversary of the Bandung Conference, also emphasized the opportunity of testing the principles in the relationship between nations in the “Global South.”

“But the spirit of Bandung could have a greater opportunity to be tested not necessarily in the relationship between North and South, but in the relationship between South and South. The spirit could come fully alive when the more powerful countries in Asia and Africa, instead of becoming the source of insecurity and fear for others, would act as protector of the sovereignty and territorial integrity of their lesser neighbors.”

“We would like to believe that the countries that had the courage to proclaim the spirit of Bandung 60 years ago are in the best position to pursue this option today,” he said.

Binay also maintained that all countries have the responsibility of maintaining peace and pursuing prosperity, and lauded the efforts of countries such as Japan to foster cooperation with the international community in bringing peace and prosperity.

“The Philippines believes that we all have the responsibility of maintaining peace and of continuing pursuit of prosperity, and welcomes the proactive efforts of countries such as Japan to further cooperate with the international community in bringing greater peace, stability and prosperity,” he said.

Binay also expressed optimism that Asian and African countries could play a vital role in instituting meaningful change worldwide.

“We have no doubt that working together through the Group of 77 and the Non-Aligned Movement, the countries of Asia and Africa could perform a vital role in constructing a world without famines, ignorance, terrorism or war—a world where science and the arts have combined to extract the best possible results from scientific innovation and technological change.

The spirit of Bandung could provide the political impetus to lift us to greater heights,” he added.

“Let the spirit of Bandung 60 years ago continue to be our beacon, as our two great continents, Asia and Africa, forge ahead in strategic partnership and for the greater benefit of our people.” Recto Mercene

Govt team bags ranking Samar NPA leader

By Rene Acosta

A

COUNTER INSURGENC Y team composed of soldiers and policemen arrested on Thursday a leader of the New People’s Army (NPA) and his wife in Batangas.

Norberto Boricco, alias Isaw, and his wife known by her aliases “Indi” and “Eldi” were arrested in a joint law-enforcement operations

by National Police and Armed Forces intelligence personnel at Barangay Niogan, Lemery, Batangas.

Criminial Investigation and Detection Group agents who accompanied the raiding team served the warrants of arrest against the two.

They were the subject of a warrant of arrest for murder and frustrated murders that were allegedly committed in Samar.

Authorities recovered from their possession a hand grenade, a laptop computer, a smartphone, six cellular telephones and seven flash drives.

Borrico is the front secretary and finance officer of the NPA in Northern Samar. He allegedly led the twin attacks in the towns of Oras and Arteche in Eatern Samar in 2003 and 2013 where 11 soldiers, two policemen,

five militiamen and one civilian were killed. The arrest of the couple was a result of a tip from an NPA supporter who confessed that he was already tired of receiving extortion threats and demands from the NPA guerrillas.

The Armed Forces chief of staff, Gen. Gregorio Pio Catapang Jr., commended the operating troops for the successful arrest of the couple.

Economy

A4 Saturday, April 25, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Industry revenue growth slowed 8% in Q4 2014–PSA

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By Cai U. Ordinario

he growth of the gross revenues of key industries slowed to 8 percent in the fourth quarter of 2014, according to the Philippine Statistics Authority (PSA).

Data showed that the growth of the Total Gross Revenue Index (TGRI) in the October-to-December 2014 period was slower than the 8.3 percent posted in the same period in 2013.

The PSA attributed this slowdown to lower total revenues from the trade and transportation and real-estate industries, which slowed to 7.7 percent and 7.5 percent in October to December 2014.

The growth of the TGRI was kept positive due to higher growth in the manufacturing, private services and finance sectors.

Manufacturing and private

services sectors managed to accelerate with a growth of 8.8 percent from 8 percent and 9.2 percent from 3.3 percent, respectively.

Finance, on the other hand, recorded a double-digit growth of 10.2 percent, albeit a slight deceleration from a growth of 10.5 percent in the same period last year.

Meanwhile, PSA data showed that the Total Compensation Index also strengthened with a growth of 8 percent during the fourth quarter of 2014, from 6.1 percent in the same period in 2013.

This was led by private services’ double-digit growth of 10.2 percent

from 7.1 percent in the same period in 2013. This was largely due to the increase in transportation and communication with 7.7 percent from 2.9 percent, and electricity and water with 3.5 percent from 1.7 percent.

The PSA said industries that pulled down the total compensation index were led by mining and quarrying, which suffered a 9.9-percent slump from a doubledigit growth of 10.8 percent from the same period last year.

Further, data showed that real estate slowed to 8.5 percent from the 13.8 percent growth posted in 2013, and finance with 4.9 percent from 11.8 percent.

Total Compensation per Employee Index registered a slightly higher growth of 3.3 percent from 3.1 percent in 2013.

Leading the sectors are electricity and water with 5.3 percent, and transportation and communication with 5.1 percent. These are followed by manufacturing with 3.9 percent; private services with 2.3 percent; and trade with 1.5 percent.

The rest of the industries, however, suffered significant setbacks during the period. These were real estate, finance, and mining and quarrying.

Summer-drought consequence Supply of lowland vegetables sold at Kayang, Baguio City Market, is beginning to

come in trickles due to the drought experienced by farmer-producers in the country brought by El Niño. Water levels in dams are also reaching critical levels, with some dam managements being forced to stop power generation in the meantime in order to supply badly needed irrigation needs. Mau Victa

LRT Line 6 gets ‘conditional’ OK from ICC-Cabcom

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he national government is in the process of finalizing a public-private partnership (PPP) scheme for the Light Rail Transit (LRT) Line 1 extension to Dasmariñas, Cavite, according to the National Economic and Development Authority (Neda).

Economic Planning Secretary Arsenio M. Balisacan told reporters on the sidelines of the PPP Forum on Friday that the Investment Coordination Committee-Cabinet Committee (ICCCabcom) level granted a conditional approval for the project, which is also known as LRT Line 6.

Balisacan said the ICC-Cabcom

wants to ensure that the PPP scheme to be adopted for the 19-kilometer rail line will be advantageous for both the public and private sectors.

“The condition was before we elevate it to the Neda Board, we need to show the other option so that we can compare which one is better for the country, better for government, better for the users of the facility,” Balisacan said.

PPP Center Executive Director Cosette Canilao said the initial PPP scheme presented by the Department of Transportation and Communications (DOTC) is a build, transfer, operate and maintain scheme.

Under this scheme, the public sector contracts out the building of an infrastructure facility to a private entity. The contractor builds the facility on a turn-key basis and assumes the cost overrun, delay and specified performance risks.

The DOTC, she added, is looking at the possibility of undertaking the project through a build-and-transfer scheme, which entails the private sector building a facility and transferring it to the government. The government will then pay the proponent on an agreed schedule its total investments expended on the project, plus a reasonable rate of return thereon.

“Meron pa silang gustong i-explore na other option. The first option that they already showed is a PPP option that looks promising, especially from the economic filters and other technical issues. But they also want to see other options for the implementation,” Balisacan said.

The P64-billion-worth LRT Line 6 Project will run from Niyog, Bacoor (the terminal of the LRT 1 Cavitex extension) to Dasmariñas City. The proposed right-of-way alignment is along the Aguinaldo Highway with 7 stations, namely: Niyog, Tirona, Imus, Daang Hari, Salitran, Congressional Avenue, and Governor’s Drive. Cai U. Ordinario

briefs PRESIDENT AQUINO LAUDS PEZA FOR BOOSTING INVESTOR CONFIDENCE IN THE COUNTRY President Aquino on Thursday commended the Philippine Economic Zone Authority (Peza) for boosting investor confidence in the country and thanked investors for betting on Filipinos.

In his speech during the 20th anniversary celebration and investors’ recognition night of Peza at the World Trade Center in Pasay City, Mr. Aquino reported that as of December last year, the Peza has approved a total investment of P2.86 trillion. The President noted that of that amount, more than 45 percent, or about P1.3 trillion in investments, was recorded under his administration.

“Recent developments leave us optimistic that this trend will continue: after all, in 2014, the Philippines recorded an all-time high of $6.2 billion in net foreign direct investments, almost six times what we received in 2010,” he said.

“At the rate we are going, Peza-recorded investments under this administration may soon exceed the value of the investments recorded under the previous three administrations,” he said. PNA

davao del sur town mayor reaffirms no-mining policy

MAGSAYSAY, Davao del Sur—Mayor Arthur Davin stands firm on his earlier pronouncement that this municipality is a no-mining zone. This, as Davin brushed aside speculations that he already softened his stand with the impending implementation of two roadconcreting projects in upland barangays.

“There is no truth about this report. It is my firm resolve that we would not allow mining activities here in our town,” he said during the consultative orientation and community processing in Sitio Bila in Barangay San Miguel here on Thursday night.

He said the concreting in Balnate-Tagaytay and Bacungan-Tapicong farm-to-market road is a project under Mapayapa at Masaganang Pamayanan of the Office of the President, which prioritizes conflict areas.

Davin is hopeful that the project would be a great help in resolving the insurgency problem in remote barangays. PNA

Green labeling program now covers construction, procurement, tourism

V

arious stakeholders from the government and the private sector vowed to intensify the campaign for sustainable production and consumption by expanding the National Ecolabeling Programme-Green Choice Philippines (NELP-GCP) for environment-friendly products and services to include construction, public procurement and tourism.

Presidential Adviser on Environmental Protection and concurrent Laguna Lake Development Authority (LLDA) General Manager Nerius Acosta said the campaign will bolster public-private partnership efforts toward a “greener” Philippines through green labeling.

The labeling of environmentfriendly products with the Green Choice Philippines (GCP) seal will now cover national and local government units (LGUs), construction and tourism industry.

Acosta said eco-labeling the tourism industry will give patrons a choice to go for environment-friendly hotels, restaurants or resorts. The same way, eco-labeling will be promoted in sustainable construction Acosta, also chairman of the Philippine Center for Environmental Protection and Sustainable Development Inc. (PCEPSDI), said the partnership aims to raise awareness about the environment and the need to promote sustainable production and consumption as the country continue to face the worst impacts of climate change.

A memorandum of cooperation was signed between the PCEPSDI and members of the GP3 Conference Conveners’ Committee, formalizing the partnership during the launching and news conference of the Kalikasan GP3 Expo Conference during simple rites held at the LLDA Green Building at the National Ecology Center in Quezon City on Friday morning.

Those who signed the memorandum of cooperation aside from Acosta were Quezon City Mayor Herbert Bautista, president of the League of Cities of the Philippines (LCP); Trade Undersecretary Victorio Mario A. Dimagiba, also concurrent chairman of the NELP-GCP Board; and Raymond Rufino, chairman of the Philippine Green Building and vice president of the Net Group.

The GP3 Expo Conference happening from July 23 to 25 at the SMX Convention Center will showcase various green products and technologies available in the market.

“Through the event, we want to heighten awareness of various stakeholders about the environment,” he said.

Acosta said at least 1,000 exhibitors will take part in what was described as the biggest public-private partnership to advance sustainable development.

Bautista, for his part, vowed to sustain Quezon City’s drive to go green through green procurement. He said a Green Procurement Program has been put in place as early as 2012, but raised concern of the limited number of products with the GCP label.

He said that with more products being awarded the GCP label, the Quezon City government will be able to implement the GPP to boost its claim of being the “greenest city” in the country.

He also said that as part of the effort to go green, he will suggest to the LCP, the Union of Local Authorities of the Philippines and the various “Liga” to conduct and attend seminars on various green initiatives of the government and the private sector.

According to Dimaguiba, almost 50 products with the GCP label or seal are now available in the market. The NELP-GCP has established around 40 environmental standards from a wide range of products and services, such as household products, cleaning agents, office supplies, paper products, information technology and electronic equipment, select construction materials, industrial products, food services and automotive repair shop, by which the consumers can demand for environmentally preferable products and services.

The NELP-GCP is an International Organization for Standardization 14024 application on product environmental certification sanctioned by the Department of Trade and Industry and the Department of Environment and Natural Resources. It is a third party, voluntary, multiple criteria scheme based on life cycle consideration that awards the GCP Seal of Approval to a product or services that could find to meet environmental standards under the program.

Economy BusinessMirror

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briefs APEC EYES UNIFIED AUTO MARKET FOR AUTOMOTIVE SECTOR The Asia Pacific Economic Cooperation (Apec) is gearing toward a unified market for automotive sector through improvements of its exchange of information on standards, updates and trends among its member-nations.

Apec Automotive Dialogue Chairman Ma. Corazon Halili-Dichosa, at a news conference in Makati City on Friday, said that enhancing the access to information in Apec’s auto industry will enable small and medium enterprises (SMEs) to participate in the global value chains (GVCs).

Halili-Dichosa, who is also the Philippines’s Board of Investments (BOI) executive director, mentioned that SMEs have poor access to information on standards and trends, making it harder for them to participate in auto GVCs as concluded during the Automotive Dialogue.

In order to address the constraint, the Philippines and Malaysia are pursuing the GVC-SME Integration for the Automotive Sector Project. PNA

DOTC, consortium sign concession pact for P3.27B ITS Terminal project

T

By Lorenz S.Marasigan

he concession agreement for the multibillion-peso Integrated Transport System (ITS) Southwest Terminal project was signed on Friday, finally sealing the deal after a two-month delay due to issues pertaining to land titling.

The formal contract was signed by top government officials and executives of Megawide Construction Corp., and Walter Mart Property Management Inc. The two companies are the two lead proponents of the MWM Terminals, the corporate

vehicle that will build and operate the transportation hub southwest of Metro Manila for 35 years.

“Hopefully, they could build the new facility in the shortest possible time. It is a much smaller infrastructure compared to the others

that we have awarded,” Department of Transportation and Communications (DOTC) Secretary Joseph Emilio A. Abaya said in an interview on Friday.

The consortium won the contract earlier this year after it offered the lowest annual grant or payment of P100 million, hence the total project cost is now pegged at P3.27 billion.

“We are proud to once again partner with the DOTC on such a landmark project. With the Southwest Terminal, we are able to facilitate the faster and more efficient flow of traffic carrying people and goods to and from Metro Manila. It will benefit thousands of commuters daily.

Our infrastructure is finally catching up to our growing economy,” MWM Terminals representative Louie B. Ferrer said.

The signing of the concession agreement came after a two-month

PALACE SEES POSITIVE IMPACT OF E.U.’S LIFTING OF YELLOW TAG TO LOCAL FISHERMEN Malacañang on Friday welcomed the lifting of the “yellow card” issued to the Philippines by the European Union (EU), saying it will have a very big positive impact to the local fishing industry. ”We have a very good news.

It’s not just an advisory or a warning that was lifted but how the lifting of the particular card warning actually has a very big impact on the lives of our fishermen and those involved in that industry,” Palace Deputy Spokesman Abigail Valte said at a news briefing.

Valte was joined by Department of Agriculture Secretary Proceso J. Alcala and Bureau of Fisheries and Aquatic Resources Director Asis Perez in the media briefing.

Alcala and Perez thanked President Aquino, as well as the lawmakers, for coming out with measures that prompted the EU to remove the Philippines from the list of countries with yellow warning due to failure to address illegal, unreported and unregulated (IUU) fishing.

The EU issued the yellow tag to the Philippines in June 2014 but only 10 months later, the country was able to address the IUU fishing that prompted the EU to lift the warning yellow card. PNA

delay due to the “clarificatory questions” posed by the private-sector partner on land titling.

Separately, Transportation Undersecretary Rene K. Limcaoco said the issue has already been resolved and has no large impact on the project itself.

The multibillion-peso transport terminal contract provides for the construction of an intermodal terminal near the ManilaCavite Toll Expressway (Cavitex) to connect passengers coming from Cavite to urban transport systems in Metro Manila.

It will include a passenger terminal building, arrival and departure bays, public information systems, ticketing and baggage-handling facilities and park-ride facilities.

“We visited a number of intermodal transport systems in foreign countries, most recently in Melbourne,

Australia. We were inspired by the advancements they have made in terms of facility and operation. We are hopeful that we can apply the same forward-thinking processes in our country,” Ferrer said.

Megawide has cemented its image as a mainstay in the government’s flagship infrastructure program, bagging a number of public-private partnership (PPP) projects, including the P16.42-billion PPP for School Infrastructure Project Phase I; two of the five contracts under the P8.8billion PSIP Phase II; and the P5.7billion deal for the construction, operation and maintenance of the Philippine Orthopedic Center.

The state intends to plug the gap in the country’s transportation infrastructure in the next decade by rolling out massive infrastructure projects that are seen to spur economic growth.

Govt vows reforms to attract private sector investment in infra projects

phl products well positioned for e.u. market Walter Van Hattum, counselor, head of the Economic and Trade Section of the European Union Delegation to Manila, said the Philippines is “getting more and more in the radar screen of Europe.”

“The Philippines is extremely well positioned as far as the European Union is concerned. One part that we could work on together is getting a little bit more highlights,” he said. Hattum was in Iloilo city on Thursday where he talked about export opportunities, the Generalized Scheme of Preference (GSP) plus-covered products in the EU before Iloilo stakeholders. He shared that he saw many business missions, more people from Europe coming to the Philippines for trade missions.

Nonetheless, he disclosed that they are currently working with mango producers of Guimaras to register them as GSP geographical indication that will double their value as well as the Davao pomelo. PNA

Saturday, April 25, 2015 A5

By Leslie D. Venzon Philippines News Agency

T

he government has vowed to continuously improve publicsector governance and institute policy reforms to improve the business climate in the country, as it taps increased private-sector participation in infrastructure development.

Economic Planning Secretary Arsenio M. Balisacan said that apart from priority programs and projects, several nonstructural reforms have been pursued to streamline government processes.

Balisacan said these include the revision of the build-operate-transfer law implementing rules and regulations (IRR) and the joint-venture guidelines. “[These will] make the business environment conducive to investments and to address constraints and bottlenecks in infrastructure provision.... Indeed, the current administration has achieved major achievements in infrastructure development,” he said at the forum on financing options for publicprivate partnerships (PPPs) on Friday.

Balisacan said that through privatesector investments under the country’s pioneering PPP Program, pub-

Choral festival

Sen. Cynthia Villar (insert) delivers her speech during the Choral Festival Competition in observance of the 167th birth anniversary of the healing Saint Ezekiel Moreno at the Santuario de San Exekiel Moreno on Thursday at C-5 Extension in Pulang Lupa, Las Piñas City. PNA

lic resources can be freed up and be utilized for the provision of muchneeded social services. He particularly cited investors, banks and other financing institutions that can provide the country’s PPP program with various financing options.

Balisacan, also the National Economic and Development Authority director general, said these options include creating a suitable environment for issuance of project bonds for PPPs, packaging and financing for PPP projects, sovereign guarantees for PPPs and implementing measures to attract institutional investors.

Based on the Comprehensive and Integrated Infrastructure Program (CIIP) 2013-2016 and beyond, the priority programs and projects for the infrastructure sector comprises a total of 3,077 projects with total investment requirements amounting to about P6.58 trillion.

As stipulated in the Philippine Development Plan (PDP), the government aims to increase public infrastructure spending from 2.7 percent of the gross domestic product in 2013 to at least 5 percent, or about P826 billion, by 2016 to support the country’s growth requirements in the next few years. PNA

Hedcor hydro plants seen to hike power supply for Mindanao by 2016

By Bong Fabe Correspondent

M

ANOLO FORTICH, Bukidnon—Hedcor Inc., the wholly-owned AboitizPower subsidiary that specializes in generating “cleanergy” from run-of-river hydropower systems will “more than double” its installed capacity in Mindanao once its two power plants in this municipality go online in 2016.

Hedcor is currently constructing two cascading plants in this municipality known to be the home of the first pineapple plantation in the far east: the 43.4-(megawatt) MW Manolo Fortich Hydro 1 and the 25.4 MW Manolo Fortich Hydro 2. Groundbreaking ceremony for these plants was held on April 22.

The P12.5-billion plants will have a combined installed capacity of 68.8 MW and will generate a total of 360 gigawatt-hour (GWh) of electricity every year.

“This will be the biggest plant of Hedcor anywhere. Once this goes online, we will more than double our installed capacity in Mindanao in 2016,” said Rene B. Ronquillo, Hedcor president and chief operating officer.

Once they go online, the Manolo Fortich hydropower plants will bring Hedcor’s total installed capacity in Mindanao to 129.7 MW. At present, Hedcor’s total installed capacity in Mindanao is 60.97 MW. Hedcor’s present Mindanao hydropower plants are the Tudaya Hydro 1 (6.6 MW) and Tudaya Hydro 2 (7 MW) in Davao del Sur and Davao City; Sibulan Hydro A (16.50 MW) and Sibulan Hydro B (26 MW) in Santa Cruz, Davao del Sur; Talomo Hydro 1 (1 MW) in Calinan,

RONQUILLO

Davao City; Talomo Hydro 2A (0.65 MW) and Talomo Hydro 2B (0.30 MW), Talomo Hydro 2 (0.60 MW) in Mintal; and Talomo Hydro 3 (1.92 MW) in Catalunan Pequeno, Davao City.

Aside from doubling its capacity in Mindanao, the Manolo Fortich plants will add to the total energy mix in Mindanao and help “lighten” the so-called Mindanao power crisis prevailing since 2010. “With the incoming coal plants of Aboitiz Power Corp. and other developers, Mindanao should be okay as far as base-load is concerned two to three years from now,” Ronquillo told The BusinessMirror.

Ronquillo explained that while coal plants

are reliable base-load plants, especially during the summer months in Mindanao when rivers and dams usually dry up, they are still unreliable in the long run because of the volatile prices of coal in the international market. “Indigenous plants are more reliable in that sense,” he said.

The Philippines is a net importer of coal to power the country, which is why powerindustry players and the energy department always say that the country’s power/energy is imported, thus it has the highest electricity rate in Southeast Asia.

“In Aboitiz, we believe that the best strategy in moving forward would be through the

power-energy mix. That’s why aside from the coal plants that we have in Mindanao now, we are also developing more hydro and also looking at geothermal plants in other parts of Mindanao,” Ronquillo said.

Fossil fuel (coal, oil, etc.) power 72 percent of the country’s electricity requirement while a measly 28 percent is sourced from renewable energy (RE). The Mindanao Power Monitoring Committee (MPMC) said that by 2019 and 2020, Mindanao’s power mix will consist of 56 percent coal and only 24 percent hydro; a reversal of the present 52 percent hydro and 10 percent coal. RE sources, such as biomass and solar energy, will remain at 1 percent each by 2020 while geothermal power, which is at 5 percent now, will be down to only 4 percent by 2020.

Cagayan de Oro City is suffering from two to three hours of power outages daily as the present electricity supply to the grid could not cope with demand.

The National Grid Corp. of the Philippines said in its power-situation outlook as of April 24 that Mindanao’s system capacity was at 1,438 MW, while its system peak was at 1,397 MW with zero reserved capacity.

The Manolo Fortich power project, according to Manuel M. Orig, AboitizPower first vice president for Mindanao, “is the first hydropower project of Hedcor in Bukidnon which will soon help provide additional reliable supply of Cleanergy, AboitizPower’s brand of clean and renewable energy to Mindanao.”

Once online, the Manolo Fortich plants will generate electricity for the whole of Mindanao as it will be sold directly to the grid and not to an electric cooperative, Ronquillo said.

A6 Saturday, April 25, 2015

Opinion BusinessMirror

editorial

Which billion is best?

W

E have traditionally divided the world by geographical features. We have the “Seven Seas” and the seven continents.

Each of those individual divisions has its own particular placement on the planet, as well as its own unique characteristics. However, a major storm with exactly the same qualities is called a “hurricane,” “typhoon” or “cyclone,” depending on its location.

We can also divide the world into another “seven.” The population of Earth is now 7 billion people, and that amount divides by seven in an interesting pattern.

About 1 billion people live in the combined areas of North and South America and Australia. Australia and New Zealand belong more to the “New World” than they do to the “Old World,” or Asia.

The continent of Africa alone holds 1 billion humans. The population of central and southern India, extending through Bangladesh and Myanmar, counts for another 1 billion. To count 1 billion in Europe, we extend the map east to the Ural Mountains and down through the Middle East and west to Iran, as these people are neither African nor Asian and have been more closely part of the European continent through history.

The rest of Russia and then south through Central Asia to the Indian Ocean through Pakistan makes up another billion. Northern China, with the Korean peninsula and Japan, is the sixth billion.

Finally, we reach Southeast Asia and southern China—which, in many respects, has a closer affinity with its southern neighbors than with the north—to complete our 7 billion.

While each of these areas may be approximately equal in population, in physical size, natural resources and basic qualities, like arable land and water, they are completely unequal.

Looking at the big picture, you might think that Africa would be the place to go with most of the continent filled with all the resources for great human prosperity. It would be easy to dismiss the 1 billion living in the Indian region, as population density would strain their resources. Europe looks like the ideal place for trade, as it covers a wide variety of climates and lands, where a large range of goods would be produced. The same applies to Russia and Central Asia. China, through to Japan, embraces old and long-standing cultures developed over many thousands of years.

Then, there is the Southeastern Asia region spread out in an area almost as large as North America, made up of thousands of islands divided by large expanses of water.

Yet, of all the regions, this area currently has the strongest economic growth and, in many ways, the brightest prospects for the future.

Unlike in all the other areas, there is not a single country in our neighborhood that is in deep economic trouble. With the exception of Northern China meddling in the region, none of us are at war with each other. While most of the other areas are a risk of breaking apart, Southeast Asia is coming more together.

The “best” billion live in the area about three hours flying time from Manila.

What is money John Mangun

D

OUTSIDE THE BOX

eep behind locked doors, inside the offices of governments and central banks, they understand it. High in the penthouse board rooms of the global financial institutions, they also understand it. International companies that never close, they, too, understand it.

But the average person, whether living in the condominiums of London or the slums of Calcutta, has no idea what money really is.

We all think of money the same way that our great-grandfathers and even their great-grandfathers did hundreds of years ago.

Economic systems started as barter trade from the first time someone holding a dead animal that he had killed wanted to trade it for a dead fish someone else was able to catch. We traded goods for goods.

The animal was traded for fish, which was traded for wood, which was traded back for another animal. Along the way, currency or money was introduced as a substitute for the physical goods that were being bartered. Instead of trading fish for wood to build shelter, some sort of currency was substituted that said

“Good for one Fish.”

Eventually, gold and silver, among commodities like tobacco, became the “backing” for the money. An agreedupon number of fish was traded for a certain amount of silver, and that silver was traded for “money.” The money was then taken to the lumber dealer for wood, and that dealer could trade the money for other goods or for the precious metal.

The primary reason for money was to substitute for goods and for labor.

A man might sell his labor for a specific amount of chickens, but the amount of chickens he received was too great to either eat or trade away. Further, money allowed for the storing of wealth to be used until a later date.

Money has been a substitute for goods for literally thousands of years. Of course, the value of the money in terms of the amount of goods it was substi-

tuted for changed constantly as governments controlled the issuing of money.

A Roman coin that weighed an ounce of silver was accepted by all who used that money as a substitute for 10 chickens, for example. But as government changed and reduced the amount of silver in the coin, then people wanted two coins for 10 chickens. But money still substituted for good and, by extension, for services.

In the last 100 years, money has transformed from being “substitutional” to being “representational.” And no one ever bothered to tell you.

A hundred years ago, a man might offer to paint someone’s house for a certain amount of money that substituted for a month’s worth of rice to eat. Now the great-grandson might offer the same deal, but he does not think directly in terms of how much rice his wages will buy. The reason is that he does not know, he cannot even guess, how much rice that money can be exchanged for one year from now.

“Money” is no longer “substitutional;” it now “representational.” Money represents something; it does not substitute for the goods or services that can be bought in the future.

We say that a nation’s wealth is its people. But what does that mean? It means that the labor of the people is, ultimately, a country’s wealth. Therefore, for a nation as for you, money represents labor. You do not work for rice. You sell your labor and time for money. Your salary represents your labor.

Actually, when you buy rice, you are buying the labor to grow, harvest and distribute the rice. The price of rice varies based on how much someone wants in return for the labor to get the rice to your table.

Governments have kept the idea of representational money to themselves because “substitutional” money has some sort of intrinsic value. If money only “represents” your labor, governments lose their monopoly to control the money. Governments print money that is backed by their “full faith and credit,” which means absolutely nothing. That is not a substitute for any commodity.

People might say to government, you cannot take my labor—my money—to pay for your spending. People might even start trading their labor for non-government money to be traded to others for their labor. Electronic money, such as bitcoin, is the perfect example. That is why governments are nearly frantic in their efforts to shut down any form of electronic money that they cannot control.

Modern money represents your labor, and not the government. Over the next years, more people will come to realize that reality and then the financial game will change even more.

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.

Wal-Mart store closure follows labor activism

By Michael Hiltzik, Los Angeles Times/TNS

I

T’S certainly possible that Wal-Mart is temporarily closing five stores, including one in Pico Rivera, California, “due to ongoing plumbing issues that will require extensive repairs,” as it claims.

It’s possible that the Pico Rivera closure, which will cost the jobs of more than 500 employees and will last six months to a year, isn’t part of an effort to punish workers who have been at “the center of concerted action by Associates to improve the wages and working conditions of all Walmart Associates around the country,” as the workers asserted in a complaint filed on Monday with the National Labor Relations Board (NLRB).

If so, however, there wouldn’t be so many questions about Wal-Mart’s repair plans. Why hasn’t the giant retailer applied for building permits for the work?

Not at Pico Rivera, nor at any of the other four stores—two in Texas and one each in Florida and Oklahoma, according to a Tampa, Florida, TV station. Why, of the list of 50 “plumbing issues” WalMart provided to The Los Angeles Times dating to July 2014 for the Pico Rivera store, were half identified as “nonemergency” problems, such as leaky urinals and broken toilet handles?

Why weren’t problems fixed when the store underwent a recent $500,000 refurbishment—during which it didn’t have to be closed—that included the restrooms and the grocery department,

according to papers on file with the Pico Rivera building department?

Or, if the plumbing problems were so severe that the building has to be completely closed until Christmas and possibly beyond, why didn’t Wal-Mart say anything about it until April 13? On that day, according to Venanzi Luna, an employee at the Pico Rivera store, managers called workers to a meeting at 1 p.m. to inform them the location would be closed as of 7 p.m. The other stores were closed with similar suddenness.

No advance warning to customers, to the communities or to the employees.

In February Wal-Mart made a highprofile bid to turn around its reputation for scandalously poor wages and working conditions for many of its 1.4 million US workers. The company said it would raise minimum starting pay to $9 an hour beginning next month and $10 an hour in February 2016.

But its handling of the store closings, which will affect 2,200 workers overall, supports speculation that the February wage initiative was just for show—that Wal-Mart’s solicitude for its immense workforce is barely skin-deep.

Luna, 36, who is a leader in the

movement for better pay and conditions for employees, says the Pico Rivera staff members were told that they could apply for positions at other area stores.

There were no guarantees that any job would be available. The workers were told that once the Pico Rivera store reopened, they would have to reapply, and that regardless of their job level and pay on the shutdown date, it might be at minimum wage.

“That’s standard for our [humanresources] procedures,” Wal-Mart spokesman Brian Nick told me. The workers are entitled to 60 days of severance, he said. But that’s not by Wal-Mart’s choice; it’s mandated by federal and California laws, which say that workers must be given 60 days’ advance notice of a mass layoff or be paid for that period.

The Pico Rivera workers assert in their NLRB complaint that the four other store closings are a smokescreen to conceal that they’re the company’s real target. Pico Rivera has been a hotbed of Wal-Mart employee activism through the nationwide group OUR Walmart (an acronym for Organization United for Respect). “This unprecedented ‘closure’ to fix ‘plumbing’ is part of Walmart’s overall national strategy to punish Associates who stand up and speak out for better working conditions,” they said in the complaint.

The Pico Rivera store was the site of the first OUR Wal-Mart strike in 2012 and remained a center of vocal activism on “issues of scheduling, pay, benefits, part-time work, unfair treatment and

discrimination throughout the country,” the group notes. They’re asking the NLRB to order Wal-Mart to find jobs for the 2,200 laid-off workers without loss of pay, or to reinstate them at their old stores.

The organization Making Change at Walmart, which is associated with the United Food and Commercial Workers (UFCW) union, observes further that Wal-Mart has been accused of anti-union maneuvers in the past.

The Supreme Court of Canada ruled last year that the company had illegally closed a Quebec store in 2005 after the workers had filed to unionize; the company denied the shutdown was related to the union campaign. In 2000, after meat cutters at a Texas supercenter voted to join the UFCW, the company announced it would close meat-cutting operations in 180 stores and switch to prepackaged meats, a move that “shows the extent to which Wal-Mart will go to keep the union out of its stores,” the UFCW said.

Wal-Mart’s Nick says the recent closings were abrupt so that the work could get underway promptly. Yet, city records show the company hasn’t even applied for permits. The five closed stores had the largest number of repair work orders in the company, Nick said. In January the Pico Rivera store’s deli department was downgraded from an A to B by the Los Angeles County Department of Public Health because it had no hot water, says Luna, who had worked at the store for eight years and was earning $14.40 an hour as a deli worker.

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Dealing with difficult people and difficult situations Cecilio T. Arillo

database Part 4

Human beings are reaction machines

H

UMAN beings are reaction machines. The most natural thing to do when confronted with a difficult situation is to react instinctively rather than rationally, said William Ury, one of our lecturers at the Program of Negotiation.

Here are some common reactions: Striking back. Striking back is an impulsive reaction. When the other side attacks, you instinctively react to attack back, to fight fire with fire, and give them a taste of their own medicine. If they take a rigid and extreme position, you do the same.

The other problem with striking back is that people who play hardball are usually very good at it. They may actually be anticipating you would attack them. If you do, you put yourself on their home turf, playing the game the way they like to play it.

Striking back rarely advances your immediate interests and usually damages your long-term relationships.

More often, however, this reaction lands you in a futile and costly confrontation. You provide them with a justification for their unreasonable behavior. They think: “Ah, I knew that you were out to get me.

This proves it.” Escalation often follows in the form of a shouting match, a corporate showdown, a lawsuit or a war.

Giving in. Giving in is the opposite of striking back. The other side may succeed in making you feel so uncomfortable with the negotiation that you give in just to be done with it. They pressure you, implying that you are the one who’s causing the problem.

Do you really want to be the one responsible for dragging out the negotiations, disrupting the relationship, missing the opportunity of a lifetime?

Wouldn’t it just be better to say yes?

Ury said: “Many of us make agreements only to wake up the next morning slapping our foreheads and exclaiming: How could I have been so stupid! What did I agree to? For example, many of us sign a contract when buying a car without reading all the fine points.

“Sometimes we are intimidated and appeased by people under the illusion that if we give in just this one last time, we will get them off our back and will never have to deal with them again.

“There is a saying that an appeaser is someone who believes that “if you keep on throwing steaks to a tiger, the tiger will eventually become a vegetarian.”

Breaking off. A common reaction is to break off relations with the difficult person or organization. If it’s a marriage, we get a divorce. If it’s a job, we resign. If we are involved in a joint venture, we dissolve it.

At times, avoidance is a perfectly appropriate strategy. Sometimes it is better to end a personal or business relationship if continuing means being taken advantage of or getting into fights again and again.

But the cost, both financial and emotional, of breaking off the relationship is often high: a lost client, a career setback and a shattered family. Breaking off is frequently a hasty reaction that we come to regret later. We all know people who take a job or enter a personal relationship, become frustrated with their boss or partner, and then leave without giving it a chance.

Dangers of reacting. Even if reacting doesn’t lead to a gross error on your part, it feeds the unproductive cycle of action and reaction. The bad news is that you contributed to the vicious cycle of action and reaction; the good news is that you

Giving in. Giving in is the opposite of striking back. The other side may succeed in making you feel so uncomfortable with the negotiation that you give in just to be done with it. They pressure you, implying that you are the one who’s causing the problem. Do you really want to be the one responsible for dragging out the negotiations, disrupting the relationship, missing the opportunity of a lifetime? Wouldn’t it just be better to say yes? have the power to break the cycle at any time, unilaterally. How? In physics we learn that “for every action, there is an equal and opposite reaction.” Newton’s law, however, applies to objects, not minds. Objects react.

Minds can choose not to (Ury, 1991).

There are dozens of tactics, but they can be grouped into three general categories, depending on whether they are obstructive, offensive or deceptive: Stonewall. A stonewall tactic is a refusal to budge. The other side may try to convince you that they have no flexibility and that there is no choice other than their position.

Stonewalls can take the form of a fait accompli: “What’s done is done.

It can’t be changed.”

Tricks. Tricks are tactics that dupe you into giving in. They take advantage of the fact that you assume your counterpart is acting in good faith and is telling the truth. One kind of trick is manipulating the data using false, phony or confusing figures.

Attacks. Attacks are pressure tactics designed to intimidate you and make you feel so uncomfortable that you ultimately give in to the other side’s demands. The most common form of attack is to threaten you with dire consequences unless you accept their position: “Do it or else!” Your opponent may also attack your proposal: “Your figures are way out of line.” Or question your authority: “We want to talk to the real decision maker.” Attackers will insult, badger and bully until they get their way.

How to counter the tactics

Ury stressed that the key to neutralize a tactic is “to recognize not only what they are doing but also what we’re feeling.

“Many ploys depend on your knowing what is being done to you.

Suppose your customer tells you that he loves the deal but that his partner won’t let him sign the contract without substantial changes. If you don’t realize that he is using his partner as a ‘bad guy,’ you may agree innocently to the changes.

“Lies are the hardest tactics to recognize. You need to watch for mismatch between their words, on the one hand, and their previous words or actions, facial expressions, body language and tone of voice, on the other. Liars can manipulate words, but they cannot easily control the symmetry of their facial expressions.”

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

Saturday, April 25, 2015

The story of Caritas Manila Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

C

ARITAS Manila, the lead social services and development ministry of the Archdiocese of Manila, successfully launched its commemorative book, Love for the Poor—The Story of Caritas Manila, in celebration of 60 joyful years of serving the poor. The event was held on April 7 at the Ayala Museum with Ayala Corp. as sponsor through the generosity of philanthropist and Caritas Manila Trustee Fernando Zobel de Ayala.

The coffeetable book tells the story of love received and given over the course of Caritas Manila’s sixdecade journey of helping the poor and the vulnerable in our society.

The mustard seed called Catholic Charities that the Archdiocese of Manila planted in 1953 has become the tree called Caritas Manila. For more than 60 years, Caritas Manila has helped hundreds of thousands of individuals and families rise from poverty and assume their proper roles as Christian citizens of the Philippines.

Today Caritas Manila runs diverse projects that help the poor fulfill their human potential, such as the Youth Servant Leadership and Education Program (YSLEP), All is Well Health Program, Restorative

Justice Ministry, Caritas Damayan and social entrepreneurship programs Caritas Margins and Segunda Mana. Those and several others like them have, through the years, manifested the love that the archdiocese has for the poor.

The book paints a broad picture of the good work that Caritas Manila does for church and nation. It traces the growth of the charitable institution, describes many of its projects, and assesses its role in the development of the individual and of society.

“To continue doing its good work for the hungry, the jobless, the sick, the imprisoned, the uneducated, the disaster victims and others in need, Caritas Manila relies on a huge number of kindhearted persons who

donate their time, energy, talents, money and resources. The book shows why these donors—as well as the beneficiaries of their kindness, who themselves in turn donate their time, talent, and treasure—continue to support Caritas Manila in its vision and mission of transforming society into a society of love,” the author Isagani Cruz wrote.

Ramon V. del Rosario Jr., vice chairman of Caritas Manila, officially opened the book launch. A member of the book team and Board of Trustees of Caritas Manila, lawyer Gizela Gonzalez-Montinola gave the background of the book.

I handed the ceremonial first copy of the book to His Eminence Luis Antonio Cardinal Tagle, chairman of Caritas Manila.

Cardinal Tagle gave a message to the beneficiaries of Caritas Manila: “We thank in a special way the many beneficiaries of Caritas projects. You are precious not only to the church, you are precious to society, and this is the reason there is such a project, a group, an institution called Caritas Manila. We hope you don’t remain just as recipients of love. [You must] generate love wherever you are and you’ll make this country a better place to live in.”

Tagle also gave a special copy of the book Love for the Poor—The Story of Caritas Manila to the Ferrera family, one of Caritas Manila’s

A7

family-beneficiaries from Quiapo.

Jessica Ferrera, daughter of Jessel and Carolina Ferrera is a youth servant leader of Caritas Manila.

She graduated cum laude from the Eugelio “Amang” Rodriguez Institute of Science and Technology (Earist).

More than 150 friends and guests supported the event. All 60th year commemorative books purchased during the event were signed by the author and Tagle.

Proceeds of the book will help sustain Caritas Manila’s YSLEP. To date, Caritas Manila has helped over 10,000 students to graduate. Caritas Manila continues to provide educational assistance, values formation workshops and leadership trainings to almost 5,000 YSLEP scholars nationwide.

Each book costs only P5,000. To purchase a book, contact Caritas Manila’s DonorCare lines 563-9311, 564-0205, 0999-7943455, 09054285001 and 0929-8343857 or log on to www.caritasmanila.org.ph for more information.

(Pope Francis’s Evangelii Gaudium resumes in the next column) For comments, e-mail caritas_manila@yahoo.com. For donations to Caritas Manila, call 563-9311. For inquiries, call 563-9308 or 563-9298.

Fax: 563-9306.

Sony’s CEO wants more than a stock-market boom William Pesek

BLOOMBERG VIEW

A

S Japanese Prime Minister Shinzo Abe heads to the United States this weekend, the Nikkei stock exchange has provided him with a triumphant talking point.

When he visited the New York Stock Exchange in 2013, he urged traders to “buy my Abenomics”–and buy they have. The Nikkei, which closed above 20,000 earlier this week, has roughly doubled since the start of Abe’s premiership in late 2012.

The question now is whether Japanese corporations can produce the profits to sustain the rally. There’s reason to expect they can. But they would have an easier time of it if they followed the example set by Sony’s ambitious CEO Kazuo Hirai.

Until now, Japan’s stock surge has been driven by monetary policy, the product of what Stewart Richardson of RMG Wealth Management calls the “QE [quantitative easing] trade.”

The trillions of dollars the Bank of Japan unleashed via quantitative easing boosted equities, with an assist from public entities like the

$1.1-trillion Government Pension Investment Fund that were prodded by the government to buy shares. As Richardson tells Bloomberg News, central bank and public stock purchases are “putting an underlying bid on the market” and more investors can be expected to follow the herd to Tokyo.

That’s not to say Abe hasn’t given investors reasons to be optimistic about the Japanese economy. He has augmented the government’s stockboosting policies with efforts to encourage companies to tighten governance, hire more women and increase wages. By joining the US-led TransPacific Partnership talks, Abe has put some of Japan’s most entrenched interests, like those in the agriculture sector, on the defensive. The yen’s 30percent drop has also touched off a boom in tourism, particularly among China’s nouveau riche.

Meanwhile, the exchange rate is propelling corporate profits to alltime highs. Earnings of the nearly 200 companies that were Nikkei members back in 2000 totaled an estimated $139 billion in the fiscal year that ended March 31—a huge increase from $67 billion in 2013 and $49 billion 2012. Estimates for this fiscal year put Nikkei profits at $160 billion.

But Japan’s corporate leaders– and their investors—should tread cautiously. The Nikkei’s gains are now running ahead of both corporate and broader economic fundamentals. Wage gains remain stingy, a sign Abenomics is boosting little more than asset prices. In March household spending dropped 2.9 percent from a year earlier, the 11th-straight monthly decline. Exporters face increasingly grim prospects as China slows, US growth underwhelms and European faces another round of its euro crisis.

To catch up with the Nikkei, companies need to reduce bloat, improve transparency, and focus on their core competencies. They should also upend the traditional hierarchical management structures that often prevent good ideas from getting to company leaders.

Sony is a great example to follow. Unlike its longtime competitors Sharp—which now finds itself

angling for government aid—Sony is now enjoying the fruits of restructuring. In recent years, Hirai exploited the cushion afforded by the weak yen.

This wasn’t just a matter of cutting costs. Hirai sold Sony’s personalcomputer business, overhauled its TV operation, and pruned its smartphone lineup. He also moved some operations outside Tokyo to save on rent and focused more closely on China as an export market. Now Hirai is focusing on mentoring the next generation of designers and programmers, and encouraging them to dream up the industry’s next game-changer.

There are clear benefits to prioritizing innovation and competitiveness in this way. This week Sony raised its profit forecast for the second time since February. Its annual earnings more than doubled to $567 million in the fiscal year that ended in March, compared to the $393 billion analysts expected and more than triple its February forecast.

If more companies followed Sony’s lead, Abenomics would have better odds of succeeding. A thriving corporate sector would create the jobs, higher incomes and new economic frontiers Japan has been lacking for two decades. And Hirai has proven it’s possible to initiate big changes in corporate Japan, even when a weak yen, and a surging stock market, have taken the pressure off.

Tide of migrants in Mediterranean is the world’s problem

By William Lacy Swing Los Angeles Times/TNS

G

ENEVA—A tide of death is surging on the Mediterranean Sea, last year the world’s most lethal migrant zone. Those waters swallowed 3,279 lives in 2014, a number we may one day consider small, if current trends continue.

This month, still not over, up to 2,000 of our fellow global citizens have been reported missing, and presumed drowned, in the waters off Libya. That’s 20 times what the International Organization for Migration (IOM), the agency I direct, had recorded by this time last year.

In the last week the IOM has fielded reports of 400 migrants dead in a capsizing on April 14 south of Malta, 50 more on Friday and as many as 800 lives lost off the coast of Libya over the weekend. On Monday came word of two more boats in distress—one with between 150 and 200 migrants on board, the other with 300.

Survivors of these voyages tell tales of abuse and deprivation no human

being should be forced to withstand.

On Friday gangs reportedly put to sea more than 20 burn victims—one a 6-month-old baby girl—after a cooking fire swept through a Libyan “safe” house where smugglers were holding migrants before an upcoming voyage.

Apparently the criminals who organize these voyages felt it was more important to put injured men and women out to sea than to seek medical attention. Why not? Most had already paid for their passage, about $500 apiece.

In 2014 the IOM counted more than 5,000 fatalities of migrants in transit, worldwide, with nearly two-thirds of those deaths on the Mediterranean Sea. A month ago, IOM staffers worried that this year’s death toll could top 6,000 before Christmas. We now believe it could top that figure by July.

In keeping this grisly roster, we hope to raise the world’s consciousness about the fate of migrants, who gamble everything for a chance to live with the dignity and security that many of us take for granted. But counting lives is not enough. We must act.

This is not a Mediterranean

problem, or even a European one. It is a humanitarian catastrophe that demands the entire world’s engagement.

Haiti’s 2010 earthquake was not a matter for only one hemisphere, nor was the 2004 Indian Ocean tsunami. Those disasters were met by an outpouring of humanitarian action. So must this one.

We must welcome those fleeing from the region’s conflict zones by raising resettlement quotas, issuing more humanitarian visas and extending Temporary Protected Status to citizens of countries in distress. The US has done this repeatedly over the last four decades, for migrants from Haiti and Central America, among others. The US, and the rest of the world, can do it again now, for those migrants fleeing the Middle East and Africa via Libya.

We must also begin a campaign of rescue, no matter how tough the circumstances or daunting the conditions. They’re certainly tough and daunting in Libya, where the IOM estimates that as many as 300,000 undocumented guest workers are stranded, mainly Syrians and subSaharan Africans who must literally

dodge bullets to get to the coast.

Yet, even in Libya, the situation is not hopeless. In recent weeks, the IOM has rescued more than 400 Senegalese migrants, delivering them into neighboring Tunisia and then flying them home to Dakar, their country’s capital.

The stories they told our staffers of their captivity at the hands of traffickers are among the most heart-rending I’ve heard in 50 years of foreign service: of men and boys dying of thirst in the desert; of midnight police raids that roust migrants from their beds—to be beaten, robbed and dragged off to crowded jails to endure months of deprivation. In this crisis, we are not facing random acts of nature but the crimes of men. We must find, identify and prosecute these groups, if necessary by bringing the full force of international human-rights law against the criminal smugglers. Crimes against humanity can be prosecuted by any government on any continent, as long as a case can be made.

Witnesses abound. Evidence is gathered daily. Only the will to punish is lacking.

2nd Front Page BusinessMirror

A8 Saturday, April 25, 2015

Spain sees higher imports from PHL with tax-free facility

By Ma. Stella F. Arnaldo

Special to the BusinessMirror

S

PAIN expects to see a trade balance with the Philippines “in the near future,” with more Filipino products being allowed to be exported to the European Union tax-free.

This was the projection of Spanish Ambassador to the Philippines Luis Antonio Calvo in an interview with the BusinessMirror at the sidelines of the Madrid Fusión Manila (MFM), which opened on Friday at the SMX Convention Center in Pasay City.

“Trade between our countries is still favorable for Spain. We sell more things to you than import from the Philippines.

But the tendency would be to go back to some kind of balance, because we’re going to import a lot from the Philippines. We are implementing a GSP [generalized system of preferences] Plus, which is a facility to allow you to export goods and services to the European market with no tariff. So, my understanding is, in the short term, we will tend to effect a point of balance and equilibrium,” he said.

According to the web site World’s Richest Countries, Spain’s exports to the Philippines amounted to $395.2 million in 2014.

The top 10 Spain exports to the Philippines were perfumes and cosmetics, $107.9 million; aircraft and spacecraft, $41.4 million; meat, $37.9 million; alcoholic beverages, $33.9 million; plastics, $29.2 million; machines, engines, pumps, $18.5 million; pharmaceuticals, $16.1 million; clothing (not knit or crochet), $13.6 million; food waste, animal fodder, $12 million; and ceramic products, $9.5 million.

On the other hand, Philippine exports to Spain amounted to $158.3 million in 2014, accounting for 0.3 percent of its total exports. Its top exports to Spain are electronic equipment, $30.9 million; animal/vegetable fats and oils, $17.2 million; fish, $13.1 million; vegetable/fruit preparations, $12.3 million; oil seed, $11.5 million; machines, engines, pumps, $10.7 million; organic chemicals, $10.1 million; aircraft and spacecraft, $7.8 million; soaps, lubricants, candles, $5.1 million; and knit or crochet clothing, $4.7 million.

In her remarks at the media briefing for MFM on Thursday, Rosa Angulo, director for food and wine of the Spanish Institute for Foreign Trade (ICEEX), said, “20 Spanish companies, 40 wineries and two Philippine importers are participating in the trade exhibit.”

See “Spain,” A2

www.businessmirror.com.ph

Moody’s: Q1 growth likely reached 7.3% T

By Bianca Cuaresma

he Philippines’s economic growth likely bounced back in the first three months of this year to top its multiyear high growth in early 2013, as infrastructure investment, government spending and domestic demand are seen to push the economy to a strong growth this year, the research arm of an international credit watcher said.

In its latest Asia-Pacific Economic Preview, Moody’s Analytics said that gross domestic product (GDP) growth in the Philippines likely ticked up a notch to 7.3 percent in the quarter ending March this

year, from the 6.9-percent growth seen in the last three months of 2014.

The quarter’s forecast is within the government’s growth target bracket for the year, at 7 percent to 8 percent.

The most recent forecast was attributed by Moody’s Analytics to higher infrastructure investment and government spending, alongside robust domestic demand.

“Electronics account for half of the nation’s exports, and they improved through the first quarter, thanks to improved US tech demand,” the economic research firm added.

At this rate, Moody’s Analytics said the GDP report of the Philippines in the first quarter will cement the country’s place as one of the “strongest performing economies” during the period.

The country’s GDP numbers recovered to 6.9 percent in the previous quarter, from the disappointing 5.3 percent in the third quarter of last year.

Severa l loca l and international economic agencies have expressed optimism of the country’s growth numbers this year, with the expectation of a rebound in government

spending in 2015.

This includes the most recent growth upgrade of the International Monetary Fund of the country now at 6.7 percent.

This is still, however, short of the government’s target for the year.

The last time that the country hit a quarterly growth of 7 percent was in the third quarter of 2013. Last year the Philippine Statistics Authority said the country’s GDP grew by 6.1 percent.

This figure, however, is lower than the 7.3-percent GDP growth posted in 2013. It also fell below the government’s target of increasing GDP by 6.5 percent to 7.5 percent in 2014.

Economic Planning Secretary Arsenio M. Balisacan said fullyear growth in 2014 was slower due to the lackluster performance of the country’s economy in January to September last year. The country’s GDP growth in the first to third quarters was significantly affected by the government’s underspending.

AGOS PROJECT USAID Be Secure Project Senior Technical Adviser for Water Ramon Alikpala (from left), Coca-Cola Foundation Philippines Inc. President Cecile Alcantara, USAID for the Philippines and the Pacific Mission Director Gloria Steel, Coca-cola Philippines General Manager Diego Granizo, Philippine Business for Social Progress Board Member Roberto Umali, USAID Be Secure Project Chief of Party Mona Grieser and USAID Be Secure Project Water and Adaptation Team Leader Dani Newcomb sign a memorandum of understanding in support of the Agos Project, which aims to support watershed, provide poor communities with access to safe water, and educate the youth and communities on the importance of conserving our water resources. ALYSA SALEN

Oil at $65 seen freeing 500K barrels from shale fracklog O

il needs to recover to $65 a barrel for US drillers to tap a pent-up supply of oil locked in shale wells and unleash more crude on markets than is produced by Libya.

Dipping into this “fracklog” would add an extra 500,000 barrels a day of oil into the market by the end of next year, Bloomberg Intelligence said in an analysis on Thursday. Producers in oil and gas fields from Texas to Pennsylvania have 4,731 idled wells at their disposal.

Prices are rebounding from a six-year low after drillers idled half the nation’s oil rigs, slowing the shale boom that boosted production to the highest in four decades.

The number of wells waiting to be hydraulically fractured, known as the fracklog, has ballooned as companies wait for costs to drop.

That could slow the recovery as firms quickly finish wells at the first sign of higher prices.

“Once service costs come down

and drillers begin to work through their higher-than-normal backlog, the market should start to price in that supply coming online,” Andrew Cosgrove, an energy analyst for Bloomberg Intelligence in Princeton, New Jersey, said by phone.

“It may act as a cap on prices.”

US oil futures tumbled by more than $50 a barrel in the second half of last year amid a worldwide glut of crude. West Texas Intermediate for June delivery lost 36 cents to $57.38 a barrel in electronic trading on the New York Mercantile Exchange at 12:22 p.m. Singapore time.

Permian basin

Oil production in the lower 48 states would rise to 7.67 million barrels a day in the fourth quarter of 2016 if drillers start shrinking their fracklogs by 125 wells a month in October and put some rigs back to work, Bloomberg Intelligence models show. The US fracklog has

more than tripled in the past year, with oil wells making up more than 80 percent of the total.

“One of the big reasons why production is finally falling is because of these fracklogs,” Phil Flynn, senior market analyst at the Price Futures Group in Chicago, said by phone on Thursday. “That’s an overhanging bearish fundamental.”

The Permian Basin, which covers parts of Texas and New Mexico, had the biggest collection of unfracked wells as of February, with 1,540 waiting to be completed. The count totaled 1,250 in Texas’s Eagle Ford formation and 632 in North Dakota’s Bakken shale.

Last week\ Raoul LeBlanc, an oil analyst with Englewood, Coloradobased consultant IHS Inc., pegged the US fracklog at around 3,000 wells. Halliburton Co., the world’s second-biggest provider of oilfield services, estimated there are about 4,000 uncompleted wells, citing “third party estimates.”

Bloomberg News