Businessmirror february 22, 2015

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A broader look at today’s business

n Sunday, February 22, 2015 Vol. 10 No. 136

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

BSP seen to hold rates up to Q3 T

By Bianca Cuaresma

week ahead

ECONOMIC DATA PREVIEW Foreign currency

n Previous week: The local currency remained relatively tame during the week, trading only sideways in the entire four-day trading week. The peso appreciated at the start of the week at 44.24 to a dollar on Monday, from the previous week’s close of 44.285 to a dollar.

The peso then very slightly moved to depreciate to 44.245 against the US dollar on Tuesday, before correcting to 44.235 to a dollar on Wednesday. The peso ended the week back to 44.24 to a dollar, after the trading holiday on Thursday due to the celebration of the Chinese New Year. The total traded volume during the week is at $2.15 billion.

n Week ahead: Traders see the local currency trading within the lower band of the 44 territory, particularly within the 44-to-44.4 band, as markets look for international and local leads in economic movement.

Domestic liquidity growth (January 2015)

February 27, Friday n December 2014 M3: The money supply circulating in the local economy sustained its single-digit growth at the end of 2014. Domestic liquidity in the country—as broadly measured by M3—grew by 9.6 percent in end-December 2014, slightly faster than the revised 9.2-percent expansion recorded in November last year.

The central bank said the country’s money supply, which hit P7.6 trillion in absolute terms during the period, continued to increase due largely to the sustained demand for credit. Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. earlier said that the slower M3 growth in the last month of 2014 compared to the earlier months was because the tightening measures put in place by the Monetary Board in mid-2014 are still continuing to work their way to the system. He further said that the high base effects from the previous year were also at play. n January 2015 M3: In a discussion with the BusinessMirror earlier, BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo hinted that the growth of cash circulating in the economy—as broadly measured by M3—was tamer in January compared to the single-digit growth seen in the last two months of last year. Despite the foreseen deceleration of M3 growth, Guinigundo said the current volume of liquidity in the country will still be enough to fuel the needs of the economy, which targets a growth rate of 7 percent to 8 percent in the next years. Bianca Cuaresma

HE Bangko Sentral ng Pilipinas (BSP) will likely hold rates until the third quarter of the year to support not only growth but, likewise, the local currency’s value against the US dollar, an economist from an international bank said.

ING Bank Manila senior economist Joey Cuyegkeng noted that the BSP will likely maintain a comfortable interest-rate differential to moderate a possible peso volatility during the year.

Earlier, central bank officials said that, while the country has strong fundamentals to support the local currency, external developments, such as the unexpected, or unorderly, normalization of the US’s monetary policy, may cause investors to flock to safe-haven markets and, in turn, cause the peso to experience some uncertainties.

finally!

Pacquiao and Mayweather to fight on May 2

As such, Cuyegkeng said an initial forecast of 50-basis-point rate hike during the year, starting in late September 2015—or the sixth monetary policy meeting for the year.

The peso has behaved in a relatively tame way in the early weeks of this year amid developments abroad, such as the guidance from the US Federal Reserve (the Fed); the change in monetary-policy directions of neighboring countries; the significant collapse of oil prices; and the divergence of growth rates in advanced economies.

See “BSP,” A2

Another big reason to think oil prices aren’t going up soon

O

il just had its first weekly decline in a month, breaking a rally in crude prices. A bit of context: After what’s happened over the last year, “rally” seems a bit of an overstatement.

One big factor that may be driving prices down this week: The US is pumping so much oil, it’s running out of places to stash it.

Crude oil in storage in the US has jumped to the highest levels in at least 80 years, according to a Bloomberg Industries analysis. The Energy Information Administration this week reported that US inventories rose 7.7 million barrels to 425.6 million. That’s more than 20 percent higher than the five-year average.

The buildup of supply has been “colossal,” and is responsible for oil prices falling this week, Thomas Finlon, director of Energy Analytics Group Llc., told Bloomberg News.

Winter weather and refinery outages have contributed to the supply glut. Even when those conditions subside, topped-out inventories and continued production growth may continue to suppress oil prices for the near and medium term, according to Bloomberg Industries. Meanwhile, the US is pumping oil at a faster pace than any time since 1972. Bloomberg

Transport systems lined up to ease traffic congestion

By Lorenz S. Marasigan

T

HE steady pace of economic growth has led to monstrous congestion on major arteries in Metro Manila—cutting off productivity by almost a third—and the only way to move forward is a change of preference, a Cabinet official said.

PESO exchange rates n US 44.2360

Signs that the rapid economic expansion has been trickling down to certain sectors of the developing nation in Southeast Asia are prevalent, Transportation Secretary Joseph Emilio A. Abaya said, citing the increased spending power of Filipinos based on car ownership.

This, he said, added to the congestion on major roads in Manila and its nearby cities.

“For a megacity like Manila, the clear consequence of a growing See “Transport,” A2

L

AS VEGAS—The Fight is finally on. Floyd Mayweather Jr. will meet Manny Pacquiao on May 2 in a welterweight showdown that will be boxing’s richest fight ever. Mayweather himself announced the bout on Friday, after months of negotiations, posting a picture of the signed contract online. “I promised the fans we would get this done, and we did,” Mayweather said. Sports»D1

The long-anticipated bout at the MGM Grand in Las Vegas will almost surely break every financial record, and make both boxers richer than ever. Mayweather could earn $120 million or more, while Pacquiao’s split of the purse will likely be around $80 million.

The fight, which matches boxing’s two biggest attractions of recent years, has been in the making for five years. It finally came together in recent months, with both fighters

putting aside past differences over various issues—including drug testing and television rights—to reach agreement.

Pacquiao was sleeping in the Philippines when the fight was announced, but his camp issued a statement saying that the fans deserve the long-awaited fight.

“It is an honor to be part of this historic event,” Pacquiao said. “I dedicate this fight to all the fans who willed this fight to happen and, as always, to bring glory to the Philippines and my fel-

low Filipinos around the world.”

While the fight rivals the 2002 heavyweight title bout between Lennox Lewis and Mike Tyson for interest, it comes more than five years after the first real effort to put the fighters together in their prime.

Most boxing observers believe both have lost some of their skills, though Mayweather remains a master defensive fighter and Pacquiao showed in his last fight against Chris Algieri See “Finally!,” A8

n japan 0.3719 n UK 68.1809 n HK 5.7018 n CHINA 7.0794 n singapore 32.5696 n australia 34.4517 n EU 50.2831 n SAUDI arabia 11.7925 Source: BSP (19 February 2015)

News

BusinessMirror

A2 Sunday, February 22, 2015

news@businessmirror.com.ph

Transport systems lined up to ease traffic congestion are not faithful to their fare meters. Drivers often choose their passengers based on their customer’s destination, an event that sometimes leads to heated arguments.

The local staple, the Filipino jeepney, meanwhile, is no different story.

Passengers sit uncomfortably, as drivers cram a 10-seat chair with 12 passengers to maximize their earnings.

Hence, those who can afford to buy their own vehicles resolve to brave the horrors of Metro Manila’s roads and drive to their destinations.

“The solution to that natural tendency is to develop mass-transit systems. Thus, the government is investing in rails, in bus rapid transits [BRTs]...likewise reforming the bus system,” Abaya explained.

Plans are in place, as the government eyes to bid out rail construction and modernization contracts in the next few months.

The state intends to improve the services of the MRT through the modernization of the system’s already obsolete facilities. It is auctioning off several deals to upgrade the train line amounting to P9.7 billion.

The government also plans to revive the Bicol line of the PNR, while improving its decades-old facilities that are far below the train systems of its peers. In five years, the P287-billion North-South Railway System, which will run from Bulacan up to Sorosogon, will start operations, providing connectivity and ease of travel.

The first phase of the facility will involve the construction of a 36.7-kilometer

Continued from A1

economy is the growing capacity of our people to own their own vehicles—and, clearly, given our traffic, that should not be the way to go,” Abaya said in an interview.

The solution, he said, is for the state to construct mass-transit systems that would hopefully entice Filipino car owners to migrate to these planned transport facilities.

“As we are now, there is a right mix.

Eighty percent of our riding public really use public transportation, 20 percent use private cars. However, we are all in smaller modes, like jeeps, tricycles and UVs. The direction is to migrate the smaller public-utility vehicles to mass-transport systems and eventually migrate private owners into mass-transit systems,” Abaya said.

It will be a rough road ahead, however, as current transit systems are already in a sorry state of deterioration.

The railway systems, for one, are a disappointment to early-morning commuters.

The Metro Rail Transit (MRT) Line 3 and the Philippine National Railways (PNR) operate beyond their capacities daily, and bog down almost every day.

The bus system in the Philippines is also in shambles, with bus operators finding themselves at the mercy of the Land Transportation Franchising and Regulatory Board, which has cracked down on companies whose buses were involved in accidents.

Taxicabs, one of the most comfortable modes of transportation, on the other hand,

narrow gauge elevated commuter railway from Malolos, Bulacan, to Tutuban in Manila. It is seen to be completed by the third quarter of 2020.

The second phase, which will extend the commuter rail up to Matnog, Sorsogon, will be completed by the fourth quarter of 2019.

The two-phase deal will be implemented under the official development assistance and the Public-Private Partnership Program.

Aside from these, the government is also bidding out the P9.7-billion contract to extend the Light Rail Transit (LRT) Line 2 to Masi­nag in Antipolo.

It will take the government about a yearand-a-half to fully complete the construction of the railway extension. It will be fully operational by that same time frame.

When completed, the new facility will add 4.14 km to the existing line, which is the youngest of the four train systems in the country.

Two additional stations will be built: the Emerald station in front of Robinsons Place Metro East in Cainta, Rizal; and the Masinag station at the Masinag Junction in Antipolo City. It will serve an additional 130,000 train commuters daily. The system currently serves 240,000 commuters daily.

So far, the government has awarded the P64.9-billion LRT Line 1 Cavite Extension Project, which is now being contested before the Supreme Court for being allegedly a “onesided contract.”

In September the P1.72-billion automated fare-collection system, which will provide

3-DAY EXTENDED FORECAST FEBRUARY 22, 2015 | SUNDAY

TODAY’S WEATHER

FEB 23 MONDAY

a common tap-and-go ticketing scheme for the three overhead train lines in Metro Manila, will be commercially operational.

The government also intends to bid out the P4.9-billion Quezon Avenue BRT, which will run from Commonwealth in Quezon City to Manila City Hall, passing through España Boulevard, this year.

Another BRT system is eyed for C-5 Road. The World Bank is preparing the feasibility study for the project. These two are on top of the P10.62-billion BRT in Cebu, which will start operations in 2017.

Like trains, the BRT runs on its own dedicated lanes, carrying large numbers of travelers through buses, which makes the system simpler and cheaper to construct, operate and maintain.

Some of these projects form part of the bigger P4.76-trillion Roadmap for Transport Infrastructure Development for Metro Manila and its Surrounding Areas, otherwise known as the Dream Plan, prepared by the Japan International Cooperation Agency (Jica).

The transport road map was approved by the National Economic and Development Authority Board in September last year. The Dream Plan lists the needed transport infrastructure in the Philippines to maximize their economic benefits and to remove the potential deficit from productivity losses.

If the transport road map would not be implemented through 2030, Jica said the Philippines stands to lose roughly P6 billion daily in traffic costs.

FEB 24 TUESDAY

METRO MANILA

22 – 31°C

23 – 32°C

TUGUEGARAO

20 – 29°C

21 – 30°C

FEB 25 WEDNESDAY

LAOAG

LAOAG CITY 21 – 31°C

FEB 23 3-DAY MONDAY EXTENDED FORECAST

FEB 24 TUESDAY

FEB 25 WEDNESDAY

23 – 32°C

METRO CEBU

24 – 32°C

25 – 32°C

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21 – 30°C

TACLOBAN

23 – 32°C

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CAGAYAN DE ORO

SBMA/CLARK 23 – 31°C METRO MANILA 22 – 31°C

TAGAYTAY CITY 19 – 29°C

20 – 31°C

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MOONRISE

BAGUIO

14 – 22°C

15 – 22°C

15 – 23°C

METRO DAVAO

SBMA/ CLARK

23 – 32°C

23 – 32°C

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ZAMBOANGA

TUGUEGARAO CITY 20 – 29°C

BAGUIO CITY 14 – 21°C

TAGAYTAY

20 – 29°C

20 – 29°C

LEGAZPI ILOILO/ BACOLOD 24 – 33°C METRO CEBU 24 – 31°C

TACLOBAN CITY 24 – 31°C

CAGAYAN DE ORO CITY 23 – 32°C

ZAMBOANGA CITY 23 – 34°C

PUERTO PRINCESA

ILOILO/ BACOLOD

23 – 30°C

24 – 31°C

SUNRISE

SUNSET

MOONSET

6:17 AM

6:02 PM

9:24 PM

21 – 30°C

LEGAZPI CITY 23 – 30°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

In particular, the local currency has only traded largely within the 44 territory for the whole year. From the start of the year at about 45 to a dollar, the local currency’s value managed to climb back to the lower band of the 44 territory this month.

Latest data from the Philippine Dealing System showed that the peso closed at 44.24 to a dollar at the week’s trading end, with a total traded volume of $571.7 million during the day.

Cuyegkeng also said that market players, based on Fed Fund Futures, already factored in a September or October Fed hike, at which the BSP will likely follow suit.

Central bank officials also earlier admitted that, while they still remain “prepared to move policy levers as necessary,” current monetary settings of a 4-percent reverse repurchase rate and 6-percent repurchase rate are appropriate.

This means that the central bank has had more leeway to hold fire in tightening as inflation rate have gone down in the country and across the world largely due to the strong decline of oil prices in the international market.

Inflation hit 2.4 percent in January, the lowest growth of consumer prices since August 2013 when it hit 2.1 percent.

At this rate, inflation is already nearing the bottom band of the government’s annual target of 2 percent to 4 percent.

NORTHEAST MONSOON AFFECTING LUZON. (AS OF FEBRUARY 21, 5:00 PM)

Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rain showers.

PUERTO PRINCESA CITY 23 – 31°C

BSP...

continued from A1

23 – 32°C

NEW MOON HALF MOON

FEB 19

24 – 31°C

24 – 31°C

FEB 26

1:14 AM

Partly cloudy to at times cloudy with rainshowers

24 – 33°C

24 – 33°C

24 – 33°C

Cloudy to at times cloudy with rain showers and/or thunderstorms

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

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SABAH CELEBES SEA

6:57 AM

0.09 METER

Partly cloudy to at times cloudy with rain showers and/or thunderstorms

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

METRO DAVAO 23 – 30°C

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

7:47 AM

23 – 31°C

8:43 AM

@PanahonTV

12:15 AM

0.95 METER

EconomySunday

www.businessmirror.com.ph • Editor: Vittorio V. Vitug

BusinessMirror

Bill regulating credit-card industry endorsed for plenary approval

T

he House Committee on Banks and Financial Intermediaries has endorsed for plenary approval a proposal to regulate the country’s creditcard industry to ensure conditions of fair and sound consumer credit practices, and to encourage competition and transparency that support a more efficient delivery of services.

The committee chaired by Rep. Nelson P. Collantes of the Third District of Batangas approved House Bill (HB) 5417, or the proposed “Philippine Credit Card Industry Regulation law,” which substituted eight bills.

Collantes, also author of one of the substituted bills, HB 4861, criticized as “prohibitive” the conditions and penalties imposed by banks and credit-card companies on cardholders, especially for those who fail to settle their dues.

“Inspite of this situation, data on cardholders imply that consumers still rely on plastic money in times of dire need and for emergency expenditures.

Moreover, the various methods employed by credit-card companies to market and promote credit cards at times inhibit the consumers to scrutinize the terms, conditions and sanctions that will be imposed for delayed payments,” Collantes said.

He said credit-card users have increased tremendously since the 1990s, citing data alone from Metro Manila reveal that as of December 2010, at least 6.7 million credit cards have been issued to Filipino consumers.

This number represents a 3-percent yearly growth rate from 2007 to 2010.

The data will still increase if the number of consumers amounting to roughly to 1 million individuals with multiple credit cards will be included, according to Collantes.

The bill provides that it is the declared policy of the State to foster the development of the credit-card industry as an indispensable tool in making consumer credit readily available to all Filipinos under conditions of fair and sound consumer credit practices, which are aligned with global practices, in promoting an efficient payments system and in encouraging competition and transparency that support a more efficient delivery of credit-card services.

The bill also provides that to ensure the vibrancy and efficiency of the creditcard industry, the State shall institute appropriate mechanism to protect and educate credit- card holders.

The measure mandates the Bangko Sentral ng Pilipinas to supervise all credit-card issuers and acquirers through the following: issuance of rules of conduct or the establishment of standards of operation for uniform application to all institutions of functions covered, and the imposition of penalties in case of noncompliance therewith; conduct of examination as determined by the Monetary Board to determine compliance with laws and regulations; and overseeing to ascertain that laws and regulations are complied with. Moreover, the BSP may also limit and prohibit the charging of annual membership fees for credit cards, the bill provides. PNA

Sunday, February 22, 2015 A3

Peace in Mindanao crucial for Asean integration–PCCI

S

By Kris M. Crismundo | Philippines News Agency

ettling down tensions and having peace in the southern islands of the Philippines is crucial for the country in the upcoming Asean integration as Mindanao is the country’s gateway to other Southeast Asian neighbors, Philippine Chamber of Commerce and Industry (PCCI) President Alfredo M. Yao told the Philippines News Agency.

Yao said there are big economic prospects that remain unexplored in Mindanao, a volatile region which will play a significant role for the country once Asean integration takes place at end-2015.

He mentioned that Mindanao’s agriculture sector has huge potential with its vast and fertile soil.

He also noted that Mindanao is also an asset as it can be a manufacturing hub for the country and improve trade with other Asean countries with its proximate distance to Brunei Darussalam, Indonesia and Malaysia.

“Mindanao can be a manufacturing site; our south border which is very near to our Asean brothers: Indonesia, Brunei and Malaysia,” the PCCI chief said.

“It [Mindanao] is a big boost for the Philip-

pine economy,” he stressed.

Yao, however, said investment prospects in Mindanao were affected because of the recent incident in the region, particularly in Mamasapano, Maguindanao.

“We still hope investments in Mindanao to push through, but the incident will affect the decision of investors,” he said.

“Everybody wants peace...if there will be peace here in the country we can live harmoniously, we can explore the economic side of Mindanao,” he noted.

The PCCI official also mentioned that the Mamasapano incident has prompted the Aquino administration to further scrutinize the Bangsamoro basic law (BBL) and provide room for some amendments on BBL, which he noted, to be agreed upon by both parties.

Early this week Communications Secretary Herminio B. Coloma Jr. said Malacañan Palace will respect changes that will be introduced in the BBL. Even before the January incident in Mamasapano, the Philippine government—through Mindanao Development Authority (MinDA)— has positioned southern Philippines for economic cooperation with other Asean countries through Brunei, Indonesia, Malaysia, the Philippines-East Asean Growth Area (BIMP-Eaga).

BIMP-Eaga was formed with the goals of promoting trade, investment, and tourism in less-developed states and provinces in the Asean subgroup.

The said Asean subgroup is now beefing up programs and agreements to enhance connectivity among member-countries.

Meanwhile, MinDA data show that investments in the Autonomous Region in Muslim Mindanao (ARMM) in 2014 has increased to P863 million with a P741.8-million nickel ore mining project in Panglima Sugala, in Tawi-Tawi province, and a P121.25-million petroleum depot project.

During a recent forum, Socioeconomic Planning Secretary Arsenio M. Balisacan said the underdevelopment of the ARMM, where Maguindanao is a part of the region, is linked to its long history of armed conflict.

Balisacan cited that per-capita gross domestic product (GDP) of ARMM only reached P14,565 in 2013, far from the national average per-capita GDP of P68,897.

Poverty incidence in the region is also high at 55.8 percent of its total population.

SundayV

Busine

A4 Sunday, February 22, 2015

editorial

To be forewarned is to be forearmed

I

T looks like spying by countries on other countries, friends and foes alike, has become commonplace in this Information Age to achieve one objective or another. Some of these countries, having been unmasked by various individuals and entities, have bitten the bullet, and now admit to spying on other countries. Most notable among them is the United States. In war and in peace, the US sends out intelligence agents to various locations on Planet Earth to carry out undercover work, designating them, when found out, as humanitarian aid workers, health specialists, even students doing research work.

The US Congress recently prohibited the US National Security Agency (NSA) from doing clandestine work on Britain, Canada, Australia and New Zealand, but authorized it to spy on the remaining 193 countries of the world.

Reading media reports, other spy countries include, but are not limited to, Russia, China, Israel, Iran, France, Germany, the United Kingdom, North Korea and South Korea.

The activities of a spy agency are often uncovered by other countries’ spy agencies. Something of this sort is currently happening. As reported by the New York Times, the Russian cybersecurity firm Kapersky Laboratory is saying that the US has discovered a method to permanently embed surveillance and sabotage tools in computers in countries like Iran, Russia, China and Pakistan to unlock scrambled contents unnoticed.

Sometimes, these activities are exposed by the people working for the spy agencies themselves. This is the case, for example, of Edward Snowden, the US NSA contractor who fled his employment carrying restricted papers documenting US espionage on various countries, including the wiretapping of the cell phones of 35 world leaders, including German Chancellor Angela Merkel.

All this should be of interest to us in the Philippines. Is the American Central Intelligence Agency operating in the Philippines? Evidence suggests that it is.

In the Mamasapano encounter, the highest Philippine civilian and military officials admitted that the US was involved in all phases of Oplan Exodus. Is anything wrong with that? Nothing, if the US ambassador was right, that the US was assisting in the worldwide campaign against international terrorism. A lot, when we realize that, in fact, we, from the President down, were merely serving as tools of the US. The wiretapping of 35 world leaders brings to mind the Hello, Garci tape. Was President Gloria Macapagal-Arroyo among the wiretapped world leaders? The answer seems to be in the affirmative. The Armed Forces of the Philippines acknowledged it did not have the technical ability to do the wiretapping.

Who could have motivated the so-called Hyatt 10 to dissociate themselves from the President when, only a few days earlier, one of them led the singing of a loyalty song to the President? Who could have brought groups so disparate as the Makati Business Club, the United Opposition, a Liberal Party faction, some senators, some leftist organizations together to demand in unison the President’s resignation?

That was in June 2005. A year earlier, in July 2004, Mrs. Arroyo, who had joined President Bush’s Coalition of the Willing, withdrew the Philippine contingent in Iraq, to save the overseas Filipino worker Angelo de la Cruz from decapitation by Iraqi militants. It was said that the action “dismayed” President Bush, who promised to take action on the matter. Did he unleash the CIA to foment the destabilization of the Arroyo administration that followed? The answer seems to be a resounding yes.

We cannot involve ourselves in international espionage, but we have the responsibility of protecting ourselves from its pernicious impacts. To be forewarned is to be forearmed.

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Gospel

Sunday, February 22, 2015

S someone who sides with Germany in the matter of Greek debt, I often hear that creditors should be held culpable for driving deadbeats like Greece to the brink of bankruptcy. That’s true to an extent, but not when the debtor is a government. Nation-states have confiscatory powers that allow them to do to their creditors what medieval kings did to their Jews. It’s a big mistake to pretend that a country like Greece is more vulnerable than it really is.

Nobel prizewinning economist Joseph Stiglitz eloquently described the concept of lenders’ fault in a recent column: Debts are contracts—that is, voluntary agreements—so creditors are just as responsible for them as debtors. In fact, creditors arguably are more responsible: Typically, they are sophisticated financial institutions, whereas borrowers frequently are far less attuned to market vicissitudes and the risks associated with different contractual arrangements....

Every (advanced) country has realized that making capitalism work requires giving individuals a fresh start. The debtors’ prisons of the 19th century were a failure—inhumane and not exactly helping to ensure repayment. What did help was to provide better incentives for good lending, by making creditors more responsible for the consequences of their decisions.

This is as perfectly logical as saying a drug pusher is more of a criminal than the addict who buys from him. Except governments are hardly unsophisticated borrowers, and they know that, if worst comes to worst, they will simply refuse to pay. If they do, there’s no debtors’ prison for them. There’s no bankruptcy mechanism, either: A country cannot be liquidated and sold off piecemeal to satisfy its creditors. In the end, the bankers that buy a country’s bonds are as dependent on the sovereign’s will as European Jews were 1,000 years ago.

“An absolute ruler’s ability to confiscate hinders his opportunities to strike deals with his subjects,” Yoram Barzel wrote in a 1992 paper on Jewish lending in the Middle Ages. “Loans to the ruler are espe-

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cially vulnerable to confiscation. In Medieval England, Jews who were major lenders were entirely at the king’s mercy.”

Having apparently arrived on the British Isles with the invading Normans, the Jews quickly came to dominate England’s loan market. Christians could not openly charge each other interest without violating Church dictates. Judaism banned usury, but not to Gentiles.

So, in an arrangement that was convenient for everybody, Jews, banned from most other trades, became the country’s bankers. They charged 21 percent to 43 percent annually.

Beginning in the 1190s, England had an official loan registry that recorded every transaction.

The reason the system worked was that the Jews were providing one-seventh of the crown’s total revenue in the form of tax payments. The government made sure to strictly enforce the repayment of debts; if they didn’t, the Jews would not have been able to pay their taxes.

Even when the king himself needed to borrow, he made sure to repay.

Then, in the 13th century, Italian bankers emerged as competition, offering better terms to the English.

It was suddenly more profitable for the English monarchs to confiscate Jewish capital than to continue collecting taxes on its use. That’s what Henry III and his successor, Edward I, proceeded to do. In 1290 King Edward expelled the now-indigent Jews from England.

A modern nation-state, too, can suddenly decide that the benefits of imposing a partial expropriation on its creditors outweigh the risks. It doesn’t matter that other countries shuffle along with bigger debt servicing burdens or put up with lower living standards—a government can claim a democratic mandate, as the Greek one is doing now, and it will be just as final for its lenders as an absolute monarch’s will was in the 13th century.

The risks of expropriation tend to be minimized these days. Governments are getting adept at whipping up public anger against creditors to intimidate them. Syriza, the Greek ruling party, has perfected the art.

People already hate bankers, and in

many parts of the world, Germans don’t fare much better, so bashing them is politically popular.

Those creditors who resist and go to court to chase the sovereign’s property and funds to ensure repayment are condemned as vultures. The polite, reasonable thing to do is to make a deal and slink away with one’s tail between one’s legs. Greece’s private creditors have already done that, accepting a more than 50-percent haircut on the bonds they owned.

When a deadbeat country is seen as the hero and its creditors as villains, the only consideration that deters more countries from defaulting—the threat of financial ostracism—loses its power. A country that has successfully done a restructuring deal knows it can be welcomed back to the debt market with open arms. Lenders, apparently suffering from a strange form of masochism induced by all the editorial ink shaming them, prepare to take out their wallets again.

If Greece gets its way, more countries will be tempted to declare responsibility a dirty word. The International Monetary Fund predicts that this year, only 6 out of 34 advanced economies—Germany, Hong Kong, Korea, Norway, Singapore and Switzerland—will have a positive fiscal balance. Nations are hardly deleveraging: The average debt level of a G-20 nation in 2014 was 113.5-percent economic output, the same as a year before and only slightly lower than the record of 115.3 percent reached in 2012. So why pay all that money back?

I would argue that, if Greece’s new government succeeds, it should result in a fundamental repricing of all public debt in line with the realization that any government’s creditors are as powerless as the Jews in Edward I’s England.

Stiglitz has long called for a universal mechanism for sovereign bankruptcies that would make the risks of nonpayment transparent to all lenders and borrowers. In the absence of such a framework, Germany is doing the right thing by making sure no other government is tempted to go down the Greek path just because it wants to spend more than its debt burden allows.

HE Spirit immediately drove Him out into the wilderness. And He was in the wilderness 40 days, tempted by Satan; and He was with the wild beasts; and the angels ministered to Him. Now after John was arrested, Jesus came into Galilee, preaching the gospel of God, and saying, “The time is fulfilled, and the Kingdom of God is at hand; repent, and believe in the gospel.”—Mark 1:12-15

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, February 22, 2015 A5

First principles I Free Fire

By Teddy Locsin Jr.

N the event of a national emergency, pull out the laminated card from the seat in front of you; it contains basic survival information: what we call political first principles.

1. We have only one country.

2. A country is sovereign or not.

3. Sovereignty is to territory what soul is to body; coextensive and a perfect fit.

4. To the extent either is hurt the other is, too. If either is amputated, the other is reduced. It is not the same country but something less; like

mastectomy to a beautiful woman: tragic. Yet, the loss does not diminish her dignity. However, if she got it by sleeping with the enemy, it is her fault she is scorned. The symbol of our country is a woman.

5. Sovereignty is like a billiard ball, impermeable; it cannot be sliced or diced; it cannot be lessened or made more. It cannot be layered like a cake, as Miss Ferrer proposes, or peeled like an onion. You are sovereign in every part. Your army should be able to go wherever it wants or you

are not sovereign like before. Tips from home economics do not apply in politics.

6. A republic is not a monarchy; that is the main distinction. As a republic its government can be a dictatorship or a democracy.

7. Democracy works if you are Athenians; even then only for a short time. With monarchies, God does the picking. This is long-playing but the chosen one rules by unbending rules: for one, he can’t steal. In democracies, people pick the wrong choices, but for

a few years only. Monarchy is better but demands royal stock unavailable here; so we limit the word to a brand of spaghetti.

8. A republic can do without democracy because survival is all.

It can be saved by dictatorship but the dictator cannot be the reason the republic must give up liberty to be saved.

9. Like water, the quality of government cannot rise higher than its source; take it from a ditch, it will stay on that level. Staff government with

trash, the output is garbage.

10. There is freedom which is inalienable and there is the worth of freedom which is less than the need to preserve and protect.

11. Talk is cheap; fighting is better when the stakes are high like freedom of religion or freedom to live or the rule of real law and not some Mickey Mouse version from the Middle East.

12. Anyone takes a life from your family is an enemy for life; take his before he takes yours.

Japan’s central bank told the check’s in the mail F Bloomberg View William Pesek

OR a decade, beginning in the early 2000s, Japan Post, an enormous state-owned company with some 400,000 employees and 25,000 branches, embodied the bloat, corruption and complacency that undercut every effort to reform Japan’s economy.

The real stumbling block was the world’s largest savings institution at the core of the mail-delivery system.

With trillions of dollars in assets, it was the piggy bank that politicians used to fund pet projects in home districts: dams, white-elephant stadiums, bullet trains to nowhere.

Japan Post helped fuel the concreteeconomics ethos that led to today’s unsustainable load of public debt.

In 2001 a new prime minister finally moved to privatize Japan Post.

Over five years, Junichiro Koizumi methodically wore down the opposi-

tion and pulled off modern Japan’s greatest structural change. Now that perseverance is paying off in ways that may even help the Bank of Japan end deflation.

This year Japan Post plans an initial public offering, and before that happens, the chief executive, Toru Takahashi, is making some bold bets on expansion. The company is buying Australia’s Toll Holdings for $5.1 billion, for example, to gain a transport network in faster-growing Asian markets. To execute the deal, and others to come, Japan Post will sell huge blocks of government bonds (it holds about $1.3 trillion worth).

Those sales dovetail with plans by the $1.1-trillion Government Pension Investment Fund to reduce its public debt holdings by about half. In short, the two biggest holders of sovereign debt are si-

multaneously dumping bonds that Bank of Japan (BOJ) Governor Haruhiko Kuroda can scoop up to turbo-charge his efforts to boost a flagging economy.

Caveats abound, of course. As 22 months of unprecedented BOJ liquidity prove, a self-sustaining recovery requires more than easy money. The odds of success would improve exponentially if Prime Minister Shinzo Abe, Koizumi’s protégé, would make good on his pro-growth deregulation pledges.

Also, nudging the government pension “whale,” as traders call it, to buy more Japanese stocks isn’t a reform—it’s a Band-Aid. A risky one, too, that could roil the $5.2-trillion bond market and lead to heavy pension losses if stocks plunge.

For Kuroda, however, huge blocks of bonds returning to the second-

ary market is an opportunity to get greater traction. The yen’s 20-percent drop in two years has dented household spending. Even Abe’s economy minister, Akira Amari, says further declines would be out of line with fundamentals. Amid such worries, at a February 18 policy meeting, the BOJ held its fire, sticking with pledges to boost the monetary base at an annual pace of $670 billion.

That means Kuroda’s next monetary maneuvers will be behind the scenes. Chief among them: nationalizing more public debt. To meet its 2-percent inflation, the BOJ is cornering the market. It already buys about $102 billion worth of government bonds each month, more than 90 percent of the amount offered to investors. Japan Post and the government-pension fund are allowing the BOJ to add to its

shopping cart to boost lending and borrowing activity.

Japan Post’s foray overseas is important in other ways, too. Some big Japanese companies aren’t waiting for Abe, but are moving ahead on their own to make the economy more vibrant. In that regard, Takahashi’s mergers-and-acquisitions push deserves its own mention. This deal and others, he said, “will create a truly global company, and we have plans for significant further investment and growth.”

The world’s third-biggest economy needs more of this thinking. Japan Post’s journey from cautionary tale to growth creator is also a timely reminder for Abe. Big, bold reforms in Tokyo are hard to achieve and take years to gain traction. As Koizumi demonstrated, however, they’re well worth the effort.

Sexist laws still thrive worldwide U Inter Press Service Thalif Deen

NITED NATIONS—A rash of sex discriminatory laws— including the legalization of polygamy, marital rape, abduction and the justification of violence against women—remains in statute books around the world.

In a new report released here, the New York-based Equality Now has identified dozens of countries, including Kenya, Mali, Iran, Saudi Arabia, India, Democratic Republic of Congo (DRC), the Bahamas, Malta, Nigeria and Yemen, which have continued with discriminatory laws in violation of international conventions and UN declarations.

Antonia Kirkland, legal advisor for Equality Now, told Inter Press Service (IPS), “Our report highlights a cross-sample of different sex discriminatory laws from a range of countries, which harm and impede a woman or girl throughout her life in many different ways.

“We urge not only these countries—but all governments around the world—to immediately revoke any remaining laws that discriminate on the basis of sex, as called for in the 1995 Beijing Platform for Action.”

In 2000, she said, the UN General Assembly reaffirmed the urgency of doing this by setting a target date of 2005.

“Although this was not achieved, we are encouraged by the UN’s continued reflection of this priority in the development of a post-2015 framework,” she noted.

This year the UN, spearheaded

by UN Women, will be commemorating the 20th anniversary of the historic Beijing Women’s Conference, taking stock of successes and failures.

The new study identifies dozens of discriminatory laws, either in existence, or just enacted.

In Malta if a kidnapper “after abducting a person, shall marry such person, he shall not be liable to prosecution;” in Nigeria, violence “by a husband for the purpose of correcting his wife” is considered

lawful; in the DRC, “the wife is obliged to live with her husband and follow him wherever he sees fit to reside;” and in Guinea, “a wife can have a separate profession from that of her husband unless he objects.”

Sanam Anderlini, executive director and cofounder of the International Civil Society Action Network (Ican), told IPS hypocrisy and double standards are pervasive— not just about the Convention on the Elimination of all Forms of Discrimination Against Women (Cedaw), or the Beijing Plan of Action but also about the Universal Declaration of Human Rights, which all countries have signed.

She said the problem is exacerbated by a lack of equality in basic terms—for example, there is no equal pay in the US. Also, the fact that so many countries refuse to live up to their own commitments means the bar is lowered constantly or remains forever low.

“We have to call it what it is— universally sanctioned sexism,” said Anderlini, who was the first senior gender and inclusion adviser on the UN’s standby team of expert mediation advisers (2011-2012).

She said cultural excuses are given to block changes in the laws in each context, but given how pervasive it is, “we have to be frank—it’s sexist and it’s about power.”

Meanwhile, the report also points out that, as recently as last year, Kenya adopted a new Marriage Act that permits polygamy, including without consent of the first wife.

Mali revised its family code in 2011, rejecting the opportunity to remove the discriminatory “wife obedience” and other provisions that were found in the 1962 Marriage and Guardianship Code, while Iran’s new Penal Code of 2013 maintains the provision stipulating a woman’s testimony to be worth less than a man’s.

Equality Now’s Kirkland told IPS sex discriminatory laws are

in direct violation of the equality, nondiscrimination and equal protection of the law provisions of the major international treaties and conventions.

There is no good reason those countries highlighted in the report—as well as many others—are yet to reform their laws, she added.

Women and girls must have their rights protected and promoted and an equal start in life so they can reach their full potential, she said.

“Without equality in the law, there can never be equality in society,” Kirkland declared.

Currently, the UN Committee on the Elimination of Discrimination against Women is meeting in Geneva, as it does periodically, to review reports from several of the 188 States Parties to the Convention on the Elimination of All Forms of Discrimination against Women.

At the current session, the Committee of 23 independent experts is reviewing the implementation of Cedaw by several countries, including Azerbaijan, Gabon, Ecuador, Tuvalu, Denmark, Kyrgyzstan, Eritrea and Maldives.

The discriminatory sex laws cited in the study also include Kenya’s 2014 Marriage Act, which says, “A marriage celebrated under customary law, or Islamic law, is presumed to be polygamous or potentially polygamous.”

An Indian act from 2013 states, “Sexual intercourse or sexual acts by a man with his own wife, the wife not being under 15 years of age, is not rape.”

A Bahamian act from 1991 defines rape as the act of those over 14 years “having sexual intercourse with another person who is not his spouse,” thereby permitting marital rape.

In Yemen’s 1992 act, Article 40 suggests that a wife “must permit [her husband] to have legitimate intercourse with her when she is fit to do so.”

In the US a child born outside of marriage can only be granted citi-

“The same [...] governments who decry equal rights for women as Western or immoral “have no qualms using Western medicine, weaponry, technology, education, the media and probably Viagra and pornography.” —Sanam Anderlini, executive director and cofounder of the International Civil Society Action Network zenship in certain cases relating to the father, such as, if “a blood relationship between the person and the father is established by clear and convincing evidence” or “the father [unless deceased] has agreed in writing to provide financial support for the person until the person reaches the age of 18 years.”

And in Saudi Arabia, a 1990 Fatwa suggests: “women’s driving of automobiles” is prohibited as it “is a source of undeniable vices.”

Asked whether countries practicing discriminatory sex laws should be named and shamed, Ican’s Anderlini told IPS it is time for an annual report card of countries—to show clearly where they are on the hypocrisy scale vis-àvis gender equality in actions and changes evident in the lives of women and girls.

She said public statements, rhetoric, pledges and even ratifications are meaningless if there is no action and more importantly more positive outcomes.

“Why not have an ascendancy process—like joining the European Union—where countries get recognized based on demonstrable actions [or] outcomes, not just what they say or sign?” she suggested.

Anderlini also pointed out that, sadly, progressive voices just don’t care enough or understand the

political repercussions enough to act; or they have such an Orientalist view of women in developing countries that they minimize and marginalize their role.

But the extremists get it, she said—they understand women’s power and influence. That’s why they are killing the ones who speak out and are actively recruiting young and older women into their fold.

“And too often, those who oppose equal rights will claim it counters their culture or traditions—but it’s hypocritical and inaccurate.”

She pointed out that a close look at the history, religion or traditions of many countries provides ample evidence of women’s rights and equality. But that just gets erased away by those—typically men— who interpret and recount the past.

Islam, for example, said Anderlini, not only states that women and men were created equal but specifically calls for equal rights to education and pay, among other things.

“Or when we think of land ownership, it was Victorian colonialists who imposed their version of inheritance laws—property goes to the eldest son—on many countries where collective ownership and matrilineal systems were in place.”

Never in the history of humankind has culture been static, she said.

Furthermore, she claimed, the same people and governments who decry equal rights for women as foreign or Western or colonial or immoral or ask for “patience” or cultural sensitivity “have no qualms using Western medicine, weaponry, technology, education, the media and probably Viagra and pornography.”

These have a far more damaging impact on their culture or going against religion and tradition than giving women the rights to inherit land, get equal pay for equal work, pass citizenship to their children, “or, dare I say, drive,” she concluded.

NewsSunday

A6 Sunday, February 22, 2015 • Editor: Vittorio V. Vitug

BusinessMirror

Groups challenge mining policy before UN

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By Jonathan L. Mayuga

ARGE-scale mining in the Philippines continues to adversely affect the country’s food-production capacity, claimed a position paper submitted to the United Nations Special Rapporteur on the Right to Food by civil-society organizations (CSOs) recently.

“Our sources of food are highly threatened by large-scale mining operations spread all over the country. As we speak, the country’s environmental resources—its forests, agricultural lands and waters—can no longer provide sustainable supply for the needs of its more than 100 million population. Simply put, there is misuse and misallocation of land and water resources in favor of extractive projects, such as

large-scale metallic and coal mining, logging operations, as well as large dams and dirty-energy projects such as coal-fired power plants,” the paper submitted by Jaybee Garganera of Alyansa Tigil Mina said.

The groups are pushing for “a policy shift toward a sustainable development path where there is proper natural-resources management.”

Sustainable development projects, they said, should be geared toward

preserving and safeguarding the country’s ecosystems that will ensure the Filipino people’s right to food.

The CSOs—belonging to the networks SOS Yamang Bayan Network, Forest Resources Bill Network and Campaign for Land Use Policy Now! are pushing for the passage of three natural-resource management laws: the National Land Use and Management Act, the Forest Resources Act and the Philippine Mineral Resources Act. The proposed measures aim to address the current environmental problems besetting the country, and protect the people’s rights to a thriving environment.

Two-thirds of the claimed and titled ancestral domains of tribal peoples and more than 50 percent of the country’s protected areas and key biodiversity areas are directly affected by mining, the paper said.

These areas constitute the remaining forests and watersheds of our country.

Garganera said the government’s policy on the use of the country’s land resources remains unclear. While the mining law enumerates areas where

mining is not allowed, mining permits are still issued in protected areas, prime agricultural lands and highly environmental critical areas, and even watersheds, he said.

“We only have an estimated 20percent forest cover, only 28 percent of which, or 19,340 square kilometers, is closed or identified as reserves, the rest are mangroves and areas open to different activities. It is also important to highlight that we do not have a national land-use policy, that is why there is no overarching policy that guides the management of our land resources,” he said.

Garganera said that when large extractive and development projects acquire their permits and contracts, a set of auxiliary rights are granted to the companies, to the detriment of agricultural productivity and, later on, consumers.

“Mining companies, for instance, secure water rights, easement rights and timber rights within their mining concessions. What this translates to is less water for irrigation, faster conversion of agricultural lands to other uses, contamination of water

Albay gov hails Neda Board approval of P104-billion South Railway project

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EGAZPI CITY—Albay Gov. Joey Salceda hailed as a welcome development the recent approval by the National Economic and Development Authority (Neda) of the P104-billion South Railway project, which is seen to unlock Bicol’s huge potential.

As Bicol Regional Development Council (RDC) chairman, Salceda had been persistently pushing for the approval of the South Railway project.

The 653-kilometer South Railway—from Manila to Legazpi City in Albay—was approved by the Neda Board, chaired by President Aquino, on February 16. It is a component of the North-South Railway master plan of the North-South Commuter Railway project, estimated at P117.3 billion, and the P170-billion North-

South Railway Project.

The projects will be implemented under the public-private partnership (PPP) scheme.

Salceda said the construction of the South Railways line has long been awaited in Luzon, and is expected to further boost the economic development of the Bicol region, Albay most particularly, which has a lot of potentials to offer.

Salceda, as chairman of both RDC and the Luzon Area Development Coordinating Council, has been “working relentlessly with the PPP Center, the Department of Transportation and Communications, Neda and the Philippine National Railways to ensure that the South Railway project will be prioritized.”

The governor said he had repeatedly “reiterated his position that the

Manila-Bicol railway is critical to development, as it promotes rural tourism; empowers Bicol labor to compete in the labor markets of Metro Manila and elsewhere in Luzon; and provides a multimodal transport means for bringing agricultural products and manufactured goods of Bicol to the rest of Luzon.”

The North-South Luzon Railways plan aims to revive the Manila-Albay rail route to improve the transport and logistics services to underserved areas and promote productivity. Its blueprint was first drawn and proposed by the Bicol RDC, which Salceda chairs for the third term now.

The government is pushing for the development of mass-railway transport and bus rapid-transit systems nationwide to help address the issue

of congested roads and tollways.

Salceda, reelected as chairman of LADCC, vowed to pursue the Luzon 2045 Plan, under which the South Luzon Railways was a priority concern. LADCC is a cluster of eight RDCs tasked to stir and steer the economic direction of mainland Luzon, the hub of the country’s business and economy and seat of the national government. It comprises 38 provinces and 771 cities and municipalities.

Salceda is credited for Bicol’s impressive economic rise in so short a time. The Bicol region is constantly battered by natural calamities but posted a record 9.4-percent growth in 2013 to become the country’s fastest-growing region, faster than the National Capital Region’s 9.1-percent growth rate. PNA

Cignal emerges as ‘king’ of pay TV

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he struggle for eyeballs in the television industry is a battle to become No. 1. The statistics fluctuate but there can only be one superior among the rest. The intensity of all parties has been apparent in the country—making the battle on content and availability more heated than ever. But the numbers don’t lie. As of the end-2014, Cignal is now the “king” in the world of pay TV with over 844,000 Cignal TV subscribers across the nation, surpassing the 20-year incumbent.

Launched just five years ago, Cignal introduced to the Philippines a superior 100-percent digital Pay-TV service. With Cignal’s advanced direct-to-home (DTH) satellite service, Cignal is able to provide its customers digital viewing clarity no matter where they are in the country—even beyond the reach of traditional cable services. Cignal also pioneered the inclusion of high-quality high-definition channels in all of its plans. And according to a recent AC Nielsen study, Cignal fared far better than the other providers in the category of image clarity consistency of clarity, and the right balance of colors.

Aside from clarity, Cignal is the titleholder for its coverage and availability as it can provide clear-cut television resolution anywhere in the country. From the dense urban dwellings, to far off rural homes, to secluded resorts and to the tops of mountains, Cignal can deliver. More and more homes across the Philippines are now able to enjoy clearer TV reception and a wider choice of channels that suit every member of the family. For instance, Cignal was able to provide valuable TV entertainment and information to far away communities in the Spratlys Island where the reception of other TV providers could not reach.

Content is another attribute to Cignal’s superiority.

There is an assortment of channels that fit every type of personality whether you’re a kid or a kid-at-heart, a lifestyle type of woman or a sports-action buff. Cignal is also known to have brought many firsts in the local Pay-TV industry. For the young ones who think they’re too old for the regular Disney channel, they can watch their favorite Marvel heroes and Star Wars Jedi in Disney XD in HD. For the news watchers there is CNN in HD. And for the basketball fanatics, Cignal offers the NBA Premium channel in HD—no need to add to your plan since its included in plans as low as P630 per month. Also for an overall cinematic mood, there is Dolby Digital Plus Surround Sound available in several channels.

bodies for food sources and reduced health and nutrition indicators,” he said.

The groups cited cases, such as in the town of MacArthur in Leyte, where a prime agricultural land that is planted to coconut has significant rice lands; and a lake there, where about 120 families have successfully set up and harvested fish in the past 10 years, was affected by illegal mining. He said that a massive fish kill in March 2012 led to the suspension of mining operations in the area but the mining companies defied the order.

In Nueva Vizcaya production of high-value crops and highland vegetables, including rice, corn, coffee beans and root crops, has been affected by mining. The province is home to two large mining projects, one is currently in full-scale commercial operations, while the other is still in its exploration stage, Garganera said.

The groups also cited a case in Zambales, where, in the town of Santa Cruz, 8,000 tons of palay production annually, worth P200 million, are lost to mining.

Pyromusical: A spectacle of fireworks at the Prism Plaza

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he pyromusical that erupts every weekend near the Prism Plaza is an explosion of firepower, creating magic for the hundreds of onlookers, who regularly gather on the site to catch the show.

All this takes place at a premier leisure hub at the heart of the SM Mall of Asia (MOA) grounds in Pasay City, which is gearing up even for more shows at the 2015 Philippine International Pyromusical Competition.

In that contest, viewers will have a ringside seat at the showdown of fireworks from 11 countries, including the Philippines.

The Prism Plaza is the place to look out for if one is seeking for a one-ofa-kind recreation experience in this side of the Metro, as it was dubbed as the new “spectrum of lifestyle options from every brilliant angle.”

This place is a new and unique alfresco venue and dining destination by the Manila Bay. Those who want to watch the pyromusical will find the Prism Plaza convenient to go to. The Prism Plaza is also a stone’s-throw away from main public transportations, including the Metro Rail Transit, Light Railway Transit, bus lines plying Edsa and the Hybrid bus that has stops within MOA Complex.

Music and sound accompany the spectacle. Popular bands play the tunes before, during and after the mesmerizing visual display, weaving the visible with the musical to create magic.

This month the Prism Plaza is featuring musical performances from Mia and Hiroshi Acoustic Duo and Mi Sonido every Thursday, and the 808 Band, Voices of 5, Allure Band, SOS Band and Alleycats Acoustic every Friday. The Pyromusical Festival makes Saturday extra special by featuring songbird Jinky Vidal and pop icon Top Suzara, reuniting on stage since their Freestyle days; Allure Band and Voices of 5 also perform during this day.

The Prism Plaza also promises to satisfy the cravings of visitors as it features restaurants that offer delectable treats. After the show, people can dine at well-known restaurants, such as Uncle Cheffy, House of Wagyu, The Coffee Bean & Tea Leaf and Alba, which are in the Prism Plaza’s open square. Visitors who wish to unwind can listen to live music from various performers.

The Prism Plaza is on the fourth floor of Two E-com Center which offers a scenic view of both the metropolis and the Manila Bay. Prism Plaza treats visitors to visual delights, such as the famous Manila Bay sunset and the city lights of Pasay.

www.businessmirror.com.ph

briefs

house OKs bill strengthening nlrc

The House of Representatives has approved on third and final reading a bill strengthening the operations of the National Labor Relations Commission (NLRC) to enhance the just and expeditious resolution of labor disputes.

House Bill 5306, authored by Reps. Karlo Alexei B. Nograles of the First District of Davao City and Gus S. Tambunting of the Second District of Parañaque City, amends Articles 213 and 215 of Presidential Decree 442, as amended, otherwise known as the Labor Code of the Philippines.

The bill promotes the expeditious resolution of labor cases filed at the NLRC by providing the agency with more flexibility in the management of its manpower.

For one, it increases from a maximum of three to five the number of commission attorneys who can be assigned to the Office of the NLRC chairman and each commissioner. The commission attorneys are the ones who assist the NLRC in its appellate and adjudicatory functions.

The bill also removes the provision that prohibits the labor arbiter from performing the work of the commission attorney or from being assigned to the office of any commissioner. PNA

mere circular can’t amend law—senator

“A MERE circular cannot override the provisions of the Migrant Workers and Overseas Filipinos Act of 1995 [Republic Act 8042], as amended by RA 10002, that exempts overseas Filipino workers from paying travel tax, airport fee or terminal fee, and documentary-stamp tax.”

Sen. Aquilino “Koko” Pimentel III repeated this argument on Saturday, as he urged the government should suspend the collection of terminal fees on overseas Filipino workers, saying it is not urgent to implement the integration of the International Passenger Service Charge (IPSC) on payment of airline tickets.

Pimentel, chairman of the Senate Committee on Justice and Human Rights, said the Senate has recently passed an urgent resolution strongly urging the Manila International Airport Authority to recall the order since there would be no loss of profit on the part of the government.

He said that many OFWs come from impoverished areas in Mindanao and the Visayas and other parts of Luzon so that he is concerned that the additional cost of air tickets would cause them more hardship. Recto Mercene

u.e. caloocan alumni homecoming set on tuesday THE University of the East Caloocan Alumni Association Inc. (UECAAI) will celebrate its Sixth Grand Alumni Homecoming dubbed “The Barn Party: Kita-kits sa UE Open Field,” on February 24, at 4:30 p.m., at the UE Caloocan Campus, 105 Samson Road, Caloocan City.

UECAAI Chairman and President Jose Romblon is inviting its alumni members to participate in the homecoming to enjoy the fun in a cowboy attire.

The occasion coincides with the UE Caloocan Week 2015 celebration, themed “Warriors’ Festiva@UE Caloocan.”

The highlights of the UE Caloocan fair on February 17, 18, 20, 21, 23, 24, 26, 27 and 28 include a Thanksgiving Mass, Campus Parade, Free CET and Career Talks, Minilympics, Sportsfest, Made Information Campaign, Artist Talks, Library Exhibit, Art Made Public Exhibit, CFAD Annual Art Exhibit, Mr. & Ms. UE Pageant, Barn Party: Kita-kits sa UE Open Field, Mock Interview, Job Fair and the Gawad Bagani.

For inquiries, call UECAAI Secretariat at 2543-89-74, 09165544136 (Lilian), or 0918-9670620 (Joey). Log on to UE web site, www.ue.edu.ph, for more info on UE.

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RegionsSunday BusinessMirror

Sunday, February 22, 2015

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Army launches offensive vs BIFF guerrillas

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IKIT, North Cotabato— The Army’s Sixth Infantry “Kampilan” Division and the Seventh Infantry Battalion launched on Saturday ground offensives against lawless Bangsamoro Islamic Freedom Fighters (BIFF) guerrillas in the Maguindanao marshland.

Government forces scoured the village of Kalbugan in Pagalungan, Maguindanao, to hunt down the group of Kagi Karialan, the BIFF commander who figured in a clan war with the Moro Islamic Liberation Front (MILF) that has been going on for more than a week now.

The clan war forced more than 20,000 civilians to flee to safer grounds. An Army official said the offensive against the BIFF actually started on Friday night with mortars fired toward the BIFF positions in

the Liguasan marshland.

Early Saturday morning the military used mortars and 105-mm howitzers in driving the BIFF deep into the marshland as two Air Force MG-520 attack helicopters provided air support to the ground troops.

The MILF forces in Pagalungan and Pikit, Maguindanao, stepped aside to allow the military operations.

Capt. Joanne Petinglay, 6ID spokesman, said troops of the 7IB under Lt. Col. Audie Edralin clashed with the group of Karialan

in Barangay Bulol, Pagalungan, Maguindanao.

“Fighting is still ongoing, the Army offensive is against the BIFF,” Petinglay said.

An MILF official said his group joined with the Army in hunting down the outlawed group.

“It is not actually a joint effort; it is the government’s offensive against lawless elements. We only provided them the intelligence,” the MILF field commander said in a telephone interview. He asked that he remain unidentified for he was not authorized to speak for the group.

Petinglay said it was pure Army offensive and was not a “joint” Army-MILF operation against the BIFF. “No casualty was reported from both sides but the fighting was on going and it was very far from civilian communities,” she said.

Karialan’s group occupied at least four villages abandoned by residents when his group clashed with the MILF that left Commander Falcon of the MILF and four of his men dead.

As the BIFF occupied ghost communities, they torched at least 15 houses of Moro civilians who fled to the town center since Sunday.

Abu Misry Mama, speaking for the BIFF, said the MILF-BIFF clashes since last week has already resulted in the death of more than 20 MILF members. He said the BIFF suffered only five fatalities.

Von Al Haq, speaking for the MILF military, denied Mama’s casualty figure, describing it as mere propaganda.

Troops of the 7IB, backed by soldiers from the 40th Infantry Battalion, have been deployed in the towns of Pagalungan, Maguindanao, and Pikit and Aleosan, North Cotabato, to prevent the BIFF from advancing.

Residents in these villages have claimed they heard loud explosions coming from Barangay Kabasalan, a village on the boundary of Maguindanao and North Cotabato.

Petinglay said the Army offensive will continue until the BIFF guerrillas are driven out of North Cotabato and Pagalungan. PNA

Charred human body found cemented inside steel drum

By Emil G. Gamos Philippines News Agency

S

ANTA MARIA, Bulacan— Police forensic experts are conducting DNA tests to determine the identity of a charred human body that was found embedded in cement inside a steel drum at a rice field in Barangay Parada on Thursday night.

Sr. Supt. Ferdinand Divina, Bulacan police commander, said a team from the National Police Crime Laboratory is now examining the remains of the still unidentified victim, whose gender was hard to establish owing to the severity of its burns.

He said farmers stumbled on

the steel drum that was covered with sacks and bound by ropes.

A team of village watchmen reported the incident to the Santa Maria Police Station, that sent investigators to the area where the steel drum was found. “ The victim could have been killed somewhere else, then burned beyond recognition, stuffed into the drum and then dumped in the said rice field to mislead authorities,” Divina said.

Since the cement in the drum had already dried up, Divina said the victim may have been killed more than three days ago.

Police are still trying to establish the identity of the victim.

Feb. 26 special nonworking holiday in Zamboanga City

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A MBOA NGA CIT Y— President Aquino has issued Proclamation 970 declar ing Febr uar y 26 as a specia l nonwork ing holiday

in this cit y.

City Information Officer Belen Sheila Covarrubias said on Saturday the declaration is to give the Zamboangueños

the opportunity to celebrate the city’s 78th Charter Day Anniversary dubbed as “Dia de la Ciudad de Zamboanga.”

T he “Di a de l a C iud ad

de Za mboa nga” ma rk s t he d ay when t he f irst set of c it y gover nment of f ic i a ls, headed by Mayor Nicasio Va lderoza, was inst a l led

into of f ice in 1935. T he c it y gover nment has l ined up severa l act iv it ies to commemorate t he C ha r ter Day A nniversa r y.

The main highlight of the celebration is the grand civicmilitary parade from Mayor Ledesma Street to Paseo del Mar. PNA

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Sunday, February 22, 2015

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International think tank scores PHL courts

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By Bianca Cuaresma

HE country’s poor adherence to the rule of law hinders the entry of more foreign investments, an international think tank said.

UCPB optimistic on PHL growth

The Heritage Foundation—an international research think tank based in Washington, D.C., which analyzes and formulates public policies based on free enterprise— said that while the country has made distinct advancements in several areas of the economy, a lot of international investors still shy away from the Philippines owing to the poor implementation of laws in the country.

It noted that the country’s measure of the rule of law fared “far below the world average.”

The Heritage Foundation representatives who recently visited the Philippines further noted that, aside from what the country is currently focusing on right now, such as wooing investments and easing doing business to ramp up foreign direct investments (FDI), a lot of businesses still see the inefficient judicial system as one of the biggest hindrances in putting up capital for enterprises in the country.

The country’s FDI inflows have long been criticized for be-

ing one of the lowest in the region, amid the local economic boom. As such, the government is working to attract more FDI, as these are long-term investments that generate multiplier effects for the economy.

Latest data from the central bank showed that FDI grew by 61.6 percent from January to November last year, to hit $5.7 billion during the period.

The think tank noted the “widely varied performance” of the judicial system in the country.

What the Philippines should do to improve the sector, according to the international research institution, is focus on efforts to eliminate influence peddling in the country’s judicial system and the elimination of court corruption.

It added that a court system of equal access to public—including to local and international enterprises when settling business disputes—is the kind of reform that may improve investment sentiment in the country.

By Genivi Factao

structural in nature,” the commentary said, adding that this is supported by favorable demographics, expanding economy and rising disposable income.

“We believe that favorable demographics, remittances and a burgeoning IT-BPO [information technology business-process outsourcing] sector are long-term structural trends that will continue to have a profound effect on the economy,” it said.

The UCPB market commentary stressed that the Philippines is currently moving into its own demographic window. There are more people in the work force as opposed to dependent individuals, which means an increase in aggregate income, higher savings, increased demand for goods and

services, and greater investment opportunities.

This demographic window, which has already started, is expected to last for a decade, at the least.

The economic growth was not only being driven by services and household spending, but also by investments and government spending.

Meanwhile, net exports have been firming up on the back of the rapid growth of the IT-BPO sector.

The IT-BPO sector is one of the fastest-growing sectors of the economy. From 2004 to 2014, revenues grew at an annual compounded rate of 29.8 percent.

Last year the sector employed over 1 million individuals, from only 94,000 in 2004. The sector’s road map is looking at an annual

revenue of $25 billion and 1.3 million workers by 2016.

“Given the institutional initiatives being undertaken within the sector, this near-term target is very achievable,” it said.

The impact of remittances and the IT-BPO sector on the economy cannot be underestimated, the commentary added.

Last year total remittance reached $26.9 billion, or a 13.8-percent compounded annual growth over the last 24 years.

The economy has been growing a lot faster in recent years, the UCPB market commentary said. Between 2010 and 2014, the gross domestic product grew 6.3 percent, compared to 4.4 percent and 4.5 percent for the periods 2005 to 2009 and 2000 to 2004, respectively.

T

HE country’s positive economic outlook will continue, given the current favorable environment for consumer and retail stocks, a UCPB Trust Banking Group market commentary said.

The commentary added that the “love affair with Philippine consumer and retail stocks” is not merely a cyclical or short-term trend but a secular or long-term one.

“For some time now, consumer and retail stocks have been getting a lot of attention from investors. Many investors believe that the sector, as a whole, is being underpinned by improvements in the economy that are

‘Clean’ local govts qualified to receive P20.9-B fund for community development

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UDGET Secretary Florencio B. Abad said on Saturday that cities and towns with no track record of questionable disbursements at the Commission on Audit (COA) can qualify in the P20.9-billion fund for community-development programs.

Abad said the amount is part of the government’s budget-reform measures under the Bottom-up Budgeting (BuB), which increases the capability of local governments to use their budget allocation to fund local projects.

The release of the funds, Abad said, is subject to certain conditions, such as clean records of disbursements based on

reports from the COA. The local governments should also comply with the government’s Full Disclosure Policy and submit their Public Financial Management Improvement Plan.

At least 573 cities and towns have yet to comply with the conditions, while 1,017 localities have met the requirements.

“Political affiliation does not play any role in the allocation and release of these [BuB] funds for priority local projects. Our only criterion is that local governments comply with set governance conditions.

We urge local governments to prioritize their compliance with these conditions.

Otherwise, their allocated BuB funds will be

forfeited,” said Abad in a news statement released over the weekend.

He described the BuB as the Philippines’s first landmark reform, because “we are the first country in the world that has implemented participatory budgeting at the national level.”

Meanwhile, the European Union (EU) has allocated P40 million to support effective and accountable public financial-management programs of local governments.

The reform road map to be launched this week promotes strategic guides for local governments to increase their revenues and manage their expenditure effectively.

Estrella Torres

Smart strengthens bid to hike subscriber base

By Lorenz S. Marasigan

W

IRELESS services provider Smart Communications Inc. is strengthening its bid to increase its subscriber base, as it starts offering Google’s Android One smartphones in both its postpaid and prepaid segments.

The move, Smart Executive Vice President Charles A. Lim said, is also aimed at getting more and more Filipinos to experience and harness the benefits of the Internet.

“We believe the Internet should be experienced by as many users as possible, which is why we have launched digital-inclusion initiatives, like our free Internet offer, that have encouraged more people to go on-

Finally!...

line. This partnership with Google for Android One will surely accelerate our ‘Internet for All’ initiative that paves the way for more Filipinos to experience the best of the Internet using their mobile phones,” he said.

“As the telecom operator to exclusively offer the first Android device in the Philippines back in 2009, Smart has always been at the forefront of this initiative, and we’re scaling it even further with our Android One offers,” Lim added.

For his part, Google Vice President of Product Management Caesar Sengupta said: “Data connections have been a serious barrier to getting the Internet into more people’s hands. We are thrilled about Smart’s plan to reduce costs on app updates and down-

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that he still has tremendous quickness in his hands.

Still, Pacquiao is 36 and has been through many wars in the ring. And while Mayweather has been largely untouched in his career, he turns 38 on Tuesday.

“I am the best ever, TBE, and this fight will be another opportunity to showcase my skills and do what I do best, which is win,” Mayweather said in his announcement.

“Manny is going to try to do what 47 before him failed to do, but he won’t be successful. He will be No. 48.”

Oddsmakers believe Mayweather will do just that, making him a 2 1/2-1 favorite in the scheduled 12-round bout. The fight is expected to do record business in Nevada’s legal sports books, with tens of millions wagered on the outcome.

It will also do record business at the box office—with the MGM expected to be scaled far higher than the $20-million live gate for Mayweather’s 2013 fight with Canelo Alvarez. The pay-per-view revenue also is expected to be a record, though television executives said on Friday they had yet to actually fix a price for people to buy the fight at home.

The fight will be televised as a joint venture between competing networks Showtime and HBO, which will share announcers with Jim Lampley and Al Bernstein reportedly handling the task at ringside.

Pacquiao began pushing hard for the fight after beating Algieri last November in Macau, and negotiations picked up last month when the two fighters met by chance at a Miami Heat basketball game and later

loads for people with Android One phones—a key step to making extraordinary smartphone technology more accessible and affordable.”

Android One, Google’s global initiative to bring high-quality smartphones to as many people as possible, aims to bring affordable and high-quality smartphones to users in the Philippines through partnerships with phone manufacturers and telecom operators like Smart.

For its initial offering, Smart has partnered with Cherry Mobile and MyPhone to bring the Android One experience to both Smart and Sun subscribers nationwide, with attractive postpaid plans and prepaid SIM bundles that come packed with free mobile data for Google Play app downloads and the latest Android OS updates.

talked with each other in Pacquiao’s hotel room about making it happen.

“It’s one of those fortuitous circumstance we couldn’t have planned,” Showtime boxing chief Stephen Espinoza said. “But we were lucky that it happened.”

As part of the agreement, Mayweather insisted on having the right to announce the bout. He also won concessions from the Pacquiao camp on who enters the ring first, what type of gloves are used, and a number of other issues, including a reported 60-40 split of the purse.

But it didn’t take long for Pacquiao’s camp to start talking, either. Promoter Bob Arum expressed his elation in making the fight, while trainer Freddie Roach predicted a big win for his fighter.

“Floyd should enjoy being the A-Side while he can, because on May 2 Manny is going to put him on his backside,” Roach said.