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A broader look at today’s business n

Sunday, May 8, 2022 Vol. 17 No. 210

P25.00 nationwide | 2 sections 12 pages | 7 DAYS A WEEK

A MAN walks past election posters outside a school in Quezon City. AP/AARON FAVILA

2022 POLLS: DAY OF RECKONING

AFP, PNP, Comelec and stakeholders in the energy sector run checklist on last-minute preparations to ensure peaceful, orderly—and brownout-free—elections on Monday.

F

By Rene Acosta & Lenie Lectura

of checkpoints across the country in order to thwart the movement of criminals and armed groups.

ILIPINOS will cast their votes on May 9, 2022, not only to elect their new leaders, including a President who will lead the country in the next six years, but also to find out whether the country could already shrug off its tag as the site of one of the worst, if not the most, dangerous elections in the world.

The country’s periodic political exercise has in the past been associated with incidents of moderate to massive cheating, intimidations, harassments and even killings across the country where candidates or their supporters go against their rivals.

Away from the scenes of the elections, snatching of ballot boxes occurs while private armed groups and other lawless elements have worked or exerted efforts to influence the results of the democratic exercise.

Inside the polling places, the actual voting is marred by confusion, exacerbated by cases of malfunctioning vote counting machines, and complaints of dead people still found on the voters’ master list, while those who are still living and ready to cast their votes are not on the list or could not find their assigned precincts. There are also “flying voters” on the side.

Enough preps?

THE government—especially the Philippine National Police (PNP) and the Armed Forces of the Philippines (AFP), which are among the agencies deputized by the Commis-

sion on Elections (Comelec) for poll duties centered on maintaining order, peace and security—has, however declared that such cases would just be history on Monday’s elections, given the weeks and months of preparations.

But with the Covid-19 spell still hovering around every voting precinct, the political exercise will prove whether the government has prepared well enough.

“It’s all systems go,” declared outgoing General Dionardo Carlos, two days before he retired from the PNP on Friday, emphasizing the efforts and preparations that the police exerted along with other deputized agencies in order to ensure that the elections would be “fair, safe, secure and credible.”

During the occasion, Carlos and the chiefs of the military and the Philippine Coast Guard led the ceremonial send-off for election duties of more than 18,000 policemen, soldiers, Coast Guard personnel and even staff from the Department of Education, which was witnessed by Comelec Chairman Saidamen Balt Pangarungan.

Later in the day, the PNP, already on full alert status as part of

PESO EXCHANGE RATES n US 52.3310

Army on guard

POLICE officers secure an area where election documents are being printed and delivered to their respective voting centers in Quezon City, on Thursday, May 5, 2022.

The country is set to elect its new President tomorrow. AP/AARON FAVILA

its own election preparations, simultaneously opened its National Election Monitoring and Action Center (Nemac) and Regional Election Monitoring and Action Centers (Remacs) that will serve as its “eyes and ears” on all incidents in any parts of the country as Filipinos cast their ballots.

Police officers, standby forces and quick-reaction teams were stationed on 24-hour basis at the command posts of their respective headquarters, ready to respond to any incidents and contingencies.

40K personnel deployment

ALL in all, the PNP has mobilized at least 40,000 personnel for the

elections, aside from those already stationed in their respective units in towns, cities and regions, and had beefed up its forces in what the Comelec classified as “watchlist” areas.

It has also made available the use of 15,000 deployable transportation equipment, including 239 watercraft and even helicopters.

The PNP had tagged 100 towns and 14 cities as election hotspots and recommended to the Comelec that the areas be put on its watchlist.

Two days before the start of the official campaign period on March 25, the police in Northern Mindanao placed 217 villages in the region under “red” category,

or those that it classified as “areas of grave concern” due to possibilities of election violence and other threats. Of these barangays, 72 are in Lanao del Norte.

On Wednesday, Pangarungan placed the town of Pilar in Abra and the province of Misamis Occidental under Comelec control, also due to threats of violence, intense rivalry among candidates and perceived bias by local authorities toward a particular candidate or group.

As part of the overall efforts to ensure the safety, fairness and credibility of the elections, the PNP has also been leading the implementation of the Comelecordered gun ban and the conduct

IN the military, the Army’s 7th Infantry Division under Maj. Gen. Andrew Costelo and the Southern Luzon Command under Lt. Gen. Bartolome Bacarro have also been working to help ensure the safe and peaceful conduct of elections in their areas of operations.

Army Commanding General Lt. Gen. Romeo Brawner Jr. has also been visiting Army units across the country, where, among others, he had been emphasizing the need for Army personnel to ensure the credibility of the elections and the need to keep it safe and peaceful.

Armed Forces Chief of Staff General Andres Centino also reminded all soldiers about their election duties, which he had said earlier was foremost among the urgent tasks of the military.

“I urge all uniformed personnel to remember that the Filipino people trust us to secure the sanctity of their votes, as is their constitutional right to have a say in the future. Let us perform our duties with an utmost dedication that bespeaks our strong hearts for public service. Be assured of the trust and confidence of your leadership in the AFP,” he said.

At the Western Mindanao Command, the commander, Lt. Gen. Alfredo Rosario Jr., made a last-minute visit to the headquarters of the Joint Task Force TawiTawi to check on its final preparations for the elections.

“We already selected a number of Marine troops who will guard the poll precincts on election day and during the canvassing. We are optimistic that we will be able to carry Continued on A2

n JAPAN 0.4020 n UK 64.6916 n HK 6.6670 n CHINA 7.8652 n SINGAPORE 37.8251 n AUSTRALIA 37.2230 n EU 55.1778 n SAUDI ARABIA 13.9520

Source: BSP (May 6, 2022)

NewsSunday BusinessMirror

A2 Sunday, May 8, 2022

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US threat to sanction Hikvision shows China ties near a tipping point

T

By Bloomberg News

HE fate of a Chinese technology giant at risk of unprecedented US sanctions will show whether the Biden administration intends to significantly ramp up tensions with the world’s second-biggest economy.

The US is weighing whether to add Hangzhou Hikvision Digital Technology Co., which makes cameras and surveillance systems, to its Specially Designated Nationals and Blocked Persons List, according to people familiar with the situation. The company’s shares tumbled by the 10 percent daily limit on Thursday on news of the potential sanctions tied to alleged human-rights violations

by China against mostly Muslim minorities in its far-Western region of Xinjiang.

While Hikvision and seven other Chinese tech companies already face US restrictions, the move would mark the first time a Chinese company faces more severe Treasury Department sanctions that risk curbing its business around the globe. The measure— used for terrorists, drug kingpins and Russian banks—would dramatically restrict its ability to work with companies, financial institutions and governments.

More broadly, the sanctions would mark an escalation in how the US uses its dominant position in the global financial system to target Chinese companies, at a

time when both governments are starting to curb business ties due to national security concerns. The emphasis on human rights also exposes potentially any company that deals with the Communist Party’s vast security apparatus to similar penalties.

“That would be a very, very broad category of companies,” said Jon Bateman, a fellow at the Carnegie Endowment for International Peace, adding that the US was struggling to clarify its China policy. “The Biden administration hasn’t yet defined what kind of relationship it does want with China,” he added. “This indicates that human rights will be a focal point.”

President Joe Biden has largely kept in place measures left over from the Trump administration, without clearly spelling out how it would deal with punitive tariffs put in place during the trade war and questions over what sensitive data companies can share with China.

He’s also expanded restrictions in other areas, signing a law last year that bans imports of goods from Xinjiang starting in June unless companies can prove they weren’t made with forced labor.

China’s diplomatic support for Russia following its invasion of Ukraine has also strained Beijing’s relations with the US, with Biden drawing a firmer distinction between democracies and autocracies. Fears that Chinese companies would be hit with Russia-style sanctions have contributed to declines in China’s markets in recent months.

Secretary of State Antony Blinken had planned to give an address on the administration’s China policy on Thursday, but it was delayed after he tested positive for Covid-19. Still, people familiar with the remarks said they were likely to offer little new information on basic questions on how the US and China can collaborate on some issues.

‘Grave concern’

CHINA on Thursday expressed “grave concern” over the reports on Hikvision, reiterating that US claims of human-rights abuses in Xinjiang were the “lie of the century.”

“China firmly opposes the US moves to use human rights as an excuse, and abuse state power and its domestic law to hobble Chinese companies,” Foreign Ministry spokesman Zhao Lijian said.

Hikvision is one of several Chinese companies targeted by Washington for aiding and abetting human-rights violations in Xinjiang, a list that includes wellknown corporations including AI startups SenseTime Group Ltd. and Megvii, which are backed by traditional industry leaders or financiers including Alibaba.

Founded in 2001 with help from a state-owned electronics

on an entity list that prevents American firms from supplying it with components and software—similar to Chinese telecom gear maker Huawei Technologies Co. had faced. But the blacklisting had limited impact on Hikvision’s production after it slightly revised its supplier list to buy alternative components from local vendors. The company’s 2021 sales jumped by 28 percent to over 80 billion yuan ($12.1 billion), according to filings.

‘Technological containment’

A PEDESTRIAN walks across a road past surveillance cameras manufactured by Hangzhou Hikvision Digital Technology Co. mounted on a post at a testing station near the company's headquarters in Hangzhou, China, on Tuesday, May 28, 2019. BLOOMBERG

“Invoking human-rights and values-based justifications can help the US mitigate pushback from US business sector, while perhaps also elicit more Western governments to join in, making it a collective ‘technological containment’ effort. This is guided more by interests than ideology.”

—Wen-Ti Sung

research institute in Hangzhou, Hikvision quickly grew into one of the world’s largest makers of surveillance equipment. The company sells CCTV cameras and surveillance software to governments and corporations in more than 150 countries and regions worldwide. It has around 53,000 staff and operates research facilities from Shanghai to London.

Chinese surveillance

THE most important client for Hikivison remains the Chinese government, which spends handsomely each year to oversee the

activities of its 1.4 billion citizens.

Its surveillance cameras are easy to spot on the streets of Chinese cities and its gear for security checks are widely used in the country’s largest airports and events attended by the supreme leaders of the ruling Communist party.

Hikvision has repeatedly denied US allegations of involvement in abuses in Xinjiang. “We think any such sanction should be based on credible evidence and due process, and look forward to being treated fairly and unbiasedly,” it said in a statement Wednesday.

In 2019, Hikvision was placed

IT’S possible the US could be using the threat of more sanctions as a bargaining chip on thorny geopolitical issues like the war in Ukraine or Beijing’s aggression against Taiwan, according to Vivian Zhan, an associate professor specializing in Chinese politics at the Chinese University of Hong Kong.

“If the US is using it as a tactic to coerce China on an issue it isn’t compromising on, it might potentially work given that the Chinese economy is suffering,” she said, noting the lockdowns and Xi’s regulatory moves against tech companies.

Sanctions against Hikvision would also help the US maintain its technological edge over China, said Wen-Ti Sung, a lecturer in the Australian National University Taiwan Studies program.

“Invoking human-rights and values-based justifications can help the US mitigate pushback from US business sector, while perhaps also elicit more Western governments to join in, making it a collective ‘technological containment’ effort,” he said. “This is guided more by interests than ideology.”

2022 polls: Day of reckoning Continued from A1

out our duties to ensure the honest, orderly and peaceful conduct of the elections here in Tawi-Tawi,” Joint Task Force Tawi-Tawi commander Brig. Gen. Romeo Racadio told Rosario during a briefing.

In Sulu, Maj. Gen. Ignatius Patrimonio, commander of the 11th Infantry Division and Joint Task Force (JTF) Sulu, personally inspected polling places and spearheaded a province-wide cleanup drive ahead of tomorrow’s elections.

“Your security forces, in collaboration with our partner stakeholders, are here to ensure that the polling places are in good condition and orderly so that our constituents can vote comfortably,” he said as he made the rounds.

In Cagayan de Oro City, 4th Infantry Division commander Maj. Gen. Wilbur Mamawag gave assurances that his command would ensure “orderly” elections in Region 10.

“We reaffirm our commitment and professionalism in performing our mandate to protect every citizen’s right of suffrage, preserve the sanctity of the ballot, respect for human rights, while adhering to the non-partisanship of the command,” he declared.

Sufficient power

BEYOND the law-enforcement aspect of preparations, authorities are holding the Department of Energy (DOE) to its assurance that there will be no power outage during the first three weeks of May in most parts of the country—crucial days from the eve of elections, the elections itself, and days after when results are being processed.

Comelec Commissioner George M. Garcia, drawing on such DOE commitment, said, “There is sufficient reserve of power and fuel as well as coal to energize our elections

by May 9.”

He said their only concern are areas in Bohol and Leyte, which still have no power until now after being heavily hit by typhoon Odette (international name: Rai) last year.

“So what we did in the Commission is we authorized the peo-

ple in the field to rent or lease generator sets in place in polling places without power,” Garcia said.

Even in cases of unforeseen power outage, Garcia said each of the VCMs has a power supply lasting for several hours.

Brownouts still possible–ICSC

MEANWHILE, the Institute for Climate and Sustainable Cities (ICSC) stressed that rotating brownouts are “still likely to happen” during and after the national elections on May 9 because of prolonged shutdowns of coal power plants.

ICSC chief data scientist Jephraim Manansala said the GOMP is not being followed as multiple coal plants still experience unplanned shutdowns.

Coal plants are not allowed to have planned and scheduled outages from March 26 until June 2022, according to the approved Grid Operating and Maintenance Program (GOMP) 2022-2024. ICSC noted, however, that 12 out of 23 coal plants in Luzon have experienced shutdowns after March 25, and two were still down as of last Wednesday.

ICSC earlier warned that a deficit of 1,335 MW in the country’s power supply could happen this second quarter, resulting in rotating blackouts and an increase in power rates in the Luzon grid.

“Based on latest developments in the status of coal power plants, ICSC is standing by its projections despite the DOE and NGCP stating that the country has enough power supply this coming election,” it said.

Meanwhile, a consumer group called on all concerned stakeholders in the power sector to come up with a concrete plan to ensure stable power supply.

Kuryente.org claimed there is still no clear commitment from the DOE, the National Grid Corporation of the Philippines, the Energy Regulatory Commission, the National Electrification Administration, power distributors, electric cooperatives and power generators that would suggest that they are working together toward a clean, honest and orderly elections by ensuring that there will be no brownouts.

“We are exasperated that after

long Congressional hearings and finger-pointing between DOE, ERC and NGCP since last year, there have been no solid contracting for ancillary services by NGCP.” Nic Satur, Jr., national coordinator of Kuryente.org, said incidents of power outages will undermine the integrity of the election process.

“Today, consumers fear that recent reports of persistent thin energy supply triggering power outages during summer months— which includes the May 9 elections, may be a problem. The risk of having power interruptions when Filipinos are casting their votes through electronic voting machines and during data transmission for canvassing is something alarming,” added Satur.

For the part of power generation companies, the Philippine Independent Power Producers Association Inc. (PIPPA) said earlier that it has “accelerated” the maintenance schedules of power plants to help avoid possible power outages in May and June.

“Our members have accelerated maintenance schedules of our power plants in anticipation of this event, and we are committed to follow the Grid Operating and Maintenance Program. We reiterate our request for the system operator to have sufficient contracted ancillary reserves because this is necessary to support the transmission capacity and energy from resources to loads as mandated by the Department of Energy,” said PIPPA. PIPPA also called on other industry stakeholders to collaborate in mitigating and preventing the negative effects of the forecasted thin reserves margin in May and June. “In these times, the Interruptible Load Program (ILP) plays an important role in supporting our energy sufficiency system and PIPPA thanks the active participation of distribution utilities like Meralco and large power customers in ensuring that the ILP is a success. Collectively, this demandside management program can reduce electricity drawn from the grid and help avert power interruptions when grid power reserves are most critical,” it said.

The World

www.businessmirror.com.ph • Editor: Angel R. Calso

BusinessMirror

Biggest treasury buyer outside US quietly offloading billions

By Michael MacKenzie & Chikako Mogi

I

n times of Treasur y turmoil, the biggest investor outside American soil has historically lent a helping hand. Not this time round.

Japanese institutional managers— known for their legendar y US debt buying sprees in recent decades—are now fueling the great bond selloff just as the Federal Reserve pares its $9 trillion balance sheet.

The latest data from BMO Capital Markets show the largest overseas holder of Treasuries has offloaded almost $60 billion over the past three months. While that may be small change relative to the Japan’s $1.3 trillion stockpile, the divestment threatens to grow.

That’s because the monetary path between the US and the Asian nation is diverging ever more, the yen is plumbing 20-year l o w s a n d m a r k e t v o l a t i l i t y stateside is breaking out. All that is ramping up currency-hedging costs and completely offsetting the appeal of higher nominal US yields, especially among large life insurers.

The upshot: Japanese accounts are contributing to the historic Treasury rout and may not return en masse until the benchmark 10-year yield trades firmly above 3 percent. In fact, near-zeroyielding bonds at home look ever-more appealing even as US debt offers some of the highest rates in years.

“It’s a significant amount of selling and on par with what we saw in early 2017 from Japan,” said Ben Jeffery, BMO’s rates strategist.

While an aggressive Fed tightening cycle to combat inflation could result in multiple 50 basis-point hikes in the coming months, the Bank of Japan

remains locked in endless stimulus.

That’s weakening the yen and upending the economics of buying Treasuries even as the 10-year Japanese government bond remains capped around 0.25 percent.

While the selloff pushed the 10-year US yield to 2.94 percent on Monday in Asia, buyers who pay to protect against fluctuations in the yen-dollar exchange rate see their effective yields dwindle to just 1.3 percent. That’s because hedging costs have ballooned to 1.55 percentage points, a level not seen since early 2020 when the global demand for dollars spiked in the pandemic rout.

A year ago the Treasury benchmark was offering a similar yield, when accounting for the cost of protecting against moves in the exchange rate thanks to a modest 32 basis-point hedging cost.

“Hedge costs are the issue for investing in US Treasuries,” said Eiichiro Miura, general manager of the fixed-income department at Nissay Asset Management Corp.

Fed tightening cycles and the associated market volatility have tempered Japanese buying of Treasuries in the past. But in this cycle, the high level of uncertainty surrounding US inflation and interest-rate policy may trigger an extended absence. At the same time, Japanese traders returning from the Golden Week holiday have other offshore options as euro-hedging costs remain near the one-year average.

“In the span of next six months or so, investing in Europe is better than the US as hedge costs are likely to be low,” said Tatsuya Higuchi, executive chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co. “Among the euro bonds, Spain, Italy or France look appealing given the spreads.”

Bloomberg News

Sunday, May 8, 2022

A3

China cases to derail growth of world’s emerging markets

By Marcus Wong & Netty Ismail

A

widespread selloff in China is rippling through emerging markets, threatening to snuff out growth and drag down everything from stocks to currencies and bonds.

Fresh Covid outbreaks—and the government’s stringent policy to contain them—are spooking global investors who fear shutdowns in China will echo across the world by lowering demand and disrupting supply chains. That’s pushing them to sell not just China’s currency, bonds and stocks but the assets of any developing nation that relies heavily on trade with the world ’s second-biggest economy.

The result is the sharpest slide in emerging markets in two years, not unlike the meltdown in 2015 when China’s woes led to a rout in their bonds and currencies, besides wiping out $2 trillion from equity values. Since then, the country’s influence on the global economy has only grown: It’s now the largest buyer of commodities, meaning its slump may impact exporters of raw materials and their markets more than ever.

“Given China’s importance in global supply chains and importance to global growth prospects, further disappointments in the nation’s growth may lead to more contagion risk,” Johnny Chen and Clifford Lau, money managers at William Blair Investment Management in Singapore, wrote in an e-mail. “We see countries with high trade linkages to China as

being the most vulnerable.”

As armies of white-suited enforcers descended on Shanghai and Beijing in late April to oversee the mandatory testing of millions, the offshore yuan sank to the worst monthly loss in at least 12 years. The MSCI Emerging Markets Currency Index, with almost a 30 percentweight for the Chinese currency, tumbled in tandem. The yuan’s 30-day correlation to the index rose to the strongest level since September, underscoring the currency’s influence in the emerging-market selloff. After Shanghai reported its first deaths since the latest outbreak, panic selling spread to bonds and equities.

The scale of the losses prompted Chinese authorities to step in and assure markets they’ll support the economic recovery and boost infrastructure spending. They also signaled willingness to resolve regulatory issues in the technology sector.

These pledges soothed investors’ nerves even though authorities didn’t abandon the stern Covid Zero policy that had sparked the panic in the first place. While the last trading day of April did see a rebound in the yuan, most analysts expect the currency to resume its slump.

The offshore yuan dropped 0.6 percentto 6.6827 per dollar on Monday. China’s local markets are shut for a holiday.

Beijing’s 2022 growth target of 5.5 percentis now in question, prompting analysts from Standard Chartered Plc to HSBC Holdings Plc to predict currency losses over the next three months.

That, in turn, could lower growth rates in countries like South Africa and Brazil, just when they’re also buffeted by higher US yields, an inflationary spiral and the war in Ukraine.

“If China’s economy slows significantly, emerging markets currencies as well as the yuan could experience a period of elevated and persistent volatility,” said Brendan McKenna, a currency strategist at Wells Fargo Securities in New York.

Commodity pain

The rand erased four months worth of gains in just two weeks, while the Brazilian real, Colombian peso and the Chilean peso posted some of the sharpest declines among peers. Carry-trade losses ballooned, capping the worst showing since November.

Money managers quickly moved to downgrade their currency outlook for emerging markets. HSBC cut its forecast for nine Asian currencies, citing China’s economic travails. TD Securities and Neuberger Berman said South Korea’s won and Taiwan’s dollar will come under greater pressure.

“We continue to maintain a cautious stance on Asian currencies, and expect more volatility till the time some of these growth concerns abate,” Prashant Singh, senior portfolio manager for emerging-markets debt at Neuberger Berman in Singapore.

Multi-asset rout

Currency losses are also driving a selloff in local bonds, which sank

to the worst first four months of a year on record, as performance in April alone was the worst since the peak of the pandemic in March 2020. The main drag here was China again, with a 41 percentweight in the Bloomberg index for the asset class. The nation’s bonds posted the biggest monthly retreat since the 2008 financial crisis, while sparking double-digit losses in countries as varied as South Africa, Poland and Chile.

Equities weren’t spared either. A rout in Chinese technology shares listed in Hong Kong echoed half a world away in Johannesburg. Naspers Ltd., which owns 28.8 percentin Tencent Holdings, plunged to a five-year low.

A three-week slump partly fueled by panic over Covid cases in China (and partly by rising US yields) led emerging-market stocks to erase $2.7 trillion in market value.

China’s economic activity contracted sharply in April as the lockdown of Shanghai escalated concerns about further disruption to global supply chains.

Factory activity fell to the lowest level in more than two years, with the official manufacturing PMI dropping to 47.4 from 49.5 in March, according to data released by the National Bureau of Statistics on Saturday.

“China’s slowdown will compound the challenging outlook for emerging economies facing soaring energy prices and tighter monetary policy from the major central banks,” said Mansoor Mohi-uddin, chief economist at Bank of Singapore Ltd. Bloomberg News

A4

The World BusinessMirror

Sunday, May 8, 2022

Rising US interest rates seen damaging foreign economies

By Paul Wiseman

W

AP Economics Writer

ASHINGTON—When the Federal Reserve raises interest rates—as it did Wednesday—the impact doesn’t stop with US homebuyers paying more for mortgages or Main Street business owners facing costlier bank loans.

The fallout can be felt beyond America’s borders, hitting shopkeepers in Sri Lanka, farmers in Mozambique and families in poorer countries around the world. The impacts abroad range from higher borrowing costs to depreciating currencies.

“It will put pressure on all types of developing countries,’’ said Eric LeCompte, executive director of the Jubilee USA Network, a coalition of groups seeking to reduce global poverty.

The managing director of the International Monetary Fund, Kristalina Georgieva, was worried enough last month to warn the Fed and other ratehiking central banks to stay “mindful of the spillover risks to vulnerable emerging and developing economies.’’

Citing the harsher financial conditions, the IMF recently downgraded the outlook for economic growth this year in developing and emerging market countries to 3.8 percent, a full per-

centage point below what it forecast in January.

The Fed on Wednesday raised its benchmark short-term rate by half a percentage point to its highest level since the pandemic hit two years ago, and signaled that more rate hikes will come.

The US rate hikes can deliver longdistance damage in a number of ways.

First, they could slow the American economy and reduce US consumers’ appetite for foreign goods.

They also affect global investment: As rates rise in the US, safer American government and corporate bonds start looking more attractive to global investors. So they can pull money out of poor and middle-income countries and invest it in the United States. Those shifts drive up the US dollar and push down currencies in the developing world.

Falling currencies can cause problems. They make it more expensive to

Sri Lankans queue up near a fuel station to buy kerosene in Colombo, Sri Lanka, on April 12, 2022. When the Federal Reserve raises interest rates—as it did Wednesday, May 4, 2022—the impact doesn’t stop with US homebuyers paying more for mortgages or Main Street business owners facing costlier bank loans. The fallout can be felt beyond America’s borders, hitting shopkeepers in Sri Lanka, farmers in Mozambique and families in poorer countries around the world. AP/Eranga Jayawardena pay for imported food and other products. That is especially worrisome at a time when supply chain bottlenecks and the war in Ukraine have already disrupted shipments of grain and fertilizer and pushed up food prices worldwide to alarming levels.

To defend their sinking currencies, central banks in developing countries are likely to raise their own rates; some have already started. That can cause economic damage: It slows growth, wipes out jobs and squeezes business borrowers. It also forces indebted governments to spend more of their budgets on interest payments and less on things like fighting Covid-19 and feeding the poor.

The IMF’s Georgieva has warned

that 60 percent of low-income countries are already in or near “debt distress’’—an alarming threshold reached when their debt payments equal half the size of their national economies.

Despite the risks of collateral damage, the Fed is expected to raise rates several more times this year to combat resurgent inflation in the United States.

The inflationary surge is the result of an unexpectedly strong recovery from the pandemic recession of 2020, a rebound that caught businesses by surprise and forced them to scramble to find workers and supplies to meet customer demand. The result has been shortages, delays in filling orders and higher prices. In March, US consumer prices rose 8.5 percent from a year earlier—biggest jump since 1981.

By pushing up interest rates, the Fed is hoping to pull off a so-called soft landing—raising rates just enough to slow the economy and bring inflation under control but not enough to tip the US economy into another recession.

Developing countries are worried the Fed waited too long to begin its antiinflationary campaign and will be forced to raise rates so aggressively it causes a hard landing that hurts the United States and developing countries alike.

“They would have been much better off if the Fed would have reacted more swiftly when the problem started’’ last year, said Liliana Rojas-Suarez, senior fellow at the Center for Global Development.

The Fed does not have an impressive record of engineering soft landings.

The last one came in the mid-1990s under Fed Chair Alan Greenspan, an episode that ended unhappily for many developing countries.

“The US was able to manage inflation well and avoid recession,’’ RojasSuarez said, “but at the same time

created huge spillovers for emerging markets.’’ What followed was a series of financial crises—in Mexico, in Russia and eventually across much of Asia.

Robin Brooks, chief economist at the Institute of International Finance, notes that many emerging market countries are in a much stronger financial position than they were back then, or even in 2013, when Fed plans to cut back its easy money policies sent investment fleeing the developing world.

For one thing, many have beefed up their foreign currency reserves, which central banks can use to buy and support their countries’ currencies or meet foreign debt payments in a crisis. On the eve of the 1997-1998 Asian financial crisis, for instance, Thailand’s reserves were equal to 19 percent of its economy; now they’re at 47 percent, according to the institute, a trade group for global banks.

Brooks also says that rising raw materials prices are “a bit of windfall’’ for commodities exporters like oil-producing Nigeria and soybeanproducing Brazil.

But some countries remain vulnerable to financial shocks. Among them are those that rely heavily on imported oil and other commodities and that have low reserves compared to what they owe other countries. At the top of Rojas-Suarez’s list of the most exposed to financial risks is Sri Lanka, which last month said it was suspending repayment of foreign debt while it works out a loan restructuring program with the IMF. Also flashing red are Tunisia, Turkey and Mozambique.

Rising US interest rates don’t always spell disaster for developing world countries. If they’re climbing because the US economy is strong—and businesses and consumers want loans to buy things—that means more opportunities for countries with exports to sell into the US market.

But the fallout is very different when the Fed is hiking borrowing costs in a deliberate campaign to slow US growth and wring inflationary pressures out of the economy.

“If higher rates are driven mainly by worries about inflation or a hawkish turn in Fed policy...this will likely be more disruptive for emerging markets,’’ economists from the Fed and the conservative American Enterprise Institute wrote in a paper last year.

Which, worryingly, is what the Fed is doing now.

It’s another blow to countries still contending with big debts, large numbers of unvaccinated people and surging food prices.

“It’s added pressure,’’ LeCompte says, “and how much pressure can governments take?’’

www.businessmirror.com.ph

Amazon tribes turn the tables on intruders with social media

By Fabiano Maisonnave The Associated Press

R

IO DE JANEIRO—It was dusk on April 14 when Francisco Kuruaya heard a boat approaching along the river near his village in Brazil’s Amazon rainforest.

He assumed it was the regular delivery boat bringing gasoline for generators and outboard motors to remote settlements like his. Instead, what Kuruaya found was a barge dredging his people’s pristine river in search of gold.

Kuruaya had never seen a dredge operating in this area of the Xipaia people’s territory, let alone one this massive; it resembled a floating factory.

Kuruaya, 47, motored out to the barge, boarded it and confronted the gold miners.

They responded in harsh voices and he retreated for fear they were armed. But so was he—with a phone—the first he’d ever had. Back in his village Karimaa, his son Thaylewa Xipaia forwarded the photos of the mining boat to the tribe’s WhatsApp chat groups.

“Guys, this is urgent!” he said to fellow members of his tribe in an audio message The Associated Press has reviewed. “There’s a barge here at Pigeons Island. It’s huge and it’s destroying the whole island. My dad just went there and they almost took his phone.”

Several days’ voyage away, in the nearest city of Altamira, Kuruaya’s daugher Juma Xipaia received the frantic messages.

She recorded her own video with choked voice and watery eyes, warning that armed conflict was imminent—then uploaded it to social media.

In a matter of hours, word was out to the world.

The episode illustrates the advance of the Internet into vast, remote rainforest areas that, until recently, had no means of quickly sharing visual evidence of environmental crime. A fast-expanding network of antennae is empowering Indigenous groups to use phones, video cameras and social media to galvanize the public and pressure authorities to respond swiftly to threats from gold miners, landgrabbers and loggers.

Until now Indigenous communities have relied on radio to transmit their distress calls. Environmental and Indigenous rights groups then relayed these to the media and the public. But the non-profits have been maligned by Brazil’s far-right President Jair Bolsonaro, who advocates legalizing mining and land leasing in protected Indigenous territories. He has castigated the organizations as unreliable actors, out of touch with Indigenous people’s true desires and on the payroll of global environmental do-gooders.

Video and photos coming directly from Indigenous people are harder to dismiss and this is forcing authorities as well as the public to reckon with the reality on the ground.

“When used properly, technology helps a lot in real-time monitoring and denouncing,” said Nara Baré, head of the group Coordination of Indigenous Organizations of the Brazilian Amazon, in a telephone interview. “The external pressure to make the federal government act in the Xipaia territory was very important. Technology has been the main tool for that.”

Connectivity is not only enabling whistle-blowing on social media. Brazil’s Federal Prosecutor’s Office has set up a website to register reported crimes and receive uploaded visual material.

Previously people in remote communities have had to make the long and expensive trip to the nearest city that has a federal prosecutor’s office.

Xipaia territory is part of a pristine rainforest area known as Terra do Meio (Middle Earth) that is dotted with dozens of Indigenous and traditional river communities. Internet connection there was rare until mid-2020, when a group of nonprofits, including Health in Harmony and the Socio-Environmental Institute, financed installation of 17 antennae throughout the vast region.

Priority was given to communities with either health centers or market hubs for the production and sale of forest products, such as Brazil nuts. Signal can be painfully slow, especially on rainy days, yet it has connected people who were previously off the grid, and is enough for photos and videos to trickle out of the forest.

“The strategy was to improve communication and avoid unnecessary trips to the city,” said Marcelo Salazar, Health in Harmony’s Brazil program coordinator.

“The Internet makes it easier for health, education, and forest economy issues.”

Fighting environmental crime was an added benefit, he added.

Science Sunday BusinessMirror

www.businessmirror.com.ph • Editor: Lyn Resurreccion

Sunday, May 8, 2022

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DOST-certified 205,413 election board members ready for May 9 Assistant Secretary Leah J. Buendia (second from left, top) leads the Philippine delegation in the inaugural Philippines-Republic of Korea Joint Science and Technology Committee Meeting.

Philippine Ambassador to South Korea, Ambassador Maria Theresa B. Dizon-De Vega, is also in the meeting. Forming part of the Philippine delegation are: Dr. Esperanza O Cayanan, Dr. Enrico C. Paringit and Dr. Reynaldo V. Ebora. Seoul Philippine Embassy photo

PHL, ROK hold inaugural science, technology meeting

S

EOUL—The Philippines and the Republic of Korea held the inaugural Joint Science and Technolog y Consultation (JSTC) Meeting in a hybrid format on April 28.

The meeting was led by Assistant Secretary for International Cooperation Dr. Leah J. Buendia of the Philippine of the Department of Science and Technology (DOST), and Director General of International Cooperation Kim Seong-gyu of the Republic of Korea’s Ministry of Science and Information and Communication Technology (MSIT).

Both sides noted that the two countries have a great potential for cooperation in science and technology, especially in smart agriculture, climate change, and oceanography.

The topics will also be the initial focus for the expansion of partnership and proposed cooperation for both sides.

Buendia conveyed that scientific cooperation between the two countries firmed up early on when the Basic Agreement on Scientific and Technological Cooperation that was signed on July 7, 1981.

Since then, both sides have seen significant progress in science, technology and innovation (STI).

The signing of the memorandum of understanding on Scientific and Technological Cooperation between the DOST and MSIT in 2018, and the ongoing

partnership with the Korea International Cooperation Agency, Korea Atomic Energy Research Institute, Korea Institute for Advancement of Technology, and Korea Meteorological Administration, among others, exhibit the Philippines’ continuing fruitful STI cooperation with the Republic of Korea.

Ambassador De Vega also extended her congratulations on the convening of the inaugural PH-ROK JSTC and expressed that the first JSTC marks another milestone in the bilateral ties, as both sides seek to deepen PH-ROK relations through STI. She likewise expressed high hopes for the invaluable partnership that will arise from the Philippines’ excellent science and technology quality talent and the ROK’s technical and digital competitiveness in the sciences.

Both parties agreed to implement two projects related to climate change and smart agriculture. The projects are expected to start in September with DOST and MSIT providing total funding of $96,000 (approximately P5 million) for three years.

The Philippine Embassy in Seoul congratulated the DOST and the MSIT on forging intensified Philippines and Korea STI relations.

The next JSTC shall be conducted in mid-2024 to be hosted by the Philippines.

This woman scientist is working for 18 hours

By Rizal Raoul Reyes

T

o some spoiled brats and clueless individuals, working 18 hours is quite impossible. Nevertheless, for scientists like Academician Virginia Cuevas working 18 hours is a regular work routine.

“Some think working for 18 hours is laughable. I’ve been doing that since the 1980s,” Cuevas, a 1969 BS Botany graduate of University of the Philippines Diliman said in a recent webinar, “Game-changing Women of Science,” organized by the National Academy of Science and Technology.

“Do not count the number of hours in your work. I only slowed down during the pandemic.

Before Covid-19 hit the country, I traveled a lot doing research work,” Cuevas added.

She pointed out that scientists pursued their careers not aiming to win awards because they are passionate in pursuing research.

“We find fulfillment in contributing to the development of science in the country. Awards are just garnishes for us,” Cuevas said.

The ninth of 13 children, Cuevas recalled she was a initially intimidated when she started studying in UP in 1965 because of the small women population in the campus. Nevertheless, she was motivated to study by her parent’s advice that education is the only legacy that they can leave to their children.

After graduating in 1969, Cuevas started her teaching career general elective courses in a school in the University Belt area.

During her two-year stint in the university, Cuevas recalled having witnessed several demonstrations led by the students who were calling for social change in the country. She thought that the “serve the people” slogan of the students would be a great inspiration for teachers in imparting knowledge that would benefit the people.

Academician Dr. Virginia Cuevas UP Alumni web site photo

Despite being a mother of four, Cuevas pursued higher studies and finished her Ph.D in Botany in 1987.

In 1989, Cuevas developed her first product—trichoderma harzianum, a fungicide that addresses the decreased soil productivity marginalized by acidity.

“The result [of acidity] was that the soil suffered from nutrient imbalance,” Cuevas said.

By combining it with organic and inorganic fertilizer, Cuevas said her product was used as an adaptive strategy for drought caused

by El Nino.

She said trichoderma harzianum was also used by farmers engaged in banana, rice and vegetable.

“We are still promoting it to have a widespread application among the farmers in the country,’ she said.

Cuevas said aspiring scientists must first define their goals, give focus, full attention and passion in pursuing a career in science. You must also have time management can achieve a balance between family and career,” she said.

“My enabling environment in UPLB was also a big help in my pursuit of higher studies,” Cueva noted.

A

ll is set for the May 9 elections. The Department of Science and Technology (DOST) said it has completed the certification of 205,413 Electoral Board (EB) members who will serve in the elections.

In his report during the DOST Report last Friday, Science Secretary Fortunato T. de la Peña said the EB certification, as of April 21, has recorded a 94.23 percent passing rate nationwide.

He said the EB members were required to take both the theoretical and practical examinations on the parts and operation of vote counting machines.

He added that all 176 Special Board of Election Inspector

Electoral board members take practical examination on the parts and operations of vote counting machines for their certification by the DOST. Screenshot of DOST Report

(SBEI) members, who garnered 100 percent passing rate, were assig ned in different polling precincts overseas (Asia Pacific,

Middle East, Canada, Europe, North and Latin America, and Africa) for overseas voting that started in April 10.

De la Peña said the DOST entered into a memorandum of agreement with the Department of Information and Communications and the Commission on Elections for the establishment of 84 technical hubs in 84 provinces across the country.

This undertaking entails the deployment of 115 DOST information technolog y personnel who will man the hubs during the election.

The DOST EB certification is pursuant to Republic Act 9369, or the Amended Automated Election Act, which mandates the DOST to certify Electoral Board members who will serve during national and local elections. Lyn B. Resurreccion

Cancer genetics to help with targeted treatment

S

cientists have analyzed the full genetic blueprints of more than 18,000 cancer samples, finding new patterns of mutations that could help doctors provide better, more personalized treatment.

Their study, published on Thursday in the journal Science, isn’t the first to do such comprehensive “whole genome” analyses of cancer samples. But no one has ever done so many.

“This is the largest cohort in the world. It is extraordinary,” said Serena Nik-Zainal of the University of Cambridge, who was part of the team.

Just over 12,200 surgical specimens came from patients recruited from the UK National Health Service as part of a project to study whole genomes from people with common cancers and rare diseases. The rest came from existing cancer data sets.

Researchers were able to analyze such a large number because of the same improvements in genetic sequencing technology that recently allowed scientists to finally finish decoding the entire human genome—more capable, accurate machines.

“We can really begin to tease out the underpinnings of the erosive sort of forces that go to sort of generate cancer,” said Andrew Futreal, a genomic medicine expert at MD Anderson Cancer Center in Houston who was not involved in the study.

Cancer is a disease of the genome, or full set of instructions for running cells, that occurs when changes in a person’s DNA cause cells to grow and divide uncontrollably.

In 2020, there were about 19 million new cancer cases worldwide.

For the study, researchers looked at 19 different types—breast, colorectal, prostate, brain and others—and identified 58 new clues to the causes of cancer called “mutational signatures” that contribute to the development of the disease.

They also confirmed 51 of more than 70 previously reported mutation patterns, Nik-Zainal said.

Some arise because of problems within a person’s cells; others are sparked by environmental exposures, such as ultraviolet radiation, tobacco smoke or chemicals.

Knowing more of them “helps us to understand each person’s cancer more precisely,” which can help guide treatment, Nik-Zainal said.

Genetic sequencing is already being woven into cancer care as part of the growing trend of personalized medicine, or care based on a patient’s genes and specific disease.

Now doctors will have much more information to draw from when they look at individual cancers.

To help doctors use this information, researchers developed a computer algorithm that will allow them to find common mutation patterns and seek out rare ones.

Based on a particular pattern,

Nik-Zainal said a doctor may suggest a certain course of action, such as getting immunotherapy.

Futreal said the data can also show doctors what tends to happen over time when a patient develops a cancer with a certain mutation pattern—helping them intervene earlier and hopefully stop the developing disease in its tracks. AP

This microscope image made available by the National Cancer Institute Center for Cancer Research in 2015 shows human colon cancer cells with the nuclei stained red.

NCI Center for Cancer Research via AP

Sunday, May 8, 2022

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Faith

Sunday

Editor: Lyn Resurreccion • www.businessmirror.com.ph

Laiko tells members to vote well; some back Buhay

By Samuel P. Medenilla

P

ick a party-list group, which w ill represent the marginalized.

This was the reminder of the Council of Laity of the Philippines (Laiko) in a statement it issued recently.

Its members earlier expressed their support for the Buhay Party-list, which has been espousing

pro-life advocacies for nearly two decades.

Laiko President Raymond Daniel H. Cruz Jr. said it will be up to voters to make sure the intent of Republic Act (R A) 7941, or the Party-List System Act will be realized. “ We appeal to our fellow laity to carefully weigh the selection of a party-list, which w ill genuinely stand for the betterment of our citizens especially workers, those

w ith disabilities and the poor as intended by R A 7941,” Cruz said.

He noted while members of the Laiko expressed their support for Buhay Party-List, he said they w ill leave up to the ow n judgement to pick the party-list group they would like to vote for.

To help voters in making their decision, Laiko urged them to make use of the consolidated party-lists background information made by

election watchdog, Kontra Daya, which can be accessed at https://bit. ly/3DLsMNp. In the report, Kontra Daya detailed the party-list groups with nominees affiliated with political dynasties, big businesses, government and the military, or an incumbent government official.

It also identified the party-list groups with dubious advocacies or with pending court cases.

“Let us help our honest Catholic Laity, who are ready to participate in new politics for the common good and uplift the level of life of Filipinos,” Cruz said.

Kontra Daya and other election observers criticized the Commission on Election (Comelec) for still including party-list groups in the election ballot despite their not representing the marginalized.

The poll body repeatedly explained

Will their flock heed N the shepherds’ call?

that under the provision of the RA 7941, party-list groups are allowed to represent not only the marginalized but also political groups.

It noted a new law must be passed before the party-list groups could be made exclusive for marginalized sectors.

During the 2022 polls, voters w ill be able to vote for one of the 173 party-list groups, which were included by the Comelec in its final ballot ty peface.

9 heritage churches celebrate 450 years

F

By Edwin P. Galvez

ilipino Catholics will mark this year’s celebration of the Good Shepherd Sunday today, the fourth Sunday of Easter.

The feast day comes after hundreds, if not thousands, of priests, religious nuns and brothers and members of lay organizations have already expressed support for a tandem since the campaign for the national elections began on February 8.

In an unprecedented development in the long and contentious history of the Catholic church in the country, the endorsements of its prelates, priests, the religious and laity continue to pour in. This question, however, begs to be asked: Will their flock listen?

The 1,422-strong Clergy for the Moral Choice (CMC) added its voice in support for Vice President Leni Robredo and her running mate Senator Kiko Pangilinan in a news conference at the Manila Cathedral last Wednesday.

“If you expound on [today’s] reading and the essence of the celebration, you will come to realize that Jesus was referring not only to bishops and the clergy to be the good shepherd and to be the shepherd for others,” Msgr. Melchor D. David, one of CMC’s founders, said in an interview with BusinessMirror on Monday.

“It refers to each and every one of us as, in the same way, it also refers to anyone who is a fake, a false or a hired shepherd,” David said.

David, parish priest of Mary, Mother of Good Counsel and priest director of the Council of the Laity of the Diocese of Parañaque, said the current situation calls for the clergy’s concrete action.

First time to choose candidates

Novaliches Bishop Antonio R. Tobias believes that the Catholic church should have played a more active role in the past elections, saying “priests have always felt it was the right.”

“This is probably the first time that priests and bishops came out and continue to come out to reveal their chosen candidates,” Bishop Tobias said in an interview with BusinessMirror on Monday.

Tobias is one of the 13 bishops in the Clergy for the Moral Choice.

“For the longest time, the church has not been as open as [now] because in the past there was a view that the church should not be involved in politics. This proved harmful for the country,” he explained in Filipino.

Tobias added that in our country’s history, it is only the Catholic church that did not dip its hands in the elections.

Rev. Fr. Jose Rock C. Berdos (third from left, front) reads the statement of support for Vice President Leni Robredo and Kiko Panglinan during the news conference of the Clergy for the Moral Choice with (from left) Novaliches Bishop Antonio R. Tobias; Rev. Fr. John V. Era, CM; and Rev. Msgr. Jesus-Romulo C. Rañada. Photo by Jonas Peradilla

“With other churches, such as Iglesia ni Cristo, it is clear that they endorse candidates not according to moral choice, but chooses whoever will be more beneficial to them,” he said.

He lamented that in the past elections, “the right candidates do not come out as winners.”

“But even if we would like the people to vote according to their own conscience, they are unable to do so. But we cannot just let this pass,” he said.

Not meddling in politics

The bishop said that as the election draws near, it is clear that he and the other bishops have a choice and that this candidate should rightfully win.

“The church came out for the first time and I think this is the right way of doing it,” he said.

“Now there is a clear choice that people should also choose because it is right and true. We never did this before. Let’s see how it could make a difference,” the bishop explained.

The bishop clarified that the Catholic church does not interfere or meddle in politics.

“Religion has long meddled in the country’s affairs. We [Catholic Church] do not. But many have benefited from it and it was wrong. It will not push for the moral choice because religion benefits from it or for some priests alone. Thanks that what should have long come out is now out,” he explained.

Canon Law

Tobias clarified that the Canon Law only prohibits priests from entering politics or becoming the candidates themselves.

“The Canon Law does not prohibit us from telling the people who to vote for, and this is what our priests, bishops and the church are doing now,” he pointed out.

This, he said, is the real role of the church.

“I think politics will become different now because the Catholic Church has finally come out of its shell. Today it has become clearer to me who should be the rightful winner,” the bishop said.

He noted that people from “all walks of life” are now rooting for the same candidate. He is thankful that the church has reached this level.

“It took [us] long but let us see its effect. I think it is giving a dent.

It is not partisan because partisan means all candidates are the same.

We are letting everyone know that the moral choice is based on one’s conscience),” he said.

He said that it is his obligation as a priest and a bishop to show the “right way.”

Moral choice

David said key members of CMC first met on February 17 at the “penitential walk” organized by the Archdiocese of Manila to pray for voters’ discernment on the May 9 elections.

The group met every Friday, and on March 6 it finally came up with a statement of support naming Robredo and Pangilinan.

David said they “cited a lot of issues that led us to that communal discernment of coming up with common candidates.”

“It will be unthinkable for the church to remain neutral. It should be far from the identity of the church to become neutral when it comes to social issues that greatly affect the lives of Filipinos,” the priest said.

He explained that it is not simply a matter of choosing between the son and namesake of the late dictator Ferdinand Marcos Jr., Robredo or any of the candidates.

There is, he said, a “very glaring” struggle between truth and

falsehood or between real history and a revised history.

“I could not live with a peaceful mind and a peaceful heart when many of my parishioners appreciate what the revised history is telling them. One reason is that they have been fed with false news, false facts and revised facts that led them to idolize the Marcos era,” David said.

The CMC initially garnered 1,043 signatures after its statement of support was sent to various dioceses all over the country.

He noted that after some reflection the priests realized the “significance of the number.”

“Ten is the number of Leni and four plus three is Kiko’s. Second, both filed their certificates of candidacy on October 7, or 10 and seven, which was also the triumph of the Battle of Lepanto,” he said.

Social teachings

David, who has been a priest for 41 years, started talking to his parishioners about what really happened during the martial law years. To his dismay, many considered the years of Marcos dictatorship as “golden.”

“How can you call them golden years when many were jailed without due process and people languished in poverty while only a handful lived affluent lives?” he asked them. To counter these views, David infused in his homilies the issues related to the social teachings of the church.

But in spite of his efforts to explain the social teachings in his homilies, David said many still approach him to ask in Filipino: “Who is it really?Who are you referring to?”

“This is not because they do not know everything, but it simply means they have been bombarded with falsehood,” he said.

The monsignor, who is also director of the Diocesan Ministry on Good Governance, Public Affairs and Advocacy, said this is his first time to openly support a particular candidate, which he did together also for the first time with the other clergy.

“Someone told me, ‘Monsi, in your homily, you seem to be hitting us parishioners, including me.’ I told her I did it because I love her and I will do everything to make her realize what is right from wrong. That I will give her every reason to choose what is right and turn away from what is wrong because I love her,” David explained.

So will the flock listen to them?

David had this to say: “As we do our share for the good of our people, let us give room for the Lord to make His miracle.”

ine parish churches across the country celebrated 450 years of existence and Christianization of their respective towns on Tuesday, May 3.

According to the Augustinian Province of the Most Holy Name of Jesus of the Philippines based in Manila, the parishes were erected at the decision of the Second Provincial Chapter on May 3, 1572, when priors were elected for the respective Augustinian convents.

The parishes are the Most Holy Name of Jesus (Sto. Niño) of Tondo, Manila; St. Augustine of Lubao and St. James the Apostle of Guagua in Pampnga; St. John the Baptist of Calumpit, Bulacan; Immaculate Conception of Pasig; St. Martin of Tours of Taal, Batangas; St. Augustine of Bay, Laguna; Immaculate Conception of Oton (Ogtong), Iloilo; and St. Monica of Panay, Capiz.

In Tondo, Manila, the Archdiocesan Shrine of Sto. Niño de Tondo commemorated the anniversary with activities from April 29 to May 3.

The original image of Santo Niño de Tondo was welcomed on May 2 at San Agustin Church in Intramuros as a commemoration of its original house with the Augustinians.

On May 3, an unveiling of commemorative markers was led by Tondo Shrine Rector Fr. Estelito Villegas and Holy Name of Jesus Augustinian Prior Provincial Dante Badoy.

The markers recognize Tondo as the first mission church of the Augustinians in Luzon and the first parish church erected by the Order based on its records.

The celebration was capped with a Mass led by Cardinal Jose Advincula of Manila at 6 p.m. followed by a procession of the original image of Santo Niño de Tondo.

In Central Luzon, the parishes of Lubao and Betis in Guagua, Pampanga, and in Calumpit, Bulacan, also celebrated their 450th anniversaries as these parishes were co-erected as visitas of Tondo.

According to the Facebook page, Lubao–450 Years of Christianity, St. Augustine Parish in Lubao held its anniversary festivities from April 26 to May 5.

Last April 30, it launched “Simboriu,” a zarzuela about the seed of Christianity in the town.

The the highlight of the celebrations was the unveiling of the historical marker at the first site in Sta. Catalina Chapel and a Mass be led by Archbishop Florentino Lavarias of San Fernando.

In Bulacan’s Diocesan Shrine and Parish of St. John the Baptist in Calumpit, the festivities were marked with a Mass on May 3 led by Bishop Dennis Villarojo of Malolos.

Also in attendance were Bishop Emeritus Deogracias Iñiguez of Kalookan and the Malolos clergy.

The Mass was joined by the parish communities in the Vicariate of St. James the Apostle, where the parish belonged to, the Shrine’s Parish Pastoral Council, and St. John the Baptist Catholic School.

The parishes are among the most notable in the country due to their historic role as pioneer parishes.

Tondo is remembered as the mother parish of many of the parishes in Manila and nearby provinces, while the parishes of Lubao and Calumpit are the first parishes in Pampanga and Bulacan, respectively.

In Pasig, meanwhile, the Immaculate Conception church was declared a cathedral and is mother parish to many churches in the Southern Tagalog, including Taal’s minor basilica, the largest church in the Philippines and in Asia.

In Panay, St. Monica Parish has the largest church bell in the country, while Oton is considered the first parish dedicated to the Immaculate Conception in the country.

Due to their well-preserved structure, heritage and artworks, Betis and Panay are declared National Cultural Treasures by the National Museum of the Philippines and the National Commission for Culture and the Arts.

The Augustinians were the first friar missionaries in the Philippines and to evangelize the local inhabitants during the time of the first Spanish Governor-General Miguel Lopez de Legaspi in 1565.

Kendrick Ivan B. Panganiban/CBCP News

Cebu’s Mount Carmel Parish declared archdiocesan shrine

T

he Our Lady of Mount Carmel ParishRecoletos in the heart of Cebu City was declared an archdiocesan shrine on April 29.

Archbishop Jose Palma of Cebu presided the Mass for the parish’s new status.

In his homily, Palma noted that “for all of us who have experiences of both joys and difficulties, we know that we have Mama Mary.”

“Carmel is Mama Mary and her assurance of protection,” Palma said.

In March 7, 2022, decree, the archbishop wrote that the shrine will now be called “Santuario Arquidiocesano de Nuestra Señora del Carmen, La Limpia,” or Archdiocesan Shrine of Our Lady of Mount Carmel, the Clean One. During the celebration, Palma placed his gift to the venerated image, an ex-voto medallion with the image of Our Lady of Mount Carmel.

Among those in attendance were Cebu Auxiliary Bishop Midyphil Billones, Cebu Auxiliary Bishop Emeritus Antono Rañola, a delegate of the Recollect General Curia in Rome, Recollect Philippine Prior Provincial Dionisio Selma, and priests of the Recollect Order and the Cebu archdiocese.

Cebu Archdiocesan Chancellor Msgr.

Renato Beltran Jr., also announced during the event that the shrine received a “special year of grace,” wherein a plenary indulgence is granted to pilgrims who come to the shrine from April 29, 2022, to April 29, 2023.

Another highlight of the celebration was the procession of the Mount Carmel image at the newly-inaugurated Cebu-Cordova Link Expressway, now the longest bridge in the country.

The parish, currently found within the main campus of University of San JoséRecoletos under the Order of Augustinian

Recollects-Province of San Ezekiel Moreno, was dedicated to Our Lady of the Mount Carmel since their arrival on the island in 1621.

Formerly known as Ermita de La Limpia Concepción (Hermitage of the Clean Conception) under the Augustinians, the stewardship of its church and community were entrusted to the Recollects and marked the 400 years of Recollect presence in the province (1621-2021).

Last January 8, the image of Nuestra Señora del Carmen, La Limpia was also granted an episcopal coronation by Archbishop Palma.

Also, last April 24, Apostolic Nuncio to the Philippines Charles John Brown visited during the closing rites of the 500 years of Christianity celebration in Cebu and offered an ex-voto on behalf of Pope Francis.

Cebu Archdiocese has the largest number of local shrines in any diocese in the country.

It has one minor basilica, the Sto. Niño, Cebu City, two national shrines—the Virgen de la Regla, Lapu-Lapu City and St. Joseph, Mandaue City.

Cebu also has 22 other archdiocesan shrines: Sacred Heart of Jesus, Our Lady of Guadalupe, Our Lady of Lourdes, San Nicolas de Tolentino, San Roque, St. Therese of the Child Jesus, St. Arnold Janssen, and San Pedro Calungsod in Cebu City; Our Lady of Fatima in Mandaue City; Jesús Nazareno, Our Lady of Schoenstatt, and St. Teresa of Avila in Talisay City; Theotokos and St. Catherine of Alexandria in Carcar City; St. Vincent Ferrer in Bogo City; St. Francis of Assisi in Naga City; St. John of Sahagun in Toledo City; Immaculate Heart of Mary in Minglanilla; St. Michael the Archangel in Argao; St. Anne in Barili; St. Anthony of Padua in Tuburan; and Santiago Mayor, Compostela.

Kendrick Ivan B. Panganiban/CBCP News

Biodiversity Sunday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Sunday, May 8, 2022

Editor: Lyn Resurreccion

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Will commercialization prevent the extinction of Aquilaria trees?

Saving the ‘wood of the gods’ A 40- to 50-million-year-old cockroach in Baltic amber that was from Eocene epoch, or about 55.8 million to 33.9 million years ago. Wikipedia CC by-SA 4.0

How cockroaches survived the asteroid

W

hen the rock now known as the Chicxulub impactor plummeted from outer space and slammed into the Earth 66 million years ago, cockroaches were there.

The impact caused a massive earthquake, and scientists think it also triggered volcanic eruptions thousands of miles from the impact site. Three-quarters of plants and animals on Earth died, including all dinosaurs, except for some species that were ancestors of today’s birds.

How could roaches a couple of inches long survive when so many powerful animals went extinct?

It turns out that they were nicely equipped to live through a meteoric catastrophe.

If you’ve ever seen a cockroach, you’ve probably noticed that their bodies are very flat. This is not an accident.

Flatter insects can squeeze themselves into tighter places. This enables them to hide practically anywhere—and it may have helped them survive the Chicxulub impact.

When the meteor struck, temperatures on Earth’s surface skyrocketed.

Many animals had nowhere to flee, but roaches could take shelter in tiny soil crevices, which provide excellent protection from heat.

The meteor’s impact triggered a cascade of effects. It kicked up so much dust that the sky darkened. As the sun dimmed, temperatures plunged and conditions became wintry around the globe.

With little sunlight, surviving plants struggled to grow, and many other organisms that relied on those plants went hungry.

Not cockroaches, though. Unlike some insects that prefer to eat one specific plant, cockroaches are omnivorous scavengers.

This means they will eat most foods that come from animals or plants as well as cardboard, some kinds of clothing and even poop.

Having appetites that aren’t picky has allowed cockroaches to survive lean times since the Chicxulub extinction and other natural disasters.

Another helpful trait is that cockroaches lay their eggs in little protective cases. These egg cartons look like dried beans and are called oothecae, which means “egg cases.”

Like phone cases, oothecae are hard and protect their contents from physical damage and other threats, such as flooding and drought. Some cockroaches may have waited out part of the Chicxulub catastrophe from the comfort of their oothecae.

Modern cockroaches are little survivors that can live just about anywhere on land, from the heat of the tropics to some of the coldest parts of the globe. Scientists estimate that there over 4,000 cockroach species.

A handful of these species like to live with humans and quickly become pests. Once cockroaches become established in a building, it’s hard to rid every little crack of these insects and their oothecae.

When large numbers of roaches are present in unsanitary places, they can spread diseases. The biggest threat they pose to human health is from allergens they produce that can trigger asthma attacks and allergic reactions in some people.

Cockroach pests are hard to manage because they can resist many chemical insecticides and because they have the same abilities that helped their ancestors outlive many dinosaurs.

Still, cockroaches are much more than a pest to control. Researchers study cockroaches to understand how they move and how their bodies are designed to get ideas for building better robots.

As a scientist, I see all insects as beautiful, six-legged inspirations.

Cockroaches have already overcome odds that were too great for dinosaurs. If another meteorite hit the Earth, I’d be more worried for humans than for cockroaches.

Brian Lovett, West Virginia University/The Conversation CC

The aromatic and rare agarwood from Aquilaria tree species is the world’s most expensive forest product, which price fetches as much as $100,000 a kilogram. Iba Botanicals Inc./agarwoodph.com

S

By Jonathan L. Mayuga

eventy-three kilograms of agarwood chips were confiscated at the Port of Davao on December 24, 2020, the Bureau of Customs reported.

The confiscated forest products, estimated to be worth P62 million, were scheduled to be shipped to Vietnam through the Ninoy Aquino International Airport in Manila.

‘Wood of the gods’

Sought for its fragrant dark resinous heartwood, agarwood, locally known as “lapnisan,” is used in making incense and perfume products. It is often used in church or religious practices—getting the tag “wood of the gods”—and for medicinal purposes.

It is the most expensive forest product and rarest in the world, with a kilogram fetches up to $100,000.

Its high demand is rendering agarwood threatened with global extinction because of tree poaching that cut down every tree from genus Aquilaria in search of agarwood. Aquilaria has 15 species of trees in the family Thymelaeaceae.

Rare product

Agarwood is naturally produced in the wild when an Aquilaria tree is injured and a type of mold grows in it and infects the wood to produce the unusually fragrant scent.

As not all Aquilaria trees in the wild produce agarwood and the only way to find out is to cut down the tree and chop it into pieces, it is like a “hit and miss” for agarwood poachers, who journey to search for this forest product.

Aquilaria trees are very rare and are found only in the deepest parts of the jungles in Southeast Asia, including the Philippines.

Endangered species

Due to its high value, hunting for this dark, brown agarwood in every Aquilaria tree in the wild has led to its status as endangered species.

This occurs even as trading of an Aquilaria tree, its products and byproducts, are highly regulated for trade to deter poaching.

Despite the campaign against illegal wildlife trade, including agarwood, poaching of the tree has been ongoing, with some Filipinos harvesting seeds and seedlings from the wild to grow them in their own backyard, in the hope of producing a small fortune in producing agarwood.

According to Benjamin Mead, founder and CEO of Iba Botanicals Inc., around 80 percent of agarwood has reportedly been cut.

“We went through the process and secured the necessary permits to establish a legal and sustainable agarwood industry in the Philippines. This was designed to support the population of agarwood, promoting a new high-value sustainable agricultural industry. We focused on indigenous species of Aquilaria trees,” he said.

Commercialization

As a strategy to curb the illegal wildlife trade of the precious forest product and save the Aquilaria trees from extinction, the Department of Environment and Natural Resources (DENR), through its Biodiversity Management Bureau (BMB), is now promoting the commercialization of agarwood.

T heresa Tena zas, DENR-BMB OIC division chief of the Wildlife Resources Unit, told the BusinessMirror that of the 12 wildlife culture permits issued by the DENR, half are for agarwood.

The DENR started issuing wildlife culture permits for agarwood in the last quarter of 2021.

No harvesting in the wild

According to Tenazas, harvesting wild Aquilaria trees is prohibited without permits.

Harvesting in the wild, she added, requires a special permit, which is different from an import permit and permit to operate a tree plantation for commercial production.

Since it is listed in Convention on International Trade in Endangered Species of Wild Fauna and Flora, the trading of Aquilaria trees, seeds, seedlings, or its byproducts, require a CITES permit, she said.

“Those who wish to start agarwood production need to secure all permits, otherwise, selling will not be allowed,” Tenazas said in a May 4 telephone interview.

Birth of an industry

The high-value agarwood industry requires a certified legal source. Being a pioneer, Iba Botanicals may be the first and the only legal source of agarwood seedlings in the Philippines.

Iba Botanicals, a company based in Iba, Zambales, was the first to secure a wildlife culture permit from the DENR as well as from the Department of Agriculture’s Bureau of Plant Industry to import seedlings, grow, propagate

Seeds of an Aquaria tree. Shutterstock and sell them within the Philippines.

The permit issued by the DENRBMB to Iba Botanicals on September 23, 2021, allowed the company to operate an Aquilaria malaccensis plantation in Zambales, where the company can also practice inoculation to induce the production of the high-value agar wood from the trees.

“There’s a lot of online selling of agarwood seedlings going on. But only Iba Botanicals has the legal permit to sell them,” Mead told the BusinessMirror via Zoom on May 4.

Mead said the company is spearheading the move to establish the Agarwood Association of the Philippines, with private individuals, the academe and various stakeholders, to promote the best practice in the production of agarwood.

10-year process

Producing agarwood on an agroforestry plantation or on one’s backyard takes at least 10 years from cultivation, to nurturing the trees, to inoculation and have the agarwood ready for harvest.

Fortunately, the Philippines is known to host a number of Aquilaria trees, including the Aquilaria malleccensis species, which produces the most aromatic, making it the most profitable agarwood.

“It takes about seven years to grow Aquilaria trees and another three years of waiting after inoculation to harvest,” he said.

After 10 years, a single Aquilaria tree can earn the tree farmer or plantation owner at least P1.2 million a tree.

According to Mead, the cultivation of Aquilaria trees is not new. Some countries in Asia are successfully producing agarwood. This makes the illegal wildlife trade in the Philippines, which threatens to drive the species to extinction, a big issue.

Tree seedling importer

As an importer of Aquilaria tree seedlings, Iba Botanicals has started selling seedlings, and has been helping buyers to secure permits from concerned government agencies.

The company has established a partnership with Gourmet Farms to promote and distribute Agarwood seedlings from its nursery in Tagaytay, but larger volumes are also available for commercial-scale plantations.

I ba B ot a n ic a l s a nd G ou r met Fa r ms have a lso st a r ted g iv ing seminars to address requirements and techniques needed to success-

fully cultivate Aquilaria trees, from propagation to harvesting, licensing, permitting and marketing.

In its web site, Goumet Farms indicated that a tree seedling of Aquilaria costs P1,000.

According to Mead, it was through an engagement with DENR-BMB that Iba Botanicals has began to understand the significant pressure of agarwood poaching on the Philippines.

“A gar wood is IUCN [Inter national Union for Conser vation of Nature] red-listed so its trade is severely restricted,” he said.

So far, Iba Botanicals and Gourmet Farms are holding at least twice a week training seminars.

Finding the legal source

It is also, for this reason, Mead said, that Iba Botanicals is reaching out to interested par ties to secure the necessar y permits from government agencies if they intend to propagate Aquilaria malaccensis trees, or produce agar wood for commercialization.

According to Mead, around 80 percent of Aquilera trees had been reportedly cut in the Philippines in 2018.

“We went through the process and secured the necessary permits to establish a legal and sustainable agarwood industry in the Philippines.

This is really designed to support the population of agarwood and to promote a new high-value sustainable agricultural industry. We focused on indigenous species of Aquilaria trees,” he said.

Exciting development

According to Mead, consistent with Iba Botanical’s approach to creating a sustainable industry, the company is offering technical support and training, including seed and seedling supply.

While there are a lot of uncertainties or lack of clarity around some of the legalities around agarwood, he said close coordination with concerned government agencies will help address the problems.

“We also educate people about the importance of wildlife culture permit and on the legal source of materials,” he said.

He added that for now the company is importing seeds, but will soon be doing the selling.

Mead said the initial target is to expand in Mindanao, with 1,000 hectares of sustainable agroforestry of mixed species, including Aquilaria trees.

One-fifth of reptiles worldwide face extinction W

ASHINGTON—Even the king cobra is “vulnerable.” More than one in five species of reptiles worldwide are threatened with extinction, according to a comprehensive new assessment of thousands of species published recently in the journal Nature.

Of 10,196 reptile species analyzed, 21 percent were classified as endangered, critically endangered or vulnerable to extinction—including the iconic hooded snakes of South and Southeast Asia.

“This work is a very significant achievement—it adds to our knowledge of where threatened species are, and where we must

work to protect them,” said Duke University ecologist Stuart Pimm, who was not involved in the study.

Similar prior assessments had been conducted for mammals, birds and amphibians, informing government decisions about how to draw boundaries of national parks and allocate environmental funds.

Work on the reptile study—which involved nearly 1,000 scientists and 52 coauthors—started in 2005. The project was slowed by challenges in fundraising, said co-author Bruce Young, a zoologist at the nonprofit science organization NatureServe.

“There’s a lot more focus on furrier,

feathery species of vertebrates for conservation,” Young said, lamenting the perceived charisma gap.

But reptiles are also fascinating and essential to ecosystems, he said.

The Galapagos marine iguana, the world’s only lizard adapted to marine life, is classified as “vulnerable” to extinction, said co-author Blair Hedges, a biologist at Temple University.

It took 5 million years for the lizard to adapt to foraging in the sea, he said, lamenting “how much evolutionary history can be lost if this single species” goes extinct.

Six of the world’s species of sea turtles

are threatened. The seventh is likely also in trouble, but scientists lack data to make a classification.

Worldwide, the greatest threat to reptile life is habitat destruction. Hunting, invasive species and climate change also pose threats, said co-author Neil Cox, a manager at the International Union for the Conservation of Nature’s biodiversity assessment unit.

Reptiles that live in forest areas, such as the king cobra, are more likely to be threatened with extinction than desert-dwellers, in part because forests face greater human disruptions, the study found. AP

A king cobra snake is hidden in a potato chip can that was found in the mail in Los Angeles.

Reptiles that live in forest areas, such as the king cobra, are more likely to be threatened with extinction than desert-dwellers, in part because forests face greater human disruptions.

US Fish and Wildlife via AP

Sports BusinessMirror

THE brazen demand made on behalf of University of Miami basketball star Isaiah Wong provides a rare, unvarnished glimpse into the way elite college sports have been transformed by athletes’ rights to earn money through endorsements. AP

A8 | S

unday, May 8, 2022 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

COLLEGE SPORTS:

FREE MARKET A N agent for a prominent college athlete finally said out loud what schools likely hear in private: Pay the player more, or he will transfer to a school that will.

The brazen demand made on behalf of University of Miami basketball star Isaiah Wong last week provided a rare, unvarnished glimpse into the way elite college sports have been transformed by athletes’ rights to earn money through endorsements.

Teammates are comparing contracts. Players’ financial backers are swapping barbs. And coaches and administrators are struggling to keep their rosters full—and players happy—without running afoul of the rules.

If Wong’s agent didn’t technically cross the bounds of what’s permissible—players can’t seek payment simply in return for a promise to play at a specific school—then he firmly planted his foot on the line, according to labor experts.

“We are rapidly moving toward professionalization at full market rate for these NCAA players,” said Michael LeRoy, labor law professor at the University of Illinois. "It’s very clear it’s really not about endorsements, it’s about paying guys for their performance.”

Until recently, endorsement deals—or any compensation other than scholarships—were strictly off limits for college athletes. Paying students was seen as a threat to the ideal of amateur sports. But legal challenges by athletes seeking to reap some of the billions of dollars schools were earning off of sports forced change. In 2019, California became the first state to pass a law allowing athletes to earn money on endorsements, autograph signings and other activities, and by July 2021, the NCAA lifted its decades-old ban.

The NCAA left in place only loosely defined guidelines: the deals could not be used to entice recruits or as a form of pay-for-play contracts.

Wong, who has apparently opted to stay at Miami, surely wasn’t the first player to have a representative make a demand based on a player’s perceived market value, and he won’t be the last, experts said.

“He was just the first to be so public about it,” said Todd Berry, executive director of the American Football Coaches Association.

Tens of thousands of athletes across many sports have cashed in, according to Opendorse, a firm that works with schools on playercompensation matters ranging from brand-building to compliance.

Deals can be worth as little as a few hundred dollars; some reportedly top $1 million. Football players earn the most, followed by women’s and men’s basketball players, according to Opendorse.

Endorsements can be found far and wide, even in seemingly lowprofile sports such as golf, rowing and hockey.

So far, it’s only been individual players like landing big deals, but that could change. LeRoy, the labor law professor, wondered what would happen if players from the same basketball team made a joint demand for more generous endorsement pay, putting a program in a bind.

It’s easier for a football team to bounce back if players seeking better endorsements transfer to other schools because the rosters are larger than in basketball. But keeping everyone happy is a challenge for coaches.

“All 85 players are your roster and free agents every year,” Berry said. “This is a professional model. It's not a collegiate model anymore.”

TCU football coach Sonny Dykes said recruits routinely ask about endorsement deals.

“Basically, all we can do is pass on a number and say, ’Hey,

you can talk to this guy, and he’ll tell you what we can or can’t do.’ It’s really that simple,” Dykes said. “The concern for me is that somebody makes a promise to a kid and doesn’t follow through.

We have no control over that.”

In many cases, the people to call are the ones running socalled collectives, sports marketing agencies that have sprung up to support specific schools and facilitate deals between their athletes and businesses such as apparel companies, energy drink companies, car dealerships and restaurants.

At Texas, one group is dangling $50,000 a year to individual offensive linemen for work supporting community charities, such as in-person appearances, promotions or representation. At the University of Oregon, billionaire Nike founder Phil Knight is part of group helping Ducks athletes line up deals.

Nigel Pack, a men’s basketball player who transferred to Miami from Kansas State, signed with the software company LifeWallet for $800,000, plus the use of a car for two years. UConn basketball player Paige Bueckers last year was the first college athlete to sign a deal to represent Gatorade.

A large majority of athletic directors worry that collectives are improperly using endorsement contracts to recruit players from high schools or other colleges, according to a survey released Wednesday

by LEAD1, an association of athletic directors at the 130 schools in the Football Bowl Subdivision.

“This is a transformational period in college sports and the results of our survey illustrate that [athletic directors] are extremely concerned with a number of key issues,” LEAD1 President Tom McMillen said.

The NCAA, the governing body of college sports, has taken a mostly hands-off approach since allowing endorsement deals, and more than two dozen states have laws allowing endorsement deals.

Most of the state laws include the ban on pay-for-play.

But as cases like Wong's illustrate how quickly college sports is changing, there is new pressure to study the issue. On Thursday, the commissioners of the Southeastern Conference and Pac12, two of the wealthiest leagues in college sports, were scheduled to meet with lawmakers in Washington to lobby for some federal regulations, which could include possible bans on using endorsement contracts as recruiting inducements and pay-for-play deals.

Leagues, schools and some coaches worry the new free-for-all upends competitive balance, disrupts rosters and pushes more control over athletic programs to outside forces.

What caught many by surprise is how quickly deeppocketed collectives and wealthy individuals aligned with major colleges poured in to raise and dangle millions of dollars in front of athletes.

“Nobody anticipated these collectives forming a

year ago,“ LeRoy said. “It shows us how out of control the whole system is. It has become a way for schools to find a third-party payer for their athletic talent.”

Even financial backers can get caught off guard when an athlete decides the money isn’t big enough, or when a teammate perhaps becomes a financial rival.

Mit Winter, a sports law and business attorney in Kansas City, Missouri, said some deals are pushing the boundaries, and making it seem as if players are simply getting paid to play, as opposed to being compensated at market rates for endorsements.

“Arguably these deals are violating NCAA rules and sometimes even state laws,” Winter said. “That’s kind of the big question: Is the NCAA ever going to start investigating some of these deals?”

Some point to a future of collective bargaining between athletes and schools. That would mean schools treating athletes more like employees, which they have resisted.

Last September, the top lawyer for National Labor Relations Board said in a memo that college athletes should be treated as employees of their schools. That established a potential path for athletes to unionize or bargain over working conditions.

Collective bargaining would require some flexibility and creative thinking by schools and conferences. It could also let them bring their institutional power into negotiations with athletes, who may have competing interests, such as gender equity and different health and safety needs across multiple sports.

“It would be a nervous moment for teams and leagues. They don’t have experience with it and their TV contracts would be unsettled,” LeRoy said. “But at the end of the day, they would be able to get a stable kind of resolution to their labor problems.” AP

French 1st-division clubs lost $678M last season

P PARIS Saint-Germain’s Kylian Mbappe (left) and Neymar hit the pitch during their French League One match against Strasbourg at the Stade de la Meinau stadium in Strasbourg recently. AP

Horse racing’s new governing body in rush to starting gate L OUISVILLE, Kentucky—With interest among the general public at its highest with the 148th Kentucky Derby coming up this weekend, horse racing is once again under intense scrutiny.

The industry has been rocked by scandal in recent years, including the disqualification of last year’s Kentucky Derby winner, a horse doping conspiracy involving trainers and veterinarians, and the punishment of its highest-profile trainer.

The sport’s seeming inability to police itself drew the attention of the federal government in 2020. The result is the Horseracing Integrity and Safety Act set to go into effect July 1.

The act will be implemented in stages, with the racetrack safety program starting immediately. The antidoping and medication rules aren’t expected to begin until early 2023, leaving states in charge for now.

“We have to do it,” said Tom Rooney, new president and CEO of the National Thoroughbred Racing Association. “We have to have the same standards in every jurisdiction.”

Unlike the central offices that govern the National Football League (NFL), National Basketball Association (NBA), Major League Baseball (MLB) and National Hockey League, the 38 US racing states operate under patchwork rules that vary from track to track. Horses, owners, trainers and jockeys move frequently between states to compete.

Locales honor punishments meted out elsewhere, but inconsistencies can create confusion and make it possible to game the system.

Hall of Fame trainer Bob Baffert is serving a 90-day suspension imposed by Kentucky racing officials that will keep him out of the Derby on Saturday, a race he’s won six times. The punishment came after 2021 Derby winner Medina Spirit failed a post-race drug test. The colt was later disqualified.

East Coast trainer Jorge Navarro is serving five years in prison for his role in a horse doping conspiracy. He also was fined $25.8 million.

Trainer Jason Servis is set for trial next year as part of the same case. He has declared his innocence. Servis trained 2019 Kentucky Derby winner Maximum Security, who was disqualified for interference during the race.

A HORSE is led onto the track for a workout at Churchill Downs on Thursday. AP Navarro and Servis were among over two dozen people indicted after a lengthy FBI investigation.

Despite such hits to the sport’s reputation, there appears to be growing trepidation in the industry over the prospect of sweeping change brought by HISA. The program has already been challenged in the courts, with two lawsuits seeking to kill it.

In late March, a lawsuit filed by the National Horsemen’s Benevolent and Protective Association (NHBPA) and a group of its affiliates questioned HISA’s constitutionality. It was dismissed by a federal judge in Texas and is being appealed.

The second suit filed in Kentucky by the state of Oklahoma and eight other states is similar to the NHBPA’s suit. It has yet to be heard.

Whether the implementation of HISA is a reaction to placate vocal critics or representative of meaningful change is an ongoing debate within the industry.

“As trainers, we have mixed emotions because we’re going

to have people making decisions that aren’t very educated in our sport,” said D. Wayne Lukas, a Hall of Fame trainer. “It just seems hard to tell where they’re going to go.”

Rooney, a former Republican congressman from Florida, believes training fresh eyes on the sport is crucial.

“Having a large group of people who are not horse people is a positive as long as they’re not out to hurt the industry,” he said.

“They’ve agreed to sign on to this board to help horse racing succeed.”

Steve Asmussen, North America’s winningest trainer, comes from a family-run horse training operation in Laredo, Texas.

“I worry that all the decisions are being made by people that have other forms of income and would be eliminating people like my family, where lower-level racing was all of the income,” he said. “I would think that would be very negative for the sport going forward.”

Trainer Tim Yakteen is based in California, where some of the strictest rules involving medications, drug testing and veterinary

examinations were enacted after dozens of horses died at Santa Anita in 2019.

“I embrace what we have coming our way because I think it will create unity amongst our industry. It should benefit us because we have been very much fragmented,” said Yakteen, who has two horses in the Kentucky Derby.

“I’m hoping that this unity that we’re starting with will carry over into other aspects of our industry that can be capitalized on.”

HISA is in a headlong rush to the starting gate with the July deadline fast approaching.

Lisa Lazarus began her job as CEO of HISA’s board of directors in mid-February. She completed her first major task this week: hiring an independent enforcement agency to oversee the antidoping and medication rules.

After negotiations with the US Anti-Doping Agency fell through, HISA chose Drug Free Sport International, a Missouribased company that works with the NFL, NBA, MLB and NASCAR, among other leagues. The company will set up an integrity and welfare unit overseen by a five-member advisory council, headed by Jonathan Taylor, a London-based attorney with experience in antidoping in international sports.

Lazarus said she’s aiming for transparent investigations and speedier resolutions of disputes.

California, Kentucky and Minnesota are the first states that have agreed to work with HISA by paying their prorated share of costs.

“We’re close to reaching agreements with the vast majority of racing commissions,” Lazarus said. “We’re learning as we go, but we’ve made a lot of headway.”

A cleaner and fairer sport may boost horse racing’s popularity among a younger generation and help it cash in on the online sports betting gold rush.

“Maybe we can get our fanbase built up,”Yakteen said.

HISA’s greatest influence may be in leveling the playing field.

“We need to show the world we’re doing everything we can to protect the athlete, the jockeys and the integrity of the sport,” Rooney said. AP

ARIS—French first-division soccer clubs lost 645 million euros ($678 million) during the coronavirus-hit 2020-21 season, the league’s financial watchdog said Thursday.

The DNCG said 17 of the 20 teams in Ligue 1 lost money last season.

Match revenues took a huge hit as games were held without fans from October onward and with limited capacity set at 5,000 before that. Only Saint-Etienne, Rennes and Dijon—which was relegated— stayed in the green.

The total amount lost was 140 percent higher than the total of 269 million euros ($283 million) lost during the 2019-20 campaign, which was called off with 10 matches left as the pandemic hit.

Even though that season ended early, clubs still grossed 170 million euros ($179 million) from ticket sales, a total that dropped massively last season to barely 8 million euros ($8.4 million).

For example, Paris Saint-Germain’s ticket receipts fell from 38 million euros ($40 million) to 961,000 euros ($1 million).

Lyon fared marginally better, dropping from 35.5 million euros ($37.3 million) to 2 million euros ($2.1 million).

CHILE FILES LEGAL CHALLENGE

A WORLD Cup legal dispute flared Thursday with Chile challenging Ecuador’s place at the finals tournament over an alleged ineligible player.

The Chilean soccer federation asked FIFA to investigate its claim that Ecuador player Byron Castillo is actually Colombian and not entitled to have played in qualifying games.

The complaint comes more than one month after South American qualifying ended and Ecuador was drawn into a group with host nation Qatar, the Netherlands and Senegal.

“FIFA can confirm that it has received a formal complaint from the Chilean FA in relation to this matter,” soccer’s governing body said in a statement.

FIFA gave no timetable for a possible disciplinary case ahead of the World Cup kicking off November 21.

Ecuador placed fourth in the 10-nation South American qualifying group to advance directly to Qatar. Fifth-place Peru has a playoff game next month against Australia or the United Arab Emirates.

Chile placed seventh, seven points behind Ecuador, but argues it could advance if games involving Castillo were forfeited.

The FIFA rules in cases of ineligible players require results to be overturned as a 3-0 loss.

Ecuador’s soccer federation issued a statement rejecting Chile‘s claims and insisting that Castillo is legally an Ecuadorian citizen.

Chile has now filed complaints against an opponent’s player in back-to-back World Cup qualifying programs.

In South American qualifying for the 2018 World Cup, Bolivia forfeited two games in which it fielded an ineligible player as a late substitute. FIFA had received complaints from Chile and Peru about Bolivia defender Nelson Cabrera, who was born in Paraguay and had previously played for Paraguay’s national team.

Bolivia lost an appeal at the Court of Arbitration for Sport which said FIFA was right to investigate even when protests were filed weeks after the games were played. That case ultimately harmed Chile.

Three extra points awarded to Peru lifted it above Chile to enter an intercontinental playoff that it won.

FIFA wrote stricter rules for the 2022 World Cup requiring all players in qualifying games to produce a “valid permanent international passport” for inspection by match officials. AP

BusinessMirror

May 8, 2022

Underpaid, overworked, drowning in debt

You wonder why young people are voting again?

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By Rome Oamil

NDIE pop rockers Orange & Lemons launched their fourth and latest album La Bulaqueña at Teatrino Theatre in Greenhills last 30th of April. The album was inspired by the painting of National Artist Juan Luna of the same title. The album cover on the other hand, is an impression of Luna’s painting by Ige Trinidad.

La Bulaqueña features all-new 10 tracks sung entirely in Filipino and is the first new album in 15 years. It is also the first album with keyboardist Jared Nerona who joined vocalist and guitarist Clem Castro, bassist JM del Mundo, and drummer, Ace del Mundo in 2019.

The band left their audience with hearts moved from the message portrayed from the album: the importance of culture, love and family.

During the show, Castro expressed just how much this album meant to him personally. “Personally, I consider this a tribute to my late father who died last year of Covid-19,” he said. “He was a Rondalla instructor for many many years and I owe a lot of my learnings of traditional Filipino music to him.”

He explained furthermore how the bands’ goal for this album was to stick totheirsound,without being influenced fromthe musicwe normally heartoday.

“We wanted to pay tribute to the

language and our culture. It’s been 14 years since we last released an album so tanders na kame. We didn’t want to repeat ourselves sa past releases and definitely not ride the with the current music trend. We also wanted to veer away from our Anglophonic influences. Although may hint pa din, mas emphasized yung liriko.”

They began the show in a very unique way. Each band member came out wearing traditional Barong Tagalog attire and recited a Balagtasan, or short poems that they wrote themselves.

“Being pure Tagalog, we are proud of our language,” Castro explained. “Sa Bulacan nag-start yung Balagtasan at ilang mga poetic and literary writers in our rich history also hail from the same province.

And so, this served as the kick starter to the concert.

The entire vibe of the show was cozy and intimate. They played songs from their previous album, Moonlane Gardens, that the audience

seemed familiar with. And the songs from La Bulaqueña that they played live for the first time had the crowds bopping their heads and tapping their feet to the beat.

The concert was graced with other Philippine musical gems as well.

Award-winning Filipino Soprano Lara Maigue graced us with her voice, first singing the Pambansang Awit, and then later joining the band for their song “Awit ni Maria Clara.” Sandra Lim-Viray, well known as the Queen of Philippine Jazz, also honored the evening with her presence. Her raw talent spiced up the stage during her performance on the intermission.

As the night went on, members of the band took the time to express their appreciation for their loved ones.

Before the start of their second set, Castro proudly introduced the strings band by his right, who turned out to be his family members. And before starting their third song “Hele Para Kay Stella”, drummer Ace del Mundo shared how he wrote this song for his daughter Stella, from which he earned a series of coos and applause from the audience.

The night was filled with poetry and music. Stories of love and family were shared, and laughter from the band and audience echoed through the walls of Teatrino. The event could well be described as the epitome of Filipino Culture.

And even as Orange & Lemons closed their show with their final bow, the audience were still glued to their seats, waiting and asking for more.

IC

soundstrip.businessmirror@gmail.com | MAY 8, 2022

BUSINESS

THE BOY IN THE BAND Grayson Villanueva on being part of Disney-Pixar’s ‘Turning Red’

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By Stephanie Joy Ching

ET in early 2000s Toronto, Disney-Pixar’s latest film “Turning Red” pays homage to the decade’s biggest musical acts. As the story centers around a 13 -yearold girl’s coming of age story, director Domme Shi feels that “it’s pretty much mandatory to include a boy band.”

This is where Filipino-American singer, music producer, performer and vocal arranger Grayson Villanueva comes in. With three songs written by brother-sister duo FINNEAS and Billie Eilish, Grayson, along with Jordan Fisher, Josh Levi, Topher Ngo and Finneas himself providing vocals, the five of them lend their voices to 4*Town, the in-universe band the protagonist is obsessed with. Inspired by the styles of NSYNC and The Backstreet Boys, the team created three songs; “Nobody Like U,” “U Know What’s Up,” “1 True Love,” all of which mix the style of the early 2000s with modern sensibilities.

“I think they just nailed that era,” said Grayson, who voiced the youngest member of 4*Town, Taeyong, “but they also included a lot of modern production which makes it so much fun to listen to.”

For Grayson, this role was a surprise yet “fit like a glove”, as he initially had no idea that he was auditioning for Pixar.

“When I was auditioning for the role, I didn’t know what it was for,” he recalled, “I just knew it was an animated film, and I didn’t hear back until three months when the vocal contractor for the film texted me and said; ‘hey, Disney is gonna call you this week.’”

Upon landing the role, Grayson found out that all the three songs

required perfect harmonies and the magic “boy band chemistry”. Having had a background in acapella and beatboxing, Grayson was able to “trial and error” the harmonies with the other members during the workshop.

“It was super cool to be able to do that especially after quarantine,” he said, “So what we did was we all sang in the same room, but in different vocal booths. But the vocal booths had windows so we could see each other and interact with one another. It was a lot of trial and error, but it was such a thrill to be able to play outside the realms of the sheet music and make that come to life. It was a lot of making sure our voices blended together and that we had that boy band chemistry,” However, this role was not just a way for Grayson to flex on his vocal prowess, as it also marks an important step in Grayson’s personal advocacy of Asian representation in mainstream media.

“It’s such an honor to be part of this film, it’s a story about Asian girl coming of age but the center point is not being Asian, it’s about growing up. Everyone can relate to that, she just happens to be Asian. I want to see more stories where they don’t really make it a point that ‘hey this is an Asian story’, but more ‘hey, here’s a story that everyone can relate to that jsut happens to be Asian’ and I love that,” he concludes.

GRAYSON Villanueva (Photo from his official website)

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Underpaid, overworked, drowning in debt

You wonder why young people are voting again? this did not change. Young people were essentially ignored.

By Paul Whiteley University of Essex;

Harold D Clarke

Are you even listening?

University of Texas at Dallas;

Matthew Goodwin University of Kent

Editor’s Note: This story came out in The Conversation in October 2017, months after the United Kingdom general election.

Nonetheless, it remains relevant given the recent trends in several countries, including the Philippines, where tomorrow’s elections have received renewed vigor among young voters.

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he 2017 UK general election was highly unusual as far as the youth vote was concerned.

The Labour party won 65 percent—the lion’s share—of the youth vote. The nearest comparisons are with 1964 and 1997.

In both those years, Labour took 53 percent of the youth vote. In the 2015 election, just two years earlier, the party had won just 38 percent of the youth vote.

How the under-30s vote The contrast between the youth vote in the 2010 and 2017 shows how radically youth voting patterns have changed. During this period, their turnout rose by 19 percent.

This change in youth participation, combined with a massive swing to Labour, has unsurprisingly led some to talk of a “youthquake.”

What could have brought this about?

Political and cultural drivers are clearly at work. That includes youth support for remaining in the EU and their preference for Jeremy Corbyn over Theresa May. Only a quarter of 18-to-25s voted to leave in the

Much like in the 2017 UK general election, young voters serve as a major force in the 2022 Philippine elections, slated tomorrow, May 9. According to the Commission on Elections, more than half of the 65.7 million voters in the country are between the ages 18 and 41.

EU referendum compared with two-thirds of those over 65.

But economic drivers also played a crucial role. Young people, put simply, have lost out both in the economy and government policy-making. Since 2010 the British government has been preoccupied with shoring up its political support among middle aged and retired voters. It has largely ignored the concerns of the young, very often dismissing them because, in the past, most young people did not vote. That all changed in 2017.

Paying for education One obvious driver of youth voting is the rapid increase in student debt imposed by a government which sought to privatize higher education during the austerity years. Tuition fees were originally introduced in 1998 and had reached £3,000 per year by 2006-2007. At the time, it was widely accepted that the considerable graduate premium which existed in lifetime earnings justified a contribution to the costs of higher education by the beneficiaries.

But things radically changed in 2010 when the coalition government introduced a fees cap of £9,000. Ironically, this increased privatization of the costs of higher education was accompanied by ever-increasing regulation, so that the less the state supports higher education the more it wants to control it.

This trend culminated in a 2016 proposal to scrap maintenance grants and raise fees to £9,250 while at the same time charging interest rates of 6.1 percent on student loans at a time when the Bank of England base rate was 0.25 percent.

Such a reckless disregard for the interests of more than 40 percent of the under25s is quite hard to understand, particularly in light of the fate of the Liberal Democrats following their U-turn on tuition fees after they joined the coalition in 2010.

The bias against youth was not confined to university students. In April 2016, the minimum wage was raised to £7.50 an hour, but this change only applied to employed workers over the age of 25. The minimum wage for apprentices under the age of 19 was a meagre £3.50 and hour and

It was, therefore, no surprise that when the pollsters YouGov recently asked citizens to rank their priorities for the country, 46 percent of 18-24 year olds selected increasing the minimum wage to approximately £9 per hour. That compared to a national figure of 28 percent (and 19 percent among pensioners).

In our panel survey of the electorate conducted immediately before the 2017 general election, we asked respondents if they agreed or disagreed with the following statement: “The government treats people like yourself fairly.” We found that 18 percent of the under-25s agreed with this statement compared with 28 percent of the over-65s. In contrast, 49 percent of the under-25s disagreed with it compared with 32 percent of the over-65s. Youth have not only been left behind but many of them are aware of this fact and have a sense of grievance arising from it. The stark difference in the responses of youth and pensioners to this statement is related to the differences in the government’s treatment of them.

The so called “triple lock” on pensions was introduced by the coalition government in 2010. It was a guarantee to increase the state pension every year by the rate of inflation, average earnings or by a minimum of 2.5 percent whichever was the highest. By 2016 it produced a situation in which retired people had average incomes £2,500 higher than in 2007/2008, while those who were not retired earned an average of £300 less over this period. The latter reflects the fact that real wages have been flat-lining for more than a decade.

Given all this it is no surprise that the 2017 election was a case of youth striking back. The Conversation

‘Gen Green’: Young Filipinos aspire to work in green economy

By Rizal Raoul S. Reyes

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he Filipino youth is thinking green in terms of employment.

In its new research titled “Youthquake Meets Green Economy,” global professional services company Accenture noted that within the next 10 years, 89 percent of Filipinos aged between 15 and 39 years old aspire to be working in the green economy, defined by the UN Environment Programme as low carbon, resource-efficient and socially inclusive.

More than 73 percent of respondents said they are open to reskilling or upskilling if allowed to transition or start a career in

the green economy.

The study noted more than half of the Filipino respondents aspire to work in a growth sector (57 percent) that provides good monetary compensation and want to put green qualifications to good use (52 percent). Meanwhile, a big number of Filipino youth (over 90 percent) expressed interest in working for a company they know is making a positive environmental impact.

“As a responsible business, we are deeply committed to delivering on our Sustainability Value Promise and embed sustainability in everything we do,” Lito Tayag, Country Managing Director, Accenture in the Philippines, explained in the

4 BusinessMirror

report. “We have made sustainability one of our greatest responsibilities as a company—not just because it is the right thing to do, but because Accenture believes it will create one of the most powerful forces for change in our generation.”

As companies take the path towards sustainability and generate new roles and opportunities for talent, Tayag said Accenture Philippines is committed to embedding sustainability in its operations.

Executions include enabling employees to grow and thrive through various initiatives that accelerate equality in the workplace, provide employees with the opportunity to give back to society, and emMay 8, 2022

phasize technology sustainability, among other measures.

“Just as the digital revolution transformed how we live and work, Accenture believes that, so too, will sustainability,” Eman Antonio, Accenture Technology Sustainability Lead in the Philippines Managing Director, pointed out in the report. “We are committed to implementing initiatives that will help create a positive impact on our clients’ businesses as well as in the development of our people and the communities we serve. Through our Accenture Technology Sustainability portfolio, we are helping upskill future talent as they aspire for roles in the green economy.”