JUMUAD Emagz by richard ATILLO

GMA: RP FIRST WORLD COUNTRY BY 2020

BizNews Asia Weekly Business Newsmagazine

Bejewelled Choco de fruta

CHOCO DE FRUTA INGREDIENTS: CAKE 2 1/2 cups all purpose flour 2 tsp baking powder 1 tsp baking soda 1 tsp salt 2 1/2 cups sugar 1cup MAGNOLIA GOLS BUTTER, unsalted 4 pcs eggs 1 1/2 cup cold water 1 cup cocoa powder 1 tsp vanilla BUTTER ICING: 1 1/2 bars MAGNOLIA GOLD BUTTER, unsalted 3/4 cup MAGNOLIA FRESH MILK 1/2 cup sugar PROCEDURES: Pre-heat oven to 325F. Grease and line 3-9” round pan. Set aside. Sift together flour, baking soda, baking powder and salt. Set aside. Combine cocoa powder, cold water and vanilla. Set aside. Cream Magnolia Gold Butter and sugar until light and fluffy. Add eggs one at a time, beating well. Add dry ingredients alternately with cocoa mixture. Mix until smooth. Pour mixture into prepared pans. Bake for 30 minutes or until done. BUTTER ICING: Cream Magnolia Gold Butter along with sugar. Beat until light and fluppy. Add milk slowly. Mix until Magnolia Gold Butter icing is smooth, shimmery and spreadable. Set aside. ASSEMBLY: Frost first layer of chocolate cake with Magnolia Gold Butter icing evenly. Place another layer of cake and frost again. Do the same for the last layer and frost the sides as well. Tap with assorted slices of fresh fruits (apple, strawberry, kiwi, mangoes, etc.). Brush fresh fruits with glaze and watch your cake dazzle * for the glaze: equal parts of Magnolia Best Fruits Strawberry Jam and hot water and 2 tsp Magnolia Gold Butter.

Vol. 5 No. 15

Prepared during the week of April 23 - 30, 2007

Nation

Arroyo wants RP First World country by 2020

“ We must lift up our poor” By Pres. Gloria Macapagal Arroyo

At Boao, GMA asks Asia’s power elite to help the poor

REGION

Asians richer Emerging Asia grew 8%, the fastest in ten years

14 16

cover story

Drugs war

Novartis sues India on patents

Q/A: “Drugs must be Affordable”

Obet wants to revitalize Bulacan

Highlights of the book By Dr. Marcia Angell

How US drug giants grew big

World Economy

IMF sees robust economic growth in 2007 and 2008 By the IMF

Business

SM Group to go into infra, energy and medical tourism

SM Prime primed for further growth, allots P35B capex for next five years

Automative

Vehicle sales up significantly

Banking

Wolfowitz must go

Book

Remembring the War By Isagani Cruz

health watch Heta Stroke By Dr. Gary Sy

Roberto M. Pagdanganan has done what nobody else before him did-bring down the prices of the most commonly used medicines, launch a war on the drug cartel, promote generic drugs, and open more Botika outlets for cheap medicines In the last ten years, China has emerged as an economic power. China has $1.2 trillion reserves, half of East Asia’s value of output, and been growing by more than 10% for four straight years.

The Good read

The book that shook the drug industry

ISSN 1655-72-63

“We must use every tool available-education, technology microfinance-to lift up poor, if we are to achieve equitable, sustainable growth.”

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NATION

Arroyo wants RP First World country by 2020 Recently, BizNewsAsia Publisher and Editor-in-Chief Tony Lopez ahd an exclusive interview with President Gloria MacapagalArroyo at the presidential palace. It was one of the very few she granted a journalist this year. The following are edited excerpts form the interview BNA: Where and what will the Philippines be in the year 2010? PGMA: My vision goes beyond the end of my term in 2010. We will take our place among first world countries in 2020. I hope that by the end of my term in 2010, we would have made substantial progress towards that. By 2010, we should have hopefully $2,000 per capita income. OUr medium Term Plan says that we will have 7% economic growth by then. Seven years of 7% economic growth will make us graduate form poverty. We would like bring it down from 28% in 2000 to 18% in 2010.

development. Now, six years later, from a virtually non-existent industry, we have half a million already, not just in call centers nut in BPO industry. My single-minded focus is on delivering genuine reform, paying for the vital investments taht are consistent with a modernizing nation. They’re not easy, but they’re essential. When I had to work on the value added tax, I was very unpopular. I could have just taken the easy way out. But then, the economy would perish. So it’s reform or perish. I would rather choose reform. Somebody else could pursue the populist policies that would eventually fail.

An obvious strenth of your administration has been your success on the economic front. To what do you attribute your success? Focus. I’m very, very focused, completely focused and disciplined on the economic goals. I don’t get caught up in every political barb that comes my way. I have goals and then I really track compliance with these goals. And it has not been easy to comply with the goals. For instances, we had goals on reducing our fiscal deficit, reaching a balanced budget by 2010 which the economic managers want to happen in 2008. To do that, we had to raise taxes. That’s stepping on a lot of toes. The legislation is not pleasing for verybody. The anti-tax cheat cheat drive is not pleasing to everybody. And then getting value for money for the service, you have to drive the civil servants. And that’s why my populairty suffered. but it’s a price worth paying to see the Philippines turn around. In 2001, for instances, I said that ICT would be growth sector. But we had to improve the cost of resource

The Philippines has become one of the most competitive areas for call centers They just talk only about India and the Philippines. evrybody else has a very minor share. we are going to earn form business process outsourcing. This year, we will have half a million jobs.

BizNews Asia/ Display until May 14, 2007

How come were so competitive now? It’s the cost of connectivity. And our very good, English-speaking human resources. The same caring that makes our nurses famous, aside from their competencies. we have a very short solution time; 1.4 is our average solution time, shorter that India’s and other countries. Can you say that the economy will grow 8% in 2008, 9% in 2009, and 10% in 2010? I would rather under-promise and overdeliver. My Medium Term Plan does say 7% by 2010. Joey says we can do higher that . In a frictionless society that could be our potential. To achieve that potential, we have massive backlog in investment and infrastructure.

What that growth raete can be, let’s see. Let’s see how we can work on removing the frcitions in our economy to be able to achieve our target. When you say friction, politics? Politics, transaction costs, bureaucratic dealings, things like that. Like for instance, if a project is to be financed by foreign debt, it takes so long to bid it out, and if awarded, it goes to the creditor, for their approval and you don’t know how long it will take. And if your project is also on foreign debt, before you could even start bidding out the project, you must bid out the consultant. And it takes seven months to bidi out the consultant. so you know, things like that. Look at the privatization, the number of failed bids. So those are the frictions, aside from the political noise, which is a very abvious friction. But also have economic friction. Is it safe to assume your Team Unity ticket will win the majority of senatorial seats? I’m completely focused on governance, on guiding the economy, on assuring peace and order. I’m not pre-occupied with the elections, although I do hope that the elections will be about the future rather than the past, about policies and issues rather than personalities and history. I have great faith in Filipino voters. The greatest test of a candidate’s character is his or her position on issues. Are they new ideas or old prejudices? Any pending reform legislation on the economy? We will still want to continue tax reform. Like incentives rationalization, amending the EPIRA , and number of important . Why do you have to amend EPIRA? That’s really parrt of this friction that I’m talking about. For without it, you

“I would rather under promise and overdeliver. My medium Term Plan does say 7% by 2010. (President Chief of Staff) says we can do higher than that, provided we do some reforms.” cannot set up the right infrastructure to bring down power rates. These are frictions coming from difficult provisions, like the preconditions in the EPIRA such as the 70% minimum for privatization of state generating plants. Also, imagine to bring down power rates, you have to go to the ERC (Energy Regulatory Commission (for approval). Who’s gonna opppose reduction in power rates, anyway? That’s what’s required in the EPIRA. The Supreme Court has ruled that you cannot do that without hearings. Thats what the law says. So those are examples of the frictions you have to overcome when you do economic reform. We have to lower electricity rates. By next year you will be able to privatize up to 80% of Napocor’s generating capacity, that means about 4,000 megawatts. But you have done only 400 megawatts. What makes you optimize that you can do ten times morw? Hopefully, yes (we can), as long as we’re able to reduce this friction in our privatization. There are many interested

Happy Moments:Philippine President Gloria Arroyo

shares a light moment with First Gentleman Mike Arroyo and grandaughter Mikaela at St. Luke’s Hospital were he is recovering from surgery. The president has just come from a successful visit to China where she secured $1 billion in investment.

BizNews Asia/ Display until May 14, 2007

NATION

THE PRESIDENT AND THE FIRE VICTIMS :Philippine President Gloria Arroyo visits the residents of Carlos P. Garcia Avenue at the UP Campus in Quezon who were rendered homeless after theri place was gutted by the fire. The President, who just came from a successful whirwind trip to China, promised to extend assistance to the fire victims.

investors. Those that we thought would go for a song, we got a very good pricePantabangan, Magat, Calaca and Masinloc which was critized so we had to cancel it. The plants were priced very well in the market. Pantabangan and Magat were sold for $500 million. Mirant was sold for $3.5 billion. The new owners are going to have a $500-million expansion for 400 megawatts. So the total investements is $4 billion. That is the biggest Japanese investment. You still have one of the highest electricity rates in Asia. How are you doing to bring it down? I agree with you. I’m always concerned with the prices consumers and the industrial users pay. That’s why I’m very impatient to move the privalization of Napocor. For one thing, it will free government from subsidies which we could spend no more investments. And also, it should provide for more competition and competition for more competition will tend to bring down the rates. In the meantime, we’re working together on other things to address

BizNews Asia/ Display until May 14, 2007

the cost of electricity. The WESM anti-investor. There are many complaints. was set up last to bring about great- Nono Ibazeta is not required to think er competition and open access. within the box. We hope that there will be other bidders for TransCo. We hope that when the bidding documents are nicer, There’s no competition yet in other will come. We have to adhere to (electricity) retail. the rules of international business. Pow Yes, That right. Exaclty. Last year, Meralco offered to allow its customer is what everybody sees as the need. There’s a market need for infrastructure ers choice even before the 70%. to be more competitive. And the most We’re taking them up on it now, important infrastructure we need to be Customer choice means that you don’t more competitive is power infrastructure. have to connect to Meralco. You can We don’t really want to have new connect to any utility. You pay Meralco taxes. Because amy of our increased only for the transmission. You pay expenditures are going to be capital. Meralco for the tolling fee. But then you can already choose which of the utilities How come depite of these achievewill give you the lower rate. First you start with one megawatt of consumption ments, you still get very low ratings in surveys? but we will lower it to 750 kilowatts. The credit ratings were fine. The other thing is that Philippine Unfortunately, for the political analysts, Economic Zone Authority can now also contact with other gencos at lower prices they work on old data and look at the within its own economic zones. Also, newspapers. we have to accelerate privatization. We And if you’re gonna look at who have asked to have a more business. are the ones in the Transparency Inter PSALM has to review the bidding national Philippines, they’re amde up of documents for privatization because many opposition people. The opposition has of the bidding documents provisions are no agenda but to remove me.

NATION

“We must lift up our poor” By President Gloria Macapagal Arroyo (Speech before the Boao Asia Forum, April 21, 2007, Hainan, China) hank you very much Secretary General Long. President Ramos, Chairman wu; Prime Minister Aziz; Mr. Gates; Mr. Chey distinguished leaders of the business community of the whole world; and officials of the various governments who are participating in this conference; ladies and gentlement. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have winwin? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the

BizNews Asia/ Display until May 14, 2007

Philippines who have been able to lift their families out of poverty. Thank you for your contribution to the fight against poverty. And the global success of Microsoft under your visionary leadership, Mr. Gates, has reminded as of the power of innovation to change the world for the better. We agree with you that technology is a powerful tool to liberate the potential of individuals and nations to grow and prosper. And learning from your wisdom and your acheivement Mr. Gates, I’m happ to say that in the Philippines, the I.T. sector is the fastest growing sector in our economy today. The second point raised in this forum is: How crucial is it for the region to have an approach with sustainable development as a priority and what is the role of innovation in this context? Our answer is: It is essential for the re-

“We must use every tool available-education, technology, microfinance to lift up our poor, if we are to acheive equitable, sustainablle growth.”

gion to have sustainable development as a prioriyt. The role of innovation in this context is vital along with political will. The Philippines is a case i point: We need to continue to develop a larger manufacturing base along with our booming service economy to create good jobs. At the same time, to have a winwin solution, we must also become more self-sufficient and cost effective in our energy consumption. There is no reason we cannot do both and have a win-win through innovation, proper policy planning and united political and civic leadership. For instance, we have launched a bio-fuels program. it will rely on investment and innovation to create jobs, skills and self-reliance while keeping our environment clean. In this case, our model is Brazil which has pioneered

in biofuels. We must continue to learn around the world and in our region. We have the oppurtunity in Asia to learn from other nations and create our own sustained path to development. We must think outside the box, harness technology and use innovation to break the cycle of energy dependence and environmental degradation. Third point: As growth in Asia transitions from being eport-driven to domestically-driven, what impact will this shift bring to Asia’s leading lights-China, India and Japan? The impact will likely be profound on all economies but particularly India and China, less so Japan because it is already an advanced industrial economy. We in ASEAN are delgihted with the growth of China and India to add to the power of Japan in the region. In the Philippines, we benefit from this growth. It can only help lift up our nation as it lifts up the others, too. This is a good, positive, healthy development but we must work together to add to, not subtract from, our qualtiy of life. Chairman Wu, China is a strong partner of ASEAN an d a reliable friend of the Philippines, so let me spend a minute focusing on the implications of your surge. China’s remarkable rise reflects the promise and challenge of the world in which we live. We see your dramatic growth lifting millions out of poverty and springing your nation squarely onto the world stage as a new global power. And you also understand the need to balance growth with concerns for the environment and quality of life. China has unleashed the human potential of its vast citizenry by the effective use of technology, science and engineering. It will be these same elements taht will help China bring balance to a new model of sustainable development. We are all eager for China to succeed. And Chairman Wu, we will watch closely as you manage the desires for growth, equity and environmental solidarity. BizNews Asia/ Display until May 14, 2007

NATION “We hope for greater economic integration between ASEAN and the robust’ economies of China, Japan and India.”-GMA of the newpapers in China that one of the reasons for the increasing relationship of trust between President Minister Abe of Japan has been your meeting in the Philippine island of Cebu last January. Fourth point: What are the implications of this shift to each of these countries, to the business that operate within them and their Asian neighbors vis-a-vis their political, economic and environmental relationship with these giants? While it would be inappropriate for me to comment on how these changes would impact the internal fabric of China and India, I can begin to address how their growth and dynamism impact the rest of us. As chair of ASEAN, we hope for greater economic integration between ASEAN and the robust economies of China, Japan and India. Last January in Cebu, we led ASEAN to make a declaration on the ASEAN charter, which is a milestone in our regions history. Heat stroke is the most severe form of heat illness and is a lifethreatening emergency. It is the result of long, extreme exposure to the sun, in which a person does not sweat enough to lower body temperature. The elderly, infants, persons who work outdoors and those on certain types of medications are most susceptible to heat stroke. It is a condition that develops rapidly and requires immediate medical treatment. Our bodies produce a tremendous amount of internal heat and we normally cool ourselves by sweating and radiating heat through the skin. However, in certain circumstances, such as extreme heat, high humidity or vigorous activity in the hot sun, this cooling system may begin to fail, allowing heat to build up to dangerous levels. If a person becomes dehydrated and can not sweat enough to cool his or her body, the internal temperature may rise to dangerously high levels, causing heat stroke.

BizNews Asia/ Display until May 14, 2007

President Arroyo arrives in Haikou Meilan International Airport early morning at April 21, 2007 for the Boao Forum. She is welcomed.

The President is welcomed by Secretary General Long Yongtu (c) and Boao Forum Chairman Fidel Ramos upon her arrival at the Main Hall.

of the newpapers in China that one of the reasons for the increasing relationship of trust between President Minister Abe of Japan has been your meeting in the Philippine island of Cebu last January. Fourth point: What are the implications of this shift to each of these countries, to the business that operate within them and their Asian neighbors vis-a-vis.

The following are the most common symptoms of heat stroke, although each individual may experience symptoms differently. However, in certain circumstances, such as extreme heat, high humidity or vigorous activity in the hot sun, this cooling system may begin to fail, allowing heat to build . Thank you.

NATION

At Boao, GMA asks Asia’s power elite to help the poor E

xpressing her bullishness inAsia’s future, President Gloria Macapagal Arroyo challenged movers and shakers of the region Saturday (April 21), “to use evry tool available to lift up the poor”, in order to achieve equitable, sustainable growth. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to FirstWorld status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. There are some immediate first aid measures you can take while waiting for help to arrive. Remove clothing and gently apply cool water to the skin followed by fanning to stimulate sweating During outdoor activities, take frequent drink breaks and mist yourself with a spray bottle to avoid becoming overheated. Increase time spent outdoors. Try to spend as much time indoors as possible on very hot and humid days.ou can take while waiting for help to arrive. Remove clothing and gently apply cool water to the skin followed by fanning to stimulate sweating and challenge “of the world.

BizNews Asia/ Display until May 14, 2007

The five agreement signed in Boao when the President went there April 21 were for a cyber-education project, a supply contract for a national broadban network, the second phase of the Angat Dam wtaer utilization and aqueduct improvement project, and on mango pulp and tapioca exports. The cyber education project, worth $465.5 million, was signed by Trade and Industry Secretary Peter Favila in behalf of the Department of Education and Dr. Kang Ke Jung of Tsinghua Tongfang Nuctech Co. as part of the RP-China ICT Cooperation. Transportation and Communications Secretary Leandro Mendoza and ZTE Corp. Vice President Yu Yong inked the $329.5-million supply contract for national broadband network which will improve government communications capabilities.

“We see your dramatic growth lifting millions out of poverty and springing your nation squarely onto the world stage as a new global power. And you also need to balance growth with concerns for the environment and the quality of life,” she explained. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. There are some immediate first aid measures you can take while waiting for help to arrive. Remove clothing and gently apply cool water to the skin followed by fanning to stimulate sweating During outdoor activities, take frequent drink breaks and mist yourself with a spray bottle to avoid becoming overheated. Increase time spent outdoors.

xpressing her bullishness inAsia’s future, President Gloria Macapagal Arroyo challenged movers and shakers of the region Saturday (April 21), “to use evry tool available to lift up the poor”, in order to achieve equitable, sustainable growth. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. There are some immediate first aid measures you can take while waiting for help to arrive. Remove clothing and gently apply cool water to the skin followed by fanning to stimulate sweating During outdoor activities, take frequent drink breaks and mist yourself with a spray bottle to avoid becoming overheated. Increase time spent outdoors. Try BizNews Asia/ Display until May 14, 2007

REGION In the last ten years, China has emerged as an economic power. China has $1.2 trillion reserves, half East Asia’s value of output, and been growing by more than 10% for four straight years.

BizNews Asia/ Display until May 14, 2007

REGION

Asians richer

xpressing her bullishness inAsia’s future, President Gloria Macapagal Arroyo challenged movers and shakers of the region Saturday (April 21), “to use evry tool available to lift up the poor”, in order to achieve equitable, sustainable growth. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. There are some immediate first aid measures you can take while waiting for help to arrive. Remove clothing and gently apply cool water to the skin followed by fanning to stimulate sweating During outdoor activities, take frequent drink breaks and mist yourself with a spray bottle to avoid becoming overheated. Increase time spent outdoors. Try BizNews Asia/ Display until May 14, 2007

REGION

Emerging Asia grew 8%, the fastest in ten years The

BizNews Asia/ Display until May 14, 2007

“We see your dramatic growth lifting millions out of poverty and springing your nation squarely onto the world stage as a new global power. And you also need to balance growth with concerns for the environment and the quality of life,” she explained. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points.

BizNews Asia/ Display until May 14, 2007

COVER STORY

DRUGS WAR “We see your dramatic growth lifting millions out of poverty and springing your nation squarely onto the world stage as a new global power. And you also need to balance growth with concerns for the environment and the quality of life,” she explained. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat

xpressing her bullishness inAsia’s future, President Gloria Macapagal Arroyo challenged movers and shakers of the region Saturday (April 21), “to use evry tool available to lift up the poor”, in order to achieve equitable, sustainable growth. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. There are some immediate first aid measures you can take while waitBizNews Asia/ Display until May 14, 2007

COVER STORY

20 BizNews Asia/ Display until May 14, 2007

COVER STORY

“We see your dramatic growth lifting millions out of poverty and springing your nation squarely onto the world stage as a new global power. And you also need to balance growth with concerns for the environment and the quality of life,” she explained. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points.

BizNews Asia/ Display until May 14, 2007

COVER STORY

Roberto “Obet” M. Pagdanganan

“Drugs must be affordable

Novartis sues India on patents investors. Those that we thought would go for a song, we got a very good pricePantabangan, Magat, Calaca and Masinloc which was critized so we had to cancel it. The plants were priced very well in the market. Pantabangan and Magat were sold for $500 million. Mirant was sold for $3.5 billion. The new owners are going to have a $500-million expansion for 400 megawatts. So the total investements is $4 billion. That is the biggest Japanese investment. You still have one of the highest electricity rates in Asia. How are you doing to bring it down? I agree with you. I’m always concerned with the prices consumers and the industrial users pay. That’s why I’m very impatient to move the privalization of Napocor. For one thing, it will free government from subsidies which we could spend no more investments. And also, it should provide for more competition and competition for more competition will tend to bring down the rates. In the meantime, we’re working together on other things to address. Mirant was sold for $3.5 billion. The new owners are going to have a $500-million expansion for 400 megawatts. So the total investements is $4 billion.

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the cost of electricity. The WESM was set up last to bring about greater competition and open access.

There’s no competition yet in (electricity) retail. Yes, That right. Exaclty. Last year, Meralco offered to allow its customers choice even before the 70%. We’re taking them up on it now, Customer choice means that you don’t have to connect to Meralco. You can connect to any utility. You pay Meralco only for the transmission. You pay Meralco for the tolling fee. But then you can already choose which of the utilities will give you the lower rate. First you start with one megawatt of consumption but we will lower it to 750 kilowatts. The other thing is that Philippine Economic Zone Authority can now also contact with other gencos at lower prices within its own economic zones. Also, we have to accelerate privatization. We have asked to have a more business. PSALM has to review the bidding documents for privatization because many of the bidding documents provisions are Mirant was sold for $3.5 billion. The new owners are going to have a $500-million expansion for 400 megawatts. So the total investements is $4 billion.

anti-investor. There are many complaints. Nono Ibazeta is not required to think within the box. We hope that there will be other bidders for TransCo. We hope that when the bidding documents are nicer, other will come. We have to adhere to the rules of international business. Power is what everybody sees as the need. There’s a market need for infrastructure to be more competitive. And the most important infrastructure we need to be more competitive is power infrastructure. We don’t really want to have new taxes. Because amy of our increased expenditures are going to be capital.

Anti-investor. There are many complaints. Nono Ibazeta is not required to think within the box. We hope that there will be other bidders for TransCo. We hope that when the bidding documents are nicer, other will come. We have to adhere to the rules of international business. Power is what everybody sees as the need. There’s a market need for infrastructure to be more competitive. And the most important infrastructure we need to be more competitive is power infrastructure. We don’t really want to have new taxes. Because amy of our increased expenditures are going to be capital.

There are many complaints. Nono Ibazeta is not required to think within the box. We hope that there will be other bidders for TransCo. We hope that when the bidding documents are nicer, other will come. We have to adhere to the rules of international business. Power is what everybody sees as the need. There’s a market need for infrastructure to be more competitive. And the most important infrastructure we need to be more competitive is power infrastructure. We don’t really want to have new taxes. Because amy of our increased expenditures are going to be capital.

How come depite of these achievements, you still get very low ratings in surveys? The credit ratings were fine. Unfortunately, for the political analysts, they work on old data and look at the newspapers. And if you’re gonna look at who are the ones in the Transparency International Philippines, they’re amde up of opposition people. The opposition has no agenda but to remove me. Mirant was sold for $3.5 billion. The new owners are going to have a $500-million expansion for 400 megawatts. So the total investements is $4 billion.

COVER STORY

THE PHILIPPINES and India agreed to improve efforts and cooperation in the pharmaceutical industry to provide cheap medicines for the poor. President Arroyo and visiting India President Avul Pakir Jainulabdeen Abdul Kalam witnessed the singing of the agreement between the Philippine International Trading Corp.

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the cost of electricity. The WESM anti-investor. There are many complaints. was set up last to bring about great- Nono Ibazeta is not required to think er competition and open access. within the box. We hope that there will be other bidders for TransCo. We hope that There’s no competition yet in when the bidding documents are nicer, (electricity) retail. other will come. We have to adhere to Yes, That right. Exaclty. Last the rules of international business. Powyear, Meralco offered to allow its customer is what everybody sees as the need. ers choice even before the 70%. There’s a market need for infrastructure We’re taking them up on it now, to be more competitive. And the most Customer choice means that you don’t important infrastructure we need to be have to connect to Meralco. You can more competitive is power infrastructure. connect to any utility. You pay Meralco We don’t really want to have new only for the transmission. You pay taxes. Because amy of our increased Meralco for the tolling fee. But then you expenditures are going to be capital. can already choose which of the utilities will give you the lower rate. First you How come depite of these achievestart with one megawatt of consumption ments, you still get very low ratings in but we will lower it to 750 kilowatts. surveys? The other thing is that Philippine The credit ratings were fine. Economic Zone Authority can now also Unfortunately, for the political analysts, contact with other gencos at lower prices they work on old data and look at the within its own economic zones. Also, newspapers. we have to accelerate privatization. We And if you’re gonna look at who have asked to have a more business. are the ones in the Transparency Inter PSALM has to review the bidding national Philippines, they’re amde up of documents for privatization because many opposition people. The opposition has of the bidding documents provisions are no agenda but to remove me. BizNews Asia/ Display until May 14, 2007

COVER STORY

Obet wants to revitalize Bulacan

oberto of the things that inspired Obet Pagdanganan in his work is an October 2004, “The Truth About Drug Companies: How They Deceive Us and What to Do about it.” Unhappily, it is out of stock in local bookstores. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have winwin? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investigation to sustain the social

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being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive

THE GOOD READ

The book that shook the drug industry

ne of the things that inspired Obet Pagdanganan in his work is an October 2004, “The Truth About Drug Companies: How They Deceive Us and What to Do about it.” Unhappily, it is out of stock in local bookstores. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. There are some immediate first aid measures you can take while waiting for help to arrive. Remove clothing and gently apply cool water to the skin followed by fanning to stimulate sweating During outdoor activities, take frequent drink breaks and mist yourself with a spray bottle to avoid becoming overheated. Increase time spent outdoors.

28 BizNews Asia/ Display until May 14, 2007

and of the things that inspired Obet Pagdanganan in his work is an October 2004, “The Truth About Drug Companies: How They Deceive Us and What to Do about it.” Unhappily, it is out of stock in local bookstores. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. There are some immediate first aid measures you can take while waiting for help to arrive. Remove clothing and gently apply cool water to the skin followed by fanning to stimulate sweating During outdoor activities, take frequent drink breaks and mist yourself with a spray bottle to avoid becoming overheated. Increase time spent outdoors. There are some immediate.

Highlights of the book By Dr. MARCIA ANGELL

veryday of the things that inspired Obet Pagdanganan in his work is an October 2004, “The Truth About Drug Companies: How They Deceive Us and What to Do about it.” Unhappily, it is out of stock in local bookstores. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have winwin? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. There are some immediate first aid measures you can take while waiting for help to arrive. Remove clothing and gently apply cool water to the skin followed by fanning to stimulate sweating.

and of the things that inspired Obet Pagdanganan in his work is an October 2004, “The Truth About Drug Companies: How They Deceive Us and What to Do about it.” Unhappily, it is out of stock in local bookstores. First of all, I would like to congratulate my predecessor President Ramos for being reelected as chairman of the Boao Conference. And I would to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today’s plenary raises a number of compelling points. First point: To what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner? In other words to use the jargon of Boao, how do we have winwin? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other. As our economic engines drive us to First-World status, we must not do so on the backs of the poor nor at the expense of our environment. In the Philippines we are investing aggressively in the I.T backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro business to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participating of this forum. We have learned from Doctor Yunus the power of microfinance. And we have applied Doctor Yunus’ traiblazing experience to millions of entrepreneurs, mostly women in the It is important for the person to be treated immediately as heat stroke can cause permanent damage or death. BizNews Asia/ Display until May 14, 2007