The Philippine Economy - Compiled Threads [Archive] - Page 9

sandrin

September 24th, 2006, 01:24 AM

RP per capita income highest under Arroyo
http://newsinfo.inq7.net/topstories/topstories/view_article.php?article_id=22670
By Gil C. Cabacungan Jr.
Inquirer
Last updated 07:46pm (Mla time) 09/23/2006

SHE might be the least popular among Philippine heads of state, but Filipinos' fortunes have never been better than under the presidency of Gloria Macapagal-Arroyo -- in terms of per capita income at least.

The Philippines’ per capita income, the share of each citizen in the country's wealth as measured by gross domestic product, is estimated to hit over $1,400 this year from $1,200 in 2004 and $1,040 in 2000, according to government and private economists interviewed by the Inquirer.

But the issue of uneven distribution of wealth remains a thorny issue, according to one of the President's top Cabinet officials.

“We might have a high per capita income, but whether this is distributed equally is a big question,'' said Socio-Economic Planning Secretary Romulo Neri.

Albay Representative Joey Salceda, an Arroyo economic adviser, said 22 consecutive quarters of GDP expansion and slower population growth of below 2 percent have provided the lift in the country's per capita income.

Based on the government's economic growth forecast, Salceda said the Philippines would hit a per capita income of $1,463 by the end of this year based on a GDP of P6.7 trillion, population of 87.4 million, and average peso-dollar rate of 52.4.

At this pace, Salceda said the Philippines could hit a minimum of $1,800 per capita income by 2010.

"Our fighting target is a per capita of $2,800 which would keep us at par with Thailand (per capita of $2,490 in 2004). Matching Thailand is feasibly strategizable,'' Salceda said.

Thailand and the Philippines used to be economic equals until the former's economy zoomed while the latter’s faltered.

Neri said this was the best per capita income level of the Philippines in the post-war era, much higher than the industry boom years of the Marcos era and the bull run in the Ramos years.

Neri said the surge in per capita income over the last five years was made even more remarkable considering that the government started from a low base (close to $900 per capita in the Estrada administration) and the volatile political situation that has kept the President on the edge throughout her tenure. Neri said per capita income should increase faster if the peso-dollar stays at the current average of below 50 for the rest of the year.

But equally important in building per capita income is ensuring that the country's wealth is shared by all, according to Neri.

“This is the reason why the focus of our economic development in the coming years is unclogging the bottlenecks that prevent the economic gains from filtering down to the masses,” said Neri.

This includes higher capital spending to build more railways, airports, bridges, and agriculture facilities while directing more funds to boost social services meant to cut across the bureaucratic gridlock through the efficient distribution of subsidized food, medicine, and health insurance.

While the President has touted the strong peso, low interest rates, and improving fiscal condition as proof of her economic stewardship, her critics have dismissed them as headline statistics that do not reflect the widespread poverty in the country.

Rajah_Soliman

September 24th, 2006, 02:37 AM

3cr

September 24th, 2006, 05:24 AM

The recent Thai coup has affected foreign perception of the Philippines' economic and political outlook which in turn can affect foreign investment into the country. Hopefully Arroyo will be wise enough to learn from this incident para huwag naman sanang mangyari itong doom and gloom scenario sa ating bansa... :runaway:

RISKY BUSINESS: Crisis brewing in the Philippines
By Jephraim P Gundzik
Asia Times

Are foreign investors greatly underestimating the risks associated with the Philippines? The probability of terrorist strikes is growing, while the country's volatile political and social environments appear set to destabilize significantly. Terrorism and destabilization could further undermine the country's already weakening economy, leading to much slower-than-expected economic growth in 2006 and possibly even a recession in 2007.

Foreign and domestic investors alike have built significant positions in equities, domestic fixed-income securities and international bonds based on overly optimistic economic assumptions. These positions may be dumped in dramatic fashion as perceptions of investment risk become more realistic in the months ahead, leading to substantial and destabilizing capital outflows.

Philippine security and government officials regularly play down the threat of future terrorist strikes, but the picture could be far less rosy than these officials are willing to admit publicly. In mid-2006, the US State Department's coordinator for counter-terrorism, Henry Crumpton, noted this about the terrorism potential in the Philippines: "The threat is very serious if you look at recent events, the intention of enemy forces, their collaborating with affiliates all around the region, and their technical skills, especially in bomb-making, their tradecraft skills."

Crumpton was referring to the well-established nexus between international and domestic terrorist organizations in the Philippines. The home-grown Abu Sayyaf and the Rajah Solaiman Movement (RSM) are believed to be combining resources and expertise with the Indonesia-based terror group Jemaah Islamiya (JI), which is believed to have ties with al-Qaeda. The Abu Sayyaf and RSM probably have more 2,000 hardcore members combined. Meanwhile, security experts believe that at least 40 JI operatives are currently in the Philippines training jihadis in the finer points of bomb-making.

The presence of JI operatives in the Philippines was made apparent last month when the military launched a joint offensive with the US aimed at a terrorist training camp on Jolo Island. In addition to targeting the Abu Sayyaf's leadership, the joint Philippine-US military action was meant to capture two leading JI members, Dulmatin and Umar Patek. These JI leaders, who are believed to have played key roles in the 2002 Bali bombings in Indonesia, were apparently encamped with the Abu Sayyaf. No high-ranking Abu Sayyaf or JI leaders were captured or killed, however.

In late July, Philippine defense officials announced that US commando teams would be deployed during the second half of 2006 and the first half of 2007 to hold "anti-terror" drills with Philippine troops. These drills are to take place in the western and central parts of Mindanao, where Abu Sayyaf and JI militants are based, and are likely to mark the beginning of a broad and potentially violent US-backed offensive. It can be assumed that the government of President Gloria Macapagal-Arroyo would not be expanding the military offensives against the Abu Sayyaf and JI if these organizations were in decline.

The budding Abu Sayyaf-JI relationship also appears to have embraced the RSM. The RSM, which was established in 2002, originated among a small group of Balik Islam members in the Philippines. Balik Islam is a legal organization composed of Christian converts to Islam and has more than 200,000 members, many of whom are concentrated in the traditionally Catholic regions of Luzon and Manila. Balik Islam is said to have gained strength in recent years with the return of Filipino workers from the Middle East.

For instance, the RSM is believed to have participated in the bombing of SuperFerry 14 in February 2004 and in the February 2005 multiple bombings in Manila, General Santos City and Davao. Being composed of non-ethnic converts to Islam and located in predominantly Catholic regions of the Philippines, the RSM's members can more easily blend in with the country's urban population than their ethnically different counterparts. For this reason, the RSM could pose a significant and increasing security threat to large metropolitan areas, including Manila.

High political risk
On the surface, the Arroyo government appears strong and capable and has used its legislative majority to implement highly unpopular economic reforms. Arroyo has demonstrated a unique ability to deepen her support within the power structures of the Philippines despite allegations of vote-rigging and corruption.

The Arroyo government's inroads with the power elite, however, belie very weak popular support. Widespread anti-government protests, repeated efforts to impeach the president and numerous attempted coups indicate that anti-Arroyo sentiment runs very high among a large and diverse proportion of the electorate. Opinion polls conducted over the past 18 months have shown popular support for the president ranging between 25% and 35%.

Making the disparity between her legislative and popular support sharper have been other opinion polls that consistently show that since 2005, more than half of the electorate believes the president should be impeached. Arroyo's legislative alliances have been built by patronage, and with mid-term elections scheduled for next May, these alliances could become increasingly shaky as self-interested legislators weigh whether abandoning Arroyo would improve their own re-election prospects.

Faced with potential defeat in May, Arroyo is seeking to postpone or cancel the mid-term elections through an amendment to the 1987 constitution. The proposed charter changes were initially broached late last year by a 55-member Consultative Commission appointed by Arroyo. Among other suggestions, the commission controversially recommended that the 2007 mid-term elections for the House of Representatives and Senate be canceled and that current elected legislators combine to form an interim parliament charged with overseeing reforms.

Protests against that plan staged early this year played a role in triggering the state of emergency Arroyo controversially declared in February. That opposition forced the government at least temporarily to backtrack on the charter-change initiative and recommend that the 2007 mid-term elections go ahead as constitutionally mandated. The government is now exploring other legal avenues to change the constitution.

Even if next year's elections go ahead, growing political and social polarization could spur more violence and instability - a situation that could be exploited either by terrorist organizations or by the country's leftist insurgents. After the February coup plot, the Arroyo government undertook a crackdown on her leftist opponents in Congress.

In mid-June, the government launched a military offensive against the Communist Party of the Philippines and its armed wing, the New People's Army, marking a significant escalation in a decades-old conflict. The NPA is active in 69 of the Philippines' 79 provinces, suggesting that the government's military offensive could spark a sharp escalation in violence throughout the country.

Economic soft spots
If so, political and social instability could negatively impact economic growth throughout 2007. Strong growth in personal consumption expenditure, sustained almost exclusively by rising foreign worker remittances, is the country's main economic engine. Though expanding exports have supported economic growth in the first half of this year, exports are likely to weaken as US and global economic growth slows in the second half of 2006 and into 2007.

Remittance dependency has also increased the Philippines' vulnerability to external economic shocks. Economic weakness in countries hosting Filipino workers reduces external employment and remittances. In 2006, the growth of remittances from overseas Filipino workers is expected to weaken in accordance with slowing economic growth in the US, where most remittances originate. Already in the first half of 2006, the growth of foreign worker remittances slowed to 15% from 24% from the same period in 2005.

Meanwhile, domestic investment in the Philippines is chronically weak, having contracted in real terms by a cumulative 4% between 1999 and 2005. Contracting investment has contained employment growth and pushed real wages lower. Fiscal austerity undertaken by the Arroyo government, under the guidance of the International Monetary Fund, has reduced and will continue to reduce public-sector consumption and investment expenditure.

Despite overwhelming evidence of economic weakness, government officials, multilateral lenders and economic analysts still believe real growth will remain above 5% in 2006 and even accelerate in 2007. But if the US economy continues to slow in 2007, a notion supported by America's weakening housing market and spiking international oil prices, the Philippine economy could easily fall into recession.

Extremely optimistic economic-growth forecasts for the Philippines and distorted risk perceptions have encouraged substantial inflows of foreign portfolio investment to the country over the past 18 months. In 2005, net foreign portfolio investment jumped by US$2.8 billion. In the first quarter of 2006, net foreign portfolio investment increased by a further $2.2 billion. Of this $5 billion of inflows, only about one-half originated from real foreign investors. The other half, it appears, originated from exchange-rate arbitrage in international currency markets conducted by Philippines-based banks.

Banks have been borrowing abroad, mainly in Japanese yen but also in US dollars, and investing the proceeds in short-term domestic fixed-income securities. The surge of external borrowing by banks can be clearly discerned in the external-debt statistics of the Philippines. In 2005, for instance, the external debt of private banks increased to $6.4 billion from $3.7 billion in 2004. Foreign banks in the Philippines accounted for about $2 billion of the $2.7 billion increase in the banking sector's external debt over that period. With real domestic credit and investment contracting sharply in 2005, it is highly unlikely that any of the external funds borrowed by banks were used for anything other than arbitrage bets.

This arbitrage was a significant factor behind the sharp appreciation of the peso, especially against the yen, in 2005. In addition to banks, foreign investors also targeted short-term domestic fixed-income securities in 2005. In the first quarter of 2006, heavy foreign portfolio and domestic bank arbitrage inflows continued. These inflows probably reversed somewhat in May and June, when the peso weakened sharply. However, the renewed strength of the peso in July suggests some of these positions have been rebuilt.

In addition to producing peso appreciation and sharply negative real domestic interest rates, foreign portfolio investment inflows and domestic bank arbitrage plays have also propelled the equity market higher and tightened spreads on the Philippines' international bonds. When foreign and domestic investors meet economic - and potentially a jarring political - reality, a large-scale correction in asset values and the exchange rate will follow.

Jephraim P Gundzik is president of Condor Advisers, which provides investment risk analysis to individuals and institutions worldwide.

(Copyright 2006 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing .)

FrancisXavier

September 24th, 2006, 07:15 AM

US$1400 by year end? Oh wow.. That's a drastic improvement from last year's.
Anyway, I gave her 8/10. The best president since i was born. And hopefully PrimeMinister soon. Hmmm.. Seems that I am feeling again this TIGER Pinas.

adverg

September 24th, 2006, 08:35 AM

I really don't know which ideologist group you belong, leftist, rightist or communist. All I can say on my own perception, they are interested to the wealth that our countrys have. They will do all the means to destroy the democratic process in our country. And when they win, we are all the loosers because we will be hold in the neck by their suppressive government, we will be like Vietnam before and become refugee of other country since our lawful right to our land already been conquered by this evil minded ideologist. So to all us Filipinos do you want to happen this to us, do you want to sell our countries to communism.

It's matter of insecurity and defeat that their pride cannot accept that Philippines is no longer a sick man of Asia, because they dont want our country to take-off to economic growth because the whole world know what petentials our country can provide when we reach the level of stability and if that happen they have no longer a chance to conquer us again, who knows there is someone behind this destruction.

FrancisXavier

September 24th, 2006, 08:49 AM

^Correct..We're not anymore sickman of Asia.. We are already boom town of Asia..

adverg

September 24th, 2006, 09:38 AM

I think you misunderstood what I am saying, read it carefully......

JAMAICUS

September 24th, 2006, 10:51 AM

^^ Here's the entire article :

Filipinos’ per capita income to reach $1,463

By Gil C. Cabacungan Jr.
Inquirer
Last updated 01:57am (Mla time) 09/24/2006

Published on page A1 of the September 24, 2006 issue of the Philippine Daily Inquirer

SHE may be the least popular of the country’s presidents, but the fortunes of Filipinos probably had never been better than under President Macapagal-Arroyo.

According to government and private economists, Philippine per capita income—or the share of each citizen in the country’s wealth as measured by gross domestic product (GDP)—is estimated to reach more than $1,400 this year.

According to Socioeconomic Planning Secretary Romulo Neri, this was the best per capita income level that the country has attained in the postwar era, much higher than the industrial boom years of the Marcos dictatorship and the bull run under the Ramos presidency.

Albay Rep. Joey Salceda cited a Citibank report last month which placed Philippine per capita income at $1,300.

Salceda said the US-based bank had highlighted the vast improvement in the country’s per capita income, the best since the 1970s, it said.

Salceda, an economic adviser to the President, said 22 consecutive quarters of GDP expansion and slower population growth of below 2 percent were the factors that lifted the country’s per capita income.

Based on the government’s economic growth forecast, Salceda said the Philippines would hit a per capita income of $1,463 per Filipino by the end of 2006 based on a GDP of P6.7 trillion, population of 87.4 million and average peso-dollar exchange rate of 52.4.

To adjust for changes in prices, the National Economic and Development Authority calculated its estimate of $1,463 per capita income using constant 1988 prices. Per capita income in 2004 was $1,200 and $1,040 in 2000.

At this rate, Salceda said the Philippines could hit a minimum of $1,800 per capita income by 2010.

Match Thailand’s performance

“Our fighting target is a per capita of $2,800 which would put us on a par with Thailand,” which had a per capita of $2,490 in 2004, he said.

Matching Thailand’s performance was “feasibly strategizable,” Salceda said.

Thailand and the Philippines used to be economic equals until Bangkok’s economy zoomed in the 1980s while that of the Philippines faltered.

Neri said the surge in per capita income over the past 5 years was even more remarkable considering that the government started from a low base (about $900 per capita during the Estrada administration) and the volatile political situation that has kept the President virtually on the ropes throughout her rule.

Neri said the per capita income should increase faster if the peso-dollar rate stays at the current average of below P50 for the rest of the year.

OFW remittances

Officials noted that if per capita were calculated based on gross national product (GNP)—which includes foreign receipts—the per capita would be even higher because of the unprecedented rise of remittances from overseas Filipino workers in recent years.

GDP measures the total monetary value of all the goods and services produced in a country in a given year, minus receipts from abroad.

But equally important in building per capita income is ensuring that the country’s wealth is shared by all, according to Neri.

“This is the reason why the focus of our economic development in the coming years is unclogging the bottlenecks that prevent the economic gains from filtering down to the masses,” he said.

This includes higher capital expenditures to build more railways, airports, bridges and agriculture facilities while directing more funds to social services and cut through the bureaucratic gridlock through the efficient distribution of subsidized food, medicine and health insurance.

But as Neri himself noted, the uneven distribution of this national wealth remained a big problem for the government.

“We might have a high per capita income, but whether this is distributed equally is a big question,” he said.

While the President has touted the strong peso, low interest rates and the improving fiscal condition as proof of her good economic stewardship, her critics have dismissed them as headline statistics that do not reflect the widespread poverty in the country.

http://newsinfo.inq7.net/inquirerheadlines/nation/view_article.php?article_id=22705

Rajah_Soliman

September 24th, 2006, 11:12 AM

call me dumb , but I'm having a hard time understanding your short essay.... can you be more concrete? .... and please be consistent....I know you have some important thoughts to share..... shalom.... :)

I really don't know which ideologist group you belong, leftist, rightist or communist. All I can say on my own perception, they are interested to the wealth that our countrys have. They will do all the means to destroy the democratic process in our country. And when they win, we are all the loosers because we will be hold in the neck by their suppressive government, we will be like Vietnam before and become refugee of other country since our lawful right to our land already been conquered by this evil minded ideologist. So to all us Filipinos do you want to happen this to us, do you want to sell our countries to communism.

It's matter of insecurity and defeat that their pride cannot accept that Philippines is no longer a sick man of Asia, because they dont want our country to take-off to economic growth because the whole world know what petentials our country can provide when we reach the level of stability and if that happen they have no longer a chance to conquer us again, who knows there is someone behind this destruction.

earlat

September 24th, 2006, 11:17 AM

We should be positive and be happy. In a few years time we can be competitive again. Let's rally behind our Filipino's dreams of becoming a first world. :cucumber:

FrancisXavier

September 24th, 2006, 11:40 AM

^ Correct @Raja, the 2nd paragraph is inconsistent with the first one..Or what's the connection?

@adverg, my "correct" was refering to your 2nd paragraph, for i really don't understand the first paragraph and to whom you intend to adress it.. It doesnt connect w/ my prior post.. Does it? I really dont know how you organize your thoughts. It's brain twisting...

FrancisXavier

September 24th, 2006, 11:43 AM

Or maybe he reacted with the PrimeMinister thing? Oh well, that's my opinion and i am entitled to that..as much as you are.. You dont even have to figure out whether i'm leftist,rightist, or communist..

3cr

September 24th, 2006, 11:48 AM

This is not totally good news imho because obviously in reality the wealth is not evenly distributed. Sana nga lang the wealth/fortunes are better distributed so that the gap between the rich and the poor actually shrinks not widen as the article also pointed out.

RP per capita income highest under Arroyo
http://newsinfo.inq7.net/topstories/topstories/view_article.php?article_id=22670
By Gil C. Cabacungan Jr.
Inquirer
Last updated 07:46pm (Mla time) 09/23/2006

SHE might be the least popular among Philippine heads of state, but Filipinos' fortunes have never been better than under the presidency of Gloria Macapagal-Arroyo -- in terms of per capita income at least.

The Philippines’ per capita income, the share of each citizen in the country's wealth as measured by gross domestic product, is estimated to hit over $1,400 this year from $1,200 in 2004 and $1,040 in 2000, according to government and private economists interviewed by the Inquirer.

But the issue of uneven distribution of wealth remains a thorny issue, according to one of the President's top Cabinet officials.

“We might have a high per capita income, but whether this is distributed equally is a big question,'' said Socio-Economic Planning Secretary Romulo Neri.

Albay Representative Joey Salceda, an Arroyo economic adviser, said 22 consecutive quarters of GDP expansion and slower population growth of below 2 percent have provided the lift in the country's per capita income.

Based on the government's economic growth forecast, Salceda said the Philippines would hit a per capita income of $1,463 by the end of this year based on a GDP of P6.7 trillion, population of 87.4 million, and average peso-dollar rate of 52.4.

At this pace, Salceda said the Philippines could hit a minimum of $1,800 per capita income by 2010.

"Our fighting target is a per capita of $2,800 which would keep us at par with Thailand (per capita of $2,490 in 2004). Matching Thailand is feasibly strategizable,'' Salceda said.

Thailand and the Philippines used to be economic equals until the former's economy zoomed while the latter’s faltered.

Neri said this was the best per capita income level of the Philippines in the post-war era, much higher than the industry boom years of the Marcos era and the bull run in the Ramos years.

Neri said the surge in per capita income over the last five years was made even more remarkable considering that the government started from a low base (close to $900 per capita in the Estrada administration) and the volatile political situation that has kept the President on the edge throughout her tenure. Neri said per capita income should increase faster if the peso-dollar stays at the current average of below 50 for the rest of the year.

But equally important in building per capita income is ensuring that the country's wealth is shared by all, according to Neri.

“This is the reason why the focus of our economic development in the coming years is unclogging the bottlenecks that prevent the economic gains from filtering down to the masses,” said Neri.

This includes higher capital spending to build more railways, airports, bridges, and agriculture facilities while directing more funds to boost social services meant to cut across the bureaucratic gridlock through the efficient distribution of subsidized food, medicine, and health insurance.

While the President has touted the strong peso, low interest rates, and improving fiscal condition as proof of her economic stewardship, her critics have dismissed them as headline statistics that do not reflect the widespread poverty in the country.

FrancisXavier

September 24th, 2006, 11:52 AM

oonga..kahit pa $10,000 ang real per capita natin, unequally distributed naman, di pa rin mawawala ang mga squatters area for sure..

3cr

September 24th, 2006, 11:58 AM

Not being pessimistic here but this is not totally good news imho because obviously in reality the wealth is not evenly distributed. Sana nga lang the wealth/fortunes are better distributed so that the gap between the rich and the poor actually shrinks not widen as the article also pointed out.

RP per capita income highest under Arroyo
http://newsinfo.inq7.net/topstories/topstories/view_article.php?article_id=22670
By Gil C. Cabacungan Jr.
Inquirer
Last updated 07:46pm (Mla time) 09/23/2006

SHE may be the least popular of the country’s presidents, but the fortunes of Filipinos probably had never been better than under President Macapagal-Arroyo.

According to government and private economists, Philippine per capita income—or the share of each citizen in the country’s wealth as measured by gross domestic product (GDP)—is estimated to reach more than $1,400 this year.

According to Socioeconomic Planning Secretary Romulo Neri, this was the best per capita income level that the country has attained in the postwar era, much higher than the industrial boom years of the Marcos dictatorship and the bull run under the Ramos presidency.

Albay Rep. Joey Salceda cited a Citibank report last month which placed Philippine per capita income at $1,300.

Salceda said the US-based bank had highlighted the vast improvement in the country’s per capita income, the best since the 1970s, it said.

Salceda, an economic adviser to the President, said 22 consecutive quarters of GDP expansion and slower population growth of below 2 percent were the factors that lifted the country’s per capita income.

Based on the government’s economic growth forecast, Salceda said the Philippines would hit a per capita income of $1,463 per Filipino by the end of 2006 based on a GDP of P6.7 trillion, population of 87.4 million and average peso-dollar exchange rate of 52.4.

To adjust for changes in prices, the National Economic and Development Authority calculated its estimate of $1,463 per capita income using constant 1988 prices. Per capita income in 2004 was $1,200 and $1,040 in 2000.

At this rate, Salceda said the Philippines could hit a minimum of $1,800 per capita income by 2010.

Match Thailand’s performance

“Our fighting target is a per capita of $2,800 which would put us on a par with Thailand,” which had a per capita of $2,490 in 2004, he said.

Matching Thailand’s performance was “feasibly strategizable,” Salceda said.

Thailand and the Philippines used to be economic equals until Bangkok’s economy zoomed in the 1980s while that of the Philippines faltered.

Neri said the surge in per capita income over the past 5 years was even more remarkable considering that the government started from a low base (about $900 per capita during the Estrada administration) and the volatile political situation that has kept the President virtually on the ropes throughout her rule.

Neri said the per capita income should increase faster if the peso-dollar rate stays at the current average of below P50 for the rest of the year.

OFW remittances

Officials noted that if per capita were calculated based on gross national product (GNP)—which includes foreign receipts—the per capita would be even higher because of the unprecedented rise of remittances from overseas Filipino workers in recent years.

GDP measures the total monetary value of all the goods and services produced in a country in a given year, minus receipts from abroad.

But equally important in building per capita income is ensuring that the country’s wealth is shared by all, according to Neri.

“This is the reason why the focus of our economic development in the coming years is unclogging the bottlenecks that prevent the economic gains from filtering down to the masses,” he said.

This includes higher capital expenditures to build more railways, airports, bridges and agriculture facilities while directing more funds to social services and cut through the bureaucratic gridlock through the efficient distribution of subsidized food, medicine and health insurance.

But as Neri himself noted, the uneven distribution of this national wealth remained a big problem for the government.

“We might have a high per capita income, but whether this is distributed equally is a big question,” he said.

While the President has touted the strong peso, low interest rates and the improving fiscal condition as proof of her good economic stewardship, her critics have dismissed them as headline statistics that do not reflect the widespread poverty in the country.

http://newsinfo.inq7.net/inquirerheadlines/nation/view_article.php?article_id=22705

ikra

September 24th, 2006, 11:59 AM

Obligatory sex education for all + free condoms = $ 2,000 per capita income in 2010

that is so true, however i dont understand why the church goes against such acts as condoms and birth control... they are mad and ignorant to say the least! I can find a single passage in the bible relating to it as a sin. (please correct me if i am wrong)

but lesser population = bigger per capita income (thats if wealth if divided properly among us)

although the philippines is ranked 25th by GDP this wealth isnt divided properly amongst the countrymen, and since we have a high population that is to be expected.(although japan is a high pop country but yet very successful)

anyways.. that was good for a laugh

ikra

September 24th, 2006, 12:11 PM

Originally Posted by adverg
I really don't know which ideologist group you belong, leftist, rightist or communist. All I can say on my own perception, they are interested to the wealth that our countrys have. They will do all the means to destroy the democratic process in our country. And when they win, we are all the loosers because we will be hold in the neck by their suppressive government, we will be like Vietnam before and become refugee of other country since our lawful right to our land already been conquered by this evil minded ideologist. So to all us Filipinos do you want to happen this to us, do you want to sell our countries to communism.

It's matter of insecurity and defeat that their pride cannot accept that Philippines is no longer a sick man of Asia, because they dont want our country to take-off to economic growth because the whole world know what petentials our country can provide when we reach the level of stability and if that happen they have no longer a chance to conquer us again, who knows there is someone behind this destruction.

i think this guy doesnt even understand what hes saying.

but however i do believe that he is pertaining to an outside force that affecting our country, with the link to communism to china maybe? or other neighboring asian countries which i cant seem to get hold of. OR basically the imperial America is the one he's referring to. Im thinking too much.

to take it simplistically... hes talking about our government being "power hungry" and wanting to always take hold of the higher seats so that they can feel that they control the country. Since he links "them" to being interested in our wealth thus getting money from the public through "corruption".... etc etc.

However id go with the first one, that there is another country that doesnt want us to progress. Although its a viable theory, i believe that its 99% unprobable. The government can never have absolute power over its people, the government should fear its people and not the other way around. Discontent of the masses is an unstoppable force, and if a government no matter how strong can screw up and just lead itself into problems. I do believe that countries are getting competitive in this world of "globalisation" but i think thats taking that competition to the extreme.

however i would like to read more about your views since i am enjooying it.

earlat

September 24th, 2006, 12:39 PM

i think this guy doesnt even understand what hes saying.

however i would like to read more about your views since i am enjooying it.

I enjoyed reading it as well... :)

normandb

September 24th, 2006, 12:50 PM

that is so true, however i dont understand why the church goes against such acts as condoms and birth control... they are mad and ignorant to say the least! I can find a single passage in the bible relating to it as a sin. (please correct me if i am wrong)

but lesser population = bigger per capita income (thats if wealth if divided properly among us)

although the philippines is ranked 25th by GDP this wealth isnt divided properly amongst the countrymen, and since we have a high population that is to be expected.(although japan is a high pop country but yet very successful)

anyways.. that was good for a laugh

but lesser population = bigger per capita income (thats if wealth if divided properly among us) = more donations for the church :D

Rajah_Soliman

September 24th, 2006, 01:17 PM

but lesser population = bigger per capita income (thats if wealth if divided properly among us) = more donations for the church :D

i like the trend of the discussion here... it's becoming very "mathematical" :hahaha:

here's a another one:

to narrow income disparity = we need to have an "honest" tax paying populace (the church should start paying it's taxes i. e. if it's still exempted) + a working welfare system

question for everyone: when was the last time you paid your taxes? :jk: :hahaha:

earlat

September 24th, 2006, 01:33 PM

I pay my taxes (walang kawala) regularly, I usually ask for an Official receipt when buying something :horse:

(Efficient Tax collection + wise fiscal spending) - corruption = a 1st World Philippines in 30 years.

Let's be prudent.

adverg

September 24th, 2006, 03:15 PM

Maybe all my thoughts are wrong but it's a simple thing, why we cannot take-off, why we cannot move-on since we gain all the democratic opportunity after the Peoples Power, why despite the biggest contributing factor of remittances upheld by the OFW just to regain the composure of our country not to fall into chaos, still cannot cure the irresponsible act of political detractors, what they really want, why they cannot accept that there is no perfect leader and the need to correct is us the whole Filipino people, why in such a case that there is a tendency our country will move on, why there is always a hindrance towards it, does our country was spiritually cursed or it is physically force to do so and why those other countries whether so much cirticism to world media still having a normal move for their growth, why Philippines always being sensational to world attention, are we like a celebrity that no need private life, now you will tell me, I don't know what I am saying. Maybe I cannot give an specific or concrete means why I say that words, but only I can say why we cannot move freely.... Can you answer it.

le Reine

September 24th, 2006, 04:22 PM

my reply "Of course I cannot prove it but many peoples and I guess even opposition figures like Lacson, Pimentel, etc don't believed in govt statistic. the point is we cannot be sure if the GNP or GDP is really accurate and not fabricated." Everything in this country can be fabricated like election results,
surveys, etc....

International financial institutions accept the govt statistic as they have no choice, they want some countries to borrow funds from them so that the billions of dollars deposited to them by some capitalist can earned profits. they won't care even if the statistic is fabricated or not, they can always
seize our country's properties abroad if our country defaulted on their loans.

how do you know if our economist just want to follow what the govt want them to do, like preparing statistic that is favorable to the govt.

everything is possible in this country... it only depends on the price....
----->You're so cynical that everything on the world for you is a result of conspiracy and mockery. Just check if what you're saying is true. Where are your proofs? These are all speculations. You hate capitalism but what is your alternative? That is always the problem. People think that something is wrong because they can feel that it is wrong. They don't care if they don't have facts to prove something.

And with regards to our economists. I just want ot remind you that Lincoln said: "It is true that you may fool all of the people some of the time; you can even fool some of the people all of the time; but you can’t fool all of the people all of the time." Don't be too pessimistic about our people and our country.

And with regards to the opposition figures that you mentioned, they are critical not becasue they are concerned. They are critical becasue they just want to oppose. It doesn't neccessarily mean that they have already proven their criticisms.

whatever scandals and corruptions happens in Thailand, Taiwan, South Korea, Japan, and USA... it is not their rules but an exemption..

in our country .... scandal and corruptions is becoming a way of life from the top echelon of the govt and society down to the lower level. it is like a
cancer that spreads already and only a radical treatment can cure it or alleviate it.
----->Maybe your right. But how can we solve corruption? What's your suggestion then? Remove ALL corrupt officails? I just hope that it is achievable. The problem with us is that our culture accepts corruption but we only blame our leaders with that. You better read this:ttp://www.time.com/time/asia/magazine/article/0,13673,501050718-1081443,00.html

In western europe there were socialist and communist parties which we can call the Left, together with other Rightist parties in their Parliament...
In many instances they joined hands for a cause.

other example is that during the 2nd world war, the USSR which we can
brand as the Left and the US as the Right have joined hand for a cause
to defeat Fascist Germany under Hitler.
----->In Europe, they could co-exist together because they are not aiming to topple the democratic government. They exist because they participate in democratic process. They only differ in ideologies but they do not aim to remove the government. In our country, the CPP-NPA and the coup plotters are there not because they want to reform the democratic government. THey want to topple it altogether. They want us to follow Cuba, Vietnam or China, which is illegal. They are not respecting our constitution unlike in Europe.

And excuse me, we are not in a war. What you've mentioned is an isolated case. What happened after the war? Did they still cooperate with each other? The answer's no.

Now our extreme Left and extreme Right can joined hand for a cause ...to defeat your Fascist Idol.
-----> Excuse me, do you know what a fascist means? And hello?!? She's not my idol. And I'm not protecting her. I'm just criticising your alternative.

If you read the history you will know that the joining of Left and Right group
is possible and not incompatible...

If it is incompatible how come the National Security Adviser and other Palace
sycophants is the one who informs the whole country that there is an unholy
alliance between the etreme right and the extreme Left, as reported by the Newspaper. Remember the news about the Magdalo linking with the NPA.

Do you mean to say that they were lying ?? another fabricated theory
------> When I said to join forces for a cause, I meant that they are joining regardless of their ideologies to solve the problems of this country without removing the democratic government. Which is impossible. It's like saying that Hitler and Stalin could join hands.

I just want to remind you that they are collaborating not to save the Philippines from its problems or pursue their ideologies in a legal way. They are collaborating for the sole purpose of removing GMA and the democratic government. That's pure and simple. When they achieve their goal, of course, they would be the one to rule. The CPP-NPA is a desperate organization which could do anything to achieve its goals. They are collaborating because they view themselves as "saviors" of this land. IT doesn't mean that want to solve the problems of this country. They just want to rule it. We are not even sure if they can solve the problems since they are not suggesting any alternatives. And with regard to the rightist, they just want to be like BUrma.

Askal82

September 24th, 2006, 06:38 PM

I just want to remind you that they are collaborating not to save the Philippines from its problems or pursue their ideologies in a legal way. They are collaborating for the sole purpose of removing GMA and the democratic government. That's pure and simple. When they achieve their goal, of course, they would be the one to rule. The CPP-NPA is a desperate organization which could do anything to achieve its goals. They are collaborating because they view themselves as "saviors" of this land. IT doesn't mean that want to solve the problems of this country. They just want to rule it. We are not even sure if they can solve the problems since they are not suggesting any alternatives. And with regard to the rightist, they just want to be like BUrma.

and... everybody can take a wild guess on who between them (right or left) will get the seat first once they become successful in toppling the government. ;)

Askal82

September 24th, 2006, 06:54 PM

TheAvenger

September 24th, 2006, 07:47 PM

----->You're so cynical that everything on the world for you is a result of conspiracy and mockery. Just check if what you're saying is true. Where are your proofs? These are all speculations. You hate capitalism but what is your alternative? That is always the problem. People think that something is wrong because they can feel that it is wrong. They don't care if they don't have facts to prove something.}unquote

from me what proofs you want? why don't you not go out to the streets and see how many Pinoys were starving - not because of laziness but because of lack of employment. see the beggars... go to the airport where Pinays who were mostly college graduates were willing to become prostitute, ass wipers, GRO, and were willing to leave their loved ones, see the small childrens crying when there mothers or fathers leave for abroad to work.

go out to the world, go and see the entertainment place in Japan and see the Pinay GRO how they live, go to Spain and see those Pinay whom cannot
find work chose to work as part time prostitute. go to the darkest place in
Africa especially in Togo and Ivory Coast and hear the sad stories of Pinay who work as bar girls.

read the newspaper and read how our dirty crocodile politicians like Jokjok
Bolante squandered the peoples taxes.. read about the pork barrels of politicians.....and many many more.

The above I don't blame GMA alone, I blame the whole corrupt system of our government and most Pinoys don't care attitude to what is happening to our
country and people.... what proof you need ?

you want to know what is the alternative to capitalism ? well .. a mixture of
socialism and capitalism as what the NDF and other Pinoy nationalist were
campaigning. of course pure socialism makes the people lazy and they may
lose initiatives to compete and just wait for government help. But capitalism
makes people more materialistic which result to more beggars and poor people, and more corrupt elite who will plunder our govt treasury. so the
best is the mixture of socialism and capitalism. the problem with most Pinoys
is that most of them were brainwashed by the American re socialism or communism. The Americans demonized socialism because they (and other Western European) hate the Russians even during the Czar time, and they
are afraid of Chinese hegemonism in Asia. so the best way is to demonize socialism or communism to hit 2 birds in one stone. hahaba ang story kung
ipagpatuloy ko ang tungkol dito. by the way, social security, cooperative,
child care, etc all came from socialism...

{Quote by XP } And with regards to our economists. I just want ot remind you that Lincoln said: "It is true that you may fool all of the people some of the time; you can even fool some of the people all of the time; but you can’t fool all of the people all of the time." Don't be too pessimistic about our people and our country.unquote

from me : since the birth of the 4th Republic, our people were fooled by the dirty and corrupt politicians and by some of the corrupt Elite. from Roxas to GMA time our people were fooled all the time.

Quote from XP : And with regards to the opposition figures that you mentioned, they are critical not becasue they are concerned. They are critical becasue they just want to oppose. It doesn't neccessarily mean that they have already proven their criticisms. Unquote

from me : Wala lang.. no comment

:quote by XP)----->Maybe your right. But how can we solve corruption? What's your suggestion then? Remove ALL corrupt officails? I just hope that it is achievable. The problem with us is that our culture accepts corruption but we only blame our leaders with that. You better read this:ttp://www.time.com/time/asia/magazine/article/0,13673,501050718-1081443,00.html Unquote

from me not all Pinoys accept corruption : those NGO, military rightist, the legal left, the extreme left, me and the other nationalist Pinoy never accept corruptions as a way of life, they may rather fight the government than accept corruptions. actually not only the leaders I blame but the whole system.

we blamed our leaders because only them has the power and the clout to eradicate corruptions in the government and later the corruption that spill over already to the society.

if the common people / masa is against corruptions, the govt bureaucrats and
the police/military may charge him with fabricated charges of subversion,
sedition, libel, breach of peace, and etc. so what can the ordinary people
who were not radicalized yet can do but blame the leaders.

and must blame also those Pinoys fans and sycophants of both opposition and administration party. while the fans iof the ad party were only good in giving praise to your Idol, but never critizise her for not doing anything on the fertilizer scam/joke joke bolante, for not solving the charges about the national election cheating, and etc.

from me : on how to stop corruption in the government .... the initiative now must come from the govt of your Idol.. only them can do it since the cancer has spread already. besides if the common citizen organize to stop corruption they may be accuse of subversion, sedition, etc,

{quote by XP----->In Europe, they could co-exist together because they are not aiming to topple the democratic government. They exist because they participate in democratic process. They only differ in ideologies but they do not aim to remove the government. In our country, the CPP-NPA and the coup plotters are there not because they want to reform the democratic government. THey want to topple it altogether. They want us to follow Cuba, Vietnam or China, which is illegal. They are not respecting our constitution unlike in Europe.

And excuse me, we are not in a war. What you've mentioned is an isolated case. What happened after the war? Did they still cooperate with each other? The answer's no. unquote

from me In Europe perhaps you don't need to topple the govt, their politicians were not crocodile like ours. In their Parliament, a simple vote of no confidence to the govt, and they will resign. here in Pinas.. kapit tuko and kapit buwaya ang mga politicians.

We are not in a war ? I thought we are on total war against corruptions,
against poverty, etc. ano gusto ng Pinay Idol, total war lang against NPA, against moderate left, against nationalist, against their political oppositions
lang? it seems unfair yaon.[/I

Quote from XP]-----> Excuse me, do you know what a fascist means? And hello?!? She's not my idol. And I'm not protecting her. I'm just criticising your alternative.

from me : [I]do I know what a fascist means? even I came from a lowly govt high school and a govt scholar in a lowly private college, I know how to read the dictionary. knowledge is not a monopoly of graduates of exclusive school of the rich and the elite.

from me : well to me fascist is if you are like Hitler, Marcos, and etc.

Fas·cism [fá shìzzəm]
noun
dictatorial movement: any movement, ideology, or attitude that favors dictatorial government, centralized control of private enterprise, repression of all opposition, and extreme nationalism

Microsoft® Encarta® 2006. © 1993-2005 Microsoft Corporation. All rights reserved.

Quote from XP ------> When I said to join forces for a cause, I meant that they are joining regardless of their ideologies to solve the problems of this country without removing the democratic government. Which is impossible. It's like saying that Hitler and Stalin could join hands.

I just want to remind you that they are collaborating not to save the Philippines from its problems or pursue their ideologies in a legal way. They are collaborating for the sole purpose of removing GMA and the democratic government. That's pure and simple. When they achieve their goal, of course, they would be the one to rule. The CPP-NPA is a desperate organization which could do anything to achieve its goals. They are collaborating because they view themselves as "saviors" of this land. IT doesn't mean that want to solve the problems of this country. They just want to rule it. We are not even sure if they can solve the problems since they are not suggesting any alternatives. And with regard to the rightist, they just want to be like BUrma.

from me : de·moc·ra·cy [di mókrəssee]
(plural de·moc·ra·cies)
noun
1. free and equal representation of people: the free and equal right of every person to participate in a system of government, often practiced by electing representatives of the people by the majority of the people
"Democracy is like the experience of life itself - always changing, infinite in its variety, sometimes turbulent and all the more valuable for having been tested for adversity." (Jimmy Carter Speech to Parliament of India June 2, 1978)
2. democratic nation: a country with a government that has been elected freely and equally by all its citizens
3. democratic system of government: a system of government based on the principle of majority decision-making
4. control of organization by members: the control of an organization by its members, who have a free and equal right to participate in decision-making processes
[Late 16th century. Directly or via French < medieval Latin democratia < Greek dēmokratia "rule of the people" < dēmos "people" + kratos "rule"]
Microsoft® Encarta® 2006. © 1993-2005 Microsoft Corporation. All rights reserved.

from me [I]capitalism, socialism - communism were economic theories.
a capitalist, socialist, communist, or any govt can have democracy. If plundering the peoples taxes in the govt coffers is democracy, if corruption is a democracy, if jok jok bolante can run with the fertilizen scam, then what kind of democracy we have??

if cheating in elections happens in da Pilipins by both admin and oppo parties, is that demcracy ??

from me About NPA and other leftist group...you cannot say that they were after GMA. They were here even before GMA. I don't want to comment about the NPA kasi at present our govt is on Total War, mahirap na baka pati ako ay madamay. okey lang kung isa akong kapanalig nila. But I am just a plain citizen from the upper level of the poorer class and an honest to goodness nationalist.

le Reine

September 24th, 2006, 08:22 PM

from me : de·moc·ra·cy [di mókrəssee]
(plural de·moc·ra·cies)
noun
1. free and equal representation of people: the free and equal right of every person to participate in a system of government, often practiced by electing representatives of the people by the majority of the people
"Democracy is like the experience of life itself - always changing, infinite in its variety, sometimes turbulent and all the more valuable for having been tested for adversity." (Jimmy Carter Speech to Parliament of India June 2, 1978)
2. democratic nation: a country with a government that has been elected freely and equally by all its citizens
3. democratic system of government: a system of government based on the principle of majority decision-making
4. control of organization by members: the control of an organization by its members, who have a free and equal right to participate in decision-making processes
[Late 16th century. Directly or via French < medieval Latin democratia < Greek dēmokratia "rule of the people" < dēmos "people" + kratos "rule"]
Microsoft® Encarta® 2006. © 1993-2005 Microsoft Corporation. All rights reserved.

capitalism, socialism - communism were economic theories.
a capitalist, socialist, communist, or any govt can have democracy.

If plundering the peoples taxes in the govt coffers is democracy, if corruption is a democracy, if jok jok bolante can run with the fertilizen scam, then what kind of democracy we have??

if cheating in elections happens in da Pilipins by both admin and oppo parties, is that demcracy ??

from me About NPA and other leftist group...you cannot say that they were after GMA. They were here even before GMA. I don't want to comment about the NPA kasi at present our govt is on Total War, mahirap na baka pati ako ay madamay. okey lang kung isa akong kapanalig nila. But I am just a plain citizen from the upper level of the poorer class and an honest to goodness nationalist.

Our democracy may be impefect. But it is still democracy nonetheless. We only have to improve it. Cheating and stealing doesn't happen in our country alone. Even in communist countries such as China, corruption is also present and is much worse than us. They are worse because they are corrupt while also repressing civil liberties. Our democracy may be imperfect but it doesn't mean that we have to destroy it altogether. You're blaming our corrupt leaders (admin or opposition alike) but what have you or we done to stop it? Actually, we are even condoning it. We have a saying in tagalog: "Walang manloloko kung walang magpapaloko."

And please, don't brag that you're a nationalist because no one would believe you.

TheAvenger

September 24th, 2006, 09:26 PM

Our democracy may be impefect. But it is still democracy nonetheless. We only have to improve it. Cheating and stealing doesn't happen in our country alone. Even in communist countries such as China, corruption is also present and is much worse than us. They are worse because they are corrupt while also repressing civil liberties. Our democracy may be imperfect but it doesn't mean that we have to destroy it altogether. You're blaming our corrupt leaders (admin or opposition alike) but what have you or we done to stop it? Actually, we are even condoning it. We have a saying in tagalog: "Walang manloloko kung walang magpapaloko."

And please, don't brag that you're a nationalist because no one would believe you.

About China, chinese were materialistic people and never can become a socialist or a communist. Actually China is pursuing Capitalism that's why they became more materialistic, which results to corruptions, and to many evils. I hope our chinese pinoys will stop importing goods from china, they are killing our own industry. see the mall and stores in Divisoria where many cheapskate low priced chinese products were sold in bulk and in retail.

Communism or communist is a misnomer to use in describing any
government.

If you will read the Socialist theory you may learn that :
Before you can attain communism which is the highest stage, you must pass first Socialism, and before Socialism you have to pass the National Democratic stage.

The Americans started to use the term Communist to Russia and China but neither of the two have perfected yet the Socialism stage so they cannot be called communist government or communist party.

And socialism may take a century of sacrifice to perfect it and USSR collapse even before they perfected socialism. USSR collapses not to the failure of socialism but due to other states or republic want to have their own independence, it's like here in Pinas where other Provinces want to set-up their own republic, like Republic of Eastern Mindanao, Republic of Bangsa Moro, Republic of the Visayas etc.

what I have done to stop corruption it? well by simply not doing it. In any transactions with a government office I never offer any bribes nor ask relatives and friends with political clout to help me.

I always follow traffic rules so that the cops or traffic enforcers will not stop me and arrives in a situation where I have to choose between paying a small amount of money or be delayed in arriving to my destination. And many good examples as I am against corruptions in any form.

sometimes I even joined demonstration in Mendiola against Marcos during martial law days when I am at home for vacation from working abroad.
In Edsa 3, I was in Mendiola together with other nationalist and moderate left, as we answered the call of GMA to Pinoys to show support to the Palace against the Mob Power of Estrada on the eve of May Day on that year 2001.

I was in the group of nationalist, moderate left and with GMA supporters like Abalos the present chair of Comelec, that was trapped in San Beda college during the siege of the Palace by the mobs of poor people organized by the other group of corrupt elite. Mob power the ugly side of Peoples Power.

After Edsa 3 many things happen, those moderate lefts who went to Mendiola to help protect and show support to GMA is now the target of the total war. And a woman from the political elite who I have seen in the TV that time when she gave speeches that stir-up the poor masa to attack the Palace is now on govt side.

I am a Ntionalist or Makabayan to the point that I don't mind the rightist or leftist to take over as long as our country will prosper. it seems there is no more hope with our centrist govt who cannot stop corruptions in all forms that will bring our country to the abyss.

3cr

September 25th, 2006, 02:00 AM

Eight-month govt payments for debt higher year on year
http://www.manilatimes.net/national/2006/sept/25/yehey/business/20060925bus1.html
Manila Times
Monday, September 25, 2006
By Likha C. Cuevas, Reporter

DESPITE lower-than-programmed interest payments in the first eight months of the year, the Philippines’ total debt payables for the period rose year on year, according to the Department of Finance.

Data from the agency showed the total debt service amounted to P526.452 billion, or 19.74 percent more than last year’s P439.653 billion.

Principal payments amoun*ted to P305.044 billion, or 28.11 percent more than last year’s P238.112 billion. The amount earmarked for the principal also was 58 percent of the government’s total debt-servicing requirements for the period.

Payments for debts sourced from the domestic market jumped by 63.13 percent to P261.497 billion from the previous year’s P160.298 billion, even as payments made to maturing external obligations went down by 42.56 percent compared to the year before’s P75.817 billion.

Some 42 percent of the total debt servicing comprised interest payments, which reached P221.408 billion, or 8.78 percent higher than last year’s P203.538 billion.

Of this, some P137.276 billion was paid to local creditors while P84.137 billion went to foreign creditors. Both amounts were 9.65 percent and 7.4 percent higher than similar payments made last year.

Earlier, the government said it cut interest payments for the period by 7.36 percent to below the programmed P239 billion. Savings were incurred due to lower interest rates arising from the downtrend in the yield on 91-day Treasury bills or short-term government IOUs. Also contributing to the below-ceiling payments was a stronger peso, which cut the nominal value of foreign currency-denominated debts.

Government estimates that it saves as much P5.14 billion for every percent decline in interest rates and P4.4 billion for every unit of peso appreciation.

3cr

September 25th, 2006, 03:50 AM

P80b in duties lost due to fiscal perks—Customs
Philippine News
http://www.manilastandardtoday.com/?page=business02_sept25_2006
By Lawrence Agcaoili

The Bureau of Customs said the national coffer is losing at least P80 billion in potential revenues a year as close to two-thirds of the goods that enter the country are exempted from import duties as part of the fiscal incentives extended by various government agencies.

Customs Commissioner Napoleon Morales told the Congressional oversight committee on comprehensive tax reform program that the range of the country’s imports exempted from duties has increased to 62 percent from 58 percent based on the estimates of the Department of Finance.

“The government is losing approximately $1.6 billion [P80 billion] because of the duty-free importation, domestic manufacturing is down to a certain degree,” Morales said.

Senator Ralph Recto, chairman of the Senate ways and means committee, said the foregone revenues arose from numerous fiscal incentive laws granted by the government as well as the registration of importers with the Board of Investments.

Other agencies that extend fiscal and nonfiscal incentives to investors that set up shop in the Philippines are the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority and Clark Development Corp.

Recto authored Senate Bill 244, or an Act Harmonizing the Grant and Administration of Fiscal and Non-Fiscal Incentives, that will repeal Executive Order 226, also known as the Omnibus Investments Code of 1987, and abolish the investment board.

Rep. Mark Cojuangco said a large portion of the duty-free imports were being used as raw materials for exports, especially the electronics and semiconductor industry.

Rep. Exequiel Javier said local manufacturers enjoyed protection because capital equipment available in the local market could not be imported duty-free.

Foregone revenues resulting from the grant of fiscal incentives went down by 5.71 percent to P282.8 billion in 2004 from P299.92 billion in 2003. The leakage in 2004 comprised of P219 billion in potential value-added tax, P34 billion in import duties and P27 billion in income tax.

Former Socioeconomic Planning Secretary Felipe Medalla and University of the Philippines economist Renato Reside are pushing for the rationalization of fiscal incentives through the abolition of the investment board, the scrapping of income tax holiday and limiting incentives to exporters to plug revenue leakages amounting close to P300 billion a year.

A study conducted by Reside revealed that about 83 percent of the registered projects with the board would have materialized even without the incentives. The tax perk extended by the board to activities under the Investments Priorities Plan, according to the study, resulted in foregone revenues amounting to P43.2 billion in 2004.

Trade Undersecretary and board managing head Elmer Hernandez disputed the figures, saying the fiscal perks extended by the agency resulted in foregone taxes and duties amounting to P7.8 billion comprising of P7.63 billion in income tax holiday and P183.5 million under the preferential one percent tariff on imported capital equipment.

The Arroyo administration is in the midst of a fiscal consolidation program by plugging revenue leakages and raising additional revenues to achieve a balanced budget by 2008 ending an era of two decades of budget deficit.

3cr

September 25th, 2006, 04:00 AM

SEC wants Ayalas to be transparent
By Zinnia B. Dela Peña
The Philippine Star 09/25/2006
http://www.philstar.com/philstar/NEWS200609250703.htm

The Securities and Exchange Commission said it wants the Ayala family to disclose how they intend to use the estimated P10.56- billion proceeds from the sale of their 6.9-percent stake in Ayala Corp. and to whom the shares were sold, in order to properly guide the investing public.

The move is in line with the SEC’s disclosure requirements for listed companies to ensure a level playing field.

"They need to disclose the buyers and how they plan to use the money raised from the sale of shares because it is such a huge amount. They may be thinking of acquiring something and whatever it may be should be disclosed to the public to ensure transparency," an SEC official said.

The same official noted that shares of Ayala Corp. have been on the upswing prior to the announcement of the sale (Sept. 20). On Sept. 19, 2006, Ayala’s stock closed at P477.50, 52 percent higher than the yearend 2005 closing price of P315 and the stock’s highest level in more than seven years after it closed at P494.79 on May 10, 1999.

In the disclosure it filed with securities regulators, Ayala said the shares were sold to several groups of foreign investors.

"I think it’s only fair that the Ayala Group disclose too to whom they sold the shares to quell speculations. Investors have a right to know," the SEC official said.

Analysts are speculating that the funds raised from the offering could be used for the continued expansion of the Ayala Group’s businesses.

The group is eyeing to take over cash-strapped utility firm Maynilad Water Services Inc. It has been expanding its electronics manufacturing business under its unit, Integrated Microelectronics Inc., a disk drive maker and assembler of liquid crystal display modules for mobile phones.

The Ayala conglomerate which owns the largest property developer, the number two lender by assets and second biggest mobile phone company, has been aggressively expanding abroad to continue growing.

The Ayala family, through Mermac Inc., sold around 23.84 million shares in Ayala Corp. through a special block sale at the Philippine Stock Exchange at P443 each share or a discount of 5.2 percent based on the weighted average price of the shares over the last 10 trading days.

According to the conglomerate, the sale is part of a portfolio re-arrangement exercise and is in line with efforts to increase the public float of Ayala in view of "heightened investor interest and demand for the shares."

Ayala also has interests in utilities through Manila Water Co., automotive dealerships, information technology, and international investments.

Listed on the Philippine Stock Exchange in 1976, Ayala Corp. has one of the largest market capitalizations among Philippine companies. Ayala and its other listed subsidiaries account for about a third of the Philippine composite index.

3cr

September 25th, 2006, 04:05 AM

The Thailand coup: Will it happen to the Philippines?PHILEQUITY CORNER
By Ignacio B. Gimenez
The Philippine Star 09/25/2006

In the wake of last week’s coup d’etat in Thailand, it is inevitable that investors will be treating the Philippines with caution given the likelihood of a copycat coup and the circumstances it shares with Thailand. With many investors currently grouping the Philippines with the so-called TIP (Thailand, Indonesia, Philippines) markets, any disturbance in one of these countries is likely to elicit concerns on the other members.

The Philippines and Thailand are the usual suspects when it comes to vulnerability to military or military-backed revolts. This observation or conclusion finds basis in the fact that both countries share some similarities in their political circumstances. They both underwent a considerable period under martial law. Even with the installation of civilian rule, both have been plagued by military uprisings. Any economic progress or degradation at least in the past three decades has been dictated upon largely by political forces rather economic fundamentals. Contrasting points
But the comparison between these two countries could end here. We can think of more contrasting points such as the following:

1. Military vs. civilian rule

Thailand has had a longer history of military revolts: at least 18 coups or coup attempts since 1932. It is therefore likely that their military and the citizenry may have been more accustomed to either being under military rule or relying on the military for political changes.

In contrast, Filipinos are more used to civilian supremacy such that the relatively shorter period under martial law has left them with bad taste in the mouth. As such, the military-backed uprisings in 1986 and 2001 succeeded because people aimed to restore and/or strengthen democratic institutions rather than install military rulers. In both cases, the only two successful revolts in recent history, the exercise was initiated by civilians with the military following suit. This is in contrast to Thailand’s case where the power change has always been a military initiative.

2. Unity within the ranks

It appears that the Thai military are more united given that the latest coup was executed in one swift move. Not a single gunshot was reportedly fired, indicating little or no resistance from within the ranks.

We are not sure if the same can be said of our own armed forces as each of the last five presidents has apparently developed their own following within the military. For her part, President Arroyo has apparently exerted considerable efforts to reach out to the military and has elicited allegiances from certain military sectors. We are not sure if Mr. Shinawatra has made similar moves given the key role that Thai military has played in his country’s history.

3. Coup fatigue

The last successful military revolt in Thailand was in 1992 yet, thus, the coup last week may have come as a surprise. Meanwhile, Filipinos have apparently developed a fatigue on uprisings if we take the anemic support they have extended to the latest coup attempt last Feb. 25 as an indication. With the coup plotters and organizers not offering any solid and viable alternative to the status quo, Filipinos appear to have become either apathetic or indifferent to the causes being raised by the revolt organizers.

4. Rallying factor

Thailand has its immensely popular King Bhumibol Adulyadej whose blessing seems to be a key factor for any coup attempt to succeed. In contrast, Filipinos do not have any similar single personality who can entice the majority to support any coup plot. For now, the Filipino middle class is king and he is tired, weary and skeptical of those wishing to change the administration for mere power grab. Someone has yet to offer the credibility, sincerity and viability that the Filipino middle class is looking for. What’s in it for the Philippine stock market?
In the meantime, what can we expect as far as the economy and stock market are concerned in the event of a copycat coup?

While we believe that such an event is remote, it can nonetheless provide a distraction to the economic and fiscal gains that we have achieved so far. But as far as the impact on the economy is concerned, the immediate casualty is usually tourism. On this note, we may have less to lose than Thailand which has increasingly become reliant on its booming tourism industry. In our case, the tourism industry’s contribution to the economy is not as significant given that it is still almost at infancy. Our tourist arrivals last year was at around 2.5 million compared to Thailand’s about 13.5 million. Our tourism revenues also pale in comparison: about $2.6 billion vs. Thailand’s about $20 billion. Finding opportunities amid the turmoil

As far as the stock market is concerned, investors have learned to be less beholden to political turmoil and reap the benefits of good fundamentals instead. At the very worst, investors would view such events as opportunities to cash in gains if the market has been rallying prior to the coup. But more have found opportunities to buy on any weakness following the event. In the case of Thailand, the market fell eight percent a week after the May 1992 coup but recovered more than 30 percent in the next eight months. Upon its reopening after the latest coup, the Thailand stock market fell by as much as 4.2 percent but eventually recovered to cut the loss to just 1.42 percent. Last Friday, it dropped by 1.57 percent in tandem with most markets in the region. While some investors chose to be cautious, some have remained unperturbed. In his latest commentary, Franklin Templeton Investments’ Dr. J. Mark Mobius said that he may add more on his holdings of Thai stocks should the prices fall as a result of the current political situation. His argument? The long-term outlook for Thailand is still good.

In our own case, the trend is that the market has always managed to recover as early as a week after political uprisings and then gain so much more a year after the event. (See our Feb. 27, 2006 article "Failed coups & the stock market" and the Aug. 13, 2006 article "Wars, terrorism, coup d’etat and the stock market"). In the aftermath of the Thai coup, our own index corrected about two percent after gaining around eight percent in the previous week. This indicates that the Thai coup event was used by investors as a convenient excuse to take profits. The following day, our index recovered 1.77 percent.

Everyone has apparently gotten wiser to take advantage of such buying windows. This only tells us that fundamentals remain the overriding factor in evaluating any market. With this in mind, Philequity bought heavily right after the Feb. 24, 2006 coup attempt. The strategy proved us right given that the Philippine stock market has gained 22 percent since then! This is our constant advice to our readers: Keep your eye on the fundamentals. Any political misery is just a temporary distraction.

Culiat

September 25th, 2006, 04:07 AM

Hehe buhay pa pala ang thread na ito :D

sandrin

September 25th, 2006, 04:09 AM

FCDU loans down to $3.86B in Q2
By Des Ferriols
The Philippine Star 09/25/2006
http://www.philstar.com/philstar/NEWS200609250711.htm

Outstanding loans in banks’ foreign currency deposit units (FCDUs) went down seven percent in the April-June quarter from the previous quarter and by 16 percent compared to the same period last year.

Data from the Bangko Sentral ng Pilipinas (BSP) showed FCDU loans amounted to $3.862 billion in the second quarter this year, compared to $4.149 billion in the first quarter and $4.644 billion last year.

The BSP said the decline in net lending was a result of repayments which outpaced new loans granted by FCDUs. Net repayments exceeded new loans by about $290 million.

According to the BSP, around 89 percent of funds disbursed during the period were short-term in nature, mainly to oil companies.

The BSP said private sector accounts grew by one percent and represented 67 percent of outstanding loans.

In terms of maturity, 64 percent of the accounts had medium to long-term maturities, or exceeding one year.

The BSP said major beneficiaries of FCDU loans include public utility firms, exporters and producers/manufacturers, including companies. FCDU deposit liabilities rose by $832 million or five percent from the end-March 2006 level to reach $17.488 billion by end-June 2006.

The bulk of these deposits or 95 percent were owned by residents. The overall FCDU loans-to-deposits ratio dropped to 23.2 percent in June 2006. This relates to the current period’s loan portfolio to the level of FCDU deposits in the two previous quarters.

The BSP said the decline was due to the decline in loans and increase in deposit liabilities.

adverg

September 25th, 2006, 04:11 AM

There is only one solution to these long decades problems, is the birth of a New Patriotic Generation, disregard of his belief, dialect and personal interest. A sacrifice of one's generation towards fulfillment of such vision. It is sad to say if this were created, they are the one who will suffer for this cause but if we think that we really need to change our country, it is a must to do so. This cannot be cured as what people want to expect now, we are trying to dream of something but we don't know how to make it realistic. No matter what we do and whoever succeed in seating the powers, if it was stick to all our mentality that we always object thats seems having proove that there is a capability that this person have whom we have always to object, we can't go further to this way or what we want things happen in our country. It seems we really don't know what we want, we are scared of a long term services of our leader that may fall into dictatoship but we are angry also that we cannot see full development in his short term course, where is the fairness, where is the realistic ways, does it make sense. In fact, we must be happy at this time, try to see the changes that our country have now despite worldwide criticism that we are a hopeless nation. I try to surf the Skyscraper Page, one post by I think Australian about Philippines, he dont believe that we are a hopeless country. Think about that and then why we are still irritated and seems the end of this world already, move our sights and look around the world, are we that desperate. Be cautious that might what I have posted earlier is just the battle ground/armour for those who really want our country not to succeed in it's visions.

OtAkAw

September 25th, 2006, 05:29 AM

I'M BACK!
From the brig that is.

Anyways, pinag-aawayan niyo parin si Ate Glo? Nothing's changed hehe...

normandb

September 25th, 2006, 06:37 AM

I'M BACK!
From the brig that is.

Anyways, pinag-aawayan niyo parin si Ate Glo? Nothing's changed hehe...

who brigged your account?

Sinjin P.

September 25th, 2006, 11:16 AM

RP foreign borrowings to fall sharply

Foreign borrowing by the government is expected fall by nearly 58 percent to P130.7 billion ($2.59 billion) next year as state revenues rise, Budget Secretary Rolando Andaya said Monday.

He said total 2007 borrowings by the government would fall 26.49 percent to P390.8 billion, with the foreign component down by P179.5 billion to P130.7 billion.

Meanwhile, domestic borrowings next year would rise 17.43 percent to P260 billion to pay off maturing obligations, Andaya added.

"The hefty 140.8 billion-peso drop (in total borrowings next year) is a validation of the fiscal turnaround (and) will be sustained in the coming years as revenues displace loans as a source of government funds," he added.

"This is the first time in years in which we will be borrowing less and it will happen at a year when we are actually increasing spending," Andaya said, referring to the proposed 2007 national budget of P1.14 trillion.

Manila is seeking to balance its budget by 2008 after passing a batch of key tax reform laws that boosted state revenues.

Meanwhile, Singapore-based DBS bank said "an upgrade in the country's credit outlook and maybe even a ratings lift is a distinct possibility" due to Manila's improving finances.

"The excitement in the Philippines comes not from growth but the progress being made on the fiscal front. We estimate this year's budget deficit at P74 billion, significantly below the official target of P125 billion," DBS said in a quarterly economic outlook.

It said the government could also achieve its goal of keeping the budget deficit next year below 0.9 percent of gross domestic product and that next year's deficit could be just P58 billion, less than the target of P63 billion. AFP

Sinjin P.

September 25th, 2006, 11:32 AM

Peso ends at 50.365:$, stocks gain

The peso depreciated slightly against the dollar to close at 50.365 Monday, a tad weaker than Friday's 50.35 finish.

The peso opened at 50.35 and averaged 50.345 to the dollar on $326.5 million worth of trades.

Analysts said the foreign exchange market in Manila and around the region barely moved as traders waited for data that would indicate a slowdown in the US economy.

At the stock market, share prices also kept steady as the Philippine Stock Exchange index closed up 0.03 points at 2,531.

Except for the financials, holding firms and mining and oil subindicators, all other subindices declined.

Advancers outpaced decliners, 37 to 33, while 69 issues were unchanged. Value turnover was at P1.282 billion.

The day's most active was blue chip PLDT, which gained at P2,220 per share.

Ayala Corp. also rose at P462.50 per share. Its real estate arm, Ayala Land, added up at P14.75 per share.

Equitable-PCIBank remained flat at P75 per share.

The day's top loser was Philex Mining, which went down to P3.75 per share.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=51355

JAMAICUS

September 25th, 2006, 02:05 PM

Lepanto invests P3.3 billion to activate idle copper mine

By BERNIE CAHILES–MAGKILAT

Lepanto Consolidated Mining Company (LCMC) is investing P3.3 billion to reactivate its idle copper mine in Benguet, which was closed five years ago due to lower copper prices.

Trade and Industry Secretary Elmer C. Hernandez, also managing head of the Board of Investments, said the rehabilitation project of Lepanto has been approved on a non-pioneer status.

Since the project falls under the rehabilitation category, its incentives are limited to duty-free importation of capital equipment only. It would not be entitled to income tax holiday incentives.

Based on its application with the BoI, once rehabilitated the idle copper flotation facility will produce copper concentrates with an input capacity of 2,500 DMT (dry metric ton) of ore per day or 875,000 DMT of ore per year or equivalent to a maximum production output of 6,289,840 lbs. of copper concentrate; 96,178 ounces of gold; and 232,271 ounces of silver per year.

"This is a big push for the mining industry and shows the government’s determination in promoting the industry," Hernandez said.

According to Hernandez, the project was previously registered but was closed due to low copper prices after being operated for two years. The copper flotation facility had been closed and remained idle for almost five years.

"Now that metal prices are up, the company is reviving the plant," Hernandez said. Current metal prices are at $ 3.40 per lb.

The rehabilitation also follows recent exploration and underground development indicating a significant increase in the volume of copper deposits. Studies also showed an increasing trend in the copper content of the Victoria veins in Benguet.

The company also said that treatment of the copper-bearing gold ores straight to the CIL (copperin-leach) process result to lower gold recoveries and much expensive due to the presence of copper, which requires excessive consumption of sodium cyanide.

Project financing is 75 percent loan and 25 percent equity contributions from major stockholders.

Lepanto, which is 81 percent Filipino-owned and 19 percent foreign, will employ 286 workers.

As a Filipino primary gold producer, Lepanto has a mining concession in Mankayan, Benguet for 70 years since 1939. It operates the Victoria and Teresa gold deposits.

Its shares are actively traded in the Philippine Stock Exchange under the symbols of LC and LCB. It has 25.6 billion shares issued and outstanding.

Gross revenue last year amounted to P1.399 million which is 38 percent lower compared to 2004’s gross of P2.251 million. Operating losses amounted to P304 million compared with last year’s income of P352 million. Net loss was P384 million against last year’s net income of P35 million.

This result was due largely to the repercussions generated by the strike that pushed back mining, development and exploration programs.

Capital spending decreased by P230 million or 32 percent compared with last year’s expenditures of P711 million owing to the stoppage of development and exploration works during the strike.

To recover from the weak 2005 performance, the following moves were instituted and/or included in the 2006 plan:

Reduction of mine shifts from three to two, thus reducing manpower requirement. It also re-introduced the uphole blastholes method, which required less preparation and putaway time per mining cycle, thus improving productivity.

The company also installed sand recovery cyclones to increase the sand recovery from 30 percent to a high of 55 percent and retrieval of sand from development waste to increase available sand for sandfilling.

It also adopted selected stopes of the sublevel cutand-fill method. In this method, the mining lift to be drilled and blasted will increase from the present height of 2m to 5 or even 10m. This will increase productivity from 50 ton per day (tpd) to 100-200 tpd per stope.

http://www.mb.com.ph/BSNS2006092575379.html#

JAMAICUS

September 25th, 2006, 02:39 PM

Time for RP to aspire to
higher growth, says economist

By Rommer M. Balaba
Reporter

THE government must rethink its economic aspirations towards a higher level by aspiring for a more ambitious growth objective which, given the current set of indicators, is actually achievable, president Emilio T. Antonio Jr. of the University of the Asia and Pacific commented.

Antonio, an economist, said the Philippine economy’s performing beyond expectations particularly in the next five years was crucial, as this means government policymakers are able to capitalize on the growth momentum being experienced today.

Production growth has consistently posted an upward trend, which may indicate the benefits of a better economy are trickling down to the poor and thus must be sustained over the next few years, he added.

“So why should we stay [contented] with a 5 [gross domestic product] percent growth when we can do 6 percent like what some of our Asian neighbors are now experiencing? I think we can also do that,” Antonio said.

GDP, or the aggregate value of goods and services generated by the local economy, grew 5.6 percent during the first semester or within the government’s 5.5 percent-6.1 percent target range for the year.

President Arroyo’s economic team meanwhile is aiming for a higher 5.7-6.5 percent growth goal next year although traditionally actual economic performance had always been in the lower ranges.

Global institutions such as the International Monetary Fund and the Asian Development Bank on the other hand are more conservative about the Philippines’ growth prospects and have made lower-than-government projections.

Antonio commented the government must shift its economic performance reporting by using gross national product (GNP) growth rather than the GDP expansion that is a West-influenced method that may not actually reflect peculiarities of the Philippine economy.

“It should be GNP instead of GDP... a fairer comparison that reflects the contribution of overseas Filipino workers (OFW) [considering] OFW remittances are high. GDP growth reporting is for developed countries that have a closed economy paradigm; our economics is peculiar since OFWs have a big role,” Antonio said.

OFW earnings and remittances are imputed in the Net Factor Income From Abroad segment of the National Income Accounts production side estimation, which also takes in property income and expense as well as compensation outflow.

On the demand side, OFW remittances are normally reflected on private sector consumption expenditure patterns. GNP is computed as GDP plus Net Factor Income From Abroad.

“GNP [growth] is the true indicator of economic performance for the Philippines. Anyway we have data [such as the GDP growth] if we want to compare our performance with the rest,” Antonio commented.

http://www.businessmirror.com.ph/front02.php

chixbebe

September 26th, 2006, 11:22 AM

The japan's trade deal in our country can improve our Gross Domestic Product largely by two 2.5% points.

This was based to the projection on the provision under the deal that would increase trade by bigger slice of the Japan market and that through JPEPA, Japan will open up its market to our agricultural produce and healthcare workers.

Thunderflip

September 26th, 2006, 12:36 PM

Ok, interesting thread. Without this family, we wouldn't have Makati today. Oh, well. The only German thing in the family is the Zobel name inherited from their super great-great grand father who migrated to the Philippines in the early 1800's. They are ethnically Spanish, Basque and American. They might have some distant native blood.

As for the Aboitiz family from Cebu, they own a shipping company, don't they? And also property ventures. They trace their roots from the Basque minority of northern Spain. They are also Caucasian-looking.

Doeas anyone know the origins of the European family name "Farum"? I wonder where that comes from cuz that is suppsedly the only trace of our family' mestizo forebarers.

Oh,well. Filipino Caucasians are a slowly dying and somewhat incest breed. Growing up abroad, lots of people thought I was Mexican or Brazilian. Even now in the Phils, people still think I'm a forein student. I think most mestizos can be found here in the visayas, especially in cebu and iloilo.

i'd like to know more about the Lhuillier family from cebu.

amras

September 27th, 2006, 09:56 AM

WEF: Singapore 5th most competitive; Philippines 71st

Agence France-Presse
Last updated 04:00am (Mla time) 09/27/2006

SINGAPORE -- Singapore is the most competitive economy in Asia and fifth globally, the World Economic Forum (WEF) said in its 2006 ranking of competitive economies released Tuesday.

The Philippines was ranked No. 71, up two notches from last year.

Singapore was the only Asian economy along with Japan within the top 10 of the 125 economies surveyed worldwide by the Geneva-based think tank.

Japan was ranked seventh behind the United States, which fell to sixth place from its No. 1 ranking last year, the WEF said.

Hong Kong was in 11th place and Taiwan was No. 13, as Asia's so-called tiger economies kept their high rankings. Hong Kong improved from 14th place in 2005, while Taiwan fell from eighth place.

Vietnam was at 77th place, down three places. Sri Lanka was at 79th place, Pakistan at 91st and Cambodia at 103rd place.

Timor Leste was in 122nd, just three notches higher than cellar-dweller Angola.

"Asia is home to some of the most as well as some of the least competitive economies in our rankings," said WEF chief economist Augusto Lopez-Claros. "Singapore leads the pack, ranked fifth overall, followed by Japan in seventh place, with Hong Kong in 11th and Taiwan in 13th place, respectively.

"These economies all have high quality infrastructure, flexible and efficient markets, and healthy, well educated work forces. They are also operating on the outer boundaries of the technology frontier, both at the firm and consumer level."

Worldwide, Switzerland, in fourth place last year, dethroned the United States for the No. 1 position this year. It was followed in order by Finland, Sweden and Denmark.

The rankings were based on a survey of more than 11,000 business leaders in 125 economies worldwide and also included macroeconomic factors, innovation and use of technology, plus the quality of public institutions.

Growing trade imbalances have dented US macroeconomic ratings, while the levels of efficiency and transparency in public institutions "do not match those of the most developed industrial countries," the WEF said.

Germany was No. 8, the Netherlands No. 9, and Britain rounded out the top 10.

Among other European states, Norway was No. 12, Iceland No. 13, Austria in 17th place and France at 18th place, beating Belgium, which was ranked No. 20.

In the Asia-Pacific region, Australia was at No. 19 and New Zealand at No. 23.

South Korea was in 24th place, Malaysia in 26th, Thailand in 35th and Indonesia in 50th.

more (http://business.inq7.net/money/breakingnews/view_article.php?article_id=23331)

chixbebe

September 27th, 2006, 11:15 AM

Australia’s Tap Oil Ltd. has acquired an 85 percent stake in a consortium drilling for oil in the Sulu Sea in the southern Philippines, company statements said yesterday.

Philodrill Corp. and South China Resources Inc., two members of the consortium, announced in separate statements released to the Philippine Stock Exchange, they had completed a “deed of assignment” to Tap Oil, subject to the approval of the Department of Energy. It was not stated how much Tap Oil’s acquisition was worth. This deal “forms part of Tap’s strategy to establish a new area of focus in oil and gas rich areas of Southeast Asia,” South China Resources said.

The consortium will be drilling for oil in the Sandakan basin in the South China Sea, covering an area of about 5,000 square kilometers with water depths ranging from 200 to 2,000 meters, the South China statement said.

Oriental Petroleum and Minerals Corp. said Tap Oil will earn majority interest and will be the operator of service contract (SC)-41 and will shoulder the cost of acquisition and interpretation of 300 kilometers of 3-dimensional seismic survey under the contract.

The seismic survey will be carried sometime late this year and the results will be used to identify possible drillable structures.

With the deed of assignment awarded to Tap Oil, the company will have the option to drill a deepwater well on the ninth contract year or from May 2007 to May 2008.

Tap Oil disclosed to the Australia Stock Exchange last July that it had entered into a farm-in agreement to acquire a 58 percent interest in SC 41 in the Sandakan Basin.

Tap Oil also disclosed that the prospectivity of SC 41 comprises a number of play types which are interpreted to have the potential for oil accumulations in the range of 50 to 150 million barrels.

SC 41 is an area of approximately 5,000 square kilometers with water depths ranging from 200 to 2,000 meters.

Tap Oil has indicated in its company website that the acquisition of a significant interest and operatorship in SC 41 forms part of Tap’s strategy to establish a new area of focus in oil and gas rich areas of South East Asia.

“There are numerous large oil and gas fields in this area and the fiscal regime in the Republic of Philippines is relatively attractive,” Tap Oil said.

Tap’s initial interest is focused on a trend of large scale four-way dip closures, already mapped on existing 2D seismic, some with direct hydrocarbon indicators.

--http://www.tribune.net.ph/business/20060927bus4.html

JAMAICUS

September 27th, 2006, 04:18 PM

Ecozone export take up to $19.7B
GOVT-OWNED ZONES CONTRIBUTED $4.5B
OF TOTAL MANUFACTURED EXPORTS

By Max V. de Leon
Reporter

EXPORT revenues generated by economic zone locators through-out the country increased by 11.25 percent to $19.65 billion in the initial seven months of the year from only $17.56 billion in the same period last year, the Philippine Economic Zone Authority (Peza) reported.

The amount is a combination of the $19.16 billion in merchandise exports and $487 million in services exports generated by locators in Peza IT parks and buildings.

The top 10 Peza-accredited exporters are Intel Technology Phils., Texas Instruments, Amkor Technology, Philippine Associated Smelting & Refining Corp., Fujitsu Computer Products, Cypress Manufacturing, Toshiba Information Equipment, Panasonic Communications Corp. and American Power Conversion Corp.

Peza did not release the individual export figures of the company.

The government-owned economic zones in Baguio City, Bataan, Cavite and Mactan contributed $4.49 billion of the total manufactured exports, up 12 percent from $3.978 billion last year.

The private economic zones, meanwhile, increased their shipments for the period by 8.67 percent to $14.669 billion.

The year-to-date export revenues generated by IT-enabled services, meanwhile, increased by 161 percent from $186 million in 2005 to $487 million this year.

http://www.businessmirror.com.ph/sfp01.php

JAMAICUS

September 28th, 2006, 03:53 AM

Government may breach 2007 deficit target, dof officials warn
By Des Ferriols
The Philippine Star 09/28/2006

Finance officials expressed concern the government may breach its 2007 deficit target if it was not able to contain the programmed acceleration in public spending in an attempt to pick up the slack from this year’s re-enacted national budget.

Finance Secretary Margarito B. Teves told reporters yesterday that keeping the fiscal program on track would become even more critical next year since it would set the homestretch towards the programmed balanced budget in 2008.

The deficit is expected to decline to P125 billion this year and down even more sharply to P63 billion by 2007. By 2008, the deficit is projected to drop to a residual amount of less than P100 million.

"I know it looks good today, but we are not out of the woods yet,"said Teves.

Teves said using the re-enacted 2005 budget this year would also have repercussions on economic growth that have not been fully anticipated which, in turn, would have an impact on 2007 revenues.

"If there is a slowdown next year because we underspent this year, that would affect our revenue collections," he said. "Moreover, my headroom for the rest of the year is really only P12 billion. There are three months to go."

Teves, an economist, said that fiscal balancing would also have to take into account the increased public spending in countries such as Vietnam and Indonesia which compete directly with the Philippines for a share of the highly-contested export market.

"But I’m worried about exceeding our P63-billion target deficit in 2007. At this point, the government would have to be an economic catalyst," he said.

Operating under the 2005 re-enacted budget, the Arroyo administration posted another budget surplus in August as revenue agencies exceeded their collection targets for the month amid moderate growth in public spending.

The surplus was created mainly out of slow government spending under a re-enacted budget and a P5.1-billion advance tax payment made by Mirant Philippines Corp.

Teves told reporters that the August fiscal performance brought the government’s budget deficit in the first eight months of the year to P34.2 billion, way below the P80.82-billion budget deficit in the same period of 2005.

With the August surplus paring down the cumulative budget deficit, the Arroyo administration now has a P88-billion headroom for September, just to stay at par with its P122-billion target deficit for the first three quarters of the year.

National Treasurer Omar Cruz said that the eight-month deficit was roughly 27 percent of the whole-year budget deficit ceiling of P125 billion, providing enough room for the P46.4 billion supplemental budget approved by the Senate last week.

The Arroyo administration has been on a surplus since April as government spending practically screeched to a dramatic slowdown in the absence of a new budget for 2006 which forced line agencies to hold back on programs and project spending.

The combined effect of low public spending and the increase in taxes created enough room for three consecutive months of budget surpluses except in July when the government reported a P17-billion deficit.

http://www.philstar.com/philstar/NEWS200609280707.htm

JAMAICUS

September 28th, 2006, 04:21 AM

Gov't cuts 2006 domestic borrowing plan

XFN-Asia
Last updated 01:56am (Mla time) 09/28/2006

THE government's total domestic borrowing for 2006 is now expected to amount to P270.9 billion, down 12 percent from the original P310.2 billion and 37 percent below than last year's P432.8 billion, National Treasurer Omar Cruz said.

Cruz said the borrowing mix would be about 42-58 in favor of domestic debt.

The government will offer another P84 billion worth of securities through regular auctions in the fourth quarter of the year, Cruz added.

It has borrowed the same amount in the third quarter.

Cruz has advised government securities dealers that the volume of Treasury bills to be offered at fortnightly auctions in the four quarter will still be P6 billion -- P2 billion pesos each for the 91-, 182- and 364-day bills.

The government will also offer P48 billion worth of Treasury bonds in the fourth quarter with maturities of five, seven, 10, 20 and 25 years.

The national government recorded a budget surplus in four of five months since April, helped by reduced spending in the absence of a new budget, and further boosted by increased revenue.

The surpluses have helped narrow its cumulative budget deficit from January to August to P34.2 billion, 27.4 percent of the full-year target limit of P125 billion. With INQ7.net

http://business.inq7.net/money/topstories/view_article.php?article_id=23549

overtureph

October 1st, 2006, 08:51 AM

Scion of known families takes uncharted road

By Tina Arceo-Dumlao
Inquirer
Last updated 03:53am (Mla time) 10/01/2006

Published on page B2 of the October 1, 2006 issue of the Philippine Daily Inquirer

BEING a Roxas and an Elizalde has its perks.

Aside from growing up with the best of everything that money can buy, Francisco Jose “Patxi” R. Elizalde could have just simply gone to his father after college and ask for a cushy job in the family’s extensive sugar business.

But the second of four boys born to Francisco Elizalde did not.

Elizalde branched out instead to try his luck as an entrepreneur in the retail industry that is marked by fickle customers and white hot competition.

In the retail business, his family names can only take him so far.

The holder of an Agricultural Economics degree from the University of Vermont had to rely on his own wits, and that was exactly how he liked it.

Elizalde made his first big jump into the retail business in January 2002 when he got the deal for the family business to distribute the Arena line of swimsuits in the Philippines, which was very popular in Europe.

The opening of Puma and New Balance stores soon followed in late 2002 and 2003. In 2004, the company also got the right to distribute the Croakies brand of eyewear retainers.

“As an entrepreneur, I was always jumping at opportunities,” Elizalde tells the Inquirer.

He admits, however, that being new in retail business meant having his share of disappointments and missteps.

Thus, as Elizalde opened more stores, he was closing others that did not work out as well as he had hoped.

“I was perhaps a little too trusting,” Elizalde explains.

Then last year, he decided to totally get out of the store business saying that it took a lot of manpower, and operating and marketing costs to get the store business—especially in the malls—off the ground.

But another opportunity came along in 2004 when his brother spotted a pair of Dupe flip flops from Brazil during a trip to Europe.

Sensing that Dupe will pose a challenge to the popular Havaianas line, Elizalde immediately contacted the owner of Dupe in Brazil to explore the possibility of bringing the flip flops to the Philippines.

Elizalde says that the Tavares de Melo group of Brazil immediately responded and Elizalde got his first shipment in just 50 days.

“As it turns out, we have a lot in common because the family is also into sugar,” Elizalde says.

Dupe came to the picture about five months after Havaianas and Elizalde admits that Dupe is a far second in the flip flops market.

He says, however, that Dupe is not exactly in the same market as Havaianas considering that its line costs about half that of Havaianas, but with the same offer of colors, styles and comfort.

“Dupe has two collections a year of 15 to 20 new styles and in two to three colors each. We try to break them every quarter so there is always something new to offer,” Elizalde says.

Thankfully, the flip flops market is huge enough so Elizalde has no complaints. Business is picking up and the prospects are good.

Learning from past experience, he does not have stand alone stores anymore for Dupe and instead rides on the stores of other athletic or retail shops.

It is not only cheaper in the long run, but is easier to manage, Elizalde says.

“We are slowly spreading our wings and growing on our own,” Elizalde says, “we do not have to do too much marketing.”

Aside from Dupe, the retail division of Elro Commercial and Industrial Corp., has brought in the Ipanema and Grendha brands owned by Grendene SA, the largest manufacturer of shoes in Brazil.

Ipanema is a more expensive line of flip flops while Grendha is in the casual shoes category, offering comfortable and stylish women’s shoes made of PVC.

“We just introduced the Grendha shoes in June and the sales are surpassing our projections,” Elizalde says.

He says it is the challenge of building brands that keeps him looking for more opportunities despite the setbacks and the challenges that he has to go through.

Elizalde says he inherited the trait from his father, Francisco, who also ventured into uncharted territory when he set up his own company in the 1980s with just his secretary as the first employee.

Today, Elro Commercial and Industrial Corp. is involved in food distribution, fast food operation, real estate development and agribusiness, including sugar production and seafood processing.

The diversification into new businesses such as retail distribution and organic fertilizer production was brought about by the volatile nature of the sugar business, and the 40-year-old Elizalde has been leading the charge.

Elizalde, after all, has the most experience in his family as he had a number of small businesses before going for the big time.

He says he used to have about eight outlets of Pansit Malabon Express and he would often prepare bilaos of pansit malabon for delivery to clients if called for.

When he was into seafood trading, he would talk to the suppliers from Palawan and Mindanao himself or go to Navotas to get a good deal on fish.

“I do not mind getting my hands dirty,” Elizalde says.

Elizalde draws on this early experience and his learnings from his three years of managing the export of San Miguel Corp.’s seafood products to build the retail business of the family.

He says he is heavily involved in the operations, and deals with the principals himself. He also has a hand in choosing the styles and types of shoes and flip flops that enter the market.

At the same time, he is exploring the possibility of bringing in even more brands to the country and putting up more businesses.

He has never been more optimistic, and has even gone to the medical transcription business because of the growing demand for business process outsourcing services.

“I am not the type to give up easily,” Elizalde says, “and I also like the excitement of closing a deal and starting things up.”

He adds that he gets his high not so much from the profit, but the challenge of building something and nurturing a brand’s growth.

“It is always about being on the lookout for the next big thing,” Elizalde says.

http://business.inq7.net/money/topstories/view_article.php?article_id=24113

Sinjin P.

October 1st, 2006, 09:42 AM

Philippines now Second World!
http://newsinfo.inq7.net/breakingnews/nation/view_article.php?article_id=23485

THE Philippines is now a “Second World” or “middle class country,” President Gloria Macapagal-Arroyo declared Wednesday evening.

Speaking at the annual gridiron of the National Press Club at the Manila Hotel, Arroyo boasted of a strong economy and a per capita income she said had hit 1,400 dollars this year.

"The economy is showing strong signs of health, not only because of the stock market or the strong peso, but on the fact that at last our people will be enjoying a per capita income of 1,400 dollars this year," Arroyo said.

"Right now, we're not Third World anymore. At 1,400 dollars we are now Second World, a middle class country, and we'll be able to achieve, if we are able to continue the trajectory of (a) one percent decline in the poverty level, we can reach hopefully the First World status by the year 2020," she said.

“If what has been happening during the early years of our administration, that the poverty level has been going down by one percentage point every year, that means that by 2015, we will be able to reduce our poverty level by one half to what it was in 2000,” she added.

"I'm counting on the press to help people become more hopeful of their future because indeed there is much to be hopeful for," Arroyo said.

Sinjin P.

October 1st, 2006, 09:42 AM

GMA: RP now has ‘Second World’ per capita income
http://www.manilastandardtoday.com/?page=politics03_sept29_2006

AT THE pace the economy is growing and the clip at which families are getting out of poverty, the poverty rate in the Philippines may just be halved by the year 2015.

President Gloria Macagapal Arroyo gave this optimistic prediction Wednesday night as she pointed out that the poverty incidence in the country is going down at the rate of one percentage point per year.

Mrs. Arroyo said it would not be far-fetched to see the poverty level being reduced from 34 percent in the year 2000 to 17 percent by 2015.

She said the peso remains strong, the stock market is robust and the per capita income of Filipinos has risen to $1,400 this year.

“The poverty level has been going down by one percentage point every year. That means that by 2015, we will be able to reduce poverty level to one half of what it was in the year 2000 in accordance with our Millennium Development Goals,” the President told public officials, business and political leaders and media practitioners at the annual Gridiron of the National Press Club at the Manila Hotel.

With per capita income reaching $1,400, the President said the Philippines will graduate from being a Third World country to a Second World or middle-class country.

“If we continue a trajectory of one percent decline in the poverty level every year, we can hopefully reach First World status by the year 2020,” the President said.

Exhorting journalists to always uphold fairness, justice, duty and responsibility, Mrs. Arroyo said the press in the country is so free and powerful that it can spur or stunt the growth of the economy and even cause the downfall of governments.

“If the military has the power to topple governments in other countries, in the Philippines, that power belongs to the media,” the Chief Executive said. “You have the power to make or break an economy, because you are so powerful that your prophesies become self-fulfilling.”

The press, she said, “can make the sun shine” and “to make the stock market go down.”

The President thanked the NPC for supporting the Melo Commission which is investigating the killings of journalists and political activities.

In the same affair, NPC President Roy Mabasa urged the President to certify as urgent the bill decriminalizing libel which has been pending with Congress for several years now.

“Decriminalizing libel makes the press unfettered, healthy and vibrant for the good of our society and our country,” Mabasa said.

The NPC president said a criminal libel is not consistent with a democratic society like the Philippines because public servants should be subjected to greater scrutiny. However, he allayed apprehensions that this may spawn a “tyranny of the press.”

FrancisXavier

October 1st, 2006, 11:57 AM

I guess this news^ deserves its own thread..

JAMAICUS

October 1st, 2006, 12:34 PM

External debt drops in 2nd quarter
The country’s total external debt continued to decline in the second quarter as debt repayment outpaced new loans.

Data from the central bank showed that the Philippines’ total external debt declined by 3.8% to $53.9 billion as of end-June compared to the same period last year. The figure is also 2.5% lower from March.

The central bank traced the decline to net repayments by both the public and private sector. This offset upward foreign exchange revaluation adjustments brought about by the weakening of the dollar against the major currencies that comprised the country’s debt stock such as the yen and the euro.

Consolidated public sector external debt fell by $482 million. Similarly, private sector debt also declined by $914 million.

The debt stock, which represents the country’s total foreign obligations, remained heavily biased towards medium- to long-term accounts, comprising 89% of total. These loans had a weighted average maturity of 18 years. Public sector loans had a longer average maturity of 20.5 years compared to the private sector’s 10 years.

The country’s creditor profile remained well diversified, with official creditors, such as the Asian Development Bank, World Bank, and the Japan Bank for International Cooperation, accounting for 39.6 % of the total debt stock.

Foreign holders of bonds and notes accounted for 33.9% while foreign banks and other financial institutions took 20.9% of the debt pie.

The external debt service ratio -- measured as a percentage of the country’s total debt to total exports of goods and receipts from services and income -- declined to 11.5% in the first half from 13.3% last year.

The central bank said this indicates that the economy is growing faster than the rate at which is is accumulating debt.

http://www.bworldonline.com/BW093006/content.php?id=051

Sinjin P.

October 1st, 2006, 12:58 PM

I guess this news^ deserves its own thread..

Feel free to create one :D

JAMAICUS

October 1st, 2006, 01:09 PM

DBS upbeat on Philippines’ fiscal progress

By Doris Dumlao
Inquirer
Last updated 02:14am (Mla time) 09/29/2006

DEVELOPMENT Bank of Singapore is bullish on the Philippines’ fiscal progress but not as upbeat on the country’s economic prospects for the remainder of this year and 2007 in view of waning global demand for electronics products.

In a economics markets strategy report dated Sept. 22, Singapore’s biggest bank said: “The excitement in the Philippines comes not from growth but from the progress being made on the fiscal front.”

On the macroeconomic side, the bank said export growth in the country was peaking in line with the global electronics upswing and stable rise in domestic demand.

“The country latched on to the global electronics upswing only at the tailend of the electronics cycle and by the end of the year, we expect the party to be well and truly over,” the report said.

DBS upgraded its 2006 growth forecast for the Philippines to 5.3 percent from 5.1 percent, but said it did not expect growth to gain momentum next year. It projected the economy’s growth in terms of the gross domestic product at 5.3 percent next year.

Aside from the cooling of the global demand cycle, DBS said consumer spending would likely remain benign in the second half of 2006 as consumers continued to adjust to the expanded value-added tax.

“Political shocks are always possible with the prospects of Charter change and general elections next year,” DBS said, noting however, that overseas Filipino workers’ income remittances should remain firm with fresh job opportunities opened up by various agreements with Japan and the Association of Southeast Asian Nations.

DBS also said the outlook for investments next year looked brighter, partly due to a likely increase in government spending.

On the fiscal front, DBS said an upward revision in the government’s credit outlook or even a ratings upgrade was possible soon, with the budget deficit likely to fall below the target limit of P125 billion, or 2.1 percent of GDP.

It added that the targeted budget deficit of 0.9 percent the GDP appeared attainable, but noted that compromises remained possible with lawmakers looking to avoid a rollover of the annual budget for yet another year.

The bank also noted that with elections scheduled for May 2007, there would be temptation for populist spending.

“However, looking at previous election years, it is difficult to conclusively say that elections consistently provide a boost to either budget or government consumption,” it said.

Privatization efforts are also expected to boost revenues over the medium to the long term, DBS said.

“At worst, this should mitigate any disappointments on the growth front, and at best will make the Arroyo administration’s aim of balancing the budget two years ahead of schedule in 2008 more achievable,” it said.

Given the fiscal outlook, DBS said an upgrade in the government’s credit outlook and maybe even a ratings lift was a “distinct possibility.” With INQ7.net

http://business.inq7.net/money/topstories/view_article.php?article_id=23760

FrancisXavier

October 1st, 2006, 02:46 PM

@Sinjin, im afraid i cant.. i dont have the links, such as EDIT QUOTE, NEW THREAD, etc... this is pissing me off!

FrancisXavier

October 1st, 2006, 02:47 PM

But i dont have the links such as EDIT QUOTE NEW THREAD, etc.. this is pissing me off!

FrancisXavier

October 1st, 2006, 02:53 PM

But i dont have the links such as EDIT QUOTE NEW THREAD, etc.. this is pissing me off!

yellowbell

October 1st, 2006, 03:38 PM

The article „The Zobel-Dynasty“ at the beginning of this thread was taken from my homepage “Literary Bridge Philippines” http://home.arcor.de/be/bethge/englischeseite.htm, which offers a lot of articles about the Philippines - as seen from abroad. I wrote this investigative article in 2002 and I hope that my English was not too clumsy.

Wolfgang

JustHorace

October 1st, 2006, 04:23 PM

FX...here's the thread.

Even though we're delayed by six years, the Philippines managed to achieve Second World status and also establishing itself as a newly-industrialized nation, joining the ranks of Thailand and Malaysia (still behind though). Yippee! We're not Third World anymore!

Philippines now ‘Second World,’ says Arroyo

By Lira Dalangin-Fernandez
INQ7.net
Last updated 09:06pm (Mla time) 09/27/2006

THE Philippines is now a “Second World” or “middle class country,” President Gloria Macapagal-Arroyo declared Wednesday evening.
...
"Right now, we're not Third World anymore. At 1,400 dollars we are now Second World, a middle class country, and we'll be able to achieve, if we are able to continue the trajectory of (a) one percent decline in the poverty level, we can reach hopefully the First World status by the year 2020," she said.

http://newsinfo.inq7.net/breakingnews/nation/view_article.php?article_id=23485

shadow_can2003

October 1st, 2006, 04:49 PM

Dapat maramdaman ito ng mga Pilipino.

JAMAICUS

October 1st, 2006, 04:57 PM

^^ The problem then is distribution..... yet how can the distribution keep up if the population keeps on growing???

JustHorace

October 1st, 2006, 05:11 PM

Nafeefeel ko siya bilang isang middle class citizen ng Pilipinas. Tapos noong nag-immersion ako sa Payatas, yung bahay ng kumupkop sa akin ay kumpleto sa kasangkapan. Dalawa pa nga ang ref eh! Panay pa text ng mga tao dun no! Pero given na yung fact that there are still poor people and that their still quite visible. Pero totoo rin naman yung fact that we're seeing less of them everyday. Kumpara mo kaya noong 1996?

blue_summit1

October 1st, 2006, 06:41 PM

:scouserd: lets drink to that.. well actually we are far way ahead of thailand and malaysia, IF: we only did what is right before.. we filipinos did a lot of mistakes.. that hindered our advancement decades ago..

we're almost there.. we need to think positive.. ang hirap satin mga pilipino..walang contentment.. :dunno: at we always blame someone for our mistakes.. why dont we just do what we can for the country.. be proud and be patient and do your best in building this great nation.. and we'll get there rest assured !!
:)

blue_summit1

October 1st, 2006, 06:46 PM

Askal82

October 1st, 2006, 06:57 PM

Migan

October 1st, 2006, 07:33 PM

sounds good... that's a pretty big claim though...

but then, how do we tell that to the farmers, laborers, and peasants that comprises more than 80% of our 80+ million population?

personally naman, i go outside my house straight to work and experience mordor everyday. why do i always see poorly maintained public facilities and infrastructure, poor public service from low quality public servants, high security risk areas, ugly architecture... polluted air, rivers, and roads, shanty settlements, ridiculous traffic, beggars, grease people, rugby boys, corrupt traffic enforcers, and all this with a complimentary surround sound noise comprised of cars, trucks, tricycles, jeepneys, and "shouting people" in most places that i pass by?

heck even the moment i reach home i see low quality tv shows na puro drama at pacute lang ang pinapalabas and most of them are oriented on teenage sexuality pa. kung hindi naman puro foreign teleserye naman maaabutan mo. then theres the local news wherein mostly bad news naman ang laman. why are there less and less educational, intelligent, and constructive shows being aired?

and why is there an exodus of skilled workers and professionals? bakit nag aalisan na sila into "greener pastures"?

quality of life. i think that should be the basis. let us take a good look at our surroundings muna. first hand experience will definitely tell whether or not we are who we say we are. second world? reality check muna...

There is nothing wrong to be optimistic but please, she shouldn't have attempted another misleading PR stunt here because we know what's going on.i'll have to agree on that as well.

bagel

October 1st, 2006, 07:41 PM

Yeah. Askal is right. 2nd World is kind of a false term these days, a relic from cold war times and is more of a distinction of economic/political models. The First World was the grouping of "western" or industrialized countries that espoused American-style capitalism and their version of democracy. The Second World was a grouping of communist countries, allied with the Soviet Union. The "Third Word" was a term invented to describe countries that were in the peripheries of these two "Worlds." There are other names for these countries-- the non-aligned movment, the Bandung conference countries (of which the Philippines was a member), but really it's not a "status" kind of thing.

But I do agree with Askal that this is more of a PR stint than anything. Yes, things are changing, and we can aspire to the Philippines 2000 of FVR still. And the Philippines is improving by all accounts. Yes, you may see fewer poor people in the streets, but as in developed countries like the USA, in mega cities like New York, we may see fewer homeless and poor people too. The question we fail to ask is, what happens to them? In New York, homeless are being shunted out to outer boroughs, out of sight of businesspeople. In the Philippines, they are "relocated" so as to give the illusion that there are fewer poor people. Out of sight, out of mind.

But yes, with programs like Gawad Kalinga and Habitat for Humanity, more poor people are given homes and something to be proud about. And perhaps the middle class is experiencing better times, but I wouldn't go so far as to say we are a Newly Industrialized Country.

marites4

October 1st, 2006, 07:56 PM

good can they afford traffic lights that work now?

evangelistik

October 1st, 2006, 08:18 PM

Progress takes time. I like the direction that Arroyo is shifting us towards...

We found ourselves in a deep hole, we'll just have to dig ourselves out of it inch by inch.

metrosuburban

October 1st, 2006, 08:39 PM

marites4

October 1st, 2006, 10:25 PM

kiretoce

October 2nd, 2006, 02:23 AM

I hope that they don't rest on their laurels because there's more work to be done.

stephencua

October 2nd, 2006, 02:34 AM

second world from third world.. that sounds nice.. but in the end not that many people are feeling the effects of this.. the population growth has to be controlled..

Lili

October 2nd, 2006, 04:03 AM

What a joke! I thought the distinction of First worlds and Third Worlds are obsolete terms in the 21st century. The 2nd World belongs to the communist countries back in the 50's. At present, the countries are divided according to the level of development or industrialization. There is nothing wrong to be optimistic but please, she shouldn't have attempted another misleading PR stunt here because we know what's going on.

For someone who claims to be politico-economist of international calibre, I'm surprised that GMA still used an outdated term. First world, second world, third world terms are indeed vestiges of post-modern colonialism that emerged during the Cold War. It's embarassing for her to be even using that term to flaunt whatever gains the country has had because it reveals that she is not even updated with international economies of scale and is just trying to win "guapa" points from the people as if they do not know better.

Yey! We're second class! :cheer: Bah humbug. :sleepy:

le Reine

October 2nd, 2006, 04:10 AM

My goodness. GMA may be good in economics but politics ia also important for a president. The terms 1st, 2nd and 3rd world are all obsolete terms and it is not linear and hierarchical as what the president has thought. Besides, 2nd world is only used for the communist bloc. Today, the right term should be NIC (Newly Industrialized Country) or developing country not 2nd world. Anyway, the president is just a human being.

And to those people who still use the obsolete argument of people not feeling the economic gains, please be more creative enough on how you would support your claim. I can say that I'm poor even though I have all the comforts in this world. Actually, I know some wealthy people who still call themselves "poor." In the end, it's just a matter of perception. Whether that perception would force people to act is yet to be proved.

marites4

October 2nd, 2006, 04:10 AM

don't get me wrong I'm glad for the improvements happening after all it has only been a year of implementing fiscal reforms and relatively stable on the political front but we cannot start celebrating yet. Lots of work needs to be done. Third world mentality has to be wiped out fr the citizenry.

le Reine

October 2nd, 2006, 04:25 AM

Hay naku. I think nothing would really change. Kaya I'll just move out of this place. There's no significant development so far.

marites4

October 2nd, 2006, 04:39 AM

^moving out is not the solution. stay and help spread change.

le Reine

October 2nd, 2006, 04:51 AM

marites4

October 2nd, 2006, 04:59 AM

oh i thought you were leaving the PHils.
yeah you can spread change by example.

chixbebe

October 2nd, 2006, 09:33 AM

PHILIPPINE share prices are expected to continue climbing higher this week, lifted by positive economic figures, dealers said last Friday.

However, they added it was not yet clear if the damage caused by Typhoon Xangsane would have an effect on the overall economy.

The typhoon shut down financial markets last Thursday and Friday.

“Accompanied by the strong domestic economic and corporate fundamentals, we should see more accumulation and active window dressing-related buying,” said an advisory from AB Capital Securities.

“We may encounter resistance at 2,600 psychological level, while near term support is at 2,550,” it said.

“Investor sentiment has remained positive, despite some bumps in the road,” said BPI Securities Inc in its own advisory, adding that the immediate target was still 2,600.

For the shortened week to September 29, the composite index rose 25.06 points or by 0.99 percent to 2,556.71 points last Wednesday.

Average daily turnover slipped to 1.81 billion shares worth P2.05 billion ($40.8 billion) from 2.88 billion shares worth P3.21 billion in the previous week.
--AFP

---http://www.manilatimes.net/national/2006/oct/02/yehey/business/20061002bus3.html

heathcliff

October 2nd, 2006, 09:35 AM

If the very people you want to change doesn't want to then what's the use? I would rather change myself and bring change by actions than having endless dabates with poeple who doesn't know what they're talking about. It makes me desparate even more to talk with them. And to those people who keeps on protecting the interests of illegal organizations please be clear on your interests and ideology. You're making us confused. There's nothing wrong in being a communist or socialist for it is not illegal. But removing the current system by other means than what the constitution says is still illegal. There's a difference in that. And please remember that Stalin, Mao, Che and Fidel Castro are all products of the communist system. And so as North Korea, Khmer Rouge, etc. Don't sugarcoat it, they're are all murderers worse than Ferdinand Marcos. And much worse than what you're trying to indict at GMA. So removing the current government by replacing it with something worse then hiding it under the cloak of nationalism is always illogical and stupid! Besides HItler, Mussolini and Hirohito are all nationalists. So for those people who are claiming that they're nationalist, beware! You might end up just like them. Bye people. I've got to search for greener pastures!

There rarely are cases where people concede a point especially when an argument is carried out in the internet. It doesn't mean that one's outlook may not be eventually influenced by the others' views although he may not admit it. After all, if we all agreed on everything then there wouldn't be much use for forums, especially politics forums.

Of course there would always be people who only succeed in being nonsensical and one's instinct is usually to ignore them. But if for nothing else, it should be for the sake of the casual reader who might take their falsities for truths that there is also a need for those who know the facts to participate in the discussion.

heathcliff

October 2nd, 2006, 10:26 AM

The government is painting a rosy picture of the economy. But the bottomline is, the population growth is still one of the highest in the region, & GDP growth one of the slowest. That only means one thing: Infrastructure & public services will continue to cripple. Tanungin nio nalang ang Catholic Church kung bakit....

It's also important for the government to project a good, progressive image of our country. Just imagine how unencouraging to investments would be a negative perception of our economy. It doesn't mean that the government is distorting the truth by such optimism, since many independent entities have also attested to our economic progress.

Peugeot206

October 2nd, 2006, 10:37 AM

who died and made them god.

Nobody made them god. The Singaporeans themselves worked hard to turn their backwater swamp into a global economic powerhouse. As such, they can decide where to put their money and it is only reasonable that they place their money where they think they can get a decent return. They are also entitled to announce why or why not they choose to invest in a country.

When the Philippines is wealthy enough to invest in other nations in amounts that would significantly affect the other economy, then people here can and should make such pronouncements.

The blind nationalism and ignorance of you people is astonishing.

How proud can one stand when one is dressed in rags and holding out a begging bowl, only to curse those giving alms with advice.

JAMAICUS

October 2nd, 2006, 12:59 PM

Peso hits high, Asian currencies dip with yen

Reuters
Last updated 05:44pm (Mla time) 10/02/2006

(UPDATE) SINGAPORE--Asian currencies fell with the yen on Monday but the Philippine peso bucked the regional trend to hit its highest in more than four years, pushed up by inflows as local markets reopened following their closure on Thursday and Friday due to a typhoon.

The peso rose as far as 49.95 per dollar, breaking the key 50-level. It traded at 50.20 per dollar in late Asia trade on Wednesday -- before typhoon Xangsane led to massive power outages in Manila and the closure of local markets for two days.

Strong inflows of remittances, upbeat news on the economy and easing worries about political uncertainty have boosted demand for the peso.

Intervention by the central bank, however, has slowed the pace of peso gains in recent weeks. Some dealers said the central bank was in the market again on Monday, buying dollars for peso, while others said it was less clear.

"I'm not sure if they have intervened today," said a Manila trader. "There has been lots of buying interest for dollar/peso below 50 and there has been some position covering."

Politics remained in focus in Thailand almost two weeks after a military coup, keeping the baht in a tight 37.62 to 37.57 per dollar range.

Former army chief Surayud Chulanont was sworn in as interim prime minister on Sunday. Central bank governor Pridiyathorn Devakula said on Monday he had agreed to take an "appropriate" post in the new cabinet and said the position would be announced later.

"All eyes are now on the nomination of finance minister and there is some speculation this could be Bank of Thailand governor Pridiyathorn -- that would be a positive signal," said Dresdner Kleinwort Asia currency strategist Sabrina Jacobs.

"We see the risk that the new government resorts to a higher degree of protectionism and FDI and portfolio inflows could slow."

Japan's tankan headline diffusion index of confidence at big manufacturers rose to a two-year high of plus 24 in September, versus expectations for an unchanged reading from the plus 21 in June.

But the survey did little to change the outlook for the Bank of Japan to raise interest rates only gradually, helping lift the the dollar to a 5-1/2-month peak at almost 118.40 yen.

The Taiwan dollar hit a nine-month low of about 33.17 per US dollar, while the Indonesian rupiah slipped to about 9,200 per dollar but had reversed losses by late trade.

The South Korean won fell to about 948 to the dollar – its weakest in more than a week -- but it strengthened to 7.9953 per yen its highest in nearly nine years.

INFLATION

Markets also digested the first batch of inflation numbers for September.

Thailand's consumer price index (CPI) rose 2.7 percent from a year earlier, less than expected and slowing sharply from August, reinforcing a view the next move on interest rates will be down.

South Korean consumer prices rose 2.4 percent from a year earlier, compared with a 2.9 percent rise in August, while Indonesia's CPI was up 14.55 percent from a year earlier and below market expectations for a 14.62 percent increase.

Markets in Hong Kong, China and India were closed for a holiday.

http://business.inq7.net/money/topstories/view_article.php?article_id=24256

Migan

October 2nd, 2006, 04:27 PM

And to those people who still use the obsolete argument of people not feeling the economic gains, please be more creative enough on how you would support your claim. I can say that I'm poor even though I have all the comforts in this world.i dont think there is such a thing as an "obsolete argument" with regards to people's thoughts, feelings, and doubts on a certain matter, especially when claims based on personal judgement were conveyed in an informal fashion... unless this thread is all about formal rational arguments. i also think creativity has nothing to do with all this, but personal views only needs to be delivered straightforward, clear, and simple.

if people say they never felt the effects of this unexpected "upgrade" to "second world" status, then we should just respect that regardless of whether or not they do back up their claims or not. it's all about personal opinion anyway.

I can say that I'm poor even though I have all the comforts in this world. Actually, I know some wealthy people who still call themselves "poor." In the end, it's just a matter of perception. Whether that perception would force people to act is yet to be proved.and in the end, it is also about changing the poor people's perception on the standards of living and raising it to a dignified level. maybe then they would act? and nevermind the rich and what the think.

it is a fact that ALL filipino citizens deserve to live with dignity. but what do we see around us? reality is that most filipinos AREN'T getting what they so much deserve. so many filipinos are living below living standards. yes there are efforts to resolve this and of course there are some improvements, but how significant are these? enough to say that our country is REALLY moving on and prospering? did this even make a dent to the ubiquitous poverty plaguing the philippines? can we really say right now that we somehow brought a little dignity to this 80% or so poor majority? so i ask, what "SECOND WORLD" is our president talking about???

surely a lot of people are working hard just to see our country thrive and a lot are optimistic... we all should be, but para sakin lang, it is quite a hasteful move to just announce na we're a "second world" nation nalang ng bigla eh.... parang mahirap ma grasp.... knowing that a lot of people are still suffering from poverty, and even more people are being deprived of opportunities to prosper. kaya nga maraming nag sisi-alisan na sa bansa eh.... obviously. its even harder to grasp just merely by looking at our surroundings... again, obvious naman eh sa isang tingin palang na hindi umuusig ang bansa natin sa paraan at bilis na sana gusto natin.

yes, perhaps little by litte, inch by inch we are headed towards our common goal which is prosperity minus poverty. but like what other people here posted, we still have a lot to do. i think our current economic situation is NOT YET good enough. i think we still have a very long way to go.... so save the bravados for later. mamaya na kapag meron na talaga mapakita at maparamdam sa taong bayan.

marites4

October 2nd, 2006, 05:03 PM

Nobody made them god. The Singaporeans themselves worked hard to turn their backwater swamp into a global economic powerhouse. As such, they can decide where to put their money and it is only reasonable that they place their money where they think they can get a decent return. They are also entitled to announce why or why not they choose to invest in a country.

When the Philippines is wealthy enough to invest in other nations in amounts that would significantly affect the other economy, then people here can and should make such pronouncements.

The blind nationalism and ignorance of you people is astonishing.

How proud can one stand when one is dressed in rags and holding out a begging bowl, only to curse those giving alms with advice.
YOU PEOPLE? and WHAT ARE YOU? AND WHAT DO YOU CARE IF YOU"RE NOT ONE OF US IGNORANT PEOPLE!

kunoL8

October 3rd, 2006, 05:31 AM

we're second world so...we're part of the communist bloc now? sorry for being such a late bloomer - i just saw this article earlier when my sister showed it to me and we were like, what the hell?! arroyo should've known better. i agree with askal and xp. "second world" is such a phrase of the past. ever since the communits bloc broke apart, countries have been classified into their respective levels of industrialization. therefore, the correct terms that should be used are industrialized, NIC, developing. it's freakin' history 101! it's kind of an embarrassment for her to use the phrase in the wrong context. nevertheless, i am very happy that the philippines is progressing. it's high time to step up our game and show the rest of the world that we have what it takes to be a major global player.

dancethingy

October 3rd, 2006, 06:06 AM

Go for it Marites

Louman

October 3rd, 2006, 07:40 AM

Second world classification is limited to communist countries only. If GMA meant we're half way from 3rd world to 1st world, I find this quite hard to believe. We all know how the country is economically. Damn. I regret giving her an 8 out of 10 now. She deserves a 7 at most.

beads_strawberries

October 3rd, 2006, 08:18 AM

This is something we should be proud of. The point of the matter is that we are progressing. No matter how difficult it is to contain political issues to develop and make this nation full of political events and circumstances, the government is still pursuing to move this country towards progress. The economic and fiscal reforms proved to be beneficial to all of us.

The increase in revenue collections, stronger peso which I hope will ultimately sustain to breach the P50 mark and lower prices of basic commodities are just proofs that little by little, we are moving towards progress. Even Merrill Lynch recognized us for being a "success story" this year due to our fiscal and economic reforms.

Hopefully, we can sustain this.

JAMAICUS

October 3rd, 2006, 11:42 AM

Inflation seen below 6% in September
By Des Ferriols
The Philippine Star 10/03/2006

The nationwide inflation rate is expected to go down below the six percent mark in September as the increase in the prices of basic commodities continued to slow down.

The Bangko Sentral ng Pilipinas (BSP) said prices are seen to drop to 5.7 percent to 6.4 percent range in September, consistent with government’s overall projection that price acceleration would ease up in the second half of the year.

As the agriculture sector entered the harvest season in the third quarter, prices of food commodities, in particular, are projected to ease up after a short run-up earlier this year due to the dramatic increase in oil prices.

BSP Governor Amando M. Tetangco Jr. said that the actual inflation is expected to ease further as world oil prices also slowed down.

"Domestic oil prices and food prices are easing alongside a stronger peso," Tetangco said.

Consumer prices slowed down to a lowest level in two years last August.

The August inflation rate brought the average rate for the first eight months of the year to 6.9 percent, way above the government’s target of four to five percent but well within the projected rate of 6.7 to 7.2 percent for the whole year.

"The August rate is further evidence that inflation is on a downtrend which in turn provides support to our expectation that it would hit the four to five percent target by 2007," Tetangco said.

Despite the evident slowdown, however, Tetangco said there are still upside risks particularly in relations to geo-political tensions that could push global oil prices up for another round of increases.

The BSP earlier projected the August inflation to ease to 5.8-6.9 percent as the peso continued to strengthen while energy prices decelerated and sufficient food supply eased the pressure on domestic food prices.

Tetangco said the BSP’s September projection bolstered the full-year expectation of a declining inflation rate in the second semester of the year after prices surged early in the first quarter.

Talks of monetary tightening have subsided but have been replaced by floating ideas that the BSP should now start considering the possibility of easing its current monetary stance, supposedly to encourage bank lending.

According to Tetangco, however, discussing that possibility was premature since the trajectory towards the 4-5 percent inflation target for 2007 has not been clearly established.

"It hasn’t had enough time to show a clear trajectory, we will have to

see in the coming months and if we see the kind of clarity that would satisfy the monetary board then we can maybe begin discussing that," Tetangco told reporters.

The central bank’s policy rates have been held steady at 7.50 percent for overnight borrowing and 9.75 percent for overnight lending since October last year.

http://www.philstar.com/philstar/news200610030701.htm

3cr

October 3rd, 2006, 11:54 AM

Good numbers gone bad
Why relying on GDP as a leading economic
gauge can lead to poor decision-making.
By Joseph Stiglitz
September 25 2006: 8:07 AM EDT
(Fortune Magazine)

Gross domestic product, the leading economic measurement, is outdated and misleading.

Long the standard scorecard for any national economy, GDP has become deficient as a measure of long-term economic health in our resource-driven, globalizing world.

Think about it. It's like grading a corporation based on one day's cash flow and forgetting to depreciate assets and other costs.

In today's business reality, where intangible assets have become increasingly important, cash flow can be a particularly bad indicator of a company's value. A startup can have no cash flow and yet be creating a software program of immense value. A company with positive cash flow can be running itself into the ground as its capital depreciates. Economies are no different.

That's why economists looking for an alternative accounting framework to supplement the use of GDP are considering a new measure: green net national product.

The "green" means that GDP must be reduced to take into account the depletion of natural resources and the degradation of the environment - just as a company must depreciate both its tangible and intangible assets. "Net" national product (NNP) means that there has to be an adjustment for the depreciation of the country's physical assets.

A country that gives away its natural resources will see gross domestic product rise, but gross national product - which focuses on income earned by those inside a country as opposed to what is produced inside a country -- may not rise much, since the value of what is produced accrues to foreigners.

When GDP goes really bad
For developing countries opening themselves up to foreign investment, this is an important distinction. A nation that grows by borrowing will see GDP rise, but much of the increase in income may go back out of the country to pay the interest.

Papua New Guinea is a prime example of the trouble with GDP calculations. When Anglo-Australian mineral company BHP Billiton (Charts) opened the Ok Tedi gold and copper mine in 1984, it was considered a national victory.

The value of the extracted ore showed up in Papua New Guinea's GDP, but scarce comment was made of the fact that almost all income from the mine went to its foreign owners.

Worse still, the mine inflicted huge environmental damage. Its operators discharged 90 million tons of tailings into the local river system, polluting the main source of livelihood for the 40,000 people living in the 120 villages downstream.

BHP was sued in the 90s by indigenous landowners and settled for millions of dollars, but the agreement also indemnified BHP from future damages. The burden of much of the environmental repair was left to the country.

The U.S. is no exception.

America's energy policy has been based on "drain America first"; as we have used up a significant share of our scarce oil reserves, the country has become poorer, even if GDP has done well.

As oil is used up, America may turn increasingly to coal, which has large environmental costs that should be reflected by green accounting. In the case of carbon dioxide and other greenhouse gases -- now traded in Europe -- we can, for instance, put a dollar value on the emissions. Such mechanisms can help us evaluate environmental damage and quantify its impact on the economy.

Bad accounting frameworks are likely to lead to bad decisions. A government focused on GDP might be encouraged to give away mining or oil concessions; a focus on green NNP might make it realize that the country risks being worse off.

But new ideas always meet resistance.

Just as those who benefited from bad corporate accounting practices - like ignoring the cost of stock options - wanted to continue them, the same is happening here. A greener, more balanced accounting framework is an old idea whose time has come, especially if we are going to make globalization work.

JOSEPH STIGLITZ is the former chairman of the Council of Economic Advisers, a Nobel Prize-winning economist, and the author of Making Globalization Work.

_______________________________________

Teves says Philippines must build credibility
Saturday, September 30, 2006

FINANCE Secretary Margarito Teves said the government has to build a good reputation and keep its commitments if it wants the Philippines to enjoy continuous revenue growth and financing assistance for capital outlay.

In the spirit of this view, the finance department is not seeking any more new tax measures next year to boost growth of revenue collections.

Besides, Teves said, Congress will not look at us kindly if we ask for new tax measures next year.

He said lawmakers would have to look into the national government's record in revenue collection first before they would pass any new law. He also exhorted the government to exhaust all present revenue schemes in its attempt to bridge the budget gap by 2008 by increasing its collection effort.

To be able to sustain revenue collection growth and continuous support from overseas development assistance (ODA), Teves said the government needs many things to overhaul the way it handles things.

He said the ODA to finance various projects would continue if the government could prove that projects can be implemented. Why would they give if we cannot absorb the money? he asked.

To make sure that the government has the capability to implement infrastructure projects, Teves said Congress has to ensure that the annual budget is passed and the government should see to it that its line agencies can absorb the amount of resources given them.

Teves said: We make sure that we are matching expectations with reality. If we borrow too much and tell the whole world that we can make use of the money but we don't have the backroom support to absorb it, then it will just be embarrassing. Credibility is important.

A few years back, many were reluctant to extend loans to the Philippines because they were not sure how the country could generate enough resources to support itself and its many obligations, Teves related.

We have to make sure that there are enough revenues to support the system, he said. That gives you confidence as lenders. The question is can we sustain it? And at the back of their minds 2008 is very important because it manifests our seriousness to achieve something that is important, which is balancing the budget.

3cr

October 3rd, 2006, 12:18 PM

This is not totally good news. 2nd world or not, obviously in reality the wealth is not evenly distributed among the people but rather enjoyed by a select minority of the population only. Sana nga lang the wealth/fortunes are better distributed so that the gap between the rich and the poor actually shrinks (not widen) as the article also pointed out. Don't kid ourselves, naghihirap ang sambayanang Pilipino. This is just GMA propaganda once more. Paconsuelo de bobo baga.

RP per capita income highest under Arroyo
http://newsinfo.inq7.net/topstories/topstories/view_article.php?article_id=22670
By Gil C. Cabacungan Jr.
Inquirer
Last updated 07:46pm (Mla time) 09/23/2006

SHE might be the least popular among Philippine heads of state, but Filipinos' fortunes have never been better than under the presidency of Gloria Macapagal-Arroyo -- in terms of per capita income at least.

The Philippines’ per capita income, the share of each citizen in the country's wealth as measured by gross domestic product, is estimated to hit over $1,400 this year from $1,200 in 2004 and $1,040 in 2000, according to government and private economists interviewed by the Inquirer.

But the issue of uneven distribution of wealth remains a thorny issue, according to one of the President's top Cabinet officials.

“We might have a high per capita income, but whether this is distributed equally is a big question,'' said Socio-Economic Planning Secretary Romulo Neri.

Albay Representative Joey Salceda, an Arroyo economic adviser, said 22 consecutive quarters of GDP expansion and slower population growth of below 2 percent have provided the lift in the country's per capita income.

Based on the government's economic growth forecast, Salceda said the Philippines would hit a per capita income of $1,463 by the end of this year based on a GDP of P6.7 trillion, population of 87.4 million, and average peso-dollar rate of 52.4.

At this pace, Salceda said the Philippines could hit a minimum of $1,800 per capita income by 2010.

"Our fighting target is a per capita of $2,800 which would keep us at par with Thailand (per capita of $2,490 in 2004). Matching Thailand is feasibly strategizable,'' Salceda said.

Thailand and the Philippines used to be economic equals until the former's economy zoomed while the latter’s faltered.

Neri said this was the best per capita income level of the Philippines in the post-war era, much higher than the industry boom years of the Marcos era and the bull run in the Ramos years.

Neri said the surge in per capita income over the last five years was made even more remarkable considering that the government started from a low base (close to $900 per capita in the Estrada administration) and the volatile political situation that has kept the President on the edge throughout her tenure. Neri said per capita income should increase faster if the peso-dollar stays at the current average of below 50 for the rest of the year.

But equally important in building per capita income is ensuring that the country's wealth is shared by all, according to Neri.

“This is the reason why the focus of our economic development in the coming years is unclogging the bottlenecks that prevent the economic gains from filtering down to the masses,” said Neri.

This includes higher capital spending to build more railways, airports, bridges, and agriculture facilities while directing more funds to boost social services meant to cut across the bureaucratic gridlock through the efficient distribution of subsidized food, medicine, and health insurance.

While the President has touted the strong peso, low interest rates, and improving fiscal condition as proof of her economic stewardship, her critics have dismissed them as headline statistics that do not reflect the widespread poverty in the country.

chixbebe

October 3rd, 2006, 12:34 PM

Privatization yields P867m, tops ’06 target (http://www.manilastandardtoday.com/?page=business4_oct3_2006)

The Philippines raised P867 million worth of nontax revenues in the first eight months of the year from the sale of properties here and in Japan, exceeding its full-year target of P500 million, the Department of Finance reported yesterday.

The finance department said the government raised P440 million from the sale of its major properties in Japan.

The government has received a ¥480 million service development fee after forging a 50-year agreement with the Nagayama-Taisei consortium for the right to develop the four-story building with a floor area of 2,489-square meter in Nampeidai in Tokyo, Japan. The consortium plans to construct a building worth ¥1.7 billion in the property.

Last year, the government signed a 50-year service development agreements with Berg Co. Ltd. for the Naniwa-Cho property worth ¥759.3 million and Obanoyama property worth ¥449.6 million, both in Kobe, Japan.

Berg plans to spend ¥827.9 million and ¥490.2 million in development fees for the Naniwa-Cho and Obanoyama properties, respectively.

The Philippines plans to auction off its biggest property in Tokyo, Japan within the year as part of Manila’s efforts to raise much-needed revenues to bankroll major infrastructure projects and social services.

The government has finalized the terms of reference of the planned privatization of its 4,361.85-sqm property in the commercial and residential district of Fujimi-cho, Chiyoda-ku in Tokyo, Japan.

The state-run Privatization and Management Office has raised P400 million from the sale of real estate properties in Manila and Makati City in the first eight months of the year.

The government sold its 39,995-sqm south property owned by Manila Gas Corp. in Paco, Manila to Robinsons Land Corp. of taipan John Gokongwei for P573.54 million in March.

It also sold its five-hectare property in Makati City vacated by the International School to Century Properties Inc. of Philippine Special Envoy to China Jose Antonio for P1.43 billion.

The government has received partial payments for both properties.

The Presidential Commission on Good Government, meanwhile, raised P27 million during the first eight months of the year.

sista

October 3rd, 2006, 02:49 PM

naduduling si Gloria nung sinabi nya yan...seriously...

ikra

October 3rd, 2006, 02:51 PM

better tax system imho

tootsjap

October 3rd, 2006, 03:36 PM

DoggMann

October 3rd, 2006, 04:00 PM

JustHorace

October 3rd, 2006, 05:00 PM

tootsjap

October 3rd, 2006, 05:53 PM

Ah, now we can build a top ten excuses on GMA Second World Statement.

10. She is only human.
9. She is only naduduling.
8. It was her usual lapses in judgment.
7. She was just looking for new term/buzzword.
6. ... Anyone?

Jimbu

October 3rd, 2006, 06:12 PM

Congratulations Philippines!!
Finally, a second world country! :cheers2:

Lili

October 3rd, 2006, 06:14 PM

^^ My question is, how come if those rabid oppositionists still call the Philippines a "Third World" country, they don't get as much flak? Give me a break.

There is still a Third World Studies Center in UP? Hello?

TheAvenger

October 3rd, 2006, 06:25 PM

wala lang

metrosuburban

October 3rd, 2006, 07:23 PM

It's also important for the government to project a good, progressive image of our country. Just imagine how unencouraging to investments would be a negative perception of our economy. It doesn't mean that the government is distorting the truth by such optimism, since many independent entities have also attested to our economic progress.

well, not a distortion really but an overstatement. And it makes me wonder really why despite those supposed achievements, we still cant attract investments???

ikra

October 3rd, 2006, 08:24 PM

oh we will... in due time, nothing happens overnight.

marites4

October 3rd, 2006, 08:53 PM

well i thnk GMA just got overly exited about the gdp improving like some of us here get whenever we hear anything positive. IT is better than the gdp declining.
The increased revenue should be used to buy descent traffic lights at every intersection and mandatory driving lessons on traffic regulations to everyone currently holding a drivers liscense. and a ban on styrofoam and plastics the mega fast food chains love using. IN 20 years the PHils will be buried in a filth of plastics and styrofoams and all the investments would have been in vain. AFter all JOliibee is raking in the billions of dollars, any responsibility at all to the environment?

jadebench

October 4th, 2006, 12:28 AM

is there such a "second world" word? i guess second world refers to communist countries!!

3cr

October 4th, 2006, 01:04 AM

3cr

October 4th, 2006, 01:19 AM

Si GMA talaga o humirit nanaman! Hehehe...

FX...here's the thread.

Even though we're delayed by six years, the Philippines managed to achieve Second World status and also establishing itself as a newly-industrialized nation, joining the ranks of Thailand and Malaysia (still behind though). Yippee! We're not Third World anymore!

Philippines now ‘Second World,’ says Arroyo

By Lira Dalangin-Fernandez
INQ7.net
Last updated 09:06pm (Mla time) 09/27/2006

THE Philippines is now a “Second World” or “middle class country,” President Gloria Macapagal-Arroyo declared Wednesday evening.

"Right now, we're not Third World anymore. At 1,400 dollars we are now Second World, a middle class country, and we'll be able to achieve, if we are able to continue the trajectory of (a) one percent decline in the poverty level, we can reach hopefully the First World status by the year 2020," she said.

http://newsinfo.inq7.net/breakingnews/nation/view_article.php?article_id=23485

jadebench

October 4th, 2006, 01:34 AM

Imelda Marcos pics
http://pic20.picturetrail.com/VOL252/1891404/11414419/192736388.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192736390.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192736385.jpg

photos: www.friendster.com/irmarcos888

Lili

October 4th, 2006, 01:41 AM

3cr

October 4th, 2006, 01:55 AM

Curious lang...how is Aimee Marcos (the one on the left of Imee in the last pic?) actually related to the Marcoses?

jadebench

October 4th, 2006, 02:07 AM

about aimee, debate na dito sa forum kung saan ba talaga siya nanggaling!

jadebench

October 4th, 2006, 02:14 AM

more...

http://pic20.picturetrail.com/VOL252/1891404/11414419/192746982.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746978.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746960.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746955.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746927.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746915.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746922.jpg

jadebench

October 4th, 2006, 02:16 AM

http://pic20.picturetrail.com/VOL252/1891404/11414419/192746905.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746933.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746938.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746945.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746950.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746962.jpg
http://pic20.picturetrail.com/VOL252/1891404/11414419/192746970.jpg

Askal82

October 4th, 2006, 03:16 AM

Being optimistic is not bad but exaggerating it to the extent of not able to distinguish between reality and fantasy is really something. Perhaps, fantaseryes are such treats to her after going through the drama of non stop telenovelas in the congress and the senate on primetime T.V.

LordCarnal

October 4th, 2006, 04:28 AM

As for the Aboitiz family from Cebu, they own a shipping company, don't they? And also property ventures. They trace their roots from the Basque minority of northern Spain. They are also Caucasian-looking.

i'd like to know more about the Lhuillier family from cebu.

I've read somewhere that the Aboitizes and the Lhuilliers are somewhat related in the sense that there's an Escaño blood in them.

I've also read that if we speak of Escaño, we would be talking of several generations like the Garcias, Aberasturis, Lhuillier, Aboitiz, etc.. I don't know though if I got this correct.

The Escaños also once owned a shipping line here in Cebu called "Escaño Lines." They also had several other businesses such as the Visayan Electric Company, which is now owned by the Aboitizes.

I've also read that the ancestor of the Lhuilliers is a French.

These families are kind of confusing because I've noticed na maski distant cousin or somewhat related, pinapakasalan..

heathcliff

October 4th, 2006, 08:56 AM

it would have been a text joke classic if it came from ERAP, FPJ or even Noli de Castro. When GMA dished her own kabobohan, somebody makes a lame excuse that she is only human. Excuse me, but if you were an Ateneo Professor who finished post grad abroad this kind of press statement simply is unacceptable. Hey but isn't this the same president who said she will eradicate the communist insurgency with one billion pesos. And eradicate corruption with another billion pesos.

Note that this is the same President who even had to borrow the name of a Sta Rosa Laguna theme park (wala na sigurong ibang maisip) to describe her vision for the Philippines, and yes Enchanted Kingdom is very fitting to describe a people who are screwed but are enchanted and feels good because they were told they now belong to the second World - ah make that Enchanted Second World. Durano should now put in his tourism poster: Welcome to the Philippines: Now a Second World Country.

From Wikipedia:

Today, however, the term is frequently used to denote nations with a low UN Human Development Index (HDI), independent of their political status (meaning that the PRC, Russia and Cuba, all of which were very strongly aligned during the Cold War, are often termed third world). However, there is no objective definition of Third World or "Third World country" and the use of the term remains common. Some in academia see it as being out of date, colonialist, othering and inaccurate; its use has continued, however. [1] In general, Third World countries are not as industrialized or technologically advanced as OECD countries, and therefore in academia, the more politically correct term to use is "developing nation".

Terms such as Global South, less wealthy nations, developing countries, least developed countries and the Majority World have become more popular in circles where the term "third world" is regarded to have derogatory or out-of-date connotations. (emphasis mine)

Needless to say, in the Philippines the term "third world country" continues to be commonly associated with an underdeveloped economy. It's not every Filipino who even knows what politically correct means, much less the politically correct term for underdeveloped countries. It must be more to reach down to the level of comprehension of the poor politically incorrect slobs that the president used the term "second world", rather than to flatter your ego, oh great one with your flawless semantics.

ikra

October 4th, 2006, 09:10 AM

3cr

October 4th, 2006, 10:16 AM

^^ Uy ano to suggestion box for Ate Glo? Hehehe! :hilarious

Imbis na mga propaganda at mga pangakong hindi naman natutupad, sana unang-unang atupagin ay dapat matigilan o mabawasan man lang niya (GMA) ang pangungurakot sa loob ng ating Gobyerno. Duon pa lang siguradong malaki na ang maitutulong nito sa ating bansa. I know it's easier said than done but nobody said it will be easy, but not impossible. Isa lamang ito sa mga pwede niyang gawing programa para maiakyat ang pangkabuhayan ng mga mamamayan ng Pilipinas. Marami pang ibang ihemplong pwedeng maisagawa kaso sasakit lang ang aking mga daliri kakatype eh wala rin namang mangyayari so tama na yung isa muna. If she's able to get rid of corruption in her gov't, I'd be happy to suggest more though even this one will already fall into deaf ears di ba. We may have differing opinions of Ate Glo's presidency and governance, but in the end of the day, we all want the best for our country and the beauty of this forum is we get the opportunity to discuss such matters openly/intelligently. OK gotta go! :runaway:

heathcliff

October 4th, 2006, 10:59 AM

The anti-corruption efforts of the government can only do so much in combating corruption without a corresponding change in our culture. With a people who keep electing corrupt and incompetent politicians for P500, we deserve the government we get. The government as an institution is a reflection of its citizens.

The predominant attitude seems to be that of personal convenience at the expense of our neighbors. Our eagerness and impatience in getting ahead in life prompts us to take shortcuts of questionable ethics. Many of us cannot even practice simple falling in line. Our streets provide a convenient garbage area; our sidewalks are convenient extensions of private property or proudly vendor territory. PUVs violate traffic rules at every opportunity.

And yet we whine about how corrupt the government is.

heathcliff

October 4th, 2006, 11:31 AM

Since the term "third world" is commonly understood not by its politically correct definition but by its derogatory connotation of a poor, underdeveloped economy, it's understandable that the president would use that term as it is understood by most Filipinos.

Migan

October 4th, 2006, 12:11 PM

sme people just feel like their on top of the world sometimes... nice education you have... but dont you think we had better education than you do??? you dont know what your talking about seriously....

people here are expecting too much... they want everything to go their own way, why not think of making use of the increasing GDP that we have? The only thing left for us to do is distribute this wealth evenly and be directed to proper projects. I dont understand why people are so unhappy still... =/ Theres no shortcuts in this world, its as if everyone wants it to be like winning a lotto.

Now if you guys are really smart tell me, since you disagree very much on ate Glo's governance, then how are you going to do it if you were the president? How were you supposed to improve our economy? toot if youre a professor then tell me what your gonna do?hi there! let me answer some of your questions. first of all, i don't think anybody here is claiming to be "smart", having "better education" than anyone else in this forum. i believe everyone here is free to express their thoughts and concerns and that is exactly what you and me have been doing diba? i believe that is the point of this whole forum. if they feel that this or that should be done then let them be, its called freedom of expression. wala naman din akong nakikitang bastusan dito eh.

secondly, what is wrong with people expecting too much? i think we all deserve it anyway. the filipino people have been suffering from poverty for way too long already, and i firmly believe that we all deserve something better than what we currently have right now. masisipag na tao ang mga pinoy at magagaling. pero kayod naman tayo ng kayod at wala namang nangyayari sa pagod natin. bakit? kasi nasasayang lang ang malaking bahagi ng ating perang pinaghirapan dahil sa matinding corruption at sa maling pamamalakad ng ating mga lider. kung ako lang ang tatanungin mo, sa dami ng naoopress at naghihirap ngayon para lang mabuhay, ang mga pinoy na walang kasing dedicated sa kanilang trabaho, pamilya, at bansa ay dapat lang bigyan ng PARAISO kung puwede lang ah.

thirdly, nobody here is expecting immediate results, shortcuts or whatsoever. ang sinasabi lang ng mga tao dito ay huwag naman basta basta magbitiw ang pinakamataas na lider ng ating bansa ng isang salitang WALA NAMANG SENSE. i mean what second world status??? i think people here just want to see REAL PROGRESS... something that is OBVIOUSLY not in our hands yet. something that we are slowly attaining, but is still far away... we're nowhere near that pa so STOP THE SUGAR COATING nalang diba? like what Askal82 said, stop the fantasy roleplaying game and lets open our eyes to reality muna... and

last but not the least, how can we equally distribute this acquired wealth to the people when there is widespread corruption? i think corruption cancels out EVERYTHING. before people can seriously suggest ways and strategies on improving the country, we should FIRST deal with our inner phantoms muna. no matter how brilliant you and your ideas are, as long as corruption is present and widespread, bale wala parin ang lahat ng yan. tama si 3cr eh, DEAL WITH CORRUPTIION first and properly clear all issues that needs to be cleared and then let's talk about business!

The anti-corruption efforts of the government can only do so much in combating corruption without a corresponding change in our culture. With a people who keep electing corrupt and incompetent politicians for P500, we deserve the government we get. The government as an institution is a reflection of its citizens.

The predominant attitude seems to be that of personal convenience at the expense of our neighbors. Our eagerness and impatience in getting ahead in life prompts us to take shortcuts of questionable ethics. Many of us cannot even practice simple falling in line. Our streets provide a convenient garbage area; our sidewalks are convenient extensions of private property or proudly vendor territory. PUVs violate traffic rules at every opportunity.

And yet we whine about how corrupt the government is.that may be true, and i think both the government and its citizens are equally at fault. BUT, the president herself should become a big role model for all filipinos. personally, i did not see her do that at all.... i saw her do the opposite though. that's why there are a lot of unresolved issues right now and that is why she lost a significant portion of the public's trust. lack or transparency and issues of power tripping will always leave a bad mark to us citizens... no doubt about it. there are a lot of issues that really needed some clearing up, but those issues were neutralized instead of being properly resolved. we cannot move on like this. may kasabihan nga na "kung ang taong nakaupo sa pinakamataas na position ay corrupt, susundan at magiging masamang ehemplo siya sa kanyang mga tao at siyang gagayahin"... or something like that ... heheh... can anybody retranslate that pls. parang mali eh... "tao lang din ako" tulad ng ating pangulo :)

paulkrps

October 4th, 2006, 12:51 PM

^^ Hey, thanks for those pictures @jadebench. The Marcoses should have their own thread and not merged with the Zobels.

I was curious how they all look like now. Borgy is the most good-looking among Imee's sons. It is quite interesting to see that Bongbong and Irene have allowed their hair to turn grey while Imelda's pompadour is still as black as black india ink. hehe.

why not just rename this thread as "The Dynasties" so as we can also include all these families which have been in power in their respective provinces. this will make it more interesting and varied.

OtAkAw

October 4th, 2006, 01:43 PM

Oh goodness, this might turn into a new GMA-bashing/supporting thread.

Second World? Aba congrats mga kababayan kung totoo yan! Di ko pa kasi nafi-feel eh, kayo ba nafi-feel nyo? Maybe we have to wait before we can see the difference of being in 2nd world from the third...

OtAkAw

October 4th, 2006, 01:51 PM

who brigged your account?

Sinjin sent me the bad news, so siguro siya.

Sinjin P.

October 4th, 2006, 02:30 PM

^ I (or the mods in particular) cannot brig/ban accounts, we simply request and the admins approve our request

tootsjap

October 4th, 2006, 03:16 PM

tootsjap

October 4th, 2006, 03:34 PM

Taz08

October 4th, 2006, 03:47 PM

ako nafifeel ko na na 2nd World Country na ang Pilipinas....

Lili

October 4th, 2006, 04:16 PM

Top ten excuses on GMA Second World Statement

10. Sapagkat sya ay tao lamang (xp)
9. She is only naduduling (sista)
8. It was just her usual lapses in judgment (doggmann)
7. She was just looking for new term/buzzword (cosmomanila)
6. Alam ng lahat na masama ang ibig sabihin ng third world kaya hindi nakapagtataka na gamitin ni GMA and second world kasi alam ng lahat na ang second world is better than third world. (heathcliff) Gets Nyo!!!

5. .... Anyone?

Akala niya Second World means Middle Class. And she was pandering to the middle class this time who she thought does not know the difference. Or maybe she really does not know the difference? Ang dami niyo kasing bumabatikos, wala na siyang time magbasa ng The Economic Review.

demented_pigeon

October 4th, 2006, 04:42 PM

nananatili akong iskeptiko sa batayan ni PGMA para sabihin niyang "2nd world" na ang bansa natin. sa una'y nakatutuwa dahil mabibilang na ang pilipinas sa mga masasabing mga bansang industriyalisado. pero...
1. kung batayan ba naman ang isang istatistika, aba hindi ako magtataka kung mayaman na tayo... aba! ang daming kapitalista at sugapang mga haciendero sa pilipinas katabi ng milyun-milyong mga naghihikahos na mga anak-pawis, magbubukid, mamalakaya, at mga iskwater (lumpen, ayon sa iba...so chaka!). sapat na talagang ibalanse ang kinikita ng mayayaman sa mahihirap at ipagmukhang "2nd world country" na tayo.
2. tila akma ngang 2nd world tayo... dahil sa kasalukuyan, sa tinagaltagal ba namang "malaya" kuno ang pilipinas, e 2nd class citizens pa tayo... aba di na tayo 3rd class citizens! wipee!
3. sa pagkakaalam ko, halos service sector ang bumubuhay sa atin at wala yatang plano ang ilan sa mga mayayaman nating mamuhunan sa mabibigat na industriya (heavy industries) o sa industriyalisasyon ng kanayunan na nakatuon sa pagtugon ng pangangailangan ng bayan at hindi lamang para kumita ng export dollars. * oh by the way, mabuti't may mga nurses pa tayo at mga ofw at mga callcenter agents na kahit papaano napapanatili nila ang ekonomiya ng pinas... kaso hanggang doon na lang ba? paano ang mga enhinyero, siyentipiko, atbp na mga trabaho na mabibigyang pagtuon lamang kung LEHITIMONG INDUSTRIYALISASYON ang pinaiiral.

siguro sa pagiging "2nd world country" natin kuno, may kaakibat na pagbabago sa uri ng pamumuhay ng mga tao sa kanayunan. kung hanggang mananatiling gutom, mangmang, walang pulitikal at ekonomikal na kapangyarihan ang higit sa nakararami ng Pilipino, walang kuwenta ang titulong iyon. para sa marami nating kababayan na hindi napapansin ng mga burgis na gaya natin, isang kahig isang tuka pa rin ang buhay.

jadebench

October 4th, 2006, 05:13 PM

why not just rename this thread as "The Dynaties" so as we can also include all these families which have been in power in their respective provinces. this will make it more interesting and varied.

your right...

mods, where are you?

bitoy

October 4th, 2006, 05:47 PM

I've read somewhere that the Aboitizes and the Lhuilliers are somewhat related in the sense that there's an Escaño blood in them.

I've also read that if we speak of Escaño, we would be talking of several generations like the Garcias, Aberasturis, Lhuillier, Aboitiz, etc.. I don't know though if I got this correct.

The Escaños also once owned a shipping line here in Cebu called "Escaño Lines." They also had several other businesses such as the Visayan Electric Company, which is now owned by the Aboitizes.

I've also read that the ancestor of the Lhuilliers is a French.

These families are kind of confusing because I've noticed na maski distant cousin or somewhat related, pinapakasalan..

That's how it was during the olden times. Spaniards marry only Spaniards even if they are related.

ryanr

October 4th, 2006, 07:47 PM

marites4

October 4th, 2006, 10:11 PM

well gma did go to school in the 60s :lol: when 2nd world meant countries like Spain, Skorea, Brazil. he he masyado lang mga young ang forumers dito.
and third world is still so widely used by developed people to connote developing people or subpar.

bagel

October 5th, 2006, 01:00 AM

But even in the 60s, "2nd world" meant Cuba, Soviet Union, Poland, East Germany, etc.

In the 60s, Brazil was a 3rd World country.

TheAvenger

October 5th, 2006, 01:02 AM

^ I (or the mods in particular) cannot brig/ban accounts, we simply request and the admins approve our request

i am worried that about a scenario, if moderators were very much pro
phil govt admin and I am always critical of the phil govt admin, is it possible that I may be banned someday from the SSC forum for some other reason.?

anyhow, nowadays to play safe I will just read SSC political items and refrain from making any comments.

marites4

October 5th, 2006, 01:07 AM

^ I (or the mods in particular) cannot brig/ban accounts, we simply request and the admins approve our request

But you were the one that requested it? Don't you get a warning first via PM before you get brigged or banned?

marites4

October 5th, 2006, 01:12 AM

really? When i was in highschool in the 80s I was though second world was middle between first and third and countries such as S korea, taiwan, brazil Spain ETc . constitute such. Oh well I must have had very inept teachers.

TheAvenger

October 5th, 2006, 08:09 PM

But even in the 60s, "2nd world" meant Cuba, Soviet Union, Poland, East Germany, etc.

In the 60s, Brazil was a 3rd World country.

Baka kasama tayo sa Lost World.

3cr

October 6th, 2006, 12:02 AM

Philippines now ‘Second World,’ says Arroyo[/SIZE][/COLOR]

By Lira Dalangin-Fernandez
INQ7.net
Last updated 09:06pm (Mla time) 09/27/2006

THE Philippines is now a “Second World” or “middle class country,” President Gloria Macapagal-Arroyo declared Wednesday evening.

"Right now, we're not Third World anymore. At 1,400 dollars we are now Second World, a middle class country, and we'll be able to achieve, if we are able to continue the trajectory of (a) one percent decline in the poverty level, we can reach hopefully the First World status by the year 2020," she said.

http://newsinfo.inq7.net/breakingnews/nation/view_article.php?article_id=23485
Since the term "third world" is commonly understood not by its politically correct definition but by its derogatory connotation of a poor, underdeveloped economy, it's understandable that the president would use that term as it is understood by most Filipinos.

Well aside from the 2nd World terminology/statement, duon sa hirit niya na "If we are able to continue the trajectory of (a) one percent decline in the poverty level, we can reach hopefully the First World status by the year 2020," lalo akong napailing. What more propaganda and pakunswelo de bobo nanaman. C'mon who is she kidding? Get real Ate Glo! Magpakatotoo ka naman! Sorry to say you're not living in fantasyland!

sandrn

October 6th, 2006, 03:56 AM

double post

sandrn

October 6th, 2006, 03:59 AM

The reason why the Philippines was ranked 71st in competitiveness (way under rated) was because the organization that conducted the ranking WEF (World Economic Forum) is a partner of the Makati Business Club (MBC), a tax-cheater critic of the Arroyo Administration. Another reason for such ranking was that the MBC-WEF had intended to scare away potential foreign investors out of fear of competition.
A crab-mentality indeed. A crab that is rotting.

RP No. 71 in competitiveness
By TONY LOPEZ
http://www.abs-cbnnews.com/storypage.aspx?StoryId=52376
The Philippines is No. 71 in the world in terms of competitiveness. That is supposed to be good news.

In 2005 the Philippines ranked 73. So the country improved its competitiveness. A two-rung gain doesn’t mean much. At No. 71, the Philippines is the least competitive country in the ASEAN, outside of Vietnam, No. 77 and Cambodia, No. 108.

However, Vietnam and Cambodia have seldom been competitors to the Philippines in terms of attracting investors.

Manila’s competitors are Thailand, No. 35, Malaysia, No. 26 and Indonesia, No. 50. Singapore, at No. 5, of course, is out of the Philippines’ league.

But can you believe that Indonesia is more competitive than the Philippines? That country has very few English-speaking workers and is notorious for its red tape and the corruption of its government, while its infrastructure is no better than Manila’s.

On the other hand, the Philippines has a large English-speaking pool of workers and professional managers. The amenities are excellent. For $1,000 a month, you can live like a king in an upscale village with security guards, maids, drivers, and even a caregiver.

And the Philippines has the best and most innovative wireless phone system in Asia, thanks to cellular giants PLDT/Smart and Globe. It also has the most dynamic airlines, thanks to Philippine Airlines and Cebu Pacific, both of which are in expansion mode.

On the fiscal side, Manila has posted budget surplus, resulting in a higher credit rating, a booming stock market, and greater investor confidence.

So why does the Philippines rank lower than Indonesia? Blame the Makati Business Club, the partner of the World Economic Forum in making its annual competitiveness rankings.

It used to be the MBC ranked the Philippines among the top 40. In fact, for many years, under President Estrada, the country was even ranked No. 35. Now under President Arroyo, the country has suddenly fallen to below 70.

Why? The reason: MBC doesn’t like Arroyo, an economist who is proving to be a strong leader and has led the country to five and a half years of consecutive economic growth, something that has not happened in the last quarter century.

Why doesn’t the MBC like Arroyo? Simple: The President has proved to be intractable. She doesn’t like to give tax incentives to big businesses like PLDT/Smart and Globe Telecom for engaging in a business that is already very profitable. Such incentives have amounted to P50 billion over the years.

During Estrada’s time, Globe and Smart were given tax incentives for operating a cellular service, which is hugely profitable. Giving them incentives is like giving a Mercedes car for someone who already drives a Porsche.

Now, Arroyo thinks that’s foolish. She suspended the grant of tax incentives for Smart and Globe’s 3G cellular services.

No wonder, when the WEF came asking for how is the Philippine competitiveness, the MBC, which is under the influence of the Ayala family, which owns Globe, gave the country very poor marks.

There is perhaps another reason why the Philippines is rated poorly by its own businessmen. They don’t like competitors.

In the latest WEF survey, Switzerland is the world’s most competitive economy in 2006-2007, overtaking Finland and Sweden, and replacing the United States, which dropped to sixth position, according to Augusto Lopez-Claros of the Forum.

Switzerland’s top ranking reflects a combination of a world-class capacity for innovation and the presence of a highly sophisticated business culture, Lopez-Claros explained. He points out: "The country has a well developed infrastructure for scientific research, with close collaboration between the leading research centers and industry. Companies spend generously on research and development. Intellectual property protection is strong and this has helped spur high levels of technological innovation, as measured by per capita patents registration, for which the country is ranked sixth in the world."

E-mail tonylopez@biznewsasia.com

sandrn

October 6th, 2006, 04:04 AM

Strong peso chops P17B off RP interest bill
http://www.abs-cbnnews.com/storypage.aspx?StoryId=52289

The Philippines saved P17 billion ($340 million) in interest payments in the first eight months due to the peso's bull run, Budget Secretary Rolando Andaya said on Thursday.

The peso hit its highest level in more than four years this week on the back of upbeat economic news, easing political worries and strong remittance flows.

By 0340 GMT (11:40 a.m. in Manila), the currency was trading at 50.025 against the dollar after breaking through the key psychological level of 50 per dollar on Monday, hitting a peak of 49.88 on Tuesday.

Andaya said savings from a strong peso could be used to help replace infrastructure ruined by Typhoon Xangsane, which ripped through the Philippines last week, killing 110 people and causing more than P3 billion in damage to agriculture and property.

The Philippines, Asia's largest debt issuer after Japan, taps the domestic and overseas debt markets regularly to fund its budget deficit. In turn, interest payments account for about a third of the government's annual budget.

But the Southeast Asian country has cut back on borrowing this year after weaker-than-expected spending and improving tax revenues produced four months of budget surpluses.

Total debts of the central government eased 0.5 percent to 3.998 trillion pesos in June.

The government has passed fiscal reform measures, including a law broadening and raising the national sales tax, in a bid to raise revenues, cut debt and balance the budget by 2008.

Andaya said on Wednesday he would be satisfied with a budget deficit this year of P100 billion to P110 billion, at least 12 percent below an existing target. Reuters

3cr

October 6th, 2006, 04:13 AM

Just reposting this article I came across from the Gloria Thread. Very well said. Thanks for the post Tootsjap. :) :) :)

Making patol
Boo Chanco Philstar 10/06

Incidentally, I don’t know who is the speechwriter who made Ate Glue declare that we are no longer third world… that we are already second world. That is plainly stupid and I don’t know why Ate Glue read that part of the speech. This way of classifying countries has Cold War roots and nothing to do with national income. Second World does not refer to middle income countries. A quick Google check would have told them that.

For a refresher, First World refers to the Western economies like the US and Western Europe and of course, Japan. Second World refers to the communist or centrally planned economies, mostly no longer in existence with only Cuba and North Korea still around. Third World is the rest of us in Asia, Africa and Latin America with so called developing economies.

Countries don’t go from Third World to Second World unless Ate Glue thinks the NDF of JoeMa Sison will soon take control of government. Like Singapore and South Korea, countries go from Third World to First World. Malaysia also talks about becoming First World. Not Second World. Our problem is we think second best is puede na, kaya siguro the speechwriter thought a way of dramatizing progress under Ate Glue’s watch is to report that we are now Second World. Segunda manong pag-iisip!

In the same way, Bunye must realize that his ecstatic announcement about the country’s per capita income rising to $1,400 is nothing but pure unadulterated spin. Sa Pilipino, napaka bilog na bola. Siyempre naman ano… with a stronger peso, that’s simply the conversion effect to dollars… smaller divisor via-a-vis the exchange rate. That OFW rushing to the money changer to convert his dollars to pesos before the peso strengthens some more could have told him that. The higher per capita income in dollar terms is also meaningless in the light of record high hunger and self rated poverty rates.

Gaya nga ng sabi ni Ate Glue, " maganda ang litrato ng economiya" (the economic picture looks good) ngunit "kailangan tignan muna natin ang malawak na litrato" (we have to look at the bigger picture…) kahit na "gumaganda ang hula ng mga financial institutions sa atin" (even if the forecasts of financial institutions are getting better).

Kung ako si Ate Glue, "kailangan iguhit ang makipot na linya" (need to draw a fine line) between reality and fantasy, between propaganda and truth and henceforth instruct her speechwriters not to embarrass her with stupid literal translations from technical English to street Tagalog. Then again, Ate Glue should know better than to mouth them too. She shouldn’t "make patol". Kadiri to death kasi, lalo na nung sabihin niyang si Pacquiao ay may matulis na utak (sharp mind). Agad tuloy naiisip ng mga nakikinig na di lang yun ang matulis kay Manny.

Based on what I heard Tuesday evening, the German ambassador speaks better Tagalog than Ate Glue. Or maybe he just has a more literate translator/speechwriter. Siguro, di galing sa Asumption.

3cr

October 6th, 2006, 04:25 AM

Investors spooked by govt flip-flop–Favila
By Rafael S. Santos
Manila Times
http://www.manilatimes.net/national/2006/oct/07/yehey/business/20061007bus3.html

THE Department of Trade and Industry on Friday admitted some investors are still spooked by the country’s perceived backtracking on key economic policies despite government assurances to the contrary.

Trade Secretary Peter B. Favila told reporters that some companies with local interests have put expansion plans in the backburner, taking a wait-and-see attitude instead.

“Some companies have put their expansion plans on hold because of this [uncertainty],” he said.

Favila added that foreign businessmen have taken the government to task for its sudden policy shifts, saying the country must put together a more coherent economic policy structure and avoid changing the rules in mid stride.

“Businessmen are asking: are you changing the rules again? We have to hold until we see the real picture,” Favila said.

His statement comes as the government held consultations with academe and various business groups in a bid to remedy the Philippines’ sagging economic competitiveness.

The DTI chief also urged legislators to fast track key measures that would help streamline the country’s economic management structure, which has been a constant cause of concern and confusion for investors because of the overlapping functions and time-consuming pencil pushing it entails.

“We have to get the rationalization bill up and running, but, at the same time, we must stay competitive and not lose our edge due to the harmonization drive,” Favila said.

He added that the country must justify its competitiveness mark by benchmarking it against neighboring countries. The Philippines ranked 71st out of 128 countries in terms of economic competitiveness, according to a recent World Economic Forum survey.

The Joint Foreign Chambers earlier stated that the country could triple its foreign direct investment flows if the government would institute some key changes and stick to previous policy decisions.

It said a $6-billion investment haul is not beyond the country’s grasp, but added that the Philippines must be ready to make some tough decisions. The country took in $1.1 worth of foreign investment last year, and expects to double the number this year.

3cr

October 6th, 2006, 04:39 AM

sme people just feel like their on top of the world sometimes... nice education you have... but dont you think we had better education than you do??? you dont know what your talking about seriously....

Now if you guys are really smart tell me, since you disagree very much on ate Glo's governance, then how are you going to do it if you were the president? How were you supposed to improve our economy? toot if youre a professor then tell me what your gonna do?

O eto pa some more suggestions for Ate Glo...

RP told to shape up to increase FDIs
By Rafael S. Santos
Manila Times: http://www.manilatimes.net/national/2006/oct/06/yehey/business/20061006bus3.html

THE Philippines could breach the $6-billion mark in total foreign direct investments (FDI) starting next year up to 2010 if it would implement vital programs that will spur increased economic activity in the country, a foreign investor group said Thursday.

The Joint Foreign Chambers (JFC) on Thursday submitted proposals to the government on vital issues of concern to foreign businesses in the country and recommended measures that would help the country’s competitiveness and increase FDI flows.

Ahead of the country’s first competitiveness summit in Malacañang later today, the JFC provided three-investment projection models—pessimistic, status quo and optimistic.

The pessimistic model warned that if vital programs to spur economic development are not met, the country will stand to earn only $1.1 billion in FDI inflows, the same figure it registered in 2005. The model stressed that the government must act on concerns on the country’s power sector if it wants to prevent zero investments in the sector from 2007-2010.

The mining sector would also register a dismal growth rate as a result of inaction, as investors are apparently still stung by the government’s perceived inability to honor its contracts. This is a result of the recent cancellation of a mining summit due to apprehensions that the country might backtrack on key components of its mining sector development agenda, under pressure from lobby groups and environmentalists.

The status quo model, on the other hand, showed the country breaching the $4.5 billion in FDIs, while the optimistic model estimate has the country earning upwards of $6 billion in average FDIs over a three-year period starting next year provided the government gets its act together.

JFC has recommended that the government stay on course with its mining act law and that the focus should be on the implementation of its provisions. The group also lobbied for the rationalization of all mining promotion entities, while also espousing the simplification and speeding up of permitting systems.

For the country’s burgeoning IT and BPO sector, the foreign chambers recommended the improvement of the English-language efficiency as well as the improvement of the college curriculum to incorporate more technical courses, as well as enforce stricter IPR protection.

For the energy sector, the JFC recommended the faster privatization of the sale of Genco and Transco assets accelerate promotion of new and renewable energy sources, and a shift from the traditional thinking on the financing of power projects.

The foreign chambers also batted for the removal of restrictions on foreign investments, a massive improvement in governance and transparency of present resource allocation, increasing the education budget and policy consistency, among others.

On the infrastructure side, the easing of foreign ownership/management restrictions, the JFI recommended improvement of transportation facilities in and around Metro Manila, and the opening of domestic freight to foreign competition.

Trade Secretary Peter Favila was on hand to receive the recommendations, and expressed optimism that the government can effectively implement its development objectives, which includes the rationalization of government agencies to create a more harmonized structure.

“We are still batting for the harmonization bill, just as long as it won’t affect our country’s competitiveness,” he said.

Favila also addressed concerns foreign businessmen have raised over the government’s seemingly changing the rules in mid stride, adding that some companies have put their expansion plans on the backburner due to the perceived instability of the government’s policies.

German Chamber of Commerce EVP Henry Schumacher, however, expressed that the government must first remove roadblocks in order for the ambitious ploy to attract more FDI’s to work.

“The government must remove some barriers,” he said.

3cr

October 6th, 2006, 05:18 AM

2nd world daw...how can we be?
Govt eyes cheap power
By Joyce Pangco Pañares
Manila Standard
http://www.manilastandardtoday.com/?page=politics1_oct7_2006

PRESIDENT Gloria Macapagal Arroyo has ordered the Department of Energy and the National Power Corp. to come up with measures that will result in cheaper power rates and ease the country’s standing as having the second most-expensive power rates in Asia.

But the order, can only be achieved with the construction of expensive power plants in the next four years after a energy department study showed that the country will only have enough power until 2010.

“The Philippines means business, and this President is willing to listen to new ideas and new ways of doing things. We want to be able to provide cheap power not only to big businesses but most especially to ordinary consumers as well,” Mrs. Arroyo said during the first National Competitiveness Summit held at the Palace yesterday.

But Energy Secretary Raphael Lotilla admitted that the order to lower power rates can only be effective if there is enough power.

“The government’s Power Development Plan estimates that there is sufficient energy supply up to 2010 to 2011 only. Hence, contingency plans have to be set in place immediately, considering that it takes at least four years to construct major power plants,” Lotilla said.

Last week, the entire area of Luzon experienced a power blackout after electric lines were downed by typhoon Milenyo.

At the same time, the Philippine Electricity Market Corp., the company running the spot market for electricity, announced that the country will again experience massive blackouts beginning November.

PEMC vice president Mario Pangilinan said the blackout will be caused by the closure of the Malampaya gas platform, which supplies natural gas to the 1,200-mw Ilijan plant and the 1,500-mw Sta. Rita/San Lorenzo plant, both in Batangas.

The 25-day shutdown, which is part of the maintenance check conducted once every five years, will deprive Luzon of 2,700 mw of electricity.

The 1,200-mw Sual power plant in Pangasinan has been operating at half capacity and will continue to do so until March 2007.

“The Department of Energy assures that contingency plans are in place, including the re-activation of idle power plants and the development of alternative fuel sources,” Lotilla said.

Last month, no less than Economic Planning Secretary Romulo Neri hit the energy department for the agency’s “slowness and bureaucratic ways” in promoting alternative energy sources.

Despite the looming threat of power shortage, Lotilla reported that in line with the President’s order to achieve cheap power rates, an agreement was signed with the Lopez-owned Manila Electric Co. for an open access program.

“This Customer Choice Program of Napocor and Meralco will result in the immediate reduction in energy costs for some 500 industrial firms with at least 1 mw consumption. The time of use rates given to these firms will be lower since they will shift their power intensive consumption time to the off-peak period,” Lotilla said.

The department official explained that industrial firms can save at least 44 centavos per kWh and as much as 77 centavos per kWh under the off-peak rate program.

Lotilla also announced that guidelines are now being prepared for the special power rates to be implemented in economic zones and free ports such as Subic and Clark.

3cr

October 6th, 2006, 05:20 AM

Eto ba ang 2nd World by GMA's definition?

Private sector overwhelmed by gov’t infrastructure needs
By Marianne V. Go
The Philippine Star 10/06/2006
http://www.philstar.com/philstar/NEWS200610060708.htm

Private sector participants to yesterday’s Government Infrastructure Forum were overwhelmed by the government’s infrastructure wishlist, noting a lack of focus and concrete assurance about the implementation of projects.

Former Finance Secretary Roberto F. de Ocampo who is now with the Asian Institute of Management (AIM) pointed out that the government’s wishlist is "too long" and needs "more focus."

Former Central Bank Governor Jose L. Cuisia Jr., who is now with Philamlife, noted that there were "too many details" but a lack of assurance about implementation which Cuisia stressed is the "make or break" factor.

Philippine Institute for Development Studies (PIDS) senior research fellow Gilberto M. Llanto likewise agreed that the government’s proposed infrastructure projects were simply a "long list and we don’t know which are the priorities."

The private sector, Llanto said, should have been given information that would convince them to participate in such infrastructure projects. Most of the infrastructure projects presented, Llanto said, offer low rates of return for private sector participants.

Government, likewise, Llanto explained, must also show to the private sector that it can complete outstanding vital projects such as the North Edsa linkage of the MRT and LRT as well as the connection of the South Luzon Expressway (SLEX) to the Southern Tagalog Arterial Road (STAR).

Lastly, Llanto advised, government must shore up its revenues.

Government, Llanto elaborated, needs to have a strong fiscal position to finance its part in its infrastructure program as it cannot rely on the private sector to finance missionary projects.

American Chamber of Commerce director John Forbes, for his part, acknowledged the challenges faced by the government in realizing its infrastructure program. However, Forbes stressed that putting up the necessary infrastructure is vital to the Philippines’ competitiveness.

The Government Infrastructure Forum held Wednesday afternoon was intended to bring together the various government agencies and the private sector to hopefully cooperate on various infrastructure projects.

The forum was hosted and participated in by several business organization such as the Amcham, Bishops-Businessmen’s Conference, Philippine Exporters Confederation, Makati Business Club and Federation of Filipino Chinese Chamber of Commerce and Industry and several others

kevinb

October 6th, 2006, 10:20 AM

Baka kasama tayo sa Lost World.

:lol:

Question: Now that we're considered as a 2nd world country, though we're not communist, are we on the track of becoming again one of Asia's Tiger Economies?

heathcliff

October 6th, 2006, 10:29 AM

that may be true, and i think both the government and its citizens are equally at fault. BUT, the president herself should become a big role model for all filipinos. personally, i did not see her do that at all.... i saw her do the opposite though. that's why there are a lot of unresolved issues right now and that is why she lost a significant portion of the public's trust. lack or transparency and issues of power tripping will always leave a bad mark to us citizens... no doubt about it. there are a lot of issues that really needed some clearing up, but those issues were neutralized instead of being properly resolved. we cannot move on like this. may kasabihan nga na "kung ang taong nakaupo sa pinakamataas na position ay corrupt, susundan at magiging masamang ehemplo siya sa kanyang mga tao at siyang gagayahin"... or something like that ... heheh... can anybody retranslate that pls. parang mali eh... "tao lang din ako" tulad ng ating pangulo :)

Issues are resolved through legal processes, and so far the president has abided by those legal processes. If people don't like the way the legal system works, there are avenues to change them, but definitely not through shortcuts.

JAMAICUS

October 6th, 2006, 10:33 AM

Arroyo: No action on peso, but support for exporters

Inquirer
Last updated 02:30am (Mla time) 10/06/2006

PRESIDENT Gloria Macapagal-Arroyo said Thursday she sympathized with exporters hurt by the peso’s rise but had no plan of halting the peso’s rise, which has boosted her administration’s image locally and abroad.

“We share the concern of the export industry over the continued strength of the peso but, as a policy, we leave it to market forces to determine the true value of our currency,” Arroyo said in a speech to foreign business chambers in the Philippines.

Exporters earlier warned the government they might not meet its export target of $50 billion this year because of the quick rise of the peso.

As the peso strengthens, exports become more expensive to foreign buyers and consequently less competitive in international markets.

The peso has risen about seven percent since late June on the back of upbeat economic news, easing political worries, strong flows of money remittance from overseas Filipinos, substantial foreign investments, and improving government finances.

For the first time in four years, the peso on Tuesday pierced the key psychological level of 50 to the dollar and hit a high of 49.88 to the greenback. On Thursday, it closed at 50.02 to the dollar, hardly unchanged from Wednesday’s finish of 50.01.

Arroyo said the government would not intervene in the foreign currency market but her team of economic advisers led by Trade and Industry Secretary Peter Favila would come up with concrete measures to enhance the competitiveness of the export sector in areas like wages, infrastructure and other cost factors.

“They will balance out the situation and maintain a business environment that would spur more jobs and better infrastructure,” she said.

Arroyo is scheduled host this Friday at the Palace a meeting of government officials and business representatives who will draw up measures to promote exports and attract foreign investments.

“The economy is on an extended bull run and we are confident the people can keep the pace going to finally achieve economic takeoff,” she said in her speech Thursday. “The positive outlook across various sectors both here and abroad backed up by our improving economic indicators speak well of the things to come.”

Budget Secretary Rolando Andaya said Thursday that the government saved of $340 million in interest payments because of the peso’s rise.

He said this saving could be used to help replace infrastructure ruined by Typhoon “Milenyo,” which ripped through Luzon last week and caused more than P3 billion in damage to agriculture and property.

The Philippines, Asia’s largest debt issuer after Japan, taps the domestic and overseas debt markets regularly to fund its budget deficit. Interest payments take about one-third of the annual national budget.

The government has cut back on borrowing this year after weaker-than-expected spending and increasing tax revenues produced four months of budget surpluses.

Total debt of the national government eased 0.5 percent year-on-year to P3.998 trillion in June.

The Arroyo administration has passed financial reform measures, including a law broadening and raising the value-added tax, to raise additional revenue, cut debt and balance the budget in 2008.Gil C. Cabacungan Jr., Reuters, Agence France-Presse, with INQ7.net

http://business.inq7.net/money/topstories/view_article.php?article_id=25065

JAMAICUS

October 6th, 2006, 10:48 AM

Weber Shandwick says RP ripe for its brand of service

Acompany may have the best products endorsed by the most popular celebrities in multimillion advertising supplements and television spots, but if the firm’s reputation were generally negative, demand for its offerings would likely be anemic.

"What companies need to understand is that reputation is a very precious asset which takes time to develop, and needs time to nurture," Weber Shandwick Asia Pacific President Andrew Pirie told BusinessWorld in an interview.

Mr. Pirie said companies, particularly those in Asia, fall into the misconception that a good product guarantees that the product will sell. "But having a good product is not enough, you have to have good marketing. And good marketing is not just advertising, it is also about good public relations," he said.

With so many ways to communicate to the market nowadays, Mr. Pirie said companies should not neglect the power of public relations.

American PR professionals Scott M. Cutlips and Allen H. Center define public relations as "a planned effort to influence opinion through good character and responsible performance based upon mutual satisfactory two-way communication."

With numerous PR practitioners offering their services nowadays, it pays to consider working with a global marketing communications firm. Knowing this, international public relations firm Weber Shandwick decided to set up shop in the Philippines.

Weber Shandwick is one of the world’s leading public relations and communications management firms. It has 81 offices in 39 markets worldwide. Including its affiliates, its network comprises more than 119 offices in 72 markets.

In Asia Pacific, Weber Shandwick has 14 owned offices in Japan, China (Beijing, Shanghai, Guangzhou, and Hong Kong), Taiwan, Thailand, Malaysia, Singapore, Indonesia, Australia, and India (New Delhi, Mumbai, and Bangalore). It also has three affiliates in Pakistan (Islamabad, Karachi, Lahore), and one in South Korea.

Prior to setting up an office here, Weber Shandwick worked for Philippine-based companies through its affiliate, advertising agency McCann Erickson.

Weber Shandwick will be part of McCann Worldgroup Philippines, a network of marketing solutions agencies operating in the country. Both Weber Shandwick and McCann Worldgroup are members of the Interpublic Group of Companies, one of the largest advertising and marketing services companies worldwide. Interpublic is listed at the New York Stock Exchange.

"Weber Shandwick realized that it is now time for the Philippines to have world-class public relations communications management and crisis management firm in the Philippines. I think the market is ripe, the Philippines is ripe, the Philippines is ready to have Weber Shandwick," Weber Shandwick Philippines President and Chief Executive Michael T. Toledo told BusinessWorld in an interview.

Mr. Toledo said with so many established PR practitioners in the country, some might see Weber Shandwick’s foray surprising.

"The other PR firms here in the country are very good...[but] we have the worldwide reach, the worldwide expertise. We think we have something different, if not something better, to offer," he said.

For one, he said that Weber Shandwick has unique strategic planning process called -- outcome management. "We have the outcome management -- a Weber Shandwick trademark, the power to secure outcomes. The power to ensure the results that the client wants are achieved," Mr. Toledo said.

The company said outcome management is a campaign-based methodology that recognizes the context of today’s communication landscape in which nothing is static and rapid response to constant competitive change is critically important.

KEY

"The key to outcome management is upfront emphasis on defining winnable outcomes, before assembling the client service team or developing strategies and tactics," Weber Shandwick said in a statement.

"Built into the outcome management processes are analytic tools that provide insight, knowledge, audience definition, message focus, program cohesion, and measurement of results. Outcome management is a continuous, dynamic, and multi-disciplinary system that controls dialogue, engages constituencies and influences behavior to meet client objectives," the company said.

On top of the company’s global expertise, Mr. Toledo expressed confidence that Weber Shandwick "will hit the ground running" with the help of its sister companies already established in the Philippines.

McCann Worldgroup Philippines President and Chief Executive Patricia Arches told BusinessWorld that Weber Shandwick Philippines would enjoy "shared resources" with its sister companies. There are seven companies under McCann Worldgroup Philippines, which offers a full suite of specialized marketing communications disciplines, ranging from advertising to media planning and buying, from relationship marketing to activation.

McCann Erickson will be the advertising arm, while Weber Shandwick will be the public relations arm.

The other companies under the McCann Worldgroup Philippines umbrella are: Universal McCann (for media services); MRM Worldwide (for customer relationship management); Momentum (for activation and promotions); FutureBrand (for branding and product design); and McCann Healthcare (for health care corporate communications).

"We can refer our advertising clients to them, those who would need PR. We refer our clients to other PR firms before. But since a lot of our clients are global clients, they are used to a certain standard of service that we have. With Weber Shandwick, this will allow us to guarantee the kind of PR service that we offer to our clients," Ms. Arches said.

Foot Cone & Belding Manila President and Chief Executive Arnold C. Liong told BusinessWorld the entry of Weber Shandwick would also be beneficial to other Interpublic Group marketing communications firms already in the country. Foot Cone & Belding is an advertising agency under the group.

"Weber Shandwick is a formidable company. We are encouraged by [Interpublic] to share resources, so with Weber Shandwick being a very reputable brand, it is but natural for us to use that as our PR advantage," Mr. Liong said.

http://www.bworldonline.com/Weekender100606/main.php?id=marketing1

chixbebe

October 6th, 2006, 10:59 AM

American Chambers are positive that Philippines can attract over 8.5 billion foreign investments in the next four years that can actually generate a million jobs a year if and if only the political stability, transparency, graft and corruption together with the government’s willingness to protect and uphold the sanctity of awarded contracts, especially in big-ticket utilities and infrastructure projects of the country will be realized. They said that we have the potential investments in mining, power, energy, IT, health manufacturing and infrastructure industries.

A comment like this has given the country full force to work for the better and achieve its goal. This only tells that Philippines is working hand in hand to fulfill its success.

FrancisXavier

October 6th, 2006, 11:07 AM

Sinjin P.

October 6th, 2006, 11:14 AM

^ So indeed it's fabricated? How could it be a fact when in the first place it is fabricated?

JAMAICUS

October 6th, 2006, 11:14 AM

Forex reserves $21.56B at end-Sept vs $21.54B in Aug

By Erik de la Cruz
XFN-Asia
Last updated 05:02pm (Mla time) 10/06/2006

THE COUNTRY'S gross international reserves had inched up to $21.56 billion by the end of last month from $21.54 billion at the end of August, the central bank said, citing preliminary figures.

A statement issued by the central bank attributed the slight increase to inflows from its foreign exchange operations and income from investments abroad.

These inflows helped mitigate foreign exchange requirements for payment of maturing debts of the government and the central bank.

The gross international reserves at the end of last month were adequate to cover about 4.3 months of imports of goods and payments of services and income, and equivalent to 3.9 times the country's short-term debt, based on original maturity, it said.

http://newsinfo.inq7.net/breakingnews/nation/view_article.php?article_id=25181
---------------------------------------------------

Sept inflation lowest in 27 months

Inquirer
Last updated 02:30am (Mla time) 10/06/2006

THE increase in consumer prices further eased to an annual rate of 5.7 percent in September -- the slowest in 27 months -- due mainly to a stronger peso and lower oil prices.

September was the seventh straight month in which inflation slowed down. The rate is the lowest since June 2004, when inflation was recorded at 5.4 percent, according to the National Statistics Office.

In August, inflation was 6.3 percent. In the January-September period, it averaged 6.8 percent.

Excluding the volatile prices of selected food and energy items, core inflation decelerated to 5.0 percent in September from 5.3 percent in August.

Housing and repairs inflation was 3.7 percent in September, down from 3.8 percent in August; fuel, light and water, 12.9 percent from 13.0 percent; services, 7.7 percent from 9.0 percent; miscellaneous items, 2.8 percent from 3.0 percent, and food, beverage and tobacco, 4.9 percent from 5.6 percent.

For food alone, inflation eased to 4.9 percent from 5.5 percent. This was partly attributed to increased production in agriculture.

There are doubts on whether the slowdown in food inflation will be sustained in October after Typhoon “Milenyo” affected several farmlands.

The price increase for rice was 1.2 percent in September, from 1.9 percent in August; cereal preparations, 5.5 percent from 5.7 percent; dairy products, 5.9 percent from 6 percent; fish, 5.1 percent from 6.3 percent; fruits and vegetables, 8.2 percent from 11.6 percent; and meat, 1.9 percent from 2.2 percent.

Higher price rates were recorded for corn at 7.2 percent compared with 5.1 percent in August, and for eggs at 7.2 percent from 5.9 percent.

The strengthening of the peso was partly credited for the slowdown in inflation, by making imports cheaper.

The peso ended September at 50.21 to the dollar, compared with 56.01 at end-September 2005.

The central bank had forecast the September inflation rate at 5.7-6.4 percent. Its governor, Amando Tetangco Jr., told reporters Thursday that its policy-making body, the Monetary Board, would review its policy to take into account the downtrend in inflation.

The central bank has kept its overnight borrowing rate at 7.5 percent since October last year. Michelle V. Remo with Agence France-Presse, and INQ7.net

http://business.inq7.net/money/topstories/view_article.php?article_id=25064

heathcliff

October 6th, 2006, 11:17 AM

reading through the posts, it's so sad. all i thought this "fabricated" fact would spice up our optimism. But sharply the opposite..

With these(thoughts/ideas/mentality), what do you think we can achieve?

i guess it's okay to reiterate someone's lapses. but if that's the only thing we know and we wanna do.....should we expect better PI?

What is fabricated? Our eco gains are real enough. Positive indicators i.e. 5.7% September inflation rate, peso appreciation, our improving financial standing and robust stock market have earned commendations from international rating and financial institutions.

It's not a bad thing to encourage optimism, as long as this inspires people in facing the greater tasks that lie ahead.

Sinjin P.

October 6th, 2006, 11:19 AM

I too was wondering why the word "fabricated" was used. :)

le Reine

October 6th, 2006, 11:21 AM

I can't believe it. This thread is still alive? I would probably merge this thread to Philippine economy thread if I'm the mod. Or I would change the title. 2nd world? My, my where the heck is it? Oh, now I see it. It's in Cuba and North Korea.

FrancisXavier

October 6th, 2006, 11:24 AM

That's why i " and " it..My way of sarcasm..

tootsjap

October 6th, 2006, 06:36 PM

Making patol
Boo Chanco Philstar 10/06

Incidentally, I don’t know who is the speechwriter who made Ate Glue declare that we are no longer third world… that we are already second world. That is plainly stupid and I don’t know why Ate Glue read that part of the speech. This way of classifying countries has Cold War roots and nothing to do with national income. Second World does not refer to middle income countries. A quick Google check would have told them that.

For a refresher, First World refers to the Western economies like the US and Western Europe and of course, Japan. Second World refers to the communist or centrally planned economies, mostly no longer in existence with only Cuba and North Korea still around. Third World is the rest of us in Asia, Africa and Latin America with so called developing economies.

Countries don’t go from Third World to Second World unless Ate Glue thinks the NDF of JoeMa Sison will soon take control of government. Like Singapore and South Korea, countries go from Third World to First World. Malaysia also talks about becoming First World. Not Second World. Our problem is we think second best is puede na, kaya siguro the speechwriter thought a way of dramatizing progress under Ate Glue’s watch is to report that we are now Second World. Segunda manong pag-iisip!

In the same way, Bunye must realize that his ecstatic announcement about the country’s per capita income rising to $1,400 is nothing but pure unadulterated spin. Sa Pilipino, napaka bilog na bola. Siyempre naman ano… with a stronger peso, that’s simply the conversion effect to dollars… smaller divisor via-a-vis the exchange rate. That OFW rushing to the money changer to convert his dollars to pesos before the peso strengthens some more could have told him that. The higher per capita income in dollar terms is also meaningless in the light of record high hunger and self rated poverty rates.

Gaya nga ng sabi ni Ate Glue, " maganda ang litrato ng economiya" (the economic picture looks good) ngunit "kailangan tignan muna natin ang malawak na litrato" (we have to look at the bigger picture…) kahit na "gumaganda ang hula ng mga financial institutions sa atin" (even if the forecasts of financial institutions are getting better).

Kung ako si Ate Glue, "kailangan iguhit ang makipot na linya" (need to draw a fine line) between reality and fantasy, between propaganda and truth and henceforth instruct her speechwriters not to embarrass her with stupid literal translations from technical English to street Tagalog. Then again, Ate Glue should know better than to mouth them too. She shouldn’t "make patol". Kadiri to death kasi, lalo na nung sabihin niyang si Pacquiao ay may matulis na utak (sharp mind). Agad tuloy naiisip ng mga nakikinig na di lang yun ang matulis kay Manny.

Based on what I heard Tuesday evening, the German ambassador speaks better Tagalog than Ate Glue. Or maybe he just has a more literate translator/speechwriter. Siguro, di galing sa Asumption.

3cr

October 7th, 2006, 01:10 AM

Well said. I share the same sentiment. Hindi lahat ng tao kaya niyang paikutin with her propaganda. Thanks for posting this article Tootsjap!

TheAvenger

October 7th, 2006, 02:13 AM

Si GMA talaga o humirit nanaman! Hehehe...

Third World

noun
less developed nations: the developing nations of Africa, Asia, and Latin America, generally less economically advanced than the industrialized nations but with varied economies.
Originally the Third World was contrasted with the First World, the capitalist industrial nations, and the Second World, the industrialized Communist nations.
[Translation of French tiers monde ]
Microsoft® Encarta® 2006. © 1993-2005 Microsoft Corporation. All rights reserved.

Third World, general designation of economically developing nations. The term arose during the cold war, when two opposing blocs—one led by the United States (first), the other led by the USSR (second)—appeared to dominate world politics. Within this bipolar model, the Third World consisted of economically and technologically less developed countries belonging to neither bloc. Originated by the Martinique-born Marxist writer Frantz Fanon, the designation was essentially negative and not always accepted by the countries concerned. Although political and economic upheavals in the late 1980s and early 1990s marked the collapse of the Soviet power bloc, “Third World” remains a useful label for a conglomeration of countries otherwise difficult to categorize.
Microsoft ® Encarta ® 2006. © 1993-2005 Microsoft Corporation. All rights reserved.

Perhaps our Idol have lost her bearing and finnally realized the cold truth that it is nearly impossible for her to eradicate corruptions in our society and government nor she can improve the economy that can benefit the poorer class of pinoys who were the majority.

perhaps our Idol finally agree to have a coalition government with the peoples and parties identified with the 2nd World.

Finally we will enter the 2nd World after spending some time in the Lost world. Praise the Lord

Sinjin P.

October 7th, 2006, 11:50 AM

Imelda Romualdez Marcos is still beautiful

OtAkAw

October 8th, 2006, 05:03 AM

But you were the one that requested it? Don't you get a warning first via PM before you get brigged or banned?

I got a PM from Sinjin before I got brigged.

And sinjin, ganun pala yun, I thought you were the one kundi binatukan na sana kita, hehehe joke lang! :)

OT na, you know ppl, honestly before I thought second world was denoted to countries that have a middle-income economy in the likes of Malaysia, Chile and Uruguay. Communist governments pala, GMA better replace her researcher or speech writer. Hay naku. O kaya dapat alam na niya sa sarili niya yun.

dive-cebu

October 8th, 2006, 05:50 AM

That's how it was during the olden times. Spaniards marry only Spaniards even if they are related.

this holds true until today... i've learned that the AZNARs of cebu are still practicing this... for those who are not familiar with this 'dynasty', they own southwestern university (here in cebu) and other businesses...

dive-cebu

October 8th, 2006, 05:58 AM

http://i55.photobucket.com/albums/g135/div-cebu/Monique_lg1.jpg http://i55.photobucket.com/albums/g135/div-cebu/lif_4-11.jpg

JAMAICUS

October 8th, 2006, 06:07 AM

PCCI head bats for lower power rates to boost RP’s competitiveness

The Philippine Star 10/08/2006

The head of the biggest local business organization in the country has urged energy officials to bring down power rates, now the second highest in Asia after Japan, as one of main strategies to recover lost grounds in the Philippines’ ability to compete.

The call was made by Philippine Chamber of Commerce and Industry (PCCI) president Donald G. Dee as he presented the proposed action agenda in addressing key issues in the power sector during the first National Competitiveness Summit held in Malacañang.

Dee zeroed in on the need for the Energy Regulatory Commission (ERC) to take a hard look and adjust to reasonable levels the present high charges imposed by the National Transmission Corp. (TransCo).

Dee said energy officials must not sacrifice public interest just to make TransCo juicy to investors in their bid to privatize the state corporation.

TransCo was specifically identified by the summit content team as one of the causes of expensive electricity for charging an average of P1 per kilowatt-hour based on a new supposedly performance-based rates policy.

Besides transmission cost, Dee identified power generation and distribution as possible areas where costs could be cut down. – Philexport News and Features

http://www.philstar.com/philstar/NEWS200610080704.htm

dive-cebu

October 8th, 2006, 06:14 AM

http://i55.photobucket.com/albums/g135/div-cebu/jonramon.jpg http://i55.photobucket.com/albums/g135/div-cebu/erramonaboitiz.jpg
Jon Ramon Aboitiz and Erramon Aboitiz

dive-cebu

October 8th, 2006, 06:27 AM

the Aznar Patriarch, DON MATIAS HIPOLITO CHAVEZ AZNAR II
http://i55.photobucket.com/albums/g135/div-cebu/Don_Matias_Aznar1.jpg

Don Matias and Dona Anunciacion
http://i55.photobucket.com/albums/g135/div-cebu/founders.jpg

Don Matias married to Dona Anunciacion T. Barcenilla of Carcar, Cebu. Out of their love they had ten siblings; namely: Dr. Matias B. Aznar III, Atty. Jose B. Aznar (deceased), Mr. Emmanuel B. Aznar, Dr. Lydia B. Aznar-Alfonso, Mrs. Alma B. Aznar-Holopainen, Mr. Merelo B. Aznar, Mr. Merlo B. Aznar I (deceased), Mr. Merdito B. Aznar, Mrs. Elma B. Aznar-Sierra and Mr. Merlo B. Aznar II.

dive-cebu

October 8th, 2006, 06:51 AM

i gave her a 9...

TheAvenger

October 8th, 2006, 06:54 AM

I got a PM from Sinjin before I got brigged.

And sinjin, ganun pala yun, I thought you were the one kundi binatukan na sana kita, hehehe joke lang! :)

OT na, you know ppl, honestly before I thought second world was denoted to countries that have a middle-income economy in the likes of Malaysia, Chile and Uruguay. Communist governments pala, GMA better replace her researcher or speech writer. Hay naku. O kaya dapat alam na niya sa sarili niya yun.

She should know the difference between the 1st, 2nd and 3rd world she is supposed to be a graduate of an exclusive university in Manila and in
Boston Mass, I think.

dive-cebu

October 8th, 2006, 07:04 AM

^^ but second world economy is not limited to communist governments... i am an economics graduate and ive learned this from one of my professors that most of the highly successful economies in the middle east are considered second world countries. they have high growth rates but their economy is limited to one or 2 industries, in the case of middle east, mostly relying on OIL. in other words, an economy which is not so varied in terms of industries.. i don't think GMA would be saying that publicly without any basis from her research team or from her own knowledge... BUT i still don't agree that we are a second world country already.

3cr

October 8th, 2006, 07:22 AM

Peso appreciation to hurt Cebu economy
By Jhunnex Napallacan
Inquirer
http://business.inq7.net/money/breakingnews/view_article.php?article_id=25428

CEBU CITY— The appreciation of the peso would have an adverse impact on the Cebu economy since exports account for the bulk of its earnings.

Cebu contributes about 10 percent of the country’s exports earnings. For the first six months of the year, Cebu exports reached $2.36 billion. The province accounts for more than 90 percent of Central Visayas’ total exports.

Cebu exporters are alarmed over the continued strengthening of the peso against the dollar.

“Unpredictability is something the exporters are worrying about now, because we do not know how strong can the peso go,” Mandaue Chamber of Commerce and Industry president Eric Ng Mendoza said.

Mendoza, who owns a furniture company and is an officer of the Cebu Furniture Industry Foundation Inc. (CFIF), said exporters usually negotiate orders six months to one year in advance and fix the price based on current peso-dollar exchange rate.

He said that once set, quoted prices can no longer be changed even if there are changes in the currency exchange rate.

He said buyers rarely allow price adjustments because they could always get cheaper furniture in other Asian countries, especially Vietnam and China.

“That is why, it (strong peso) is very detrimental to exporters. We are losing our competitiveness in our region,” he said.

Furniture exporters, he said, were already experiencing the adverse effects of the strong peso.

The CFIF members reported that their production had dropped by 20 percent in the third quarter from their first and second quarter levels.

Mendoza urged the government to help the export sector cope with the peso strengthening.

Philexport president Apolinar Suarez said the association had furnished President Macapagal-Arroyo a position paper asking her to find ways to help the exporters.

“We, the exporters are seemingly becoming victims, instead of heroes of our looming economic success. We need the help of the government and to take issue on our plight to enable us to continue making our contribution to a sustained economic recovery that has so far been elusive in the past,” Suarez said in Philexport four-page letter.

marites4

October 8th, 2006, 07:31 AM

I got a PM from Sinjin before I got brigged.

And sinjin, ganun pala yun, I thought you were the one kundi binatukan na sana kita, hehehe joke lang! :)

OT na, you know ppl, honestly before I thought second world was denoted to countries that have a middle-income economy in the likes of Malaysia, Chile and Uruguay. Communist governments pala, GMA better replace her researcher or speech writer. Hay naku. O kaya dapat alam na niya sa sarili niya yun.
what did he say in his PM.
Well they're always changing terms what's important is that the gdp increased even by default through the appreciation of the peso. Anyway that's why the gdp is always hovering around the same range since time immemorial as soon as it starts to make headway there'll be a reason why it has to devaluated ei the asian crisis, ERap

3cr

October 8th, 2006, 07:37 AM

If today's children will be the country's future workers, the future doesn't look rosey based on this article ...
:nono: :nono: :nono:

Malnutrition must be addressed — Villar
http://www.mb.com.ph/MTNN2006100876501.html

Senate President Manuel "Manny" B. Villar Jr., who had expressed concern over the seemingly malnourished condition of many Filipino students all over the country, hopes that the National School Health and Nutrition Congress of the Department of Education (DepEd) from Oct. 9-12 would result to concrete measures to implement an efficient school-based health and nutrition program.

"Malnourishment is increasingly becoming prevalent among Filipino schoolchildren. It was reported that there are now close to 3.67 million malnourished children nationwide or about one-fourth of all schoolchildren," said Villar, president of the Nacionalista Party (NP).

To commemorate October as "School Health Month," DepEd will discuss possible strategies for sustained school health and nutrition development in its four-day congress to improve the health and nutrition of schoolchildren.

Villar said there is an urgent already to modernize and upgrade the School Health and Nutrition Program (SHNP) of the DepEd to maximize its efficiency. In line with this, Villar recently filed Senate Bill (SB) 2384 or "An Act Providing for the Modernization of the SHNP of the DepEd."

"The SHNP is designed to promote, protect, and maintain the health and nutritional well-being of the various sectors of elementary and secondary educational institutions, thus, they play a crucial role in addressing malnutrition among Filipino schoolchildren," he said.

Villar also filed SB 2403 or "The Nutripack Act" which seeks to institutionalize a nutrient supplementing or feeding program similar to the "nutribun" feeding program during the 70s and 80s to augment the dietary needs of schoolchildren, pregnant women, nursing mothers, and the elderly. As an incentive, supporters of the nutripack feeding program shall be given due tax credit equivalent to 100 percent of their contribution.

"We should not shrug off comments by nutrition and education experts about the direct correlation of proper nutrition and enhanced learning capabilities in children. If we really want Filipino children to grow up to be intelligent people, we should help provide adequate nutrition to them," Villar said.

JAMAICUS

October 8th, 2006, 07:41 AM

^^ I think that thread will be more appropriate for a "People's Welfare thread"...

JAMAICUS

October 8th, 2006, 07:43 AM

Foreign firms to seek local partners, launch beauty products at RP expo

The Philippine STAR 10/02/2006

Skin care companies in Europe, North America and Asia are looking for local distributors and will launch their products at a beauty and wellness expo at the World Trade Center Manila this month.

The foreign firms include Hydroderm USA of Beverly Hills, Sansho Cosmetics of Japan, Merkury of Poland, PHL of Malaysia, and Beauty Cosmedica of Singapore, among others.

Hydroderm is famous for its collagen infusion and anti-aging skin care line, which is said to be alternative to Botox.

Sansho has both consumer and professional skin care products that are used in clinics and beauty salons.

Merkury is a leading Polish pharmaceutical firm that carries the Ziaja brand of facial, body, hair and oral care products.

BHL offers an innovative ion cleansing system, while Beauty Cosmedica is Singapore’s most successful beauty industry magazine distributed internationally and seeks to launch a Philippine edition.

They will join some 100 local and foreign firms that will exhibit their products and services at the Beauty and Fitness World 2006 and Spa & Wellness Philippines 2006 on October 10 to 12.

Organized by Worldexco, the twin events constitute the country’s only professional expo for the beauty and wellness industry.

"The expo will also feature free seminars, beauty tips and demos, and a ramp show during its three-day run," said Worldexco general manager Raquel Romero.

The ramp show dubbed "Hairoscope" will feature the award-winning hairstyles of the Hairdressers & Cosmetologists Association of the Philippines (HACAP) on October 10.

HACAP will also conduct a seminar on hair coloring, rebonding and treatment.

On October 11, the Philippine Federation of Natural Health will present "Healthy Living the Natural Way, while celebrity photographer Dominique James will have a talk and demo on how to look beautiful in photos.

On the third and final day, beauty and wellness icon Cory Quirino will discuss "Total Wellness", while on a daily basis, master educators Sylvia de Rijke and Marilyn Stolk demonstrate the latest "EzFlow" nail system techniques at their Glam Design booth. More information on the expo can be obtained from Worldexco (tel. 8558342 to 45, email info@worldexco.com). Admission is free.

Endorsed by the Department of Tourism, the expo is coorganized by HACAP, Spa Association of the Philippines, and the Philippine Federation of Natural Health and Environment Friendly Organizations, and supported by Biodroga Spa and Skin Care Company, Decleor Paris, Phytomer and Indoor Gardens by PIDO, and radio partners JAM 88.3, Wave 89.1, Magic 89.9, 99.5 RT and 103.5 K-Lite.

Now on its third year, Beauty & Fitness World is the country’s pioneering and only international tradeshow for the cosmetics, personal care and fitness industry, while the Spa & Wellness Philippines 2006 is an expo for spa and wellness professionals.

The twin events highlight the booming global market for beauty, spa and wellness products.

http://www.philstar.com/philstar/BUSINESS200610085604.htm

marites4

October 8th, 2006, 07:46 AM

that's sad. It will stunt their growth and every aspect of their physical and mental development. That's why you also see lots of babies with birth defects because of malnourished mothers. Some of these kids eat but they eat foods with zero nutrional values, like rice, noodles. If you can't afford to feed yourself and another human being well , please don't have sex.

Sinjin P.

October 8th, 2006, 09:09 AM

Debt watchdog: Gov't hid debt data in P1.1-T budget for 2007

Article posted October 8, 2006, 12:26 pm
A debt watchdog group accused Malacañang over the weekend of deliberately hiding 12 sets of debt-related data in its proposed P1.126-trillion national budget for 2007.

In a statement, the Freedom from Debt Coalition (FDC) said the alleged deception by "the truth-challenged Arroyo government" is "disturbing" because it hides from the Filipino people the country’s real fiscal deficit position.

"Particularly disturbing are significant data on the national government’s budget financial plan which can clearly show us our real fiscal deficit position and how much the government has to borrow in order to cover principal debt payments over and above the budget gap," FDC president Ana Marie Nemenzo said in a statement posted on the FDC website Saturday night.

"This episode is too important to be deduced as an honest publishing or print mistake," Nemenzo averred.

"Why only now are they saying that the data are actually available? Why have they not provided these in the proposed budget as they have done in the past? What are they hiding in the first place?" she asked.

In Nemenzo's view, what happened was "a clear case of denying critical sectors vital time and data in scrutinizing the entire budget."

She said the incident was an obviously deliberate and intentional attempt by the government of President Gloria Macapagal Arroyo not only to deny the people important information about the budget "but also (at) manipulating the accuracy of our government’s real fiscal position."

"What better way to assert the truthfulness of the flamboyant claim by Mrs. Arroyo that we are moving towards a balanced budget and real development than by willfully denying us important facts which can disprove the government’s fiscal hearsay?" Nemenzo said.

The FDC lamented that Mrs Arroyo and her government are hiding the fact that they will rely heavily on borrowings to finance principal amortization payments and its deficit problems.

"In crude fashion," Nemenzo said the Arroyo administration "wants to hide the awful truth that debt servicing still eats up a large part of our budget."

"Unable to curb the debt problem and in a desperate attempt to paint a rosy fiscal picture, Mrs. Arroyo resorted not just in manipulating data and information but in depriving us of it," Nemenzo said.

"We remind the truth-challenged Arroyo government that this is not their money we are talking about. This money belongs to the Filipino people. It is sad enough that we have a bogus administration. But it is sadder when a fake government make false claims in the dubious management, disbursement much worse ownership of the people’s resources," she added.

Nemenzo said the missing data include the National Government Financing Program; Outstanding Debt of the National Government (NG); Outstanding Domestic Debt from Regular Liabilities of NG;

Outstanding Domestic Debt Assumed by the NG; Outstanding Foreign Debt from Regular Liabilities of the NG; Outstanding Foreign Debt Assumed by the NG; NG Debt Service Expenditures;

Domestic Debt Service for Regular Liabilities of NG; Sinking Fund Provision for the Retirement of Domestic Debt; Domestic Debt Service from Liabilities Assumed by the NG;

Foreign Debt Service of Regular Liabilities of the NG; and Foreign Debt Service for Liabilities Assumed by the NG. - GMANews.Tv

http://www.gmanews.tv/breakingnews.php?sec=2&id=17241

3cr

October 8th, 2006, 09:44 AM

Tsk, Tsk, Tsk...Tiklo ka Ate Glo! :nono: :nono: :nono:

Debt watchdog: Gov't hid debt data in P1.1-T budget for 2007

Article posted October 8, 2006, 12:26 pm
A debt watchdog group accused Malacañang over the weekend of deliberately hiding 12 sets of debt-related data in its proposed P1.126-trillion national budget for 2007.

In a statement, the Freedom from Debt Coalition (FDC) said the alleged deception by "the truth-challenged Arroyo government" is "disturbing" because it hides from the Filipino people the country’s real fiscal deficit position.

"Particularly disturbing are significant data on the national government’s budget financial plan which can clearly show us our real fiscal deficit position and how much the government has to borrow in order to cover principal debt payments over and above the budget gap," FDC president Ana Marie Nemenzo said in a statement posted on the FDC website Saturday night.

"This episode is too important to be deduced as an honest publishing or print mistake," Nemenzo averred.

"Why only now are they saying that the data are actually available? Why have they not provided these in the proposed budget as they have done in the past? What are they hiding in the first place?" she asked.

In Nemenzo's view, what happened was "a clear case of denying critical sectors vital time and data in scrutinizing the entire budget."

She said the incident was an obviously deliberate and intentional attempt by the government of President Gloria Macapagal Arroyo not only to deny the people important information about the budget "but also (at) manipulating the accuracy of our government’s real fiscal position."

"What better way to assert the truthfulness of the flamboyant claim by Mrs. Arroyo that we are moving towards a balanced budget and real development than by willfully denying us important facts which can disprove the government’s fiscal hearsay?" Nemenzo said.

The FDC lamented that Mrs Arroyo and her government are hiding the fact that they will rely heavily on borrowings to finance principal amortization payments and its deficit problems.

"In crude fashion," Nemenzo said the Arroyo administration "wants to hide the awful truth that debt servicing still eats up a large part of our budget."

"Unable to curb the debt problem and in a desperate attempt to paint a rosy fiscal picture, Mrs. Arroyo resorted not just in manipulating data and information but in depriving us of it," Nemenzo said.

"We remind the truth-challenged Arroyo government that this is not their money we are talking about. This money belongs to the Filipino people. It is sad enough that we have a bogus administration. But it is sadder when a fake government make false claims in the dubious management, disbursement much worse ownership of the people’s resources," she added.

Nemenzo said the missing data include the National Government Financing Program; Outstanding Debt of the National Government (NG); Outstanding Domestic Debt from Regular Liabilities of NG;

Outstanding Domestic Debt Assumed by the NG; Outstanding Foreign Debt from Regular Liabilities of the NG; Outstanding Foreign Debt Assumed by the NG; NG Debt Service Expenditures;

Domestic Debt Service for Regular Liabilities of NG; Sinking Fund Provision for the Retirement of Domestic Debt; Domestic Debt Service from Liabilities Assumed by the NG;

Foreign Debt Service of Regular Liabilities of the NG; and Foreign Debt Service for Liabilities Assumed by the NG. - GMANews.Tv

http://www.gmanews.tv/breakingnews.php?sec=2&id=17241

theOCdiva

October 8th, 2006, 09:57 AM

And I gave her a 10! (just found this thread). Drat!
Oh well, what do I know?!:dunno:

Rajah_Soliman

October 8th, 2006, 07:59 PM

World Bank blames Erap for investment slowdown

By Joyce Pangco Pañares

The administration of deposed President Joseph Estrada and the impeachment case and street protests that led to his ouster spelled the decline of foreign direct investments in the country, according to a World Bank official.

But it was President Gloria Macapagal Arroyo, who bore the brunt of the negative consequences of her predecessor’s actions and policies; it was under her term that the country experienced the lowest investment level as a percentage of the gross domestic product.

But the FDI decline cannot be attributed solely to Estrada’s plunder-tainted administration and the negative consequences of his ouster, World Bank country director Joachim von Amsberg said in a nine-page paper he presented during a recent forum of the Joint Foreign Chambers of Commerce of the Philippines.

“Adverse domestic political and fiscal investments during the late ’90s and early part of this decade combined with the 1997 regional financial crisis increase country risk thus diminishing the leveraging effect of the reforms done in the mid-1990s on FDI flows,” Von Amsberg said.

When Estrada was elected in 1998, his administration was able to bankroll the positive economic and fiscal policies, such as an open monetary policy framework and significantly lowered trade barriers, of then President Fidel Ramos, gaining as much investments as 2.2 percent of the gross domestic product then.

Ramos, during his last term of office, chalked up foreign direct investments at 2.6 percent of the country’s GDP in 1998, the highest recorded level during the last decade despite the Asian financial crisis a year before.

In 2000, the FDI inflow fell below the 2-percent-of-GDP level, the same time as the impeachment case against Estrada for plunder charges began.

While Mrs. Arroyo’s foreign direct investment record in 2001 was only at 1.18 percent of the GDP, her administration bounced back a year later and gained 0.3 percentage points, Von Amsberg said.

The short-lived Oakwood Mutiny of junior military officers in 2003 as well as questions on the legitimacy of Estrada’s ouster caused FDI inflow to take another dip, this time falling at a dismal 0.3 percent of the GDP.

But despite charges of election rigging during her re-election bid in 2004, an impeachment complaint and several destabilization attempts by her critics, President Arroyo was able to attract more foreign investments with her “bitter pills” of tax policies and fiscal reforms.

While not really impressive, even competitive, when compared to the investments being cornered by other Asian countries, the reforms instituted by the President were steps at creating a positive business climate again, Von Amsberg said.

“Fiscal stabilization efforts during the last two years have reduced country economic risk. The economy also appears to be more resilient to political shocks, and larger parts of the economy can now function irrespective of political developments,” he said.

President Arroyo announced that this year’s FDI could reach $2 billion as the world’s top investors are channeling more and more of their funds to developing countries like the Philippines.

“The good news is that in the first quarter of 2006, the Bangko Sentral ng Pilipinas reported a net inflow of $996 million. If the trend continues for the second semester, it would almost be $2 billion for this year,” the President said.

The World Bank has identified at least five sectors where foreign direct investments would flow in significantly next year to bring the total FDI at $3 billion (P150 billion) in 2007.

These include the infrastructure sector, mining, information technology, privatization of the assets of the National Transmission Corp. and the Power Sector Assets and Liabilities Management, and the financial sector.

“The Philippines can meet the $3 billion annual target because it is attractive for businesses and the government just has to maintain the fiscal sustainability and macroeconomic stability it enjoys now,” Von Amsberg said.

The American Chamber of Commerce of the Philippines, in fact, gave a bolder estimate of the year-to-year FDI inflow at $8.5 billion or $34 billion until 2010 when Mrs. Arroyo’s term ends.

AmCham vice president and Ford Philippines president Henry Co said the six sectors that cornered the most FDI from the second quarter of the 2005 to the first quarter of the year would also be the same industries that would enjoy the most number of investment inflow over the next four years—agriculture, finance and real estate, transportation, mining, services, and manufacturing.

But for President Arroyo, the FDI target is just the beginning of her dream to bring the country closer to her vision of a First World Philippines in the next 20 years.

“The economy is on an extended bull run and we are confident that the people can keep the pace going until we finally achieve economic take-off. The positive outlook across various sectors both here and abroad backed up by our improving economic indicators speak well of the things to come, and we call on our people—not just the business community but especially the ordinary people—to sustain the momentum by upholding excellence, productivity and unity that will assure their fair share of the benefits of growth.”

Rajah_Soliman

October 8th, 2006, 08:17 PM

Zweite Welt
aus Wikipedia, der freien Enzyklopädie
Wechseln zu: Navigation, Suche

Mit dem Begriff Zweite Welt wurde früher, in der Zeit des Kalten Krieges der so genannte Ostblock bezeichnet, also die sozialistischen Länder, die mit der Sowjetunion verbündet waren.

Heute wird der Begriff statt dessen oft für die so genannten Schwellenländer verwendet, also für eine Gruppe von Ländern, die dabei sind, den Status eines Entwicklungslandes zu verlassen und zum Industrieland zu werden***. Die Bedeutung des Begriffs ist jedoch seit 1989 stark zurückgegangen, auch die vormals verbreiteten und nicht unumstrittenen Bezeichnungen Dritte Welt (für Entwicklungsländer) und Vierte Welt (meist für rohstoffarme Entwicklungsländer oder die so genannten Least Developed Countries) werden seitdem immer weniger benutzt.

***translation: the term (second world) is now being used to refer to the so called "Schwellenländer" (->NIC), id est a small group of nations leaving the status of a developing country and becoming an industrial country.

3cr

October 9th, 2006, 01:50 AM

Execs unsatisfied with Gloria business policies — PCCI poll
By Ayen Infante
Daily Tribune
http://www.tribune.net.ph/business/20061011bus1.html

Debunking claims of President Arroyo that her policies were propelling the economy, a survey showed most businessmen believe the government does not give enough support to the business community.

The 2006 Business Confidence Survey conducted by the country’s biggest trade group, Philippine Chamber of Commerce and Industry (PCCI), showed majority were disappointed with the lack of government policies supporting business.

PCCI said the survey was made to “gather general information from PCCI members about their concerns and perceptions regarding the current state of the country’s business environment and provide general feedback on the information gathered.”

The survey was conducted from July 27 to Aug. 21 and involved 105 respondents of which 82 percent were owners of small and medium enterprises (SMEs) and 30 percent were executives of large companies.

When asked about the government’s support to the business community, 69 percent rated the government unsatisfactory on its capacity to provide support to businesses. Only 16 percent said the government is giving enough support, while the rest are undecided.

Most businessmen also said in the survey that the business community should refrain from joining political squabbles. This comprised 59 percent of respondents.

The survey also showed 77 percent of respondents said their businesses will remain operational in the next five years.

On the issue of Charter change, 56 percent said they were in favor of amending the Constitution, while 57 percent said Cha-cha will benefit businesses and the economy.

But 58 percent of the respondents said “they don’t have full trust and confidence on the people who will be involved in the Charter change.”

The survey also showed that compared to last year, 50 percent of respondents said business would be better this year and 54 percent indicated plans to expand their operations this year.

Respondents also identified the main issues affecting the conduct of business which were fiscal policies including tax policies and administration, cost of energy and graft and corruption.

Others mentioned were political stability, peace and order, infrastructure, competitiveness and trade liberalization, good governance and labor.

____________________________________

Investors submit long list of gripes
By Aurea Calica
The Philippine Star 10/11/2006
http://www.philstar.com/philstar/News200610110402.htm

Foreign businessmen have submitted their complaints to the government on bureaucratic red tape and inefficiency to help the Philippines improve its competitiveness.

Trade Secretary Peter Favila said the task forces on anti-red tape and competitiveness created by President Arroyo received the list from foreign chambers of commerce with an open mind and vowed to address them at the soonest time possible to attract more investments.

Red tape is making business more costly in the Philippines and discourages foreign investors from coming in, he said.

"The foreign chambers consolidated their concerns and identified three areas that they want us to immediately act on. These are improving on what they described as bureaucratic paper work when it comes to claiming the VAT (value added tax) refunds, the issuance of the tax credit certificates, and the processing of work permits and visas," Favila told reporters.

He explained that because foreign chambers have submitted a "very long list" of complaints, he asked them to identify three items they wanted to be addressed immediately.

"And there is a menu of other issues that they would want us to look into," Favila said, adding that the foreign chambers also itemized their concerns against the agencies where they had experienced the most difficulty.

These include the Bureau of Internal Revenue, Bureau of Customs, Bureau of Immigration, local government units, Social Security System, Department of Education, Department of Environment and Natural Resources, Department of Finance, Department of Health, Bureau of Product Standards, Bureau of Food and Drugs, Philippine National Police, TESDA, Philippine Health Insurance Inc., Laguna Lake Development Authority, PEZA, Land Transportation Office, Optical Media Board, National Telecommunications Commission, National Disaster Coordinating Council and the Pasig River Rehabilitation Commission.

Favila said he wants to conduct consultations with the various government agencies to see what could be done.

Some complaints though could be easily addressed like the Philippine consulate in Dubai, which reportedly takes 13 days to issue a visa for visitors to the Philippines; the Pasig River Rehabilitation Commission, which reportedly takes 21 months to process payment of contracts; and the NDCC, which has supposedly not acted on a proposal by a private entity to donate 3,500 houses in December 2004.

Favila said the foreign chambers and the government would meet periodically to address the concerns.

Mrs. Arroyo vowed to improve the country’s competitiveness after Spanish officials highlighted the problem on bureaucratic red tape in the Philippines during her trip to Madrid recently.

3cr

October 9th, 2006, 01:55 AM

Irresponsible governance is responsible for aggravating natural disaster effects. What are you doing Ate Glo? How can you say we've passed third world status? Eto ba and second world in your eyes? Tigilan na ang mga propaganda at panloloko sa mga mamayan.

Disasters of our own making
By Dan Mariano
http://www.manilatimes.net/national/2006/oct/09/yehey/opinion/20061009opi2.html

MORE disasters hit the Philippines than any other country in the world—save for China, India and Iran. Our country also ranks fourth in the number of people killed and injured by disasters whether man-made, like the Guimaras oil spill, or natural, such as Typhoon Milenyo (Xangsane).

Through the decades the country has had its share of tsunamis (southern Mindanao in August 1976), flash floods (Ormoc in November 1991 and Quezon in 2004), island-wide earthquakes (Luzon in July 1990) and volcanic eruptions (Pinatubo in June 1991).

Is the Philippines a hard-luck country fated to endure calamities of such ferocity that they regularly take thousands of lives and destroy billions of pesos in private property, civil works and natural resources?

In an article titled “Disasters and Faulty Governance” published last week, the Center for People Empowerment in Governance (CenPEG) noted that the impact of disasters has worsened in recent years.

CenPEG cited a report by the International Red Cross and Red Crescent Societies, which found that some 5.9 million Filipinos—or about a fifth of the present Philippine population—were killed or injured as a result of natural or man-made calamities from 1992 to 2001.

The mounting death toll was also attributed to the rising number of disasters—199 in 2001, 313 in 2002 and 384 in 2005.

CenPEG quoted the nongo*vernmental Citizens Disaster Response Center (CDRC), which reported that the number of persons “affected” by disasters or calamities in 2005 was 528,151 families, or 2.6 million individuals. From January to September this year alone the total has already reached 584,607 households or three million people.

The CDRC report does not include the recent damage caused by Typhoon Milenyo, which as of October 3 has been blamed for causing 200 deaths, displacing 1.3 million people including 171,000 evacuees and keeping about 43 million Luzon residents in the dark due to an island-wide blackout.

Flash floods account for the biggest displacement of people. In 2005 the total reached 344,378 families, or 1.8 million individuals, or half the total number directly displaced by all disasters that year, based on CDRC monitoring.

Government agencies normally measure the impact of disasters on the basis of economic losses, the number of persons killed or displaced and damage to infrastructure, among others.

“Overattention to quantifiable effects, however, tends to gloss over other indicators of impact that are often far-reaching and which are lost in the bureaucratic maze of government intervention—or lack of it,” CenPEG said. “These include long-term effects on livelihood and employment, health, nutrition, education and other social and psychological impact that only the keen and compassionate policy maker is able to detect.”

Central Luzon, for example, still experiences the after-effects of the Pinatubo eruption 15 years ago in the form of mudflows that inundate farms, fish farms and villages. Among other reasons, income losses and destruction to farms have made the region a top source of overseas Filipino workers.

“This only shows that the more disasters strike every year the bigger the army of OFWs will leave the country that, in turn, will result in a bigger number of families torn apart or suffering long separation [from] breadwinners aside from other unimaginable social costs,” CenPEG said. “And yet all these and other problems can be stopped or at least prevented or mitigated,” CenPEG added.

Vulnerability to disasters

The number of families, communities, lands and other productive resources affected by natural and man-made calamities has lately increased at alarming rates. The reason, CenPEG said, is their increased level of vulnerability.

Contributing to Filipinos’ increasing vulnerability to disasters are poverty and unemployment, lack of land and shelter, lack of food security, poor access to health and other social services and so on.

“Big populations [that] face higher risks during disasters owing to their dire social and economic conditions are in the rural provinces especially those living near or on uplands, near logging and mining areas, coastal areas and other farm communities,” CenPEG said. Remember Guinsaugon, Southern Leyte?

“In the cities, they are the urban poor who are forced to live by the riverbanks and coasts, under the bridges or beside [garbage] dumps. And all these are high-risk disaster zones,” CenPEG said. Remember Payatas?

CenPEG characterizes the entire archipelago, including its waters, as a potential disaster zone. This is why whenever something like the Guimaras oil spill occurs, the authorities place entire regions under a state of calamity.

“Natural disasters such as typhoons are obviously unavoidable but the hazards they as well as man-made calamities pose to populations and communities have been aggravated by flawed ‘economic development’ policies and laws that have also become, coincidentally speaking, the culprit behind man-made disasters,” CenPEG said.

Virtually the whole country has been stripped of its forests due to unmitigated logging and mining operations, which for decades have only benefited a few families and transnational corporations. Foreign-funded dams that were built purportedly to provide power to industries and irrigation to vast farm estates are now seen as the cause of flash floods, which inundate provinces and ruin their economies.

CenPEG cited the Mining Act of 1995, which the government began to implement last year. It estimated that the highly controversial law will subject 13 million hectares, or 45 percent, of the country’s land area to mining exploration and extraction.

The government has pinned its hopes on revenue from mining to resolve its perennial fiscal crisis. However, CenPEG warned that the Mining Act “will result in the large-scale displacement of communities and in the destruction of lands, deforestation and the flattening of mountains, erosions, siltations, desertifi*cation, pollution of rivers and marine life, and other ecological damages.”

Added CenPEG: “Definitely, something is wrong when government economic programs are crafted principally to address the fiscal crisis and debt servicing regardless of their grim effects on people and their livelihood.”

Nature makes the Philippines prone to disasters, but shortsighted state policies, corporate greed and plain human folly make sure that calamities cause maximum impact on people’s lives.

3cr

October 9th, 2006, 02:09 AM

Philippines now a second world country according to GMA
Posted by: Alecks Pabico on 1 October 2006 at 1:11 pm
http://www.pcij.org/blog/?p=1209

A DAY before typhoon Milenyo struck and rendered Metro Manila and other parts of the country a virtual wasteland, Gloria Macapagal-Arroyo had proudly declared the Philippines a “Second World” country, trumpeting the supposed gains of the economy under her leadership, including a per capita income that is now worth $1,400 a year.

“Right now, we’re not Third World anymore,” Arroyo said. “At $1,400 we are now Second World, a middle class country, and we’ll be able to achieve, if we are able to continue the trajectory of (a) one-percent decline in the poverty level, we can reach hopefully the First World status by the year 2020.”

Under Arroyo, the country’s per capita income has grown to its present level from $1,040 in 2000 and $1,200 in 2004. As a measure of the wealth of the nation (in GDP terms) based on the income share of its citizens, per capita income however does not give an indication of the income distribution in the country — which has remained uneven as evidenced by widespread poverty.

But for Arroyo to refer to the country as “Second World” is quite a curiosity. In the first place, using the terms “First World,” Second World” and “Third World” harks back to the outdated model of the geopolitical world from the time of the cold war.

“She’s a third-rate ‘president’ who doesn’t know that ‘Second World’ refers to communist countries,” says Charmaine Ramos, a development economist at the Institute for Popular Democracy.

After World War II, the three worlds model gained currency as a way of categorizing countries. Explains Nations Online, in the aftermath of the war, the world split into two large geopolitical blocs and spheres of influence with contrary views on government and the politically correct society.

The bloc of democratic-industrial countries within the American sphere of influence became known as the First World. The Eastern bloc of the communist-socialist states, on the other hand, was referred the Second World.

The remaining three-quarters of the world’s population, states not aligned with either bloc were regarded as the Third World. The term was first coined by a French demographer, Alfred Sauvy, in 1954 to describe the people of the world that are “unknown, exploited, and scorned.” (A third category, “Fourth World,” was coined in 1974 to refer to the poorest Third World countries that have “lagged behind” and still lack industrial infrastructure.)

With the collapse of the Soviet Union in 1991, the term Second World gradually ceased to be used. Only the term Third World — despite its criticism by some scholars as being colonialist, inaccurate and derogatory — remains in frequent usage to denote nations with a low UN Human Development Index (HDI), regardless of political status.

In the heady days of the cold war, though, the Second World encompassed nations within the Soviet Union’s sphere of influence, extending to countries that signed the Warsaw Pact to its allies such as Cuba and North Vietnam, and most of Eastern Europe. The term was also sometimes used to refer to communist countries that opposed Moscow’s leadership — Albania, the People’s Republic of China and Yugoslavia.

Alternatively, Second World was also used to denote countries with developed State-planned economies as opposed to the developed market economies of the First World.

The Philippines is definitely neither socialist nor communist, especially under Arroyo, who is an ardent adherent of neoliberal economics. Her antipathy towards the decades-old communist insurgency which she blames for hindering the country’s development, and for which she has set a one-year deadline for the military to crush, is also well known.

Clearly, in both cases, the Second World category — not to mention the fact that its out-of-touch connotation is no longer applicable to the times — doesn’t fit the Philippines.

“For a much flaunted economist like Arroyo, that seems strange,” quips Akbayan President Ronald Llamas. The term, he says, is rarely used these days, though it might pertain to any of the following: “middle income economies with a growing middle class; whatever is in between the Third World and First World; or developing economies of rhe Asia-Pacific, including China, India, Brazil, Chile, South Africa, etc.”

To Wilson Fortaleza, vice president of the Freedom from Debt Coalition, Arroyo’s promotion of the Philippines to “Second World” status could be a way of propping up the “magical description of her promised Enchanted Kingdom by 2020.”

“Perhaps she was describing the country’s halfway transition to it,” he says.

Fortaleza, however, says the devastation that typhoon Milenyo left in its wake should tell Arroyo “how we are still very much Third World.” Proof of which, he says, is that “we can’t even bring back the power supply in three days.”

3cr

October 9th, 2006, 02:13 AM

Sooner or later the truth will come out despite the deceptions, lies and propaganda...

Puzzles, contradictions, ironies (in the Gov't economic data)
By Cielito Habito
Inquirer
10/08/2006
http://business.inq7.net/money/topstories/view_article.php?article_id=25537

Published on page B4 of the October 9, 2006 issue of the Philippine Daily Inquirer

RECENT economic performance data reveal a number of apparent contradictions, some of which are downright puzzling, and some which are disturbingly ironic.

These come out of the fact that as always, there is a mix of good news and bad news which when taken together, don't seem to add up or make sense.

In my most recent economic briefings, I highlight seven such apparent puzzles. I focus on three here.

Growth and employment
The first and most telling contradiction is the way that the respectable 5.5-percent growth of the economy in the second quarter of 2006 was accompanied by a worsening of unemployment, which rose from 7.7 percent last year to 8 percent this year.

Data show 928,000 new job-seekers joining the workforce over the past year. However, only 735,000 net new jobs were created by the growing economy, adding almost 200,000 to the ranks of the unemployed, who now number close to three million.

These numbers tell us that for our economy, a 5.5-percent overall growth rate is simply not good enough. In recent periods, the growth has been coming from less job-creating (i.e. less labor-intensive) sectors like finance, communications and mining.

But the sectors that tend to create more jobs as they grow include agriculture, construction and manufacturing.

Job-eating growth?
This leads me to another contradiction in the recent data that seems to be a real puzzle. Agriculture actually was the star performer in the second-quarter data, posting a 6.7-percent improvement, well above that sector's average performance over the past years.

And yet, official data show that the sector actually lost a hefty 149,000 jobs over the past year. This suggests that not only did the sector have what economists now call a jobless growth; it even had a job-eating growth!

The usual explanation for this seeming contradiction would be increased mechanization and use of labor-saving technologies.

So I checked the data to see if there was indeed more mechanization in the sector. But lo and behold, detailed investment data showed that investments in farm machinery and tractors actually fell by 35 percent and 10 percent respectively! So it cannot be that.

Painful irony
If it's not farm mechanization that brought about this job-eating growth, could it be higher-yielding hybrid seeds? Well, maybe--especially since corn and palay, the focus of the government's hybrid seed program, led the growth of the sector with 49 and 10 percent, respectively.

But there is a painful irony here, if this is indeed the explanation.

While hybrid seeds may be succeeding in producing more rice and corn for Filipinos to eat, close to a million (that is, 149,000 new jobless farm workers times an average of six family members) additional rural dwellers out there are now unable to eat decently due to unemployment and poverty.

No wonder the SWS hunger index reached a record high of 17 percent earlier this year.

Lesson for DA
There is a real challenge to our agriculture authorities here. It is important to remember that our goal for the sector is not merely to increase agricultural production; it is ultimately to improve the welfare of farm families. The success of the Department of Agriculture should not be measured on the basis of farm output alone; that is not an end in itself. Ultimately, it is people that matter.

While consumers in general benefit from increased farm output, and presumably lower food prices, we need to find a way to ensure that farm dwellers are not left behind. And here, many were not only left behind; they were even pushed deeper into poverty with the loss of jobs.

Our legislators need to keep this in mind as well. While right-thinking agriculture officials understand that there is more to their mission than raising farm output, I hear them lament that congressmen grilling them on their budget appear to be fixated on production levels, especially of crops dominant in their respective districts.

Confidence crisis
A third major contradiction in the data concerns how overall investment fell by a hefty 5.8 percent, while foreign direct investment inflows were reported by the Bangko Sentral to have jumped by 53.5 percent!

This tells us that the drop in investment by Filipinos themselves was much steeper than suggested by the already bad decline in overall investment. The fact is, total investment has been dropping for the last six quarters, and has gotten worse with a deeper drop in the latest report.

An irony, it seems, but foreigners seem to have more confidence in us than we do ourselves. Do the foreign investors know something that Filipino investors don't? Or is it the other way around--they don't know something their Filipino counterparts do?

Whichever way it is, there is nothing short of a crisis of confidence in the Philippine economy, particularly from those more intimately familiar with the domestic economic and political scene. And this confidence crisis is not helped by recent policy reversals and flip-flopping from the Palace.

Our most urgent need is to arrest this seeming freefall in our investment levels--and it will take much more than economic instruments to do that.

Comments welcome at chabito@ateneo.edu

___________________________________

Good numbers gone bad
Why relying on GDP as a leading economic
gauge can lead to poor decision-making.
By Joseph Stiglitz
September 25 2006: 8:07 AM EDT
(Fortune Magazine)

Gross domestic product, the leading economic measurement, is outdated and misleading.

Long the standard scorecard for any national economy, GDP has become deficient as a measure of long-term economic health in our resource-driven, globalizing world.

Think about it. It's like grading a corporation based on one day's cash flow and forgetting to depreciate assets and other costs.

In today's business reality, where intangible assets have become increasingly important, cash flow can be a particularly bad indicator of a company's value. A startup can have no cash flow and yet be creating a software program of immense value. A company with positive cash flow can be running itself into the ground as its capital depreciates. Economies are no different.

That's why economists looking for an alternative accounting framework to supplement the use of GDP are considering a new measure: green net national product.

The "green" means that GDP must be reduced to take into account the depletion of natural resources and the degradation of the environment - just as a company must depreciate both its tangible and intangible assets. "Net" national product (NNP) means that there has to be an adjustment for the depreciation of the country's physical assets.

A country that gives away its natural resources will see gross domestic product rise, but gross national product - which focuses on income earned by those inside a country as opposed to what is produced inside a country -- may not rise much, since the value of what is produced accrues to foreigners.

When GDP goes really bad
For developing countries opening themselves up to foreign investment, this is an important distinction. A nation that grows by borrowing will see GDP rise, but much of the increase in income may go back out of the country to pay the interest.

Papua New Guinea is a prime example of the trouble with GDP calculations. When Anglo-Australian mineral company BHP Billiton (Charts) opened the Ok Tedi gold and copper mine in 1984, it was considered a national victory.

The value of the extracted ore showed up in Papua New Guinea's GDP, but scarce comment was made of the fact that almost all income from the mine went to its foreign owners.

Worse still, the mine inflicted huge environmental damage. Its operators discharged 90 million tons of tailings into the local river system, polluting the main source of livelihood for the 40,000 people living in the 120 villages downstream.

BHP was sued in the 90s by indigenous landowners and settled for millions of dollars, but the agreement also indemnified BHP from future damages. The burden of much of the environmental repair was left to the country.

The U.S. is no exception.

America's energy policy has been based on "drain America first"; as we have used up a significant share of our scarce oil reserves, the country has become poorer, even if GDP has done well.

As oil is used up, America may turn increasingly to coal, which has large environmental costs that should be reflected by green accounting. In the case of carbon dioxide and other greenhouse gases -- now traded in Europe -- we can, for instance, put a dollar value on the emissions. Such mechanisms can help us evaluate environmental damage and quantify its impact on the economy.

Bad accounting frameworks are likely to lead to bad decisions. A government focused on GDP might be encouraged to give away mining or oil concessions; a focus on green NNP might make it realize that the country risks being worse off.

But new ideas always meet resistance.

Just as those who benefited from bad corporate accounting practices - like ignoring the cost of stock options - wanted to continue them, the same is happening here. A greener, more balanced accounting framework is an old idea whose time has come, especially if we are going to make globalization work.

JOSEPH STIGLITZ is the former chairman of the Council of Economic Advisers, a Nobel Prize-winning economist, and the author of Making Globalization Work.

3cr

October 9th, 2006, 03:39 AM

Power sector: a new ballgame
Manila Standard Editorial
http://www.manilastandardtoday.com/?page=editorial_oct9_2006

Government warnings of possible rotating brownouts in November and real outages in 2010 and 2011 if no new power plants are put in place by that time should be taken seriously.

The Malampaya production platform off Palawan island, which supplies natural gas to the 1,200-megawat Ilijan plant and the 1,500-mw Sta. Rita/San Lorenzo power stations, both in Batangas province, are to be shut down for 25 days for maintenance work. The supply cutoff from Malampaya could deprive the Luzon grid of some 2,700 megawatts of natural gas electricity and result in intermittent power outages next month.

Energy Secretary Raphael Lotilla has assured that contingency measures will be put in place to remedy the situation, including the reactivation of idle power plants and the use of alternative fuel sources, other than natural gas. The power disruption, however, illustrates the thin reserves available in the system, making Luzon and Metro Manila very vulnerable to sudden supply disruptions. The temporary shutdown of Malampaya’s natural gas field, according to authorities, will leave Luzon with an available power capacity of only 6,744.4 mw, or a reserve margin of 16 percent over the maximum projected consumer demand of 5,810 mw. Ideal reserve requirement for the Luzon grid is about 30 percent. Meanwhile, a thin power reserve margin, like the crude oil situation in the world market, will also drive up electricity rates.

The power outlook can get dimmer for four or five years from now. The government’s Power Development Plan assures enough supply up to 2010 to 2011 only. “Hence, contingency plans must be set in place immediately, considering that it takes at least four years to construct major power plants,” Lotilla said.

The energy chief also conceded that the Philippines could only enjoy lower electricity rates if additional power plants are constructed. The government could no longer count on state-owned National Power Corp. (Napocor) to subsidize power rates. In the past, this move only led to huge fiscal deficits.

The power industry has drastically changed since the government made it a policy to privatize Napocor’s power plants. The basic economic principle of supply and demand and its influence on power rates, however, remains.

The government and the private sector, thus, must act fast to prevent a repeat of the debilitating outages in the ’90s that forced former President Fidel Ramos to tap expensive power plants offered by independent producers.

Sinjin P.

October 9th, 2006, 03:47 AM

what did he say in his PM.

OT: Grabe na toh, PM nga eh, as in private message. Nothing special with the PM, it was just a formal warning sent to him like any other mod would do to inform the person involved that he was getting brigged for x days because of this and that ;)

sandrn

October 9th, 2006, 03:48 AM

World Bank blames Erap for investment slowdown
http://www.manilastandardtoday.com/?page=politics4_oct9_2006
By Joyce Pangco Pa%u00F1ares

The administration of deposed President Joseph Estrada and the impeachment case and street protests that led to his ouster spelled the decline of foreign direct investments in the country, according to a World Bank official.

But it was President Gloria Macapagal Arroyo, who bore the brunt of the negative consequences of her predecessor%u2019s actions and policies; it was under her term that the country experienced the lowest investment level as a percentage of the gross domestic product.

But the FDI decline cannot be attributed solely to Estrada%u2019s plunder-tainted administration and the negative consequences of his ouster, World Bank country director Joachim von Amsberg said in a nine-page paper he presented during a recent forum of the Joint Foreign Chambers of Commerce of the Philippines.

%u201CAdverse domestic political and fiscal investments during the late %u201990s and early part of this decade combined with the 1997 regional financial crisis increase country risk thus diminishing the leveraging effect of the reforms done in the mid-1990s on FDI flows,%u201D Von Amsberg said.

When Estrada was elected in 1998, his administration was able to bankroll the positive economic and fiscal policies, such as an open monetary policy framework and significantly lowered trade barriers, of then President Fidel Ramos, gaining as much investments as 2.2 percent of the gross domestic product then.

Ramos, during his last term of office, chalked up foreign direct investments at 2.6 percent of the country%u2019s GDP in 1998, the highest recorded level during the last decade despite the Asian financial crisis a year before.

In 2000, the FDI inflow fell below the 2-percent-of-GDP level, the same time as the impeachment case against Estrada for plunder charges began.

While Mrs. Arroyo%u2019s foreign direct investment record in 2001 was only at 1.18 percent of the GDP, her administration bounced back a year later and gained 0.3 percentage points, Von Amsberg said.

The short-lived Oakwood Mutiny of junior military officers in 2003 as well as questions on the legitimacy of Estrada%u2019s ouster caused FDI inflow to take another dip, this time falling at a dismal 0.3 percent of the GDP.

But despite charges of election rigging during her re-election bid in 2004, an impeachment complaint and several destabilization attempts by her critics, President Arroyo was able to attract more foreign investments with her %u201Cbitter pills%u201D of tax policies and fiscal reforms.

While not really impressive, even competitive, when compared to the investments being cornered by other Asian countries, the reforms instituted by the President were steps at creating a positive business climate again, Von Amsberg said.

%u201CFiscal stabilization efforts during the last two years have reduced country economic risk. The economy also appears to be more resilient to political shocks, and larger parts of the economy can now function irrespective of political developments,%u201D he said.

President Arroyo announced that this year%u2019s FDI could reach $2 billion as the world%u2019s top investors are channeling more and more of their funds to developing countries like the Philippines.

%u201CThe good news is that in the first quarter of 2006, the Bangko Sentral ng Pilipinas reported a net inflow of $996 million. If the trend continues for the second semester, it would almost be $2 billion for this year,%u201D the President said.

The World Bank has identified at least five sectors where foreign direct investments would flow in significantly next year to bring the total FDI at $3 billion (P150 billion) in 2007.

These include the infrastructure sector, mining, information technology, privatization of the assets of the National Transmission Corp. and the Power Sector Assets and Liabilities Management, and the financial sector.

%u201CThe Philippines can meet the $3 billion annual target because it is attractive for businesses and the government just has to maintain the fiscal sustainability and macroeconomic stability it enjoys now,%u201D Von Amsberg said.

The American Chamber of Commerce of the Philippines, in fact, gave a bolder estimate of the year-to-year FDI inflow at $8.5 billion or $34 billion until 2010 when Mrs. Arroyo%u2019s term ends.

AmCham vice president and Ford Philippines president Henry Co said the six sectors that cornered the most FDI from the second quarter of the 2005 to the first quarter of the year would also be the same industries that would enjoy the most number of investment inflow over the next four years%u2014agriculture, finance and real estate, transportation, mining, services, and manufacturing.

But for President Arroyo, the FDI target is just the beginning of her dream to bring the country closer to her vision of a First World Philippines in the next 20 years.

%u201CThe economy is on an extended bull run and we are confident that the people can keep the pace going until we finally achieve economic take-off. The positive outlook across various sectors both here and abroad backed up by our improving economic indicators speak well of the things to come, and we call on our people%u2014not just the business community but especially the ordinary people%u2014to sustain the momentum by upholding excellence, productivity and unity that will assure their fair share of the benefits of growth.%u201D

sandrn

October 9th, 2006, 03:52 AM

--deleted double post--

sandrn

October 9th, 2006, 03:52 AM

UK%u2019s Prudential Plc bullish on economy
http://www.manilastandardtoday.com/?page=business5_oct9_2006
By Eileen A. Mencias

British financial services giant Prudential Plc is upbeat on the Philippines and plans to expand its Philippine subsidiary, Pru Life UK, to strengthen its position in the local market.

Prudential group%u2019s chief executive Mark Tucker said %u201Cwe are optimistic about the Philippine economy and we are optimistic on consumer behavior... we had a good start but we need to go from very good to great.%u201D

Prudential Plc was among the foreign insurance companies that entered the Philippine market when the industry was opened up in the 1990s. Pru Life UK jumped to the no. 4 slot after buying All State Insurance in 2001 and the insurance business of ING in the Philippines in 2002.

Pru Life UK president Bobby Madrid said the bank was in talks with several banks for a bancassurance deal, which allows banks to sell insurance products in their branches. Bancassurance, however, requires banks put in equity investment in the insurance company before they can be allowed to sell such products.

Pru Life UK plans to expand its client base from the AB to the CDE market. It has been posting an average growth of 25 percent in the last three years, faster than the industry average of 13 to 14 percent. It aims to be among the top three life insurers in the country by 2008.

%u201CWe look at all organic and inorganic opportunities the whole time and our single criteria is value added. If we think there%u2019s value in doing it, we%u2019ll look at it,%u201D Madrid said when asked about new acquisitions to expand the company%u2019s business.

sandrn

October 9th, 2006, 03:58 AM

--deleted similar post--

sandrn

October 9th, 2006, 03:58 AM

UK’s Prudential Plc bullish on economy
http://www.manilastandardtoday.com/?page=business5_oct9_2006
By Eileen A. Mencias

British financial services giant Prudential Plc is upbeat on the Philippines and plans to expand its Philippine subsidiary, Pru Life UK, to strengthen its position in the local market.

Prudential group’s chief executive Mark Tucker said “we are optimistic about the Philippine economy and we are optimistic on consumer behavior... we had a good start but we need to go from very good to great.”

Prudential Plc was among the foreign insurance companies that entered the Philippine market when the industry was opened up in the 1990s. Pru Life UK jumped to the no. 4 slot after buying All State Insurance in 2001 and the insurance business of ING in the Philippines in 2002.

Pru Life UK president Bobby Madrid said the bank was in talks with several banks for a bancassurance deal, which allows banks to sell insurance products in their branches. Bancassurance, however, requires banks put in equity investment in the insurance company before they can be allowed to sell such products.

Pru Life UK plans to expand its client base from the AB to the CDE market. It has been posting an average growth of 25 percent in the last three years, faster than the industry average of 13 to 14 percent. It aims to be among the top three life insurers in the country by 2008.

“We look at all organic and inorganic opportunities the whole time and our single criteria is value added. If we think there’s value in doing it, we’ll look at it,” Madrid said when asked about new acquisitions to expand the company’s business.

marites4

October 9th, 2006, 04:06 AM

ay oo nga . dapat pala pinim ko na lang siya. Id just like to know what constitutes getting brigged and what constitutes getting banned?
Baket ako nirecommend mong i ban hindi mo naman winarningan. And I pmed you and you didn't reply at least si Grey X nagreply and inexplain niya.

Sinjin P.

October 9th, 2006, 04:11 AM

I'll sent you a PM nalang, back to topic ;)

chixbebe

October 9th, 2006, 06:08 AM

Rising reserves credited to economic reforms

President Arroyo attributed the country’s rising gross international reserves — which hit an all-time high of $21.56 billion — to her administration’s economic reforms.

The new record topped all previous records in September due to strong dollar inflows from Filipino overseas workers and the huge foreign exchange operations of the Bangko Sentral ng Pilipinas, which helped mitigate the foreign exchange requirements for payments of the government and BSP’s maturing obligations.

"This is yet another feather in the cap on the agility and potency of our economy. Our steady and stable economic growth is a clear proof that our reform agenda is gaining ground on all fronts," Mrs. Arroyo said.

"The country’s economic momentum is up because the people’s faith, unity and spirit of enterprise are strong," she said.

Mrs. Arroyo said the government would continue with its reforms and to provide people with jobs, better education and food: "This is the time to strike forward and not fall back as we lead the government in massive good governance, upholding social justice and fighting poverty," she said.

"All sectors of society, to include our OFWs, have been exemplifying heroism by wagering on productivity and excellence."

http://www.philstar.com/philstar/NEWS200610090417.htm

Another sign that our economic growth is fast approaching to meet its goal,
The country’s economic momentum is up because the people’s faith, unity and spirit of enterprise are strong :bow:

3cr

October 9th, 2006, 11:01 AM

Another data manipulation scheme by GMA's Gov't exposed this time by the IMF.
IMF cautions gov't on quality of public expenditures
Warns against spending coursed through GOCCs
By Doris Dumlao
Inquirer
http://business.inq7.net/money/topstories/view_article.php?article_id=25533

THE INTERNATIONAL Monetary Fund has raised concern on the government's tack of resorting to some "off-budget" activities as a means to catch up on huge infrastructure and social spending bottlenecks.

In a draft report by the IMF mission following the latest Post-Program Monitoring on the Philippines, the fund warned that off-budget spending--such as those coursed through government-owned and -controlled corporations--might infringe on the quality of public expenditures.

But it agreed on the pressing need to channel gains from the value-added tax to boost social services and infrastructure, areas where the Philippines had large unfulfilled requirements.

"Revenues have performed strongly in 2006 to date, creating room for higher social spending," the IMF said, citing the bigger-than-expected decline in the national government deficit as a result of underspending.

The IMF acknowledged that the implementation of the higher spending for 2006 was being frustrated by the impasse over the budget as well as by apparent procurement delays. Recently, Congress approved a P46-billion supplemental budget to accelerate much needed public spending.

"The authorities are also attempting to increase infrastructure spending through a special P10-billion National Development Co. bond issue, the proceeds of which would be on-lent to GOCCs," the report said.

"IMF staff questioned whether such off-budget activities might detract from the quality of expenditure," the report said, although it noted that the government had given assurances that all new projects were part of the medium-term public investment plan.

Despite these efforts, the IMF estimated that national government spending was likely to fall short of program by about half a percent of gross domestic product in 2006. It also projected that the increase in GOCC spending would be "fairly limited."

The IMF supported the government's plans to balance the budget but underscored the importance of the adjustment being sustainable. "A durable fiscal adjustment would require raising revenue rather than compressing expenditure, which until the recent (National Power Corp.) power hikes and VAT reform, had been the principal means used to contain the fiscal deficit," it said.

Based on estimates from the National Economic and Development Authority, the Philippines needs P1.1 trillion ($21.25 billion) in fresh investments from this year to 2010 to unclog infrastructure bottlenecks in line with the medium-term Philippine development plan (MTPDP).

Documents presented by Economic Planning Secretary Romulo Neri to the global donor community during the Philippine Development Forum in March estimated the cost of investments needed to shore up the country's vital transportation, power, water, communications and social infrastructure in the next five years.

The total investments needed, equivalent to about 2.87-3.14 percent of GDP, included vital projects inside and outside the MTPDP amounting to P540.21 billion and P548.47 billion.

le Reine

October 9th, 2006, 01:20 PM

sandrn

October 9th, 2006, 06:48 PM

The opposition cannot accept the fact the Arroyo is leading the country to economic take-off hence, they have to manipulate facts to discredit her.
But nobody believes the opposition now more than ever.

Global investment banks bullish on RP
http://www.philstar.com/philstar/news200610100701.htm
The Philippine Star 10/10/2006

International investment firms Lehman Brothers and Merrill Lynch expect significant improvements in the Philippines’ macroeconomic fundamentals as a result of the fiscal reforms implemented.

Lehman Brothers, in its Global Weekly Economic Monitor released Oct. 6, credited the Philippines for effecting fiscal reforms and yielding the desired results faster than expected. It further noted that the "reforms have reached a critical point where virtuous spirals are developing, lifting investor confidence, which in turn helps improve the fundamentals."

Better fiscal finances have likewise reduced both the government’s funding needs and the risk premium demanded by creditors, leading to a drop in the 91-day Treasury bill rate and reducing government debt-servicing costs, it added.

With these developments, Lehman Brothers expects the gross domestic product (GDP) growth to hit six percent in 2007, within the government’s forecast range of 5.7 to 6.5 percent, and anticipates the continued decline of the country’s consolidated debt-to-GDP ratio from 87 percent in 2005 to 65 percent in 2008.

Further, the investment bank strongly suggested that credit rating agencies should start rewarding the Philippines for its economic achievements.

"Rather than the Philippines falling behind the curve with reforms, we think it is the rating agencies that are now lagging," it cited in its report.

Merrill Lynch, on its second investment visit during the year, affirmed for the third time since December last year, its overweight recommendation on the Philippines, expecting this year’s progress thus far to be capped with a sharply reduced fiscal deficit at 1.3 percent of GDP from 2.1 percent last year. Its outlook for economic growth remains positive in the absence, it believes, of macroeconomic risks in the near term.

"We think that beyond the remarkable fiscal performance, a number of factors will be supportive of the credit, including much reduced bond supply likely to be announced for next year, and a possible positive rating action," the Merrill Lynch report said.

Nonetheless, both banks underscored the importance of maintaining political stability in the face of national elections next year.

"We are happy to observe that investment banks have recognized the progress the country has achieved on the fiscal policy front and have generated favorable assessments of how this major reform has created virtuous cycles within the economy, positively affecting economic fundamentals and continuing to fuel investor confidence," the central bank’s Investor Relations Office executive director Rene Pizarro said.

"We are particularly pleased to note that these investors have taken our view of a likely positive rating outlook from the rating agencies as they become increasingly convinced of the evidence that the country is delivering targeted results," said Pizarro.

Further, the IRO director underscored the importance of foreign investors conducting direct dialogues with country stakeholders. "The Investor Relations Office is proud to have played a role in communicating the success of the dynamic Philippine economy through coordinating in-bound investor missions. We are glad that our investment bank clients have recognized this role as they regularly coordinate their visits with IRO, helping us ensure that investor decisions benefit from a comprehensive understanding of the progress in reforms and what they mean for the economic fundamentals of the country," he added.

sandrn

October 10th, 2006, 02:21 AM

RP to prepay $460-M debt
CURRENT HIGH FOREX RESERVES GAVE B.S.P. AMMUNITION
http://www.businessmirror.com.ph/front01.php
By Jun Vallecera
Reporter

THE Bangko Sentral ng Pilipinas bared a plan on Monday to pay in advance and in full some of its foreign loans that have yet to fall due starting April next year and the next three years thereafter.

When completed, this will only be the second time the BSP paid its foreign obligations well in advance, the first having been pursued in April this year when it settled a total $500 million worth of obligations.

In a late afternoon statement released on Monday, Bangko Sentral ng Pilipinas governor Amando Tetangco Jr. said they intend to make prepayments on loans worth a total $460 million.

%u201CThe BSP will prepay in full in October 2006 a total $460-million loans and floating rate notes originally due in April 2007 and April 2009,%u201D he said.

He said the advance payment was made possible by the current high level of foreign exchange reserves of some P21.5 billion as of the latest data release, or more than four months worth of the country%u2019s import payment requirements.

The high level of gross international reserves, in turn, was made possible by copious foreign inflows from portfolio as well as foreign direct investments attracted by reforms in the fiscal and monetary sectors.

Such flows have %u201Cimproved the external liquidity position of the BSP,%u201D Tetangco observed.

More important, according to him, the advance debt payments should enable the central bank to save on interest expense as well.

This development should help further boost the value of the steadily appreciating peso that has already worried the export sector and the families of overseas Filipino workers.

An appreciating peso means less local currency equivalent on the foreign earnings of their relatives working abroad.

OFW remittances jumped 16 percent in the first seven months to $7.01 billion and are seen to rise by at least 11 percent the full year from last year%u2019s $10.7 billion.

Officials have since said that net foreign inflows have allowed the BSP to steadily accumulate its dollar hoard without putting undue pressure on the peso.

The steady accumulation of dollars is pursued at just the right balance because foreign exchange purchases always involve the release of peso liquidity that could endanger the carefully calibrated path of inflation for the year.

Having far too many pesos in the system chasing after only so much goods and services tends to push inflation higher. It is forecast to range from 6.9 percent to only 7 percent this year.

Year to date inflation averaged only 6.8 percent thus far or well within forecast.

With OFW remittances at current highs and foreign investment flows steadily pouring in, the country%u2019s foreign exchange reserves were anticipated to hit new highs this year as well.

This bodes well for the peso already previously seen to appreciate as high as P48 per dollar later this year.

3cr

October 10th, 2006, 02:22 AM

It doesn't mean that all those critical of the Arroyo Gov't are necessarily oppositionists already. I for one am not. As much as everyone would want and welcome all these so-called GMA accomplishments and good news, the truth of the matter is the devil is in the details. Hindi lang lahat ng tao madaling mapaikot ng GMA propaganda. In the end of the day, she's a public servant so she and her gov't need to be transparent and truthful of the real condition of the country. So to you Ate Glo Second World my ass!!!

ADB notes jobless growth in RP
By Euan Paulo C. Añonuevo
Manila Times
http://www.manilatimes.net/national/2006/oct/10/yehey/business/20061010bus2.html

QUALITY of life in the Philippines has declined since higher growth rates in the past few years failed to generate enough jobs, a ranking official from the Asian Development Bank (ADB) said.

Ifzal Ali, ADB chief economist, in the recently held Annual Philippines Statistical Association (PSA) Conference, said, “the Philippines’ higher rate of growth is not commensurate to employment growth.” The country’s economy expanded by 6 percent, 5.1 percent, a projected 5.4 percent and a forecast 5.3 percent in 2004, 2005, 2006 and 2007, respectively.

However, Ali noted that the poverty incidence remains as high as 30 percent of the population, net enrollment ratio in primary education has declined from 97 percent in 1990 to 94 percent in 2004, primary school survival rate has not improved and remains low at 76 percent in 2003 and the immunization rate against measles of 1-year-old children has also declined from 85 percent in 1990 to 80 percent in 2004.

“Wealth creation in this case has not led to broader improvements in the quality of life,” Ali said.

The National Statistics Office (NSO) earlier reported that the country’s unemployment rate in July rose to 8 percent in 2006 from 7.1 percent the previous year. The labor force participation rate was at 64.8 percent last year.

Also, most employment opportunities were found in low-productivity and poor-quality work in the informal economy which leads to inadequate expansion of opportunities for decent work or productive work in which rights are protected, Ali said.

“For many, decent work is the primary means to get out of poverty. Measuring decent work, therefore, would provide a gauge for policy makers on the people’s hopes to obtain productive work in conditions of freedom, equity, security and human dignity,” he added.

____________________________________

Malnutrition must be addressed — Villar
http://www.mb.com.ph/MTNN2006100876501.html

Senate President Manuel "Manny" B. Villar Jr., who had expressed concern over the seemingly malnourished condition of many Filipino students all over the country, hopes that the National School Health and Nutrition Congress of the Department of Education (DepEd) from Oct. 9-12 would result to concrete measures to implement an efficient school-based health and nutrition program.

"Malnourishment is increasingly becoming prevalent among Filipino schoolchildren. It was reported that there are now close to 3.67 million malnourished children nationwide or about one-fourth of all schoolchildren," said Villar, president of the Nacionalista Party (NP).

To commemorate October as "School Health Month," DepEd will discuss possible strategies for sustained school health and nutrition development in its four-day congress to improve the health and nutrition of schoolchildren.

Villar said there is an urgent already to modernize and upgrade the School Health and Nutrition Program (SHNP) of the DepEd to maximize its efficiency. In line with this, Villar recently filed Senate Bill (SB) 2384 or "An Act Providing for the Modernization of the SHNP of the DepEd."

"The SHNP is designed to promote, protect, and maintain the health and nutritional well-being of the various sectors of elementary and secondary educational institutions, thus, they play a crucial role in addressing malnutrition among Filipino schoolchildren," he said.

Villar also filed SB 2403 or "The Nutripack Act" which seeks to institutionalize a nutrient supplementing or feeding program similar to the "nutribun" feeding program during the 70s and 80s to augment the dietary needs of schoolchildren, pregnant women, nursing mothers, and the elderly. As an incentive, supporters of the nutripack feeding program shall be given due tax credit equivalent to 100 percent of their contribution.

"We should not shrug off comments by nutrition and education experts about the direct correlation of proper nutrition and enhanced learning capabilities in children. If we really want Filipino children to grow up to be intelligent people, we should help provide adequate nutrition to them," Villar said.

3cr

October 10th, 2006, 02:44 AM

How can we attract foreign investment if the cost of electricity is so high and even worse the expected mass/rotating brownouts to be prevalent in the coming years.

'Expect RP-wide brownouts by ’08'
By NIEL V. MUGAS
The Manila Times Reporter
http://www.abs-cbnnews.com/storypage.aspx?StoryId=52692

The Philippines can expect "rotating brownouts" in 2008 because generating capacity would be severely insufficient by that time and the expected repair of existing power plants would not have been completed.

Energy-industry watcher and industrialist Raul Concepcion, chairman of the Consumer and Oil Price Watch (COPW), said the Philippines can suffer rotating brownouts as early as the summer of 2008, due to the tight supply of electricity.

Citing figures from the Philippine Energy Plan of 2005, Concepcion said the Philippines needs an additional generating capacity of 4,438 megawatts (MW) over the next five years to avoid a power crisis.

If this needed capacity is not put in place, the Philippines can experience rotating brownouts during peak loads, he warned. "If we don’t do it [put up additional generating capacity], then will have rotating brownouts during the summer of 2008, especially during peak loads," Concepcion said.

The insufficient generating capacity is expected to be aggravated by the unexpected need to do maintenance work on several power plants whose maintenance has been falling behind schedule. When a plant undergoes maintenance it has to shut down temporarily.

He noted for example that about 600-MW capacity of the Sual plant cannot produce power since it is under repair for at least six months. This has slashed the dependable capacity in the Luzon grid.

The 1,200-MW Ilijan gas-fired plant also cannot produce power during its shut down due to the maintenance of the Malampaya gas pipeline between November 18 and December 12.

The media tried to get the Department of Energy’s side but Energy Secretary Raphael Lotilla was unavailable for comment.

The COPW chairman demanded from the Department of Energy a list of all power plants and their scheduled maintenance so power producers will know when to augment power supply.

Concepcion said the Philippines will need at least 1,500 MW as a short-tem solution and avert rotating brownouts and 4,438MW to fully prevent a power crisis.

The National Power Corp. has the option to run old and shuttered power plants totaling 3,400MW to ensure a stable supply of electricity in the country but Concepcion warned that this option raises the possibility of causing electricity price spikes.

Much of NAPOCOR’s standby generating capacity are running on diesel, bunker and oil which can cause power prices to further shoot up.

_______________________________________

Power sector: a new ballgame
Manila Standard Editorial
http://www.manilastandardtoday.com/?page=editorial_oct9_2006

Government warnings of possible rotating brownouts in November and real outages in 2010 and 2011 if no new power plants are put in place by that time should be taken seriously.

The Malampaya production platform off Palawan island, which supplies natural gas to the 1,200-megawat Ilijan plant and the 1,500-mw Sta. Rita/San Lorenzo power stations, both in Batangas province, are to be shut down for 25 days for maintenance work. The supply cutoff from Malampaya could deprive the Luzon grid of some 2,700 megawatts of natural gas electricity and result in intermittent power outages next month.

Energy Secretary Raphael Lotilla has assured that contingency measures will be put in place to remedy the situation, including the reactivation of idle power plants and the use of alternative fuel sources, other than natural gas. The power disruption, however, illustrates the thin reserves available in the system, making Luzon and Metro Manila very vulnerable to sudden supply disruptions. The temporary shutdown of Malampaya’s natural gas field, according to authorities, will leave Luzon with an available power capacity of only 6,744.4 mw, or a reserve margin of 16 percent over the maximum projected consumer demand of 5,810 mw. Ideal reserve requirement for the Luzon grid is about 30 percent. Meanwhile, a thin power reserve margin, like the crude oil situation in the world market, will also drive up electricity rates.

The power outlook can get dimmer for four or five years from now. The government’s Power Development Plan assures enough supply up to 2010 to 2011 only. “Hence, contingency plans must be set in place immediately, considering that it takes at least four years to construct major power plants,” Lotilla said.

The energy chief also conceded that the Philippines could only enjoy lower electricity rates if additional power plants are constructed. The government could no longer count on state-owned National Power Corp. (Napocor) to subsidize power rates. In the past, this move only led to huge fiscal deficits.

The power industry has drastically changed since the government made it a policy to privatize Napocor’s power plants. The basic economic principle of supply and demand and its influence on power rates, however, remains.

The government and the private sector, thus, must act fast to prevent a repeat of the debilitating outages in the ’90s that forced former President Fidel Ramos to tap expensive power plants offered by independent producers.

sandrn

October 10th, 2006, 02:44 AM

3cr

October 10th, 2006, 04:22 AM

What was manipulated there? I didn't see any word that says MANIPULATED. The main point of this article is that the IMF cautions the government in resorting to "off-budget" schemes from GOCCs to fund projects. It is not even illegal. And it would really be logical for the government to find other ways to fund its projects since the 2006 budget was not passed. So what's wrong with that?

The article did not mention manipulate, of course not, they are not saying it's deliberate manipulation but what the IMF is alluding to is the possibility and plausibility of manipulation (deliberate or not) in the part of Gov't institutions (through so-called "masking" aka "passing the buck") to get their much needed public works projects done via the hands of a third party thus circumventing the proper external audits, checks and balances, etc. that would otherwise be attached/mandated with certain types of loans and grants coming from the IMF, World Bank, etc for infrastructure and other public projects. By opting for "off-budget" schemes to fund and build projects, the responsibility and accountability for the project now passes from the Gov't to the said third party ( a corporation - an entity) which is there to make profit (that's why their in business di ba) above anything else. There will be shoddy work, materials and even machineries passed along when there are no clear lines of accountability nor checks and balances in place so it doesn't always end up to the supposed advantage of the people of the Philippines because resulting projects can end up being overbudget (Macapagal Hi-way), inefficient/unprofitable (Napocor), and/or even inferior (NAIA 3).

Ang masama duon ay there is an apparent lack of proper checks and balances nor due diligence in the part of the Gov't when the Gov't backed/created corporations build/run those projects. Furthermore, since such project is no longer reportable to World financial Institutions, the lack of accountability to the World Financial Institutions nor even the Gov't (because if they were then those 3 projects would have not ended up like they did) perpetuates shoddy work, materials, and even machineries. So in paper or data purposes, yes the Gov't can claim a new road, an energy/power plant, and airport statistically (without having to borrow for it) but in reality it is costing the people of the Philippines more in the end of the day and we're the ones who's going to be burderned paying for the gov't's misguidedness and lack of accountability for the said projects.

Such method may not be illegal as you said but when there is alot of hanky panky going on (and we know this actually happens) behind the scenes, it does not make for good business in the long run kasi tayo rin ang tinatamaan sa huli. How do you think that Macapagal Hi-way/Rd became the most expensive road project in Asia on a per SQM basis? The Napocor and NAIA3 fiascos are another examples how "off budget" schemes can backfire big time. And in most if not all cases the extreme and irreversible damage has already been done before any Gov't audit can even be done. By then huli na ang lahat by then and in the end who ends up bailing and paying for all these kapalpakan? Oh that's right tayong mga Mamamayang Pilipino diba.

The IMF could very well be giving the Arroyo Gov't the benefit of the doubt and is just advicing that the Gov't, if it continues to do projects this way, will have to be more diligent and forthcoming so that we don't end up with the short end of the stick like in this 3 examples. Ang tanong eh how sure are we na ang gobyerno ay talagang innocente at walang kick-back dito na nangyari and we have the right to know how it end up this way afterall ang sambayanang Pilipino ang magbabayad nitong mga kapalpakang pinabayaan ng gobyerno mangyari.

3cr

October 10th, 2006, 04:30 AM

^ Because the population is too high that the gains cannot be felt immediately by the poor. And also, the poor lacks the necessary skills to find decent jobs in the booming BPO industry. Why they turned out to be that way is not the fault of the Arroryo Admin but the past presidents in the 80's and 90's.

The most important thing is that our macroeconomic condition has been on a steady growth. The Arroyo government is taking the right path of improving the macroeconomic first so later on, the gains will spread through the microeconomy. In case you're in denial, the Arroyo government inherited a poor macroeconomic condition that pulled down the microeconomy.

The problem with the oppositionist is that they lack a virtue called patience.
They had their time, they failed. And now they are acting like crabs when they see the current government gaining in full swing.

Just like you I sincerely want to see a better Philippines and even if GMA may have inherited or stolen (depending who was asked) a not so healthy Philippine macroeconomic condition that as you said pulled down the microeconomy, there were other neighboring countries that were in poorer shape than us at the time and during the time she's been in power. Vietnam, a war torn country as recently as the 70's and a communist nation no less has officially surpassed us as the article below suggest. This happened under her watch and people can't be blamed for asking why we have fallen and failed where other's have succeeded during the same time period, considering we were not hit as badly during the Asian crises as reported. As I've said before I'm not an oppositionist to GMA's rule but rather a concerned citizen and as Ate Glo is a public servant I believe we still have the right to ask and even criticize her for that matter for the country's less than competitive showing and we're not even going to touch the Macapagal road, Napocor, and even NAIA 3 fiascos under her watch.

Anyway I can only hope you are right that it will eventually trickle down to the poor. Just that ever since time and memorial it seems the gap between the rich and the poor is actually widening instead of contracting. Ang mayaman lalong yumayaman at ang mahirap lalong naghihirap eh ang majority ng mga Pilipino mahirap so I wonder how the wealth effect will ever become more evenly distributed which is why personally I'm very skeptical it will be the case. Let's hope for the best na lang at magdilang anghel ka sana...

Vietnam overtakes RP in rating, growth
09/11/2006
Tribune

What was once a joke to dramatize the lethargic economy under President Gloria Arroyo may have turned into reality as Vietnam, a war-ravaged country in 1970’s, overtook the country in credit rating and projected economic growth.
Standard and Poor’s (S&P) upgraded Vietnam’s credit rating to BB, reflecting positive changes arising out of the nation’s economic reforms, to make it one grade higher than that of the Philippines.
The World Bank has praised Vietnam for reducing poverty through rapid economic growth but also called on the communist-ruled country to speed up market reforms and vigorously fight corruption.
“Vietnam has been remarkably successful in generating growth and reducing poverty,” said World Bank managing director Juan Jose Daboub, with 30 million people lifted from poverty since the launch of reforms 20 years ago.
Asian Development Bank (ADB) country director Ayumi Konishi called Vietnam “the star of Southeast Asia” and projected a 7.8 percent economic growth this year, Asia’s fastest rate after booming China, compared with a projected 5.4 percent growth for the Philippines.
Standard & Poor’s said Vietnam had “strong economic growth potential” with good labor productivity and a high savings rate, but also warned it still faced “structural weaknesses” including an undercapitalized banking system.
The World Bank, with projects worth nearly $4 billion in Vietnam, would commit another $800 million per year over the next five years to support a reform agenda that “could be a model for other countries,” he said.
But Daboub also said there was now “a sense of urgency in Vietnam. We believe that we have to move faster. The country has to accelerate the process of reforms so that the people can reap the benefits faster.”
Calling for further liberalization, Daboub warned that “neighboring countries are not going to stand still and wait for Vietnam to move. They’re moving forward and Vietnam has a choice — which is to lead or to follow.”
The praise tempered with caution echoed comments made by the ADB, ratings service S&P and the US Treasury Secretary Henry Paulson over the past week.
Paulson said while Vietnam’s expected accession to the World Trade Organisation (WTO) this year would “accelerate growth and increase living standards,” it “needs to be followed by further reforms.”
Some key shortcomings were highlighted in a report last week by the World Bank and International Finance Corporation, which ranked Vietnam 104th out of 175 countries in terms of the ease of doing business.
Red tape, especially in tax and bankruptcy procedures, and a lack of minority shareholder protection were among the hurdles that meant Vietnam “remains a challenging place to do businesses,” said the report.
The World Bank’s Daboub said “there are still many tasks pending,” speaking just after a meeting of Asia-Pacific Economic Cooperation finance ministers in Hanoi.
He said Vietnam needs “institutions that work,” including a stronger legal system, vigilant oversight of the financial sector, and a strong media that can hold state institutions accountable.
“We believe that it is important to maintain commitment for a governance agenda that is the strengthening of institutions that work, as well as the fight against corruption,” Daboub told a media briefing Saturday.
He highlighted a corruption case that rocked the regime this year, the loss of millions of dollars in the transport ministry’s infrastructure unit PMU 18, which saw a minister sacked and several officials jailed.
The PMU 18 portfolio included $130 million from the World Bank, which is due this month to release the results of a probe on whether corrupt cadres squandered and gambled away some of its money.
Daboub said the case showed that there were “some cracks in the system” and urged Vietnam to enforce new laws to prevent similar abuses.
“We need to make sure,” he said, “that those cracks are closed with cement.”
Finance Minister Vu Van Ninh said a higher S&P credit rating would help Vietnam affirm its developing financial capacity. Ninh cited this as an opportunity for Vietnam to attract domestic and foreign resources, particularly from the international capital market, in order to develop its economy.
Vietnam should take advantage of this chance to continue issuing government bonds on the international market, he said, adding, however, that the country should carefully prepare projects before issuing bonds.
“What’s most important is how to use capital, not to draw capital,” he said.

marites4

October 10th, 2006, 04:44 AM

sana nga lang umpisa nato, Hinde naman kasalanan lahat yan ni GMA 30 years napabayaan pilipinas. Walang ginawa kundi magpalago ng tao. Naguumpisa pa lang tayong makaahon pero kailangan mas aggresive pa ang gobyerno Dame dame nang tao kase. kahit China sa sobrang dame nilang tao hindi nila alam kung saan sila kukuha ng natural resources para sa pupulasyon nila at yung pollution na nangyayare sa kanila dahil sa rapid growth. kahit anong ecosystem kailangan balanced ,saten sobra tao

3cr

October 10th, 2006, 04:52 AM

Kanya rin siguro para mabawasan ang population the Gov't pushed for an aggressive OFW program which is also very much helping the country's dollar earning capacity and reserves. Kanya ba "Bayani" ang tawag ni GMA's sa mga OFW's dahil sa tulong nga mga ito sa ating bansa?

marites4

October 10th, 2006, 05:34 AM

kawawa nga mga marameng pilipino biruin mo ang sweldo nila kasya lang sa pagkaen at kuryente pano pa makakabili ng maayos na bahay. tapos ang bilihen sa grocery ultimo hanggang toothpaste, sabon, appliances, tools lahat presyong imported ang yumayaman lang yung mall owners kagaya ni MR SY at MR AYAla dahil middle men sila. corporate social responsibility daw eh si MR JOliibee panay stryrofoam at plastic ang pinaggagawa. Mga tricycle kailangang iban yung usok naten grabe paano magreretire sa PIlipinas mga tao. Mga tao walang pake ,kung magdrive parang mga sira ulo

beads_strawberries

October 10th, 2006, 06:04 AM

How can we attract foreign investment if the cost of electricity is so high and even worse the expected mass/rotating brownouts to be prevalent in the coming years.

[/B]

The Department of Energy should look into this matter to prevent negative effects of this possibility. It should be noted that the government has been finding alternative sources of energy since the issue of higher oil prices began. As of now, the government is conducting researches in pursuit of independent energy resources. This could ultimately help us should there be probability of nationwide brownouts. More importantly, if we will have an enabling law to support the energy independence, we may ultimately prevent this kind of scenario.

3cr

October 10th, 2006, 07:17 AM

I agree. I just hope the gov't is able to come up with plausible solutions/options to our power problems timely and responsibly para hindi mabawasan ang ating foreign direct investment for 2007 and beyond. We have to remain competitive or we'll always be relegated to being one of the last options for many of these foreign investors. Definitely better if we'll be one of the top choices instead to help spur the economy even further.

JAMAICUS

October 10th, 2006, 08:06 AM

Global investment banks bullish on RP

The Philippine Star 10/10/2006

International investment firms Lehman Brothers and Merrill Lynch expect significant improvements in the Philippines’ macroeconomic fundamentals as a result of the fiscal reforms implemented.

Lehman Brothers, in its Global Weekly Economic Monitor released Oct. 6, credited the Philippines for effecting fiscal reforms and yielding the desired results faster than expected. It further noted that the "reforms have reached a critical point where virtuous spirals are developing, lifting investor confidence, which in turn helps improve the fundamentals."

Better fiscal finances have likewise reduced both the government’s funding needs and the risk premium demanded by creditors, leading to a drop in the 91-day Treasury bill rate and reducing government debt-servicing costs, it added.

With these developments, Lehman Brothers expects the gross domestic product (GDP) growth to hit six percent in 2007, within the government’s forecast range of 5.7 to 6.5 percent, and anticipates the continued decline of the country’s consolidated debt-to-GDP ratio from 87 percent in 2005 to 65 percent in 2008.

Further, the investment bank strongly suggested that credit rating agencies should start rewarding the Philippines for its economic achievements.

"Rather than the Philippines falling behind the curve with reforms, we think it is the rating agencies that are now lagging," it cited in its report.

Merrill Lynch, on its second investment visit during the year, affirmed for the third time since December last year, its overweight recommendation on the Philippines, expecting this year’s progress thus far to be capped with a sharply reduced fiscal deficit at 1.3 percent of GDP from 2.1 percent last year. Its outlook for economic growth remains positive in the absence, it believes, of macroeconomic risks in the near term.

"We think that beyond the remarkable fiscal performance, a number of factors will be supportive of the credit, including much reduced bond supply likely to be announced for next year, and a possible positive rating action," the Merrill Lynch report said.

Nonetheless, both banks underscored the importance of maintaining political stability in the face of national elections next year.

"We are happy to observe that investment banks have recognized the progress the country has achieved on the fiscal policy front and have generated favorable assessments of how this major reform has created virtuous cycles within the economy, positively affecting economic fundamentals and continuing to fuel investor confidence," the central bank’s Investor Relations Office executive director Rene Pizarro said.

"We are particularly pleased to note that these investors have taken our view of a likely positive rating outlook from the rating agencies as they become increasingly convinced of the evidence that the country is delivering targeted results," said Pizarro.

Further, the IRO director underscored the importance of foreign investors conducting direct dialogues with country stakeholders. "The Investor Relations Office is proud to have played a role in communicating the success of the dynamic Philippine economy through coordinating in-bound investor missions. We are glad that our investment bank clients have recognized this role as they regularly coordinate their visits with IRO, helping us ensure that investor decisions benefit from a comprehensive understanding of the progress in reforms and what they mean for the economic fundamentals of the country," he added.

http://www.philstar.com/philstar/news200610100701.htm

heathcliff

October 10th, 2006, 09:21 AM

3cr

October 10th, 2006, 10:33 AM

The short answer is YES. Forecasts are basically educated predictions of what the future condition/expectation will be based on extrapolated data. Their analyses rely on and are based on data that could have been manipulated to make it more favorable to the country in question. Besides what they may say today can just as easily be revised/changed after a few months (following quarter infact). As much as many would like to be optimistic about the country's future we can not discard the fact that it is just as possible that the country could go into recession as this article suggest. Anyway nobody can really predict the future though forecasts do help one prepare for what the future may bring. Let's hope for the best as we all do wish for the betterment of the Philippines!

RISKY BUSINESS: Crisis brewing in the Philippines
By Jephraim P Gundzik
Asia Times

Are foreign investors greatly underestimating the risks associated with the Philippines? The probability of terrorist strikes is growing, while the country's volatile political and social environments appear set to destabilize significantly. Terrorism and destabilization could further undermine the country's already weakening economy, leading to much slower-than-expected economic growth in 2006 and possibly even a recession in 2007.

Foreign and domestic investors alike have built significant positions in equities, domestic fixed-income securities and international bonds based on overly optimistic economic assumptions. These positions may be dumped in dramatic fashion as perceptions of investment risk become more realistic in the months ahead, leading to substantial and destabilizing capital outflows.

Philippine security and government officials regularly play down the threat of future terrorist strikes, but the picture could be far less rosy than these officials are willing to admit publicly. In mid-2006, the US State Department's coordinator for counter-terrorism, Henry Crumpton, noted this about the terrorism potential in the Philippines: "The threat is very serious if you look at recent events, the intention of enemy forces, their collaborating with affiliates all around the region, and their technical skills, especially in bomb-making, their tradecraft skills."

Crumpton was referring to the well-established nexus between international and domestic terrorist organizations in the Philippines. The home-grown Abu Sayyaf and the Rajah Solaiman Movement (RSM) are believed to be combining resources and expertise with the Indonesia-based terror group Jemaah Islamiya (JI), which is believed to have ties with al-Qaeda. The Abu Sayyaf and RSM probably have more 2,000 hardcore members combined. Meanwhile, security experts believe that at least 40 JI operatives are currently in the Philippines training jihadis in the finer points of bomb-making.

The presence of JI operatives in the Philippines was made apparent last month when the military launched a joint offensive with the US aimed at a terrorist training camp on Jolo Island. In addition to targeting the Abu Sayyaf's leadership, the joint Philippine-US military action was meant to capture two leading JI members, Dulmatin and Umar Patek. These JI leaders, who are believed to have played key roles in the 2002 Bali bombings in Indonesia, were apparently encamped with the Abu Sayyaf. No high-ranking Abu Sayyaf or JI leaders were captured or killed, however.

In late July, Philippine defense officials announced that US commando teams would be deployed during the second half of 2006 and the first half of 2007 to hold "anti-terror" drills with Philippine troops. These drills are to take place in the western and central parts of Mindanao, where Abu Sayyaf and JI militants are based, and are likely to mark the beginning of a broad and potentially violent US-backed offensive. It can be assumed that the government of President Gloria Macapagal-Arroyo would not be expanding the military offensives against the Abu Sayyaf and JI if these organizations were in decline.

The budding Abu Sayyaf-JI relationship also appears to have embraced the RSM. The RSM, which was established in 2002, originated among a small group of Balik Islam members in the Philippines. Balik Islam is a legal organization composed of Christian converts to Islam and has more than 200,000 members, many of whom are concentrated in the traditionally Catholic regions of Luzon and Manila. Balik Islam is said to have gained strength in recent years with the return of Filipino workers from the Middle East.

For instance, the RSM is believed to have participated in the bombing of SuperFerry 14 in February 2004 and in the February 2005 multiple bombings in Manila, General Santos City and Davao. Being composed of non-ethnic converts to Islam and located in predominantly Catholic regions of the Philippines, the RSM's members can more easily blend in with the country's urban population than their ethnically different counterparts. For this reason, the RSM could pose a significant and increasing security threat to large metropolitan areas, including Manila.

High political risk

On the surface, the Arroyo government appears strong and capable and has used its legislative majority to implement highly unpopular economic reforms. Arroyo has demonstrated a unique ability to deepen her support within the power structures of the Philippines despite allegations of vote-rigging and corruption.

The Arroyo government's inroads with the power elite, however, belie very weak popular support. Widespread anti-government protests, repeated efforts to impeach the president and numerous attempted coups indicate that anti-Arroyo sentiment runs very high among a large and diverse proportion of the electorate. Opinion polls conducted over the past 18 months have shown popular support for the president ranging between 25% and 35%.

Making the disparity between her legislative and popular support sharper have been other opinion polls that consistently show that since 2005, more than half of the electorate believes the president should be impeached. Arroyo's legislative alliances have been built by patronage, and with mid-term elections scheduled for next May, these alliances could become increasingly shaky as self-interested legislators weigh whether abandoning Arroyo would improve their own re-election prospects.

Faced with potential defeat in May, Arroyo is seeking to postpone or cancel the mid-term elections through an amendment to the 1987 constitution. The proposed charter changes were initially broached late last year by a 55-member Consultative Commission appointed by Arroyo. Among other suggestions, the commission controversially recommended that the 2007 mid-term elections for the House of Representatives and Senate be canceled and that current elected legislators combine to form an interim parliament charged with overseeing reforms.

Protests against that plan staged early this year played a role in triggering the state of emergency Arroyo controversially declared in February. That opposition forced the government at least temporarily to backtrack on the charter-change initiative and recommend that the 2007 mid-term elections go ahead as constitutionally mandated. The government is now exploring other legal avenues to change the constitution.

Even if next year's elections go ahead, growing political and social polarization could spur more violence and instability - a situation that could be exploited either by terrorist organizations or by the country's leftist insurgents. After the February coup plot, the Arroyo government undertook a crackdown on her leftist opponents in Congress.

In mid-June, the government launched a military offensive against the Communist Party of the Philippines and its armed wing, the New People's Army, marking a significant escalation in a decades-old conflict. The NPA is active in 69 of the Philippines' 79 provinces, suggesting that the government's military offensive could spark a sharp escalation in violence throughout the country.

Economic soft spots

If so, political and social instability could negatively impact economic growth throughout 2007. Strong growth in personal consumption expenditure, sustained almost exclusively by rising foreign worker remittances, is the country's main economic engine. Though expanding exports have supported economic growth in the first half of this year, exports are likely to weaken as US and global economic growth slows in the second half of 2006 and into 2007.

Remittance dependency has also increased the Philippines' vulnerability to external economic shocks. Economic weakness in countries hosting Filipino workers reduces external employment and remittances. In 2006, the growth of remittances from overseas Filipino workers is expected to weaken in accordance with slowing economic growth in the US, where most remittances originate. Already in the first half of 2006, the growth of foreign worker remittances slowed to 15% from 24% from the same period in 2005.

Meanwhile, domestic investment in the Philippines is chronically weak, having contracted in real terms by a cumulative 4% between 1999 and 2005. Contracting investment has contained employment growth and pushed real wages lower. Fiscal austerity undertaken by the Arroyo government, under the guidance of the International Monetary Fund, has reduced and will continue to reduce public-sector consumption and investment expenditure.

Despite overwhelming evidence of economic weakness, government officials, multilateral lenders and economic analysts still believe real growth will remain above 5% in 2006 and even accelerate in 2007. Though how is this even going to be possible when the country is projected to have energy problems starting 2007 And even then the projected increase in demand for energy coupled with the spiking international oil prices will put upward pressure on the already high energy cost (the second highest in Asia) making the country even less competitive to other nations in attracting foreign direct investments. Furthermore if the US economy continues to slow in 2007, a notion supported by America's already weakening housing market, the Philippine economy could easily fall into recession.

Extremely optimistic economic-growth forecasts for the Philippines and distorted risk perceptions have encouraged substantial inflows of foreign portfolio investment to the country over the past 18 months. In 2005, net foreign portfolio investment jumped by US$2.8 billion. In the first quarter of 2006, net foreign portfolio investment increased by a further $2.2 billion. Of this $5 billion of inflows, only about one-half originated from real foreign investors. The other half, it appears, originated from exchange-rate arbitrage in international currency markets conducted by Philippines-based banks.

Banks have been borrowing abroad, mainly in Japanese yen but also in US dollars, and investing the proceeds in short-term domestic fixed-income securities. The surge of external borrowing by banks can be clearly discerned in the external-debt statistics of the Philippines. In 2005, for instance, the external debt of private banks increased to $6.4 billion from $3.7 billion in 2004. Foreign banks in the Philippines accounted for about $2 billion of the $2.7 billion increase in the banking sector's external debt over that period. With real domestic credit and investment contracting sharply in 2005, it is highly unlikely that any of the external funds borrowed by banks were used for anything other than arbitrage bets.

This arbitrage was a significant factor behind the sharp appreciation of the peso, especially against the yen, in 2005. In addition to banks, foreign investors also targeted short-term domestic fixed-income securities in 2005. In the first quarter of 2006, heavy foreign portfolio and domestic bank arbitrage inflows continued. These inflows probably reversed somewhat in May and June, when the peso weakened sharply. However, the renewed strength of the peso in July suggests some of these positions have been rebuilt.

In addition to producing peso appreciation and sharply negative real domestic interest rates, foreign portfolio investment inflows and domestic bank arbitrage plays have also propelled the equity market higher and tightened spreads on the Philippines' international bonds. When foreign and domestic investors meet economic - and potentially a jarring political - reality, a large-scale correction in asset values and the exchange rate will follow.

JAMAICUS

October 10th, 2006, 10:53 AM

RP taking right steps to stay
competitive, says innovation expert
AN international expert on innovation noted that the Philippines is headed the right direction by embracing voice over Internet protocol (VoIP) in order for its companies and industries to become competitive.

“The Philippines has a great tradition in innovation, and it is complemented by the tools such as the voice over Internet protocol to drive growth,” said Robert Tucker in a recent press briefing held in Makati City.

Tucker, an internationally recognized leader in the field of innovation and formerly an adjunct professor at the University of California, Los Angeles, said VoIP has caused a paradigm shift worldwide as more and more users are transferring to the technology from the traditional telecommunication companies.

He stressed that innovation must be a continuing process to ensure the survival of business organizations in the era of globalization.

He said that companies must be proactive in pursuing innovation to give the management and staff big elbowroom for the major shift. He also stressed innovation must be done during the good times as to deliver a smooth transition.

“Companies must be three to five years ahead of the cleanup. The best defense is a good offense,” he said.

Tucker pointed out US computer giant International Business Machines (IBM) as the prime example of an organization that pursued innovation in order to withstand the problems it faced in the early 1990s.

Former IBM head Louis V. Gerstner Jr. has been credited as the man who turned Big Blue around to profitability. Before Gerstner took over the technology giant in 1993, IBM shares were in freefall and the company was on the verge of collapse.

Although having no technology background, he was hired for his successful management of RJR Nabisco and American Express.

Tucker also said that listening to the various stakeholders is an important aspect for innovation. The resulting collaboration, he said, is essential for this exercise allows the gathering of inputs to ensure the success of the innovation process. “There must be brainstorming and creativity sessions to ensure it will done in the correct way,” he said.

In the local scene, IBM Philippines, through its global technology services, offers Integrated Communications Services to enterprises seeking innovation. According to IBM, the service focuses on the delivery of innovative network and communication service products that are asset-based, replicable and standardized for clients ranging from the Fortune 500 to small and medium-sized businesses. Rizal Raoul Reyes

http://www.businessmirror.com.ph/sfeature02.php

heathcliff

October 10th, 2006, 10:59 AM

3cr

October 10th, 2006, 11:08 AM

I'm not saying we should discard their assessments, I'm just saying there is always that possibility that such assessments could have been derived from tainted data. Foreign perception can also be manipulated not just via data but PR as well. Di ba GMA spent millions of dollars for PR agancies and lobbyists? Diba that's a form of propaganda ang mga yon? Anyway assessments are educated predictions of future expectations so as we both agreed nobody can actually predict the future so hope the best na lang.

I don't know if I would consider them gullible but why is it that they continue to lend even to those countries that could not be able to repay their loans? Even the Philippines will not be able to pay-off what they owe in my lifetime nor my children's lifetime imo. Kung ang consumers eh may absolute consumer borrowing limit, pagdating sa world/international markets actually there is no such thing as an absolute borrowing limit as far as countries are concerned. Papahiramin at papahiramin yan maski lubog na sa utang maski na masama pa ang credit rating kasi alam nila a country has assets that can be used as collateral kung hindi makabayad. It's all in the Politics baby! Well kanya kanyang paniniwala nga yan so I guess we can believe what we want to believe.

Puzzles, contradictions, ironies (in the Gov't economic data)
By Cielito Habito
Inquirer
10/08/2006
http://business.inq7.net/money/topstories/view_article.php?article_id=25537

Published on page B4 of the October 9, 2006 issue of the Philippine Daily Inquirer

RECENT economic performance data reveal a number of apparent contradictions, some of which are downright puzzling, and some which are disturbingly ironic. These come out of the fact that as always, there is a mix of good news and bad news which when taken together, don't seem to add up or make sense.

In my most recent economic briefings, I highlight seven such apparent puzzles. I focus on three here.

Growth and employment

The first and most telling contradiction is the way that the respectable 5.5-percent growth of the economy in the second quarter of 2006 was accompanied by a worsening of unemployment, which rose from 7.7 percent last year to 8 percent this year.

Data show 928,000 new job-seekers joining the workforce over the past year. However, only 735,000 net new jobs were created by the growing economy, adding almost 200,000 to the ranks of the unemployed, who now number close to three million.

These numbers tell us that for our economy, a 5.5-percent overall growth rate is simply not good enough. In recent periods, the growth has been coming from less job-creating (i.e. less labor-intensive) sectors like finance, communications and mining.

But the sectors that tend to create more jobs as they grow include agriculture, construction and manufacturing.

Job-eating growth?

This leads me to another contradiction in the recent data that seems to be a real puzzle. Agriculture actually was the star performer in the second-quarter data, posting a 6.7-percent improvement, well above that sector's average performance over the past years.

And yet, official data show that the sector actually lost a hefty 149,000 jobs over the past year. This suggests that not only did the sector have what economists now call a jobless growth; it even had a job-eating growth!

The usual explanation for this seeming contradiction would be increased mechanization and use of labor-saving technologies.

So I checked the data to see if there was indeed more mechanization in the sector. But lo and behold, detailed investment data showed that investments in farm machinery and tractors actually fell by 35 percent and 10 percent respectively! So it cannot be that.

Painful irony

If it's not farm mechanization that brought about this job-eating growth, could it be higher-yielding hybrid seeds? Well, maybe--especially since corn and palay, the focus of the government's hybrid seed program, led the growth of the sector with 49 and 10 percent, respectively.

But there is a painful irony here, if this is indeed the explanation.

While hybrid seeds may be succeeding in producing more rice and corn for Filipinos to eat, close to a million (that is, 149,000 new jobless farm workers times an average of six family members) additional rural dwellers out there are now unable to eat decently due to unemployment and poverty.

No wonder the SWS hunger index reached a record high of 17 percent earlier this year.

Lesson for DA

There is a real challenge to our agriculture authorities here. It is important to remember that our goal for the sector is not merely to increase agricultural production; it is ultimately to improve the welfare of farm families. The success of the Department of Agriculture should not be measured on the basis of farm output alone; that is not an end in itself. Ultimately, it is people that matter.

While consumers in general benefit from increased farm output, and presumably lower food prices, we need to find a way to ensure that farm dwellers are not left behind. And here, many were not only left behind; they were even pushed deeper into poverty with the loss of jobs.

Our legislators need to keep this in mind as well. While right-thinking agriculture officials understand that there is more to their mission than raising farm output, I hear them lament that congressmen grilling them on their budget appear to be fixated on production levels, especially of crops dominant in their respective districts.

Confidence crisis

A third major contradiction in the data concerns how overall investment fell by a hefty 5.8 percent, while foreign direct investment inflows were reported by the Bangko Sentral to have jumped by 53.5 percent!

This tells us that the drop in investment by Filipinos themselves was much steeper than suggested by the already bad decline in overall investment. The fact is, total investment has been dropping for the last six quarters, and has gotten worse with a deeper drop in the latest report.

An irony, it seems, but foreigners seem to have more confidence in us than we do ourselves. Do the foreign investors know something that Filipino investors don't? Or is it the other way around--they don't know something their Filipino counterparts do?

Whichever way it is, there is nothing short of a crisis of confidence in the Philippine economy, particularly from those more intimately familiar with the domestic economic and political scene. And this confidence crisis is not helped by recent policy reversals and flip-flopping from the Palace.

Our most urgent need is to arrest this seeming freefall in our investment levels--and it will take much more than economic instruments to do that.

Comments welcome at chabito@ateneo.edu

_________________________________________

Poverty hounds Gloria
by Ike Señeres
http://www.tribune.net.ph/commentary/20061010com5.html

In the US, Gaudencio Cardinal Rosales was interviewed by the EWTN television network, where he made the surprising statement that the poverty rate in the Philippines is already 68 percent. This is the first time a Filipino cardinal has publicly recognized the real rate of poverty in this country. We now wonder why the government figure is about 50 points off the more realistic number.

The Philippines has committed to the Millennium Development Goals (MDGs) set by the UN to reduce our poverty rate by half in about 10 years’ time. If the official government figure is used as the basis, then we are just 14 points away from the goal. But if the figure supported by Cardinal Rosales is used, this means being 34 points away, and appears to be a long shot in meeting the MDG target.

There is certainly no way around the imperative goal of increasing the employment rate, where people would have higher incomes enabling them to go over the poverty line. The employment and poverty rates are two figures that have to be reconciled too, apart from reconciling the conflicting poverty estimates. In the employment rate, there also appears to be a serious discrepancy and it would be ridiculous for the government to claim that the employment rate is very high, if the poverty rate is very low.

The current employment measure used by the government seems highly questionable if not confusing, condiering the abstract notions of semi-employed and underemployed. What do these two terms really mean? It would be clearer and more precise if those who are in this category are just considered as unemployed.

There is an urgent need for the government to update and revise its method of measuring the poverty rate, bearing in mind that the prices of goods and services in the basket of goods have not been adjusted for a long time, despite the many jumps in consumer prices and the many fluctuations in the exchange rate. Also to be considered is that new compulsory goods have entered the basket, such as filtered, purified or mineral water.

The challenge of job creation is greater today since there are people who need jobs, as the population has grown. Also to be considered is the loss of jobs as new jobs are being created, the challenge of which has a lot to do with the rationalization of globalization, and the need to support local industries for them to compete with the imported goods.

According to the UN Statistical Institute for Asia and the Pacific (UNSIAP), the percentage of the population living below the poverty line from 1990 to 2001 in the Philippines was 46.4 percent, based on the threshold income of $2 per day. Cardinal Rosales may have used the global standard of $2, more or less. This benchmark figure is based on the assumption that people would be able to afford the basic necessities of life with P100, which is really unrealistic. With the minimum wage of about P300 daily, people have a hard time making ends meet. Workers need at least $10 a day to get by. What this means is that if the value of the basket of goods is raised to P500 a day, the poverty rate would be higher, much closer to the 68 percent figure that Cardinal Rosales used.

Gloria brags that the economy has grown under her watch, but the truth is, the so-called growth may have happened despite her misgovernance. Unless the growth is felt and enjoyed by the majority of the population, it would just be a pie in the sky for them. The irony is that instead of being rewarded with the fruits of good governance, people are being punished with the burden of the value added tax which the poor people have to bear, in order for the rich to keep their ivory towers.

Much more has to be done in order to address the problem of poverty in this country, but the best place to start is to curb the problem of graft and corruption. While the pie in the sky may be as distant as the ivory tower in the horizon, the problem of graft and corruption not only affects the poor people gravely, it also prevents them from crossing the poverty line. Sad to say, it seems that the poor have even become poorer under Gloria’s watch.

chixbebe

October 10th, 2006, 12:21 PM

The government is studying the possibility of removing the 20 percent withholding tax on government securities, including treasury bills and treasury bonds, to bring down the cost of borrowings and lure more investors.

“We want to remove all cost of tax arbitrage so you can level the playing field. Now that our fiscal program is clear and we are committed to balancing the budget by 2008, it is easier to offer it to investors,” National Treasurer Omar Cruz told reporters yesterday.

Cruz said the amount of savings, in terms of bringing down the cost of borrowings, would far outweigh the revenue losses resulting from the lifting of the 20 percent withholding tax on government securities.

“The amount of savings that you will get phasing that out can more than offset the revenue losses,” the national treasurer said.

Statistics showed that collections from T-bills and T-bonds retreated by 5.37 percent to P25.81 billion in the first eight months this year from P27.28 billion year-on-year.

He said the differential between the 10-year bonds issued by the Philippine government and that of Thailand was 300 basis points and could be cut by half to 150 basis points once the withholding tax was removed.

3cr

October 11th, 2006, 02:41 AM

The real economic value of checking honesty and integrity
By Mike Wootton
Manila Times
http://www.manilatimes.net/national/2006/oct/11/yehey/business/20061011bus3.html

Spirent, the telecoms testing group, yesterday blamed the cost of meeting tough new corporate governance rules in America for its plan to drop its New York listing. The company, which has its primary listing in London, said that the Sarbanes-Oxley rules were costing too much.”

The paragraph above is a summary of an item in The Times (UK vesion) It leads me to ponder on “what price suspicion?” Most people are not crooks, but to operate as if everybody is introduces huge inefficiencies and cost. A tried and tested project management philosophy is that of single point responsibility, i.e., choose the right person and give them the authority to do the job—trust them. I have written before that process now seems much more important than outcome and I do not see this changing in the near future, unless of course there are many more examples like the one in the above paragraph.

“ Red tape busting” is now an initiative at senior government level in the Philippines. Instances of [government] red tape getting in the way of business are to be reported for action to the DTI. This is a good initiative, but will it solve the problem, I suspect not, as so much red tape is internal to businesses anyway. The cost of intra business red tape will be passed on to the consumer to the point of uncompetitiveness, ergo American companies will lose market share because of Sarbanes—Oxley as will other companies from other jurisdictions where similar types of rules apply. Could this be an opportunity for Philippines Inc to gain a competitive advantage? Not unless things change around here!

Process and transparency are of course critically important. The right thing must be seen to be done. People should be protected from crooked business dealings but there is an element of acceptable risk is there not? Those who play on the world’s stock exchanges know that they take a risk in the business fortunes of the companies whose stock they buy, but how much is “enough” protection to save them from transgressions of the rules of ethical business practice—do we need hordes of accountants checking every move everybody makes, in order to make sure that somebody does not “cook the books” How sophisticated should you be in defining what is “cooking the books?” and what is not? Over-sophistication in these definitions just opens the door to protracted legal argument, and worse, gives opportunities for other types of corrupt practice! A dependence on processes can invite mischievous challenges for failure to follow them—for example, an unqualified bidder for a contract can complain purely on the grounds that a process was not strictly followed, this can lead to the need for a re-bid and with it the withdrawal of qualified bidders who do not think that they should have to resubmit.

Process dependency is not the way to go. There was a time when right-minded people brought up their children to respect honesty and fairness as cardinal virtues. Now greed on the one hand and the need for survival on the other have devalued these virtues almost to the point of derision. This seems to be the justification for the proliferation of processes and their strict and overawing enforcement. Innocent until proven guilty should be the mantra, not as now appears to be the case, guilty until proven innocent!

The current need for rigid policing of processes does have an upside, it creates jobs. In fact in the UK there is now a shortage of accountants and they are being “imported” from Eastern Europe to fill the vacuum. But does this additional employment create real economic value, no it does not. Perhaps though there are some opportunities for some Filipino accountants in the UK? May as well get something out of it whilst the going is good!

3cr

October 11th, 2006, 02:44 AM

Malampaya EO sparks row
Manila Standard
http://www.manilastandardtoday.com/?page=business01_aug28_2006

President Gloria Macapagal Arroyo’s decision to revoke a contract awarded to a foreign company for oil production in the Philippines has sent a shudder through the heart of the foreign investment community.

The President’ Executive Order 556 effectively terminated Malaysian-based Mitra Energy Ltd.’s rights to take part in the development of oil deposits in the Camago-Malampaya field off western Palawan Island.

“Mitra won the tender fair and square and at the stroke of a pen it was taken away. There was no warning and no explanation,” one industry source who declined to be named told AFP.

Oil exploration publication Upstream said the move was “understood to be due to pressure from influential Filipino business interests, which do not want the potentially lucrative projects to be awarded to a foreign company.”

Mitra secured a preliminary agreement with a unit of Philippine National Oil Co., PNOC Exploration Corp., which owns the Malampaya oil rights, on June 1 this year and the order was released on Aug. 11 but backdated to June 17.

“It sounds like the abrogation of an agreement,” said Peter Wallace, a consultant for foreign multinational corporations with over 30 years of experience in the Philippines.

He said investors were increasingly concerned about the “sanctity of contracts in this country”, and there were unsubstantiated claims of one major foreign producer pulling out of a government deal since the Mitra order.

The order included a directive that bars PNOC and other government agencies from sub-contracting out work covering exploration, known as farm-in, or development, known as farm-out, in the Camago-Malampaya reservoir.

It said all arrangements entered into by the PNOC “which violate this Executive Order shall be immediately discontinued or cancelled.”

The executive order also caught PNOC and the Department of Energy by surprise as neither knew anything about it, analysts told AFP. Both declined to comment on the issue.

And the unease was reflected by the French Chamber of Commerce, which wrote to Trade and Industry Secretary Peter Favila, saying it would question the exclusion of PNOC and the energy department from such a decision.

“We, the French Chamber of Commerce, are of the opinion that if indeed that was so, this occurrence would not help the establishment of confidence in the Philippine market which we have been trying to fight for.”

Mitra spokesman Chris Whitmee told AFP: “We spent a great deal of time and upward of a million dollars preparing for this bid. Having it taken away from us without any explanation has taken us completely by surprise.” AFP[/QUOTE]

______________________________

DOE sets review of RP power capacity
By Ted P. Torres
The Philippine Star 10/11/2006
http://www.philstar.com/philstar/NEWS200610110706.htm

The Department of Energy (DOE) will undertake a review of the country’s power capacity in preparation for the expected surge in demand by 2010.

The DOE will also seek the cooperation of the different energy-related agencies to come up with common projections. Energy Secretary Raphael P.M. Lotilla said their projections are different from the estimates made by the National Transmission Corp. (TransCo), the National Power Corp. (Napocor) and the different distribution utilities.

However, Lotilla cautioned against raising the alarm this early regarding perceived power shortages nationwide by 2010.

"The Energy Department sees value in building new capacity as needed, but it is also imperative not to panic into overbuilding as this results in heavy stranded costs which consumers have to bear," he pointed out.

Data from the DOE indicate that the annual average growth rate of electricity demand will grow by 4.37 percent in Luzon, six percent in Visayas and 6.5 percent in Mindanao over the next 10 years.

Given the present capacity and committed projects, government anticipates power supply will become critical in Luzon in 2010, Visayas in 2011 and Mindanao in 2009.

The DOE said a 150-megawatt (MW) peaking capacity is needed in Luzon by 2010 but this can be postponed through demand-side management, energy conservation, time-of-use pricing, among others, while new plants are being built.

Even with Korea Electric Power Corp.’s 200-MW plant in Cebu coming on stream in 2009 and the Philippine National Oil Corp.-Energy Development Corp.’s 60-MW geothermal plant starting operations by 2007, the Visayas grid will still need an additional 200 MW capacity by 2011.

Mindanao, with the operation of STEAG’s 210-MW plant starting late this year, will need an extra 100-MW by 2010.

Industrialist and consumer advocate Raul T. Concepcion has been calling for a review of the country’s power capacity in lieu of the controversy over the wholesale electricity spot market (WESM), the inability of the Power Sector Assets and Liabilities Management Corp. (PSALM) to sell energy-related government assets, and the temporary shutdown of the Malampaya natural gas pipeline due to standard plant maintenance.

Concepcion claims a power crisis could occur by 2010 unless the country activates 4,438 MW of power plants. "The additional capacity needs to be put in place by today to avert a power crisis in the next three years."

He likewise urged the immediate disposal through privatization of the power plants held by the government.

"Today, we only have 65 MW of new capacity under construction, the 25-MW wind powerplant of Northwind and 40-MW geothermal output of PNOC-EDC," Concepcion added.

_______________________________

Program to counteract blackouts bared
By Roderick T. dela Cruz
Manila Standard
http://www.manilastandardtoday.com/?page=news2_oct11_2006

THE government has laid down plans to prevent an electricity shortage when two power plants shut down and deprive Luzon of 2,700 megawatts of electricity, officials said yesterday.

The natural gas plant in Malampaya, Palawan, is to shut down from Nov. 18 to Dec. 12 for repairs, and that will cause two power plants in Batangas to similarly close because they depend on Malampaya’s gas to produce electricity.

The plants’ closure could cause rolling blackouts in Luzon if nothing was done to compensate for their lost output, an official said earlier. But National Power Corp. said it had thought of something to avert any power shortage.

“We have already prepared a contingency plan to address the temporary pullout from the [Luzon] grid of the 1,200-megawatt Ilijan Power Plant in November,” the state-run company said in a statement.

It said the plan was to maximize the use of its other plants, in particular those that ran on coal and diesel or use hydro and geothermal power.

“We made the plan taking into consideration that a unit of the coal-fired plant in Sual [Pangasinan] is also on unplanned outage,” the company said.

Last week, the Philippine Electricity Market Corp., the company running the spot market for electricity, warned that the 1,200-MW Ilijan plant and the 1,500-MW Santa Rita/San Lorenzo plant would close down for 25 days following the closure of the Malampaya gas platform.

The Ilijan plant operated by Korean Electric Power Corp., an independent power producer, will indeed close. But First Gas Power Corp. said its Santa Rita/San Lorenzo plant would continue to deliver power using liquefied gas to run its facilities.

Napocor said there would be more than enough electricity to meet the day-to-day demand in the Luzon grid.

“What will be affected would be the reserve electricity, but overall we still have more than enough power to meet the demand of our contracted customers,” the company said.

A private watchdog has warned that demand for electricity will grow to 1,500 MW over the next two years, and that a power shortage might be expected in 2008 if the government failed to build new power plants.

But Energy Secretary Raphael Lotilla said the situation would become critical only by 2010, and on the assumption that demand for electricity would grow by 4.37 percent annually in Luzon, 6 percent in the Visayas, and 6.5 percent in Mindanao over the next 10 years.

“Given present dependable capacity and committed projects, power supply will become critical in Luzon only in 2010, in the Visayas in 2011, and in Mindanao in 2009,” he said.

3cr

October 11th, 2006, 02:52 AM

Guess Ate Glo is taking the 2nd world designation/proclamation seriously! Hehehe...

Arroyo’s delusion
By Ellen Tordesillas
Malaya
http://www.malaya.com.ph/oct11/edtorde.htm

The more Gloria Arroyo opens her mouth about North Korea, the more ridiculous she sounds.

Last Monday, she bested all Southeast Asian leaders in issuing a statement condemning North Korea’s nuclear test. Yesterday, she stressed that the Philippines is "within striking distance" of a nuclear weapon fired from North Korean.

Pray, tell me, why would North Korea bother with the Philippines?

Between North Korea and the Philippines, there’s neighboring South Korea, with whom Nokor has a lot of issues, and Japan. There’s also Taiwan.

News reports said although it is widely believed that North Korea’s announcement of a successful nuclear test is true, the Hermit Kingdom has not yet developed a missile platform to launch its nuclear weapon.

It’s the height of Arroyo’s delusion to think that Kim Jong Il will waste his most prized weapon on the Philippines. Doesn’t Arroyo know that Kim Jong Il only takes on the biggies (Ex: George Bush)? He is not known to waste time on fellow pygmies.

Arroyo also said, "Nuclear weapons have no more place in a shrinking world that places a premium on understanding and harmony where our overriding interest is the pursuit of world peace, the resolution of economic imbalances and the global fight against poverty."

Nice words. But can she tell that to her idol, George Bush, whose country leads the Nuclear Club with more than 5,000 strategic warheads, more than 1,000 operational tactical weapons and approximately 3,000 reserve and tactical warheads?

Russia has nearly 5,000 strategic warheads, and approximately 3,500 operational tactical warheads. In addition, it has more than 11,000 strategic and tactical warheads in storage. Other nuclear states are China, Britain, France, India, Israel, and Pakistan.

The most laughable part of Arroyo’s statement was when she said that "Pyongyang’s nuclear ambitions put (Filipinos’) freedom at risk."

Why, was it Kim Jong Il who declared Proclamation 1017 and arrested those who demanded that she stepped down because she was never elected by the people? Was it Kim Jong Il who ordered demonstrators to be truncheoned under the policy of Calibrated Pre-emptive response?

Is it Kim Jong Il who is propagating a "culture of impunity" that give rise to extrajudicial killings of journalists and activists?

What has Kim Jong Il’s nuclear weapons got to do with her trampling of the Constitution and destruction of institutions to hold on to her stolen presidency?

Arroyo’s strong words on North Korea sound bizarre against the backdrop of labor officials assuring those who are applying for jobs in South Korea that the tension in the Korean peninsula will not affect the processing of their papers. They will be joining the more than 50,000 Filipino workers in South Korea, many of them in "dirty and dangerous" jobs shunned by South Koreans.

Those Filipinos are fleeing the country because they can’t find jobs here. Those Filipinos don’t enjoy the most fundamental freedom in life in their own country, which is freedom from want. It’s bad enough that the standard of living in the country has worsened in the five years that Arroyo has been in power. She should not add insult to injury by telling us that Kim Jong Il’s nuclear weapons have something to do with our poverty.

Readers who missed a column can go to http://www.ellentordesillas.com

Email address: ellentordesillas@gmail.com

3cr

October 11th, 2006, 03:03 AM

IMF sees UITF fiasco spiking liquidity, inflation
By LEE C. CHIPONGIAN
Manila Bulletin
http://www.mb.com.ph/BSNS2006101176701.html

The International Monetary Fund said the liquidity created by the massive sell-offs of the reserved-free unit investment trust funds (UITFs) in the last months of 2005 into the first quarter of 2006 is a possible risk to the country’s inflation position.

"The rapid expansion of the UITFs appears to have swept in investors that were not fully conversant with the risks," the IMF document: Report for the mid-2006 Post-Program Monitoring said.

"Once financial markets began to decline in May, investors pressed for redemption (of UITFs) and exacerbated the market decline," the IMF said. The regulatory body supervising UITFs – the Bangko Sentral ng Pilipinas, has viewed these developments as a "learning experience for investors."

"The current regulatory framework (also) needs review," the multilateral agency said. "There were also lessons for the industry including the need to improve sale practices, customer profiling and risk disclosure."

Banks’ trust units were aggressively marketing UITFs in the last quarter of 2005 and the first quarter of 2006. The result was P260 billion of UITF transactions by end-March 2006, two-thirds from common trust funds its originator and the remainder from new inflows.

"As liquidity moved from bank deposits into UITFs, M4 growth (broad money) dropped below 7 percent … while bond purchases by the UITFs … caused yields to experience a dramatic compression. However the rise in market volatility in mid-May led investors to redeem their UITF holdings and shift back into bank deposits," the IMF said. The movement accelerated M3 growth or domestic liquidity "rather than a change in money supply," the report added.

The BSP, which closely monitor M3 level, is watching the impact of UITFs on liquidity.

A BSP paper presented to the Monetary Board recently, shows that UITFs might lead to volatility in M3, which could disrupt the BSP’s objective of maintaining price stability or inflation, especially for 2007.

The report said that at the moment, it is difficult to "isolate the impact of trust accounts from the impact of M3." Based on the BSP paper, between April and July, there was a significant buildup in deposits due to the shift from common trust funds to UITFs to deposits. Trust assets become cash or deposits, which are included in M3.

As for UITFs and its impact on M3, the BSP said trust funds flow back into the balance sheets of banks. About 12 percent of these trust assets, or UITFs, are captured directly in the form of currency in circulation and deposits. The remaining 88 percent are in invested in loans, stocks, real estate and other assets, which flow back to the banks’ balance sheet with some lag.

For this year the BSP has an M3 growth ceiling of 13-14 percent. As of August this year liquidity grew 12.4 percent from July.

As the broadest measure of domestic liquidity, M3 is a key leading indicator and driving factor of both economic activity and inflation. M3 is composed of money supply, quasimoney and deposit substitutes. It reflects the total supply of funds in the economy and serves as a source for financial managers in determining which monetary policies to pursue.

3cr

October 11th, 2006, 03:11 AM

Gov’t debt down to P3.924T
Malaya
http://www.malaya.com.ph/oct12/busi1.htm

Government debt fell 1.9 percent at the end of July from June due to a stronger peso and credit repayments, the Bureau of Treasury said,

Total debt as of end-July was P3.924 trillion ($78.4 billion), down P75 billion from end-June. Fifty-five percent of the total debt was owed to local creditors and the balance to foreign lenders.

"The appreciation of the peso against the US dollar and the net repayments of foreign and domestic obligations in July contributed to the decline in debt," National Treasurer Omar Cruz said in a statement.

The Philippines, Asia’s largest issuer of sovereign debt after Japan, has reduced its borrowings for the year due to an improving fiscal condition.

The government recorded four surpluses so far this year and in the eight months to August had a deficit of P34.2 billion, under a third of the P125 billion target for 2006.

Domestic debt fell 0.5 percent to P2.15 trillion at the end of July from the previous month. Foreign loans declined 3.5 percent to P1.772 trillion in the same period.

Contingent debt, composed of guarantees extended by the national government and not included in the total debt level, also fell 2.9 percent to P575.9 billion in July from June.

The Philippines aims to narrow its ratio of debt to gross domestic product to 62 percent next year and 56 percent in 2008 from an expected 68 percent this year.

The government’s debt-to-GDP ratio fell to 72 percent last year from 79 percent in 2004, helped by fiscal reforms that have included a broader and higher national sales tax.

About a third of the government’s budget is used to pay interest on its debts.

________________________________________

Foreign investments up sharply at end-July
By Likha C. Cuevas, Reporter
Manila Times
http://www.manilatimes.net/national/2006/oct/11/yehey/business/20061011bus1.html

FOREIGN direct investments (FDIs) in the first seven months jumped threefold, breaching the $1-billion mark, the Bangko Sentral ng Pilipinas said on Tuesday, citing the country’s strong economic fundamentals for the strong inflows.

The BSP said net FDI rose to $150 million, bringing cumulative inflows to $1.15 billion.

Among the industries that benefited from these investments are manufacturing (cigarette, paper mills, chemicals, health-care, electronics, air conditioning, steel products), services (business process outsourcing, resort facilities, engineering, construction, facilities management), financial intermediation and real estate.

The increase was also due to a reversal of the “other capital account” to a surplus of $773 million compared with last year’s net outflow of $131 million. Transactions in the “other capital account” are made up of inter-company borrowing/lending of funds between foreign investors and their local subsidiaries, branches or affiliates in the Philippines.

BSP Governor Amando M. Tetangco Jr. said these intercompany account transactions involved investment inflows into automotive and electronic firms.

The continued improvement in the “other capital account,” he said, was “more than sufficient” to cover for the net outflows in the reinvested earnings account amounting to $27 million.

Meanwhile, net equity capital—which was lower than last year’s level—was still in surplus at $408 million, with the majority of investors coming from the United States, Japan, Germany, the United Kingdom, Switzerland, Singapore, the Netherlands and South Korea.

Tetangco said the central bank expects net FDI to reach $1.90 billion by year-end.

3cr

October 11th, 2006, 03:26 AM

marites4

October 11th, 2006, 03:54 AM

ON top of all this is the bourgeoning problem of garbage. The people are out of control with garbage generation and the plastic and styrofoam monster is out of control. NO one is recycling except a select few. I tried to recyle and people looked at me like WTF? I swept the outside of my house including a little over my property line and people again thought I was crazy. Out of sight out of mind is the motto until it wreaks havoc.

3cr

October 11th, 2006, 04:08 AM

Gloria’s math
By Aldrin Cardon
Daily Tribune
http://www.tribune.net.ph/commentary/20061011com6.html

If you have P16,790 in your bank account, assuming you still trust your bank, it’s likely you’ll survive the year. That’s how government views your survival, at P46 a day you’ll still get to see tomorrow. These numbers, of course, lie. Gloria’s wonder workers have done it possibly to make it appear there’s some improvement in government fight against poverty.

But that’s how things are done today. If Gloria wants to cut a stone with her eyes, she does it with a thousand generals and a hundred clowns behind her. But still, these numbers do not change the fact that more people get hungry by the day. There are not enough jobs to feed them, not enough land to till. The available land we have is in danger of being owned by foreigners.

For the remaining moneyed Pinoy, there are not enough opportunities to cash into. Some small entrepreneurs are even finding it hard to pay P46 for the salary of a company of one staff.

So, where does it bring you?

You wake up with not much but little water to sprinkle on your face. A pail costs P2, you fetch water on your own because delivery adds up to the cost. Pray you get access to clean, free water, because that P2 could buy you some half cup of rice, if you’ve been friendly to Manang, owner of the neighborhood karinderya, all week.

Forget coffee, it costs P10 a cup. Besides, what else could perk up your day knowing you only have P46 in your pocket and nothing more? Besides, knowing you only have so little, kinda jolts you. Didn’t you hear reality awakens even one in deep slumber?

Maybe you can have pan de sal — just one piece please—that’s one peso without fillings and you’re off to work with just P43 left. It will be your budget to feed a family of four.

Granting your brood can survive with a kilo of rice daily (that’s P20) and perhaps some two pieces of tomatoes (P5) and some P18 worth of viand (what it could buy, you figure out), then you are not poor by Gloria’s standards.

Granting this magical budget would work, I wonder how many families on the fringes of poverty would have been fed by Joc-Joc’s P700-million fertilizer funds? How many more would have benefited from Bert Gonzales’ Venable budget? The wasted billions from the botched Piatco contract? Wow, they would have fed the whole RP!

The sad thing is, it ain’t realistic. Forty six pesos simply won’t fly, no government glutton would claim it would be hard to digest.

It’s no longer surprising, though, these numbers would fly out of Malacañang once in a while. There is a credibility problem that needs to be solved and our Palace boys need to pierce the masses’ heart to be able to win them. Making them feel rich won’t solve it, though. Our people need food in their tables, not numbers.

Not the numbers that claim we’re doing better in our lives with just P46 in our pockets.

God, don’t make them make our life a calculus.

3cr

October 11th, 2006, 04:17 AM

Oh they will feature the garbage problem in Pinas sa TFC (ABS-CBN). Mapanuod nga.

______________________

Australia, U.S. warning: Terror attack in RP imminent
By Pia Lee-Brago and John Unson
The Philippine Star 10/11/2006
http://www.philstar.com/philstar/News200610110401.htm

The US Embassy in Manila warned yesterday of "credible information" that a terrorist group may be plotting bomb attacks, particularly in cities in central Mindanao, "over the next several days."

Through a "warden notice" posted on its website, the embassy said US citizens should avoid travel to Mindanao.

The Australian government, for its part, advised its citizens to exercise a "high degree of caution because of the high threat of terrorist attack," saying some reports suggest Manila could also be a target.

The warnings came just hours ahead of the bombing of a public gathering where 12 people were killed and 42 others wounded in Makilala, North Cotabato last night.

Local officials led by town mayor Onofre Respicio said the bomb was placed along a path leading to the town plaza where a public gathering was being held in celebration of the town’s 52nd founding anniversary.

Officials said the bomb was a mortar projectile, rigged with a time-delayed and battery-operated blasting mechanism.

US Embassy officials confirmed posting the "warden notice" to its citizens but did not specify the source of the threat.

"Although there is no specific targeting information, US citizens should avoid travel to that area," the embassy said in its notice, referring to Mindanao.

Australia also warned its citizens yesterday to avoid parts of the Philippines, citing reports that indicated "imminent" attacks on places frequented by foreigners.

Australia’s foreign affairs department, re-issuing a travel warning first given in June, said the threat applied to Mindanao, particularly the Zamboanga peninsula and the Sulu archipelago.

"Recent credible reporting indicates terrorists may be in the advanced stages of planning to attack places frequented by foreigners," it said.

"These reports indicate that attacks are imminent and could occur at any time," the department said on its website, repeating the terms of previous travel advisories for the region.

"Possible targets include restaurants, shopping malls including mega malls, hotels, hostels, guesthouses, bars or clubs in major population centres."

The US government, through its notice, advised its citizens working and living in Mindanao "to keep a low profile, avoid venues that cater to westerners and avoid public gathering places to the extent possible."

Last December, the American mission decided to temporarily close its services and beef up security around its premises citing "plausible" threat information.

The embassy, though, declined to disclose the nature of the threat that forced them to suspend services indefinitely.

The warnings came as US and Philippine officials admitted receiving credible intelligence that a terrorist group may be planning to carry out bombings in southern Mindanao, following the capture of the wife of a top Indonesian militant last week.

Istiada Binti Oemar Sovie was arrested in Jolo, Sulu last Oct. 3. She is the wife of Dulmatin, an al-Qaeda-linked Indonesian militant who is among Asia’s most wanted terrorist suspects, mainly for his alleged role in the 2002 Bali bombings that killed 202 people.

Philippine security officials monitoring the area said Dulmatin’s group and the Abu Sayyaf have long planned bombings in Mindanao.

They warned the capture of Dulmatin’s wife may expedite the plans in retaliation for her arrest. The officials requested anonymity because they are not authorized to speak to the media.

Earlier yesterday, a bomb also wounded at least six people in a public market in Tacurong City, Sultan Kudarat.

A security guard found the bomb, stashed in a bag filled with packs of corn chips, and hurled it away from a crowd before it exploded, preventing more casualties, Army Col. Felipe Tabas said.

No group claimed responsibility but Tabas said it a clear act of terrorism. "Nobody can do this except terrorists," he said.

Security at the market had been bolstered because of intelligence reports it could be targeted. About 10 security guards were deployed there recently, Tabas said.

North Cotabato Gov. Emmanuel Piñol, on the other hand, said he had ordered the provincial police to conduct an investigation over the bombing in Makilala.

Col. Ruperto Pabustan, commander of the Army’s 602nd

Brigade, said intelligence operatives have been dispatched to Makilala to help the police gather additional information to identify the bombers.

No group has claimed responsibility for the incident.

In Zamboanga City, police have been placed on alert to safeguard an annual Roman Catholic festival this week that culminates with a public parade on Thursday.

Zamboanga has been hit by deadly bomb attacks in recent years that were blamed on the Abu Sayyaf, which is on a US list of terrorist groups.

The United States has offered a $10-million reward for the capture of Dulmatin and $1 million for another Indonesian, Umar Patek.

The two Indonesians, wanted for the Bali bombings which killed a total of 92 Australians, have been given refuge by the Abu Sayyaf

3cr

October 11th, 2006, 08:08 AM

Eto ba ang second world Ate Glo? Get real!

Gloria’s math
By Aldrin Cardon
Daily Tribune
http://www.tribune.net.ph/commentary/20061011com6.html

If you have P16,790 in your bank account, assuming you still trust your bank, it’s likely you’ll survive the year. That’s how government views your survival, at P46 a day you’ll still get to see tomorrow. These numbers, of course, lie. Gloria’s wonder workers have done it possibly to make it appear there’s some improvement in government fight against poverty.

But that’s how things are done today. If Gloria wants to cut a stone with her eyes, she does it with a thousand generals and a hundred clowns behind her. But still, these numbers do not change the fact that more people get hungry by the day. There are not enough jobs to feed them, not enough land to till. The available land we have is in danger of being owned by foreigners.

For the remaining moneyed Pinoy, there are not enough opportunities to cash into. Some small entrepreneurs are even finding it hard to pay P46 for the salary of a company of one staff.

So, where does it bring you?

You wake up with not much but little water to sprinkle on your face. A pail costs P2, you fetch water on your own because delivery adds up to the cost. Pray you get access to clean, free water, because that P2 could buy you some half cup of rice, if you’ve been friendly to Manang, owner of the neighborhood karinderya, all week.

Forget coffee, it costs P10 a cup. Besides, what else could perk up your day knowing you only have P46 in your pocket and nothing more? Besides, knowing you only have so little, kinda jolts you. Didn’t you hear reality awakens even one in deep slumber?

Maybe you can have pan de sal — just one piece please—that’s one peso without fillings and you’re off to work with just P43 left. It will be your budget to feed a family of four.

Granting your brood can survive with a kilo of rice daily (that’s P20) and perhaps some two pieces of tomatoes (P5) and some P18 worth of viand (what it could buy, you figure out), then you are not poor by Gloria’s standards.

Granting this magical budget would work, I wonder how many families on the fringes of poverty would have been fed by Joc-Joc’s P700-million fertilizer funds? How many more would have benefited from Bert Gonzales’ Venable budget? The wasted billions from the botched Piatco contract? Wow, they would have fed the whole RP!

The sad thing is, it ain’t realistic. Forty six pesos simply won’t fly, no government glutton would claim it would be hard to digest.

It’s no longer surprising, though, these numbers would fly out of Malacañang once in a while. There is a credibility problem that needs to be solved and our Palace boys need to pierce the masses’ heart to be able to win them. Making them feel rich won’t solve it, though. Our people need food in their tables, not numbers.

Not the numbers that claim we’re doing better in our lives with just P46 in our pockets.

God, don’t make them make our life a calculus.

________________________________________

Dang scam nanaman. C'mon Ate Glo. Ano ba naman yan. Gutom na nga ang mga tao hinuhuthutan pa! Where's the check and balances? Meron cut ka ba dito to fund your Cha-Cha push?

DepEd rice, textbooks billions scams bared
By Angie M. Rosales
Daily Tribune
http://www.tribune.net.ph/headlines/20061012hed1.html

Everywhere one turns, a scam is always around the corner.

Imported rice was found to have been used by the Arroyo administration school-feeding program, over P1 billion worth of which had already been spent by the National Food Authority (NFA) while another funding, amounting to almost P4 billion is still being eyed for the coming year’s continued implementation, even when the rice has allegedly never been delivered to the intended beneficiaries who are the school children from public elementary schools.

This is the same program that was earlier exposed by Sen. Edgardo Angara as a scam as the beneficiaries never benefited from this program.

Senators discovered this multi-billion peso scam, which even some Cabinet officials are said to also be questioning, wondering about the need to import rice for this Department of Education (DepEd) program, to the detriment of the local farmers.

Add to this yet another big scam, also in the billions, this time on the latest textbooks scam involving over P2.6 billion.

The alleged anomalous textbooks acquisition by the DepEd between 1999 to 2004, was bared as officials from the DepEd sought another P2 billion in their proposed 2007 budget for the same purpose.

The matter of the imported rice was accidentally stumbled upon by Sen. Franklin Drilon, finance committee chair, while grilling Department of Social Welfare and Development (DSWD) Secretary Esperanza Cabral who defended their proposed P4.38 billion appropriations for next year.

Drilon was told that the present allocation of P1.08 billion for rice distribution in the “food for school program” of DSWD, similar to the DepEd program, in line with the poverty alleviation thrust of the administration, will be supplied by the NFA, using imported rice.

When confronted by Drilon why there was the need to source supplies from other countries, Cabral confessed before the Senate panel that she herself questioned the matter, noting that it would be more practical to acquire rice supply locally, especially in the region where the program is being implemented.

“But they told us that imported rice is cheaper than sourced locally, so the NFA was going to import the rice, anyway,” Cabral said.

“Of course, the local purchases would have no commission,” was the immediate comment of Drilon.

He went on to say that “in fact, importation of NFA rice would be subject to taxes. And do you realize that when NFA imports rice, it borrows money to pay taxes so our domestic debt increases to the extent that we borrow money to pay taxes for the importation made by the NFA for the rice?” Drilon said, adding that “one of the worst spenders in this government is the NFA. You look at its COA (Commission on Audit) report, NFA has unliquidated advances in the hundreds of millions of pesos and really, they are a burden to the national budget,” he added.

In taking up the DepEd’s proposed budget, Drilon was stunned to discover that another bulk is being planned to finance the program for 2007, amounting to a whooping P4 billion.

Out of this school-feeding program covering public school students between five to eight years old, P3.9 billion would be for rice while P100,000 will consist of the milk and noodles supply.

“This is not addressing the malnutrition of our children. The problem is malnutrition. The DepEd should address the malnutrition and leave the poverty alleviation to the other sectors of our bureaucracy,” said Drilon.

He pointed out that which we should not have is rice but noodles, milk and other nutritious food. But not rice because that will not address the malnutrition,” he said further pointing out that farmers from Thailand and Vietnam are the gainers, being given the income to the detriment of local economy.

“Apart from the farmers of Thailand and Vietnam, where the rice would be imported, the commission from NFA is where businessmen rake in profit. All of these would indicate that we should have a nutrition program properly implemented by prohibiting rice as the preferred mode of executing the School Feeding Program because that is not malnutrition alleviation,” he said.

Drilon, however, announced that they will retain the budget provision for this purpose, despite his discovery.

“We will retain the P4 billion. But just like the supplemental budget, we will specify that it is for meal, milk, noodles and similar nutrients rather than rice. We already specified that in the P2.5 billion School Feeding Program in 2006. And we will continue to specify that in 2007.

In the light of the revelations by Drilon, Sen. Panfilo Lacson for his part questioned transactions in the DepEd involving over P2.6 billion worth of textbooks as 75 percent of contracts were found to have been cornered by only one publishing company, Vibal.

He raised concern over a repeat of this situation under the proposed 2007 budget where allocation for this is being earmarked at P2 billion.

Lacson urged the DepEd officials to take a closer look into how monopoly has marred the bidding procedures for its textbook procurement program, especially those involving foreign loans, pointing out that from 1999 to 2004, a single “group” of publishing companies sharing common officers and stockholders had a virtual stranglehold on textbook procurement deals, raking in more than 75 percent of the contracts.

“Don’t tell me we will disregard our own laws in favor of the World Bank’s guidelines ... There’s a monopoly and there’s no competition. The quality of textbooks and our education will suffer,” he said.

Worse, he said some DepEd officials appeared to try to defend the deal during Wednesday’s budget hearing of the DepEd at the Senate, when he brought up the matter.

The DepEd is asking for some P2.064 billion for textbooks for 2007. “If the monopoly is not addressed, following the pattern, the Vibal ‘Group’ stands to corner some P1.5 billion,” Lacson said.

Lacson hinted that if the DepEd will not act on the matter, he may move for the deferment of its budget should the General Appropriations Act advance to the plenary level.

He also said it is up to private citizens, including parents, to file the necessary charges against the DepEd and other parties concerned should an investigation find them liable.

Citing records reaching his office, Lacson said the Department of Budget and Management awarded almost P500 million in textbook contracts to two disqualified bidders only last September.

He said he has filed a resolution seeking a Senate probe into the mess, which he said may have involved some government officials making a quick buck at the expense of students and teachers

“This is a blatant and gross violation of procurement laws. Somebody definitely made money out of this deal and I am not talking about suppliers of the textbooks but of some people in government,” he said.

Citing figures from the DBM Procurement Service, Lacson said the contracts involved the supply and delivery of textbooks and teachers’ manuals on Sibika Grades 1-3; Heograpiya, Kasaysayan at Sibika (HeKaSi) Grades 4-6; and Araling Panlipunan Years I-IV.

He said the government awarded the contracts to Watana Phanit Printing and Publishing Co. Ltd.; Vibal Publishing House Inc.; and Daewoo International Corp. last Sept. 25.

Watana was awarded a contract to print 2,351,274 Sibika 2 textbooks worth $1,817,294.57 and 67,379 teachers’ manuals worth P433,095.95; 2,092,674 HeKaSi 4 textbooks worth $1,900,269.35 and 59,976 teachers’ manuals worth P379,767.80; and 1,537,599 HeKaSi 5 textbooks worth $1,402,697.31 and 44,068 teachers’ manuals worth P238,759.25.

Vibal was awarded a contract to print 2,937,680 Sibika I textbooks and 84,104 teachers’ manuals worth P133,262,266.45; 1,259,160 Sibika 3 textbooks and 36,068 teachers’ manuals worth P53,916,963.70; and 500,466 HeKaSi 5 textbooks and 14,355 teachers’ manuals worth P21,663,429.80.

Daewoo was awarded a contract to produce 952,804 Sibika 3 textbooks worth $791,590.28 and 7,311 teachers’ manuals worth P12,840,623.

But as early as Feb. 28 this year, the Inter-Agency Bids and Awards Committee had already disqualified Vibal and Watana from the bidding due to “conflict of interest.”

He added Vibal has been a “very fortunate” group, having been awarded 75.96 percent of the bids from 1999 to 2004 – or P2,658,756,511 – and for being favored by an influential institution “who bends its own rule just to accommodate their desired end.”

“Rather than an allocation of P650 million for intelligence funds of the President, I am examining closely realigning P650 million in intelligence funds of the President to fund the funding needs of 16,390 new teachers that we need rather than non-productive intelligence budget of P650 million, which is accounted for through a closed envelope system,” Drilon told reporters after the committee hearing on the P134.7 billion DepEd budget for next year.

3cr

October 11th, 2006, 10:31 PM

Dang scam nanaman. C'mon Ate Glo. Ano ba naman yan. Gutom na nga ang mga tao hinuhuthutan pa! Where's the check and balances? Meron cut ka ba dito to fund your Cha-Cha push?

DepEd rice, textbooks billions scams bared
By Angie M. Rosales
Daily Tribune
http://www.tribune.net.ph/headlines/20061012hed1.html

Everywhere one turns, a scam is always around the corner.

Imported rice was found to have been used by the Arroyo administration school-feeding program, over P1 billion worth of which had already been spent by the National Food Authority (NFA) while another funding, amounting to almost P4 billion is still being eyed for the coming year’s continued implementation, even when the rice has allegedly never been delivered to the intended beneficiaries who are the school children from public elementary schools.

This is the same program that was earlier exposed by Sen. Edgardo Angara as a scam as the beneficiaries never benefited from this program.

Senators discovered this multi-billion peso scam, which even some Cabinet officials are said to also be questioning, wondering about the need to import rice for this Department of Education (DepEd) program, to the detriment of the local farmers.

Add to this yet another big scam, also in the billions, this time on the latest textbooks scam involving over P2.6 billion.

The alleged anomalous textbooks acquisition by the DepEd between 1999 to 2004, was bared as officials from the DepEd sought another P2 billion in their proposed 2007 budget for the same purpose.

The matter of the imported rice was accidentally stumbled upon by Sen. Franklin Drilon, finance committee chair, while grilling Department of Social Welfare and Development (DSWD) Secretary Esperanza Cabral who defended their proposed P4.38 billion appropriations for next year.

Drilon was told that the present allocation of P1.08 billion for rice distribution in the “food for school program” of DSWD, similar to the DepEd program, in line with the poverty alleviation thrust of the administration, will be supplied by the NFA, using imported rice.

When confronted by Drilon why there was the need to source supplies from other countries, Cabral confessed before the Senate panel that she herself questioned the matter, noting that it would be more practical to acquire rice supply locally, especially in the region where the program is being implemented.

“But they told us that imported rice is cheaper than sourced locally, so the NFA was going to import the rice, anyway,” Cabral said.

“Of course, the local purchases would have no commission,” was the immediate comment of Drilon.

He went on to say that “in fact, importation of NFA rice would be subject to taxes. And do you realize that when NFA imports rice, it borrows money to pay taxes so our domestic debt increases to the extent that we borrow money to pay taxes for the importation made by the NFA for the rice?” Drilon said, adding that “one of the worst spenders in this government is the NFA. You look at its COA (Commission on Audit) report, NFA has unliquidated advances in the hundreds of millions of pesos and really, they are a burden to the national budget,” he added.

In taking up the DepEd’s proposed budget, Drilon was stunned to discover that another bulk is being planned to finance the program for 2007, amounting to a whooping P4 billion.

Out of this school-feeding program covering public school students between five to eight years old, P3.9 billion would be for rice while P100,000 will consist of the milk and noodles supply.

“This is not addressing the malnutrition of our children. The problem is malnutrition. The DepEd should address the malnutrition and leave the poverty alleviation to the other sectors of our bureaucracy,” said Drilon.

He pointed out that which we should not have is rice but noodles, milk and other nutritious food. But not rice because that will not address the malnutrition,” he said further pointing out that farmers from Thailand and Vietnam are the gainers, being given the income to the detriment of local economy.

“Apart from the farmers of Thailand and Vietnam, where the rice would be imported, the commission from NFA is where businessmen rake in profit. All of these would indicate that we should have a nutrition program properly implemented by prohibiting rice as the preferred mode of executing the School Feeding Program because that is not malnutrition alleviation,” he said.

Drilon, however, announced that they will retain the budget provision for this purpose, despite his discovery.

“We will retain the P4 billion. But just like the supplemental budget, we will specify that it is for meal, milk, noodles and similar nutrients rather than rice. We already specified that in the P2.5 billion School Feeding Program in 2006. And we will continue to specify that in 2007.

In the light of the revelations by Drilon, Sen. Panfilo Lacson for his part questioned transactions in the DepEd involving over P2.6 billion worth of textbooks as 75 percent of contracts were found to have been cornered by only one publishing company, Vibal.

He raised concern over a repeat of this situation under the proposed 2007 budget where allocation for this is being earmarked at P2 billion.

Lacson urged the DepEd officials to take a closer look into how monopoly has marred the bidding procedures for its textbook procurement program, especially those involving foreign loans, pointing out that from 1999 to 2004, a single “group” of publishing companies sharing common officers and stockholders had a virtual stranglehold on textbook procurement deals, raking in more than 75 percent of the contracts.

“Don’t tell me we will disregard our own laws in favor of the World Bank’s guidelines ... There’s a monopoly and there’s no competition. The quality of textbooks and our education will suffer,” he said.

Worse, he said some DepEd officials appeared to try to defend the deal during Wednesday’s budget hearing of the DepEd at the Senate, when he brought up the matter.

The DepEd is asking for some P2.064 billion for textbooks for 2007. “If the monopoly is not addressed, following the pattern, the Vibal ‘Group’ stands to corner some P1.5 billion,” Lacson said.

Lacson hinted that if the DepEd will not act on the matter, he may move for the deferment of its budget should the General Appropriations Act advance to the plenary level.

He also said it is up to private citizens, including parents, to file the necessary charges against the DepEd and other parties concerned should an investigation find them liable.

Citing records reaching his office, Lacson said the Department of Budget and Management awarded almost P500 million in textbook contracts to two disqualified bidders only last September.

He said he has filed a resolution seeking a Senate probe into the mess, which he said may have involved some government officials making a quick buck at the expense of students and teachers

“This is a blatant and gross violation of procurement laws. Somebody definitely made money out of this deal and I am not talking about suppliers of the textbooks but of some people in government,” he said.

Citing figures from the DBM Procurement Service, Lacson said the contracts involved the supply and delivery of textbooks and teachers’ manuals on Sibika Grades 1-3; Heograpiya, Kasaysayan at Sibika (HeKaSi) Grades 4-6; and Araling Panlipunan Years I-IV.

He said the government awarded the contracts to Watana Phanit Printing and Publishing Co. Ltd.; Vibal Publishing House Inc.; and Daewoo International Corp. last Sept. 25.

Watana was awarded a contract to print 2,351,274 Sibika 2 textbooks worth $1,817,294.57 and 67,379 teachers’ manuals worth P433,095.95; 2,092,674 HeKaSi 4 textbooks worth $1,900,269.35 and 59,976 teachers’ manuals worth P379,767.80; and 1,537,599 HeKaSi 5 textbooks worth $1,402,697.31 and 44,068 teachers’ manuals worth P238,759.25.

Vibal was awarded a contract to print 2,937,680 Sibika I textbooks and 84,104 teachers’ manuals worth P133,262,266.45; 1,259,160 Sibika 3 textbooks and 36,068 teachers’ manuals worth P53,916,963.70; and 500,466 HeKaSi 5 textbooks and 14,355 teachers’ manuals worth P21,663,429.80.

Daewoo was awarded a contract to produce 952,804 Sibika 3 textbooks worth $791,590.28 and 7,311 teachers’ manuals worth P12,840,623.

But as early as Feb. 28 this year, the Inter-Agency Bids and Awards Committee had already disqualified Vibal and Watana from the bidding due to “conflict of interest.”

He added Vibal has been a “very fortunate” group, having been awarded 75.96 percent of the bids from 1999 to 2004 – or P2,658,756,511 – and for being favored by an influential institution “who bends its own rule just to accommodate their desired end.”

“Rather than an allocation of P650 million for intelligence funds of the President, I am examining closely realigning P650 million in intelligence funds of the President to fund the funding needs of 16,390 new teachers that we need rather than non-productive intelligence budget of P650 million, which is accounted for through a closed envelope system,” Drilon told reporters after the committee hearing on the P134.7 billion DepEd budget for next year.

beads_strawberries

October 12th, 2006, 04:53 AM

^ This textbook scam should be properly addressed by the government, particularly by the Department of Education. We all know that the quality of our education should be saved but here we are, faced with another scam on textbooks. If there is any truth on this allegation, those who are involved should be punished.

In as much as we want to revitalize the quality of education especially in Math, English and Science, this should be coupled with political will to fight those who are engaged in scams like these. The quality of education can only be saved if we will eliminate scams like this in the education sector.

beads_strawberries

October 12th, 2006, 07:58 AM

Government debt reduced by 1.9% in July, according to news. This is attributed by the stronger peso that we have right now.

If we can sustain this, we'll have less government spending which is good for the economy. IMF even lauded our economic gains as a result of the economic reforms implemented by the administration.

Thunderflip

October 12th, 2006, 08:21 AM

Nice info. The site is actually the English translation of a German Literary Page focusing about the Philippines. Cool. So in the near future, people in the Philppines will be hybrid and inbred at once. Let's see how homogenity will help the country. It worked well in Japan and Korea. With more unity, I think we can go places.

JAMAICUS

October 12th, 2006, 08:49 AM

3cr

October 12th, 2006, 10:07 AM

@ Jamaicus,
I wish it would be that easy to discard/dismiss the negative news/editorials because it's not posted to make you or anybody else feel bad about the sorry state of affairs of our country. Actually they are there to counterbalance all the good news being posted in this thread to give a better picture of what's really going on in the Philippines. Kung panay good news lamang, meron namang Good News Thread for that. Hindi naman tama yun kung panay good news lamang ang ipopost dito since that does not represent reality and we're only kidding ourselves into complacency. People need to understand the hard reality because we are not living in a fantaserye. Kung mahirap man ang buhay sa ating bansa lalong hindi ito dapat takbuhan o kalimutan na parang hindi nangyayari. Kailangan matauhan at mamulat sa realidad ang mga mambabasa para makapag tulong-tulongan tayo sa ikabubuti at ikauunklad ng ating bansa. In the end of the day we all want a better Philippines. Yun lamang po.

JAMAICUS

October 12th, 2006, 10:14 AM

@ Jamaicus,
I wish it would be that easy to discard/dismiss the negative news because it's not posted to make you or anybody else to feel bad about the sorry state of affairs of our country. Actually they are there to counterbalance all the good news being posted in this thread to give a better picture of what's really going on in the Philippines. Kung panay good news lamang, meron namang Good News Thread for that. Hindi naman tama yun kung panay good news lamang ang ipopost dito since that does not represent reality and we're only kidding ourselves into complacency. People need to understand the hard reality because we are not living in a fantaserye. Kung mahirap man ang buhay sa ating bansa lalong hindi ito dapat takbuhan o kalimutan na parang hindi nangyayari. Kailangan matauhan at mamulat sa realidad ang mga mambabasa para makapag tulong-tulongan tayo sa ikabubuti at ikauunklad ng ating bansa. In the end of the day we all want a better Philippines. Yun lamang po. Peace bro!

I guess you're right; it's just probably my "demoralized" side talking again... let's try to balance thing up, yun na lang, balansehen... anyway, though I'll still post more of the positive side... bahala na yung iba na magpost ng ibang mas nakakalungkot na balita...

------------------------------------------------------------------
on the lighter note :

Gov't debt down 1.9% at end-July

Reuters
Last updated 02:19am (Mla time) 10/12/2006

GOVERNMENT debt fell 1.9 percent at the end of July from end-June because of a stronger peso and credit repayments, the Bureau of the Treasury said on Wednesday.

Total debt at end-July was P3.924 trillion ($78.4 billion), compared with P75 billion at end-June. Fifty-five percent of the total was owed to local creditors and the balance to foreign lenders.

"The appreciation of the peso against the US dollar and the net repayments of foreign and domestic obligations in July contributed to the decline in debt," National Treasurer Omar Cruz said in a statement.

The Philippines, Asia's largest issuer of sovereign debt after Japan, has reduced its borrowings for the year due to an improving fiscal condition.

The government recorded four surpluses so far this year and in the eight months to August had a deficit of P34.2 billion, under a third of the P125 billion target for 2006.

Domestic debt fell 0.5 percent to P2.15 trillion at the end of July from the previous month. Foreign loans declined 3.5 percent to P1.772 trillion in the same period.

Contingent debt, composed of guarantees extended by the national government and not included in the total debt level, also fell 2.9 percent to P575.9 billion in July from June.

The Philippines aims to narrow its ratio of debt to gross domestic product to 62 percent next year and 56 percent in 2008 from an expected 68 percent this year.

The government's debt-to-GDP ratio fell to 72 percent last year from 79 percent in 2004, helped by fiscal reforms that have included a broader and higher national sales tax.

About one-third of the government's budget is used to pay interest on its debts.

http://business.inq7.net/money/topstories/view_article.php?article_id=26178

Sinjin P.

October 12th, 2006, 01:28 PM

marites4

October 12th, 2006, 09:38 PM

I guess you're right; it's just probably my "demoralized" side talking again... let's try to balance thing up, yun na lang, balansehen... anyway, though I'll still post more of the positive side... bahala na yung iba na magpost ng ibang mas nakakalungkot na balita...

------------------------------------------------------------------
on the lighter note :

Gov't debt down 1.9% at end-July

Reuters
Last updated 02:19am (Mla time) 10/12/2006

GOVERNMENT debt fell 1.9 percent at the end of July from end-June because of a stronger peso and credit repayments, the Bureau of the Treasury said on Wednesday.

Total debt at end-July was P3.924 trillion ($78.4 billion), compared with P75 billion at end-June. Fifty-five percent of the total was owed to local creditors and the balance to foreign lenders.

"The appreciation of the peso against the US dollar and the net repayments of foreign and domestic obligations in July contributed to the decline in debt," National Treasurer Omar Cruz said in a statement.

The Philippines, Asia's largest issuer of sovereign debt after Japan, has reduced its borrowings for the year due to an improving fiscal condition.

The government recorded four surpluses so far this year and in the eight months to August had a deficit of P34.2 billion, under a third of the P125 billion target for 2006.

Domestic debt fell 0.5 percent to P2.15 trillion at the end of July from the previous month. Foreign loans declined 3.5 percent to P1.772 trillion in the same period.

Contingent debt, composed of guarantees extended by the national government and not included in the total debt level, also fell 2.9 percent to P575.9 billion in July from June.

The Philippines aims to narrow its ratio of debt to gross domestic product to 62 percent next year and 56 percent in 2008 from an expected 68 percent this year.

The government's debt-to-GDP ratio fell to 72 percent last year from 79 percent in 2004, helped by fiscal reforms that have included a broader and higher national sales tax.

About one-third of the government's budget is used to pay interest on its debts.

http://business.inq7.net/money/topstories/view_article.php?article_id=26178

You have very good points jamaicus but lets not get demoralized , lets take it as a challenge to identify the issues the country needs to improve on. There are also lots of positive developments and the economy is making some headway unlike in the past. The people in the govt. shouldn't get comfortable they still need to bust their ass double time , pardon my words. Crab mentality is pervasive in PHilippine culture and we need more optimists and progressive thinkers in the PHils.

3cr

October 12th, 2006, 10:22 PM

Tama si Marites. Kailangan din talaga pinupulis (babysitting baga) ang mga namamahala (Gobyerno) para hindi maligaw ng landas kasi kundi tayo at ang ating mga anak rin ang mahihirapan sa huli.

Okidokidok Sin though bias is quite difficult to define since it's primarily based on what one's position/belief is on a given issue. True merong mga editorial na napaka petty though in other instances hindi porque critical/kontra ka sa issue eh bias na when you sound off your opinion or making a point. As an example I didn't find anything particularly biased about the editorial I posted (article reposted below) which Jamaicus replied upon. It's only pointing out the fact that not only is poverty and malnutrition very prevalent but even the wages of those many who actually work are not enough to cover their daily expenses. The point being made is we should not blind of the reality (that life in the Phillipines for most people is very hard); thus, the Gov't much less the President should not be too quick to proclaim such statements like we've gone beyond 3rd world status when the reality is more people are impoverished and suffering. I don't think there was anything wrong nor particularly biased with that do you?

Gloria’s math
By Aldrin Cardon
Daily Tribune
http://www.tribune.net.ph/commentary/20061011com6.html

If you have P16,790 in your bank account, assuming you still trust your bank, it’s likely you’ll survive the year. That’s how government views your survival, at P46 a day you’ll still get to see tomorrow. These numbers, of course, lie. Gloria’s wonder workers have done it possibly to make it appear there’s some improvement in government fight against poverty.

But that’s how things are done today. If Gloria wants to cut a stone with her eyes, she does it with a thousand generals and a hundred clowns behind her. But still, these numbers do not change the fact that more people get hungry by the day. There are not enough jobs to feed them, not enough land to till. The available land we have is in danger of being owned by foreigners.

For the remaining moneyed Pinoy, there are not enough opportunities to cash into. Some small entrepreneurs are even finding it hard to pay P46 for the salary of a company of one staff.

So, where does it bring you?

You wake up with not much but little water to sprinkle on your face. A pail costs P2, you fetch water on your own because delivery adds up to the cost. Pray you get access to clean, free water, because that P2 could buy you some half cup of rice, if you’ve been friendly to Manang, owner of the neighborhood karinderya, all week.

Forget coffee, it costs P10 a cup. Besides, what else could perk up your day knowing you only have P46 in your pocket and nothing more? Besides, knowing you only have so little, kinda jolts you. Didn’t you hear reality awakens even one in deep slumber?

Maybe you can have pan de sal — just one piece please—that’s one peso without fillings and you’re off to work with just P43 left. It will be your budget to feed a family of four.

Granting your brood can survive with a kilo of rice daily (that’s P20) and perhaps some two pieces of tomatoes (P5) and some P18 worth of viand (what it could buy, you figure out), then you are not poor by Gloria’s standards.

Granting this magical budget would work, I wonder how many families on the fringes of poverty would have been fed by Joc-Joc’s P700-million fertilizer funds? How many more would have benefited from Bert Gonzales’ Venable budget? The wasted billions from the botched Piatco contract? Wow, they would have fed the whole RP!

The sad thing is, it ain’t realistic. Forty six pesos simply won’t fly, no government glutton would claim it would be hard to digest.

It’s no longer surprising, though, these numbers would fly out of Malacañang once in a while. There is a credibility problem that needs to be solved and our Palace boys need to pierce the masses’ heart to be able to win them. Making them feel rich won’t solve it, though. Our people need food in their tables, not numbers.

Not the numbers that claim we’re doing better in our lives with just P46 in our pockets.

God, don’t make them make our life a calculus.