Quick question: How many Filipino Catholics go to church? In his
Powerpoint presentation on this Year of the Laity 2014, Salesian priest
and leading Filipino theologian Francis Gustilo flashed the disturbing,
if not alarming answer: only about one in every seven Filipinos baptized
in the faith—13 million of the estimated 85 million faithful—are
church-goers.
Absent at masses and other liturgical activities are an estimated 72
million souls counted as Catholics, but missing in action, so to speak.
In his Apostolic Exhortation Evangelii Gaudium (Joy of the Gospel), Pope
Francis made special mention of these nominal believers as priorities
for evangelization.
“Ordinary parish ministry,” instructed the Holy Father, should reach
out to “members of the faithful who preserve a deep and sincere faith,
expressing it in different ways, but seldom taking part in worship.”
Many readers may find some of their family members, particularly the
young, in this group.
Another mission thrust, Pope Francis added, should be “the baptized
whose lives do not reflect the demands of baptism,” as his predecessor
Benedict XVI told the 2012 Synod of Bishops. Those sisters and brothers
in the faith “lack a meaningful relationship to the Church and no longer
experience the consolation born of faith.”
Reach out to the ‘unchurched’
As a current member of the International Theological Commission
advising the Supreme Pontiff, Fr. Gustilo, professor of Fundamental
Theology and of Spirituality at the Don Bosco Center of Studies in
Parañaque, would have read those papal words and perhaps commented on
them as part of his ITC work.
In his talk at Our Lady of Pentecost Parish Church in Loyola Heights,
Quezon City, last Thursday, however, the Pope’s namesake was concerned
less about the theological permutations of Catholics not practicing the
faith, but the needed actions to bring those “unchurched” millions, as
he put it, back to Jesus Christ and His Church.
It’s not an easy task. With about 6,000 priests and 12,000 nuns in
the country, Fr. Gustilo calculated that he and his fellow religious
would need to woo back to church 4,000 less committed Catholics each.
That’s about one lapsed believer every day for the next eleven years.
But the Don Bosco man had a far better idea: Why not harness the 13
million faithful who do go to church in the mission of evangelizing the
72 million who don’t? Clearly, Fr. Gustilo was paying close attention to
the first major document crafted and commented upon by the ITC for Pope
Francis.
The paramount mission of all believers
Mobilizing every Catholic for evangelization was exactly what the
Holy Father advocated in Evangelii Gaudium. All the faithful must join
hands in the mission of preaching the Gospel and bringing the world
closer to God. Quoting John Paul II’s 1990 encyclical Redemptoris Missio
(Mission of the Redeemer) in parts, Francis declared:
“John Paul II asked us to recognize that ‘there must be no lessening
of the impetus to preach the Gospel’ to those who are far from Christ,
‘because this is the first task of the Church’. Indeed, ‘today
missionary activity still represents the greatest challenge for the
Church’ and ‘the missionary task must remain foremost’.
“What would happen if we were to take these words seriously? We would
realize that missionary outreach is paradigmatic for all the Church’s
activity. Along these lines the Latin American bishops stated that we
‘cannot passively and calmly wait in our church buildings’; we need to
move ‘from a pastoral ministry of mere conservation to a decidedly
missionary pastoral ministry’.”
In sum, the paramount activity of all Catholics is to proclaim the
Gospel through their lives and words, and bring fellow human beings to
Jesus Christ in the Church, so that all souls may be saved.
Evangelization begins at home
So how do 13 million church-going Filipino Catholics bring back the
72 million unchurched? Fr. Gustilo’s game plan is to start at home.
That’s where he himself began: in his own family home, where his
older brother’s family lived together with their parents. While Kuya was
himself an active member of two religious movements, Fr. Gustilo
observed that there was no belen or Holy Family scene at home in
December. “There was a Christmas tree, but no belen,” he recalled.
Moreover, as in countless other households, especially among the
affluent, the children were more interested in Facebook than faith
books.
Fr. Gustilo suggested that the whole household have weekly
“liturgical Bible study” of the coming Sunday mass readings, initially
led by a colleague of his. His parents and his brother obliged. After
the expected reluctance in the first few weeks, the Thursday evening
sessions stirred the family’s interest.
And enthusiasm: Kuya’s youngest son wanted the Bible sessions moved
to Monday, so they have more days before the coming Sunday mass to share
insights with others. Having received the wisdom and joy of God’s word,
the family wants to share it.
Pope Francis recounts that very experience of joy in the Gospel, as
his exhortation is titled: “Thanks solely to this encounter—or renewed
encounter—with God’s love, which blossoms into an enriching friendship,
we are liberated from our narrowness and self-absorption . . . Here we
find the source and inspiration for all our efforts at evangelization.
For if we have received the love which restores meaning to our lives,
how can we fail to share that love with others?”
Eight years to touch six souls
Last Thursday’s talk on the Year of the Laity is part of the
Philippine Church’s preparations for the 500th anniversary in 2021 of
Christianity’s arrival in the archipelago. In 1521, Ferdinand Magellan’s
three religiously christened Spanish ships, the Trinidad, the
Concepcion, and the Victoria (named after a Marian church), brought
Christ to Cebu.
Friars baptized its ruler Rajah Humabon, his queen Hara Amihan, and
800 subjects. As a christening gift, Magellan gave her a wooden statue
of the Holy Child Jesus. Priests also celebrated the country’s first
mass on nearby Limasawa island. Even after the Spaniards left, Cebuanos
venerated the Santo Niño image, as colonizer Miguel Lopez de Legazpi
found in 1565, and celebrated today in the Sinulog festival.
In the years toward 2021, the Church strives for renewed vigor,
sanctity, relevance and evangelical zeal. And one of the best ways for
believers to mark the quinticentennial is for each one to bring six less
devout Catholics back to church over the coming eight years. And with
God blessing our efforts, the 72 million will again be embracing Christ.
Amen.'
source: Manila Times Column by RICARDO SALUDO
24 February 2014
Enough talks, catch tax cheats
Commissioner Kim Henares appears on the right tract in running after tax evaders and delinquent taxpayers to boost government revenue collection.
But the Bureau of Internal Revenue (BIR) commissioner has too many obstacles to hurdle, both legal and administrative. There are laws that need to be repealed or amended for the BIR to dramatically increase its tax collection rate.
In July last year, Budget Secretary Florencio Abad estimated that the government was unable to collect roughly P388 billion in potential revenues due to rampant tax evasion by self-employed individuals, or professionals like doctors, lawyers, accountants, and engineers who dictate their own service fees on their patients or clients.
Abad noted that of the 1.8 million registered taxpayers in 2012, only 402,000 self-employed, business and professionals filed their tax returns. Data show that they paid an average of P33, 441 or a total of P13.4 billion, which accounts for only 0.13 percent of gross domestic product (GDP).
A few days ago, Henares said the government lost at least P61 billion in foregone revenues in 2011 from income tax holidays enjoyed by domestic and international business firms in free ports and economic zones.
The figure could be two to three times bigger because the P61 billion represents only the foregone revenues from 1,318 firms, or just 29 percent of the 4,581 firms registered in economic zones, whose 2011 income tax returns have been reviewed by the BIR.
To further illustrate the serious leakages in the country’s tax system, the Department of Finance and the BIR had made public an info graphic with data showing “ridiculously low tax payments” of self-employed professionals in Makati City in 2012.
The info graphic posted on the government’s Official Gazette showed that one out of two self-employed professionals in Makati paid less tax than a public school teacher. It revealed that 54 percent of 2,031 self-employed accountants, doctors and lawyers in four district offices of the BIR paid less than P35, 000 in taxes in 2012. A public school teacher earning P21, 500 monthly paid more tax of P35, 952 every year.
The same info graphic, which is part of the BIR’s Tax Watch project, showed that one of the 1,179 physicians in the city paid only P10 in taxes while one out of 534 lawyers paid only P200.
Two accountants also paid only P138 and P120 in taxes, amounts that are lower than the minimum wage in Metro Manila.
The discrepancies are too obvious to ignore. Laws prescribing penalties on delinquent taxpayers and tax evaders, be they in government positions, in Congress, in business, or ordinary citizens, ought to be given more teeth.
Simultaneously, measures must be in place to address corruption in the ranks of tax law enforcers like BIR assessors, treasurers, collectors and other tax agents to prevent them from working on compromise agreements with taxpayers and getting a share in the amount paid, which directly goes into their pockets.
Henares needs the cooperation of Congress to get legislative measures passed. But it appears that Congress is the biggest stumbling block to the enactment of bills like waiving the confidentiality rule on tax records once a person enters public office.
Well, there is no such bill pending in Congress right now. There were attempts in the past but none ever prospered even at the committee level.
Just a few days ago, news reports quoted Rep. Magtanggol Gunigundo of Valenzuela City raising a howl over a new BIR directive that required income tax filers to state their passive income, such as interests earned from bank deposits, in filing their income tax returns (ITR).
The congressman said Revenue Regulations 2-2014 (New Income Tax Forms) effectively compels a citizen to allow violation of his rights under the laws on secrecy of bank deposits, anti-money laundering and the tax code.
Gunigundo has a point. The BIR is attempting to secure information that would help compute a taxpayer’s bank deposits, then, match it with his income sources to check if he is paying the correct amount of taxes.
Republic Act No. 1405, enacted in September 1955, grants absolute confidentiality on bank deposits, including investments in government-issued bonds. The intention was to encourage people to save their money in banks and to discourage private hoarding so that the money can be used for productive purposes.
The 59-year-old law penalizes bank officials and employees who would provide bank information, except when the depositor agrees in writing, or in cases of impeachment, or upon court order in cases of bribery, dereliction of duty or when the deposits or investments are subject of litigation.
Henares is probably aware that a repeal of RA 1405 is a long shot. But it is what the country needs.
Remember that in the impeachment cases against former president Joseph Estrada and former Supreme Court chief justice Renato Corona, what brought them down were records of their bank deposits from unexplained sources.
Here is a chance for President Benigno Aquino 3rd and Congress to prove their sincerity and determination to curb corruption and finally adhere to the oft-repeated policy of transparency and openness by enacting a measure that will compel candidates in public office and appointees in government positions to sign a waiver on the confidentiality rule on bank deposits and investment.
They should have nothing to fear if they are entering public service to work for the public interest, as they always claim when campaigning but conveniently forget once they assume office.
Like what I said in my column last week, this is not an impossible dream. Pakistan is showing that it can be done.
A South Asian country that is perceived as more corrupt and with lower tax collection rate than the Philippines, Pakistan has shown the way to improve tax collection: require all electoral candidates to file their certificates of candidacy with their income statements and tax records for the past three years.
Last February 15, Pakistan’s Federal Bureau of Revenues made public in its website a tax directory with the details of the tax records as of June 2013 of the members of its parliamentarians and national and provincial assemblies.
The FBR provides a link to a PDF file that shows how much income tax each member of Pakistan’s parliament paid in 2013. On March 31, tax payments of private citizens will also be available in the website.
“This precedent has set high standards of transparency,” said Senator Mohammad Ishaq Dar, Pakistan’s minister for finance, revenue, economic affairs, statistics and privatization. As of Feb. 15, he said 1, 072 out of Pakistan’s 1, 172 parliamentarians have filed their income tax returns. “For the remaining parliamentarians, due process is being undertaken,” he said.
The Filipino electorate has heard enough promises for good governance from political candidates. The time calls for drastic action now.
source: Manila Times Column by TITA C. VALDERAMA
20 February 2014
Bangko Sentral readying property price index
THE BANGKO SENTRAL ng Pilipinas (BSP) is
working on a residential real estate price index, which it wants to use
as a means of responding preemptively to emerging threats.
Central bank Deputy Governor Diwa C. Guinigundo said the “surveillance tool” was being developed with the National Statistics Office.
“With the index, you are distilling everything in one indicator so that would mean a better monitoring of the real estate sector,” he added.
While monetary authorities currently monitor property prices, there is no index that allows them to track averages and compare these across time periods, locations and market segments. The central bank also relies on other indicators, such as price-to-earnings and price-to-income ratios, to assess the expansion of the real estate industry.
The residential real estate price index could be rolled out “this year,” Mr. Guinigundo said, noting that it will initially focus on residential prices and eventually “add commercial real estate prices...”.
David T. Leechiu, Jones Lang LaSalle country head, said: “Having the index is a welcome development. It gives more transparency because our investment climate is opaque.”
“It will serve as a guide and be a reference point for present and prospective investors. They will know whether the market is looking healthy or not and they will have better confidence in investing in the Philippines,” Mr. Leechiu added.
“Though there is no any sense of danger in the real estate market at present because there is no oversupply, we would need this index sooner than later because it would present more opportunities for the Philippines.”
Neighboring Singapore has a real estate index, which calculates price changes that take into account factors such as the property’s distance to a top school or a metro station.
The creation of a Philippine version is in line with the BSP’s move to improve its monitoring of banks’ real estate exposure. In 2012 the central bank, among others required banks to report not only their loans to the real estate sector but also their investments in debt and equity securities issued by real estate companies.
Banks’ real estate exposure amounted to P900.1 billion as of June last year, 6.82% higher than the P842.6 billion recorded as of March. This accounted for 21.7% of the banking system’s total loan portfolio of P4.2 trillion, the BSP said, exceeding the 20% cap.
The central bank stressed that this was not a cause for alarm as the breach was due to changes it made on the definition of banks’ real estate exposure. -- ARRG
source: Businessworld
Central bank Deputy Governor Diwa C. Guinigundo said the “surveillance tool” was being developed with the National Statistics Office.
“With the index, you are distilling everything in one indicator so that would mean a better monitoring of the real estate sector,” he added.
While monetary authorities currently monitor property prices, there is no index that allows them to track averages and compare these across time periods, locations and market segments. The central bank also relies on other indicators, such as price-to-earnings and price-to-income ratios, to assess the expansion of the real estate industry.
The residential real estate price index could be rolled out “this year,” Mr. Guinigundo said, noting that it will initially focus on residential prices and eventually “add commercial real estate prices...”.
David T. Leechiu, Jones Lang LaSalle country head, said: “Having the index is a welcome development. It gives more transparency because our investment climate is opaque.”
“It will serve as a guide and be a reference point for present and prospective investors. They will know whether the market is looking healthy or not and they will have better confidence in investing in the Philippines,” Mr. Leechiu added.
“Though there is no any sense of danger in the real estate market at present because there is no oversupply, we would need this index sooner than later because it would present more opportunities for the Philippines.”
Neighboring Singapore has a real estate index, which calculates price changes that take into account factors such as the property’s distance to a top school or a metro station.
The creation of a Philippine version is in line with the BSP’s move to improve its monitoring of banks’ real estate exposure. In 2012 the central bank, among others required banks to report not only their loans to the real estate sector but also their investments in debt and equity securities issued by real estate companies.
Banks’ real estate exposure amounted to P900.1 billion as of June last year, 6.82% higher than the P842.6 billion recorded as of March. This accounted for 21.7% of the banking system’s total loan portfolio of P4.2 trillion, the BSP said, exceeding the 20% cap.
The central bank stressed that this was not a cause for alarm as the breach was due to changes it made on the definition of banks’ real estate exposure. -- ARRG
source: Businessworld
19 February 2014
Investing in an uncertain and slower world
THERE is a small group of wealthy Filipinos
who are in search of investment opportunities. They might find an
economy that is expanding, albeit at a slower rate, a stock market
that’s less vibrant than before, and a real estate market that’s losing
steam. In brief, potential investors may have to be more cautious,
selective, and circumspect.
Who are these wealthy Filipinos? Consider the richest 10% of the population. Their average per capita income has increased by 11.9% from 2009 to 2012. Even more impressive, for the same group, per capita savings has risen by 24.6%.
For these relatively well-off Filipinos, 2014 will be a challenging year for the Philippines.
During the last three years, the economy has grown with an upward trajectory -- 3.6% in 2011, 6.8% in 2012, and 7.2% in 2013. But all good things come to an end. The emerging consensus is that growth will decelerate to 6.0% to 6.5% in 2014.
The prospect of a rebound in 2015 cannot be ruled out. But it will depend on the government’s ability to move its public-private partnership (PPP) projects and its huge rehabilitation and restoration program.
The average GDP growth rate in recent years (2011 to 2013) is one-percentage higher than the average growth rate in the previous decade, 2001-2010: 5.87% vs. 4.77%. That’s good news. But is it sustainable?
With rising income, the savings outlook of individuals continues to improve. The Fourth Quarter 2013 survey results of the Bangko Sentral ng Pilipinas show that for the National Capital Region (NCR), 75% of households earning a monthly income of P30,000 and over can set aside savings in the current quarter. Of this income class, 19.7% of households are willing to allocate 20% or higher of their income to savings.
For areas outside NCR, the potential is even better. Sixty-five percent of households earning a monthly income of P30,000 and higher can afford to save in the current quarter, with 25.7% indicating their desire to save 20% or more of their income.
MACRO VIEW: TOTAL INVESTMENT VS. GROSS SAVINGS
The Philippine savings rate is one of the lowest in Asia. The difference between gross national savings and total investment, both as percent of GDP, is shrinking and is forecast to shrink in future years.
Yet, the country’s lack of infrastructure has been a major constraint to sustainable and strong growth. For the country to make up for past neglect and to meet the demand of a modernizing economy, it has to spend the equivalent of 5% to 7% of GDP for public infrastructure for the next 10 years.
One way of doing this is by raising long-term infrastructure bonds, which will be subscribed to by wealthy Filipinos and firms.
INDIVIDUAL INVESTMENT DECISIONS
Individual investors are expected to maximize return on investment net of taxes. Thus, the tax regime is important. Our present tax system discourages setting up one’s business because of the unusually high tax (30%) on corporate income.
The 20% final tax on interest incomes is equally burdensome.
Tax on royalties and winning is a final tax of 10%. Tax on capital gains is a final tax of 5% if less than P100,000 and final tax of 10% on an amount greater than P100,000.
The least tax among all investment possibilities is real property. Hence, it remains to be the investment of choice of wealthy individuals. Unfortunately, as a people and society, we have overinvested in real properties and underinvested on modern farms and factories. Such a pattern of investment is a rational response to the existing tax system, labor market policies, and the general difficulty in setting up and running a business in this country.
No wonder, economic growth has failed to create a lot of jobs and opportunities for many Filipinos. The phenomenon called “jobless” growth should not be a puzzle to government authorities.
(The author is Professor of Economics at the UP School of Economics and former Secretary of Budget and Management.)
source: Businessworld
Who are these wealthy Filipinos? Consider the richest 10% of the population. Their average per capita income has increased by 11.9% from 2009 to 2012. Even more impressive, for the same group, per capita savings has risen by 24.6%.
For these relatively well-off Filipinos, 2014 will be a challenging year for the Philippines.
During the last three years, the economy has grown with an upward trajectory -- 3.6% in 2011, 6.8% in 2012, and 7.2% in 2013. But all good things come to an end. The emerging consensus is that growth will decelerate to 6.0% to 6.5% in 2014.
The prospect of a rebound in 2015 cannot be ruled out. But it will depend on the government’s ability to move its public-private partnership (PPP) projects and its huge rehabilitation and restoration program.
The average GDP growth rate in recent years (2011 to 2013) is one-percentage higher than the average growth rate in the previous decade, 2001-2010: 5.87% vs. 4.77%. That’s good news. But is it sustainable?
With rising income, the savings outlook of individuals continues to improve. The Fourth Quarter 2013 survey results of the Bangko Sentral ng Pilipinas show that for the National Capital Region (NCR), 75% of households earning a monthly income of P30,000 and over can set aside savings in the current quarter. Of this income class, 19.7% of households are willing to allocate 20% or higher of their income to savings.
For areas outside NCR, the potential is even better. Sixty-five percent of households earning a monthly income of P30,000 and higher can afford to save in the current quarter, with 25.7% indicating their desire to save 20% or more of their income.
MACRO VIEW: TOTAL INVESTMENT VS. GROSS SAVINGS
The Philippine savings rate is one of the lowest in Asia. The difference between gross national savings and total investment, both as percent of GDP, is shrinking and is forecast to shrink in future years.
Yet, the country’s lack of infrastructure has been a major constraint to sustainable and strong growth. For the country to make up for past neglect and to meet the demand of a modernizing economy, it has to spend the equivalent of 5% to 7% of GDP for public infrastructure for the next 10 years.
One way of doing this is by raising long-term infrastructure bonds, which will be subscribed to by wealthy Filipinos and firms.
INDIVIDUAL INVESTMENT DECISIONS
Individual investors are expected to maximize return on investment net of taxes. Thus, the tax regime is important. Our present tax system discourages setting up one’s business because of the unusually high tax (30%) on corporate income.
The 20% final tax on interest incomes is equally burdensome.
Tax on royalties and winning is a final tax of 10%. Tax on capital gains is a final tax of 5% if less than P100,000 and final tax of 10% on an amount greater than P100,000.
The least tax among all investment possibilities is real property. Hence, it remains to be the investment of choice of wealthy individuals. Unfortunately, as a people and society, we have overinvested in real properties and underinvested on modern farms and factories. Such a pattern of investment is a rational response to the existing tax system, labor market policies, and the general difficulty in setting up and running a business in this country.
No wonder, economic growth has failed to create a lot of jobs and opportunities for many Filipinos. The phenomenon called “jobless” growth should not be a puzzle to government authorities.
(The author is Professor of Economics at the UP School of Economics and former Secretary of Budget and Management.)
source: Businessworld
17 February 2014
VEHICLE IMPORTERS RECORD BETTER SALES
The Association of Vehicle Importers and Distributors Inc. (AVID) said
that consolidated sales of its members grew in October compared to the
previous month. AVID sales grew 16.3 percent in October, capping the
month with 2,589 units sold from the 2,227 units delivered in September.
Year-to-date sales also reflected an increase, with sales during the
first 10 months of the year reaching 25,374 units versus the 24,004
units recorded during the same period last year. AVID President Ma. Fe
Perez-Agudo said that the group hopes to remain resilient while the
country recovers from the effects caused by Super Typhoon Yolanda.
source: Manila Times
source: Manila Times
13 February 2014
JFC backs bill amending law on foreign investments
It noted that there are 47 laws governing the practice of specific
professions, and 42 contain reciprocity provisions allowing foreigners
to practice their profession in the Philippines, provided their
countries of origin also allow Filipinos to practice these.
The Philippine Star
The Philippine Star
Failure in job creation
In a Cabinet meeting Tuesday, President Aquino asked his Cabinet to
explain what went wrong that resulted in the number of unemployed,
increasing 6% to 27.5%, totalling 12.1 million jobless Filipinos.
P-Noy asked the Cabinet for an action plan on poverty reduction. It appears that the main program to combat poverty is the conditional cash transfer (CCT) program, which has now ballooned to P62 billion.
Analysts have expressed the view that the CCT has not been effective in alleviating poverty. The ‘cash for work’ programs of the Department of Social Welfare and Development (DSWD) have been too small, and are benefitting only a few thousand of the 12.5 million unemployed.
The infrastructure spending has focused on big ticket projects and not in job intensive projects like farm-to-market roads and small communal irrigation systems.
Communications Secretary Herminio Coloma said the Aquino administration is focusing on job creation in manufacturing and more highly remunerative sectors. He gave no further details.
Economics professors Victor Abola and Benjamin Diokno expressed the view that the 7.2% gross domestic product (GDP) growth did not translate in the hiring of more workers.
Diokno said that even the multibillion-peso school-building program
has been awarded to big-time contractors, instead of the thousands of
small contractors that used to do the job.
Other economists also said that we need to attain a 9% GDP growth to create jobs. The projection of GDP in 2014 by the National Economic and Development Authority (NEDA) is still at 6.5-7.5% GDP growth.
The bottom line — “The Aquino administration has failed to create jobs.”
(The Philippine Star)
P-Noy asked the Cabinet for an action plan on poverty reduction. It appears that the main program to combat poverty is the conditional cash transfer (CCT) program, which has now ballooned to P62 billion.
Analysts have expressed the view that the CCT has not been effective in alleviating poverty. The ‘cash for work’ programs of the Department of Social Welfare and Development (DSWD) have been too small, and are benefitting only a few thousand of the 12.5 million unemployed.
The infrastructure spending has focused on big ticket projects and not in job intensive projects like farm-to-market roads and small communal irrigation systems.
Communications Secretary Herminio Coloma said the Aquino administration is focusing on job creation in manufacturing and more highly remunerative sectors. He gave no further details.
Economics professors Victor Abola and Benjamin Diokno expressed the view that the 7.2% gross domestic product (GDP) growth did not translate in the hiring of more workers.
Other economists also said that we need to attain a 9% GDP growth to create jobs. The projection of GDP in 2014 by the National Economic and Development Authority (NEDA) is still at 6.5-7.5% GDP growth.
The bottom line — “The Aquino administration has failed to create jobs.”
(The Philippine Star)
Crucify the wealthy?
LAST month nonprofit
organization Oxfam International released a report titled “Working for a
Few,” which said the world’s 85 richest people have as much as the
poorest 3.5 billion. According to a summary of the report, “the wealth
of the top 1 percent of the world’s richest people amounts to $110
trillion. That’s 65 times the total wealth of the bottom half of the
world’s population.” The media lapped up the report, quoting Oxfam as
saying that “rigged rules mean economic growth for rich elites all over
world.”
Oxfam, founded by a
group of Quakers in England in 1942, was first known as the Oxford
Committee for Famine Relief. Now it is considered as a “social activist”
organization.
You would think that
Oxfam was talking only about dictators like North Korean leader Kim Jong
Un, global arms dealer Adnan Khashoggi (once one of the world’s
richest), or maybe a crooked (Filipino) customs official no one has ever
heard of. But Oxfam’s list of the world’s 10 wealthiest people features
those who own and run legitimate, tax-paying businesses. Most of them
started their businesses from the ground up and are rich only because of
the value of the businesses they own, not because they have been
stealing from the poor.
Microsoft founder Bill
Gates is on the list because of the company that he created in 1975,
which changed the world for the rest of us; Microsoft directly employs
over 100,000 people. So is Larry Ellison, who founded Oracle Corp.,
which has 125,000 employees. Also on the list are Amancio Ortega and
Rosalía Mera, who founded the Spanish clothing company Zara in 1974.
Zara now has 1,800 stores worldwide.
Some of these
companies have been around for many decades. Another member of the elite
group who apparently took advantage of the “rigged rules” is Lilian
Bettencourt. She is the 91-year-old daughter of the founder of the
personal-care company L’Oreal, which was founded in 1909 and employs
over 90,000.
Frenchman Bernard
Arnault convinced his father to sell their family’s construction company
in 1976 and used the money to buy a number of luxury-goods companies,
including Louis Vuitton (founded in 1854) and Moët & Chandon
champagne (formed in 1743). Arnault’s group employs 90,000.
While it could be true
that “behind every great fortune, there is a great crime,” as French
novelist Honoré de Balzac once said, what Oxfam might better concentrate
on is income disparity. But then again, maybe you cannot make
sensational headlines with these facts:
Did you know that you
might very easily be in the top 1 percent of all 7 billion people on
earth in terms of income? According to World Bank economist Branko
Milanovic, you are in the global top 1 percent if your annual income
(converted to pesos at 45 to $1) is P1.53 million. Even P225,000 makes
you a member of the top 20 percent and P540,000 puts you in the top 10
percent. Incredibly, an annual income of P3.15 million a year puts you
in the top 0.01 percent of all global income earners. We wonder how much
Oxfam Executive Director Winnie Byanyima earns each year.
Wealth is not a single
pizza with limited slices, where if you take too many, someone else
does not eat. Wealth creation is milling flour, growing tomatoes,
building pizza ovens and baking more and more pizzas so that everyone
has plenty to eat. Wealth is not created by stealing from your local
pizza chain.
source: Businessworld
03 February 2014
Aquino claims classroom lack now erased
PRESIDENT Benigno S. C. Aquino III yesterday claimed his administration has filled the classroom shortages in public schools left by his predecessor, former President Gloria Macapagal-Arroyo.
“Today (yesterday), we witnessed the ceremonial turn-over of
66,813 new classrooms which also erased the backlog we inherited from
the past administration,” Mr. Aquino said in a speech at the Carmona
National High School in Cavite.
Mr. Aquino said the Arroyo administration left a backlog of 66,800 classrooms, each costing an estimated at P800,000. His government’s public-private partnership program, the president added, had helped address part of the need.
Two groups -- the Citicore-Megawide and BF Corp.-Riverbanks Development Corp. consortiums -- won the P16.42 billion PPP for School Infrastructure Project Phase 1 (PSIP-I), involving around 9,300 classrooms, in 2012.
An update is expected to be released today.
The second phase, portions of which were awarded last year, involves the construction of an additional 4,370 classrooms.
Communications Secretary Herminio B. Coloma, Jr. said the Department of Education (DepEd) has also added over 62 million textbooks to address backlogs. He claimed the government saved as much as 40% as the materials were purchased a lower price.
The DepEd has also addressed a school chair shortage of 2.5 million and added 103,000 teachers, he said.
“We can see here that DepEd has made meaningful accomplishments and this serves as basis in the social development program of our government,” Mr. Coloma said.
Asked to comment, Kabataan party-list representative James Mark Terry L. Ridon said: “I am certain that the President has been misled” with regard to the classroom backlog having been addressed.
“All it takes is to go around the schools to determine that our kids still have no adequate classrooms over their heads,” the legislator said.
Mr. Aquino said the Arroyo administration left a backlog of 66,800 classrooms, each costing an estimated at P800,000. His government’s public-private partnership program, the president added, had helped address part of the need.
Two groups -- the Citicore-Megawide and BF Corp.-Riverbanks Development Corp. consortiums -- won the P16.42 billion PPP for School Infrastructure Project Phase 1 (PSIP-I), involving around 9,300 classrooms, in 2012.
An update is expected to be released today.
The second phase, portions of which were awarded last year, involves the construction of an additional 4,370 classrooms.
Communications Secretary Herminio B. Coloma, Jr. said the Department of Education (DepEd) has also added over 62 million textbooks to address backlogs. He claimed the government saved as much as 40% as the materials were purchased a lower price.
The DepEd has also addressed a school chair shortage of 2.5 million and added 103,000 teachers, he said.
“We can see here that DepEd has made meaningful accomplishments and this serves as basis in the social development program of our government,” Mr. Coloma said.
Asked to comment, Kabataan party-list representative James Mark Terry L. Ridon said: “I am certain that the President has been misled” with regard to the classroom backlog having been addressed.
“All it takes is to go around the schools to determine that our kids still have no adequate classrooms over their heads,” the legislator said.
source: Businessworld
PDI Editorial: ‘Inclusive business’
Editorial
‘Inclusive business’
“Inclusive growth” has become the buzz phrase in the Aquino administration with the noticeable lack of impact of the stellar economic expansion in the past two years on alleviating poverty. Inclusive growth simply means making the fruits of economic progress trickle down to the poor, or those who have less—or even none—in life.One sure way of making growth inclusive is by generating as many jobs as possible. This can be done by investing in economic activities that have a big multiplier effect—for example, construction, which requires many workers and, at the same time, gives businesses to allied industries producing cement, steel, wood and lumber, electrical equipment and other building materials. The increased demand for their products will, in theory, lead them to expand production and, in the process, hire more workers for their factories.
Why then did the stellar economic growth in the past two years fail to curb poverty? It’s because investments—both by the public and private sectors—in manufacturing, industry and infrastructure did not grow as much. Economists point out that services, and not the labor-intensive industrial and public infrastructure sectors, have been the main growth driver of the economy.
The government has blamed lack of financing for its rather limited investments in public infrastructure projects like airports, roads and bridges. This has prompted the Aquino administration to tap private investments by embarking on its flagship Public-Private Partnership program, which has sadly been hindered by unnecessary delays as well.
That being so, the private sector should then rise to the challenge of helping fight poverty. For starters, it should take some risk in investing in areas where economic and employment conditions are not perfect. It should not expect the government to make investing risk-free for them. Last week, Cabinet Secretary Jose Rene Almendras told the Management Association of the Philippines that the government could do only so much in making the economy work, and that the private sector should join the state by adopting the concept of “inclusive business.”
He
said the private sector could help reduce poverty by investing in the
least developed regions, which include Quezon province and the Mimaropa
(the provinces of Oriental and Occidental Mindoro, Marinduque, Romblon
and Palawan). He pointed out that while the daily salary rate in Quezon
is only P201, the province provides investment opportunities in retail
and services, and that Mimaropa (Region 4-B) has a salary rate of P205 a
day and yet provides business opportunities in the nonagriculture
sector. Even the provinces of Cavite, Laguna, Batangas and Rizal, where
the average salary rate is P208 a day, provide investment opportunities
in small-scale ventures.
Genson suggested that a financing scheme be crafted to meet the needs of small and medium enterprises, pointing out that it is impossible for small borrowers like farmers to meet the bank’s requirement of audited financial statements for the past two or three years. Big local banks should step up to this challenge of financing the needs of the regions that need money the most.
Inclusive business is a global movement spearheaded by the World Business Council for Sustainable Development, a CEO-led organization of companies that is prodding the global business community to create a sustainable future for business, society and the environment. It was founded on the eve of the 1992 Rio Earth Summit by Swiss entrepreneur and philanthropist Stephan Schmidheiny, who believes that business has an inescapable role to play in sustainable development by making significant contributions to the creation of a sustainable society.
The Philippine corporate sector should heed his call.
source: Philippine Daily Inquirer
51 years of smuggling cost $410B
MANILA, Philippines—“Illicit funds,” estimated
at $410.5 billion, flowed into and out of the Philippines between 1960
and 2011, a significant portion of which occurred through smuggling,
said a report published Tuesday by a Washington-based research and
advocacy group.
The illicit flow of funds through trade reduced domestic savings, drove the underground economy and facilitated crime, according to the Global Financial Integrity (GFI) group.
“There’s a crisis in this country, as far as the amount of illicit money flowing into and out of the country through the use of trade,” GFI managing director Tom Cardamone told the Inquirer in an interview on Monday. “And that comes down to the ability or inability of the customs department to get on top of this issue.”
The report put the Bureau of Customs (BOC) in its cross hairs, pointing to massive technical smuggling as the main cause of the illicit flow of funds.
Crime, corruption
Over the 51-year period, the Philippines suffered $132.9 billion in illicit financial outflows from crime, corruption and tax evasion.
Conversely, $277.6 billion was illegally transferred into the country “predominantly through the misinvoicing of trade transactions,” said the report titled “Illicit Financial Flows to and from the Philippines: A Study in Dynamic Situation, 1960-2011.”
Underdeclaration
Misinvoicing is more commonly known locally as “technical smuggling,” or the underdeclaration of imported goods’ value, quantity or quality in order to reduce customs duties.
Since 1990, it is estimated that misinvoicing has cost the Philippine government at least $23 billion in lost tax revenues.
GFI’s report, funded by Ford Foundation, coincides with the current drive of the Aquino administration to reform the BOC, which ranks as one of the most corrupt agencies in various perception surveys.
On the average, one fourth of the value of all goods imported into the country is underreported to customs officials, the study found.
Of all the illicit inflows into the country, 96 percent were due to outright or technical smuggling.
“Ninety-six percent of these illicit inflows are due to the misinvoicing of trade,” Cardamone said.
“By misinvoicing, we’re talking about misreporting the price, quality or quantity of goods. Customs fraud is another way to discuss it. That’s what it is. It’s essentially misrepresenting what’s in these containers.”
Negative impact
In terms of the illicit outflows, 72 percent of the estimated amount was due to the misinvoicing of goods, while 28 percent was due to corruption. “That’s money coming out of government coffers, basically,” Cardamone said.
The GFI managing director rejected the argument that smuggled goods—which are often sold on the market cheaper than legally imported goods or locally produced goods—were beneficial to price-conscious consumers.
“The problem is that illicit flows facilitate illegal activity,” he said. “It’s used to perpetuate the illegal activities of the underground economy. That’s why it’s a negative to the economy.”
Asked why GFI decided to come up with the report on the Philippines at this time, the official of the research and advocacy group said the country perennially stood out as one jurisdiction with a significant problem in the illicit trade of goods.
“Over the last several years, we’ve done studies on Mexico, Russia and India. For geographic diversity, we picked a nation in the Pacific of Southeast Asia,” Cardamone said.
“In our annual study, the Philippines kept coming up year after year after year in the top 10 or top 12 or top 14. So we said, that’s a good one [to study].”
On behalf of disenfranchised
GFI, he said, was acting on behalf of the country’s underprivileged.
“We feel that the people whose interests are being furthered are the poor people of the Philippines, who are basically disenfranchised because of their economic status and lack of political power, and their inability to ‘game the system’ as so many others do,” Cardamone said.
As for the Aquino administration’s drive to address smuggling, the GFI official said there was “no way to tell” whether recent reform efforts had met with success because the latest data on smuggling the group used were from 2011.
It would take at least two more years to assess the administration’s efforts to combat smuggling, Cardamone said.
Political will
“What has this government done to address the problem? Rhetorically, it seems that they’re doing quite a bit,” he said, but added that it was
“unclear if there is a political will” within the customs bureau to implement the planned reforms.
“But with the President’s statement during the State of the [Nation] Address last July, specifically about the customs department, political will seems to be changing for the better to really address this problem in a significant way,” he said.
South Korea experience
The GFI official said the country should draw inspiration from South Korea, which started, more or less, at par with the country in the 1960s in terms of corruption and smuggling levels.
Since then, however, South Korea has shown a downward trajectory in terms of corruption, which corresponded with a decline in smuggling activities. The Philippines, on the other hand, exhibited the opposite.
Too early to tell
“Political will is great. Research is great. Informing institutions is great. But it has to be sustained over the long haul, or it looks just like window-dressing,” Cardamone said.
“From where I sit, it’s still too early to tell whether the government has what it takes to reform the bureaucracy to be able to sustain these reforms over the longer period, 5, 10, 20, 30 years, which is what it’s going to take to make the Philippines look like South Korea,” he added.
source: Philippine Daily Inquirer
The illicit flow of funds through trade reduced domestic savings, drove the underground economy and facilitated crime, according to the Global Financial Integrity (GFI) group.
“There’s a crisis in this country, as far as the amount of illicit money flowing into and out of the country through the use of trade,” GFI managing director Tom Cardamone told the Inquirer in an interview on Monday. “And that comes down to the ability or inability of the customs department to get on top of this issue.”
The report put the Bureau of Customs (BOC) in its cross hairs, pointing to massive technical smuggling as the main cause of the illicit flow of funds.
Crime, corruption
Over the 51-year period, the Philippines suffered $132.9 billion in illicit financial outflows from crime, corruption and tax evasion.
Conversely, $277.6 billion was illegally transferred into the country “predominantly through the misinvoicing of trade transactions,” said the report titled “Illicit Financial Flows to and from the Philippines: A Study in Dynamic Situation, 1960-2011.”
Underdeclaration
Misinvoicing is more commonly known locally as “technical smuggling,” or the underdeclaration of imported goods’ value, quantity or quality in order to reduce customs duties.
Since 1990, it is estimated that misinvoicing has cost the Philippine government at least $23 billion in lost tax revenues.
GFI’s report, funded by Ford Foundation, coincides with the current drive of the Aquino administration to reform the BOC, which ranks as one of the most corrupt agencies in various perception surveys.
On the average, one fourth of the value of all goods imported into the country is underreported to customs officials, the study found.
Of all the illicit inflows into the country, 96 percent were due to outright or technical smuggling.
“Ninety-six percent of these illicit inflows are due to the misinvoicing of trade,” Cardamone said.
“By misinvoicing, we’re talking about misreporting the price, quality or quantity of goods. Customs fraud is another way to discuss it. That’s what it is. It’s essentially misrepresenting what’s in these containers.”
Negative impact
In terms of the illicit outflows, 72 percent of the estimated amount was due to the misinvoicing of goods, while 28 percent was due to corruption. “That’s money coming out of government coffers, basically,” Cardamone said.
The GFI managing director rejected the argument that smuggled goods—which are often sold on the market cheaper than legally imported goods or locally produced goods—were beneficial to price-conscious consumers.
“The problem is that illicit flows facilitate illegal activity,” he said. “It’s used to perpetuate the illegal activities of the underground economy. That’s why it’s a negative to the economy.”
“For
the sake of argument, let’s say that [smuggling] keeps prices down. But
what you don’t see there—what the consumer doesn’t see—is the tax loss
to the government and the [resulting] lack of government services that
they might also benefit from,” Cardamone said.
Perennial standout
Asked why GFI decided to come up with the report on the Philippines at this time, the official of the research and advocacy group said the country perennially stood out as one jurisdiction with a significant problem in the illicit trade of goods.
“Over the last several years, we’ve done studies on Mexico, Russia and India. For geographic diversity, we picked a nation in the Pacific of Southeast Asia,” Cardamone said.
“In our annual study, the Philippines kept coming up year after year after year in the top 10 or top 12 or top 14. So we said, that’s a good one [to study].”
On behalf of disenfranchised
GFI, he said, was acting on behalf of the country’s underprivileged.
“We feel that the people whose interests are being furthered are the poor people of the Philippines, who are basically disenfranchised because of their economic status and lack of political power, and their inability to ‘game the system’ as so many others do,” Cardamone said.
As for the Aquino administration’s drive to address smuggling, the GFI official said there was “no way to tell” whether recent reform efforts had met with success because the latest data on smuggling the group used were from 2011.
It would take at least two more years to assess the administration’s efforts to combat smuggling, Cardamone said.
Political will
“What has this government done to address the problem? Rhetorically, it seems that they’re doing quite a bit,” he said, but added that it was
“unclear if there is a political will” within the customs bureau to implement the planned reforms.
“But with the President’s statement during the State of the [Nation] Address last July, specifically about the customs department, political will seems to be changing for the better to really address this problem in a significant way,” he said.
South Korea experience
The GFI official said the country should draw inspiration from South Korea, which started, more or less, at par with the country in the 1960s in terms of corruption and smuggling levels.
Since then, however, South Korea has shown a downward trajectory in terms of corruption, which corresponded with a decline in smuggling activities. The Philippines, on the other hand, exhibited the opposite.
Too early to tell
“Political will is great. Research is great. Informing institutions is great. But it has to be sustained over the long haul, or it looks just like window-dressing,” Cardamone said.
“From where I sit, it’s still too early to tell whether the government has what it takes to reform the bureaucracy to be able to sustain these reforms over the longer period, 5, 10, 20, 30 years, which is what it’s going to take to make the Philippines look like South Korea,” he added.
source: Philippine Daily Inquirer
Commentary
Bureau of Customs’ crucial role in inclusive growth
By Ernesto M. Ordoñez, 24 December 2013
Will farmers and fisherfolk have a merry Christmas? Only if BOC exercises its role in inclusive growth.
President Aquino wants our impressive growth to be more inclusive. The trickle down approach benefiting the poor in the long run is not good enough.
The rural sector, composed mostly of farmers and fisherfolk, is both the largest and the poorest. Their situation has not kept pace with our economic growth. For those victimized by smuggling, their situation has become even worse.
This is actually the opposite of inclusive growth. An example of smuggling’s curse is that 20 percent of our small backyard hog raisers lost their livelihoods over a two-year period according to the Department of Agriculture’s Bureau of Agricultural Statistics.
Landmark case
Today, there is a landmark case on rice smuggling that deserves immediate attention. This is the Dec. 13, 2013 order of Judge Emmanuel Carpio of the Regional Trial Court in Davao City.
A large shipment of rice without the necessary import permit from the National Food Authority (NFA) was recently seized in Davao by the Bureau of Customs (BOC). The plaintiff argued that no smuggling occurred because NFA import permits were no longer required to import rice.
In the court order, Judge Carpio stated: “The plaintiff has the right to cause the release of the rice shipments and take possession and custody thereof…It is clear that WTO special treatment for rice was the only source of the Philippines’ right imposed on quantitative restrictions by way of import permits/import quotas in importation of rice.” However, this treatment “expired on June 30, 2012.”
The critical question is whether this treatment has indeed expired or not. In the court order, the following was recorded:
Court: But you acknowledge… that the right of the NFA to issue permit already expired based on the records?
NFA lawyer: Well, based on the records shown by the plaintiff in his complaint, your honor. We have also read it in the paper, your honor, that it has expired but there was no… (interrupted).
Court: No extension of their right to…
Analysis
Assuming the NFA lawyer was not quoted out of context, it is extremely disappointing that what he knows is only from “the papers.” In addition, he said he had no legal opinion at the time of the hearing.
From another perspective, the plaintiff’s lawyer is mistaken when he says that the only interest of BOC is revenue collection. The four other elements of the BOC mission, as stated in the BOC website (www.customs.gov.ph), are: “To provide quality service to stakeholders with professionalism and integrity; to facilitate trade in a secured manner; to effectively curb smuggling; and to be compliant to international best practices and standards”.
To collect revenue in violation of the law is to violate the four other BOC mission elements. The court order releasing the allegedly smuggled rice appears logical. But the premise of no more required import permits is contradicted by interviews I conducted with senior DA and NFA officials.
As a current member of the International Trade Committee of the public-private sector National Agriculture and Fisheries Council (NAFC) and as a former vice president for Asia of the United Nations Council for Trade and Development (UNCTAD), I can confidently say that the DA and NFA position that there are still quantitative restrictions is valid. It is unfortunate that the NFA lawyer did not argue this case with the necessary facts.
If no strong case for reconsideration is given and the rice shipment is released, it will signal the similar releases of all the other apprehended rice shipments that arrived after June 30, 2012. This is ironic, since it is only lately that we have seen successes in confiscating smuggled rice.
Next move
We commend the many successes of the newly-reformed BOC under the supervision of Finance Secretary Cesar Purisima. But the mistaken release of this landmark rice shipment may reverse the increasing confidence farmers and fisherfolk have in the government’s efforts to protect their livelihoods from smuggling. If the alleged Napoles scam is a setback to inclusive growth of P10 billion in 10 years, the smuggling scam quantified by PNoy in his Sona address of P200 billion in one year is 200 times worse.
The BOC must move swiftly with help from the DA and NFA with a strong case for reconsideration to prevent this rice shipment release. This is necessary if the BOC is to fulfill the four other elements in its stated mission. Only then can the BOC exercise properly its important role in inclusive growth, especially as it relates to the small farmers and fisherfolk who are the perennial victims of smuggling.
(The author is chair of Agriwatch, former Secretary for Presidential Flagship Programs and Projects, and former Undersecretary for Agriculture, Trade and Industry. For inquiries and suggestions, e-mail agriwatch_phil@yahoo.com or telefax (02) 8522112).
source: Philippine Daily Inquirer
President Aquino wants our impressive growth to be more inclusive. The trickle down approach benefiting the poor in the long run is not good enough.
The rural sector, composed mostly of farmers and fisherfolk, is both the largest and the poorest. Their situation has not kept pace with our economic growth. For those victimized by smuggling, their situation has become even worse.
This is actually the opposite of inclusive growth. An example of smuggling’s curse is that 20 percent of our small backyard hog raisers lost their livelihoods over a two-year period according to the Department of Agriculture’s Bureau of Agricultural Statistics.
Landmark case
Today, there is a landmark case on rice smuggling that deserves immediate attention. This is the Dec. 13, 2013 order of Judge Emmanuel Carpio of the Regional Trial Court in Davao City.
A large shipment of rice without the necessary import permit from the National Food Authority (NFA) was recently seized in Davao by the Bureau of Customs (BOC). The plaintiff argued that no smuggling occurred because NFA import permits were no longer required to import rice.
In the court order, Judge Carpio stated: “The plaintiff has the right to cause the release of the rice shipments and take possession and custody thereof…It is clear that WTO special treatment for rice was the only source of the Philippines’ right imposed on quantitative restrictions by way of import permits/import quotas in importation of rice.” However, this treatment “expired on June 30, 2012.”
The critical question is whether this treatment has indeed expired or not. In the court order, the following was recorded:
Court: But you acknowledge… that the right of the NFA to issue permit already expired based on the records?
NFA lawyer: Well, based on the records shown by the plaintiff in his complaint, your honor. We have also read it in the paper, your honor, that it has expired but there was no… (interrupted).
Court: No extension of their right to…
NFA
lawyer: That is what is stated in the papers, your honor. But there is
no exact legal opinion on that, your honor. We are waiting actually for a
legal opinion from our Manila office, your honor.
Plaintiff’s lawyer: Anyway, the government
will not be prejudiced, your honor, because the interest of the BOC is
only the payment of taxes, your honor, duties and tariff.
Analysis
Assuming the NFA lawyer was not quoted out of context, it is extremely disappointing that what he knows is only from “the papers.” In addition, he said he had no legal opinion at the time of the hearing.
From another perspective, the plaintiff’s lawyer is mistaken when he says that the only interest of BOC is revenue collection. The four other elements of the BOC mission, as stated in the BOC website (www.customs.gov.ph), are: “To provide quality service to stakeholders with professionalism and integrity; to facilitate trade in a secured manner; to effectively curb smuggling; and to be compliant to international best practices and standards”.
To collect revenue in violation of the law is to violate the four other BOC mission elements. The court order releasing the allegedly smuggled rice appears logical. But the premise of no more required import permits is contradicted by interviews I conducted with senior DA and NFA officials.
As a current member of the International Trade Committee of the public-private sector National Agriculture and Fisheries Council (NAFC) and as a former vice president for Asia of the United Nations Council for Trade and Development (UNCTAD), I can confidently say that the DA and NFA position that there are still quantitative restrictions is valid. It is unfortunate that the NFA lawyer did not argue this case with the necessary facts.
If no strong case for reconsideration is given and the rice shipment is released, it will signal the similar releases of all the other apprehended rice shipments that arrived after June 30, 2012. This is ironic, since it is only lately that we have seen successes in confiscating smuggled rice.
Next move
We commend the many successes of the newly-reformed BOC under the supervision of Finance Secretary Cesar Purisima. But the mistaken release of this landmark rice shipment may reverse the increasing confidence farmers and fisherfolk have in the government’s efforts to protect their livelihoods from smuggling. If the alleged Napoles scam is a setback to inclusive growth of P10 billion in 10 years, the smuggling scam quantified by PNoy in his Sona address of P200 billion in one year is 200 times worse.
The BOC must move swiftly with help from the DA and NFA with a strong case for reconsideration to prevent this rice shipment release. This is necessary if the BOC is to fulfill the four other elements in its stated mission. Only then can the BOC exercise properly its important role in inclusive growth, especially as it relates to the small farmers and fisherfolk who are the perennial victims of smuggling.
(The author is chair of Agriwatch, former Secretary for Presidential Flagship Programs and Projects, and former Undersecretary for Agriculture, Trade and Industry. For inquiries and suggestions, e-mail agriwatch_phil@yahoo.com or telefax (02) 8522112).
source: Philippine Daily Inquirer
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