Foreign funds return to PH

Elaine Ramos Alanguilan, Bloomberg
Manila Standard
http://www.manilastandardtoday.com/insideBusiness.htm?f=2011/april/5/business1.isx&d=2011/april/5

Foreign investors are swarming the country’s financial markets, boosting the stock exchange index to a three-month high and pushing down the yields in Monday’s auction of Treasury bills.

The peso rose to 43.31 against the US dollar from 43.36 Friday while other Asian currencies also climbed on speculation overseas investors are adding to holdings of the region’s assets to take advantage of the economic growth outlook.

Tenders in Monday’s Treasury bill auction hit P31.l76 billion, prompting the government to increase its offering to P9.6 billion after yields across all tenors fell.

“Risk appetite is improving,” said Shigehisa Shiroki, chief trader on the Asian and emerging-markets team at Mizuho Corporate Bank Ltd. in Tokyo. “When stock market performances are solid, the money tends to flow into emerging markets.”

Developing-nation equity funds attracted inflows of $2.6 billion in the week to March 30, the most since the period ended Jan. 5, according to EPFR Global data. Emerging-market bond funds had inflows of $2.3 billion in the first quarter, down from $11.5 billion a year earlier.

The benchmark 91-day Treasury bill in the Philippines fetched 0.9 percent, 22.5 basis points lower than the previous average 1.125 percent.

National Treasurer Roberto Tan told reporters following the auction that lingering worries of an inflationary buildup due to rising oil and food prices had also prompted the market to go for short-dated debt, pushing rates lower across the board.

“There’s strong demand for shorter-term placements. There are still some expectations on inflation. These create uncertainties [in the market]. Therefore, they would like to park in short-term investments,” said Tan.

Inflation in the Philippines accelerated to 4.3 percent in February from just 3.6 percent in January.

The Bangko Sentral expects inflation in March to range between 4 and 5 percent. Market consensus places the March inflation around 4.5 to 4.6 percent.

The 182-day T-bill rate averaged at 1.205 percent, down 54.8 basis points from 1.753 percent, while the one-year debt paper settled at 2.191 percent, 67.4 basis points off the previous rate of 2.865 percent.

The United States and population control

Emil Jurado
TO THE POINT
http://www.manilastandardtoday.com/insideOpinion.htm?f=2011/april/5/emiljurado.isx&d=2011/april/5

Reports have it that both the United States and the United Nations are endorsing the reproductive health bill. There will be a plenary debate on the measure come May 9 upon the resumption of session.

But of course. The US and the UN are all for population control.

Let’s rewind a bit to see how involved the US really is on population control. In December 1974, shortly after the first major international conference was held under UN auspices in Bucharest, Romania, several of the major US government agencies—the Central Intelligence Agency, the State Department and the Agency for International Development)—submitted their inputs.

Their contributions were combined into one report entitled “Implications of Worldwide Population Growth on US Security and Overseas Interests.” The final study was more than 200 pages long.

That crucial document became what is known as NSSM 200. It stands for National Security Study Memorandum and the number 200 identified the order in which it was produced.

Records show that the original request for a review of overseas population policies is also called NSSM 200, and was written April 27, 1974 by former Secretary of State Henry Kissinger. The actual study which covered 229 pages of text represents one stage of the NSSM 200 correspondence series, and was submitted on December 10, 1974. It became the official guide to foreign policy November 26, 1976, when a National Security Decision Memorandum (NSDM 314) was signed. It endorsed the findings of the study.

Who actually was responsible for the study? NSSM was compiled by the National Security Council, which is the highest level of command in the US government. The NSC is headed by no less than the US President and his designated Security Advisor, and its purpose is to coordinate the overseas operations of all executive branches of the US government.

Now, read this: Specifically, NSSM 200 targets 13 countries of “special US political and strategic interest,” which include India, Brazil, Egypt, Nigeria, Indonesia, the Philippines, Bangladesh, Pakistan, Mexico, Thailand, Turkey, Ethiopia and Columbia. Why? I will come to that later.

***

The question is whether or not NSSM 200 is still in force. Records show that it still is, technically. It remains the official paper on population until it is replaced by another of equal importance. However, the implementation of the guidelines may differ from one administration to another.

Former President Jimmy Carter, for example, showed considerably less interest in curbing population growth than did his predecessors, former US President Richard Nixon and Gerald Ford. The Reagan administration took a somewhat different approach (i.e. the Mexico City policy that banned direct US financing for abortions). Records also show that funds for population control increased rapidly and dramatically during the Reagan and Bush years, but this did not necessarily indicate a new NSC direction.

Why was the NSSM 200 only discovered in 1990? This is a highly classified document, which the public—much less the people of the developing countries affected—should not know about. But in the mid-1990s, there was a schedule for declassifying secret documents. The document was not actually made public until almost a year later, when it was given to the US National Archives in response to a request from an American journalist working for the Information Project for Africa.

The reason reportedly for the document’s declassification is first, by 1990 at least, many of study’s recommendations for population control on aid-receiving countries had been achieved; and second, records also showed that the US had elected George Bush, a former CIA director, in 1988, which may have signaled to classification review personnel that the American public had grown more tolerant to covert US activities overseas.

***

Now, we come to the reasons why the US wanted to control other countries’ population.

NSSM, according to records and studies, showed US concern for population growth in the developing world threatening US security in four basic ways. First, certain large nations stand to gain significant political power and influence as a result. Second, the US and its western allies have a vital interest in strategic materials, like mineral and ore, which have to be imported from less-developed countries like the Philippines. Third, societies with high birth rates have large numbers of young people, who are more likely than older people to challenge global power structures. And last, population growth in relatively disadvantaged countries jeopardizes US investments. Santa Banana, the bottom line is US self-interest!

The report cites Brazil that could benefit politically with population growth. Since Brazil clearly dominates the continent demographically, Brazil could outnumber US residents by the end of the century. This would give Brazil a growing power status not only in Latin America but on the world scene over the next 25 years. Nigeria, likewise with a growing population to number 135 million by the end of this century, would have political and strategic influence in Africa south of the Sahara.

How does population control help the West acquire minerals? It is said that the location of vast reserves of higher-grade ores of most minerals favors increasing dependence of all industrialized regions on imports from less-developed countries. Studies show that the real problems of mineral supplies lie, not in basic sufficiency, but, in the politico-economic issues of access, terms of exploitation and exploration and division of the benefits.

Another issue is the role of the youth. Records show that young people have historically been advocates for change and are more prone to confront imperialism. This is especially true in the Philippines with the youth now more involved in political and economic problems.

There is also the issue of US commercial investments being affected by growing birth rates overseas. The NSSM 200 document points out that the growing nations are hard put in providing their growing needs. Thus, it warns, they are likewise to make increased demands of foreign investors. Thus under such circumstances, western corporate holdings are likely to be expropriated or subjected to arbitrary intervention.

***

United States and United Nations policies repeatedly assert that birth control is necessary for development. This is also the core of the advocacy of population control through a reproductive health law. And the US and the UN do it by means of providing less-developed nations like the Philippines with grants and aids, like the involvement of the World Bank and other agencies of the United Nations in development.

For instance, the NSSM 200 document advises the US government to play an important role in establishing the United Nations Fund for Population Activities to spearhead a multilateral effort in population as a complement to the bilateral actions of USAID and other donor countries.

The document even asserts the need for mandatory programs like the appraisal of assistance to less-developed countries and their requirements.

***

Now comes the rub. The NSSM 200 document requires US diplomatic and embassy officials to be alert to opportunities to demonstrate to the leaders of less-developed countries like the Philippines on the consequences of rapid population growth. That’s basically propaganda by imperialist America.

This propaganda includes invitations to Washington extended to every leader of a less developed nation. That explains the yearly homage of every Philippine president to Washington.

Simply put, the slower the Philippine population grows, the better for Washington.

We must be blind if we don’t see through all these.

The bottom line is that the controversy over population control is not really between the anti-life advocates and the so-called Damasos of the Catholic church.

Mindanao must ‘secede’ from central govt

JOHN MANGUN
OUTSIDE THE BOX
Business Mirror
http://www.businessmirror.com.ph/home/opinion/9478-mindanao-must-secede-from-central-govt

That may seem like a provocative title for an “Outside the Box” column but it is not mine. It is the title of a column published on the Advocacy Mindanow Foundation Inc. website written by Atty. Jess G. Dureza.

If you are not familiar with Jess Dureza, let me assure you that this man is the ultimate guide to all things Mindanao, from its political landscape through Mindanao’s economy. Mr. Dureza was an appointed “presidential adviser” to both Presidents Ramos and Arroyo and was and is a crucial participant in the long ongoing peace talks between the government and the various separatist factions in Mindanao. He served as chairman of both the Mindanao Development Authority and the Mindanao Economic Development Council. A former member of Congress, Mr. Dureza understands the political process and the realities of working through that process. His grassroots economic expertise may be found in his appointment as a director of the Philippine Coconut Authority and his position as National Program director for the United Nations Development Program–ACT For Peace Program.

I know that the above paragraph sounds like a press release for Jess Dureza, but I want you to know who this man is because when someone of his qualifications and expertise talks about Mindanao, someone better listen.

Allow me to quote from Mr. Dureza’s column. “It’s about time that Mindanao must insist to charter its own course in history. Mindanao must now ‘secede’ from the central government. Lest someone accuses me of treason, let me immediately and categorically state that the ‘secession’ I am espousing for is not from the Republic but secession from the central government which is Manila. It is not to declare Mindanao independent from the Philippines, although that would have been most desirable to many. But rather, it is to effect constitutional changes so that Mindanao runs its own affairs, determines its own future, and removes itself from being under the skirt of imperial Manila. I may be oversimplifying this, but that’s what the shift to a federal system of government is all about. I have spent the best part of my life working for the national government and serving Mindanao in various capacities through different administrations. And I have closely witnessed the inutility or the tragic inability of even well-meaning leaders to give Mindanao what it rightfully deserves.

“I am convinced more than ever that Mindanao’s collective effort over these years for more attention from the central government is futile unless we radically change the setup. One of the ways of moving forward is to ‘go federal.’ I call it ‘secession in moderation.’ This way, Mindanao can run its affairs and be solely responsible for its future. If we do good, well and good. If we screw up, then it’s our own lookout.”

Those are probably the strongest and clearest words possible, written in the interest of self-determination and community responsibility.

Mr. Dureza goes on to speak of the postponement of elections in the Autonomous Region in Muslim Mindanao (ARMM), but makes a very interesting and thought-provoking analysis of the ARMM. “If this [the ARMM and ‘the struggle for deliverance from a highly centralized setup’] is, indeed, good and desirable for the Bangsa-
moro, then it must equally be good for all Mindanaoans, the non-Muslims included. So, what then is the take of the non-Bangsamoro sector of Mindanao? Otherwise stated, if the Muslims of Mindanao are struggling and fighting for self-determination, then why are the Christians and non-Muslim sectors of Mindanao not also as assertive?”

I cite Mr. Dureza’s column because of statements made by noted economist Bernardo Villegas during a recent speech before the Pampanga Chamber of Commerce and Industry where he implored for support of changes to the economic provisions of the Philippine Constitution. From the Inquirer: Villegas “disagreed with views that corruption was the reason for widespread poverty in the Philippines, insisting that the prime cause was neglect of rural and agricultural development.”

What is somewhat startling about these comments is that “rural and agricultural development” has been a cornerstone of every Philippine administration and sadly all the policies have not been successful. The one common denominator has been that the policies have ultimately been “Manila-controlled” no matter how much local input and local oversight has been in place.

At a meeting of the Davao City Chamber of Commerce and Industry Inc., Chowking’s original owner Robert Kuan said the government had no concrete plan to address the country’s problems and how to move forward. “I don’t see any direction yet,” said Kuan, who is now chairman of the St. Luke’s Medical Center. “[President Aquino] has to have a vision of what will happen to the country during his incumbency. The success of an individual or a certain company is [in] having a vision and direction.”

I personally see this, not as an indictment of the Aquino administration per se but illustrative of the time-honored concept of “Imperial Manila.”

It is important to note that virtually every study by the United Nations of rural development shows that when the policy initiatives have been conceptualized, created, planned, formulated, implemented and made responsible at the most local level, they are successful.

Look, it only makes sense. As much as I respect Jess Dureza, I do not think he is qualified and I would not want him to be a major participant in my local community’s efforts at solving our flood-control problem. We know where the water comes from, we know where it goes, and we know where we want it go. And Mr. Dureza does not want or need Manila telling Mindanao how to improve its economy and deal with its own problems.



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Philippines’ per capita income hits $2,000, finally

by Roderick T. dela Cruz
Manila Standard
http://www.manilastandardtoday.com/insideNews.htm?f=2011/april/4/news2.isx&d=2011/april/4

THE Philippines last year joined Asia’s emerging markets with an expanding middle class after it posted a per-capita gross domestic product of more than $2,000, according to economists.

That was double the country’s per capita income a decade ago, although it remains one of the smallest in Southeast Asia.

Per-capita income rose after the country’s gross domestic product grew 7.3 percent in 2010 while the peso appreciated by about 5 percent against the dollar during the same period.

Bangko Sentral Governor Amando Tetangco Jr. said last year’s GDP growth was the highest in 34 years, while inflation had been manageable.

“The 3.8 percent inflation rate for 2010, together with the fastest economic growth rate registered in decades, put our country in what some analysts have described as, the Goldilocks world, where everything is just right,” Tetangco said.

Bank of the Philippines Islands president Aurelio Montinola III said the $2,000 per-capita threshold was crucial for any developing economy. Reaching it marked a turning point for countries such as Thailand in growing their consumer market with a capacity to buy cars and houses.

Montinola, who is also president of the Bankers Association of the Philippines, confirmed that “2010 proved to be a good year for the banking industry and for BPI in particular.”

But former Economic Planning Secretary Cielito Habito said the Philippines’ per capita income, which used to be bigger than Thailand’s in the 1970s, was now just a third that of Thailand’s.

Just the same, banks were excited about the rising per capita income in the Philippines, which helped them grow their profit by a third last year.

Vehicle sales tripled last year, while property developers built thousands of new residential units because of the increasing demand from the new middle class—the Filipinos working abroad, business process outsourcing professionals, and the college-educated new entrants to the labor force.

The National Statistical Coordination Board placed the per capita gross domestic product of the Philippines in 2010 at P90,552 at current prices, while the Bangko Sentral said the peso averaged 45.1097 against the US dollar.

That translated to a nominal per capita GDP of $2,007.37 in the Philippines in 2010, which compares with less than $1,000 in 2000.

About 94 million Filipinos contributed to a total of P8.513 trillion GDP and P9.75 trillion GNP last year.

Per capita GDP was estimated at only $1,748 in 2009, or P83,261 using an average exchange rate of 47.637 to the dollar.

Per capita gross national product, which includes income from abroad, actually began exceeding the $2,000 mark in 2009, when it hit $2,005. That was based on a per capita GNP of P95,525 in peso terms, and computed at an average exchange rate of P47.637 to the dollar.

Per capita GNP climbed to $2,299.08 in 2010 based on an estimated per capita GNP of P103,711 in peso terms, and an average exchange rate of P45.1097 to the dollar.

Economic Planning Secretary Cayetano Paderanga said the government was committed to growing the economy by 7 to 8 percent annually over the next six years, although he refused to predict the peso’s direction against the US dollar.

Convergys to open 4th facility in Cebu City

Manila Bulletin
http://www.mb.com.ph/articles/312596/convergys-open-4th-facility-cebu-city

MANILA, Philippines – Convergys Corporation, the largest private employer in the Philippines, announced that it would expand again, with a fourth state-of-the-art facility in Cebu City. The announcement comes just weeks after Convergys revealed it has a new contact center currently under construction in the country’s summer capital, Baguio City.

Located in the Asiatown IT Park, the new facility being announced today is at the TGU Tower. Once the Convergys site is operational, the company will operate 15 facilities throughout the country – eight in Metro Manila, four in Cebu City, and one each in Bacolod City, Santa Rosa, Laguna, and Baguio City.

“The largest BPO provider in Cebu City and in the Philippines is getting even bigger,” said Marife Zamora, Philippines Country Manager and Managing Director, Asia Pac/EMEA for Convergys. “Our continued growth is due to the extraordinary support provided by our employees in Cebu and throughout the Philippines to our major international clients. This type of unrivaled service is why our clients continue to specifically request the Philippines as the location for their critical customer support operations and why we continue to meet and exceed our client's expectations every day.”

Convergys employees in the Philippines receive hundreds of thousands of customer service calls each day on behalf of global clients representing a wide variety of industries, including financial services, telecommunications, retail, e-Commerce, direct response, and health care.

Since beginning operations in the country in 2003, Convergys in the Philippines has been honored many times for its customer service excellence, its talented employees, its expertise, and its leadership.

Last year, Convergys won the ”BPO Company of the Year” award at the International ICT Awards and was also inducted into the Philippine Economic Zone Authority Hall of Fame after winning both the Outstanding Employer and Outstanding Exporter three times in each category.

Convergys believes in investing in the development of its people. Rather than have one set path, Convergys has a variety of career tracks for employees to explore. Having a talented, motivated workforce maximizes Convergys’ productivity and enhances the quality of service we offer all of our clients and their customers. This is another way Convergys ensures its spot as a global leader in relationship management.

As the largest private employer in the Philippines, Convergys continues to hire as new work continues flowing into the country.