The Federalist appeal

May 1, 2008 by mlq3  
Filed under Daily Dose

Did you know that May is Anti-Graft and Corruption Awareness Month? Information is a good tool for ferreting out graft and corruption, and a Freedom of Information Act will be a step in the right direction. As Uniffors puts it, with the proposed bill being sponsored on the floor of the House, Cockroaches placed on notice.

food.jpg

My Arab News column for the week’s Cooperation in the Wake of Rice Panic. (and recently, it was Canada’s turn: Food-buying panic hits Canadian stores). The column refers to the chart above, distributed in a recent newsletter of Nouriel Roubini. As it is, Rice prices may fall by 50% by yearend–economists. But for now, it’s belt-tightening all around, as The Unlawyer, who is visiting Singapore, noticed.

My entry yesterday focused on the effect on prices of the government’s rice purchases; today’s news has OPEC-style rice cartel up. Interesting information also in Why rice prices surging to record highs. (export curbs; building up national rice stocks; falling world inventories; speculation; changes in land use; and growing population being the main causes).

Incidentally, three articles by Cielito Habito I haven’t linked to, yet: Is there a rice shortage? and (Mis)targeting the poor and Food, fuel and finance . The middle column is particularly relevant because of the question of mapping the poor:

During the Ramos administration, targeting was done by focusing government assistance on the 20 poorest provinces, defined as the provinces with the highest percentage incidences of poverty. It was soon realized, however, that only 11 percent of all poor Filipinos were in those provinces, many of which were smaller ones. Thus, even if all the poor in those provinces were lifted out of poverty, it would make a small dent on national poverty levels. The targeting scheme was thus refined to focus on the 5th and 6th class municipalities, on the premise that the poor can be found in the poor municipalities. We know, of course, that not all people in such municipalities are poor, and even 1st class municipalities have many poor dwellers.

The Estrada administration took a different approach: government sought to focus assistance to the 100 poorest families in each province and city, with the local governments tasked to identify them. With little data on which to base the selection, it took two years for the LGUs to finally come up with their lists; by then, a new administration had taken over.

The Arroyo administration took yet another approach to targeting, as exemplified in its Food-for-School and Tindahan Natin Programs (FSP and TNP respectively). Government has devised a Food Insecurity and Vulnerability Information Mapping System (FIVIMS) that identifies very, very vulnerable (VVV), very vulnerable (VV) and vulnerable (V) LGUs. All 17 towns and cities in Metro Manila are included as target areas regardless of vulnerability level, for clearly political reasons. For FSP, all VVV municipalities are also automatically included, along with the poorest municipalities in VV and V provinces. For TNP, locations of stores were based on a rapid poverty mapping done by DSWD, focused on prevalence of malnutrition and lack of rice supply.

Unfortunately, our track record at targeting the poor has been downright dismal. Studies by Dr. Rosario Manasan and by Dr. Celia Reyes of the Philippine Institute for Development Studies (PIDS) have measured leakage rates (percentage of non-poor beneficiaries) and undercoverage rates (percentage of the poor who do not benefit) of the above targeting mechanisms. Results show that more than half of the recipients of the targeted assistance are actually non-poor, with leakage rates of 62 percent for FSP and 66 percent for TNP. Undercoverage of FSP was estimated at 80 percent, i.e. only one-fifth of total target beneficiaries are assisted by the program.

Interestingly, Metro Manila accounts for the bulk (71 percent) of the leakages in FSP. Similarly, the leakage rate for TNP declines from 66 to 59 percent if Metro Manila stores are not counted. Substantial leakages in targeted assistance is the price government has been paying for buying political support from the more visible and more vocal constituencies in Metro Manila through their indiscriminate inclusion in targeted assistance programs.

Vulnerability, incidentally, seemed a very good criteria, it’s a concept that’s been adopted by the International Red Cross, for example: Red Cross efforts are supposed to focus on vulnerable populations and individuals, not just in times of disaster, but in general.

The failure of the various government programs to target the poor, however, boggles the mind, in that it shows how trying to take a scientific approach can easily be subverted by human behavior -or “gaming the system” as it’s been called.

The Mount Balutacan Monitor points to a report that the provincial government in Misamis Oriental is in shock because a massive shipyard project has croaked.

My column for today is Senate swindled?

The thing is, I’ve only encountered the Pimentel resolution in bits and pieces online. It’s not on the Senate site. It’s not in the news sites. So a thorough review of what the bill contains is impossible.

For background see Federalism gets majority backing in Senate and 16 senators now back Pimentel’s shift to federalism. Background in Newsbreak’s In a surprise move, senators give qualified yes to charter debate. which also gives a digest of the Senate’s proposed changes to the Constitution:

The resolution will require the revision of 14 of the existing 18 Articles of the Constitution and the addition of two new articles. It seeks to adopt a federal presidential bicameral form of government.

Specifically, it calls for the creation of 11 federal states out of the existing political subdivisions of the country and one federal administration region.

It seeks the transfer of the legislative department to the proposed Federal State of Central Visayas, the judicial department to the Federal State of Northern Luzon while maintaining the executive department in the proposed Federal Administrative Region of Metro Manila…

…Other major proposals: the election of senators based on states; the election of senators representing overseas voters; the election of the president and the vice-president as a team; the abolition of the Judicial and Bar Council which screens nominees to the judiciary etc.

Blog @ AWBHoldings.com asks who is afraid of Federalism, and engages in counting potential votes (and potential opportunities for double-crosses in the voting), and he points to the whole subject of constitutional amendments being viewed as a Trojan horse.

Who else is critical of Federalism? Senator Arroyo is against it, and his argument is one shared by quite a few people, too: Federalism to create ‘11 little fiefdoms, 11 little kings’.

For the thinking behind Pimentel’s proposal, blogger reytrillana reproduces a recent speech in which Pimentel explains why he supports Federalism. Blogger A Simple Life supports a serious examination of Federalism but thinks the current proposal provides for too many states:

One thing of concern though, is that 11 states plus one administrative region I think, is just a bit too many. Seven (7) states and an administrative region would be better, i.e., feasible and sustainable:

1. Northern Luzon (Ilocos, CAR, Cagayan Valley, Central Luzon)

2. Southern Luzon (CALABARZON, Mindoro, Marinduque, Bicol)

3. Western Visayas (Western Visayas, Romblon, Palawan)

4. Eastern Visayas (Central Visayas, Eastern Visayas)

5. Northern Mindanao (Western Mindanao, Northern Mindanao, CARAGA)

6. Southern Mindanao (Davao Region, SOCCSKSARGEN)

7. Bangsamoro (ARMM)

8. Federal Administrative Region (NCR)

One stumbling block is the rhetorical attraction (rhetorical, because not precisely factual, as Torn and Frayed has argued; one thing a Federal system does not abolish is a national capital; and one thing Federalism does not remove, is the need for, or authority, of a national government) of being freed of “Imperial Manila” while getting the nagging feeling, on the other hand, that this might be a license not for regional growth, but regional chaos.

That Federalism will only balkanize the country is is indeed a cause for worry; see Francis Fukuyama (China’s powerful weakness: Beijing’s reach isn’t big enough to stop local governments from abusing the rights of ordinary citizens) writing in the Los Angeles Times, on how even strong, unitary states are concerned over the periphery ending up lawless regions.

On a related note, Ian Baruma, in The Last of the Tibetans, takes a look at Tibet and wonders if the Tibetans aren’t going to end up like the American Indians:

The Chinese have much to answer for, but the fate of Tibet is not just a matter of semi-colonial oppression. It is often forgotten that many Tibetans, especially educated people in the larger towns, were so keen to modernize their society in the mid-twentieth century that they saw the Chinese Communists as allies against rule by holy monks and serf-owning landlords. In the early 1950’s, the young Dalai Lama himself was impressed by Chinese reforms and wrote poems praising Chairman Mao.

Alas, instead of reforming Tibetan society and culture, the Chinese Communists ended up wrecking it. Religion was crushed in the name of official Marxist atheism. Monasteries and temples were destroyed during the Cultural Revolution (often with the help of Tibetan Red Guards). Nomads were forced to live in ugly concrete settlements. Tibetan arts were frozen into folkloric emblems of an officially promoted “minority culture.” And the Dalai Lama and his entourage were forced to flee to India.

None of this was peculiar to Tibet. The wrecking of tradition and forced cultural regimentation took place everywhere in China. In some respects, the Tibetans were treated less ruthlessly than the majority of Chinese. Nor was the challenge to Tibetan uniqueness typical of the Communists. General Chiang Kai-shek declared in 1946 that the Tibetans were Chinese, and he certainly would not have granted them independence if his Nationalists had won the civil war.

If Tibetan Buddhism was severely damaged, Chinese Communism has barely survived the ravages of the twentieth century, either. But capitalist development has been even more devastating to Tibetan tradition. Like many modern imperialist powers, China claims legitimacy for its policies by pointing to their material benefits. After decades of destruction and neglect, Tibet has benefited from enormous amounts of Chinese money and energy to modernize the country. The Tibetans cannot complain that they have been left behind in China’s transformation from a Third World wreck to a marvel of supercharged urban development.

But the price in Tibet has been higher than elsewhere. Regional identity, cultural diversity, and traditional arts and customs have been buried under concrete, steel, and glass all over China. And all Chinese are gasping in the same polluted air. But at least the Han Chinese can feel pride in the revival of their national fortunes. They can bask in the resurgence of Chinese power and material wealth. The Tibetans, by contrast, can share this feeling only to the extent that they become fully Chinese. If not, they can only lament the loss of their own identity.

The Chinese have exported their version of modern development to Tibet not only in terms of architecture and infrastructure, but also people – wave after wave of them: businessmen from Sichuan, prostitutes from Hunan, technocrats from Beijing, party officials from Shanghai, and shopkeepers from Yunnan. The majority of Lhasa’s population today is no longer Tibetan. Most people in rural areas are Tibetan, but their way of life is not likely to survive Chinese modernization any more than the Apaches’ way of life survived in the United States.

Since Chinese is the language of instruction at Tibetan schools and universities, anyone who wishes to be more than a poor peasant, beggar, or seller of trinkets must conform to Chinese norms, that is, become Chinese. Even Tibetan intellectuals who want to study their own classical literature must do so in Chinese translation. Meanwhile, Chinese and other foreign tourists dress up in traditional Tibetan dress to have their souvenir pictures taken in front of the Dalai Lama’s old palace.

Baruma’s article, while focusing on Tibet, basically lists the grievances and concerns that have convinced some people to advocate Federalism.

In Federalism Today, which dates back to 2002, Ronald Watts tackled the question: why the Federal appeal?

To what can this increased interest in federalism be attributed? One major factor has been the recognition that an increasingly global economy has unleashed centrifugal economic political forces weakening the traditional nation-state and strengthening both international and local pressures. As a result national governments are faced increasingly with the desires of their populaces to be both global consumers and local self-governing citizens at the same time. Thus, the nation state is at the same time proving both too small and too large to serve the desires of its citizens.

These developments have contributed to the current interest in federalism, not as an ideology, but in terms of practical questions about how to organize the sharing and distribution of political powers in a way that will enable the common needs of people to be achieved while accommodating the diversity of their circumstances and preferences.

The lessons proposed are interesting, too:

Experience since 1945 has taught us three major lessons. First, federal political systems do provide a practical way of combining, through representative institutions, the benefits of unity and diversity, but they are no panacea for all of humanity’s political ills. Second, the degree to which a federal political system can be effective will depend upon the extent to which there is acceptance of the need to respect constitutional norms and structures and upon an emphasis on the spirit of tolerance and compromise. Third, effectiveness also depends upon whether the particular form or variant of federal system that is adopted or evolved gives adequate expression to the demands and requirements of the particular society in question.

It seems to me many interested in Federalism like it because Federalism is a Solution to Resolve Ethnic Conflict, as Ellis Katz suggests. On the other hand, there’s Federalism as a means to more equitably distribute national resources. See the abstract of Fiscal Federalism and National Unity.

In particular, Spain seems to be a model for approaching Federalism from the point of view of finance, see Fiscal federalism and regional integration: lessons from Spain and the more complex Public Spending and Fiscal Federalism in Spain. Period 1984-1998. Spanish concerns over Federalism are reported by Giles Tremlett in a 2005 article. Spain is an interesting example because of the difficulties the Spaniards faced after the demise of Generalissimo Franco: how do you turn a feudal society into a functioning, modern democracy? See Federalism and the State of the Autonomies in Spain:

After 39 years of dictatorship (1936-1975), the death of General Franco offered Spain an immense opportunity to rebuild its institutions and create a system of government where the diversity of cultures was not an impediment to the reintroduction of democracy. It is with the Constitution of 1978 that this country ended the ancient discussion about the form of State that would better ensure governance and opened the path to the creation of the State of the Autonomies.

Incidentally, if anyone can help me get a copy of Democracy and Federalism in Spain (see this abstract, too). as well as Mexican Federalism Revisited, and Federalism and Caudillismo in the Mexican Revolution: The Genesis of the Oaxaca Sovereignty Movement (1915-20), I’d highly appreciate it.

Mon Casiple simply thinks the Senate proposal is a gambit to derail a Palace initiative -and that the gambit’s worked.

Meanwhile, my column also looks at the President’s plans to overhaul her cabinet; RG Cruz says the President’s become rather flirtatious about the whole thing. Mad Miriam weighs in, too: New Cabinet to be 2010 admin senatorial slate–Sen Santiago. The scuttlebutt for some time now has focused those waiting in the wings for appointments – includingRalph Recto, Tessie Aquino-Oreta (said to have already completed her Department of Education lineup of appointments) and Vicente Sotto III.

In the blogosphere, on an overseas political note, BuzzMachine looks at Democrats engaged in a schism in a top American political blog. In Malaysia, as you know Jeff Ooi is the first Malaysian blogger (Screenshots) to become an MP. He takes a frustrated -but highly humorous- look at parliamentary procedure in Speaker (Sabah): ‘No supplementary questions during Q&A today’.

And on a cultural note, see Why I Gave Up Blogs To Read More Books by Coconut Headsets.

And listmania! An ongoing list-making process has missingpoints weighs in with his votes for The Top 100 Public Intellectuals , but has a bone to pick with whoever put Al Gore on the list:

Meanwhile, Al Gore needs to be off the list. He is a politician and a popularizer of a cause but it isn’t his ideas being discussed. Being a public intellectual means having thoughts that are original enough to influence lesser people’s thoughts. If agreeing with experts and promoting their ideas is public intellectualism, half the people with blogs can qualify.

Indeed, there is The dilemma of defining a Public Intellectual as blogger gov4sale dissects the question,

The best example comes from Alan Lightman in his article “The role of public intellectuals”

Lightman bring the example of Ralph Waldo Emerson and his essay “The American Scholar” in this essay Emerson describes the meaning and the function of the intellectual.

In this essay Emerson describes the intellectual as “preserves great idea of the past communicates them and creates new ideas. The intellectual does all of these things not out of obligation to his society, but out of obligation to himself.”

The idea of the intellectual that is described by Emerson feels more of a noble idea, but a very true one, what Emerson describe as an intellectual is by far the most tangible idea ever.

To add to the above notion but with a more political character Edward Said describes “the intellectual’s mission in life is to advance human freedom and knowledge, this often means standing outside of society and its institutions and actively disturbing the status quo.”

With these two ideas combine together we draw a very distinct picture of what a public intellectual is, although some may disagree with this idea.

Lightman also bring a hierarchy of levels of public intellectuals

-level one: speaking and writing for the public exclusively about his/her discipline, example Brian Green’s book The Elegant Universe.

-level two: speaking and writing about his/her discipline and how it relates to the social, cultural, and political world around it, example James Watson’s the Double Helix.

-Level three: by invitation only. The intellectual has become elevated to a symbol, a person that stands for something far larger than the discipline from which he or she originated. According to Lightman these intellectuals is asked to write and speak about a large range of public issues. Example Einstein was asked to give public addresses on religion, education, ethics and world politics.

The Daily Telegraph unveils The 50 most influential US political pundits. The Debatable Land starts a survey on American Presidents: who are the most over-rated and the most under-rated? (On a personal note, can anyone help me turn this, into something more like this, without breaking the bank?)

We like lists because we instinctively want to classify everything see how Time Magazine did so in this year’s The World’s Most Influential People. But after that, we want to rank things. With regards to the Time 100, Joel Stein threw caution to the winds to try to cobble together a formula: then someone said he should refine it, which he did.

For The Top 10 Emerging Influential Blogs in 2008, a thorough effort to define criteria’s been undertaken by Can Talk Tech but what is a solid criteria for him may differ from the way other people approach the same task.

Let me weigh in with my list. Let me begin with a caveat: there are quite a few blogs I’ve added to my reading list over the past year, but they’re not new enough (cut-off is a blog birthday after July 1, 2007) to qualify for the list. These blogs are in no particular order. They represent my biases as to what I consider significant and these choices aren’t necessarily endorsements of these blogs, their advocacies, etc. Though for many of these blogs, I do heartily sympathize with them, which is why I follow them -but not all.

Update, July 30, 2010. I have changed some of my nominations, my final list is as follows:

1. Writer’s Block which is a fine example of intellectual efforts by a writer online.

2. The Mount Balatucan Monitor one of the regional blogs that makes inter-regional cross-pollination possible.

3.Since scaRRed_cat seems no longer updated, and though a good example of a veteran journalist trying to adapt to sharing articles online, I’ve decided to nominate fritzified.com instead. A wholesome combination of lifestyle, food, gadgetry, even fashion, but written from an intelligent point of view and not just flashy superficiality.

4. Mon Casiple’s Weblog on Philippine Politics. The finest example of an old school pundit settling in on the interweb.

5. I’d previously nominated Brian Gorrell’s The Not So Talented Mr. Montano? If Malou Fernandez was the Affair of the Diamond Necklace (complete with a mystery: she flew coach), then the birth of this blog was the Bastille moment of the Philippine blogosphere. His recent decision to start outing people, though, is reprehensible. His other motives and postings can be debated but his outing people, well, I don’t know. For that reason, I nominate At Midfield, instead. Ging Gagelonia is a journalist who broke new ground through his reportage and commentary in the blogosphere on the Sulpicio lines sinking.

6. New Philippine Revolution, an intriguing blog and one that I think has a covert following among the politically-inclined. Also, an example of how anonymous blogging can be effective.

7. Vera Files. Had a discussion on Twitter if this counts as a blog or not, but Juned Sonido opined it does. If so, it marks the emergence of what could comprise the Big Three in independent journalism online.

8. Ateneans ACT, which became a forum for advocacy and debate among the alumni of one school, and which served as a model for advocacy and inter-generational debate, lost its steam. While this site marks the evolution and, to my mind, coming of age of the political advocacy blog, I have decided to nominate stuart-santiago instead. Seems to me male bloggers still dominate and hers is a voice of rationality and questioning that bears following.

9. Team RP, particularly because it’s on Multiply and there seems to be a lingering bias of sorts I can’t quite pin down, but it seems to be there, against Multiply/Friendster etc. blogs. This blog is significant because it’s wedded to an advocacy site, and it’s an advocacy led by, and targeted at, the youth, which conventional wisdom tagged as apathetic -but who proved the pundits wrong after NBN-ZTE broke. The kids were just waiting for an issue that really engrossed them.

10. I’m not sure if FilipinoVoices.com counts, because it’s composed of veteran bloggers and commenters, but, well, it’s new and is making ripples, if not waves.

You may be interested to read the choices of Filipinayzd, atheista (campaigning, actually, for Visit Sagada), Viloria.net, SELaplana, My First One Million Pesos, and Mapiles.com, Tingog.com and Shari.

Elsewhere in blogolandia, The Journal of the Jester-in-Exile takes a look at the hostility and patronizing attitude he believes afflicts many journalists; a relevant reading’s John Nery’s Barbarians at the gates? And see The Race: Newspapers have a bright future as print-digital hybrids after all — but they’d better hurry, in the Columbia Journalism Review (thanks to Hector Bryant Macayle for the link). The Marocharim Experiment has a thought-provoking entry on media-blogger issues.

Hiraya: Endless Journey takes a meta-look at blogging.

Adel Tamano takes up blogging at The Opposite of Apathy.

Comments

160 Comments on "The Federalist appeal"

  1. UP n student on Thu, 1st May 2008 12:58 pm 

    Cielito Habito writes : “Substantial leakages in targeted assistance is the price government has been paying for buying political support from the more visible and more vocal constituencies in Metro Manila through their indiscriminate inclusion in targeted assistance programs.”

    And Malacanang residents will remain inclined to perpetrate the leakages that favor the metro-Manila area because of the Damocles sword — surges against Malacanang gates.

  2. Sef on Thu, 1st May 2008 1:03 pm 

    I do not subscribe to the idea that government should target the poor. Our politicians have been doing that since long ago yet the poor gets even poorer.

    I suggest everyone stop using the poor (as a dramatic backdraft to some sort of political agenda) and focus on the basic needs of “everybody”. Education, Healthcare and National Security affect everyone. Government is for “everybody” and not just for the poor. Doing so will also benefit the poor.

  3. BrianB on Thu, 1st May 2008 1:33 pm 

    Federalism

    Idiotic. Manolo, ask a Federalist whether his desire is merely for fiscal independence of the states. He will say no. Besides the economic, moral and cultural reasons should also be considered. Jesus Christ, for the common tao this is the only consideration. Just because the masses can parrot the rationale of their leaders do not mean they truly understand it. Most people will see this as a cultural separation from the influence of Cosmo Manille (to use the favorite term of one columnist named Maurice).

  4. BrianB on Thu, 1st May 2008 1:35 pm 

    I’m not using scare tactics here but it is entirely conceivable that homosexuality will be “banned” (unofficially, of course, and I bet the phrasing would be different) in some “states.” Bahala kayo dyan.

  5. BrianB on Thu, 1st May 2008 1:41 pm 

    “On a personal note, can anyone help me turn this, into something more like this, without breaking the bank?)”

    Very sophisticated site. It will cost you. esthetically, I do not recommend the change. However, I recommend this:

    http://www.theonion.com/content/index

  6. mlq3 on Thu, 1st May 2008 2:10 pm 

    sef, it’s actually getting worse. in the past the approach was work relief. but more and more, it’s dole-outs.
    i agree that a focus on jobs for those who want them, even if it’s a government relief job as a stopgap measure, is better than simply putting people on the dole.

  7. mlq3 on Thu, 1st May 2008 2:13 pm 

    brian, as i said, there’s no consensus on the subject. and after being discussed, there’s no guarantee it will receive public acceptance. there’s no demand for it at the present time except for a few who find it theoretically attractive.

  8. hvrds on Thu, 1st May 2008 3:48 pm 

    Break up the country into three or four separate countries. Each with its own authority to impose its own currency. Four separate monetary authorities also.

    Something akin to the Eurozone before they started to integrate their economy. Also similar to the confederation of the thirteen colonies wherein the 13 also had the authority over fiscal and monetary policies. Why is this necessary? The divergence in economic development. Start with the formation of a common domestic market with fiscal policy firmly in the hands of the four separate states.

    The Eurozone under the common currency agreement is under severe strain due to the great North South divide amongst their members.

    It will have to give as the weaker economies of Italy, Portugal, Spain and Greece are now struggling with the stronger Euro instead of their ability to devalue their own national currencies for trade advantages.

    “By most yardsticks, Europe’s common currency has been a success, emerging as an alternative to the fading dollar for bond dealers, central bankers, Chinese exporters, even Jay-Z, the American rapper, who put a pop-cultural imprimatur on the currency by flashing a wad of 500-euro notes in a music video.”

    “Yet fissures are forming in the European monetary union that threaten to widen in coming months.”

    “Greece, Portugal, Italy and Spain — the sun-drenched fraternity sometimes called Club Med — are struggling with eroding competitiveness, rising prices and bloated debts. Meanwhile, Germany, the sick man of Europe for most of the euro era, is suddenly vigorous again. Economically fit after years of reforms and fortified by brisk global demand for its machinery and other goods, it has fended off China to retain its status as the world’s export champion.”

    “Germany’s northern neighbors are generally doing well, too, which has rekindled talk of a north-south divide: a north that is growing decently but is concerned about inflation, and so prefers higher interest rates and is willing to live with a strong currency; a south that is worried about stagnating, and prefers lower rates and a weaker currency.”

    “When leaders and laggards use the same money but have opposite problems, tensions are bound to surface.”

    “Take Italy, perhaps Europe’s shakiest economy. Facing high labor costs, slumping exports and a gaping public debt, its old remedy for hard times would have been to devalue the lira. Now, chained to the mighty euro, it cannot do that. Instead, it will probably have to endure a recession and rising unemployment, something no politician — but especially not one just elected, like Silvio Berlusconi — wants to face.”

    “Berlusconi has already said he wants the European Central Bank to weigh more than inflation when setting monetary policy. In other words, the bank should lower interest rates, which would probably deflate the euro somewhat and make it easier for Italy to sell its wine and shoes overseas.”

    “Berlusconi has found an ally in Nicolas Sarkozy, the French president, who has tangled repeatedly with the central bank on the same issue. Sarkozy will assume the rotating presidency of the European Union in July, giving him a ready-made platform for his views.” IHT, Mark Landler

    Please note that DA Sec Art Yap would like to get ASEAN to start a startegic rice reserve system wherein countries with perennial shortages can draw from.

    However he forgets that commodites normally use a standard unit of account which is now the dollar. Apart form it being used a medium of exchange.

    The probelm beings with the actual physical logistics of actually creating the reserve which costs and the storage of it which also costs.

    Each Asean country has its own currency and it’s own fiscal and monetary fundamenls that would determine its relationship to an international medium of exchange.

    Does my favorite real estate broker Art Yap want a common market with a common currency established already in Asean to enable us to get access to rice so we don’t have to go through the hard work of producing more of our own.

    Remember this is the genuis real estate broker who wanted to lease Philippine land to the Chinese for them to grow their food.

    If cash (borrrowed) is not the problem why the need for a reserve of actual rice

  9. mlq3 on Thu, 1st May 2008 5:05 pm 

    hvrds, could you expand your critique of yap?

  10. RoelM on Thu, 1st May 2008 6:31 pm 

    Hi MLQ3,

    As far as the federalism proposal is concerned, it seems to impose a presidential form of gov’t at the state level. If ever we adopt federalism, we should allow the states the freedom to experiment with the form of gov’t. This way we can do trial and error in one particular state and later allow the rest of the country to benefit from the wisdom and experience thereby gained. We should also give the states the freedom to adopt different electoral systems (FPTP, AV, STV, party-list, etc.). Electoral systems need to be looked at too, and I believe reform in this area could help a lot with respect to overall political reform.

  11. UP n student on Thu, 1st May 2008 8:21 pm 

    hvrds: You are making too complicated the concept of a “strategic rice reserve system” for ASEAN. The differences in currencies is not an issue — all the countries can “talk” in Euros, Yens, or even the Canadian Dollar. But really — they will want to talk in terms of rice-tonnage. The imagery of digging up a mountain and filling it with rice is also nonsensical. Notice that in today’s rice crisis, there IS rice, except that the rice is poorly-distributed.
    So the “strategic rice reserve system” can be a LEGAL commitment by all the ASEAN nations to allocate an amount (tonnage) per nation to be made available to the ASEAN nation in distress. The formula to determine tonnage-to-contribute should be based on inventory-on-hand. In unlikely event that a rice-crisis happens simultaneously in all the ASEAN nations, the action is “pray-to-the-Gods” plus ask help from US-A, Australia, United Nations or even Cuba. The more likely is a transfer of tonnage from the nations with inventory to the “unlucky bastard” who ran into trouble. With the commitment in place, the logistics of moving the rice should be easy.
    (PS: The ASEAN nations can also contribute a monthly-premium which is then spent for an option to buy a million-tons of Arkansas rice to be delivered 6 months later. The option can be allowed to expire if there is a rice-glut; the options are exercised when there is a rice crisis.)

  12. UP n student on Thu, 1st May 2008 8:44 pm 

    mlq3: Univ-Philippines-Diliman and La Salle/Benilde subscribe to Project MUSE so their librarian may help you get to ‘Federalism and Caudillismo” article.

  13. UP n student on Thu, 1st May 2008 9:04 pm 

    hvrds: On the “strategic rice reserve system”… A treaty or some such legal framework provides cover to the individual governments as to why they send rice out during difficult times. This is no different than Fidel Castro explaining to Cubans why there is an American base in Guantanamo — hands are tied by legal contract.
    And the amount moved to a nation in distress can be 2-week supply only versus 100% of the amount needed.
    [I'm beginning to like more and more my "option to buy" approach. The inventory-source becomes USA during difficult times. I will do options-contracts in 100,000-tonnes increments.]

  14. leytenian on Thu, 1st May 2008 9:16 pm 

    “One thing of concern though, is that 11 states plus one administrative region I think, is just a bit too many. Seven (7) states and an administrative region would be better, i.e., feasible and sustainable:”

    yes sustainable. 7 states is better.

  15. UP n student on Thu, 1st May 2008 9:17 pm 

    Addendum: If there is an ASEAN-region crisis, then the option-to-buy is exercised by ASEAN and the moneys to buy is funded by the ASEAN-treaty nations and directed to the ASEAN-nation(s) in distress.
    If there is no ASEAN-region crisis, the option-to-buy can be allowed to expire worthless, or the options made available to the United Nations World Food Programme, or made available to any ASEAN nation (who wants to exercise the buy out of its own treasury).

  16. jakcast on Thu, 1st May 2008 9:18 pm 

    Following BrianB’s arguments, why distibute power by territory when most of conflicts are social in nature rather than geographical (except in the southwestern Mindanao region). We don’t see Ilocanos versus Kampapangans verus Tagalogs, but rather poor versus rich, rural farmers versus landed oligarchs, etc. to merit an federal arrngement more justifiable.

    Federalism, while encouraging competition between regions/states, might just re-awaken latent regional animosity, and create a situation where a Philippine citizen is treated differently in different states.

  17. vic on Thu, 1st May 2008 9:20 pm 

    We were already warned about the eventual prices hikes of food stuff and to help delay the hikes, it is much better not to go on panic buying as what the Western Canadians of B.C. did. Hoarding will create an artificial shortages and hasten the price hikes.. So far rice has just increased by average of $2 per 10 kgs bags which sells for $12 to $15 before, and has not seen or read of hoarding so far in Greater Toronto.

    But even with our impending food “crisis” the government boosts its aid to global food by $50 millions:

    Richard Brennan
    OTTAWA BUREAU

    OTTAWA–Canada has responded to the worst global food crisis in 45 years with a $50 million increase in this year’s aid funding.

    Under pressure from the United Nations to do more, International Co-operation Minister Beverly Oda announced the increase yesterday, noting it brings Canada’s total food aid to $230 million, up 28 per cent over last year.

    http://www.thestar.com/News/World/article/420204

  18. BrianB on Thu, 1st May 2008 9:44 pm 

    People here who like Federalism, I suspect, is just bored with the current government. They don’t seem to have an inkling on the nature of their own people. Federalism will foster native regional traits. It will strengthen and crystallize prejudices. The simple reason is that State leaders, who will be more powerful than senators and will no doubt see themselves on equal footing with the president, will pander to the people and directly and indirectly foster their prejudices. Davao’s Duterte is a fine example and so are the Hagedorns of Palawan.

    This is not your little Christian Sunday club where you flatter yourself thinking you are changing individuals and saving souls. Federalism seems to have very little advantages, and most of these advantages are wishful thinking.

    There is no trial and error, especially in a country where truth and facts are covered up or ignored. Trial and error – parang experiment? Pano ka mag-i-experment kung ang results nang experiment kasinungalingan?

  19. vic on Thu, 1st May 2008 10:11 pm 

    Most if not all Federal Unions started with several totally independent or autonomous colonies, possessions or territories forming a confederation or Union to share a Central Government and common Nationality.

    The Philippines had already achieved a union of different Island groups and tribes and become one Nationals, so why break it up?

    Instead, the National Government as powerful as it is, could have directed its resources and develop each region or province potential resources and capabilities and income from progressive regions could be directed to develop or support the weaker ones to eventually catch up the others .

    These are the duties and responsibilities of the National Government..looking at the Big Picture. Switching the form of Government to Parliamentary maybe a reasonable option, but breaking up an already whole country is a recipe for 10 or more republics in the Philippines Islands..

  20. PhilwoSpEditor on Thu, 1st May 2008 10:16 pm 

    @jakcast

    “Federalism, while encouraging competition between regions/states, might just re-awaken latent regional animosity, and create a situation where a Philippine citizen is treated differently in different states.”

    I agree with the fact that it might create and revive regional animosity, but then again, if we focus all the power in ‘Imperialist’ Manila, regions such as Davao or Cebu might not achieve their highest potential given that they have to wait for orders or wait for go-signals in policies that would benefit their people. There is a grey side to that disadvantage of a federalist government.

    Some regions are being pulled down by the proposal to maintain an ineffective centralization of power in the government. That’s why Gloria holds a lot of cards because we have not yet made a proper effort to lessen the power of the President.

    I’m not saying it will absolutely weaken a president’s near omnipotent grasp of the country, but I’m saying that it can and it can be a method used to distribute power, instead of letting it all go to cronies or their own families.

  21. jakcast on Thu, 1st May 2008 11:06 pm 

    @ PhilwoSpEditor,

    To its credit, the present administration tried to distribute power in our unitary state from ‘imperial’ Manila. You know that the the following measures have been implemented: decentralization (executed by staff in the field), deconcentration (Malacanang in the south), and devolution (autonomy to lower levels).

    To further calibrate central and local power balance, RP could use what is called dual system (practiced in UK) or fused (used in France).

    In essence, I must agree with Vic that we don’t have to discard our unitary system in order to help the regions.

  22. The Ca t on Thu, 1st May 2008 11:30 pm 

    Brian Gorrell’s The Not So Talented Mr. Montano? If Malou Fernandez was the Affair of the Diamond Necklace (complete with a mystery: she flew coach), then the birth of this blog was the Bastille moment of the Philippine blogosphere.

    I am surprised to find the said blog this among the list and i was more suprised to know that the author of the blog was invited in the recent summit. the summit was organized by people among whom were the same people who warned bloggers not to link the said blog because it is libelous and bloggers may also be subjected to libel.

  23. supremo on Thu, 1st May 2008 11:34 pm 

    Federalism is a waste of time for the Philippines. They want to start with 11 states plus 1 administrative (Metro Manila) region. Pretty soon each province will demand to become a separate state. The final total might be 81 states plus 17 administrative regions. Forget it!

  24. supremo on Thu, 1st May 2008 11:38 pm 

    This federal mania reminded me of the ‘national university’ status of UP to separate it from the other state universities. Sure! Ten years from now every state university is a ‘national university’.

  25. supremo on Thu, 1st May 2008 11:46 pm 

    There’s more. It used to be that the Manila International Airport (NAIA) is the only airport in the Philippines with the international word in it. Now every major city in the Philippines with an airport wants to add the word international to the airport’s name. It doesn’t matter if the airport fails to meet international standards. What do you call this obsession with names?

  26. UP n student on Thu, 1st May 2008 11:50 pm 

    People wondering why the EXECUTIVE BRANCH has gets away with not disclosing information, this is a cut-and-paste from the sponsorship speech of Rep. Erin Tanada for “Freedom of Information Act”. In short : “there is still no enabling law that provides the mechanics for the compulsory duty of government agencies to disclose information on government transactions”:

    Our present constitution has secured for the Filipino people, in Section 7 of the Bill of Rights, their right to be informed on matters of public concern. It reads:

    “The right of the people to information on matters of public concern shall be recognized. Access to official records, and to documents and papers pertaining to official acts, transactions, or decisions, as well as to government research data used as basis for policy development, shall be afforded the citizen, subject to such limitations as may be provided by law.”

    While our Supreme Court has confirmed that this provision is self-executing, it is far from complete. Its effective implementation has for the past two decades suffered from the lack of the necessary substantive and procedural details that only legislature can provide. Specifically:

    One, there is no uniform, simple and speedy procedure for securing access to information. …

    Two, the specification of the coverage of the guarantee, particularly the general rule on what information may be exempted, needs legislation. I note that the constitutional provision states that access to information shall be afforded our citizens subject to such limitations as may be provided by law. Not having done this, we have conceded to the Supreme Court the task of outlining the limitations of the right to information through jurisprudence.

    Three, precisely for the lack of definite procedure as well as the absence of a definite scope, there is at present no effective basis for imposing administrative or penal sanctions for violations of the right.
    ….
    “It is unfortunate, however, that after almost twenty (20) years from birth of the 1987 Constitution, there is still no enabling law that provides the mechanics for the compulsory duty of government agencies to disclose information on government transactions. Hopefully, the desired enabling law will finally see the light of day if and when Congress decides to approve the proposed “Freedom of Access to Information Act.””

  27. vic on Fri, 2nd May 2008 12:09 am 

    UPn, Here is a very nice links regarding the Access to Information Act. For $5 and a little patience anyone will have the information needed in due time, except of course those that are prescribe by law off limits..
    http://www.infocom.gc.ca/acts/default-e.asp

  28. UP n student on Fri, 2nd May 2008 12:45 am 

    vic: thanks!

    ——–
    As Rep Tanada had noted, “… there is at present no effective basis for imposing administrative or penal sanctions for violations of the right” to information.

    “Aba, mahiya naman sila!!!” can only go so far, despite the good nature of Filipinos, especially because “… the general rule on what information may be exempted”(or how long which information can be withheld from general view) needs legislation.

  29. TonGuE-tWisTeD on Fri, 2nd May 2008 1:21 am 

    mlq3:
    In Malaysia, as you know Jeff Ooi is the first Malaysian blogger (Screenshots) to become an MP.

    Malaysian politics has realized (finally) the importance of the internet in influencing decisions of its people. The opposition used it very effectively in the last elections since their scant resources hardly made their presence felt in the mainstream media during the campaign.

    Well what do you know, the erstwhile internet critic, ex-PM Dr. Mahathir Mohamad, launched his blog and wrote his first post today, May 1.

    Generating 382 reactions, mostly from fans, it is quite interesting to read some criticisms of him, especially on the subject of his first post – Malaysia’s judiciary appointment system. Nearly half of the comments were to welcome him to blogosphere; the other incomprehensible half were written in Bahasa, though.

    Mahathir’s blog is at http://www.chedet.com

  30. TonGuE-tWisTeD on Fri, 2nd May 2008 1:26 am 

    Wouldn’t it be interesting to engage Mahathir about his thoughts on the Philippines, and maybe, in relation to the thread’s topic on Federalism?

  31. Madonna on Fri, 2nd May 2008 1:33 am 

    “People here who like Federalism, I suspect, is just bored with the current government. They don’t seem to have an inkling on the nature of their own people.” — Brian B

    I too share the same suspicion. In addition, federalists it seems to me are preoccupied with “form” — intellectuals engaging in a lot of belly contemplation. Or federalism has a real appeal to certain people — indeed it very, very sexy indeed for local politicos.

    Why does my linguistic region have I have to be lumped in a Federal State together with Mindoro or Marinduque? Absolutely jarring this proposal and whoever proposed is a freaking cultural nitwit. What for? Boggles me this silly exercise when there are a lot of a gazillion issues of national import that we have to attend to.

    Besides, what’s with all these Imperial Manila ek ek? I was born and bred in the province and never sniffed nary a scent of the superiority of Manila folks. It’s a myth. Most Manila folks anyway trace their roots to a particular province or two. Manila is historically a glorious city and should be recognized as such. Although lots of Cebu folks would contest that.

    Administrative wise, we have the local government code to take care of local develpment. It’s the usual problem, politicians and their pork barrel and local authorities who consider their cities and provinces their turf or hacienda. For a country with still a partly feudal social make-up, federalism will just give local pols even greater power to rule with greater impunity.

  32. leytenian on Fri, 2nd May 2008 8:00 am 

    Understanding the financial management of this system is very crucial. A policy should be at least what I’m expecting it to be.
    I am for 7 states. In my own understanding and expectation, federal revenue will be coming from individual income tax and corporate income tax all throughout Philippines. It will also make revenue on tariff tax (foreign corporations- FDI’s) and interest rates on borrowing. It also controls interest rates both long term and short term in line with international banking system and the IMF. Policies must be in placed in both fiscal and monetary policies to balance budget and deficits.

    The expenses are labor for our policemen, military, and all government employees including the senator who will run the State. Other expenses include social security benefits and retirement. etc. The administrative oversees the whole country manage by the President. It approves or disapprove budget propose by each state. It will assess the legitimacy of the budget. But has no control.

    The Senate or the State: Each state will derive its revenue from small, medium, and large corporation permit fees, state tax ( if applicable according to its own policy and in accordance with current economic needs of a State),property taxes, sales tax and other fees associated with doing business in a state.

    Expenses are budget for schools, infrastructure, hospitals and any other social needs for the benefit of the people living in that state. If the expenses exceeds revenue in a State, it can request or propose to the federal body (administrative) for financial assistance. Administration may decline or approve on the basis of the appropriateness of the proposal.

    If revenue exceeds expenses, profit will be gained thus will enhance the financial health of each state as well as the lives of the people.

    The advantage of having Federal and States are:

    1. Each State will compete with one another.
    2. Corruption will be minimized because of competition
    3. Direct accountability of funds.
    4. Responsibilities of each State govern by its senator becomes clearer to the people.
    5. It will attract new small business and entrepreneurs. The Senator will think how to grow his State independently.
    6. It will eliminate non performing leaders
    7. Labor costs for the Senate will be decreased because we are only paying 7 instead of 24
    8. The lower house will be eliminated and labor cost will also decrease.

    Disadvantages:
    1. The proposed Cha-cha has no clear policies and procedures as of yet.
    2. Oligarch will oppose it because of threat to their business of which is not really true. ( it will actually provide new opportunity)
    3. Majority has no clear understanding of what the system is all about.

  33. leytenian on Fri, 2nd May 2008 8:22 am 

    In addition: I am from Leyte. Leyte belongs to Reion VIII I believe. I don’t even know who is the our Senator. You all can ask the elementary and highschool students in my province. I can guarantee you, most of them don’t remember and probably have not seen him in person nor even make a speech in our region.

    I cannot put all the blame to the region VIII senator when Southern Leyte suffered, Guinsaogon landslide. The senator representing this region don’t even have a clue on what’s going on in our region and forest. He can easily say: “I haven’t have any issues of that nature reported to me by the the governor of that province” You see… no one will take responsibility. Now my governor can just easily say: “we don’t have no record of licensed log and timber business registered or allowed to cut trees in our province. We also don’t have no record of payment for “bill of Lading” nor record of shipping companies registered to pay fees in our port.

    You see… I cannot find out who is responsible. There’s no direct accountability.Just like our current system. All fingers are pointed just to Malacanang and yet others are doing the same.

    We need to change our system. We must know who has direct responbility to our people. I am also expecting that the Senator who is responsible for my State must reside in my State.

  34. Liam Tinio on Fri, 2nd May 2008 9:56 am 

    why federalism?

    FLOW OF MONEY

    Now(Centralized Govt Finance):

    LGU REVENUE – NATL GOVT – LGU – LOCAL PURSUITS

    ALL LGU REVENUE must go first to the NATIONAL GOVERNMENT then the government takes its share and gives the LGUs their mandated share to fund LOCAL PURSUITS

    Future(Federalized Financial Setup):

    LGU REVENUE – NATL GOVT SHARE

    the LGUs gets ALL its revenues to fund local pursuits but will give a mandated share for National Governments to function

    financially speaking, the main difference between a centralized and a federalist setup is that now the money must first go to the National Revenue Collector before the LGUs gets its share whereas in a federalist setup the LGUs gets all of its revenue for itself then gives a ’share’ for the National government.

    the main advantage of this setup is political power brought about by economic power. LGUs do not have to wait or lobby for their funds from the National government before they can fund local projects. in the current system, this has been the biggest asset the Presidency has over local government units. due to its control in finance of national executive departments, the Presidency has a hand in choosing which projects will be prioritized first. even the pork barell, which is supposed to be congressmens’ independent source of funds become politicized primarily because of the money in national executive offices like the DA or DENR.

    with their own funds, they can act independent of the national government, whose role now is to coordinate, encapsulate, and supplement the efforts of local governments, similar to what MMDA is now, but only more powerful. the national government’s primary role now is in the conduct of foreign affairs and in formulating national development goals where LGUs can either be recommended or imposed to follow, depending on the agreed charter.

    the disadvantage in this setup is that poorer, less-competitive, and less-capable cities will have a difficult time in getting funds. the current system allows them to have funds depending on what class of municipality/province they are in where similarly grouped provinces have similar funds. in a federalist setup YOU GET WHAT YOU GENERATE, if you are unproductive, you get less. proponents argue that in cases such as these, it is the national government who will support their budget or bail them out.

    the role of the national government then, is to focus on helping less-productive municipalities/provinces to compete/survive, while taking a hand-off productive states, reducing red-tape and decentralizing control over affairs.

    culturally speaking, each state can claim to be at least a sovereign ethno-geograpgical unit, with the war among ethno-linguistic differences settled. no more “why is Filipino the National Language?” questions or “why barong tagalog is a national costume”. each unit can impose cultural affinities to their hearts content. no more “christmas holidays for muslims” and “ramadan holidays for christians”.

    Davao City and Cebu City as chartered cities, currently enjoy relative independence from Manila. in a federalist setup, each state will enjoy a similar situation more or less.

  35. hvrds on Fri, 2nd May 2008 10:25 am 

    Why is Sec. Yap wanting the same multilateral trading system which is handcuffed by the multilateral financial system that is the root of this crisis.

    Let us look at Haiti the worst case that has so far occurred. They are one of the most heavily indebted states in the world. When they went to debt relief, the IMF (Doctor Death)insisted on the traditional neo-liberal conditionalities. Free marekts and free trade. Cancel all subsidies for food productiona and lower tariffs on food.

    Rice production int he U.S. is also subsidized so in come the chepaer rice from the U.S. and they get hooked on it. Now there is a reversal of polarity in the markets for commodities. It becomes a sellers market – more buyers than sellers. Naturally prices shoot up and for a poor country like Haiti you have the equivalent of hyper inflation.

    But who are the winners. The lucky large transnational consolidator corporations who eat up most of the subsidy.

    Now guess which country is a favorite pupil of these masters of death.

    Don’t you worry they said there is enough oversupply in the world markets at cheaper susbsidized prices.

    Where is the Doha round stuck in — agricultural subsidies that are killing poor countries.

    What was Yap thinking when he led the country under the orders of his boss to offer to lease 2M hectares of land to the Chinese.

    Carnadang is making allegations that we gave up control of our territory to China and Veitnam for oil in Spratly’s. China is hungry for access to oil reserves. They are a command economy when it comes to strategic industries. Last year there were problems in the supply of corn and other feedstocks that caused a surge in the price of pork in the PRC. Since 2004 the increase in corn production the U.S. all went to ethanol.

    That kind of switch takes time to lag to other foodstuffs.

    The largest converter of agricultural stocks to feedstocks was the first one to sign up in that real estate deal that the Philippines signed with China. estate deal.

    Read the papers and you will see that the government has already signed contracts with international traders (both private and state owned) for the bulk of our rice imports this year.

    International food traders control the bulk of international trade in grains and not states with the exception of the PRC.

    Most people do not know that the exportation of coconut oil is paid for with long term contracts with international traders who prepay for production just like local traders here where capital markets are still in its embryo stage.

    Corporate Vultures Lurk Behind the World Food Crisis

    By Anuradha Mittal, AlterNet. Posted April 29, 2008.

    “Preaching at the altar of free market to deal with the current crisis requires a degree of official amnesia. It was through the removal of tariff barriers, made possible by the international trade agreements, that allowed rich nations such as the U.S. to dump heavily subsidized farm surplus in developing countries while destroying their agricultural base and undermining local food production. In Cameroon, lowering tariff protection to 25 percent increased poultry imports by about six-fold while import surges wiped out 70 percent of Senegal’s poultry industry. Similarly reduction of rice tariffs from 100 to 20 percent in Ghana as a result of the structural adjustment policies enforced by the World Bank, increased rice imports from 250,000 tons in 1998 to 415,150 tons in 2003. In all, 66 percent of rice producers recorded negative returns leading to loss of employment. Vegetable oil imports in Mozambique shrank domestic production from 21,000 tons in 1981 to 3,500 in 2002, negatively impacting some 108,000 small-holder households growing oilseeds.”

    Developing countries had an overall agricultural trade surplus of almost $7 billion per year in the 1960s. According to the Food and Agricultural Organization (FAO), gross imports of food by developing countries grew with trade liberalization, turning into a food trade deficit of more than $11 billion by 2001 with a cereal import bill for Low Income Food Deficit Countries reaching over $38 billion in 2007/2008.

    Erosion of the agricultural bases of developing countries has increased hunger among their farmers while destroying their ability to meet their food needs. The 1996 World Food Summit’s commitment to reduce the number of hungry people — 815 million then — by half by 2015 had become a far-fetched idea by its 10th anniversary. U.N. Special Rapporteur on the Right to Food, Jean Ziegler, reported last June that nearly 854 million people in the world-one in every six human beings-are gravely undernourished.

    So on who’s behalf are the heads of the IFIs promoting the conclusion of the Doha Round and further liberalization of agriculture. While Investors Chronicle in its April 2008 feature story, “Crop Boom Winners” explores how investors can gain exposure to the dramatic turnaround in food and farmland prices, a new report from GRAIN, Making a Killing from the Food Crisis, shows Cargill, the world’s biggest grain trader, achieved an 86 percent increase in profits from commodity trading in the first quarter of 2008; Bunge had a 77 percent increase in profits during the last quarter of 2007; ADM, the second largest grain trader in the world, registered a 67 percent per cent increase in profits in 2007. Behind the chieftains of the capitalist system are powerful transnational corporations, traders, and speculators who trade food worldwide, determine commodity prices, create and then manipulate shortages and surpluses to their advantage, and are the real beneficiaries of international trade agreements.”

    It is the height of naivete unless you are a government like the PRC to call for a Strategic Food Reserve system in the world when the trade for grains are controlled for the most part by large conglomerate trading companies.

    Even here in the Philippines it is the grains traders that control the market. The entire Asean market trading system is controlled by merchant Chinese that form Greater China. It has been that way for generations. Salim, Kuok and others are giants in agriculture trading

    Why would CONAGRA sell its trading unit for $2 billion cash to a hedge fund. It has the wealth of information on grain trading that go back 147 years.

    So Yap would like the World Bank to initiate a food bank so surplus U.S. rice can be used as a buffer in any emergency. Any idiot will tell you that if you want to get competitive rice from the international markets you have to become like the international trading companies that take positions in commodities.

    That means you have a good state procurement system that knows the game. If the NFA being as corrupt as it can be can’t do it will Art Yap inform the Congress the nifty details of the contracts that the Philippines has signed for the bulk of our rice imports? Including the bank transfers and the names of the parties invovled in the deal.

    Read up on Marc Rich the most notorious rouge international trader. His company Glencore took over Pasar. In less than open governments it is guys like this that move markets and not free markets.

    You can’t move a ship load of grain without these guys knowing it. The matter of insurance.

  36. mlq3 on Fri, 2nd May 2008 12:23 pm 

    tongue, related to your comment is this article:

    http://asiafoundation.org/in-asia/2008/04/30/malaysia-and-its-blogolution/

  37. hvrds on Fri, 2nd May 2008 12:39 pm 

    While the food deficit producing countries are worried about avoiding malnutrition and hunger for those who can afford it one can play in the great commodity casino though Deutsche Bank.

    CNBC
    Shorting Commodities? Here’s An Easier Way
    Thursday May 1, 1:49 pm ET

    Psst! Wanna short commodities? Deutsche Bank just made it a lot easier to do so, starting today. They are introducing two new Commodity ETNs, the Deutsche Bank Commodity Short ETN (DDP) ETN, and the Double Short (DEE) ETN.

    Both are tied to the Deutsche Bank Liquid Commodity Index. The Index tracks the performance of six commodities in the energy, precious metals, industrial metals and grain sectors.

    http://biz.yahoo.com/cnbc/080501/24408552.html?.v=1

  38. mlq3 on Fri, 2nd May 2008 1:12 pm 

    leytenian, you already have a congressman for that.

  39. justice league on Fri, 2nd May 2008 2:07 pm 

    Leytenian,

    Not exactly agreeing with everything else you stated; you implied that the administrative overseer approves or disapproves budget proposed by each state. It will assess the legitimacy of the budget of each state. Yet he has no control. Could you please elaborate on that?

    You indicated that if the expenses exceeds revenue in a State, it can request or propose to the federal body (administrative) for financial assistance. Administration may decline or approve on the basis of the appropriateness of the proposal.

    Yet if the revenue exceeds expenses, profit will be gained thus will enhance the financial health of each state as well as the lives of the people.

    I wonder why you didn’t indicate if such state with profit should in turn extend financial support to the Federal body.

    You stated in the benefits that the labor costs for the Senate will be decreased because we will only be paying 7 instead of 24 and that the lower house will be eliminated and labor cost will also decrease.

    How many nations have such a set-up wherein the federal legislature is composed of such few people?

    Will you be recommending the abolition of the individual provincial legislatures in the individual states effectively terminating provinces as political units?

    Will you be recommending the formation of a State Legislature?

  40. justice league on Fri, 2nd May 2008 3:33 pm 

    Liam Tinio,

    Article X- Local Government

    Section 5. Each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the Congress may provide, consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local governments.

    Section 6. Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.

    —-

    The automatic clause in the Constitution has been upheld several times by the SC and as late as 2005 in ACORD vs. Zamora.

    In the Local Governmment Code under SEC. 284-Allotment of Internal Revenue Taxes; the percentage is pegged already at 40% of the national internal revenue taxes. I do not however currently know if that percentage has been altered by law.

    Do you believe that the Legislature can increase that percentage to about 80% or even higher effectively leaving the National Government to make do with what is left (merge departments, relinquish certain functions/responsibilities to be taken up by local government units instead, etc…)? If you believe so; what is stopping Legislature from doing so?

  41. jakcast on Fri, 2nd May 2008 3:46 pm 

    ‘the percentage is pegged already at 40% of the national internal revenue taxes.’ – justice league

    Many LGUs awash with funds turn to beautification projects. More income-generating projects should be made.

  42. leytenian on Fri, 2nd May 2008 6:16 pm 

    mlq3,
    “leytenian, you already have a congressman for that”
    true but congressman and governors are brothers by blood. conflict of interest and political dysnasty cannot be prevented wiht our curent system of ” it’s always been that way”

    thanks manolo.. you are great. more power

  43. nash on Fri, 2nd May 2008 6:34 pm 

    The first sentence is hilarious!

    We need a month to be aware of graft and corruption.

    The other 11 months, nagbubulag-bulagan lang…

    Incidentally, we should have TOUGHER GUN LAWS and LIMITS ON USING POLICE AND MILITARY AS BODYGUARDS

    Kaya naman maraming takot to report graft and corruption dahil these grafters have guns and goons.

    I will be honest, I don’t think I can tell Chavit Singson personally that he is a an evil corrupt bastard..or is Palparan….or sina Dy of Isabela…. Baka barilin ako. Kaya lang naman matapang mga yan.

  44. leytenian on Fri, 2nd May 2008 7:17 pm 

    justice league,

    “The administrative oversees the whole country manage by the President. It approves or disapprove budget propose by each state. It will assess the legitimacy of the budget. But has no control”

    Our current system of ” it’s always been that way” has been practicing the monopolistic type of power. It has no flexibility except micromanaging. Decentralization of power may be necessary to delegate and share the tasks to others.

    “I wonder why you didn’t indicate if such state with profit should in turn extend financial support to the Federal body.”

    It’s Vice Versa. The poorest State will probably initially rely financing needs from Federal (administration).

    “How many nations have such a set-up wherein the federal legislature is composed of such few people”

    Example: Miami makes more money than Philippines and yet it only runs by a mayor. New York City. Hawaii is a State and yet it makes more revenue than the whole Philippines.
    Philippines is as big as Florida and yet it is an independent state not nation run by few people.
    Philippines is not a Nation. It is a only a country. If revenue is considered , it can be compared as a county that belongs to New York City. Our economy is small. It does not need many genius to be figure the numbers out.

    “Will you be recommending the abolition of the individual provincial legislatures in the individual states effectively terminating provinces as political units?

    If expenses exceed revenue, yes. The provinces will remain intact. Instead of being abandoned and ignored, each province will belong to the State.

    Will you be recommending the formation of a State Legislature?”

    It depends on how policies are made. It must be sustainable. Our current economy is so unstable. It;s alays been that way.

    The only constant thing in this world is Change. Changes of our Constitution requires revisiting and it needs a speedy process of implementation. It cannot catch up with Globalization. It is very slow to respond. It waits for things to happen instead of making things to happen.

    I might have to agree with Benigno in this case when h made comments “kawawa nga ang pinoy” and “vacuous minds”.

  45. The Ca t on Fri, 2nd May 2008 7:58 pm 

    Example: Miami makes more money than Philippines and yet it only runs by a mayor. New York City. Hawaii is a State and yet it makes more revenue than the whole Philippines.
    Philippines is as big as Florida and yet it is an independent state not nation run by few people.

    Very naive and clueless as to how these states operate.

    Each state receives assistance from the Federal government since the Federal government also collects income taxes from the residents of each state.

    So here honey, we pay the Federal income tax what you call 1040 and you pay the state local income taxes on the same income that you reported.

    Our wages are deducted withholding taxes both for federal and state.

    will the Filipinos agree to pay the same tax liabilities?

    What happens to the poor provinces? Where will they get their revenues.

  46. vic on Fri, 2nd May 2008 9:22 pm 

    Fast facts about how the Federal State raise its revenue. Citizens or residents in each province or state pays two set of taxes for the same reported income, usually at higher rate for Federal Income Tax (ours is 15% for Federal and 6.05 for Ontario Tax on Taxable income. Sales tax are also collected by both governments and the Federal Government does the Collection for all Provinces and Territories, except for the Province of Quebec which collect the taxes on its own.

    Natural Resources wealth, such as oil and other minerals products are also shared by both the province and the Federal Government.

    The Governments for both have the same Cabinets counterparts and the Provincial Budget is matched by the Federal Government for services under the Provincial jurisdictions according to the agreed Formula by the Federal and all Provinces and territories.

    Federal Jurisdiction such as Pensions, Unemployment Insurance, Old Age Security Pension are the sole responsibilities of the Federal and the Provincial Government can only supplement.

    Now the Hard Part, the Equalization Payments. The “Haves” and “Haves Not” States or Provinces. Since the Idea of Federalism is to Provide services and protection to all of the Citizens at Relatively the same cost in Taxes, and Citizens don’t have to massively migrate from one State to another, this is where the so-called Equalization Payments become the most important tool of keeping the Union intact. It is the Process where the Federal Government will take resources from John and give them to Paul. Some states whose revenues can not meet the level of services of other states receive these payments from the Federal coffers on top of all others Budgeted by the Federal Government. It simply means that say the residents of the Province of Alberta paying much more in Federal Taxes than they get in Return from the Federal Government, so the Residents of Newfoundland and Labrador and the Poorer East Coast Provinces will have the same benefits and services as the People of Alberta.

  47. supremo on Fri, 2nd May 2008 9:23 pm 

    Georgia’s revenue sources

    http://www.georgiaencyclopedia.org/nge/Article.jsp?id=h-1353

  48. leytenian on Fri, 2nd May 2008 9:33 pm 

    the cat.

    i understand. i was referring to non performing leaders. We don’t have enough revenue to pay them salaries. It’s unsustainable. We kept on borrowing. It’s like charging everything on our credit cards and yet income will only grow 5% or less a year and credit card companies charging 8% to 24%. One day, it’s a personal credit crunch. Just like our economy. So who is responsible? If we have to compare our economy to our own individual situation, do you think we will use more of our credit card limit and be burried in debts? The chance of borrowing more is tiny if we over spend and extends our credit unless you will agree to pay 24% of interest rates. This is what happens with our government system.
    It doesn’t have the financial leverage to sustain because of non transparency of financial data (corruption). Too many non performing leaders to pay plus Debts are so high, accumulated from the past and current situation.

    Sounds like you are very smart, making your own money. I know for sure, you are managing it wisely. That’s why I am expecting our leaders to perform their jobs, manage our people’s and implement a sound policy.

    “What happens to the poor provinces? Where will they get their revenues”

    policymakers must focus on employment. Our taxes are paying them revenue to perform. they are responsible.Are they? Revenue from government should not rely on borrowing, overseas remittances and Aids from other countries. It needs to generate income by employing its people.

  49. leytenian on Fri, 2nd May 2008 9:46 pm 

    The cat:,
    “Very naive and clueless as to how these states operate.”
    you are wrong… it was an example. don’t take everything literally.

    relax and understand my point:

    we are paying too much excess labor to our political leaders.It is a waste of money.

    let me ask this questions? what policies should our government must have in order for our economy to grow. Think of financial transactions. Cash flow ,i mean.
    Please do not ask the same question back tome.I wanna hear your own experience and share it here instead of picking tidbits of information and answering it using your emotions. research and see what you think of federalism. point out the advantages and disadvantages and why. good day.

  50. MrG on Fri, 2nd May 2008 9:54 pm 

    Even before news on the Senate proposal for Federalism, a motely group has been meeting in Cebu City in order to form the Cebu Federal, Inc. and campaign for such a shift in the form of government. Our Primer may be viewed at http://cefedi.rpweb.ph/primer.htm and your comments are most welcome. Just proceed to the “CEFEDI room” shown in our home page.

  51. UP n student on Fri, 2nd May 2008 10:05 pm 

    A statistical view of the poor road-infrastructure of the Philippines:

    Kilometers of paved Roads per thousand-sq-KM of land-area
    0.110 – Thailand
    0.129 – Vietnam
    0.067 – Pinas
    0.117 – Indonesia

    France has 1.485km paved-road per thousand-sq-KM.

  52. justice league on Fri, 2nd May 2008 10:10 pm 

    Leytenian,

    Your statement-”Our current system of ” it’s always been that way” has been practicing the monopolistic type of power. It has no flexibility except micromanaging. Decentralization of power may be necessary to delegate and share the tasks to others.” with regards to “approves or disapprove budget” requires proof. I suggest you come with it already.

    With regards your statement “Miami makes more money than Philippines and yet it only runs by a mayor.”; do you mean that you don’t advocate that the individual states elect their own governor/premier?

    Based on the Miami city charter, they have a city manager whose tasks include the following:
    (a) See that the laws and ordinances are enforced.
    (b) Appoint and remove ……
    (c) Exercise control over all departments and divisions created herein or that may be hereafter created by the city commission.
    d) Attend all meetings of the city commission …..
    (e) Recommend to the mayor and city commission ….
    (f) Keep the mayor and city commission fully advised….
    (g) Perform such other duties …..

    Are you sure Miami is only run by a mayor?

    With regards to your statement that “Philippines is not a Nation.”; the first article of the Philippine Constitution doesn’t bear you out as it describes the “National territory”.

    Oh yes, you’re going to be changing the Charter so you’re going to be changing that to reflect your view, right?

    In response to the query on the “abolition of the individual provincial legislatures” you responded with “If expenses exceed revenue, yes.”

    So in other words some states will have individual provinces with their own legislature while other states will have no provincial legislatures for their provinces.

    And since answer on State legislature is also dependent on economy; then there will be states with neither of both provincial and state legislatures.

    Regarding your statement “The only constant thing in this world is Change. Changes of our Constitution requires revisiting …”; oh yes but it doesn’t necessarily mean a shift to a Federal form of government.

    For one, maybe an amendment to the antidynasty provision is worthwhile wherein it will be self-executing and no longer dependent on a law from Congress that is not even forthcoming.

    “I might have to agree with Benigno in this case when h made comments “kawawa nga ang pinoy” and “vacuous minds”.”- I suggest you DON’T use such words in reference to me ever again.

  53. leytenian on Fri, 2nd May 2008 10:21 pm 

    Justice league,

    “For one, maybe an amendment to the antidynasty provision is worthwhile wherein it will be self-executing and no longer dependent on a law from Congress that is not even forthcoming.”

    true.. i would also go for that. Too many conflict of interest exist in our current system. Sons and daughters must run outside of their father’s or relatives jurisdiction. They have to take the boat and become a resident of another island to avoid this conflict. What i’m trying to imply is really to find a solution to our current situation. it’s always been that way.when are things going to get better. What policies and role model system are we going to follow? Federalism is an option. An option is better than waiting for things to happen.

    In terms of “kawawang pinoy” it was not intended to you. sorry.. it was for us the majority that until now, we have no options.

  54. UP n student on Fri, 2nd May 2008 10:33 pm 

    to MrG: Instead of Federalism, you should just work on seceding. Of course, it means you will have to form your own army, but the project to identify your own flag should be job-generating!!!! Also think of the number of congressmen you can have for the Country of Cebu! Jobs! Jobs! Jobs! :razz:

    The real “money” — a Cebu-country will have its own ambassador to the United Nations (and to Japan, Thailand, Australia, Russia, the Vatican, China, Indonesia, Vietnam) plus consuls to San Francisco, Chicago, New York City, all to funded by taxes paid by the citizens of Cebu.

    And every so many years, you will send your own sports delegation to the Olympics — again, funded by taxes paid by the citizens of Cebu.

    All such things to be funded from taxes paid by the citizens of Cebu. :neutral:

  55. supremo on Fri, 2nd May 2008 11:05 pm 

    MrG,

    Make sure the future nation of Cebu has enough money to buy drinking water from the other islands.

  56. UP n student on Sat, 3rd May 2008 12:40 am 

    Again, to MrG: Your WebSite does not identify who are the members of your motley group. Such a list of names will be helpful.

  57. justice league on Sat, 3rd May 2008 1:28 am 

    Leytenian,

    I realize Ca t is quite able to defend herself.

    I have an inkling that she’s going to tell you when credit card companies are allowed to charge your 8-24%.

    If you reason out to her further on your answer regarding leaders; the query on provincial and state legislatures might just come back to you.

    “What policies and role model system are we going to follow? Federalism is an option.”- Between Federalism and the current one; I’m sticking with the current one.

    “In terms of “kawawang pinoy” it was not intended to you. sorry.. it was for us the majority that until now, we have no options.” Well I don’t necessarily agree with the description of the majority but I’m a little intrigued that you didn’t retract the “vacuous minds” part. But I’m going to let that pass this instance.

  58. justice league on Sat, 3rd May 2008 2:06 am 

    MrG,

    My post to Liam Tinio on May 2 at 3:33 PM; I also now extend to you.

    Your primer claims that “The immediate effect of Federalization is a wider distribution of national resources.” What exactly does that mean?

  59. supremo on Sat, 3rd May 2008 2:28 am 

    ARMM is the closing thing that the Philippines has to a federal setup. Everyone should look at ARMM very closely.

    From Wikipedia:
    ‘Despite its “autonomous” nature, the ARMM receives approximately 98% of its operating revenue from the National Government of the Philippines, and has yet to create significant, viable sources of additional revenue. Perhaps for this reason, the per capita spending on such vital services as education and infrastructure are among the lowest in the Philippines, and the five provinces of the ARMM continue to be ranked consistently on the lower rungs of economic development within the country. The per student expenditure on education, for example, is less than $100, with the result that students within ARMM schools generally score poorly, in comparison with other provinces, on standardized achievement tests administered throughout the country.’

  60. Diego Silang on Sat, 3rd May 2008 2:43 am 

    @ Mr. G,

    The Cebuanos cannot be doing this. After all, your politicians have been the teacher’s pets: Garcias, Cuencos, etc. Cebu has been favored by this administration. Are the former Osmena senators behind your motley group?

    That reminds me, I have to travel this weekend to my province and incite a long-delayed state of Ilocos-lovakia.

  61. The Ca t on Sat, 3rd May 2008 3:14 am 

    i understand. i was referring to non performing leaders. We don’t have enough revenue to pay them salaries. It’s unsustainable.

    now it is non-performing leaders? ano ba talaga ang gusto mong palabasin?

    Your previous statements are already no-brainer.

    1. Miami makes more money than Philippines
    what’s the basis? What do you mean by money? cities do not make money. They generate revenues thru taxes. that’s why i have to mention two sources of revenues of the states, the federal taxes and state income taxes.

    2. and yet it only runs by a mayor. the mayor is under the governor. The state has two congressmen to represent it and its own legislature–the legislature elects the senator that will represent the state.

    See how naive you are?

    3. Hawaii is a State and yet it makes more revenue than the whole Philippines.

    Really. what revenue are you referring to? the GDP? the tax revenue. Are millions, bigger than billions?

    See how clueless you are?

    Philippines is as big as Florida and yet it is an independent state not nation run by few people.

    last time I know Florida is still a part of the United States since 1821 with a governor as chief executive of the government with rwo florida Senators, to represent it in the US Senate and 25 rperesentatives for its legislature.

    What few people are you talking about?

    The province in the Philippines has also a governor, the cities have mayors and districts have congressmen and regions have senators.

  62. Bencard on Sat, 3rd May 2008 3:19 am 

    at this stage of political maturation of filipinos in general, i don’t think it’s ready for federalism. just because the system works in other societies is no guarantee that it would in the philippines. the age-old regional/ethnic rivalries and prejudices are still in play, albeit hibernating momentarily after centuries of centralized governance (both independently and under colonial rule). i think it would be easier for the filipinos to achieve national unity under one centralized government than to march to the sounds of different drums, each drummer competing for political supremacy.

    the present set up needs a lot of improvements and reform. it needs fixing, not complete replacement. federalism cannot change wrong attitudes, bad habits, apathy, cynicism, opportunism, warped sense of values, greed, lack of sense of nationhood and patriotism. it cannot prevent abuse of power, graft and corruption, political dynastyism, cronyism, and misuse of the country’s resources.

    switching to federal system is a simplistic solution to the countries myriad of problems. it is akin to pinoy’s penchant for creating new bureaucracy when the existing one runs into trouble, or becomes unpopular, or to deliver a promised patronage.

  63. The Ca t on Sat, 3rd May 2008 3:22 am 

    let me ask this questions? what policies should our government must have in order for our economy to grow. Think of financial transactions. Cash flow ,i mean.

    are u sure you want to talk to me about finance?

    you who cannot distinguish revenue from a cash flow.

    credit cards are nor sources of revenues honey and financial transactions do not mean cash flow all the time.

    Nagsisimula ka palang bang matuto ng finance o overhwhelmed ka lang sa mga bagong information natutuhan mo?

    I do not even know what you mean by the financial data that Lito lapid should know.

  64. leytenian on Sat, 3rd May 2008 6:06 am 

    “at this stage of political maturation of filipinos in general, i don’t think it’s ready for federalism.”

    agree, i can even tell even at this site. good day.

  65. justice league on Sat, 3rd May 2008 8:21 am 

    Leytenian,

    “agree, i can even tell even at this site.”

    I hope you considered there the inability of its proponents to defend the idea.

  66. hvrds on Sat, 3rd May 2008 10:13 am 

    Why Chavit, Bayani or some from Mindanao/Visayas should call a referendum for breaking off from the central government.

    http://news.yahoo.com/s/mcclatchy/20080502/wl_mcclatchy/2928005

    Bolivia’s richest province seeks autonomy, raising fear of political crisis By Boris Heger and Jack Chang, McClatchy Newspapers
    Fri May 2, 4:58 PM ET

    SANTA CRUZ DE LA SIERRA , Bolivia — This divided country faces a constitutional crisis Sunday when its richest and second most-populous province votes whether to declare itself autonomous from President Evo Morales’s national government, a referendum the president has called illegal.

  67. MrG on Sat, 3rd May 2008 10:20 am 

    I asked for comments and certainly got a handful. Our SEC registration papers have just been released and the same shall be posted on the web site; for those that are interested.

    There is no Senator or Congressman that has had a hand in organizing us.

    All comments made shall be properly answered at our web site. This would give our members an idea of the kind of task at hand to be able to sell the Federal idea and how to handle the negative reactions.

    Quixotic? Perhaps, but our collective action is the best we are able to come up with in the face of the poor governance record of our country.

    Yes, we talk…. and also take action.

    Thank you for your comments.

  68. MrG on Sat, 3rd May 2008 10:45 am 

    We have been called a “damaged culture”. We are no different from other people living elsewhere on this planet. However, our history, replete with subjugation by more advance cultures has really left a collective and perhaps unconcious imprint on our psyche.

    Just consider the maniacal behavior of a driver in the streets of Manila. The same driver is instantly transformed as soon as he enters the gates of the former US base in Clark. Instantly, he knows what the “THRU” street sign means and follows its implications. But, the reverse happens the moment he speeds out of the Clark gates.

    Romy Neri, with all his academic credentials, is reduced into a yellow-tailed advocate in the face of organized corruption. Jun Lozada and his family’s hopes for a bright future are now jeopardized because he has tried to buck the system at the instance of his friend. He almost lost his life while his friend choose the comforts of hiding behind the executive privilege skirt.

    Federalism is our solution to the massive and endemic corruption of the current over-centralized form of government. No to corruption – yes, to structural change!

  69. leytenian on Sat, 3rd May 2008 11:41 am 

    MRG,

    It seems to me that this new autonomy propose by the Visayan is just another copycat of the current Constitution. It may not be to our advantage. It may be just another “mini me” with policies of no clear financial transactions and the same vote buying during elections.

    I would suggest posting clarification of such proposition. A projected income Statement of 1 year, 3 years , 10 years and 20 years must be uploaded on the website. Actual breakdown of revenue and costs not percentage will provide a clear picture of the overall economic plan. No percentage is acceptable like what Pimentel is proposing. This is where people can steal money.
    If losses are in high probability, where will the Visayans borrow money to sustain? What would be our collateral if we borrow? What are our assets and current debts? It might end up like Gloria, using spratly’s to borrow money from China. I hope we will not use Limasawa island off of leyte. Or we might borrow from Imelda.

    A clear presentation of financial proposals should be made public. I’m not concerned about employment. I do agree that Cebu is very progressive, Bohol is attracting more tourists. Surigao is considered the Surfing capital of Asia. Leyte supplies most of the Visayan Electric Power; Cagayan Valley has the highest employment rate. The Visayan has been able to sustain. It has been planning and ready for a change as well as Mindanao.
    Here’s employment statistics: you might need this for motivation.
    Across regions, the Autonomous Region in Muslim Mindanao (ARMM) had the highest employment rate (97.6%), followed by Cagayan Valley (96.5%) and Cordillera Administrative Region (96.0%). The National Capital Region recorded the lowest employment rate at 87.5 percent. http://www.census.gov.ph/data/pressrelease/2008/lf0801tx.html.

    Note: It also does not mean that if I date Juan I will marry Juan. good luck.

  70. Bencard on Sat, 3rd May 2008 11:53 am 

    MrG, the jews have been subjugated countless times by dominant “cultures” culminating in their dispersal all over the globe. with meager resources, they came back to reclaim their home strong as they could ever be evidently with none of the negative “imprint” on their psyche. i don’t know whose bright idea is this “damaged culture” theory but i really think it’s nothing but a cop-out, a puny attempt at palusot.

    how can federalism be a solution to “endemic corruption”? you cannot transform people through “structural change”. neither can you make people behave like the americans (for instance) by copying their system of governance. you cannot change hell by calling it paradise.

  71. hvrds on Sat, 3rd May 2008 11:56 am 

    “Federalism is our solution to the massive and endemic corruption of the current over-centralized form of government. No to corruption – yes, to structural change!”

    You cannot decentralize the powers of a weak state as the effects of that weak state (NCR) is essentially living off the resource base of the other areas of the state. The central government is an evolved neo-colonial state. It is dependent on foreign capital (just like colonial times) and now the export of cheap crude produce and humans.

    The only difference is the export of human resource that is keeping the so called state afloat.

    The total public sector debt plus the contingent debt will insure that the centar will continue to dominate.

    Please note that most of the debt was used to sustain the center and not the whole.

    The major provinces should simply say enough and break off. it is silly to depend on the center for your IRA.

    That comes from the value added of your people in your areas.

    Capital or that is monetary capital comes from labor value added and not the state.

    Start from the basics and work yourself up. The center is simply a big sucking machine. Destroy it.

    Even if you have to establish feudal states that is okay. It will match the culture. But make sure the power is used to create and turn peasants/fisherfolk into farmers and into productive labor.

    The idea of teaching a man to fish and giving him a fishing rod is the states responsibility to build the entire system and structure for productive labor to flourish and prosper.

    The more mature economies of the world used the industrial revolution to industrialize their productive capacities in the countryside that was already ready for the rapid use of mechanization and technology. It was a tortuos process but the state made it happen.

    Simply leaving it alone and just depending on the so called market is the game for the rich and powerfull countries who turned the ideas of markets into an ideology that they sold to the ignorant.

    Building is a step by step process and we have to build the ladder first before we start climbing up the same.

    Kailangan pa pala na may sapat na pagkain ang tao hindi ba?

    Tignan mo naman si Art Yap, gustong niyang ipagupahan ang lupa ng Pinas sa mag Instik para sa kanilang mamamayan at puede naman tayong magimport galing sa ibang bansa. Puede niyang idefensa yan kasi abogado siya.

  72. leytenian on Sat, 3rd May 2008 12:01 pm 

    The pressure is on to our current administration. It is time for this administration to act and set a clear policies for the benefit of the people. I may not blame the visayas or mindanao. The role model is indeed a role model for another long term economic problem. This is no longer sustainable. The pressure is ON. Let’s see what’s next.

  73. jakcast on Sat, 3rd May 2008 12:21 pm 

    @ leytenian

    What pressure? Political analysts say this is a just a gambit to pre-empt Malacanang’s own version of charter change.

    And I agree. Do you think those senators waiting to be president (Lacson, Roxas, Villar, Leagrada, etc) and vice president (Cayetano, Escudero, etc) will allow a shift to a federal system and dilute their grand ambitions.

    These are astute politicans, my man. Nakikalaro lang sila kay Senator Pimentel. “Kami na naman” and then papalitan yung systema. Ba, hindi tama yan.

    And the palace knows this.

  74. leytenian on Sat, 3rd May 2008 12:34 pm 

    jakcast,

    then those name mentions should not be one of our president. I cannot trust any of them. they are all the same, benefiting the current system.

    MRG,

    sorry to say the website is not very professional. the pictures of the members are not professionals. ” murag dili man kasaligan.” i cannot trust their faces..sorry.
    I need to be convinced. More budgets for promotion and marketing is highly recommended. A makeover of all the pictures…get a professional website designer. Why just structural change… how do you stop corruption?

  75. BrianB on Sat, 3rd May 2008 1:14 pm 

    There is no argument that some states will be better off in a Federalism, especially their politicians. Pols who have no chance to win a national are more likely to support Federalism. Cosmopolitan pols, like Joker, naturally finds the idea distasteful. What is important is not what pols think. The last thing we want is to let them spearhead any major changes in government. Let them practice fiscal restraint, let them remove pork barrel. That’s what they can do and they are not doing it. Major changes such as shifting to parliamentary or a federal form of government should be put in the hands of the same people that “scribbled” the 1987 Constitution. Does this sound tempting to anybody?

  76. KG on Sat, 3rd May 2008 6:04 pm 

    Leytenian,
    Please don’t get me wrong…like in boxing sometimes it is better to stay down when knocked down.

    I woulkd like to agree with almost everything that BrianB said. Like we are bored with the present setup,the elimination porkbarrel,etc.About the constitutional commission with members of the past concom crafting the new one ;as long as they won’t make it as reactionary to the past as to what they did in 1987,where they just bulldozed the 1973 constitution,by removing even the good parts.

    Now on the commenter to allow trial and error and learn from experience,kahit na plantsado na ,napagdebatihan na,nakapagplebiscite na ,sa trial and error pa din ang bagsak nito.

    I saw only the Cebu stand on Federalism,I was waiting for the Mindanao side dahil para sa Mindanao conflict daw ito.

    We still do not know how would they propose to uplift the poor provinces,will piggy back with rich neighbor province in the same sate,solve that?
    Lots of questions that only trial and error can answer:Will we finally do away with porkbarrel?Will it exacerbate the regional animosity?Will it promote civil war?(where did that come from?)And lastly, will it solve the Minadanao conflict?

  77. ricelander on Sat, 3rd May 2008 8:23 pm 

    Federalism is a bad bad idea.

    Federal governments were first independent states before they agreed to form a federation. The direction is from separate units to one whole; tendency is towards integration Pimentel and company are proposing to create states from one small nation. The direction is reverse: from one whole to separate units; tendency is toward disintegration.

    And why eleven, not twelve states, thirteen? Sus, pagkaliit-liit ng Pilipinas hinatihati pa lalo. Gusto yata gawing bopis.

  78. ricelander on Sat, 3rd May 2008 8:40 pm 

    Break up the monopoly of the oligarchs to multiply economic opportunities not break up the republic to multiply political opportunities. In the absence of widespread economic opportunities, there is disunity. Who is otherwise a CEO of a conglomerate, he would be a state official sucking the blood out of the national coffer.

  79. leytenian on Sat, 3rd May 2008 8:47 pm 

    Hi KB,
    “Will we finally do away with porkbarrel?”

    we can do away pork barrel with the current administration if we would like to. with the new state, it MIGHT start with a pork. sound’s like Cebu is wanting their money back. when customer is not happy of what they are paying ( revenue generated to the whole economy), the tendency is to complain, retaliate and be against it. Cebu thinks they are submmiting too much money to our Central funds and release of funds is being delayed. And cebu is experience enough to sustain. that’s why they want structural change.

    Will it exacerbate the regional animosity?
    it may or may not but policies, such as rules and regulations, sanctions and penalties will prevent this risk to happen. Legal aspects/ written contracts must be implemented to prevent conflict to happen.

    Will it promote civil war?(where did that come from?)
    maybe not, we filipinos have been in war, a war within.
    i think there will be negotiations.

    And lastly, will it solve the Minadanao conflict?: maybe, it really depends how our policies will be made. there might be a different set up for mindanao but this type of information will be privilege information. lol. yes,Mindanao is high risk for riots.

    Administration must have accessed to financial transactions for each state- federalism. It can freeze funds if war is possible, penalties for non performance and anything that put us all in danger. again, contracts and legal aspect type of policies must also accompany every new policies just in case this option is taken.

  80. ricelander on Sat, 3rd May 2008 8:49 pm 

    Let me insert:

    In the absence of widespread economic opportunities, there is disunity as people quarrel of the little that is left. He who would be a manager/supervisor of a business firm sees opportunity in becoming a mayor instead…

  81. UP n student on Sat, 3rd May 2008 9:24 pm 

    To MrG: You should put on your website these ricelander words:

    Break up the monopoly of the oligarchs to multiply economic opportunities not break up the republic to multiply political opportunities.

  82. UP n student on Sat, 3rd May 2008 9:34 pm 

    Federalism is the search for economies of scale; many independent units organizing into one to benefit each other. One would think that if there majority-agreemtnt among the congressmen/senators that there is inequitable distribution of revenue from the income tax, then there will be at least one BILL offered to remedy this situation.

    And I thought mlq3 had complained once that the Executive Department’s powers over the provinces has waned (as evidenced by many individual provinces saying that they will NOT send rice to metro-Manila).

    Federalism is being floated by politicians posturing and maneuvering. [And then, there is cha-cha for parliament.]

  83. DevilsAdvc8 on Sat, 3rd May 2008 9:37 pm 

    i like federalism. our culture has always been geared towards federalism. let the states run by a bad leader wallow and let the states run by a good leader prosper. we should abolish the lower house altogether and retain the senate.

  84. vic on Sat, 3rd May 2008 9:47 pm 

    Again we as a country started from 12 autonomous, independently governed colonies (10 provinces and 2 territories) and the Original Union started in 1867 with only Four Provinces and Alberta Joined in l905 and Newfoundland as late as l949 and the rest in between. Nunavut the 3rd territory was just a creation of partition of one of the two territories in l999 and joined the same year.

    And Twice Quebec attempted to Get OUT of the Confederation, the second one a close 51% to 49% in favour to stay. The reason why PM Chretien came up with Sponsorship Program to make Quebecois wanted and better off staying in the Union and that Program resulted in Corruption Scandal. The current government declared Quebec now a Nation within a Nation, and whatever that means (same as its designation as Distinct Society, I guess)but the Quebecois like the New Designation and the Separatist Movement in the Province is now not as strong as in the Past.

    So, from 12 (now 13) into One Federal State, so the question why break the ONE into a Dozen or More?
    It’s just like multiplying the current problems now by the same numbers..

  85. DevilsAdvc8 on Sat, 3rd May 2008 9:53 pm 

    So instead what are the Chinese doing with their hoard of dollars. They are converting it to tangible assets. Primarily are oil, food reserves and strategic metals and resources. What are the rest of the surplus dollar countries doing with theirs- they are building public capital goods -(infrastructure) and investing their hoard in the blue chip companies of the West. They very well realize that their startegic asset in oil is tradable for food resources anytime anyday.

    and wtf are we doing with ours?
    we let our dollar reserves rot in hell until it hits us that the dollar has become utterly useless paper.

    McCain will win the entire thing and the world will be in for more royal screwing. before his presidency is over, the US will kneel before China.

    not to worry, our nation will be no more to care too much about anything else. well, at least not the Philippine Republic as we know it.

  86. UP n student on Sat, 3rd May 2008 10:06 pm 

    Devils-A says : Let the states run by a bad leader wallow and let the states run by a good leader prosper But federalism is only a partial-solution to this goal. A prosperous-state can still find itself outvoted by the other members of the federation.

    To really do “what-is-mine-is-mine”, a prosperous state has to secede. Having seceded, the prosperous state can secure its borders to prevent people from “no-jobs” provinces from fleeing into the prosperous state.

  87. PhilwoSpEditor on Sat, 3rd May 2008 10:37 pm 

    Let me see…

    @ricelander

    “Break up the monopoly of the oligarchs to multiply economic opportunities not break up the republic to multiply political opportunities. In the absence of widespread economic opportunities, there is disunity.”

    The Oligarchs won’t go down without a fight, not under their little baby puppet named GMA. As I posted above, I more or less agreeing with the federalism proposal, as an option. But I also agree about the fact that federalism is only a structural change and it may not affect the mindset of these various corrupt politicians.

    But how do you propose we do it? How do you propose to multiply economic opportunities without giving an effective measure of autonomy to other regions and cities (Yes, I acknowledge the various methods they’ve created and implemented to lessen this centralization… And yes, I’ve seen what’s it done to some successful cities and other not-so successful areas)?

    @leytenian

    “And lastly, will it solve the Minadanao conflict?: maybe, it really depends how our policies will be made. there might be a different set up for mindanao but this type of information will be privilege information. lol. yes,Mindanao is high risk for riots.”

    We already gave Mindanao a near autonomous state with ARMM.

    Mindanao is not (Please emphasize the not) high risk for riots. I’ve stayed there for 3 years and well, they’re already in many ways self sufficient and peaceful. It seems that you haven’t been there or you keep hearing the bad news there. The best thing we have to do is not to tick them off and help it teach itself to be fully self-sufficient from the finance that it has to siphon from the Nation coffers.

  88. leytenian on Sat, 3rd May 2008 10:50 pm 

    “(as evidenced by many individual provinces saying that they will NOT send rice to metro-Manila).”

    sounds like the voices from the provinces have been ignored from the past. what comes around goes around. this type of management in terms of team building and maintaining good relationship has never been established.
    I haven’t seen long term conflict between Luzons and the visayans. Not sure with mindanao, there was history of conflicts. History that our current administration must take consider with careful planning.
    Our Senate is definitely not acting as one. One will shoot the other on the foot or at the back.
    There’s too many of them to manage and too many headaches.

  89. leytenian on Sat, 3rd May 2008 10:55 pm 

    PhilwoSpEditor :

    “Mindanao is not (Please emphasize the not) high risk for riots. I’ve stayed there for 3 years and well, they’re already in many ways self sufficient and peaceful. It seems that you haven’t been there or you keep hearing the bad news there. The best thing we have to do is not to tick them off and help it teach itself to be fully self-sufficient from the finance that it has to siphon from the Nation coffers.”

    that’s good news. i really wanna hear representation from mindanao. i was basing my opinion according to history. i didn’t mean to discourage them and thanks for the update.

  90. jakcast on Sat, 3rd May 2008 11:29 pm 

    “But I also agree about the fact that federalism is only a structural change and it may not affect the mindset of these various corrupt politicians.” – PhilwoSpEditor

    Don’t kid yourself that federalism will lessen corruption. At best, it will decentralize corruption; at worst, graft-ridden deals will be made with ignorant, uninformed regional officials, without nary an idea that they’re being screwed left, right, and center. Please revisit Hanjin and SMBA.

    ‘The road to hell is laden with good intentions.’

  91. Madonna on Sat, 3rd May 2008 11:52 pm 

    My only concession to this federal shade of politics is for the the abolition of the national elections of senators. Make it by region, say two senators out of the 24 from each region. Our regions have been established due to a strong shared history of culture and ethno-linguistic make up of our diverse country. Why tinker with a working structure, when every school age kid to every senior citizen knows where he or she comes or live region-wise or ethno-linguistically?

    The national stature of Senators have also resulted into a perpetual antagony between the Senate and the President. Indeed sometimes Senators act as a fiscalizer and sometimes, a lot of times that is, they merely grandstand. The arrogance and brazeness of Senators can be traced to the fact they have been elected nationally — as the President and Vice PResident — not to say, mounted on as much as an expensive campaign.

    Albeit, I am for the preservation of the Senate because of its strong history and Filipinos have more or less accepted and see it as a political institution. The role of the Senate as prescribed in the 1987 Constitution serves the country well enough.

    Of course, we still need congressmen — that is the essence of representative democracy. But let’s take out their pork barrel and instead pay a handsome monthly salary — the same for the President and all government functionaries (the way Singapore does it) so that graft will be minimized.

    We can do all these via constitutional amendments. But stress on: AT THE RIGHT TUME. When no party or parties will evidently gain from a Cha-Cha exercise.

    But to a full blown federal system — complete with mini legislatures and mini presidents / governors? Idiotic, foolhardy and quixotic!

  92. leytenian on Sun, 4th May 2008 12:18 am 

    “But let’s take out their pork barrel and instead pay a handsome monthly salary — the same for the President and all government functionaries (the way Singapore does it) so that graft will be minimized.”

    agree with taking out pork barrel. handsome salary? maybe not. as far as the visayan is concern, they are imcompetent. i will not be worried if they lose their jobs.they already owned commercial buildings, jollibee franchises, and gas stations, and many more.they are already establish so they could care less except fear of losing their wealth ( like unexplained wealth) . i wonder where that money come from. I don’t beleive, it was coming from their hardwork for the people. It was coming from the people’s hardwork.

  93. baycas on Sun, 4th May 2008 2:04 am 

    influential blog?

    raja petra’s caliber…

    Let’s send the Altantuya murderers to hell

  94. Madonna on Sun, 4th May 2008 2:11 am 

    leytenian,

    First, tell me where do you think all those wealth of congressmen come from and all their business franchises? Inherited wealth? Sure, some of it and for a few, most of it from inherited wealth. But a lot of the money and continuing source of money comes from the machinery of pork barrel and all the wheeling and dealing they entail. That’s why political clans continue to thrive because they know there’s a lot of moolah to be made.

    Second, do you know how much a congressman, senator or even the president is entitled to earn per month under the law? Let’s say we ditch the pork barrel, who in his right mind would ever want to run for office given a measly sum of P35K and 40K a month given the huge responsibilies?

    If you don’t pay good money, the talented and competent may be attracted to government service due to the prestige or the vanity of it all, but they will never stay. At least give the hopeful politico the chance to earn the equivalent of how much a country manager in the private sector earns, and there will be less reasons for public corruption.

    Say, kindly figure your chicken and egg situation first so you know where to place the issues of competence or making them lose their jobs rationally.

    Our nation has yet to raise to a certain level of unity and patriotism that may be one of the causes of why the country remains poor. Now, to plunk down federalism in the face of this could lead not only to break-up of the republic but to intra-regional competition that will not be healthy or will be humanely equitable, given the current disparaties in the resources and socio-economic status of the regions.

  95. leytenian on Sun, 4th May 2008 4:24 am 

    “Let’s say we ditch the pork barrel, who in his right mind would ever want to run for office given a measly sum of P35K and 40K a month given the huge responsibilies? ”

    true.. but i think the president makes 500,000 a month and senators make over 200,000 a month. our mayor in a very small town makes 25,000 month. SK, makes 18000 a month. for a bigger town and city, a mayor maybe makes over 50,000 pesos/ month. they make good money at least for philippine economy plus bonus on corruption. not sure ha.. but that’s what i’ve heard.

  96. leytenian on Sun, 4th May 2008 4:48 am 

    you are right, 500,000 pesos a month of salary to the president is very small if it’s the case. a nurse with over 5 years experience in the US can make easy $10,000 a month in california, NY and bigger US cities with or without overtime. an establish filipino doctor can easily make over 700000 up to 1.5 million pesos a month anywhere in the US.

    my point, we might need to remove non performing leaders and pay the remainings higher salary.

  97. ricelander on Sun, 4th May 2008 8:29 am 

    The Oligarchs won’t go down without a fight, not under their little baby puppet named GMA. As I posted above, I more or less agreeing with the federalism proposal, as an option. But I also agree about the fact that federalism is only a structural change and it may not affect the mindset of these various corrupt politicians.

    But how do you propose we do it? How do you propose to multiply economic opportunities without giving an effective measure of autonomy to other regions and cities (Yes, I acknowledge the various methods they’ve created and implemented to lessen this centralization… And yes, I’ve seen what’s it done to some successful cities and other not-so successful areas)?

    Let competition in.
    Remove that stupid 40/60 ownership limit on the Constitution. Philippines for Filipinos ring beautifully on the ears but it also serves to preserve the oligarch’s monopoly. For who could provide the 60% to a foreigner’s equity of P1B? A cooperative of Filipino farmers and market vendors? And who will be the “commissioners”, pray tell, who would facilitate the necessary arrangements to conform with the constitutional limit. Ahh, but the oligarchs find allies in the nationalists who see foreign investment as equivalent to loans whose interests we pay with profits they “unduly” derive from their operation by exploiting our resources and labor. So to keep the Philippines for the Filipinos, the government takes the initiative instead to fill in where our native oligarchs would rather not go, take out loans from foreign banks and go to business itself, employ a politician or a relative for its top officials who run the business to the ground then beg the government for subsidy, run it aground again, and so on and so forth…

  98. justice league on Sun, 4th May 2008 9:12 am 

    Leytenian,

    I misjudged how someone is going to formulate her answers to your reply.

    Obviously I’m not perfect.

    But still you have persisted with your idea on “leaders” even when I implied to you an idea on your reasoning.

    Maybe its time to ask you if you realize that your idea of removing leaders is by destroying the “office” of such leader.

    In your initial idea; you ended up with only 7 senators and no lower House. What happens then when you feel that 5 senators are non-performing? You’ll destroy the 5 “offices” too and let us end up with only 2 Senators to represent the legislature?

  99. ricelander on Sun, 4th May 2008 9:21 am 

    We should have broken up that oligarchy a long time ago but they are a tenacious lot who “won’t go down with a fight”, in your own words, and we are a people who would not want blood in our hands, who would settle for peace at all cost, so this.

    We go land reform, it’s a “peaceful” measure. Too late. Centuries of bondage have robbed him all of his entrepreneural spirit. He saw his father run to the hacendero in times of crisis, he will do the same in his time. Give him land now, feeling orphaned from his traditional benefactor, he would wonder what he’s going to do with it. In a moment of crisis, it’s the land that would go first, sold to the original landlord most likely.

  100. leytenian on Sun, 4th May 2008 9:26 am 

    justice league,

    there’s a policy for replacement if performance are not acceptable, of course. for example , if a bank president is fired due to commingling, the vice president will replace. this type of policy will keep our leader performing at his/her highest potential.

    my initial idea of 7 was just to start a discussion. it doesn’t mean that if i date Juan I will marry Juan. good day

  101. jude on Sun, 4th May 2008 11:24 am 

    “We should have broken up that oligarchy a long time ago but they are a tenacious lot who “won’t go down with a fight”, in your own words, and we are a people who would not want blood in our hands, who would settle for peace at all cost, so this.” – ricelander

    And, as Mr. Quezon points out, this oligarchy is capable of reinventing itself. They can mushroom like a hundred Michael Corleones who would deodorize their nefarious family enterprises (in our clannish society, politics and business are always kept within the family).

    Mr. Quezon cited the Villafuertes in Bicol, wherein father and son seemed on a collision course due to differing political styles. He also cited the Ejercitos of San Juan, where JV Ejercito has added a fresh new dimension to the family’s stranglehold on local politics.

    The ruling classes cannot be underestimated. After all, they have access to the best education and, arguably, to a superior gene pool. Not only will they not go down “without a fight”, they can even preclude a fight by pulling the wool over the masses. They can always transform themselves into more palatable, trendy versions of the older generation.

    The tale about the Villafuertes may make a good story. Just as the Ejercitos, the Escuderos, the Zubiris, the Cayetanos, the Duranos and other political families appear to reinvent themselves.

    But behind the smiles and the glamor, the fact remains that the ruling classes are simply trying to perpetuate their hold on power and the economy. Those seemingly fresh-looking faces conceal the fangs of a predatory breed.

    In the meantime, the hapless masses are mesmerized into submission.

  102. KG on Sun, 4th May 2008 11:59 am 

    “. It’s like charging everything on our credit cards and yet income will only grow 5% or less a year and credit card companies charging 8% to 24%. One day, it’s a personal credit crunch. Just like our economy. So who is responsible? If we have to compare our economy to our own individual situation, do you think we will use more of our credit card limit and be burried in debts?”
    Leytenian,
    I don’t want to call anybody clueless or even naive,not even shooting from the hips.
    Granted that this is an example to start a conversation.
    Ang labo eh. You are saying that we can no longer pay our leaders,so why not remove unperforming ones?????
    Comparing our economy to the individual’s credit card usage;
    Where did that earning income 5% or less come from? most people are lucky enough to have a salary increase in two years,o sige me lusot ka ,it is indeed 5% or less. As to being trapped in credit card payments that can happen if you pay just the minimum payment, all the time.If you do not use your card up to near its limit, need not worry the credit line will be reduced.
    As to the 8% to 24%,after enjoying a teaser rate of 0 % for a year, it will jump to above the prime rate to compensate for the”services” the credit card company has invetested in the customer, use the card for a couple of more years without having to default and go over the limit eventually you will reach that 24 % apr and eventually the defalt rate of above 30%,that is why we have balance transfer offers every now and then.

    I just don’t see any connection with debt crunch to the salary of leaders, whether it is performace based ,or otherwise; or even gdp vis-a-vis the salary of our leaders, which you are trying to connect the dots with .

  103. mang_kiko on Sun, 4th May 2008 12:02 pm 

    jude, ganyan talaga ang society, mayroon Slaves at Masters, pero sa ibang progressive na manga Bansa, tulad sa Amerika at Western Europe at iba pang sa Asia, ang manga “slaves” ngayon may mas maraming opportunidad maka-ahon at maka-alpas sa pagiging Slaves Forever. Ang Dahilan po ang manga Masters as di makaiwas bumayad nang kanilang tamang Buwis, at namamahala (sila mismo) ay hindi Pabor or Biased toward sa manga Masters para ma perpetuate ang kanilang Status.

  104. myphil on Sun, 4th May 2008 12:18 pm 

    COMELEC Philippines: http://www.comelec.gov.ph/laws/toc.html

    Comelec Philippines has no clear rules and regulations in terms of conflict of interest. This commission should not allow any family members to run in line with another family member on the same province or the same jurisdiction. This will prevent political dynasty. Political Dynasty regardless of what they do , good governance or bad governance is always unethical and is no longer acceptable to our economy.

    It also do not have a page nor a phone number for whistle blowers.

    It doesn’t have an investigative body to investigate candidates for buying votes.

    All acts do not have monetary policies ,suspension or removal from office if vote buying occurs. It also do not have a required numbers of individual who can petition against a candidate if guilty of vote buying.

    It’s home page does not say… Vote Buying are unethical and illegal.

    This commission requires a major makeover….

    What a Shame…

  105. Alixander Haban Escote on Sun, 4th May 2008 12:34 pm 

    In his “Mi Ultimo Adios,” Dr Jose Protacio Mercado Rizal y Alonzo Realonda, the national hero of the Philippines, rendered her wife, Josephine Leopoldine McBride Bracken, as only a very good poet can, immortal: “Adiós, dulce estranjera, mi amiga, mi alegría” (Farewell, sweet foreigner, my darling, my delight). But who is Rizal’s Dulce Estranjera?

    Read “Josephine Bracken: Jose Rizal’s Dulce Estranjera” at http://www.socyberty.com/History/Josephine-Bracken-Jose-Rizals-Dulce-Estranjera.111115 and find out.

    Please leave your comments. Thank you very much.

  106. myphil on Sun, 4th May 2008 12:53 pm 

    KG,
    5% or less salary increase is based in the US.
    Credit crunch or our national debts.

    taking our current GDP only as an example, it is reported at 5% growth rate since 200 something?
    if our economy ( income) is growing at 5% or less but we are borrowing at 12%… we lose 7% especially if our debts our close to its limit. it’s unsustainable in the long run.

    US GDP is lower than we have. probably growing at 3% a year but the US is the bank or the lender making 8%-24% from its borrowers. just an example… to connect the salary of our leaders, it simply means that our economy cannot sustain unless our leaders will help our revenue grow to pay down debts. Not sure if the IMF will offer a 0% teaser rate to our corrupt government. For credit scoring, we are probably considered poor.. less than 580 on individual FICO score. With this score, i’mnot sure if i can get a good rate nor a teaser rate. There is a scoring system for countries. i am curious how much interest rates our government is paying.

  107. hvrds on Sun, 4th May 2008 1:00 pm 

    It is not hard to understand why it is hard for a few pinoys to understand their position.

    Those who led the country into political independence simply imported a political system and structure that required a mature and autonomous economic system and structure.

    However that autonomous economic system and structure has never existed in the Philippines. It still does not exist.

    Enligthened government brought it into existence.

    Hence the political system on paper has become bastardized and distorted to reflect the economic realities. So what’s new?

    Most pundits on this blog also are under the same mistaken illusion on the meaning of autonomy. From the aspect of individual economic autonomy – choice, which will determine an individuals ability and free will to make a political choice. So will the communities economic autonomy determine their ability to make an autonomous political choice.

    Now pray tell is there a broad mass with economic autonomy in the country? Hello is anybody home????

    Most pinoys are psychologically incapacitated into being dependent by their lack of economic opportunities. They loose their ability to become psychologically autonomous.

    Then you have their religious leaders ratifying this dependency.

    How can you become politically autonomous when the bulk of the population has become psychologically retarded into dependency? Then the schooling system embeds this psyche through the rote system of memorizing and obedience and disdains those who question why?

    This system crushes incentive and innovation.

    Then those in power do not believe that those below their station have the capacity to rise above their station.

  108. justice league on Sun, 4th May 2008 3:29 pm 

    Leytenian,

    I don’t think I have the right nor even would I want to meddle in who you want to date or even marry.

    But if you put forward an idea anywhere; anyone has the privilege to assume that you are vouching for that idea unless you clarify yourself.

    You stated that
    “there’s a policy for replacement if performance are not acceptable, of course. for example , if a bank president is fired due to commingling, the vice president will replace. this type of policy will keep our leader performing at his/her highest potential.”

    Then there will be a NEW bank president and a NEW bank Vice President whose salaries will be paid by the bank and not just bank with a new president but without a vice president

    So I suggest you try to reconcile your thoughts with your previous statements of:

    “6. It will eliminate non performing leaders
    7. Labor costs for the Senate will be decreased because we are only paying 7 instead of 24
    8. The lower house will be eliminated and labor cost will also decrease.” (Your initial assertion)

    “i understand. i was referring to non performing leaders. We don’t have enough revenue to pay them salaries. It’s unsustainable…..Too many non performing leaders to pay plus Debts are so high, accumulated from the past and current situation.”

    “my point, we might need to remove non performing leaders and pay the remainings higher salary.”

    Right there in that last quote; if your last reply to me shows your concern with those who will replace non-performing leaders, then why does your post on May 4, 4:48AM deal only with the “remainings” with no word on the “replacements” of non-performing leaders?

    KG gave you wise advise; best you follow it.

    MyPhil,

    The idea was that everything was charged. I surmise that includes building infrastructure,acquiring machinery, etc…

    Let’s say I buy a refrigerator, fan, T.V., etc… this year and charged it all on my credit card. If what I bought is sturdy to survive my use; hopefully I won’t be buying the same appliances next year and hopefully several years hence.

  109. The Ca t on Sun, 4th May 2008 9:37 pm 

    If we have to compare our economy to our own individual situation, do you think we will use more of our credit card limit and be burried in debts?”

    I will still caall a person clueless who compares a nation’s borrowing to an individual’s use of his credit card.

    1. An individual mostly used his credit card to buy consumable/durable goods; government borrows for a project that may be generating revenues that over time it liquidates the liabilities or a project tha brings about development that contributes cost reduction that coud be traslated into savings.

    2. an individual pays the credit card on a short-term basis with fluctuating interest rate depending on the prime rate; government pays long term oftentimes at a fixed interest rate with a provision for balloon payments if necessary.

    3. an individual borrows from a financial institution particularly a credit card company ; government borrowings can be made from public like the treasury bonds, pw bonds that can be floated thru domestic or international financial brokers.

    The proceeds from the borrowings are not used for payment of salaries or for ordinary and recurring expenses of the government.

  110. leytenian on Sun, 4th May 2008 9:50 pm 

    hvrds,
    “It is not hard to understand why it is hard for a few pinoys to understand their position”
    “However that autonomous economic system and structure has never existed in the Philippines. It still does not exist.”

    agree..

    “From the aspect of individual economic autonomy – choice, which will determine an individuals ability and free will to make a political choice. So will the communities economic autonomy determine their ability to make an autonomous political choice”

    very true… you are right, it still does not exist.

    “Most pinoys are psychologically incapacitated into being dependent by their lack of economic opportunities. They loose their ability to become psychologically autonomous.”

    I agree with you and now I understand Benigno.

  111. leytenian on Sun, 4th May 2008 9:58 pm 

    The cat,

    “The proceeds from the borrowings are not used for payment of salaries or for ordinary and recurring expenses of the government.”

    How do you know? This is where you missed my point. Meaning there’s no corruption in the Philippines.You are right credit card debts is for individual borrowing. It was only used as an example to test the ability of comprehension.

  112. Bencard on Sun, 4th May 2008 11:08 pm 

    has anybody noticed the average pinoy’s tendency to treat borrowings as income, especially those from relatives? over the years, i have learned to consider certain loans i made as “giveaways”. that way, i save myself from a lot of anger and frustration, if not outright insanity.

  113. jakcast on Sun, 4th May 2008 11:28 pm 

    @ Leytenian,

    I believe that hvrds’ point is that the Filipinos have been denied political power because of the absence of economic power; hence a mindset/attitude of dependency among Filipinos was created.

    Continuing, this situation had been fostered not only by the oligarchy-dominated government but also by the Catholic Church, the educational system, and other reasons.

    However, your previous posts above seem to say that federalism will solve the problems of corruption by way of transparency of financial transactions(?).

    Are you saying that our decades-old problems will be solved by change of structure and procedures?

  114. leytenian on Mon, 5th May 2008 12:12 am 

    jakcast,
    “Are you saying that our decades-old problems will be solved by change of structure and procedures?”

    Maybe. The Visayan has been wanting to be independent and so with Mindanao.

    hvrds said:” However that autonomous economic system and structure has never existed in the Philippines. It still does not exist”

    “Then those in power do not believe that those below their station have the capacity to rise above their station.”

  115. The Ca t on Mon, 5th May 2008 5:38 am 

    How do you know? </blockquote.

    See, you do not even know how budgeting is done in the government or even in the private sector as to how they estimate the expenditures and how they are going to be funded.

    And then you criticize officials that they should know financial data. HAHAHa

  116. The Ca t on Mon, 5th May 2008 5:41 am 

    It was only used as an example to test the ability of comprehension.

    whose comprehension? Who are you testing? A person who likes you do not know how government borrows?

  117. The Ca t on Mon, 5th May 2008 5:44 am 

    This is where you missed my point.

    and your point is? Sabog ang mga example mo iho o iha.
    Even a high school student would not get your point.

  118. leytenian on Mon, 5th May 2008 7:34 am 

    “As of mid-2007, the total National Government debt per Filipino is P43,649.57 with each individual coughing
    P7, 012.12 just to service the debt.
    http://www.manilatimes.net/national/2008/jan/20/yehey/top_stories/20080120top2.html

    In principle, governments collect taxes from its constituents to generate revenues to finance its projects and programs. Yet, in the Philippines, the politics of taxation takes on a different meaning—it goes to debt service and it’s not even enough.

    Minimum wage of 100 pesos/day is 3000/month or 36,000 pesos a year cannot service our national debts of
    P7,012.12.

  119. jude on Mon, 5th May 2008 8:03 am 

    This nagging fear that the Philippines will be balkanized is most likely due to the fact that nationhood was imposed on these islands by colonizers. Before Magellan, the islands were an agglomeration of clans with autonomous, if not idependent, control over their areas. There was no evolution from within that would cause the nation to unite. Kung baga, naging hinog sa pilit yung pagbuo ng bansa natin. It was caused by outside forces, not by internal circumstances and natural evolvement.

    In the case of Mindanao, for example, it is geographically and culturally more suited to be part of Malaysia than the Philippines. This inherent incompatibility causes the irritants that lead to frequent conflicts and aspirations for independence.

    Colonization hastened our development as a country. But it arrested our development as a nation. Kaya “half-baked” yung pagkabansa natin.

  120. leytenian on Mon, 5th May 2008 8:07 am 

    The cat,
    “See, you do not even know how budgeting is done in the government or even in the private sector as to how they estimate the expenditures and how they are going to be funded.”

    Yes, you are right in principle and theory. The P7, 012.12 just to service the debt is just to pay interest.

    So I am assuming that each filipino is charge at 16%.
    P 7012.12 divided by P43,649.57 (actual debt) and yet income ( minimum wage) is only growing at 5% (hoping).

    My Reply: May 2nd, 2008 at 9:33 pm .”Revenue from government should not rely on borrowing, overseas remittances and Aids from other countries. It needs to generate income by employing its people”

    hvrds said: “Most pundits on this blog also are under the same mistaken illusion on the meaning of autonomy. From the aspect of individual economic autonomy – choice, which will determine an individuals ability and free will to make a political choice. So will the communities economic autonomy determine their ability to make an autonomous political choice.”

    The sad part is, most filipinos don’t even have credit cards and yet there is hidden debts attach to their heads.

    I am just trying to make people aware that it’s not just about basic finance.It is about understanding what’s really going on with our country’s economic health. We must be pro-active and vigilant on how well our leaders manage the people’s money. I’m not here to argue with anybody and use theory and principle. I am more on practice,skills and result of one’s performance.

    hvrds said:” However that autonomous economic system and structure has never existed in the Philippines. It still does not exist.”

  121. KG on Mon, 5th May 2008 8:26 am 

    Leytenian.

    If it was a test the ability of comprehension of anyone;then
    almost everyone will fail ,buti pa si Myphil, naintindihan ka.

    I tried,but I have to say I failed your test.

  122. leytenian on Mon, 5th May 2008 8:37 am 

    No one failed KG… my opinion is actually not for everybody and is not better than anybody. malabo lang talaga ako.i admit.. lol good day.

  123. KG on Mon, 5th May 2008 8:44 am 

    “I’m not here to argue with anybody and use theory and principle. I am more on practice,skills and result of one’s performance. ”

    The CAT and The Justice League gave practical scanarios,not theoretical.

    Ay,ambot sa imo.Bagsak talaga ako sa comprehension test mo.

  124. mlq3 on Mon, 5th May 2008 8:48 am 

    jude, what is the difference between us and other countries in the region who are also nation-states because of colonialism?

  125. jude on Mon, 5th May 2008 9:51 am 

    jude, what is the difference between us and other countries in the region who are also nation-states because of colonialism? – mlq3

    Malaysia is dominated by the majority Muslim Bumiputra. Ethnic Chinese and Indians, imported by the British colonizers, are very adaptable and have no nationalist aspirations. States within Malaysia are also given quite a bit of autonomy, keeping separatist sentiments in check. A relatively small population also makes things more manageable for the central government. An emergent Muslim fundamentalist movement, which wants to make the nation less Western-oriented, could cause problems in the future.

    Indonesia is more problematic, although its having a vast Muslim majority manages to keep things together. However, ethnic Chinese have felt the recurring ire of the native populace and millions have been killed. East Timor broke away and is now independent. Before that, the Indonesian government ruled with an iron fist and ruthlessly crushed any nationalist aspirations. The areas which are Hindu do not feel at home with the Muslim majority. Aceh has separatist tendencies. The Indonesian half of New Guinea may someday go the way of East Timor. Colonialism also arrested Indonesia’s development as a nation and, presently, it has to undergo a natural evolution until it attains maturity. That process could involve a lot of pain and violence.

    Singapore is dominated by ethnic Chinese who are largely united by their aspirations for wealth. Despite this, Lee Kwan Yew had to rule for many years with a strong grip in order to keep everyone in check.

    Indochina had to go into violent revolutions and wars. It is still in the process of evolving, although the catharsis it has undergone now give countries like Vietnam and Cambodia a deeper sense of nationhood and gravitas. They are now touted to be the next dragons in this region of the world.

    While I personally do not advocate upheaval, it is often needed to undergo a process of maturation. In a post above, ricelander says: “we are a people who would not want blood in our hands, who would settle for peace at all cost, so this.”

  126. hvrds on Mon, 5th May 2008 11:21 am 

    It would also be smart if people would concentrate on the total public sector debt that includes all GOCC’s plus the debts of LGU’s. Do not be misled by the government’s differentiating between the national government debt and the total public sector debt.

    Please also note that the strengthening of the peso also would bring down the peso equivalent of the total public sector debt that is denominated in dollars.

    The ability of government to continue to pile up debts is simply made more possible by the continued rise of OFW earnings.

    The domestic economy is financially not able to become independent since it is saddled with horrendous debts. That is the story of the Philippines.

    We follow what our creditors tell us to do.

    Now if we were to add to this the total foreign debt of the private sector you will know why the Philippine economy had the multilaterals drill itself a second asshole for us to get it while we are bent over.

    Meanwhile Big Mike the the Queen in waiting enjoy watching.

    RP Public Sector Debt at P5+ trillion in Q3 ‘07
    GMANews.TV – Thursday, April 24
    MANILA, Philippines – Public sector debt stood at P5.011 trillion as of September last year, 2.8% more than the P4.86-trillion deb

  127. hvrds on Mon, 5th May 2008 11:23 am 

    Cont’d from above

    Finance department data released Wednesday showed that the public sector debt as of the end of the third quarter was equivalent to 77.6% of the countryÂ’s gross domestic product.

    Out of the total debt, foreign obligations amounted P3.352 trillion, while domestic loans was at P1.659 trillion. – BusinessWorld

  128. liling magtolis briones on Mon, 5th May 2008 12:06 pm 

    Dear Manolo,

    I too am very concerned about the current debates on federalism. The financing side is left out. Time and again, I have pointed out that shifting to federalism will result in supporting through taxes three levels of government, three sets of bureaucracies and of course, 3 sets of politicians. The big issue is how to share the huge burden of the national debt?

    My ABS CBN Interactive column last week was on financing federalism.

    warm regards,

    Liling

  129. KG on Mon, 5th May 2008 1:36 pm 

    Leytenian,

    I have to apologize for the unnecessary remarks.

  130. The Ca t on Mon, 5th May 2008 7:00 pm 

    Yes, you are right in principle and theory. The P7, 012.12 just to service the debt is just to pay interest.

    Gawd, you accused me of being theoritical when I have the experience of preparing budgets in the government and in private.

    We are talking about sourcing of salaries and then you come up with debt servicing. sabog ba utak mo?

  131. The Ca t on Mon, 5th May 2008 7:11 pm 

    So I am assuming that each filipino is charge at 16%.
    P 7012.12 divided by P43,649.57 (actual debt) and yet income ( minimum wage) is only growing at 5% (hoping).

    But honey, these minimum wage earners are not paying the debts, principal or interest because these people are not even paying income taxes not because they are tax evaders but because they fall at the income level when they do no have to pay so why the comparison?

    Currently the US total debt per person is US$ 31,100 while the minimum wage is 11.00 to some states that when translated to monthly for 40 hourrs a week , that’s roughly US 1,800 a month.

    The ratio of total debts to GDP is 66.6 per cent.

  132. leytenian on Mon, 5th May 2008 8:14 pm 

    the national debt is debt incurred within the central administration. very little of these debts were used to finance projects to the provinces. Federalism proposal may be the result that the provinces should not be liable for odiuos debt.
    this country is running using debt financing and revenue ispaying it back at 70% of incomeand only 30% of our revenue goes to social services.
    These debt are owed from both domestic and international lenders. majority is paid to local lenders or investors. some of these investors are the OLIGARCH. I am assuming they are charging 16% for our bonds that the government sold at a discount when it needed to raise capital/ cash flow to pay non performing leaders, pay past due debts, pay current expenses and sacrificing the obvious needs of the country.

    The provinces are very aware of this high leverage financing just to service the Central. No wonder the provinces wanting to have their own. can you blame that. Please google search Philippines debts and try to understand where did they spend most of that money. I can gurantee you,, they are mostly in manila and most of those projects are not even making revenue. Our government were investing into projects with negative returns.

  133. leytenian on Mon, 5th May 2008 9:15 pm 

    The Cat,

    “Gawd, you accused me of being theoritical when I have the experience of preparing budgets in the government and in private.”

    Might be a bit inapropriate for you to say that I accused you. That’s not me. I’m sure you have the experience in putting theory into practice. I have nod doubt your performance is excellent. I can tell you can read financial data because you know where revenue is derived from and what expenses are for.

    The sad part honey, your perfect work will not matter to the top. They can edit and delete it so that overall income and expenses will result to profit. To prove my point ,please research Philippine debts. One more thing,do not defend Lito lapid. I think you can read financial data better than him. good day…

  134. The Ca t on Mon, 5th May 2008 11:14 pm 

    The sad part honey, your perfect work will not matter to the top. They can edit and delete it so that overall income and expenses will result to profit.

    are you an auditor? or you just read this from a book.

    The sad fact, ineng is that in financial statements analysis, you just do not look at the raw data.

    you look at the comparative analysis. You do not look at the bottomline. you look at the trends and the expalanation of the causes of the trend.

    Why should i researh for the philippine debts .What has that to do with the your staement deletion and editing of income statements? You mean the window dressing of the financial reports?

    honey,in the government, we do not call it profit. Because just like the non-profit entities, governments are not operating for profit.

    The right term is the change in the operating cost which is derived by deducting the operating costs from the revenues. the result may be deficit or or excess.

    The balance sheet is not also the same as in the private sector. instead of showing the balanced assets, liabilities and equities, the net position which is the difference between the assets and the liabilities.

    I am not defending Lito Lapid. I am calling your comment that the senators should know the basic financial data STUPID when you yourself can not distinguisn cash flow from revenue.

  135. The Ca t on Mon, 5th May 2008 11:17 pm 

    this country is running using debt financing and revenue ispaying it back at 70% of incomeand only 30% of our revenue goes to social services.

    you do not call it debt-financing. You call it deficit budgeting which is practised not only in the Philippines.

  136. TonGuE-tWisTeD on Tue, 6th May 2008 1:57 am 

    hala, nagkaka-technicalan na…

  137. Bencard on Tue, 6th May 2008 3:00 am 

    tongue-twisted, talagang mahirap magbigay ng kuro-kuro kung di kumpleto ang kaalaman. mabibisto at mabibisto. eka nga, “a little learning is a dangerous thing”.

  138. leytenian on Tue, 6th May 2008 4:36 am 

    The cat,

    “You call it deficit budgeting which is practised not only in the Philippines.”

    it doesn’t matter sweetie. but here’s an info… http://www.investopedia.com/terms/d/debtfinancing.asp

    sure i read the books and even study the books. but i understand where you coming from. what matter here is our country has a huge debts. are you concern of it at all? or you don’t care?

  139. leytenian on Tue, 6th May 2008 4:48 am 

    The cat,

    bakit baligtad sa atin: deficit budgetting.. there’sno such thing of that word even on finance or economics… hahaha. ganyan talaga ang pinas. baliktarin para sabihin ok na… it’s called budget deficit…ining…
    http://en.wikipedia.org/wiki/Deficit

    our government is budgeting deficit not budgetting income? … naku nabisto nga.. LOL good day, the cat

  140. balatucan on Tue, 6th May 2008 4:29 pm 

    Genghis Khan united the warring tribes of Mongolia and raised the most successful armies in the world. Chinese Emperor Shi Huang Ti conquered the divided kingdoms of China and united the nation. The Japanese stop the petty wars of daimyos and become one.

    Here in the Philippines we do the opposite. There are so many whiners out there especially those in the Visayas. Basically because these Visayas is composed of islands its where you can find the most regionalistic of all, the Ilonggos, the Cebuanos, the Boholanos and the Warays.

    They have inward perspective. Their idea of nationshood is concentrated on their islands. I always think it stupid that we have to break ourselves apart. The sooner we break up, the sooner we will become like ancient china.

    We have never as a nation when we are under the unitary setup. I dont think breaking us apart would make a difference. More likely, it will worsen as I our deep seated divisions will now be magnified.

  141. KG on Tue, 6th May 2008 4:30 pm 

    Leytenian, have you even tried clicking on the link to see that Investopedia is a Forbes media company,it’s not even pinoy.

    Sorry ,if I keep on pestering you,but please if you don’t want to stay down like I said, then at least defend yourself properly.

  142. leytenian on Tue, 6th May 2008 8:07 pm 

    KB,

    ambot sa imo uy,lol. to satisfy you my friend ,here’s a better link on debt financing.http://pfr.sagepub.com/cgi/content/abstract/27/6/571

    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=884298

    http://www.allacademic.com/meta/p_mla_apa_research_citation/0/8/3/8/5/p83850_index.html

    The concept is almost the same: budget surplus/excess/profits/positive leveraging
    or
    budget deficit/ losses/ negative leverage

    Read manolo’s new article about federalism, he made mention about national debt. If we are going to have separate states, then there will be a question of which state should contribute more or less in terms of servicing our debts. The proposal of pimentel remains weak. It did not address the big problem… our national debt.

  143. The Ca t on Tue, 6th May 2008 8:14 pm 

    bakit baligtad sa atin: deficit budgetting.. there’sno such thing of that word even on finance or economics… hahaha. ganyan talaga ang pinas. baliktarin para sabihin ok na… it’s called budget deficit…ining…
    http://en.wikipedia.org/wiki/Deficit

    Deficit budgeting is the term we used as against balanced budgeting.

    instead of budgeting the income as against the expense which may not be realistic, government does the deficit budgeting whereby the government decides how the deficit is going to be financed and this budgeting is all about, planning as to sources.

    This is your definition of debt-financing from the investopedia. “When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid.”

    Working capital is different from operating expenditures of the government.

    Working capital for a private firm may refer to the expenses during a period when no revenues are earned yet by a new company. It is budgeted only for a number of months.

    Capital expenditures refer to purchase of assets like machinery or a system which will revolutionize or improve the current system being used. Or intangible expenditures which can be amortized over a period of time. Capital expenditures are incurred only once and that is the time when the decision is made.

    Operating expenses of the government are recurring and are incurred the whole fiscal period and therefore budgeting is done annually.

    Of course, I can give you my own definitions because I have been teaching these craps.

    A dumbell is still a dumbell even if he carries an encyclopedia.

  144. leytenian on Tue, 6th May 2008 8:34 pm 

    balatucan,

    “Here in the Philippines we do the opposite. There are so many whiners out there especially those in the Visayas. Basically because these Visayas is composed of islands its where you can find the most regionalistic of all, the Ilonggos, the Cebuanos, the Boholanos and the Warays.”

    In my own opinion, I don’t think the Visayans are prejudice among each other. I don’t think that is the issue or even whining. We never had history of misunderstanding among each other. People in our country not only the Visayans whine, complain and sometimes beg to the government to find answers :why we are still poor, why corruption has not been solved and among any other bigger issues.
    The proposal from the Visayans is not strong enough. Cebu has not consulted the other islands. Just like Pimentel has not consulted the others about his Federalism proposal. This will definitely result to increasing problems in the long run especially if state economy will not improve. The concept of federalism may not work at this current situation. Our national debts must be addressed and cannot be ignored in terms of policy making.

    On the positive side, few leaders are trying to make a solution whether good or bad. But at least they are doing something to come up with a better solution. Their proposal may not be appropriate at this time but it is something that our current administration cannot ignore. The hope of coming up with a better solution might be the result of all negotiations. So will see what’s next..let them debate and get tired of one another. it’s been that way,anyway.

  145. jakcast on Tue, 6th May 2008 8:44 pm 

    @ Leytenian

    Please read Mr. Antonio Abaya’s article on federalism. It might give you a fresh perspective.

    http://www.manilastandardtoday.com/?page=antonioAbaya_april29_2008

  146. The Ca t on Tue, 6th May 2008 8:44 pm 

    the difference between debt-financing and deficit budgeting is this;

    In debt-financing, the obligation can be avoided by totally scrapping the project. a good example is the NBN deal.

    when the decision to abort the project due to bribe scandal was made, the debt to china in the form of loan is also scrapped.

    in deficit budgeting- the decision to raise the financing of the deficit is a must or else the projected expenses will never be met.

    the incurrence of debt can not be avoided.the expenses can not be avoided unlike in the first example when scrapping the project also scraps the projected expenses and expenditures.

    the decisions being made are:

    1. what type of debt is going to be incurred?

    2. what types of bonds are going to be issued.

    3. what is the maturity period?

    4. what interest rate is attractive to sell the bonds.

    The diffence between the bonds issued by the government and the bonds issued by the private firms is that the government bonds are safer in terms of risk because the government guarantees the payment.

  147. leytenian on Tue, 6th May 2008 8:54 pm 

    jackast,

    thanks for the link. i’m over with federalism issue. i’m more concern now with our national debts. so will see…

  148. leytenian on Tue, 6th May 2008 10:17 pm 

    The cat,

    The cat,

    “that the government bonds are safer in terms of risk because the government guarantees the payment”

    true, that’s why our government are in debts because it guarantee payments to bond holders even if the projects did not result to positive outcome,revenue,profit,or excess. we have a budget deficit. when revenue cannot service the debts payable ( due or maturing) then the government can issue more bonds ( debt financing) to cover payments. When bonds are sold , it is added as cash to Cash flow statement but will become liability in our balance sheet. When liabilities exceeds assets, you know what’s going to happen.

    when our government keeps issuing more bonds or in layman’s term ( print more money) , this will increase the money supply and will result to Inflation.

    If government wil not issue bonds due to due to risk of inflation, the government will have a tendendy to borrow using assets as collateral. Spratley deal may be relevant to why we borrowed money from China.

    That’s why a push for financial transparency is very crucial or else ,we filipinos will be burried in debts or will be owned by someone else authority if we cannot service our debts, of which might be the case.

  149. The Ca t on Wed, 7th May 2008 12:20 am 

    if the projects did not result to positive outcome,revenue,profit,or excess.

    hindi mo pa rin maintindihan ang concept.

    Give up na sana ako sa kabobohan mo. sorry. i normally keep my cool and try to be civil. but you are pushing so much. You discuss stuff that you do not understand. I was decided not to Waste my time educating a no- brainer- trying to- be intellectual when I read this.

    when our government keeps issuing more bonds or in layman’s term ( print more money) , this will increase the money supply and will result to Inflation.

    At sino naman magaling ang nasabing in layman’s language, issuing bonds is printing money. When you issue bonds, you are not printing money. YOU ARE ISSUING DEBT INSTRUMENTS. unlike paper money, you can not use the bonds, go to the store to buy rice. The bonds have maturity date and a face that can be sold for a premium or a discount. What CB prints are the paper bills ang tawag ay pera. Ang nakalagay doon ay isandaan, ang makukuha mo ay isandaan.

    Whoever said that these two are the same is BOBO.

    and honey goverment don’t print money to pay its liabilities.

  150. The Ca t on Wed, 7th May 2008 12:21 am 

    correction: with a face value that can be sold at a premium or at a discount.

  151. leytenian on Wed, 7th May 2008 5:52 am 

    the cat,, it is or…

    take note of simplicity…
    http://homepage.univie.ac.at/neil.foster/TEACHING/MACRO/OHPS03.PDF

    You can be resourceful if you want to. All your questions and doubts can be answered thru the internet. You don’t need to show your attitude especially that you are also teaching. It’s embarassaing for a teacher to say ” bobo”. It seems to me that I am the teacher now in this discussion and you are the student..No offense but some words being said may sometimes reflect back to the person who said it.

  152. leytenian on Wed, 7th May 2008 6:03 am 

    The cat,

    “and honey goverment don’t print money to pay its liabilities.”

    how do you know in reality? pelase support your statement.

    “YOU ARE ISSUING DEBT INSTRUMENTS. unlike paper money, you can not use the bonds, go to the store to buy rice. ”

    Maybe but still support your statement..

    “The bonds have maturity date and a face that can be sold for a premium or a discount. What CB prints are the paper bills ang tawag ay pera. ”

    Maybe, still support your statement.

  153. KG on Wed, 7th May 2008 9:24 am 

    leytenian,
    I give up,just listen to your self :

    “YOU ARE ISSUING DEBT INSTRUMENTS. unlike paper money, you can not use the bonds, go to the store to buy rice. ”

    Maybe but still support your statement..”

    Try going to store to buy rice,let us see what happens.

    “The bonds have maturity date and a face that can be sold for a premium or a discount. What CB prints are the paper bills ang tawag ay pera. ”

    Maybe, still support your statement.”

    It is not a maybe,so she does not need to support it.

    sorry, let’s call spade a spade.

    you are shooting fromn the hips.You are concerned with our national debt,you are given the basics and you turn to being on the defense mode.

    treat that exchange with the cat,as a learning experience.
    We learn from not just from those who disagree,but also from the one who notices.I will surely learn from those exchanges, in that case, thank you for prolonging it,but enough of it, already.

    Just a heads up, fyi, you were dealing with a former dean of the business department of a certain university there,so she definitely knows what she is talking about,and I have to be blunt on this, and you do not know the hell you are talking about, in those exchanges. That is why I asked you if you can’t stay down,at least be able to defend yourself properly.

  154. viktor12 on Wed, 7th May 2008 10:17 am 

    Hi people, its been a long while. Anyway I came accross a new blog site of Atty. Adel Tamano’s group called the young turks. They are posting interesting articles, do check them out at oppositeofapathy.wordpress.com

  155. leytenian on Wed, 7th May 2008 12:48 pm 

    KG,

    Thanks for the info.But my concern now is this:
    “former dean of the business department of a certain university there”
    a dean saying “bobo” what kind of dean is he/she?
    to make our discussion more peaceful at your end, this topic is about federalism appeal… national debt cannot be ignored and should not even be ignored. One should at least think about it on how it affects us and the next generation. If you only care about yourself and unable to go beyond yourself except sharing your own specialty of work without grasping reality then it won’t matter who is wrong or right. If you can only leave your theory and technical knowledge behind and share your thoughts on this topic , it might make others to see both sides of the situation. Whether i’m right or wrong with my opinion, its’ not your problem. It is me who will deal with my own embarassment not you. I can always defend myself. No hard feelings and let’s move on..

  156. KG on Wed, 7th May 2008 1:05 pm 

    Victor12,
    Thanks! I was looking for that one,I was half awake during their ANC interview(replay of strictly politics).

    Leytenian,

    I understand!

  157. benj on Thu, 15th May 2008 1:28 am 

    NO VOTE FOR VISITSAGADA.com?!

    This is an act of treason!

  158. batanggenyo on Wed, 2nd Jul 2008 10:59 pm 

    hi…you may try to visit my blog. see if it suits your qualifications. i just started it last week of april and i have growing number of readers….

    http://www.batanggenyo.net

  159. cvj on Wed, 30th Jul 2008 11:49 am 

    Manolo, it’s not yet 2010 (fortunately or unfortunately).

  160. Tax Joven on Thu, 14th Aug 2008 8:31 am 

    I have good new for Sen. Pimentel. We can reap the benefits of federalism without a cha-cha, Simply substitute LGU for State in his proposal, and voila, we unearth a formula for economic development, and for freeing the country of a voracious and inept Gloria without unseating her!

    20/80 sharing? Good. Excellent. So why not now? Why wait for a cha-cha? And, why share the windfall with a State when the LGU’s can have it all to themselves? Some of us are afraid that LGU’s will use extra funds for beautification or for lining up officials’ pockets. But the State can do it too, can’t they.

    The thing is, it is easier to train and police LGU’s than States. States are unwieldy compared to LGU’s which has existing operational guidelines and systems for financial checks and balances. Citizen participation is more plausible or feasible in an LGU than in a State. We want change? Let’s do it now while we still can.

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