The annual budget brouhaha
July 9, 2008 by mlq3
Filed under Daily Dose
An interesting theme from commentaries overseas: a kind of all-pervasive mental and moral exhaustion afflicting national elites. Fin de siècle? The 1968 of our times (see contrasting views on that important year by Tom Stoppard and Tariq Ali; Filipinos had their 1968 in, well, 1970… it takes time for fashions to filter through…)? David Sirota thinks that in the United States, the possibility of a grassroots revolt ought to be considered:
America is in the throes of a powerful new uprising right now..
…this uprising is happening on both the Right and the Left. Like most revolts, it is rooted in a backlash to an Establishment widely seen as corrupt and morally decayed. This uprising has more picket signs and protests than pitchforks and pistols… It is a social phenomenon that is impacting all aspects of public life — our pop culture, our media, and most significantly, our upcoming national elections. It could take our country in a very different direction — perhaps positive (think universal health care, an end to the Iraq War, new trade policies), perhaps frighteningly negative (think immigrant bashing and a war with Iran).
Though today’s uprising has been going on since the two major explosions of the last decade — 9/11 and the Enron disaster — polls indicate that it is now intensifying in ways not seen before. Surveys reveal that the public despises its current president, and more importantly, that America is suffering a crisis of confidence in government as an institution. As Scripps Howard’s 2006 poll found, “anger against the federal government is at record levels” and “widespread resentment and alienation toward the national government appears to be fueling a growing acceptance of conspiracy theories” — most prominent being the one suggesting our leaders helped plot the 9/11 terrorist attacks.
The political topography resembles that of the last major uprising in our history — the one that took place in the 1970s. America then as today faced the same crises that have catalyzed uprisings since colonists tossed tea over the sides of boats in Boston harbor: among others, an energy emergency, a national security quagmire, a recession, a financial meltdown, and an attack on democracy.
As that uprising gained steam, Democrats nominated an outsider candidate for the presidency (sound familiar?). But when that outsider was elected he and the Democratic Party didn’t effectively represent that uprising – and that uprising did not go away. On the contrary, it became more intense. And by 1980, conservative organizers used the candidacy of Ronald Reagan to channel that revolt into the full-fledged conservative movement we’ve been living under for a generation. Over the next two decades, this conservative movement changed America domestically (tax cuts and social service cuts), internationally (massive increase in the military budget), and politically (wholly changed electoral map).
This same pace of change could be upon us again today — though one key indicator suggests the specific kind of change could be different. According to Gallup’s biannual survey of attitudes toward social institutions, Americans’ disgust with government resembles that of the late 1970s — but the variation between then and now is the antipathy toward Corporate America. Whereas in 1979 one in three Americans told Gallup’s pollsters they had confidence in big business, today a little less than one in five express the same confidence. In 1979, almost two out of three citizens said they had faith in banks. Today, only two out of five say the same thing.
The trend bodes well for progressives. Conservatives’ close affiliation with big business puts them at a disadvantage in the Left-versus-Right competition to harness the current uprising…
Of course, today’s uprising could be squelched completely, with neither the Right nor the Left capitalizing on it. Many institutions inside our government and our political parties exist specifically to crush populist, mass-based revolts.
Jared Bernstien responds by saying,
David is obviously writing about bottom-up uprisings, in many cases, movements that are a reaction to government failure. But in my experience, these groups eventually are demanding that the government alter its policies. So we’ve got to think on both bottom-up and top-down tracks.
And the problem for the top-down track is that government is in big trouble. I’m speaking at the federal level, but let’s not get too romantic about local cases. I haven’t seen much evidence that Albany works that much better than DC.
There are lots of reasons for this, but certainly one of the main ones is that if you elect people who explicitly prophesize that government is the problem, they will fulfill that prophecy with a vengeance. And yes, they’ll enrich their cronies along the way.
The problem cuts deep into the agencies… The depth of dysfunction is astounding, and it’s going to take years to repair.
David reminds us that our country was founded partly on “the right of the people to alter or abolish” destructive government. I’m in the “alter” camp, and I’d like to hear someone with David’s insights and movement experience hold forth on what it’s going to take to get there. What steps ought we be taking now that will ultimately give progressive uprisings a public conduit through which their goals can be achieved?
Are there echoes in how the police are despised, even attacked, in China? See Cracks in China’s Armor. Is this all in marked contrast, perhaps, to what’s going on in Thailand, where those formerly characterized as reformists are now advocating the dismantling of parliamentary democracy, according to The Asia Sentinel’s anonymous correspondent in Thailand’s “New Politics†Charade:
The New Politics turns out to be a startlingly reactionary proposal to move Thailand’s parliamentary system towards a form of appointed corporatism, or what might be called a selectoral democracy. Thirty percent of MPs would come from elections, perhaps one per province, and the rest of MPS would derive from various occupations and associations. Sondhi says the proportion is not fixed, it’s up for debate.
The rationale for wanting to dismantle Thailand’s electoral system is evident: pro-Thaksin forces keep winning elections. And as Thaksin is said to represent everything bad about Thai politics, he can not be allowed to wield power directly or indirectly. Thus, for Sondhi, and it would seem the PAD leadership as whole, there is now a need to bring about a revolution in political representation.
The idea of examining alternatives to electoral democracy is not without some merit, for it is common knowledge that massive amounts of money are required to win parliamentary seats, making parliament a millionaire’s playground and a source of further monopolization and corruption. It wasn’t always so, Sondhi told the rally. In the 1970s socialist politicians in Thailand could get elected on the basis of their ideology and popular support, but the emergence of dirty politics in the 1980s crushed any such possibility in the present.
The New Politics has interesting antecedents. The PAD leadership has clearly been speaking to military figures (this is now well documented in the Thai language press) who tried to stifle the emergence of parliament in the 1980s. Indeed, selectoral democracy nicely fits with corporatist visions of the old “Revolutionary Councilâ€. The Council, to which General Chavalit Yongchaiyudh was said to have an association, held that elections merely led to parliamentary dictatorship and proposed a form of corporate representation to realize the “general willâ€.
A former communist, Prasert Sapsunthon, was the inspiration for this Thai appropriation of Rousseau, the French theorist of the social contract. Prasert became a leading intellectual among military circles calling for non-elective forms of democracy. When the Revolutionary Council effectively declared itself a provisional government during the political crisis of 1988 the elected Chatichai government took it to court for treason. It then faded into obscurity, but its ideas have never quite gone away, finding support among small rightist groups and even in some labor circles.
The New Politics is unashamedly pro-military and even codifies the conditions under which military intervention may occur. Sondhi has spoken of four conditions for military intervention: when charges of lese majeste are not acted on; when a government is incompetent; when corruption is rife; when a government betrays national sovereignty.
This has striking parallels to many discussions taking place here in the Philippines (e.g., “Should the military be kept out of politics or does military interventionism represent a deus ex machina moment to be ardently desired?” or “The problem with elections is that the electorate elects idiots”, see smoke and Verisimilitude), and reminds me of something I brought up when Adrian Cristobal died: the enduring triumph of Marcos’ concept of a New Society helps explain why Edsa contained the seeds of its own destruction.
The papers today report P1 hike for jeepneys, buses; P10 for taxis. The transport sector has to be placated. Senator Escudero lays down the basis for the next round of placating -of workers- as reported in Inflation cancels wage hike; hope pinned on new law. The Catholic bishops have to be placated, too: Gov’t open to lowering, not scrapping, EVAT on oil.
The problem of course is that soothing all these sectors requires money, and proof of the President putting the nation’s money where her mouth is, will be in the national budget.
Former national treasurer Leonor Briones in her column says something germane to yesterday’s entry (and the foreign commentary above), this time from point of view of economists:
Last week, I talked to two eminent economists. One drew a picture of the gathering of a perfect economic storm. To him, all the signals are already making themselves felt: increased unemployment, accelerating inflation, escalating prices, capital flight, and rise in poverty levels. The social consequences of the economic storm are also building up: increase in suicides, rise in criminality , social disintegration, and loss of hope.
So how come people are not rising in anger? The other economist said that all these negative developments did not occur in one fell swoop. They were building up, one after the other. By the time the perfect economic storm sweeps the country, people will be so weakened they will not have the strength to bestir themselves and take action.
She also happens to think Arroyo’s hold on funds, spending habits ‘dangerous’. One presidential habit I’ve heard about, is that the President travels with a stack of blank government checks when she drops in on local government officials; she then fills in these checks personally, a habit that apparently gives professional bureaucrats the Willies.
Anyway, in her column, Briones says the executive department has to redo the proposed national budget, because the macroeconomic assumptions that served as the budget’s parameters have become obsolete in the months since the Budget Call was made in May. Among the assumptions made were: singe-digit inflation, a balanced budget by this year, and a Peso-Dollar exchange rate of 40 to 43 to 1.
The Inquirer editorial for its part, says that real oversight over the national budget is a Mission impossible.
Anyway, the Palace propaganda machine has begun testing potential messages for the State of the Nation Address. If the Palace number-crunchers are, well, number-crunching furiously now, to come up with new economic assumptions for the national budget, Governor Joey Salceda is also batting for his economic plan by claiming it has presidential approval.
So we can expect the budgetary process to pop in and out of the news in the coming weeks and months. For a closer look at the entire process, visit The Philippine Center for National Budget Legislation. And here’s their book: CNBLbook.pdf which provides a crash course in understanding how the budget’s put together, and what it contains. (The Department of Budget and Management website also makes available the Budget Call for 2009 and last year’s national budget-related documents: the General Appropriations Act for 2008, which was based on the President’s Budget Message for 2008,with supplementary material: the National Expenditures Program FY 2008, Staffing Summary FY 2008 and Budget Expenditures and Sources of Financing 2008.)
I’ve reproduced some charts from the Philippine Center for National Budget Legislation’s book, and supplemented them with some charts I prepared for my show.
The first thing they point out, is that the Executive Department dominates the national budget, with the ratios more or less constant. The 2004 budget, for example, has 68% of the monies devoted to, and in the hands of, the Executive Department, with the next-biggest chunk devoted to debt payments, and a relatively slim percentage for the legislature, the judiciary, and constitutional commissions.
The PCNBL helpfully presents past budgets in a color-coordinated manner:
And then explains what the color-coding means:
Most members of Congress spend their time on the yellow portions, and sometimes run out of time to adequately look into the blue portions, which are meant to supplement the expenses of government offices (in yellow). The blue portions are called Special Purpose Funds, and as this chart shows, they total more than what’s spent for the established offices of the government:
A page from the book explains why Alleba Politics, for example, can complain that the National Government is in arrears to the City of Davao, to the tune of 142 million pesos:
Special Purpose Funds are entirely in the hands of the President, who decides when they’re released and to whom -and this includes the pork barrel funds of members of Congress (a surprisingly slender 3% of the whole) as well as the revenue allocations of Local Government Units. In a sense, then, aside from the fixed (because tied to government’s obligation to fund existing employees and offices) national budget, there is a parallel national budget, one bigger than the fixed budget and purely within the discretion of the chief executive.
This chart shows that of these funds, the biggest chunk is for “Unprogrammed” Funds.
These are, in a sense, promissory funds: if they come in, then they can be spent for certain purposes, still pretty much at the chief executive’s discretion. The book explains this in detail:
These “wish ko lang” funds, in turn, have been growing, percentage-wise:
The book provides a glimpse of the budgets and expenses of the major agencies of the government. By way of illustration, here is a set of charts featuring expenditure programs for the different branches of government, and including samples of two constitutional bodies we all adore, the Comelec and the Ombudsman:
Then there’s a focus on some issues raised by the allocations for various departments and their flagship programs, for example:
As well as an introduction to lesser-known budgetary practices such as earmarking funds. One example the book focuses on is the Motor Vehicles’ User’s Charge, which the group says is the third-largest source of revenue for the government, with a tremendous amount collected in a few years:
The charge, levied on vehicle owners, is meant to be specifically used -or earmarked- for a specific fund, with four main programs funded by it:
Subject to two departments:
Here’s the introduction to the fund in the book:
The organization hopes that their book will enable congressmen to deliberate on the budget more wisely and efficiently, and that it will inform the public so that it can keep tabs on budget preparation and execution.
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nash on Wed, 9th Jul 2008 5:17 pm
what is more important is the year-end report.
how is it that senators and congressmen and the executive do not submit a DETAILED report on where the spent the money (and no rounding off to the nearest 1000 please.)
in the UK, with the right to information act, you can look up how much so and so MP paid for taxi or take-away dinner. why can’t we do the same given that congressmen are even overstaffed?
BrianB on Wed, 9th Jul 2008 5:22 pm
Suddenly everyone’s a disciple of Hegel. Maybe the simple answer is George Bush. He made us all reformists.
PSImeon on Wed, 9th Jul 2008 5:28 pm
The annual budget show-and-tell is a charade. This is the time when the “people’s” representatives get to bully the mandarins of the different executive departments, get a friend or relative employed as consultant or contractual, get a road or bridge built nowhere, etc.
After getting these small pickings, the Executive branch gets the Big Bucks.
PSI on Wed, 9th Jul 2008 6:04 pm
Correction:
After “giving” these small pickings…
DevilsAdvc8 on Wed, 9th Jul 2008 10:17 pm
nash, because Filipinos for the most part, dislike social friction. and that one is ONE BIG SOCIAL FRICTION.
btw, if i were speculating, i’d say it’s time to buy a pack of horses and breed them continuously.
i’m inclined to buy one of my own. hey, we gotta prepare for when the cars stop moving!
advice to sulpicio: invest in steam boats
advice to cebu pacific: invest in air balloons
advice to puv drivers: invest in kalesas
advice to GMA: invest in indulgence
so i think the terrorist bogeyman is just that. in a few more years, all these ME/oil-producing/terrorist haven countries will be dirt poor once again.
OIL is finite. STUPIDITY is not. and foresight, a rare commodity.
UP n student on Thu, 10th Jul 2008 12:19 am
to nash : the reason why in the UK, with the right to information act, you can look up how much so and so MP paid for taxi or take-away dinner. why can’t we do the same given that congressmen are even overstaffed?
is that Pinas congress has not passed a Right to Information Law. And it is because the masa people-majority
(maybe with collaboration of the middle-class) keeps electing/re-electing Pinas congressmen and senators who do not see wisdom to passing a Right to Information Law.
nash on Thu, 10th Jul 2008 1:22 am
but don’t we have Freedom of Information act or something…
besides, I saw our congressman publish a year end accounting report but everything was rounded off to the nearest 1000 so hindi kapanipaniwala..
nash on Thu, 10th Jul 2008 1:24 am
ok found it, Article III Section 7 of the constitution.
but you are right, this in no way FORCES senatongs and tongressmen to do correct accounting
supremo on Thu, 10th Jul 2008 1:26 am
‘OIL is finite.’
Agree but oil revenue is not if invested properly. Abu Dhabi’s sovereign wealth fund is estimated at $800 B. The fund is financed by Abu Dhabi’s surplus oil revenue. They recently invested in several financial companies. They also bought the Chrsyler building in NYC.
The Philippine government receives royalties generated from Malampaya natural gas ranging from $400 million to $600 million from the P1.37 per kilowatthour royalties levied by the government for natural gas. Where is the money now?
BrianB on Thu, 10th Jul 2008 1:48 am
Nash,
Even plain old freedom is debatable, freedom of information pa kaya? Inherent in laws is the fear among the people of punishment. With politicians, punishment against them is adjustable to tolerable levels.
UP n student on Thu, 10th Jul 2008 2:40 am
Oil of the Middle East is another instance to question this “There is a god” thing. Just look at the map!!! After the Jews crossed Sinai from Egypt, Moses could have been instructed to head North, South, East or West. Had Moses been directed “Go east!!”, the Jews could have planted their flag in Iraq, Kuwait or Qatar. Had Moses been told to walk south, the Jews could have planted their flag onto Saudi Arabia. So Moses was NOT told to go west (back to Egypt and harakiri — bad choice), but North was no whoopee-doo, either.
There are few spots in the Middle East without oil, and onto one of those few spots, Moses was told to go.
nash on Thu, 10th Jul 2008 2:52 am
Ok lang yan UP n. God loves us too.
How many Miss Universe contestants have won honour and glory for our beloved country? Meron ba from the Middle East? Wala.
BrianB on Thu, 10th Jul 2008 2:53 am
Is that a bad thing? Without oil, Israel managed to become the most advanced and educated nation in the Middle East. Besides, Middle East oil has only been king for 50 years. And there is a GOd, for imagine if they had established Israel and built their monuments on oil-rich areas.
supremo on Thu, 10th Jul 2008 3:05 am
‘Without oil, Israel managed to become the most advanced and educated nation in the Middle East.’
No need for oil. US aid is good enough.
http://usembassy-israel.org.il/publish/mission/amb/assistance.html
supremo on Thu, 10th Jul 2008 3:26 am
‘Oil of the Middle East is another instance to question this “There is a god†thing.’
The Philippines has oil in Sabah.
UP n student on Thu, 10th Jul 2008 3:35 am
To get back “on point” about the budget (and my concern is more moneys due the LGU’s):
The figures about Pasay LGU raises questions. For 2007, is it for real that the National Government shorted Pasay LGU to tune of P66.7-million? Did Pasay sue, or did Pasay just make press releases?
UP n student on Thu, 10th Jul 2008 3:47 am
my definition of “for real” is that there is an enabling law which, if applied, would have forced the National government to turn over to Pasay the P66.7-million. “No law” means fault lies with a lazy irresponsible Congress. “Yes, there is a law” means fault lies with double-dealing Malacanang.
And if Pasay has not sued at all, then fault lies with lazy Pasay, too.
Money is a hardball game. No room for lazies.
UP n student on Thu, 10th Jul 2008 3:56 am
The Philippines has oil in Sabah. :supremo
All religions have depicted their god as using war as a medium-of-instruction. Religion-books written-by-men have passages where the Power Over All has shown favor to a community of people by letting a people win key battles, disfavor by allowing this community to get humiliated, even annihilated in battles.
BrianB on Thu, 10th Jul 2008 4:55 am
Stories of hope in times of crisis.
http://dailystrength.org/blog/182-8-crazy-stories
d0d0ng on Thu, 10th Jul 2008 6:22 am
Wow, 68% of the national budget is spent by the President. The special purpose funds which are entirely discretionary by the President are bigger than the line department budgets.
In addition 40% of the special purpose fund is unfunded and in 2008 it balloons 5 times the 2004 amount.
President Arroyo is taking dividends on her risk-taking adventure in 2004 (Garci tape) election. Not bad as an economic doctorate but showed her flair talent in cooking from 2004 election, pay&kill impeachment to special fund cash machine menu. No wonder, we have that paper bags of money in Malacanang left for the bishops and nobody claimed the source.
d0d0ng on Thu, 10th Jul 2008 7:06 am
This is what my uncle wanted me to do – finance (buy the voters) his political ambition. He guaranteed the return. Since then I became an enemy – no family loyalty. I was totally shocked that my father sided with my uncle.
It is not hard to see how he can guarantee. I mean the President is picking up the tab on 59 hardworking honorable congressmen who accompany her to the recent US trip for pleasure. Just like that – courtesy of Presidential discretionary special funds.
mlq3 on Thu, 10th Jul 2008 7:32 am
upn, the enabling law is the local government code.
http://www.dilg.gov.ph/LocalGovernmentCode.aspx
i don’t think pasay did a press release or sued. but also, the incumbent (opposition) mayor was also replaced and that may have taken care of that. the president is immune from suit, and we don’t have the practice of local governments suing the national government -it’s asking for trouble. even davao, with a fiercely independent mayor, has to plead its case of being shortchanged.
KG on Thu, 10th Jul 2008 7:42 am
following leytenian’s theme song:
about 62.3 percent of our gdp goes to our public debt
no big deal zimbabwe has almost 200 %of it gdp go to debt.
some say, our gdp was bloated last year, then that could reach the 70-80% level
most if not all of it are automatically appropriated and what is worse is we borrow in order to pay.
a portion of hvrds comment (nov 2005)
. That is why we always run out of dollars because we have in reality a trade deficit in merchandise that runs to close to $10B a year. In spite of all the dollars we aearn in exports and remittances we still have a foreign debt of $60 billion. The BSP often boasts that we have $15 billion + in official reserves and another $ 15B + private bank accounts. Do the math. If we earn close over $15 billion in dollars every year why are we in debt to ther world?
the foreign debt is still above 60 billion:62.84 ;2007 estimate
hvrds comment was november 2005
digressing as I always do segue….
his observation on the subprime mortgage crisis yet to come is dead spot on:
Till today the State subsidizes mortgage rates in the United States to make cheap housing available to all.
I have a question if the uS subsidizing mortgages resulted to subprime crisis; what will an oil price deregularization and other subsidies like nfa rice, do to us?
walang epekto,sanay na nama tayo sa crisis eh.
another segue….
Our actual budget deficit counting the AAL is about 3-4% of total GDP.
All this talk about a balanced budget did not take into account the AAL.
BrianB on Thu, 10th Jul 2008 7:48 am
Evolution?
Useless concept since cause of evolution is not human will. If you are tired of the word “reform” it’s no excuse to use a general concept that has little bearing to human struggle. How do you, for example, force businesses to evolve. Businesses like to use the term too but they don’t really mean “evolution” do they. In fact they overuse the word.
Evolution, Manolo, has nothing to do with the choices we make now; evolution simply happens. Forget this concept, it will only distract you.
Bencard on Thu, 10th Jul 2008 8:01 am
upn, i believe an action for mandamus to collect pasay’s or davao’s revenue share would lie against the national government.
KG on Thu, 10th Jul 2008 8:07 am
again with the typos grrr…
will the next admin stop porkbarrel?ano tayo,hilo?
bakit sa mga dyaryo karamihan me utang sa local government ay national govenrnment?tapos malaking bagay talaga ang IRR pag di umabot.
saan babawiin ng local government yan e di sa businesss permits at ang mga empleyado sa daily transactions. ang mga tao din naman di dinedeclare ang actual income dalwang pisong sedula lang ang kinukuha(di naman lahat)
sorry the world is full of cynics.
call it a feed back non loop.how can it be a circle di naman natin kausap ang gobyerno. tayo tayo lang.
i am a consultant for the senate,ano silbi nun,so what?
sure liam is a government employee,now what?
malay natin me iba pa dito,but we respect their privacy,yung ke hvrds ,nasimulan ko na eh, at di ko naman alam ang private life nya at wala naman akong balak alamin ;kaya tama na na alam ko ang pangalan nya.mas marami panga akong alam sa mga nagsahare kahit di ko alam pangalan nila tulad ni d0dong at bencard.si devil’s open yan dahil friendster account ang link nya,but we have the discipline not to pry,ako nga nagpa add pero matagal na akong di nadadalaw profile nya.so there it is you can also see me at friendster thru devils.
all our discussions are that, for the sake of discussion.
tulad ng sinabi ko sa mga proponents ng the value chain has changed because of the internet…
we are not yet there
UP n student on Thu, 10th Jul 2008 8:08 am
to mlq3: i understand that the president can not be sued, but the Executive Branch can (or at least, it should be able to get a case to the Supreme Court that requires the Executive Branch to act consistently with the Constitution or with laws that have been judged to be consistent with the Constitution). But now that I’m typing this response, it occurs to me that Pinas mirrors what is probably also happening in Poland, Turkey, Zimbabwe, China, Egypt, Poland, Greece, Thailand, Indonesia or Saudi Arabia and practically all other countries — the EXECUTIVE BRANCH has practically 95%-authority over government checks.
The only exceptions I have read about will be USA (the federal government has lost to suits by states, cities, even Indian tribes) and Australia, too.
BrianB on Thu, 10th Jul 2008 8:17 am
This is what I’ve been using on this blog for the last year:
http://www.theonion.com/content/video/today_now_how_to_pretend_you_give
leytenian on Thu, 10th Jul 2008 8:35 am
KG,
“I have a question if the uS subsidizing mortgages resulted to subprime crisis; ”
The answer is NO. The reverse happened when subprime mortgagors defaulted their loans, the government then started a program- subsidizing borrowers to keep their homes thru FHA or VA loans but at the current market value.
There was no regulations until the bubble burst then the oil crisis.. It all adds up to a bigger problem in the US. Greenspan lowered interest on home borrowing during the buyer’s market. That contributed a lot of problems. City government where slow on building permit thus demand of homes exceeds supply, pushing home prices to go up… It was not a good combination. I am a victim of these. I have lost all my money… hahahah
KG on Thu, 10th Jul 2008 8:45 am
How to pretend to give a shit about the elctions….
That reminds me of one commenter and his blog si Comelec ako aka a street name in intramuros: postigo
ano kaya ngayari sa kanya? sana di sya yung isa sa nasa news na nadali while crossing the street.
leytenian on Thu, 10th Jul 2008 8:46 am
Arroyo is an economist. She doesn’t know finance nor accounting. She also do not know simple finance strategy and how to grow our country using debt financing. Simple finance .. if we borrow at 8% but then create a project that makes over the 8% like even 15%… then borrowing money make sense. our country is borrowing for projects with no actual return or the return is less than the 8%. those projects are recommended and discussed by Congress and all the executives. Majority have one common skills. Getting commission.
If we cannot grow the borrowed money more than the interest …. then my theme song will be very popular for the next 100 years.
leytenian on Thu, 10th Jul 2008 9:12 am
a good example of project with negative return… a congressman is now on its way to construct a 180 million pesos bridge . his reason is to expedite transport of goods by short cutting route and maybe saving gas…( idiot) .
he does not understand that the island has no way of getting revenue from employment that will exceed the 180 mil budget in the next 5 or even 10 years… this project is a poor investment with negative returns
any bridge or new roads must have tolls to get our money back… but in the provinces… hello where’s the finance and accounting skills i’m talking about. even if the bridge will provide extra 10 million revenue a year from little employment and credit to his lousy project, 10 mil divided from 180 mil, will take 18 years to break even …by the time 18 years come, the bridge will need upgrading due to poor maintenance and maybe will collapse if our natural resources and lack of trees are poorly managed causing landslide…
i’d rather put that 180 mil to buy stocks and sit doing nothing and watch it grow at 8% or 12% annually.
8% of 180 mil will generate 14.4 mil a year. better than the 10 mil example…
A project must have projected income statement and break even analysis. Employment must be created and its revenue must be considered if such project will yield positive return.
I have heard that congressmen will purposely create projects to get budgets. That pork barrel is an attraction and a motivation. Cut it off.
hvrds on Thu, 10th Jul 2008 10:19 am
A simple way for explaining wealth. One is wealthy when one has the power to/of command over labor.
The government confiscates property by statute. So the power over the public purse comes with the power to command. That is the heart of political economy.
In reality and practice the chief executive in the Philippines has almost absolute power of command over the entire public purse and indirectly the market.
1. The GAA is composed of salaries of the three branches and all constitutional agencies. The President is the appointing power of the two higher courts, the heads of Constitutional agencies and GOCC’s. The electoral system is heavily influenced by the power of the purse over the legislature and the Local government revenue allotments.
All GOCC’s that are cash cows are directly under the Presidents control. SSS, GSIS, PAGCOR, NAPOCOR, PNOC.
2. The GAA ic composed of all interest payments of the national government.
4. The GAA is composed of the budget for supplies and maintence of all three branches.
5. The GAA is composed of the budget for IRA for LGU’s
6. The GAA is composed of the budget for capital outlays for public goods.
Where is the oversight and public accountability for all the above???????
Not included in the above is the AAL that cover principal payments that are simply revolving.
Now on the the other components of the total public sector debt both actual and contingent
GOCC debts. LGU debts. BSP debts.
Contingent debts – Private sector debt in dollars and all foreign investments.
The Philippines goes into debt to feed cloth and shelter itself.
It has almost no fiscal flexibility except to keep its IMF credit rating active. That comes at a heavy price to economic and political sovereignty.
In reality our main foreign creditors have the power of command over the Philippines.
The neo feudal state of this country simply enables our landed to collect rent .
A perfect example is the twist in leasing land to the Chinese . It had become politically untenable to lease land directly to the Chinese state. So you simply use a project using one of the main pirincipals of Greater China. Kuok. He is a major agricultural food trader and happens to own and control the Coca Cola company in PRC. His main product is sugar.
This is not about producing agricultural products for pinoys. This is for producing products primarily for export.
The BSP signed currency swap agreements with Japan,. S. Korea and China as an added buffer for reserves.
The BSP has been forced to dip into these swaps to slow the depreciation of the peso as oil bills have surged.
The preconceptions about physical colonization by major powers is passe. That ended towrds the end of the 19th century when the world was almost totally colonized.
One can use the power of wealth to command over poorer countries.
cvj on Thu, 10th Jul 2008 10:31 am
Leytenian, with reference to our previous discussion on what the ‘catch’ could be (in SMC’s Feeding the Future initiative).
http://www.quezon.ph/1877/victory-gardens-and-that-perfect-storm/#comment-861691
I believe hvrds’ comment above may provide the answer.
hvrds on Thu, 10th Jul 2008 10:36 am
For the owners of monopoly capital there is no nation state. There is only profit. Under the era of financial liberalization the Philippines openend up its economy and repealed the unfirm currency act. It opened up its cpaital account and today the country is deeper in debt. Our welathy do not need to keep their wealth in Philippine assets any longer. They all leverage their foreign stashs to do business domestically. Our elite are actually the largest foregin investors here. They get better protections as foreigners here than as domestic investors.
The rendering of the social contract of nation states.
…………..growth in the global economy encourages the development of stateless elites whose allegiance is to global economic success and their own prosperity rather than the interests of the nation where they are headquartered. As one prominent chief executive put it in Davos this year: “We will be fine however America does but I hope for its sake that it will cut taxes and reduce regulation and put more pressure on young people to study in the ways that are necessary for it to be able to keep competing successfully.â€
“The chief executive was sincere and he captured an important truth. Even as globalisation increases inequality and insecurity, it is constantly and often legitimately invoked as an argument against the viability of progressive taxation, support for labour unions, strong regulation and substantial production of public goods that mitigate its adverse impacts.”
Lawrence Summers
FDR raised the top rate of a progressive income tax to 90% at the start of the war years. That lasted till the government of JFK. That was the period that saw the rise of the American middle class.
hvrds on Thu, 10th Jul 2008 10:37 am
For the owners of monopoly capital there is no nation state. There is only profit. Under the era of financial liberalization the Philippines openend up its economy and repealed the uniform currency act. It opened up its cpaital account and today the country is deeper in debt. Our welathy do not need to keep their wealth in Philippine assets any longer. They all leverage their foreign stashs to do business domestically. Our elite are actually the largest foregin investors here. They get better protections as foreigners here than as domestic investors.
The rendering of the social contract of nation states.
…………..growth in the global economy encourages the development of stateless elites whose allegiance is to global economic success and their own prosperity rather than the interests of the nation where they are headquartered. As one prominent chief executive put it in Davos this year: “We will be fine however America does but I hope for its sake that it will cut taxes and reduce regulation and put more pressure on young people to study in the ways that are necessary for it to be able to keep competing successfully.â€
“The chief executive was sincere and he captured an important truth. Even as globalisation increases inequality and insecurity, it is constantly and often legitimately invoked as an argument against the viability of progressive taxation, support for labour unions, strong regulation and substantial production of public goods that mitigate its adverse impacts.”
Lawrence Summers
FDR raised the top rate of a progressive income tax to 90% at the start of the war years. That lasted till the government of JFK. That was the period that saw the rise of the American middle class.
Jeg on Thu, 10th Jul 2008 11:00 am
“The problem with elections is that the electorate elects idiotsâ€
It’s more complicated than that. Our system has been so thoroughly gamed that ‘the people’s sovereign choice’ is based on… nothing. There is no rational way on which a voter can base his or her judgments. It’s not that the electorate elects idiots; it’s just that the electorate doesnt have enough information, and let’s be blunt, the electorate often doesnt know what to do with the information even if they did have it.
There’s also a psychological component. Ive read an article by Conrado De Quiros where he said GK’s Tony Meloto would make a good president, but added that Meloto would probably not want it. (He doesnt, as his speech posted in Expectorants says.) The problem is this: Power is more attractive to the evil man than it is to the good man. An evil man will actively seek it, a good man will shun it. Good men (and women) who are thrust into positions of power do so reluctantly, and would give it up as soon as they can. Evil men (and women) seek it, chase after it, and cling to it if allowed to do so by the people whom they govern; would cling to it if they could get away with it. And if they couldnt, would see to it that their ilk, their cronies, their relatives, their friends, their coterie of evil, would continue in their stead. We are more likely to have a bad government than a good one.
This doesnt mean that all who seek positions of power are evil of course. Im sure there are those who are actually good and would like to see change. It’s just that the electorate wouldnt know one way or the other.
cvj on Thu, 10th Jul 2008 11:27 am
Jeg, that fundamental uncertainty about how a candidate will perform once elected is what makes any “let’s move on” or “let’s wait for 2010″ approach stupid. That we are electing an unknown package is the reason why there should be more people participation in between elections (either individually or via NGO’s) to make sure that promises (either in tone or substance) are kept. After all, even Tony Meloto (if he decides to run), Martin Bautista or our host (if he changes his mind about elective office) can turn out to be the devil in disguise.
While you may have a nuanced view about the electorate, i don’t think it is shared by many in the Upper and Middle Class. I think proposals to regulate elections on their part stem from their feeling of powerlessness in the face of the masa’s numerical advantage coupled with their own sense of intellectual superiority.
UP n student on Thu, 10th Jul 2008 11:47 am
Kuok: This is not about producing agricultural products for pinoys. This is for producing products primarily for export.
Consistent with the Canadian farmers’ observation about loony agricultural policy in 3rd world countries, using farmland to produce flower for export while its national government buying grain from Canada, US, Australia to feed its population.
KG on Thu, 10th Jul 2008 11:57 am
that fundamental uncertainty about how a candidate will perform once elected is what makes any “let’s move on†or “let’s wait for 2010″ approach stupid. That we are electing an unknown package is the reason why there should be more people participation in between elections (either individually or via NGO’s) to make sure that promises (either in tone or substance) are kept.
http://www.quezon.ph/1903/the-annual-budget-brouhaha/#comment-862949
CVJ, An exerpt of Manolo’s article. I am also basing this from your past comments,not only the one cited above.
.Beware of those whose orientation is revolutionary instead of evolutionary. Our revolutionary experience has been derivative and essentially destructive. We were the last of the Spanish colonies to revolt in the 19th century; and it became a revolution led by those who viewed leadership as theirs by right; our First Quarter Storm came two years after the rest of the world was convulsed by student rebellions in 1968 and shocked the rest of society into embracing martial law; and we are among the last nations still blighted by a Maoist revolutionary movement: in both cases led by those who believed in the primacy of zealotry.
It is in democracy-building that we’ve been cutting-edge; we were the first of the colonized nations to peacefully reestablish our independence; we gave the world People Power to “restore democracy by the ways of democracy,†and so we must, in turn, be among the first to transform People Power into something that strengthens, and doesn’t weaken, democracy.
This realization, I believe, lies at the heart of our not having an EDSA People Power IV.
http://opinion.inquirer.net/inquireropinion/columns/view/20080710-147466/Embracing-evolution
Jeg on Thu, 10th Jul 2008 12:05 pm
Yes, that’s the problem. The mutual mistrust between the upper/middles and the masa. The middles especially, since they are the ones who are more in contact with the masa. They have abdicated their traditional role as leaders of the masa and instead identify themselves with the uppers. (Our heroes of the Philippine revolution of 1896 were from the middles.) The masa is now a problem to be solved rather than a power we can use in building the nation.
cvj on Thu, 10th Jul 2008 12:24 pm
Jeg (at 12:05pm), very well summarized. IMHO, that’s EDSA Dos vs. EDSA Tres in a nutshell carried over to Hello Garci and Let’s Move On.
Karl, on “restor[-ing] democracy by the ways of democracy” i agree with Manolo.
http://www.quezon.ph/939/round-2/#comment-25701
leytenian on Thu, 10th Jul 2008 1:04 pm
cvj,
On hvrds comment : catch? yeah… there some good points there.
sounds like kuok has it all. He understands very well that Philippine government guarantees any loan. if kuok invest a little , he will make more. when he makes more, the government will also make ( in the return of numbers, I’m not talking on return of production to our local farmers) .. shangrila has proven itself to be profitable. probably the best 5 star hotel in asia. there’s a good point for our government to invest with the company. if i am an individual , i will buy its stocks.
for our farmers, the government can continue its subsidizing strategy plus on going training.
mab on Thu, 10th Jul 2008 1:09 pm
The bulk of our annual budget goes to debt servicing (P700+ Billion for 2006 and increasing for 2007 and onwards). I think its a matter of time that our government will be “lubog sa utang” and its showing now under the present multiple crisis and tragedies (oil, rice, food, typhoons, etc.).
As quoted by mlq, former national treasurer leonor briones’ “..a picture of the gathering of a perfect economic storm. To him, all the signals are already making themselves felt: increased unemployment, accelerating inflation, escalating prices, capital flight, and rise in poverty levels. The social consequences of the economic storm are also building up: increase in suicides, rise in criminality , social disintegration, and loss of hope…”.
That perfect storm, far worst than Typhoon Frank, is just around the corner. You will know it because government is panicking now on where to source the funds to feed the multiplying numbers of poor Filipinos.
Yet their pockets and bank accounts are already full and even some “in positions” have penchant for luxury…Per Lito Banayo’s column in Malaya one well connect pol already bought a citation jet after making a bonanza from mining… and there are a lot more of them hitting jackpots from…
leytenian on Thu, 10th Jul 2008 1:15 pm
but on a different idle land and continue with agrarian reform.
KG on Thu, 10th Jul 2008 1:33 pm
Indeed ,you have an elephant’s memory. even with google you have to know what you are looking for first.
agree with the involvement of ngo’s role,rather than us treating the catholic church as an ngo and just relying on them to do the talking for us. if they succeed some call them fascists.
the ngos’ role could be more powerful if the one’s doing the oversight can find a way to make things happen.
the ngo should also not let us down; we have the consumer price watch;which says that there would be continuous oil price hikes;how encouraging.
we have the makati business club that keeps on saying, the government has a bad track record in running business so it should stay away from it.
we have the local green peace,who knows nothing but to paralyze the power sector with out ensuring that alternative energy should be in place first; blackmail won’t solve anything.
takutan,bluffing,exposes; that is the name of the game with the ngos and we deserve better.
That goes for the government , as well.
hvrds on Thu, 10th Jul 2008 1:34 pm
“This realization, I believe, lies at the heart of our not having an EDSA People Power IV”
We have temporarily solved the perennial problem of a serious BOP crisis which was the proximate cause of both Edsa I and Edsa II.
The 1972-73 BOP crisis which actually saved and gave Marcos the proximate cause to declare martial law was caused by the most massive debt default and repudiation by the U.S. (in gold) the planet ever experienced. The problems started building up in 1968.
All major political events and turbulence in the Philippines were a result of outside events.
The investment banker Ting Roxas had written a good book on it during the height of the Erap crisis. Ting Roxas was the head of DM’s economic managers then.
Big Mike and GMA spent money like drunken sailors during the period 2001-2004. They were taken to task in 2004 (after elections). But once in power she put the hammer down for the people to pay for what she did to gain that electoral victory.
Roxas’s own personal experiences since the time of Decontrol till today gives one a pretty good insight that we really are not in charge of our own destiny in the Phils.
The events that are transpiring today is a reminder that outside events forces government to react.
Equilibrium scientists are by their own nature reactionary. They are natural agnostics. They are taught that economic science is measurable like the physical sciences.
Hence today you have NEDA who are staffed by equilibrium scientists who do not believe anything that is not physically measurable.
That is why there are no accurate measurements of poverty here in the Philippines.
Since the government does not have the means or funds to collect and maintain hard data they simply make guesses and fashion accounting constructs as instructed by multilateral institutions that insist on having quantitative measurements.
Subsequently you have a rigged set of figures that purport to show a national economy growing but in reality there is no integrated linked division of labor between the three main sectors of the economy. It simply does not exist. The passenger jeepney is an apt metaphor of the national economy.
We are closer to becoming a failed state than a successful one. Our neighbors including Vietnam are better placed to becoming successful states.
MLQ3 description of GMA traveling with blank checks is proof positive that she knows that you buy loyalty in this country.
She has set up the model for the one to follow in her footsteps in 2010.
The closest to her model is Villar. Mukha pang artista. Just watch him use his wealth to buy the Presidency.
UP n student on Thu, 10th Jul 2008 1:34 pm
leytenian : I can think of three to five organizations that will want to lease 1-million hectares and not ask for guarantees from the Philippine government. Won’t even need agriculture-quality land. Pick the right one, and dollar-kickbacks to Yap not likely.
UP n student on Thu, 10th Jul 2008 1:36 pm
to cvj: did you really give in a round-about fashion agreement to Jeg’s statement :
hvrds on Thu, 10th Jul 2008 2:18 pm
The GSE government sponsored Enterprise that is Fannie Mae and Freddie Mac is in trouble.
July 10 (Bloomberg) — Borrowing at Fannie Mae, the government-sponsored mortgage company, has never been so expensive and it may not get better any time soon.
Fannie Mae paid a record yield relative to Treasuries on the sale of $3 billion in two-year notes yesterday amid concern the biggest provider of financing for U.S. home loans won’t have enough capital to weather the worst housing slump since the Great Depression. The company’s credit-default swaps show traders are treating the AAA rated debt as if it were five steps lower. Fannie Mae shares tumbled 13 percent yesterday in New York to the lowest level in almost 14 years.
Chances are increasing that the U.S. may need to bail out Fannie Mae and the smaller Freddie Mac, former St. Louis Federal Reserve President William Poole said in an interview. Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules, he said. The fair value of Fannie Mae’s assets fell 66 percent to $12.2 billion, data provided by the Washington-based company show, and may be negative next quarter, Poole said.
“Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer,” Poole, 71, who left the Fed in March, said in an interview.
Fair value accounting measures a company’s net worth if it had to liquidate all of its assets to repay liabilities. Fannie Mae and Freddie Mac, both of whom have the implicit backing of the government, make money by borrowing in the bond market and reinvesting the proceeds in higher-yielding mortgages and securities backed by home loans.
`Inflection’ Point
Lawmakers in Washington may question Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson at a 10 a.m. hearing today about the financial health of the companies and whether they jeopardize the financial system.
“At some point we’re going to reach that inflection, where the government is going to have to either guarantee explicitly or Fannie and Freddie are going to have be left to fend for themselves,” Peter Boockvar, an equity strategist at Miller Tabak & Co. in New York, said in an interview with Bloomberg Television. “We’re getting to that point where a decision has to be made by Washington.”
The plunge in Fannie Mae and Freddie Mac yesterday in New York Stock Exchange trading led financial shares to their biggest decline in six years and sent the Standard & Poor’s 500 Index into its first bear market since 2002. Fannie Mae shares dropped $2.31 to $15.31 and Freddie Mac declined $3.20 to $10.26, a decline of 24 percent.
`Well-Capitalized’
The government is counting on Fannie Mae and Freddie Mac, which own or guarantee about half the $12 trillion in home loans outstanding, to help revive the housing market. Congress lifted growth restrictions on the companies, eased their capital requirements and allowed them to buy bigger “jumbo mortgages” to spur demand for home loans as competitors fled the market.
Paulson said on July 8 he was pleased with Fannie Mae and Freddie Mac’s efforts to raise capital. Bernanke said the same day the firms need to be “strong, well-regulated, well- capitalized” to provide credit “without posing undue risks to the financial system or taxpayer.”
“We are managing our business and maintaining a capital position that will allow us to fulfill our congressionally chartered mission now and in the future,” Brian Faith, a spokesman for Fannie Mae, said.
Poole is “a long-time critic,” said Sharon McHale, a spokeswoman for McLean, Virginia-based Freddie Mac.
“Freddie Mac is doing exactly what Congress intended when it chartered the company and, more recently, when it passed the Economic Stimulus Act,” McHale said. “We are well capitalized and positioned to continue to serve our vital housing mission.”
Government Ties
While leading the St. Louis Fed, Poole roiled markets in 2003 when he said the government should consider severing its implied backing of Fannie Mae and Freddie Mac and said the companies lack the capital to weather financial market disruptions. In 2006 and 2007 he called for lawmakers to strip Fannie Mae and Freddie Mac of their charters.
Congress created Freddie Mac and expanded Fannie Mae in 1970 to promote home buying in the U.S. The companies’ charters give the Treasury the authority to buy as much as $2.25 billion in each of their securities in the event of possible default.
The government will likely be forced to take over the companies because of the mortgage meltdown, Poole said.
“We know in a crisis the Federal Reserve tap would be open,” said Poole, now a senior fellow at the Cato Institute.
$20 Billion Raised
The bailout of Bear Stearns Cos. by JPMorgan Chase & Co., arranged by the Fed, demonstrates the government’s unwillingness to allow “large, systemically important” financial institutions to fail, he said. Bear Stearns collapsed after customers fled amid speculation the company faced a cash shortage.
“I worry about those institutions,” retired Richmond Fed President Alfred Broaddus said. “They are huge. They dwarf the Bear Stearns issue. In the very worst case scenario, I don’t know how you do it other than extend money and the public takes the loss.”
Fannie Mae and Freddie Mac have raised a combined $20 billion since December to cover losses of more than $11 billion generated since the credit crisis began last year. Freddie Mac has yet to raise a planned $5.5 billion, scheduled for mid-year.
The companies have access to the Fed’s so-called Fedwire payments system allowing them to access funding if needed, said Vincent Reinhart, the Fed’s chief monetary-policy strategist from 2001 until September 2007.
Pre-2006 Mortgages
They can withstand the slump in part because most of their investments are mortgages made before 2006 when lending standards were tighter, making them less likely to default, said Eileen Fahey, a Chicago-based analyst at Fitch Ratings.
“We do not believe they are technically insolvent,” Fahey said. “People seem to lose sight of the fact that a majority of the mortgages that they are holding and are guaranteeing were originated pre-2006.”
Comments by the companies’ regulator this week that they are adequately capitalized also eased concern, said Lawrence Yun, chief economist of the National Association of Realtors in Washington. The companies have about $80 billion of regulatory capital supporting $5.2 trillion of mortgages.
“Just given the size of the two companies, surely the government would not stand aside” and let them fail, Yun said.
Record Yield
Fannie Mae sold $3 billion of two-year notes yesterday to yield 74 basis points more than Treasuries. A basis point is 0.01 percentage point. That’s the widest spread since Fannie Mae first sold two-year notes in 2000 and triple what it paid in June 2006.
The price of credit-default swaps, contracts used to speculate on the creditworthiness of Fannie Mae and Freddie Mac, doubled in the past two months to more than 80 basis points for the senior debt, according to London-based CMA Datavision.
The median credit-default swap on debt rated Aaa by Moody’s was 26 as of basis points as of July 8, data from the credit rating firm’s strategy group show. It was 76 basis points for debt rated A2.
Credit-default swaps are financial instruments based on bonds and loans that are used to speculate on a company’s ability to repay debt. They pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements. A basis point on a contract protecting $10 million of debt from default for five years is equivalent to $1,000 a year.
hvrds on Thu, 10th Jul 2008 2:26 pm
How many people in our country’s government understood the ramifications of a fully deregulated energy market when price discovery would be left to the futures market and not to the physical market itself. A futures market that the Philippines would have no jurisdiction over.
That means all oil companies would be free to price their inventories at the prevailing price in the spot market regardless of the price they paid for it. Hilo ba tayong lahat?????
http://www.businessweek.com/lifestyle/content/jul2008/bw2008078_706271_page_2.htm
“Worse, in states such as Texas, where utilities deregulation means rate hikes for electricity can be based on the futures market price for natural gas, we all paid higher electric bills thanks to Amaranth and its manipulation. Let’s call it the gift that keeps on giving. I should add that at the time, we were told that natural gas supplies were short; but—shades of Enron—one e-mail from Amaranth’s lead trader during this period of manipulation read: “It’s a classic pump and dump…boy, I bet you see some CFTC inquiries [concerning] the last two days.” Click here for that report.”
cvj on Thu, 10th Jul 2008 2:40 pm
Karl (at 1:33 pm), thanks. I agree that NGO’s (and individuals) should not stop at fiscalizing (and protest) but should put forward solutions as well. Where i work, some managers believe that whenever we come to them with problems, we should also come with a corresponding set of solutions that they can choose from. They say that’s because they are not there to solve problems but, rather, to manage them. (Which i guess is why they are paid higher. Go figure.)
UPn (at 1:36 pm), nope. I agreed with Jeg that this was the attitude of the Upper/Middle class. I don’t agree with the attitude itself as it is elitist, and by now you know how much i hate elitists.
cvj on Thu, 10th Jul 2008 3:21 pm
From today’s Strait’s Times, here’s what Singapore’s Lee Kuan Yew says of the current political turmoil in Thailand (and Malaysia but i’m quoting only the Thailand portion):
He sees through the charade of Thai ‘New Politics’.
The Ca t on Thu, 10th Jul 2008 4:55 pm
another prophet of doom. sheesh
The Ca t on Thu, 10th Jul 2008 6:00 pm
i could have believed the book if not for the very subjective analysis.
KG on Thu, 10th Jul 2008 7:19 pm
CVJ,
nod,but when ceos solve problems middlemanagers call it micromanagement;never mind taking credit for it just don’t come up with the solution.
like bart simpson’s favorite line; damned if you do and damed if you don’t.
KG on Thu, 10th Jul 2008 7:46 pm
Looking at the history of OPEc.
It happnened like this humingi ng saklolo ang venezuela sa middle east dahil mas pinaburan ni Eisenhower ang mexico at canada.due to”national security” reasons.
rumesbak sila sa pag form ng OPEC.
the arab israeli wars made it worse.
now history is about to repeat itself with Iran threatening to strike israel and Israel saying that they are not that stupid to do that.
nice campaign platform for both Obama and McCain on how to negotiate.
going back to the sixties
funny that nixon went after vietnam after courting china and ussr.
coke established itself and china; he established partnership with ussr on medicine military and space exploration and of course oil.
they thought they could stop the vietnamese by bombarding cambodia,it backfired,instead of vietnam humbly submitting they went to war.
sabi we were affected by what happened outside,as to why there was martaial law. I guess the evnts above is not even half of the story.
UP n student on Thu, 10th Jul 2008 8:31 pm
to cvj: I can see some things for me to say that Jeg’s sentence:
has enough reasons (e.g. the educational attainment of bottom 30%-in-income-percentil is abysmal) that the sentence is more true than not.
In addition to discrediting it as elitism and that you don’t feel it is true…. what else do you say? I am not the only one who has gotten frustrated when you disagree with a sentence because you say it is from an “elitist mindset”.
UP n student on Thu, 10th Jul 2008 8:40 pm
….it is from an elitist mindset and then stop without providing an alternative solution ( or at least, an alternative view).
leytenian on Thu, 10th Jul 2008 9:02 pm
UP N student:
“leytenian : I can think of three to five organizations that will want to lease 1-million hectares and not ask for guarantees from the Philippine government. Won’t even need agriculture-quality land. Pick the right one, and dollar-kickbacks to Yap not likely.”
from the business stand point, why would shangrila and SMC lease? if land available is for free. what’s the point of SMC and Shangrila being a public company ( i mean selling tsocks to private) if its leasing.
2nd reason: why would shangrila and SMC partner with the other 5 if there’s no guarantee .
the bottom of this : when shangrila makes money and our government is investing , then chances are the government will make money not only from employment revenue but continues corporate taxation that can be used as actual government guarantee.
when government and big corporations with proven profits join together , it is powerful.
the 180 mil bridge of the congressman i mention could have been more appropriate if he partners with hotels, malls and other businesses in the area to also invest with it. his decision making should be based from employment generated from big businesses to assure its expansion in the area and the employment generated from small businesses. why put up a bridge if decision is there’s no actual demand from public.
the philippines has been investing in project with no projected income statement and actual demand from its public.
leytenian on Thu, 10th Jul 2008 9:17 pm
correction: why put up a bridge if decision is not based from public demand.
UP N student:
“I can think of three to five organizations that will want to lease 1-million hectares and not ask for guarantees ”
for the other 5 organizations… I would suggest for them to market its land to corporation directly in partnership and joint venture. In the business stand point, you always partner and join venture with someone who has more than you ( rule of thumb) .
what’s the use if its idle. make money out of it. they can Create a business plan or even they can present it to any Angel Investors. ( the whole package of an actual proposal).
Libby’s , Honda, Toyota, Ford, and any other companies in need of ethanol, food or beverages as its target market for example.
organizations should not wait for things to happen also if its intention is non profit organization to help the people.
vic on Thu, 10th Jul 2008 9:56 pm
The Country’s Balancing Act. When the Program of Ethanol Development and Use was proposed it is more utilizing Clean Energy than saving on Cost, since during the time the program started the Oil cost in the $40/barrel and even at current price the ethanol mix is even more expensive than regular diesel or gas. Now that it’s effect on climate change is even doubtful, but its effect on rise of Food Prices is very Clear, politicians can be forgiven for doing their favourite pastime, Flip-Flop, our Premier was famous for it, but still won a majority for his re-election: He did Flip-Flops, but there are times that Flip Flopping is necessary because of unforseen developments:
Province Premier has Second thought on Ethanol Plan:
http://www.thestar.com/News/Canada/article/457654
Jump in food prices spurs policy shift on 10% gas scheme
Jul 10, 2008 04:30 AM
The province is reconsidering a plan to double the amount of ethanol added to gasoline due to concerns the corn-based fuel is boosting food prices, says Premier Dalton McGuinty.
In a policy shift, McGuinty indicated yesterday he is backing off the plan to require 10 per cent ethanol additives in gasoline in 2010.
“Nationally, it’s going to 5 per cent. The issue for us is whether it’s in the public interest for us to stretch to 10 per cent,” McGuinty told reporters at Queen’s Park. (NOTE: this is Federally mandated Policy)
“We’ve got to pay attention to some of the other developments, including food costs, to make sure that we are not contributing to that.”
The price of corn has doubled in three years in large part due to increased demand for ethanol because of government-mandated fuel-level regulations in the United States and Canada. The use of plant materials for biofuels has contributed to a major increase in global food prices in the past year, which has sparked food riots in 30 countries and threatens to push millions of poor people in developing nations into starvation.
The TTC (Toronto Transit Commission, the city Mass Transit System) is also weighing its biofuel use. It uses a biodiesel blend of 95 per cent ultra low sulphur diesel and 5 per cent soybean oil that is more expensive than regular diesel.
The transit system, in looking at its fuel needs for next year, is reviewing actual environmental benefits and the impact on food prices of using soybean oil in fuel.
“As a result, there is the possibility that the commission may not purchase biofuel in 2009,” staff say in a report for today’s TTC meeting.
An association representing renewable fuel producers yesterday urged McGuinty to stick to his original plan for 10 per cent ethanol.
“In light of the record price of oil, and the need for viable climate change solutions, the case for biofuels has never been stronger,” said Robin Speer, a vice-president at the Canadian Renewable Fuels Association, in an email. “Biofuels cushion the impact at the gas pump by reducing the cost of gasoline by up to 15 per cent.”
There are nine ethanol plants in Ontario, most of which use corn, and 20 across the country.
In April, McGuinty, who has long extolled Ontario’s ambitious biofuels program, denied ethanol was forcing up the cost of food.
“We’ve taken a look at this and we’re convinced that our decision here in Ontario is not having a significant impact because of a whole bunch of circumstances that are driving up food prices,” he said at an agricultural summit April 16.
He has also been pushing the government’s purchase of so-called “flex fuel” vehicles that run on fuel that is 85 per cent ethanol.
Last week, the province announced $7.5 million for research into biofuels made from agricultural waste such as corn husks and manure instead of food crops.
Progressive Conservative MPP Ernie Hardeman (Oxford) pounced on McGuinty’s flip-flop yesterday.
“So, which is it, premier? Is more ethanol a good idea or not?”
cvj on Thu, 10th Jul 2008 10:05 pm
Karl (at 7:19 pm), come to think of it you have a point. It used to be that when there was a technical problem, the executives left the troubleshooting to their techies. Now, with the availability of google, the top execs ask the techies to try out what they found on the web. Quite frustrating as well but perhaps a lesser evil as long the bosses know their limits.
UPn (at 8:31 pm), in my blog, i have already explained why i believe those who possess the elitist mindset are committing a fundamental error in characterizing Philippine Society, and by extension, themselves:
http://www.cvjugo.blogspot.com/2007/05/philippine-society-and-elitist-mindset.html
It is one thing to say that lack of education is a problem or that poverty is a problem, it’s quite another thing to consider the people who have these problems as the problem which seems to be your view. That kind of thinking is what enabled Manuel Gallego III (a member of Benign0’s ‘Get Real Philippines’) to shamelessly propose the forced sterilization of parents of street children. It’s as if, in his eyes, they are less than human and more like pets who can be neutered.
UP n student on Thu, 10th Jul 2008 11:04 pm
to cvj: You give me the impression that the iimportance you give to the Gallegos of this world has impacted your ability to be of help to Pinas poor. Think again education. That the poor of the Philippines are unproductively less educated is true. This problem requires attention. And then there is the other problem (Manuel gallego as evidence) — there are people in this country who proposes trash solutions (castrate them!!!) to the poor being less than able to contribute to the country’s economic activity or quality of votes. [I guess Gallego is no different from the extreme leftists. The oligarchs are the scourge of this earth, kill them all!!!!]
If you can only help with solving one or the other, towards solving which problem will you give your cooperation and effort to?
UP n student on Thu, 10th Jul 2008 11:20 pm
A few elitists (of the elite, i.e. better-educated, generates more income, speaks and writes better English, knows more about the history of Jesus, etcetera) are concerned on education-for-the-poor. Elitists — they think the poor are incapable of helping themselves without help from others.
And some have a mindset of “… I have more important things to do, but here is a check!!” and others actually give both money and their time. So they will work with you even if they know that you want to nullify them.
I have an impression that your “… but they are elitists!!!” stops you from doing the bayanihan-thing.
leytenian on Thu, 10th Jul 2008 11:25 pm
regarding canada’s ethanol… of course, the backing off was taken into consideration that once ethanol supply exceeds demand as global productions are being encouraged, this could mean, the dependency of US from oil reserve from canada will be diminished. the money making machine of canadian oil will decrease due to decrease demand… in the long run, ethanol or other alternatives , might be expensive to start ( supply and demand) but it will slow down effects of global warming. so… short term and long term planning is in the hands of the in charge. i already know that US is not backing off its green program from preventing urban sprawl, green buildings , new building codes for energy savings and car companies are making more hybrid cars… in the long run…. oil dependency will be corrected. the bubble is almost bursting with speculators… time to get my money out of oil.
for philippines, the poor and the farmers can continue planting and be self sufficient, if there’s surplus then so be it. our farmers has been sitting and not doing work for a while due to imports. it’s time not to get lazy and be productive. concern with fertilizer… then the government subisidies and supervised training by DA.
PSI on Thu, 10th Jul 2008 11:39 pm
Successful politicans know budget politics. If hold on to power is the end of politics, the budget (and the accompanying pork) is the means. In a democratic government, how else does one leader compel ambitious others to bend to his will if not through the public purse. Remember: who gets what when and how.
The President knows the game of follow the leader. You have to be where the money is.
leytenian on Thu, 10th Jul 2008 11:42 pm
philippines has to go back to basic… basic commodities and its production. attract more tourists in our 7100 islands as businessmen in the emerging market will be suffering from stress.. a great place to relax is in our 7100 island paradise. cebu is a good example from tourism revenue. i think the focus should be employment, education, reforestration , and healthcare. there’s a niche for a luxury cruise line. disney cruise is planning for expansion in the Asian market.
when marriot, shangrila, hilton and other brand names came to cebu… it employed so many of the local people in the hotel and restuarant industry. many small business has also benefited. these companies are not the Oligarch. they are not appropriate for privatization proposal by IMF to Philippines. The Oligarch are our politicians who makes money without generating employment.
sulpicio may have created employment but dead bodies exceed employment number. not good. this is the type of oligarchic service that should have been subject for privatization. as mentioned by hvrds, this company is financed by one of the banks that our government guarantee… hmmmnnn. numbers are getting complicated.
cvj on Fri, 11th Jul 2008 12:01 am
UPn (at 11:04 pm), in Philippine Society the elitist mindset has been a major obstacle to development [towards modernity]. For one thing, it’s what gives otherwise decent folks in the Middle (and Upper) Class the sense of entitlement to condone Gloria Arroyo’s cheating because the ones who got cheated are their perceived inferiors. It’s also what has allowed Oligarchs to thrive for as long as they have because the middle class, as Jeg commented above (at 12:05 pm), identifies more with the Upper Class.
Regarding your impression (at at 11:20 pm), if that were true, then why did i endorse Abe Margallo’s proposal for a Bayanihan Pact?
http://www.cvjugo.blogspot.com/2007/11/abe-margallo-philippine-elites.html
I believe that even an elitist can be well-meaning and kind-hearted as a person, but i also believe that elitism itself is a degenerate idea in the same league as racism.
d0d0ng on Fri, 11th Jul 2008 12:11 am
“MLQ3 description of GMA traveling with blank checks is proof positive that she knows that you buy loyalty in this country.”
Corruption in the Philippines is widespread. Promotions in both government and military worth fortunes for each person who signs the promotion papers (just thinking of the prepaid senators were against Jamby when she held the promotion of military officers). Garapalan pa with, “Saan na yun sobre at magkano ba nan dyan”. Some have to sell properties or get loans just to shell for the amount. This created a cycle of corruption when the person get promoted and do the same thing to next person in line and do other creative jobs while in power to recoup the money earlier spent.
Remember the only 2nd general facing court martial is in Mindanao for collecting money on soldier applicants – the lowest tier who barely have anything or say anything. The smart generals thought that was an overkill when destabilization or news of unrest is already an extra income during loyalty check (literally check for each general).
d0d0ng on Fri, 11th Jul 2008 12:20 am
“there’s a good point for our government to invest with the company.”
That is what GSIS and SSS are doing. However, an overly enterprising agency president also invested in worthless paintings and pocketed the difference – culture of corruption.
d0d0ng on Fri, 11th Jul 2008 12:35 am
“philippines has to go back to basic… basic commodities and its production.”
That is possible if Filipinos can separate themselves from the culture of corruption. Those in power don’t have the patience waiting the long cycle of production-sell-collection. Getting paid for something needed is quicker as facilitator.
In the recent Ces Drillon kidnapping, Indanan town mayor Isnaji became a collateral damage when he understimated and failed to share the loot with other fixers.
UP n student on Fri, 11th Jul 2008 1:36 am
cvj: “endorse” only gets you so far, I meant do.
You did say before you focus on assigning blame. As of now, blaming Gallego only goes so far — you don’t have a big enough club. Maybe action —- cooperation, not talking about cooperation — is the better approach.
And cooperation with with the devil
those sum-of-bitches elitists, may be appropriate. They can sign fatter checks. Consorting with elitists gets the CBCP places; my opinion is that consorting with the elite can work, too, in terms of helping the poor.
[Again.... my opinion.]
d0d0ng on Fri, 11th Jul 2008 1:50 am
“Elitists — they think the poor are incapable of helping themselves without help from others…..have a mindset of … I have more important things to do, but here is a check!!†.
That puts every Filipinos in the country as an elitists. Filipinos paid their maids, driver, etc… for convenience. They paid the policemen, registrar, tax collector, property tax assessor, customs, government contacts, priests (annul), etc.. not for the right amount due but for a way out…
I am the least believer of real change in the Philippine setting after 2010 precisely because no one can change the pervasive rule of elitist mindset of paying fellow Filipinos for convenience institutionalizing corruptions in every layer of the Philippine society.
d0d0ng on Fri, 11th Jul 2008 2:16 am
“That kind of thinking is what enabled Manuel Gallego III to shamelessly propose the forced sterilization of parents of street children are less than human and more like pets who can be neutered.”
Not far from the political mindset that voters are comodities (not a thinking human) and can be bought by cash.
supremo on Fri, 11th Jul 2008 2:52 am
Those salary figures give the impression that there are too many government employees.
supremo on Fri, 11th Jul 2008 3:05 am
P10B had been spent for the AFP modernization. At P50 to $1 that’s $200 M enough to acquire 4 Saab Gripen or 40 Mi-17 helicopters or 40 M1-Abrams tank. I guest the AFP would rather eat than fight.
supremo on Fri, 11th Jul 2008 3:37 am
The P300 M appropriation for the AFP modernization can buy 1 new C-130 Hercules. How many Jollibee hamburgers can you buy with that amount? Cheese and without cheese.
hawaiianguy on Fri, 11th Jul 2008 4:14 am
Money is the crux of most evil, and Gloria knows that very well. As an economist-cum-politician, she has learned the dictum that “whoever holds the gold makes the rule.”
Like it or not, the budget of the country hides a huge sum of money that one person can dispose of – all in the name of power and glory, no matter what the consequences may be. Never mind if it dooms the Philippines, or its inhabitants forever.
Sadly, money has been used to woe everybody, even those in white robes, under the guise of “donations to charity.” Tempted, those who are allured by the glitter of gold have also become corrupt themselves, by compromising truth for practicality and convenience, and by sheer alliance with the devil.
KG on Fri, 11th Jul 2008 7:31 am
Based on the comments ;only a few scrutinized the budget
lahat may conclusion na.
see what i mean on having information in front of you is not enough, you should know what to do with it.
ilagay mo yan sa mga dyaryo ilan ang magbabasa nyan.
KG on Fri, 11th Jul 2008 8:12 am
the office of the ombudsman 2006 lang medyo tinaas;
kaya kahit tambakan mo ng kaso ang ombudsman di gagalaw yan dahil konti budget.
chr has even less;so wala tayong magagawa kung hanggang press release na lang ang magawa ng CHR.
nakakhilo tingnan isa isa kaya I can’t blame those who did not even bother to take a look.
on modernization.
so wala ng threat nokor (are we sure?)at iran israel tensions will be left to the next us president,so hindi na ba natin kailangan imodernize afp.
fine, let the asg continue outrun our patrol crafts, the chinese vietamese,taiwanese fishermen continue to fish on our waters.the afp now believes daw that the palparan solution will never work so should we stop modernizing? peace talks,talks talk tama laway lang ang puhunan.
I know corruption trickles down to the baranggay level,alam natin ito.
so GI JOE cartoon commercial is wrong that knowing is half of the battle.
cvj on Fri, 11th Jul 2008 8:21 am
UPn (at 1:36 am) , if your idea of cooperation is similar to the way the CBCP consorts with the elitists, hoping to get a share of Gloria Arroyo’s blank checks, then that would just be perpetuating the very pre-modern system that has caused our underdevelopment in the first place. I did say before that i would support any Oligarch candidate who has a credible plan for a soft landing:
http://www.quezon.ph/1687/the-dead-flame-reflections-for-the-weekend/#comment-739616
As for your claim that i focus on assigning blame, you just need to read back this thread to see that what you’re saying is at best, a half-truth.
http://www.quezon.ph/1859/quailing-before-the-palaces-pet-magistrates/#comment-852498
cvj on Fri, 11th Jul 2008 8:32 am
Karl, on the budget, what’s glaring to me is the 3x jump in the permanent position salaries, bonuses and other benefits of the Office of the President in 2005 compared to the previous year.
UP n student on Fri, 11th Jul 2008 8:37 am
… consort with the elitists (or even… shudder…. USA) … to get (pesos out of) Gloria Arroyo’s blank checks ….. to fund programs for the poor.
Repeat : to fund programs for the poor .
The USA, too, can be a source of funds. [Also see DJB Rizalist' writings about the Myanmar syndrome among UP professors, etcetera. ]
UP n student on Fri, 11th Jul 2008 8:40 am
and those with a distaste for GMA’s checks really have other options. They can pound the pavement to get an audience with the Ayalas or the Gokongwei’s, or try to beg/borrow from foreign NGO’s..
Bencard on Fri, 11th Jul 2008 8:40 am
kg, obviously the commenter preceding you (who tries to sound like an expert) did not read the budget. otherwise, he would know the simple fact that, other than a relatively minuscule portion of the budget that goes to the president’s discretionary fund, the bulk of the people’s money is used to run the entire government; meet foreign loan obligations; finance public works and services; procurement and maintenance of equipment; public education and health, national security, among other things. all these are expenses mandated by law, not on “gloria”’s say so. to say that all public money is disposed of “by one person”, is the height of ignorance and naivete.
UP n student on Fri, 11th Jul 2008 8:48 am
and speaking of consort with the USA … their Air Force is one of the organizations that I believe will be very interested in a million hectares. Not only will there be NO request for the Philippine government to guarantee any loans; it is the US Air Force that will commit to providing a minimum amount of US-dollar-denominated yearly-lease payments.
The US Navy is a second organization that will be interested in acreage (with access to the sea). And poor-quality very-low-yield land will satisfy both these organizations.
—————————-
If not the US… Russia may be interested.
cvj on Fri, 11th Jul 2008 8:53 am
UPn (at 8:37 am), consorting with GMA would be rewarding bad behavior on her part. Besides, it turns what is supposed to be her duty into a favor.
UP n student on Fri, 11th Jul 2008 8:55 am
for discussion-purpose only : if you put together the land area of Rizal (130,300 hectares), Bataan(137,300 hectares) , and Batangas (316,600 hectares) … and then add Albay (255,300 hectares)… you are still short one-million hectares.
UP n student on Fri, 11th Jul 2008 8:57 am
cvj… then an option is to defer yakking about GMA and instead focus on obtaining money from the Gokongwei’s or the Gates foundation….. to fund programs for the poor.
hvrds on Fri, 11th Jul 2008 8:59 am
“The organization hopes that their book will enable congressmen to deliberate on the budget more wisely and efficiently, and that it will inform the public so that it can keep tabs on budget preparation and execution.”
Between 10-15% of government revenues come from perosnal income taxes.
The rest are corporate income taxes, exise taxes, customs duties,consumption taxes and payments for government services.
Corporate and personal income taxes make up between 30-40% of total revenues.
Hence a very small sector of the economy are actually seeing their incomes confiscated with very little in return. This is the sector that gave rise to Edsa I and Edsa II. They are mostly separate from the main population sector. They are the ones who live behind gated communties and do not depend on local government services. They are also the ones mostly populating the new economic subsector of BPO’s.
Their economic self-interest is more integrated with foreign companies than with anything to do with the domestic economy. Hence they are heavily inflenced by the Makati Business Club, Management Association of the Philippines and Financial Executives of the Philippines. The heart of the neo-colonial foundation of the country. Their mindset has been globalized for generations. Their guru is the American Chinese Wash Sycip, the de facto Ambassador of Greater China.
One of the major integrating forces between the PRC and the global economy is Greater China. They are the major investors in their own homeland.
They take their lead predominatly from Amrika. The only method that is keeping American influence in the world is their dollar hegemony over the world trading and financial sytem backed up by a first class military.
The merchant and commercial class will always tend towards that force that can protect property.
The New Romans have almost 700 garrisons around the globe to protect the system.
Except for certain countries the degree of influence over emerging economies down to the basics is dominated by empire.
UP n student on Fri, 11th Jul 2008 9:04 am
hvrds: How much of government funds comes from that much-talked about
VAT?
Ruffy Biazon on Fri, 11th Jul 2008 9:08 am
Nash said:
“what is more important is the year-end report.
how is it that senators and congressmen and the executive do not submit a DETAILED report on where the spent the money (and no rounding off to the nearest 1000 please.)
in the UK, with the right to information act, you can look up how much so and so MP paid for taxi or take-away dinner. why can’t we do the same given that congressmen are even overstaffed?”
I would like to share some information:
1. Congress is not exempt from the audit of the COA. That agency, which has the mandate of ensuring that all government agencies spend their budgets in accordance with the General Appropriations Act and prescribed accounting rules and procedures, comes up with a report EVERY YEAR. Those are public documents.
2. Every year, Congress conducts public hearings on the government’s budget where the public is free to attend, observe proceedings and even talk to the legislators to ask questions. Those are public proceedings.
3. COngressmen are overstaffed? Please be informed that the budget allocated to every congressman is good for only SIX staffmembers. That can be verified.
I appreciate people who are very much concerned with how government works. It’s really about time every Filipino cares about the government which is supposed to serve the people. If there is anyone out there who would like to do his or her share to make this government more ideal, I am inviting them to visit me at my office for a dialogue on what really is going on inside government.
Better yet, I would like to invite them to do an observation duty in a Congressman’s office to get a real hands-on experience of how a congressional office is run. That would really provide sufficient authority to those who comment on legislators.
UP n student on Fri, 11th Jul 2008 9:08 am
If anyone wants to take up the cudgels for leasing land the size of ALBAY to the US Navy and land the size of Bataan to the US Air Force, the positive reasons are:
(i) they are not asking for Pinas to guarantee any loans;
(ii) payments will be from them, not from Pinas;
(iii) low-quality land , not agricultural land;
(iv) aircraft- and shipping-maintenance jobs, maybe China language experts to be hired;
and the oligarchs will favor the lease because, as hvrds says :
The merchant and commercial class will always tend towards that force that can protect property.
Maybe Nash or cvj can cite the reasons why Kuok is better than US Air Force.
UP n student on Fri, 11th Jul 2008 9:11 am
and US Air force/Navy will want a commitment (lease of 50-yr or longer), not a one-night stand.
UP n student on Fri, 11th Jul 2008 9:36 am
to Congressman Biazon: The exhibits that MLQ3 posted suggested that in 2007, the Executive Department shorted Pasay to tune of over P60-million?
If yes/Pasay got shorted, what is the recourse for the Pasay LGU? Cowering in fear of the hail and lightning that Malacanang can unleash may be the only option, but it sure sounds counterproductive.
supremo on Fri, 11th Jul 2008 11:30 am
From 2002 to 2008 the AFP got P20B for the modernization program. P10B was already spent. There’s still P10B left. I hope they get the next P10B right.
That’s $400 M at P50 to $1. What can you get with that? Let’s check what Thailand can do with that amount of money.
1. On July 14th, 2000, the Thai government decided to purchase 16 F-16s (15 A’s and 1 B in the ADF version) to establish a third F-16 squadron for $74.5 M
2. The Royal Thai Navy ordered six multi-mission Sikorsky S-70B Seahawk helicopters to be deployed from the Chakrinaruebet in 1997. Costing US$138 million, these helicopters are designed for use in an anti-submarine role.
3. Nine ex-Spanish Matador AV-8Ss on order for US$90 million.
4. Under the contract signed in July 1992, the Chakrinaruebet is being constructed at Bazan’s El Ferrol yard in Spain. The carrier will cost an estimated US$257 million, or US$365 million if fully equipped with combat systems and armament.
supremo on Fri, 11th Jul 2008 11:36 am
Look at what Thailand got for leasing an air base to Singapore. The air base is not even a million hectares in area.
‘On November 18th, 2004 it was announced that Thailand was to receive the remaining 7 RSAF F-16A/B’s (3 Alpha models and 4 Bravo models). They were all handed over in the course of January 2005. Instead of a standard purchase between two governments, these airframes are donated by the government of Singapore to the Thai Air Force. In return the RSAF can train on the Thai air base of Udon Thani a number of days each year.’
leytenian on Fri, 11th Jul 2008 11:54 am
To congressman Biazon:
1. Congress is not exempt from the audit of the COA. That agency, which has the mandate of ensuring that all government agencies spend their budgets in accordance with the General Appropriations Act and prescribed accounting rules and procedures, comes up with a report EVERY YEAR. Those are public documents.
the agency is not functioning well. it does not communicate with the public of what’s been done. Public documents will not be understood by many except a few. The schedule of audit and purpose must be clarified. Which region was given budget, how much and for what.
2. Every year, Congress conducts public hearings on the government’s budget where the public is free to attend, observe proceedings and even talk to the legislators to ask questions. Those are public proceedings.
I understand but this information are not again understood nor disclose properly to the public. The Department of Budget must BREAK down expenses or financial statement according to region, city or provinces. The annual budget we have above above is a consolidated statement. I don’t see my region’s budget s and my towns’ budget. I also don’t see who approves it and who credit it from BSP. How can my people in my region get engage in hearings if actual budget propose for our region are not fully disclose. How much and for what? A website for every town is even better. Proposed budget and its purpose should be disclosed. All proposed project approved by meeting and hearings must disclose actual expenses. All towns belonging to a province or region will consolidate all financial statement into one ( the regional website) … The big budget will easily be understood.
I don’t think we have the right system of accounting. We do have the right principle and theory. But the process of implementation for clarity do not exist with the current administration. When would be the change for total transparency? 20 forgotten?
3. COngressmen are overstaffed? Please be informed that the budget allocated to every congressman is good for only SIX staffmembers. That can be verified.
with all due respect, I think the complain is not the actual overstaffing. I think the complain was more on finding positive RESULT of performance. I expect my leader to perform according to public demand not because it is his/her demand.
leytenian on Fri, 11th Jul 2008 12:05 pm
The Annual Budget is just a Budget. Looking at Senate and Congress… who cares with those numbers…. Department of Budget must BREAKDOWN EXPENSES from barangays all the way to the top. This way, when i see discrepancies in numbers, I know exactly what I will ask during meetings and hearings. The Annual Budget Sucks.
rego on Fri, 11th Jul 2008 12:27 pm
Bravo to you congressman Biazon! I salute you for commenting in this blog.
More please!!!!!
rego on Fri, 11th Jul 2008 12:33 pm
“Better yet, I would like to invite them to do an observation duty in a Congressman’s office to get a real hands-on experience of how a congressional office is run. That would really provide sufficient authority to those who comment on legislators.”
They dont have to do this congressman. since you are already in this blog. You can just post a comment to correct seom misconception about how the government or the congress operates. You know if only you got the chance. You dont have to be present here everyday. But please do take some of your time to read the comments here from time to time.
At please iwasan mapikon sa mga makukulit na commenter dito. Just explain it objectively
rego on Fri, 11th Jul 2008 12:41 pm
Take note too that not all commenters here are in Pinas. I for one is in new York City
Congressman, You already found a way to reach out to this people. Thats mean you can come to them. They dont have to come to you.
hvrds on Fri, 11th Jul 2008 12:42 pm
Shades of 1930 in the U.S – What happened to the free markets that was being subsidized by Mr. Public.
U.S. Weighs Takeover of Two Mortgage Giants
http://www.nytimes.com/2008/07/11/business/11fannie.html?_r=1&hp&oref=slogin
“The companies, Fannie Mae and Freddie Mac, have been hit hard by the mortgage foreclosure crisis. Their shares are plummeting and their borrowing costs are rising as investors worry that the companies will suffer losses far larger than the $11 billion they have already lost in recent months. Now, as housing prices decline further and foreclosures grow, the markets are worried that Fannie and Freddie themselves may default on their debt.”
“Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.”
“The government officials said that the administration had also considered calling for legislation that would offer an explicit government guarantee on the $5 trillion of debt owned or guaranteed by the companies. But that is a far less attractive option, they said, because it would effectively double the size of the public debt.”
“The officials also said that such a step would be ineffective because the markets already widely accept that the government stands behind the companies.”
“The officials involved in the discussions stressed that no action by the administration was imminent, and that Fannie and Freddie are not considered to be in a crisis situation. But in recent days, enough concern has built among senior government officials over the health of the giant mortgage finance companies for them to hold a series of meetings and conference calls to discuss contingency plans.”
“A conservatorship or other rescue operation would be the second time in four months that the Bush administration has stepped in to engineer a rescue to prevent the financial system from collapsing. Last March, it forced the sale of Bear Stearns to JPMorgan Chase to avert a bankruptcy of that venerable investment house.”
“Officials have also been concerned that the difficulties of the two companies, if not fixed, could damage economies worldwide. The securities of Fannie and Freddie are held by numerous overseas financial institutions, central banks and investors.”
hvrds on Fri, 11th Jul 2008 12:52 pm
VAT theoretically would be 12% to the total GDP value added –
12% of Php 7 trillion. The actual collections discounting exemptions and so called leakages I believe would be between Php 400b- Php 500b.
Government loves it because inflation brings up collections automatically. For an underdeveloped economy it steals more from the poor and working poor.
leytenian on Fri, 11th Jul 2008 1:17 pm
i can sense depression from the New York Times… watch out Philippines.
thanks hvrds… it’s very alarming. it’s been alarming but Fannie and Freddie Mac this time ? not good at all.
cvj on Fri, 11th Jul 2008 1:43 pm
Congressman Biazon, i saw your name included among Gloria Arroyo’s US visit entourage. If true, i must say i’m very disappointed.
cvj on Fri, 11th Jul 2008 1:59 pm
UPn (at 9:08 am), a better use of the 1 million hectares would be to distribute among the rural poor households (and urban poor who want to return to the province) so they can help address the problem of food production for themselves and the rest of the country. Why prioritize someone else’s military base? It’s not like we have surplus land.
cvj on Fri, 11th Jul 2008 2:26 pm
Congressman Biazon, i did a further check and came across the PDI news item which reports that you (along with Rep. Diaz of Zambales & Rep. Mandanas of Batangas) just happened to be on a separate delegation in connection with the Veterans Equity Bill:
http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080625-144625/Arroyo-junket-Like-fiddling-as-Rome-burns
…if so, i withdraw my disappointment, but the timing is unfortunate.
KG on Fri, 11th Jul 2008 3:01 pm
nice to have a congressman in the exchanges, di ba sabi ko tayo tayo lang naguusap.
he has a blog by the way.
PSI on Fri, 11th Jul 2008 8:15 pm
Representative Biazon,
The Reproductive Health Bill should be top-priority legislation this Congressional year. No doubt, overpopulation is aggravating the crises of high food and fuel costs. Will Congress stand up to CBCP?
Is anybody listening??? The Philippines needed population control since decades ago.
“Former President Fidel V. Ramos on Friday blamed President Arroyo’s flip-flopping population policy and “unwarranted subservience” to the Roman Catholic Church for the country’s swelling population and worsening poverty.”
http://www.gmanews.tv/story/106456/FVR-blames-Arroyo-for-population-poverty-woes
“Bowing to pressures from the Roman Catholic Church, Arroyo has removed funding for the government’s family planning program.”
UP n student on Fri, 11th Jul 2008 9:08 pm
to cvj: how much will it cost??? Land is not free (nor fertilizer nor seed) how much will it cost the taxpayers to give one million hectares away to rural-poor and urban landless? I think leytenian repeately suggests to apply a few accounting principles. It will be great if this project is self-amortizing (in 20 or 25 years), but I believe that the taxpayers have to foot the bill.
So whether or not OFW’s willing to pay income taxes or Filipinos-in-Pinas agreeing to pay additional VAT, it should be useful if you can provide budget-needed by national government for land/seed/fertilizer and to fund farming-skills re-education programs.
========
I believe that not much hardball is needed when Pinas government plays hardball when negotiating the project to lease land to the US Air force and/or Navy in order for the project to provide additional dollars to the Philippine treasury. [Hint: Pilipinas government should insist that the US does not pay any bribes nor kickbacks.]
nash on Fri, 11th Jul 2008 9:10 pm
did i read that correctly??
Philippine Tongressmen have SIX, (6, sais) staffmembers???????????????????????????????
Madre mio, overstaffed nga yan! Six??? Why? To do what?
If I recall Senator Joker Arroyo has 1 staff. UK MPs have two or three. Well, Filipino congressmen may be working very hard indeed…or are helping provide jobs to our overpopulated country.
cheers,
UP n student on Fri, 11th Jul 2008 9:19 pm
In addition to farming-skills re-education programs, the national government also has to fund business-skills (how to market their produce, the ins and outs of dealing with banks or 5-6 lenders, what collateralization means). Too many anecdotes of landless-who-were-given-free-land becoming landless again in no time flat.
UP n student on Fri, 11th Jul 2008 9:21 pm
nash: Six. There is the secretary, and two others who do the work. There is the supervisor over the 3 people, and a supervisor-over-the-supervisor. Six!!!! … helping provide jobs…
Bencard on Fri, 11th Jul 2008 9:23 pm
psi, i know you are only quoting fvr (who himself has not done than anything significant about population control during his watch). are you aware of any legislation passed by either house ever to control the run-away growth of the population. why single out arroyo to blame? ramos should know better. ‘unwarranted subservience” to the church by arroyo, even if true, is irrelevant if there is no mandate and sufficient funding which only the legislature can provide.
Ruffy Biazon on Fri, 11th Jul 2008 9:50 pm
Nash said:
“did i read that correctly??
Philippine Tongressmen have SIX, (6, sais) staffmembers???????????????????????????????
Madre mio, overstaffed nga yan! Six??? Why? To do what?
If I recall Senator Joker Arroyo has 1 staff. UK MPs have two or three. Well, Filipino congressmen may be working very hard indeed…or are helping provide jobs to our overpopulated country.”
Yup, you got it right. Six as in anim.
Those six plantilla positions have a fixed salary grade as prescribed in the Congress plantilla positions. Those rates are taken from the Salary Standardization law.
The breakdown is:
1. Chief Political Affairs Officer – Usually the Chief of Staff of a COngressman’s office. Salary is around 20,000. Ideally, the Chief of Staff is also the COngressman’s lawyer. BUt at those rates, how many lawyers would accept the job?
2. 2 Legislative Staff Officers – salary around 13,000 – 16,000. Senior research staff.
3. Secretary- salary around 10,000-12,000
4. Legislative Staff Assistant – messenger – salary around 7,000
5. Driver – salary around 7,000
You be the judge. With all the research that needs to be done, hearings, briefings, meetings to attend and all other official functions attendant to the office, tell me if we can do with less.
Joker had 1 staff indeed in Congress. That’s because he had a law firm to do all the research for him. When people visited his office, either that 1 staff (who was his driver) was there to receive visitors or it was closed.
UK MPs have 2 or 3 staff? Well, being a legislator myself, and knowing the demands of the job, i doubt it. If you can show me how they do it, then I’m more than willing to propose that to the House leadership.
Again, I invite anyone who is wondering what congressmen do with those six staff to spend time and observe the daily work in a congressman’s office.
vic on Fri, 11th Jul 2008 9:56 pm
http://www.parl.gc.ca/common/bills_ls.asp?lang=E&ls=c2&source=library_prb&Parl=39&Ses=1
Glad we have a member of Congress (Mr. Biazon) commenting in MLQ’s to air the side of the Legislature. Just as recently as two years or less ago, upon taking power, our party, the Conservative, true to the promise during the campaign that brought us back to power after 11 years in opposition due mainly to scandal of corruptions that besieged the defeated government, introduced the New Accountability Act to further strengthened the Governance and put the Trust of the voters and citizen back to its Leaders and Representatives… doings what they are supposed to do without Accountability just not good Enough…
Conflict of Interest Act was amended and clearly Defined who is in conflict and what is in Conflict..
Politicians can not become Lobbyists not after a five years cooling off period after leaving politics, instead of immediately as before.
Establishment of the Office of Ombudsman for all Government Contracts and procurements, except the “spy agency†and the members of the house. Where all parties of interest can question and contest the process with the Ombudsman.
And Most Importantly, Elimination of Contributions of Businesses and Unions in Election Financing…All election Expenses now will only come from individual contributions with Strict Limits. (Same limits for everyone, candidates and supporters), Now even a minimum wage earner can run for a Parliamentary Seat or even a Welfare Recipient and win.
Now in the Philippines settings, the most that needed reform is the Electoral Process, maybe if we start from there, others will just follow…
Ruffy Biazon on Fri, 11th Jul 2008 9:57 pm
PSI said:
“Representative Biazon,
The Reproductive Health Bill should be top-priority legislation this Congressional year. No doubt, overpopulation is aggravating the crises of high food and fuel costs. Will Congress stand up to CBCP?
Is anybody listening??? The Philippines needed population control since decades ago. ”
I agree. It would interest you to know that the RH bill is now making progress in the House of Reps. Of course, the church backed resistance is also doubling its efforts. But don;t worry, there are those who recognize the significance of population in relation to reducing poverty.
Ruffy Biazon on Fri, 11th Jul 2008 10:12 pm
cvj said:
“Congressman Biazon, i saw your name included among Gloria Arroyo’s US visit entourage. If true, i must say i’m very disappointed.”
“Congressman Biazon, i did a further check and came across the PDI news item which reports that you (along with Rep. Diaz of Zambales & Rep. Mandanas of Batangas) just happened to be on a separate delegation in connection with the Veterans Equity Bill”
It is correct that I was in Washington D.C. during GMA’s visit to the US this June. I was also there last May and April. What was I doing there? Working, of course. I, as vice chairman of the committee on Veterans Affairs in the House, together with our Chairman, COng. Antonio Diaz and Cong. Roman Romulo, grandson of the great Carlos P. Romulo, have been quietly working for the passage of the Veterans Equity Bill which will benefit the remaining thousands of Filipino WWII Veterans.
It’s really unfortunate that I have been listed as a junketeer. It is more unfortunate that a disaster happened while we were there. But my conscience is clear that I wasn’t on a pleasure trip at the expense of the Filipino people. While we should pause to mourn the lost lives, there are also the living who expect us to work for them.
To make it easier for me, allow me to just paste my response to a friend of mine who emailed me regarding the matter, because of his concern for me when he received from his LSGH email group the “junketeers” article with my name on the list:
It is difficult to rationalize to those who are throwing around this criticism because it would take time and a lot of effort to explain and make them understand. But since I know you personally, I think I will just explain to you my own side of the story.
I do not care much about the other personalities mentioned in the list. More so I am not an apologist for the GMA administration.
My presence during that trip was part of my official duty as Vice Chairman of the COmmittee on Veterans Affairs which, in line with its mandate of working for the welfare of Filipino veterans, is working on a bill pending in the US Congress which if passed, will give benefits to Filipino World War II veterans.
The Filipino veterans have been in a 62-year fight to claim the benefits they deserve from the United States. When the UNited States called on the Filipinos to join the fight against the Japanese, they did so without hesitation and unwittingly, as subjects of the US Commonwealth. They were promised benefits just as American soldiers were going to receive after the war.
But what happened was that in 1946, after the Philippines declared its independence, the US Congress passed the Recission Act, which practically took back what they promised the FIlipino war fighters. Since then, our veterans have been clamoring for justice, to receive what was rightfully theirs in exchange for the service they gave in WWII.
Up to this time, that claim is still in the air.
Back in April of this year, the House COmmittee on Veterans Affairs, led by its Chairman COng. Antonio Diaz of Zambales, yours truly as Vice Chair and Cong. Roman Romulo of PAsig, one of the committee members, went to the United States to lobby in the US Senate for the passage of the bill which would restore the benefits to the veterans. We did so on the prompting of the FIlipino veterans, who saw this bill as their hope of getting back what the US owed them.
For many years, this bill has never passed beyond committee level in both the US Senate and House. BUt for the first time, there was a chance since it passed the committee on Veterans in the US Senate.
We went there to lobby, and lobby we did, going from one office to another, meeting with US Senators individually. We even met with the staff of those senators who could not meet with us. We spent whole days going around the offices in the US Senate, asking for support for the bill.
Of course, we were not the only ones who were doing that. The FIl-AM groups based in the US have been doing it for decades but to no avail. But when the voting on the bill was done, which was a couple of days after we left after lobbying for a whole week, the US Senate voted for the bill, 96-1. We cannot claim sole responsibility but I believe that our person-person lobbying, as legislators to fellow legislators, contributed something.
The next battleground was the US House of Representatives.
The following month, May, we went back because we were told by the Philippine Embassy that the COngress will go on Memorial Day Recess by the end of the month and they saw it as an opportunity to work for the passage of the bill. Memorial Day in the US is the time they commemorate and remember those who fought in previous wars, and legislation for veterans are usually passed during that time to honor veterans.
So that month, we went back to the UNited States to this time lobby in the US House of Representatives, in anticipation of a vote on the bill before the Memorial Day break. Just as we did in the US senate, we went from one office to another, speaking to congressmen or their senior staff to seek support.
But the prospects weren’t as bright as it was in the Senate, since there were congressmen we were vehemently against the bill. Understandably since they did not have much FIlipino constituents in their districts, unlike the congressmen of States like California, Nevada, New Jersey and others which had significant FIlipino-American voters. Just like in the Philippines, the House of Representatives is more parochial than the Senate.
After a week of lobbying morning till afternoon, we went back to the PHilippines. Memorial Day came and passed but the House did not vote on the bill.
We were losing hope because if the bill wasn;t passed at this time, there will never be a chance again this year because of the US elections in November. Just like in the Philippines, everyone’s attention will be on the elections.
We were afraid that the victory in the senate will go to waste.
But when it was announced early in June that the President will visit the UNited States, we saw this as a last ditch opportunity to give the bill a final push.
The committee decided to go on a parallel trip to take advantage of the presence of the president in Washington DC to convince the US legislators that the Philippines looks upon this bill as an important measure that will give justice to our aging, ailing and dying veterans.
We arranged to meet with US legislators and since we were the ones who have been working on this on Capitol Hill, our extensive knowledge of the bill, the process, the players and the circumstances would be and advantage.
As for me, I did not join the San Francisco and New York legs of the Presidential trip. I was only in the Washington DC leg for the sole purpose of the veterans bill. I definitely did not go to LAs Vegas to watch Manny Pacquiao. I wasn’t included in the dinners that went for hundreds of dollars per plate.
As a congressman, I am entitled to travel allowance for a maximum of 5 days for a trip, amounting to 300 dollars a day inclusive of board, lodging, inland transportation and other incidental expenses. That is the maximum that I can be given. Beyond that, I would have to pay out of my own pocket. This allowance, if not used, ends up as savings for the House of Representatives. It cannot be used for other purposes since the law provides that funds may only be used for the purpose for which it was appropriated. And all of these are subject to liquidation.
It can only be used for other purposes only if it is not used for the original purpose and ends up as savings at the end of the year. What some are insinuating that the travel allowance could have been used for the victims of the typhoon is simply not correct. We would have to wait until the end of the year to do that. YOu know what the saying about the grass and the dead horse says…
The travel allowance is also not released to us by COngress unless it was for actual travel. If we don’t travel, we don’t get the allowance.
I cannot speak for my other colleagues who were on that trip. But I resent the notion that I was on a junket because I know that I went there to work. And work I did, as can be attested by the veterans, the embassy staff and the FIl-Am community members there.
Again, I know it will be difficult to explain that to those who have been harping on that trip the significance of my participation in that trip. But I think I owe it to you as my friend to explain why I was there.
Thanks!
Ruffy Biazon on Fri, 11th Jul 2008 10:20 pm
rego said:
“Bravo to you congressman Biazon! I salute you for commenting in this blog.
More please!!!!!”
“They dont have to do this congressman. since you are already in this blog. You can just post a comment to correct seom misconception about how the government or the congress operates. You know if only you got the chance. You dont have to be present here everyday. But please do take some of your time to read the comments here from time to time.
At please iwasan mapikon sa mga makukulit na commenter dito. Just explain it objectively”
Thanks, rego! I’m a blogger myself and read not just this blog but all the other very relevant blogs in cyberspace. Daily. THis is one way I keep my ears on the ground, by listening to what people say. Once in a while I post my comments, especially when I believe I can contribute to a truthful discussion.
Don’t worry, hindi ako mapipikon. I always maintain objectivity. If you want to see how I handle myself during heated discussions in the blogs, visit ellen tordesillas’ blogsite. I interacted with people there during the 2nd impeachment discussions.
The Ca t on Fri, 11th Jul 2008 10:25 pm
If you do not know how the budget is prepared, I suggest you refrain from making comments that reflect your clueless ness.
there will be no annual budget if there were no budgets prepared from the lowest level of the government organization. The budget is not prepared for each department; the department submits its own budget.
The guidelines are provided in the preparation and the latest budget and actual expenses are used as a basis for projection.
Government operates on a fiscal year which means it starts July of the preceding year and ends June of the following year. so I am surprised that there are already numbers for the year 2007 when the fact is the fiscal year 2007-2008 has just ended last June 30.
Even with the year ending, it takes months to close the book to come up with the accurate and final figures because there are several accounts that need to be adjusted and closed like advances, accruals and receivables.
The question on why not use the unappropriated is silly. because in the government budget, before an expense is incurred and then reimbursed, it has to be appropriated first.
Huge amounts in Advances accounts by some agencies are not necessarily a case of corruption. Documents supporting the transactions may not have reached the disbursing agency on time for closing.
The lower actual expenditures by an agency may not necessarily indicate a failure of the national government to reimburse the expenses or to release the funds that have been earmarked for that particular project.
Sometimes, it s the expending agency which is unable to make the necessary charges to get what is due them.
but hell, why am I explaining when nobody cares because not many can understand the intricacies of preparing all these “worthless” numbers.
when congressman biazon said that only six personnel are allowed for each congressman’s office, it does not necessarily mean that the congressman should hire six. it is only what is allowed in the plantilla. it means the budget provides only for the salaries of six.
So the congressman may hire one or two or even the maximum of six.
For some congressmen, they might have used the office as employment agency for their relatives and supporters but for some they might have used their staff to research for the bills that they are going to sponsor or author.
.
UP n student on Fri, 11th Jul 2008 10:56 pm
to the Ca t: Are you knowledgeable in this question?
If a local government unit believes that it is owed more money from the National Government, is their only available option to seek the intercession of their local congressman? Can an LGU sue the national government on its own? What are the steps/procedures that the LGU should follow?
cvj on Fri, 11th Jul 2008 11:22 pm
Congressman Biazon, thanks for your clarification. I too do not care for the other Congressmen who went to the junket since i know enough not to expect much from them. But in your case, my disappointment in seeing your name on the list is because i do not expect you to be at the same level as your colleagues. Here’s the list where i saw your name as posted by one of the commenter’s in Ellen’s blog. You might want to clarify matters over there as well:
http://www.ellentordesillas.com/?p=2611#comment-581536
PSI on Fri, 11th Jul 2008 11:37 pm
In bad times (such as in the 1997-98 Asian financial crisis; in 2003-04 when GOP was trying to balance the budget by 2009) savings, say 10% of budget, is mandated by the President. Department and agencies would have to economize like cutting on travels abroad, delaying hiring of consultants and contractual employees, energy conservation, etc.
However, in good times, there is not much incentive for an agency to cut costs and attain savings, because such would just revert back to the National Treasury. Department executives even worry that the next year’s budget will be cut; so the tendency is to exhaust this year’s alloted budget and spend it all.
cvj on Fri, 11th Jul 2008 11:57 pm
UPn (at 9:08 pm), the arrangement could be similar to that given to SMC-Kuok where the government still retains ownership of the land while rural poor/urban poor are assigned a 1500 square meters per family of four to grow their own food for them to eat (and surplus to sell). Costs would involve seeds, irrigation, fertilizer, tools, carabao etc. However, this could be offset by the value of the food grown and the dollars saved from not having to import as much rice. Very rough computations below on the assumption that an adult needs 20 kilos of rice a month and rice output is at 3.2 metric tons per hectare:
palay requirement per family of four: 960 kilos per year
rice output per hectare : 3200 kilos of palay
number of harvest per year: 2 harvests per year (3rd season can be for planting vegetables)
rice output per hectare per year: 6400 kilos of palay
number of families (4 people) per hectare: 6.7 families
allocated number of hectares per family of four: 0.15 hectares
allocated number of square meters per family of four: 1500 square meters
number of families for 1 million hectares: 6,666,667 families
number of people for 1 million hectares: 26,666,667 people
Wouldn’t meeting the food needs of more than one quarter the population be a bigger benefit than the revenue obtained from leasing land to SMC-Kuok or the US Military?
ptt on Sat, 12th Jul 2008 12:06 am
Representative Biazon
I always get this urge to hang myself every time I need something from a government office. One has to go through line A in order to receive forms, in order to go to line B so somebody can staple the forms. Line C is for somebody to circle all the capital letters, until you can make your way to line Z who has the ONLY guy trained and qualified enough to receive cash before they CLOSE shop for lunch. This retarded and inefficient “System†to government services forces the need for fixers and bribes. When business owners have to take bribe money into account with business plans, something must be wrong. Would the formation of a “Department of Efficiency and Common Sense†be in order?
Does the Congress recognize this as a problem, and if so how are you going about with a solution?
nash on Sat, 12th Jul 2008 12:54 am
Dear Congressman Biazon,
Why do congressmen need drivers? The Mayor of London who presides over a budget of £Billions takes public transport, so do the generally cabinet of higher government. Former Cabinet Secretary Blunkett had a driver, but then again he is blind.
In any case, P7000 a month seems very low for a driver.
Thank you for taking time out to comment. Accountability and transparency is key and this is a step in the right direction.
cheers
UP n student on Sat, 12th Jul 2008 1:08 am
cvj: Your calculations of a business model — a food-factory to feed over 20-million citizens —– sure makes sense.
And the answer to your question:
SMC-Kuok says good-business-sense!!!! To them, the lease-payments and other costs for a million-hectare food factory in Pinas is less compared to benefits of feeding over 20-million Chinese.
——–
SMC-Kuok is willing to pay.
On the other hand, Malacanang is telling its urban-homeless…. anak, hindi ko kayang iregalo sa iyo iyan (free land, plus fertilizer and seed), wala tayong pera!!!!!
——————
So an option is Pinas to sit down with US Air Force about lease of 2 or 3 parcels of land that will total the size of Bataan— 135,000 hectares.
Kick out Kuok. Pinas gets dollar-denominated yearly payments for leasing 135,000 hectares. Transform about 70% of the 50-year lease payments into one lump-sum for greater golpe-de-gulat. (Now, I still say use the money for thousands of typhoon-proof school buildings and salaries for principals and teachers.) Then use the lump-sum money for land-plus-fertilizer/seed plus farming- and business-skils training for urban-landless (800,000 hectares will feed over 15million pinoys if your estimation is right) (and the remaining 30% for “maintenance charges”).
Sitting down with those sum-of-bitch White Devils
can actually be ….. for the greater good of Filipino citizens. That is my opinion.
hvrds or leytenian or the Ca t can provide alternative ways of working with 50-year lease payments to obtain the maximum use to generate …the greater good. Just remind them it is for the greater good of the citizens, not the greater good of Malacanang lest they get tempted by
cvj on Sat, 12th Jul 2008 1:23 am
UPn (at 1:08 am), the important thing is to adhere to the victory garden concept so it is important that the household is responsible for what they plan in their allocated 1500 square meters of land. What it should not be is a corporate plantation and neither should it be a collective farm. In that way, you get 1.6 million self-reliant families, not 1.6 million laborers. In Vietnam when they implemented a similar concept, what was left to the collective is the maintenance of irrigation facilities.
It baffles me why you want to lease land the size of Bataan for a US Airbase. We need every piece of real estate for our use, if not for growing food, for growing biofuels, for wind farms, solar farms, forests reserves (as carbon offset areas as well as to build watersheds). Don’t think of the rent. Think of the opportunity costs of not being able to use 135,000 hectares of land for these alternative uses.
UP n student on Sat, 12th Jul 2008 1:23 am
and we can make supremo happy, too… by making sure one of those USA-bases be in Mindanao-land coveted by the MILF bangsamoro guys. Lock up the lease really tight where even if Christians are kicked out of bangsamoro, that the US cannot be forced to leave. The lease should be really tight so the paperwork stands up to the same international courts that has reviewed legality of USA-guantanamo base on cuban soil.
cvj on Sat, 12th Jul 2008 1:26 am
typo, in the first sentence above ‘plan’ should be ‘plant’.
UP n student on Sat, 12th Jul 2008 1:34 am
now cvj… i don’t know if you know this already, but you should and it should not baffle you. There are a few cases where you and I disagree. Like I just have a hard time volunteering other people’s money. I also do not tell KG, mlq3 or even Cory Aquino that they have an obligation to surrender land they own, or for blackshama to pay more in taxes all by his lonesome.
You have many proposals…. when you can identify how Pinas can afford what you propose and when Pinas congress and/or Malacanang says “done… we go do!!!”…..hey… then Pinas should go do what you propose!!
When Pinas can afford to give one million hectares free land to urban landlless, more power since it moves a number of the squatters out of metro-Manila area.
UP n student on Sat, 12th Jul 2008 1:41 am
cvj: when a country (in order to generate enough tax- and other revenue-collectio for itself) is willing to lease one million hectares to grow food, then export food … i think that country (or least one of its blogsites) can take a few minutes listening to an idea about leasing 1/5 of one-million, then using the remaining 4/5 to grow food to feed itself.
cvj: SMC-Kuok is being listened to because they have an answer to… but how does this project get funded?????
Fantastic good ideas are a penny a dozen…. really. Getting answer to How do we make it work? is where many ideas die. But you know this already.
UP n student on Sat, 12th Jul 2008 1:47 am
now just so I have not made a mistake. I have the impression that you, cvj, have not… but have you identified where the pesos will come to buy the land to give to the landless?
UP n student on Sat, 12th Jul 2008 2:01 am
It baffles me why you want to lease land the size of Bataan for a US Airbase.
Do I really need to review my writing skills? The answer is so Pinas has money to buy land-plus-seed-plus-fertilizer to give away. Pinas gets dollar-denominated yearly payments for leasing 135,000 hectares. Transform about 70% of the 50-year lease payments into one lump-sum for greater golpe-de-gulat.
Bencard on Sat, 12th Jul 2008 2:42 am
“It’s really about time every Filipino cares about the government who is supposed to serve the people.” Ruffy Biazon.
i join the other commenters in this blog in expressing thanks for your participation in this exchange of ideas. i, for one, appreciates your effort in behalf of the dwindling filipino war veterans and their families. here’s hoping that they will get the benefits they richly deserve.
i can understands the need to maintain a healthy balance between the staffing needs of public officers and the need to conserve the nation’s fiscal resources. six staff members multiplied by several hundreds of congressmen and senators is substantial. how about the staff of the executive, judicial, and lgu officials from the lowest bureaucrat, municipal judge, or barangay captain all the way up the the sc chief justice and chief executive? little wonder that the government is unquestionably the biggest employer in the nation and where most college graduates are flocking for “stable” jobs if they could not emigrate or work abroad.
i can think of two possible solutions (other commenters are welcome to add, expound, expand, criticize, or shoot-down with reason):
1. many filipino expats, ofws, ocws, who left the country in the late 60s, 70s and early 80s are either retired, or about to retire (mostly with their mental and physical faculties intact), with sufficient pensions to assure an independent, comfortable life, and skills/experience, ideas and insights acquired in their adopted home countries. many, if not most, of these retirees are pining to go back to their homeland as dual citizens or permanent residents and spend their remaining years helping their country any which way they can. i think these retirees would love to VOLUNTEER their services to the government for little or no compensation other than reimbursement of their out-of-pocket expenses. i suggest the establishment of a pool of volunteers with their individual qualifications and interests that can be utilized in any particular branch of public service. under the law of averages, i theorize that these people will be less likely to be corrupt, having proven their integrity by having retired without getting into trouble in their host countries, and given the fact that they are financially situated in such a way that they don’t have to hustle for livelihood by hook or by crook.
2. it’s time there should be a thorough re-examination of the ways we do things in the government. for a start, let’s do away with too much regulation that breeds corruption, not to mention waste of energy and resources, e.g., ptt’s lament @ 12:06 am. in addition, the civil service law must be amended to provide one-strike-and-you’re-out mandate with no exception.
cvj on Sat, 12th Jul 2008 2:52 am
UPn, if the Philippine government can allocate one million hectares for free to a corporation like SMC-Kuok, they can certainly do the same to 26 million Filipinos rural (and/or urban) poor. At an estimated 1,000 USD (45K pesos) cost of production per hectare per planting season, that would make 2Billion dollars or 90 Billion pesos per year which, if you compare with the Philippine Budget figures above, is well within the realm of the possible especially if we reduce debt service payments. That translates to 3,400 yearly subsidy per person or less than 300 pesos per month. Isn’t that an worthwhile price to pay to stave off hunger for 26 million Filipinos?
As to your suggestion of leasing land the size of Bataan to a US airbase, there are other ways to get foreign exchange without sacrificing valuable land. For example, we use the land to plant jatropha for biofuel. Assuming 3000 liters per hectare, that would make 405 million liters of biodiesel to replace our diesel imports saving foreign exchange which we can then use to import fertilizers/pesticides. Preferably though, the government should target eventual 100% local production for fertilizer.
The Ca t on Sat, 12th Jul 2008 3:35 am
If i am going to respond to this, i better lecture on appropriations, obligations , remibursements, allocation of IRA, what expenses are allowed to be charged to the special projects funded by the IRA etc. etc.
Which I am not going to do.
It is not unusual that the national government owes LGU. The lGU spends first and charged the receivable from the national treasury,
As to the collection, it takes some time.
leytenian on Sat, 12th Jul 2008 5:14 am
the cat,
“If you do not know how the budget is prepared, I suggest you refrain from making comments that reflect your clueless ness.”
i don’t think i am clueless..I don’t prepare budget because I hire people to do my budget. I am a manager. I am responsible for the day to day operation especially budget and manage every aspect of my own business. I understand where you coming from. I look on numbers everyday. Anybody who present to me with a proposed budget, they must breakdown expenses with vendors, contractor and actual price associated with it, etc… Who ever can save me money will be rewarded.
with the rest of your comments, all make sense with very good points in your part. of course you know your stuff but I suggest you don’t underestimate people. Your success is not only measured by what you know… It’s really how you interact with people. At least in this particular discussion. i would also suggest that your expertise in this area can be shared if you really wanna help or donate some of your skills to Philippines. But of course you have your time. Up N is asking you a good question, it would be nice if you can share… No offense.
leytenian on Sat, 12th Jul 2008 5:27 am
the cat:
“The question on why not use the unappropriated is silly. because in the government budget, before an expense is incurred and then reimbursed, it has to be appropriated first.”
Huge amounts in Advances accounts by some agencies are not necessarily a case of corruption. Documents supporting the transactions may not have reached the disbursing agency on time for closing.”
you have a point but the result is not what everybody expect…
my point is in every budget… there’s always discrepancies in numbers because of corruption. Philippines now is considered the most corrupt country in Asia… you know better than that.
leytenian on Sat, 12th Jul 2008 5:56 am
to congressman biazon..
thank you very much for breaking down salary expenses in your office. If our government hires more clerical and office personnel .. so be it. it is still employment.
i would love to see department of education to breakdown its expenses ( not only labor) , all the funds forwarded to every school in the Philippines…
or allow the the head of every school to propose its own budget. Funded or not funded, the head of the school can at least represent and able to get involve directly. The head of the school is the source of ideas and opinions from its staff, students and parents.
The propose budget can be forwarded to the local city ( mayor) , and the congressman will consolidate all the cities budget. Present it to the senator responsible for that region for final approval from the executives.
baliktad sa atin… may budget na pero hindi naman nakakarating sa lahat. every school is unique. some schools don’t have bathrooms , lack of books and the blue sky is the roof.
UP n student on Sat, 12th Jul 2008 6:07 am
to the Ca t: You sounded like you know the answer, so let me ask again. What are the steps/procedures that the LGU should follow if the LGU believes that the national government has not provided the complete funds?
leytenian on Sat, 12th Jul 2008 6:09 am
we have a great website from the department of education. it discloses the names of the head of the schools…
check this link… http://www.deped.gov.ph/public/public.asp
sa view info link… sana diyan makita ang request or propose budget nila.
mas magaan ang trabaho sa taas kung pakinggan muna ang nasa baba. maka save pa nang pera at the same time corruption will be minimized.
leytenian on Sat, 12th Jul 2008 6:21 am
with my propose system of governance in the department of education, i can guarantee that any OFW will directly donate money according to what is needed in a particular school.
for example: Grace park ES , head of school. Corazon Gonzales… Maam Corazon will then upload thru the website ( on view info) it’s school needs with actual price.
Here are our proposed budget and needs for 2008 (Breakdown)
1. books- 500,000 pesos
2. chairs- 300,000
3. 8 kubetas ( 3 or girls and 3 for boys, and 2 for staff) 500,000 pesos
pag nakita nang mga mayayaman at mga masipag na OFW lalo na kung nag graduate sila diyan… naku… they will donate. the government has save money. it can then increase salary teachers and hire more teachers.
trust me.. if this suggestion is followed our school system will be very high end . the donators will become the role model of the students. I myself will donate right away. ako pa ang bibili para sigurado… hahahah
UP n student on Sat, 12th Jul 2008 6:26 am
to CVJ : Now I see why we were having difficulty. I see a problem where you don’t. I think Pinas has not given away free land because Pinas does not have enough money to buy from current landowners the land, then give the land (plus fertilizer and seed) to urban squatters/rural poor. While you seem to suggest that Pinas can give away one million hectares for free. I see a problem — Pinas national government does not have enough money — where you don’t.
KG on Sat, 12th Jul 2008 7:27 am
the local government may claim that the government keeps on delaying the release of funds,but they cannot sue the governemnt.
every local government has its own procurement program;it is up to them to find out ways to finance themselves;pero madalas utang .
the congress indeed has the power of the purse,pero we know the drill on releasing funds; dbm neda , dpwh etc.
for claims of delay in releasing ira:
http://www.manilatimes.net/national/2008/apr/14/yehey/top_stories/20080414top7.html
for lgu lending:
http://dirp4.pids.gov.ph/ris/pn/pidspn0305.pdf
http://www.adb.org/Documents/Events/2002/LG_Finance_Bond_Market/PHI_report.pdf
UP n student on Sat, 12th Jul 2008 7:37 am
thanks, Karl for the links.
I am led to the conclusion that the situation — seriously-delayed payments to some LGU’s — is exactly what Pinas wants for itself, or at least that the issue is not important enough. Otherwise, Congress would have passed a law already asit has for those newer laws that had been fast-tracked.
Ayaw niyong lutasin… eh di ganiyan iyan next year and the year after.
Ruffy Biazon on Sat, 12th Jul 2008 8:03 am
Nash said:
“Dear Congressman Biazon,
Why do congressmen need drivers? The Mayor of London who presides over a budget of £Billions takes public transport, so do the generally cabinet of higher government. Former Cabinet Secretary Blunkett had a driver, but then again he is blind.
In any case, P7000 a month seems very low for a driver.”
Why do we need drivers? More productivity, of course. You may not agree, but let me give you the real score…
A congressman’s job is not just limited to attending sessions which many people think so. There are committee hearings that are held outside Batasan (such as bicameral meetings with the Senate), meetings with different government agencies located in various locations around metro manila, speaking engagements, etc. All in one day.
A congressman driving himself would have to deal with finding a parking space at his destination, which is difficult nowadays. The time consumed for such activities is time taken off from time that could be productive. While driving, the congressman has to concentrate on piloting his vehicle, but if he has a driver, he can use the time riding as a passenger to read materials pertaining to his meeting.
I drove myself before, but I felt that the time wasted with me at the wheel and looking for a parking space was time that could be made productive if I had a driver. Anyway, I had a budget for that. Yes, 7,000 is a bit low for a driver. But that is what is prescribed in the salary grad scale. It is not my decision to give him that salary. It is prescribed.
BUt even with a driver, when my schedule becomes so tight and is aggravated by the traffic, I get off my vehicle to ride public transport, particularly the MRT. There was one time that I was on the way from my district, Muntinlupa City, to a television interview in Quezon City and I got delayed by traffic on South Superhighway and Edsa. I got off in Makati and rode the MRT but was still late. So I did half of the interview via phone patch while I was on the MRT and did the other half in the studio when I got there.
There are many congresspersons who are not in the image that is usually in the minds of people. Times have changed. There are many congresspersons who are down to earth, drive themselves, don’t use SUVs, don’t have bodyguards, etc.
All we need to do is take time to get them personally rather than just confine ourselves to stereotypes.
from below on Sat, 12th Jul 2008 8:29 am
“pag nakita nang mga mayayaman at mga masipag na OFW lalo na kung nag graduate sila diyan… naku… they will donate. the government has save money. it can then increase salary teachers and hire more teachers.”
what a joke
cvj on Sat, 12th Jul 2008 3:20 pm
UPn (at 6:26am), the government does not need to buy the land from the current landowners because it is the government itself who owns the land. We were discussing in the context of the SMC-Kuok model where the government allows the former to use the latter’s one million hectares of idle land, remember? As i said above (at 11:57 pm), the government could still retain ownership.
Ruffy Biazon on Sat, 12th Jul 2008 3:54 pm
I would like to reply to some of the comments above.
But when I posted my answers, I received a message saying that spam blocker has blocked my message.
I tried to re-post but i receive another message saying that the system has detected a duplicate message, reminding me that I had already posted that message earlier.
What’s up?
Bert on Sat, 12th Jul 2008 5:24 pm
Congressman Biazon, my deep-throat source in the House of Representative whispered to me that there was an original agenda by the promoter of the junket trip to enjoy the Paquiao fight while there working in the USofA. Any idea about that, Congressman? Btw, I’m a fan of your father, the good and proper senator.
UP n student on Sat, 12th Jul 2008 9:47 pm
cvj: got it. I did notice than you framed the issue differently than I did.
Pinas already owns the land. Makes you wonder, right, why Pinas has not given away (its current practice) or “rented-for-free” the land to urban and rural poor. Maybe the money (for seed, fertilizer, others) is already owed to Pasay and other LGU’s for crime- and other programs?
By the way — lease to US Air Force/navy means Pinas still owns the land. And the land-areas involved? A whole lot less than Albay or Bataan. We’re talking less than 20,000 hectares.
Changi/Singapore International Airport (like Hongkong International Airport) is 1,300 hectares. Mactan airport (bigger than NAIA) is 800 hectares. Melbourne is a good-sized international airport : 2,430 hectares.
So 4 chunks of territory totalling less than fifteen-thousand hectares should generate dollar-denominated yearly lease payments for Pinas.
Which Pinas can then use…. for the greater good like more primary- and secondary-school buildings (typhoon-proof) and hectares for urban squatters to move into.
UP n student on Sat, 12th Jul 2008 10:07 pm
Again… US Air Force will not ask for loan-guarantees from Pinas and there will be short-term jobs (e.g. construction jobs for housing-units and the runways) and longer-term jobs (aircraft-maintenance, maybe Chinese language translation, computer systems analysts/programmers/WAN-LAN engineers as contractors).
And we can accelerate leytenean’s dream of a French
resort in the Visayas region area by leasing a 2,500-hectare base to the French!!!!! Then Pinas gets euro-denominated lease payments.
cvj on Sat, 12th Jul 2008 10:13 pm
UPn, leasing land to a foreign base is not the best use of real estate. For obvious reasons, the American navy would want a good deep water port. Similarly, the American airforce would also want a good location for its air base. It is better to develop seaports and airports for commercial traffic to enhance trade rather than make these off limits to economic activity which will happen if the land is allocated for military use.
Besides, with the number of enemies the Americans have been making, their presence on Philippine soil is a national security risk. The last thing we want to happen is to once again be caught in a cross fire just like we did in World War 2. For example, if and when the US goes to war with China (over Taiwan or for some other reason), we should make sure to stay neutral just like Spain and Switzerland who emerged relatively unscathed from World War 2.
The Ca t on Sat, 12th Jul 2008 10:49 pm
Pray. hehehe
and why do you think, the releases are delayed ? and what LGUs do not receive the funds on time. Guess who?
leytenian on Sat, 12th Jul 2008 11:05 pm
cvj,
Up N is sharing the ADVANTAGES of leasing land to US Airforce.
1. one will lease because of lack of income and when cash flow is short.
2. lease contract may contain provision/limitations that will give way to economic growth/activity. Most lease is not fix. Lease or rent will have short term adjustment in terms of rental payment increase. Common is 5% yearly or according to economic growth and activity (the highest and best use of the land. ). If our economy is booming, the rent will increase according to that boom. It might be too expensive for US Airforce to continue renting in the future.
3. the presence of USAirforce will actually provide safety and training to our very own UN-trained Airforce with obsolete equipments.
4. the leasing may provide a new strategy for the department of land resources to get their act together on economic Zoning. ECO_Zone.
i also don’t want to be caught in a crossfire. the risk that cvj mention must also be taken into consideration. leasing to any big companies is good if it will generate revenue ,employment and further economic activity.
Our cash is slowly draining.. even SSS might be at risk or already in maximum crisis.
to from below:
nice… it’s not a joke because it has been proven but there are still plenty of schools who needs guidance. have you notice how the church market themselves to maintain the physical structure and the needs of the church , most of it are coming from donation ( in religion- thiting). the same technique of marketing can be done with the school. children spend more time in school than in church. the reward of giving is the same . most mature people understand this. if we rely on our government all time for budgets… good luck philippines.
cvj on Sun, 13th Jul 2008 12:14 am
Leytenian, regarding the wisdom of leasing land to other sovereign states, i think UPn should compare notes with the Sultan of Sulu. He may have a thing or to to say about his family’s experience leasing some of their land to the British. (Besides, aren’t the Americans also heavily indebted to the Chinese? How can we be sure that they will continue to have the capacity to pay?)
Rather than leasing raw land for others to develop, let’s move up the value chain by using the land ourselves for productive activities. For starters, with 2 (out of 3) million hectares of ‘idle’ government land, i think we can allocate:
- 1 million hectares towards eliminating hunger [aka food security] (as described above at July 11, 11:57 pm and July 12, 1:23 am);
- 1 million hectares towards energy security via biofuel plantations (i.e. jatropha).
BTW, far from being ‘a joke’ i think your suggestion of encouraging OFW donations (at 6:21 am) is worth looking into. It makes it easier for the alumni of these schools to engage in give-back (or pay-it-forward) activities.
leytenian on Sun, 13th Jul 2008 12:37 am
cvj,
you always have good points . whatever is good for the majority, i’m always very supportive… sige magtanim na lang tayo nang jathropa.. less supervision pa from our farmers and it provides positive income in 3 years? ( 3 years ba ang harvest). patience lang naman ang kailangan natin with very good planning.
regarding america borrowing money from china… its’ true but america always don’t use its own money.. ( other people’s money). they have proven themselves ( kono) to borrow at 6% and make a return of 20%…
the money system of america is no longer a secret …
almost every country now is following the secret. the problem with our country is we didn’t know how to manage the borrowed money. probably 30% went to corruption… even if we make 20% from borrowing at 6%… the corruption kills the deal. we actually lose 10%… buti na lang may OFW that contribute revenue to our economy at almost 10% of GDP.
that’s why donating directly to our small community instead of rechanneling funds thru NGO, may provide a better outcome, remove agency and lessen corruption. the donators will see result instantly. at least from the smile of the students)
Ruffy Biazon on Sun, 13th Jul 2008 1:29 am
Bert said:
“Congressman Biazon, my deep-throat source in the House of Representative whispered to me that there was an original agenda by the promoter of the junket trip to enjoy the Paquiao fight while there working in the USofA. Any idea about that, Congressman? Btw, I’m a fan of your father, the good and proper senator.”
Thanks, I will tell the senator he has a fan here.
No, I’m not aware of that agenda. I wasn’t part of that. As mentioned by COng. Romulo in the Inquirer article, we went there on our own agenda, parallel to the PGMA trip. We rendezvoused with her in Washington because the Veterans BIll was part of her trip’s agenda. We weren;t part of the San Francisco and New YOrk legs of the trip. Definitely, we weren;t in Vegas too.
ptt on Sun, 13th Jul 2008 1:52 am
” Besides, with the number of enemies the Americans have been making, their presence on Philippine soil is a national security risk. The last thing we want to happen is to once again be caught in a cross fire just like we did in World War 2. For example, if and when the US goes to war with China (over Taiwan or for some other reason), we should make sure to stay neutral just like Spain and Switzerland who emerged relatively unscathed from World War 2 ” – CVJ
Wow, you are such a Fag. This reminds me of quote from the guy in the bar
” See, there’s three kinds of people: dicks, pussies, and assholes. Pussies think everyone can get along, and dicks just want to fuck all the time without thinking it through. But then you got your assholes, Chuck. And all the assholes want is to shit all over everything! So, pussies may get mad at dicks once in a while, because pussies get fucked by dicks. But dicks also fuck assholes, Chuck. And if they didn’t fuck the assholes, you know what you’d get? You’d get your dick and your pussy all covered in shit! “
cvj on Sun, 13th Jul 2008 2:02 am
ptt, after Bin Laden attacked the United States, the United States shit all over Iraq, so i guess that would make the United States an asshole (who thinks it’s a dick).
ptt on Sun, 13th Jul 2008 2:11 am
cvj, you may be right. Before Team America showed up, it was a happy place. They had flowery meadows and rainbow skies, and rivers made of chocolate, where the children danced and laughed and played with gumdrop smiles.
leytenian on Sun, 13th Jul 2008 2:15 am
let’s not talk dirty. it might turn me on… hahahah
Bencard on Sun, 13th Jul 2008 3:09 am
ptt, cvj, then, is it better to be a shit-dispenser (asshole) than shit-receiver (dicks and pussies?
ptt on Sun, 13th Jul 2008 3:16 am
Ah but Bencard, the only thing that can fuck an asshole is a dick, with some balls. The problem with dicks is: they fuck too much or fuck when it isn’t appropriate – and it takes a pussy to show them that. But sometimes, pussies can be so full of shit that they become assholes themselves… because pussies are an inch and half away from ass holes.
cvj on Sun, 13th Jul 2008 3:31 am
UPn, and these are the kind of tenants you’re recommending?
leytenian on Sun, 13th Jul 2008 4:06 am
Up N must be careful with leasing…
oh my god.. ptt?
UP n student on Sun, 13th Jul 2008 8:32 am
ptt, you better put a stop to the language already. Stop or we’ll send a note
to your mommy!!!!
supremo on Sun, 13th Jul 2008 12:18 pm
cvj,
‘The last thing we want to happen is to once again be caught in a cross fire just like we did in World War 2.’
I never thought that this is still prevalent among Filipinos. High school Philippine history teachers really mess up the minds of the young Filipinos with their own biases against America. Did it not occur to you cvj that there is nothing in between the oil rich Dutch East Indies and Taiwan but the Philippines? Any stupid Japanese private will not skip the Philippines just to get to those oil rich islands. The Japanese will still be in the Philippines even if the Americans are not in the Philippines. Remember that Thailand collaborated with Japan during WWII. Don’t you think Aguinaldo will not collaborate with Japan in that situation?
supremo on Sun, 13th Jul 2008 12:45 pm
cvj,
‘we should make sure to stay neutral just like Spain and Switzerland who emerged relatively unscathed from World War 2 †‘
Neutral or collaborators?
Remember that banks in Switzerland were use to Launder Nazi gold taken from dentures and wedding rings confiscated from Jews. Swiss banks also did not allow survivors who remember that their parents opened accounts access to access the money. Some banks requested death certificates of the account holder before they would allow the survivors to access the money.
What about Spain? Nazi Germany supplies arms to Franco via Portugal during the Spanish Civil War. You know the army division sent by Franco that serve in the Russian Front? Look it up. Spain declared neutrality but was really leaning towards joining the Axis powers if Germany defeats Britain. And even if Spain is on the side of Germany, the Nazis still has a plan to invade Gibraltar.
supremo on Sun, 13th Jul 2008 12:52 pm
ptt,
‘cvj, you may be right. Before Team America showed up, it was a happy place. They had flowery meadows and rainbow skies, and rivers made of chocolate, where the children danced and laughed and played with gumdrop smiles.’
And once in a while chemical bombs were dropped from the sky by Saddam.
cvj on Sun, 13th Jul 2008 1:24 pm
Supremo, without the American military presence here, the Japanese could have decided to sail on directly to the oil rich islands without first having to make a stopover here. In terms of timetable and resources, that would have made more sense as it would have allowed them to reach Australia faster.
You can also look up wikipedia entry on ‘World War II casualties’ to compare the number of casualties suffered by the Philippines with that of Thailand, Switzerland and Spain.
As for killing Iraqis, i think the Lancet study proves that the United States was able to pick up where Saddam left off and improve upon his record.
PSI on Sun, 13th Jul 2008 1:55 pm
cvj, supremo
I believe that whether the United States was garrisoned in the Philippines or not, the country will be occupied as part of Japan’s “desire to create a self-sufficient “bloc of Asian nations led by the Japanese and free of Western powers.”
http://en.wikipedia.org/wiki/Greater_East_Asia_Co-Prosperity_Sphere
supremo on Sun, 13th Jul 2008 2:31 pm
PSI,
I agree. It’s only cvj who insist that the American presence is the reason why Japan invaded the Philippines.
cvj,
‘You can also look up wikipedia entry on ‘World War II casualties’ to compare the number of casualties suffered by the Philippines with that of Thailand, Switzerland and Spain.’
Switzerland and Spain collaborated with Germany. Is that clear enough?
‘As for killing Iraqis, i think the Lancet study proves that the United States was able to pick up where Saddam left off and improve upon his record.’
When did the Americans dropped chemical bombs in Iraq? I need a date.
‘without the American military presence here, the Japanese could have decided to sail on directly to the oil rich islands without first having to make a stopover here. In terms of timetable and resources, that would have made more sense as it would have allowed them to reach Australia faster.’
Skipping the Philippines made more sense? Are you kidding me? If you are in command wouldn’t you make sure that your rear is covered?
cvj on Sun, 13th Jul 2008 2:36 pm
PSI, no doubt about Japan’s imperial ambitions. My point is by hosting US Military forces here, our country suffered more than Thailand, Switzerland and Spain did in World War 2 as there was more direct military action on our soil which is what i meant by crossfire.
supremo on Sun, 13th Jul 2008 2:36 pm
cvj,
Why didn’t the Japanese Army skip Singapore and Malaya?
cvj on Sun, 13th Jul 2008 2:37 pm
supremo, the Brits were there.
supremo on Sun, 13th Jul 2008 2:45 pm
cvj,
Why was Indo China invaded by Japan?
cvj on Sun, 13th Jul 2008 2:56 pm
It was a French colony.
ptt on Sun, 13th Jul 2008 3:05 pm
“Why didn’t the Japanese Army skip Singapore and Malaya?” “Why was Indo China invaded by Japan?” -supremo
Pussies believe that if we had our heads buried in the sand with asses sticking out, the Japanese would not have come or they wouldn’t have hurt us too much after realizing the people were just a bunch of fags. That’s just how pussies think.
cvj on Sun, 13th Jul 2008 3:28 pm
ptt, when the situation called for it, the Filipinos did fight, as they fought the Americans a century ago. What is foolish is to be drawn into other people’s fights which is what would happen if we host foreign bases here.
ptt on Sun, 13th Jul 2008 3:39 pm
“ptt, when the situation called for it, the Filipinos did fight, as they fought the Americans a century ago.”
That’s because the Filipino people are not bunch of Fags (minus cvj)
KG on Sun, 13th Jul 2008 5:35 pm
Indonesia ,an oil rich country was not touched by Japan because germany did not allow it.oTher than that reason they could have went there after annihilating us.
hey, the us left us, tuloy pa din ang laban,thanks to the hukbalahap.
if not for those nuclear physicists ;,di na tayo babalikan.
not an american hater,but iniwan nila tayo to fend for ourselves.
the americans got the japanese’s goat when their interests in china were hampered,they added more fuel to the fire by slapping an oil embargo to Japan. even before WW2 China at USSR ang kalaban ng Japan; sa tingin mo pag under pa tayo ng spain di tayo masasagasaan,dahil sa ties ng spain sa germany?
could have,would have,should have.
a thrermonuclear war will hit the whole world, with or without bases damay tayo; ang kailangan ngayon is to stop a crazy or crazies,that will trigger such a war. After ww2 what followed, the cold war right?
ngayon wala ngang cold war,pero the psy war remains.
so north korea is dismantling; what are will the next US president do about Iran?
what will the us president do if india and pakistan decides to have a close encounter with the nuclear kind?
cvj on Sun, 13th Jul 2008 5:57 pm
After World War 2, the Americans did offer more assistance to their Japanese and German adversaries than their Filipino allies.
Yup, but short of a global thermonuclear war, i think the threat would come from a regional confrontation between China and the US or Iran and the US. Mahirap nang madamay nanaman.
The Ca t on Sun, 13th Jul 2008 8:47 pm
There ou are again, trying to impress that you know everything. But Singapore was invaded by the Japanese driving the Brits.
http://en.wikipedia.org/wiki/Japanese_Occupation_of_Singapore
hahaha
The Ca t on Sun, 13th Jul 2008 8:49 pm
but of course, switzerland was not invaded by the Japanese. It was the germans who cold habe attacked them but they did not. it was not because of collaboration.
http://history-switzerland.geschichte-schweiz.ch/switzerland-second-world-war-ii.html
The Ca t on Sun, 13th Jul 2008 8:51 pm
we were also paid the war reparations but some dictator president allegedly gave it to a mistress, a foreign young model who has a daughter named after the father’s mother.
UP n student on Sun, 13th Jul 2008 9:57 pm
More aid to help the Germans and Japanese was logical. These were the strong guys. Germany was humiliated after WW 1 and see where that got the world. Helping Japan and Germany reconstruct made sense — so they would be on your side the next time they get strong again. Pinas is not the only country with utang-na-loob.
UP n student on Sun, 13th Jul 2008 10:36 pm
advice to cvj: while in Singapore, choose your words carefully as you describe Japan of World War 2. To portray Japan as a good guy for kicking out the French and the Brits and the US during the start of WW-2 may not be wise especially when you are talking around Chinese or Koreans.
UP n student on Sun, 13th Jul 2008 11:00 pm
I don’t have the gift to be able to say why they do what they do, but Japan hosts a few US bases. So does Korea. This tells me they have considered other issues in addition to this “Mahirap nang madamay” fear.
PSI on Sun, 13th Jul 2008 11:08 pm
“…but Japan hosts a few US bases…” – UP n
Either it was exacted from them as part of the surrender terms, or they belatedly realized that the U.S. of A. is better a friend than enemy. Same goes for Germany.
UP n student on Sun, 13th Jul 2008 11:22 pm
And here is my fearless forecast. There will NOT be a war over Taiwan. It does not make sense now, and it will not make sense even more in the future years. The reasons for war will diminish with each year with both sides being able to say “…. welfare… prosperity… our selfish interests better served with closer ties with the other side, not by war.”
For pinas to be too scared to build closer ties with China or closer ties with US because of this “… baka madamay” is juvenile thinking. [Again : my opinion.]
UP n student on Sun, 13th Jul 2008 11:54 pm
Going back to the main-point of the blogthread — the budget — go check out this columnist economist-wannabe
who writes that reducing VAT-taxes does not make sense.
http://business.inquirer.net/money/columns/view/20080713-148224/Will-cutting-taxes-help-the-poor
leytenian on Sun, 13th Jul 2008 11:58 pm
“I don’t have the gift to be able to say why they do what they do, but Japan hosts a few US bases. So does Korea. This tells me they have considered other issues in addition to this “Mahirap nang madamay†fear.
I think both U.S.-Japan agreed to a Treaty of Mutual Cooperation and Security. The US government expanded its bases after 911. After 9/11, U.S. policy built on world bases..
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/03/21/MNGJ65OS4J1.DTL&type=printable
http://ask.metafilter.com/32639/Why-do-so-many-foreign-nations-host-US-military-bases
http://fletcher.tufts.edu/forum/archives/pdfs/31-1pdfs/Schoff.pdf
During Clinton’s term, his policy was to cut expenditure in global security, CIA and Healthcare. He did good in terms of budget surplus. He was credited for it then 911.
cvj on Mon, 14th Jul 2008 12:15 am
Ca t (at 8:47 pm), that’s what i meant.
UP n (at 10:36 pm), not sure how you got that impression that i was portraying Japan as the ‘good guy’. All i’m saying is that Japan attacked Singapore because they had to confront the British military who were stationed in that island in the same way that they had to confront the US military who were stationed in ours.
Regarding your ‘fearless forecast’ (at at 11:22 pm), proper risk assessment involves considering both the probability of an event and the consequences of such an event taking place. So while you may be right that the probability of a military confrontation with China over Taiwan is low, the consequences to the Philippines if such a confrontation does take place while the US Bases are stationed here is dire. Also, i don’t think the corresponding probability of war with Iran is low so if only for that, we should keep the US military at a safe distance from us to avoid becoming collateral damage. Closer ties is fine as long as it does not involve military entanglements.
UP n student on Mon, 14th Jul 2008 12:19 am
leytenian: thanks for the link. That metafilter-dot-com link mentions that US lease payments to Pinas for less than 50-thou-hectares was over $700-million-per-year. With no need for Pinas to underwrite or guarantee any loans!!!
Should new lease-agreements be signed, one would think, right????, that Filipinos have grown past blind subservience to US white devils and that Filipinos now know how to write lease-term agreements better protective of Pinas self-interest. Or are Filipinos in Pinas still children or little-brown-Americans in the way they deal with America?
cvj on Mon, 14th Jul 2008 12:56 am
UPn, 700 million US Dollars is hardly a month’s worth of OFW remittances and hardly a week’s worth of Philippine exports and imports. Don’t be too easily blinded by money, as lease agreements involving military facilities are not evaluated on commercial considerations alone. Try to think clearly through the consequences of inviting in foreign military on your own soil. Since you’re in the United States, try asking your American friends if they are willing to lease American land to host Chinese, Russian or Vietnamese military bases.
leytenian on Mon, 14th Jul 2008 1:20 am
Up N,
if money is needed to raise capital, the owner has the right to do whatever for his land. in terms of lease contract, i think i have shared my knowledge on how one protects his/her interest.
With US Airforce leasing… I have enumerated the advantages already.
if we are brown children to the white monkeys? yes… because of my theme song ( debt) we are not independent. independent means financially stable, able to pay his/her bills. One can stand alone.
leytenian on Mon, 14th Jul 2008 1:54 am
leasing continue,
when clinton cut the budget for security during his term, it didn’t try to pursue and continue leasing in our country. the US somewhat just mutually agreed at that time due to its own policy to cut budgets. many agreed that US bases was just an expense.
when clinton did that, it opened opportunities for terrorist to continue its plan. it weakens the US global security. 911 happened just as Bush came to office. Perfect timing for the blame. the expansion of US bases and cleaning up terrorist cell were Bush number one priority. ( airport security, ID, driver’s license, immigration policy, hired more CIA and FBI agent. ) He also destroy the number one supporter of terrorist, Saddam Hussein by freezing his bank account and many others. Clinton’s surplus became a deficit and the war continue..
with the housing market crisis, the Office of thrift supervision has failed to regulate regularly .. countrywide’s expansion or branching into Indymac.. take note in 1983 and 1987.. the money making machine continue, verybody made money until clinton to bush term then the bubble burst finally. another perfect blame to the BUSH admin.
http://www.suntimes.com/news/nation/1052704,CST-NWS-indymac12.article
supremo on Mon, 14th Jul 2008 1:58 am
Why didn’t the Japanese Army skip Singapore and Malaya?
cvj said- the Brits were there
Why was Indo China invaded by Japan?
cvj said- It was a French colony
cvj said – without the American military presence here (Philippines), the Japanese could have decided to sail on directly to the oil rich islands without first having to make a stopover here. In terms of timetable and resources, that would have made more sense as it would have allowed them to reach Australia faster.
Just to complete the picture.
Why did Japan invade Thailand? Who was there?
Why did Japan invade China? Who was there? Brits? Americans? Bono?
Why do they want Australia? Because the Brits were there too?
UP n student on Mon, 14th Jul 2008 2:11 am
cvj: You do know, right, that a dollar is not a dollar is not a dollar? OFW remittances (invaluable to Pinas economy) are NOT tax-collections. My understanding is the OFW remittances do not go into Pinas treasury so they can’t be used to fund programs for urban landless/rural poor.
I’ve remained on message — the thread is about the budget — and have even tilted my comments towards your cause — land/seed/fertilizer for urban landless/rural poor.
And do you really want want me (or Bencard, supremo, mlq3, Abe or Randy David) to make recommendations exclusively based on what Americans think?
cvj on Mon, 14th Jul 2008 3:09 am
Supremo, the Japanese were mainly interested in engaging its rival Colonial Powers i.e. the USA, Great Britain and France. Have you compared the casualties suffered by Thailand with that suffered by the Philippines? The US presence is what made the fighting over here fiercer than it was in Thailand, whose home-grown leadership dealt with Japan on the basis of its own national interests, i.e. the Thai people’s interest, and not that of the Americans, French or British.
UPn, OFW remittances, export earnings and any US Bases rentals go to our Central Bank’s Dollar reserves where it is used to fund our imports and pay our dollar denominated debts. In that sense, dollars coming from US Bases rentals is similar to dollars coming from OFW remittances and/or Exports [aka a dollar is a dollar].
As i said, don’t be blinded too much by money since the United States military is a magnet for its growing list of enemies. We’re better off sourcing funds from economic activities that do not open us up to national security risks.
UP n student on Mon, 14th Jul 2008 4:02 am
OFW’s are exempt from income taxes. OFW remittances are not tax payments. OFW remittances are not moneys owed by OFW’s to the Philippine treasury.
As a Davao journalist just wrote recently:
An OFW remittance dollar is not a dollar that GMA can spend to buy a router.
leytenian on Mon, 14th Jul 2008 4:09 am
Up N Student,
An OFW remittance dollar is not a dollar that GMA can spend to buy a router.
true, but the creation of employment due to spending is the benefits. again OFW contributes at 10% of GDP.
that’s why my comment on
http://www.quezon.ph/1903/the-annual-budget-brouhaha/#comment-865131
a direct help… at least may makita ang mga OFW aside from lavish , negative investment of OFW money by their families.
also dept of education must allow extra hours ( curriculum) to educate children in terms of basic finance and savings.
UP n student on Mon, 14th Jul 2008 4:28 am
leytenean: I hope you are not getting confused by cvj’s obfuscation or rhetoric. Someone better step in and give cvj an education on a chart of accounts and that even if the dollars are with PNB Ayala Avenue branch, a dollar (an OFW-remittance-dollar from Clara Guzman/Abu Dhabi for Procopio Guzman of Project 2) is not a dollar (a tax-payment from Procter/Gamble) is not a dollar (donation-dollar from Abe Margallo to UST scholarship fund).
They really are all over the place, people very anxious to spend other people’s money. An OFW remittance dollar belongs to the OFW and/or the person he/she wants to get the money. Just as the remittance dollar does not belong to the government, the remittance dollar also does not belong to folks who want access to the OFW’s dollar to use it “..for the greater good“.
Bencard on Mon, 14th Jul 2008 5:38 am
leytenean, i see you are sailing on treacherous waters with no navigational gears. it’s true the post cold war defense spending cut-back happened under cllinton’s watch. but it’s a bipartisan, if not national, policy except for some far right extremists who would have no part of it. it would have been political suicide and disingenuous to have continued both the far-flung and the domestic military installations that were cold-war oriented and which were rendered unnecessary with the defeat of world communism. the clinton’s presidency may have reduced the military budget but never compromised national security and military preparedness in the process.
nobody could have anticipated 9/11. while there may have been some intelligence about attack inside the u.s., the method employed was so unheard of that no power on earth could have prevented it, or act on it before the fact. when uss cole was attacked, clinton could not have deployed u.s. military might to go after bin laden and his al quaeda without strong opposition, if not political lynching, from the american people. the best that he could do was to fire off cruise missiles against known enemy lairs, thereby avoiding american lives being put in harm’s way.
9/11 made the pendulum swing the other way. and that’s why bush was able to go after the taliban in afghanistan and sadam hussein in iraq. bush could not have done it if the u.s. military was not in good shape when he took over, as you seem to suggest. blaming clinton for the failures of bush is a clueless pretense and an ignorant misapprehension of contemporary events.
KG on Mon, 14th Jul 2008 5:51 am
Thailand, whose home-grown leadership dealt with Japan on the basis of its own national interests, i.e. the Thai people’s interest, and not that of the Americans, French or British.
http://countrystudies.us/thailand/21.htm
Thailand responded pragmatically to the military and political pressures of World War II. When sporadic fighting broke out between Thai and French forces along Thailand’s eastern frontier in late 1940 and early 1941, Japan used its influence with the Vichy regime in France to obtain concessions for Thailand. As a result, France agreed in March 1941 to cede 54,000 square kilometers of Laotian territory west of the Mekong and most of the Cambodian province of Battambang to Thailand. The recovery of this lost territory and the regime’s apparent victory over a European colonial power greatly enhanced Phibun’s reputation.
Then, on December 8, 1941, after several hours of fighting between Thai and Japanese troops at Chumphon, Thailand had to accede to Japanese demands for access through the country for Japanese forces invading Burma and Malaya. Phibun assured the country that the Japanese action was prearranged with a sympathetic Thai government. Later in the month Phibun signed a mutual defense pact with Japan. Pridi resigned from the cabinet in protest but subsequently accepted the nonpolitical position of regent for the absent Ananda Mahidol.
Under pressure from Japan, the Phibun regime declared war on Britain and the United States in January 1942, but the Thai ambassador in Washington, Seni Pramoj, refused to deliver the declaration to the United States government. Accordingly, the United States refrained from declaring war on Thailand. With American assistance Seni, a conservative aristocrat whose antiJapanese credentials were well established, organized the Free Thai Movement, recruiting Thai students in the United States to work with the United States Office of Strategic Services (OSS). The OSS trained Thai personnel for underground activities, and units were readied to infiltrate Thailand. From the office of the regent in Thailand, Pridi ran a clandestine movement that by the end of the war had with Allied aid armed more than 50,000 Thai to resist the Japanese.
Thailand was rewarded for Phibun’s close cooperation with Japan during the early years of war with the return of further territory that had once been under Bangkok’s control, including portions of the Shan states in Burma and the four northernmost Malay states. Japan meanwhile had stationed 150,000 troops on Thai soil and built the infamous “death railway” through Thailand using Allied prisoners of war.
As the war dragged on, however, the Japanese presence grew more irksome. Trade came to a halt, and Japanese military personnel requisitioning supplies increasingly dealt with Thailand as a conquered territory rather than as an ally. Allied bombing raids damaged Bangkok and other targets and caused several thousand casualties. Public opinion and, even more important, the sympathies of the civilian political elite, moved perceptibly against the Phibun regime and the military. In June 1944, Phibun was forced from office and replaced by the first predominantly civilian government since the 1932 coup.
KG on Mon, 14th Jul 2008 6:51 am
Guys,you can always correct me if I am wrong.
external debt= 62 Billion
gir= 36.7 billion
remittances 14.1 billion
ilan taon na above 60 billion ang utang natin????
the bsp intervenes in our exchange rate in a daily basis either to keep it high or keep it low(the peso) and that affects the reserves too.
the reserves are reserves should only be used for emergencies kaya di tayo kumuha dyan ng pambayad natin sa utang.(inuutang ulit,kung kulang revenue)
kung walang blackmarket at courier services at ibang paraan ng padala mas mataas pa ang reserves natin.
pero yung 14.1 billion ginagastos din in pesos,kaunti lang ang naiipon.
pano yung mga 500 dollars or less ang kinikita buwanan makakaipon pa ba yan, buti nga ngayon madami nang managers,doctors,engineers,scientists.they would rather manage the money on their own and let the money they send be spent. Tama ba?
some spending are investments to like buying condos,. some dependents are enterprising enough to be successful in their smes.
will anyone fill in the blanks? CVJ,do the honors.or leytenian , give it a shot just don’t introduce words that I can not understand. keep it simple.
leytenian on Mon, 14th Jul 2008 7:38 am
bencard,
thanks… the discussion is better as someone could be nicer to fill in the gap. did i blame clinton for bush failures? policies in the past can make a contributory factors. Bush failures will also contribute to the next…
keeping the discussion open is better.
leytenian on Mon, 14th Jul 2008 8:00 am
Hi KG and Up N,
here’s link to The Impact of International Labor Migration and OFW Remittances on Poverty in the Philippines: Focus on reading..Macro Level
3.1 Impact of Migration and Remittances on Development Macro Level ( GDP)
http://images.gmanews.tv/html/research/2007/12/impact_international_labor.pdf
The Negative Effects of OFW :
“These economists implied that higher remittances are in fact not that beneficial for a developing country as this could actually lead to corruption and poor domestic governance, which in turn hampers economic growth.”
http://www.bworldonline.com/Research/populareconomics.php?id=0073
this is the basis of why i am always supportive of direct donation. I am almost convince that this can at least minimize corruption.
Manny Villar is smart enough to be in real estate business. he understands the demand but his strategy is not good for OFW because real estate ownership is not considered to be a positive investment. It may grow in value but slow.
More to follow.
cvj on Mon, 14th Jul 2008 8:17 am
UPn (at 4:28 am), given annual OFW remittances of 14.1 billion (as per Karl’s comment at 6:51am), and assuming all of them are spent locally on consumer goods and services that are covered by E-VAT, then that means 12% or 1.7 Billion US Dollars of that 14.1 billion goes to E-VAT. That’s why we can say that OFW’s also contribute to the government’s budget.
KG on Mon, 14th Jul 2008 8:18 am
the americans got the japanese’s goat when their interests in china were hampered,they added more fuel to the fire by slapping an oil embargo to Japan. even before WW2 China at USSR ang kalaban ng Japan; sa tingin mo pag under pa tayo ng spain di tayo masasagasaan,dahil sa ties ng spain sa germany?
………………………………………………………………………
Indonesia ,an oil rich country was not touched by Japan because germany did not allow it.oTher than that reason they could have went there after annihilating us.
some supporting documents….that may prove me right, or even wrong..
http://en.wikipedia.org/wiki/World_War_II
In mid-1937, following the Marco Polo Bridge Incident, Japan began a full invasion of China. The Soviets quickly lent support to China, effectively ending China’s prior cooperation with Germany. Starting at Shanghai, the Japanese pushed Chinese forces back, capturing the capital Nanjing in December. In June of 1938 Chinese forces stalled the Japanese advance by flooding the Yellow River; though this bought time to prepare their defenses at Wuhan, the city was still taken by October.[26] During this time, Japanese and Soviet forces engaged in a minor skirmish at Lake Khasan; in May of 1939, they became involved in a more serious border war.[27]
………………………………………………………………………..
Japan, hoping to utilize Germany’s control over the Netherlands, made several demands, including a steady supply of oil, from the Dutch East Indies; these talks, however, broke down in June.[74] In July, Japan seized military control of southern Indochina since it would not only put them in a better position to coerce the Dutch East Indies into yielding, but it would also be a blow against China; should war be necessary, it also improved their strategic position against the Americans and British.[75] The United States, United Kingdom and other western governments responded to Japan’s incursion by freezing all Japanese assets[76] and the United States, which supplied 80% of Japan’s oil, further placed an oil embargo against Japan.[77] With the unexpected embargo, Japan was essentially forced to choose between withdrawing from their aggression in Asia, or seizing the oil they needed directly; the Japanese military did not consider the former an option, and many of them considered the oil embargo as an unspoken declaration of war.
KG on Mon, 14th Jul 2008 8:26 am
bakit ba napunta sa gyera tong usapan
see everything is interconnected,everything especially politics.
on taxes
why not the congressmen call the university of asia and pacific and dof
to let them prove each other wrong sa mga tax collection.
on erc control over napocor…..
wala yatang control erc
bumababa dollar kumita napocor,what can the erc do, beg napocor to reimburse us with its windfall?
what can congress do?
leytenian on Mon, 14th Jul 2008 8:39 am
UP N..
I may be wrong with increasing employment due to spending of OFW families. But employment should be the result with good governance and transparency. I was leaning towards the positive side on macro level but ignore the consequence of income inequality…
The study show that a lot of our poor has no family or relative going overseas. This family are left to suffer and yet they are our majority.
KG, CVJ and I were discussing small business opportunities… an active role by the government. I can’t find which blog..
the small business education should help increase employment , at least employing the remaining poor that cannot find opportunities overseas..
cvj on Mon, 14th Jul 2008 8:56 am
Leytenian (at 8:39 am),
I think you were referring to this:
http://www.quezon.ph/1828/squeezing-the-turnip/
leytenian on Mon, 14th Jul 2008 9:00 am
oh wow cvj.. thank you very much.. grabeh ka… your memory is indeed elephantine… thanks again.
UP n student on Mon, 14th Jul 2008 9:28 am
cvj: YES…. it is the tax that the goverment collects [when the OFW remittances are spent] that Pinas gets to spend. [BSP estimates that for year 2008, the OFW remittances (via banks and other alternate channels) will be $16.45 billion, up 10 percent from 2007.]
——–
KG: The Japanese also invaded and occupied Indonesia. With Tokyo was primarily interested in Indonesia’s oil, so Sukarno (who the dutch had exiled, first to island of Flores, then to Sumatra) returned to Jakarta. Sukarno and Hatta collaborated with the Japanese as well as continuing to work for Indonesia’s independence from the Dutch. On Aug. 17, 1945, two days after the surrender of Japan, Sukarno proclaimed Indonesian independence.
UP n student on Mon, 14th Jul 2008 12:03 pm
Sukarno was not an “accidental collaborator”. The Japanese even before the war knew of Sukarno’s appeal among the Indonesians with his (Sukarno’s) efforts for Indonesia independence. After invading Indonesia, the Japanese brought Sukarno back to Jakarta for Sukarno to organize and pacify the Indonesians. Sukarno was such a great collaborator that on November 10, 1943 Sukarno was decorated by the Emperor of Japan in Tokyo. [The award was for Sukarno helping the Japanese in obtaining its aviation fuel (see KG's post) and for romusha -- labor conscripts, forced labor. in Java, between four and 10 million romusha were forced to work by the Japanese military. About 270,000 of these Javanese laborers were sent to other Japanese-held areas in South East Asia. Only 52,000 were repatriated to Java, meaning that there was a death rate of 80%.
In 1945, Sukarno proclaimed Indonesian independence. Many years later, the Indonesian People's Consultative Assembly proclaimed Sukarno President for Life. This "for-life" term ended when Sukarno was overthrown. On March 11, 1966, Suharto -- himself also a Japanese collaborator --assumed power from Sukarno. [Suharto is "credited" with the purge that kills up to 1 million communists, trade unionists and other leftists 1966-to-1971.]
KG on Mon, 14th Jul 2008 12:07 pm
UP n,
Thanks!
hvrds on Mon, 14th Jul 2008 12:19 pm
The BSP was only capitalized with Php 10B. Where did the BSP get the pesos to buy the $37B in forex reserves?????????
hvrds on Mon, 14th Jul 2008 12:28 pm
“UPn, OFW remittances, export earnings and any US Bases rentals go to our Central Bank’s Dollar reserves where it is used to fund our imports and pay our dollar denominated debts. In that sense, dollars coming from US Bases rentals is similar to dollars coming from OFW remittances and/or Exports [aka a dollar is a dollar].” pundit blogger
There are three levels of forex reserves in the Philippines.
1. In private hands to include state owned banks 2. BSP 3. currency swap agreements of the BSP with counterparties.
Forex ownership in the Philippines is almost compeltely liberalized.
Today – the BSP does not have to supply dollars to fund imports. It also does not have to supply dollars to pay for loans or interest. Provided the private reserves are ample. Only in case of a forex crisis will the BSP intervene in any big way to support the markets.
The Treasury and the BSP are separate. The Treasury is responsible for paying the loans. Not the BSP.
cvj on Mon, 14th Jul 2008 12:47 pm
hvrds, thanks for the correction! In that case, just delete “Central Bank’s” from the quoted paragraph.
Ruffy Biazon on Mon, 14th Jul 2008 1:44 pm
I have been trying to post replies to the comments for the past three days using my home internet account, but apparently, the system is identifying my posts as spam and therefore, is blocking my messages.
I’m using my office internet connection now. I beg the indulgence of those who have been expecting a reply from me.
Ruffy B on Mon, 14th Jul 2008 1:46 pm
I have been trying to post replies to the comments for the past three days using my home internet account, but the system is identifying my posts as spam and therefore, is blocking my messages.
I’m using my office internet connection now, and I’m using a diffferent email address. I beg the indulgence of those who have been expecting a reply from me.
Ruffy Biazon
Ruffy Biazon on Mon, 14th Jul 2008 1:50 pm
Nash said:
“Dear Congressman Biazon,
Why do congressmen need drivers? The Mayor of London who presides over a budget of £Billions takes public transport, so do the generally cabinet of higher government. Former Cabinet Secretary Blunkett had a driver, but then again he is blind.
In any case, P7000 a month seems very low for a driver.”
Why do we need drivers? More productivity, of course. You may not agree, but let me give you the real score…
A congressman’s job is not just limited to attending sessions which many people think so. There are committee hearings that are held outside Batasan (such as bicameral meetings with the Senate), meetings with different government agencies located in various locations around metro manila, speaking engagements, etc. All in one day.
A congressman driving himself would have to deal with finding a parking space at his destination, which is difficult nowadays. The time consumed for such activities is time taken off from time that could be productive. While driving, the congressman has to concentrate on piloting his vehicle, but if he has a driver, he can use the time riding as a passenger to read materials pertaining to his meeting.
I drove myself before, but I felt that the time wasted with me at the wheel and looking for a parking space was time that could be made productive if I had a driver. Anyway, I had a budget for that. Yes, 7,000 is a bit low for a driver. But that is what is prescribed in the salary grad scale. It is not my decision to give him that salary. It is prescribed.
BUt even with a driver, when my schedule becomes so tight and is aggravated by the traffic, I get off my vehicle to ride public transport, particularly the MRT. There was one time that I was on the way from my district, Muntinlupa City, to a television interview in Quezon City and I got delayed by traffic on South Superhighway and Edsa. I got off in Makati and rode the MRT but was still late. So I did half of the interview via phone patch while I was on the MRT and did the other half in the studio when I got there.
There are many members of congress who are not in the image that’s usually in the minds of people. Times have changed. There are congresspersons who are down to earth, drive themselves to work, don’t use SUVs, don’t have bodyguards, etc.
All we need to do is take time to get to know them personally rather than confine ourselves to stereotypes.
mab on Mon, 14th Jul 2008 1:51 pm
the blogthread is all about the annual budget and its impact to our poor and poorest countrymen. Well the discussions went to smc-kppi, then to WW II, and nowhere. I got lost too where the discussions are going.
Its akin to GMAs use of her magic wand and empty rhetorics to mesmerize and deceive the intellectuals, middle class and even the business sectors for more than seven years so that they wont know where our country’s going.
MLQ has showed to us the past year’s budget for the entire country’s bureaucracy for us to analyze it. The question now is with those annual budgets, did our countrymen (particularly the poor and poorest) benefited? My answer is negative. The source of our annual budget came from the taxes (direct and indirect) from our pockets and sweats. It all went to her households. Her seven years mis-rule and incompetence accomplished not a thing but uncontrolled inflation (stagflation), poverty never seen before in our country, rice shortage, disasters everywhere, anomalies, etc.
Another SONA is forthcoming and she will again lay down her plans for our country on her remaining term which will be included in the annual budget. We should be vigilant of the 2009 and 2010 annual budget the appropriations for those budgets might be used unwisely to support her annointed one in the 2010 presidential elections. Just like the fertilizer scam, our ramblings in election rigging will be too late to alter the result and they can simply ignore and shut the mouth of others (like JDV) with trade-offs and money.
Ruffy Biazon on Mon, 14th Jul 2008 2:01 pm
Bert said:
“Congressman Biazon, my deep-throat source in the House of Representative whispered to me that there was an original agenda by the promoter of the junket trip to enjoy the Paquiao fight while there working in the USofA. Any idea about that, Congressman? Btw, I’m a fan of your father, the good and proper senator.”
I’m not aware of such a plan. Neither was I part of any plan of watching the Pacquiao fight. I was part of the Committee on Veterans Affairs plan which rendezvoused with GMA in Washington DC specifically for the discussion on the veterans bill pending in the US COngress.
PSI on Mon, 14th Jul 2008 2:50 pm
Representative Biazon,
While I’m not a particular fan of the administration, I agree with its decision not to lift the EVAT on fuel and food. While indeed the high costs brought hard times, these too will pass.
I believe that the more we need EVAT collections to provide opportunties to the poor and subsidize the poorest. RP severely needs the infrastructure projects, which in the medium term will generate employment (pro-poor), e.g. irrigation systems, post-harvest facilities, farm-to-market roads, port development, etc.
I hope Congress will not succumb to the populist calls. Lifting EVAT will win elections but RP will lose direction and confidence.
Go glocal: think global, but act local.
hvrds on Mon, 14th Jul 2008 3:35 pm
Out of an almost Php 1.5 trillion budget (GAA & AAL) the projected allotments for capital outlay is Php 150 billion. Deduct the overpice for the vested few of 30%-40% The country will spend around Php 100 B out of Php 1.5 Trillion plus for capital outlay.
We are not counting the inflationary efects on that nominal cost.
To get out of the rut the country is in it will have to spend close to 30-40% of that for the foreseavble future to develop human capital (health and education) and physical infrastucture. Public capital stock
KG on Mon, 14th Jul 2008 3:50 pm
thanks for the explanation on Forex reserves.
about that 37 B, BSP has a table to show the breakdown.
http://www.bsp.gov.ph/publications/tables/2008_07/news-07072008a1.htm
rego on Mon, 14th Jul 2008 4:34 pm
Congressman Biazon,
I really like what you are doing. Do you have a plan to run for senator in 20 10?. I will definitely vote for you.
BTW can you give us some updates on whta you have been doing in the congress ? Any bill being work on> What are your advocacies? etc etc..
UP n student on Mon, 14th Jul 2008 5:33 pm
to congressman biazon: it makes sense for …. All [the people] need to do is take time to get to know [the members of Congress] personally rather than [remain with] stereotype [thinking]. but it is quite inefficient. [ Just think of the number of visitors to your office.
twenty-percent of them hoping for coffee or a cup of water. ]
I believe the various stereotype caricatures that the public has against members of Congress is a penalty you’ll have to pay (just like stereotypes against bishops or movie stars) and “what-to-do?” may be answered by this (more efficient) periodically repeated advice from someone’s “my favorite grandmother”, periodically repeated —
mab on Mon, 14th Jul 2008 5:39 pm
Most likely a trillion pesos budget for 2009 and 2010 which will be coupled to the visions of GMA in her forthcoming SONA. I hope she will have new goals to announce rather than the last year’s super regions which didnt fly. Probably, floating again her dream for our country of becoming an NIC 20 years from now.
Comparing our country’s accomplishment with Malaysia which has vision for NIC by 2020, it looks like we were left behind by decades. Malaysia has devoted its resources to NIC goal by 2020 as best exemplified by research-oriented type of their higher education with support from UK’s reknowned universities to pursue science and technology (nanotechnology). Their Ministry of Science, Technology and Innovation are miles ahead of our DOST. Time will come when Malaysians will think of us as good for lowly jobs incapable of technical work. In fact, they are now slowly repatriating our countrymen allegedly illegally staying in Sabah as they consider them not only as burden to their economy but also as no use to them. Even if you are an illegal alien if you have the necessary knowledge and skills which they need, they will certainly retain you.
Thanks for HVRDS’s prescription-
“To get out of the rut the country is in it will have to spend close to 30-40% of that for the foreseable future to develop human capital (health and education) and physical infrastucture.”
Has GMA and our legislators wonder why the bulk of our OFWs are working as domestic helpers, caregivers, janitors and other lowly jobs even if they are graduate of 4 year course? Shall we allow these loss of dignity and respect of our countrymen in the coming years?
I hope Congressman Biazon will help us rebuild our country from this rut.
UP n student on Mon, 14th Jul 2008 5:43 pm
PSI: There is no EVAT on rice, meat, vegetables.
From …Atty. Nenette G. Epon of the Bureau of Internal Revenue (BIR), Revenue Region 16’s Legal Division, to answer queries from a consumer who complained that a certain big store in Cagayan de Oro City had based the computation of the 12% EVAT on the gross of the groceries she bought.
. . . .
“Remember, the EVAT is only imposed on goods which had undergone some kind of processing but agricultural and marine products in their original state, such as vegetables, meat, fish, fruits, eggs and rice are not included,” Epon explained.
http://www.pia.gov.ph/?m=12&r=R10&y=08&mo=07&fi=p060216.htm&no=12
UP n student on Mon, 14th Jul 2008 5:52 pm
Other items not subject to the EVAT, as specified in Rep. Act. 9337, are the lease of residential houses not exceeding Php10,000 monthly, educational services rendered by both public and private educational institutions and books, newspapers and magazines.
Also EVAT-exempt are sales of establishments and by persons earning not more than Php1.5 million annually, which could include sari-sari stores, carenderias and street vendors.
UP n student on Mon, 14th Jul 2008 5:54 pm
… but leaving tips… that’s okay.
The Ca t on Mon, 14th Jul 2008 6:05 pm
Really?
When a company imports, it uses the letter of credit which pays the foreign supplier with the curreny of exporting country or in dollar.
Even before the goods arrived, the required marginal deposit in terms of foreign currecy is already earmarked from the dollar reserves of the country.
The marginal deposit is set to control the outflow of dollars. There are goods which marginal deposit is only half of the total letter of credit; others are 100 per cent or 110 per cent of the total amount.
When the goods arrived, the foreign supplier is paid thru the bank. It is a bank to bank transaction. Foreign suppliers present the invoice and bill of lading to the corresponding bank in their country; bank pays. The corresponding bank demands payment from the local bank where the LC is
opened using its foreign currency reserves.
During economic crisis, when dollars are not available and BSP controls outflow, it is difficult to import.
The Ca t on Mon, 14th Jul 2008 6:23 pm
Right you are.
The other items mentioned should have a caption , sources of dollars and other foreign currency which add to our reserves.
Then we’ll talk about balance of payments which is the difference between the dollar receipts and the dollar payments involving importation, payment of loans and interests, repatriation of MNCs profits to their countries.
Whatever is the difference goes to our dollar reserves.
What is our dollar reserves? It is the amount of dollars that we have to maintain expressed in terms of percentage of our GDP.
Average is 20 per cent of the GDP.
Example: beginning dollar reserves 100
Dollar receipts thru:
OFW remittances
Exports
Rentals
Etc. 1000
Less: Balance of
payments
Imports
loan payments
etc. 900 100
Total 200
But if the payments exceed the receipts, there will be deficit which will reduce the dollar reserves. If the amount is less than the required 20 per cent, the government has to buy dollars.
SO you can see how the OFW remittances helped the country? not because it can be spent like it would like earnings from taxes.
Ow so how do the government get the dollars when they are owned by the
OFWs.
When the OFWS receive the remittances, either they are already converted to pesos or they exhange them for pesos.
The banking system gets the dollar; the OFWs get the pesos to spend.
Dollar accounts in the banks are accounted in the dollar receipts.
The Ca t on Mon, 14th Jul 2008 6:33 pm
Ano raw?
The OFWs spending does not create employment directly. The spending may boost production of some goods because of the demand created and the need to supply.
If the OFW decides to go into business and hire employees, then employment is generated. But the question, how big is the business that it would create employment. Usually the OFWs embarked on cottage industries which required families as employees which may only number around one or more but not significant to be called employment generation.
They do not get even paid like regular employees. Thus their incomes are not coounted for in the GDP. GDP becomes understated.
The Ca t on Mon, 14th Jul 2008 6:41 pm
This is correct. When I was in the Philippines, when parking buildings are still few, I had also a driver to attend meetings in Makati and other Metromanila areas where parking was a nightmare. The driver lets me get off close to the building where I was going, he leaves me to park the car somewhere and waits for my beep or call.
People do not realize that we are paying the solons or the managers in private firms not for their skills to type,(thus there is a need of staff, silly) to drive or to research. We are paying then to think and decide.
hvrds on Tue, 15th Jul 2008 1:48 pm
When capital and current accounts are under a liberalized regime, private entities including banks are allowed to own their savings in dollars.
Families of OFW’s and exporters do not have to exchange their dollars with the banks any more. They can maintain their own dollar accounts or if they wish they can exchange them for pesos and sell them to anyone they wish.
That is what a liberalized current and capital account means. Private interests decide on what they want to do with their dollar or forex earnings.
Banks are now allowed to keep dollars as part of their own stock. If they need dollars to make payments they buy dollars from the trading floor of the BAP… Banks with excess from their own reserves or their clients sell dollars on the floor of the BAP forex exchange.
The BSP simply stands by and smoothens out the volatility in the markets to temper surges in the forex rates either way.
It is amazing that at this day and age so many preconceptions about the forex markets still persist in the country.
cvj on Tue, 15th Jul 2008 3:34 pm
hvrds, thanks for clearing up the preconceptions. my dad worked in the forex department of the Central Bank from the late 40’s up to the early 80’s so it didn’t register to me that today’s BSP is no longer my Dad’s CB.
The Ca t on Tue, 15th Jul 2008 5:11 pm
True, that has been going on ever since. During the time of Marcos, if you withdraw fron your dollar accounts, you will be penalized.
When I say the OFWs and their families exchange their dollars, they do, because they have to spend it pesos anyway.
Whether the money is exchanged in the banks or in the other money exchangers, it is still accounted for in the banking system.
Even the remittances of OFWs who send door to door are fully accounted for in the banking system thru the remittance companies which are often owned by banks.
The Ca t on Tue, 15th Jul 2008 5:36 pm
But of course. There are so many transactions that they need to have their own stock of dollars. travellers checque, dollar withdrawals, bank to bank remittances in dollars.
It is not like depositing their dollars with the BSP and withdrawing them when needed.
Banks are only required to keep a minimum reserve requirement for the total
transactions conducted everyday which they deposit with the BSP. The provincial banks which cannot do so are required to keep them in their vault or with other banks.
When audited the banks are fined a certain percentage of the amount that they should have maintained as a way of protecting the bank clients that the banks are not overwithdrawn.
The account in the BSP of marginal deposits are not BSP’s because you do not import thru BSP but with the commercial banks.
This is some kind of monitoring of the dollar movements. Otherwise, those which are not reported and are remitted abroad are what you call cases of money laundering.
The Ca t on Tue, 15th Jul 2008 5:37 pm
But of course. There are so many transactions that they need to have their own stock of dollars. travellers checque, dollar withdrawals, bank to bank remittances in dollars.
It is not like depositing their dollars with the BSP and withdrawing them when needed.
Banks are only required to keep a minimum reserve requirement for the total
transactions conducted everyday which they deposit with the BSP. The provincial banks which cannot do so are required to keep them in their vault or with other banks.
When audited the banks are fined a certain percentage of the amount that they should have maintained as a way of protecting the bank clients that the banks are not overwithdrawn.
The account in the BSP of marginal deposits are not BSP’s because you do not import thru BSP but with the commercial banks.
This is some kind of monitoring of the dollar movements. Otherwise, those which are not reported and are remitted abroad are what you call cases of money laundering.
DevilsAdvc8 on Wed, 16th Jul 2008 2:59 am
don’t i know it.
it’s there, staring us in the face!
btw, me tumawag na ba ng exorcist?
bad trip kasi ako sa mga multo.
nash on Thu, 17th Jul 2008 5:19 am
dati na pong successful and vietnam, naantala lang ng sandali ng mga french and americans.
nash on Thu, 17th Jul 2008 5:24 am
“All we need to do is take time to get to know them personally rather than confine ourselves to stereotypes.”
I don’t know whether to laugh or to cry at this statement. The logic and relevance of this I cannot follow with respect to good governance.