Académique Documents
Professionnel Documents
Culture Documents
T H E
NATION
Report
This week the Judicial and Bar Council is set to draw up its short list of nominees for Chief Justice. Heres how they are likely to winnow down the 20 to a highly select few and who have the best chances to be on the sheet given to the President Status quo: The Supreme Court lets Congress cast two JBC votes for now
WORLD
Want to get a Harvard, Princeton, and Stanford education without having to leave home or pay top dollar? Free online courses from world-class universities are proliferating e-Syllabus: Sign up here for courses ranging from American poetry to applied cryptography Brains and bytes: Asia's centuries-old value for higher education combines with high technology to extend learning opportunities across the region Work-study: Tips on passing courses while holding down a job
BUSINESS
As urged by President Benigno Aquino III in his State of the Nation Address, Congress seems set to finally past the sin tax bill amending excise levies on tobacco and alcohol. The health of millions of Filipinos, especially smokers, drinkers and the poor, depend on it
TECHNOLOGY
Rising labor costs and the dwindling pool of skilled workers is prodding China and other manufacturing nations to go the robotics route, just like Japan and the West did decades ago. Get set for manlike machines doing all manner of work Made in the Philippines: Home-grown, prize-winning robotic gear Remote control: Here comes the avatar economy
POINT & CLICK You can access online research via the Internet by clicking phrases in blue
HEALTH/LIFESTYLE
Promising tests of an experimental dengue vaccine hold out hope of finally laying the deadly virus to rest. But the war on disease must be waged not just in the lab, but more so on the ground and in the water Killer bugs hard to kill: Aedes aegypti mosquitoes are a tough breed
CONTENTS
TECHNOLOGY
HEALTH/LIFESTYLE
Center for Strategy, Enterprise & Intelligence provides expertise in strategy and management, enterprise development, intelligence, Internet and media. For subscriptions, research, and advisory services, please e-mail report@censeisolutions.com or call/fax +63-2-5311182. Links to online material on public websites are current as of the week prior to the publication date, but might be removed without warning. Publishers of linked content should e-mail us or contact us by fax if they do not wish their websites to be linked to our material in the future.
NATION
cenSEI
T H E
Report
The CenSEI Report looks at the eight likeliest candidates to succeed departed Chief Justice Renato Corona
By Atty. John Carlo Gil M. Sadian
The Judicial and Bar Council (L-R): Academic Representative Jose V. Mejia; Retired SC Representative Justice Regino C. Hermosisima, Jr.; Office of the President Undersecretary Michael Frederick D.L. Musngi; Supreme Court Justice Diosdado M. Peralta, who chaired the proceedings; Rep. Niel C. Tupas, Jr., who represented Congress via a gentleman's agreement with Senator Francis G. Escudero due to the recent decision of the Supreme Court that Congress is only entitled to one seat; Private Sector Representative Justice Aurora Santiago-Lagman; and Integrated Bar of the Philippines Representative Atty. Maria Milagros Nolasco Fernan-Cayosa. (Supreme Court photo)
STRATEGY POINTS
The Judicial and Bar Council is meeting on August 6 to fulfill its constitutional mandate of nominating for the Presidents consideration the best candidates to succeed Corona If the JBCs previous voting process is any indication, the incumbent Supreme Court justices have the edge, and outsiders will really have to impress the council to make the short list
ith the Supreme Court Resolution temporarily allowing two members of Congress to sit in the Judicial and Bar Council (JBC), there is no stopping the councils scheduled Aug. 9 deliberation on the final short list of nominees for the vacant position of Chief Justice that would be submitted to the President. To comply with the constitutional requirement that a vacancy in the High Court be filled within 90 days from vacancy, the President would have only until August 27 to pick one from the short list of at least three nominees from the JBC. As recognized by tradition, this list is non-negotiable, i.e., the President cannot ask for a revision of the list so as to include other nominees.
PREVIOUS PAGE
NEXT PAGE
How the JBC will probably vote. The process by which the JBC selects the names to be included in the short list is actually an internal matter among its members. The practice is for each member to cast their votes for a predetermined number of nominees, depending on the number of such nominees and the vacancies to be filled. A preview of how JBC members might vote can be seen in our data from the JBC deliberations for the replacements of Justices Antonio Nachura and Conchita Carpio Morales. For these two vacancies, there were a total of 30 nominees from which the JBC would choose six names (three for each vacancy). What the JBC did was for each member to select ten nominees, and then tally the total. The six nominees who got the highest number of votes were included in the short list that was submitted to President Aquino. Court of Appeals Justices Bienvenido Reyes (6 votes) and Estela PerlasBernabe (5 votes) were eventually appointed. Note that among the current nominees for the vacant Chief Justice post, Solicitor General Francis Jardaleza (0 vote), human rights lawyer Katrina Legarda (0 vote), UP Law Dean Raul Pangalangan (3 votes), Comelec Commissioner Rene Sarmiento (1 vote), and UE Law Dean Amado Valdez (1 vote) were among those who got the lowest number of votes for those previous Supreme Court vacancies. In the past, whenever the post of Chief Justice was vacated, the JBC automatically nominated the five most senior incumbent justices of the Supreme Court. Although outsiders were considered for the long list of nominees, the JBC had never included an outsider in the short list. For the present vacancy, we have yet to see whether outsiders would be included in the short list considering that six of the nominees are incumbent high magistrates. For now, what is certain is that the six justices have the strongest chance of being included in the short list, notwithstanding the Presidents preference. After seeing the nationally televised public interviews of the nominees, The CenSEI Report
TALLY SHEET Two (2) positions of Associate Justice SUPREME COURT (vice Hon. Antonio Eduardo B. Nachura and Hon. Conchita Carpio-Morales) June 21, 2011 1 2 3 4 / / / / 5 / 6 / 7 8 TOTAL 2 2 2 5 1 0 4 2 2 0 6 2 5 3 0 0 1 3 1 4 6 7 7 4 1 4 1 2 1 2
1 Abdulwahid, Hakim S. 2 Bato, Ramon, Jr. M. 3 Bautista, Lovell R. 4 Bernabe, Estela P. 5 Bruselas, Apolinario, Jr. D. 6 Cabili, Tomas O. 7 Carandang, Rosmari D. 8 Castaeda, Juanito, Jr. C. 9 Castillo, Mariflora P. 10 Cruz, Stephen C. 11 De Leon, Magdangal M. 12 Dicdican , Isaias P. 13 Dimaampao, Japar B. 14 Fernando, Remedios S. 15 Jardeleza, Francis H. 16 Legarda, Ma. Carolina T. 17 Padilla, Sabino IV B. 18 Pangalanan, Raul C. 19 Quiroz, Alex L. 20 Reyes, Andres, Jr. B. 21 Reyes, Biemvenido L. 22 Reyes, Jose, Jr. C. 23 Robles, Rodolfo D. 24 Sanidad, Pablito, Sr. V. 25 Sarmiento, Rene V. 26 Tijam, Noel G. 27 Valdez, Amado D. 28 Veloso, Vicente S. E. 29 Vilches, Nimfa C. 30 Villaruz, Francisco, Jr. H.
/ /
/ / / / / / /
/ /
/ / / / / /
/ / /
/ /
/ / / / / /
/ / / / /
/ / / /
/ / / / /
/ /
/ / /
/ / /
/ / / / /
/ / / /
/ / / / /
Ballot No.: 1- Chief Justice Renato C. Corona 2 - Secretary of Justice Leila M. De Lima 3 - Senator Francis Joseph G. Escudero 4 - Congressman Niel C. Tupas, Jr. 5 - Justioce Regino C. Hermosisima, Jr. 6 - Justive Aurora Santiago-Lagman 7 - Atty. Jose V. Mejia 8- Atty. Maria Milagros N. Ferman-Cayosa The result of the voting was as follows: Reyes, Jose, Jr. C. Robles, Rodolfo D. De Leon, Magdangal M. Reyes, Bienvenido L. Bernabe, Estela Perias Dimaampao, Japar B.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
5
looks into the qualifications and the mindsets of eight of the likeliest candidates to succeed Renato Corona as Chief Justice. Seniority rules. Section 11 of the Judiciary Act of 1948 provides the seniority rule that governs the Supreme Court. Nonetheless, even without this law, it is an accepted fact that seniority is one of the most important features of the High Court. The evidence can be seen in every corner of the Court: the sitting arrangement of the justices, the order their names are listed, the distribution of members in the Divisions, and even the sequence of their entry in the session hall. All of these prove that seniority indeed matters for the justicesa lot. This probably explains why the JBC has this tradition that only the five most senior justices are nominated whenever the position of Chief Justice is vacated. And indeed, seldom does it happen that the most senior of these five is bypassed by the President. That is why some were surprised when President Gloria Macapagal Arroyo broke tradition twice, when she chose Artemio Panganiban over Reynato Puno in 2005 and Renato Corona over Antonio Carpio in 2010. The circumstances surrounding the untimely vacancy in the Chamber of the Chief Justice would once again present an opportunity for tradition to be broken. Not only could the most senior justiceor the five most
The Supreme Court lets Congress cast two JBC votes for now
By Mary Grace V. Pulido High Tribunal declares 8-man Judicial and Bar Council composition unconstitutional, but withholds execution of the ruling to allow both Senator Francis Escudero and Rep. Niel Tupas to participate, for now DECISION: Francisco I. Chavez vs. Judicial and Bar Council G.R. No. 202242, July 17, 2012, per J. Jose Mendoza Facts: When the Judicial and Bar Council (JBC) announced the opening of nominations for the position vacated by the impeached Chief Justice Renato Corona, the name of former Solicitor General Francisco Chavez was among those who were nominated for the position. While he did not accept his nomination, he nonetheless questioned the present eight-member composition of the JBC as contrary to the express provision of the 1987 Constitution, which provides that the JBC shall have seven members. The Senate and the House of Representatives would send alternate representatives to the JBC until 1994, when Congress started sending two representatives in the JBC with one-half vote each to represent each chamber. Then in 2001, the JBC allowed both representatives of Congress to have one full vote each, thereby increasing the number of votes in the JBC to eight. Main Issue: Whether or not the practice of having two (2) representatives from each house of Congress with one (1) vote each is sanctioned by the Constitution. Ruling: Voting 7-2, the Court ruled that the current numerical composition of the JBC violates Section 8(1), Article VIII of the Constitution. According to Justice Jose Mendoza, It is clear, therefore, that the Constitution mandates that the JBC be composed of seven (7) members only. Thus, any inclusion of another member, whether with one whole vote or half (1/2) of it, goes against that mandate. Section 8(1), Article VIII of the Constitution, providing Congress with an equal voice with other members of the JBC in recommending appointees to the Judiciary is explicit. The Court agreed with Chavez that the use of the singular letter a preceding representative of Congress is unequivocal and leaves no room for any other construction. It is indicative of what the members of the Constitutional Commission had in mind, that is, Congress may designate only one (1) representative to the JBC. Had it been the intention that more than one (1) representative from the legislature would sit in the JBC, the Framers could have, in no uncertain terms, so provided.
PREVIOUS PAGE
NEXT PAGE
The Supreme Court en banc hears Senator Arroyo: Supreme Court Justice Diosdado M. Peralta (seated center at the High Bench) presides over the Supreme Courts oral arguments on August 2, 2012 on the motion for reconsideration filed by Office of the Solicitor General representing Senator Francis Joseph G. Escudero and Rep. Niel C. Tupas, Jr. Participating in the oral arguments are Justices Bienvenido L. Reyes, Jose Portugal Perez, Roberto A. Abad, Lucas P. Bersamin, Peralta, Mariano C. Del Castillo, Martin S. Villarama, Jr., Jose Catral Mendoza, and Estela M. Perlas-Bernabe. Appearing before them is Senator Joker P. Arroyo. (Supreme Court photo) It further stressed that the word Congress used in Article VIII, Section 8(1) of the Constitution is used in its generic sense. No particular allusion whatsoever is made on whether the Senate or the House of Representatives is being referred to, but that, in either case, only a singular representative may be allowed to sit in the JBC. The Court also noted that the seven-member composition of the JBC serves a practical purpose, that is, to provide a solution should there be a stalemate in voting. According to Justice Mendoza, a single vote may not be divided into half (1/2), between two representatives of Congress, or among any of the sitting members of the JBC for that matter because this can possibly cause disorder and eventually muddle the JBCs voting process, especially in the event a tie is reached. Thus, the Court concluded that the Framers of the Constitution knew that an odd composition is the best means to break a voting deadlock. This ruling, according to its dispositive portion, was supposed to be immediately executory. How the Justices Voted: 8-MEMBER JBC UNCONSTITUTIONAL: 7 votes D. Peralta, L. Bersamin, M. Villarama, J. Perez, J. Mendoza, B. Reyes, E. Perlas-Bernabe 8-MEMBER JBC CONSTITUTIONAL: 2 votes R. Abad, M. Del Castillo INHIBITED: 5 votes A. Carpio, P. Velasco, T. Leonardo-De Castro, A. Brion, M. Sereno RESOLUTION: Francisco I. Chavez vs. Judicial and Bar Council G.R. No. 202242, August 3, 2012, Minute Resolution Acting on the Motion for Reconsideration filed by the Office of the Solicitor General, the Supreme Court issued a Resolution on August 3, 2012 suspending the effect of the Courts July 17 Decision that declared the eight-man composition of the JBC unconstitutional. According to the Court, pending final resolution of the Motion for Reconsideration, any immediate execution of the July 17 Decision poses a possibility that Congress may be under-represented in the JBC. In the same vein, forestalling the July 17 Decision presents a likelihood of an unconstitutional overrepresentation of Congress in the JBC. Thus, confronted with the risk of under-representation or over-representation of Congress in the JBC, the Court [found] it in the best interest of justice that all of the justices, including those who inhibited, be given the opportunity to take part in the final deliberations and resolution of this petition. Thus, the Court resolved that it is more equitable for the present members of the JBC to resume their task of selecting nominees for the vacant position of Chief Justice pending final resolution of the petition. Note that out of the 14 justices, only nine participated, with five of the six nominees for the position of Chief Justice inhibiting themselves. Among the nominees, only Justice Abad participated, saying that he found no compelling reason to inhibit. He dissented from the majority.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
7
seniorbe bypassed, we could even have a Chief Justice with no previous judicial service. The CenSEI Report presents its most likely nominees whose names would probably be included in the coveted short list to be submitted for the Presidents consideration. dissenters who automatically voted together in politically sensitive cases involving the Arroyo Administration. The tandems strong dissents started when the Sigaw ng Bayan initiative reached the High Court. The deeply divided Court thumbed down the proposed constitutional amendments that would have shifted the countrys form of government from presidential to parliamentary. Carpio wrote the decision that tagged the initiative as a gigantic fraud on the people. Since then, Carpio and Morales most of the timeif not all the timesided against the Arroyo Administration in politically sensitive cases that reached the Court. During his JBC interview, Carpio said that had he wanted to become Chief Justice, he would have not voted against Arroyo in these cases. Carpio highlighted his falling out with Presidents Ramos and Arroyo when they tried to touch the Constitution. According to him, The Constitution shouldn't be amended for one person. It should be enduring. He also denied being part of an all-boys club, stressing that the strong dissents among the magistrates prove that no such club exists. He also denied that his fraternity influences his decisions, citing his vote to dismiss a member of Sigma Rho from the Court of Appeals. Carpio also believed that tradition should be followed by appointing an incumbent magistrate as Chief Justice. He made this point by showing his familiarity with the problems hounding the judiciary and the reforms that the Court is implementing to address the clogged dockets. He stressed the need for computer-literate judges and an online case management system. While he advocated for transparency, he maintained that the discussions among the justices and their draft decisions must remain confidential. Carpio also denied having a hand in the Corona impeachment. When asked what he would do had he been in Coronas shoes, Carpio said that he would have resigned right away had he
If we look friendly, it is because we have no choice. Your ally today in the case could be your enemy tomorrow. You have to be civil to each other. There are no permanent enemies, friends in court. It is not unknown to many that Senior Associate Justice Antonio Carpio had long been in line to become Chief Justice. Being President Arroyos first appointee to the High Court at the age of 54, he became the most senior member of the Court way back in 2006. While Carpio had no prior experience in the judiciary before joining the Supreme Court, his ten years as part of the Court may give him an edge above the other nominees. An economics degree-holder from the Ateneo de Manila, Carpio graduated cum laude from the University of the Philippines College of law in 1975 and placed sixth in that years bar exams. He started his career in private practice, eventually founding Carpio Villaraza & Cruz, a law firm that later be known as The Firm. He joined the government when he was invited by President Fidel Ramos to be his Chief Presidential Legal Counsel in 1992, only to leave Malacanang when he disagreed with the Ramos Administrations last-minute efforts to amend the Constitution. He went back to The Firm and engaged in private practice until his appointment to the High Court. Carpio and his cousin Conchita Carpio Morales would later earn the reputation of being the
PREVIOUS PAGE
NEXT PAGE
misdeclared his SALN the way Corona did as it was the dignified way.
move on and the Court must continue its job as prescribed by the Constitution. Teresita J. LeonardoDe Castro. 63, UP, 1972 Bar, 80.90% The judiciary is not for the weak of heart. It is not for the timid... Being a chief justice would be a great honor, but there will be pressure to prove myself to be worthy. As the third most senior member of the High Tribunal, Associate Justice Teresita LeonardoDe Castro was also nominated for Chief Justice in 2010. A Bachelor of Arts graduate from UP, she finished law in the same school in 1972. De Castro started her career in government as a law clerk in the Supreme Court. She later transferred to the Department of Justice and there rose from the ranks to become Assistant Chief State Counsel. She rejoined the judiciary when she was appointed by President Ramos to the Sandiganbayan, a court she would eventually head in 2004. She penned the decision convicting President Joseph Estrada of plunder. When asked whether she thinks her seat in the Supreme Court was a reward for the Estrada conviction, Justice De Castro answered in the negative, asserting that her promotion to the Supreme Court was something she deserved and that the Estrada trial even delayed her promotion. She values her career in government and believes that this made her ready for the highest judicial post. Justice De Castro also said that the justices had nothing to do with the ineligible expenditures covered by the controversial aide memoire sent by the World Bank to the Court in December 2011 regarding the US$199,000 ineligible funds that the bank said were spent on activities and projects not covered by the 2003 loan agreement between the bank and the Supreme Court. The
Presbiterio J. Velasco, Jr. 63, UP, 1971 Bar, 89.85% (6th place)
I initially thought Carpio should be appointed since he's the most senior associate justice, because I strictly follow the seniority in our court. But, I realized I have a wealth of experience behind me. Being the second most senior member of the Court, Justice Presbiterio Velasco Jr. is one of the automatic nominees for Chief Justice. He was already nominated for this position when Chief Justice Puno retired in 2010, but he declined then. This time, he initially wanted to decline again but eventually changed his mind, saying, I realized I have a wealth of experience behind me. He took up political science at UP and went on to be graduated from its College of Law in 1971. He placed sixth in that years bar exams. Velasco was a private practitioner before he joined government as JBC member representing the Integrated Bar, and later on, as Justice Undersecretary under President Ramos. He joined the judiciary in 1998 as a justice of the Court of Appeals and eventually became Court Administrator prior to his appointment as a magistrate of the Supreme Court. Justice Velasco believes that economic growth is dependent on the performance of the judiciary. Foreign investors, according to him, would only come if they perceive the courts as predictable, uniform, consistent. He also advocates free legal aid, especially to pauper litigants, by requiring new lawyers to render free legal service for one year. While he recognized that there was sadness when Chief Justice Corona was removed from office, he believes that the country should
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
9
lady justice, who heads the Judicial Reform Support Project (JRSP) management committee, clarified that there was nothing unlawful or illegal with the use of the funds. The aide memoire only said that the expenditures should not be charged to the loan... and that there should have been prior agreement with the bank, which made them ineligible. thinks is absolute. The second independence is institutional, one that is supportive of the decisional. It would involve cooperation with, not hostility toward the other branches of government. Justice Brion was also asked about his reputation in the Court as Mr. Immutability. He explained that he is of the belief that as long as the Court prohibits the filing of any second motion for reconsideration of their decisions, then the Supreme Court should be considered immutable. Roberto A. Abad. 68, Ateneo, 1968 Bar, 81.70% We have a wounded court, especially after the impeachment trial. If I become CJ, the first thing
to do is forgive. I hope the president will forgive us, I hope we can reconcile with the legislature. Although he is not among those automatically nominated by the JBC, Associate Justice Roberto Abads name is included in the list after being nominated by UST Law Dean Nilo Divina. The Courts number 8 justice finished law at Ateneo de Manila, but was recruited by then-Chief Justice Roberto Concepcion to teach law at UST. He was Dean of UST law prior to his appointment to the Supreme Court. When asked regarding his thoughts on Coronas impeachment, Justice Abad said he believes that It was healthy because made the Court look into its inner being. He also said that he supported Corona because he is a friend. He clarified, however, that he is not going to betray the constitution for a friend. Justice Abad also said if one is qualified, it does not matter whether one is an incumbent justice of the Court or an outsider. He nonetheless recognized the natural bias for an insider, his performance [being] already tested and on the
Ang Korte Suprema natin ay malakas. Kailangan lamang natin ng malakas na liderato upang makapunta kung saan dapat puntahan. Also automatically nominated is the fourth most senior member of the Supreme Court, Associate Justice Arturo Brion. A Mathematics degreeholder from the San Pablo Colleges, he took up law in the Ateneo de Manila and finished valedictorian and cum laude in 1974. He topped that years bar exams. He also holds an Ll.M. from York University in Toronto. After a stint in private practice, Brion joined the Ministry of Labor in 1982 in what would be a fruitful government career focused on labor law. He was later on appointed Court of Appeals justice, only to return to the executive as President Arroyos Secretary of Labor before his appointment to the High Court. When asked whether the judiciary was weakened by the Corona impeachment, Justice Brion disagreed, saying that the judiciary is strong and that it just needs a strong leadership to steer it towards the right course. He said that he dreams of an independent court that is full, effective and co-equalOne that is a partner of other departments in nation-building. On judicial independence, Justice Brion envisions two kinds of independence. One is the Courts decisional independence which he
PREVIOUS PAGE
NEXT PAGE
10
record. He added that Appointing an outsider CJ is risky. Citing his dissenting opinion against the Courts ruling declaring the unconstitutionality of the Truth Commission, Justice Abad stressed that he has independence, saying that I was appointed by Arroyo but I voted that the Truth Commission was constitutional. Ma. Lourdes P. AranalSereno. 52, UP, 1984 Bar, 89.10% (14th place)
have strong intuition, can take in so much work and burdens. Thus, she claimed she can take on the task of being Chief Justice because she believes that she can lead fellow justices even if she often gives dissenting opinions. When asked whether she can heal the judiciary, she responded by asking what there is to heal, stressing the point that despite heavy dissenting opinions against each other, the justices still manage to get together for lunch and laugh at each others jokes. She also said that despite being the youngest magistrate in the High Court, she does not see any problem in leading the other justices as she already had experiences in the past where she had older people work under her. Justice Sereno also took the chance to clarify that she did not push for 10 billion as just compensation for the Cojuangcos in the Hacienda Luisita case. She said that she merely dissented as to the time the taking of the hacienda would be determined and that no value was ever discussed during the deliberations. Leila M. de Lima. 51, San Beda, 1985 Bar, 87.02% (8th place) In this day and age, it has been proven that the Supreme Court is not as infallible as we think it is. They are human beings. The only outsider with a real shot at being appointed Chief Justice, President Aquinos Justice Secretary, Leila de Lima, was nominated by the Volunteers against Crime and Corruption. A History and Political Science graduate of De La Salle University, she took up law at San Beda, where she finished as class salutatorian in 1985, placed eighth in that years bar exams. She started her career as a staff in the Supreme Court, but later on engaged in private practice, specializing in Election Law. She served as Chairperson of the Commission on Human Rights
The Supreme Court is not in a position to correct a historic injustice if it is not in conformity with the law.
President Aquinos first appointee to the Supreme Court, Associate Justice Ma. Lourdes Sereno, the Courts number 12 justice, was also nominated by Felma Roel Singco, Raegan de Guzman, and Fidel Thaddeus Borja. An economics graduate of Ateneo de Manila, she tool up law at UP and graduated cum laude, placing 14th in the 1984 bar exams. She also has an Ll.M. from the University of Michigan. At the age of 51, she is one of the youngest appointees to the Supreme Court and would serve there until her retirement in 2030. She was part of the think-tank of the Asian Institute of Management prior to her appointment to the High Court. Serving as government counsel in different cases, one of her most controversial cases was the Fraport case filed by the German government against the Philippine government concerning the NAIA Terminal 3 Project. Before Corona was impeached, the Palace stated that the next chief justice must be in the mold of Justice Sereno. During her JBC interview, Justice Sereno spoke with a heightened degree of passion, so when asked where she gets such passion, she responded that she was born that way: a person with enthusiasm for life. She also said that lady justices
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
11
under the Arroyo administration before joining the Aquino administration. Downplaying questions as to her independence, De Lima assured the JBC that she would try her best effort to maintain her independence amid the speculation that a Cabinet secretary is beholden to the appointing power. Im an alter ego but this does not necessarily mean that Ill succumb to every whim of the appointing power. She also belittled the disbarment cases pending against her, saying that these were merely harassment cases. These cases were anchored on her defiance of a Supreme Court temporary restraining order (TRO) that was supposed to allow former President Arroyo to leave the country back at a time when no criminal charges had yet to be filed against the former leader. De Lima denied defying the TRO issued by the Supreme Court, saying, There is no defiance of the TRO. I did not willingly defy the TRO. It was a matter of the former president hurriedly and prematurely trying to leave the country in spite of the case and in spite of the non-service of the TRO. Nonetheless, despite her strong chances of being appointed by Aquino, her inclusion in the short list is now in jeopardy as the Integrated Bar of the Philippines dismissed her motion to have the disbarment cases against her dropped. Instead, the IBP Board directed the Investigating Commissioner to proceed with the formal investigation of her case. If the disbarment cases remain until Thursday August 9, then De Lima will not be considered for the JBC short list in compliance with Rule 4 Section 5 of the JBC Rules, which provides that those with pending criminal or regular administrative case are disqualified from appointment to any judicial post.
Francis H. Jardaleza. 62, UP, 1974 Bar, 88.35% (3rd place) With all due respect, experience is not indispensable.
Another outsider who might have a chance to make it to the JBC short list is currently the top lawyer of the Aquino administration. Solicitor General Francis Jardeleza graduated cum laude from the UP College of Law in 1974 and placed third in that years bar exams. He also got his Ll.M. degree from Harvard. After passing the bar, Jardeleza engaged in private practice and also became a foreign associate in a New York law firm. He served as senior vice president and general counsel of San Miguel Corporation from 1996 until his appointment as Deputy Ombudsman for Luzon in 2010. President Aquino designated him Solicitor General in February this year. Having served as counsel for San Miguel Corp., Jardaleza was asked whether he was privy to the coconut-levy funds case involving Eduardo Danding Cojuangco Jr., the Presidents uncle, who was a principal administrator of the controversial Marcos-era program that exacted taxes from coconut farmers that eventually became involved in the acquisition of San Miguel Corp. While he answered that he was not privy as he was only counsel for San Miguel in some cases, he nonetheless admitted having some degree of knowledge as San Miguel corporate secretary. When asked whether he can fulfill the duties of a Chief Justice considering his lack of judicial experience, he told the JBC that with his experience dealing with budgets of corporations and the Ombudsman, with all humility, he was able to cope.
PREVIOUS PAGE
NEXT PAGE
12
Nation
Department of Justice failed to prove and substantiate its allegations of rebellion against the Ampatuans. Ampatuan patriarch Andal Sr. and his sons and allies were cleared of the charge. The case arose from the brutal incident in 2009 that resulted in the death of 57 people.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
13
WORLD
cenSEI
T H E
Report
How Harvard, MIT, Stanford, and Princeton are making access to higher learning less exclusive
By Marishka Noelle M. Cabrera
STRATEGY POINTS
Online education programs like Coursera and edX aim to bring first-class learning to millions around the world for little or no cost Higher education is seen as vital to boosting workers skills, labor productivity, competitiveness, and growth Asian nations are embracing the use of ICT in delivering education for overall development
PREVIOUS PAGE
NEXT PAGE
14
In
the tradition of, well, tradition, an Ivy League education is believed to be reserved for the worlds crme de la crmethe best and brightest minds, offspring of the most influential families, the future movers and shakers of society and industry. Earning a degree from one of the Ivy League schools is seen as a key, if not THE key, to securing ones future. But in case we needed to be reminded, it costs quite a bit to study in one of these schools.
in a June report from The Huffington Post. Harvards president Drew Faust was also quoted in the report: edX gives Harvard and MIT an unprecedented opportunity to dramatically extend our collective reach by conducting groundbreaking research into effective education and by extending online access to quality higher education.
A major challenge in pursuing an Ivy A League education, apart from the highcaliber curriculum and competitive admission process, is the cost. from the Both exclusive and expensive, The gathering together of high-caliber education from many universities educational curriculum top-tier universities content on one site will enable and competitive has proven to be a learners worldwide to access challenge even for the course content of any admission process, many Americans. participating university from is the cost The tuition cost of a single website, and to use a a private university set of online educational tools based on 2007-2008 shared by all participating data can reach $50,000 a year, according universities, the report notes. to a Nov. 2007 New York Times reference piece, Guide to Student Loans. Recently, it The University of California, Berkeley, was reported that total student loans reached will also be collaborating with edX, thus $1 trillion for the first time, in an April New expanding the group of participating schools York Times story. offering courses in the edX platform, or what is referred to as the X Universities. Today, however, a revolution seems to be taking place inside the ivy-covered walls No passing fad. Two computer science of some of the top universities in America. professors at Stanford University believe the Harvard University and the Massachusetts Internet should allow millions around the Institute of Technology (MIT) have teamed world to receive education from foremost up, in a historic partnership, to launch learning institutions at little or no cost. edX, an online education center that aims to As such, Daphne Koller and Andrew Ng offer education on a mass scale, as discussed launched Coursera, a social entrepreneurship
A Harvard Gazette article reveals that the foundation for the technological platform of edX is that of MITx, a learning program designed to offer online versions of MIT courses that major challenge in feature video lesson segments, embedded quizzes, studentpursuing an ranked questions, feedback, Ivy League online laboratories, and education, apart student-paced learning.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
15
company with partners from top universities, to offer free online courses. A May story in Newsweek reports that volunteer professors from Stanford University, Princeton, University of Michigan, and the University of Pennsylvania have signed up to offer full coursescomplete with videotaped lectures, homework, examinations, and grades. Koller says in the report, Today universities can offer a great education to a tiny sliver of the population. What were hoping to do is provide the technology to enable a university like Princeton to offer an education not just to hundreds or thousands of students, but to millions. To which Ng adds, Technology is changing education. This is coming whether we like it or not.
Coursera Machine Learning Introduction to Sustainability Cryptography Gamification Model Thinking Computer Architecture Computer Vision: From 3D Reconstruction to Visual Recognition Statistics One Modern and Contemporary American Poetry A History of the World since 1300 Introduction to Mathematical Thinking Greek and Roman Mythology Introduction to Logic Principles of Obesity Economics Drugs and the Brain Critical Thinking in Global Challenges Medical Neuroscience An Introduction to Operations Management edX Introduction to Solid State Chemistry Introduction to Computer Science Software as a Service Circuits and Electronics
Health in Numbers: Quantitative Methods in Clinical and Public Health Research Artificial Intelligence Introduction to Computer Science and Programming Udacity Beginning Courses: Intro to Computer Science: Building a Search Engine Intro to Physics: Landmarks in Physics Intro to Statistics: Making Decisions Based on Data Intermediate Courses: Algorithms: Crunching Social Networks Logic and Discrete Mathematics: Foundations of Computing Web Application Engineering: How to Build a Blog Software Testing: How to Make Software Fail Programming Languages: Building a Web Browser Advanced Courses: Design of Computer Programs: Programming Principles Artificial Intelligence: Programming A Robotic Car Applied Cryptography: Science of Secrets
PREVIOUS PAGE
NEXT PAGE
16
Venture capital firms Kleiner Perkins Caufield & Byers and New Enterprise Associates saw the projects potential and have invested $16 million combined. Not long after its launch, an additional 12 elite schools joined the cause, bringing the grand total to 16, according to a July story in VentureBeat. Ng says in the report that the commitment of the best universities to teach online classes proves that the venture
is no passing fad. He also notes that, so far, there has been little resistance on the part of current students and academic bureaucrats. As demanding as a university-level class. Another project of the kind is Stanfords Udacity, where passing a class is as demanding as passing a university-level class. Moreover, the program offers participants a range of
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
17
certification options that are accepted by technology companies looking to recruit among the programs student body. Behind Udacity is Sebastian Thrun, vice president of Google. Featured in a July article in Forbes, Thrun is described as the creative genius behind the self-driving car and a pioneer in robotics and artificial intelligence. Upon realizing his course at Stanford could be accessed only by a small audience, he decided to release an online version for free. Launched in February, the program currently enrolls over 112,000 active students. By focusing on computer and technical skills, the article notes, Udacity is filling an Institutions The Hamilton Project. Policies to improve the education and skills of workers can play an important role in putting Americans back to work in good-paying jobs, the authors write. Now, the rapidly changing economy is impacting even those with college degrees. In fact, in a May report in Investors Business Daily, it was found that the number of jobless workers age 25 and up who have attended some college now exceeds the ranks of those who settled for a high school diploma or less. U.S. Labor department data show that of 9 million unemployed in April, 4.7 million had attended or were graduated from college, while 4.3 million had not.
We have been talking about equal educational opportunity for years. What is going on here may be its true advent
~ William J. Bennett, former U.S. Education secretary
important niche. It both provides advanced education for people seeking to improve their academic skills and solid vocational skills for people trying to find a job. This makes for a very attractive alternative to other types of advanced education. Better prospects for better-educated workers. Whereas 40 years ago an average American with a high-school diploma could get a middle-class job, nowadays job prospects and earnings of the typical high school graduate have fallen far behind those of better-educated workers, according to a December 2011 blog entry on jobs and education from the Washington-based, public-policy organization Brookings
(Another issue is state disinvestment in public higher education in the U.S. The March 2012 report The Great Cost Shift: How Higher Education Cuts Undermine the Future Middle Class of the New York City-based public-policy research and advocacy organization Demos suggests that while students are pursuing higher education, states are collectively investing less in young college students than they did 20 years ago. As a result, decreased social mobility, a diminished middle class, and a decline in long-term economic prosperity may be experienced.) The future of higher education. A CNN article written by former U.S. secretary of
PREVIOUS PAGE
NEXT PAGE
18
education William J. Bennett based on his interview with Thrun asserts Udacity is meeting the educational and vocational needs of the labor force directly and
efficiently.We have been talking about e qual educational opportunity for years, he says, What is going on here may be its true advent.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
19
In a study by the Pew Research Center, some 1,021 experts and stakeholders were surveyed to get their views on the future of higher education in 2020. Sixty percent believe that higher education will be different from the way it is today brought about by the mass adaptation of technological advances in teleconferencing and distance learning. There will be a transition, they believe, to hybrid classes that combine online learning components and on-campus class meetings. Thirty-nine percent, however, feel that while people will be accessing more resources through the use of technology, traditional lectures with in-person, on-campus attendance will still be the norm. As far as tradition goes, life on campus, earning a genuine college degree, and the brand value
of top-tier universities still cannot be replaced by online learning and certificationat least not in the near future. The campus environment offers opportunities and experiences that cannot be replicated online, MIT president Susan Hockfieldsays in the Harvard Gazette report, EdX is designed to improve, not replace, the campus experience. While gaps in the system of higher education can be addressed by exploring new methods of teaching, it will take some time before these approaches take root, as the Forbes article suggests. It says: Some could argue there is an unbreachable gap between lecturing and teaching but there is certainly demand and room in higher education through online learning, and nobody said you cant do both.
PREVIOUS PAGE
NEXT PAGE
20
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
21
BUSINESS
cenSEI
T H E
Report
STRATEGY POINTS
In June, the House of Representatives passed House Bill 5727, which would restructure the existing system of excise taxes on cigarettes and liquor, the so-called sin products, and the Senate is preparing to tackle the issue starting Thursday, Aug. 9 Cigarettes and alcohol are more affordable in the Philippines compared to neighbor countries, because cigarette and alcohol brands are taxed based on their 1996 retail prices, and prices are not indexed to inflation The government hopes to raise at least P30 billion more from a reformed sin-tax law, pledging to set aside proceeds to fund universal health care and livelihood programs for displaced farmers While a reformed sin-tax law will raise local cigarette and alcohol retail prices, people expect tax hikes on cigarettes to serve as a strong disincentive to smoke
PREVIOUS PAGE
NEXT PAGE
22
present, tobacco products enjoy low retail prices in the Philippines. In fact, local cigarettes are among the cheapest compared to their counterparts in fellow Association of Southeast Asian Nations (ASEAN) countries, per data from Southeast Asian Tobacco Control Alliance (SEATCA), a Thailand-based, multi-sectoral coalition that helps ASEAN member states develop effective tobacco control policies. Figures from SEATCAs February 2012 paper, Asian Tobacco Tax Report Card: Regional Comparisons and Trends, show that a pack of the popular foreign brand Marlboro of the major tobacco company Philip Morris International (PMI), is most affordable in the Philippines, where it cost only around US$0.63 (26.33) compared to US$8.30 (346.85) in Singapore, US$5.90 (246.56) in Brunei, US$1.24 (51.82) in Indonesia, U$1.46 (61.01) in Laos, and $2.36 (98.62) in Thailand.(See table and graph below) Meanwhile, a pack of the top-selling localbrand cigarette costs US$0.28 (11.70) in the Philippines, the second cheapest compared to US$0.25 (10.45) in Cambodia. Prices of the most popular local-brand cigarettes are pegged at US$1.18 (49.31) in Indonesia, US$0.75 (31.34) in Laos, US$2.36 (98.62) in Thailand, and US$0.63 (26.33) in Vietnam. Low tax rates on tobacco products. Cigarettes are affordable in the Philippines because of low tax rates on tobacco products. In its 2011 policy paper Cigarette Tax and Price: Affordability and Impacts on Consumption and Revenue, SEATCA says the declining real prices of cigarettes in the country arise mainly from a flawed excise tax system, and recommends that appropriate tobacco tax and price laws and regulations should be swiftly enacted to reduce cigarette affordability and effectively curb the growth of tobacco use.
At
In early June, Congress passed House Bill 5727, which seeks to restructure the 15-year-old system of excise taxes on cigarette and liquor -the so-called sin products -- which will result in increased taxes and prices of these products. Meanwhile, the Senate Committee on Ways and Means will begin its first hearing on sin taxes on Thursday, Aug. 9, according to its chairman, Senator Ralph Recto, as quoted in an August 1 Philippine Daily Inquirer report. Recto also reportedly expressed confidence about the passage of a sin-tax bill in the Senate by the end of the year.
Insignificant share of local market No local production Krongthip (TTM) Vinataba (VINATABA) Fortune (PMFTC)
Dunhill 20s (BAT) Marlboro (PMI) Marlboro (PMI) White Horse (BAT) Marlboro (PMI)
Marlboro (PMI)
*BATC = BAT Cambodia; LTL = Lao Tobacco Limited; PMFTC = Philip Morris Fortune Tobacco Corporation; TTM = Thai Tobacco Monopoly; VINTABA = Vietnam National Tobacco Corporation
Brands of major tobacco companies, e.g. British American Tobacco and Philip Morris International, dominate various local markets in ASEAN countries
Table from Asian Tobacco Tax Report Card: Regional Comparisons and Trends February 2012 by Southeast Asian Tobacco Control Alliance, p. 5
Losses from a flawed sin tax law. In its December 2010 report, Paving the Road to Inclusive Growth and Development: A Proposed Legislative Agenda for the 15th Congress, the Senate Economic Planning Office (SEPO) notes that weaknesses in the current sin-tax structure include non-indexation of specific tax to inflation and a complex multi-tiered tax system. SEPO is tasked to provide the Senate
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
23
with research and policy analysis on economic and social issues. The multi-tiered structure of the current tobacco and alcohol excise tax system requires a complex set of rules for product classification and has opened up much room for discretion and abuse. It has resulted in the practice of downshifting production and demand from high/medium-priced products to low-priced products. As a consequence, effective burden has decreased over time. It has also adversely affected the state of competition in the market since homogenous products with the same prices are slapped with different tax rates, according to the report. Moreover, taxes on sin products should be indexed to price movements to boost government revenue while discouraging consumption, the SEPO adds in its report. Republic Act No. 9334 or the Sin Tax law, which was passed in 2004 and took effect in 2005, provides for different rates of excise tax classification and calls for an 8% increase in excise tax rates on all brands of cigarettes and alcohol products every two years. Per the Bureau of Internal Revenue (BIR), Excise Tax is a tax imposed on goods manufactured or produced in the country for domestic sale or consumption or any other disposition. In its Revenue regulations in 2004, the BIR provides complete revised tax rates for 20052011 for different brands of alcohol and tobacco products that were introduced on or before December 31, 1996. At present, brands that were sold in the Philippines before 1996 are still taxed based on the 1996 retail price. Price classification freeze a major problem. In his 2009 paper, Taxation of Cigarettes in the Bloomberg Initiative Countries: Overview of Policy Issues and Proposals for Reform, Emil M. Sunley sees the price classification freeze as a major problem, noting that brands that are present in the country before 1996 are taxed based on their 1996 prices, while newer brands based on their current price per pack.
5 4 3 2 1 0
0.25 1.19 1.18 1.24 0.75 1.46 0.28 0.63 3.32 2.36 1.76 0.63 0.74
Brunei
Cambodia Indonesia
Lao PDR
Malaysia Philippines
Singapore
Thailand
Vietnam
Graph from Asian Tobacco Tax Report Card: Regional Comparisons and Trends, Southeast Asian Tobacco Control Alliance, February 2012, p. 5.
PREVIOUS PAGE
NEXT PAGE
24
Given inflation since the beginning of 1997, government tax revenues in real terms have old brands are taxed artificially low increased by 36%, indicating furtherthe compared to new brands that are selling diminishing contribution of the tobacco excise at about the same current tax to total government revenue price (before excise and from 1999 to 2009, according Value Added Tax). This to the paper. The current law, anomaly should be fixed, which taxes the sin Current structure vs. the said Sunley, a former Assistant Director, Fiscal products based on proposed tax reform. Affairs Department, According to the June 6 Rappler their 1996 prices, International Monetary report on the sin-tax bill passing has resulted in Fund, and former Deputy the House of Representatives, lower sin-tax Assistant Secretary for the current tax structure on Tax Policy, U.S. Treasury collections for the cigarette involves a four-tier Department. system. At present, low-priced government cigarettes (priced at 5.00 and The need to index taxes below) are taxed 2.72 per pack; to inflation. According to medium-priced (5.00-6.50), Department of Finance (DoF) Undersecretary 7.56; high-priced (6.50- 10.00) at 12 Gil Beltran, speaking in a June 6 article on per pack; and premium (10.00 and above) at the Rappler.com site prior to the passing of 28.30. House Bill 5727, the government stands to lose an additional 4.7 billion in revenues if the House Bill 5727, which is authored by Cavite pending sin-tax reform measure does not index Representative Joseph Emilio Abaya, intends to sin taxes to inflation. The current law, which put up a two-tier excise tax system for tobacco. taxes the sin products based on their 1996 In the proposed system, cigarette packs which prices, has resulted in lower sin-tax collections cost 11.50 or less will have an excise tax of for the government, he said. 12.00 for the first year, and 22.00 for the second yearor equivalent to an increase of 341 The revenue loss could be higher if inflation percent and 709 percent respectively. is higher. [It] could be 5 billion next year if inflation will be higher, he adds, referring to Meanwhile, cigarette packs worth more than estimates of the DoF, which supports HB 5727. 11.50 will have an excise tax of 28.30 for the first year, and P30.00 for the second year. Declining contribution of tobacco taxes to government revenues. The Meanwhile, under the proposed sin tax afore-mentioned 2011 SEATCA policy paper, reform, the tax structure on alcohol reflects the Cigarette Tax and Price: Affordability and individual products net retail price. Distilled impacts on Consumption and Revenue, sees a spirits (whiskey, brandy, rum, gin and vodka) declining trend in the contribution of tobacco worth less than P90 will be taxed at P20 during taxes to government revenues in the Philippines the first year of the measures implementation, for the decade. distilled spirits priced at 90 to 150 at 80; and spirits worth P150 and above at 320. While revenues from tobacco excise tax Wine which costs more than 500 or less will have increased in nominal terms, in real be taxed at 250 while wines worth more than terms they have actually decreased by 12% 500 at 700. For 50.60 or less fermented for the same period. In contrast, the total liquor (beer, lager beer, ale, porter), tax rate
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
25
will be 13.75 and 18.80 for fermented liquor worth more than 50.60. Universal health care. Budget Secretary Florencio Abad in a July 7 statement on the passage of the HB 5727 said the updated sin tax system will bring in P33 billion additional government revenue in the first year of implementation, which will largely go to critical health services, including health coverage for indigents and informal sectors under the National Health Insurance Program, as well as the development and rehabilitation of various health facilities in several regions and provinces. Under the ambitious universal health care program, also known as Kalusugan Pangkalahatan, the government wants 100% coverage by the year 2016. A Sept. 2011 Philippine Daily Inquirer report cited non-government organization HealthJustice Philippines in saying that the Philippines has suffered 461 billion worth of health-care expenses and productivity losses due to smoking, based on a 2006 joint study by the WHO, Department of Health, University of the Philippines-Manila and the Philippine College of Medical Researchers Foundation. HealthJustice also cited a World Bank study in saying that a 10% increase in taxes on tobacco products would lead to a 4-8% decrease in consumption, thus saving thousands of lives. Reducing countrys smoking prevalence. The World Health Organization (WHO) expressed its support for higher tobacco taxes, saying that high tobacco prices will discourage young people from starting and encourage smokers to quit, according to Dr. Shin Young-soo, WHO Regional Director for the Western Pacific. We realize that developing strong tobacco control policies is not simple. Nevertheless, we
CURRENT Net Retail Price 10 and above 6.50 10.00 5.00 6.50 5 and below
158.72
317.45
90 - 150 Below 90
20
FERMENTED LIQUOR (Beer, Lager Beer, Ale, Porter) Net Retail Price CURRENT Tax Per Liter Net Retail Price REFORM (by 2013) Tax Per Liter
Below 14.50
14.50 - 22
Above 22
18.80 13.75
CURRENT
WINES (Sparkling wines and champagne) Tax Per Liter Net Retail Price
Below P14.50
14.50 - 22
Above 22
Per liter of volume capacity 15.49 20.57 Above 500 Below 500
700 250
10.42
TCR compilation of figures provided in Historic sin tax bill passes House, Rappler.com, June 6, 2012
PREVIOUS PAGE
NEXT PAGE
26
know that the restructuring of tobacco prices and taxes in the Philippines would significantly reduce tobacco consumption and prevent unnecessary suffering and death from cancer, heart disease, stroke, and such chronic respiratory diseases as emphysema, which, with diabetes, are now the leading causes of illness and death in the country, Shin said. Findings from WHOs 2009 Philippines Global Adult Tobacco Survey revealed there are an estimated 17 million smokers in the Philippines, and that an average of 10 Filipinos die from a tobacco-related disease every hour. The study, which involves over 12,000 households, depicts the high smoking prevalence rates among men (47.7%) and women (9.0%) in the country. Likewise, results from the survey show that a smoker spends 326.40 monthly on cigarettes. Fortune is the top-selling brand among Filipino smokers, followed by Marlboro, Champion, Hope, Philip Morris, Might, More, and Winston. Spending more on cigarettes than on education and health. Meanwhile, a May 2 Malaya article cited findings from the governments 2009 Family Income and Expenditure Survey in reporting that more than 76% of smokers 20 years old and above come from poor families. Moreover, 2.6% of their monthly income is spent on tobacco, which is higher than what they allocate for education (1.6%) and health (1.3%). Abaya reiterated in an interview with GMA7 that the genuine intent of the (sin tax reform) legislation is to make (sin products) unaffordable to them (the poor) such that the little that they have in life will be spent more in their necessities in life. Opposition from farmers, industry players. The sin-tax reform measure has been
met with opposition from the cigarette and liquor companies as well as tobacco farmers. Beer companies San Miguel Brewery Inc. and Asia Brewery Inc. said in March that tax hike on alcohol products will adversely affect 8,000 workers in beer production and sales, as well as tens of thousands of workers in the distribution of beer products to retail outlets, according to a March report from ABS-CBN. Figures from the Bureau of Internal Revenue (BIR) indicated in the document Q and A on the Proposed Sin Tax Reform Measure by the DoF, shows that San Miguel Corp. controls 90% of the local beer market based on 2011 Volume of Removals, while Asia Brewery controls 10%.
Speaking with GMA-7, Cavite Representative Joseph Abaya says that the genuine intent of sin-tax reform is to make sin products unaffordable for the poor so that they will spend more on necessities The two beer manufacturers argued that the government must keep the current tax structure as it has been effective in promoting both volumes and tax revenue collection growth from the beer industry, noting that excise tax collection from the beer industry increased by 43% from 2004 to 2011. The countrys largest cigarette maker weighs in. Meanwhile, Chris Nelson, president of dominant cigarette maker Philip Morris Fortune Tobacco Corp. (PMFTC) said that the company will suffer a 26% decrease in sales once the sin tax law is reformed, according to a June 14 GMA News
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
27
online report, elaborating that local cigarette production of roughly 100 billion sticks would shrink to 74 billion annually if and when HB 5727 is enacted. The Philippine unit of Philip Morris International, the worlds largest non-stateowned tobacco firm, and business tycoon Lucio Tans Fortune Tobacco Corp. merged in 2010. Philip Morris Fortune Tobacco Corp. controls 97.15% of the local cigarette market based on 2010 Volume of Removals/Excise Collections, in the aforementioned DoF document. An unprecedented tax increase for low-priced cigarettes. In a June 8 interview with ABS-CBN News Channel, Nelson said the company wants a moderate tax increases like the proposed tax hikes for beer --which is between 8% and 32%, based on a June 8 in-depth online news report from ABS-CBN. He describes the a 708% tax increase on low-priced cigarettes in the country as unprecedented, noting that no Asian country has comeclose to the proposed tax rate hike under HB5727. Nelson said PMFTC will reduce the number of its workers, which is currently around 3,000. He also said the company expects a 50% drop in demand for tobacco for domestic consumption, which, in turn, will affect the livelihood of around 22,000 farmers nationwide if the proposed tax hike in the Abaya bill will be mandated.
For its part, the DoF explained in the abovementioned document that tobacco farmers, who might be displaced by the reform of sin taxes and are forced to shift to planting other crops or other livelihood endeavors, will continue to share in the incremental revenues. The bill (HB5727) provides that a share of the revenues from the revised law will go towards farmer support programs. In the June 8 ABS-CBN report cited earlier, DOF Secretary Abad said that 15% of sin-tax revenues will be allocated to support tobacco farmers who may be adversely affected by the measure, but did not mention specific initiatives that will be implemented for farmers. He also said, Tobacco- and non-tobacco growing provinces will likewise have a share in the revenues generated by an updated excise tax regime. In its original form, HB 5727 was expected to generate at least 60.7 billion, which will be channeled to 81 beneficiary provinces. This is a far cry from the 16 provinces now being supported by the present excise tax scheme. It might be about time the countrys complicated excise-tax system governing tobacco and alcohol products was overhauled, but considering how much the proposed new taxes could come up to, it might also be valid to ask whether enough people will be able to afford cigarettes and beer to come up with the 30+ billion the government expects to collect from new and simplified, but much higher tax rates.
PREVIOUS PAGE
NEXT PAGE
28
Business
35% on it. Yglesias' suggestion: Apple should lobby Congress for a repatriation tax holiday that would allow Apple to being the money back home and spend it on whatever it chooses, be it dividends, or mega-mergers, or whatever else it might want.
2011 by the Association of South East Asian Nations and the ADB with initial funding of $335.2 million from ASEAN members' contributions and $150 million from the ADB, held its first board meeting in May. The AIF, which hopes to finance up to six projects a year, with a $75-million cap per per project, seeks to promote intra-regional trade, connectivity, and investment.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
29
TECHNOLOGY
cenSEI
T H E
Report
STRATEGY POINTS
Wage hikes and mounting pressure to remain globally competitive are boosting the robotics industry Expert opinion is split: some are convinced robots will snatch jobs away from humans, while others think robots can make humans jobs easier and free them up to perform higher-level work Today, robots are employed in a number of fields, including manufacturing, pharmacy, laboratory research, agriculture, search and rescue operations, and the military
hey dont get tired, they dont care if working conditions are appalling, and, lets face it, theyre better than humans at certain tasks. As wages and the pressure to come up with more efficient production methods rise, companies are turning to robots. In China, Foxconn founder and chairman Terry Gou announced in July 2011 that the computer components manufacturer would be replacing some of its 1.2 million workers with 1 million robots in the next three years to improve efficiency and slash rising labor costs, reported Xinhua. The robots will take over routine tasks, such as welding, spraying, and assembling. The company currently has 10,000 robots in its workforce. Japanese company Canon is also planning to completely automate the production of its digital cameras in order to cut costs and
keep pace with other Asian countries, such as China and India, where labor costs are lower, according to an Associated Press news report on the Yahoo portal in May. The initiative could be completed as early as 2015, says company spokesman Jun Misumi. Wage increase boosts robotics in China but threatens migrant workforce. In a country that banks on its inexpensive labor force, a rise in local salaries could cause it to lose its competitive edge. A nationwide survey of 74,000 rural residents and 66,000 urban residents from 31 provinces, conducted by Chinas National Bureau of Statistics, found that 2011 wages in Chinas cities increased by 12.4% and wages in rural areas rose by 21.9%. Automation via the use of robots thus presents companies in China a cost-effective solution to remain globally competitive.
PREVIOUS PAGE
NEXT PAGE
In fact, industrial robots are already cheaper than workers in Chinas eastern regions, a July 4 China Daily report quotes tech expert Wang Tianmiao as saying. According to Wang, head of the expert panel of robot technology at the Chinese governments State High Tech Development Plan, a typical industrial robot would cost 500,000 yuan over 10 years, less expensive than a technician who gets 6,000 yuan every month while being three times more efficient. Jamie Wang of research firm Gartner likewise says that a robot operating for 160 hours a week can easily replace between two to four workers putting in 12-hour shifts, according to a July 16 Technology Review report. The same article suggests that Chinas workers, mostly young Chinese girls from the countryside who moved to the city for factory jobs, may face competition from robots as the country increases its machine labor force. According to the International Federation of Robotics (IFR), China is expected to be the biggest robot market in 2014, unseating Japan and Korea from the top spots. In 2011, together with the U.S. and Germany, China contributed the most to the industrys remarkable growth. Automation could cut employment opportunities for humans. Writing in the Huffington Post, tech expert Martin Ford notes, In the past two decades, information technology has advanced dramatically and is increasingly being employed to eliminate jobs of all types. Job automation technology, together with globalization, has been the primary force behind the stagnant wages and diminished opportunities for less educated workers weve seen in recent years. The author, engineer, and Silicon Valley entrepreneur predicts that, in the future, aside from lower skill workers, people with significant education and training could also lose their jobs due to advances in artificial
intelligence, software automation applications, and machine learning. The U.S. governments National Intelligence Council report, Global Trends 2025: A Transformed World, also projects that service industry workers could be replaced by robots by 2025. According to the 2008 Computerworld article on the study, 13 years from now, robots will have progressed to a level where they can replace both unskilled and low-skill workers and affect immigration patterns by taking over some jobs now performed by migrant workers.
So should you be worried about your job? The following video (above) by PBS News Hour looks at the future of human workers in light of recent technological advances. Robots could save humans from poor working conditions. However, others think that robots will actually make humans jobs easier. Julie Shah of the Interactive Robotics Group at the Massachusetts Institute of Technology foresees a future where the factory floor is shared by humans and robots working side by side. As quoted in a Robotics Trends article, Shah says, If the robot can provide tools and materials so the person doesnt have to walk over to pick up parts and walk back to the plane, you can significantly reduce the idle time of the person.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
31
This is exactly what is happening at online retail giant Amazons warehouses. Previously criticized for mandating overtime work and the dizzying heat at their Lehigh Valley, Pennsylvania warehouse, as reported by The Morning Call in August this year, workers now have robots to assist them in their duties. Instead of having workers retrieve items from the shelves by themselves, small orange bots bring the shelves to the workers, according to The Atlantic Wire. (Amazon in March 2012 acquired Kiva, the Massachusetts-based manufacturer of these robots. This is the companys second-biggest acquisition since its 2009 purchase of Zappos. com, according to a Bloomberg report.) According to the Yahoo report on Canon, Misumi assures the move towards automation will not endanger the jobs of its employees, saying, When machines become more sophisticated, human beings can be transferred to do new kinds of work, he says. Could this mean that in the future, humans will not have to slave away for hours on end in factories under inhumane conditions? In the case of Foxconn, lets all hope so. The company recently came under international scrutiny after a string of worker suicides -- 17 between 2007 and 2011 according to Wired -- exposed labor regulation violations and poor working conditions at their factories. According to a Bloomberg report in March, an audit of the company found serious and pressing violations of Chinese labor laws among at least 50 regulation breaches. For Frank Tobe, publisher of robotics industry news source The Robot Report, steps toward automation can only mean good things for humans. Quoting Tobe, contributing writer John Roach of Future of Tech at MSNBC writes, The move to robots will free employees from the mind-numbing assembly-line tasks, which could help trim the suicide rate. The workers, in turn, could be trained for higher-skilled jobs, such as operating robots.
The Magic Shelf: How kiva Systems small, orange robots automate warehouse processes Kiva Systems
Robot pharmacists at the University of California, San Francisco Medical Center can dispense 350,000 doses of prescription meds without error YouTube
The FroboBox driving an ASuBot (short for Aarhus and Southern Denmark University Robot) YouTube
PREVIOUS PAGE
NEXT PAGE
32
Robots as pharmacists, farmers, soldiers, and prostitutes? Todays robots are capable of many things that used to be the exclusive province of humans. At the University of California at San Francisco Medical Center, robot pharmacists can prepare 350,000 doses of prescription medication without making a mistake, according to a March 2011 UCSF news release. When computers at the pharmacy electronically receive orders for medications from UCSF pharmacists and physicians, the robots pick, package, and dispense individual doses of pills. In Japan, a flexible, seven-jointed robot called Mahoro is helping scientists at laboratories and saving lab assistants from having to do dangerous lab work, The Verge reported in July. Developed by Japans National Institute for Advanced Industrial Science and Technology and robotics firm Yaskawa, Mahoro works from a virtual bench that houses scanned 3D models of its surroundings. Aside from freeing up human lab assistants to do more challenging tasks, one of the most important uses of the robot is its ability to work with hazardous material and infectious diseases without having to go through the usual safety precautions. Agricultural robots. Technological advances are also boosting the possibilities for agricultural robots. According to an Aug 2011 Technology Review piece, technologies that give robots depth perception and visual acuity at par with humans, plus the open sourcing of robot control hardware and software, are enabling robots to take on certain tasks at the farm. For instance, using the FroboMind software, researchers were able to drive the FroboBox, a straightforward Debin Linux-powered computer whose flexible outputs can be used to drive almost any kind of automateable farm machinery. The following video shows the FroboBox driving a lawnmower-like machine called the ASuBot. Unmanned search-and rescue. Search-andrescue operations comprise another field where
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
33
PREVIOUS PAGE
NEXT PAGE
34
For more information on 4G devices, check out this slideshow by PCMag on the best 4G-capable phones around.
Disabled children like two-yearold Emma get magic arms thanks to 3D printing YouTube
3D printing has also been used to print body parts and, more recently, a working rifle.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
35
HEALTH/LIFESTYLE
cenSEI
T H E
Report
Ending Dengue
The war must be waged not just in the lab, but also in our streets and homes
By Joanne Angela B. Marzan Vaccine trials on Thai children show effectiveness against the virus YouTube
STRATEGY POINTS
Dengue cases worldwide arerising, with over 2.2 million in 2010, and 16.4% more in the Philippines this year. Hopes for a vaccine are up too: one tested by Sanofi Pasteur seems effective against four strains of the virus. Even as immunization beckons, year-round efforts to keep mosquitoes away from man remains the first line of defense.
engue is on the rise. The World Health Organization (WHO), in its 2012 Dengue Fact Sheet,estimates that around 50-100 million dengue infections occur worldwide every year and that over two out of every five human beings about 2.5 billion people are presently at risk from dengue. From only nine nations with severe dengue epidemics before 1970, WHO reports, the disease is now endemic in more than 100 countries in all continents except Europe. Southeast Asia and the Western Pacific regions are the most seriously affected. Even more alarming is the unabated increase in cases, from about 1.8 million in 2008 across the
Americas, Southeast Asia and Western Pacific, to more that 2.2 million in 2010. In the Western Hemisphere alone, 1.6 million cases were reported in 2010. Explosive outbreaks are occurring, WHO warns.The threat of dengue fever now exists in Europe.Local transmission occurred for the first time in France and Croatia in 2010, and imported cases in three other European countries. In the Philippines, infections are up this year. According to the Disease Surveillance Report on Dengue (July 8-14, 2012) of the Department of Health (DOH), cases from January 1 to July 14, 2012 are up by 16.43% to 51,597.
PREVIOUS PAGE
NEXT PAGE
36
Monthly comparisons are even more alarming. There were 12,543 cases reported in June, up 78% over June 2011. Cases in May more than doubled from only 3,701 the year before to 7,905 in 2012. Mega-Manila topped the numbers, totaling to 25,785 cases from its three regions or nearly half of all illnesses in the country. From January-July 2012, the National Capital Region (NCR) had the most caseswith 11,476 (22.24%), with Region IV-A second at7,265 (14.08%), and Region III third with 7,044 (13.65%). While some provinces have shown significant declines, cases in four regions more than doubled, year-on-year: Region IX, up 227.51% to 2,250 cases;Region V with 137.67% increase to 1,369; Region XI jumping 136.54% to 4,078; and Region VI growing 124.48% to 3,668). Thats just from January to mid-July. Positive vaccine trials. Now for some good news:the first dengue vaccine yielded positive results, according to developer Sanofi Pasteur, the worlds largest human vaccine company. Results of this first efficacy trial represent a key milestone in the quest to develop a safe and efficacious human vaccine against dengue, said Michel De Wilde, Sanofi Pasteur executive vice-president for research, in a July 25 press release. We are
Monthly Cases of Dengue in the Philippines, 2011 and 2012 Damage Cases by Month, Philippines, 2012 vs 2011
A DEADLY SPIkE
Chart from Disease Surveillance Report on Dengue (July 8-14, 2012) , DOH, page 1
Table from Disease Surveillance Report on Dengue (July 8-14, 2012) , DOH, page 3
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
37
fully committed to making dengue a vaccinepreventable disease by bringing a safe and effective vaccine to people living in endemic regions of the world. According to the statement, the vaccine generated antibody response for all four dengue virus serotypes evidence of protection was demonstrated against three of the four virus serotypes circulating in Thailand. Ongoing analyses are being done to understand the lack of protection for the fourth serotype. Meanwhile, scientific and clinical experts and public health officials are reviewing all data from Sanofi Pasteurs first efficacy trial, with the results due to be published and presented to the scientific community at the end of the year. Large-scale phase III vaccine clinical studies in 31,000 adults and children are ongoing in Latin America (Mexico, Colombia, Honduras, Puerto Rico and Brazil) and in Asia (the Philippines, Vietnam, Malaysia, Indonesia, and Thailand). Vaccine tests in the Philippines. Dr. Maria Rosario Capeding of the DOHs Research Institute Tropical Medicine (RITM) sees great potential in Sanofi Pasteurs vaccine. A member of the clinical trial team in the Philippines, Capeding said initial results indicate that Sanofi Pasteurs vaccine is effective in fighting the four strains of dengue virus in the country. Most of the subjects [who got the full three vaccine doses] have proven to be immune against dengue for five years with no side effect, Dr. Capeding told the Philippine Daily Inquirer in a July 25 article. Around 3,000 people participated in clinical tests in Manila, and close to half received all three doses of the Sanofi Pasteur formulation. Majority were aged 2 to 45, living in Manila, Laguna and Cebu. Other pharmaceutical companies working on dengue vaccines. According to the Dengue Vaccine Initiative (DVI), a consortium laying the groundwork for vaccine introduction in endemic areas, several vaccines are in various stages of advanced development, with clinical trials currently underway on five candidate vaccines. Sanofi Pasteurs vaccine is ahead, now on its last clinical evaluation before possible licensure in 2015 (see table). Other organizations and companies developing vaccines are GlaxoSmithKline and the Walter
Clionical Evaluation Phase II Phase IIb 2010 On hold Phase III 2012
Late 2012
2015
PREVIOUS PAGE
NEXT PAGE
38
Reed Army Institute of Medical Research (WRAIR), the U.S. National Institute of Health (NIH), Inviragen and the U.S. Center for Disease Control and Prevention (CDC), and Hawaii Merck.
to be safe and effective, licensure can be achieved soon and the burden of dengue disease can be reduced.
The need for prevention. While immunization may finally become available Developing a safe, effective in 2015, that is still about vaccine, however, is just three years from now. While immunization one step in the global fight Until then and even may finally become against dengue. The remedy when vaccines are widely available in 2015, must reach the people who available, other preventive need it. Work must begin measures should be taken until then and even now to prepare countries to against the disease. In when vaccines are introduce dengue vaccines its 2009 publication, widely available, other Dengue: Guidelines for once available, so that the preventive measure traditional lag time for Diagnosis, Treatment, vaccine introduction can Prevention and Control, should be taken be shortened,says DVI. WHO stressed the need to against the disease The case must be made prevent or minimize vector for the addition of another propagation and human immunization to already crowded schedules, contact with the vector-pathogen by destroying, especially in developing countries confronting a altering, removing or recycling non-essential host of needs and limited resources. containers that provide larval habitats (page 60 of the report). In short, get rid of mosquitoSpeaking of limited resources, another critical breeding grounds. issue is vaccine cost. First-of-its-kind vaccines tend to be expensive. Hence, DVI funded a WHO identified three types of environmental research to find out the production expense for management to implement: dengue immunization. Cost, says DVIs Richard Mahoney, is one of the most important factors 1. Environmental modification long-term affected its adoption and uptake. physical transformations to reduce vector larval habitats. One example is installing a Through the study on baseline manufacturing reliable piped water supply to communities, expenses, the results should help pave the way including household connections, so people for the rapid introduction and distribution of dont have to store water in large containers a dengue vaccine once licensed.The report, which breed mosquitoes. published in the July edition of Vaccine, showed that at 60 million doses produced annually, 2. Environmental manipulation temporary 10-dose vials would cost $0.20 each,and singlechanges to vector habitats involving the dose shots $0.70. management of essential containers by frequent emptying and scrubbing of water The DVI study concluded thatthe vaccine vessels, flower vases and desert room coolers; can be made available at a price that most cleaning of gutters; sheltering stored tires ministries of health in developing countries from rainfall; recycling or proper disposal of could afford. This conclusion provides discarded containers and tires; management or strong encouragement for supporting the removal away from homes of plants that collect development of the vaccine so that, if it proves water in the leaf axils.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
39
3. Changes to human habitation or behavior reduction of humanvector contact, such as installing mosquito screening on windows, doors and other entry points, and using mosquito nets while sleeping at daytime. In his 2012 State of the Nation Address, President Benigno Simeon C. Aquino III recounted the use of anti-dengue mosquito traps: In 2011, traps were distributed in Bukidnon, which had recorded 1,216 cases of dengue in 2010. After distribution, the number of cases decreased to 37 that is a 97%
YouTube
Aedes Mosquito Fast Facts From Singapore Government Campaign The dengue-spreading mosquito is female; it bites to get the protein found in blood to develop its eggs. The female Aedes can lay eggs at least three times in its two-week lifespan, producinga staggering 100 eggs each time. The mosquito cannot spread the germ for approximately one week after ingesting the virus from a person carrying it. In this incubation period the virus replicates and reaches the bugs salivary glands. Aedes eggs can lie dormant in dry conditions for up to nine months, all that time ready to hatch if exposed to favorable conditions with water and food
PREVIOUS PAGE
NEXT PAGE
40
reduction rate. In the towns of Ballesteros and Claveria in Cagayan, there were 228 cases of dengue in 2010; in 2011, a mere eight cases were recorded. In Catarman, Northern Samar, 434 cases of dengue were reported in 2010. There were a mere four cases in 2011.
The WHO publication also talked about the importance of social mobilization and communication activities in combating dengue, for all sectors to take part and play their respective roles (see table). Behavioural change is required at both individual and community
Selected examples of potential intersectoral actions Sector Public sector Ministry of the Environment Solid waste management, water supply, promotion of healthy public policies Incorporation of environmental health issues and activities in school curricula Urban infrastructure and planning, including water and sanitation services Street stormwater drainage systems. underground service units for telephones, etc. Housing structure and watershed containers Ministry of Tourism Reduction of economic losses associated with dengue outbreaks Legislative framework Discarded containers and household water-storage containers are larval habitats Issue Rationale
Ministry of Education
Empowerment of children with knowledge of health risks and skills to carry out actions tp manage the environment. This is often an entry point for community action Urban development and infrastucture can be designed and managed to avoid creation of larval habitats {e.g. sufficient resources dedicated to the collection and disposal of refuse, and to a reliable and good quality water system} Design of water run-off drainage systems and manholes that do not create underground mosquito larval habitats Design structures that avoid the creation of mosquito larval habitats {e.g. roofing design, water run-off and catchment systems} Involvement of the hospitality setor in routine vector control actions and environmental managemen Provision of the legislative and regulatory framework to support environmental management actions and sound use of insecticides Consumer packaging and petrochemical industries, and manufacturers of tyres and water storage tanks are examples of how the private sector may contribute - indirectly or directly - to larval habitats and to potential solutions, especially in the context of "social or environmental responsibility." Smallscale tyre businesses may have limited means to protect used tyres stated on the premises NGOs are able to mobilize resources and actions or community level on issues of common interest
Municipal authority
Private sector
Non-governmental organizations
Table from Dengue: Guidelines for Diagnosis, Treatment, Prevention and Control, WHO, page 81
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE
cenSEI
T H E
Report
41
levels in order to reduce vector larval habitats successfully, and in turn to reduce the number of adult mosquitoes available to transmit disease, the report argued.
Plainly, even as it awaits a dengue vaccine, the world must remember that the war against the killer disease is waged not just in the labs, but also in communities where carriers
NEA/YouTube
Former Health Secretary Francisco Duque, now Civil Service Commission chairman, stressed the need to conduct the anti-dengue campaign all year-round, not just in the months when the disease normally spreads. Any letup in that drive usually led to a rise in infections.
of the virus breed in the millions across the planet, and are now moving north to new regions as the world warms. Stopping mosquitoes from injecting the germ is just as important as injecting people with vaccines against it.
PREVIOUS PAGE
NEXT PAGE
42
initiation of breastfeeding within one hour of delivery has increased from 32% in 2008 to 52% last year. United Nations Children's Fund Representative in the Philippines Tomoo Hozumi said, "The strong legislative and policy framework in the Philippines is being recognized as one of the best in the world, protecting every Filipino mother's right to breastfeed." He cited the Milk Code or Executive Order 51, signed by then-President Corazon Aquino in 1986, which ensures that breastfeeding is protected and women are given clear information on the benefits of breastfeeding without undue influence of infant formula companies.
PREVIOUS PAGE
The
cenSEI Report
NEXT PAGE