Showing posts with label Albert del Rosario. Show all posts
Showing posts with label Albert del Rosario. Show all posts

Thursday, November 12, 2015

BWorld 24, Traffic and Newton's 3 laws of motion

* This is my article in BusinessWorld last November 11, 2015.


Expansion of existing urban centers and urbanization of rural areas is the norm and natural path of many cities and areas in the planet. Congestion is the natural result as people try to squeeze themselves in a limited space where various amenities and work and business opportunities are available; things that they cannot easily find in rural areas.

In East Asia, cities from China and Japan are the biggest in population size. In Southeast Asia in particular, Metro Manila is the biggest. (See table)

Traffic congestion is among the most prominent problems of many big cities, like those with population of 5 million or more people.

In Metro Manila and other big Philippine cities like Cebu, Iloilo and Davao, the growth in number of vehicles is much faster than the growth of new roads and highways being constructed.

This subject was discussed in a round table discussion organized by the Albert del Rosario Institute (ADRi) on “Greater Manila Transport Infrastructure Solutions: Thinking Beyond EDSA” last Oct. 28, at the Tower Club in Makati City.

After the opening message by ADRi President Victor Dindo Manhit, Mr. Eduardo Yap of the Management Association of the Philippines gave a good presentation that compared the Metro Rail Transit (MRT)/Light Rail Transit (LRT) system in Metro Manila to the train systems in Bangkok, Jakarta, and Taipei.

Ours are small and short compared to those three and many other East Asian cities. The population figure that he gave refers to “Mega Manila,” which includes nearby provinces like Bulacan, Pampanga, Rizal and Cavite. (See illustration)


British physicist and mathematician, Sir Isaac Newton (1642-1727) was known for his contributions in classical mechanics and physics. His famous theory is the so-called “Newton’s Laws of Motion.” Upon closer examination, it seems that the laws of motion in physics can also apply in society and economics.

Consider the First law: “A body at rest (or in motion) will remain at rest (or in motion) unless an external force is applied on it.”

Application: Bureaucracy in command and control state will remain in that state unless huge public pressure is applied on it.

There is a culture in the bureaucracy where the officials declare, “No one moves, no one builds anything, unless they get our signatures and permits first.” A state of inertia and inaction should be sustained unless players and stakeholders first get the signatures of officials and regulators.

And that explains how unsolicited proposals to build various MRT lines, skyways, and new tollways via build-operate-transfer (no cost to the government) two to three decades ago never got off the ground.

Second law: “The acceleration of a body is directly proportional to and in the same direction as the force acted on it, and inversely proportional to its mass.”

Application: The acceleration of regulatory prohibition is directly proportional to central planning philosophy and inversely proportional to its intellectual mass.

The Metropolitan Manila Development Authority (MMDA) policy is to keep blaming private players -- the car owners, bus and van operators and drivers, even passengers. Thus, policies like cars number-coding prohibitions and similar rules covering some provincial buses and vans restrict the capacity and mobility of high occupancy vehicles unless they secure a legal franchise which, by itself, is very costly and time-consuming to get. People have to endure three or four rides one way (tricycle then jeep/bus, then MRT/LRT, then jeep or tricycle to final destination), and so many are forced to drive their cars, which exacerbate the traffic congestion.

Third law: “For every action, there is an equal and opposite reaction.”

Application: For every government intervention, there is an equal opposite distortion.

When government prohibits people to drive their own cars on certain day of the week, many people buy a second or third car, especially if their village is far from the main road. And this exacerbates traffic congestion. When government prohibits certain provincial buses to enter key areas in Metro Manila, many of these car-owning probinsyanos take their cars or motorcycles to Metro Manila, and this again worsens traffic congestion.

One alternative that the MMDA and Department of Transporation and Communications/Land Transportation and Franchising Regulatory Board should consider is that instead of segregating between Metro Manila and provincial buses, they should allow those bus companies to choose their routes. Say from Cavite to Fairview or Pasig-Marikina, and these buses can pick up and unload passengers along EDSA or C5. Make the bus-train commute more convenient and cost-effective, and many people will leave their cars at home. In addition, many jeepneys and tricycles will die a natural death, without creating a new law or Administrative Order or local government unit ordinance. And we shall have less traffic.

Traffic congestion is an engineering problem with engineering solutions; it is a result of market failures but can be solved by market solutions. Like those unsolicited proposals to build more urban rails since 20 or 30 years ago. Like those air-con vans that bring office personnel from their houses/villages straight to Makati, Ortigas, Bonifacio Global City, Eastwood, Manila, airport, and so on, with just “one ride.”

Government should learn to step back and allow market players to initiate market solutions to the traffic congestion. Government should focus on securing road right-of-way for important infrastructure projects and enforcing property rights. Enforce the rule of law, like the law against bus hold-uppers, terrorists, murderers, and kidnappers. Transporting people and goods to various destinations is not a crime that requires lots of permits, taxes, and expensive franchises.

Bienvenido S. Oplas, Jr. is the head of Minimal Government Thinkers, Inc., and a Fellow of the South East Asia Network for Development (SEANET).
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See also:
BWorld 21, More internet use means lesser corruption?, October 31, 2015 
BWorld 22, WESM, PEMC and search for competitive electricity prices, November 05, 2015 

BWorld 23, ASEAN trade bureaucracies and Doing Business 2016 Report, November 07, 2015

Sunday, November 08, 2015

Free Trade 56, Trade, investments and taxes in APEC countries

The Albert Del Rosario Institute (ADRi) has published my new paper, in time for the Asia Pacific Economic Cooperation (APEC) Summit this coming November 18-19 here in Manila. My special thanks to ADRi President, Prof. Dindo Manhit.


I put a number of tables in that paper, data sources from the World Bank, UN Conference on Trade and Development (UNCTAD), World Trade Organization (WTO), Alas Oplas & Co. CPAs (AOC), Bangko Sentral ng Pilipinas (BSP) and the Philippine Statistics Authority (PSA).


Foreign direct investments (FDI) inward stock is a good indicator of how much FDIs have accumulated in a country net of outflows through time.


FDI net inflows is a better indicator than plain inflows because a country may get huge amount of FDI inflows but also suffering from huge outflows so that the net inflow is actually negative. Like the US, Russia, Hong Kong, Taiwan, Japan, S. Korea and Malaysia, at least for the the years 2012-2014.

 APEC countries are marked red here.


Trade bureaucracies as a form of non-tariff barrier (NTB).


My Concluding notes

1. To have more trade and investments, governments should learn to step back from too many regulations and taxation. 

2. Corporate income and other taxes in the Philippines in particular should decline in the face of rising tax competition among ASEAN countries. 

3. Non-tariff barriers (NTBs) like import licensing and SPS measures should be relaxed and reduced. 

4. Global capitalism is about integration and competition, complementation and substitution, happening simultaneously. 

5. Markets in a competitive environment always result in innovation and business creativity. 

6. Governments should focus on their core and basic function – lay down fair rules for all players, be an impartial judge or referee in cases of disputes, protect private property ownership, enforce the rule of law, contracts between and among people.

The 12-pages paper is also posted in slideshare.
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See also:

Friday, October 30, 2015

Transport Econ 16, Stratbase ADR Institute forum on Manila Transport Infra Solutions

Solving, or worsening, the traffic congestion in Metro Manila and neighboring cities and provinces is a subject that seems to have created hundreds of thousands, perhaps millions, of "experts" on the subject. Almost everyone has a great plan and solution/s how to address the problem, some of which are useful, some may be not.

Listening to real experts and people in the sector therefore, in a live, non-stop exchange of ideas, is a big treat. I myself have my own views and proposals how to address the problem but given the field of invited participants and speakers yesterday, I opted to just listen.

I am referring to the Stratbase Albert Del Rosario Institute (ADRi) Round Table Discussion (RTD) yesterday on “Greater Manila Transport Infrastructure Solutions: Thinking Beyond EDSA" at the Tower Club, Philamlife Tower, Makati City.


Opening remarks was given by ADRi President, Prof. Dindo Manhit, holding the microphone. In this photo from left: Eduardo Yap (Management Association of the PH, MAP), Atty. Tim Abejo (CitizenWatch.ph), Dindo, Dr. Epictetus Patalinghug (UP College of Business Administration), and Yuya Takagi (Japan International Cooperation Agency, JICA). 

Dindo mentioned about their paper that described not "Daang Matuwid" (straight road) but "Daang Masikip" (narrow road) because of the various "carmageddon" that happened this year alone. Hence, the forum's theme of "thinking beyond Edsa."


Mr. Yap, holding the microphone, gave a short but great presentation, of MAP's analysis and proposals that were also given to government Cabinet officials in charge of Metro Manila and the nation's infra. He talked for instance about building a subway from north to south of Metro Manila, as the technologies like huge tunnel borers are available; or if building above-ground rails and skyways, pre-fab structures are available.


Rene Santiago of the Foundation for Economic Freedom (FEF) gave a long discussion after Mr. Yap's presentation. The exchanges started with Manila's public transpo including buses, trains (LRT, MRT, PNR), the road infrastructures needed to respond to rising volume of vehicles. Then shifted to Manila ports decongestion, optimizing the ports of Batangas and Subic, moving the containers by rail, moving and decentralizing the Bureau of Customs' inspection procedures.


From left: Voltaire Wycoco of ICTSI, Atty. Michael Sagcal, Spokesperson of the Department of Transportation and Communications (DOTC), Ferdinand Inacay, President and Chief Executive Officer of MRail, Inc., and Mohamed Ghandar, Director, Asia Region and General Manager of ICTSI.


After the forum. From left:
Wilford Wong (Citizenwatch.ph); Rupert Paul Manhit (Stratbase);
Yuya Takagi (JICA); Voltaire Wycoco (ICTSI);
Patrick San Juan and Floro Advient (JICA);
Prof. Epictetus Patalinghug (Cesar Virata School of Business- UP);
Atty. Michael Sagcal (DOTC); Bienvenido Oplas (Minimal Govt. Thinkers);
Ferdinand Inacay (MRail, Inc.); Prof. Dindo Manhit (ADRi);
Mohamed Ghandar (ICTSI); Cynthia Hernandez (KPMG);
Chito Francisco (LRMC); Rene Santiago (FEF);
Atty. Tim Abejo (Citizenwatch.ph); Atty. Franco Sarmiento (HOR);
Eduardo Yap (MAP); Atty. Ed Relucio (HOR); Atty. Lysander Castillo (PBEST).


Not in the group photo but administered the RTD were ADRi Deputy Executive Director Angelica Mangahas (left) who introduced the guests and moderated the discussion, and ADRi Executive Director Atty. Kaye Clemente (right), who summarized the discussion and gave the closing remarks.


Ok, I did not talk yesterday, I simply listened. Now I will talk in this space :-)
To help address, help reduce, the daily traffic congestion in M.Manila -- have less government intervention.

Traffic congestion is an engineering problem with engineering solutions; it is a result of some market failures with market solutions. Like those unsolicited proposals to build more LRT/MRTs since 20 or 30 years ago under build-operate-transfer (BOT) and hence, no cost to the government except securing the road right of way (ROW) and enforcing property rights. Like those air-con vans that bring office personnel from their houses/villages straight to Makati, Ortigas, BGC, Eastwood, Manila, airport, and so on, with just "one ride."

When government says "NO, no one moves, no one builds anything, unless you get our signatures and permits first", then a one-week paralysis can become 5, 10, 20 years paralysis.

All photos above I got from Stratbase ADRi fb album. Thanks Krystyna, Mikee, Kaye.
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See also: 
Transport Econ 12: Bus Rapid Transit (BRT) and Tricycles, April 21, 2014 

Transport Econ 13: On Prohibiting S. Luzon Provincial Buses to Enter M.Manila, August 30, 2014 

Transport Econ 14: On the MRT and LRT Fare Hike, January 06, 2015 

Transport Econ 15, On having 2 cars or more, July 20, 2015

Thursday, July 16, 2015

AEC 15, ADR Institute discussion on trade and investments

Yesterday afternoon, I attended a round table discussion  on “The Role of Exports and Foreign Direct Investments in Industrial Development” sponsored by the Albert del Rosario (ADR) Institute (formerly Stratbase Research Institute), Tower Club, Philamlife Tower, Makati City.


The convenor and main speaker was Dr. Epictetus Patalinghug (UP College of Business Administration, and a Trustee of ADR Institute). He presented many data about economic  competitiveness in relation to the forthcoming ASEAN economic integration.

Discussants were Dr. Gilbert Llanto (President of the PH Institute for Development Studies/PIDS), Dr. Ramon Clarete (UP School of Economics/UPSE Prof. and former Dean), Mr. Donald Dee (Honorary Chairman, PH Chamber of Commerce and Industry/PCCI), and Atty. Wilfredo Villanueva (Head of Tax and General Counsel, SGV & Co.). 

Below, from left: Atty. Villanueva, Dr. Llanto, Dr. Patalinghug, Dr. Clarete, Mr. Dee.


Atty. Villanueva mentioned in his reaction/discussion that in the ASEAN, the PH has the highest corporate income tax at 30 percent. The average for the other 9 countries are 22 or 23 percent. And socialist Vietnam has only 22 percent, to go down  further to only 20 percent next year.

Other guests and invitees were people from academe, exporters, officials from DFA and Department of Trade Industry (DTI) like Export Marketing Bureau (EMB) Director Senen Perlada. Amb. Cesar Bautista (also a former DTI Secretary) of the Management Association of the Philippines (MAP).


Foundation for Economic Freedom (FEF) President Toti Chikiamco, Employers Confederation of the Philippines (ECOP) President Edgardo Lacson and Mr. Dee.

Officers from at least 4 foreign embassies (UK, Japan, Australia, plus another one or two), etc. Plus ADR Institute staff and two business reporters.

I spoke during the open  forum. I said that to have more trade and investments, what people really want actually is not good governance but less governance. Not good tax administration but less taxation.  That in a free society, all things are allowed except for a few prohibitions -- like no killing, no stealing, no rape, kidnapping, etc. In (totally) unfree society, all things are not allowed except when one gets a government permit. See the experience of many entrepreneurs, yearly they must get and pay for a barangay permit, health and sanitation permit, electrical permit, fire department permit, Mayor's permit, etc. Local governments alone. Then BIR, DTI permits, SSS, DOLE permits, etc. for national government agencies.

I also cited the WB’s Doing Business 2015 Report, exporters in Singapore file only 3 documents, wait for 6 days to export, and pay $460/container on average. In contrast, exporters in the Philippines file 6  documents, wait for 15 days and  pay $755/container. (Photo below from Arpee Manhit)

And I added that capitalism is a good system, it allows free market and free individuals. Now even the Pope is against capitalism, and many people including many academics and facebook users are anti-capitalism, yet they so love fb (and youtube, google, twitter...) all of which are 100 percent products of capitalism.

A friend commented that I was “preaching to the choir”. I replied that it’s not the case. First, I was not a preacher/discussant, just an ordinary participant. Second, there were a number of government officials there from DFA, DTI,. Third, not all academics believe in minimal government, majority are believers of "big but good government", the source of most of their consulting work.


Thanks again to ADR Institute, especially Prof. Dindo Manhit, for that invite. Good to hear the presentations and comments from other participants. Meet old and new friends. All photos above except 2nd to the last and from Arpee) are from the ADR Institute fb page. Thanks Mikee M.
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See also:
AEC 11: Trade and Economic Development is Social Development, April 25, 2015 
AEC 12: Workshop on Trade Liberalization at the APF 2015, Kuala Lumpur, April 27, 2015 
AEC 13, SEANET Website, AFAS in Financial Services, June 18, 2015 

AEC 14, SEANET-ABAC Meeting, IDEAS-OBG Partnership, June 24, 2015

Free Trade 36: Taxation, Regulations, Trade and Rule of Law in ASEAN, August 05, 2014
Citizen Watch 2: On Power and Jobs, August 30, 2014

New Think Tank, Albert Del Rosario Institute for Strategic and International Studies, November 24, 2014 

ADR Institute, Part 2, November 26, 2015

Wednesday, November 26, 2014

ADR Institute, Part 2

The newly-launched think tank, Albert Del Rosario Institute for Strategic and International Studies (ADR Institute), held last Friday, November 21, 2014. The Board members, from left:

1. Benjamin Philip Romualdez, President of the Chamber of Mines of the Philippines (COMP), 
2. Victor Andres "Dindo" Manhit, Founder and Managing Director, Stratbase, also Professor of Political Science, DLSU,
3. Manny V. Pangilinan, head of Metro Pacific Investments, Smart/PLDT, Meralco, TV5, etc., 
4. Edgardo Lacson, honorary Chair of the Philippine Chamber of Commerce and Industry (PCCI) and President of the Employers’ Confederation of the Philippines (ECOP), 
5. Albert del Rosario, DFA Secretary,
6. Raul Pangalangan, former dean of the UP College of Law and publisher of the Phil. Daily Inquirer, 
7. Rene de Castro of DLSU International Studies Department, 
8. Epictetus Patalinghug of the UP College of Business Administration, 
9. Primo “CP” David of UP Diliman Geology and Environmental Science, 
10. Francisco Magno of DLSU Political Science Department, Director of the Jesse Robredo Institute of Governance, DLSU. and
11. (Not in  the photo) Ernest “Ernie” Bower, senior adviser and Sumitro chair for Southeast Asia Studies at the Washington-based Center for Strategic and International Studies (CSIS).


Good mixture of personalities. Is this a think tank of big business? Somehow Yes, with MVP there, heads of ECOP and COMP. Is this a think tank of academics? Somehow Yes, with known academics from UP Diliman (NIGS, CBA) and DLSU. Is this a think tank of civil society? Somehow Yes, with PDI Publisher, Robredo Institute, FEF guys there. Again, good mixture of people with different professional backgrounds.

I think the think tank's main clients will  be foreign  governments (through their embassies in Manila), big firms at the Philippine Stock Exchange, PCCI, etc. I saw many diplomats and some ambassadors that night, including US Ambassador Philip Goldberg, cool guy.

Some photos that night where I was an "extra". Below from left: Dr. Vic Paqueo of UPSE, PIDS, former WB/ILO consultant; Dr. Lingling Patalinghug, and Cong. Kit Belmonte. Vic was my former teacher in Econ. 181 (Labor Econ) while Ninong Lingling (yes, he's among my wedding godfathers) was my former teacher in Econ. 171 (Agri Econ) at UPSE sometime in 1983 or 84. Kit was a rich kid, mestizo, but very militant activist in UP then.



From left: Dindo Manhit, Kit Belmonte, Vic Paqueo, Raul Pangalangan, Totol Batuhan, Lingling Patalinghug, Digitel President Doy Vea, me.


From left: Edgardo Lacson (PSE, PCCI, ECOP), Ronnie Recidoro of COMP, me and Dindo. The three of us were discussing about mining and mineral potential, lots of jobs, money and government taxes, of the country, then I dragged Dindo for the photo.


Stratbase's young and dynamic staff, from left: Claudette Guevarra, Krystyna Dy, Bianca Soriano, Mikee Maralit, Lloyd Zaragoza. Me and Kiko Magno were extras here. Mikee is the one who directly invites me in some Stratbase/CitizenWatch events, she is a former student of my wife at DLSU.


Minimal Government Thinkers simply networks with other think tanks, research institutes, and other civil society organizations, like Stratbase and ADR Institute. For us, minimal government = maximum civil society. Things that can be done by individuals and their voluntary organizations need not be assigned to government, local, national or international/multilateral. Because government = coercion. So a minimal or limited government means minimum of coercion in society.

Thanks again for the invite, Dindo and Stratbase. Hope to see you in another round of discussions.
All photos above from Stratbase fb wall.
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See also:
Stratbase Forum on ASEAN Competitiveness, July 25, 2014
Free Trade 36: Taxation, Regulations, Trade and Rule of Law in ASEAN, August 05, 2014

Citizen Watch 2: On Power and Jobs, August 30, 2014

New Think Tank, Albert Del Rosario Institute for Strategic and International Studies, November 24, 2014

Monday, November 24, 2014

New Think Tank, Albert Del Rosario Institute for Strategic and International Studies

Last Friday, I was one of the invitees of Stratbase Consultancy Group in relaunching the Stratbase Research Institute (SRI) into the Albert Del Rosario Institute for Strategic and International Studies (ADR-ISIS). It was also the 10th anniversary of Stratbase. A number of academic and corporate VIPs there, and only two legislators. Good crowd, it was held at the Manila Polo Club in Makati.

Seated below are among the Board Members of the new think tank. From left: Dr. Epictetus Patalinghug of the UP College of Business Administration, Manny V. Pangilinan, head of Metro Pacific Investments, Smart/PLDT, Meralco, TV5, etc; Dr. Rene de Castro of DLSU International Studies Department, Dr. Francisco Magno of DLSU Political Science Department.


The other board members are Dr. Primo “CP” David of UP Diliman Geology and Environmental Science, Atfy Raul Pangalangan, former dean of the UP College of Law and publisher of the Philippine Daily Inquirer, Benjamin Philip Romualdez, President of the Chamber of Mines of the Philippines (COMP), Edgardo Lacson, honorary Chair of the Philippine Chamber of Commerce and Industry (PCCI) and President of the Employers’ Confederation of the Philippines (ECOP), and Ernest “Ernie” Bower, senior adviser and Sumitro chair for Southeast Asia Studies at the Washington-based Center for Strategic and International Studies (CSIS).

Photo below seated, DFA Sec. Albert del Rosario (ADR), four Ambassadors from different countries, and Mr. Romualdez of COMP.


Sec. ADR giving a speech about the new think tank named after him. He was introduced by the founder and Managing Director of Stratbase, Prof. Dindo Manhit, after Dindo gave an overview of Stratbase's 10 years of accomplishments.


A story from Business Mirror a day before the event. Similar story was reported by Manila Bulletin, The Tribune, Manila Standard and the Inquirer.


I met a number of old friends and new acquitaintances there. This photo from left: me, Gary Olivar who is a fellow UPSE alumni, also the Spokesperson of former President Gloria M. Arroyo, Sen. Sonny Angara, Arnel Casanova, President and CEO of the Bases Conversion Development Authority (BCDA), and Felix Ang, President of Cats Motors.


Again with Sen. Angara, Ramon Casiple, President of the Institute for  Political  and Electoral Reforms (IPER), Carol Manhit (Dindo's wife) and _______.


Among the various UP Diliman guys and alumni that night. With fellow UPSE alumni Jeffrey Ng, President of Cathay Metal Corp. and Cathay Land, Raul Pangalanan of UP Law, and Cong. Kit Belmonte of Quezon City. Kit was a former famous UP student leader, coming from a very rich family yet a very activist, "mestisong tibak".
With Prof. Kiko Magno, a DLSU Spanish visiting Prof., DFA Assistant Sec. for Legal Affairs Eddie Vega. Kiko, Ed and me are also fellow alumni of the UP Sapul, Polititical Science Club.


Ok, ADR-ISIS is not a free market think tank advocating limited government, unlike our partner think tanks within the  Economic Freedom Network (EFN) Asia, but I think the ADR think tank guys are open to hearing free market perspectives.  For instance, I was a participant in two small group round table discussions held by CitizenWatch Philippines/Stratbase this year. And two of my papers, one on ASEAN free trade and the other on the Philippines power/energy and rice trade sectors, were published by SRI. Thanks to Dindo.

I hope this informal partnership will continue in the coming years.
Photos above from PBEST, Mikee and my cameraphone.
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See also:
Stratbase Forum on ASEAN Competitiveness, July 25, 2014
Free Trade 36: Taxation, Regulations, Trade and Rule of Law in ASEAN, August 05, 2014

Citizen Watch 2: On Power and Jobs, August 30, 2014