Mining 57, More photos during Mining PH 2017 conference

Posting some of the quotes-with-photos made by the Secretariat during the Mining 2017 Conference last September 5-7, 2017.

Some of my photos at the farewell dinner.

With the Stratbase-ADRi group.

And in a brief karaoke segment, I sang on stage, "Twist and Shout" by The Beatles :-)

Meanwhile, reposting this article today by JB Baylon.
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Who’s afraid of open pit mining?

By Jose Bayani Baylon

October 16, 2017

http://www.malaya.com.ph/business-news/opinion/who%E2%80%99s-afraid-open-pit-mining

THERE’S a lot of brouhaha about open pit mining these days, spurred by Ma’am Gina Lopez alleging that they create acids that will bedevil all of humanity for life. And you know how convincing she can be, so even the President has expressed apprehensions about open pit, apprehensions that could extend to actually banning this form of mining.

While listening to my mining colleagues discuss the issue, my genetic make up (I am the son of a doctor and a nurse and brother to two more doctors) kicked in and a very medical image cropped up.

Mother Earth and many women have something in common - they are gifted with blessings that need to be brought into the world so that life can be better. For Mother Earth these are her mineral wealth; for many women, this is a child.

Now women who are blessed with a child have two ways of bringing God’s gift into the world - the normal laborious method, or the sometimes quicker Caesarian section. These are two accepted methods that are used depending on the situation of the mother or the child, or both; the fact is some women can be at risk - and the child in their womb as well - if an OB Gyne does not resort to the “C-section.” My mother, for one, had to go through the C-section three times; thankfully she had the late great Dra Gloria Aragon watching over her.

Again: whether a woman gives birth via the normal way or by C-Section is determined by the situation and managed by the experts. No one can say we will ban Caesarian because it leaves an ugly scar and puts a woman at risk with her anesthesia etc etc etc.

Similarly the ore deposit determines which form of mining is done in order to bring out into the world the mineral wealth with which Mother Earth is blessed. An ore deposit or body near the surface of the earth is therefore mined using surface mining or open pit; an ore body that is in the form of veins or goes deep into the recesses of Mother Earth is mined via underground mining. Like a pregnant woman, Mother Earth’s situation determines the way her gifts are brought out into the light. Again one cannot force only one method of mining because the ore deposit or body determines what is used.

Are there risks? Of course there are. But that’s why you have experts who require pre testing and constant monitoring during the procedure. Are there accidents? Of course there are. But they are few and far between and sometimes they just happen. Are there examples of successes? Well, my brothers and I are just three of hundred of millions of examples of successful C-Section births, while for mining there countless examples around the world of open pits rehabilitated into such destinations as golf resorts.

The point is, in life, one can always choose to focus on the dangers. But then what happens? “Oh my gosh an airplane crashed! We should ban flights and shut down all airlines!”. Or “ An elevator got stuck! Let’s do away with lifts and use the stairs!”.

That’s why there are tests: for humans these range from blood tests to BP monitoring, while for environmental projects you have Environmental impact assessments and clearances. Once a patient or a project passes these tests then it means the experts are more than confident everything will turn out fine.

So: it’s right to worry about open pit mining just like it’s right to worry about Caesarian operations. But trust your experts. That’s the reason they’re there.

And if you like, pray or do yoga.

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See also: 

Mining 54, Ralph Abainza on water table and Gina Lopez, September 30, 2017 

Mining 55, Kaleidoscope forum by UP MINERS, October 01, 2017 

Mining 56, Presentation at Mining PH Conference 2017, October 05, 2017

Mining 47, JB Baylon on the DENR Secretary

I am reposting here two of JB Baylon's facebook postings about the new DENR Secretary Gina Lopez and the mining industry. These 2 papers were posted by JB last February 26. 

For me, there are two issues here in the on-going controversial policies of Sec. Lopez: (1) heavy government regulations and taxation of the mining industry, and (2) rule of law, when government revokes the mining/business permits that itself has granted.

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AN OPEN LETTER TO THE CBCP

It seems that some members of your ranks are raising the flag of LAUDATO SI to call for the confirmation of the DENR secretary designate.

Please ask these individuals to make sure they have read it and read it well.

Because if they did they should have noticed this:

1. The Holy Father mentions mining directly ONLY ONCE - on Paragraph 51 where he rails against the harm caused by mercury pollution in gold mining and sulphur dioxide pollution in copper mining.

That's in one line in one paragraph out of 246.

2. But the Holy Father mentions "impulsive and wasteful" consumption (par 162), "scandalous level of conusmption" (par 172), the need to modify consumption (par 180) over THIRTY TIMES!!

That's THIRTY TIMES versus ONCE.

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WHY SHE IS A BAD CHOICE EVEN IF SHE IS A LOPEZ

(Or maybe because she is one?)

SHE SAYS: : mining is damaging our environment! If you love your country, really really love your country, you should be against mining. The environment is more important than the money the miners make!

THE TRUTH: mining covers less than 3% of our TOTAL LAND AREA - so if as she claims that mining does damage the environment in 3% of the country. who inflicts the damage on the rest, on the 97%???

But more importantly RESPONSIBLE MINING means PROGRESSIVE REHABILITATION... and over the last five or so years mining firms have planted over 20 MILLION TREES nationwide.

Not to mention coral reef rehab.

Finally she has not acted against illegal mining especiallly the small scale operations that pollute the environment, are not required to rehabilitate their mining areas and do not pay taxes properly!

SHE SAYS: Mining makes communities poor. Look at Caraga it remains the poorest region in the country!

THE TRUTH: Mining communities are far better off with responsible mining that brings electricity, schools, Clinics, scholarships, roads and other businesses. Mining firms spend BILLIONS to fill the void that Government misses in remote areas. Without mining, the residents of these otherwise remote communities will have to fall back on subsistence farming or subsistence fishing. Most mining areas are inhospitable areas or areas whose soil is not loam soil that is perfect for agriculture.

Without mining they won't be poor - they'll be dirt poor!

SHE SAYS: There is no such thing as RESPONSIBLE MINING.

THE TRUTH: On her first day in office (July 1) she was told by Leo Jasareno that all mining firms had to undergo ISO 14001 certification which is the HIGHEST international standard. She hailed ISO 14001 as "another way of saying responsible mining." But maybe the next day she found out that most mining operations obtained their ISO 14001 certifications - so she scrapped that and conducted her own audit. But if ISO 14001 is the HIGHEST standard, then her audit has LOWER STANDARDS, yes?

SHE SAYS: Embrace Laudato Si, the Papal Encyclical on Climate Change! Those against mining use Laudato Si to condemn the industry.

THE TRUTH: Laudato Si is made up of 246 paragraphs. The Holy Father only mentions mining ONCE, in paragraph 51. But he lambasts wasteful and shameful consumption more than 30 times and points out that MEDIA fuels the consumption mindset.

She should be LAUDED for her passion.

But she should be REJECTED for the position she aspires for because her PASSION colors her MINDSET.

Just because she is passionate and a Lopez do not make her a good choice to be Secretary of the Environment and Natural Resources.

We need a better one/ someone who knows the Law, is incorruptible, has a fear of God and is no-nonsense. Like lawyer Tony LaViña or geologist Caloy Arcilla. You cant run circles around either of them even if you tried.

Reject Gina Lopez.

Let the DENR's loss be the ABS CBN Foundation's gain!

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See also:

Mining 44, Presentation at the Mining 2015 Conference, September 17, 2015 

Mining 45, Presentation at UP Diliman, October 02, 2015

BWorld 19, Taxation and regulations in PH mining industry, September 24, 2015 

Mining 46, The new DENR Secretary and other watermelon activists, July 07, 2016

UHC 21: The PGH, Manila City Government and Civil Society

An official of the University of the Philippines (UP) Manila, where the College of Medicine and the Philippine General Hospital (PGH) is based, Dr. Tony Leachon who is also a friend, posted in his facebook wall about the need to raise the budget of the PGH.

This year, the UP System (UPS) total budget is P9.53 billion of which P2 billion goes to PGH alone. Next year, UPS total budget will be P8.1 billion, and again, P2 billion of which will go to PGH alone. This year too, UPS’ capital outlay (CO) is P1.45 billion but zero for next year.

(See http://www.dbm.gov.ph/wp.../uploads/NEP2014/VIII/VIII.pdf)

Those in UP Manila estimate that PGH needs P4 billion a year to run smoothly, a “Harvard like institution” and at least P1 billion is for CO alone to improve or replace many of its dilapidated facilities.  

There are two moves being proposed. One is to double PGH annual budget and two, PGH should have a separate budget from UPS budget.

I suggested that there should be similar effort to pressure the Manila City government to contribute to PGH regular funding. I think it is safe to assume that about one-fifth of PGH’s patients, confined and outpatient, are residents of Manila City.

The City of Manila government does not feel it has any responsibility over PGH funding as it also finances about six city-owned hospitals, like Ospital ng Maynila , Ospital ng Sampaloc, Tondo General Hospital, Sta. Ana Hospital.

This is not correct. The city government has "no responsibility" but "has privilege" or "has right" to use PGH for its residents. Right without responsibility is a good formula for free riding and citizen irresponsibility.

A better option for the city government would be to sell or privatize one or two of its six (?) city hospitals, get the money and contribute to PGH regular funding.

This practice by national government agencies to subsidize Manila-based facilities and give Manila-based residents various subsidized or free services contribute to more congestion of Metro Manila. People in the Visayas, Mindanao, Bicol or Ilocos regions have no PGH but they contribute to the annual budget of PGH. They do not have MRT or LRT but they contribute to the annual subsidy of LRT and MRT. So many people from the provinces jump to Manila, partly to enjoy these freebies that are not available in their provinces and cities.

If the Manila City government will not contribute to PGH funding, PGH should NOT get budget increase from Congress. Instead, Congress-appropriated budgetary hike for healthcare should go to existing big DOH hospitals in Mindanao, Cebu or Iloilo, Bicol, Ilocos, Cagayan regions. Make these region-based hospitals become more modern, in infrastructure and health professionals’ training and specialized services. This way, the old practice of national agencies (UP, DOH) favoring Manila-based residents and contribute to further Manila congestion will be corrected.

Someone suggested that my above proposal does not and should not apply because of health insurance portability principle, that national taxes should apply to everyone. If we are to follow this logic, then it should be fine to have 3 or 5 more PGH in Manila City alone, and if funds for healthcare in other cities and provinces are not sufficient, public hospitals there can be closed down, anyway the people can go to the many PGH system in the city of Manila alone.

Any increase in public health should go to one regional or big island hospital -- in the Visayas, Mindanao, Bicol, Ilocos, or Cagayan region. Any significant increase in PGH funding should come from the Manila City government and from private donation, what Atty. JB Baylon is doing to raise funds for the PGH Medical Foundation through the "I am a Person Giving Hope (PGH)" campaign. Many showbiz, basketball stars and corporate individuals are supporting this cool initiative.

There should be more civil society and corporate involvement in increasing PGH funding, it should not rely on more national funding. Once again, the Manila City government must contribute to PGH annual funding as the hospital is serving many of its residents and voters.

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See also:

UHC 17: First, Second and Third Lines of UHC for the Poor, July 30, 2013 

UHC 18: DOH Budget, Healthcare Deregulation and PharmaWealth, August 08, 2013 

UHC 19: Health is a Right, Health is a Responsibility, September 19, 2013 

UHC 20: Health Equality Will Never Happen, September 20, 2013

EMHN 9: Private Sector Role in India UHC, April 10, 2013 

Generic Drugs 4: DOH Generics Summit 2013, October 04, 2013

Foreign Donations and Customs Bureaucracy

This is from a friend, JB Baylon of the I Am PGH (Person Giving Hope) Foundation. He posted this yesterday in his fb wall, about the Customs bureaucracy even for donations to victims of typhoon Haiyan.

EXTRAORDINARY CONDITIONS REQUIRE EXTRAORDINARY RULES. I just saw an email exchange between Gil Santos and someone based in Guam about an aborted effort to donate used X-ray equipment and other supplies from the US, aborted because Customs officials are allegedly assessing each of the four 40-foot containers $12,500.

This reminds me of a story of a ship laden with used hospital equipment that returned to the US without unloading its cargo for PGH also because Customs officials were imposing some tariff on the donations...

As if the PGH is not in dire need of help like this??

This is not the first time I've heard of things like these. When Enrique Zobel was trying to explore ways of helping fellow para and quadriplegics like himself we discovered that collecting slightly used wheelchairs and hospital beds from abroad would be subject to tax here at home.

I think it is time to review these policies and Yolanda provides us the perfect reason to do so.

I think any donation to a public hospital should be tax free. Any donation to a private hospital should be taxed at half or less than the normal.

Now anyone who tries to use this tax free or tax reduced donation system to smuggle items and/or somehow circumvent our Customs regulations should be dealt with firmly with the "guilty" institutions blacklisted and its officials criminally charged.

The default principle of government. policy should be to make it easier to donate. As it is now it seems the default principle of policy is to strangle the process so as to avoid any forms of smuggling... 

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Four years ago, I wrote about the Books for the Barrios (BftB,www.booksforthebarriors.com) donation of thousands of books, other education materials from the US to rural public schools here in the Philippines.

Those books from America were donated FREE.
Those books will be distributed to public elementary schools in rural areas of the Philippines for FREE.

But when those containers of books from the US reach the Philippine ports, BftB Manila pays for the following:
1. Customs duties around P65,000 -- yes there are taxes for donated and used books!
2. Customs broker around P60,000 -- an agency that deals everything with the Bureau of Customs (BOC).

The BftB Manila staff who narrated me that story last year, said that what's worse, donated medicines and vaccines by volunteer medical missions from abroad, many of them are parked at the Customs area and allowed to deteriorate. Why? Those medical missions and volunteers have money for the airfare of the volunteers and shipment of free drugs and vaccines. But they never expected there are high taxes and Customs brokerage to pay for those donated medicines, so they did not bring money for such. Those vaccines are on refrigerated containers that run on electricity, of course. Since they cannot pay the taxes, and the medicines require continued electricity while the papers and payment are being processed, the BOC personnel disconnect the electricity as electricity charges are being borne by the Bureau. Within hours, those useful, essential, life-saving medicines become useless as they need to be kept at a particular temperature (say 0 or 10 Celsius). When the temperature goes up or down significantly, the medicines become ineffective for their intended patients.

(See CSOs and State 8: Gawad Kalinga, Health NGOs and Taxes)

I checked the Bureau of Customs (BOC) website and I saw this bureaucratic process, that donated goods must pass through the DSWD and must be cleared with lots of requirements. See here.

O, bureaucracy. One more reason why the BOC should be abolished, and a unilateral free trade, free movement of foreign donations, should be adopted.

Pork Barrel 5: Abolish Pork Fund, or Shrink Government?

The other day, a friend way back from UP Diliman undergrad in the 80s, JB Baylon, posted this in his facebook wall and tagged me, below. I am attaching some posters circulating in facebook for the Citizens' indignation rally on Monday, August 26.

PENNY-WISE, POUND FOOLISH??? THE ULTIMATE PURPOSE

…I think it is important to highlight the fact that the PORK we wish to save from the clutches of the porkish is only 1% of our total national budget. This is not to say that it is not worth "saving" even just 1% from ending up in pockets and not in real projects. But it highlights that there is a bigger issue here which should show us to the ultimate purpose of our "agitation". You see we could be focused on the 1% and all het up about it -- but what about the 99%? Who's watching that?

In the Western world they have this saying, "Penny wise, pound foolish".

You see, in my view, the objective should NOT be to remove pork, to do away with it, because that will NOT solve the fundamental problem or address the fundamental weakness. The objective should be to INCREASE TRANSPARENCY IN AS MUCH OF WHAT GOVERNMENT DOES as is possible -- which means we focus as much on the 99% as we are now so agitated over the 1%!!!!

That's where my argument about the need for the FOI bill comes in.

This is why I keep saying, we cannot fall back on our usual habit of knee jerk reactions to issues. We will end up focusing on the 1% and leaving unattended the 99%. Penny wise, pound foolish.

The real issue, folks, is TRANSPARENCY.

… Now, will it take too long to populate the database? of course not. Everytime an NGO CSO or whatever entity applies for a pork grant it should enter its info into the website -- so long before the COA can finish an audit most of the info should be there, for the public to see and the media to verify! Early on we will know if Senator Pork is lining his pockets or Congressman Swine is filling his sty. And then it is up to us to act.

To repeat: I am worried that our focus on pork and its abolition misses the bigger issue: TRANSPARENCY. Eliminate the pork but do not institute transparency and you have a problem with the 99% of the budget. Insist on the institution of TRANSPARENCY -- easier to do in this day and age of Information Technology -- and you strengthen the power of the citizenry -- the Bosses -- over any public servant who may wish to pull a fast one. That would still happen, for sure -- but at a scale far less than the one we are discovering as we sift through the sty.

I thanked JB for his ideas and commented that more than transparency, government size -- the bureaucracy, regulation and prohibition powers, the budget, should shrink, or at least should stop expanding fast. 

http://funwithgovernment.blogspot.com/2013/08/pork-barrel-4-ten-q-on-pork-scandal.html

I support Malou Tiquia's proposal that the 2013 budget (P2 trillion) be re-enacted, throw away the 2014 proposed budget (nearly P2.3 trillion). For those in automatic appropriation like IRA, a supplemental budget can be passed. Interest payment this year is P333 billion, will rise to P352 billion next year. Government just keeps the spend-spend-spend, borrow-tax-borrow policy irresponsibly, spanning all administrations from Marcos up to the present.

A mutual friend, Steve Cutler, replied that “the phrase "moderate your greed" comes to mind for citizens and residents, too. For the government to shrink we as the people must stop asking for so much from the government. It seems like every time something happens, we turn to the government and demand action. We fall on hard times, and we want the government to give us a helping hand. Most often, that is cash, but other times it is some kind of service. Turning more to our own resources, and paying for services we want on an as needed basis, which is the model for a toll road, seems to be what you're suggesting.”

Yes, Steve is correct. Many people asking for the abolition of pork barrel are unaware that they are pointing some fingers on themselves. You want more condoms for the poor? Buy some of it and give to the poor, do not ask for more budget (and more taxes and fees to finance it) even for simple and ordinary procurement. Government should focus, even expand, on its 3 core functions:

The main function of government, its raison d’etre, is to protect the citizens’ right to life (against aggressors), right to private property (against thieves and saboteurs) and right to liberty and freedom of expression (against bullies). All other government functions are either secondary or unnecessary. This is where shrinkage of government bureaucracies and spending should occur. Where there is less money to steal, less stealing will happen.

Pork Barrel 3: The Silent Idealists, the GFO-NGOs

The pork barrel scam and robbery continues, we should keep the pressure until a big investigation will yield some of those corrupt legislators in jail. Asking for the abolition of pork barrel I think is next to impossible now. But asking for the heads of those who have been implicated so far, past and present, is not impossible, so long as political pressure from the public is sustained.

Also, when many NGOs have become government-funded organizations (GFOs), this is one indicator that corruption has become pervasive. So-called non-governments have become part of government, pasimple lang.

A friend from UP, JB Baylon, has posted several comments and ideas in his facebook wall about the issue. I like his status updates, made from August 7-10, today, so I asked his permission to blog them, below. Thanks JB. Those in parenthesis are my translation.

1. (Pork barrel) Don't you think this issue more than anything else is what we as a nation should focus on? If true, it reveals the ROT that goes to the very core of our political system, and could very well explain why no Filipino believes that with diligence and hard work and by following the rules he will succeed on the merits.

Where are those civil society folks who were "brave" enough to face Marcos, Erap and Gloria? Why is there only silence now? Is is it because their friends are involved and they don't want to hurt or embarrass their friends by speaking up?

Is it because even they are involved???

And then we still complain why things never change in this country?

Buti na lang we can divert our attention and just cheer for Gilas Pilipinas....never mind if the whole country is rotting from the inside.

2. As citizens we should rejoice at this Napoles issue and ensure that it is played out in full and to the bittersweet end. How the administration handles it will be the ultimate test of the Daang Matuwid advocacy.

3. Why should poor we -- the "Boss" -- when we are sick, go to a PUBLIC HOSPITAL like PGH that is straining at the seams, its staff working overtime with over-used equipment housed in a 100-year old structure, while our "Servants" , when they are sick or claiming to be sick check into super-modern PRIVATE HOSPITALS? Don't you see something wrong in this equation??? And the SERVANTS pocket the priority development fund??? No wonder they abolished the death penalty....

4. Nasaan na yung socialite at yung mga kakampi niya na grabe tumira sa mga mining firms? Bakit tahimik sila sa pork barrel??? Ok lang ba magnakaw ng pork pero di okay ang pagmimina? O dahil ba mga kaibigan ninyo ang kasabwat? Ang galing ng network ninyo manggisa ng mga minero, pero tahimik kayo sa magnanakaw na mga kabarkada ninyo?

(Where’s that socialist and her allies who are rabid critics of mining firms? Why are they silent on pork barrel? Is it ok to steal but not ok to mine? Or your friends are linked to it? Your network are good at frying the mining firms but are silent on your friends' stealing?)

5. Nasaan na rin yung mga akala kong idealistic na mga kabataan, na nagmamartsa laban sa China, sa America, sa Apeco, sa mining atbp? Bakit kayo tahimik sa pagnanakaw ng pork? Nakakabingi ang katahimikan na nanggagaling sa inyo....

(Where are the idealistic youth, marching against China, US, Apeco, mining, etc? Why are you silent on pork robbery? Your silence is defeaning.)

6. Nasaan na ang Simbahan? Bakit walang pastoral letter sa pork? Ay, teka, bakit ba ako nagtataka....naaambunan ba sila sa pagbubulsa ng pork?

(Where is the Church? Why is there no pastoral letter on pork? Or they received portions of the pork?)

7. Yung Fertilizer Fund Scam, P700+ Million ang pinag-uusapan. Etong Pork Barrel Fund Scam, P10 Billion ang pinag-uusapan....Nasaan na yung mga nagmarcha laban sa Fertilizer Fund Scam? Di na ba maka marcha kasi puno ng pork barrel ang bulsa? Tanong tanong lang pag may time.

(Where are those who marched against Fertilizer fund scam? You cannot march because your pockets are full of pork?)

8. Yung snatcher sa Quiapo, narurub-out ng pulisya. Yung snatcher ng pork, narurub-out ang ebidensiya! Repeat after me: Pork Para sa Masa, Hindi Para sa Bulsa!

(A snatcher in Quiapo can be rubbed out by the police. The snatcher of pork, they can rub out the evidence. Pork for the masses, not for the pockets.)

9. Ang lalakas mag protesta na ang pagmimina daw ay pagnanakaw sa sambayanan!!! Ang lalakas magprotesta laban sa aggression ng America o ng China!! Tapos tahimik sa pagnanakaw ng pork??? May balato ba kasi sila??? O selective ang idealism nila? Nagkaka-alamanan na ang tunay na kulay ng ilang mga "crusading" mediamen, socialites, religious leaders, civl society, student leaders atbp! The deafening silence reveals the true nature of your "idealism"!

(They protest loud against mining, against US or China aggression. Then silent on the pork robbery?  Do they get a share? Or they have selective idealism?)

10. Nasaan na yung mga kabataan na nung halalan ng 2010 at 2013 ay nagsisisigaw ng Pagbabago? Bakit umiksi yata ang dila ninyo at hindi kayo maka-sigaw tungkol sa pagnanakaw ng pork? Puno ba ng lechon kawali ang mga bibig ninyo? At ang ibig sabihin ba ng pagbabago ay "kami naman"????

(Where are the youth who, during the 2010 and 2013 elections were shouting for change? Have your tongue suddenly got short and you can’t shout against pork robbery? Are your mouth full of lechon kawali? And change means “our turn”?)

11. Bantayan natin ang mga media outlets: ABS-CBN, GMA, ABC, Inquirer, Star, atbp. At tignan natin kung sino ang tahimik tungkol sa pagnanakaw ng pork at kung sino ang may tibay ng paninindigan na mangungulit para sa bayan. Mayroon sigurong ibang matatapalan - pero siguardo ako na may mga iilan na hindi nila kakayaning bilhin.

(Watch the media outlets. See who among them are silent on pork and who have the principled stand.)

12. Kung noon: "The Filipino is worth dying for", ano na kaya ngayon?

Choose one:
a) "Para Que Estamos en Poder"
b) "The pork is worth dying for"
c) "Moderate the Greed"
d) "Everybody cheats (steals) anyway"

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See also: 

Welfarism 15: Abolishing Pork Barrel, February 04, 2012 
Pork Barrel: The Janet Napoles - Legislators' Scam, August 04, 2013 
Pork Barrel 2: Napoles, Legislature and Executive Branches Corruption, August 05, 2013

Weekend Fun 44: Cow Economics

This revised "Cow Economics" is funny, got this from JB Baylon's facebook status, thanks JB. The photos, I got them from the web.

A Lesson in Global Economics

Traditional Economics:
You have two cows. You sell one and buy a bull.
Your herd multiplies and the economy grows. You retire on your income.

Indian Economics:
You have two cows. You worship them.

Pakistani economics:
You don't have any cows. You claim that the Indian cows belong to you.
You ask the US for financial aid, China for military aid, Britain for warplanes, Italy for machines, Germany for technology, France for submarines, Switzerland for loans, Russia for drugs and Japan for equipment. You buy the cows with all this and claim exploitation by the Western world.

American economics:
You have two cows.
You sell one and force the other to produce the milk of four cows.
You profess surprise when the cow drops dead. You put the blame on some nation with cows and allege that that nation will be a danger to mankind.
You wage a war against that cow nation to save the world, and grab the cows.

French economics:
You have two cows. You go on strike because you want three cows.

German economics:
You have two cows. You re-engineer them so that they live for 100 years, eat once a month and milk themselves.

British economics.
You have two cows. They are both mad cows.

Italian economics.
You have two cows. You don't know where they are.
You break for lunch.

Swiss economics:
You have 5,00 cows. None of them are yours.
You charge others for storing them.

Japanese economics:
You have two cows. You redesign them so that they are one-tenth the size of an ordinary cow, and produce twenty times the milk.
You then create cute cartoon cow images called Cowkimon and market them worldwide.

Russian economics:
You have two cows. You count them, and learn you have five cows.
You count them again, and learn you have 42 cows.
You count them again and learn you have 17 cows.
You give up counting and open another bottle of vodka.

Chinese economics:
You have two cows. You have 300 people milking them.
You claim full employment and high productivity.

Philippine economics:
You have two cows. One is white and one is black.
Actually the black one is not a cow -- it is a carabao.
But the person who sold it to you in Greenhills claimed it was an albino cow.

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See also:

Weekend Fun 40: Bank Robbery and Management, May 18, 2013

Weekend Fun 41: Nancy Binay, Grace Poe, Other Politicians, May 25, 2013 
Weekend Fun 42: Danny Purple, UP Diliman Character in the 70s, June 08, 2013 
Weekend Fun 43: Tales from Narra Dorm, UP Diliman, June 22, 2013

Transport Econ 9: MMDA Bureaucratism

The Metropolitan Manila Development Authority (MMDA) is among the huge bureaucracies in the country. It is supposed to solve problems related to heavy traffic congestion, street flooding, dirty streets, undisciplined motorists, and other functions to develop Metro Manila and its component cities and municipalities.

Today, a friend, JB Baylon, posted in his facebook wall about the MMDA. He wrote,

The MMDA has, over the years, tried so many schemes to bring sanity to our traffic: bus lanes, color coding, motorsiklo lanes, yellow lanes and yellow boxes, designated bus stops, even timers at bus stops (!!!) etc. But the MMDA has never been consistent and persistent in implementing these schemes, so, except for the color coding, everything else eventually is forgotten/fails. Not the Gates of Hell, perhaps, but definitely a metropolis of indiscipline, of "regulations-as-recommendations", of anything goes! Traffic - it's more fun in Metro Manila, the Philippines!

I replied that MMDA and many LGUs specialize on so many prohibitions. Driving your own car is not allowed on this day and hours, prohibited to drive on yellow lane, prohibited to make a left turn or U turn there, prohibited to drive your diesel engine car or van unless you pass their smoke test. More prohibitions, more regulations, more penalties, they make lots of money from those plenty of prohibitions.

Another friend, Stephen Cutler, replied,

I suggest, Nonoy, its because they don't have the right goals in mind: 1) traffic safety 2) traffic ease. Most of these guys don't drive, so they don't have to feel the pain of drivers. Most policy makers have drivers who take the strain, and the enforcers use public transportation. Neither are behind the steering wheel. Poor quality and non-standard signage is one example of this fact. The US, Australia, Europe and other nations have adopted a Uniform Signage code so that signs are at a uniform style/type, height, location and so on. Privately owned roads, such as the majority of the roads in Makati, but which are open to the public must conform.

I told Steve that these guys have clear and explicit goals in mind -- they are the central planners who will influence everyone else's behavior as motorists or commuters. More prohibition means (a) more revenues for MMDA and LGUs due to lots of acts that are prohibited, and/or (b) more extortion as many innocent motorists who are less informed of certain traffic rules will be forced to negotiate with them to spare further hassle and trouble.

Traffic congestion is very often an engineering problem with engineering solutions. If bureaucratic solutions are adopted, more problems are created than solved.

Someone suggested that “laws that make traffic violations be made a criminal offense, and said laws enforced, make the driver spend 30 days in jail when he makes an illegal U-turn, or 45 days when he fails to stop at a red light. Hopefully spending time in jail would make drivers think twice about breaking traffic rules. And don't improve the conditions of the penitentiaries. Let the driver suffer.”

Most likely this person does not drive here in Metro Manila, or does not drive often. In this country, all  traffic prohibitions apply only to ordinary motorists. Red plate vehicles, police vehicles, low-numbered plates (6, 7,... 16 or 4 - 5 digits, etc.), armored vans, or ordinary civilan cars but with political VIPs inside, are all exempted from those prohibitions. The government is the worst violator of the rule of law, and it  wants to impose more prohibitions, more restrictions.

Another suggested that MMDA should be abolished. I support his proposal but one problem there is that once a bureaucracy is abolished or shrunk, LGUs themselves will put up a new inter-LGUs body with a bureaucracy similar to MMDA. So one bad reality we have to live with is that bureaucracies just sprout like amoeba, they are everywhere, expanding or perpetuating themselves. The least we can expect from them is to limit their powers to create and expand the list of prohibited acts as if we ordinary motorists and commuters are their slaves.

More observations and ranting.

1. MMDA and LGUs want people to take public transpo, to car pool and reduce traffic in MM. Fine. But they make commuting hard and very inconvenient. For instance, you ride a bus from Ayala or Edsa, going to LRT taft to go to Monumento or nearby. MMDA forces commuters to get off about 300 meters away from the LRT station, they have to walk under the sun, or under the rain and flood, or avoid possible pick pockets along that distance. Fine if one is not carrying anything heavy or feeling well. But if one is sick, or carrying heavy things, such a huge discomfort to commute.

2. In Buendia, Makati city govt created a long line of "No jaywalking" along the island, sometimes as far as 200 meters. So to go to the other side, one walks 200 meters east or west, cross the street, then walk another 200 meters to one's destination. Again, if one is carrying heavy things, or valuables, or not feeling well, the discomfort of commuting -- and govt says people should commute more and not drive their cars.

Mining 17: Palawan, Samar, Surigao and Mine Tailings

There is one lively exchange on mining in the facebook wall of a friend, JB Baylon. The original exchanges were made last February 19, 2013. Then the other day, one of JB's friends, that we will just call Mr. U, made strong anti-mining comments and called those who posted about mining in Australia and people wearing precious stones as "morons". It's personal attack of course, shooting the messenger, not the message.

I am posting the raw, unedited exchanges, except the less substantial comments. With explicit permission from JB and implicit permission from the others. To see the raw exchanges, check here on JB's fb wall. The three photos below are a screen shot + images from the sites mentioned. Six pages long, 3,200+ words, so get your snacks and enjoy reading.

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February 19, 2013

Time and again I have asked university students "How many of you have signed a petition against mining?" and MANY hands go up. Then I ask them "How many of you have been to a mine?" - and almost NO hand is raised. As a self-proclaimed "political commentator and social observer" the results amaze me and sadden me and thrill me all at the same time - I am amazed because people (whatever age) are willing to SIGN petitions based solely on what they have heard; saddened, because this tells me that when you (an individual, an organization, even a corporation) are up against a well-entrenched campaign to impugn your character and you don't have a chance to show people the real you, then you will most likely be judged by what media tells people about you. And thrilled, because each and everyone I have accompanied to see the mining operation I work for has returned from the visit a little better informed and more open to the idea that there is a valid distinction between mining operations on one hand and responsible mining operations on the other - just like in almost any family there is the proverbial black sheep among the white. THE PROBLEM IS, we cannot afford to bring 100 million Filipinos to see how we do business - and yet many media practitioners consistently REFUSE our invitation to go - afraid perhaps that they will have to eat their words and admit that they have not been totally fair?? Today I extended an invitation through a friend to organize a visit for a network, and was told that the response was "lukewarm". Why? For this I am grateful to those who have accepted my invitation to go and who have remained free, after to visit, to say or not say (or write or NOT write about) what they feel about our operations. At the very least i hope the trip provided them a different point of view from the general impression that our industry sometimes unfairly labors under. Indeed my warning to those who join me on the trip is this : Be prepared to have many if not all of your pre-conceived notions about mining companies challenged, if not totally over turned. And I know that that can be a very unsettling proposition!

Paul Alli I am from Samar, and I know what the mining companies have done to its environment: pillage and plunder while destroying its environs. Meanwhile the Samarenos are still majority poor. No wonder they call us "Warays" because its English translation is "nothing". I can document cases in Samar where they have undervalued copper, manganese, and chromite exports to other countries, thanks to the DENR,LGUs and Bureau of Customs in cahoots with the mining companies. I am also working with another case in Surigao. A land belonging to a tribe. Its chieftain told me that until now the 29 mining companies operating in their tribal land has not given them royalties from their mining operations.

JB Baylon We should come down hard on anyone and everyone who violates the law. It is as simple as that. And I am not surprised about what you said about government being in cahoots...this is true in many industries. Unfortunately there is no short cut: prosecute the guilty. Unfortunately also we cannot jump from your experience there to make it a general rule. I am just sorry if Samar has gotten the raw end of the deal for years. Who are the companies and who are the owners?

Paul Alli I cannot name names here..you know the law nowadays. I will send you a separate email if you want.

JB Baylon Paul Alli yes please...private message me so I can give you my email address. This should be part of our cleansing the political-economic system...

Grace Arre-Carandang Hi JB, I likewise would have said no to mining years ago due to lack of knowledge about it. Having moved to Australia, it didn't take long for me to understand that mining is one of the propellers of this nation's economy. It brings in billions of dollars of export income from supplying minerals and resources globally (iron ore, coal, nickel, copper, just to name a few). It provides work for millions (including immigrants) and supports communities all across the country. If they have turned mining into a successful industry from where it started 150 years ago, our nation can do it too.

Tess Leano People who are against mining should never wear precious stones (diamonds, ruby, sapphire,etc) and metals (platinum, gold, silver, etc) because of obvious reasons - they are mining products!

JB Baylon Aimee Grace B Tapeceria Grace Arre-CarandangTess Leano thank you very much for your comments. as I said there are irresponsible miners and there are responsible ones and the problem is that the sins of the former are typecast as sins of everyone. Responsible miners should get their act together and themselves help call the irresponsible ones to account -- but guess what: there is so much politics and corruption involved that someone (an ex-military official) told me that illegal mining is the new JUETENG. So that's what we are up against here....

May 1, 2013…

Mr. U. People commenting here about mining in Australia and wearing stones and what not are morons. I live in Surigao where mining is rampant. Some of our rivers there are now dead due to laterite. Australia is a huge country where they can mine far from where the people live. In our place our mountains are right beside our towns, our agriculture, our fishponds where we catch our fish. They are connected to our beaches. "watershed" areas are not to be mined. We tried to stop the cutting of our trees and yet we support mining? Parang sinasabi mo sa barbero, "manong hindi nyo po puedeng putolin ang buhok ko pero puede nyo po i scrape yung scalp ko." Ganon ba tayo ka tanga? By the way JB have you been to Surigao? if not, better go there and look for yourself the bad effects of mining that you trying to defend. It is not rocket science to understand what's good and bad. Here is a video http://www.youtube.com/watch?v=uG2Un59hgMA.

Mining 12: Political Risks vs. Natural Risks

Mining, the science and engineering of discovering and extracting valuable minerals for various human needs, is among the high risk investments in the country and elsewhere around the world. Since almost all governments worldwide follow the Regalian doctrine saying that "all lands of the public domain belong to the State, that the State is the source of any asserted right to ownership of land and charged with the conservation of such patrimony", then all economic and business activities that deal with natural resource extraction must deal with governments.

Political risks therefore, can be high as there are various government agencies and institutions that a mining firm must deal with, from local to national government units, from the Executive to Legislative to the Judiciary. And even civil society organizations (CSOs) that can create certain negative publicity and political pressure can be part of the political risks.

Natural risks or those coming from nature are relatively easier to deal with. Heavy flooding and erosion of an open mining pit, collapse of a containment wall of mine tailings and the wastes spill into a river or the sea, collapse of structures in underground mining. These are engineering problems which have engineering solutions. Or financial problems with financial solutions, like getting an insurance to deal with natural calamities.

In a presentation, The Mining Industry in Emerging Markets: The Philippines made during the Mining Philippines 2012 Conference last September 18-20, 2012, these three risks were mentioned: 

Title Risk
A major part of legal risk is the nature of the right of the mining company in question to develop the deposit that forms the basis of the mining project... ownership right in minerals is vested in the central government, and all that can be obtained is a license to mine the minerals in question. 

Tax Risk Potential taxes assessable on a mining project are numerous. The local project company may be subject to a profits tax, value added tax ("VAT") on services, royalties or other forms of local taxation. In addition, there may be withholding taxes on interest and dividend payments made offshore. 

Political RiskThis is viewed by the majority of institutional investors as the number one risk in emerging markets. It might be difficult to quantify but its systemic impact is quite evident. Stability is the single biggest threat. How strong are the pertinent governing institutions? How rampant is corruption and bribery? The reason this is the greatest risk is that it can very well lead to cancellation of a project or confiscation and/or abandonment of an investment.

One example of political risk, well risk that has materialized and has created policy damage already, is portion of Executive Order (EO) 79 issued by the President on July 06, 2012. Among the new areas "closed to mining" under Sec. 1, c to e are:

• Prime agricultural lands, in addition to lands under CARP, strategic agriculture and fisheries development zones and fish refuge and sanctuaries as declared by the Secretary of the Department of Agriculture.
• Tourism development areas, as identified in the National Tourism Development Plan.
• Other critical areas, island ecosystems, and impact areas of mining that the DENR may identify.

These new restrictions are not found in the Mining Act of 1995 (RA 7942) or other laws created by Congress. Yet private players have to obey this new ruling and any existing project, or proposed and planned mining project on any of those four areas, will have to be shelved, even temporarily.

In a short article last April 05 in The Daily Tribune, EVP of the Chamber of Mines of the Philippines, Nelia Halcon, said among the recent risks that mining firms have to face here are:

... the moratorium imposed by the local government units (LGUs) on mining projects also needs to be addressed. She said the Mines and Geosciences Bureau (MGB) moratorium on the grant of mining tenements obscure investment promotion activities. 

“If the moratorium in the grant of new mining permits will remain, which is now on its third year, the chances for the mining industry to grow will not happen and will cancel out the progress made in the past,” she said.The country also has to come out with a clear-cut policy on small-scale mining, she said.

Halcon also cited the recently issued Circular by the Bureau of Internal Revenue (BIR) indicating that companies have to pay taxes during the recovery period. “Companies are still recouping their investments during this period. This will have great implications on projects that have recently been on stream as well as on new projects, further eroding investor confidence in the country,” she said. 

There you go. Uncertainties and political risks from (a) local government units, (b) Mines and Geosciences Bureau, (c) Bureau of Internal Revenue, (d) Office of the President itself. And uncertainties when the current Mining Act is revised.

On a related subject, a presentation by a friend JB Baylon, VP of Nickel Asia Corporation, entitled  Mining and Me! My personal discoveries about the Mining Industry as it addresses the challenges ahead made at DLSU Manila last January, showed these points.

I like the three photos on point #5. From a denuded, zero vegetation and mined-out area, to thick forest cover in just three years. Many people do not know that.

The main purpose of government is to promulgate the rule of law that will protect private property, like private investments. So when government creates new orders or regulations that significantly revise or contradict existing laws as created by Congress, this promotes not the rule of law, but the rule of men and the bureaucracy. These things need to change and government should stick to respecting laws as made by those entrusted by the Constitution to make laws, Congress.

Meanwhile, there is an interesting, well written article today about Rio Tuba written by a new friend, Carla Ravanes,  The Mine of the Matter.
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See also:
Mining 8: Rio Tuba Mining in South Palawan, March 17, 2013
Mining 9: Supreme Court Hearing on RA 7942, March 27, 2013
Mining 10: Urban Tailings vs. Mining Tailings, March 31, 2013
Mining 11: Big Projects in the US, UK, Canada and Australia, April 04, 2013

Mining 10: Urban Tailings vs. Mining Tailings

This is a continuation of my earlier article, Rio Tuba Mining in South Palawan last March 17, 2013. Among the most commonly-cited reasons why many people dislike mining in general and large-scale mining in particular, are the mine tailings -- or mining dumps, slimes, tails, residues that look ugly and discolor rivers and seas. Four photos below I got from the facebook wall of JB Baylon, posted March 16, 2013.

Urban tailings, or upland farm tailings or mud, coming from Pasig River and its upland tributaries like portions of Laguna Lake and Marikina River.

Manila Bay, mouth of Pasig River

Compare it with Rio Tuba River below, where mineral ore extraction is also happening 24/7 so long as it's not raining. No mine tailings.

Rio Tuba River, Bataraza, Palawan

The bay area where the mining ores are stockpiled before they will be loaded to waiting ships. Those in orange hills are tarp cover to reduce or control any dust pollution when the wind blows from the sea. Those not covered yet are still under solar drying to reduce moisture content, or dry enough and are slowly being transported to the ships.

Mining ores ready for transport to waiting ships

Another ore stockpile area below. It is sandwiched between an agri farm and a thick layer of mango forest by the bay. Again, no trace of mine tailings.

Another ore stockpile area in Rio Tuba

Blood Donation 4: At the Philippine General Hospital

Below are my facebook notes today when I went to the Philippine General Hospital (PGH) to donate blood to a patient who has been at the intensive care unit (ICU) for a month now…

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Arrived at the hospital around 7:30am. Guard at the entrance won't allow me because I don't have written authorization letter from the patient or his/her guardian that I am donating blood. I said I don't have one because the notice to ask for blood donors was done only via facebook.

Anyway, I went to the 6th floor, patient's room. I was told to go to 2/F, ICU, the patient is there. I saw Rosalie at the ICU, my heart sank. The staff there gave me a form to give to the blood bank as my authorization letter.

At the blood bank, there were many donors in a small room, air con. I arrived there around 7:50am. Guard gave me the form to fill up, medical questionnaire to prove that donor is indeed in good health (no HIV, no malaria, no tatoo, no body piercing, no maintenance drugs, etc.). Then guard said, "Balik na lang po kayo 10am, next batch na po kayo"

Aray ko, paano trabaho ko, sabi ko sarili ko. Pero andito na ako, hintayin ko na, as I remember the sorry condition of the patient. I went out for breakfast, then to an internet shop.

I have donated blood 3x to 3 different patients before. At Makati Med, Asian Hospital in Alabang, and Medical City Ortigas. Donors are treated well in all of them -- clean, air-con, big rooms with cable TV, but few donors. Clean CR is just nearby. The staff there are very friendly and courteous, they told me they really lack blood donors, the hospital has to buy blood somewhere sometimes.

Went back to blood bank section at 10am as instructed, guard said it's only for further interview of our response to the questionnaire, the doctor that will take our BP, heart rate, check any suspicious physical problem, will come at 11am, ouch, then blood sample extraction. All these were finished by 11:30am. We were told to come back after 1 1/2 hours (ie, 1pm) as they will analyze our blood for any impurities (ie, free of HIV, malaria, dengue, whatever viruses/bacteria).

I just got out of PGH compound and crossed Taft to eat and walk around, when the incoming President of the PGH Medical Foundation, JB Baylon, called me. He was in his car and he's going to the PGH, what a coincidence. He asked me to hop in, I did. He brought me to the Foundation office, we talked about many things about public health, PGH, private giving, the Foundation, etc. Thanks for the lunch treat and the chat, JB.

Went back to blood bank around 1:30pm, only to see that those who came ahead of me have never been called yet for the final blood letting. Waited till 2pm, still nothing...

When situation gives you lemon, make a lemonade, so they say. So I walked around and toured the various wards of PGH -- pedia, orthopedic, neurosciences, trauma, etc. My first tour of the hospital actually, by myself. The air around the hospital rooms and corridors seems suspiciously unhealthy. I remember the issue of anti-microbial resistance (AMR) and hospital rooms as nests of new and evolving diseases themselves.

Went back to blood bank around 2:30pm, no one was called for half hour for the actual bloodletting. Many fellow blood donors waiting outside getting more bored, like me.

I went inside and asked what's going on. I saw 6 empty chairs, the staff inside were chatting among themselves, I saw a lady trying to selli bags to the staff.

I controlled my anger as I was told by Andy of the PGH Medical Foundation that the hospital has only one "centrifuge", a machine that tests blood samples for any impurities, which then will be the basis whether to accept or reject a prospective blood donor. That's one major reason why things are soooo slow at the blood bank.

The staff inside, instead of chatting among themselves, at least one of them should have gone out and explain to the waiting blood donors outside, why things are slow, why an ordinary blood donation would ruin practically their whole day's work, but none of that. One male staff, the one who got my blood sample, looked irritated why I asked them when will they call again blood donors so we can go home or go to work.

Later, a lady explained to me that they have to perform 8 different tests to each blood sample. Even if a sample passes 7 of those but fails in one test, a potential donor will be rejected. Sometimes they repeat the tests if they doubt the results. I think it is a valid explanation, but if I didn't ask, she will not explain it to me or to anyone among the donors.

Sensing my impatience, she asked me to sit on the reclined chair for the actual blood letting. Which took me only about 5-7 minutes to fill one bag. Then 15 minutes mandatory rest period.

Went inside the Blood Bank around 7:50am, finished everything by 3:20pm, 7 1/2 hours!