Tuesday, October 25, 2011

Mining 2: Insurgents and Mining Companies

This is my article today in the online magazine thelobbyist.biz. Original title is shown.
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http://www.thelobbyist.biz/perspectives/less-gorvernment/1212-mining-is-necessary-rebels-are-not



Mining of various mineral and metallic products give us computers, cell phones, tv, refrigerators, cars, tricycles, tractors, boat engines, steel bars, cement, door knobs, iron roof, nails, electrical wires, coins, and so on. Thus, all buildings, schools, shops, buses, boats, factories and other means of production, will be impossible without mining.
People who oppose mining as “damaging the environment” should live in caves, or in wooden/bamboo houses with nipa or cogon roof and house joints are not connected by nails and other metallic products, and they should have no electricity. This is highly possible of course, as many people in poor rural villages still live in those structures. The question is if those vocal opponents of mining are willing to live such lifestyle, -- no computers, no internet, no texting, no tv, no electricity.  I bet they will all say No.
Hence, mining is necessary. Opponents can oppose certain mining practices, but they cannot expect zero destruction in the environment as it is simply impossible. Even those who put up an all wood/bamboo house with cogon roof and have agricultural plots outside with no electricity, still alter or damage the natural environment as they have to cut many trees and clear the land for such human settlement and their agricultural activities.

The attack by the communist rebels New People’s Army (NPA) early this month of three mining firms in Surigao del Norte where the rebels burned many trucks, mining equipment, onsite offices and other properties was totally condemnable. The rebels and their apologists cited “protection of the environment” as their main reason for their action and did not admit to plain extortion and environmental stupidity.

Extortion and banditry by the rebel NPAs is wrong. To live off on unproductive work like holding guns and shooting or burning and bombing those who do not give them money is living a purely parasitic life. The parasitism of the rebels is no different from the parasitism of many agencies and personnel in government, the institution that the rebels say they want to overthrow and replace. The only difference is that the parasitism of many organs of the State has legal basis, there are laws and regulations that allow those agencies to exist and justify their claim to taxpayers’ money which are collected by force and coercion, whereas the rebels’ parasitism has no legal basis. But both have coercive powers because both are armed and are willing to commit violence against the unarmed public if they will not oblige to the will of the two armed groups.

Since the Philippine State collects lots of direct and indirect taxes from the mining firms – corporate income tax, personal income tax of officers and staff, VAT, franchise tax, property tax, business permit tax, etc. – the State has the duty to protect the property and investments of those mining firms. The State can inflict penalties against erring companies, mining or otherwise, like closing them if they do not pay the assessed taxes, if they do not secure the necessary business and environmental permits, and so on. But if the State does not do its job of protecting private property rights, what are the penalties against the inefficiency or laziness of the State?

Sadly, there is none. While the AFP Chief of Staff has relieved several high ranking officials of the Army who are deployed to protect those areas, it is a very light penalty that is inflicted only on persons, not the institution. If I have my way, I will propose that those mining companies should be entitled to drastic tax credits, if not limited compensation from the government, for the latter’s negligence of its function and failure to enforce a contract – tax collections in exchange for protection of private property. In this case, the government simply collected taxes and various fees even if it was negligent and lazy to do its job.

If the government is truly accountable, the agencies that were tasked to do the job of protective property rights and failed to do their tasks should suffer budgetary cuts and cut in bureaucracy, and the companies that suffered huge losses from such destruction should get tax credits or compensation from the government, then the affected companies have the option to hire private or community security forces to protect their properties, subject to existing national laws on human rights and property rights.

Of course this is only a hypothetical solution as the government will never entertain such type of arrangement. The BIG government is not truly accountable. Like the rebel bandits and extortionists, the government simply wants to collect more taxes and fees, whether its agencies are doing their job or not.

Lack of promulgation of the rule of law – the law on contracts, the law on private property rights, the law on human rights, etc. – is the main cause of lack of investment and economic growth in the country. Which causes high unemployment and poverty, and poverty, the rebels say, is the main cause why they are rebelling against the State.

Since the State, not the rebels, have the official and formal contract with the people, the State should be answerable and accountable to the people. And the State here includes not only the elective officials but also the appointive personnel and bureaucrats, from the civilian to police and armed force bureaucracies. The rule of law stipulates the penalties against erring government officials and personnel for neglect of their duties. Since these are not followed, what we have actually is the rule of men, not the rule of law.

And while the rebels may have some beef and rationale in fighting the government, their means and philosophies are equally bankrupt and violent, which immediately disqualifies them from any respect of building a civilized society today or in the future.
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On JANUARY 03, 2010, i wrote this:
"Leeches on both ends of the economic spectrum challenge crafters of government policy, specially when resources aren't that plentiful and have to be managed rationally. But the situation becomes even more of a challenge when these leeches are represented in the lawmaking body of the land."

I think that statement is wrong. Only leeches from the socialists and monopolist-minded capitalists applaud more government intervention. Free market capitalists want zero government intervention in business. Except in business practices that result in death and harm to people's health. Like selling counterfeit or substandard medicines. Or selling expired and adulterated food and drinks. Or selling poisonous toys. Or selling bombs. Or issuing bouncing checks. All of these are covered by existing laws and prohibitions against threats to people's health and life.

On another note, there was a suggestion that we still need the Bureau of Customs (BOC) to collect VAT and to police the entry of hazardous materials like guns and bombs through the ports. I believe that VAT collection can be done by the lean BIR, while checking the entry of guns and bombs is a police function, not BOC. Whether the guns come from Iran or Cagayan, whether from Russia or Zamboanga, the police should monitor and confiscate those whenever necessary.

On abiding simple rules, the "rule of law" is a very radical concept.
It says that the law rules over men. No one is exempted from the law, and no one can grant exemption. The law applies equally to unequal people.

When the law says no stealing, then no stealing -- whether by the President or the King or the most desperate and the poorest people. No stealing, period. No ifs, no buts, no exemption.

When the law says "No left turn" or "No counterf-flow" , then no left-turn or no counterflow should be allowed.

Unfortunately in this country, the WORST violators of the rule of law, especially of traffic rules, are the Office of the President, the Presidential Security Group, and the police (PNP).

For this group of people, there is only rule of men, no rule of law. They are the WORST violators of the rule of the law, and we call them "public servants" and we part with a big portion of our monthly income to feed those shameless and arrogant people.

The President and her military escords, they are the WORST violators of the rule of law, at least of traffic rules. Shame on them.
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Monday, October 24, 2011

Migration and Freedom 12: Visa-free entry in Asia

Next month, I will go to Taipei, Taiwan, to attend a conference on generic drugs in Asia. I have not been to Taiwan before, so I am excited to see this place.

In the Association of South East Asian Nations (ASEAN), citizens of the 10-member countries (Philippines, Thailand, Vietnam, Cambodia, Laos, Myanmar, Singapore, Malaysia, Brunei, Indonesia) can travel to other member-countries visa-free for visits of 30 days or less. I am not sure though if Myanmar gives the same privilege to all citizens of the other 9 countries.

Since Taiwan is not a member of the ASEAN, then I must get a visa even for short stay (just 4D/3N). I went to their embassy website to see the procedures in getting a visa.

I was very happy to see this:
Notice: Online for visa-free entry into the Republic of China (Taiwan).
Effective from 3:00 pm, March 15, 2011, passport holders of the Republic of the Philippines may apply for an authorization certificate online for visa-free entry into the Republic of China (Taiwan).

These photos are from www.tripadvisor.com.

Yes! The notice gives this detail:

Passport holders of the following five (5)countries traveling to Taiwan are exempt from visa and can stay in Taiwan up to thirty (30) days provided that they have never worked in Taiwan as blue-collar workers before and are currently holding valid visas or permanent resident cards of U.S.A., Canada, Japan, U.K., EU Schengen, Australia and New Zealand.

1. Philippines(菲律賓) 2. India (印度) 3. Indonesia(印尼)
4. Thailand (泰國) 5. Vietnam(越南)

Since I have a 10-years multiple entry US visa (2010-2020), then I am qualified for online visa-free entry into Taiwan.

I have argued before that in really free societies, migration and visit to other countries should be free, meaning visa should be waived if not abolished, except for those with outstanding criminal cases, or have records of engaging in political violence in the past. For the latter group of people, then visa requirements should apply. This should be one incentive for people to abide by the laws of their own country as much as possible.

I hope that more countries in the future will relax their visa restrictions. Despite the threats of terrorism, only a very-very small portion of the world's population is engaged or be attracted to engage in terrorism, so why punish the majority who are law-abiding people through bureaucratic and costly visa application process? Sure, collections from visa application is one source of revenue for many governments. If that is their goal, then just slap a specific fee that should not be too high that will effectively act as restriction to people mobility.
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See also:
Visa-free entry and people mobility, February 23, 2006. It's about the 145 countries whose citizens can enter the Philippines visa-free.
Pilipinas Forum 10: Migration and Singapore as a Social Contract, September 17, 2011
Migration and Freedom 6: Passport and People Mobility, November 30, 2010
Migration and Freedom 7: Restrictions to OFWs , April 13, 2011
Migration and Freedom 8: Denmark's immigration policy, May 17, 2011
Migration and Freedom 9: Immigration bureaucracy, July 19, 2011
Migration and Freedom 10: Multiculturalism and the Norway massacre, July 25, 2011
Migration and Freedom 11: Two migration theories, September 03, 2011

Wednesday, October 19, 2011

Pilipinas Forum 15: Debate on Edsa 2

Enjoy this 13-pages long exchanges and debate among members of pilipinasforum yahoogroups about the "Edsa 2 People Power Revolution" that occurred in January 2001. Being the co-founder and co-moderator of PF, also editor of the PF exchanges that I submitted to www.inq7.net (that site is now gone), I really learned a lot from the almost daily exchange of ideas from many members of the list then.
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Debate on Edsa 2

February 2001

Edsa II was the successful transfer of presidential power from one section of the elite to another by the direct political action of a broad section of the population. Edsa II was by no means radical or revolutionary. Like Edsa I, Edsa II never threatened to overhaul the fundamental socio-economic hierarchies of Philippine society and never threatened to remove control of the Philippine state from the same dominant social strata.

Still Edsa II was a political moment with profound historical significance. What Edsa II evicted was a presidency supported by political dinosaurs, schooled in the comfortable cradle of martial law, accustomed to an uninformed, powerless and malleable citizenry, and given to governance which allowed a robust renaissance of the cronyism, patronage, and demagoguery. a presidency which failed to grasp the nature of its own obsolescence, and which continued to dabble in desperate conspiracies and maneuverings even as the forces of modernization were already literally closing in on it.

-- Raffy Aquino

My reservations about the world "people" and "broad section of the population" is that it is liberally construed to mean each and every Filipino (or even a majority of Filipinos). without being determined by Constitutionally sanctioned means to determine the world "people" (like referendum and general elections). I believe the danger lies in reducing representative democracy to participants in Edsa 2 and in other urban areas.

The logic behind the impeachment court is that since the Constitution will be removing a nationally-elected person out of his office, it should take a nationally-elected body to do it, and this is the reason why the Lower House cannot act as judges before the court, the Senate was the duly constituted authority to handle such cases. But the "people" went out of the streets and said that the Senate cannot do its job. How are we sure that Edsa 2 was the "sovereignty"? We thought it was, but what if it wasn't?

Institutions become weak when they fail to serve their purpose... in the crisis, their purpose was to determine the guilt of the president according to the articles of impeachment... and they were not able to execute this, ergo, institutional failure. The right to assembly is a Constitutional right, but it didn't say that we remove and replace Presidents with assemblies... so the senate compromised the process... okay, so who determines the "truth" now?

-- Poch Bermudez

As for the perception of the international community, I think, with the exception of a few, they have a positive perception with the installation of a new president. Why would representatives of different countries express their support to the administration of GMArroyo if they do not see the legitimacy of the new administration?

-- Jojo delos Reyes

They say history is written by the victors. Gloria Macapagal is in power, and I have no doubt that the best legal minds will be harnessed to give her Presidency every cloak of legitimacy possible. But here is the thing, if something were truly right is it so because of legal statutes and precedents. Is it so because of the ruling of one judge or even a hundred judges - or is something right because it is right, it is self-evident to any and the virtue of the act speaks for itself?

-- Victor Limlingan Jr.

What we have is only a partial victory, victory in a battle -- but not yet the war.

Already, some players of EDSA are acting like spoiled brats or deprived street kids grabbing for the goodies. Too much expectations on gov't give politicians and bureaucrats the reason to raise taxes, transform them into "development funds", line their pockets and just have the left-overs and crumbs trickle down to the masses -- whose leaders, in turn, cry about graft and corruption.

-- Roy Picart

Tuesday, October 18, 2011

Lifestyle Diseases 7: Drinking and Healthcare

I read these news today.

http://www.cnbc.com/id/44936941 

Toll of heavy drinking on U.S. economy rises: study

Published: Monday, 17 Oct 2011 | 5:39 PM ET
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Heavy drinking is costing the U.S. economy more than $200 billion a year, mostly in lost workplace productivity, a U.S. health agency said on Monday.
The Centers for Disease Control and Prevention (CDC) said on Monday that in 2006 the price tag for excessive drinking was an estimated $223.5 billion, nearly 21 percent higher than the $185 billion it cost in 1998, the last time a similar study was done.
Seventy two percent was due to lost productivity and the most of the cost was borne by the drinkers themselves in the form of lost income.
Health care outlays accounted for another 11 percent of the total economic cost of heavy drinking, the CDC said, followed by criminal justice expenses and motor vehicle crash costs caused by impaired drivers.
The CDC defines excessive drinking as, on average, more than one alcoholic beverage a day for women, and more than two a day for men.
But the agency said that nearly three-quarters of the costs were caused by binge drinking -- four or more drinks per occasion for by women or five or more for men....

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CDC: Add $2 per drink for US excessive drinking
October 17, 2011|Mike StobbeAP Medical Writer
The toll of excessive drinking works out to about $2 per drink, in terms of medical expenses and other costs to society, according to a new federal research.
The Centers for Disease Control and Prevention study calculated societal costs from binge and heavy drinking beyond what consumers pay at the bar or liquor store. It’s the first such federal estimate in more than a dozen years.
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http://en.wikipedia.org/wiki/Long-term_effects_of_alcohol
Long-term effects of alcohol
From Wikipedia, the free encyclopedi
The long term effects of alcohol range from possible health benefits for low levels of alcohol consumption to severe detrimental effects in cases of chronic alcohol abuse. Although a strong correlation exists between high levels of alcohol consumption and an increased risk of developing alcoholismcardiovascular diseasemalabsorptionchronic pancreatitisalcoholic liver disease, and cancer, some studies also suggest a correlation between low to moderate amounts of alcohol consumption and decreased risks of stroke, cardiovascular disease, diabetes, rheumatoid arthritis, osteoporosis, and perhaps an overall decreased mortality rate...
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Such a huge amount of losses, economic and healthwise. Drinking, especially heavy drinking, is personal choice and decision, never a social one. If the consequences, short- and long-term, of heavy drinking is to be made social and collective, like bigger government responsibility in healthcare for lifestyle-related diseases, society can go bankrupt. 
That is why governments should step back on intervening and subsidizing lifestyle-related diseases. Personal choice on heavy drinking (and heavy smoking, heavy eating, sedentary lifestyle, etc.) should be coupled with personal responsibility in healthcare finance, not social responsibility. Otherwise, society will keep subsidizing personal irresponsibility. And those in various government bureaucracies, national and international (like the UN and WHO), will further exacerbate the fiscal problem with the  huge public finance required to sustain their various bureaucracies, travels and other perks.


Governments should also not intervene unnecessarily in the drug innovation sector, like issuing compulsory licensing (CL) or price control and related schemes, on new drugs that respond to lifestyle-related diseases. Like when there are new and more powerful drugs against liver cancer, pancreatic disorder and other diseases related to heavy drinking or heavy smoking and other vices.
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See also 
Lifestyle Diseases 6: Personal Care against NCDs, October 14, 2011.