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Strategic Analysis and Research by the

CENTER FOR STRATEGY, ENTERPRISE & INTELLIGENCE
If it’s unexplained, the presumption is it’s ill-gotten. … It’s the law [to explain the $10 million] ~ President Benigno Aquino III on purported $10 million in deposits that the Ombudsman asked Chief Justice Renato Corona to explain How can anyone be made to explain something that does not exist? Why doesn’t the Ombudsman instead explain how she came up with that incredible, fantastic and mind-boggling amount? ~ Chief Justice Corona in response to critics demanding explanation

Report
Volume 2 - Number 18 • May 7-13, 2012

4 What America Wants in Asia

Playing out in ministerial dialogues last week with the Philippines and China, the United States agenda for Asia highlights continued American leadership, power projection, and more robust alliances and international architecture. Will the Chinese go along? And where does a Sino-American partnership leave the Filipinos?

NATION

12 The Widening Gap Between Haves and Have-Nots

Just before its meeting in Manila last week, the ADB called for measures to address income inequality in the region — or face mounting unrest • The richest Filipinos: The tycoons driving up the Gini coefficient • Define poverty: How the number wonks count empty stomachs and pockets • Marked for life: When social structures condemn generations to destitution

20 The 64-Year-Old Question

With the baby boom generation nearing retirement here and abroad, plus unemployment stalking our corps of young workers, will the country face pension and elderly support problems like the aging nations of the world? • The Harvard solution: Tackling the problem of greying humanity

BUSINESS

28 Mining, Part 3: Time to Think Small

Whatever form the Aquino administration's new and improved mining policy will come in, it will probably have to address one particular thorny issue for it to even dream of success. The good news is that it apparently recognizes this already: small-scale miners • One more thing: Our legal eagle reminds us that increasing the government's take from mining might not be as simple as issuing an executive order

POINT & CLICK You can access online research via the Internet by clicking phrases in blue

TECHNOLOGY

36 Enabling the Disabled

With as many as one in seven people estimated to be burdened with disabilities, the world of technology is devising gadgets to help the physically impaired to do better • Assistive gear: Pointers, readers, speakers, beamers and other high-tech helpers • Who needs help: The World Disability Report assesses challenges

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Center for Strategy, Enterprise & Intelligence provides expertise in strategy and management, enterprise development, intelligence, Internet and media. For subscriptions, research, and advisory services, please e-mail report@censeisolutions.com or call/fax +63-2-5311182. Links to online material on public websites are current as of the week prior to the publication date, but might be removed without warning. Publishers of linked content should e-mail us or contact us by fax if they do not wish their websites to be linked to our material in the future. 

For Informed, Compassionate Decisions with Mind and Heart
In the ivory tower of academic research and policy studies, it’s easy to forget that the theoretical, statistical, ethical and otherwise technical musings and deliberations that go into every report actually affect flesh-and-blood, thinking and feeling, hoping and hurting human beings. The fractional increments to the second decimal place in the Gini coefficient measuring inequality, for instance, or the widening and narrowing of bars representing the deciles of age groups in a nation’s population — these and similar constructs of social science merely distill into manipulable quantities and graphics the lives and persons of millions of individuals. Some are destitutes with unseeing eyes or unfed babies tapping car windows when the traffic light goes red, hoping to share a tiny bit in the bounty of a higher stratum which is a certain multiple of the meager income of the begging class. Others are aging retirees who are supposed to be luckier than their counterparts abroad, since the ratio of young working-age Filipinos to seniors are higher than equivalents in the West or Japan. Yet are the elderly in our country really better off amid widespread poverty and unemployment, which fails to make the youth productive? And even when the young are gainfully occupied, the breakdown of family ties may still lead to filial neglect. Lending eyes, limbs, minds and hearts to policy discourse and analytic research, therefore, is the challenge for The CenSEI Report, especially in such data-packed, theory-ridden articles like the Nation stories on inequality and the elderly. The task of constantly keeping the faces and fears of quantified communities and countries is sharpened even more at international conferences like last week’s Asian Development Bank meeting in Manila. When decision makers pack into a few days the vast data and deliberations on sweeping issues, the easy way to forge decisions is often by cutting the heart out of tough, complex choices. Yet often, only by seeing, hearing and touching the men, women and children to be uplifted, downcast, or otherwise affected by all-encompassing initiatives can one truly choose from among the difficult options what is morally upright, humanly compassionate and socially sustainable. Indeed, the look in a hungry child’s eyes or the droop of skin sagging from a coughing octogenarian’s vanishing chin could greatly simplify many a decision. Plainly, the five senses and the beating heart can lead one to say, paraphrasing a submarine expression, “Damn the coefficients and full aid ahead!” So The CenSEI Report gives both the hard numbers and the hard-up numbered, so you can make the informed, caring choice. 

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Uncle Sam’s Asian Strategy
Washington aims for continued American leadership, a strong regional architecture and alliances, and ‘effective’ China ties
By Ricardo Saludo

Secretary Hillary Clinton at Naval Academy: ‘In ensuring stability and security in the Asia Pacific and beyond, there is simply no substitute for American power‘ U.S. Naval Academy

STRATEGY POINTS
In pursuing its vision for Asia, America is balancing often conflicting priorities, requiring compromises that may ruffle advocates and allies The key questions: Will Beijing buy into Washington’s plan, and can the U.S. give China the stature a rising power demands? In big-power politics, the little ones must be ready to face disappointments and push hard for ample respect and benefits

W hen Philippine Foreign Affairs Secretary Albert del Rosario and
Defense Secretary Voltaire Gazmin met with their American counterparts Hillary Rodham Clinton and Leon Panetta in Washington last week, top of the agenda was more U.S. military assistance amid Chinese encroachments in islands and waters claimed by the Philippines. But the result may be not just more Americans jets, ships and guns for Filipino troops and increased cooperation with U.S. forces, but another big stride forward for Uncle Sam’s strategy in Asia. Secretary Clinton herself spelled out key elements of that geopolitical, security and foreign policy agenda in a seminal address at the U.S. Naval Academy in Annapolis,

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Maryland, on April 10, recorded in full by C-Span. A close reading of the speech yields major themes which have emerged over the past year or two, and is now playing out in the way the Philippine-American alliance is addressing the Scarborough Shoal standoff. Those strategic themes include: the United States’ continuing geopolitical leadership in Asia, its global military power projection, enhancing alliances and building new security ties, adjusting and strengthening of the international architecture to resolve cross-border issues and problems, and the evolving relationship with China. These thrusts play out in Washington’s separate talks with Manila and Beijing last week.

the two nations held their second Strategic Dialogue at assistant secretary level. Given tensions in Scarborough Shoal, it’s no surprise that leading the 2+2 agenda was “our bilateral military cooperation,” as Secretary Clinton told media after the dialogue. “At the heart of this strategy [of the U.S. in Asia] is our effort to deepen and broaden our alliance with our friend and treaty ally, the Philippines,” she added. “Today the United States reaffirms our commitment and obligations under the mutual defense treaty.” Last November, Secretary Clinton commemorated the 60th anniversary of the U.S.-Philippines Mutual Defense Treaty on board the warship USS Fitzgerald in Manila Bay.

Enhancing the PhilippinesU.S. alliance. The first “2+2” meeting between the foreign and defense On territorial secretaries of disputes she the Philippines reiterated the and the United longstanding States, held on U.S. position: April 30 at the “While we Secretaries Clinton and del Rosario, with defense Treaty Room in do not take chiefs Panetta and Gazmin, lead the first ‘2+2’ meeting in Washington U.S. State Department the Department sides on the of State in competing Washington sovereignty DC, was itself claims to a testimony to the new U.S. thrust in land features in the South China Sea, Asia. The unprecedented ministerial as a Pacific power we have a national dialogue raises the 56-year-old alliance to interest in freedom of navigation, the a higher level of official consultation and maintenance of peace and stability, respect collaboration. It was only in January when for international law, and the unimpeded,

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lawful commerce across our sea lanes. The United States supports a collaborative diplomatic process by all those involved for resolving the various disputes that they encounter. We oppose the threat or use of force by any party to advance its claims.” What may be significant and new, however, were her last two lines on the subject: “And we will remain in close contact with our ally, the Philippines. I look forward to continuing to work closely with the foreign secretary as we approach the Asean Regional Forum in July.” That might have been the first time a top U.S. official said that it would communicate and work closely with the Philippines on South China Sea concerns. If the media might have missed that, the security wonks in Beijing almost certainly didn’t. There’s more for the Chinese to ponder. Clinton specifically mentioned the Asean Regional Forum in the context of the South China Sea issue. At the annual ARF the Association of Southeast Asian Nations discusses regional security with major powers. As it reportedly did at last month’s Asean Summit in Phnom Penh, Beijing has long opposed taking up territorial claims in multilateral fora like the ARF, where nonclaimants can intervene. It looks like Manila and Washington have other ideas. More on this later. Building Beijing ties too. If China had any reservations about the U.S.Philippines discussions, it had the chance to raise them directly with Secretary Clinton days later, though the South China Sea was not on the agenda of the U.S.-China Strategic and Economic Dialogue (S&ED) on May 3-4 in Beijing. At the fourth round of annual discussions conducted since 2009, Clinton and Treasury Secretary Timothy Geithner met with Chinese Vice Premier Wang Qishan and State Councilor Dai Bingo on a wide range of global and bilateral issues, from North Korea missiles and Myanmar reforms to Syria repression, Iran nukes and SudanSouth Sudan troubles. Also tackled were climate change, cyber-security, student exchanges, piracy, trade concerns, and human rights. “The elephant dogging” the meeting, as one journalist put it in the opening question during Clinton and Geithner’s May 4 press conference, was the fate of Chen Guangcheng. The blind lawyer-activist and

As the U.S. negotiates blind activist Chen Guangcheng’s study trip to the U.S. (left), Chinese Defense Minister Liang Guanglie, who hosted then U.S. Defense Secretary Robert Gates in 2011, visits Washington this week: Delicate balancing act NTDTV & CCTV

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2007 Ramon Magsaysay Award recipient, Washington for the first visit to America by who had exposed coerced abortion and a Chinese defense chief since 2003. Over sterilization under China’s one-child policy, the past year, U.S.-China security dialogue had sought asylum in the U.S. Embassy has revived after Beijing suspended it in Beijing after escaping house arrest. over American arms sales to Taiwan in Since ending a four-year prison term in 2009. The two nations’ armed forces chiefs September 2010, Chen had exchanged visits, while It's essential to been detained at his home then U.S. Defense Secretary know the complex Robert Gates visited in the town of Dongshigu, Shandong Province, in Beijing in January 2011. and sometimes northeast China. Now, Liang meets Gates’s conflicting successor Panetta in DC. elements of Secretary Clinton did not say America's Asia whether Chen was explicitly America’s agenda, agenda, as discussed at the S&ED, but leadership and power. told media, “our ambassador carefully outlined The Chen episode and has spoken with him again, the South China Sea in Secretary our Embassy staff and our tensions amid top-level Clinton's doctor had a chance to meet exchanges with Beijing are Annapolis address just the latest of constant with him, and he confirms that he and his family now complications in the want to go to the United States so he can delicate balancing act facing the U.S. as it pursue his studies. In that regard, we are pursues its foreign policy agenda in Asia. also encouraged by the official statement On the one hand, it advances longstanding issued today by the Chinese Government priorities such as human rights and the confirming that he can apply to travel security concerns of its allies. But to do abroad for this purpose.” so, it must maintain good, productive relations with China, which often demands During Clinton’s visit, the activist had compromises on those priorities. left the embassy for a Beijing hospital. As reported by New York-based New Tang Hence, it’s essential to know the complex Dynasty Television, Chen later asked and sometimes conflicting elements of to join her flight out of China, fearing America’s Asia agenda, carefully outlined for himself and his family. He said U.S. in Secretary Clinton’s Annapolis address. officials told him that his family would be It was probably deliberate that she picked sent back to Dongshigu, where they had the U.S. Naval Academy to expound on a previously suffered violence. The embassy Pacific foreign affairs and security strategy spokesperson denied the allegation. in which the Seventh Fleet based in Honolulu would play a key role. On May 6 the Wall Street Journal reported that U.S. and Chinese officials For Clinton, two realities anchor the world were discussing Chen’s departure, even view shaping U.S. policy: “First, a just, as Defense Minister General Liang open, and sustainable international order is Guanglie arrived in San Diego en route to still required to promote global peace and

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prosperity. And second, while the geometry of global power may have changed, American leadership is as essential as ever.” And not just leadership, as she stressed: “When it comes to ensuring stability and security in the Asia Pacific and beyond, there is simply no substitute for American power. Only the United States has the global reach, the resources and the resolve to deter aggression, rally coalitions, and project stability into diverse and dynamic areas of danger, threat, and opportunity.” Secretary Clinton’s perspective echoes not just the thrust but the title of the United States’ latest strategic guidance, “Sustaining U.S. Global Leadership: Priorities for 21st Century Defense,” promulgated by the Pentagon in January. If the title wasn’t clear enough, read the last line of the preface from no less than President Barack Obama: “In a changing world that demands our leadership, the United States of America will remain the greatest force for freedom and security the world has ever known.” The paper also put forth America’s new priority region: “U.S. economic and security interests are inextricably linked to developments in the arc extending from the Western Pacific and East Asia into the Indian Ocean region and South Asia, creating a mix of evolving challenges and opportunities. Accordingly, while the U.S. military will continue to contribute to security globally, we will of necessity rebalance toward the Asia-Pacific region” (italics by the Pentagon). Indeed, the policy guidance added that that even with needed budget cuts, U.S. Pacific forces will be maintained at mission-capable levels. Global and regional architectures. Secretary Clinton also highlighted a second tenet of U.S. world as well as regional policy: the international systems put in place after World War II which maintain global order and address planet- and region-wide concerns, issues and disputes. These so-called “architectures” include, among others, the United Nations, the Bretton Woods international monetary system, and the network of alliances led by the North Atlantic Treaty Organization (NATO) in Europe, and mutual defense treaties with Japan, South Korea, Taiwan, the Philippines, and Thailand.

This push for there should be no doubt community States or around the wor building was Armed Forces the best-tr already in U.S. equipped fighting force in changing world that dem policy since its the United States of Ame 1890 formation greatest force for freedom of what is today world has ever known. the Organization of American States, notes James Gannon, executive director of the Japan Center for International Exchange, in his article, “Engaging in Asia: The Evolving

The fiscal choices we fac

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U.S. Approach to Regional Community Building.” But the urge to merge went into hiatus in the 1990s, as Washington grew wary of groupings that could clip its sovereign prerogatives or mobilize nations against it. Now it’s back. Clinton explained: “our aim [in Asia] is to build mature and effective institutions that can mobilize common action and settle disputes peacefully, to work toward rules and norms that help manage relations between peoples, markets, and nations, and establish security arrangements that provide stability and build trust.”

supports freedom of navigation, the peaceful resolution of disputes, and the long-mooted Code of Conduct in the South China Sea. Last month Philippine President Benigno Aquino III seemed to advance America’s line by getting Asean not only discussing the Code, but also announcing that it would formulate a common draft before resuming talks with China, which had even been hosting meetings. So Clinton’s “2+2” remark about working with Manila’s del Rosario on the South China Sea issue “as we approach the Asean Regional Forum in July” cannot but ring ominous bells in Beijing, not to mention some Southeast Asian capitals. At Annapolis, the Secretary of State acknowledged that America’s push for regional arrangements may not go down well in certain countries. “I am well aware that some in Asia fear that a robust American presence and our talk of architecture and institutions and norms is really code for protecting Western prerogatives and denying rising powers their fair share of influence,” she conceded. “The argument goes that we’re trying to draw them into a rigged system that favors us. Well, that is just not the case.” The China nexus. Whether China and other emerging powers will eventually warm to America’s architecture plan, would determine both the region’s security and stability, as well as the resolution of disputes like those in the South China Sea. Clinton recalled that the last global war was triggered by the clash between the worldgirding British Empire and emerging power Germany. Washington hopes to avoid a similar outcome in its encounter with rising China.

e are difficult ones, but t -- here in the United ld -- we will keep our ained, best-led, bestn history. And in a ands our leadership, rica will remain the m and security that the

This is where the Asean Regional Forum comes in. Washington and Beijing have tussled in the ARF sidelines, with China balking at moves to “internationalize” territorial disputes, and Clinton herself declaring at the Forum that the U.S.

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Replying to a reporter of the Chinese state news agency Xinhua, the Secretary explained at the S&ED press conference: “... together the United States and China are trying to do something that is historically unprecedented, to write a new answer to the age-old question of what happens when an established power and a rising power meet. ... what we are trying to do is to build a resilient relationship that allows both of our nations to thrive without unhealthy competition, rivalry, or conflict while meeting our national, regional, and global responsibilities.” That kind of partnership must needs demand give and take on both sides, as spelled out in the overall spirit of “mutual respect and mutual benefit” governing Sino-American ties. “A thriving China is good for America and a thriving America is good for China, so long as we both thrive in a way that contributes to the regional and global good,” Clinton stressed in her Naval Academy speech. “Let me go one step

Uncle Sam's asian strategy

further. We will only succeed in building a peaceful, prosperous Asia Pacific if we succeed in building an effective U.S.China relationship.” The deeper complexities of that relationship and the evolving Asian geopolitical landscape shall be analyzed in a future World story. As for the current standoff in Scarborough Shoal, tracked by an interactive ABS-CBN infographic (see map), one lesson for the Philippines has to be that its spat with China may not be as crucial an issue for America to compromise its allimportant working relationship with China, which is indispensable in addressing much bigger problems like North Korean and Iran nukes, global warming, and world economic and financial stability. In the grand scheme of big-power politics, the little ones must be ready to grin and bear some disappointments, and to constantly push hard for mutual respect and benefits.

ABS-CBN interactive graphic Scarborough Shoal standoff

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NEWS ON THE NET
of which are the group in the no final date of departure for Chen, Documents Arabian Peninsula and the group and it is still unclear if he will be found hidden in allowed to return. in North Africa. pornographic video China strikes deal for Myanmar's Suu Kyi reveal al Qaeda's takes oath of office Chen Guangcheng secret plans to study abroad, U.S. Opposition leader Aung San Suu Last year, a digital storage officials say Kyi was sworn in last Wednesday device and memory cards were found by interrogators hidden in the belongings of 22-year-old Austrian Maqsood Lodin, who had then recently returned from a trip to Pakistan. Inside the devices, a pornographic video named "Kick Ass" was found. German investigators cracked a password and uncovered over 100 encoded documents inside the video. Last Friday, China announced that blind activist Chen Guangcheng could seek permission to study abroad. Chinese officials are said to have promised to process the paperwork so Chen can leave for the United States. Chen, a 2007 Magsaysay laureate, had escaped from house arrest and was taken in by the U.S. embassy in China two weeks ago. Initially, Chen had wanted to stay in China, instead of claiming asylum or going into exile. However, after leaving U.S. protection and experiencing government abuse upon being taken to Beijing’s Chaoyang hospital – after Chinese authorities had promised both Chen and U.S. diplomats regular and easy access to the one-child policy protestor – he changed his mind. Chen supporters and visitors at the hospital were turned away; some claiming to have been severely beaten by the police. China’s statecontrolled news publications also printed negative write ups about Chen and U.S. Ambassador Gary Locke, who aided Chen in when he sought U.S. protection. In a news conference Friday, Foreign Ministry official in charge of U.S. affairs and Vice Foreign Minister Cui Tiankai was reluctant to discuss the issue. China gave

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World

Included were al Qaeda documents concerning the terror group's plots and potential future operations, and terrorist training manuals in German, English and Arabic. One of the plots described was very similar to the gun attacks by Pakistani militants that plagued the Indian city of Mumbai in November 2008. News of these documents surfaced at a timely junction; a selection of de-classified personal letters confiscated in the U.S. raid that killed Bin Laden one year ago was also recently released. Reports have said that Al-Qaeda is suffering greatly from a badly wounded core leadership, particularly after the death of its founder, Osama bin Laden. However, franchises split from the original Al-Qaeda continue to operate; the most organized

as a lawmaker, along with 33 other newly elected members of the National League for Democracy. Believing the constitution undemocratic, the National League for Democracy had earlier refused to accept the oath of office because of its wording – which called for protection of the country's constitution. Though the party demanded that the government amend the wording, there was no official positive response. Last Monday, in a show of pragmatism, the Nobel laureate and the rest of her party backed down and agreed to take the oath. U.N. Secretary-General Ban Ki-moon praised Suu Kyi's political compromise. "Real leaders demonstrate flexibility for the greater cause," he said after meeting with her during a recent trip to Myanmar. The era of authoritarian military rule in Myanmar is winding down, after decades of power. In the past 12 months, Thein Sein's civilian government has pardoned hundreds of political prisoners, secured a rebel cease-fire and remained open to negotiations with other rebel groups. It has even been said that Thein Sein may step aside after the 2015 Myanmar elections.

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Addressing Income IN Inequality Before It Brings Us All Down
What to do when the ranks of the poor are increasing faster than those of the rich
By Joanne Angela B. Marzan

Forbes magazine’s 2012 list of the wealthiest people in the world, six Filipinos are on the list of the world’s billionaires: Henry Sy, Sr., Lucio Tan, Andrew Tan, Enrique Razon Jr., Eduardo Cojuangco Jr., and Roberto Ongpin, with Cojuangco and Ongpin making the list for the first time. Note that all billionaires who have been included in last year’s wealthiest list have shown a remarkable increase in net worth as of the 1st quarter of 2012. In fact, two of the Philippine billionaires, Tan and Razon, registered 52% and 73% increases, respectively, in their net worth from the year before. Unfortunately, while these richest Filipinos see their net worth increasing by at least hundreds of thousands, if not millions, of dollars a day, many more Filipinos find themselves trying to get by on less than $2 a day. In fact, according to 2009 World Bank data based on 2005 international prices, 41.5% of the Philippine population are living on less than $2 a day, with 18.4% living on less than $1.25 a day. Income inequality widening in Developing Asia. The huge discrepancy between the income of the haves and the have nots in the country is not only seen in the Philippines but is prevalent in Developing Asia. According to the latest data coming from the Asian Development Bank (ADB), the gap between the rich and the poor is widening in the region.

STRATEGY POINTS
While six Filipinos are on Forbes’ 2012 list of the world’s wealthiest people, over 40% of the country has to get by on $2 or less a day Widening income disparity is a problem throughout the region the Asian Development Bank calls “developing Asia,” including the countries that are contributing the most to the region’s growth: China, India, and Indonesia The Philippines has the highest income inequality in Southeast Asia, according to one local think tank

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The Asian Development Outlook 2012 said that while the Asian region has experienced remarkable growth in the last two decades, it has also experienced widening inequality. “This performance in growth and poverty reduction has, however, been accompanied by rising inequality in many countries. Of the 28 countries that have comparative data between the 1990s and 2000s, 11—accounting for about 82% of developing Asia’s population in 2010— experienced rising inequality of per capita expenditure or income, as measured by the Gini coefficient.” Gini coefficient is defined by the National Statistics Office (NSO) as the “measure of income inequality within a population, which ranges from 0 to 1, with 0 indicating perfect income equality among families, and 1 indicating absolute income equality.” In addition, the ADB report said that “inequality widened in 11 of the 25 economies with comparable data, including the three most populous countries and drivers of the region’s rapid growth—the PRC [People’s Republic of China], India, and Indonesia.” In PRC, the Gini coefficient increased by 11 basis points, from .32 to .43; in India, from .33 to .37, and, in Indonesia, from .29 to .39. According to ADB Chief Economist Changyong Rhee, “240 million people could have been lifted out of poverty” had the inequality levels remained the same in Asia over the last two decades. “That is about 6.5% of the Asian population, which is not a small number,” Rhee said in the ADB video,

The richest men in the Philippines
The richest man in the Philippines, according to Forbes, is Henry Sy, founder of the SM Group, with an estimated net worth of $8 billion. As of March 2012, his net worth saw a 38% increase from last year’s $5.8 billion, making Sy the 116th richest man on the planet. Tobacco king Lucio Tan is a distant second, with an estimated net worth of $3.5 billion, up by 52% from his 2011 net worth of about $2.3 billion. This makes Tan the 314th billionaire in the world. With the recent sale of Tan’s 49% stake in Philippine Airlines to San Miguel Corporation, Tan’s fortune increased by $500 million. Third on the list is real-estate and fast-food mogul Andrew Tan, with around $2.1 billion in net worth. Ranked 601st richest man in the world, Tan is on Forbes’ list a second straight year. In fourth place is port operator Enrique Razon Jr. of International Container Terminal Services, Inc. (ICTSI) who, with an estimate net worth of $1.9 billion, is the youngest billionaire in the country. Razon increased his fortune in 2012 by 73% Globally, Razon is the 683rd wealthiest man. San Miguel Corp. chairman Eduardo Cojuangco Jr. is the latest addition to the billionaire’s club, with $1.3 billion. He is debuting on the Forbes list at number 960. Roberto Ongpin is the latest Filipino to have made the cut, at number 1,153, with an estimated net worth of $1 billion. According to Forbes, Ongpin has “investments in property, gaming, mining and telecommunications” and heads the investment company that has a “controlling interest” in San Miguel Corp.

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Confronting Asia’s Rising Inequality, posted on the ADB website. Based on the NSO table below, the country’s Gini coefficient declined, however minimally, from 0.4580 in 2006 to 0.4484 in 2009. Region VIII (Eastern Visayas), on the other hand, registered the highest Gini coefficient, with 0.4841, followed by Region IX (Zamboanga Peninsula) with .4738, and Region X (Northern Mindanao) at .4737.

In this video posted on the Asian Development Bank website, ADB Chief Economist Changyong Rhee talks about rising income inequality in Asia

Among all regions, the Autonomous Region for Muslim Mindanao (ARMM) registered the lowest Gini coefficient of 0.2948. A July Manila Bulletin report indicated that as of 2009, ARMM was the second-poorest region in the country, next to Caraga.

To illustrate how far the income of the bottom 10% income group is from that of the top 10%, the National Statistics Coordinating Board (NSCB) Sexy Statistics Feb. 29 blog post showed that the income of

GINI COEFFICIENT RATIO BY REGION, 2006 AND 2009
Philippines National Capital Region

Region

Cordillera Administrative Region I - Ilocos II - Cagayan Valley III - Cagayan Luzon IVA - CALABARZON IVB - MIMAROPA V - Bicol VI - Western Visayas VII - Central Visayas VIII - Eastern Visayas IX - Zamboanga Peninsula X - Northern Mindanao XI - Davao XII - SOCCSKSARGEN XIII - Caraga Atonomous Region in Muslim Mindanao

0.4484 0.3953 0.4212 0.4086 0.4425 0.3727 0.4063 0.4004 0.4164 0.4197 0.4601 0.4841 0.4738 0.4737 0.4275 0.4425 0.4595 0.2948

2009

0.4580 0.3988 0.4418 0.3953 0.4216 0.3994 0.4082 0.4106 0.4428 0.4326 0.4639 0.4828 0.5054 0.4806 0.4225 0.4006 0.4452 0.3113

2008

Source: Related Table, National Statistics Office Press Release 2011-07, “Families in the bottom 30% income group earned 62 thousand pesos in 2009 (Final Results from the 2009 Family Income and Expenditure Survey),” Feb. 4, 2011

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What the numbers say about who and where the poor are
Based on the 2009 Poverty Statistics by the National Statistics Coordination Board (NSCB), there has been a steady increase in the number of poor families in the country. From 3.2 million families in 2003 to 3.6 million families in 2006, the number of poor families in 2009 was already at 3.8 million. In terms of population, NSCB data revealed that there was a 4% increase in the number of poor Filipinos in 2009, from 22.17 million in 2006 to 23.14 million in 2009.

ANNUAL PER CAPITA THRESHOLDS, POVERTY INCIDENCE AND MAGNITUDE OF POOR
Statistics Annual Per Capita Poverty Threshold (PhP) Poverty Incidence (%) Families Population Magnitude of poor (in million) Families Population Subsistence Incidence (%) Families Population Magnitude of subsistence poor (in million) Families Population 2003 10,976 Estimate 2006 13,348 2009 16,841 Inc/Dec 2003 to 2006 to 2006 2009 21.6 26.2

Coefficient of Variation 2003 2006 2009

20.0 24.9

21.1 26.4

20.9 26.5

1.1 1.4

(0.2) 0.1

2.3 2.1

2.3 2.1

2.1 1.9

3.29 19.8 8.2 11.1

3.67 22.17 8.7 11.7

3.86 23.14 7.9 10.8

11.5 12.0 0.4 0.6

5.0 4.4 (0.8) (0.9)

2.3 2.1 3.4 3.2

2.3 2.1 3.3 3.2

2.1 1.9 3.2 3.1

1.36 8.8

1.51 9.85

1.45 9.44

11.3 11.9

(3.8) (4.2)

3.4 3.2

3.3 3.2

3.2 3.1

Source: “One Family Per 100 Was Lifted Out of Food Poverty in 2009,” National Statistical Coordination Board press release, Feb. 8, 2011

But how exactly is poverty measured? The National Statistics Office (NSO), in its 2009 Income and Expenditure Survey, considered the bottom 30% family income group as poor. The survey showed (see table below) that the family income of the bottom 30% income group in the country had an average yearly income in 2009 of ₧62,000 (a 26% increase from 2006 data of only ₧49,000) or a monthly income of about ₧5,200 only. Alarming, though, is that according to the same survey data, while the bottom 30% income group showed a 26% increase in income, the average annual family expenditure also increased by 25%, or by ₧64,000, which resulted in no savings and accumulation of debt.

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AVERAGE INCOME, EXPENDITURE AND SAVINGS OF FAMILIES AT CURRENT PRICES BY INCOME DECILE: 2006 AND 2009
Income Decile/ Income Group 2009 (In thouand pesos) Income Expenditure Savings 31 (3) (2) (*) 3 6 11 18 28 53 193 (2) 44 2006 (In thousand pesos) Income Expenditure Savings 173 32 51 65 81 100 124 156 205 292 622 49 226 147 35 52 66 79 95 116 143 181 244 460 51 188 26 (3) (2) (*) 2 5 8 13 24 47 162 (2) 38

Philippines 206 176 First Decile 41 43 Second Decile 64 66 Third Decile 81 81 Fourth Decile 100 97 Fifth Decile 122 116 Sixth Decile 150 139 Seventh Decile 189 171 Eighth Decile 244 216 Ninth Decile 342 288 Tenth Decile 728 535 Bottom 30% 62 64 Upper 70% 268 224 Note: * less than P500 Details may not add up ro total due to rounding

Source: Related Table, “Families in the bottom 30 percent income group earned 62 thousand pesos in 2009,” National Statistical Coordination Board press release, Feb. 4, 2011

On the other hand, if we study the average annual family income of the upper 70%, it would appear that the increase in income is only 18%, from 226,000 in 2006 to 268,000 in 2009. However, the increase in annual family expenditure from 188,000 to 224,000 is only 19% resulting to a 15% increase in savings, from 38,000 in 2006 to 44,000 three years later. Additionally, if we compare the 2006 annual family income of the bottom 10% income group (first decile) to the top 10% (tenth decile), the outcome would again show that while the bottom 10% registered a higher increase in family income of 28% as compared to only 17% for the top 10% income group, the expenses of the bottom 10% is much bigger (25%) than the upper 10% income group (16%), which has greatly affected savings. the richest 10% in the country was 18 times that of the poorest 10% in 2009 (see chart right). Based on the above figures, the Autonomous Region for Muslim Mindanao (ARMM), Region III, and the National Capital Region (NCR) have the lowest income disparities in the country, with the incomes of the top 10% in each region being closer to those in the bottom 10% than is found elsewhere. In ARMM, the combined income of the top 10% is only 6.5 times that of the bottom 10%, while in Region III, the figure is 11.4 times more, and in NCR, the figure is 12 times. This data gibes with NSO data on regional Gini coefficients, which identified the ARMM region as having the lowest Gini coefficient. The minimal gap between rich and poor in this region may be due to the fact that ARMM is one of the poorest regions in the

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country, so poor that the poverty is spread more or less equally. Philippine Gini highest in Southeast Asia. The slight improvement in the country’s Gini coefficient aside, advisory and research consultancy group Stratbase Research Institute says that the country’s Gini coefficient of 44 is the highest in Southeast Asia in 2010. “Relatively, the Philippines had the highest Gini coefficient among these countries, which means greater rate of inequality compared to other Southeast Asian countries,” Stratbase Research Institute president, Professor Victor Andres C. Manhit said in a July Business Mirror article. Next to the Philippines, Thailand has the second highest Gini coefficient with 42.5, followed by Indonesia at 39.4; Malaysia at 37.9; and Vietnam, 37.8.

Stratbase warned that income inequality could result in the “polarization of society and the creation of social tensions that eventually undermine the process of growth and development.” National Economic Development Authority (NEDA) Director General Cayetano W. Paderanga Jr. explained in a March Business Mirror article that the reason for the income inequality in the country is “many of the employed are working in the informal sector, where the income levels are really quite low.” Paderanga believes that creating more work in the formal sector will help reduce the income inequality in the country. Drivers of inequality. During the recently concluded 45th Annual Board of Governor’s Meeting of the ADB held in Manila, ADB President Haruhiko Kuroda talked about rising

RATIO OF TOP 10% INCOME TO BOTTOM 10% INCOME, BY REGION, 2009
25.00 20.3 19.8 20.7 19.7 16.3 13.6 11.4 14.5 15.9 15.8 12.0 20.2 17.9

20.00

17.9

15.00

14.1

13.2

13.6

10.00

PHILIPPINES

Region IV-A

Region IV-B

Region VIII

Region VII

Region III

Region VI

Region V

Region IX

Region I

ARMM

5.00

Region II

Region X

Region XI

Region XII

6.5

NCR

CAR

0

Source: “Where are the Rich?”, Feb. 29 blog post in “Sexy Statistics,” National Statistical Coordination Board

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inequality in Asia, and the factors that contribute to its prevalence. “[W]hile the region has made remarkable progress in reducing poverty, the benefits of growth have yet to reach several hundreds of millions of Asians who continue to struggle on less than $1.25 a day. The very drivers of Asia’s economic success – new technology, globalization and market-oriented reforms – have also served to create and increase disparities within and among Asian economies,” said ADB President Kuroda in his Opening Statement. The aforementioned 2012 Asian Development Outlook discussed lengthily these key drivers of inequality. in human capital, investment in infrastructure to reduce unequal access to services and opportunities, and measures to make growth more employment friendly.” Meanwhile, in its overview of its Philippine section, the World Bank did note that “inclusive growth that benefits the poor has been a continuing challenge for the Philippines,” elaborating that, “A key challenge has been to deploy these financial and human resources more effectively in the country, especially in rural areas, by improving investment climate and creating job opportunities.” Having said that, the World Bank nonetheless complimented the Aquino administration’s efforts to address inclusive growth. “The Government has now prioritized an improved business climate, infrastructure development, and

“Technological progress, globalization, and market-oriented reform have been the key drivers of developing Asia’s rapid growth in the last 2 decades—but they The Philippine economy's also had huge distributional structural weaknesses consequences. Together, they have favored skilled rather than According to a report on the Philippines as included unskilled labor, capital rather in Part 3: Economic Trends and Prospects in than labor, and urban and Developing Asia of the Asian Development Outlook coastal areas rather than rural 2012, “structural weaknesses have frustrated the and inland regions (p.62),” the achievement of inclusive growth” in the country. ADB report said. These “structural weaknesses” identified by ADB are: Investments in education, infrastructure needed. Kuroda offers a solution: “While these economic trends cannot and should not be reversed, it is critical that they be counterbalanced by policies that will make growth in the region more inclusive. Such policies would include investment in education to reduce inequality 1. Weak link between growth and development ADB mentioned that the Philippines continued to have a high unemployment and underemployment rates. In fact, according to the report, “about 9.5 million Filipinos, or nearly 10% of the population, work abroad because of a lack of good jobs at home.” In addition, poverty incidence and income inequality also remained high. 2. Rising growth and declining investments The ADB report said the while the country experienced

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public-private partnerships. Investment in human capital and social protection is another critical pillar addressed by the Government to improve the livelihoods of the poor; budget allocations have been increased for health, education, and conditional cash transfer programs.” Addressing inclusive growth. In a March 2 Philippine Star article, Deputy Presidential Spokeswoman Abigail Valte said that the government has implemented programs to reduce the gap between the rich and the poor in the country. Among the programs she mentioned are Conditional Cash Transfer (CCT) and the Comprehensive Integrated Delivery of Social Service (KALAHI-CIDSS) of the Department of Social Welfare and Development (DSWD). Meanwhile, Nazmul Chaudhury, the World Bank's point person for Pantawid Pamilya

(CCT) commended the program for being “very well designed.” "In terms of the sophistication of an integrated program, the rigor of the poverty targeting database and the potential for this as a larger social safety net, there's nothing like that in the region," Chaudhury told Reuters in a May 1 report. So, while we can take some pride in the inclusion of more and more Filipinos among the world’s billionaires, and celebrate promising economic indicators, we cannot deny the distinct possibility that the condition of the impoverished could still take a turn for the worse. The challenge then for the government is to invest in human capital and physical infrastructure so that more employment opportunities will be created for everyone, and growth and development can become more inclusive. disrupted electronics production chains, as happened in 2011. Philippine merchandise exports fell in the second half of 2011, while exports generally increased in other Southeast Asian countries,” explained the ADB report. The root cause of all of these “structural weaknesses,” according to ADB, is the stagnation of industry. “The main growth engine of high-performing Asian economies has been dynamic structural transformation: output shifts from low-productivity goods into high- productivity ones, particularly manufactures; labor moves from agriculture to industry; and exports become more diversified,” said the report. Once these structural transformations are in place, growth will be sustainable and better-paying jobs to reduce poverty are generated.

growth, “fixed investment as a share of GDP” suffered a decline in 2011 to only 19.3% from about 20% in 2000. 3. Limited diversification of exports According to the ADB report, 60% of total exports in 2010 come from the electronics sector, specifically semiconductors, which comprise about 77% of total electronics exports.

“This structure makes the economy vulnerable to downturns in global electronics demand and to

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Will You Still Need Us, Will You Still Feed Us, When We’re 64?
STRATEGY POINTS
The number of people aged 60 and over is growing faster than any other age group, here in the Philippines and in the rest of the world. With the number of senior citizens predicted to overtake that of children 14 and under by 2030, the social and economic implications need to be recognized and addressed as soon as possible

A hitherto unrecognized dimension of the Philippines’ population dynamics
By Victoria Fritz

T

he Philippine population stands at 92.34 million as of the last census conducted by the National Statistics Office in 2010. It grew at an annual average rate of 1.90% from 2000-2010.

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Per post-census estimates by the National Statistics Office (NSO), while the country’s population will continue to grow rapidly, the fastest-growing segment will be the 60-years-and-older age group, as shown in the table below (in thousands): This trend, which holds in almost every other country around the world, is a direct result of longer life expectancy and declining fertility rates. More people are living longer, and that can be seen as the success of public health policies. But it also poses many challenges to society, in adapting to this trend and ensuring healthy and active lives for most of these senior citizens. In the Philippines, an official of the World Health Organization-Western Pacific Region noted recently that the Philippine health care system must be ready for the growing number of senior citizens in the country, as reported in Manila Bulletin on April 19. Dr. John Julian Go, WHO National Officer for non-communicable diseases, said in the interview that as older people increase in number, so will the number of chronic illnesses, such as diabetes and stroke, along

with physical and mental disabilities such as hearing and dementia, etc.. As of now, there are six million Filipinos aged 60 and above, comprising 6.23% of the total population. The approach in addressing this situation should not be limited to treatment, but includes prevention as well. According to the report, WHO projects that in the Western Pacific Region, people 65 years old and over will outnumber children under the age of five in the next five years. By 2050, the older adults will outnumber children under 14, with this rate of change faster in among low to middleincome countries. This demographic shift took more than a century to take place in Europe, but might take less than 25 years in Brazil, China and Thailand, Dr. Go added. That is all the more reason to see the task of addressing this as imperative. Ratio of total dependents decreasing, old-age dependents ratio increasing. Per NSO estimates, while the ratio of total dependents (under 14 years and over 65) to those of working age (15-64 years) is actually declining as a result of falling birthrates, the composition of those

POPULATION ESTIMATES FOR 2020, 2025, AND 2030
Projected population (Th)1 0 - 4 years old 0 - 14 years old 15 - 59 years old 60 years old and over Female 15-49 years old 2020 11,546.1 33,834.5 68,208.2 9,741.9 29,100.7 2025 11,512.7 34,383.2 73,919.3 11,922.0 31,335.4 2030 11,374.3 34,386.7 79,395.4 14,327.9 33,255.6

Source: “The Philippines in Figures 2012,” National Statistics Office, p. 25

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dependents is shifting, as the population of elderly increases and that of children under 14 decreases. This can be seen in the age distribution table by percentage, and the subsequent dependency ratio table. According to Nimfa B. Ogena of the University of the Philippines Population Institute, in her June 2006 study “The Low and Slow Ageing in the Philippines:

• a decline in the total dependency ratio, from 69 in 2000 to 49 by 2040 Impact on the family. From there, Ogena asks whether older Filipinos will still be healthy and able to enjoy life as they age. Ogena cites WHO figures of Healthy Life Expectancy or HALE, stating that Filipinos males 60 years old or older will have about 10.6 more years of good health,

AGE DISTRIBUTION AND DEPENDENCY RATIOS, 1995, 2000, 2007 Age distribution (%) Children (0 - 14 years) Working age (15 - 64 years) Elderly (65 years and over) Dependency ratio Total Youth Old 1995 38.4 58.1 3.5 2000 37 59.2 3.8 2007 35.5 60.3 4.1

72.2 66.1 6.1

69 62.6 6.5

66 59 7

Source: “The Philippines in Figures 2012,” National Statistics Office, p. 24

Auspicious or Challenging?”: “While coping with a rapidly increasing population … the Philippines has to face yet another demographic issue: a predictably growing number of older persons.” The table of projected young- and oldage dependency ratios below shows three things: • a growth in the old-age dependency ratio, from 6 in 2000 to 14 by 2040 • a decline in the young-age dependency ratio, from 63 in 2000 to 35 by 2040

while females will have 12.1 more years, based on 2002 figures. She also cites WHO projections that the number of people over 60 requiring daily care will triple by 2050 from 18.2% in 2000 to 42.2% in 2050. According to Ogena, these projections have a direct impact on the family, which is still the major provider of care in the Philippines. With the spiraling cost of health care, she proposes that government provide a form of assistance to families with elderly members, to be included in the program for senior citizens. With the

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concurrent trend of working-age people becoming OFWs, surrogate caregivers should be given guidance and support, and trained in skills to manage often complex and long-term care. She also expresses a concern that intercultural marriages -- easier to attain with the proliferation of the Internet and cellular phone communication even in

in spousal separation, overseas work migration, and Western influences, among others. Nevertheless, Filipino children remain the caretakers and providers of support for their aging parents, and filial support for parents or elderly relatives remains strong. Most elderly Filipinos still live with their children, spouse or other relative. Only 5% were living alone, majority of whom were females.

PROJECTED YOUNG- AND OLD-AGE DEPENDENCY RATIOS, PHILIPPINES, 2000-2040
80 70 60 50 40 30 20 10 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 OLD YOUNG

Source: “The Low and Slow Ageing in the Philippines: Auspicious or Challenging?”, Nimfa B. Ogena, University of the Philippines Population Institute (UPPI), 30 June 2006, p. 9.

rural areas, along with workers moving abroad -- could also affect the mode of elderly care in the Philippines, with differences in cultural conventions as they apply to the care and support of older members. In the section summary, the study notes that the family is still the main support system for the elderly in the country. However, the traditional support mechanisms are weakening due to declining family size, intercultural marriages, increasing number of cases

In conclusion, Ogena states that though the Philippines population is youthful at present, the 60-years-and over segment will increase at a faster rate than the rest of the population. Even if the country is just at the onset of an aging population, the situation needs to be recognized and addressed now. Policies addressing the older population should be integrated with macro development goals. There is need for a community support system since families do not automatically know or have the means to care properly for the elderly, especially in cases of disability. Local

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government units whose population is composed of at least 10% elderly may establish community-based health and social services plus training and support for caretakers who work at homes. The senior citizens could initiate these programs in their own communities.

Impact on the economy. An aging population has obvious economic impact as well. In a 2009 paper by Jayant Menon and Anna Melendez-Nakamura entitled “Aging in Asia: Trends, Impacts and Responses,” part of the Asian Development Bank’s working paper series on regional economic integration, the

Addressing the problems, maximizing the opportunities
In “Global Population Ageing: Peril or Promise?”, a January 2012 working paper published by the Harvard Initiative on Global Health, prepared for the World Economic Forum’s Program on the Global Demography of Aging, the authors challenge the assumption that the elderly as a group are an automatic burden to society. They see older people as a valuable and productive economic resource that should not be stifled by outmoded public policies such as mandatory retirement or other disincentives to work beyond a certain age. There are huge opportunities in this area because older people who live healthy lives can continue to be productive longer than in the past. Life expectancy has increased so quickly that societies are still stuck in life courses designed for lives half as long. Two hundred years ago, there was no such stage called “adolescence.” At present, there are no further groupings accorded the senior citizens as well. All are grouped in the 60-years-and-over segment. There is a growing body of literature focusing on the unique strengths of older adults. The elderly are commonly associated with slowed cognitive processing, loss of memory and difficulty concentrating. Barring dementia, however, knowledge can progress. Practice continues to hone expertise, among such professionals as musicians, chess players or scientists, who often reach their peak when they are older. Frailty afflicts the very old, much more than the young old. Forward-thinking societies should therefore plan for older persons, who are heterogenous, making programs for those who need it while tapping the resources of those who can contribute. Without doubt, the category of “old age” will be further subdivided into multiple stages, just as adolescence was delineated as a transition into adulthood. The paper further posits that media’s negative portrayal of aging has contributed to a slow and inadequate response to the challenges and a lack of understanding of the opportunities. There are concerns that steeply aging countries will experience slower economic growth or even shrinkage. However, the Harvard paper suggests that such worries are overblown. It is true that the global labor force participation rate (LFPR) - the ratio of the global work force to the population aged 15 and over - has been declining since 1960. This is partly attributed to population aging. But as can be seen in the table below, because of falling fertility rates, especially in developing countries, the labor force as a share of total population (LFTP) is actually rising.

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authors proffer the idea that “the aging problem is not one of longer life spans and falling fertility rates, but of inappropriate institutions and behaviors.” (p. 6) There is a need to refashion institutions and policies to influence behaviors, and it has to be done now. Though at present

it is not a problem for a country like the Philippines, labor force participation rates should be increased to address expected labor shortfall later on. This could be done through educational reforms to allow young adults into the workforce, removing barriers to the participation of women, and increasing the mandatory

GLOBAL LABOR FORCE PARTICIPATION RATES IN OVER-15 POPULATION AND TOTAL POPULATION (Global labour force: 1960, 2005, and 2050, in per cent)
1960 Actual LFPR (labour force/pop 15+) LFTP (labour force/total pop) 67.4 42.3 2005 Actual 65.8 47.1 2050 Projected 61.4 49.0

Source: “Global Population Ageing: Peril or Promise?”, John Beard, Simon Biggs, David Bloom, Linda Fried, Paul Hogan, Alexandre Kalache, and Jay Olshansky, January 2012, Program on the Global Demography of Aging Working Paper No. 89, p. 35.

The increase in elderly dependents will be more than offset by a decline in youth dependents. This suggests that population aging does not pose an imminent economic crisis for the world. Even in countries with a very high percentage of elderly, such as Italy and Japan, this can be countered by taking steps to encourage people to retire later. It has been found recently that labor force participation has increased recently in some developed nations, including Japan. In terms of public policy, allowing people more freedom of choice when to retire is a good starting point. While life expectancy in 43 selected countries -- majority of which were developed countries -- rose by nine years from 1965 to 2005, the average legal retirement age rose by only six months. Older people can be encouraged to work longer by removing incentives to retire between the ages of 60 and 65.

Another way is to adjust benefits to promote longer careers. Previously, in Japan, some obstacles were mandatory retirement practices, maximum hiring ages, etc., but some policies have since been modified, and their labor force participation rate for men aged 60 to 64 has increased. In terms of business practices, some attitudes must be changed. Older workers are seen as a burden, so are bypassed for younger candidates. However, in an economy where knowledge is critical, the experience of older people offers immense value. Older employees should be given flexible schedules and telecommuting options. Training and health care should be continued. Pay systems based on performance, not seniority, will lead to a relaxation of corporate norms regarding retirement age.

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retirement age or scrapping it altogether. More research is needed on how to improve labor productivity, especially age-specific productivity, with its focus on older workers and the promotion of active aging. In the study by Ogena, it was found that more than half of household population 60 years old and over remained gainfully employed as of the year 2000. Males were more likely to work than females, and more than half (52%) worked without pay in family-owned farms/businesses. In a 2009 working paper by the United Nations, entitled “World Population Ageing,” noted that labor force participation of the older populations has remained stable over the last decades “and is considerably higher in less developed nations.” However, all regions saw a greater number of older women than men continuing to work.

Lower levels of labor force participation among senior citizens is a sign of higher levels of social security, but it could also signify a shortage of employment opportunities, and obsolescence of skills and knowledge. The UN sees the challenge for the future as ensuring that persons in every country are able to grow old with security and dignity, and participate in their society as citizens with full rights. While our country continues to have a high population growth rate, the number of elderly will increase at an even faster rate. With a growing number of older persons looming, issues surrounding health care and extended productivity need to be looked into and addressed as early as now, before it becomes an overwhelming problem.

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NEWS ON THE NET
Nation
PNoy rejects ₧125 legislated wage hike anew
The proposed ₧125 legislated wage hike demanded by labor groups was again rejected by President Benigno Aquino III, as he said that this could discourage prospective investors from doing business in the country, impede economic growth and will cost the jobs of 527,000 workers. However, Aquino said that the regional tripartite and wage productivity boards have been ordered to hasten consultations with labor groups in order to issue a new wage order to effect an increase in the minimum wage. For those in the government, the President announced that the fourth tranche of the Salary Standardization Law 3 is to be implemented in June allowing the government workers to expect salary increases by that time. The Department of Labor and Employment offered almost 300,000 jobs on the various job fairs held all over the country. revealed that 55% or an estimated 11.1 million families consider themselves as poor. Of the total number, Mindanao rated the highest increase in self-rated poverty as it registered 72% from 38% in December 2011. An increase of 9 points from 52% to 91% was registered in the Visayas while there was hardly an increase in the National Capital Region from 46% to 47%. The survey was conducted from March 10-13, 2012 with the questions directed to the household heads. After these results were announced, Malacañang reiterated that its pro-poor initiatives such as the Conditional Cash Transfer program have benefited 3.1 million families thus far. of Finance and Economic Ministers, government officials, business leaders, multilateral organizations, civil society, academe, and media, and development institution representatives from ADBmember countries, ASEAN and ASEAN+3 countries. This year's meeting had the theme “Inclusive Growth through Good Governance," to address the issue of bringing the benefits of rapid Asian growth to all levels of society. Food security, climate change, and inclusiveness in Asian economies were among the matters discussed during the four-day event. The meeting was met with protest s from local and foreign civil society organizations as well as anti-ADB groups airing their comments such that the ADB has failed to implement propoor policies in its projects The ADB is a regional development bank dedicated to reducing poverty in the Asia-Pacific region through sustainable and economic regional integration. Finance Secretary Cesar V. Purisima is the Philippine Representative to the ADB Board of Governors and is the Chairman of the 45th Annual Meeting together with Governor Amando M. Tetangco Jr. as Alternate Governor. The Philippines is a founding member of the ADB.

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Self-rated poverty worsens
Self-rated poverty in the Philippines increased significantly as results of the latest survey of the Social Weather Stations

4,700 delegates attend ADB meeting
The 45th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB) was attended by almost 47,00 delegates composed

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The Mining Debate, Part 3: Small Miners
A lot of spadework ahead before a working policy
By Bill Huang and Libby Gallentes with John Carlo Gil M. Sadian

W ith the news that, as of late April, President Benigno S. Aquino
III was still providing previews of his administration’s mining policy, without any solid indication of when his long-awaited executive order would be released, one can’t help but wonder whether previously high hopes are finally preparing to meet groundlevel realities. As reported in the April 25 ABS-CBN News story, a couple of President Aquino’s objectives would seem to be fairly straightforward: a higher share of mining proceeds for the government, and the protection of “at least 78” eco-tourism sites from mining interests. The need to clarify policy just got more urgent with news of mining investments dropping 35% last year, due to the stop in new concessions and investor uncertainty. The big boys are waiting: get the policy out. And yet, the success of any new and improved administration mining policy might lie in the government’s success in addressing an issue that has drawn some, if not a lot of attention, of late: the regulation of small-scale miners. Curbing the power of LGUs. In August, two months before the President announced that his administration was working on revamping the government’s mining policy, the Philippine Daily Inquirer reported that environment department officials, armed with a justice department opinion, were preparing to curb the power of local government units to grant mining permits to small-scale miners. According to the Inquirer story, environment officials cited the justice department opinion

STRATEGY POINTS
The Aquino administration’s long-promised new mining policy will have to address the regulation of small-scale miners, who collectively produce more gold than the output of large-scale mining operations The government is taking at least initial steps to regulate the operations of small-scale miners Small-scale mining in the Philippines is bigger than you might think

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in saying that small-scale mining operations should be covered by Republic Act 7076, the People’s Small-Scale Mining Act of 1991 [not 1992, as reported in the story], and not the 1984 martial-law-era Presidential Decree 1899. In essence, the opinion says that newer law gives the Dept. of Environment and Natural Resources (DENR) the power to regulate small-scale mining operations, and supersedes the presidential decree, which granted provincial governors unilateral authority to approve permits for small-scale mining. However, three months later, the DENR was still in the process of selling the new order to provincial mining regulatory boards, which includes developing an operations manual for local government units on functions devolved from the DENR. The self-styled regional summit also discussed procedures governing the designation of areas as People’s Small-Scale Mining Areas, applications for small-scale mining contracts, and environmental requirements for small-scale mining and quarrying. Importance of local small-scale mining. A couple of studies attest to the importance of small-scale mining in the Philippines: a 2004 presentation by U.K.-based Edmund Bugnosen of Communities and Small-Scale Mining (CASM) on formalizing the local small-scale mining sector (available for download through this link), and a pioneering 2002 study on mercury poisoning and small-scale gold mining by Danilo Israel and Jasminda Asirot of Philippine Institute for Development Studies.

At the time of Bugnosen’s presentation, there were an estimated 200,000 gold miners and panners, and another 100,000 miners involved in industrial minerals production, with about 80% of the total drawn to small-scale mining for subsistence rather than profit. Bugnosen also estimated that while small-scale mining contributed 40%-50% of the country’s gold production from 1990-1999, the figure could be as high as 80% as of the time of the presentation. In the absence of any significant changes in the regulation, or more to the point, nonregulation of the small-scale mining sector since Bugnosen’s presentation, there is no reason to change that assessment. Bugnosen’s presentation highlighted the following concerns related to the lack of formalization/regulation of the small-scale mining sector: • Economic - non-payment of taxes, loss of foreign investment, illegal trading/ smuggling • Environmental - land degradation, deforestation, siltation, mercury pollution, water source/shed denudation • Health and safety - accidents, disease, hazardous and congested dwellings • Social and other concerns – crime, prostitution, child labor, labor exploitation, land occupancy/use conflicts (with local communities, large companies and among miners themselves) Among other things, Bugnosen observed that: • The concept of segregating and declaring specific locations as small-scale mining areas (under RA 7076) has not worked • The legislative approach (under PD 1150)

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to legalize gold panning and sluicing inside existing mining claims (allowing two different mining rights over one area) has not been successful, and • Restrictive provisions of the different permits and licenses available to miners hinder the development of viable and wellplanned small-scale mining operations. At the same time, he also suggested that: • Special “reactionary” laws seem to be working (government control of a major gold-rush [presumably in Diwalwal] have positive results in terms of tax collection and environmental protection) • There is emerging interest in contract mining, which is seen to be promoting better relations and partnerships between small-scale miners and large mining companies • Formalization has addressed rampant illegal sand and gravel operations, and almost all sand & gravel operations are now covered with permits. Another indication of the significance of the small-scale mining sector comes from “Sustainable Development in the Philippine Minerals Industry: A Baseline Study,” a 2002 paper prepared by Mines & Geosciences Board specialists in an unofficial capacity for Mining, Minerals and Sustainable Development, a project of the International Institute for Environment and Development. The chart below shows the steady growth of the small-scale mining sector since 1984, to the point where its gold production overtook that of the large-scale mining sector in 1994, and has presumably continued to exceed it since then. (See table below)

PHILIPPINE GOLD PRODUCTION, 1983-1999
Year 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Total Production (KGS.) 25,397 25,727 33,063 35,427 32,780 30,492 30,046 24,591 25,952 25,609 24,917 27,307 27,023 28,234 31,199 34,038 31,050 Small-Scale Mining Production (KGS.) 136 1,254 8,085 11,440 8,047 7,292 8,698 5,510 9,204 7,852 9,491 12,413 14,493 15,656 14,062 19,859 17,045 Large Scale Mining Production (KGS.) 25,261 24,473 24,978 23,987 24,733 23,200 21,348 19,081 16,748 17,757 15,426 14,895 12,530 12,578 17,137 14,179 14,005

Source: “Sustainable Development in the Philippine Minerals Industry: A Baseline Study,” M.V. Cabalda, M.A. Banaag, P.N.T. Tidalgo & R.B. Garces, Mining and Geosciences Board, published by Mining, Minerals and Sustainable Development project of the International Institute for Environment and Development, February 2002, p. 85

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SMALL-SCALE GOLD MINING AREAS IN THE PHILIPPINES
Baay Bucluc Bolinay Tubo Sta. Catalina Mindoro San Pedro Cervantes Bakun Kibungan Alok Bla Kapunga La Trinidad Ampucao Camp 4 Ansagan Natividad Gapan De Villa Binaybay Dulangan Ipil Batasan Lemery Toledo Jetafe Hinobaan Talbon Trinidad Libona Buawan Karomatan Kabosalan Siocon Ayala Conner Peñablanca Balbalan Bontoc Kabayan Cordon Cabarroguis Kasibu Bulalacao Baguio City Gumatdang Ucab Poblacion

Doña Josefa Pale Kabalugan

Palayan City Paracale Jose Panganiban Paniqui Capsay Maydolong Sta. Rita Gen. MacArthur Balangiga Consolacion St. Bernard Liloan Pinut-An Placer Santiago San Miguel Barobo Rosario Bunawan Diwalwal Compostela Maco Kingking Manay Lupon

Nabunturan Bagumbayan Kulaman T'boli

Source: “Mercury Pollution Due to Small-Scale Gold Mining in the Philippines: An Economic Analysis,” Danilo C. Israel and Jasminda P. Asirot, Research Paper Series No. 2002-02, Philippine Institute for Development Studies, p. 12

Most small-scale gold mining is without license and illegal. At the time of the 2004 study by Israel and Asirot, the authors observed that “Most of small-scale gold mining in the Philippines was operated without license, and, therefore, illegal,” which they cited in saying that accurate production data for their study was hard to find. (See table above for small-scale gold mining sites around the country.) To illustrate the significance of the small-scale gold mining sector, by their estimate, the small-scale gold mining sector contributed at least 25% of the country’s gold production in 1992. (They

also cite foreign estimates that place gold production by the small-scale miners much larger, but also advise caution in using those estimates because those estimates strongly suggest that overall gold mining was actually dominated by the small-scale gold miners, and that there is rampant gold smuggling because, also by their estimates, only about 20% of the gold finds its way to the Bangko Sentral.) These observations, however, were only secondary to the authors, as the title of the study might imply. The heart of the study was in documenting the extent to which mercury pollution – mercury is used in

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extracting and amalgamating gold ore -exists in three sites that were the subject of their case studies: Diwalwal in Compostela Valley province, Panique in Masbate province, and Tugos in Camarines Norte. According to the authors, although mercury pollution has been extensively documented in Diwalwal, since the discovery of gold in 1983, it evolved

those areas, which forced them to engage in primary data collection via survey interviews with 95 area respondents, 45 in Panique and 50 in Tugos. The surveys indicated that more than half of the respondents had heard of others in their area getting sick from mercury poisoning, while 20% of the respondents said they personally had been exposed to mercury in the course of their work. More than 75% said they noticed significant siltation and sedimentation in the nearby body of water since mining started, while over 61% said they noticed significant fishery loss in the nearby body of water since mining started. And while the extent of local government unit monitoring and nongovernment organization presence in Panique and Tugos, might be questioned, based on the survey respondents’ answers, it seems that in both areas, they agree overwhelmingly that the national government is not involved in small-scale mining. The study also discusses different gold extraction methods as well as safety measures, i.e., mercury retorts and tailings ponds, along with other environmental hazards, i.e., cyanide pollution,

from a smallscale mining site to one with medium- and even large-scale mining operations, and as such was no longer truly representative of a small-scale mining site. Hence, the need for two other small-scale sites to confirm the prevalence of mercury pollution. The problem with the two other smallscale sites was the lack of secondary data or previous studies of mercury pollution in

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deforestation, biodiversity loss, and siltration and sedimentation of downstream water bodies. The authors also bring up economic problems -- in particular, the low price of gold paid to small-scale miners, who sell their output to tunnel owners, the loss of

gold by the country because the output is not sold to the Bangko Sentral, and the lack of credit as well as alternative employment opportunities for small-scale miners – and technology problems, i.e., inefficient and unsafe methods for gold extraction that the small-scale miners have to resort to because of poverty.

One more legal consideration to keep in mind
Meanwhile, as reported by the Philippine Daily Inquirer on May 1, three mining firms have sought the intervention of the Court of Appeals to invalidate President Aquino’s April 6, 2011 order, which cancelled the Financial/Technical Assistance Agreement they entered into with the government. These firms are the McArthur Mining Inc., Narra Nickel Mining and Development Corp., and Tesoro Mining and Development Corp., which all operate in Palawan. Aquino voided the said FTAAs as among the “midnight deals” signed by his predecessor. The three mining firms filed a motion for reconsideration of the appellate court’s earlier February 28 ruling that affirmed Aquino’s action. According to the firms, they were not afforded due process when the president arbitrarily cancelled the contracts without giving them a chance to be heard. This comes as the Aquino administration wrestles to implement a new mining policy in line amid calls to review the Mining Act of 1995 and totally ban large-scale mining. After a few months of flip-flopping on whether to issue an executive order or just a policy statement, the Palace has yet to release any issuance other than press releases, the latest of which involved the president’s plan to just increase the government’s share in the revenues of mining firms and to select specific eco-tourism areas where mining will be banned. As it stands, however, whether or not President Aquino has the legal right to cancel agreements entered into by his predecessor, the president’s power regarding mining does not include the issuance of an executive order to “cure” the alleged defects of the Mining Act, if only because of the basic legal norm that laws enacted by Congress are beyond the president’s power to touch. Furthermore, the president’s plans to increase the government’s share in revenues in mining operations could be illegal because Sec. 80 of the Mining Act provides a clear-cut instruction on the government’s share: “The total government share in a mineral production sharing agreement shall be the excise tax on mineral products as provided in Republic Act No. 7729, amending Section 151(a) of the National Internal Revenue Code, as amended.” Thus, the president cannot by himself increase government’s share, as only Congress can amend the National Internal Revenue Code. -- Atty. John Carlo Gil M. Sadian

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Mining in the Philippines (part 3): A long road and a lot of spadework

National government participation called for. It would seem that national government participation in smallscale mining is called for in one way or another, if only because the old system of provincial governors unilaterally issuing mining permits and local government units monitoring and enforcing environmental standards appears to have benefited local government units and few others, to the detriment of communities around downstream bodies of water, not to mention the health and safety of small-scale miners themselves. The Aquino administration, with its proactive consultations prior to issuance of

any executive order or policy statement, not to mention its efforts to address the tangle of jurisdictions involved in the issuance at the provincial level of small-scale mining permits, seems to be generally on the right track, its initial exuberance having been tempered by political reality and replaced with healthy caution. An inclusive mining policy, however, will still take a lot more than pronouncements cloaked in the garb of the highest official of the land, as various stakeholders in the process have reminded and will continue to remind him.

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NEWS ON THE NET
$1.86B ADB projects the bank’s total sovereign lending, and is also a major supplier of in Phils. focus on consultancy services related to ADB-funded projects. infrastructure, climate change, U.K. promotes social sectors EU ties with Asia The Asian Development Bank has Pacific region
allotted $1.86 billion in loans and $21.6 million in grants for its various programs in the Philippines over the next 2-3 years. “The lending program has been adjusted to align with the priorities of the government and increased investments in infrastructure, climate change mitigation, and social services are proposed,” the ADB stated in its country operations business plan for the Philippines. Of the 14 technical assistance grants approved by the ADB from February 2011 to April 2012, the most recent one is the $500,000 grant to the Department of Energy on consumer protection. Five pilot systems using indigenous sources are being developed to serve around 1,500 households in the locale. On the other hand, the Agusan river basin development concerns the Agusan Marsh and Wetland Sanctuary. The project addresses environmental and natural resources degradation; particularly due to the nearby presences of mining and wood processing plants, and agricultural operations. In terms of cumulative loan amount, the Philippines is the fifth largest borrower of ADB. The country accounts for 6 percent of its nonsovereign operations, 8 percent of British Foreign Secretary William Hague recently delivered a keynote speech on ‘Britain in Asia’ in Singapore during the IISS Fullerton Lecture series, encouraging European nations to be more involved in the development of the Asia Pacific. “We believe that it is time for the EU to be more vigorously and coherently engaged with countries of the Asia-Pacific within the limits of its competences; working to break down market barriers within Europe and between Europe and the rest of the world, championing free trade agreements, and working closely together in specialist areas such as disaster preparedness,” said Hague. “This also involves being active on foreign policy issues in Asia, for example offering EU expertise to support regional integration in South East Asia, and taking a robust position on North Korean nuclear and missile proliferation.” Two years ago the EU signed a major free trade agreement with South Korea – its first with an Asian country – and it has served as the model for other similar agreements pursued in Asia since.

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Formal negotiations for a free trade agreement between the EU and the Philippines are scheduled to start soon, beginning with a scoping exercise mid-2012.

Toyota Motor Phils. eyes compact car niche
Toyota Motor Philippines president Michinobu Sugata has confirmed that among the car company's priorities over the next few years is to raise the local content of motor vehicles built in Sta. Rosa, Laguna. The said facilities roll out Toyota’s Vios and Innova models. The move is expected to land Toyota a competing role in the small car niche, resulting in Philippinemade Toyota vehicles competing well versus imports. It appears that the strategy anticipates forthcoming results of free trade agreements with ASEAN nations – such as the ASEAN-Korea Free Trade Agreement and the ASEANChina Free Trade Agreement – which will drop tariffs on completely built automotive units in the coming years. In addition to a strong local production target, also in sight for Toyota for the Philippines in 2012 is a strong sales target. The sales objective will likely be helped by the recent unveiling of the 2012 Camry model earlier this May; the Camry is the leader in the midsize executive sedan segment of the local automotive business sector.

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Enabling the Disabled: The Latest in Assistive Technology
By Tanya L. Mariano

STRATEGY POINTS
5-15% of the world’s population suffer from some form of disability Northwestern University has developed a brain-machine interface that could one day help paralyzed patients regain control of limbs Future of assistive technologies looks bright, with support from and collaborations between big companies, tertiary institutions, and nonprofit organizations

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developed by N ew technology the Northwestern researchers at University Feinberg School of Medicine restores movement to paralyzed limbs and, once perfected, could eventually aid patients paralyzed by spinal-cord injuries. The neuroprosthesis, composed of devices implanted in the brain and the arm, makes use of a multi-electrode array that “detects the activity of about 100 neurons in the brain and serves as the interface between the brain and a computer that deciphers the signals that generate hand movements,” according to an April 18 news report on the University’s website. Says lead investigator Lee E. Miller, PhD, Edgar C. Stuntz Distinguished Professor in Neuroscience, “We are eavesdropping on the natural electrical signals from the brain that tell the arm and hand how to move, and sending those signals directly to the muscles.”

While trials have only been performed on monkeys, in the future, the device could be tested on paralyzed patients. The latest in assistive technology. Here are a few recent innovations in assistive technology, including some that were presented at the 27th Annual International Technology and Persons with Disabilities Conference hosted by California State University, Northridge (CSUN) and held in San Diego between February 27 to March 3 this year.

What is assistive technology?
The term “assistive technology” refers to technology to be used in “any item, piece of equipment, or product system, whether acquired commercially, modified, or customized, that is used to increase, maintain, or improve functional capabilities of individuals with disabilities,” or “any service that directly assists an individual with a disability in the selection, acquisition, or use of an assistive technology device,” as defined in the U.S. Assistive Technology Act of 2004. There are various types of assistive technology products currently available, including alternative input devices such as electronic pointing devices that use eye movements, brain waves, nerve signals, infrared beams, or ultrasound to control a cursor on the screen; Braille embossers that convert computer-generated text into embossed output, and; text-to-speech synthesizers and screen readers to aid the visually impaired. Microsoft provides a neat summary of the types of technologies currently on the market.

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1. TAP-it – Touch Accessible Platform for Interactive Technology. TAP-it makes interactive learning and computer skills education more accessible to children with developmental and physical disabilities. According to their website, it is “the only assistive touch learning center using ‘intended touch’ to serve each student’s special needs.” The technology distinguishes from “an arm resting upon the screen and a finger or assistive device intentionally tapping an image.” It provides an interface that makes it easy for educators to go about lessons at the student’s own pace and instills skills in the student that are transferable to other computer-based applications. The following video shows how it works. 2. Esytime Braille PC. Another participant at the CSUN Conference was Eurobraille, makers of Esytime, a Windows 7-compatible Braille device that features a 32-character Braille display, 10-key Braille keyboard, eight function keys, two joysticks, and optical sensors that let users perform several functions without having to press a key or lift the hands away from the Braille line. 3. Tobii Gaze eye-tracking technology to control computers. For those with impaired motor skills, e.g., persons who are unable to use their hands to navigate a computer, tech company Tobii has developed Tobii Gaze, an eye-tracking technology that lets users control their computers with their eyes. In the following video, Tobii Technology Business Development Manager Anders

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TAP-it is an interactive learning interface designed for children with developmental or physical disabilities.

Esytime is a Braille note-taking and Braille display personal computer.
Promotional brochure uploaded on Eurobraille website

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Olsson demonstrates how Tobii Gaze can be used for Windows 8. The technology was part of the 2012 Consumer Electronics Show last January. 4. Step-Hear and Call-Hear. Assistive technology manufacturer Step-Hear Ltd. offers two products: Step-Hear, an easy-to-use information, orientation, and audio-messaging system designed to help the visually impaired, and Call-Hear, a “call for help” system that sounds an alert when a person with disability within your premises requires assistance. Step-Hear consists of a handheld activator and a base unit that may be installed in public places, near traffic lights, bus and train stations,

and ATM machines, for instance. When someone carrying an activator approaches a base station, the activator beeps and vibrates to inform the wearer that he is in range of a Step-Hear base unit. Pressing the button on the activator causes the base unit to play an audio message to guide the user to his intended destination. Call-Hear comes in a variety of models, but all consist of a call unit, to be carried by a person with disability, and a chiming unit, which may be attached to doorways and windows, for instance, that detects call units 30-60 meters away and sounds an alert whenever a user presses the button on their call unit. Step-Hear Ltd. was also present at CSUN this year.

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Step-Hear consists of an activator that beeps and vibrates when in range of a base unit, which could be prompted to give audio directions to get to the user’s desired destination.

Tobii Gaze’s eye-tracking technology lets users control their computers with their eyes.

Call-Hear allows users to call for help by pressing a button on their call units (pictured above), triggering the alarm in a chiming unit 30-60 meters away.

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MIT’s ring camera could one day aid the visually impaired by providing information about objects within their vicinity

Dr. Steven L. Hicks of the University of Oxfo Oxf prosthetics to help the visually impaired re

5. 3D navigation glasses from the Institute of Intelligent Systems and Robotics. Researchers at the Pierre and Marie Curie University in Paris, France are developing a pair of glasses equipped with sensors and cameras similar to technology used to guide the movement of robots, reports science and technology weekly New Scientist. The system, which d ebuted at a talk at the Massachusetts Institute of Technology (MIT) in 2011, creates“a 3D map of the wearer’s environment and their position within it that is constantly updated and displayed in a simplified form on a handheld electronic Braille device.”

6. The EyeRing from MIT. A similar device has also emerged from MIT’s Media Lab. The EyeRing is a micro-camera worn as a ring that takes photos or videos that are then sent wirelessly to a smartphone to be analyzed, then returns information about the object/s to the wearer in either visual or auditory form. This video shows how it works. 7. “Smart specs” from the University of Oxford. Another set of glasses designed to help the blind and visually impaired is being developed at the University of Oxford. Dubbed “smart specs,” the current prototype has two small cameras

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ord develops visual gain independence

Tim Hemmes, who has tetraplegia, moves DARPA’s robotic arm with his mind
University of Pittsburgh Medical Center

to detect distance, a gyroscope to sense head orientation and movement, a compass to determine the direction the wearer is facing, and a GPS unit to establish the wearer’s location. In this video, uploaded toYouTube by the Royal Society, Steven L. Hicks, PhD, of Oxford University talks about their work in the development of non-invasive, low-cost visual prosthetics. The glasses were exhibited at the 2011 Royal Society Summer Science Exhibition. 8. DARPA’s mind-controlled prosthetics. A project similar to

Northwestern’s undertaking, albeit not very new, is the U.S. Defense Advanced Research Projects Agency’s (DARPA) Revolutionizing Prosthetics Program. The program has created a robotic arm that can be controlled by a patient’s neural impulses, greatly benefiting people who have lost their limbs. In September 2011, DARPA announced a milestone in the program: 30-yearold volunteer Tim Hemmes successfully controlled one of DARPA’s mechanical arms via neural signals captured by an implant in his brain. In this video, Hemmes, who was left paralyzed by a motorcycle accident, touches the hands of his girlfriend for the first time in seven years.

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Enabling the disabled: The latest in assistive technology

Bright future for assistive technology. Northwestern’s new system is but one among the growing list of technologies designed to help the disabled. The good news, according to Media Access Australia Project Manager Dr. Scott Hollier, a presenter at the 2012 CSUN, is that “there’s a lot more going on in disability and technology than many people think.” Major corporations such as Google and Microsoft, tertiary institutions, and non-profit organizations are throwing support behind

assistive technology development and forming collaborative partnerships (Media Access is a not-for-profit organization that works to improve access to mediafor persons with disabilities). Together, advances in technology and the increasing awareness of disability as a human rights issue are providing the impetus to develop an expanding set of tools to help persons with disability gain or regain independence.

Defining disability: prevalence and protection programs
Disability is classified by the UN “International Classification of Functioning, Disability, and Health (ICF)” based on bodily functions and structures, and domains of activity and participation, with an added dimension of environmental factors to account for the context in which a person’s disability occurs. According to the “World Report on Disability,” a product of a joint effort of the World Health Organization and The World Bank, the ICF defines “disability” as “the umbrella term for impairments, activity limitations and participation restrictions, referring to the negative aspects of the interaction between an individual (with a health condition) and that individual’s contextual factors (environmental and personal factors).” The “World Report” found that various sources estimate that between 5-15% of the world’s population suffer from some form of disability. The report adds that studies have found evidence that persons with disabilities experience more extreme poverty than those without disabilities, and that, following the United Nations Convention on the Rights of Persons with Disabilities, disability is increasingly being understood as a human rights and developmental issue. In the Philippines, the National Council on Disability Affairs is the agency tasked to lead government efforts to serve Filipinos with disabilities, manage relevant development programs, and ensure that the rights of persons with disabilities are protected. Based on the database maintained by The World Bank and non-government organization Leonard Cheshire Disability, there are four government programs aimed at helping those with impairments in sight, hearing, mental health, learning or intellectual abilities, mobility, and speech and language: Sharing Computer Access Locally and Abroad Program (SCALA), Inclusive Education Programme, Kabuhayan Starter Kit, and the National Health Promme for Persons with Disability.

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Technology
China launches two more Beidou navigation satellites
China is inching closer and closer to the completion of its navigation and positioning satellite network, with the launch of two more navigation satellites last Monday morning from the Xichang Satellite Launch Centre in the Sichuan province of China. The two are the 12th and 13th of a total of 35 satellites needed to complete the Beidou Navigation System, which finally became operational last December 2011. China aims to have all 35 satellites up by 2020, with the hope that Beidou – which was developed for both military and civilian use – will in time decrease the Asian power's dependency on the U.S. Global Positioning System. A video from Analytical Graphics, Inc. shows the operational Beidou satellites in relation to the locations of U.S. satellites. Russia's Glonass satellite network currently operates with only 24 working satellites, although 31 are in orbit. However, the European Commission also has a navigation system, called Galileo, in development. Two satellites out of the planned 26 have already been launched last year, and just became operational last month. highly publicized. BlackBerry 10 devices will have camera apps with a built-in option to tap a person's face in a photo and scroll it back to previous camera captures – supposedly a useful aspect if someone was blinking, or looking elsewhere.

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RIM previews long-delayed BlackBerry 10
Research in Motion (RIM) last Tuesday debuted a prototype of its long-delayed Blackberry 10 smartphone and operating system at the company's annual BlackBerry World developers conference, in anticipation of its release later this year. The early version garnered positive reactions, but did little to help RIM's financial woes. Last week, the Blackberry maker's shares plunged to its lowest level in almost nine years. The dismal showing highlights the steep uphill smartphone battle RIM is facing. The company is now in fourth place, coming in far behind Samsung, Apple, and even Nokia, according to a recent IDC report. One of the most impressive new features of the Blackberry 10 is its redesigned user interface. It boasts of a "cascades" framework, which allows users to scan their loaded apps with a simple finger swipe gesture, instead of using a back key or a physical button. Another quirky feature of the Blackberry 10 – its camera software – was also

Boeing delivers the 747-8 Intercontinental to Lufthansa
First unveiled at a large ceremony in June 2011, the 747-8 Intercontinental has been in testing since. Last week, however, Boeing finally handed over the keys to the first of the new line of airplanes to a commercial airline customer. Lufthansa has become the first air carrier to officially own one. From the inaugural celebrations in Everett, Washington last Tuesday, the Boeing 747-8 Intercontinental flew to Frankfurt, Germany to undergo final preparations for its commercial debut on June 1. Lufthansa has announced that it plans to fly the aircraft to three U.S. cities – Los Angeles, Washington, D.C., and Chicago – as well two Indian destinations. In financial news, first quarter results for the aircraft maker soared; with Boeing's net income gaining 58%. Revenue climbed by 30%, to $19.4 billion. The numbers were not to kind to Lufthansa, which is now struggling to keep its reputation as Europe's most profitable air carrier after reporting a consolidated operating loss of EUR381 million for this quarter.

Keeping track of U.S. and Chinese navigation satellites

Beidou has effectively made China only the third country in the world to possess its own navigation system. Aside from the U.S. Global Positioning System,

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