Arangkada in the News

Wrong policies driving away investors

This is a re-posted opinion piece.

At the Arangkada Philippine Forum hosted by the Joint Foreign Chambers of Commerce held at the Grand Ballroom of the Marriott Hotel last Thursday, President Aquino promised “a more clear-cut policy on its mining industry by next month amid complaints from foreigners that inconsistent rules have stymied investments.”

Many are puzzled how a country as rich as the Philippines ranking fifth in the world for mineral reserves, including large reserves of gold and copper should be so poor. Last year mining made only about 1 percent of gross domestic product with total production at $1.5 billion. This is unbelievable compared to what other countries with less mineral wealth have done to use their resources to tackle poverty.

Aquino said “he would receive a commissioned report by mid-February with recommendations on needed mining policies.”

Sounds good and businessmen in the meeting welcomed the news. Why should foreign investors stay in such a hostile atmosphere when there are others who lay the red carpet for investors.

Julian Payne, president of the Canadian Chamber of Commerce, said the country has tremendous mining potential but that the government’s current policy is confusing to businessmen.

John Ridsdel, president of the mining company TVI Minerals Processing Inc., said “there is a lack of consistency between national government and local government policies, and that the approval process for mining permits is cumbersome and needs to be streamlined.”

He urged the government to crack down on illegal and dangerous small-scale mining, which involves an estimated $43 billion in illegal production, representing a huge loss of taxes and causes environmental damage. Compare the two, $43 billion without proper governance as against $1.3 billion because it is being stymied by bad governance.

I hope Aquino will soon understand what is at stake in this effort. It is true there must be a balance between environment and maximizing gains from mining but that is not what is happening. What we have are irresponsible small miners without expertise and knowledge of responsible mining proliferating. And of course, here’s the bigger rub — with good governance, the government can gain revenue without having to raise taxes from the poor and middle class. We are losers twice because of current policies — endangering environment and failing to raise government revenues. It is a formula for keeping this country poor.

We should look at responsible mining in other countries like Chile for example. The mining sector in that country is a pillar of the Chilean economy. Copper exports account for more than one third of government income.  

We are very rich in copper. A big mining company like Sagittarius Mining Inc.’s project in South Cotabato has already spent millions in community development, building infrastructure and meeting all the requirements to be allowed to mine what could be their biggest copper mining project in the world. It still has no ECC permit from local authorities with the help of foreign NGOs against mining and misguided anti-mining groups not to mention NPA raids to exact revolutionary taxes.

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Dictatorial is not visible because we have been used to thinking that dictatorial is about Marcos’ martial law. As I have said previously in this column the dictatorship that is being pursued is more subtle but dictatorial just as well — revolutionary government. Cory rejected revolutionary government. Whoever is behind the composition of P-Noy’s government has managed to surround a president who does not have a clue as to what is happening.

For those who wish to predict how the hearings on Corona’s impeachment will turn out, here’s good advice: “the best way to predict the future is to create it.” It calls for an activism that will demand commitment and sacrifice. We cannot leave it to the good intentions of Senate President Juan Ponce Enrile or the legal talents of Serafin Cuevas and Sen. Miriam Defensor. I must add that this is easier said than done with so many factors that would affect its outcome, some of them external.

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Not enough attention has been given to the fact that our national heroes from Rizal to Quezon were Masons aka freethinkers. I met Elias Mansur Neto a few years back when he wrote me an email asking if he could translate the Untold Story of Imelda Marcos into Portuguese. He translated it and we have since been Facebook friends. He has continued his interest in the Philippines.

Recently he wrote and article for a magazine: The Contribution of Freemasonry for the independence of the Philippines – similarities with Brazil.

Like other Latin American countries colonized by Spain, the society is divided between rich and poor, privileged and underprivileged people. At least with regard to the participation of Freemasonry, there are many similarities between the history of the Philippines and the history of Brazil.

The coincidences are so many that it seems that the events occurred between the late 18th and early 19th century in Brazil served as a model for the movements and struggles developed by Filipino Masons in the late 19th century and the first half of the 20th century?”

He refers to Dr. Jose Rizal, Andres Bonifacio, General Emilio Aguinaldo and Manuel Quezon who were all Masons.

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I am all for using Pilipino during the impeachment trial. This is a welcome development to use our native language in something as crucial as the impeachment hearings so that the people understand what is going on and what is being said in the trial. For the first time, we have admitted that English as lingua franca has divided this country into English and Pilipino speakers with English open to the more educated and Pilipino to the masses.

MISCELLANY: Living in Alabang, I am always on the lookout for good restaurants in the neighborhood. Going to Makati has become too expensive. Well, my family and I struck lucky recently when we discovered Studio Kitchen. For those who live in the area here’s a neighborhood that is reasonably priced. For cold starters we had fresh Red Crab salad made from wild red crab, granny smith apple mash, piquillo, shiso and espelette. The other cold starter was fois fras terrine with Beet Gastrique, compressed apples and aged balsamic. The adults shared seafood pasta, maple glazed pork belly main dish and their New York steak. We had a platter of different sweets for desert. The bill came to one half it would cost in Makati and we saved on gasoline and toll fees as well.
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By: Carmen N. Pedrosa – From a Distance
Source: The Philippine Star, Jan. 28, 2012
To view the original article, click here.

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