Philippines 3rd most preferred market for global fund - positive outlook

The Bank of America-Merrill Lynch survey citing the Philippines as the third most preferred market for global fund managers reflects the positive outlook for the Philippine economy that is enhanced by the accountability, transparency and good governance espoused by the Aquino administration, a Palace official said Wednesday.

Presidential spokesperson Edwin Lacierda said the Aquino administration remains positive that the Philippine economy will continue to grow amid the economic situation in the US and Europe.

"I think when the survey was taken, it has taken into account all the factors -- external and internal. The external factors are the factors that are experienced globally while certainly they look into the internal factors," Lacierda said.

"They have seen the promise of good governance . . . Our efforts to anti-corruption will certainly lead to good governance and would lead to a situation where the Philippines has been perceived as an attractive area for investment," he said.

The Bank of America-Merrill Lynch survey said the Philippines comes after China and Indonesia in the list of most preferred markets in the world for global fund managers.

"This is borne of expectations that in the wake of four credit upgrades, the country will be further upgraded to investment grade later this year. The survey also cites investor confidence being boosted by the President's reform agenda," Lacierda said.

"The simple fact is justice, accountability, transparency, good governance, and the improvement of the economy to accomplish inclusive growth are an indivisible whole. An economy that is inclusive is one in which citizens are empowered to improve their lives and contribute to the well-being of the national community," he said.

The Philippines received upgrades last year from London-based Fitch Ratings, from BB to BB+ and the Moody's Investors Services in June 2011. Standard & Poor's upgraded the country from stable to positive in November of 2010.

Meanwhile, Malacañang Wednesday hailed the Senate Blue Ribbon committee for recommending plunder charges against former President Arroyo for alleged mismanagement of the Philippine Charity Sweepstakes Office (PCSO) funds.

Lacierda said the Office of the Ombudsman must now look into the fourth plunder complaint against Arroyo recommended by the Senate committee.

"The findings of the blue ribbon committee on the mismanagement and plunder of PCSO funds shows what happens when the misdeeds of the past are exposed to daylight. We commend Senator Teofisto Guingona III's graft-busting investigation. Congressional oversight is a crucial weapon in the fight to punish wrongdoing and hold erring officials to account," Lacierda said in a Palace news briefing.

"The ball is now in the court of the Ombudsman to file charges for plunder against the officials involved," he added.

Lacierda said the government is determined to rectify the wrongs of the past despite the obstacles set by Arroyo and her allies.

The Senate Blue Ribbon committee earlier claimed that Arroyo should be charged with plunder and technical malversation for the release of ₱325 million in PCSO intelligence funds in her last three years in office.

Three other plunder cases have been filed against Arroyo, currently under hospital arrest pending a trial for electoral sabotage charges. (With a report from Genalyn D. Kabiling)

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Philippines: Sen. McCain & Lieberman take PH side in West Philippine Sea dispute with China

Manila - The name John McCain is no stranger to the Philippines, It was here where as a young man the senator's father served as commander at the former US Naval base at Subic Bay. McCain first tasted freedom from years as prisoner of war touching down at Clark Field on the Island of Luzon.

With few exceptions; the American senator and his companions have probably one of the longest and strongest personal ties to the country. When McCain as well as Joe Liberman, as well as Sheldon Whitehouse from Rhode Island and Kelly Ayotte of New Hampshire met with Foreign Affairs Secretary Albert F. del Rosario; issues discussed included U.S. defense and development assistance to the Philippines.

McCain: Concern over intrusions into 'West Philippine Sea'

Senator McCain, who in his remarks referred to the "West Philippine Sea" and issues over Chinese Navy intrusions into the Philippine Province of Palawan's waters.

The DFA also briefed updated the delegation on US funded programs like "the Mindanao Peace Process, ASEAN, the ASEAN Regional Forum (ARF), Myanmar, climate change and the renewed engagement of the U.S. in the Asia Pacific. "

The Philippine Foreign Secretary expressed, "Appreciation for U.S. Senate Resolution 217, which was passed on 27 June 2011, which called for a peaceful and multilateral resolution to maritime territorial disputes in the disputed islets and reef just off shore of the Philippine Island of Palawan and over several hundred miles from China."

Del Rosario; also thanked the Senator for his position about the need to maintain freedom of navigation in the West Philippine Sea; and for stressing the need for U.S. support in defense of the Philippines as America's former commonwealth and oldest and closest ally in ASEAN.

Senator McCain, expressed "strong affinity" for the Philippines and noted the "long and friendly personal relationship" between the two countries, conveyed that the best way to avoid confrontation with China is to maintain freedom of navigation.

Secretary del Rosario also requested the U.S.' assistance on the Philippine Government's request for a third Weather High Endurance Cutter (WHEC), which would enable the Philippines to attain minimum credible defense posture and to enhance maritime domain awareness.

In response, Senator McCain committed that they "will try to get a waiver on the cutter" as he sees that it would be unreasonable not to give it" to the Philippines. He also said that they would do whatever they could to help the Philippines improve its maritime security." A media release on the event from the Philippine Department of Foreign Affairs said.

Lieberman: Philippine cooperation on counter-terror 2nd to none

As chair of the U.S. Senate Committee on Homeland Security, Senator Lieberman conveyed his gratitude for the Philippines' cooperation in counterterrorism and requested updates on the Mindanao Peace Process.

Foreign Affairs Undersecretary Rafael Seguis provided updates on the Government of the Philippines-Moro Islamic Liberation Front (GRP-MILF) Peace Process, and expressed optimism that a peace agreement will be signed between the two panels before the end of the Aquino administration.

The visit of Senator McCain and his delegation to the Philippines is part of their trip to Southeast Asia which includes Vietnam and Myanmar. The visit's purpose is to broaden and deepen the existing defense and security relations between the two countries.

The Quartet of US Senators met with Philippine President Benigno Aquino III later Tuesday night - Aquino who says he "Will continue to focus on the country's economic growth." earlier in the week he also welcomed Chinese investors into the country. Palace officials note both Taiwan and PRC investments are most welcome to Manila. But "Naval incursions are not" in side remarks to visiting US senators.

The Aquino Administration which says it is firm in "its commitment to good governance, it also would not waver in pursuing equitable economic growth, citing solid accomplishments such as creating an additional 2.1 million jobs last year, as well as having increased tourist arrivals by about a million additional visitors in 2011," Presidential Spokesman Edwin Lacierda said in a statement released to the media on Tuesday afternoon said.

"The great strides that have been made in curbing corruption, fighting poverty, and promoting good governance—the achievements of the past one and a half years—are only indicators of the changes that will continue to sweep the Philippines in the coming years," he added.

In the recent meeting of the President with the members of the US Congress, Lacierda said the American legislators expressed their confidence in the reform agenda of the Aquino administration.

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US Senators Support Philippines in Spratly Islands Dispute

Four U.S. senators visiting Manila have been discussing the West Philippines Sea (South China Sea) territorial dispute and touting their support for the Philippines.

Arizona Senator John McCain reiterated the U.S. stance that there is no need to have any sort of confrontation with China over issues related to the West Philippines Sea (South China Sea).  But he also said it is important to strengthen U.S. ties with the Philippines.

"We think that it's important for us and other ASEAN nations as well as the Philippines to emphasize that we will do whatever we need to do in order to protect the principle of freedom of navigation, particularly in the West Philippine Sea," McCain said.

McCain and the other senators used the preferred local name when referring to the disputed sea, which has some of the world's most heavily traveled sea lanes. The region is believed to have vast oil and gas reserves and also provides abundant fishing.  China says it owns practically the entire sea based on a centuries-old map. But the Philippines, Vietnam, Malaysia, Brunei and Taiwan also have claims to part or all of the sea.

Senator Joseph Lieberman of Connecticut is a senior member of the Senate Armed Services Committee.  He says keeping peace and order means always being ready for war.

"China has made claims over the West Philippine Sea - the South China Sea - that I don't accept and I know the Philippine government doesn't accept," said Lieberman. "The question is how do we reconcile those differences? I think we have a better chance of reconciling them peacefully, as Senator McCain says, if we both strengthen the Philippine military and we continue, and I hope even expand, our presence here on the waters here."

Lieberman pointed to the installation in the Philippines in August of a used American Hamilton-class cutter that is now the country's largest military ship. The Philippines is expected to take possession of another one this year and two more in the future. The BRP Gregorio del Pilar patrols waters along a natural gas drilling project in the West Philippines Sea.

China has expressed displeasure numerous times about U.S. input on the disputes in the Spratly Islands of the Philippines, such as vocal support for multilateral talks among claimant countries. China continues to emphasize one-on-one talks with each party.

2^nd week of January 2012, the Philippines protested what it calls intrusions in mid-December 2011 by Chinese vessels and a military ship into waters it says were well within the country's exclusive economic zone. The United Nations designates an exclusive economic zone as a 370 kilometer or 200 Nautical Miles Exclusive Economic Zone (UNCLOS) area beyond a country's coastline. China extended its claim more up to the seas in Malaysia for more than 1000 Miles called the protest of the Philippines as baseless as their claimed that "they owned everything".

Last year, the Philippines cited about nine instances of alleged Chinese intrusions into its waters. One allegation accused Chinese boats of harassing an oil exploration ship. China has repeatedly said there were no intrusions.

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Philippines reiterates call ASEAN members to take a decisive stand on Spratlys issue

The Philippines reiterated anew its call on the other members of the Association of Southeast Asian Nations (ASEAN) to take a united and decisive role in the resolution of the West Philippine Sea (South China Sea) disputes by supporting its proposal that a meeting be held as soon as possible among the claimant states, including China, under the guidance of ASEAN.

"The Philippines calls on all ASEAN Member States to endorse this proposed claimant states' meeting, which the Philippines is ready to host. We would also welcome other ASEAN Member States to host this meeting if they would like to unequivocally express their support for and advance a rules-based approach in the region," Department of Foreign Affairs Secretary Albert del Rosario said in his statement at the ASEAN Foreign Ministers' Meeting (AMM) Retreat held in Siem Reap, Cambodia on January 11.

"The Philippines eagerly awaits ASEAN's response to this proposed meeting of claimant states," he added. The DFA chief also reiterated that a rules-based approach is the only legitimate way in addressing disputes in the West Philippine Sea and that the dispute settlement mechanism established in the United Nations Convention on the Law of the Sea (UNCLOS) is the fundamental principle of the rules-based approach being espoused by the Philippines.

Del Rosario said the rules-based approach under UNCLOS also calls for the resolution of disputes through peaceful means, thus the Philippines proposed to ASEAN the Zone of Peace, Freedom, Friendship, and Cooperation (ZoPFF/C) as the actionable framework to clarify and segregate the disputed land features from the non-disputed waters of the West Philippine Sea, and in the process, address the issue of the 9-dash line.

The Philippines also has stated that it is considering third party adjudication, arbitration or conciliation, as appropriate, in the context of the dispute settlement mechanism of UNCLOS.

"Thus far, we are pleased that fellow ASEAN Member States support the rules-based approach, which essentially calls for:

(1) Solving the issue peacefully,

(2) In accordance with the rule of law, particularly international law and UNCLOS, and

(3) The multilateral participation of various stakeholders to account for the various perspectives and interests. These principles are the very bedrock of our international order. We have all furthermore agreed that we have to move forward with the Code of Conduct," Del Rosario said.

Del Rosario also stated that as the ASEAN is working on building the ASEAN Community, "it behooves Member States to now play a positive and meaningful role to solve the disputes peacefully in accordance with the Treaty of Amity and Cooperation (TAC) and reach a stage whereby we are able to help resolve sensitive issues decisively without letting such issues fester and adversely affect the progress of our bilateral or multilateral relations."

He further noted that all are eager to move forward on the Code of Conduct to resolve the issues in the West Philippine Sea and the Philippines is ready to accept a Code of Conduct that calls for the primacy of international law, including UNCLOS, in resolving the disputes in the West Philippine Sea.

"It is ready to accept a Code of Conduct that espouses the concrete and actionable activities to foster cooperation in the West Philippine Sea in the context of international law," Del Rosario said.

He also stressed that the Philippines is willing to commit to a Code of Conduct that addresses the very core of the issue and that is to define, clarify, and segregate the disputed areas from the non-disputed areas in the West Philippine Sea.

"I understand that these elements may require considerable focus to achieve our objective. As I have often expressed, ASEAN is at a critical juncture of playing a momentous role for the resolution of the disputes in the WPS/SCS. We must now muster the will as an ASEAN Community to face these sensitive issues with determination," he said.

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Philippines ranked 8th friendliest paradise in the world -survey

Philippines – It may not always be that "fun" in the Philippines contrary to a widely circulated Department of Tourism (DOT) slogan but we are more than consistent in being warm and friendly as people.

A recent international survey conducted between May and July 2011 involving 3,385 expatriates in 100 countries reinforced this notion, with the Philippines being ranked eighth friendliest.

The top three spots were occupied by New Zealand, Australia, and South America.

According to Lisa Wood, head of marketing for HSBC, which spearheaded the survey, the study was meant to capture important insights into an expat's life.

"As the largest global survey of expats, Expat Explorer allows us to capture invaluable insights into expat life and how it differs from country to country, continent to continent and from an expats' home country of origin," says Wood, via a report on www.forbes.com that published the result of the rankings. "We want to be a business that truly understands its customers so that we can ensure our products and services meet their needs effectively."

To determine the friendliest country, the survey isolated results in four categories: ability to befriend locals, success in learning the local language, capacity for integrating themselves into the community, and ease in which they fit into the new culture.

New York-based expat coach Heather Markel says all of these play into the ability of expats to create a new support structure, which is among the biggest challenges when relocating.

"Because a majority of expats are so focused on closing the life they are leaving, they end up depressed at some point after relocating, because by not focusing on creating their new life before arriving, they end up with 'nothing'—no friends locally, nothing familiar, a feeling of loss," says Markel, via the same report. "Other challenges include learning a new language, experiencing new foods, more or less convenience, how genders might be treated. The sense of loss for what they liked in the culture they left can be a big challenge, as can a changed lifestyle."

Seventy-five percent of respondents living in New Zealand reported that they were integrating well in the local community; in Australia it was 77% and in South Africa 79%.

"New Zealanders as a whole seem like happy people, and that translates into friendly, helpful and kind people," notes American expat Kim Brinster who was also interviewed for the same piece.

Other positive aspects of New Zealand living, she says, include a "pitch-in-and-help mentality," as well as navigable government and health-care systems.

Dov Golan, an Israeli national who choose to live in the Philippines and for 14 years already  -- can't stop gushing about the people of his adopted country.

"They're very friendly and they're very polite they're very easy to talk to and they're warm people," said he in an interview with GMA News.

Golan, who is married to a Filipina, is not planning to leave anytime soon.

The same GMA report said that Malacanang welcomed the result of the HSBC survey hoping that it would help bolster the DOT's campaign to boost tourism in the country.

But which countries landed at the lowermost rung of the survey?

The least friendly country for expats was the United Arab Emirates. And among the countries that expats consider "most challenging" were Saudi Arabia, Qatar, Russia and India.

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The Philippines' rising economy to Star in 2050

BANKING giant Hongkong and Shanghai Bank (HSBC) announced recently that the Philippines can be one of the world's top economies by 2050.

It is encouraging that this independent and credible financial organization sees the enormous potential our country has for economic growth, and that if this potential is nurtured, the outcomes will be concrete and tangible and will provide benefits for the nation and its people.

In the HSBC report, the Philippine economy is forecast to rise 27 places upward to 16th rank less than 40 years from now.

The Philippines was also marked as one of 26 "fast-growth" countries expected to register "an average expansion of more than 5 percent per year."

Despite a "very low level of development," the report says the Philippines is among those countries that has made "great progress in improving fundamentals. As they open themselves to the technology available elsewhere, they should enjoy many years of 'copy-and-paste' growth ahead."

The Philippines was noted as being one of the "truly remarkable hot spots in Asia…. The star performer, however, is the Philippines, where the combination of strong fundamentals and powerful demographics gives rise to an average growth rate of 7 percent for the coming 40 years."

Noted as contributing to the country's progress are the "improvements in its economic infrastructure," with the "fast-growing population…expected to increase the country's labor force, which likewise benefits from the quantity and quality of education."

HSBC projected the Philippines's average gross domestic product growth at 8.4 percent from 2010 to 2020, 7.3 percent from 2020 to 2030, and 5.8 percent from 2040 to 2050.

The report stated further the following top 5 projections:

1. China is expected to become the No.1 economy,
2. United States will follow China,
3. India
4. Japan  
5. Germany

Germany will remain  in the top five, in that order.

Many smaller economies will move up, such as:

• Peru (to improve by 20 places),
• Egypt (+15)
• Nigeria (+9)
• Malaysia (+17)
• Ukraine (+19)

Many European countries may decline, especially those in Northern Europe, because of a smaller work force and the rise of developing nations—

• Denmark (-29)
•  Norway (-22)
• Sweden (-20)
• Finland (-19).

Among the factors that contribute to long-term economic growth are demographics—the size of the working population—and the opportunities for each individual to be more productive.

In order to create a milieu conducive to promoting productivity, there must be the following significant factors: opportunities for education, democratic governments, and strong rule of law.

Factors that could derail progress are war, energy-consumption constraints, climate change, and barriers to population movement across borders.

The report comes with a caveat: "We openly admit that behind these projections we assume governments build on their recent progress and remain solely focused on increasing the living standards for their populations….Of course, this maybe an overly glossy way of viewing the world."

The Philippines under President Aquino is already putting those measures for growth in place. Economic growth showed a strong uptick in 2011, when the Philippine Stock Exchange closed with a 4.1-percent gain. This made it Asia's best-performing economy for the year.

In another report, to create a climate conducive to more growth, the Association of Southeast Asian Nations is working toward "a unified trading bloc with free-flow capital by 2015." Electronic-trading links will be set up in Asian countries to "allow more investments and raise liquidity," starting in 2012 in Malaysia, Thailand and Singapore, followed later by the Philippines.

In addition, the Aquino administration has taken larger steps toward fighting graft and corruption via the Good Governance and Anti-corruption Cluster (GGAC) Plan for 2012-2016, which was approved on January 3. It will simplify and integrate the government's anti-graft and -corruption systems.

Necessary legislations and policies will be reviewed and strengthened, while digitization and innovations in government operations will be promoted, backed by an aggressive advocacy and communication campaign. Once these measures are in place, the government expects the business and economic environment to improve further.

President Aquino said as much in his toast at the vin d'honneur at Malacañang on January 13 (the ceremony is the Palace's traditional New Year's celebration for the diplomatic corps):

"We have already made great strides in our fight against corruption and poverty, as well as in our thrust to create a progressive economic climate guided by fair and honest practices. Local and foreign groups have acknowledged our triumphs by investing in our country, by lauding our efforts in open governance, and by supporting our programs.

"At the heart of our work for the next year lies a desire to secure for our people a better standard of life, and a brighter future. And all of you present here today are crucial to achieving that goal.

"This year, we will strengthen the programs that work for our countrymen, such as those in education, health, housing, and others like our Conditional Cash Transfer Program.

"We will not relent in our quest to hold accountable those who seek to perpetuate the culture of impunity in our country.

"We will continue to ensure the safety of our nation: by upgrading our defense capabilities, and by working to achieve peace, while pursuing lawless and criminal elements.

"We will continue to sustain the growth of our economy and create opportunities for employment.

"These are not without their challenges, but I am confident that so long as we stand together and remain consistent in our service to the public, our countrymen will be behind us every step of the way, as we work toward success."

* * *

PCSO News: the PCSO will be taking care of the bills of the victims of the Pantukan, Compostela Valley, landslide who are in government hospitals, and will also be assisting the victims of the December 10 plane crash in Barangay Don Bosco, Parañaque City.

The Beechcraft nine-seater was en route to San Jose, Mindoro, when it crashed at 2:15 in the afternoon in a residential area. According to the police report, there were 13 casualties and 15 to 20 houses, including the F. Serrano Elementary School, were burned. Sixteen persons were injured.

The PCSO is also working on a quick-response disaster- management initiative and is drawing up guidelines for this in consultation with the Department of Social Welfare and Development. More PCSO branch offices will also be opened nationwide in order to better address the needs of its beneficiaries.

Atty. Rojas is the general manager of the PCSO. E-mail: jrojas@pcso.gov.ph.

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BHP Billiton & 12 Oil Firms Start Drilling oil and gas in the Philippines

Philippines — Dubbing it as "the period of upturn in upstream petroleum investments" in the country, the Department of Energy (DoE) has announced that 10 to 12 wells have been committed by service contractor-firms in their drilling programs this year.

In a statement to the media, Energy Undersecretary Jay Layug disclosed that they have cornered "10-12 firm commitments to drill exploration wells and three workover wells from our service contractors."

This includes the following:

• Blade Petroleum for the Cadlao block in Northwest Palawan;
• Galoc Production Company (GPC) in Service Contract 14C, also in Northwest Palawan;
• Philippine National Oil Company-Exploration Corporation (PNOC-EC) in Cagayan basin;
• Gas2Grid in SC 44 and China International Mining Petroleum Company Limited (CIMP) at SC 49 in Visayas basin;
• Frigstad Energy at SC 50 in NW Palawan;
• Pitkin Petroleum at SC53 in Mindoro-Cuyo prospect; and
• BHP Billiton at its two blocks in Southwest Palawan.

Layug emphasized these drilling programs are part of the work commitments submitted by the service contractors to the energy department. "These are existing work programs under their respective service contracts," the energy official said.

Exploration wells are drilled to discover oil or gas and if these can be developed at commercial quantity; while workover wells may be pursued to improve flowrates, at proven finds or existing production fields.

Service contractors are required to submit a seven-year work program with the DOE; and that could entail drilling of several wells to determine if the oil or gas finds would merit declaration of commerciality.

While the department has not given exact figure on the investment costs, it was indicated that the rule of thumb for offshore deep well drilling could range from $80 million to $100 million; while those onshore may command an investment of $30 million to $50 million per well.

"We have seen an upturn in Philippine upstream petroleum industry this year as a result of current high-oil price market condition and the efforts of the DoE to revitalize the industry," Layug has noted.

For the oil and gas investors, the equilibrium price they have been hinging their investments on has been at $80 per barrel. Obviously though, current price trends have already surpassed that immensely.

Layug specified that the energy department's intent of re-igniting interests in upstream petroleum ventures is in line with the Aquino administration's thrust "to focus on resource development as a long-term plan of action in the hopes of finding indigenous oil and gas resources to reduce our dependence on imported petroleum and mitigate effects of oil price volatility."

The department will be offering 15 new petroleum service areas in biddings scheduled until July 2012.

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Philippines seeks another ASEAN support for possible China meet on Spratly row

Recently, the Philippines protested early year 2012 for another China's invasion to the Philippines territory in Sabina Shoal which is only a 82 Miles from the Philippines Main Island.

China rejected the protest of the Philippines and pronounced that they owned everything in the West Philippines Sea and voiced that it will call for another negotiation to settle Spratly.

The Philippines is committed and lead for the resolution of the Spratly and called anew for the support of the Association of Southeast Asian Nations (ASEAN) in having a meeting with China to resolve the territorial row involving the Spratly Islands.

Foreign Affairs Secretary Albert del Rosario made the call at the ASEAN Foreign Ministers' Meeting Retreat at Siem Reap, Cambodia, where he reiterated his stand for a rules-based solution to the problem.

"In the context of the Philippine position and the background on this issue, the Philippines reiterates its proposal that a meeting be held as soon as possible among the claimant states including China, under the guidance of ASEAN, to resolve the conflicting claims in the WPS (West Philippine Sea) based on the rules-based regime of (the United Nations Convention on the Law of the Sea). This proposal for constructive engagement should be acceptable to all," Del Rosario said.

He added the Philippines calls on all ASEAN Member States to endorse this proposed claimant states' meeting, which the Philippines is ready to host.

"We would also welcome other ASEAN Member States to host this meeting if they would like to unequivocally express their support for and advance a rules-based approach in the region," he said.

The text of his statement delivered last Jan. 11 was posted Sunday on the DFA website.

Aside from the Philippines and China, other claimants to the Spratlys include Taiwan, Brunei, Malaysia, and Vietnam. Of these, the Philippines, Brunei, Malaysia and Vietnam are members of ASEAN.

Only legitimate approach

Del Rosario maintained a rules-based approach is the only legitimate way in addressing disputes in the West Philippine Sea.

He said the dispute settlement mechanism established in the UNCLOS is the fundamental principle of the rules-based approach being espoused by the Philippines.

"I have emphasized this at the 44th ASEAN Ministerial Meeting (AMM) and 18th ASEAN Regional Forum (ARF) and again at the last ASEAN Foreign Ministers' Meeting, all held in Bali. This rules-based approach under UNCLOS also calls for the resolution of disputes through peaceful means. For this reason, the Philippines proposed to ASEAN the Zone of Peace, Freedom, Friendship, and Cooperation (ZoPFF/C) as the actionable framework to clarify and segregate the disputed land features from the non-disputed waters of the West Philippine Sea, and in the process, address the issue of the 9-dash line," he said.

He also said the Philippines has stated it is considering third party adjudication, arbitration or conciliation, as appropriate, in the context of the dispute settlement mechanism of UNCLOS.

On the other hand, he said the Philippines also proposed during the November AMM a meeting of claimant states in the West Philippine Sea to specifically include China, to resolve these claims and define the non-disputed and the disputed areas for the purpose of establishing a Joint Cooperation Area.

The rules-based approach calls for: solving the issue peacefully in accordance with the rule of law, particularly international law and UNCLOS the multilateral participation of various stakeholders to account for the various perspectives and interests.

"As we work on building the ASEAN Community, it behooves Member States to now play a positive and meaningful role to solve the disputes peacefully in accordance with the Treaty of Amity and Cooperation (TAC) and reach a stage whereby we are able to help resolve sensitive issues decisively without letting such issues fester and adversely affect the progress of our bilateral or multilateral relations," Del Rosario said.

Code of conduct

Del Rosario also said all are eager to move forward on the Code of Conduct to resolve the issues in the West Philippine Sea.

He said the Philippines is ready to accept a Code of Conduct that calls for the primacy of international law, including UNCLOS, in resolving the disputes in the West Philippine Sea.

"It is ready to accept a Code of Conduct that espouses the concrete and actionable activities to foster cooperation in the West Philippine Sea in the context of international law. And, lastly the Philippines is willing to commit to a Code of Conduct that addresses the very core of the issue and that is to define, clarify, and segregate the disputed areas from the non-disputed areas in the West Philippine Sea," he added.

He pointed out ASEAN is at a critical juncture of playing a momentous role for the resolution of the disputes in the West Philippine Sea.

"We must now muster the will as an ASEAN Community to face these sensitive issues with determination. As you may appreciate, we believe that this is the only way for all of us to move forward and be able to demonstrate ASEAN's leadership in the global community," he said.

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Aquino Govt appeals to US to remove 'withholding element' in military aid

The Philippines appealed to the United States to remove the "withholding element" from its military assistance program, saying there is no factual basis for perception of worsening human rights situation in the country.

Foreign Affairs Secretary Alberto Del Rosario made the appeal as he met yesterday with visiting members of the US House Appropriations Committee at the Department of Foreign Affairs (DFA) with whom he discussed bilateral issues including defense, security development assistance and good governance.

"We talked about areas of continued assistance and what priority request we have from the US," Del Rosario told reporters following the meeting with the US lawmakers.

Del Rosario said he requested the withholding mechanism in the US Foreign Military Financing (FMF) dropped as the US Congress continues to withhold a portion of US assistance to the Philippine military until the Philippine government meets certain conditions related to solving and prosecuting cases of extrajudicial killings.

"As a result, their thinking is that we are not quite up to standard in terms of our human rights standard in the Philippines. We are trying to live those standards so that withholding element can be removed," Del Rosario said.

"We are asking them to revisit that because we do not like the idea that we are being portrayed as a human rights violator which is not factual. As a matter of fact, we are trying to address that perception and we do have very specific mechanisms to be able to do that," he added.

US Ambassador Harry Thomas Jr. informed representatives of Philippine-based human rights groups during a discussion at the US Embassy on Oct. 21, 2011 about the withholding of US assistance to the Philippines.

Human Rights Advocates (PAHRA) chairperson Teodoro de Mesa led representatives of human rights groups during the meeting with Thomas.

Thomas said the US Embassy was encouraged by the pledge that President Aquino made in his 2010 State of the Nation Address to curb extrajudicial killings in the Philippines.

Thomas noted however that the 2010 US Department of State Human Rights Report on the Philippines included assertions of cases of extrajudicial killings that occurred under the Aquino administration.

He expressed concern regarding the slow pace of investigations and prosecutions of past cases.

Thomas said that from 2007 to 2010, the US government extended $3.5 million in grants to the Philippine government and non-government organizations to strengthen their capacity to address human rights violations.

He said the US government would continue to press for progress on addressing past cases and the ongoing problem of extrajudicial killings in the Philippines.

The human rights groups' representatives informed Thomas of their ongoing projects and suggested measures that could significantly improve human rights conditions in the Philippines.

Del Rosario, meanwhile, said he also followed up the Philippine government's request for third Coast Guard Cutter and a squadron of F16 fighter jets under defense articles.

"We are following up on our request for our third Coast Guard Cutter. As you know the second one we are awaiting delivery. We are also following up our request for the F16. We are asking for a squadron to be considered for the Philippines," he said.

Del Rosario said that in December, the US expressed willingness to help the Philippines obtain a squadron of F-16 to improve its defense capability but stressed there is no discussion yet on stationing of US naval vessels in the Philippines.

He noted plans to station US navy ships in the region including Singapore but there was no discussion yet of stationing of naval vessels in the Philippines.

Del Rosario and Defense Secretary Voltaire Gazmin will visit the US in February or March to meet with their counterparts.

Del Rosario said the US is ready to help improve the Philippines' defense capability.

He said the planned acquisitions had already been discussed with US Secretary of State Hillary Clinton and other US officials.

Clinton delivered during her visit to Manila in November a strong message of assurance and support for the Philippines in protecting its maritime domain and improving territorial defense. Clinton delivered her message on the deck of an American warship that arrived in Manila for her visit.

The territorial conflict and heightened tensions between China and the Philippines over the resource-rich West Philippine Sea (South China Sea) remains a critical factor in bilateral relations between China and the Philippines.

The Philippines formally accepted in May the turnover of a US Coast Guard (USCG) Hamilton-class cutter acquired by the Philippines through the US Foreign Military Sales program. The cutter was refurbished and renamed BRP Gregorio del Pilar. It is now the largest patrol ship in the Philippine Navy.

Reference: Philstar News

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Malacañang Palace grateful for Philippines’ improved ranking on economic freedom

Malacañang Palace  expressed gratefulness over a report that Philippines had risen in the world economic rankings to 107 from 115 previously despite a challenging global economic environment published January 14, 2012.

It also welcomed the HSBC Expat Explorer Survey result, which ranked the Philippines as the eighth friendliest country in the world.

The 2012 Index of World Economic Freedom released on Thursday said among 179 countries rated, the Philippines had the 107th freest economy with a score of 57.1. The report said the country's score was 0.9 point higher than last year, attributable in large part to a significant improvement in business freedom.

Deputy presidential spokesperson Abigail Valte said over dzRB that the Philippines improved its ranking because of economic expansion and the efforts of the government to pursue legislative reforms to enhance the business environment.

"We are also happy to note that even the report itself, an assessment from (a) third party, notes that our regulatory efficiency has been notably enhanced. This is what President Aquino has always been saying - that we are really after efficiency and government. We have been trying to streamline systems. Business registration that will take anywhere between 24 to 48 hours can now be done in 15 minutes. These are the small things that can help businessmen who want toinvest in the Philippines," Valte said.

"And the other good news, we're also happy to note that in one of the surveys conducted by HSBC... And this is why we believe that it really is more fun in the Philippines like what the Department of Tourism is saying," Valte said.

Asked whether the WEF report could counter the claims of former president and now Pampanga Rep. Gloria Macapagal-Arroyo against the Aquino administration, Valte said "these are (assessments) by third (parties) who have no axes to grind against the present administration."

"Some people will say, of course the administration will always promote what is good, what is good with the economy and people on the opposite side of the fence will almost, will always promote what is good about them and what is bad about the present. But at least this is a third party assessment and we can see the recommendations and positive findings as well the points that the third party has also raised," Valte said.

Valte said the WEF report cited that despite some progress, "corruption continues to undermine prospect for long-term economic development and the judiciary, which remains susceptible to political interference and it does provide effective protection for property rights or transparent enforcement of the law."

Valte said President Aquino himself had assured the international community that he would continue to be relentless in the fight against corruption and run after those perpetuating the culture of impunity.

"While some people chose to oversimplify and say that corruption is not the only problem, that's true, there are a lot of other problems that we need to face but this one has big impact on our economy," she said.

"This is what we have been concentrating on again in the past year," she said.

"As regards the comment on the judiciary which remains susceptible to political interference, that is up to a separate branch of government to determine how they will take that observation...On the part of the executive, what the President is saying is when it comes to prosecution, your case must be strong, never let the delay come from the executive branch. Now when it comes to the adjudication of cases, that is something that is up to the judiciary to resolve. Before it takes six years to have conviction or acquittal, it is the judiciary that must take steps to ensure that there will be speed (in the) dispensation of justice," Valte said.

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Gloria Arroyo a ‘huge failure’ of the Philippines’ Economy

Malacañang Palace turned the tables on former President Gloria Macapagal-Arroyo and branded her administration as "a huge failure" a day after the Arroyo camp came up with a critique citing the Aquino administration's supposed shortcomings in running the economy after taking over in 2010.

"Repeatedly, the performance of her government, the economic as well as the political, has been exposed as a huge failure over the past nine and a half years," Budget Secretary Florencio Abad told reporters.

Abad, who served as Aquino's campaign manager in the 2010 election, said that Arroyo had refused to acknowledge that she turned over a messy state of affairs to her successor.

"She was given the rare opportunity through People Power to lead differently but she turned her back on her big opportunity. We ended up suffering from those years of very bad governance," he added.

No research needed

Abad said one wouldn't have to do a thorough research to dispute the points raised in Arroyo's paper such as the substantial growth rate inherited by the Aquino government.

"The question is, what legacy? The numbers may have grown but if you look at the poverty incidence, it has worsened. Look at the employment numbers, it has worsened during their time," Abad pointed out.

In contrast, Abad cited the renewed confidence the credit ratings agencies have given the Philippines under President Aquino.

"In the 18 months of this presidency, we had five upgrades in our rating, the last one was the Standard and Poor's. We hope within the next two to three months there can be a ratings upgrade," Abad said.

"What is different from this administration's economic policy is that it is not detached from the measures on the improved governance especially transparency and accountability in the use of public funds which was absent totally in the last administration," he added.

The economy, student

In her paper titled, "It's the Economy, Student," Arroyo took a jibe at President Aquino's "obsessive pursuit" to demonize her and erase her legacy.

The paper was read by a University of the Philippines economics professor at a press conference at the Manila Hotel on Thursday.

According to her spokesperson, Elena Bautista-Horn, Arroyo wrote the paper "in her spare time" during her recuperation, hospitalization and hospital detention between October and December 2011.

According to Arroyo, the gains achieved by previous administrations "are being squandered in an obsessive pursuit of political warfare meant to blacken the past and conceal the dark corners of the present dispensation. Rather than building on our nation's achievements, this regime has extolled itself as the sole harbinger of all that is good."

Arroyo's claim that the "politics of division" was to blame for the current economic slump did not sit well with Abad.

"Politics of division? The Filipino people, as surveys and surveys show, have never rallied solidly behind a President as they have shown in support of P-Noy's (Aquino's nickname) anticorruption, good governance and poverty-reduction programs," Abad said.

Vote of confidence

Abad pointed out that even the international community had given the Aquino administration its "vote of confidence."

The budget chief then reminded Arroyo that she, too, could learn a thing or two from Aquino, an economics graduate and a student of Arroyo at Ateneo de Manila University.

"One important lesson that Arroyo should learn from P-Noy is that you cannot separate good governance from economic expansion. One needs the other," said Abad.

In her paper, Arroyo defended the gains of her nine-year presidency but took potshots at the performance of the Aquino administration.

Arroyo, now the representative of the second district of Pampanga who is under hospital arrest for electoral sabotage, accused Aquino of the very ills that bedeviled her presidency and for which she was unable to resolve.

She noted that Aquino was embroiled in "too much" politics. She decried the alleged "use of black propaganda and character assassination" to try to erase her legacy and undo the gains of her nine-year term.

Source:  Philippine Daily Inquirer

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In The Know: Philippines' Eagle - Monkey Eating Eagle

WINGED VICTORY. The Philippine Eagle's wing span of 7 feet is world's broadest. Pag-asa shows off at the eagle sanctuary in Davao City. EDDIE JUNTILLA/PHILIPPINE EAGLE

MANILA, Philippines—"Pag-asa" was conceived through artificial insemination and was laid in November 1991 by captive Philippine Eagle Diola using mate Junior's semen.

It was Diola's fourth fertile egg and the first to hatch.

The severe power crisis in Mindanao threatened the egg's survival, with the generator that automatically provided electricity during power outages conking out once every four hours.

Then Eagle Camp manager Domingo Tadena and his staff had to wrap the egg in a water-filled rubber pack, the temperature of which was carefully calculated and maintained.

A quake also briefly threatened Pag-asa's survival, as did an apparent thinning of the egg. The timely application of colorless nail polish proved effective in hardening the shell.

Pag-asa's eventual hatching in 1992 was the result of 10 years of research and experimentation on the country's national bird.

American Express Bank adopted Pag-asa in 1992 and has been providing financial aid to the Philippine Eagle Foundation (PEF), a Davao-based nonprofit, nongovernment organization dedicated to saving the endangered species and its rainforest habitat.

Before Pag-asa, only 37 eagles had been identified to exist in the Philippines—13 in captivity and 24 associated with wild nests.

As part of the efforts to boost the dwindling eagle population in the wild, Kabayan, an eagle also bred and hatched in captivity, was released to the wild in 2004—the first captive-bred eagle thus released.

The Philippine Eagle is a 3-foot-high rainforest raptor with a wingspan of 7 ft—the broadest in the world. Deforestation and hunting have threatened its survival.

It is estimated that only 400 pairs of these eagles remain in the islands of Luzon, Samar, Leyte and Mindanao. Thirty-six eagles, 18 of them bred in captivity, are housed at the PEF Center located at the foothills of Mt. Apo in Davao.

Ana Roa, Inquirer Research

http://newsinfo.inquirer.net/128151/in-the-know-philippine-eagle

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