VIRTUAL REALITY: APEC and the new Trans-Pacific Partnership

By Tony Lopez

AT the summit of leaders of states and territories that straddle the Pacific Ocean, the most important topics that should have been discussed are countries that do not belong to the 21-member Asia-Pacific Economic Cooperation (APEC) bloc—Iran and eurozone nations, particularly Italy and Greece.
China was a hot topic, but only because the host of this year’s summit, United States President Barack Obama, seemed to blame the Chinese currency, the yuan—it is devalued (undervalued is more appropriate term) by 20 to 25 percent, according to him—for the current joblessness in America and the diminished competitiveness of US exports vis-à-vis China.
China, by the way, has the biggest representation in APEC, thanks to a technicality—mainland China, Chinese Taipei (Taiwan), and Hong Kong. In this particular group, members are economies, not states or countries.
That is not counting Singapore, which is veritably a Chinese city, and Malaysia, which has an economically dominant Chinese community.
So when Obama brings up a topic as sensitive as revaluing the yuan, he naturally goes nowhere.
China is also being cajoled into contributing to a European rescue fund for debt-ridden eurozone countries—Portugal, Ireland, Italy, Greece, and Spain, or PIIGS.
China has $3.2 trillion reserves, arguably the world’s largest foreign currency cash hoard. Additionally, Taiwan has $400.77 billion; Hong Kong, $277.2 billion; and Singapore, $242.28 billion.
The US has $146.58 billion foreign reserves—paltry by the standards of rich APEC members like Japan ($1.137 trillion) and Russia ($516.8 billion).
Eurozone nations, meanwhile, have combined reserves of just $886.35 billion, which is not even enough to pay for Italy’s $2.6-trillion debt.
It seems that collectively, the 17 countries of the euro are technically bankrupt. Their bloc owes more in foreign debts than what they earn from their exports of goods and services and income from foreign dividends and royalties. That is why they need to create a financial firewall or total bailout fund of one trillion euros ($1.4 trillion). China is supposed to contribute substantially to this rescue fund.
As of June 30, 2010, the US has foreign debts of $14.8 trillion; the European Union (EU), $13.72 trillion; the United Kingdom, $8.98 trillion; Germany, $84.7 trillion; France, $4.69 trillion; Italy, $2.23 trillion ($2.6 trillion today); and Spain, $2.16 trillion.
After nearly a quarter century, APEC still has to assert its relevance and explain what it is all about. The original idea, it seems to me, is that APEC is supposed to promote harmony and increased trade in the world’s most dynamic region.
The Asia-Pacific bloc’s 21 members span four continents and collectively account for 40 percent of the world’s population, 54 percent of the world gross domestic product (GDP), and 44 percent of total world trade.
To me, those who benefit the most from APEC are businessmen who are able to secure an APEC card—a visa-free travel card that speeds up processing at immigration counters in the bloc’s member economies.
As for the peoples of APEC, they have been battered by two major financial crises—the 1997 Asian Financial Crisis that was triggered by the run in Thailand and the 2008 financial meltdown and recession that was triggered by the subprime mortgage collapse in America.
All is not lost with APEC, though. Actively being pursued is the Trans-Pacific Partnership (TPP), an ambitious, next-generation Asia-Pacific trade agreement.
“The TPP will boost our economies, lower barriers to trade and investment, increase exports, and create more jobs for our people, which is my number-one priority,” Obama said when he addressed the APEC summit on November 12 in his home state of Hawaii.

“Along with our trade agreements with South Korea, Panama and Colombia, the TPP will also help achieve my goal of doubling US exports, which support millions of American jobs,” he added.
Japanese Prime Minister Yoshihiko Noda has expressed his country’s interest in the TPP. Obama readily welcomed the Japanese participation, noting that “eliminating the barriers to trade between our two countries could provide a historic opportunity to deepen our economic relationship, as well as strengthen Japan’s ties with some of its closest partners in the region.”
The TPP, the prestigious Economist magazine wrote also on November 12, “has suddenly emerged as the most promising trade liberalization initiative since the Doha Round of world trade talks stalled in 2008. On November 11, Japan, the world’s third-largest economy, announced its intention to join America and eight other countries in negotiating what its advocates hope would emerge as the new gold standard for free trade in the world’s most dynamic economic zone.”
The ten-country deal, according to Reuters, will cover a market 40 percent bigger than the EU. The agreement calls for free movement of almost everything, except labor.
With the eurozone in shambles, The Economist pointed out, the TPP “would further shift the world’s center of economic gravity from the Atlantic Ocean to the Pacific.”
Noda’s “decision may spur other big economies, such as Canada, to make renewed efforts to join the negotiations, which currently include America, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. If America and Japan can pull off such a deal, the TPP could challenge China’s own free-trade push in the region, which revolves around the Association of Southeast Asian Nations (Asean), South Korea and Japan, rather than the Pacific Rim,” the magazine said.
“By joining with America, Japan also hopes to influence global technological standards in industries like electric cars and clean energy, rather than having those heavily swayed by China,” it added.

FROM THE CAPITOL: Building a Greener California

By Senator Leland Yee

 

Earlier this year, I authored and introduced legislation in Sacramento that close a loophole that allowed work to be done without prevailing wage on public infrastructure projects offered at so-called “no cost” by Energy Service Companies (ESCOs).
Typically, an ESCO conducts an audit in order to come up with a design to generate energy efficiency or develop energy on a public facility. Upon approval by the public agency, the ESCO typically pays for the design, construction management, and commission of the project with the understanding that whatever savings are realized from the project are then used to pay back the ESCO.
For example, if a school district can save $10,000 a year by installing energy efficient lighting and windows, the ESCO would front the cost of that upgrade, but the school district would transfer the savings to the ESCO for a fixed time period. Fortunately, Senate Bill 136, which was signed into law by Governor Jerry Brown. will ensure workers receive prevailing wages on energy service contracts of public agencies. 
  Despite the fact that the work is being completed on public infrastructure and will be paid back from energy savings that otherwise would have been utilized by the public agency, some have argued that such work is exempt from the prevailing wage requirements.  SB 136 removes any doubt that prevailing wage must and should be paid on these types of public infrastructure improvements. This bill will ensure all public projects are completed using prevailing wage for workers.  SB 136 will officially become state law on January 1, 2012.
While I am pleased the Governor signed the prevailing wage bill, it is very disappointing that he didn’t ensure corporations keep their promises.  SB 364 is critical to holding big businesses accountable for job creation promises in exchange for any tax breaks.
Specifically, SB 364 would have required all future tax breaks related to job creation to have clear goals and performance measures. If a corporation failed to meet those promises, the state could recoup the tax credit.
A working mother on CalWORKS or disabled senior receiving in-home supportive services has to jump through numerous bureaucratic hoops to receive minimal life-sustaining benefits, but if you are a big corporation looking for scarce tax credits, no one asks any questions.  California taxpayers deserve better.
Tax expenditures for corporations are often created with the argument that they will create jobs and fuel economic development. Yet under existing law, it is nearly impossible to track which companies are receiving tax credits and if those subsidies are meeting the goals of the expenditure. Corporations are even permitted to take taxpayer money and relocate to other states.
It is wrong for California to provide upwards of $14 billion in corporate tax credits without transparency and accountability.   If a business fails to keep its word, or in some cases even moves out of the state, taxpayers should not have to foot the bill. This legislation was a win-win for Californians – corporations either help get people back to work or the state recoups the tax break and we can save our state’s safety net.
Many California businesses receive major credits and exemptions from dozens of state taxes. In fact, the tax credits passed as part of the September 2008 and February 2009 budget “solutions” will cost the state $8.7 billion in lost revenue from 2008-09 to 2014-15 and ongoing $2-2.5 billion yearly. 

STREET TALK: A Gathering Of Game Changers

By Greg Macabenta

The 22ND Philippine Advertising Congress will be held next week, from November 16 to19, at the Watersports Complex in Pili, Camarines Sur. Like past congresses, this one has an impressive and dramatic theme, “Change the Game.”
It proceeds on the presumption that the advertising industry – in this case, composed of ad agencies, advertisers, media, and companies providing production, research and other marketing services - is a catalyst for change.
According to congress chair, Alexandra Prieto-Romualdez of the Philippine Daily Inquirer, the organizing committee envisioned a gathering of professionals and practitioners that “will hopefully inspire change.”
What that “change” is can only be surmised. One can deduce that it has to do with changing the way advertising is created, the way new media vehicles are utilized, and the way products and services are conceived, developed and promoted to consumers.
I was, frankly, hoping that “change” would also have something to do with our national life, particularly the values of our people. As I had hoped in past congresses, I continue to hope that this 22nd Congress would devote some of the creative, production, media and marketing talent overflowing in the conference to the kind of change that finally appeared possible with the assumption of the presidency by Noynoy Aquino.
I am attending the ad congress. I have a number of reasons for doing so. First of all, I simply can’t get the advertising bug out of my system. It isn’t easy getting over half a century of being on the frontlines. I will relish being with colleagues, young and old. I’m sure I can still learn a few tricks from them.
The second reason for attending the congress is the fact that my book, “How To Make A Benta – Anecdotes, Lectures & Articles from the Advertising Wars,” has just been released and, I understand, will be available in the National Book Store branches in Naga and Legaspi, as well in other branches nationwide.
While most books on advertising use case studies in the American setting, this book provides valuable insights on the making of several classic advertising campaigns, many of which I personally created. The book is also a virtual history of Philippine advertising over the past 50 years. It should prove interesting reading for both students and oldtimers alike.
The third reason, of course, is my hope that, somehow, in some future ad congress – if not in this one - the industry will finally do something to achieve the kind of change that our country and our people need.
Indeed, every ad congress is a Gathering of Game Changers, this 22nd Congress,  no less. Some of the brightest, sharpest, most creative, most innovative brains in the country populate the advertising and marketing industry. The efficiency with which these brains create products and conceive services and move them from conception to consumption is the key to economic development and growth.
Imagine what this brain power could do if focused on changing what has been described as our “damaged culture.” Imagine what the creative minds gathered in the congress could do if used to create a campaign that will awaken the Filipino to the vast natural and human resources of our country. A campaign that will imbue in every citizen a caring attitude and an entrepreneurial zeal that will enable them to effectively and profitably harness these resources.
Imagine what this Gathering of Game Changers could do if they decide to devote some of their time and talents to stirring the nobility of our people. Strengthening their love of country. Their spirit of patriotism. Implanting in their hearts the value of honest labor and inspiring them in the pursuit of excellence.
I was the chairman of the 8th Philippine Advertising Congress in November 1983, a few months after a bona fide Game Changer named Benigno Aquino, Jr. was brutally murdered. For that reason, I decided on a congress theme summed up by the acronym, ROAR - Risks, Opportunities and Responsibilities of the ad industry in the face of the crisis confronting the country.
Ninoy had returned in an effort to effect the kind of change for the Philippines that was being jeopardized by the terminal illness of President Marcos and the presence of ambitious individuals who had a different concept of change.
He did, in fact, help to achieve that change. By dying for it. His death set ablaze the smoldering embers that the Marcos dictatorship tried desperately to smother. Change happened with the revolt at EDSA.
But it was, sadly, a temporary one. Our culture had been so badly damaged that a benign revolution failed to repair it.
Two years ago, when preparations for the 21st Ad Congress were being made, I appealed to the organizers to consider the significance of the forthcoming presidential elections and the opportunity that the advertising industry had to prepare the Filipino people for it.
The country had just been ravaged by typhoon Ondoy and the advertising industry and private businesses responded heroically to the crisis. They raised money and relief goods and actively helped in alleviating the suffering of the victims.
Encouraged by this, I wrote a column item that expressed the hope that the organizers would use the ad congress as an opportunity to harness the industry’s talents to help educate the Filipino people on the need for militancy and for voting wisely in the 2010 presidential elections.
 Dodie Lucas, one of the prime movers of the Advertising Foundation, was the very first to respond to my appeal. He offered to bring it up with the congress organizing committee. But this was to no avail.
 As it turned out, it was the Ad Foundation that eventually took up the challenge, launching a competition that honored the advertisers and the print and broadcast media that mounted outstanding campaigns on voter education and clean elections.
 In October 2010, the Ad Foundation presented the Gintong Haligi Award to the DDB Group and its client, PLDT-Smart Foundation, for the Ako Mismo cam­paign; ABS-CBN for Boto Mo Ipatrol Mo; Philippine Star for The Vote 2010 and Smart Vote; Philippine Seven Corporation for 7-Elections; and Bombo Radyo for The Vote 2010.
Change did, in fact, happen as a result of the presidential elections. Since Noynoy Aquino’s assumption of the presidency, there has been renewed hope in finally cleaning up the Aegean stable that our government has become.
 But more change is required. And that change has to be initiated first of all – and most of all – among our children. Their minds are still malleable. The proper values can be implanted in them. But these values need to be nurtured up to adulthood. And this is where the creativity and the skills of the advertising industry can be put to such effective use.
It can be done. It has been done.
 Over a century ago, an individual, a Game Changer, used his creative gifts to effect change. Meaningful change. Dr. Jose Rizal wrote Noli Mi Tangere and El Filibusterismo.
 And Change happened.

(gregmacabenta@hotmail.com)

VIRTUAL REALITY: The Liwayway-Oishi story: 27 factories in eight countries (Pt. 2)

 From Tony Lopez

(In today’s column I am running the second part of the text of Liwayway Marketing CEO Larry Chan’s presentation before President Aquino and his official delegation during the presidential visit at the sprawling Liwayway factory complex in Shanghai, China, Sept. 2, 2011.)

BEING able to build a positive reputation in China has also allowed us to purchase 70 percent of a retail company in Shanghai with about 30 store locations in the city. It is called Lao Tong Sheng, a retailer of traditional Chinese products such as mushrooms, nuts, etc. Our Chinese partner is a district level state-owned company that chose us when they were privatizing some of their enterprises. We believe this is because of the successful partnerships we have had in the past and these state-owned enterprises still prefer to look for partners they can be comfortable with.
A star enterprise
We have also been consecutively awarded as one of the 100 Star Overseas Chinese Enterprises by the Overseas Chinese Affairs Office of the Central Government. This Office is a ministerial level department of the government with the main purpose of servicing and promoting linkages among the overseas Chinese around the world.
Aside from providing assistance in investments opportunities, they also help resolve any issues faced by the business. They also provide assistance in non-business matters such as cultural exposures, networking, education, or helping overseas Chinese get to know more about their roots in China.
According to one information we received, more than 70 percent of China’s foreign direct investments come from overseas Chinese investors.
Tapping emerging markets
My father’s focus when he entered China, Vietnam and Myanmar in the late ‘90s was to tap the emerging markets while they are still in their early stages. Being early poses its challenges as the infrastructures are still undeveloped, but in the example of Vietnam, we started in Ho Chi Minh by building a factory inside the Vietnam-Singapore Industrial Park.
This proved to be crucial as the management of the industrial park was able to provide valuable support while we were still trying to learn the local landscape. Now our Vietnam operations have expanded to four factories, with one in Hanoi, a second factory in the same industrial park in Ho Chi Minh, and a fourth one located in Danang located in central Vietnam.
Thailand and Indonesian markets are much more challenging markets because they are much more developed, but these are important markets to us as well.
Today, we feel that India and Cambodia are the young emerging markets similar to Vietnam in the 90s.
Philippine operations
Our Philippine operations remain very active with recent expansions in Cagayan and Cebu in 2002 and 2003, respectively. Just this year we also started operations in our Tarlac factory. The Philippines remains a very good consumer market for us with the highest consumption rate of our products among the countries we are presently in.
Our factory in Cavite also provides critical support to all our factories by manufacturing and supplying many of our machineries that are built to our specifications. We appreciate the talent and passion of our engineers towards learning new things and quality workmanship.
Supplies for our group’s exports to markets where we do not have factories all come from the
Philippines. In our case, the Philippines has several significant advantages, such as the numerous consolidators in our country making export of low value products like ours much more efficient.
Another advantage is the English packaging we use in the Philippines, which eliminates the need for us to make modifications when serving the export markets.
These are some of the limited experiences we have had as we continue to explore opportunities within Asia.

STREET TALK: MACARTHUR’S A-DAY

From Greg Macabenta

To many Americans and Europeans, D-Day, the 6th of June, is of major importance in world history – important enough to bring to the continent droves of tourists, mainly veterans of World War II who fought in the European theater, and their families. It was on that day in 1944 when allied forces stormed the beaches of Normandy on the way to liberating Europe from the Nazis.
 It was in that context that I suggested to Tourism Secretary Mon Jimenez, on my recent visit to Manila, that October 20 be viewed as an opportunity for tourism promotion. It was on that day in 1944 when U.S. forces, led by Gen. Douglas MacArthur, landed at Red Beach in Palo, Leyte to start the liberation of the Philippines.
To veterans of the war in the Pacific, that day is as significant as D-Day. In fact, for families of the thousands of U.S. and allied soldiers buried in the American cemetery in the former Fort Bonifacio, and those who fought in Bataan, Corregidor, Leyte and the many war fronts across the archipelago, October 20 should inspire an annual sentimental journey to the Philippines – similar to that one made by Gen. MacArthur and his wife, Jean, in 1961.
 To MacArthur, October 20 was A-Day or Attack-Day. The day he would make good on his solemn vow, “I shall return!”
This fact would have been buried in the landfill of history had Filipino-American Rudy Ascercion not accidentally discovered a letter of an American sailor to his sweetheart, telling her, “Tomorrow is A-Day.”
 Asercion is executive director of a San Francisco non-profit, the West Bay Pilipino Multi-Service Center, and a commissioner of the Veterans War Memorial Commission. He was rummaging through the archives of the Commission when he came upon the sailor’s letter.
 Intrigued, Asercion dug further and confirmed from records that A-Day was MacArthur’s code name for the start of the liberation of the Philippines.
Asercion didn’t stop there. He brought this to the attention of the White House, with the support of Yolanda Stern, President Emerita of the Federation of Filipino-American Chambers of Commerce, and Maj. Gen. Antonio Taguba (Ret.), the FilAm general who blew the lid off the U.S. Army human rights abuses at Abu Ghraib prison in Iraq.
Acknowledging that A-Day was an occasion that merited honors, Pres. George W. Bush issued a proclamation to that effect. On October 20, 2004, the first official commemoration of A-Day in America was held at the Herbst Theater, War Memorial Bldg. in San Francisco. Foreign Affairs Secretary Albert del Rosario, who was then Philippine Ambassador to Washington, graced the occasion, along with officers of the American Legion, Philippine consular officials and FilAm community leaders.
Asercion, Taguba and Stern did not stop at this decidedly significant achievement. That same year, they lobbied for the California legislature to pass a bill that would include in the social science curriculum of the state’s Department of Education the vital role played by Filipino soldiers in World War II. Recognition of this role was pivotal in the granting of benefits to Filipino veterans by the U.S. Congress and the Obama presidency – a role denied by the Rescission Act of 1946.
Unfortunately, despite positive action by the state legislature, then Gov. Arnold Schwarzenegger vetoed a bill that would have given our veterans the recognition due them.
 Unfazed, Asercion, Taguba, Stern and a more empowered FilAm community, including KAYA, a youth group that actively helped in the Obama presidential campaign, lobbied the current legislature and Gov. Jerry Brown. They finally succeeded.
 Last October 8, Brown signed AB 199, co-authored by Assembly Pro Tempore Fiona Ma and Assemblyman Paul Cook, that urges the inclusion of Filipino World War II veterans in the 7-12 public high school curriculum in California.
According to Asercion, California is one of three states authorized to print textbooks for use in schools across the U.S. This could mean that the inclusion of Filipino veterans in textbooks used in the state will result in their inclusion in social studies in schools all over the country.
 Like the Energizer bunny, Asercion just keeps going and going and going. To commemorate A-Day this year, he arranged for a luncheon in honor of 12 surviving Filipino veterans. Held at the War Memorial Building, the old soldiers and their wives had community leaders waiting on them.
 Donning waiters’ aprons were Carmen Colet, president of the San Francisco FilAm Chamber of Commerce; Rodel Rodis, president of U.S. Pinoys for Good Governance and former president of the San Francisco Community College Board, and Yolanda Stern. I also volunteered to play waiter at the event.
Gen. Taguba, who resides in the Washington DC area, could not make it to the luncheon. But he continues to plug for Filipino veterans in his current key position in the Department of Veterans Affairs.
 Also unable to attend was Assembly Pro Tempore Fiona Ma who was expected to announce, with Rodis, Stern and Asercion, the proposed curriculum mandated by AB-199.
 The curriculum will include personal testimonies of Filipino veterans recorded on audio and videotapes, as well as historical records that Asercion has doggedly exhumed from the archives of the Commission. At the luncheon, several old soldiers were videotaped relating their war experiences.
For a number of reasons, the observance of A-Day this year was not be as high-profile or as impressive as the first one held in 2004. It’s easy to point out why this is so. Blame is so much easier to identify.
But the fact is that Rudy Asercion, Gen. Tony Taguba and Yolanda Stern have lighted an ember that continues to glow, despite community apathy. It just deserves to be fanned more vigorously, indeed, more creatively. The good news is that, at Seasons' Marketplace in Milipitas, Ben Menor and other South Bay community leaders also scheduled a commemoration of A-Day on Sunday, October 23.
Like the annual Filipino festivals that I also pointed out to Mon Jimenez as presenting rich opportunities to promote the Philippines and Philippine tourism, the ember of A-Day and AB-199 can be made to burst into flame.
We hope that more zealous and caring individuals will step up to fan the ember and help dispel the darkness of our anonymity in America and in the rest of the world.
(gregmacabenta@hotmail.com)

FROM THE CAPITOL: Prevailing Wages on Workers

From Sen. Leland Yee

Governor Jerry Brown has signed into law legislation to ensure workers receive prevailing wages on energy service contracts of public agencies.  Senate Bill 136, which I authored and itroduced, closes a loophole that allowed work to be done without prevailing wage on public infrastructure projects offered at so-called “no cost” by Energy Service Companies (ESCOs).
Typically, an ESCO conducts an audit in order to come up with a design to generate energy efficiency or develop energy on a public facility. Upon approval by the public agency, the ESCO typically pays for the design, construction management, and commission of the project with the understanding that whatever savings are realized from the project are then used to pay back the ESCO.
For example, if a school district can save $10,000 a year by installing energy efficient lighting and windows, the ESCO would front the cost of that upgrade, but the school district would transfer the savings to the ESCO for a fixed time period.
  Despite the fact that the work is being completed on public infrastructure and will be paid back from energy savings that otherwise would have been utilized by the public agency, some have argued that such work is exempt from the prevailing wage requirements.  SB 136 removes any doubt that prevailing wage must and should be paid on these types of public infrastructure improvements. This bill will ensure all public projects are completed using prevailing wage for workers.
While I am pleased the Governor signed the prevailing wage bill, it is very disappointing that he didn’t ensure corporations keep their promises.  SB 364 is critical to holding big businesses accountable for job creation promises in exchange for any tax breaks.
Specifically, SB 364 would have required all future tax breaks related to job creation to have clear goals and performance measures. If a corporation failed to meet those promises, the state could recoup the tax credit.
A working mother on CalWORKS or disabled senior receiving in-home supportive services has to jump through numerous bureaucratic hoops to receive minimal life-sustaining benefits, but if you are a big corporation looking for scarce tax credits, no one asks any questions.  California taxpayers deserve better.
Tax expenditures for corporations are often created with the argument that they will create jobs and fuel economic development. Yet under existing law, it is nearly impossible to track which companies are receiving tax credits and if those subsidies are meeting the goals of the expenditure. Corporations are even permitted to take taxpayer money and relocate to other states.
It is wrong for California to provide upwards of $14 billion in corporate tax credits without transparency and accountability.   If a business fails to keep its word, or in some cases even moves out of the state, taxpayers should not have to foot the bill. This legislation was a win-win for Californians – corporations either help get people back to work or the state recoups the tax break and we can save our state’s safety net.
    Many California businesses receive major credits and exemptions from dozens of state taxes. In fact, the tax credits passed as part of the September 2008 and February 2009 budget “solutions” will cost the state $8.7 billion in lost revenue from 2008-09 to 2014-15 and ongoing $2-2.5 billion yearly. 

NO LIMITATIONS: Should the U.S. Ambassador apologize or resign for saying that 40% of foreign male visitors are sex tourists?

By Atty Ted Laguatan

Within the context of a round table discussion with appellate court justices on combatting human trafficking, U.S. Ambassador Harry K. Thomas was quoted as saying: "We know that 40% of foreign men who travel to the Philippines, including Americans, do so for sexual tourism."
Concerned that this statement might affect the tourist trade, Assistant Secretary Domingo Enario of the Department of Tourism in knee-jerk fashion, immediately questioned the figures cited by Ambassador Thomas.
Senators Ponce Enrile,  Panfilo Lacson and Chiz Escudero, also took pot shots at the Ambassador.
Enrile said: "...I don't think the statistics are correct."
Lacson took a stronger position: "He should at least clarify if he was misquoted by media. Otherwise, he should apologize to the Filipino people or pack his bags and go home for being tactless, offensive and being undiplomatic."
Escudero said that Thomas' statement was an embarrassment to the country.
Should Ambassador Thomas apologize or resign for saying 40% of male foreign visitors are sex tourists?
Let's be fair and look at the facts and reality. Our critical politicians and government officials appear to be confused and are missing the important issues here.
They do not deny that illegal, commercial sex is widespread and so easily accessible in the Philippines. This is an open secret.
Instead, they focus on the minutiae of statistical data. And so therefore, if one study says that only 39% of foreign men engage in sex tourism, they will point an accusing finger at the Ambassador and say: "You are wrong."
Understandably,  it is probably impossible to have exact accurate statistics of just how many foreign men come to the Philippines for sexual tourism activities. How will the researcher or statistician proceed? He can't hang around the Ninoy Aquino International Airport  foolishly asking newly arrived male tourist  questions like: "Dude, did you come to the Philippines  mainly for sex?";  or "Sir, are you a pedophile?"
However, the presence of so many foreigners in prostitution joints disguised as  nightclubs, girlie bars and massage parlors in different Philippine cities and towns  - in Pasay, Makati, Quezon City, Angeles, Olongapo, Cebu, etc. -  affirms the undeniable fact that a huge number of foreign male tourists come to the Philippines for commercial illegal sex.
Thus, the real  issue is not so much the pinpoint accuracy of the 40% figure cited by the Ambassador but whether or not a sizable number of male foreign tourists travel to the Philippines for illicit sex.
If it is the statistical data that was at issue, then if say,  it is determined that the  percentage of foreign me who travel to the Philippines is actually  more than 40% but 43% - critics of the Ambassador's statement would still say he is wrong - with them entirely  missing his point - which is, that too many foreign male tourists come here for illicit sex.
Even if only 5% of foreign male visitors come to the Philippines for illicit commercial sex, that is still too much.
In the first place, before launching criticisms and catcalls,  let's look at  why Ambassador Thomas' made this statement. Did he want Filipinos to look bad? Did he have any intentions to embarrass the country? Does he hate Filipinos?
Negative to all three questions. The humanist Ambassador Thomas  takes the campaign against human trafficking seriously. In speaking engagements, he frequently speaks of the many innocent young people condemned into terrible  situations forced by human traffickers to become  prostitutes  or slave labor workers.
In a speech last week in a  conference of overseas Filipino leaders from around the globe he said: "Human sex trafficking is unconscionable. It's not just a Philippine problem, we also have it in the United States...this is a global challenge."
It was within the setting and context of a discussion with appellate justices on the campaign against human trafficking when he made this foreign male sex tourist statement. It was taken out of context by his critics. Clearly, he made the statement not to embarrass the Philippines but to help Filipinos.
Any thinking  person who does not easily impute malice on others will clearly see the Ambassador's good intentions. His point: Many foreign male tourists come to the Philippines for illicit sex. If the market for these sex tourists continue and even increase, because of the profit involve - innocent young Filipinos will continue to be trafficked and victimized. We need to protect them.
He was not trying to drive away legitimate tourists. But what he hopes is that tourists who come for illicit sex especially pedophiles - do not come. He even encouraged the Justice Department to arrest Americans if they engage in illicit sex.
Ambassador Thomas' position is totally in line with the Department of Tourism's announced program of presenting wholesome nature and culture based offerings to foreign tourists. Certainly, we don't want the money of foreign sex tourists that destroy the bodies and souls of our people. Instead of criticizing him, Department of Tourism officials should thank and honor him.
The irresponsible statement by Senator Lacson for him to apologize or pack up is totally uncalled for. He has done nothing for which he needs to apologize and correctly affirms that he will not apologize. He should not.
It is not Ambassador Thomas' statement that should be a cause of embarrassment to us because he was merely stating the obvious. Instead, it should  be the failure of our lawmakers and corrupt law enforcers to stop widespread illegal commercial sex. This situation encourages foreign sex tourists to continue to come.
One of the U.S.' top career diplomats, Thomas became the first African American Ambassador to the Philippines. Previously, he was Director General of the Foreign Service. He has an impressive background: He graduated from the Jesuit Holy Cross College and did graduate studies at Columbia University.  He was Ambassador to Bangladesh and also held  posts in different countries: India, Zimbabwe, Nigeria, Peru. He also served as Executive Director in the State Department and was Special Assistant to the former Secretary of State Condooleeza Rice.
A remarkable linguist, he speaks Spanish, Urdu, Bangla and now also speaks Tagalog - with a slight New York accent.
The previous  Ambassador Kristie  Kenney was a hard act to follow. She was very popular with Filipinos. She attended social functions, did interviews on popular TV shows, met with local leaders and watched Ateneo versus La Salle basketball games. She  secretly cheered for the Ateneo team and was an avid fan of basketball star Chris Tiu.
But in the one year and a half that Ambassador Thomas has been here, he has made a tremendous impact on Philippine affairs.
Let's  just  look at some of his other most recent  public statements which clearly indicate his goodwill towards Filipinos.
Just days ago,  he commented: "The US is very proud to ally itself with an honest government." He praised President Aquino for bringing honesty back to government.
Let's look at the significance and impact of this statement. First, it's an honest diplomatic way of saying that the past administration provided dishonest leadership. Indeed, during the past administration, the Philippines had the reputation of being the second most corrupt country in Asia and arguably maybe the most corrupt as new discoveries of corruption continue to emerge.
With Ambassador Thomas' statement to the world that we now have an honest President who's working hard to have an honest and transparent government - the world now looks at us with more respect.  Investors are now more inclined to invest in the Philippines. It also adds to  Filipinos having more faith in their government.
The Ambassador also gave a short statement two weeks ago which I believe was quite remarkable indicating that he is a true humanist. He stated: "This week marks the 39th anniversary of the imposition of martial law. It was not the  finest hour for the Philippines nor the United States."
About 30,000 people were victims of the dictatorship. Ambassador Thomas' statement was a surprisingly honest admission and condemnation  of the United States' role in propping up a corrupt and brutal dictatorship. For this alone, he deserves our highest respect.

Note: The California State Bar honors Atty. Ted Laguatan as one of only 29 lawyers in the U.S. officially certified continuously for more than 20 years as Expert Specialists in Immigration Law. He also does accident injuries, wrongful death and complex litigation. For communications: (San Francisco area) 455 Hickey Blvd. Ste. 516, Daly City, Ca 94015 tel 650 991-1154 fax 650 991-1186 email laguatanlaw@gmail.com

FROM THE CAPITOL: Airbag Repair Fraud

By Sen. Leland Yee

 

Earlier this week, Governor Jerry Brown signed into law a bill to protect consumers from fraudulent repair of car airbags. Senate Bill 869, which I authored and introduced, would create a new crime of $5,000 and/or one year in prison for an automotive repair dealer who purports to replace a deployed airbag but who in fact fails to fully repair and restore it.
According to a study by the National Highway Traffic Safety Administration (NHTSA) the most common reason for a malfunctioning airbag was that the airbag was missing or never replaced after a previous crash.
A recent report by National Public Radio (NPR) showed some dealers and repair shops even stuffed airbag compartments with aluminum cans, shoe leather, packaging materials, and even paper.
SB 869 will save lives.  Some of the stories we have heard involving airbag repair, or lack thereof, are simply unconscionable. This law will help ensure consumers are protected and body shops are accountable.
“It is long overdue to have real penalties for deceiving consumers and putting lives at risk,” said Clarence Ditlow, Executive Director of the Center for Auto Safety. “Senator Yee’s SB 869 will address these numerous occurrences of auto repair fraud, particularly where consumers pay over $1,000 for replacement airbags and don’t get them.”
While the exact number of fraud cases is impossible to determine, several cases demonstrate the need for the legislation.
In 2009, 10News in San Diego reported on a father and mother who lost their son due to air bag fraud and were awarded a $15 million dollar judgment against the owner of an auto repair shop. Their son was killed in a car accident as result of a fraudulent airbag repair in which the body shop filled the steering wheel with paper instead of a new airbag.
In 2003, a Houston woman was badly injured and her mother killed after a collision in which the passenger airbag was simply stuffed back in and taped shut and the driver’s side airbag was completely missing.
Also in 2003, a student in Seattle died in a crash after her previously deployed airbag was simply cut out and a fake dashboard inserted.
In addition to the Center for Auto Safety, SB 869 was supported by Certified Automotive Parts Association, Consumer Federation of California, Consumers Union, Trauma Foundation, and the Alliance of Automobile Manufacturers, among others.
SB 869 officially becomes law on January 1, 2012.

VIRTUAL REALITY: The greatness of Steve Jobs

By Tony Lopez

STEVEN Paul Jobs, the man who I think is the greatest tycoon of our time, died peacefully in his sleep in the presence of family members, on Wednesday, Oct. 5, 2011, in California, (Thursday morning Oct. 6, 2011 in Manila). Born February 24, 1955, he was 56. He died from complications from pancreatic cancer.
“Steve’s brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives,” Apple’s board said in a statement. “The world is immeasurably better because of Steve.”
Jobs battled cancer in 2004 and underwent a liver transplant in 2009. He took another leave of absence in January—his third since his health problems began—before resigning as CEO six weeks before he died. Jobs became Apple’s chairman and handed the CEO job over to his hand-picked successor, Tim Cook.
“Steve was among the greatest of American innovators - brave enough to think differently, bold enough to believe he could change the world and talented enough to do it,” mourned President Barack Obama.
“By building one of the planet’s most successful companies from his garage, he exemplified the spirit of American ingenuity. By making computers personal and putting the Internet in our pockets, he made the information revolution not only accessible, but intuitive and fun.”
Obama added:“And by turning his talents to storytelling, he has brought joy to millions of children and grown-ups alike. Steve was fond of saying that he lived every day like it was his last. Because he did, he transformed our lives, redefined entire industries and achieved one of the rarest feats in human history: He changed the way each of us sees the world.”
“The world has lost a visionary. And there may be no greater tribute to Steve’s success than the fact that much of the world learned of his passing on a device he invented,” the US president noted.
Jobs’s greatness lies in the impact of his work. He remade seven major industries—the PC, software, music, telephony, movies, television and cloud computing, so that today, billions enjoy a better life and lifestyle.
His inventions or innovations were enthralling in their design and technology and marvels of simplicity and user friendliness: Apple II, Macintosh, the iPod, iTunes, iMovie, iPhone, the iPad.
The last two products have yet to make their full run in the market.
Together, the iPhone and the iPad will probably kill the laptop computer as we know it today, along with the digital camera, the television business, and most other kinds of electronic toys and gadgets.
“The products he’s shepherded into existence with single-minded visionread like a Top 10 list, or a Top 50 list, of the world’s most successful inventions: Macintosh. iPod. iPhone. iTunes. iMovie. iPad,” said David Pogue of The New York Times six weeks before Jobs died.
As of March 2011, 108 million iPhones had been sold. As of June 2011, 25 million iPads had been sold. The iPod was introduced in 2001. Jobs increased the market price of Apple from $10 to $400 a share.
The iPhone was launched in 2007. Since that time, Apple share price had tripled.
The iPhone combines a mobile phone, a widescreen iPod with touch controls, and an Internet communications device in a single handheld product.
In June 2010, Apple introduced the iPhone 4 featuring an all-new design, FaceTime video calling, a new high resolution Retina™ display, a 5 megapixel camera with LED flash and front-facing camera, high definition video recording, Apple’s A4 processor and a 3-axis gyroscope. A new iPhonemodel was introduced this October.
In January 2010, Apple introduced the iPad, a multi-purpose mobile device for browsing the web, reading and sending email, viewing photos, watching videos, listening to music, playing games, reading e-books and more.
Jobs fused humanities and arts with engineering and technology to produce products of great elegance, simplicity, user friendliness, power and versatility.
“Technology alone is not enough,” explained Steve at the end of his speech introducing the iPad 2, in March 2011. “It’s technology married with liberal arts, married with humanities, that yields the results that make our hearts sing.”
Jobs also proved that you don’t need a formal education to succeed in business or in life. He created the riddle: which is the better course—humanities or engineering. He excelled in both, without earning a degree in either. Many of his management qualities should probably taught in the business school—vision, persistence, customer focus, attention to detail, savvy marketing, dictatorial grip on product development and marketing.
So successful had Jobs been at Apple that on Aug. 9, 2011, the company became, briefly, the world’s most valuable publicly held enterprise at $343 billion, higher than the $334 billion valuation of Exxon MobilCorp. Apple today is worth more than Microsoft and Intel combined, the two companies that made the PC a commodity and initially stole the thunder from Jobs’s Apple. Jobs himself was worth $8.3 billion.
Apple today has a market price of $348 billion, down from its 12-month peak of $422.86 billion. The company will probably be hurt by Jobs’ demise. No other company had its fortune and fortune inextricably intertwined with the vision and persona of its CEO.
Apple changed the game in the smartphone market with its iPhone, andthe e-book market with its iPad touch-screen device.
Steve once said “Death is very likely the single best invention of Life. It is Life’s change agent. It clears out the old to make way for the new.”
Jobs took his personal motto from the final page of Whole Earth Catalog. The book, he told graduates at at Stanford in 2005, ends with the admonition “Stay Hungry. Stay Foolish.”

STREET TALK: Harnessing Overseas Filipino Media

 By Greg Macabenta

The Commission on Filipinos Overseas, chaired by Sec. Imelda Nicolas, is holding the Global Summit of Filipinos in the Diaspora at the Philippine International Convention Center.  The three-day conference (from September 27 to 29), organized in cooperation with U.S. Pinoys for Good Governance (USPGG) and National Federation of Filipino American Associations (NaFFAA), is an ambitious effort to harness the potentials of overseas Filipinos for national development.
NaFFAA, of which I used to be national chairman, is the largest coalition of Filipino organizations in America. USPGG, with TLC Beatrice CEO Loida Nicolas Lewis and lawyer-activist Rodel Rodis, as chair and president, respectively, started out as U.S. Pinoys for Noynoy-Mar, which campaigned actively for the Aquino-Roxas tandem in the last presidential elections. It metamorphosed into its present structure on the premise that, having helped PNoy win, Filipino-Americans should help him succeed.
While overseas Filipinos – both OFWs and those who have become either permanent residents or naturalized citizens of their adopted countries – have already been actively helping the Motherland, mainly with billions in remittances, there is still much that they can do for the Philippines in the areas of health, education, investments, technology transfer and tourism development. This is the thrust of the Global Summit.
But to be in a better position to help the Philippines, overseas Filipinos need to be empowered in their adopted countries – socially, economically and politically. In the U.S. this is being achieved, although laboriously. In Europe, the Middle East and around Asia, most of our kababayan are still trying to emerge from servitude, reminiscent of the Pinoy experience in America in the early 1900s.
An empowered overseas Filipino community can be a potent force. This was demonstrated in the lobbying efforts in the U.S. Congress that resulted in the passage of benefits for Filipino World War II veterans, and in the support given to then Philippine Ambassador to the U.S. and now Secretary of Foreign Affairs Albert del Rosario in his fight to keep the Philippines in the investment portfolio of CalPERS. Medicare portability, the Save Our Industries Act and the Spratleys controversy are three issues of importance to the Philippines that Filipinos in the U.S. are now actively focusing on.
Tourism promotions is one major concern where an empowered overseas Filipino community can be of great help.
In this regard, overseas Filipino media – mainly newspapers and TV - can be among the most potent vehicles for helping achieve empowerment – but only with a better appreciation of their tremendous capabilities and how to put them to effective use.
There is a lot of talk about exploiting New Media, but this is a field that still needs to be fully understood and mastered. Social media, dominated by FaceBook, is still like a Tower of Babel, with sometimes-heroic and mostly-clumsy attempts at communications management mixed with a flood of irrelevant chatter.
On the other hand, overseas Filipino print media and TV are just waiting to be put to proper and effective use.
I’m delivering a paper on this topic at the Global Summit. My thesis is simple enough. If you’re a Pinoy newcomer in a foreign country and you want to know how you can meet your kababayan or where you can buy bagoong or eat Jollibee or how you can send money or a balikbayan box home, you only need to pick up a Pinoy newspaper. You can find them, whether you’re in Tel-Aviv, Singapore, Sydney or London and most especially if you’re in California, New York or Chicago.
Pinoy media, particularly the international TV operations of GMA Network and ABS-CBN, will also keep you abreast of the latest showbiz gossip and the political circus in the Philippines.
But if you want to know about vital issues in your adopted country that affect you as an overseas Filipino, you’re out of luck. You’ll hardly pick up any stories in overseas Filipino media on developments in the White House or on Capitol Hill or in the parliaments or state assemblies or city halls that are written or reported in terms relevant to you.
Overseas Filipino media should logically be skewing mainstream news to your needs, but they don’t. They’re too busy telling you what’s happening in the Philippines. ABS-CBN produces Balitang America and its equivalent in Europe, the Middle East and Australia, which report on news and issues relevant to the Filipino communities in their specific coverage areas. But these are limited efforts and only serve to underscore the unmet needs of overseas Pinoys.
The mainstream media report the news in general terms. Whether or not they specifically affect you as a Pinoy is up to you to figure out. In the wake of the 9/11 terrorist attack, most Filipinos in the U.S. failed to appreciate the impact of the Patriot Act on them – in many cases, to their grief.
The bottom line is that, instead of helping Filipinos assimilate and integrate, Filipino media tend to perpetuate their status as mere visitors and strangers in their adopted countries.
Small wonder that, in America, where over 40 percent of people of Filipino descent are U.S.-born, the youth know very little about their parents’ Motherland.
For mainstream societies and governments in countries where Filipinos reside in large numbers, Filipino media should be the logical source of information on the Philippines and our people. Filipinas Magazine, published by Mona Lisa Yuchengco for 13 years and by me for almost five years, did exactly that. It told of Filipino achievers in the American mainstream and generated pride among young FilAms. Unfortunately, the magazine lost too much money and had to close down.
As far as I can tell, only Filipino Reporter in New York has taken steps to build a link with the mainstream. Mayor Michael Bloomberg of New York City and State Governor Andrew Cuomo both write regular columns in the newspaper.
Years ago, Alex Esclamado, as publisher-editor of Philippine News, used his newspaper as a bully pulpit to promote the interests of the Filipino community, including farm workers’ rights, equitable benefits for Filipino World War II veterans, and the right of Filipino doctors, accountants and other professionals to practice their professions in the U.S. He got results.
 Unfortunately, overseas Filipino media have difficulty surviving, even under benign economic conditions – worse, in recessionary times. Understaffed and underfunded, they take the point of least resistance and resort mostly to “download journalism” or picking up stories from online editions of Manila publications. Not surprisingly, only Pinoys are interested in them. Why would the White House or Capitol Hill be interested in Pinoy showbiz tsismis or the inquisition in the Philippine Senate?
In these times, when our government can use every available resource to promote Philippine interests abroad, efforts should be undertaken to tap overseas Filipino media. Hopefully, the Global Summit of Filipinos in the Diaspora will appreciate their potentials and take the necessary steps to harness them.
The Commission on Filipinos Overseas may be the logical government agency to take on this challenge.

(gregmacabenta@hotmail.com)

VIRTUAL REALITY: 39 years after, the lessons from martial law

By Tony Lopez

THIRTY-NINE years ago this month, Ferdinand E. Marcos declared martial law. The day was September 21, a Friday in 1972 but it was two days later, September 23, when Marcos announced it.
I was a victim of martial law. I lost my cozy Manila Times job as a senior business reporter and construction editor. The Times then had 70 percent of the market, more than the circulation of the three other dailies combined.
By October 1972, I had joined the Mainichi Shimbun, Japan’s oldest newspaper, as Manila stringer, to help locate the Japanese straggler Hiroo Onoda, after his colleague was killed by army soldiers on Lubang island the previous month, September. Onoda surrendered in March 1974.
I also joined The Times Journal in 1973 and became its business editor in 1976, the youngest business editor then. In 1978, l joined Asiaweek and became its senior correspondent for 25 years. My Asiaweek work gave me my TOYM in international journalism.
The martial law rule regime had a healthy respect for foreign correspondents. On the other hand, the military censors didn’t understand business journalism. So I thrived—both as a foreign correspondent and as a business journalist.
Looking back, I see martial law was about leadership and taking charge.
In the early 1970s, Philippine society was riven by discord and class war. Only 100 families, the oligarchs, ruled the economy and its politics. Social inequity was revolting. Communist guerillas were active in the countryside. Muslim separatists were arming themselves, using petrodollars. The communists were about to overtake South Vietnam and from there, it was feared, leap-frog to the rest of Southeast Asia.
Marcos was the subject of assassination plots. Marcos deployed the powers of the presidency against his enemies and the enemies of the state.
Martial law enabled Marcos to impose strongman rule for nine years, from September 1972 to 1981 when he was supposed to have lifted it, and to rule by decree for 14 years, from September 1972 to February 1986 when he was ousted by a four-day Church-backed People Power revolt that eventually inspired some 30 other countries ruled by despots to return to democracy.
Was Marcos’s martial law bad? The answer is yes and no.
Yes, because martial law destroyed the Philippines’ carefully cultivated image as the show window of democracy of Asia.
But that democracy had been made fragile by a greedy economic and political elite and by a widening gap between the rich and the poor which a nascent but growing communist guerilla movement, inspired and funded by Red China, and by a stirrings of self-determination by an even more impoverished Muslim population, tried to exploit to their advantage.
Yes, because martial law led to many abuses and human rights violations never before experienced since the four years of the Japanese occupation.
Martial rule also freed the military from the barracks to intervene in purely military affairs and share power with the civilian government.
After martial law, no president was ever safe from coup attempts and military destabilization. Marcos had one coup—a very successful one, leading to his ouster. Corazon Aquino had nine, all unsuccessful with two of them bloody, and Joseph Estrada had one, also very successful.
No, because martial law was in the main, good for the country, especially during its first five years.
It instilled discipline among the people, much unlike today’s matuwid na daan concept of President Benigno Aquino III. People went home early and spent more time with their families. The drug lords were checked by the televised killing by musketry of a notorious drug syndicate leader.
More than 200,000 firearms were seized from private hands. Private armies were disbanded, almost overnight. With the ensuing peace and stability came the economic payback.
In 1973, the Philippines produced a rice surplus. In 1974, the country scored its highest ever, by then, annual GDP growth rate of 9.8 percent.
With the commodities boom, exports ballooned. Martial law conditions enabled the country to cope with the debilitating effect of the first major global energy crisis, the quadrupling of the price of oil in 1974.
In 1975, Marcos granted naturalization to ethnic Chinese businessmen by decree.
“It allowed droves of ethnic Chinese to become citizens in a few months’ time, simply upon the dictator’s signature, empowering them to own lands and enter industries constitutionally banned to foreigners, thereby releasing their entrepreneurial energies,” wrote Inquirer columnist Rigoberto Tiglao in his Sept. 22 column, “Demystifying Marcos’s martial law regime”.
Marcos united the elite economic and political class. He united an archipelago of 7,017 islands.
Tiglao wrote: “For the Castillian-descended elites, Marcos reminded them of a dictator they admired: Generalissimo Francisco Franco who defeated the Spanish communists.”
“The Sorianos’ and Ayalas’ conglomerates grew by leaps and bounds during martial law. It was our economic and ideological elite that embraced and supported the martial law regime, and made up its main pillar—more than the military,” concluded Tiglao, a self-confessed communist guerilla during the martial law years.
The lesson to draw then from Marcos’s nine years of martial law and 14 years of rule by decree: Leadership and taking charge.
Interviewed by this writer shortly after he was sent into exile in Hawaii, Marcos said one of his legacies was “saving the Philippines from communism”, which was then leapfrogging from Vietnam into Indochina and into the rest of Southeast Asia.
Of course, in 1975, Vietnam fell into the hands of the communists. The Vietnamese didn’t export communism. Instead, they buckled down to work and adopted the capitalist system.
Today, Vietnam grows better economically, attracts more foreign investments and draws more tourists than the Philippines. Vietnam’s secret? Leadership and focus.
One other lesson of martial law: An incompetent president does as much damage as a corrupt but capable president. Yet, Filipinos look kinder on incompetent presidents than corrupt and competent ones.
Perhaps, in the next ten years, Marcos’s presidency will be seen in a better light and show him for what he really was—a very good but flawed president.

STREET TALK: Harnessing Overseas Filipino Media

By Greg Macabenta

The Commission on Filipinos Overseas, chaired by Sec.Imelda Nicolas, is holding the Global Summit of Filipinos in the Diaspora at the Philippine International Convention Center.  The three-day conference (from September 27 to 29), organized in cooperation with U.S. Pinoys for Good Governance (USPGG) and National Federation of Filipino American Associations (NaFFAA), is an ambitious effort to harness the potentials of overseas Filipinos for national development.
NaFFAA, of which I used to be national chairman, is the largest coalition of Filipino organizations in America. USPGG, with TLC Beatrice CEO Loida Nicolas Lewis and lawyer-activist Rodel Rodis, as chair and president, respectively, started out as U.S. Pinoys for Noynoy-Mar, which campaigned actively for the Aquino-Roxas tandem in the last presidential elections. It metamorphosed into its present structure on the premise that, having helped PNoy win, Filipino-Americans should help him succeed.
While overseas Filipinos – both OFWs and those who have become either permanent residents or naturalized citizens of their adopted countries – have already been actively helping the Motherland, mainly with billions in remittances, there is still much that they can do for the Philippines in the areas of health, education, investments, technology transfer and tourism development. This is the thrust of the Global Summit.
But to be in a better position to help the Philippines, overseas Filipinos need to be empowered in their adopted countries – socially, economically and politically. In the U.S. this is being achieved, although laboriously. In Europe, the Middle East and around Asia, most of our kababayan are still trying to emerge from servitude, reminiscent of the Pinoy experience in America in the early 1900s.
An empowered overseas Filipino community can be a potent force. This was demonstrated in the lobbying efforts in the U.S. Congress that resulted in the passage of benefits for Filipino World War II veterans, and in the support given to then Philippine Ambassador to the U.S. and now Secretary of Foreign Affairs Albert del Rosario in his fight to keep the Philippines in the investment portfolio of CalPERS. Medicare portability, the Save Our Industries Act and the Spratleys controversy are three issues of importance to the Philippines that Filipinos in the U.S. are now actively focusing on.
Tourism promotions is one major concern where an empowered overseas Filipino community can be of great help.
In this regard, overseas Filipino media – mainly newspapers and TV - can be among the most potent vehicles for helping achieve empowerment – but only with a better appreciation of their tremendous capabilities and how to put them to effective use.
There is a lot of talk about exploiting New Media, but this is a field that still needs to be fully understood and mastered. Social media, dominated by FaceBook, is still like a Tower of Babel, with sometimes-heroic and mostly-clumsy attempts at communications management mixed with a flood of irrelevant chatter.
On the other hand, overseas Filipino print media and TV are just waiting to be put to proper and effective use.
I’m delivering a paper on this topic at the Global Summit. My thesis is simple enough. If you’re a Pinoy newcomer in a foreign country and you want to know how you can meet your kababayan or where you can buy bagoong or eat Jollibee or how you can send money or a balikbayan box home, you only need to pick up a Pinoy newspaper. You can find them, whether you’re in Tel-Aviv, Singapore, Sydney or London and most especially if you’re in California, New York or Chicago.
Pinoy media, particularly the international TV operations of GMA Network and ABS-CBN, will also keep you abreast of the latest showbiz gossip and the political circus in the Philippines.
But if you want to know about vital issues in your adopted country that affect you as an overseas Filipino, you’re out of luck. You’ll hardly pick up any stories in overseas Filipino media on developments in the White House or on Capitol Hill or in the parliaments or state assemblies or city halls that are written or reported in terms relevant to you.
Overseas Filipino media should logically be skewing mainstream news to your needs, but they don’t. They’re too busy telling you what’s happening in the Philippines. ABS-CBN produces Balitang America and its equivalent in Europe, the Middle East and Australia, which report on news and issues relevant to the Filipino communities in their specific coverage areas. But these are limited efforts and only serve to underscore the unmet needs of overseas Pinoys.
The mainstream media report the news in general terms. Whether or not they specifically affect you as a Pinoy is up to you to figure out. In the wake of the 9/11 terrorist attack, most Filipinos in the U.S. failed to appreciate the impact of the Patriot Act on them – in many cases, to their grief.
The bottom line is that, instead of helping Filipinos assimilate and integrate, Filipino media tend to perpetuate their status as mere visitors and strangers in their adopted countries.
Small wonder that, in America, where over 40 percent of people of Filipino descent are U.S.-born, the youth know very little about their parents’ Motherland.
For mainstream societies and governments in countries where Filipinos reside in large numbers, Filipino media should be the logical source of information on the Philippines and our people. Filipinas Magazine, published by Mona Lisa Yuchengco for 13 years and by me for almost five years, did exactly that. It told of Filipino achievers in the American mainstream and generated pride among young FilAms. Unfortunately, the magazine lost too much money and had to close down.
As far as I can tell, only Filipino Reporter in New York has taken steps to build a link with the mainstream. Mayor Michael Bloomberg of New York City and State Governor Andrew Cuomo both write regular columns in the newspaper.
Years ago, Alex Esclamado, as publisher-editor of Philippine News, used his newspaper as a bully pulpit to promote the interests of the Filipino community, including farm workers’ rights, equitable benefits for Filipino World War II veterans, and the right of Filipino doctors, accountants and other professionals to practice their professions in the U.S. He got results.
Unfortunately, overseas Filipino media have difficulty surviving, even under benign economic conditions – worse, in recessionary times. Understaffed and underfunded, they take the point of least resistance and resort mostly to “download journalism” or picking up stories from online editions of Manila publications. Not surprisingly, only Pinoys are interested in them. Why would the White House or Capitol Hill be interested in Pinoy showbiz tsismis or the inquisition in the Philippine Senate?
In these times, when our government can use every available resource to promote Philippine interests abroad, efforts should be undertaken to tap overseas Filipino media. Hopefully, the Global Summit of Filipinos in the Diaspora will appreciate their potentials and take the necessary steps to harness them.
The Commission on Filipinos Overseas may be the logical government agency to take on this challenge.
(gregmacabenta@hotmail.com)

FROM THE CAPITOL: Access to Sterile Syringes

By Senator Leland Yee

As the California State Legislative Session came to a close two weeks ago, legislative members await Governor Jerry Brown’s signature on hundreds of bills. Of those, doctors, nurses, and pharmacists have joined AIDS and hepatitis prevention advocates in urging Governor Brown to sign legislation which I authored and introduced to allow pharmacies to sell sterile syringes to an adult without a prescription.
Currently, 47 states allow pharmacists to sell syringes without a prescription. Most states amended their laws in light of overwhelming evidence that criminalizing access to sterile syringes led drug users to share used ones, and that sharing syringes spread HIV, hepatitis B, hepatitis C and other blood-borne diseases that can live in a used syringe.

Under an existing pilot program, pharmacies in Los Angeles County, San Francisco, and some other parts of the state have been allowed to sell syringes without a prescription. This bill, Senate Bill 41 would extend this program to allow pharmacists throughout the state to participate.

 AIDS and hepatitis do not recognize county borders and thus our current policy is not nearly as effective as it should be. It is imperative that the Governor signs SB 41 into law to help reduce healthcare costs to taxpayers and save lives.

Because most states do not require a prescription for syringes, diabetics who visit our state may not even have a prescription and come here assuming they can purchase needles at a pharmacy. This bill will ensure those diabetics or others who need syringes for health purposes will not be stranded here in California without the ability to administer life-saving insulin and other medicines.

The approach in this bill has been evaluated extensively throughout the world and has been found to significantly reduce rates of HIV and hepatitis without contributing to any increase in drug use, drug injection, crime or unsafe discard of syringes. In fact, there is not one published study that refutes these findings.
Sharing of used syringes is the most common cause of new hepatitis C infections in California and the
second most common cause of HIV infections. The state Department of Public Health estimates that approximately 3,000 California residents contract hepatitis C through syringe sharing every year and another 750 cases of HIV are caused by syringe sharing.

These diseases are costly and potentially deadly. Hospitalizations for hepatitis B and hepatitis C cost the state $2 billion in 2007, according to a report by the California Research Bureau. The lifetime cost of treating hepatitis C is approximately $100,000, unless a liver transplant is required, and then the cost exceeds $300,000 per surgery. The lifetime cost of treating HIV/AIDS is now estimated to exceed $600,000 per patient.

SB 41 has been supported by the San Francisco AIDS Foundation and Drug Policy Alliance. As well as the AIDS Project Los Angeles, American Civil Liberties Union, California Hepatitis Alliance, California Nurses Association, California Psychiatric Association, California Retailers Association, County Alcohol & Drug Program Administrators, California Medical Association, California Pharmacists Association, Walgreens, Rite-Aid, City and County of San Francisco, Health Officers Association of California, and Equality California, among others.

Last year, former Governor Arnold Schwarzenegger vetoed a previous version of this bill, SB 1029.

NO LIMITATIONS: Half Filipino-half Jew

By Ted Laguatan

The most famous part Filipino-part Jew person in the world is comedian Rob Schneider. I understand he has a Jewish father and a mother who is half Filipina and half mixed Caucasian.  That makes him 1/4 Filipino 1/2 Jew and 1/4 something else. Very funny and talented guy.

Another celebrity with Jew-Filipino blood is Hailee Steinfield, the talented multi-awarded  actress  who was nominated  in the 2010 "True Grit" film as Best Supporting Actress.   I came across two other not so well known part Jew part Filipino individuals in the Internet and that was it. There were none others that I could point to.

Apparently individuals with Jew-Filipino blood are extremely rare on this planet.   I did meet a couple of Filipinas married to Jews but they did not have any children. So far,  for the many years that I have lived,  I have yet to personally meet a person with Filipino and Jewish blood. I am sure that they would mostly be found in the Philippines and New York  where Jews and Filipinos live - but relatively few compared to the rest of the population.

However, around the second week of November this year, for the first time in my life, I will meet a half Filipino-half Jew individual. His Filipino blood comes from me and my wife and his Jewish blood comes from his father.

Yes, the first half Filipino-half Jew person that I will be meeting in my life will be my first grandson.
The Old Testament  refers to the Jews as "God's chosen people" - perhaps because among other things, the Messiah Jesus Christ, would come from them.  I am fascinated, excited, thrilled and honored  by the prospect of having a grandson who  comes from an ancient race from which my Lord came from.

 

Who knows if within him, he carries the genes of the great patriarchs, prophets and personages like Abraham, Moses, Joseph, Isaiah,  David, Solomon, Blessed Mother Mary and her great humble husband Joseph or great thinkers, writers and artists like Karl Marx, Benjamin Disraeli, Albert Einstein, Sigmund Freud, Marc Chagall, Hannah Arendt, Woody Allen and so many others.

 

However I entertain no expectations on him being super bright or super talented even if genetically and potentially, on both his father and Mother's side, the genes that make that possible are prevalent. Every child is a blessing and being bright, talented, handsome or pretty are mere incidentals which should not be a factor on whether they should be loved and nurtured as they need to be.

But I do wonder what he will be like when he grows up to be a man. Will he be concerned about Filipino issues? Or will he be more concerned about Jewish issues? Or both?

It really makes no difference what particular issues he gets involved with - as long as it relates directly or indirectly to the sacred issue of being involved in trying to create a better world. Over dinner a couple of nights ago in a  San Francisco Thai restaurant,  his Jewish grandfather and grandmother who were visiting from Arizona - agreed with me that what is important in a person's life is to live a meaningful life.  We all understand "meaningful" as synonymous to helping others.

Our grandson will certainly have no lack of  role models. His Jewish grandfather who retired from the World Bank some years back now volunteers his time helping the needy in fixing or repairing their houses whether it be carpentry, plumbing or electrical problems. His  psychologist Jewish grandmother helps many with her counseling work. His own father was a peace corps volunteer in Thailand teaching various technologies to rural Thais to improve the quality of their lives.

On the Filipino side of his family, he will also have role models including a lawyer grandfather who will try to teach him to love God above everything else, to love his fellowmen as himself and absolutely be committed to truth and  justice.

He will probably have his own special talents and probably be funny too at times like Schneider. He might formulate some hybrid delicacies unique to his species like bagel adobo sandwich,  Bangus gefilte or mango strudel.

His father and mother have yet to decide on a name.  Of course that decision is for them to make.  "Benigno", "Bayani" or some other Filipino name may not be bad choices coupled with  his Jewish last name.
 Even before my daughter met my son in law, she had already converted to Judaism. Initially, I was very much bothered when she told me of  her pending decision as we raised her as a Catholic and all of  her education was in  Catholic schools. I told her to seriously consider what she was doing.

However, I do know that God works in strange ways and He certainly is far wiser than me. It is Him who must ultimately determine how He will lead my daughter to Him - not me. I should respect His way. What we believe in is a product of our own experience. Our spiritual journey is a continuing process that goes on as we go through life. What counts is our sincerity and openness to truth.

My  belief that Jesus Christ is God is the result of personal experiences that I have gone through that have led me to this conclusion.

I had not caused these experiences. But neither do I think that they were accidental. They were  part of God's plan for me. He may not have the same specific plan for my daughter or others - but that does not mean He will not bring them to Him through some other way.

A few days after my daughter told me she was converting to Judaism,
I told her: "If you sincerely believe in your heart that this is the right thing for you to do in order to truly love God, then you must do it. In anything where you sincerely truly believe that you are doing the right thing, you must be true to yourself. Even if it means going against my wishes, you have to be true to yourself."

 

I believe that when a person sincerely seeks to know and love God, as he or she journeys on through life in search of God's truth - God Himself will find a way for him or her to eventually arrive at His truth.

That is why I am no longer bothered that my daughter had converted to Judaism.  Neither am I bothered when she tells me that  my grandson will have the same religion. As his  mind and character develops, he  will be more curious about his being half Filipino and also about his grandparent's Catholic religion.

He will also wonder how his lolo arrived in the U.S. from the Philippines with only fifty dollars but somehow managed to go to a good law school  and become a lawyer.  I will definitely teach him the value of being courageous and taking risks when you are fighting for something worth dying for.

If he grows up with the thought of living a meaningful life, sincerely loving God above everything else and a commitment to truth - God will lead him through paths unique to him and eventually to a place in God's heart.

 Note: The California State Bar honors Atty. Ted Laguatan as one of the best immigration lawyers in the U.S. He is one of only 29 lawyers officially certified continuously for more than 20 years as an Expert Specialist in Immigration Law. He also does accident injuries, wrongful death and complex litigation. For communications: (San Francisco Area) 455 Hickey Blvd. Ste. 516, Daly City, Ca 94015 tel 650-991-1154 fax 650-991-1186 email laguatanlaw@gmail.com

VIRTUAL REALITY: The Constitution is under siege

By Tony Lopez

THE 1987 Constitution is under siege. The reasons are economic, political and social.
Economic because in Asia, the Philippines has lagged in economic growth behind countries which were once poorer and didn’t even exist on earth during the mid-1960s.

Many areas of the economy are reserved for Filipinos who lack the capital and the technology in the herculean task of building the country’s physical infrastructure.

Modernizing the economy will require at least $5 billion in annual foreign direct investments. We don’t get that.
In a good year, FDI ranges between $2 billion and $3 billion. The year 2010 was exceptional. $7.85 billion in FDI was recorded, a record, and most of that came during the first half, and into guess what—beer.
Political because a President with awesome powers is not good if he or she is incompetent or corrupt or both. The political system has become corrupt beyond repair.

Estimates indicate up to 40 percent of the national budget is stolen. Nearly every institution has been corrupted—the police, the military, Congress, the Executive, and of course, the Judiciary. Even the Catholic Church has not been spared. Social because the disparity between the very rich and the very poor is scandalous and revolting. Officially, a fourth of the population is poor. Per surveys, up to half of the population say they are poor.

Wage earners shoulder up to 98 percent of total individual income tax collection. The very rich contributes just 2 percent.

Only 100 families control the politics and business of this country. Who or what is to blame for this massive failure in economic, political and social reformation? The Constitution, of course, if you believe analysts.
First, the Constitution, they say, is wordy. It is more than 26,000 words, and more than three times the length of the 1935 Constitution, which was a good charter, with 8,524 words.

The US Constitution has only 8,000 words and America became a superpower. Brevity thus is wisdom. It spells economic progress.

Second, the Constitution is too nationalistic. Many areas that should be open to foreigners are closed. Like telephony and media. But media and telephony have converged. Nowadays, you cannot distinguish between a TV set and a cellphone. Both carry the same functions.

Economist Dr. Bernardo Villegas recalls that in the 1950s, the Philippines was one of the most developed economies in Asia. Next to Japan. From 1950, things turned for the worst for the Philippines.
By 1973, Villeges notes, Korea and Taiwan were above us. By 1996, we were literally, “at the bottom.” BY 1996, the Philippines was “The Sick Man of Asia”.

Villegas says “we’re the worst” on the “Ease of Doing Business.” In FDI flows in 2010, “we are the least attractive among these Asian countries—China $100 billion, Indonesia $13 billion, India $37 billion, Malaysia $7 billion, the Philippines $1.8 billion. Vietnam, with per capita income that is lower than ours, attracted $7 billion.

True, the Philippine has had credit ratings upgrades—by Moody’s, Standard and Poor, Fitch and Japan Credit.

Villegas quotes a foreign observer from Singapore who says “physical prudence and good credit ratings are important, but the country needs to do more for sustainable growth.”

Restrictions and red tape

A World Bank study of 87 countries on investing across borders showed the Philippines imposed foreign equity ownership restrictions in more sectors than other countries.

The study also noted that it takes more than 17 to 80 days to establish the foreign-owned limited liability company in Manila, much slower than the average for East Asia and the Pacific.

Another problematic area was arbitration where it takes around 135 weeks to enforce an arbitration award. “This is a very independent outside assessment of what we are going to talk about,” says Villegas wryly.
Jose Almonte, a retired general and an intellectual, agrees that we should change our mindset on protectionism. He explains: “Our wealth can now be generated or created not within our borders but in cooperation with the nations all over the world. So, if we have to change the constitution, I think we have to reach the human mind.”

“What kind of constitution will we write? How can we take advantage of the work in terms of creating wealth in this country? What kind of constitution is that?”

Almonte says “we need to re-educate the entire nation on how we really plan to build this nation so that our politicians can react accordingly. “He suggests a few reforms that will trigger all of the reforms to change the entire system. (1) Let us live our core values. Who are we? Who is the Filipino? Can we answer that? If we cannot answer that it is because we never live up to what we think.”

“When President Estrada used his presidency for personal purpose, he degraded the entire nation for that matter. When President Gloria Macapagal-Arroyo, for instance, gave out symbolic contributions to Iraq, that’s all right, but for the purpose of protecting her politics, the world did not understand that. So, how did they look at us?”

Almonte warns that the Philippines is nearing the status of a failed state. That is what happened in the Middle East, he says. And the rulers were overthrown. “I think our situation is very serious,”Almonte says.
On the other hand, the Philippines has plenty of money:

Firstly, the economy is huge domestically—95 million people, the 12th largest consumer market on earth.
Secondly, Filipinos have plenty of money. Per capita GNI (Gross National Income) is $2,829—the highest ever in our history. Multiply that by 95 million and you have a $269 billion economy, the 44th largest among 192 countries.

Thirdly, Filipino expats remit at least $20 billion a year, equivalent to P860 billion, half of the government’s national budget and almost 10 percent of our GDP of more than P9 trillion. Most of the $20 billion is stranded—meaning it doesn’t go to productive uses. According to Bansan Choa of I-Remit, the $20 billion represents only a third of the actual annual earnings of Filipino expats.

Our OFWs make $60 billion a year—enough to pay our foreign debts—in one, single voucher. Petty cash, in other words.

Fourthly, the savings rate of Filipinos has exceeded 27 percent—that is, 27 percent of P9 trillion or P2.4 trillion, which is 40 percent more money than the government can assemble for its national budget.
Fifthly, the Philippine commercial banking system has P5 trillion in deposits. Only about P3 trillion has been ploughed back into the economy as loans.

Most of the remaining P2 trillion is parked, at the Bangko Sentral because a government IOU is better than any triple rated IOU of any Tomas, Dikyo and Harry.

Finally, the Philippines has $75 billion in reserves, more than enough to pay for our $60 billion foreign debts and pay for 11 months of imports.

FROM THE CAPITOL: Transparency In UC and CSU

By Senator Leland Yee

After a three year legislative battle, our tireless efforts paid off as Governor Jerry Brown signed a bill to bring greater transparency and accountability to California’s public higher education institutions – University of California, California State University, and the state’s community college system.

Senate Bill 8, which I authored and introduced, will ensure UC, CSU and the community college auxiliaries and foundations adhere to state public records laws. Under SB 8, all financial records, contracts, and correspondence would be subject to public disclosure upon request.

The bill also protects the anonymity of donors except in situations where there is a quid pro quo in which the donor receives something from the university valued at over $2500 or in which the donor receives a sole source (no-bid) contract within five years of the donation. Anonymity would not be provided to any donor who attempts to influence curriculum or university operations.

Finally, we will have real transparency at our public universities.  While this law does not technically go into effect until January 1, I am urging the UC and CSU to immediately begin complying and providing sunshine to the actions of their foundations and auxiliary organizations.

The most recent scandal of an auxiliary organization made national headlines last year when the CSU Stanislaus Foundation negotiated a speaking contract with Sarah Palin. Students found parts of her contract as well as shredded documents in a campus Dumpster after CSU refused to disclose her compensation. After a lawsuit filed by CalAware, a judge ruled that the CSU acted illegally and forced them to disclose the full contract.

Despite overwhelming bipartisan support, my two previous legislative efforts were vetoed by former Governor Arnold Schwarzenegger.  This has been a long fight, but I am proud of our coalition of open government advocates, students, faculty and workers who have stayed so persistent in helping protect the public trust.

“We are delighted that the governor agreed that the activities and operations of these quasi-public entities should be brought out of the shadows,” said Jim Ewert, General Counsel for the California Newspaper Publishers Association. “CNPA also thanks Senator Yee for his dedication to the issue and persistence over the last three years to ensure that these entities operate transparently.”

“Senator Yee deserves special thanks for his tenacious efforts on behalf of the faculty, staff, and students of the CSU,” said Lillian Taiz, a CSU professor and President of the California Faculty Association. “Three years of hard work and dedication have finally culminated in a very real victory for transparency and accountability.”

For years, foundations and auxiliaries of our state’s public colleges and universities have been able to hide billions of dollars from public scrutiny. According to the CSU Chancellor’s Office, in 2009, 20 percent of its $6.7 billion budget, or $1.34 billion, was held in their 87 auxiliaries and foundations.

Incidents at several campuses across the state demonstrated the need for increased public oversight and accountability provided by this legislation.  At San Francisco City College, a campus executive has been indicted for using money from the San Francisco City College Foundation for personal and political purposes.  At San Jose/Evergreen Community College, the Chancellor was found to have engaged in lavish travel and other examples of financial impropriety that prompted her resignation. Since local community college campus auxiliaries are already subject to the CPRA, these instances of waste and abuse have led to the parties being held to account.

In April, longtime open government advocate Richard McKee passed away. In his honor, I have named SB 8, “The Richard McKee Transparency Act of 2011.”

Rich McKee was one of our state’s strongest champions for open government.  His passion helped ensure greater public access and accountability of government agencies throughout California. Whether you knew Rich or not, you benefitted from his activism. Our democracy is significantly better because of the work of Rich McKee and that is why he will be so greatly missed by all those who care about government transparency. This bill is a fitting tribute to his legacy.

STREET TALK: No, It’s Not Been Easy Selling Chickenjoy

By Greg Macabenta

I would like to see Ramon Jimenez succeed as Secretary of Tourism. Because he’s an advertising colleague. Because I would like to see Noynoy Aquino succeed (having created one of the key concepts that helped him win the presidency). And most of all, because I’m a Pinoy. With that said, I hope Mon will take my comments in the spirit they are being given.

I assume he needed a memorable sound bite when he quipped that selling the Philippines as a tourist destination will be “as easy as selling Chickenjoy.” So typical of an ad man with a creative bent.
 The harsh reality, however, is that selling Chickenjoy and the whole Jollibee concept in an overseas market like the United States hasn’t been all that easy. But the analogy may yield some lessons for our country’s tourism promotion efforts.  

When Jollibee began to lay the groundwork for its U.S. entry, its international marketing manager sought the advice of Carlos Go, CEO of the Seafood City Supermarket chain (now the largest Filipino-owned retail chain in the U.S., with an impressive presence in Northern and Southern California, Las Vegas and Seattle).  At the time, Seafood City had only expanded from its base in San Diego to Los Angeles, but it was already seen as a model for successfully operating in the U.S. market.

 Carlos suggested that I join the meeting (I've been a Seafood City consultant since its San Diego days). He felt I could share some valuable insights, especially on how to avoid the pitfalls suffered by such major Philippine brands as San Miguel Beer and Sarsi.

 We learned that Jollibee planned to go after the American mainstream market, dominated by McDonald’s. After all, it had outdone McDonald’s in the Philippines. Why not use the same success formula in the U.S.?
We politely suggested that Jollibee should first build on its logical consumer base, the Pinoys. That would allow the company to gain a steady footing, before crossing over to the mainstream – if at all.

“Pinoys are already in our pocket,” said the marketing manger. “Besides, our first store will be in Daly City where they make up over 30% of the population. That’s why we feel we can afford to focus on the rest of America.” 

“You can’t presume to automatically own the FilAm market,” I cautioned. “You might want to learn a lesson from San Miguel and Sarsi.”

Sarsi had been a miserable failure in the U.S. (a story worth telling separately). San Miguel concentrated its marketing efforts on the U.S. mainstream, believing that Pinoys were “in the bag.” But it failed to make a dent in a market dominated by Anheuser Busch and Miller. Worse yet, a research study commissioned by San Miguel U.S.A. revealed that the brand only ranked fifth among imported brands drank by FilAms. One of the reasons was the company’s failure to nurture its relations with the community.

In 1990, as CEO of Advertising & Marketing Associates, which had a pioneering branch in the U.S., I headed a team that helped San Miguel reconnect with FilAms across the U.S. This resulted in a volume growth of 27% in one year. But when Barton Beers, a major distributor, took over the distribution and marketing of the brand, it took the Pinoys for granted again. The gains were wiped out.

At any rate, Jollibee went ahead with its original plan, even hiring a mainstream PR agency to handle the launch. When it opened its first store in Daly City, there were long lines for days. But the customers were mainly Filipino.

 Inexplicably, after the initial media burst, the brand was not given the same aggressive marketing support that had made Jollibee a phenomenal success in the Philippines. Not surprisingly, even the Pinoy customer lines soon dwindled and dwindled…and dwindled.

 A year later, Arnie Balague, Jollibee’s head of U.S. operations, admitted to me that they should have listened to our advice.

 "Now, you're just part of the scenery with hardly any top-of-mind awareness,” I said. “If someone wants a burger, McDonald’s first comes to mind. Some chicken? It’s KFC. Spaghetti? It’s an Italian restaurant."
“But we can’t afford advertising,” said Balague “We only have one store.”

“You’re not investing in a store,” I said. “You’re investing in a brand. Unless you do, you won’t be able to build a chain.”

It would take almost another year before Jollibee found its bearings. Unlike Sarsi, Jollibee management took a reality check and learned from it. Among other things, it accepted the wisdom of building on its logical consumer base and invested in advertising and promotions. It thus began to expand, first in Northern California and then in Southern California, then on to other states.

For some reason, however, it has gone back to depending on the Field of Dreams theory (build it and they will come). There has hardly been any advertising or promotional support. Fortunately, Jollibee also saw the advantage of building strategic alliances. From originally insisting on stand-alone stores, it now goes wherever Seafood City opens a facility, thereby benefiting from the customer traffic.

 In this regard, Mon Jimenez could take a cue from Robert Kwan, the sharp entrepreneur who built the Chow King chain. Shortly after Robert opened his first Chow King store in America, he realized that it wasn’t possible to simply transplant his success formula of good-food-quick-service-reasonable-price. He faced a Catch 22 situation (which is another marketing case worth telling).

 But Robert was wise enough to acknowledge that he needed someone more familiar with the market to make his venture succeed. He arranged to make the Seafood City group  master licensee of Chow King for the U.S.  After  a few bumps, Chow King began to take off (Robert subsequently sold the business to Jollibee).

I suppose Jollibee still wants to cross over to the American mainstream. And it could succeed. But not without a product makeover and, most certainly, not without investing in demand creation.

 I’m sure that, as a seasoned marketing practitioner, Mon can relate these marketing cases  to his new challenge of selling the Philippines abroad. It’s not entirely an apples-and-oranges analogy.

He also has to cope with such issues as lack of awareness and negative consumer perceptions, needs and expectations, product improvements and new product development,  improved customer service, a formidable competitive environment, the imperative of advertising and promotional support and the challenge of a limited marketing budget.

Unfortunately, on top of that, he also has to suffer the plague of patronage politics, the scourge of special interests, and a media sector with a habit of sensationalizing problems without providing solutions. And he will have to deal with the Philippine travel and tourist industry which is used to being spoon-fed, demanding “action” and “results” from the government but unwilling to put its own money behind those demands.
 Frankly, selling Chickenjoy overseas is a much easier challenge.

 And yet, at the end of the day (to use a PNoy cliché), Mon Jimenez has no choice but to create magic out of what he has, and win some victories before the nitpicking pundits and special interests begin ganging up on him.

 He can, of course, be assured that I’m rooting for him, along with many of his ad industry friends. And if Mon thinks he can pick up a few tips from folks who have had to break into the U.S. market with nothing more than spit, prayer and bubble gum – and have managed to run circles around much better funded mainstream competitors – we’ll be happy to help.
 It’s our country, too.
 (gregmacabenta@hotmail.com)