BEIJINGS FERRAGOSTO

I leave an exhausted Beijing, with a strange sense of pride and relief that the summer games has finally passed. Not to undermine the importance of the incoming 2008 Paralympics, but quite frankly, nobody cares. The highlight of the last six years-- the catalyst which forced fat cat party bureaucrats to prop a politically correct persona and varnish the toothy smile for the country, was the 2008 Beijing Olympic Games. Seriously people, they actually took proactive steps towards improving the environment, WTO situation and even those fake DVD's!

Sitting high up on the 35th floor, when the 25th of August rolled around, I could hear the collective sigh of 20 million Beijingers, as the city let its gut hang loose and hacked up that festering, 6 year old loogie in triumph. The streets were not filled with as many free spending, cheerful foreign faces as expected and neither did the pollution cooperate with the countries efforts, but nevertheless, the mountains moved by the government to make this event possible was nothing short of amazing and Beijingers like myself will be enjoying the effects for many years to come.

This communal effort has been so taxing, that the city is still in a sort of comatose state-- where the ever so industrious Chinese are NOT business as usual. It is almost like when the last Olympic foreigner left, the city inhabitants decided to hang up a huge “Ferragosto” sign moments before taking off for the peace of their courtyards and weekend getaways. I suppose it is all the better, because if there is one city in the world that needs a break form the ever growing intensity and energy, it is Beijing.

The thing is, now that all of the gabby reports have left and taken with them the cheesy cliché's that riddled CNN and BBC and the last of the bewildered tourists with flags and banners stumble on the new, slightly constricted, airport express. just what exactly is Beijing to do?

The city is caught at a limbo between the Pre and Post Olympic city. To spit or not to spit-- that is the question. Not that the government has softened its political line much, but in the Pre Olympics it has made attempts to be a little bit nicer about caging up the Tibetans and dealing with local hot spots like Xinjiang. I would like to hope that the last few months has been more a part of Chinas “century strategy” than its 08/08/2008 strategy. The economy has not exactly warmed up either. Metal and oil prices are still fluctuating, though the Chinese seem less surprised by them and are now addressing work efficiency and government tax assistance to keep themselves competitive. The RMB has been allowed to steadily appreciate to the dollar and local wages as well as workers rights (UN. Believable.) are improving. Of course, my office employees will argue that last point, but as I always say, these changes start in Middle China, working outwards and affecting cities like Beijing and Shanghai last (except on my balance sheet, which feels the effects...IMMEDIATELY). I also remind them that and my company is not a democracy, we follow the chines government policies of 1989!

So, I hope Beijing is enjoying its short reprieve. I eagerly look forward to business as usual, more out of curiosity on how the government will use the positive affects of the Olympic Games to strengthen Chinas future. Building on my favorite CNN cliché, China's coming out party will all be for naught if whats coming out is nothing short of amazing.

OLYMPICS ARE COMING

“China Surveillance may extend to taxis.” Front page of the WSJ Asia, a gripping reality to all free world born tourists heading to the Beijing Olympics. As it turns out, those little black microphones that started popping up in taxis a few years ago, were really part of the governments protective defense against terrorists for the planned summer Olympics. These days it is no joke. The majority of the friction so far seems to be coming from Xinjiang and Tibet, which both have just cause to despise the Chinese way of life, but there are still plenty more dissidents in line. Still, the massive Chinese surveillance system that spans cameras, phone bugs, cell phone/online tracking software, vast networks of informers and the low tech system of tracking where foreigners have traveled through our passport checks at all hotels, will exist for years after the games have left Beijing. China may be blossoming into one of the most culturally vibrant and exciting courtiers in the world, but it is still leans heavily on its controlled communist past.

With the games only a few days away, locals are quickly cowering in their homes in fear of the terrorist strikes to come. Personally, I would say that the safest place would be right by the Olympic venues. If there were any government that I would trust with keeping the peace (Americans, British, Australians), it would have to be Hu Jintao and his armed guard. There is something about the tattered velvet glove over the iron fist that is China that soothes my fears. They may be crude and rude, but they are certainly not sloppy. With one and a half days to go, I wish them all the luck with the coming Olympics!

THE EGG HAS HATCHED

EGG is an innovative company similar to Chikka, though facing fewer internal obstacles these days. Primarily a CP, this buyout must work out very nicely for them as the industry has been shrinking quite rapidly. It is not so much their fault as the fact that the market went in a different direction. The content required to entertain subscribers these days lies well beyond the traditional CP offerings of RBT's, News updates, Games, etc.

EGG's fate does not interest me as much as the deliberate move by Globe to expand its service offering by encouraging this buyout. Gerry Ablaza stated that: “globes strategy is to drive growth through expansion in adjacent spaces such as mobile content creation and distribution.” I think it is canny that he did not mention that this move by EGG has also opened up a number of possibilities for Globe to generate additional advertising revenue—the direction of the vast majority of mobile companies. With Globe acting as the content provider, developer, and telecommunications company, they are positioned to develop and support multiple platforms for their corporate clients.

I remember reading a few months ago about CURE and Mindshare and all the fantastic services that Smart was looking to offer its corporate consumers. Many months later, not much if anything at all has hit the market…I think that they are finding that it is quite difficult to merge the needs and expertise of content providers and advertising firms with what is best for Smart. There are just too any technologies, proprietary software and corporate clowns trying to protect their own little turf to the detriment of the whole. This move by Globe is the first right step in the industry and I would bank that many will soon follow. TELCO has realized that all of the billions they have spent on infrastructure and hardware, can be paid back much sooner with a little horizontal expansion. Who better to create and develop services for mobile consumers and corporate clients than the telecommunications company themselves?

On a side note, I briefly came across a discussion on WiMax the other evening. I'll need to do some digging around, but if WiMax does find itself implanted in major cities, how will telecommunications companies respond?

WiMax simply put, is WiFi on steroids, where broad areas like cities or countries are connected with high-speed Internet. Its been making some headway these days in the more technologically progressive countries-- even The Fort in Taguig! With Internet connection on demand and my road warrior of a Nokia Communicator linked to Skype, I would rarely need to make a traditional phone call. That is one less ultra Platinum globe and VIP China Mobile consumer to gouge. Think of the paradigm shift.

PASSING OF THE TORCH, TO WHOM?

One of the greatest literary figures of the last century has passed. Interrned in Moscow, Solzehenitsyn completed what he always said he would do, to have been born and to die in Russia.

I was asked the other day how Solzhenitsyn died?

Well, he incurred the ire of Stalin by exposing the addled core of the communist system. His writings and US exiled presence (CT I think?) resonated loudly within the ruling term of Khrushchev and Brezhnev, culminating with the era of Glasnost and Perestroika under Gorbachev—who in many ways embodied the change from Solzhenitsyn’s Russia and the emerging new Russia. Sadly, much like the other great figures of the revolution though to a lesser extent, Solzhenitsyn’s continued existence was a ghost of an unwanted past. The new generation of Russians was too disjointed from the old system, too concerned about making a future in this new economy. Nevertheless, his mark on this world is undeniable and his portrayal of the communist machinery at its worst in the Gulag's, a chilling reminder of what humanity is capable of.

So, to answer in short—he died of old age.

The Jolly Jetsetter is in mourning.

CROSBRID ALERT: TERRAFUGIA

http://gliving.tv/gmag-summer2008/gvehicles-summer2008-page01.php

Bit of interesting reading from Gliving of all places. Terrafugia has a hybrid which is having its first full scale model produced in Woburn, Massachusetts. It looks good, but I think that Terrafugia needs to really study the market they are attempting to enter. There are good products (Automobile, Airplane) and there are good products in concept (The flying car). Some well loved products are just not meant to be crossbrids, especially when their respective industries are undergoing such massive change, that will undoubtedly change the way we look at their products.

I do not see an immediate future of consumers that drive out of their garage, on to the highway, and up into the sky. The worlds infrastructure is not designed for it and neither are we. I am however interested to watch as our daily land based transportation system gets leaner and greener, while travel at 17,000 feet gets cheaper. A near future of hybrids (50pmg) and Honda Jets ($4m and lower) is just the sort of future I intend to have.

Terrafugia's well touted “flip of the switch” wing gadgetry, brings back fond memories of Roger Moore's “flip of the switch” Lotus/submarine. I'm sure they can make space next to the Lotus in the warehouse of useless crossbrids, ill throw in my old Flowbee (Vacuum/Clipper) for good measure.

THE WONDERS OF UBUNTU

I spent a perfectly good Sunday in the office, not an ideal day, but since a friend of mine was so kind as to leave a frozen 10 year old bottle of Laphroig, it passed by quickly. We are starting the migration from Mac's to Linux's new Ubuntu operating system which to my pleasant surprise has been quite amazing. This system runs practically virus free, comes with all the necessary applications to run a business, and best of all, runs so lean that I've been able to pull some late 90's hardware off the antiquities shelf for a new lease on life. These days I'm not the only one that seems to think highly of Linux. Dell has announced that it would install Ubuntu on more of its desktops, Canonical (Linux distributor) seems to be deftly maneuvering around IP infringement lawsuits, and all of the cheap Taiwanese/Korean computers that started this Linux craze are still, 1 year later, flying off the shelves. In general I think the public has just gotten sick of constantly paying for more advanced software and hardware that does not work right. Even as a die hard mac user, I am finding the quality shortcomings of the new apple machinery hard to ignore,and with the all aluminum notebooks due out soon (you can't build them like you used to and yet your experimenting with new materials??), I feel secure in my decision to switch over to Ubuntu. Bill Gates has built his fortune off licenses and Steve Jobs started the model, lets see how these guys react to Linus Torvalds and his creation!

THE PROBLEM WITH GAPS IN LEADERSHIP CONTINUITY

I had the privilege of touring the two major shipping ports in Ningbo, as well private time with the government ministers and company leaders that conceived and developed the Chinese port expansion plan of the early 90’s. Impressive is the best word to describe it. This government has a vision for the shipping hubs of the 21st century and it will surpass and dwarf ports like Singapore and HK (considered the worlds best).

In our 20-person shuttle bus, there was unanimous praise in the Chinese as well as a sense of foreboding and disappointment that our respective governments have been unable to compete as effectively. It was culturally amusing and slightly stereotypical to watch the Kazaks grunt in approval, the Koreans bow in amazement, and the Filipinos click their tongues while shaking their heads in stunned, clicking silence—quite the symphony! This was no group of slugs either; my shuttle mates included the former Prime minister of Kazakhstan, the former Prime Minister of South Korea, Minister Long Tong Yu, and a handful of leading shipping/logistics/port operators in the industry. How has China managed to develop and surge forward at such a rate? $$$! But also a strong, sustained drive towards a long-term vision, set forth by the government and defended by each successive leading body.

My beautiful country of the Philippines has an almost perfect model of how NOT to progress through “leadership continuity.” Projects are not centrally planned since we seem to choose to develop our country based on the whims of our presidents. This is NOT OK. In this model how do you develop the correct infrastructure? Zoning? Create the right atmosphere for foreign investment and provide/guarantee them with a reasonable payback period? How do ensure that projects that affect the nation are done in the best capacity of the country? The answer is you cannot. Which is why we have a patchwork of ports, roads, airports. Practically primordial infrastructure, which keeps our costs up, productivity/efficiency low and makes us uncompetitive in a world that has become increasingly competitive.

Let us take our airport system as a good example (since it has been in the news lately). Originally, when they were planning the expansion of the existing NAIA Terminal 1, they had several criterions to fill. Aside from being able to handle the capacity for several decades, it needed to be modern and people friendly. Passengers would have been able to come in from an international flight check-in at the terminal of entry for any domestic flight, and promptly walk over to the domestic terminal via bridge way. These were to be connected by a central transit hub where private vehicles, trains, and buses would convene. Interestingly, the MRT train line would run all the way to Clark, linking another air hub to the major NAIA terminal.

Of course, what we ended up with was a white elephant of a terminal 3 and the new domestic terminal entirely in the hands of PAL. In retrospect, I think the only two hubs ERAP gave thought to was the International Financial Hub of Equitable PCI (check this) and the International Entertainment Hub of Airforce One (not accurate chronologically, but you get the point!). The handling of GMA further exacerbated all of this. This project came together near the end of FVR's term, so in two presidential terms and 10 years of our lives, we have lost and near buried what would have been a boon to our economy. Disgusting.

Touching back on my previous entry discussing Nuvali or Clark, there is a distinct opportunity for us to fix our international image and give The Philippines a competitive edge. Anybody that looks at a map can see why we can still be a strong player in the region. Our location is suitable for all Central and South East Asian destinations. We have a wide berth of seafaring water on each end and can certainly provide a more attractive shipping route to China than Singapore, Malaysia and even HK (though depending from where). This is really just for transshipments, as our local economy will not create the demand that foreign companies are willing to invest in.

Clark and Subic have now been connected; there is plenty of room for growth in our major Freeport zones. There does exist infrastructure around the deep waters of Subic that can be expanded and the surrounding area has plenty of room for growth. I know of several groups, ICTSI being one of them that currently operates and can continue to develop our port capacities. We should take from the HK/Singaporean model and allow foreign firms like Maersk and MOL to handle their own port operations. With them come jobs, professionalism, and a glimmer of hope to foreigners that the Philippines is still a good location to park capital.

A greater frequency of inbound shipments lowers overall shipping rates, while opening up trade. The best part is, Subic and Clark are a destination in their own right, which means that we can develop a whole other city for the country, one of equal value to the CBD and its neighboring Nuvali. The Philippines can have the traditional port and airport (Subic/Clark) and the future information port (Nuvali). Great combination. Let us not forget that old logistics dream of cutting a swath of land through Quezon province connecting the Pacific in an almost straight line to Manila Bay. The possibilities of turning Luzon into a major Asian hub are tremendous and quite feasible, a dream for my generation perhaps! Logistics runs in my blood, and developing the Philippines geographic endowments is something I have always wanted to do. We can be so much more in this field.

We need central planning, political will, and a design that can make plenty of $$$ for foreign and local investors brave enough to invest large sums in the Philippines regardless of our present track record. Can it be done? I think it can.

YAHOO QUOTE OF THE WEEK

"Until now I naively believed that self-destructive doomsday machines were fictional devices found only in James Bond movies...I never believed that anyone would actually create and activate one in real life. I guess I never knew about Yang and the Yahoo Board." -Carl Ichan

OLYMPICS AND THE DEFENDER OF FREEDOM THAT IS CHINA

The government released a statement a few days ago that it would be closely monitoring and would NOT be providing visas to foreigners that may be a potential threat to China. This comes after a wave of “ill mannered” foreigners have been booted out of the country on all sorts of charges.

On the local front, popular clubs and bars are now systematically being raided and closed (no doubt reopening when the Olympics are over)while dogs and undercover police are more obvious on the streets. Not that the locals have it any easier, the last few years of forced change are all the more evident now that the Olympics are around the corner. They have eradicated hutongs and street side advertising, chased away outdoor vendors, erected highways and subways (adios mom and pop store...adios mom and pop), and forced millions of Beijing locals to hold in their spit and snot missiles. That last one is a feat that I am quite thankful for.

The latest this week was delivered by WSJ.Com: “Tuesday, the Beijing Olympics organizing committee, known as Bocog, said it would stop coordinated groups of spectators from wearing uniforms or branded clothing in Games venues this August...The basic idea is to create a 'clean sports stadium,' which means it is not commercialized...the authorities will also control billboards in prominent locations to give priority to official sponsors. Athletes and coaches won't be allowed to lend their images to marketing without prior approval from Olympics officials.” The WSJ forgot to mention that all branded clothing, commercialized property and internationally patented and trademarked goods can be bought for “only 1 dollar” at the local markets. Quality is “same same.”

QUICK NEWS AND INTERESTS 06/04/08

Porsche Roxter
The tiny SUV is inching its way towards production. It looks to have the 3.6 V6 that powers the Cayenne, with a name that fits a Taiwanese pop star better than Porsche's next abomination. Yes, I am a purist. The Cayenne and the Panamera are bad long term moves for a company that has thrived on basically a one car strategy for years. These are short term benefits over long term sustainability of the brand and it is going to bite someone on the ass sometime mid century or sooner.

Jerry Yang V.S. The Raider
Carl Icahn is steadily resurrecting the merger that I disappointedly watched disintegrate a month or so ago. His formal letter nicely articulates what we all knew: “That Microsoft’s bid of $33 per share is a superior alternative to Yahoo’s prospects on a standalone basis. I am perplexed by the board’s actions. It is irresponsible to hide behind management’s more than overly optimistic financial forecasts.”

Jerry Yang did not actually think that he won that last one did he? As revenue generating models continue to surge forward in the web and mobile industries, Yahoo is the prime target for the big boys. This is going to be a title fight between Microsoft and Google, Yahoo is just another casualty of war.

QUICK NEWS AND INTERESTS 05/24/08

Latest China quake statistics
60,000 dead with over 70,000 buildings damaged in the Sichuan region as per the latest CNN review. A friend of mine and fellow Filipino runs the CNN bureau in China, he has been on the ground doing his best to report on the impact of this earthquake. He does not downplay the magnitude of the devastation or dead, but adds that the government and social organizations have been working overtime to save and assist as many people as possible (and effectively). Trying times for China.

747 splits in half
This is the first time I have ever seen something of this sort. Not the sort of publicity that Boeing needs at the moment. Mental note, do not ride jump seat on Kalitta Air.

http://edition.cnn.com/2008/WORLD/europe/05/25/belgium.aircrash.ap/index.html

The viper recoils
"I owe that to the Filipino people, to the Filipino nation, to shed light on what I know."-De Venecia (Quoted from Inquirer.net) Seems like the dethroned and wounded man is about to bite back. You can always tell when a Filipino politician does this because they whip up rhetoric fitting of Rousseau himself,albeit with a matching look of contrition (bleh). While this statement was made in regard to the NBN-ZTE scandal, one can only guess at what secrets this old timer has harbored. Its going to be an interesting 2nd half of the year for Filipino politics.

Indiana Jones and Mountain of Lost Money
I sneered in disgust as I watched my moderately diminished hero try to deliver a reasonable explanation for the crystal skeletons that filled the magical knowledge chamber, which in fact, was a dimensional portal. Notwithstanding the weak attempt at a rekindled romance, a swashbuckling hero/grandfather, been there done that action sequences, some Russian accent that I doubt any Russian would understand and 2 hours of my life-- the last 15 minutes of Indiana Jones and The Cristal skull nailed this coffin shut. The coupe de grace.

I am filing this movie with godfather 3. A must- NOT-see. This is no jest, for all Indiana Jones fans, it is better to remember the trilogy for what it was, brilliance in casting, effects and “could have been” scenarios. It was an adventure from start to finish and brought out the explorers in all of us. This Cristal Skull mishap fits better with the Tomb Raider franchise--at least the public expects it to suck! For all those involved, specifically George Lucas, I am sorry you are going to lose so much money.

ITS BEEN A LONG WEEK

Nearly 40,000 dead in the Sichuan region of China and another 22,000 in Myanmar as per the latest news today, I would say it has been a pretty depressing week.

Survivors are few and far between and the tally on missing persons is easily in the tens of thousands. Rescue efforts have been further hampered by the damage inflicted on local infrastructure, although the Chinese army has been brilliantly resilient and effective, as they have proven time and time again. You have to give this government credit, when they put their mind to something they plow forward with dogged determination!

The death toll is unfortunate but right now the world needs to focus on how these governments handle the refugee camps that are popping up. China has more than 5 million people that have been left homeless, a good portion of which is living in sub standard conditions (hygienically). Spring rains have not made it any easier. Since food and shelter distribution has proven effective, how the Chinese Government will relocate and reestablish the lives of these survivors will be one for the books. The numbers we are talking about are easily equivalent to the population of many countries.

In an unfortunate events comparison, I would say that the displaced population that the Chinese have to worry about weighs equally with the inward and nonsupporting ruling junta of Myanmar. Here you have the case of a country that does not have the support network or infrastructure to distribute aid, with a Junta continually (tough significantly better) impeding efforts made by outside parties. In this I find the greater catastrophe. Myanmar could learn a thing or two from the Chinese.

It is during times like this that one really gets a chance to pause and reflect about the situation of the world in general. Have we become so petty and self absorbed that we are unable to focus on what is more important, our responsibility as human beings to one another? Perhaps as the past has shown, there will be some good that stems from this Myanmar situation—an excuse for social change. Myanmar has been treading quite poorly on the world stage these last few years and its people are getting tired of this ruling junta. It will not be too long now.

For all my disagreements with the Chinese and their actions, I have been awed and house a sense of real pride (for my adopted home) in the way that they have handled the fallout from the earthquake. Amidst brewing trouble with Tibet, the approaching Olympics, Taiwan, INFLATION, they have orchestrated their relief efforts with a fervor and commitment greater than I have seen in many years. Truly something the Chinese people can be proud of.

Side note
It seems that in all of the different buildings that collapsed in the Sichuan region, school buildings seemed to be one of the larger percentages, 6900 of them to be a little more precise. It’s a good think little kids can run faster than adults, it seems that during earthquakes this may prove to be a crucial self-preservation tool.

And two pandas are still missing.

QUICK NEWS AND INTERESTS 05/05/08

Wrigley’s and Mars dance
Mars and The Oracle from Omaha are tuning a Wrigley’s buyout. I was quite impressed with the company operations when I visited the corporate headquarters in 2006. A staple in Chicago (Wrigley’s), this move will make Mars significantly more competitive on the global perspective (they are no. 1), while providing the Wrigley’s company with a suitable parent company for long term growth. It’s a great deal for Wrigley executives and shareholders who will be paid almost 4 times more than its 5.4 billion in sales. Of course, just about anything that Warren Buffet touches turns to gold, so I have high hopes for the future of both these companies. The blog I read of Bob Reed also reminded me of the deal between P and G and Gillette a few years back (I was based in Boston during this period), which has many similar traits. The long and the sort of it: Berkshire Hathaway is going to make out like a bandit in the Short and Long Run. Surprised?

Just a side note: Impeccably dressed, Bill Jr. commands his company from within a gorgeous neoclassical building that bears his name. Flanked on both sides by gorgeous model-esque assistants, he has the profile and panache, rare in a world of cookie cutter executives. I wish him the best as he moves towards a new direction for his company—it certainly looks like the right move for Wrigley’s. Let us see how the shareholders vote.

Korean firms do not bribe…
Perhaps Filipino’s are starting to wizen up to the structurally ineffective system of bribery before action. Paulino Emano has made quite a stink of this 400 million contract to supply materials. Hanjin has been heavily investing in the Philippines and it would be naïve to think that the latest of several “Filipino Glitches” will not make them think twice in investing in our country. Idealistic—perhaps, but it is certainly not economically advisable. Let us see how this plays out in the coming weeks.

QUICK MOBILITY AND THE INDUSTRY NEWS 05/05/08

Goodbye Microsoft
High fives went all around as the elated Yahoo board celebrated Microsoft’s withdrawal of its bid. I suppose this was expected as Yahoo was dragged kicking and screaming to the negotiating table, by the much larger and strategically logical Microsoft—I do not think they even got to the dirty details of the merger! It was always on a more superficial level.

Steve Ballmer released a letter to Yahoo which outlines the coming difficulties for this Web 1.0 staple: ““This would effectively enable Google to set the prices for key search terms on both their and your search platforms and, in the process, raise prices charged to advertisers on yahoo.”

Coupled with the loss of good personnel and the inherently weak position of Yahoo in the market, I hope Jerry Yang’s protective nature over the company he started, includes a brilliant strategic plan for the next 2 years (Aren’t emotions supposed to be kept out of business?). Otherwise, we will probably see the return of Microsoft. Well, one can always hope.

Mindshare Event
Good, it’s about time that the RP starts looking in this direction more actively: (http://www.inquirer.net/vdo/player.php?vid=710)

Social Networking Sites For Business
Rapleaf a social web search company has a study that shows that men are more likely to use social networking sites for business—and not to a small degree. This includes sites like Friendster, Facebook, Myspace, Belbo, Etc. I am still trying to get a copy of this study. I need to get on the ball with this—I hardly use my Facebook, what more network for business on it.

FILIPINOS LOVED THEIR GOLD

Walking through the 4th floor of the Ayala Museum, home to the new Gold exhibit (Opening May), I was stunned by the quality and historical significance of the pieces that are on display. Specifically the collection of Golden deities and burial masks with details that hearken back to our pagan beliefs. The masterpiece in this collection is a massive, finely woven golden....scarf? Sheathe? You will know what I am talking about when you see it.

The level of sophistication that our ancestors had prior to the Spanish is fascinating. Gold, a representation of ones social standing, clearly outlines an evolved social structure that existed before our re-education (dripping with sarcasm) through the Spanish. This collection is of incredible importance to our culture is a Filipino people, and is by far, one of the most significant finds in existence today.

Which also brings to light another concern; how did these donated collections slip below the radar and how many more of these private collections exist? Worse, why do we pretend that these donations deserve public appreciation and recognition-- is it not just another form of theft?

Granted, there is some defense for these collectors. The condition of our national museum is so depressing, that if I had possession of such pieces I would be very hesitant to release them to these institutions. In this I will give the Ayala Museum its due credit. The gold masterpieces are both protected and displayed at a world class standard. It is a wonderfully crafted exhibit that resonates a strong cultural message and makes us proud to be Filipinos.

THE WORLDS CARBON FOOTPRINT

Carbon Neutral (Wikipedia): Being carbon neutral, or carbon neutrality, refers to neutral (meaning zero) total carbon release, brought about by balancing the amount of carbon released with the amount sequestered or offset.

Carbon neutrality is a term that is touted in many circles these days, as companies work to improve our environmental situation. Working towards a carbon neutral or low carbon society is something that I support and as I learn more, feel deeply passionate towards. We are facing a very big climate crisis and I intend to do my part to improve the way we live with our planet.

Ecological, Economical and Social. These are the three principles that should guide all Socially Responsible Investments (SRI) within the green industry. For company management and investors alike, this means a proactive approach towards all parts of your value chain. Take for example a real estate investor. It used to be enough to buy land, relocate people and develop your structure. Today, one responsibly invests in carbon neutral designs, assesses the carbon impact of the site and plans on the effect relocation of individuals has on the environment (I recall the recent headlines with the Subic development of Shimao). Investors should look carefully into these environmentally friendly practices. HSBC has recently claimed they are carbon neutral and take pride in providing loans and assistance to companies working to improve their carbon footprint. Sounds like a lot more work? Well, yes, but it is really more of a mind frame. If we all accept that carbon HAS a cost; that shirt you wear is $10 in materials $5 in carbon emissions used in production, delivery, etc. Then maybe the world can really start understanding that climate change has now become a part of our daily lives.

These days it is becoming publicly laudable for companies and individuals to take proactive steps. Green has nurtured a “cool factor” partially due to the impact of celebrities like Al Gore and Toyotas Prius. I find it fitting that the word cool is used to describe the battle against global warming.

Presently sitting at a Thai restaurant in Hong Kong that like other establishments in this city, blast CFC induced cold air, 247, I recall a recent statistic brought up at one of my recent meetings: “The meat industry produces more carbon than the entire logistics industry.” Interesting. This means that a lot of the carbon neutral gains that we have been developing through complicated regulations and systems within companies (a good number logistics related), can be achieved by a simpler and psychologically powerful effort. Eating less meat. Statistics have also shown that buildings, specifically AMERICAN buildings are the biggest polluters. They are dark monoliths of poor design and excess. They also prove difficult to change. It is astounding to think that for all of the bad press automobiles have on the environment, it is actually the large skyscrapers that do more damage.

A low carbon society and economy is our medium term goal, with carbon neutrality for the long term. Business and government leaders need to educate a public that is aware of the effects of carbon, but may not actively be participating in its minimization. Consumers should understand that low carbon products have a value and that a change in lifestyle does not necessarily have to be as drastic as green pundits make it sound (Eat less meat!). There are costs to inaction and for this reason alone we cannot sit around and wait for the changes to happen. In this regard I feel that scientists and regulators are failing. Programs and projects are fragmented and often times complicated to understand. We need these great brains to spend as much time creating a palatable (clearer) approach for change as they do on finding a solution. If I myself am having a difficult time understanding what sort of changes to make in my organization and what the immediate benefits are, what more companies who are not as exposed to this industry? It is not about just throwing money into projects. It is about finding projects that can be tackled by companies and individuals of different financial, structural, environmental backgrounds. We need to understand how our immediate universe affects the environment and the quantifiable (maybe through carbon credits?) results of our actions.

Experts have given 2015 as the date before irreversible change occurs in our environment. I choose not to dwell on seemingly doomsday predictions, but I do agree that a change needs to be made, and quickly. It is time we all take our part in changing this world.

QUICK NEWS AND INTERESTS 04/15/08

Railway saves Tibet
Flying in from Beijing to attend the BOAO Conference in Hainan, I had the distinct pleasure of speaking to government ministers and leaders of different levels about Tibet (They were not too enthusiastic). My favorite response came from Shi Dahua the chairman of China Railway Group Limited, who proudly claimed that his railway line into Lhasa is actually saving the Tibetans. China is not only bringing them culture (really??) it is bringing them a way to save themselves as there is not too much oxygen in Tibet. Nicely put it is a way for Tibetans to leave and live in China, easily and efficiently. Wow. I nearly choked on that last point. Just thought I would share this wonderful pearl of wisdom.

BOAO Conference Hainan
This yearly conference is similar to Davos in Switzerland, except more focused on Asia. Business and Political leaders gather to share opinions, dispute ideas and find solutions to the challenges of the region and the world. It is a well-organized and high profile, 3-day event that brings together individuals who can actively make change in our world. The focus this year was the environment and what we can do as leaders to enact change. Our forums included Hu Jintao, Pervez Musharaff, Kevin Rudd, Nambar Enkhabayar, The President of Chile, The Prime Ministers of Sweden, Kazakhstan and Tonga, Nobel Prize Winners, Heads of companies like Google, COSCO, O and M, Samsung, SK, CCTV, Tata, and other notable organizations that my poor memory fails to recall. It was the first year I have been invited to this conference and I must say it was quite an intellectual feast. Putting this many people of varied and influential backgrounds together in one room is the best way to nurture and generate ideas that can make a difference in our world. For Filipinos, we represented a small delegation that included politicians and businessmen in the fields of banking, real estate, consulting, logistics, and distribution. While this year it felt like the Taiwanese + China negotiations took the stage, The Philippines can still be, politics aside, an excellent source of projects with solid returns. There were four of us who met in private with Vincent Siew to help strengthen business relations with Taiwan.

It is through conferences like this that I feel we can grow together as a region. With China in front, Asia can become a power to balance Europe and America.

NEW OLYMPICS, NEW BEIJING: MANY PROBLEMS

Tibet is still closed off to foreigners and the mood of local government leaders is certainly not pleasant. As briefly expounded by one of the vice ministers I attended a forum with recently: The reason Beijing is so irked with the Tibetan situation (over the humanitarian reasons of course), is because for the last few years the PR line and public mindset has focused and relied on the 2008 Olympics to be THE representation of all that is modern and impressive in China. Why does the Olympics need to be the opening act of Chinas entrance to the world stage? Is it not enough for it to be a great success? Why does the slogan chanted in the city have to be “New Olympics, New Beijing?” What is wrong with New Olympics, Old Beijing?

To host the Olympic games is certainly a great honor and responsibility, but this country has hyped it to an extent that any bad press has an almost double effect on the international view and mood on China. They will need to sober up a little bit, because this negative public view does not look to dissipate anytime soon. With the torch making its way to Beijing and with comparatively quite bit of stops to make (over 20), I would think there will be quite a bit of damage control in the coming months.

MY BEST FRIENDS AT THE MAPSA

I had another run in with the MAPSA recently, completely unjustified and therefore undeserving of my attention. I would usually at the least discuss it with the officer, but I had little patience with this organization due to a bribery run-in (I sent him packing empty handed) and an incident that happened last September. Plus I was having a bad day. Fortunately I was driving a vehicle that is both impossible to tow and intimidating. Let me make some things explicitly clear (researched online):

1) Unless you plowed into a person or vehicle, disregarded previous ticketed violations, or are in fear of your life, you do NOT have to give your license to a MAPSA officer. Please do not make the regrettable mistake of confusing MAPSA (yellow) with Police (blue). The latter can take your license and will make your life miserable.

2) You can be fined for using your cell phone (non-hands free) while driving. Do not bother arguing this one.

3) MMDA officers cannot group together to apprehend you. As unlikely as it sounds, you can argue and win this claim.

4) There is apparently an auction every Monday of the month. This takes care of cars abandoned or left at the impound for more than 6 months. Of course these auctions (I have tried) are hard to find, poorly advertised, and almost devoid of all good cars. The Vehicle Auction is also known as the public officials S and R.. Only government ID's accepted.

5) Swerving is not a traffic violation so long as you do not make drastic cuts across two lanes or more. Sneaking briefly into the yellow line section will get you a ticket. Note, this law does not apply to reckless PUJ or Bus drivers.

6) Do not pay bribes, it reinforces poor values and makes you an embarrassment to your country.

This brings me to my MMDA story. I am including a letter I wrote last September, where I felt the officer was being unreasonable and deserving of correction. I would like to share it because it is still unresolved and illustrates what we drivers put up with on a daily basis. The charge: I parked my car on purpose beneath a street light for safety, it so happened that in doing so I straddled two white “parallel parking slots” which were invalid anyway as it was past 7pm. The officer towed me anyway with a parking charge at 7:30pm.

I would like to express my concern over a situation that has left me irate and disheartened about the MAPSA officers that operate within Makati. I feel that it is my responsibility to share my experience/opinion in the hope that it will contribute to better service from the Makati City organizations...Receiving an unwarranted fine is not as bit a concern as the fact that the person who was supposed to assist citizens to make us feel safer, to make sure that those who follow laws are not taken advantage of by those who do not-- was not at all interested in my situation. He had a ticket and he wanted to use it. I am a citizen of this country and a resident of Makati City. I use my company to employ Filipinos and to contribute to the economy. I strive to create and maintain a respectable, ethical and socially responsible international image for my country. I pay taxes, contribute my time to local community efforts, assist in government directives, and take pride in watching my country develop into the Philippines we all know it can be. It irritates me to be preyed upon by individuals that treat their organization as a means to generate revenue, where reasonable explanations and citizens who genuinely try to follow laws are overlooked. Where his time and effort as a public officer is more important than my time and effort as a Makati resident. I told this MAPSA official that I preferred to watch my vehicle be towed than to accept his ticket and pay a fine. This is about the principle and my distrust towards an organization that is designed to service and protect me...I hope that this letter can make a difference... I feel that overall MAPSA is doing a good job keeping order. It is unfortunate that one officer can taint an opinion so quickly.

I mailed this out to Mayor Binay and Director San Miguel, both of whom responded promptly by studying and supporting my complaint, reinstating my vehicle, and handing me a receipt to reimburse my ticket and towing expense (as is expected). It has now been 6 months since the incident and each time I send someone to collect the reimbursed cash, they are still “waiting for the officer to return to the station.” I suppose he is on sabbatical, or possibly traveling the world with my 1200 pesos. It is unfortunate and petty, as I would have had my confidence reinstated in the MAPSA had they done the correct thing. Again, we are facing an organization that is more talk then action. Herein lies the root problem of the Philippines, manifested in an overrated and redundant organization. For those of us that want change in the country, we will need to just hike up our skirts and do it ourselves.

TO THE NORTH OR SOUTH?

I am enjoying a pleasant Easter Sunday draft beer, to celebrate my abstaining from asbstinance (it is justified somehow). I decided not to stray too far from Makati this break and instead, explore the possible sites for the future CBD of the Philippines. Both Pampanga and Canlubang have gotten an economic jump-start, so I am keen on investing further in these areas.

Nuvali, Canlubang
We left via chopper from Rockwell at around 10am, stopping briefly for drinks at Calatagan and the new NYK-TDG University in Cavite. I was with the wizened old founder of the leading consulting firm in the country, two businessmen in Shipping and Manning (one of which owns the university we visited), and a Solar Power entrepreneur. This trip was both the chance to survey the area and kick back with mojitos and wine at Antonio's for Easter Break. I have to say that I was astonished at the size of the Nuvali development, its absolutely massive. Ayala Land pegs it as “a new satellite city south of Manila, twice the area of Makati City and seven times that of Bonifacio Global City. Located in the old sugar estates of the Yulo family in Canlubang, the project covers over 1,600 hectares and has a timetable expected to span the next 40 to 50 years. The new lifestyle being introduced here is evolving, or the integration of nature and man in a harmonious living environment. It will provide the much needed relief for the highly congested Metropolitan Manila with its 15 million inhabitants.” This project has been in the pipeline for many years and has finally started; I guess Ayala was able to smooth over differences between the selling parties. It is much like Sim City. Ayala Land develops from scratch, the city of the future… ah the raw creative power… The highway leading to this development and the surrounding areas exist and are being improved, there will also be the new extension road that should ease congestion towards the San Juan, Pagbilao area. There is plenty of room to grow as it is relatively close to Manila/Makati/Alabang. Granted, the Fort and its surrounding area has not come close to being saturated, so Ayala is wise and conservative to expect the time table to run 40-50 years. Beyond the Nuvali lands is the expanse of undeveloped property under the Benitizes, basically from the South Super Expressway to the coast. If there is any chance of developing a well thought out, beautiful Filipino City this is the place to start.

Our sightseeing trip was topped off by a wholesome Antonio’s lunch with good wine to boot. Jetsetting from location to location via chopper has a decadent almost excessive feel to it, however, when you consider that you can complete your business related work, squeeze in an excellent meal, drop into the crater of Taal, and still make it back by 2pm—one realizes that perhaps it is not so much about being excessive as it is about being efficient with one’s time. Anyway, why do we work so hard if not to enjoy life!




Pampanga/Olongapo
Shifting gears and directions, I took off early on Friday to visit the other end of Luzon. The new Subic-Clark-Tarlac highway and my very “expedient” vehicle made quick work of the trip. Starbucks Valero to Subic: 1 hour and 10 minutes FLAT. I think I could have done it faster had there not been so much traffic due to the holy week break. I’ll need to upgrade to a 911 Turbo or Z06 to thoroughly stomp that time (I am so looking forward to it!).

I have always felt that the Pampanga area has been vastly underestimated and in many ways mismanaged. The area between Subic and Angeles should be the city of the future. It has both excellent sea and air ports (both special economic zones), plenty of land to develop, existing economies to enhance, and still a reasonable distance from our current CBD. Entities like UPS, Fed-Ex, APL and… the Koreans (pioneering bunch!) have all moved towards this direction. It should be in this area that the country turns instead of Nuvali. The highway will change many things, but in the end, it will wholly depend on the government who unfortunately has had a poor track record to date. We will have to see how things are going to be handled by the next administration; I hope stability will be at the forefront of their policies. From a personal point of view, I would love to hold office so close to excellent diving, beaches, rock climbing (well, closer anyway) and spelunking. Clark at one time was also my skydiving drop zone when Omni aviation was open. There is so much to do in this area and so much potential.

This will certainly be a topic to revisit, for us young businessmen; these cities give us a chance to get in a little bit early. This development and progress of these locations will be an interesting chapter in Philippine business history in the decades to come.