Manila Report Winter 2013 By Max Maquito, Michael Tomeldan (Nihongo Version) With a total of 87 participants, three corporate sponsors (thanks to the efforts of Architects Michael Tomeldan and Steph Gilles of the College of Architecture of the University of the Philippines), and a Radio Program Extension two days after the seminar (courtesy of Dr. Aliza Racelis of the College of Business Administration of the University of the Philippines), SGRA’s 15th Sustainable Shared Growth Seminar, held last February 8, 2013 (Friday), showed that the seminar could be a smashing success and at the same time be highly self-reliant. For the first time in the seminar series, the Philippine flag ceremony signaled the start of the seminar. Based on prior consultations with the Philippine organizing committee, it was unanimously decided, after members of the committee shared their family experiences of World War II, that the Japanese flag ceremony is done, as well. In deference, however, to the request of the senior representative of the Japanese entourage, it was decided to forego with the Japanese flag ceremony at this seminar. We are planning, however, to do the flag ceremonies of the two countries mainly responsible for the seminar series in the next seminar. The earnest wish of the organizing committee is for these two countries to get over, without forgetting of course, the horrors of the past war, and move on towards genuine and deeper Philippine-Japan relations. Seminar 15 was also significant in terms of providing a more concrete link between the two sub-themes of the seminar series, namely “Manufacturing and KKK” (Seminar 15’s theme), and “The Urban-Rural Gap and KKK” (Seminar 14’s theme). [Note: KKK is short for Kahusayan, Katarungan, Kalikasan] One link was in the morning presentation of Mr. Nonoy Moraca and Mr. Ramon Uy which talked about import-substitution in sustainable Agriculture. Dr. Max Maquito and Dr. Joe Medina are now working with the two authors on formulating a model for their approach, called the Downstream Integrated Radicular Import-Substitution (DIRI) model. Another link was in the afternoon session conceptualized by the U.P. College of Architecture which focused on the role of bamboo in providing social enterprise and housing. We actually started talking a couple years ago about the possibility of bamboo in the Philippines. Despite problems in developing the topic then, it was nice to see in this seminar that there is actually a wide resource and interest on this topic. Architect Ning Encarnacion-Tan pointed out that bamboo craftsmanship appears to be a 2,600-year old gene in Filipinos. Ms. Corrina Salzer spoke of how this endangered tradition could be preserved and improved using scientific methods. Dr. Florentino Tesoro gave an orientation on the biology of bamboos, including an estimate of the supply deficit of bamboos in the Philippines. Architect Beth Ochoa Regala also spoke of a supply deficit in social housing, and the need for a party to work towards the setting of standards for unconventional mass-housing building materials including bamboo. Mr. Francis Osorio showed an example of large-scale Vietnamese bamboo lumber manufacturer but proposed a backyard approach for the Philippines. Architect Raymond Sih spoke of an environmentally-friendly Japanese-based approach to concrete, which is still one of the most popular building materials at present. Another concrete link between the two major sub-themes of the seminar series was in the extension of the Giant-Leap-And-Small-Step (GLASS) effect discovered by Dr. Max Maquito since Seminars 13 and 14, which were under the sub-theme “Urban-Rural Gap and KKK”. The extension came in confirming the presence of the GLASS effect in the OFW flows. This extension found substantial foreign exchange savings from attenuation of the GLASS effect. Thoughts on the subject were shared by OIC Cheng Veniles and Ms. Reina Marie Calvo of the Commission on Filipinos Overseas. The remaining presentations were very much related to the labor issue, since the co-host, the UP SOLAIR, was one of the premier labor institutions in the Philippines. Dean Sale, in the keynote speech, proposed the intriguing hypothesis that employment was not significantly improved by the IT industry. Prof. Benji Teodosio lamented about the pathetic lack of trust in labor relations. Dr. Aliza Racelis stressed the need for a study on the ethics of Philippine corporations. Another set of studies related to labor was the survey conducted by Prof. Hitoshi Hirakawa and Dr. Shin Kawai for Vietnamese manufacturing firms, and Dr. Max Maquito and Prof. Hirakawa for Philippine manufacturing firms. The Vietnamese study was focused on how Vietnam could avoid the middle income trap, while the Philippine study was on how the Philippines could free itself from this trap. This joint project between Prof. Hirakwa and SGRA was responsible for making this research possible and bringing a research team from Japan. With only plenary sessions, the seminar participants were able to enjoy a truly multi-disciplinary, multi-sectoral, and even multi-national seminar. Indeed, the ability of the SGRA KKK seminars and the Philippines, for that matter, to achieve KKK lies in its breaking through the often jealously-guarded barriers among disciplines, sectors, and nationalities. Already there is talk of holding Seminar 16 in August 2013! Of course, talks will only become serious after SGRA’s First Asia Future Conference (AFC) in Bangkok (March 8 to 10, 2013). A 15-strong Philippine delegation, mostly presenters in Seminar 14, will be participating. Should you wish to volunteer for the organizing committee of Seminar 16, however, do let us know after the AFC (e-mail: [email protected]) Special thanks go to Dr. Aliza Racelis, Architect Mike Tomeldan for moderating the sessions and to Architect Josie Santos De Asis for keeping the sessions on track. Of course, everyone was missing SGRA Chief Representative Junko Imanishi who is always behind the seminar. Preparations for the 1st AFC regrettably made her unable to attend this seminar. Some additional news related to the Japan-Philippine Shared Growth Seminars are as follows. Dr. Medina and Fr. Vergara, who participated in the 15th Japan-Philippine Shared Growth Seminar, made presentations at the International Symposium on "Environmental Friendly Agriculture Based on Community Resources: A Strategy for Sustainable Development and Biodiversity" held on March 2, 2013 at the University of Tokyo. Maquito presented the DIRI model in Japan. SGRA's participation was made possible by Prof. Toru Nakanishi who is doing research on the urban poor and sustainable agriculture in the Philippines. For details, please see the link below http://www.aisf.or.jp/sgra-in-english/2013/03/sgra_at_university_of_tokyo_sy.html The following papers, which were briefly presented in the 14th Japan-Philippine Shared Growth Seminar, were honored to be chosen as one of the Best Papers in the 1st AFC: "Community-Life School Model for Sustainable Agriculture Based Rural Development" by Rowena Baconguis and Jose Medina "The Migration Link Between Urban and Rural Poor Communities: Looking for Giant Leaps and Small Steps" by Ferdinand C. Maquito At the same time, the following presentation, which was also briefly presented in the 14th Japan-Philippine Shared Growth Seminar, was chosen as one of the Best Presentations: "Barangay Integrated Development Action in Kapangan Towards WASH" by Jane Toribio, Delfin Canuto, Roberto Kalaw The following paper, which was briefly presented in the 15th Manila Seminar, was presented at the 20th anniversary symposium of the Vietnam Asia-Pacific Economic symposium (also celebrating the 40th anniversary of diplomatic relations between Japan and Vietnam) held in Hanoi on March 12, 2013: "Patterns in Overseas Filipino Worker Flows: In Search of the Giant Leap and Small Step Effect" by Ferdinand C. Maquito. SGRA's participation in this symposium was made possible by Prof. Tran Van Tho, who has always invited Maquito as a specialist on the Philippines. Prof. Tran indicated his agreement with Maquito's basic recommendation of bringing back home as much as possible the OFWs in order to power the domestic economy. The online portal for the seminar could be found here For photos of the seminar, please look at the SGRA Photo Gallery or the SGRA Ph Facebook Information on the 1st AFC could be found here For photos related to this Manila Report, please take a look at Manila Report Winter 2013

In my visit to Manila last August, I had interesting discussions with educators at the University of the Philippines (UP) regarding the two concepts of “Shared Growth” (SG) and “Inclusive Growth” (IG). In 1993, the World Bank came out with the “East Asian Miracle” report which used the word SG to summarize the economic performance of eight East Asian countries/economies [led by Japan], which were able to grow rapidly while improving their income distribution. As a graduate student then, I was attracted to this phenomenon, and at every chance I had continued to do my research on this concept. On the other hand, IG was adopted as one of the pillars of this region’s economic development strategy when Japan became the chair country for the APEC summit in 2010, and has become a buzz word in the field of economic development. It can be seen that Japan has played an important role in promoting both concepts.   At first glance, the two concepts appear to be the same, since both seek a growth which would eliminate economic disparities. Moreover, as somebody who has emphasized for many years now that Japan should put importance on its country’s peculiar features, I should be happy that a development strategy that seeks to balance efficiency and equity is once again being proclaimed. But, I seem not prone to be so. The Philippine government’s economic planning agency has even inscribed IG in its medium-term plan, and I have encouraged caution in the use of this term among UP educators. This is because that the two concepts have crucial, albeit subtle, different connotations.   The differences between the two concepts are as follows.   1. SG is an older term than IG, but the former still applies to the current situation. In short, the idea of equity + efficiency is not something that Japan has just recently became aware of. 2. The possibility of SG is based on Japan’s experience, which tends to differ from that suggested by mainstream economics. It was because of Japan’s aggressive lobbying on the World Bank that resulted in the “East Asian Miracle” report. 3. The economic strategy of SG is different from the market fundamentalism that is proposed by mainstream economics, since SG considers as important the role of [a more pro-active] government. On the other hand, IG leans towards market fundamentalism.   Based on the differences above, we can confirm that SG is a more powerful economic strategy than IG. When the SG strategy was published in the “East Asian Miracle” report, Japan was in a financially strong position and was, therefore, able to go against the mainstream. At that time, Japan was being told to “put up and shut up”, but instead it commendably took the position of “putting up [the money = Official Development Assistance] as well as not shutting up”. However, right now, Japan is not really in a good financial position, so it is very much possible that her independent proposals on economic development would be taken lightly. Could such a Japan, as in the past, be able to put forward an effective proposal?   I would like to answer “yes, she can!” Despite a weak financial position, the Japanese economy possesses the SG DNA, which I think she could emphasize when making development strategy proposals.   The SG strategy was coined in the 1993 World Bank report, but it was already being implemented several decades prior to the report. In short, SG was a concept that preceded IG by more than twenty years. I think that this tells us just how natural and important for Japan were the economic goals of efficiency + equity. It is in no way like IG, which seems to have recently popped up. The future of about three-fourths of the world’s population should not be treated as some kind of buzz word popularity contest.   The SG strategy is based on the Japan’s own experience. In economics, balancing efficiency and equity is very difficult, but Japan has showed that this is possible. On the other hand, IG has not been actually achieved, and remains an ideal or an aspiration. Some may say that IG is more appropriate to the present time, but this at best could only refer to the lost decades of Japan, where equity + efficiency were lost.   IG leans toward the market fundamentalism of mainstream economics, wherein the government plays the role of a referee. The government decides and implements the rules regarding the game (competition) in the market. In contrast, SG concedes the government’s selective intervention, wherein the government acts more like a coach. Together with the firms in the front line of competition, this government would mourn over loses, rejoice over victories, and burn with intensity over the contest. Such a government has actually contributed to improving the competitiveness of Japanese firms.   Looking back, it was such a picture of Japan that I was enamored to devote my life’s work. My activities in SGRA started with this plea for respecting such aspects of Japan’s identity. [SGRA’s] Manila Seminars are held under the philosophy of SG. The development concept/strategy of SG, which was cited in the “East Asian Miracle” report, requires further clarification, a task that I have been undertaking through SGRA’s activities.   Thankfully, plans are now underway to hold the 15th Manila Seminar on February 8, 2013 at UP, under the theme “Manufacturing as if People and Mother Nature Mattered”. In this seminar, we will be reporting the results of the survey research of Professor Hitoshi Hirakawa of Nagoya University on “Symbiotic Regional Institution Building Towards a Knowledge-Based Economy in Asia”. Together with Prof. Hirakawa, I had a chance to pay a courtesy call on Dean Sale of the School of Labor and Industrial Relations of UP, who was very encouraging in his active support of the SG concept.   Now more than ever, Japan has to be forthright in speaking of the good aspects of her identity. Wavering at this point is not very “CooL Japan” [a movement in Japan to emphasize the good points of her culture] and would only continue to invite widespread confusion.   During my last visit, we also had the pleasure of the company of Professor Toru Nakanishi of the University of Tokyo during our meeting for the 16th Manila Seminar, among other issues, tentatively to be held on August 2013. Despite the media reports in Spring of this year regarding the cancellation of tours from China to the Philippines, the increased stringency on China’s imports of primary goods from the Philippines, and the plight of Philippine workers in China, I was able to confirm in this meeting that “scholars should go beyond the conflicts of governments, and attend the Shanghai conference [Asia Future Conference] for as long as it is possible to do so”. We go for the sake of scholarly exchange. I was deeply moved by the burning resolve of my Philippine comrades.   For photos related to this Manila Report, please see the links below. Visits [SGRA Photo Gallery] Meeting at the UP College of Architecture [FaceBook]   SGRA Kawaraban 353 in Japanese (original)

Theme: "The Urban-Rural Gap and Sustainable Development"Date/Venue: April 26, 2012 at the School of Labor and Industrial Relations, University of the Philippines (UP)Co-organizers: UP College of Architecture, UP Department of Mechanical Engineering, Philippine Center for Water and Sanitation For more details, please see the following links: <a href="http://www.aisf.or.jp/sgrainenglish/manilaseminars/Seminar14CFP.pdf">Call For Participants</a><a href="http://www.aisf.or.jp/sgra-in-english/seminar14/Seminar14Program425.pdf">Seminar Program</a><a href="http://www.aisf.or.jp/sgrainenglish/manilaseminars/Seminar14Register.pdf">Registration Form</a>

Rural and Urban Poor Communities - December 17, 2010 Brief Description of Seminar Content This seminar focuses on poor communities in both the rural and urban sectors of the Philippines, as part of this series‛ ongoing research and advocacy on shared growth. Being collective institutions, communities are natural mechanisms of sharing. What is less clear, however, is how communities contribute or not contribute to growth. This seminar hopes to provide some insights into this issue, which could then be the basis of future policy-oriented research work. Seminar 13 PowerPoint Presentations: 1. <a href="http://www.aisf.or.jp/sgrainenglish/SGRAManilaSeminar13a.pdf">Community Dynamics Among the Urban Poor</a> 2. <a href="http://www.aisf.or.jp/sgrainenglish/SGRAManilaSeminar13b.pdf">Linking to Shared Growth: From Giant Leaps to Small Steps</a>

Shared Growth and the Environment:The Case of Urban Land Transportation OUTLINE OF PROGRAM ( as of Mar. 31, 2010 )Date: April 28, 2010 (Wednesday) 1:30 to 5:30 PMVenue: Room 301, 3rd Floor, APEC Communications Building University of Asia and the Pacifi c, Ortigas Center, Pasig, Metro ManilaProgram1:00 - 1:30 PM REGISTRATION1:30 - 1:45 PM OPENING REMARKS by Dr. Bernie M. Villegas , Member of the Board, UA&P1:45 - 2:30 PM KEYNOTE: “Environmentally Sustainable Transportation (EST)”, Dr. Jose Regin Regidor, Director, National Center for Transportation Studies, UP2:30 - 2:50 PM “Environment-Friendly Energy: The Case for Natural Gas”, Dr. Edwin Quiros, Professorin-Charge, Vehicle Research Testing Laboratory, UP2:50 - 3:10 PM COFFEE BREAK3:10 - 3:25 PM “Philippine Automotive Manufacturers: Meeting the Challenges of Sustainable Urban Land Transportation”, Mr. Ben Sevilla, Executive Director, PACCI3:25 - 3:45 "Linking to Shared Growth”, Dr. Max Maquito, Research Consultant, SGRA3:45 - 4:15 PM COMMENTS Mr. Bimbo T. Mills, Jr., President, Pilipinas Hino, Inc.Government Representative (TBA)4:15 - 5:30 PM OPEN FORUM and CONCLUDING REMARKS Moderator: Dr. Peter Lee U, Dean, School of Economics , UA&PSeminar 12 PowerPoint Presentations: 1. <a href="http://www.aisf.or.jp/sgrainenglish/SGRAManilaSeminar12a.pdf">National EST Strategy for the Philippines</a>2. <a href="http://www.aisf.or.jp/sgrainenglish/SGRAManilaSeminar12b.pdf">Towards an Environment-Friendly Bus Transport Along EDSA</a>3. <a href="http://www.aisf.or.jp/sgrainenglish/SGRAManilaSeminar12c.pdf">Philippine Automotive Manufacturers: Meeting the Challenges of Sustainable Urban Land Transportation</a>4. <a href="http://www.aisf.or.jp/sgrainenglish/SGRAManilaSeminar12d.pdf">Linking to Shared Growth</a> <a href="http://www.aisf.or.jp/sgrainenglish/SGRAManilaSeminar12Speakers.pdf">Seminar 12 Speakers</a>

SGRA Shared Growth Seminar (Workshop) 1:00 – 1:30 Registration1:30 – 1:40 Opening Remarks, Mr. Feliciano Torres, Chairman (PACCI)1:40 – 2:10 May 2009 Note of the Shared Growth Roadmap, Dr. Max Maquito, Research Consultant (Sekiguchi Global Research Association)2:10 – 2:40 Government Reaction (BOI and PIDS)2:40 -- 3:00 Coffee Break3:00 -- 3:30 Industry Reactions3:30 -- 4:00 Open Forum, moderated by Dr. Peter Lee U (Dean, School of Economics, University of Asia and the Pacific)4:00 -- 4:30 Some Additional Thoughts to the Roadmap4:30 -- 5:00 Next Steps: A Roadmap to the Roadmap

Towards a Naval Architecture and Marine Engineering Program at the University of the Philippines Mechanical Engineering

Towards a Naval Architecture and Marine Engineering Program at the University of the Philippines Mechanical Engineering

Roadmap for Shared Growth through The Philippine Auto Industry OUTLINE OF PROGRAM (as of July. 30, 2008)Date: August 7, 2008 (Thursday) 2:30 to 6 PMVenue: PLDT Hall, 4th Floor, APEC Communications Building University of Asia and the Pacifi c, Ortigas Center, Pasig, Metro ManilaProgram2:30 - 3:00 PM REGISTRATION3:00:- 3:15 PM EXPLANATION OF WORKSHOP MECHANICS3:15 - 4:15 PM WORKSHOP PART 1: A SOCIAL CONTRACT PERSPECTIVE TO THE ROADMAP4:15 - 4:30 PM BREAK4:30 - 5:45 PM WORKSHOP PART 2: SUPPORT SCHEMES VERSIONS 1 AND 2*Workshops will be jointly moderated by Dr. Peter Lee U (University of Asia and the Pacific)and Dr. Max Maquito (Sekiguchi Global Research Association, Tokyo)5:45 - 6:00 PM NEXT STEPS

Roadmap for Shared Growth through The Philippine Auto Industry OUTLINE OF PROGRAM (as of July. 30, 2008)Date: August 7, 2008 (Thursday) 2:30 to 6 PMVenue: PLDT Hall, 4th Floor, APEC Communications Building University of Asia and the Pacifi c, Ortigas Center, Pasig, Metro ManilaProgram2:30 - 3:00 PM REGISTRATION3:00:- 3:15 PM EXPLANATION OF WORKSHOP MECHANICS3:15 - 4:15 PM WORKSHOP PART 1: A SOCIAL CONTRACT PERSPECTIVE TO THE ROADMAP4:15 - 4:30 PM BREAK4:30 - 5:45 PM WORKSHOP PART 2: SUPPORT SCHEMES VERSIONS 1 AND 2*Workshops will be jointly moderated by Dr. Peter Lee U (University of Asia and the Pacific)and Dr. Max Maquito (Sekiguchi Global Research Association, Tokyo)5:45 - 6:00 PM NEXT STEPS