the censei report (vol. 2, no. 7, february 20-26, 2012)

Center for Strategy Enterprise amp Intelligence provides expertise in strategy and management enterprise development intelligence Internet and mediaFor subscriptions research and advisory services please e-mail reportcenseisolutionscom or callfax +63-2-5311182 Links to online material on public

websites are current as of the week prior to the publication date but might be removed without warning Publishers of linked content should e-mail us or contact us by fax if they do not wish their websites to be linked to our material in the future

NATION

TECHNOLOGY

WORLD

Strategic Analysis and Research by the CENTER FOR STRATEGY ENTERPRISE amp INTELLIGENCE

Volume 2 - Number 7 bull February 20-26 2012

Holy Father can you omit the lsquoshedding of your bloodrsquo when you present me with the biretta Of course not We are but lsquoscarlet audio-visual aidsrsquo for all of our brothers and sisters also called to be ready to suffer and die for Jesus

~ New York Archbishop Timothy Dolan seen as a possible future pope after receiving the red biretta hat among 22 new cardinals of the Catholic Church

His mother thinks so~ Cardinal Edwin OrsquoBrien retiring Baltimore archbishop in deadpan reply to

media asking if Dolan was papal material

POINT amp CLICK

You can access online research via the Internetby clicking phrases in blue

BUSINESS

CONTENTS BUSINESS NATION WORLD TECHNOLOGY

cenSEIT H E

Report

4 The Big Business of BeautyThe hit products and hip firms that make the enterprise of looking good so lucrativebull Eye of the shareholder Hot trends to capitalize on in the pulchritude tradebull Going under the knife The top cosmetic procedures around the worldbull All the presidentrsquos ladies President Aquinorsquos standards of beauty

12 Digital Pirate NationBootleg movies music and apps offer fun on the cheap but whatrsquos the real cost to the countrybull No cameras please Will the law banning lsquocamcordingrsquo in cinemas finally pass bull Downfall of the downloads Shutting down the file-sharing sitesbull Watch list and priority watch list status What does it mean to be lsquowatchedrsquo bull Congress blinks An Internet blackout shelves a US anti-piracy billbull lsquoPiracy is the new radiorsquo Facebook and YouTube posts plug music Is that bad

22 45 Titles 10 Accounts and One lsquoSmall LadyrsquoFor five weeks the impeachment prosecution uses Senate subpoenas to gather evidence of allegedly undeclared or misdeclared assets including dozens of property titles and several multimillion-peso deposits But some of its own witnesses cast doubt the prosecutionrsquos accusations A Special Impeachment Report

32 The World According to DavosIn the last week of January at the ski resort of Davos in the Swiss Alps the annual World Economic Forum gathered leaders of government business social and international bodies to deliberate and collaborate in creating a better world Key issues China and America the world economy and top global risks in 2012

40 For Facebook and Google Your PCIs Just One Big Two-Way MirrorGooglersquos new privacy policy and Facebookrsquos coming public share offering are stirring up concerns over the commercial use of Internet browsing data all the way to what you type and click What exactly are businesses keeping tabs on and how can you hide from the data mining snoops

The cenSEI Selection Engage Educate and EdifyIn our information age inundated by words and numbers sounds and images just clicks away online the real challenge is not in getting enough data but in sorting analyzing selecting discarding and otherwise extracting meaningful and useful knowledge from the oceans of bits bytes and ldquobullrdquo

In this daily sifting through print broadcast and broadband The cenSEI Report always seeks strategic import as well as diversity and breadth of coverage eschewing the easy grab-bag of headline topics for what truly has wide and significant impact That often means searching for below-the-radar issues and developments to alert our readers ahead of the crowd and provide them expert insight and data from both in-house staff and online studies

Take the current issuersquos crop of five articles Our lead report on the beauty business takes the universal quest for youth and looks and turns it into a package of material with increasing bottom-line impact for the foreseeable future After all as Asiarsquos billions get richer high on their spending list would be the products procedures and services which enhance shape skin smile and style

Our Technology story on Facebook and Google may seem just another paean to todayrsquos hottest ventures riding on the news of the formerrsquos public share offering and the latterrsquos new privacy rules In fact the article zeroes in on the lesser known gold mine in both these online behemoths data mining Sure there are billions of dollars to be made in online ads But the data gathering and crunching that tailors and channels messages for greatest sales impact mdash thats the real prize mdash and peril

Even after defining the strategic aspects of an issue or event the work gets no easier for the Internet now yields material in tons on any topic The Corona impeachment coverage offers video clips legal doccuments and commentary plus blogs and tweets For this weekrsquos recap of the first five weeks evidence and legal issues are the focus for they are the starting point of the quest for justice

The digital piracy story is another that recent news has ignited a bit But whatrsquos newsy is often not whatrsquos important Our report tackles a question often taken for granted What exactly does the country get from fighting piracy besides pleasing Big Brother America The same questioning of dominant Western perspectives animates the World Economic Forum roundup culling the choice cuts most relevant to Asians from the rich buffet of big names and bigger ideas at the conference in Davos

Thatrsquos the cenSEI selection this week We hope our choices engage educate and edify

4cenSEI

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Report


Our obsession with beauty translates into big bucks all over the world

Since the time of the ancient Romans Egyptians and Greeks mankind has put a premium on beauty as evidenced by archeological finds that point to the use of cosmetics and perfumes thousands of years ago Oftentimes women would go through great pains to look attractive depending on what the ideals were at the time eg the bygone practice of foot-binding in China

All this for the sake of beauty

Present-day Philippine society is no exception The countryrsquos beauty industry has shown steady growth over the years in

no small part because of the Filipinorsquos love of beauty Judging from rows upon rows of skin creams body wash hair products cosmetics whitening lotions supplements promising a leaner body or glowing skin and perfumes in retail stores together with the proliferation of hair and nail salons spas and aesthetic clinics in almost every nook and cranny of the city the local industry is thriving

An article on the Cosmetic Business website ldquoSoutheast Asia ndash strength in diversityrdquo cites Euromonitor International in reporting that all sectors of the local

BUSINESS

STRATEGY POINTSEven while international firms continue to dominate and an emphasis on Western ideals persists accommodating local standards will become increasingly important in order to compete in emerging markets

By Marishka Noelle M Cabrera

The Big Business of Beauty

5

The cenSEI Report bull February 20-26 2012

The big business of beauty

cosmetic industry posted growth from 2008 to 2009 Beauty and personal-care product sales totaled $226 billion a 2 rise Moreover international firms dominate the local health and beauty landscape with Avon Colgate-Palmolive Co Johnson amp Johnson Inc and Unilever leading the way

The article also reported that between January 2009 and January 2010 511 new cosmetics products were launched in the Philippines according to market research group Mintel with the highest number of products (176) being in skin care followed by soap and bath products (131) and hair products (108)

Because of tight competition from global brands local company Splash Corporation targets market niches instead According to its 2010 annual report as filed with the Securities amp Exchange Commission skin whitening and exfoliants remain the top revenue contributors The company cites AC Nielsen in saying that Splash Corporation remains the leading local

personal-care company fifth behind Unilever and Procter amp Gamble

The globalization of beauty Geoffrey G Jonesrsquo ldquoGlobalization and Beauty A Historical and Firm Perspectiverdquo chronicles the history of the modern beauty industry from its 19th-century beginnings ndash when industrialization made mass production possible ndash to the multi-billion-dollar (more than $330 billion in 2008) industry it is today ndash from a $2-billion industry dominated by Europe and the US to a $330-billion industry where non-Western countries (Japan Brazil Russia India and China) account for 33 of the market

In recent decades the Isidor Straus Professor of Business History at Harvard Business School says the sale of beauty products in both ldquoemerging and transition markets has been phenomenalrdquo The markets of Brazil Russia India and China themselves now account for about one-fifth of the entire beauty market

Global Beauty Market (todayrsquos $ billion)

9

15

57

330

45

29 56

26 57

32 38 13

1422 1931

45

Source ldquoThe Evolution of the Global Beauty Industryrdquo a presentation by Geoffrey Jones at the Universidade Nova de Lisboa

SEEING POTENTIAL IN ASIA AND LATIN AMERICA

6cenSEIT H E

Report


It should be noted nonetheless that while globalization has greatly contributed to the homogenization of beauty ideals and practices local standards for beauty and practices remain resilient according to Jones

ldquoCertainly as trends in cosmetic surgery illustrate the legacy of the first wave of globalization and its emphasis on the Western beauty ideal persists But the leading firms in the beauty industry certainly now find themselves struggling with the challenge of how to respond to consumers who require increasingly nuanced mixtures of the global and the local in the brands they buyrdquo he explains

Asia and Latin America to dominate cosmetics sales by 2015 ldquoThe Global Post-Recession Beauty Industry A Survival Guiderdquo a presentation by Carrie Lennard of Euromonitor International discusses the recent performance of the industry and its prospects It is predicted that Asia and Latin America will dominate beauty and personal care sales by 2015 as shown in the chart below

Mass cosmetics meanwhile will drive future growth as the share of global premium cosmetics declines as shown in the following chart

In a nutshell firms now have to garner a profound understanding of the rituals and behavior of a particular culture like that of Asians if they want to be relevant in the market ldquoA deep and lasting engagement with the Asian consumer in beauty will require a fundamentally broadened notion of its value and its role across the worldrdquo according to Nazia Hussain in her report ldquoNot just a pretty face the cultural concepts of beauty in Asiardquo

Hussain who is Director of Cultural Strategy at advertising giant Ogilvy amp Mather observes that while Westernized ideals of beauty have been exported wholesale to other parts of the world over the last few decades in recent history global brands and companies now understand they need to ldquoconnect more empathetically with the cultural traditions that pre-dated their arrival and as consumers themselves begin to demand

Source ldquoThe Global Post-Recession Beauty Industry A Survival Guiderdquo presentation by Carrie Lennard Euromonitor International April 2011 in London

THE BILLION-DOLLAR MARKET MAsia and Latin America to Dominate Beauty and Persona Care Sales by 2015

Sales in US$ billion

Source ldquoThe Global

7


notions of beauty that are closer in essence to their needs and valuesrdquo

According to Hussain ideals of beauty and femininity in Asia have developed differently from those in Europe and America for a variety of socio-political and historical reasons Even if feminism was an issue that struck a chord around the world in Asia ldquobeauty was never deliberately forced into a narrative of emancipationrdquo

The Asian concept of beauty for instance celebrates ldquovery feminine physical beautyrdquo and ldquoboth external beauty and internal worth being seen as equally valid and necessary parts of being a whole womanrdquo The Western concept of beauty meanwhile has been wrapped in a philosophical and moral debate over whether physical beauty is an indication of spiritual beauty and conversely whether ugliness was ldquoa sign of the bad mad and the dangerousrdquo

The pressure to be beautiful is more intense In any case the pressure to be beautiful and look younger appears to be more intense than ever Last year Vogue

Trends in the beauty industry As in fashion beauty fads come and go But here are some deeper trends that will be shaping the industry in the near future

bull Mass cosmetics

Cosmetic companies Carrie Lennard says in her article in Skin Inc will be focusing more on the mass market as in Latin America and even in premium-dominated markets like Japan There is a growing perception that mass cosmetics can offer similar quality as their high-end counterparts

bull Au Naturel

A shift toward the natural and organic can be observed with the rise of natural personal care product sales The Brazilian market for these products Natural Cosmetic News reports ldquohas ballooned at a 20 compound average growth rate (CAGR) since 2005rdquo Asia will remain a large market for such products because of the continentrsquos tradition and belief in natural remedies

bull Teen and tween crowd

In a new study by market intelligence firm Mintel 61 of girls aged 9-11 ldquowould like to wear makeup more than their parents allowrdquo Kat Fay Mintelrsquos senior beauty analyst suggests ldquoIn order to attract this group and get support from parents products must be subtle in appearance and emphasize that ingredients are safe for young skinrdquo

bull China

In an article in Womenrsquos Wear Daily more and more brands are turning their attention to China and creating products specifically for the Chinese consumer because of the wealth of potential in the countryrsquos lesser-developed and youth-oriented markets

MASS COSMETICS DRIVE GROWTH

Post-Recession Beauty Industry A Survival Guiderdquo presentation by Carrie Lennard Euromonitor International April 2011 in London


8cenSEIT H E

Report


Paris came under fire for its fashion editorial featuring 10-year-old French model Thylane Loubry Blondeau striking poses normally reserved for much older models ldquoWersquore perpetuating a cradle-to-grave expectation of hotnessrdquo an article from Time reads The pressure to be physically attractive the article argues is ldquostarting earlier and lasting longerrdquo

All too often the media reinforces a certain standard of beauty by bombarding audiences with images of say the pretty svelte and young girl with lush hair and smooth skin who seems to have it all ldquoBy presenting an ideal difficult to achieve and maintain the cosmetic and diet product industries are assured of growth and profitsrdquo argues the Canada-based Media Awareness Network in the article ldquoBeauty and Body Image in the Mediardquo Thus it is no accident the article posits that youth and thinness are propagated as the essential criteria for beauty since few can attain them

Interestingly merely looking at advertisements can make a woman feel worse about herself as The New York Times reports Featured in the report is a study published in The Journal of Consumer Research ldquoThe Self-Activation Effect of Advertisements Ads Can Affect Whether and How Consumers Think About the Selfrdquo It says that when products are placed in an advertisement context they can become more desirable and can thus ldquoexert self-evaluative effects on consumersrdquo Culled from the study the report notes a deflated sense of self could ldquolead to lower buying intentionsrdquo or it may also be the ldquotrue basis for lsquoshopping therapyrsquordquo

Going under the knife A look at cosmetic surgery procedures Based on the survey by the International Society of Aesthetic Plastic Surgery the top surgical and non-surgical procedures performed across the globe include

- Lipoplasty or liposuction is the number one surgical procedure in the world It ldquoslims and reshapes specific areas of the body by removing excess fat depositsrdquo according to the American Society of Plastic Surgeons - Breast augmentation Though one of the most popular cosmetic surgeries breast augmentation is not without at least a dozen possible complications The US Food and Drug Administration lists breast pain sagging uneven appearance hematoma or the collection of blood near the surgical site and seroma or the collection of fluid around the implant as among the adverse effects that can occur in ldquoone percent or more of patients at any time after breast implant surgeryrdquo

- Blepharoplasty is the ldquosurgical modification of the eyelidrdquo and is a common among Asians CNN follows a patientrsquos journey in getting the eyes she has always wanted

- Buttock augmentation In 2009 doctor-to-the-stars Dr Vicki Belo faced raps (and was acquitted) over a hydrogel butt augmentation procedure on a patient that led to an infection Buttock augmentation involves using silicone implants or fat from the patientrsquos body

- Botox is injected into an area in order to relax the contraction of the muscle thereby minimizing the appearance of wrinkles Singer Charice Pempengco reportedly got Botox injections before her 2010 debut on the teen series ldquoGleerdquo

- Laser-assisted Lipoplasty To get her knockout figure Maria Geraldine ldquoJinkeerdquo Pacquiao wife of world champion boxer and Congressman Emmanuel ldquoMannyrdquo Pacquiao underwent among other procedures laser-assisted liposuction a non-surgical procedure which ldquomelts unwanted fat before it is taken out of the bodyrdquo according to an ABS-CBN report

9


And so it goes beauty is both a blessing and a curse The beauty industry thrives and grows at a steady pace because of mankindrsquos obsession with beauty and the societal pressure that goes with it For consumers beauty-enhancing products and treatments are the answer to their prayers and companies are more than willing to oblige On the flip side the endless quest for an unattainable ideal has led to depression eating disorders low self-esteem and even Body dysmorphic disorder a mental illness wherein the patient is overly concerned with body image manifested by a preoccupation with a perceived defect in hisher physical attributes

The economics of being pretty Then again the quest for beauty may be as much about economics as about vanity In a report from 20|20 Skills the human resources assessment firm suggests that physically attractive people generally receive more benefitsmdashgetting hired earning more persuading othersmdashthan less attractive people ldquoThe natural tendency to ascribe all sorts of positive traits to beautiful people also means that we give them more breaks in liferdquo the report notes

Moreover a Newsweek poll (under the direction of Princeton Survey Research Associates International) indicates that 64 of Americans regard physical appearance as essential in their ldquoability to get ahead in the workplacerdquo Americans also rate ldquoappearance somewhat higher as a factor in landing a jobrdquo while 78 say that ldquovery overweight people have a harder time getting ahead at workrdquo

Meanwhile a 2002 article from Time ldquoChanging Facesrdquo tells of the life-changing

procedures individuals from Asia had to undergo to land a job keep a job or find confidence In Asiarsquos booming cosmetic surgery market getting liposuction breast implants nose jobs blepharoplasty a procedure in which ldquoa crease is created above the eye by scalpel or by needle and threadrdquo and ldquoliftsrdquo are increasingly becoming commonplace And with tight competition workers can only set themselves apart by looking more attractive

Moreover the article says ldquoThe culturally loaded issue today is the number of Asians looking to remake themselves to look more Caucasianrdquo Thanks to the bombardment of images of Hollywood celebrities and gorgeous supermodels from the West the regionrsquos aesthetic ideals are shifting ldquoAsians are increasingly asking their surgeons for wider eyes longer noses and fuller breasts features not typical of the racerdquo the article notes

In a survey conducted by the International Society of Aesthetic Plastic Surgery Asia ranked number one in terms of the number of surgeons and procedures performed in 2010 with over 9512 plastic surgeons and over 58 million procedures North America ranked number two followed by Europe and South America

The United States however has the most number of plastic surgeons and procedures performed with Brazil and China trailing behind


10cenSEIT H E

Report


The potential in beauty According to Geoffrey Jones ldquoBeauty emerges as an industry which was easy to enter but hard to succeed atrdquo In a QampA for Harvard Business Schoolrsquos Working Knowledge Jones explained that in entering the beauty business not ldquoa great dealrdquo of capital and technological know-how is needed Being a highly competitive industry one must have ldquohigh levels of imagination and creativityrdquo and the ability to adapt quickly to fast-changing trends in order to succeed in the business

As with most businesses these days innovation is vital in capturing the discerning consumer Lennard suggests the use of online marketing (increasing online presence blog or ldquovlogrdquo (video blog) sponsorships beauty apps and infomercials) and enriching in-store customer experience

Opportunities for both new and existing markets in this continually evolving industry will emerge New players are most welcome given the industryrsquos low barrier to entry In Inccomrsquos Best Industries for Starting a Business 2011 the beauty industry which includes barbers cosmetology schools and nail salons was among the 17 most promising industries that year along with online dating and matchmaking real estate appraisal language schools environmental consulting and financial planning advice and investment

Call it a blessing or a curse or both and regardless of whether wersquore discussing Western ideals or local standards beauty has become big business all over the world

All the Presidentrsquos women Before dating radio and TV personality Grace Lee these beauties caught the eye of President Benigno Aquino III Does the president stick to a particular type You be the judge

1 Korina SanchezAccording to Spotph the romance with Korina married to Sec Mar Roxas since 2010 must have happened between the late 1980s to early 1990s

2 Barbara MilanoUnknown to many this sexy actress dated Aquino during one election

3 Bernadette SembranoThe broadcast journalist admitted she and Aquino broke up because they were ldquotoo busyrdquo with their careers

4 Shalani SoledadNewly married to Pasig Representative Roman Romulo the Valenzuela councilor started dating Aquino in 2008 The couple broke up sometime in 2010 the year he became president

5 Liz UyAquino confessed to dating the fashion stylist in late 2010

6 Bunny CalicaThe two were spotted at the Hotdog reunion concert in May 2011

Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11


NEWS ON THE NET Business

Samsung boss sued by brother over fathers inheritanceSamsung group chairman Lee Kun-Hee 70 is being sued by his brother over a multi-million dollar dispute involving the inheritance of eight million company shares in Samsung Life Insurance and 20 shares in Samsung Electronics all from their father The 80 year old brother Lee Maeng-Hee is accusing his brother of keeping the shares for himself and is asking for 700 billion Korean won ($623 million) Samsung has released a statement stating that this is a civil suit and therefore the company has no official comment

Lee Kyun-Hee became chairman of the Samsung group in 1987 the year their father and the companys founder died However he resigned in disgrace in April 2008 in the midst of a tax evasion and breach of trust scandal Though he was convicted of the tax charges a presidential pardon in 2009 had him back to work leading Samsung in 2010

Olympus reports $426-million lossJapanese camera and medical device giant Olympus reported a loss of 3309 billion yen ($426

million) over the last nine months of 2011 In comparison Olympus had posted a profit of 584 billion yen over the same time period in 2010 The company has admitted to hiding losses of $17 billion for as long as 20 years

Olympus is preparing to question former board members in April in connection with accounting irregularities former chief executive Michael Woodford uncovered and made public last year

The scandal has caused the companys share prices to fall by almost 50 in October 2011 and a full scale investigation to be mounted by a rare joint venture by Tokyo prosecutors police and financial regulators This resulted in raids of 20 sites starting with Olympus subsidiary office buildings in December 2011

DOTC to bid single ticket systemAs part of the agencys big push for its transport programs this 2012 and in line with President Aquinos Matuwid na Daan program the Department of Transportation and Communications (DOTC) has stated that it would bid out a single ticketing system connected to an e-banking component for the mass rail transit systems of Metro manila The project will eventually make it easier for commuters to use the Light Rail Transit Line 1 and 2 and the Metro Rail Transit Line 3 The e-banking component

will also make it possible for the stored value cards to be used for other services and purchases aside from train rides

ldquoWe will bid out a Common Ticketing System Project a design-build-operate-and-maintain project under the BOT (Build Operate Transfer) Law The official invitation to bid will happen before the middle of the yearrdquo DOTC Secretary Manuel Roxas said to reporters during a briefing

DTI sees surgein shipbuildingShipbuilding is among the industries being eyed by the Department of Trade and Industry (DTI) to potentially boost exports and economic growth Two of the major shipbuilders in the country Tsuneishi and Hanjin are said to be looking into further expansion of their operations locallyIn conjunction with this the government is aiming to promote shipbuilding industry investments and focusing on the Japanese and Korean markets As a result investments in this industry are expected to grow to P93 billion by 2014

Shipbuilding in the Philippines along with other export winners -- the BPO industry tourism electronics agribusiness minerals motor vehicle parts garment and furniture -- is where the DTI is pinning its expectations to hopefully double exports to $120 billion by 2016

12cenSEI

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Report


NATION

Digital Pirate NationPirated movies music and software are cheapbut they will still cost the Philippines bigBy Joanne Angela B Marzan

STRATEGY POINTSThe Philippine movie industry loses ₧3 billion in revenues annually due to piracy while music piracy accounts for 10-15 of total piracy in the country

Internet piracy is on the upswing and is emerging as the biggest contributor to piracy at the same time that it threatens even the conventional digital pirates

Gone are the days when one had to go to the cinema in order to watch the latest movies of cinema royalty eg the late Fernando Poe Jr Dolphy Nora Aunor Vilma Santos and Sharon Cuneta Nowadays if you look hard enough you can probably find some of their films online alongside the latest features of John Lloyd Cruz Anne Curtis and Vice Ganda and enjoy them in the confines of your own homes and for less than the cost of a trip to the moviehouse

The moviegoing public has film pirates to thank for their bounty while the local film industry picks up a tab that includes more than the cost of producing the films in the first place

A lsquodyingrsquo local film industry If one gauges the health of the local movie industry on the basis of the number of local movies shown every year then the Philippine movie industry is ldquodyingrdquo

According to the February 14 column ldquoStatistically Speakingrdquo by National Statistics Coordinating Board (NSCB)

13


Secretary General Dr Romulo A Virola an NSCB study shows a significant decline in the number of local films shown in the country since 2000 as shown in the table below ldquo(D)uring the past decade only 732 local films were shown for an average of 73 films per year half the average in the preceding four decades rdquo Virola observed

Furthermore NSCB statistical coordination officer Gerald Clarino in a February 15 Agence France Presse (AFP) article posted on the MSN Philippines website said ldquoThere are many factors causing the fall There is piracy and competition from foreign movies Local movies are also not given as much support from the publicrdquo In a June 2011 BusinessWorld online report Motion Picture Anti-Film Piracy Council President Dominic Y Du said that the industry loses P3 billion in revenues every year due to piracy ldquoPiracy has an unlimited effect Not only does it affect the producers but more so artists technical people and workers of the industryrdquo he continued

ldquoPiracy has crippled our industry to a point that most of the players have already stopped their businesses due to lossesrdquo Philippine Motion Pictures Producers Association President Orlando Ilacad said in a May 2010 press release lauding the enactment of an anti-camcording law

Piracy hits the local music industry hard Philippine Association of the Record Industry (PARI) Chairman Anabelle R Borja said that music piracy accounts for 10 to 15 of total piracy in the country

According to Danny Ysonrsquos sprawling ldquoThe Recording Industry at a Glancerdquo as posted on the PARI website in January 2010 from P400 million in sales in 1990 the local music business became a P2-billion industry before music piracy ldquochoked it to near collapserdquo starting in 2000 when sales dropped by 25

In 2001 sales dropped by another 425 because of piracy and at least 30 big music outlets in Metro Manila Cebu Davao Iloilo and Cagayan de Oro closed shop ldquobecause

Number of Local Films Shown in the Philippines by Decade

YEAR NUMBER OF FILMS PERCENTAGE

1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110

LOCAL FILMS SHOWN IN THE PHILIPPINES BY DECADE

Source National Statistics Coordinating Board

Digital pirate nation

14cenSEIT H E

Report


pirate vendors were selling pirate CDs right beside or in front of themrdquo According to him the music piracy business itself is a P1-billion industry now

Yson also reported that pirated materials reach the country through Mindanao while some are manufactured locally ldquoIt is also estimated that around 50 of pirate CDs and VCDs enter the backdoor through General Santos City and Osamis City where even now rice and

sugar are smuggled and flood the South an open secret in Mindanao The other 50

are locally manufactured mostly in Luzonrdquo he elaborated

In addition the availability of cheap VCD CD mp3 and Playstation players beginning in 2000 also contributed to the further

proliferation of piracy in the country

Internet piracy on the rise About the only threat to film and

audio-compact-disc counterfeiters these days seems to be Internet piracy With the prevalence of new technology anyone who

Camcording not as much fun in the Philippines anymore In a December 28 abs-cbnnewscom report the Makati Philippine National Police apprehended one James Ong for allegedly recording the local film Panday 2 inside a movie theater in Makati using a pair of sunglasses with a built-in camera

Ong denied that allegation saying that the sunglasses were only for protecting his eyes

But under Republic Act 10088 the Anti-Camcording Act of 2010 mere possession of a camcording device in a movie theater is already considered an offense

For his part senior vice president for Content Protection and Chief Operations of the Motion Picture Association of America Michael Robinson stressed the significance of the passage of anti-camcording legislation in the country as reported in an August 2010 Manila Bulletin news story

ldquoThis is an important law not only to the Philippines but for the entire film industry around the world This law sends an important message that says the Philippines is serious about protecting intellectual propertyrdquo he said According to Robinson based on 2009 figures 90 of pirated films were due to camcording 9 of which were camcorded in Southeast Asia but mostly from theaters in the Philippines

ldquoMovies which have been camcorded in the Philippines have been forensically matched to copies of the film that we have found in virtually every country of the world We found them in North America in South America Europe and Africardquo added Robinson

According to the 2011 report of the International Intellectual Property Alliance based on 2010 data 20 (19 video and one audio) camcorded materials found in other countries were ldquoforensically matched to the Philippinesrdquo

15


The rise and fall of file-sharing websitesAccording to the October 27 article Limewire Napster The Pirate Bay A brief history of file sharing found on geekcom Napster started the file-sharing revolution in 1999 Historycom called Napster a ldquomusic-fans utopia- a world in which nearly every song ever recorded was instantly available on your home computer-for freerdquo

This free-for-all mechanism of sharing copyrighted music via the Internet caught the ire of the Recording Industry Association of America resulting in the filing of a lawsuit against Napster which caused the demise of the ldquomusic-fans utopiardquo only two years after its launch Napster was relaunched as a legitimate music subscription website but failed to attract users In 2002 Napster filed for bankruptcy

By this time however alternatives to Napster were already available In 2000 file-sharing websites Gnutella and Limewire were launched followed by Kazaa in 2001 In the same year BitTorrent became available and made The Pirate Bay and Isohunt household names for pirates

In 2006 Kazaa was ordered to pay $100 million in damages to the record industry and was relaunched as a legitimate service

In 2010 Limewire also closed down after an injunction from a US court

has a computer and an Internet connection can now download copyrighted material for free

In a September 7 Manila Standard Today online report then-Optical Media Board Acting Executive Director Cyrus Paul Valenzuela said Internet piracy has resulted in the drop in demand for pirated DVDs According to Valenzuela Filipinos now choose downloading over buying pirated DVDs ldquoPeople now would rather download movies from the Internet using their media players rather than buy pirated DVDsrdquo he asserted

According to the 2011 International Intellectual Property Alliance (IIPA) Report ldquoInternet piracy has worsened in the country and should be dealt with as a high priority by the Philippine Governmentrdquo

IIPA blames the upsurge of Internet users in the Philippines as well as the availability of affordable broadband connections for the increase in Internet piracy

On the Watch List since 2006 Amid the backdrop of local digital piracy the Philippines made the United States Trade Representative (USTR) Watch List for 2011 its sixth straight year on the list

This is something of a letdown considering that in the 2011 Special 301 Report prepared by the USTR the passage of Republic Act 10088 or the Anti-Camcording Act of 2010 was listed as one of the positive developments in the global fight against Intellectual Property Rights protection

ldquoThe United States recognizes that in 2010 the Philippines took the important step of enacting legislation to address


16cenSEIT H E

Report


unauthorized camcording of motion pictures in theaters and encourages the Philippines to enforce this new law effectively in order to deter the theft of motion picturesrdquo the 2011 Special 301 report said

Unfortunately the continued proliferation of ldquopirated and counterfeit goodsrdquo in the Philippines resulted in the countryrsquos unchanged status

The Philippines has been on the USTR Watch List since the first Special 301 Report in 1989 The Knowledge Ecology

International website has a complete catalogue of USTRrsquos Special 301 Reports since the first release in 1989

Quiapo tagged lsquoNotorious Marketrsquo According to the November 2011 Out of Cycle Review of Notorious Markets Quiapo Shopping District in Manila is the best place to find pirated merchandise in the country Quiapo has consistently landed a spot in the notorious markets list since 2007

The list of Notorious Markets is compiled annually by USTR and includes physical markets that sell pirated materials as well

Watch list and priority watch list statusBased on IT Law Wiki countries under Watch List have ldquointellectual property protection inadequacies that are less severe than those on the Priority Watch List but still attract US attentionrdquo

On the other hand countries are placed under Priority Watch List ldquowhen the country lacks proper intellectual property protection and has a market of significant US interestrdquo and ldquothose whose acts policies and practices warrant concernrdquo the page added

Based on Annex 1 of the aforementioned USTR 2011 Special 301 Report sanctions may be given to a country placed under USTRrsquos priority watch list or watch list category

ldquoAdditionally under Section 306 USTR monitors a trading partnerrsquos compliance with measures that are the basis for resolving an investigation under Section 301 USTR may apply sanctions if a country fails to satisfactorily implement such measuresrdquo the report said

ldquoIf the USTR finds we are not doing well and there is not enough effort to combat piracy we would be placed in the priority watchlist This has serious effects in terms of general systems references trade perks and benefits enjoyed by exporters particularly on tariffsrdquo Allan Gepty deputy director general of Intellectual Property Philippines added in a September 7 Manila Bulletin article

The 2011 list includes 12 trading partners of the United States under its Priority Watch List while another 29 countries including the Philippines are under the Watch List category

Priority Watch List Algeria Argentina Canada Chile China India Israel Indonesia Pakistan Russia Thailand Venezuela

Watch List Belarus Bolivia Brazil Brunei Colombia Costa Rica Dominican Republic Ecuador Egypt Finland Greece Guatemala Italy Jamaica Kuwait Lebanon Malaysia Mexico Norway Peru Philippines Romania Spain Tajikistan Turkey Turkmenistan Ukraine Uzbekistan Vietnam

17


as websites that illegally sell or distribute for free copyrighted materials

ldquoQuiapo is just one example of several locations and neighborhoods especially in metropolitan Manila known to deal in counterfeit and pirated goods such as clothing shoes watches handbags and softwarerdquo the report said

In 2008 Binondo Greenhills Makati Cinema Square and Metrowalk were also identified as notorious markets in the country

IIPA weighs in If it had been up to the International Intellectual Property Alliance however the Philippines should have been put back on the Priority Watch List in 2009 The Philippines was already on USTRrsquos Priority Watch List in 1992 and from the years 2001 until 2005

Cited as reason for the recommended downgrade was the perceived escalating piracy problem in the country beginning in 2009

ldquoIn general the piracy situation in the Philippines worsened in 2008 In addition to physical piracy (CDs DVDs CD-ROMs photocopies and book reprints) the legitimate market for foreign and local Philippine copyright material was decimated by Internet piracy (mainly

peer-to-peer) mobile device piracy camcording piracy retail piracy optical disc production and pay TV theftrdquo the 2009 IIPA report said

In the 2010 IIPA

report the coalition again urged the US government to downgrade the trade standing of the Philippines due to the ldquocontinuing and mounting problems faced by other copyright industriesrdquo even as it acknowledged the countryrsquos efforts against software piracy

The 2011 IIPA report cited above echoes the same recommendation and said that the government has failed to accomplish the following 1 Prosecute a case under the Anti-Camcording Act 2 Lower Internet-based violations and 3 Conduct unannounced inspections on all optical disc plants and CD-R burning operations

Furthermore IIPA also recommended that the Philippine government take a ldquoproactive approachrdquo when dealing with the Internet piracy problem

ldquoA proactive approach including takedowns and blocking of sites engaged in blatant and serious piracy activities should be employed and action must be taken against commercial pirates who advertise hard goods or downloading onto devicesrdquo the report said


Pirated DVDs selling like hotcakes TCR photo

18cenSEIT H E

Report


Local version of SOPA Meanwhile in a January 20 article posted on InterAksyoncom Universal Records executive vice-president Ramon Chuaying said that the local music film and software industries are urging legislators to pass a local version of USrsquo Stop Online Piracy Act (SOPA) or the Protect Intellectual Property Act (PIPA)

ldquoWe are lobbying for Congress to pass an Internet piracy bill quite similar to US and some parts of Europe In other words if this law passes we can require the Internet [service] provider to block off websites hosting illegal contentrdquo Chuaying said According to him lawmakers supporting such a bill include Cagayan de Oro Representative Rufus Rodriguez and Senators Edgardo Angara and Loren Legarda

Senator Legarda has also called for the passage of Senate Bill 2628 which would amend the provisions of Republic Act No 8293 or the Intellectual Property Code of the Philippines which up to now did not include the protection of copyrighted materials published in the Internet

ldquoIn this modern age when the Internet has become a necessity to access send spread download and upload almost all kinds of information the protection from piracy of copyrighted data and other literary and artistic works has become more challengingrdquo Legarda said in a January 23 Manila Bulletin report

Government to blame According to the 2009 paper Why Intellectual Property Rights Infringement Remains Entrenched in the Philippines written by

SOPA and PIPA and the Web blackoutOn January 20 the US Congress postponed voting on two controversial anti-Internet piracy bills Stop Online Piracy Act (SOPA) of the US House of Representatives and the Protect Intellectual Property Act (PIPA) of the US Senate

This development came on the heels of a January 18 Web blackout participated by a thousand websites including most notably online encyclopedia Wikipedia and news-sharing website Reddit

For its part Google posted a black bar across its logo on its search homepage (below left) while Mozilla turned its website black and posted ldquostop censorshiprdquo on its search homepage logo (below right)

ldquoWednesday January 18th was a big day for the Web Americans stood up in opposition to PIPA and SOPA ndash bills that would censor the Web and impose harmful regulations on US businessesrdquo Google posted on its website

According to a January 19 Huffington Post article the House version SOPA and its Senate counterpart PIPA would ldquoallow copyright holders and the Justice Department to seek court orders against websites associated with copyright infringementrdquo be they domestic or foreign In addition a court order can be issued even without a trial and once the court order is issued the entire website would be shut down

Texas Representative Lamar S Smith introduced the House version while the Senate versionrsquos principal author is Senator Patrick Leahy of Vermont

13 13

13

13

19


Andrew Jaynes in November 2009 one of the reasons why copyright infringement remains a problem in the Philippines is because IPR protection and enforcement are not priorities by the Philippine government

ldquoFor a variety of reasons the political will necessary to address IPR infringement effectively does not exist People in power either do not understand or respect IPR believe the resources would be better spent on other more pressing issues such as poverty or education or fear that stronger IPR protection and enforcement would jeopardize their wealth and influencerdquo the paper said

Incidentally when President Benigno Aquino III was asked about a widely publicized incident involving Presidential Adviser on Political Affairs Ronald Llamas getting caught on camera purchasing pirated DVDs he downplayed the encounter

ldquoThat DVD (piracy) is perhaps somewhere below in our priority list We have so many other problems like the spiraling prices of oil and the tensions in Iranrdquo Aquino told TV5 in a January 25 report

Presidential spokesperson Edwin Lacierda clarified in a January 27 Tempo article that the presidentrsquos statement ldquowas not with respect to the fight against intellectual piracyrdquo

ldquoNo one should have any doubt that this administration is committed to upholding the law and international commitments to protect intellectual property rights The Optical Media Board (OMB) and other agencies tasked with implementing our

laws and regulations in this regard have been activeldquo Lacierda added

Cheapest alternative or something else going on Does local piracy persist because itrsquos the cheapest and most convenient alternative (A pirated DVD containing one movie cost around P35 while a DVD sampler composed of eight movies in one DVD cost around P85 Downloading on the other hand does not cost a single centavo and is relatively simple to do)

UP Dean of the College of Mass Communications and professor of Film Rolando B Tolentino in his sociopolitical blog post Media Piracy and Philippine Cosmopolitanisms seems to support the idea that the low cost of pirated products is a factor for its popularity especially among the poor

ldquoMovie-going used to be a popular national pastime but its cost has skyrocketed to make it only accessible to the middle and upper classrsquo experience of leisure The


20cenSEIT H E

Report


underclass will have to shell out one-third of their minimum daily wage in order to afford a movie ticket in a cinemaplex As a result the underclass relies on the DVD pirated market mdashcomplemented by the generic ldquomade in Chinardquo or the pirated ldquochoose-your-own brandrdquo of DVD playermdash to gain access to global popular culturerdquo Tolentino says

He also regards local raids on media-piracy hubs as symbolic of the dominance of big business and the private sector in even governance and public service and observes that such raids have not shut down media piracy According to him ldquoThere are just too many of these small-time businesses that the government and police even the global brands cannot fully controlrdquo

His conclusion Media piracy businesses exist and proliferate primarily because of the middle-class demand for global cultural goods (an offshoot of neo-liberalism) and of the highly numerous small-venture businesses involved in this trade

Just no legal alternative Others say that people engage in piracy because there is just no legal alternative

ldquoSome users acquire digital content illegally because comparable content is not available by legal meansrdquo according to the 2009 paper Steal These Policies Strategies for Reducing Digital Piracy by Daniel Castro Richard Bennett and Scott Andes as published on the Information Technology amp Innovation Foundation website

The paper added that ldquopirated content is particularly appealing for people who are seeking sources of entertainment that are not available where they live in licensed and legal formsrdquo It cited British and American television series that have become very popular around the world but are not licensed for distribution in other countries

Also according to the paper there is a market for selling copyrighted content legally online and that producers should take notice of ldquonew patterns of consumptionrdquo and ldquocapitalize on the revenue opportunities they offerrdquo

ldquoFor example once music was easily available legally online through stores such as iTunes or Amazon it became much easier for many consumers to buy music rather than steal it Although most music is widely available online for free purchases of digital music continue to growmdashas of the first half of 2009 paid digital downloads accounted for 35 percent of total music salesrdquo the paper added

Affordable way to access entertainment Whatever the reason may be for the flourishing piracy industry in the country whether itrsquos one or all of the reasons mentioned above one thing is for sure there is a huge demand for the newest movies songs games and software in the country and piracy has allowed everyone rich or poor an easy and affordable way to access these entertainment

In the eyes of the producers and copyright owners piracy has caused dwindling sales and income shrinking their piece of the

21


entertainment pie But in the eyes of the consumers piracy has allowed them to enjoy the latest George Clooney movie listen to the newest single of Adele and relive Manny Pacquiaorsquos greatest fights all in the comfort of their own home in the company of family and friends Itrsquos cheap entertainment at its finest

Digital product ndash music and movies ndash is all over the place and technology has brought the cost of reproduction and the ubiquity of digital product has overwhelmed traditional distribution

channels So how do you compete with zero or failing that how do you convince people to pay a little something to cover the costs of origination Conversely how do you reward or encourage distribution channels to offer wider product selections at still-reasonable prices

Until the copyright holders and media outlets figure out those efficient price-points and selection mixes look for piracy to continue and flourish and not just in the Philippines

lsquoPiracy is the new radiorsquoCanadian singer-songwriter and rock music legend Neil Young created a little stir in January when he said in an interview that ldquoI look at the Internet as the new radio hellip Piracy is the new radio Thatrsquos how music gets aroundrdquo He actually made that statement in the context that he was actually more concerned about the low audio quality of mp3 files than the means of their distribution but that statement overshadowed the context and started up another discussion about piracy

On the gigaom site Mathew Ingram says that comparing piracy to radio is a pretty smart way of looking at the issue and reminds readers that radio was also regarded as a form of piracy in the days when the music business made money from live performances and record sales until the music business learned to see it as a publicity engine for music

On the other hand Matt Peckham writing in Timersquos Techland section takes another view saying that in what he called the ldquoradio-as-radiordquo model people still paid for music whereas in the current ldquopiracy-as-radiordquo model whatever sales there might be of digital music havenrsquot been enough to cover the losses in sales of physical product He cites a statistic from global market research firm NPD saying that US consumers paid for only 37 of music acquired in 2009 and concludes that ldquoWe may want information to be free but that doesnrsquot mean it can be when we live in a world where so many take and so few give backrdquo


Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report


After 5 Weeks 45 Titles 10 Accounts and One lsquoSmall Ladyrsquo

The Corona impeachment trial tackles the accusation of undeclared wealthBy John Carlo Gil M Sadian

While it took 188 congressmen just hours to sign the eight Articles of Impeachment against Chief Justice Renato Corona it has taken all of five weeks for their prosecution team of 11 representatives and more than 50 private lawyers to present their case on just one charge And theyrsquore not even finished yet

Upon adjournment on February 16 the trial was still stuck with the prosecutionrsquos presentation of evidence for the Second Article alleging that Corona ldquocommitted culpable violation of the Constitution andor betrayed the public trust when he failed to disclose to the public his Statement of Assets Liabilities and Net worth (SALN) as required under Sec 17 Art XI of the 1987 Constitutionrdquo

Article XI Section 17 of the Constitution stipulates ldquoA public officer or employee shall upon assumption of office and as often thereafter as may be required by law submit a declaration under oath of his assets liabilities and net worth In the case of the President the Vice-President the Members of the Cabinet the Congress the Supreme Court the Constitutional Commissions and other constitutional offices and officers of the armed forces with general or flag rank the declaration shall be disclosed to the public in the manner provided by lawrdquo

Thus the issue in the Second Article is clear and simple Whether or not the Chief Justice disclosed his SALN to the public as required by law

23


Issues in the Second Article After The CenSEI Reportrsquos exhaustive breakdown of the Impeachment Complaint and Coronarsquos Verified Answer this recapitulation and analysis far more extensive than most published reports focuses on issues and findings relating to the Second Article including relations between the Supreme Court and the impeachment court presided by Senate President Juan Ponce Enrile

Among major legal issues arebull Preliminary objections on the validity of the complaintbull Request to subpoena Corona and members of his familybull Sequence of presentation by the prosecution bull Failure to disclose SALNs and accumulation of ill-gotten wealthbull Discounted Bellagio and McKinley Hill propertiesbull Coronarsquos P11 million loan from Basa Guidote Enterprises Inc bull Whether errors in the SALNs constitute an impeachable offense bull Discrepancies in Coronarsquos ITR bull Subpoena of Coronarsquos bank accountsbull Supreme Court restraining subpoena of dollar accountsbull Divided Senate recognizing the Supreme Courtrsquos restraining order

The prosecutionrsquos first order of business for the Second Article was to present as evidence Coronarsquos SALNs from 1992 to 2002 when he served under the Ramos and Arroyo Administrations and for 2003-2011 during his incumbency as High Court magistrate Although the allegation involves failure to disclose the SALNs the evidence presented were the very Statements supposedly kept from public access

After convincing the Senate to admit the SALNs as evidence the prosecution turned to Coronarsquos allegedly undeclared or misdeclared assets like posh condominium units titled in his name or those of his immediate family Plus land titles and testimonies of registers of deeds in cities where properties were situated Also subpoenaed were two bank accounts of the chief justice currently subject of a controversial Supreme Court ruling

Is the impeachment valid At the outset the defense pressed for outright dismissal of the impeachment complaint for insufficiency of substance and form due to the prosecutionrsquos ldquofailure to comply with the requirement of verificationrdquo Section 4 Rule 7 of the Rules of Court requires that a complaint be ldquoverified by an affidavit that the affiant has read the pleading and that the allegations therein are true and correct of his knowledge and beliefrdquo

The assertion that the complaint was not read by most of the 188 congressmen-signatories has basis in public admissions by some congressmen themselves Rep Rodolfo Farinas sarcastically admitted to the Senate that he did not sign because he was ldquonot a speed-readerrdquo as most of his colleagues were Nonetheless Senate President Enrile issued a ruling denying the defense panelrsquos motion for preliminary hearing regarding improper verification for ldquolack of meritrdquo

No subpoena for Corona and his family The prosecution asked the Senate to issue subpoenas against Chief Justice Corona his wife Cristina their children and a son-in-law Enrile ruled against it noting (1) Corona cannot be compelled to testify against himself (Section 17 Article III of the

After 5 weeks 45 titles 10 accounts and one lsquosmall ladyrsquo

24cenSEIT H E

Report


Constitution) (2) Cristina Corona may not be compelled to testify against her husband under Section 22 Rule 130 of the Rules of Court (3) Coronarsquos children may not be compelled to testify against their parents under Section 25 Rule 130 of the Rules of Court and (4) Coronarsquos son-in-law is also covered by parental and filial privilege by necessary implicationSenator Alan Peter Cayetano objected to Enrilersquos ruling and called for a vote Fourteen supported the ruling Senate President Pro Tempore Jinggoy Estrada Senate Majority Floor Leader Vicente Sotto III Senators Edgardo Angara Joker Arroyo Franklin Drilon Francis Escudero Gregorio Honasan Ferdinand Marcos Jr Panfilo Lacson Lito Lapid Sergio Osmena III Francis Pangilinan Ralph Recto and Ramon Revilla Jr

Six voted against it Alan Peter Cayetano Pia Cayetano Aquilino Pimentel III Teofisto Guingona III Antonio Trillanes IV and Manuel Villar

Sequence of charges On Day 2 Rep Elpidio Barzaga of the prosecution said he was ready to present evidence on the

Second Article of Impeachment Lead defense counsel Justice Serafin Cuevas objected arguing that the defense prepared for the First Article Senate President Enrile adjourned the session to let the defense

prepare for the Second Article The court also adopted Senator Joker Arroyorsquos suggestion that the prosecution disclose the order in which they will tackle the eight Articles

The next day the prosecution listed the first

three articles they will tackle (1) Article II on Coronarsquos failure to disclose his SALNs (2) Article I on Coronarsquos partiality and subservience to the Arroyo Administration and (3) Article VII on the Supreme Courtrsquos issuance of a temporary restraining order against Circular No 41 of the Department of Justice which issued a watch-list order preventing former president Gloria Arroyo and her husband from traveling abroad

But on Day 8 Enrile granted the prosecutionrsquos request to further reorder the sequence so that by Day 13 the prosecution already started presenting a witness in Article III in relation to the Supreme Courtrsquos recall of the PAL Flight Attendants case

13 On Day 16 of the Impeachment trial Senate President Juan Ponce Enrile announced that the Senate has decided ldquoto respect the temporary restraining order issued by the Supreme Court in the case filed by the PSBank in so far as the foreign currency deposit accounts are concernedrdquo ABS-CBN video

25


SALNs and ill-gotten wealth On Day 3 the prosecution presented Atty Enriqueta Esguerra-Vidal Clerk-of-Court of the Supreme Court who initially refused to surrender Coronarsquos 2003 to 2011 SALNs without prior clearance from the Court en banc She later on surrendered them after Enrile ruled that there was no need for clearance since the documents were subpoenaed by the Senate Vidal testified that all justices of the Court submitted SALNs every year and documents were kept in a filing cabinet that only she and the Deputy Clerk-of-Court can access

As to Coronarsquos SALNs for 1992-2002 the prosecution presented Malacantildeang Records Office chief Marianito Dimaandal who surrendered the SALNs without defiance On cross-examination by Justice Cuevas he admitted that he cannot attest to the accuracy of the SALN contents

After the SALNs were admitted as evidence the defense pointed out that while the Second Article only alleges failure to disclose the SALN the prosecution tried to use the Statements to show that Corona violated the Anti-graft and Corrupt Practices Act (RA 3019) and accumulated of ill-gotten wealth Enrile agreed and issued a ruling not to admit any evidence concerning paragraph 24 of the Second Article because it had improperly alleged ill-gotten wealth

Tax returns and the tax lady The Senate subpoenaed Internal Revenue Commissioner Kim Henares to testify on the income tax returns (ITRs) of Corona and his family to which the defense objected Enrile agreed and stressed that the prosecution must first

show the connection of the ITRs to the Second Article He also reminded the prosecution that their ldquobuckshot approachrdquo in requesting subpoenas for all pertinent records constitutes ldquofishingrdquo and that any request must be specificity This reminder was repeated by Enrile on Day 11 after the prosecution sought to subpoena High Court documents

When the prosecution explained that the ITRs would show that the couplersquos incomes cannot support their acquisition of expensive properties Enrile pointed out that the trial dealt with Coronarsquos SALNs and did not concern whatever Corona did before becoming Chief Justice He added that the evidence to be presented must be those that show properties not declared in Coronarsquos SALNs

Bellagio and McKinley Hill condos On Day 8 the prosecution presented Megaworld finance director Giovanni Ng to prove that Corona failed to disclose in his 2009 SALN transactions involving properties in McKinley Hill and in The Bellagio Tower both situated in Taguig The witness produced the deed of absolute sale covering the P62-million McKinley


26cenSEIT H E

Report


property under the name of Coronarsquos daughter Charina According to Ng the transaction was paid for by the chief justice and his wife with a discount of P23 million Upon examination Ng revealed that Megaworld actually offers a 15 discount to clients who pay on shorter terms There are also reductions for damaged units (Note that under Article 1448 of the Civil Code when property purchased by a parent is titled in the name of a child such property is disputably presumed to be a gift)

The next day Megaworld marketing executive Noli Hernandez confirmed a P5-million price reduction for a P24-million Bellagio penthouse because of typhoon damage and leaks Hernandez added that when Corona paid ldquoalmost in cashrdquo the cost was further cut by around P3 million Responding to Senator Escuderorsquos query the witness admitted that despite the discounts Megaworld still made ldquoa little profitrdquo Senator Villar himself a realtor confirmed that developers grant huge discounts for various reasons noting that a major developer cut prices by 40 last year

The prosecution said the huge discounts might have affected Coronarsquos independence in cases involving Megaworld But Senators Ferdinand Marcos Jr and Pia Cayetano questioned the materiality of the discounts on the Second Article which only alleges failure to disclose SALNs Senator Aquilino

Pimentel III urged the prosecution to ldquolet gordquo of the discount issue as irrelevant to Article II Enrile explained that he allowed testimonies regarding the discount ldquoout of liberalityrdquo Nonetheless Hernandez revealed that Megaworld actually lost cases in the Supreme Court with Corona voting against it

Basa Guidote Enterprises loan On Day 10 the prosecution presented Securities and Exchange Commission (SEC) director for company registration Benito Cataran to establish that the SEC revoked the articles of incorporation of Basa Guidote Enterprises Inc (BGEI) in 2003 a year before Corona declared in his 2004 SALN an P11-million ldquocash advancerdquo from the firm Rep Reynaldo Umali argued that the loan was fictitious ldquoBecause the corporationrsquos franchise has already been dissolved or revokedrdquo he argued ldquothe only action that can be taken being to liquidate wind up and distribute the sharesrdquo That led some lawyer senators lecture on laws covering company dissolution

Senate President Enrile explained that BGEIrsquos dissolution is not its end because it still has to undergo liquidation Senator Escudero added that after dissolution incorporators become co-owners in an association which can still do business Senator Alan Peter Cayetano said revocation of BGEIrsquos license is irrelevant since a firm in dissolution can still lend money Senator Angara agreed stating that Cataranrsquos testimony was ldquomuch ado about nothingrdquo

Bank paperswere presentedwith the provisofrom PresidingSenator-Judge Enrile that they

might not be accepted as

evidence later

27


and Senator Pia Cayetano added that it was a ldquofutile exerciserdquo

Are SALN errors impeachable The standard SALN form has a column each for acquisition cost fair market value and assessed value The prosecution claims that Coronarsquos failure to state acquisition costs in all his SALNs from 2002 to 2011 constitutes ldquofalse entriesrdquo amounting to ldquoperjuryrdquo and the ldquohighest betrayal of public trustrdquo When Enrile asked Rep Barzaga whether he views perjury as a high crime the prosecutor said he did not Notably under the rule of ejusdem generis if the ground for impeachment is not among those listed under Section 2 Article XI of the Constitution such ground must be a ldquohigh crimerdquo similar to culpable violation of the Constitution treason bribery or graft and corruption

Lead defense counsel Justice Cuevas admitted that the acquisition cost fair market value and assessed value all have to be stated in SALNs But he said officials may make corrections after filing with no criminal liability for unintentional inaccuracies

Tax discrepancies Commissioner Henares testified on Day 12 that after comparing SALNs ITRs and certificates authorizing registration the Bureau of Internal Revenue presented a list of what BIR contended were ldquounder-declarationsrdquo in Coronarsquos SALNs

2002 Nine properties not in SALN

2003 Nine properties undeclared The La Vista propert was valued at P3 million instead of P11 million another

property worth ₧25 million was declared as ₧821080 Coronarsquos net worth was ₧7 million when it should have been ₧14 million

2004 Same discrepancies noted Plus a Diliman Quezon City property was not included Net worth was reported at ₧7 million instead of ₧21 million

2005 Same discrepancies as 2004 Declared net worth was ₧83 million when it should be ₧312 million

2007 Net worth should be ₧24 million not ₧11 million declared

2008 Net worth should be ₧25 million not P12 million declared

2009 Net worth should be ₧52 million with Bellagio property not ₧145 million declared

It may be worth noting that there is no law empowering the BIR to assess the accuracy of SALNs which are normally under the jurisdiction of an officialrsquos agency the Ombudsman or a court if it is the subject of litigation


28cenSEIT H E

Report


Coronarsquos bank accounts After a lengthy debate on relevance to the Second Article the Senate granted the prosecutionrsquos request to subpoena Coronarsquos bank records in Philippine Savings Bank and Bank of the Philippine Islands with a strong reminder from Senate President Enrile that the subpoenaed records would not necessarily be admitted as evidence since these are protected by the very strict Bank Secrecy Law (RA 1405) and Foreign Currency Deposit Act (RA 6426) Asked by Senator Escudero how copies of bank records were attached to the prosecutionrsquos request even before they were subpoenaed Congressman Umali said the copies was handed to him by a ldquosmall ladyrdquo outside the Senate But none of the security cameras in the building showed any lady giving documents to Umali Later on when asked about the authenticity of the annexed papers PSBank branch manager Anabelle Tiongson said ldquotheyrsquore fake documentsrdquo and ldquodid not come from [their] bankrdquo The prosecutionrsquos reliance on documents purportedly from a ldquosmall ladyrdquo drew flak from senators Senate President Enrile required the prosecution to prove they

did not intend to deceive the Senate with fabricated evidence Senator Santiago stressed that lawyers should not present papers from an unknown source without verification She lambasted prosecutors ldquoIf you bring this before any court you will be cited for contemptrdquo Meanwhile upon questioning of Senator Legarda Tiongson disclosed that she saw a document that looked like the fake bank record when Quezon City Rep Jorge ldquoBoletrdquo Banal approached her on January 31 mdash days before the ldquosmall ladyrdquo allegedly handed papers to Umali Banal at the

Senate last Thursday admitted approaching Tiongson to ask about a ldquo$700Krdquo notation on a bank document apparently named under Renato Corona He claimed he found it inserted in

his gate the night before he saw Tiongson Banal was ordered to clarify this matter when the trial resumed on Feb 20 Supreme Court TRO on dollar accounts On Day 14 PSBank president Pascual Garcia III appeared to testify despite a pending PSBank petition in the Supreme Court seeking a TRO against the Senatersquos subpoena Garcia testified about peso accounts but not dollar deposits

13 When asked by the Senator Enrile on the authenticity of several bank documents presented by the prosecutors PSBank branch manager Anabelle Tiongson revealed that ldquotheyrsquore fake documents These did not come from our bankrdquo ABS-CBN video

29


His lawyers said the exemption from the Bank Secrecy Law in impeachment cases does not cover foreign currency accounts Senator Drilon suggested that Garcia be cited in contempt but Senate President Enrile instead ordered Garcia to submit a written explanation for his refusal

The next day the Supreme Court presided by Senior Associate Justice Antonio Carpio voted 8-5 to issue a temporary restraining order while the Court deliberates the case filed by PSBank against the subpoena Favoring the TRO were Justices Teresita Leonardo-De Castro Arturo Brion Lucas Bersamin Roberto Abad Martin Villarama Jose Perez Jose Mendoza and Bienvenido Reyes an Aquino-appointee who was vice president of Aquinorsquos erstwhile security agency

Opposing the TRO were Justices Antonio Carpio Diosdado Peralta Mariano Del Castillo Lourdes Sereno and Estela Perlas-Bernabe Chief Justice Corona and Justice Presbiterio Velasco inhibited Justices Carpio and Sereno had earlier denied requests for them to inhibit due to alleged partiality against Corona Notably the House Committee on Justice just approved an impeachment complaint against del Castillo

Immediately after being told about the TRO Senate President Enrile declared ldquoIn deference to the Supreme Court the interpreter of the Constitution and the guardian of our basic rights guaranteed by the Bill of Rights this chair would suggest and recommend to this impeachment court and the two sides of the case and the panel to take heedrdquo Thus he added the

13 The magistrates who voted to issue a temporary restraining order against the opening of Coronarsquos dollar deposits in accordance with the Foreign Currency Deposit Act (L-R top row) Associate Justices Teresita Leonardo-De Castro Arturo Brion Lucas Bersamin Roberto Abad (L-R second row) Martin Villarama Jose Perez Jose Mendoza and Bienvenido Reyes Note that Aquino-appointee Reyes who served as vice president of President Aquinorsquos erstwhile security agency was among those who voted in favor of the TRO (Philippine Savings Bank and Pascual M Garcia III vs Senate Impeachment Court) Photos Supreme Court

13

The magistrates who voted to deny the TRO (L-R) Senior Associate Justice Antonio Carpio and Associate Justices Diosdado Peralta Mariano Del Castillo Lourdes Sereno and Estela Perlas-Bernabe Note that the House Committee on Justice recently voted to impeach Justice Del Castillo (Philippine Savings Bank and Pascual M Garcia III vs Senate Impeachment Court) Photos Supreme Court

impeachment court and the parties must ldquodiscuss issues other than foreign currency deposits because of the presence of the TROrdquo

DIVISION OF THE COURT


30cenSEIT H E

Report


Divided Senate respects TRO After a morning caucus on Day 16 Senate President Enrile announced that senators voted 13-10 to ldquorespect the temporary restraining order issued by the Supreme Court in the case filed by PSBank in so far as the foreign currency deposit accounts are concernedrdquo with a reservation that the impeachment court is ldquoprepared to argue its case on the merits and to defend the legal and public policy basis underlying its ruling about the said subpoenasrdquo

Senators who voted to obey were Enrile Arroyo Santiago Escudero Estrada Honasan Legarda Marcos Pimentel Recto Revilla Sotto and Villar In explaining her vote to abide by the TRO Senator Santiago argued that the ldquoimpeachment court is not almighty not absolute not illimitable and not more supreme than the Supreme Courtrdquo

Those who voted to defy the TRO under the view that impeachment is solely under the Senatersquos prerogative were Angara Alan Peter Cayetano Pia Cayetano Drilon Guingona Lacson Lapid Osmena Pangilinan and Trillanes

Until Day 19 on Feb 17 Senate President Enrile had repeatedly blocked attempts by the prosecution and some senators to question witnesses on dollar accounts In one of his most notable pronouncements the presiding senator-judge 88 on Feb 14 declared that while it is his ldquohumble

view that the Supreme Court cannot assume jurisdiction over the sole power of the Senate to try and decide this impeachment caserdquo it is still his ldquoduty as presiding officer to respect the Supreme Courtrsquos authority to

review acts of the impeachment court in interlocutory matters or how this court conducts trialrdquo

Even as the trial wound its way through legalities and pieces of evidence in the Second Article the word war between the Palace and the Chief Justice escalated Corona contended that President Aquino committed an impeachable offense in allegedly trying to influence senators to defy the TRO Days later Aquino blasted the magistrate in speech and slides at the celebration of the 1986 People Power uprising prompting his adversary to question his mental state

13 Explaining her vote against opening Coronarsquos dollar accounts without the latterrsquos consent Senator Miriam Defensor-Santiago asserted that ldquothe impeachment court is not almighty not absolute not illimitable and not more supreme than the Supreme Courtrdquo ANC video


31


NEWS ON THE NET Nation

Estrada bats for amendment of foreign currency deposit lawSenator Jose ldquoJinggoyrdquo Estrada filed Senate Bill 3120 proposing an amendment to Republic Act 6426 or the Foreign Currency Deposit System Act wherein he seeks to add exceptions to the confidentiality clause of the law He proposes that orders of an impeachment court or any other court on cases involving public officials charged with violation of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act be added as exceptions

On Monday the Senate decided by a 13-10 vote to abide by the Supreme Court ruling on the petition of Philippine Savings Bank for a temporary restraining order on a subpoena for records of Chief Justice Renato Coronas dollar accounts The Foreign Currency Deposit Act is strict about non-disclosure of bank account records without the consent of the depositor

Outraged senators demand recall of PHL envoy to Argentina after attack on boxerThe Philippine Senate has demanded that Philippine ambassador to Argentina Rey Carandang be recalled after an attack on a Filipino boxer following his victory over an Argentinian boxer in Buenos Aires

However the Department of Foreign Affairs refused to heed the Senatersquos call to recall Carandang saying that they need to wait for the Argentinian governmentrsquos response to the Philippine protest

Filipino boxer Johnriel Casimero was attacked right after his victory in the boxing bout against Argentinian Luis Alberto Lazarte Lazarte and the bout promoter Osvaldo Rivero reportedly went to Casimeros dressing room to apologize

Lawmakers oppose new SALN formatThe new format of the Statement of Assets Liabilities and Networth proves to be unacceptable for government officials and employees required to fill it up Under the new SALN to be implemented by the Civil Service Commission public officials and employees are now required to disclose the sources and amount of their gross income personal and family expenses and amount of total income tax paid

Reps Rufus Rodriguez Philip Pichay and Danilo Suarez were among the lawmakers who registered their respective objections which are based on grounds that it could violate basic personal rights protected by the Constitution and other laws

The SALN has been the center of public scrutiny following the allegations against Chief Justice Renato Corona that he failed to publicly disclose his own SALN Section 17 Article XI of the 1987

Constitution and Section 8 of Republic Act 6713 or the Code of Conduct and Ethical Standards of Public Officials and Employees requires the submission under oath of their assets liabilities and net worth

Aquino govrsquot allocates P196B for PPPThe Aquino administration has allocated P196 billion in counterpart funds for its Public-Private Partnership (PPP) programs for 2012 Of the total amount P86 billion is marked for PPP initiatives of the Department of Transportation and Communications such as development programs for the Panglao Airport in Bohol the Puerto Princesa Airport in Palawan and the New Legazpi Airport in Albay LRT Line 1 South Extension and Privatization and the DOTC Project Development Fund The Departments of Education Agriculture and Public Works will also receive funding for their respective PPP initiatives

President Aquino launched PPP through Executive Order No 8 in his first year as chief executive The Department of Budget and management has listed the ldquoPPPrdquo projects for 2012 as the President continues to achieve the goals of his medium-term development plan

32cenSEI

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Report


WORLD

The World According to DavosMoney power food water and other global concerns at the 2012 World Economic ForumBy Ricardo Saludo

Davos Switzerland in late January never conjures the warmth that normally spurs engaging exchange on all manner of interests Yet yearly the snowbound canton nestled in the towering Alps hosts global leaders of government politics business society and culture in a week of speeches panel discussions networking and other interaction known as the World Economic Forum

This yearrsquos WEF gabfest on January 25-29 ranged across such topics as ldquoProspects for Peace in the New Middle East Contextrdquo and ldquoPeople Powerrdquo to the economic outlook for East Asia America and Europe Plus ldquoThe Future of Democracyrdquo moderated by the American news agency Associated Press The Forum also launched the Partnership for Cyber-Resilience a multinational effort to address growing risks and threats to the worldrsquos information and communications technology (ICT) infrastructure

Among the bigwigs in town over the five days were Singapore Prime Minister Lee Hsien Loong who spoke about Asia and America (see page 34) and his counterparts David Cameron of Britain and Angela Merkel of Germany who opened the Forum United Nations Secretary General Ban Ki Moon extolled global efforts promoting sustainable energy

Low temperatures and high-powered discussions mix in the Alpine resort enclave on January 25-29 Big names and even bigger ideas Photo Switzerland-tripscom

STRATEGY POINTS

At the annual meeting as Europe seeks help Asia urges the 1997 crisis measures the West told it to take

From financial contagion to volatile supplies and costs of edibles top global risks will hurt the poor most

In the struggle to buttress and reform systems and institutions donrsquot forget people mdash theyrsquore the key to recovery

33


and addressing climate change along with democratization challenges in the Middle East and North Africa

ldquoPeople everywhere are demanding changerdquo said the former South Korean foreign minister ldquoThey call out for dignity They demand justice and a better deal They want jobs opportunities global marketsrdquo Just so the Forum didnrsquot miss the immense magnitude of those demands Secretary General Ban noted that there are now 7 billion people with another half a billion coming in five years His agenda for the UN in coming years sustainable development prevention and action on conflict rights abuses and disasters peace security and democracy initiatives support for countries in transition to democracy and assistance to women and children

European Central Bank (ECB) president Mario Draghi now in the eye of the euro crisis expounded on the continentrsquos challenges while US Treasury Secretary Timothy Geithner reprised the same theme for his countryrsquos economy and the worldrsquos largest And a 1 12-hour panel including the heads of the World Bank the International Monetary Fund the Hong Kong government and the British and Canadian central banks

discussed the world economic outlook (see page 35)

Speaking by video Nobel Peace laureate and Myanmar democracy icon Aung San Suu Kyi addressed the session titled ldquoThe Great Transformation Shaping New Modelsrdquo saying of her countryrsquos reforms ldquothe possibility of a ldquogreat transformationrdquo is in sightrdquo Also via TV link Japanese Prime Minister Yoshihiko Noda opened a discussion on coping with crises spawned by natural calamities which also included his countryrsquos economy and trade minister Thailandrsquos deputy PM and finance minister and the CEOs of French carmaker Renault and US risk and strategy advisors Marsh amp McLennan

Also from Japan actor Ken Watanabe (The Last Samurai 2003 among many other films) spoke about his relief efforts during the Tohoku earthquake and tsunami last March while American billionaire Bill Gates announced a $750-million donation from the Bill and Melinda Gates Foundation to The Global Fund To Fight AIDS Tuberculosis and Malaria adding to its previous contribution of $650 million

China America and Asia In the East Asia session leading global affairs thinker Fareed

UN Secretary General Ban Ki Moon Nobel Peace laureate and Myanmar democrat Aung San Suu Kyi German PM Angela Merkel IMF Managing Director Christine Lagarde Wide-ranging WEF videos

The world according to Davos

34cenSEIT H E

Report


Zakaria interviewed Prime Minister Lee for half an hour starting with China Citing the countryrsquos burgeoning infrastructure and the rising demand for it the Singapore leader said ldquothere may be a rough landing but they will get through itrdquo

On the need to reduce dependence on exports and boost domestic demand ldquothey get itrdquo Lee said ldquoThe mantra is quite pervasiverdquo But to actually boost private consumption he saw the need for Beijing to restructure social safety nets ldquoso people have confidence to spendrdquo and to tidy up state enterprises ldquoso profits are distributed and properly utilizedrdquo Bottom line ldquothe right balance between investment and consumption this will be work for the years to comerdquo

The Prime Minister expected ldquocontinuity between the present generation of leaders and the next very capable people and very cautiousrdquo The tradition of collective leadership he added would stay and not allow a return to Maoist-era one-man cult

However Lee advised the Chinese leadership must address ldquoproblems put off over the last couple of yearsrdquo During the 90th anniversary of the Communist Party of China Lee recalled President Hu Jintao acknowledged these problems ldquomoral lassitude corruption disconnect from the people which really goes to the heart of the right of the Communist Party to govern They know the problems they must now find the solutionsrdquo

Zakaria asked about the ldquoflurry of diplomatic and political activityrdquo by the US in recent months including a possible Australian base and more troops in the Philippines Leersquos response on Americarsquos involvement in Asia ldquoTheir presence since the Second World War has been a tremendous benign influence It has generated peace stability predictability and enabled all countries to prosper mdash including China The United States after 60-plus years in the Pacific since the war is still welcomed and that is an example the Chinese should seek to emulaterdquo

His caveat ldquoItrsquos good that America continues to take an interest in the region in a broad range of areas But it cannot be for a few months at a time in a spasmodic style It has to sustained over a long period really over many administrations and decades America has many preoccupations around the world and we hope on your busy plate Asia doesnrsquot fall off the edgerdquo On a US military base in Singapore Lee said that there are docking facilities but ldquoa naval base would be twice as big as Singaporerdquo

As for Beijingrsquos reaction to Washingtonrsquos latest initiatives in Asia it has officially welcomed more outside participants in the East Asia Summit while privately being cautious and watchful especially about some

TimeCNNrsquos Fareed Zakaria and Singapore PM Lee Hsien Loong lsquoMost important is Americarsquos relationship with Chinalsquo WEF video

35


ldquopeople in America who do not want China to succeed So there is cooperation and also watchfulness on both sidesrdquo

Of the many issues in Asia Lee stressed ldquothe most important thing to manage is Americarsquos relationship with China It hasnrsquot come to blows although there have been tensions mdash and thatrsquos a positiverdquo

The world economy In the panel discussion on the world economy IMF Managing Director Lagarde said about Europersquos woes ldquoItrsquos not just euro zone crisis It could have collateral effects spillover effects around the world No country is immune and everybody has an interest in making sure this crisis is resolved adequatelyrdquo She urged action

Charts from Global Risk 2012 by World Economic Forum and Risk Response Network

WHAT WORRIES THE WORLD


Breakdown of critical information

infrastructure

Asset price collapse



Meteorological catastrophes

Severre income disparity

Chronic disease in developed

countries

Middle East instability

Slowing Chinese economy (lt6)


Hydrological catastrophes

Chronic fical imbalances

Oil price shock Failed and falling states Chronic disease Chronic disease Corruption Rising

greenhouse gas

China economic hard landing

Oil and gas price spike

Global governance gaps Fiscal crisis Biodiversity loss Cyber attacks


Chronic disease developed world

Retrenchment from globalization

(emerging)

Gobal governance gaps

Climatologival catastrophes

Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th

Top 5 Global Risks in Terms of Likelihood

Ran

kin

g





Major systematic financial failure



(developed)


(developed)


(developed)

Water supplycrises

Interstate and civil wars

Slowing Chinese

economy (6)

Geopolitical conflict

Food shortage crises

Pandemics Oil and gas price spike


Oil price spikes

Chronic disease Chronic disease Asset price collapse

Extreme energy price volatility

Chronic fiscal imbalances

Oil price shock Pandemic Fiscal crises Fiscal crises

Fiscal crisis


Extreme volatility in energy and

agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th

Top 5 Global Risks in Terms of Impact

Ran

kin

g

Economic Enviroment Geopolitical Societal Technological

36cenSEIT H E

Report


now and spelled out a ldquotoolkitrdquo of needed measures

Her prescriptions involve initiatives not just for Europe but other regions too She highlighted the need for economic growth critical for jobs fiscal consolidation and value creation And to spur European economies whatrsquos needed she explained are appropriate monetary policy adequate liquidity for banks and ldquoa clear simple firewall to limit the contagion and to provide this act of trust in the euro zone so

that the financing needs can be metrdquoAnother major need for Lagarde is competitiveness tailored to specific countries just as fiscal policies should be adjusted to each economyrsquos situation Third on her must-do list for Europe is further integration As for the US and Japan where there are also mammoth and increasing public debt there is need for medium-term measures to pare down the r ed ink As for emerging markets those able to boost consumption and imports should do so to help address global imbalances

Robert Zoellick who recently indicated his wish to leave his post as World Bank

president felt the global economy is also moving on ldquoWhatever we see in the world in the next year or so the world is never going to go back to the way it wasrdquo In particular the division of money and power in the world has decidedly changed

At the G20 summit of major developed and emerging economies in Cannes last November leaders of emerging markets looked with confusion frustration and disdain toward European Union heads of government in turmoil over the EU debacle

ldquoThis has got to have effects on influence perceptions of power in the world that are going to be quite significant for years to comerdquo said Zoellick Translation the rich world canrsquot lord it over the upstarts the way they did in decades past

Indeed adds the Bank chief the emerging economies may have the upper hand in one crucial respect At a recent G20 deputies meeting he recounted that developing nations told developed ones in so many words ldquoWe encountered this [debt]

problem before Many developed countries urged us to take difficult reforms We took

Hong Kong Chief Executive Donald Tsang lsquoHelp the poorrsquo WEF video

37


difficult reforms Theyrsquore painful They need political will Now itrsquos your turn Get on with itrdquo

Lessons from Asiarsquos crisis Sharing lessons from the 1997 Asian financial crisis Hong Kong Chief Executive Donald Tsang called for ldquooverkillrdquo in dealing with current rich-world debt woes He recalled how he was criticized as financial secretary when the government bought stocks to ldquostop the firerdquo consuming market confidence one and a half decades ago Yet that

stabilizing outlay pales in comparison to the state bailouts in America and Europe since 2008 he points out ldquoYou need to inspire confidence in decisive action by governmentrdquo Tsang counseled

But even as he called for urgent resolute measures Tsang also wanted attention and action on one thing often forgotten in financial restructuring people ldquoDuring the Asian crisis we dealt with institutional issues mdash we sort out the banks the stock markets the regulatory regime and so onrdquo he said ldquoBut we have forgotten the peoplerdquo He lamented years of painful deleveraging which wiped out more than half of asset

values leaving people with more debt than their mortgaged property was worth

During the 2008 global crisis Hong Kong supported not just the banks but also small and medium enterprises ldquoWe maintained jobs we secured the firms because we underwrote all their loans rdquo the perennially bow-tied Chief Executive recounted He told banks to ldquocontinue lending to your SMEs with good track records Small businesses survived and at the end of the day the default rate was almost zerordquo

Lastly he stressed ldquoyou must help the poor making sure they can reschedule their loans pay their billsrdquo The support cost 6-7 of economic output over two to three years ldquoIf you donrsquot have the money to do it find the moneyrdquo Tsang argued ldquomaking sure the grassroots is at ease and they have their jobs ready for themrdquo Thus confidence was sustained ldquoand you have domestic consumption goingrdquo For him 2012 is the crucial yearldquoAnd remember you have to deal with the peoplerdquo he said to generous applause ldquoThat is whatpublic service is all aboutrdquo

The most likely global risk is severe income inequality WEF video


38cenSEIT H E

Report


Addressing global risk Judging from the WEFrsquos Global Risk 2012 report which listed the top five risks in terms of likelihood and impact Tsangrsquos counsel is spot on Most of the ten worries will directly and severely

impact the poor Considered among both the most likely and the highest impact are water supply crises and chronic fiscal imbalances which lead to drought disease and decline in real incomes among the destitute

Top in the most likely list is severe income disparity with the poor getting less and less of the economic pie Meanwhile deemed of greatest impact is major systemic financial failure especially if the euro crise spins out ot control and pulls down the global economy and banking system That doomsday scenario would throw millions out of work and divert state resources from social programs to financial bailouts

If those risks arenrsquot enough burdens for those living on less than a dollar or two a day two other worries in the high-impact list are food shortage crises and extreme volatility in energy and agriculture prices

which squeezes the marginalized between escalating food costs and dwindling farm incomes

Presented in London Global Risk 2012 cited three major cases dystopia or the rise of hugely dysfunctional if not disastrous states and conditions the failure of

social and economic safeguards as seen in the 2008-09 global financial crisis and cyberspace disruptions which can derail the ICT systems on which modern societies and economies depend for everyday life and activities

Given the enormity of the challenges and threats no one nation region or organization can effectively defuse the risks it faces Only by joining hands can humankind survive and move forward Exactly what the World Economic Forum aims to promote in bringing together the movers and shakers thinkers and doers of the planet


Is the world getting warmer to solutions for its enormous problems The annual meeting of minds in Davos and other global collaborations are needed for humankind to move forward Photo MySwitzerlandorg

39


NEWS ON THE NET World

US to hold first talks with North Korea since Kim Jong Ils deathNorth Korean officials will meet with a representative of the US government on February 23 to talk about the Asian countrys willingness to give up its nuclear program according to US state Department spokeswoman Victoria Nuland Washington is optimistic that the meeting will signal the new regimes desire to negotiate terms with the United States and put the US renewed diplomacy drive with North Korea back on track In line with concerns over its nuclear program a possible bargaining point may be US food assistance

These talks will be the first high-level contact between the two nations since the death of national leader Kim Jong Il last December and the ensuing transfer of power to his youngest and previously least-known son Kim Jong Un Egypt to hold presidential poll in May reportEgyptian state newspaper al-Ahram quoted a government official last week as stating that the troubled countrys first presidential election since Hosni Mubarak was overthrown will be held late in May 2012 Street protests and public demands to hand power back to civilians soon are likely what prompted the government and its Army leaders to set the day

earlier than their original end-June deadline Earlier this February officials had announced that nominations for the presidential race would be accepted starting March 10

The candidates will be given three weeks to declare their candidature and 45 days to campaign although most candidates are already unofficially campaigning According to an approved referendum last year forthcoming Egyptian presidents will be limited to two consecutive four-year terms

Chinarsquos heir apparent calls for building trust with AmericaChinese Vice President and heir apparent Xi Jinping met with US congressional leaders last Wednesday accentuating during a Washington speech sponsored by the US-China Business Council the need for building mutual trust between China and the United States Xi said that relations between the two countries were at a new historical starting point at this second decade of the 21st century Meanwhile US President Barack Obama reiterated concerns over

Chinas stance on Syria as well as the Asian powerrsquos need to follow fair trade practices

We want to work with China to make sure that everybody is working by the same rules of the road when it comes to the world economic system Mr Obama said That includes ensuring that there is a balanced trading flow not only between the United States and China but around the world

Clashes mark anniversary of Bahrain protestsHundreds of activists attempted to reach the landmark Pearl Roundabout in the heart of Bahrains capital Manama last week on the anniversary of last years pro-democracy protests The island nations Interior Ministry relayed via Twitter that police had arrested rioters blocking a major thoroughfare in Manama They also reported that thugs in Northern Bahrain had set an electrical facility on fire and even tried to stop firefighters from putting out the blaze Small groups of protestors continued to pop up throughout the day to which security forces responded with rubber bullets bird shot and tear gas

Last year tensions rose in the Bahraini capital when police forcibly dispersed a protest encampment at the Pearl roundabout Over 60 people were injured in the chaotic scene involving shots fired tear gas clouds and people slipping in pools of blood as they took cover

US President Obama welcomes Chinese VP Xi Jinping We want to work with Chinarsquo Photo The Global Times

40cenSEI

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Report


TECHNOLOGY

For Facebook andGoogle Your PCIs Just One BigTwo-Way MirrorThe big business of data miningtouches off a debateover online privacyBy Tanya L Mariano

STRATEGY POINTSGooglersquos new privacy policy and Facebookrsquos IPO raise data security concerns

Tracking consumer behavioronline is seen as the fastest growing business on the Internet

Installing plug-ins and adjusting browser settings could help protect your privacy on the Internet

The race to mine your personal data just got a lot more serious

Two tech giants have recently been in the news of late Facebook on February 1 filed for an initial public offering (IPO) that could place the social network companyrsquos value somewhere between $75 billion to $100 billion reports the Wall Street Journal

For its part Google announced on its official blog that it is changing its privacy policy effective March 1 to consolidate the individual privacy documents of more than 60 of its products into one main policy which would mean each user will have a single identity while navigating across various Google services such as Google Mail YouTube and Web search

As reported in the Los Angeles Times Google seems to be increasing its ability to track users and know more about them in order to better

41


compete with Facebookrsquos treasure trove of information about its own usersrsquo connections and interests

Both companies make a ton of money turning user information into advertising dollars through targeted ads In 2011 Facebook earned $1 billion from $37 billion in gross revenues ndash 848 of which was from ads ndash and Google earned $97 billion from gross revenues of $379 billion 96 of its total revenue coming from ads

A cause for concern All this seems to be making a bunch of people nervous

Privacy watchdog Electronic Privacy Information Center has sued the Federal Trade Commission in a bid to halt Googlersquos implementation of its new privacy policy and the Telegraph reports that Europersquos Data Protection Working Party is calling for Google to postpone enforcement of the changes pending an analysis to determine whether these violate user rights

In a New York Times think piece ldquoFacebook Is Using Yourdquo Chicago-Kent College of Law professor Lori Andrews writes ldquounlike other big-ticket corporations it doesnrsquot have an inventory of widgets or gadgets cars or phones Facebookrsquos inventory consists of personal data mdash yours and minerdquo

Andrews goes on to explain how data mining and aggregation a normal practice in many industries can be used against you Your job credit or insurance application may be denied not on the basis of any personal information yoursquove provided but ldquoon the basis of aggregate

data what other people whose likes and dislikes are similar to yours have donerdquo

Itrsquos hard to defend yourself from something of which yoursquore not even aware

How your online data is collected and shared Data mining is ldquothe application of database technology and techniquesmdashsuch as statistical analysis and modelingmdashto uncover hidden patterns and subtle relationships in data and to infer rules that allow for the prediction of future resultsrdquo according to the 2004 US General Accounting Office report ldquoData Mining Federal Efforts Cover a Wide Range of Usesrdquo while data aggregation is ldquoany process in which information is gathered and expressed in a summary form for purposes such as statistical analysisrdquo and ldquomay be used to prepare data for subsequent miningrdquo according to a report by the National Association of State Chief Information Officers a non-profit association of state chief information officers and IT executives in the US

While marketers have long been privy to this method of tapping their target markets the digital age is making it easier to collect information and according to an in-depth investigative series by the Wall Street Journal published in July 2010 we are witnessing the rise of the fastest-growing business on the Internet spying on Internet users

The WSJ looked at 50 of the most popular websites in the US and how they track the behavior of visitors It found that ldquothe tracking of consumers has grown both far more pervasive and far more intrusiverdquo

To Facebook and Google your PC is just one big two-way mirror

42cenSEIT H E

Report


than most realize the top websites installed an average of 64 pieces of tracking technology onto visitorsrsquo computers usually without warning creating profiles of visitors that are ldquoconstantly refreshed and are bought and sold on lsquostock-market-like exchangesrsquordquo Between the advertisers and the users they target are over 100 ldquomiddlemen ndash tracking companies data brokers and advertising network competing to meet the growing demand for data on individual behavior and interestsrdquo

The WSJ created an interactive graphic (bottom left) that illustrates which websites employ the most trackers Surprisingly dictionarycom tops the list with 234 trackers downloaded onto the WSJrsquos test computer Free online encyclopedia Wikipedia has none

Whatrsquos more tracking technology is growing more and more sophisticated On top of simple ldquocookiesrdquo ndash tiny text files introduced in the browser Netscape Navigator in 1994 that were originally

intended to remember the contents of Web shopping carts ndash the WSJ found ldquonew tools that scan in real time what people are doing on a Web page then instantly assess location income shopping interests and even medical conditions Some tools surreptitiously re-spawn themselves even after users try to delete themrdquo

Watch the following video from the WSJ for more information on the ubiquitous cookie with a few words from the inventor of the cookie himself Lou Montulli who developed the tracking technology as one of the founding engineers of Netscape

Tech executives lsquoask for forgiveness not permissionrsquo Both Google and Facebook are no strangers to lawsuits and allegations of privacy violation and in a New York Times blog entry by Nick Bilton on the recent discovery by a programmer in Singapore that mobile social network Path is copying iPhone usersrsquo address book contacts without notifying them for which Pathrsquos CEO Dave Morin has

13 Of the top 50 websites in the US dictionarycom has the most number of trackers at 234 while Wikipedia uses none Graphic from the Wall Street Journal

13 A primer on computer cookies with input from the cookie creator himself Lou Montulli Video from the Wall Street Journal

43


since apologized Bilton observes that tech executives have adopted a management philosophy of ldquoask for forgiveness not permissionrdquo ndash taking user data without consent then apologizing only when someone cries ldquofoulrdquo

Google has flip-flopped over privacy issues with CEO Eric Schmidt saying during a 2010 interview on The Colbert Report that the company does not mine user data as reported by online tech magazine The Register then later admitting to National Public Radio journalist Andy Carvin during a 2011 interview that Google+ the companyrsquos social media service is practically a data-mining scheme according to a report by tech publication GigaOM posted on the Bloomberg Businessweek website

A post on pingdomcomrsquos Royal Pingdom blog enumerates the ways in which Google gathers user information which include tracking web searches and using tools like Google Analytics Adsense and AdwordsFacebook likewise is guilty of dipping their

hands into user data without permission In 2011 the company was sued after an Australian blogger discovered that through its installation of cookies it was tracking usersrsquo web activities even after users logged off Facebook as reported on Bloombergcom

The social network has a troubled history of privacy protection and this has turned its young billionaire CEO into a ldquoserial apologizerrdquo Liz Zannes of technology news analysis magazine AllThingsD compiled this list of mostly privacy-related apologies Mark Zuckerberg has made over the years beginning with a ldquopre-apologyrdquo in 2006 a week before rolling out its ldquonews feedrdquo feature which was negatively received by most users

lsquoPublic by default private by effortrsquo The problem is that in the past ldquoYou were private by default and public by effort Nowadays yoursquore public by default and private by effortrdquo according to Lee Tien a senior staff attorney at the digital rights

advocacy group Electronic Frontier Foundation as quoted in the Time article ldquoData Mining How Companies Now Know Everything About Yourdquo written by columnist Joel Stein

Stein was surprised to find out what a number of companies knew about him based on data mined online and even prepared a video to showcase just how many different online personas he apparently has

13 TIME columnist Joel Stein discovers who he is in the eyes of Web and data-mining companies one of which thinks hersquos an 18- or 19-year-old woman Video from TIME magazine


44cenSEIT H E

Report


For instance Google thinks hersquos ldquoa guy interested in politics Asian food perfume celebrity gossip animated movies and crime but who doesnrsquot care about lsquobooks amp

literaturersquo or lsquopeople amp societyrsquordquo something the writer asserts is not true while a Texas-based data marketing firm called Alliance Data has him pegged as a ldquo39-year-old college-educated Jewish male who takes in at least $125000 a year makes most of his purchases online and spends an average of only $25 per itemrdquo

The more that people become dependent on services such as Google and Facebook to communicate ndash to organize mobilize or simply socialize ndash the more these behemoths of the technology world are able to dictate how privacy is treated

In an commentary published in Forbescom British Telecom security technologist and Chief Security Technology Officer Bruce Schneier writes ldquoOn the Internet our privacy options are limited to the options those companies give us and how easy they are to findhellip As long as privacy isnrsquot salient and as long as these companies are allowed to forcibly change social norms by limiting options people will increasingly get used to less and less privacyrdquo

But is it all that bad In 2011 PCWorld magazine had two of its editors debating the

ldquoDo-Not-Track Act of 2011rdquo which if passed would afford individuals the ability to opt out of online tracking While Tom Spring asserts that privacy should not be taken lightly since

your online behavior can greatly affect your offline life Patrick Miller argues that ad targeting is ldquono big dealrdquo

Since it is advertising that creates revenue on the Internet and allows for a lot of content to remain free and since online

ads will continue to proliferate whether or not the bill is passed Miller writes that targeted advertising will result in better and more relevant ads and concludes that if he has to put up with them anyway ldquoIrsquod rather have better ads than crappy adsrdquo

Spring however challenges his colleaguersquos arguments maintaining that ldquothe threat is realrdquo in that advertisers now employ more advanced tracking methods and ldquofor the determined such as a government scammer or advertiser itrsquos easy to extrapolate a name from the anonymous data collected onlinerdquo Several studies show that most consumers share Springrsquos concerns A 2008 National Research Center Consumer Report that surveyed 2006 randomly sampled adults in the US found that 77 believed that tracking of online behavior could be harmful Of this percentage 53 were uncomfortable with ldquoInternet companies using the content of emails and browsing history to send relevant ads even if that information cannot be tied to their name or any other personally identifiable informationrdquo and 54 are uneasy over the collection of their email content and browsing history by third parties for advertising purposes

In the past ldquoYou were private by default and public by effort Nowadays yoursquore public by default and private by effortrdquo

ndash Lee Tien senior staff attorney Electronic Frontier Foundation

45


The afore-mentioned WSJ ldquoWhat They Knowrdquo investigative series also found that more than half or 8819 of the total 14770 respondents to their online survey were ldquovery alarmedrdquo about companies and advertisers tracking their online behavior

Regulation could lead to a lsquoless robust Internetrsquo Findings of another study however suggest ldquoprivacy regulation may affect the direction of innovation on the advertising-supported internetrdquo In ldquoPrivacy Regulation and Online Adverisingrdquo researchers Avi Goldfarb of the University of Torontorsquos Rotman School of Management and Catherine Tucker of MIT Sloan School of Management studied the responses of 33 million survey-takers randomly exposed to 9596 banner-advertising campaigns from 2001 to 2008 They found that following the enactment of the privacy regulation in the European Union in 2002 advertising effectiveness dropped by an average of 65 relative to the rest of the world (the authors used expressed ldquopurchase intentrdquo rather than actual purchase data to measure ad effectiveness)

Reporting on Goldfarb and Tuckerrsquos study the Washington DC-based think tank Information Technology and Innovation Foundation concludes ldquopolicymakers should recognize that privacy as with any other value must be balanced against other competing interests and can as it will here come at a real financial costmdashfewer jobs less investment and a less robust Internethellip The Internet is a vital part of economic and social life and federal data privacy legislation should ensure that beneficial uses of data are not curtailed by overly-restrictive data sharing policiesrdquo

How you can protect yourself As the debates rage on one thing that those uncomfortable with tracking can do right now is increase their online protection

The TIME article by Stein lists a couple of services that could help safeguard your online presence

1 Sign up for a service like Reputation which charges $825 a month to ldquokeep trackers off your browserrdquo and will make you look good online for a little extra fee2 Install Ghostery a free browser plug-in which tells you which companies are tracking you every time you visit a website3 Visit PrivacyChoice which has a database of over 300 tracking companies and gives you the choice to opt-out of being tracked4 Go to the websites of industry associations like Network Advertising and About Ads to opt-out of data mining being conducted by their members

The WSJ also recommends updating to the latest version of your browser tostay up-to-date on privacy options deleting cookies adjusting browser settings to block ldquothird-partyrdquo cookies and using ldquoprivaterdquo browsing (an option available on most internet browsers) when online

Aside from all these being careful with what you share online and whom you share it with is also important

With major players appearing to step up their game in the big business of data mining and aggregation the least that Internet users can do is beef up their data privacy protection to safeguard the security of their online identities


CONTENTS TECHNOLOGY NATION WORLD BUSINESS

46cenSEIT H E

Report

NEWS ON THE NET Technology

FAA told to make room for drones in US skiesThe time when drones are commonplace may arrive sooner than we all think Now drones are now poised to share the skies with passenger planes at least in the United States Last week the Senate sent President Obama legislation that would ultimately require the Federal Aviation Administration to devise ways by which this very scenario would become a reality ndash in three years

The varied uses of drone technology range from searching for missing persons to collecting scientific data However drones are still best known for their combat usage Drone operations in Afghanistan Iraq and Pakistan were not out of the ordinary Recently the technology was further refined as US combat troops were reported to be using new mini-kamikaze drones against the Taliban

The green economy boon or baneGreen economy development is a hot topic among specialists around the globe Some assert that it will heighten social inequalities and support increasing big business control over the worlds natural resources while others point out that it will create jobs and do much to help environmental conservation and protection

efforts In a study released by the ETC Group the nongovernmental organization argues that green economies will benefit predominantly largo corporations unless changes are made to the existing models of production and consumption of good as well as global governance

The green economy has been defined by the United Nations Environment Programme as ldquoa system of economic activities related to the production distribution and consumption of goods and services that result in improved human wellbeing over the long term while not exposing future generations to significant environmental risks and ecological scarcitiesrdquo The subject will be a central theme at the United Nations Conference on Sustainable Development this June 2012

Publisher launches social network for foodiesGlam Media online lifestyle publisher recently launched Foodiecom a social network focusing entirely on the gastronomically inclinedThe company hopes to build a community where users can create profiles connected to either their Facebook or Twitter accounts From there they can follow their favorite chefs and food writers make use of a recipe finder share their thoughts and participate in many more activities

To facilitate the process Glam has enlisted more than 100 culinary notables ndash food writers bloggers critics chefs and more ndash to produce content for the site

Foodiecom is riding the wave of the social network boom and is poised like Facebook for its IPO Other specialized social networking sites are enumerated in an article published by MakeUseOfcom a daily blog that tracks popular websites and online trends

Textile scientists bare veggie wearLast week a truly innovative fashion show dubbed Bagong Habi Salinlahi was staged in Makati featuring clothes made from unique and all-natual fabrics The fabrics were made from banana pineapple saluyot (C Olitorius) maguey (Agave cantala [Roxb]) and water hyacinth Providing the science and technology behind the successful wearable innovations is the Philippine Textile Research Institute (PTRI) ldquoIt has never been tested and proven before that we can use food fruit and vegetables as textile mdash until nowrdquo PTRI Director Carlos Tomboc said

The fashion show was a delayed event marking January as the Philippines Tropical Fabrics Month a new monthly celebration promoting the use of indigenous fibers in the country

The cenSEI Selection Engage Educate and EdifyIn our information age inundated by words and numbers sounds and images just clicks away online the real challenge is not in getting enough data but in sorting analyzing selecting discarding and otherwise extracting meaningful and useful knowledge from the oceans of bits bytes and ldquobullrdquo

In this daily sifting through print broadcast and broadband The cenSEI Report always seeks strategic import as well as diversity and breadth of coverage eschewing the easy grab-bag of headline topics for what truly has wide and significant impact That often means searching for below-the-radar issues and developments to alert our readers ahead of the crowd and provide them expert insight and data from both in-house staff and online studies

Take the current issuersquos crop of five articles Our lead report on the beauty business takes the universal quest for youth and looks and turns it into a package of material with increasing bottom-line impact for the foreseeable future After all as Asiarsquos billions get richer high on their spending list would be the products procedures and services which enhance shape skin smile and style

Our Technology story on Facebook and Google may seem just another paean to todayrsquos hottest ventures riding on the news of the formerrsquos public share offering and the latterrsquos new privacy rules In fact the article zeroes in on the lesser known gold mine in both these online behemoths data mining Sure there are billions of dollars to be made in online ads But the data gathering and crunching that tailors and channels messages for greatest sales impact mdash thats the real prize mdash and peril

Even after defining the strategic aspects of an issue or event the work gets no easier for the Internet now yields material in tons on any topic The Corona impeachment coverage offers video clips legal doccuments and commentary plus blogs and tweets For this weekrsquos recap of the first five weeks evidence and legal issues are the focus for they are the starting point of the quest for justice

The digital piracy story is another that recent news has ignited a bit But whatrsquos newsy is often not whatrsquos important Our report tackles a question often taken for granted What exactly does the country get from fighting piracy besides pleasing Big Brother America The same questioning of dominant Western perspectives animates the World Economic Forum roundup culling the choice cuts most relevant to Asians from the rich buffet of big names and bigger ideas at the conference in Davos

Thatrsquos the cenSEI selection this week We hope our choices engage educate and edify

4cenSEI

T H E

Report








BUSINESS




5










9

15

57

330

45

29 56

26 57

32 38 13

1422 1931

45



6cenSEIT H E

Report












7







bull Mass cosmetics


bull Au Naturel




bull China





8cenSEIT H E

Report











9











10cenSEIT H E

Report













Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












4cenSEI

T H E

Report








BUSINESS




5










9

15

57

330

45

29 56

26 57

32 38 13

1422 1931

45



6cenSEIT H E

Report












7







bull Mass cosmetics


bull Au Naturel




bull China





8cenSEIT H E

Report











9











10cenSEIT H E

Report













Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












5










9

15

57

330

45

29 56

26 57

32 38 13

1422 1931

45



6cenSEIT H E

Report












7







bull Mass cosmetics


bull Au Naturel




bull China





8cenSEIT H E

Report











9











10cenSEIT H E

Report













Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












6cenSEIT H E

Report












7







bull Mass cosmetics


bull Au Naturel




bull China





8cenSEIT H E

Report











9











10cenSEIT H E

Report













Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












7







bull Mass cosmetics


bull Au Naturel




bull China





8cenSEIT H E

Report











9











10cenSEIT H E

Report













Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












8cenSEIT H E

Report











9











10cenSEIT H E

Report













Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












9











10cenSEIT H E

Report













Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












10cenSEIT H E

Report













Grace Lee

Korina Sanchez

Bunny Calica


Shalani Soledad

Bernadette Sembrano

Barbara Milano

Liz Uy

11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












11














12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












12cenSEI

T H E

Report


NATION








13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












13










1960-1969 1490 223

1970-1979 1657 248

1980-1989 1427 214

1990-1999 1366 205

2000-2009 732 110




14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












14cenSEIT H E

Report

















15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












15















16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












16cenSEIT H E

Report
















17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












17









In the 2010 IIPA







18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












18cenSEIT H E

Report













13 13

13

13

19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












19













20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












20cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












21










Neil Young

Mathew Ingram

Matt Peckham

22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












22cenSEIT H E

Report








23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












23










24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












24cenSEIT H E

Report











25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












25










26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












26cenSEIT H E

Report










evidence later

27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












27
















28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












28cenSEIT H E

Report







29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












29







13





30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












30cenSEIT H E

Report











31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












31














32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












32cenSEI

T H E

Report


WORLD






STRATEGY POINTS




33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












33











34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












34cenSEIT H E

Report










35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












35









infrastructure







countries







greenhouse gas







(emerging)



Water supply crises

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g








(developed)


(developed)


(developed)

Water supplycrises


Slowing Chinese

economy (6)





Oil price spikes





Fiscal crisis



agriculture prices

2007 2008 2009 2010 2011 2012

1st

2nd

3rd

4th

5th


Ran

kin

g


36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

Report












36cenSEIT H E

Report












37











38cenSEIT H E

Report












39













40cenSEI

T H E

Report


TECHNOLOGY









41














42cenSEIT H E

Report










43












44cenSEIT H E

Report














45













46cenSEIT H E

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the censei report (vol. 2, no. 7, february 20-26, 2012)

Documents