Filipinos in South Korea

The West Philippine Sea? Not South China Sea!

New Leaders Forum contributor Javad Heydarian speaks with Right Livelihood Award winner Walden Bello about China, the U.S. role in Asia and his call for the renaming of the South China Sea.

In light of China's increasingly bellicose rhetoric and recent incursions in the South China Sea, you were among the first leading Filipino figures to call for a more "assertive" position by the Philippine government by drafting a resolution that called upon the executive branch to rename the South China Sea as the "West Philippine Sea." Was this proposal more of a symbolic gesture, or a tactical move to strengthen our claims in the Spratly islands?

Of course, the primary battle was at the politico-psychological level. If you keep on calling a site the South China Sea, it subliminally connotes some kind of "possession" by China.  This is in light of the fact that often times our actions and thoughts are guided and shaped by forces that operate on the subliminal level. For us Filipinos, calling the area the West Philippine Sea marks a subliminal paradigm change. Suddenly the name that always carried China is now changed. This was a psychological blow to China.

Our proposal was also symbolic. It was meant to show to the world that our claims to the Spratly Islands are legitimate. There was also a tactical-legalistic dimension to our proposal, in terms of advancing our legitimate claims. There would be an impact in terms of advancing the legality of our claims to parts of the Spratly Islands and our exclusive economic zone (EEZ), which we are entitled to based on the U.N. Convention on the Law of the Sea (UNCLOS).

Did the terms West Philippine Sea carry any specific spatial demarcation or geographical specificity? Why did you choose to name the area after the Philippines when there are other claimant countries aside from China?

We didn't make any clear demarcations. The resolution wasn't meant to connote a specific territorial boundary. We wanted it just to reflect that this wasn't China's sea. We are by no means fixed with regards to our attitude to the name. We are open to multilateral arrangements and diplomatic solution. We are even open to calling it the Southeast Asia Sea or ASEAN Sea or what have you. Our proposal was at most a symbolic and politico-psychological move.

Earlier this year, you led the so-called "peace and sovereignty mission," composed of congressional delegations, government officials, media, and members of the armed forces, in the Spratly islands, despite vehement opposition from Beijing. What was your primary objective in organizing this mission? In your opinion, to what extent was the mission successful? And, to what degree do you think that the mission reflected greater public sentiment?

Firstly, I think the mission reflected tremendous public sentiment. I think there's no doubt in Filipino minds that we have rightful claims in the area. Second, we wanted to support our government stance that we have rightful claims in the Spratly Islands, and that we have a 200-mile Exclusive Economic Zone.  Most importantly, we wanted to reflect the country's desire for a peaceful settlement of the issue. This was the main objective. Going there in a civilian plane and leading a congressional delegation had a very high impact. We wanted to make clear the reality that this isn't just a diplomatic game, but instead it's about the interests of the people. We had several audiences, but we definitely wanted to signal to China that they can't get away with such brash claims that the entire West Philippine Sea belongs to them. We wanted to remind Beijing that it can't take its neighbors for granted and just advance any claim it wishes to.

This was also an effort on our part, in term of messaging to China, that it should not follow the path of other imperial powers. Unfortunately, in this case, China was threading this path, and we wanted it to move away form that path before it was too late. What we didn't expect was the vehement Chinese reaction, when they condemned the mission, denying our right to visit the area. This made the issue even bigger and more controversial. I'm very surprised at how China's diplomacy, known for its sophistication, made a very bad mistake by polarizing the issue further, coming off to the world as a bully.  They were practically telling others where they can and can't go.

What do you think is the main driver behind China's increasingly assertive behavior in the area?

There are several explanations. First, geo-economic factors are at play, serving as a motivation for some actors in Beijing to think that given China's economic trajectory – and all the needs of the country to reach developed country status – they need to secure as many resources as possible, particularly in resource-rich areas, such as the West Philippine Sea, which are adjacent to the mainland. So it's basically about locking up necessary resources to keep up the economic push.

Another explanation is that since China has achieved the first stage of economic modernization, namely the transition from an agricultural to an industrial economy, it has entered into a post-Deng period of "national assertiveness" in both the military and diplomatic realms. Third, China is developing its navy, and the navy has been aggressively espousing its bureaucratic interests at the expense of other branches of the military, by emphasizing China's need to assert itself in adjacent maritime waters. This is, after all, about China's long-term bid to match U.S. supremacy in global waters.

The three factors are interrelated explanations. I think all three are functioning here to a certain degree. Does this mean China is moving onto an imperial path? I don't think so, but there's a danger of it happening. Yet the cooler heads and more strategic minds could still prevent this.

What was your impression when the Department for Foreign Affairs and the armed forces decided to formally adopt your proposal to rename the disputed waters as the "West Philippine Sea"? Do you think this was a reflection of a renewed strategic posturing by the Philippine state, or more of a symbolic move to stoke brewing nationalist sentiment among the Filipino populace?

I think they were getting worried about Chinese incursions, and how they have been harassing our fishing boats and exploratory ships, preventing them from navigating the area. Perhaps they weren't expecting our proposal to come up. I remember my earlier conversations with Department of Foreign Affairs people, who focused on territorial disputes in the area. They were very excited about the possibility of our proposal coming out. They reacted very positively and said our idea is very good. In light of our weak military capabilities, the resolution provided a symbolic counter-attack, which was very effective. They realized how powerful "discourse" is. People realized that discourse was power. So our proposal carried immense tactical and symbolic implications, which were welcomed by the executive branch as well as the country's armed forces.

To what degree do you think America's apparent decline is influencing China's regional behavior? Is China exploiting a perceived shift in the global balance of power?

There's a growing recognition that the U.S. has overextended its strategic reach, while China has risen to become the world's second largest economy. Of course, it's just a matter of time before China becomes the world's preeminent economic and also military power. Cognizant of America's relative decline, and confident of China's steady rise, it comes as no surprise if some hawks in Beijing and the People's Liberation Army have this increasing feeling that China must have it's place in the sun.

However, the trend towards greater assertiveness isn't irreversible. There's nothing inevitable with respect to China's behavior. Surely, China can remain rational and calculated in its external behavior? In my opinion, China's increasing assertiveness should be seen from a more structural, rather than ideological, point of view. The country's resource-intensive export-oriented model of development has placed immense pressure on the state to secure as much in raw materials – from hydrocarbon resources to minerals and agricultural products – as possible to sustain its current pace of growth. Unless China makes a decisive shift towards a more stable and tempered form of domestic market oriented model of development, the Chinese state will always feel the compulsion to secure strategic natural resources at any cost. Therefore, it's very important for China to focus on re-structuring its current model of development, which relies heavily on resource-import and energy-intensive production.

What's your impression of the Obama administration's apparent "re-focus" or "re-engagement" with the Asia-Pacific region? This was very explicit in Hillary Clinton's Foreign Policy article, 'America's Pacific Century,' which underlined America's commitment to remain as an anchor of stability and prosperity in the trans-Pacific region. Strategically, do you think that this policy of "re-engagement" is simply a veiled attempt by Washington to "contain" or constrain China's continued rise? 

It seems a desperate effort by the Obama administration to disentangle from the Middle East in order to have a piece of the Asian miracle. There's an element of a "scramble" for Asia's booming markets. But, there's nothing new with Obama's policy. President Bill Clinton was among the first leaders to focus his efforts on East Asia, recognizing the region's economic dynamism and the benefits of greater trans-Pacific economic interaction and cooperation. Despite his initial identification of China as a strategic competitor, the exigencies of the "War on Terror" forced President Bush to increase America's cooperation with China and other East Asian countries. My sense is that Obama's re-engagement with Asia is informed by a sense of panic with the pace of China's rise. There seems to be this lurking nostalgia for containing China. But, China is simply too big and powerful to contain. Any attempt at containment is doomed to fail. Moreover, given how America is still embedded in the Middle East – in light of the Arab uprisings, growing tension with Iran, troubles in Iraq, and the ongoing war in Afghanistan – this shift or re-focus on the Asia-Pacific region would be very difficult.

Let's talk about strategic options for the Philippines as far as managing territorial conflicts with China are concerned. Do you feel that ASEAN has the institutional requisites and necessary political will to be helpful on this issue? Or do you think that the Philippines should strengthen its alliance with the U.S. as some kind of hedge against Chinese aggression?

I think that there's a fundamental zero-sum relationship between pursuing multilateral solutions, within the ASEAN framework and under the auspices of the UNCLOS, on the one hand, and creating a bipolar Sino-American face-off by bringing America into the picture, on the other. The Philippine state should choose the multilateral option as its sole strategy in dealing with our disputes in the West Philippine Sea. Sure, ASEAN has its own shortcomings, but serious issues of common concern, such as territorial disputes in the West Philippine Sea, should serve as an impetus for greater institutional development.

There are a lot of opportunities and ways by which ASEAN could be more constructive and productive on this particular issue. I believe that it's time for ASEAN to grow up, develop a collective security arrangement, push forward with the establishment of a regional economic bloc, and deepen its engagements with the region's civil society. Such institutional growth and regional integration would allow ASEAN to play a more decisive role in managing and resolving territorial conflicts, which threaten regional stability and prosperity.

We already see some positive developments in dealing with disputes in the area. For instance, we have recently witnessed efforts by ASEAN leaders to draft and implement a more binding code of conduct in the West Philippine Sea. Development of appropriate guidelines would be extremely crucial, and such efforts are already underway. Most importantly, ASEAN should use its deepening economic interdependence with China as some sort of leverage to moderate Beijing's behavior and encourage a more rational and peaceful resolution of conflicts. After all, China relies heavily on Southeast Asian countries' resources to feed its booming economy and growing needs.

In your opinion, what's the most optimal and effective solution or approach to our territorial concerns in the region? What sorts of strategies could we adopt to influence China's behavior? Do we have any leverage on China at all, given its immense economic dominance in Southeast Asia?

In my opinion, there are three things that the Philippines should do. First, we should maintain a strong posture. This means that we have to clearly communicate to Beijing and our partners that while we are committed to a peaceful resolution of the dispute, we are also equally committed to our national territorial integrity. We are willing to use all diplomatic and political tools at our disposal in order to defend and protect our legitimate territorial claims in the West Philippine Sea.

Second, we have to emphasize a multilateral settlement of the issue. All claimant countries should come to the table and resolve this issue within a constructive atmosphere, which espouses dialogue, discourages the use of force, adheres to principles of international law, and respects regional norms as enshrined by the ASEAN charter.

Lastly, our allies and us should refrain from bringing America into the picture. This will only lead to a great power conflict, which would compromise our efforts to resolve conflicts in accordance with the principles of international law and regional dialogue.

Walden Bello is the author of more than a dozen books including 'Dilemmas of Domination: The Unmaking of the American Empire (2005).' He was awarded the Right Livelihood Award (also known as the Alternative Nobel Prize) in 2003. http://the-diplomat.com/new-leaders-forum/2011/12/15/the-west-philippine-sea/

Philippines climbs six notches on WEF financial development ranking

The Philippines ranked higher at the Global Financial Development Index 2011 released by the World Economic Forum (WEF), thanks to the boost from the country's nonbanking services and financial markets. Download the full report

The jump to No. 44 this year from No. 50 last year highlights the gains made in the insurance sector, as well as the advances noted in the domestic capital markets, whose depth and width has broadened.

The Philippines was the biggest gainer among members of the Association of Southeast Asian Nations included in the index.

The country also improved its overall score to 3.13 points in 2011, up 0.17 points from 2.96 points in 2010. The increase in its score made the Philippines among the top 10 biggest gainers in the index.

"The Philippines improved significantly over the past year, moving up an impressive six spots in the index. Financial intermediation remains an area of strength for the Philippines as its nonbanking financial services and financial markets continue to develop," the report said.

The index measures financial development of countries through seven pillars, such as institutional environment, business environment, financial stability, banking financial services, nonbanking financial services, financial markets and financial access.

The Philippines's highest rankings were in nonbanking financial services (No. 20, with a score of 2.53 points) and in financial markets (No. 33, with a score of 2.04 points).

The WEF also paid tribute to advances the Philippines and its regulators made in such fields as securitization, where new investment instruments are carved out of a pool of assets; or in the field of mergers and acquisitions, where the Bangko Sentral ng Pilipinas has made significant progress in reducing the number of banks and financial institutions and transforming them into leaner but stronger entities able to compete with some of the best in the region.

Nevertheless, the Philippines failed to convince the WEF that the local business environment was as conducive to doing business compared with other countries in the region. The lowest rankings of the country were in business environment where it was ranked No. 55, and in financial access (No. 50).

Philippine regulators are some of the first to admit that some key sectors of the economy could benefit from greater competition from foreign players but so far, these have been kept beyond the reach of overseas interests that have the financial clout and economies of scale to provide greater efficiency levels translating to lower cost for Filipino consumers.

The country's relative lack of physical infrastructures such as grains silos or farm-to-market roads, for example, also help keep the Philippines a fairly expensive place to commit long-haul investments, according to the WEF.

"Its business environment and financial access continue to hinder its development. A weak business environment is the result of lack of infrastructure and an extremely high cost of doing business. Other impediments include limitations in financial access in areas such as foreign direct investment and the total number of ATMs," the report stated.

Hong Kong overtakes US, UK  

"Hong Kong Special Administrative Region overtakes the United States and the United Kingdom to top the World Economic Forum's fourth annual Financial Development Report. As the first Asian financial center to achieve this rank, Hong Kong's position was bolstered by strong scores in non-banking financial services such as IPO activity and insurance," the WEF said.  

The Financial Development Report "aims to provide a comprehensive means for countries to benchmark various aspects of their financial systems and establish priorities for improvement. It is published annually so that countries can benchmark themselves and track their progress over time." 

For the various index components, the 60 countries were rated using a 7-point scale with 7 being the highest value. The Philippines' 44th ranking was the result of an overall rating of 3.1 out of a highest possible 7.0.

Philippine Navy Launches BRP del Pilar & BRP Tagbanua for Spartlys

The country's largest warship will be deployed in the West Philippine Sea before Christmas to guard the country's borders, a Navy officer said yesterday.

Speaking at Navy headquarters in Manila, Navy Capt. Alberto Cruz, commanding officer of BRP Gregorio del Pilar, said they are awaiting orders from the military leadership on the ship's deployment.

"It will be deployed within this month, before Christmas. This will secure the territory of the Philippines," Cruz said.

Cruz said the ship's travel time from Manila to the West Philippine Sea would be about 24 hours.

The ship's crewmembers were selected from various naval units, he added.

Cruz said the sailors manning the ship are part of the Navy's "cream of the crop."

"The crewmembers will spend Christmas inside the ship," he said.

The Navy commissioned the Gregorio del Pilar at Pier 13 in South Harbor, Manila at 10 a.m. yesterday.

It is the country's first Hamilton-class cutter.

President Aquino witnessed the commissioning of the Gregorio del Pilar, which was acquired from the US Coast Guard early this year.

Aquino also led the commissioning of the BRP Tagbanua, a landing craft utility that is 100 percent Filipino made and the BO105 helicopter donated by the Tourism department.

Three of Aquino's sisters served as principal sponsors of the two ships and aircraft.

This was in line with a tradition of tapping females to serve as sponsors of maritime assets to be commissioned.

 

BRP Tagbanua - Philippines' locally made ship

Navy officials and the principal sponsors broke a bottle of local basi wine on the ships' bows for good luck and smooth voyage.

In other countries, bottles of champagne are used for the ceremony.

Basi, made of sugarcane, was also poured on the newly commissioned BO105 helicopter.

Navy chief Vice Adm. Alexander Pama said the Gregorio del Pilar is "the symbol and icon of our capability upgrade and modernization program."

"The (BRP Gregorio del Pilar) will now steam as the vanguard of your Navy as she now leads our fleet in fulfilling our obligation to secure our maritime nation's territorial integrity and sovereignty and protect our exclusive economic zone," he said.

"All these have become a reality for us only because of the obstinate desire of our President and Commander-in-Chief to provide your Navy with the necessary wherewithal to perform its missions and functions."

Aquino's elder sister Maria Elena "Ballsy" Cruz served as the principal sponsor of the warship.

Early this year, the government acquired its first Hamilton-class vessel from the US Coast Guard to enhance the military's external defense capabilities.

The 380 feet-long vessel Gregorio del Pilar was acquired under the US Foreign Military Sales program.

The ship's transfer cost was pegged at about 450 million and was bankrolled by proceeds from the Malampaya funds.

The Navy also commissioned the Tagbanua, a locally built Navy landing craft utility named after an indigenous group in Palawan.

Navy spokesman Lt. Col. Omar Tonsay said the ship is primarily designed to transport combat personnel, tanks, vehicles and cargo.

The government spent 180 million from the military's modernization funds for the ship, which was manufactured by shipbuilder Propmech.

Presidential sister Victoria Elisa "Viel" Dee served as the principal sponsor of the ship.

Robert Cursod Jr., leader of the Tagbanua tribe after which the ship was named, was present during the ceremony.

Also commissioned yesterday was a BO105 helicopter named Philippine Navy Helicopter 422.

The helicopter was donated by the Tourism department's Tourism Infrastructure and Enterprise Zone Authority last August.

Tonsay said the helicopter is ready for deployment after the Naval Air Group undertook a few repairs. Presidential sister Aurora Corazon "Pinky" Abellada served as principal sponsor of the helicopter.

In the same event, the Navy renamed the presidential yacht Ang Pag Asa (hope) to Ang Pangulo.

The yacht was renamed "to continue the heritage and carry the honor and prestige of the Philippine presidency."

The Ang Pangulo has been the presidential yacht since the time of President Diosdado Macapagal and was originally named RPS Roxas.

5 new choppers

The Navy is set to acquire five new helicopters next year.

Marine Col. Ariel Caculitan, Naval Air Group commander, said acquisition of the helicopters is already on the pipeline.

"The acquisition of the additional five helicopters is a big lift to our naval air capability," he said.

The Navy has 10 operational fixed wings air assets, four of which are trainer planes, six islanders and three helicopters, he added.

Caculitan said the five helicopters will be deployed on board two Hamilton-class cutters which the Navy is acquiring from the US in the first quarter and second quarter next year.

Dellosa orders reforms

New Armed Forces chief Lt. Gen. Jessie Dellosa has ordered his troops to continue undertaking reforms in their financial system and to implement security plan Bayanihan and disaster response measures.

Armed Forces spokesman Col. Arnulfo Burgos Jr. said yesterday Dellosa issued the directives during his first command conference as chief of the 120,000-strong military last Monday.

"He (Dellosa) asked the commanders to continue the reforms started by (former military chief) Gen. (Eduardo) Oban," he said. "He said we should continue enhancing our financial and logistics system."

Burgos said Dellosa outlined his four priority areas during the command conference, namely the internal peace and security plan Bayanihan, disaster preparedness, territorial defense and organizational reforms.

The command conference was held immediately after Dellosa assumed as military chief in Camp Aguinaldo, Quezon City, he added.

The meeting only lasted for about 30 minutes, Burgos said.

Dellosa was installed as the 43rd chief of the Armed Forces last Monday.

During his assumption, Dellosa vowed to continue adhering to the principles of Bayanihan by engaging with civilian stakeholders.

"Many efforts are now being focused on poverty, social injustice, and graft and corruption," he said.

"In this aspect of work, it should be clear that the role of your AFP is not to lead but to support.

"To further ensure that we achieve the desired end state, we shall vigorously engage all stakeholders, especially the local chief executives in affected areas."

Dellosa also stressed the need to prepare for climate change and other natural hazards.

"We shall enhance our commitment to cushion the effects of climate change by envisioning a very comprehensive approach on disaster preparedness, enjoining all local community assets and human resources," he said.

Dellosa also vowed to continue upgrading the military's capabilities to protect the country's territory and sovereignty.

"Development of navy and air force bases and facilities to efficiently respond to untoward incidents is something we can no longer ignore," he said.

He also promised to work for the realization of the Philippine defense reform and to improve AFP's structure to achieve a lean and capable active force.

Meanwhile, Dellosa witnessed on Monday the turnover by the Philippine Amusement and Gaming Corp. of P4.5 million in financial aid to three Army hospitals.

Army spokesman Maj. Harold Cabunoc said the assistance would be used to acquire equipment for the Army General Hospital in Fort Bonifacio, Kuta Major Cesar Sang-an Station Hospital in Zamboanga del Sur and Camp Siongco Station Hospital in Maguindanao.

"The new hospital equipment that will be purchased will greatly improve the delivery of health services for the Army personnel," said Col. Mariano Mejia, commanding officer of the Army General Hospital.

Aquino and Army chief Maj. Gen. Emmanuel Bautista were also present during the turnover of the financial assistance.– With Aurea Calica

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