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BBC: "Apocalypse Now" Vietnam Village is faked: It was in Baler Philippines

Released in 1979, starring Martin Sheen, Marlon Brando and Robert Duvall (pictured), Francis Ford Coppola's Vietnam war film follows Captain Willard (Sheen) deep into the Vietnamese jungle in search of the renegade Colonel Kurtz (Brando). Now acclaimed as a classic, the film's production was famously beset by a number of disasters, including a tropical storm which destroyed the original set. "We had access to too much money, too much equipment, and little by little we went insane," reflected Coppola in Hearts of Darkness, the acclaimed documentary about the film.

How Apocalypse Now inspired Filipino surfers

When a scene from Apocalypse Now was shot on an obscure beach in the Philippines in the late 70s, little did the film-makers know they were giving birth to the country's surfing culture

"Charlie don't surf," says the reckless and irrepressible Colonel Kilgore, in one of the most memorable lines of the Vietnam War film Apocalypse Now.

Charlie is the American soldiers' derogatory nickname for their enemy, the Vietcong, and the surf-mad colonel is trying to persuade his troops to ride the waves, despite the bombs falling all around them.

Apocalypse Now, released in 1979, depicts the madness and mayhem of conflict, and is widely regarded as one of the most powerful war films ever made.

But it also has another legacy - something that the director, Francis Ford Coppola, could not possibly have intended.

Apocalypse Now was not actually filmed in Vietnam, but in the little fishing town of Baler in the northern Philippines.

As the cameras rolled, local Filipinos like Edwin Nomoro watched from the sidelines.

Nomoro was 10 at the time, and he came down to the beach every day to see it transformed into a battle scene, complete with an entirely fake Vietnamese village and helicopters swooping overhead.

But what excited him most was the sight of the actors surfing - something he'd never seen before.

Watch some video of "Apocalypse Now" movie here..

"When the filming finished, some of the crew left their surfboards behind, and my friend and I picked up the boards and taught ourselves how to surf," he says. "We've been surfing ever since."

At first, Nomoro and his friends found it difficult because there was no-one around to teach them.

Edwin Nomoro saw the film being made: "We've been surfing ever since"

"But we studied it, and learned, and now - no-one can explain what it feels like. Only a surfer knows the feeling," he says, smiling.

Once they got the hang of it, the boys started teaching others, and as word spread, tourists began coming to the little town to learn to ride the waves at Charlie's Point, as it became known.

Nomoro was able to turn his passion into a way of making a living, and more than 30 years on, he still earns money from the industry he helped to create.

"I have several rooms to rent. I also have some surfboards for hire," he says. "It's really improved my life. It helps me feed my family."

Baler is now very different from the sleepy fishing town where Martin Sheen, Robert Duvall and Marlon Brando stayed decades ago.

Several big hotels line the seafront, and more are being constructed. According to the local tourism office, at least 50,000 people came here in 2012.

Most visitors are Filipinos - Manila residents who just want a weekend of surfing - but an increasing number are foreigners.

One of the earliest arrivals was Donny Cope, who turned up in Baler in 1997 with "a surfboard, a backpack and a sense of adventure".

He has stayed at the beach on and off ever since, and now runs a small guesthouse.

"Last year we had surfers from the Czech Republic, Switzerland and a bunch from France," he says.

Baler's success as a surfing centre has rippled out to other parts of the Philippines, such as Surigao, La Union and Pagudpud.

"Baler is the birthplace of Philippine surfing," says Mac Ritual, a local tour guide.

"Other places saw a lot of good things here in Baler, and they also wanted to be popular because of surfing."

Ritual often takes his tour groups to see the main sites featured in Apocalypse Now.

The most famous is a headland where a major attack on the Vietcong was staged. It was nicknamed Charlie's Point in the film, and now even local Filipinos use this name.

Going there now, it's quite difficult to recognise anything from the film.

The fake Vietnamese village was blown up at the time, and the trees which were burnt down as part of a simulated napalm attack have all regrown.

But there's no chance of the beach nearby going back to the way it once was.

All the way along it, people are surfing - beginners screaming excitedly as the waves crash over them, and seasoned professionals perfecting their technique on the breakers.

This town has come a long way since the days of Apocalypse Now.

Perhaps the best way to sum up its changing fortunes is a little shop on the seafront.

Its name? Charlie Does.

BBC news

Best Investments 2013: Buy the Philippines Top-Performing Emerging Market of Q1

While the Standard & Poor's 500 Index 10% first-quarter gain was great, it wasn't the world's best.

One of the standout performances in 2013's first quarter was in a market that's off many investors' radar screens: the Philippines.

The Philippine stock market, valued at about $236 billion, rose by 17.8% in the first quarter.

Money Morning's Global Investing Strategist Martin Hutchinson told us to invest in the Philippines back in November. Hutchinson said the BRICs - Brazil, Russia, India and China - are no longer the best investments for overseas growth. Instead, it's time to focus on the true rising stars in the emerging world, like the Philippines.

As Hutchinson says, "With the right emerging markets, real growth is easier than you think."

Here's why the Philippines is expected to continue this growth in Q2.

The Best Emerging Market of Q1

The Philippines has been on the rise ever since the election of Benigno Aquino as President in 2010. Aquino's policies - to boost spending while cutting the fiscal deficit and attacking corruption - have led to a boom in both consumption and investment in the Philippines.

Last year alone, the Philippine economy grew at a robust 6.6%, up from just 3.9% in 2011. Among its Asian peers, this puts it behind only China and Thailand.

The World Bank forecasts the Philippine economy to stay strong. It predicts growth of 6.2% this year and 6.4% in 2014.

In March, the country won its first ever investment grade rating from Fitch. The ratings agency raised the rating on Philippine government debt from BB+ to BBB-. It cited the country's resilient growth, strong fiscal management by the government ("governance reforms") and solid policies by its central bank to control inflation.

And according to the Financial Times, Fitch also said that the country's external balance sheet was similar to countries with an A rating rather than those with BB or BBB ratings. No surprise then that the Philippine peso is Asia's best performing currency over the past year, rising 5% versus the U.S. dollar.

The Philippines may receive another ratings upgrade sometime in the first half of this year from Standard & Poor's. In December, S&P raised its outlook of Philippine government debt from stable to positive. It cited the stability of the Aquino administration and the country's economic growth.

Currently, S&P has the country rated one notch below investment grade.

When the upgrade happens, it will allow fund managers that can only buy investment grade bonds to buy Philippine government debt. In anticipation of this event, traders have already pushed the country's benchmark 10-year government bond yield down from 4.7% last October to 3.5% now.

Best Investments to Play Philippine Growth

Asian fund managers remain positive on the market. The head of equity capital markets at Religare Capital Markets, John Sturmey, told Bloomberg News, "We are very bullish on the Philippines for this year and the following years."

Sturmey forecasts gains of 20%-30% for 2013.

Paul Joseph Garcia, fund manager at BPI Asset Management - the Philippines second-biggest fund manager - is also bullish. He sees the economy expanding at near a 7% rate in 2013.

Garcia also believes the index may gain 29% this year to the 7,500 level. If so, the value of the stock market, for the first time ever, will exceed the size of the economy.

U.S. investors can easily track the performance of the Philippine stock market through an exchange-traded fund, the iShares MSCI Philippines Investable Market Index ETF (NYSEArca: EPHE). It's up about 18% so far this year.

One cautionary note: it is an expensive market, trading at about 18 times projected 12-month earnings. But the profit potential of EPHE is huge.

In his 2013 Emerging Markets Forecast, Martin Hutchinson delivered two other economies he ranks among the best investments to play emerging market growth. You can get those economies' names here. Forget About the BRICs Buy These Rising Stars Instead

Money Morning

The Philippines as a BRIC Economies Successor

Recently, the BRICS nations met in South Africa. Due to severe debt crises in the advanced nations, the growth prospects in these economies are no longer immune to the turmoil in the West.

Among the emerging economies, the Philippines is best-placed for an upgrade. It is favorably positioned to sustain growth in an exceptionally grim international landscape. It could even become a BRIC nation – with continued reforms.

In the sweet spot    

During the past decade, I have used much time exploring and consulting on the transformation of the major advanced and large emerging economies worldwide. What most nations find particularly intriguing are the growth lessons of the BRICs.

When Goldman Sachs identified the emerging group of potential successors to the BRICs a few years ago, the Philippines also made it into the list, in the footprints of two other major Southeast Asian nations. However, Indonesia and Vietnam have attracted much more FDI, so far.

In the aftermath of the Ramos era, the role of the Philippines as a BRIC successor was based mainly on its economic potential rather than a sustained growth record. In 2002, the Philippines gross domestic product still amounted to $81 billion, in current prices. Today, it has tripled to $241 billion.

In the aftermath of the global crisis, the Philippines is one of the few nations in which forecasts are revised up by financial analysts. In January, it reported 6.8 percent year-to-year growth, which made it the growth leader in Southeast Asia.

Almost half of the recent growth can be attributed to private consumption, which has been coupled by investment, especially in construction. Due to the impending mid-term elections in May, government spending will accelerate through the spring.

The acceleration of domestic demand since the first quarter of 2012 reflects the country's solid macroeconomic fundamentals, stronger government finances, and confidence in the Aquino government's commitment to reform.

Along with current account surpluses and foreign exchange reserves, the growth record has given rise to a more diversified export basket, while shielding the economy from very challenging international headwinds.

Complacency is not an option

The beauty of the BRIC projections is that they allow policy architects to reflect on (very) long time perspectives. The trap of the same projections is that, when they create a sense of inevitability, they can lull even the most promising growth stories into complacency.

In the Philippines, delivering the growth promise is predicated on accelerated structural progress.

According to various competitiveness indicators, the country has made dramatic strides in improving competitiveness, though often from a very low base. The perception is that corruption and red tape are finally addressed decisively. With the strong macroeconomic performance, the financial sector has become supportive of business activity.

Despite these positive trends, weaknesses remain to be addressed, including the poor infrastructure, various market inefficiencies and labor market rigidities.

As the Aquino administration knows only too well, the economy needs to shift from consumption towards investment, both public and private. Sectorally, this requires rising productivity in agriculture, less dependence on low-wage and low-skill services and more on labor-intensive manufacturing and high value services.

In BRIC economies, such changes have typically preceded periods of sustained growth. However, in order to raise the incentives for job creation and entrepreneurship, they require difficult policy reforms in agriculture, manufacturing, business and labor regulations, and social protection.

In turn, these reforms make possible greater public investment in health, education, and infrastructure.

BRIC future requires more inclusive growth              

In the absence of adverse developments, the Philippines is at the verge of receiving an investment-grade rating, by the major rating agencies.

Nonetheless, significant challenges of poverty remain. Growth is not yet inclusive.

Except for Brazil, inequities have typically increased in all emerging economies during their high-growth phases, while job-creation has been strong and unemployment low. In the Philippines, the story is different.

Even in 2011-2012, unemployment rate stayed at 7%, while underemployment rate rose to 22.7% since the number of full-time jobs declined by half a million in the same period.

In the next half a decade, GDP growth rate in the Philippines could climb close to that of China. But in order to be sustained, this growth must become more inclusive.

In the Philippines, the BRIC future has potential for a large consumer economy, with some 150-170 million people by 2050. That objective is predicated on huge expansion of consumption – but it is only viable through more inclusive growth.

Due to the historical legacies of the Philippine political and economic institutions, there remain strong vested interests in the current status quo. That, in turn, makes vital reforms challenging to implement.

The Aquino administration has proven able and willing to make difficult decisions. In all BRIC nations, sustained growth has been neither inevitable nor automatic. It does not just happen. It must be made to happen. And sometimes that requires painful decisions in the short-term because they make possible sustained growth in the long-term.

An abbreviated version was published by The Philippine Daily Inquirer on April 1, 2013

Economonitor 

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