Philippines

GOVERNMENT :: PHILIPPINES
Country name:
 conventional long form:
Republic of the Philippines
 conventional short form:
Philippines
 local long form:
Republika ng Pilipinas
 local short form:
Pilipinas
 Government type:
republic
 Capital:
name:: Manila
 Area: :300,000 sq km (115,831 sq miles)
 Independence:
12 June 1898 (independence proclaimed from Spain); 4 July 1946 (from
the US)
 National holiday:
Independence Day, 12 June (1898); note - 12 June 1898 was date of
declaration of independence from Spain; 4 July 1946 was date of
independence from US
 Constitution:
2 February 1987, effective 11 February 1987
 Legal system:
based on Spanish and Anglo-American law; accepts compulsory ICJ
jurisdiction with reservations
 Suffrage:
18 years of age; universal
 Main exports:: Electrical machinery, clothing, food and live animals,
chemicals, timber products .
FLAG DESCRIPTION:
 two equal horizontal bands of blue (top)
and red; a white equilateral triangle is
based on the hoist side; the center of the
triangle displays a yellow sun with eight
primary rays; each corner of the triangle
contains a small, yellow, five-pointed
star; blue stands for peace and justice,
red symbolizes courage, the white equal-
sided triangle represents equality; the
rays recall the first eight provinces that
sought independence from Spain, while
the stars represent the three major
geographical divisions of the country:
Luzon, Visayas, and Mindanao; the
design of the flag dates to 1897
 note: in wartime the flag is flown upside
down with the red band at the top
POLITICAL ENVIRONMENT
 Political Structure
Presidential-Congressional
 President
Benigno Simeon "Noynoy" Aquino III
 Vice President
Jejomar "Jojo" Cabauatan Binay
 Legislative Body
Lower House: House of
Representatives
Upper House: Senate
 Major Parties
People’s Party Coalition.
Includes National Union of Christian Democrats (Lakas)
 Coalition of United Filipinos.
Includes the Struggle of Filipino Democrats (LPD) party.
EXECUTIVE BRANCH:
 chief of state: President Vice President
(note - president is both chief of state and head of
government)
 head of government: President
 cabinet: Cabinet appointed by the president with
consent of Commission of Appointments
 elections: president and vice president elected on
separate tickets by popular vote for a single six-year
term.
LEGISLATIVE BODY

LOWER HOUSE:

 House of Representatives
 Kapulungan Ng Nga Kinatawan
 the House has 287 seats including 230 members in one tier
representing districts.
 57 sectoral party-list members in a second tier representing
special minorities.
 A party represented in one tier may not hold seats in the other tier.
 All House members are elected by popular vote to serve three-
year terms.
UPPER HOUSE:
 bicameral Congress or Kongreso
 consists of the Senate or Senado
 24 seats - one-half elected every three years.
 members elected at large by popular vote to
serve six-year terms.
JUDICIAL BRANCH
 Supreme Court
(15 justices are appointed by the president on the
recommendation of the Judicial and Bar Council and serve
until 70 years of age.)
 Supreme Court Chief Justice: Reynato Puno
 Court of Appeals
 Sandigan-bayan
(special court for hearing corruption cases of government
officials)
 Court of Tax Appeals
POLITICAL RISK:
 Philippines restricts foreign investment in a number of
sectors.
 Monopolies are not allowed.
 Screening of foreign investment & registered with the
government.
 Media industry foreign equity is not allowed.
 Telecommunication, Real estate/Land, Transportation
industry 40% foreign equity is allowed.
 Mining is restricted for foreign investment due to country
risk.
 Infrastructure – follows some provisions.
 Political stability & Absence of violence/Terrorism: -1.41
in world bank’s Governance indicators (2009).
 Ranked 134 worldwide corruption perception ranking of
countries (2010) .
 According to global Transparency international Global
Corruption Barometer
Public official/civil servants is highly effected (35%)
media is least affected (1%)
political parties (28%)
Business/private sector (3%)
SOLUTION:

Total Risk Assessment Methodology (TRAM)

 Identifies risks

 Puts risks in context

 Looks at impact

 Looks at likelihood

 Looks at controls

 Arrives at recommendations
TOTAL RISK ASSESSMENT METHODOLOGY (TRAM)
Agree
Agree &
& communicate
communicate objectives
objectives

Establish
Establish the
the risk
risk landscape
landscape

Identify
Identify all
all appropriate
appropriate risks
risks

Evaluate
Evaluate the
the impact
impact and
and likelihood
likelihood

Assess
Assess the
the key
key risks
risks &
& triggers
triggers

Assess
Assess risk
risk controls
controls

Manage
Manage and
and monitor
monitor the
the risks
risks
 Company can go for joint venture.
 build-transfer-operate (BTO): if there is a restriction on

ownership of the facility – for instance if it is still owned by the

state but the private sector operates and maintains the facility.
 Over estimate government action and over reliance on political

risk insurance, which:

–Provides cover for highly unlikely action.
(e.g. expropriation)
–Excludes cover for possible actions.
(e.g. war with nemesis)
 Under estimate other stakeholders, institutional or cultural norms.
 Poorly understood political risks.
PRIVATIZATION WORK IN PHILIPPINES
 Power sector
 Completed operational projects and those in the pipeline in the power sector
amount to about $11 billion.
 Transport sector
 About 52 projects in transport total about $6.9 billion. The Government is
negotiating two rail projects and two toll roads. Unlike the case of EDSA LRT
Line 3,the Government will take the market risk on subsequent transport
projects.
 Water and waste sectors
 This is a remarkable sector of infrastructure development. Two concessions for
the Metropolitan Water Sewerage contract were awarded in 1997 to two
consortia headed by two local companies. The Government is at the negotiation
stage for a $400 million bulk water supply in Cebu, central Philippines.
Thank You

From: Amar