WHAT’S INSIDE?

CBA opens to 2new competitions

Pinoy Cinema Rises 3

Increase in online 3information

UP Charter of 2008 8

Death of Newspapers 8

JUST WHEN WE THOUGHT Bear Stearns was the last. Recent Episode. The global financial industry,

shocked by the $2/share sale of global investment bank Bear Stearns to JPMorgan Chase March of this year, was again taken aback middle of September with the announced bankruptcy of the 158-year old giant investment bank Lehman Brothers. With the continuous default among the subprime borrowers of the bank, Lehman Brothers’ stock prices continued to plummet caused by huge write-down on the troubled mortgage portfolio of the bank. In order to restore liquidity and replenish the balance sheet, talks with US Federal Reserve and the US Bureau of Treasury were set in order to seek for an institution that will purchase a stake in Lehman Brothers. Unfortunately, all of the three financial institutions—Korean Development Bank, Barclays, and Bank of America—pulled-out from the talks which left Lehman Brothers resorting to filing for protection under Chapter 11 of the US Bankruptcy Code for the bank’s reorganization.

Aside from Lehman Brothers, several financial institutions also suffered excessive write-down’s. Merrill Lynch, a huge rival of Lehman Brothers, also experienced a fall in its stock prices and write-down’s and credit-related losses amounting to $52 billion. Day before its rival filed for bankruptcy, Merrill Lynch agreed to a sale agreement with Bank of America for a purchase price of $50 billion.

American International Group (AIG), the world’s largest insurer also found itself in the financial quagmire caused by its $441 B total derivatives exposure in credit default swaps, a form of insurance against the risks of bond default. It has sold 79.9% of its equity to the US Federal reserve and sustained credit rating downgrades from Moody’s and Standard and Poor’s. It has been

Financial Crisis:A Trickle-down Effect of the Subprime Mortgage

selling part of its business in order to raise enough cash including Philippine American Life & Insurance Co., its Philippine subsidiary.

Most recent, however, was the $326B bailout of the US government given to Citigroup Inc. The bank has lost $160B of market capitalization for the past year because of the continuous drop in the stock price of the company reaching a record 16-year low. The bailout amounts to $20B in capital infusion and $306B worth of government guarantees.

This grim scenario leaves us with Goldman Sachs and Morgan Stanley as the two remaining major Wall Street investment banks. However, in order to have greater access to central bank lending, both firms applied for commercial bank status. This action was complemented by additional equity investments (Goldman Sachs got an equity investment from Warren Buffet’s holding company while Morgan Stanley sold 20% of its equity to Japanese Mitsubishi UFJ Financial Group.) because of stricter capital requirements for commercial banks. Investment banks are subject to lenient regulations by the US Securities and Exchange Commission and have no capital requirements. Commercial banks, on the other hand, are subject to stricter regulations and are under the authority of a country’s central bank.

Aside from insurance firms and investment banks, several lending institutions and government sponsored enterprises (GSE’s) also recently became prey to the subprime crisis.

• Washington Mutual, a large loans and savings bank in the US, had a bank failure because of real estate losses. The bank assets were sold by the US regulators to JP Morgan Chase. This is considered the largest bankruptcy in US history.

• Wachovia, the sixth largest lending institution in the US, sold its banking operations to Citigroup.

• The Federal National Mortgage Association (FNMA) or Fannie Mae and Federal Home Loan Mortgage Corporation (FHLMC) or Freddie Mac, guarantors of the $5 trillion home loans in the US, was in a danger of collapse due to housing sector troubles and a lowering stock price resulting to government stepping in through nationalizing them and giving easy access to Federal Reserve loans.

• Financial institutions in other arts of the globe such as Bradford and Bingley of the UK and Fortis of Belgium were given state rescues.

• Iceland’s financial system was in a deep problem as toxic assets of the country’s leading banks are even larger than the gross domestic product of the country. Contingency measures coming from other European countries were taken in order to restore the financial situation in Ireland.

All these events in the US brought about plummeting stock prices and indexes across the globe. European and Asian stock markets are down because of the fear of a further slip fueled by the belief that we have yet to see the worst in this latest episode of the financial crisis. Further liquidity problems arise as investors want to liquidate their capital investments resulting to a panic selling of stocks which further causes a decrease in the stock prices. Institutions like International Monetary Fund have been seeing a deep recession for the world economy because of this financial meltdown. For example, IMF sees a slowing down of GDP growth for different countries with the Philippines having a 3.5% (2.7% according to a November release of Citigroup) growth for 2009. This is lower than the

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IN THIS AGE, with everything just point and click, knowledge is now easily distributed to anyone who wants to get it. It started from the craze of search

engines such as Yahoo! and Google luring internet civilians about the ease of searching anything and generating results in 3 seconds.

The Rise of Wikipedia

The birth of Wikipedia revolutionized knowledge distribution. Wikipedia is information democracy. Everything is input by people who have knowledge about a specific topic and are willing to share them to other people. It’s the easiest access to most kinds of information because not only are the topics in their appropriate language, each topic contains an outline at the start, saving the reader the tedious job of having to look through the whole article for the information he needs. With wikis being contributed by just about anyone, the knowledge in Wikipedia never stops and information can be edited real-time so the readers are assured that the articles are always updated.

With the ease of this editing tool, however, comes the problem of the accuracy of the information being put up. There is no accountability because anyone can just write anything they want to and there is no one to check the truth of this information. Not only are there mistakes in facts but there are issues on how some of the articles have their biases and are not providing objective information. There is also no guarantee on the professionalism of the contributors. However,

LAST YEAR was definitely not one of the college’s better days. The UP team for the Intercollegiate

Finance Competition (ICFC) by the Financial Executives Institute of the Philippines (FINEX) finished second to Ateneo De Manila University (ADMU) after ending first for five times compared to the latter’s twice. Subsequently, the UP team for the Integrated Marketing Communication (IMC) competition by the Philippine Association of National Advertisers Foundation (PANAF) got eliminated already in the first screening of the strategies. To add more to this, the UP team who participated in the Nationwide search for the Most Outstanding Accounting students by the Association of CPAs in Commerce and Industry (ACPACI) got disqualified for allegedly violating a rule in the said competition. These consecutive incidents have never and will never be blamed on the students who willingly and passionately represented the college.

As for FINEX and PANA, there was really nothing the administration can do. Nonetheless, the case for the ACPACI anomaly still stood. From Guilder’s last issue, the latest act published was when the administration wrote a letter of protest to and met with PICPA to which the decision was to stick with the judges’ final decision. Still, CBA continued to fight for the college and for its students through requesting the Diliman Legal Office to write a formal legal letter addressed to the organizers to reconsider their decision to disqualify our team. The organizers no longer responded to the letter. After this, The College then inquired with the Diliman Legal Office of the next steps that should be taken. The Diliman Legal Office provided the college with their legal opinion on the merits of pursuing the case. It is their opinion that the college should not pursue the case citing similar cases before where the Supreme Court ruled in favor of the Board of Judges (one similar case was a case related to a beauty contest). According to them, no matter what the competence of the judges is, their decision is still final. It is in this light the college thought of better alternatives – (1) improving competence on those existing competitions (2) opening the college to other untapped but prestigious tilts.

Reviving the Better Days

As obviously, nothing can change what has happened last year, it may have been the administration’s goal to act on it pro-actively. For one, the pool (BA 146 class) where the FINEX team is being selected has been the basis for all possible competitions that the Department of Accounting and Finance (DAF) will choose to

Reviving the Better Days:CBA’s openness to new competitions

participate in. The FINEX team was chosen a bit earlier (December instead of April). Even for PANA and Stratmark selections, an invitational subject, BA 198, was opened for audition to aspiring BA and BAA students who are good in Marketing. At the end of the semester-long subject, teams were assessed according to growth in their final presentation and PANA and Stratmark teams were released after Summer from the class. With BA 146, however, the rest that were not chosen in the FINEX competition, were given Business Plan making crash courses and was encouraged to join the Lee Kwan Yew Business plan competition. Those who passed were also prompted to join another competition, the Junior Chamber International (JCI) Best Business Plan Competition and here the better days of the CBA are again being revived.

The college’s very own BS BAA students, Katrina Mae Magallanes and Aileen Meriel Balderama, along with their BS ECE teammate Rosanno JC De Dios represented the university in the JCI Best Business Plan Competition and bagged the first prize. Their company, IEM Solutions, Inc. is engaged in the production and distribution of intelligent environment monitoring system in aid of better productivity in the agricultural sector. This win may have started CBA’s openness in joining new and yet prestigious competitions. Maybe, the good that the incidents last year brought was that CBA became receptive to more options and not only limited to the ones imposed by tradition. Aside from introducing the college, and the university, to other playing grounds, more and more of its students, are also given the chance to show their potential and to practice for the real world. Indeed, if not for the PANA, FINEX, and especially, ACPACI incidents, the college would still be entrapped by tradition.

The New and the Old

Especially with ACPACI leaving a big slot for new competitions, the college has included several students to represent it in carefully selected tilts. Professor Daniel Vincent Borja, the official coach of the FINEX team, told Guilder that as much as the college would want to support all competitions, budget constraints limit this that is why it chooses only the best for its student-representatives. It chooses according to three criteria: (1) prestige of the organizers, (2) integrity of the competition, and (3) scope (preferably, international). With these

criteria in mind, several competitions were opened to the CBA community.

First was the aforementioned JCI Best Business Plan Competition where Katrina Mae Magallanes and Aileen Meriel Balderama bagged the first prize. Finals is coming this October for another new competition, the Investment Research Challenge of the CFA Institute. This is a competition where each team will act as independent financial analysts who will value a certain company, which in this year’s case is the Manila Water Company Inc. (MWCI), and from valuation of which shall get the stock price of that company and recommend if investors should buy of sell that stock. Our university will be represented in this competition by 5 BS BAA students, namely, Oliver Allan Co, Nikki Isabel Laynes, Ralph Joseph Pantua, Mark Rome Race, and, John Edward Labay.

Aside from these competitions, the college, especially its dedicated professors, Dani Rose Salazar, Gavin Lee, and Daniel Borja, have also been helping other competitions even if the teams run without the college’s funding. One of those is our university’s representation in the ING Funds Tournament by a team of three BS BAA students, Michael John Patag, Jennifer Carla Catahan, and Iris Gem Li. They have been receiving constant investment advices from the aforementioned professors. Moreover, these professors also support the UP Junior Philippine Institute of Accountants’ (UP JPIA) NCR Cup representatives.

Of course, even after all these endeavors, the college does not take for granted traditional competitions. The FINEX team is composed by 5 BS BAA students, namely, Maria Theresa Pamintuan, Brian Baes, Joan Carol Isip, Genesis Santiago, and Rustan Paulo Baltazar. They will be competing for the eliminations in September 19. The StratMark team, on the other hand, is composed of 4 BS BA students: Maria Cristina Saniel, Don Ingal, Jay-ar Natal, and Miguel Tirona, 4 BS BAA students: Gabrielle Faye Raborar, Maria Kathrine Labrador, Rowene Sarmiento, and Kathleen Mae Giron, and Alternates: Jan Ashley Rosario and Juancho Barretto. Their case is to reinvent the Araneta Center so as to gain more market share. The PANA Team is composed of Marlowe Javier, Pia De Jesus, Petrus Carbonnel, Joseph Gutierrez, and Raymund Li. Alternates are: Junjun Guevara and Farrah Rodriguez. Their case is to create an Integrated Marketing Communications campaign on Road Safety. <by Kathleen Mae Giron>

Increasing Knowledge on Increasing Knowledgethroughout the years, certain organizations have taken it upon themselves to review the accuracy of the articles and though there are some glaring discrepancies, most of the tests have approved of the website.

Just recently, the past editor of Wikipedia started his own website Citizendum which is basically like Wikipedia but articles are submitted only by those who are considered experts and learned in their particular fields. This, however, greatly contrasts the beauty of Wikipedia which allows those who have special knowledge about the topic, expert or not, to write information they know about it. And because of this, the number of articles available for the users is significantly smaller.

Threat from Google

Google now comes in to retake its claim as the fastest and widest search engine to have been in the web. And as a response to the idea of an encyclopedia by everyone for everyone, Google is now developing its Knowledge Project. It is basically like a mini-Google wherein users enter keywords or “knols” which is the basic unit of knowledge. Once they enter the keyword, they will see a variety of articles, similar to academic journals, written by experts on that specific knol. Readers can rank these pages according to its usefulness and relevance and this will be Google’s basis of which article will come out first when the specific knol is searched. It’s basically like Google, but this time you’re assured of the reliability of the information you will see.

The Google Knowledge Project will turn out to be more reliable than Wikipedia but in exchange for this reliability, their articles will not be as many because on the limit on who can write the articles. Some pages of Google Knowledge Project will also have the Google ads, part of the proceeds going to the authors of the specific pages. Ease is not really an issue between Google Knowledge Project and Wikipedia since both of them contain overviews of the topics and have links to related articles as well. There will also be no editing of the articles submitted in Google’s Knowledge Project, just like Wikipedia, because they are counting on the expertise of the authors of the articles.

What’s even better is that this is not the only information project Google is undertaking. With other projects such as Google Books, which is similar to Project Gutenberg, books are being digitized and are tried to be distributed at the lowest cost possible. They’re also continuously updating Google Earth, the guide to the whole world – literally. It’s amazing how much information you can access right now, all in the comfort of your computer.

This wouldn’t be the last of the efforts to provide better and reliable information to people. With a world that never ceases to learn new things, we’ll surely find ourselves with even more information and we’ll continue to innovate to provide these information. Knowledge will no longer be the privilege of those who have the means, but will be a right of everyone.<Beiai Torres>

| JUNE-NOV 2008the GUILDER | JUNE-NOV 2008the GUILDER| JUNE-NOV 2008the GUILDERC

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FROM THE ASHES: The Rise of Pinoy Indie Digi Cinema

From my death I do rise. From the ashes I do thrive. From the deepest boils of hell. My own death I do dispell

– The Phoenix by “Daemon Knight”

THE PAINFUL DEATH of Philippine mainstream cinema is perhaps a myth to its producers, but a sad, imminent reality to its mourning audience – a slowly

burning funeral pyre. Do not despair, however, because all hope did not go up in smoke. From the ashes of the old, mediocre films rose a new tradition: the Pinoy Indie Digi Cinema.

This milestone, commonly referred to as indie, was defined by Professor Rolando B. Tolentino of the UP Film Institute as simply “the mode of production that deviates from mainstream studio funding. It also refers to the “spirit” or intent in filmmaking, focusing on less mainstream and even subaltern, postmodern multiple identities – films that mainstream cinema would never produce because of [their] propensity for art and commercial viability.” Indie films are characterized by its use of nonstudio stars, location settings, technicalities and more imaginative storytelling. Films of this kind give producers, writers, directors and actors freer reigns for their creativity.

Indie films speak of newer and multiple identities of individual groups instead of the masses (Ang Pagadadalaga ni Maximo Oliveros and Endo), and fittingly look more like television melodramas than as digital films. It borrows and innovates on modernist film traditions such as Italian neorealism (the slow-pace storytelling) and new waves from the French, Japanese, Korean and Thai. Unlike mainstream films, indie tackles individual and social realities, poverty, and with no promises for happy endings, just like reality. Second Golden Age of Philippine Cinema

The Indie movement is most often with its forefathers, Lino Brocka (Maynila sa Kuko ng Liwanag in 1975 and Orapronobis in 1989), Ishmael Bernal (City After Dark – Manila By Night, 1980) and Mike de Leon (Sister Stella L, 1984), who found neutral grounds where they could both focus on their art directed on the aesthetics of poverty and the demands of working for the studios, alongside the figures of independent cinema like Kidlat Tahimik and Nic de Ocampo.

Some modern, internationally acclaimed indie films are Ang Babae sa Breakwater and Magnifico, which advanced their own styles and at the same time were greatly influenced by Brocka and Bernal’s forms. The movement’s alternative precursors are filmmakers Lav Diaz and Khavn de la Cruz, who are both still most active in innovation today.The Decline of Mainstream Cinema

The year 1986 was both a great success in our country’s politics and the manifestation of a cancer out to destroy what was then defined as Filipino cinema. This was most evident in the year 2000, when the production of Filipino mainstream films fell almost 40% in three years. Mainstream enthusiasts blame this on a number of factors, namely piracy, incompetence, lack of government incentives and outright oppression “through inordinate taxes and arbitrary censorship laws”. On the other side are the film scholars, who argue that it was a clear case of business suicide. The decade before the EDSA Revolution was the nouvelle vague (new wave) of Philippine cinema when films were a pleasant mix of talented storytelling and technical know-how. The period after the peaceful revolution until today marked a kamikaze factory mode of film-after-film of the same old material.

Professor Edward Cabagnot, chairperson to the Jury Team of the ASEAN New Media Arts Exhibition commented on the lack of response: “No matter how much tits-n-ass or exploding cars or sampalans (melodramatic slap-fests) they injected, Pinoy audiences weren’t buying it.” Professor Tolentino summarized what the Pinoy audiences are going to buy, “We want our films about the absentee signifier that somehow organize our collective lives, and this is, of course, the actual poverty

experienced by the vast majority of Filipinos. How can it not be the dominant filmic representation of Philippine reality?”The Road to Cinemalaya

On November 2000, The First Filipino Full-Length Feature Indie Festival a four-day festival of six new works of up-and-coming independent film makers was held in Tanghalang Manuel Conde in CCP. The project was the result of a long process of failures and successes by a group of proponents from the Cultural Center of the Philippines who were fondly dubbed by then Dean Dea Doromal of the College of Arts and Sciences, UP Ilolilo as Missionaries of Cinema. These people aimed to promote film appreciation and spread the influence of independent and classic Filipino cinema to those without easy access to it.

Manuel Conde, for whom the theater was named after, was one of the most independent-minded directors during the First Golden Age of Philippine Cinema; his work “Genghis Khan was the first Filipino indie film to be acclaimed at an international film festival (the 1952 Venice Film Festival). The theater seemed to indeed be most appropriate for what was yet another milestone in the development of Indie Cinema. While mainstream was on the decline due to the shifting shapes of the masses, the audience asked for something new and fresh; digital films was dangerously beginning to seem like the perfect solution to the problem, and the technology was now within the reach of a new generation of artists, young creatives with a story to tell.Cinemalaya Now

Cinemalaya is the product of a joint effort from the government (CCP), the private sector (Econolink Investments, Inc.) and the academe (University of the Philippines Film Institute). The 4th Cinemalaya Independent Film Festival ran from July 11 to the 20th this year in Tanghalang Nicanor Abelardo, CCP, and moved to the Cine Adarna, University of the Philippines from July 28 to August 6th. It awarded grants to 10 full length and 10 short films – the first complete Cinemalaya since its pilot festival in 2005.

Most notable too is the seemingly reversing roles of independent and mainstream films, which was also noticed by the festival participants themselves. Aside from the growing following of indie cinema, the festival has also gone international, and at least nine foreign festival investors, both Asian and Western, have taken notable interest in the said event. Nestor Jardin, president of the CCP, confirmed that the Cinemalaya is “gradually being recognized as an important cinema event by programmers abroad.”

Certain realities, however, also had to be faced by the festival participants. Budget, especially, was a big concern all around, which at the same time challenged the people working behind the scenes to go further in terms of quality and the story itself in order to make their sacrifices worth it. Jardin has already mentioned plans for the next Cinemalaya to institute a training program on alternative financing sources for finalists, some of which are foreign institutions as well as through “inking deals for theatrical, TV, video or cable rights before finishing their movies”. One lucky entry this year was Boses which received additional support from Unicef, DSWD and the Council for the Welfare of Children for its usefulness as an advocacy material for Children Against Violence.The Pinoy Indie Cinema Today

In further support of the belief that “indie” is the new “mainstream”, a number of mainstream actors have been attracted by the subtle lights and challenging productions of independent films. Of this year’s batch of Cinemalaya finalists, only My Fake American Accent used a cast of stage actors, the rest featuring mainstream actors looking for alternative ways to express their arts.

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From the Ashes: The Rise of Philippone Cinema >> CONTINUED FROM PAGE 3

original government projection of 3.7%-4.7%.Source of the Problem. This recent financial crisis is not a new story.

Since 2007, the subprime mortgage crisis has always been in the headlines because of the big stories that it created inside the financial industry. So what really caused the subprime mortgage crisis? And why is it called such?

The subprime mortgage crisis is a financial crisis brought about by the unprecedented increase in the number of subprime borrowers in the market. Subprime borrowers are a group of borrowers that have a relatively higher default risk compared to a prime borrower as indicated by their lower level of income, poor or lack of credit history, and their employment status. Before the innovation called securitization, these subprime borrowers are not allowed to source loans from the banks. Why? Because banks want to protect their business as they would not want to take all the default risk of the subprime borrowers.

However, due to innovation in the financial markets, it is now possible for banks and other lending institutions to share or transfer borrowers’ default risk to different investors. This is made possible by securitization—a process where a lending institution pool and repackage a group of cash-flow producing financial assets (receivables) into securities that are then available for different investors. These financial instruments are usually called asset-backed securities, mortgage-backed securities (normally for home loans), or collateralized-debt obligations. Effectively, the banks can make money out of their receivables which are supposedly not yet collectible through the securitization process. This is normally done by the banks in order to search for capital especially when additional debt or equity financing would seem to be costly for the company.

With this financial innovation, banks became less strict when it comes to dealing with subprime borrowers. According to Demyanyk and Hemert (2008), subprime loans started to grow since 2001 until 2006. Other factors which caused this increase were lower interest rates. A big part of the loans sourced by the subprime borrowers were used to purchase houses as shown by the increase in the home ownerships in the US in this same period.

At the onset, it was less of a problem for the players in the market because of the appreciation in the house prices until 2005. This means that the asset they bought from the proceeds of the loan is worth more than the price they are paying for it. However, problems started to surface when the

housing boom halted and prices started to fall beginning 2006. Together with the decrease of the house prices is an increase in the interest rates because of the automatic interest rate adjustment feature built into the mortgages. This implied that subprime borrowers have to pay more for their loans as compared to the current value of the proceeds of their loans which are the houses. Refinancing of the debt was also impossible as interest rates are higher in the market.

For example, assume Mr. Smith borrowed $5,000,000, payable in 30 years with an interest rate of 10%, in order to construct his dream house. Problems start to surface when price of the houses fall and interest rate rises. So assume that by the 5th year the price of the house drops to $1,000,000 and interest rates rise up to 15%. This would lead to Mr. Smith paying more than what his house is worth. He would also find it hard to pay or refinance the debt because of the higher interest rates. Therefore, Mr. Smith is highly likely to default on his loan. This default will be replicated across a big number of subprime borrowers in the market causing huge write-down’s in the bank. This spiraled and caused the existing problem that we have now.

The first reported case of a significant write-down brought about the subprime crisis was HSBC’s $10.5 B write-down on February 2007. This was followed by many write-downs and merger deals in the financial industry. Investors started to pull-out their investments from these financial instruments and transferred their money to other forms of assets like commodities.

Courses of Action. Given the existing financial woes of the big investment firms and several

lending institutions, several contingency steps were taken by regulatory agencies, central banks, and local governments around the globe with the aim of saving the financial market and shoring up confidence of the investors in order to avoid panic and possible bank-runs.

In the US, the US Federal Reserve has initiated steps since the onset of the crisis to maintain liquidity in the market. Special loan facilities and lower discount rates were set in order to give banks an easy source of money once a need arises. Regulatory agencies also worked hand-in-hand with ailing firms in the search for possible capital infusion. They also administered ad-hoc initiatives in the bail-out of these said institutions.

However, with the huge scale of the recent problems, a $700 billion proposal for the bail-out was laid out to the US Congress. The proposal will give the US Secretary of Treasury Hank Paulson the unlimited power to purchase all “toxic

Pinoy Indie Cinema is, in a nutshell, an attempt to combine art, advocacy and commerce through different styles of storytelling. Because it is a tradition limited only by the mode of its production, artists who choose to partake of this tradition have greater autonomy to do whatever they wish, as long as they have stories to tell. The focus of Indie Cinema, unlike mainstream cinema, is on the portrayal of that story, instead of the profits that may be garnered, thus freeing it from the bonds of the formulaic viewer-traps that characterized the Pinoy Cinema of the ‘90s, giving it greater accessibility to the public through a broader selection of themes and stories. Gone are the days that films seek to please all, indie films target small, specific groups, and this grabs the attention of other sectors eager to learn about “the others”.

Still, certain concerns for indie cinema must not be overlooked. Primary of which is the hopes of indie siniestas to make the films available even to those who have no money to buy tickets. Many turn to Cinemalaya to make this possible, citing the festival’s original goal: “to showcase the talent of independent filmmakers and celebrate the challenges and joys of the process”.

Ashes to ashes. From the brash end of the first golden age and the second golden age of the Philippine Cinema, new traditions continue to rise out of the ashes to further addresses the wants and needs of the Filipino audience, just like the immortal traditions of our past that will always make our revivification possible. < Precious Rochelle O. Gan>

academic mission and orientation of the national university as well as protect it from undue influence and control of commercial interest.”

In line with the utilization of assets, Sec 23 (Safeguards on Assets Disposition) lists the conditions in case negotiations and transactions with properties are to be made. On the onset, the charter prohibits the sale of any existing real property of the university ‘provided, that the Board may alienate real property donated after the effectivity of this Act if the terms of the donation specifically allow it.’ Sec 23 also adds that transactions are subject to regular evaluation of the BOR. In case of failed biddings and negotiations, a fairness opinion report shall be secured from an independent third party body nominated by BAP, IHAP, and FINEX. In case of differences in the fairness opinion report, a written justification must be available to the whole UP community.

A system of check and balance should be well-appropriated with such flexible power as not to put the university’s system of academe into compromise. The students and other university constituents also play vital roles in keeping vigilance and awareness in the advancements taking place in the university. As Sec 1 (h) encourages, the University should ‘provide democratic governance… based on collegiality, representation, accountability, transparency and active participation of its constituents, and promote the holding of for a for students, faculty, research, extension and professional staff (REPS), staff, and alumni to discuss non-academic issues affecting the University.’

A 500-Million Peso Gift

In addition to its full financial autonomy, the UP System Information Office said that “the new charter also allows an additional 100 million pesos over and above its regular appropriation each year for the next 5 years.”

This 500-million peso grant is a centennial gift for the University as Pres. Arroyo puts it. This “is in addition to the P200 million we gave the PGH

Sources: Inquirer Money. Special Report: Legal woes set back BSP move vs. rural banks. By Daxim Lucas. August 24, 2008. || Understanding the Subprime Mortgage Crisis. Yuliya Demyanyk and Otto Van Hemert. August 19, 2008. || MSNBC

(Philippine General Hospital) in 2006 and 2007, and in addition to the P500 million for the science and technology complex in Diliman,” Mrs. Arroyo said.

This is expedient not just for those in the field of Medicine and Science but for the whole UP system as well. This is to consider that a hefty portion of the university’s budget goes to PGH. With the university’s facilities presently in grave need of renovation and advancement, it is agreeable to think that a considerable amount would be allotted for the improvisation of laboratories, libraries, and other facilities in the different institutions of the UP

The UP Charter of 2008: a more flexible autonomy >> CONTINUED FROM PAGE 8system.

In the Light of Change

As the University of the Philippines, now declared the National University, is continuing to extend the tradition of excellence it has established through the course of a century, amendments in legislation and execution are essential factors in paving its way to a more attainable vision of being at par with the internationally applauded universities. It all depends on how well we translate the words of the Charter into authentic deeds and legal action. <Diana Marie Peralta>

Financia l Cris is : A trickle-down effect of sub-prime mortgage

| JUNE-NOV 2008the GUILDER | JUNE-NOV 2008the GUILDER| JUNE-NOV 2008the GUILDER

YEAR 2008 WILL BE REMEMBERED in our history books as a trying time for the Philippines. Crisis after crisis has swept over the nation. One

of the more famous problems plaguing our country is the apparent shortage of rice, which has swept us from the start of the year up to now.

Ground Zero

Everyone is familiar with the rice shortage problem. Long lines of people fighting over two kilos of NFA Rice in designated distribution centers have been common occurrences on television. Commercial retailers in dry markets are complaining of decreasing sales due to increasing rice prices. Restaurants, the most prominent of which was McDonald’s, mused over offering half-rice meals. It is estimated that we will import 2.1 million metric tons of rice this year, more than the 1.2 million metric tons that we have imported on average during the past six years, according to Department of Agriculture (DA) estimates. It is ironic that we are importing from Thailand, Vietnam, and other Southeast Asian countries whose technology in rice cultivation was honed in Philippines-based International Rice Research Institute (IRRI).

According to former SBMA Chairman Felicito Payumo, the last time the Philippines was self-sufficient was in 1971 under the Masagana 99 program of then President Ferdinand Marcos – 37 years ago. What happened from that time to the present? How did we become the world’s largest importer? What remedies can we do to save ourselves from the seemingly bottomless pit?

Increasing Prices and Government

The IRRI posited that at the fundamental level, the sustained increases in rice prices over the past 7-8 years shows that we have been consuming more than we are producing. Some have attributed this to an increasing population rate, and consequently, and increase in the per capita consumption of rice. In his column at the Philippine Daily Inquirer, Payumo indicates that the per capita consumption of rice by each of the 87 million people of the Philippines has been increasing at a rate of 2.6 percent each year. The IRRI has estimated that to accommodate population increases, and increasing demands for rice, the world

must produce 50 million tons more than the current level that it produces.

Aside from increasing rice prices due to increased demand, another cause of the shortage is government policies. Economist Rolando Dy of the University of Asia and the Pacific blames “under-investment in agriculture and infrastructure, a poor record in eliminating poverty (and) poor infrastructure quality” as another root cause in the ongoing crisis. The World Bank estimates that in Asian countries, the percentage of agricultural GDP allotted to R & D totalled to only 0.4%, as opposed to 2.4% in developed nations.

Other factors that the IRRI also noted were extreme weather conditions, the lack of arable land for rice production, poor irrigation systems, and increasing oil prices that have not only increased inflationary pressures, but also increased import costs for import-dependent countries like the Philippines. Corruption in government was also cited as a cause, the most recent of which was the fertilizer funds scam involving former DA official Jocelyn “Joc-Joc” Bolante.

Finally, Shamika Sirmanne, an economist at the UN Economic and Social Commission, stated what arguably might be the most crucial reason for the crisis: skyrocketing oil prices. Fuel is needed for transportation of goods and for agricultural equipment. Also, petroleum is important for chemical products that farmers use, such as pesticides and fertilizers. As long as oil prices rise, commodities such as rice will also have increasing prices.

Solving the Crisis

Since oil prices cannot be controlled by the government, we must resort to policies that should increase agricultural productivity, while satisfying consumer demand. Currently, to solve the crisis, the national government has resorted to giving rice subsidies to the poor. It has also imported rice from neighboring Southeast Asian countries, and it has directed the NFA to distribute cheaper rice varieties to the general public. The country has also allocated approximately $1 billion for fertilizer subsidies, improvements in infrastructure, and the introduction of cheaper, high-yielding rice varieties.

However, as Pres. Arroyo herself admitted during the SONA, these solutions are temporary. In her recent SONA, the president stated that we need to pursue policies that would lead to food self-sufficiency. She did not state any specific policy, though, to combat the problem.

According to agricultural scientist Norman Borlaug, it is not enough that the Philipines supply its farmers with fertilizers and hybrid seeds to increase rice production. What we need, he said, is to improve our irrigation faclities. The government should rehabilitate the non-functioning systems, and add more irrigated areas. However, increasing commercialization of arable land by farmers who badly need money for their daily needs will further increase the problem.

Dy also noted that the government needs to provide adequate funding for agricultural R & D programs, and for improvements to infrastructure, such as rural farm-to-market roads. However, problems in the bureaucracy, for example, graft and corruption might make the solution untenable.

He notes, however, that the crisis might be a blessing in disguise because it might lead into investments that might lead to positive effects in the long run.

An Uncertain Future

The Philippines is still reeling from the effects of the current rice crisis. As economist Rolando Dy observed, the problem isn’t just the concern of the executive branch, but also of the legislative and judicial branches. The different branches must act together in order to solve the problem. However, with the current political system of the Philippines, one might lead to think that there will be no end to this problem. We must hope, though, that this problem will finally be solved. <Julio Miguel Galvez>

Sources: IRRI Rice Solutions: Why is it happening? || “The Future of Food: What Should we do in the Philippines,” by Felicito Payumo, June 29, 2008, Philippine Daily Inquirer || “Food crisis a wake-up call for Asian agriculture: World Bank,” The Economic Times, July 17, 2008 || “Philippine rice crisis due to bad policies,” Philippine Daily Inquirer, May 21,2008

Rice Crisis: Is There a Resolution?

assets” or mortgage-related assets of the firms like Lehman Brothers and Merrill Lynch. Initially rejected by the US Congress, a modified proposal was approved by the US Senate on October 2, 2008.

Outside the US, similar initiatives were taken by different agencies and governments. In order to increase confidence and eliminate worry among the European investors, the European Central Bank started to pump in billions of Euros available for short-term credit amounting to 100 Billion Euros in just two days. This is the same case in other countries including Belgium and Japan.The Philippine Implication.

With the recent happenings in the US, the Philippines will not be able to stand unscathed. A major indicator of the crisis’ effect in the Philippines is the apparent dip of the peso which is now at the P48-49/$1 level and a stumbling of the Philippine Stock Exchange Index with a 4.5% fall right after the negative news about Lehman Brothers. This is also the case in major bourses across the region with currencies and stock markets becoming in the

red during the days following the fall of the US firms.Panic also manifested among Filipino investors and bank depositors because

of the possibility of local banks being exposed to the fallen investment firm. The government was quick however in dissuading fear and panic in the country. According to Senate committee on banks, financial institutions, and currencies chair Sen. Edgardo Angara the total exposure of local banks in Lehman Brothers only amounts to $386 Million, a measly 0.3%-0.4% of the total assets of the local banks. The total amount of exposure is shared by several banks including Banco De Oro, with its P3.8 B exposure, and MetroBank with its $20.4 M exposure both in the collapsed Lehman Brothers.

Aside from the small exposure, the Philippine government assures the local public that the local financial system will remain resilient due to structural reforms adopted by the current administration. However, the government recognizes the slowdown in the Philippine economy as a result of the crisis. The slowdown in the economy could be brought about by several factors that can be traced to our current status relative to the US. One, liquidity concerns in the US will lead to investors pulling out their investments in countries like the Philippines. This would spell a smaller amount of foreign investment in the country which could further stunt the growth of our economy. Two, the US remains to be one of our major export partners and a slowdown in their economy could spell a slowdown in the growth of our export industry. This would lead to less demand for our products which would lead to a lower income for our local businesses. Not only does this involves manufactured products but also includes services that we offer including the booming Business Process Outsourcing industry in the country. We also have to consider that the economies of our other trading partners are also affected by the US which could further compound the decrease in the demand for our export products. Three, tourism revenue for the country will be affected as the Americans are still a major chunk of our foreign tourists’ inflow during the past year. Lastly, a slowdown in their economy might lead to lower levels of employment and would affect either their demand for Filipino workers or the amount of remittances being sent by OFW’s currently working in the US. Currently, OFW’s are being relieved from their work in different places including London, Taiwan, and Saudi Arabia.

As ordinary Filipinos, we may not be directly affected by the fall of these different financial institutions in the US and other parts of the world. However, we are not spared from the problem. We have to be aware of what is happening as this would impact our own lives. The financial world is starting to be dramatically reshaped and we can only sit and watch while history is being made. <BY JOHN EDWARD LABAY>

Financia l Cris is : A trickle-down effect of sub-prime mortgage

| JUNE-NOV 2008the GUILDER | JUNE-NOV 2008the GUILDER

I am riding in a jeepney on a long road lined with shady trees; on both sides are patches of vast greenery. As the cool breeze blows

my hair into dishevel, I can’t help but feel the surge of pride rumbling in my chest that urges me to shout out, “Sa wakas, Isko na ako!” If only my fellow passengers won’t mind. While far ahead are the outstretched arms of the oblation that seems to greet me back, “Welcome freshie!” No wonder, deep calleth unto deep.

Truly, passing the UPCAT is an authentic achievement. It is a reward at par with being a Valedictorian or Salutatorian – even greater. Even if you don’t get awards in your graduation, the UPCAT results can fill in the gap. Likewise, reaping medals in your graduation but failing the UPCAT is a lonesome tragedy for some.

Stepping on to UP is indeed a fairy tale come true for a dreamer like me. It’s like catching a colorful bubble in your grasp without popping it. I can even remember those Research off-campus days turned mini-field trips we had during High school. Our frequent library visits is usually in UP because it’s one of the nearest to my former school. My classmates and I used to exchange aspirations in a joking manner about strolling the same roads someday not as mere visitors but as real “Iskolars ng Bayan”. And voila! After everything has been said and done, we’re actually here - walking our dreams.

I am one of those few freshmen whose batch was chosen by either luck or fate to be dubbed as the “centennial freshmen.” To be called such, in a sense, implies being pampered. Yes, we were given special attention simply for the label of being the one hundredth batch. From the well-prepared and documented orientation program to freebies like free SIM cards, drinks, ice cream etc. name it - we’ve tasted it.

Surely, we, freshmen of this batch are actually

getting much of something, we were not even aware of when we took the UPCAT. That we are the centennial batch is something that does not make us any more than exceptional than the previous or upcoming batches. We were showered with much welcome that we can only thank all those who are behind it.

We entered UP on the year where you can feel the vibrancy of an extravagant celebration. But although, as a freshman, you are showcased with all the good impressions the university has to offer, there are still those issues whose advocates cannot be silenced. During the first day of classes we’ve already witnessed student activists to seize the last part of the orientation program with their cries for change. Maybe after all, it is our last lesson to learn for that day: that in UP, where liberality is a lifestyle, it is just a matter of getting your voice heard.

One of the heated issues among UP students right now is the tuition fee increase, which, according to our ates and kuya has increased by 300% - a huge percentage to consider. With the different levels of social status among the freshmen on whose batch the increase was implemented, the responses you would gather would most likely vary. Some, for example, would not care much as long as their parents are there to provide and they’re getting their desired allowance. Some would willingly join protests because they are concerned with the cost of living getting higher by the day.

Well, if you think things over, you’d really feel that students are now aversely affected by the rampant economic crisis. Even the jeepney fares have already increased during the opening months of classes. This is one thing that makes us walk our way almost everyday from Math to AS or back willingly though it’s like self-torture especially when the sun is up its zenith.

It’s a good thing to mention that we have free jeepney rides that cover the Ikot, Toki, and Philcoa routes every Tuesday. Again, it is a part of the centennial celebration of UP. And since, it is only for the centenary, it will only run until December of this year. But how much would the jeepney fares could have increased by then? Anyway, it still pays to be thankful about everything we receive.

Being a UP student of course, we were soon familiarized with the whole UP system of living, or rather, surviving. In our Geography class, we played a game one time wherein we were asked to name the different UP locations shown in the projected slides. Our team won second although we are a pure freshmen group. Thanks to the Administration, whose orientation program included CD’s which introduced us to the different colleges and their locations in UP.

The UP campus is a wide campus. In my mentioned geography class, we were tasked to report about the history and symbolism of different places in UP. As of now, to us freshmen, they are

death of newspapers >> CONTINUED FROM PAGE 8

Hello Yoopie!

“Stepping on to UP is indeed a fairy tale come true for a dreamer

like me. It’s like catching a colorful bubble in your grasp

without popping it.”merely symbols of past historic events. But I know, as we go further along on our own intimate journey within the grounds of UP, every place will have a cherished memory to reminisce, even after we step out the bounds of this institution.

Last but not the least, as a newly admitted ‘Iska,’ it is now a part of my system (digestive system for that matter) to taste the wide range of UP food. As far-stretched as your eyes can view UP, so is the choice of food. Almost in every street and corner stands a stall of affordable picks like fish balls and isaw. Yum! To admit, I’ve not yet tried everything the coops, cafes, or street food stands have in store - though it’s included in my prior agenda upon entering UP.

I have only been here in UP for a few months, and already I am high with the UP spirit. I can’t wait to see, hear and feel more of what it offers. For now, my last class has just been dismissed and I am leaving the campus grounds. Riding on a jeepney again, I whisper my good-bye to ‘Oble,’ and he in return, waves his two hands back to me.

Diane Maire Peralta is a BS BAA freshman at UP Diliman. She enjoys writing and having conversations with upperclassmen.

media to provide information varies to people with different resources & lifestyles. It is then that it can be concluded that the newspapers, TV, and the Internet are all complementary of each other.

It may also be argued that it is probably not the accessibility and the type of information needed that can explain the sudden decline in newspaper demand, and the corresponding increase in the TV and Internet demand here in the Philippines. The real cause may be the shift in the audience’s interest to more light news, rather than serious in-depth reporting. With the TV and Internet’s broad range of information, people may opt to choose those that they personally prefer which may or may not be important. We can define importance here if it can affect (strengthen or change) a person’s stand in the current events, which may require that person’s participation in the society to bring about the desired changes. The change in the people’s focus or points of interest to information that are more readily supplied by TV & Internet may be the real driver of the increasing viewership of these two media.

News can be mainly obtained in the form of printed output (newspapers), paperless (Internet), and audio-visual (TV); although the Internet could well serve both as paperless newspaper editions, and audio-visual through video clips. Online newspapers are still newspapers in substance. The analogy may be likened to e-books.

Contrasting the two main competitors of the newspapers, the TV and the Internet, one could

notice that there are several discrepancies in the arguments that may very well be left at the personal discretion of the reader. Radio is specially left out, as it can co-exist with newspapers without doing a substantial harm in its demand.

The death of newspapers is therefore, something that will not happen in the near future. The World Association of Newspapers stated there was an increase in the annual world-wide newspaper circulations of 2.57% in 2007. This amount is even higher than the increase in the world-wide population which is approximately 1.54% in mid-2007.

Though some family-owned newspapers already sold or closed their companies in favor of big media companies, there will still be some who will stand by time and insist on the existence of the newspapers. There will still be people who will prefer reading a real newspaper, turning the pages, and enjoying the smell of the newly-printed papers. <Nikki Laynes>

Sources: World Association of Newspapers, Göteborg, Sweden, 2 June 2008, World Press Trends: Newspapers Are A Growth Business, http://www.wan-press.org/general.css || Inquirer still No. 1 by bigger margin, says Nielsen survey, By Kate V. Pedroso, Philippine Daily Inquirer, First Posted 03:01:00 06/15/2008, http://newsinfo.inquirer.net/css/article.css || Inquirer still No. 1 in readership, By Kate V. Pedroso, Inquirer Research, Philippine Daily Inquirer, Posted date: May 30, 2008,http://www.google.com.ph/search hl=tl&q=readership+of+newspapers&meta=cr%3DcountryPH

| JUNE-NOV 2008the GUILDER | JUNE-NOV 2008the GUILDER| JUNE-NOV 2008the GUILDER

Having stayed in this University for more than three years, I can attest that the epicenter of UP life is not without excitement, realizations and of course, creative discourse. There are days when my life here revolved only around the college, but in most cases, UP has continually been a bombardment of everything—from university-wide issues like the TOFI up to the mundaneness of the simple isaw.

Tuition and Other Fees Increase (TOFI)

Ever since its implementation, there have been mixed reactions to the Tuition and Other Fees Increase, otherwise known as TOFI. Much has been said about it, and protests against it have continuously surfaced ever since its inception in the academic year 2007-2008. Many colleges, most notably the College of Social Sciences and Philosophy, see it as unfair treatment of students, especially to those who suffer by having to pay the full amount of the 300% increased tuition, but lack the resources to do so. Countless rallies have ensued because of the negative reactions and publicity regarding the TOFI.

From a senior student’s standpoint, however, the TOFI’s impact is less felt, as the author comes from a batch that, even up to now, still pays the old amount of 300 pesos per unit. With this, our batch cannot feel the full brunt of the TOFI’s effects, and can only assess it from an outsider’s point of view.

This impartiality helps us see the supposed logic behind the TOFI’s implementation. Most proponents of the TOFI come from the School of Economics and the College of Business Administration, and with these two institutions come their school of thought on why the price people pay for a UP education has to increase.

According to the professors who came up with the TOFI (most notably Dr. Emmanuel De Dios

of the School of Economics), with the current economic conditions, the TOFI is almost a necessity. Prices have risen to exorbitant

levels that without the increase, UP won’t be able to sustain itself. Moreover, even with

the increase in fees, UP teachers are earning so little for the amount of effort and skill required of them.

However, the issue comes back to the fact that the University of the Philippines is a public school, and by law, it should be funded by the government. Now, more than ever, being the newly-recognized National University in the country, the government should be more active in funding the university’s programs and endeavors. Unfortunately, that remains to be a reality, and so the university must act on its own for changes to happen.

The author sees the TOFI as the result of the UP administration “giving up” on government subsidy and taking matters into their own hands. Of course, one may see this article as biased, with the writer coming from the College of Business Administration. However, one cannot simply ignore the facts and the justifications behind the implementation of the TOFI. As a UP student, the author cannot help but feel sorry for the younger batches that are affected by the TOFI.

U.P. Food

A U.P. student’s life is often hectic, having to deal not only with academics but with extra-curricular activities like org work and athletics as well. It is no surprise that students here get hungry easily, which is why dozens of kiosks are scattered throughout the campus.

After having spent more than three years studying in the University, it is safe to say that as a senior student, the writer has tasted practically everything the campus has to offer. From the affordable meals like isaw, pancit canton, fishballs, and kwek-kwek, to the high-end ones in Chocolate Kiss and Cordillera Coffee, the University offers a wide range of gastronomic experiences that caters to the just-as-wide range of cultures that study there.

This setup allows the U.P. student to choose from different kinds of meals, and ensures that the student will never get bored of the food and will always have something new to try. Seeing people from neighboring colleges and universities within the U.P. grounds, usually at the nearby isawan stalls or

at Rodics, is truly astonishing. It is a testament to the fact that U.P. has now become well-known not only for its standard of excellence, but for its food as well.

U.P. Commute

Before the one-way traffic scheme for the academic oval was implemented during this school year, commuting via jeepney – be it within, to, or from U.P. – was very efficient. There were several jeepneys that traveled a ‘counter-clockwise’ path, like the IKOT, Philcoa and Pantranco Jeepneys, while two jeepney classes, the TOKI and Katipunan, traveled a ‘clockwise’ path. These jeepney classes functioned together to provide students a very accessible means of getting to the different buildings in the campus, as well as the nearby areas like Katipunan and Philcoa. Every building was most likely in one jeepney’s route, meaning that a student can get to wherever he or she wants just by riding the right jeepney.

The one-way traffic scheme was one of the biggest things students and jeepney drivers alike had to get accustomed to for this academic school year, mainly because students did not know the new routes the jeepneys had to take given the one-way path, while some jeepney types lost their competitive advantage because the drivers were forced to take paths similar to other jeepneys (the TOKI is the biggest change, as the once clockwise path it usually took is gone, leaving it to follow a somewhat similar path that IKOT and Katipunan jeepneys take. A major drawback with this traffic scheme is that it is significantly less-efficient compared to before.

The one-way traffic scheme was meant to encourage people to walk or ride bikes instead of riding jeepneys that emit harmful exhaust chemicals, but so far the change has been received by the U.P. population with mixed reactions. Some like the idea of a cleaner academic oval, while some have found commuting within the U.P. campus a time-consuming process. Also, jeepney drivers, as they vocally express during the rides, want the old traffic scheme’s reimplementation.

Like with all changes, however, it will take time for the people to fully adjust. Eventually, just like this year’s freshmen batch, which was not aware of the two-way academic oval, everyone will get used to the new traffic scheme.

Kyle Dael is the UP CBA Seniors’ Batch Representative. He is outspoken, creative and is always online during the dead hours of the night.

THE YEAR 2008 marks not only UP’s centennial year. Last July 5, 2008 Saturday, UAAP 71st Season

opened with the University of the Philippines as this year’s host. The opening ceremonies were held in Araneta Coliseum at around 1 o’clock in the afternoon. The show’s high-energy performances involved many dance organizations from UP, which revolved around the theme Filipino Leadership through Excellence in Sports. UP President Emerlinda Roman gave her opening remarks at the commencement of the ceremony.

The opening ceremonies also officially marked the start of the basketball games. This year, the Men’s Basketball Team is led by new coach, Aboy Castro. The UP Fighting Maroons have 3 wins-8 losses as of August, second round. This includes UP’s first ever match in the season, played against NU bulldogs, nailing a 14-point lead.

The new coaching system is definitely bearing fruit, with the UP team showing more competitive plays

U P F I G H T !and exciting games. Even though they lost in certain games, the team was not left behind the whole time. The players have matured and now show that they do have potential. Indeed, this season’s performance is a stark improvement from last year’s (0-14 record) but the team has a long way to go. A ‘final four’ slot may be against the odds, but UP must first focus on being a competitive team.

As a student-watcher commented, “Our boys need to develop confidence, morale, and a championship habit.” And that habit is a never-say-die spirit. The team must not settle and always set their hearts out that they will be able to redeem themselves. To not easily lose their grip. Their training now is more focused and intense; so the team may still be able to surprise in their remaining games. They’ve already shown that they can. All they have to do now is do it.<by Ching Lansang. Photos by Alric Mondragon>

“... {I} cannot help but feel sorry for the younger batches that are affected by the TOFI.

THOUGHTSin Random Motion

| JUNE-NOV 2008the GUILDER

AAFTER 1 YEARS OF WAIT Pres. Gloria Arroyo finally signed the Republic Act No. 9500 at the UP library Conference Hall in Lahug in

Cebu last April 29, 2008. This momentous renewal of policies declared UP as the National University with a more flexible autonomy of power and a whole new make-over for its managerial devise.

A New Structure of Power

Sec. 12 of the charter establishes the new stratum of governance with its enumeration of the composition of the “Board of Regents of the University of the Philippines System.”

One salient characteristic of this new charter is that it gives the Board of Regents full sovereignty in generating funds and incomes for the University. It also provides the BOR with the authority over the compensation of the UP President (stated chief executive office of the university) to its faculty and staff.

According to the charter as stated in Sec. 13 (k), the BOR can now design the compensation plan for the salaries and benefits of faculty and employees, ‘provided that [these] shall be equivalent to those being received by their counterparts in the private sector.’ Sen. Angara, who became the 14th UP president states, “At present a professor from, say, Ateneo receives up to three times more than what a UP professor does. But a UP professor enjoys

certain privileges that an Ateneo professor does not, and that is academic freedom, both personal and institutional, as well as security of tenure. My theory is that if a UP professor gets at least two-thirds of an Ateneo professor’s salary, then they are already at par.” He also adds that with an improved remuneration, the university can not only attract the best and the brightest but also keep them.

This also exempts UP employees from the Salary Standardization Law which in turn, takes out the 10% salary increase privilege from them. As of the moment, the university does not have immediate funds yet to augment the salaries of its faculty and employees but with this new charter at hand, better compensation can be constructed for these mentors of bright minds. This also, with the hope of preventing the exodus of its teaching staff to private institutions local and abroad.

Academic Progress vs. Commercialization

Furthermore the Section 24 of the RA declares the organization of an independent trust committee to be composed of the President of the University, as Chairperson, and one representative from the following: the Bankers Association of the Philippines (BAP), the Investment Houses Association of the Philippines (IHAP), the Trust Officers Association of the Philippines (TOAP) and the Financial Executive Institute of the Philippines (FINEX). These members are “entitled to a reasonable per diem” as the board

decides. They shall also recommend five banks that would take care of the funds of the University.

One of the primary concerns about these changes in the managerial devise is the possibility of commercialization with the academe as its forefront. Such concernis inevitable with the inclusion of the names of private entities in the charter.

These private institutions, given the flexibility, might play a major role in the outsourcing of funds in such a way that the university’s research projects and agenda would only be narrowed into the commercial arena driven only by the search for profit. Another concern is that an increase in the tuition fee may be implemented as the administration deems without prior consultation with the students as stated in Sec 13 (m). However, Dr. Emerlinda Roman counters these reactions with her statement: “Commercialization… happens when a learning institution merely becomes a diploma mill. It’s when a school merely accepts students and keeps them afloat, then increases tuition.” Putting to profitable use assets like idle lands and inventions arising from research are her plans in mind in line with the freedom of the UP administration with its sourcing of funds. Sec. 22 (f) further acknowledges this, “Any plan to generate revenues and other sources from land grants and other real properties entrusted to the national university shall be consistent with the

The UP CharTer of 2008:a More flexible aUTonoMy for fUnd GeneraTion

For centuries, newspapers have been used to spread news and information to the masses. Appearing around 59 B.C is the earliest recorded “newspaper” in Rome, while the printing press was invented in Germany during the 1400s. It was the best method of spreading information for the longest time until the radio came in the 1920s; then the newspaper had to reevaluate itself as the primary information provider. No sooner had newspapers adapted to radio when they were forced once again to adjust to a more powerful medium, the television. Even though newspaper circulation dropped drastically, radio & TV did not make the newspapers obsolete. Now with the internet as the newest and biggest threat because of its immediacy to vast information, will this finally kill the Newspaper?

There are varying views on this matter actually. Differences in opinions ensue especially between hard-core traditionalists and bloggers. Baby boomers are probably keener on reading and subscribing newspapers than their younger counterparts. Generation X & Y however, are more exposed to other types of media such as the radio, TV, and the Internet, to feed their information needs.

“According to the World Association of Newspapers, global newspaper sales were up +2.57 percent over the year, and had increased +9.39 percent over the past five years. Where the statistics showed that the world-wide newspaper circulation (both paid & free) is indeed increasing, the Philippines on the other hand showed a decline. This is actually consistent with the figures posted by the leading broadsheet in the Philippines, the Philippine Daily Inquirer (PDI) which was according to the Nielsen Media Research:

“Overall “Sunday readership” of newspapers (broadsheets and tabloids), however, went down, from 24 percent during the first quarter of 2006 to 19 percent during the same period this year (2007).

The Death of Newspapers

*The total is greater than 100% because some people read more than one newspaper. The number of readers is at leas thrice per copy of a newspaper due to sharing.

Another survey, the Synovate’s Nationwide Urban Media Atlas Survey 2007-2008 Wave 1, stated its findings as follows:

The 31% newspaper readership in the Philippines is way behind the television viewership (98%) and the internet access (36%); noting particularly that the Internet which is relatively new, has a double-digit annual growth rate of users.

Regular subscription or access to broadsheets is more common in the higher class than in the lower class. It may also be correlated with the level of education of the people. Regular reading is more encouraged in the higher level of society and those with higher level of education. Then again, with respect to generations, kids at present are less motivated to read books, much less newspapers. They would probably watch the TV and surf the Internet rather than read.

In the Philippines, there is a gradual shift in the main medium used by people to learn about the news. Some people say that they are busy in earning a living that reading newspapers are more of a luxury, both in the time & money spent. TV, radio, and the internet are replacing newspapers for their role in disseminating news. Some argue that these three media are not replacing newspapers, but are just supplementary. However, that kind of thinking is subject to another debate. The

CONTINUED ON PAGE 6

cost of the newspapers is also another reason why its popularity is declining. With an average of P20 each copy of the leading newspapers, a daily subscription could really amount much after a month. There is also the fact that producing newspapers has environmental effects especially during the production of paper.

There are of course, differences in how people use these media; different needs, different ways. With regards to content, the internet offers a seemingly infinite source of information. One can easily experience information overload even if searching for just one topic. While some may argue that the news you can receive via Internet can be personalized or customized, the resulting package then would be limited according to what you want or at least what you think you need, and not necessarily what is important. The Internet was designed in such a way that most of the information was arranged on a per-concept basis, while the newspaper is time-based. The urgency of the matters more readily reflects itself on the newspaper. The daily newspaper is a package already of all the important news you need to know for the day, though without qualification. Relative to surfing the Internet, the newspapers’ package is more complete.

There must be higher credibility in prominent newspapers than information from the Internet. Writers in the newspaper have at least some screening, editing & confirmation process, while anybody can write on the Internet, especially bloggers who are more opinionated than fact-oriented. Yet this observation doesn’t mean that everybody should start reading the newspaper and leave the Internet. It is in fact the differences in the information needs that people use different media. The purpose is to point out that some types of information should be sourced from a different media which provides it better.

How many people go online just to read the news? How many people would rather turn on the TV instead of buying and reading newspapers? The accessibility and convenience of these different

CONTINUED ON PAGE 4The Guilder institute

Katrina MagallanesEditor-in-Chief

Raisia RojasDhioanne Hao

Associate Editors for Publications

John Edward LabayMaelyn del Pinado

Associate Editors for Administration

Iris Gem LiCreative Director

James Autor. Cartoonist

Kathleen Mae Giron, Beiai Torres, Precious Ro-chelle Gan, Diana Marie Peralta, Julio Miguel Galvez, Kyle Dael, Nikki Laynes, Petrus Carb-onel, Kathrine Labrador, Richelle Lansang, Jo-

seph SinayWriters