Editorials
Saturday, December 25, 1999

This one’s special

THERE'S something special about Christmas this year for us at the Star-Bulletin because we didn't think we'd be here to wish you a merry one.

As you may have noticed, the Star-Bulletin is caught up in a battle between the owners of the two newspapers, the Gannett Co. and Liberty Newspapers, and the state, which has filed a lawsuit to prevent us from closing.

But we're still in business and we're making the most of it. Merry Christmas!

Easing Philippine
retail restrictions

The issue: The Philippine Congress has passed a bill that will partially open the retail business to foreign participation.
Our view: The measure could attract foreign investment needed to stimulate the sluggish economy.

THE Philippines is taking a significant step toward opening one of Asia's most sheltered economies by modifying a longstanding ban on foreign participation in the retail trade.

The Philippine Congress approved a measure that will allow foreign retail firms to enter the market while continuing to reserve ownership of small-scale enterprises for Philippine citizens. President Joseph Estrada is expected to sign the bill into law.

The so-called retail nationalization law was enacted in 1954 in a mostly futile attempt to shield Filipino merchants from competition from Chinese retailers.

The new legislation will allow foreigners to own 100 percent of new businesses with a minimum investment of $7.5 million. Foreigners will be allowed to own up to 60 percent of retail businesses with capital of $2.5 million to $7.5 million. Enterprises with less than $2.5 million invested must still be wholly owned by Filipinos.

Major foreign retail names are already familiar in the Philippines, but under current law all such stores must be owned by Filipinos under franchise agreements. The new law will enable such companies as McDonald's to enter the market without such requirements.

In addition to the retail trade, restrictions on foreign participation in banking are being lifted. A law will take effect next year that will allow foreigners to own 100 percent of local banks; the current limit is 60 percent.

Liberalization of the electric power industry is expected to begin in the second quarter of 2000, introducing competition to a system now dominated by a few companies.

A campaign to open retailing to foreign participation was launched in 1995 but Filipino merchants argued they weren't yet ready to compete with foreigners. At a meeting of the Association of Southeast Asian Nations last year, Estrada promised to ease restrictions.

Attempts to protect Filipino business interests from foreign competition have resulted in economic stagnation while the Philippines' neighbors were experiencing rapid growth.

The liberalization measures should help attract foreign investment needed to sustain the Philippines' recovery from the 1997 regional economic crisis and lead the way to stronger growth. Estrada has been criticized for doing little to strengthen the sputtering economy, but he deserves credit for the impending reforms.

Sexual harassment

The issue: The governor of Osaka has been charged with indecent assault on a campaign worker.
Our view: The case should encourage other Japanese women who have been victims of sexual harassment to come forward.

Sexual harassment has received much more attention in the United States in the last several years, particularly since the Bob Packwood and Clarence Thomas cases, and now it's becoming an issue in Japan. The number of Japanese women going to court over harassment has been growing rapidly. Last spring the labor ministry issued new rules on discrimination against women and harassment in the workplace.

But nothing else that has happened in Japan can compare with the case of Isamu Yamada, the highest official of its second-largest city, Osaka. Yamada, a former comedian who still goes by his stage name, Knock Yokoyama, resigned Tuesday as governor of Osaka as prosecutors filed charges of indecent assault against him.

Yamada, 67, is accused of molesting a 21-year campaign worker in the back seat of a campaign vehicle. He had strongly denied the charges but previously agreed to pay a large civil settlement.

Although Yamada easily won re-election in April, public opinion turned against him after the settlement was reached in October. A civic group sent 1,500 postcards to the prosecutor's office urging that charges be filed.

The case is expected to encourage other women who have been victims of harassment to come forward and confront their harassers.

Yoriko Madoka, a member of the upper house of parliament and a prominent feminist, called the indictment "a major step forward for women's rights in Japan." In the past, she said, victims of harassment and rape "typically ended up being treated like the accused."

After Yamada's downfall, sexual harassers can no longer be confident that they will go unpunished.

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Published by Liberty Newspapers Limited Partnership

Rupert E. Phillips, CEO

John M. Flanagan, Editor & Publisher

David Shapiro, Managing Editor

Diane Yukihiro Chang, Senior Editor & Editorial Page Editor

Frank Bridgewater & Michael Rovner, Assistant Managing Editors

A.A. Smyser, Contributing Editor