Germany’s Philippine agenda

I had the pleasure to meet the new German Ambassador to the Philippines, Andreas Pfaffernoschke, at a diplomatic event last month.

A native of Berlin, Ambassador Pfaffernoschke was previously appointed to such important posts as Moscow, New York and Paris. The fact that a diplomat of his caliber was assigned to the Philippines exemplifies the importance of the country to Germany’s Indo-Pacific strategy.

Beneath his dignified persona, Ambassador Pfaffernoschke is an amiable gentleman, a loving spouse of 33 years and father of four. He is a grandfather of one and an avid runner, swimmer and tennis player. He has a doctorate in economics and joined the foreign service in 1990.

Last August, President Bongbong Marcos accepted his credentials, opening the way for him to perform his official duties. Since then, Ambassador Pfaffernoschke has gone on a full offensive, meeting German nationals and Filipino personalities, both in the public and private sectors. He admits being impressed by the openness and hospitality of the Filipino.

The Philippines and Germany are of like minds. Both value peace and the rules-based framework for international discourse. Both value democracy, free market capitalism and the individual’s pursuit of wealth and happiness. With the exception of the aberration that is the Duterte administration, both countries honor human rights too.

Ambassador Pfaffernoschke and I sat down for a long chat last week. At the forefront of his agenda is the peace and stability in the Indo-Pacific region. No surprise there. Germany is committed to defend the rules-based order among nations. It is doing its fair share to temper China’s hegemonic ambitions and safeguard the freedoms of navigation and overflight we presently enjoy in the West Philippine Sea. Germany stands firm in support of the 2016 Arbitral Ruling of the Permanent Court of Arbitration, which ruled in the Philippines’ favor.

Another priority is to encourage the Philippine government improve its human rights record. President Duterte did the country a great disservice with his poorly considered drug war. Not only was it an embarrassing failure by most indices, the unlawful murders inflicted severe damage to the country’s reputation as safe destination for investments, tourism and international cooperation. It relegated the Philippines as a rogue state that is both lawless and unsafe.

The Marcos government has professed to re-calibrate the drug war to comply with human rights statutes. The world is watching closely. On impunity, it is believed that abuses among law enforcers are still widespread. Too, the slow and oftentimes biased justice system is a cause for concern. The same is true for red-tagging, which came into vogue during the later part of the Duterte regime. All these must be corrected if the Philippines is to qualify for EU aids and grants and renew its preferential trade status (GSP Plus) with the EU after 2027. The recent extension of our GSP Plus during the visit of EU chief Ursula von der Leyen was only an accommodation.

Climate change is also a topic of interest. Even if the Philippines emits an annual average of only 1.98 metric tons of greenhouse gases per person (half the global average), the Philippine government had audaciously committed to reduce emissions by 75 percent by the year 2050.

However, like many countries (including Germany), the Philippines is behind in meeting its nationally determined contributions on greenhouse gas emissions. At this stage, green technologies should have found its way across the agriculture, transport, waste management and manufacturing sectors. It is not there yet. Germany is committed to assist the Philippines in both technology transfers and investments.

In commerce, Germany has always been an important ally to the Philippines. Germany is the EU’s largest economy and the Philippines’ 12th largest trading partner. Bilateral trade amounted to some $4.7 billion last year, for which the Philippines enjoyed a hefty surplus. As far as foreign direct investments are concerned, German companies pumped in some $217 million over the last five years despite the blowback of the Fraport controversy of 2007. German companies employ thousands of Filipinos whilst facilitating technology transfers to the country.

Admittedly, the Philippines’ share of German investments pale in comparison to the amounts that have been invested in Vietnam and Indonesia. This is especially true now that Germany is actively “de-risking” its economic interest from China.

The Philippines needs to become more competitive, especially in the realm of ease in doing business, asserts Ambassador Pfaffernoschke. Among the pain points are the many redundant steps required to obtain business permits, all of which can take months to accomplish. Rampant corruption, especially from predatory local government officials. Bureaucratic difficulties in importation and exportation, among others.

While the Anti-Red Tape Authority has made some progress in reducing redundancies, the culture of red tape and harassment remain rife among government bureaucrats. This should be replaced by a culture of enablement. The culture of red tape is reflected in our poor intake of foreign direct investment. As of the first seven months of the year, FDIs declined by 14.7 percent despite the many foreign roadshows of the President. It just shows that an aggressive sales blitz to “sell the Philippines” means nothing if the house is not in order.

In the realm of cultural exchanges, Ambassador Pfaffernoschke aspires to level up access to German language courses. Learning German will grant access to Filipinos intending to work or study in Germany. Germany is in need of thousands of workers to augment its ageing population.

Germany is a highly evolved country with mature democratic institutions, a world-leading economy and social equality across sectors. It views the Philippines as a young friend that is still coming to its own. Through the initiatives of Ambassador Pfaffernoschke, Germany is committed to help the Philippines become a stronger republic.

*      *      *

Email: [email protected]. Follow him on Twitter @aj_masigan