Falcone and Madrigal on education

So far, I have discussed the views on education of senatoriables Samson Alcantara, Bam Aquino, JV Ejercito Estrada, and Ramon Magsaysay. Here are the answers of two more senatoriables to my question, “What is the first bill on education that you will file once you get elected (or reelected) to the Senate?”

BALDOMERO FALCONE will file a bill securitizing college graduates. According to him, “Securitization is the special skill/art/process of having viable and feasible projects and their comprehensive components (studies, land, raw materials, labor, proper technology, contracts, etc.) entrusted to the Trust Department of a commercial or universal bank in order to set up an Asset Pool Trust or Special Purpose Vehicle.”

Falcone is very clear about the details of his pet project. “Under this Special Purpose Vehicle or Asset Pool Trust,” he says, “the project proponent with the Trust Department of the bank as nominee co-issuer will be able to float securities/bonds or asset participatory certificates. Features of these securities/bonds/asset participatory certificates, priorly registered with the SEC, will be longer in maturities, and will be wrapped up by the guarantee of an insurance firm or another standby bank in terms of return of principal and annual yields; hence they become investment grade and credit worthy. The yields will be better than the T-Bills of the Central Bank and so they will be able to access not only the three trillions of trust money (per CB report) held in the trust departments of our banks, but also the global funds (other trust money in other banks, hi-net worth individuals and multinational corporations) around the world that like water always seeks its own level. All sales emanating from these bonds/securities will be controlled by the supervising body composed of representatives from the trustee bank, the proponent company, the contracting/executing company and an audit company who together will decide on the proper and timely exclusive application of funds for the strategic project to be established. Once the project is functioning and its viability assured, and the monies plus promised yields of the investors/participants have been returned, the asset pool trust or special purpose vehicle is collapsed and the established project is given back to the original project proponent/entrepreneur. Unpaid investors can have the option to join the original project proponent in the management of the new business.”

He concludes that “securitization thus will create more businesses all over the country and will create hundreds of thousands of jobs. It will not make our governors and mayors too dependent on their IRA, but with good potential projects coming from their respective provinces together with the entrepreneurs from the private sector (in the spirit of PPP) can go around the restrictive credit conditionalities put on by our oligarchic banking industry. After all, securitization is tapping not the bank’s tight credit wherein the banks have deposit liabilities but the more liberal trust money. With thousands of graduating students knowledgeable in securitization, given the proper moral and financial encouragement and promotion of the government, we can definitely usher on a much faster mode the economic renaissance for the country that we all have been longing for.”

That Falcone knows exactly what he wants and exactly how to do it is clear. Not knowing much about money (except how to spend it), however, I do not know if securitization makes sense. You be the judge.

JAMBY MADRIGAL would like to push for a feeding project she started in her previous term as Senator.

“My journeys to the farthest barangays opened my eyes to how the problem of malnutrition has affected children’s education. My research then showed that more than 25 percent of children in the Philippines are born malnourished, many of them from undernourished mothers. Educators agree that the early years of a child’s education are the most important in building the basis for superior learning. Many children who go to school without enough nourishment do not perform well. Many drop out by the time they reach the fourth grade because their parents put them to work just to earn a few pesos a day to be able to feed themselves. Most of the time the parents ask the female child to drop out first, thus depriving many girls of an education. Wouldn’t it be wonderful if each child who came to school could look forward to a nourishing lunch? At least they would not have to work to feed themselves and thus they can stay in school longer. Each child would be stronger and more fit to meet the challenges in the classroom! Attention span would not be affected by weakness and foggy minds due to a lack of nourishment. This would encourage parents to send their children to school if only to have one full meal. Three things are accomplished. More children are sent to school, the drop out rate is lowered, and children have more energy to study and retain knowledge.

“We should start this in the poorest municipalities. At least every child is given a better start at being educated as nourishment plays such an important role. Before my Senate term ended in 2010, I already had a blue print for this and a pilot school in Rizal.”

I share Madrigal’s desire for improving the feeding programs in our schools.