Building a Self-Reliant Future

FEU Public Intellectual Lecture Series | Dr. Giovanni Tapang | Part 2

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    Summary

    Dr. Giovanni Tapang emphasizes the importance of national industrialization for the Philippines in the second part of the FEU Public Intellectual Lecture Series. He argues for the development of local industries to create jobs, reduce reliance on imports, and boost self-sufficiency. Tapang highlights the need for a supportive policy environment and government investment in crucial industries like agriculture and technology. By harnessing local resources and talents, the Philippines can industrialize effectively, ensuring economic stability and growth.

      Highlights

      • Dr. Tapang stresses on building industries locally rather than relying on imported technology. 📈
      • There's a need to shift from exporting raw materials to producing and consuming domestically. ⚙️
      • Developing local industries can provide jobs and reduce the need for Filipinos to work overseas. 🏗️
      • Investing in agriculture and industry will lead to a balanced and diversified economy. 🌐
      • Government control over vital industries is necessary to avoid monopolies and ensure progress. 🔄

      Key Takeaways

      • National industrialization is crucial for the Philippines' economic growth and self-sufficiency. 🔧
      • Local industries need to be developed to reduce dependency on imports and create jobs. 🚜
      • A supportive policy environment and government investment are essential for industrial growth. 💼
      • Agriculture and technology are key sectors that require focus and development. 🌾
      • Collaboration and innovation in science and technology can propel industrialization forward. 🚀

      Overview

      Dr. Giovanni Tapang's lecture underscores the need for the Philippines to forge a path towards national industrialization. He passionately advocates for building local industries to reduce the country's dependency on imported goods and to create ample job opportunities that would, in turn, uplift the Filipino economy. Through his engaging discussion, Dr. Tapang elaborates on the concept of industrialization as a self-sufficient capability to produce goods needed by the nation.

        Emphasizing a strategic overhaul from merely exporting raw materials to crafting an economy that fulfills its domestic needs, he underscores the benefits of establishing a diverse industrial sector. Such a transition requires government oversight and investment in key sectors such as agriculture and technology to foster innovation and collaboration within science and technology fields.

          The lecture paints an optimistic vision for the future, where the Philippines leverages its vast natural resources and local talent pool to nurture industries that cater not just to national consumption but also have the potential to compete on a global scale. By bolstering agriculture alongside industrial capabilities, Dr. Tapang believes the nation can achieve a fair distribution of economic growth across all sectors.

            Chapters

            • 00:00 - 00:30: Introduction and Context The chapter titled "Introduction and Context" discusses a range of issues, primarily focusing on the lack of job opportunities for Filipinos due to the absence of industries. Additionally, it highlights the scarcity of positions for researchers and scientists, suggesting a broader problem of insufficient infrastructure to support employment and advancement in these fields within the Philippines.
            • 00:30 - 01:30: Building Industries Locally The chapter titled 'Building Industries Locally' emphasizes the importance of developing local industries rather than relying on imported technology. The text encourages a positive outlook, suggesting that if industries are lacking, the best approach is to build them domestically. This fosters self-reliance and innovation within the community.
            • 01:30 - 02:30: What is Industrialization? Industrialization is about developing the capability to produce goods. It involves self-sufficiency in manufacturing capital goods. The chapter also touches on the question of why certain countries, like the Philippines, aren't pursuing industrialization despite the potential benefits.
            • 02:30 - 03:30: Current State of Industries The chapter "Current State of Industries" discusses the dependency on imported machinery and technology in certain industries. It highlights the lack of local manufacturing capabilities, which leads to reliance on buying new equipment when existing ones break down, rather than producing or repairing them locally. The narrative underlines the importance of developing local manufacturing infrastructure to reduce dependency on foreign imports.
            • 03:30 - 04:30: The Need for National Industrialization The chapter discusses the importance of national industrialization, highlighting the lack of interconnected industries necessary for building trains. It explains that without a steel-making industry, a train-building industry is not feasible, underscoring the need for countries to invest in a diverse range of industries to modernize and support such infrastructure projects.
            • 04:30 - 05:30: Challenges and Opportunities in Industrialization The chapter discusses the benefits of building an industrial economy, highlighting how producing necessary goods locally can secure livelihoods by creating factory jobs and reducing reliance on overseas employment. It suggests that industrialization can meet basic needs, such as transportation and agricultural equipment, although advanced consumer electronics like iPads might not be immediately feasible.
            • 05:30 - 06:30: Public Sector's Role in Industrialization The chapter titled 'Public Sector's Role in Industrialization' highlights the importance of a diversified economy that goes beyond just relying on scientists and engineers. It emphasizes the need for various allied professions, including marketing and business, to produce not only basic needs but also to build better products in a sustainable industrialization process. The text suggests that by integrating multiple professional fields, a healthier and more diversified economy can be established.
            • 06:30 - 07:30: Support for Filipino Firms The chapter 'Support for Filipino Firms' discusses the implications of the ongoing trade war between China and the United States. It highlights that due to the tensions, the U.S. is opting to produce goods domestically rather than import from China, and China is reciprocating by banning U.S. products and focusing on its own production. This global context emphasizes the significance of national production capabilities.
            • 07:30 - 08:30: The Problem with Relying on Foreign Investment The chapter titled 'The Problem with Relying on Foreign Investment' discusses the challenges and implications of depending too much on foreign investment. It suggests that focusing on producing primarily for domestic consumption could be a more sustainable approach for national industrialization.
            • 08:30 - 09:30: The Importance of Technology Transfer In this chapter titled 'The Importance of Technology Transfer', the focus is on the capability of Filipinos to construct and develop technology for their own needs, primarily for domestic consumption. This approach does not exclude the possibility of exports, but it emphasizes addressing the requirements of the local population as a priority.
            • 09:30 - 10:30: Government Funding and Budget Allocation Chapter Title: Government Funding and Budget Allocation This chapter discusses the importance of aligning industrial development with broader national goals, particularly prioritizing Filipino citizens. It emphasizes that industrialization should not be pursued just for economic growth but should also consider long-term benefits for the country and its people. Policy decisions related to government funding and budget allocations should therefore reflect this broader vision, integrating social and economic objectives into the industrial strategy for sustainable national development.
            • 10:30 - 11:30: Agriculture's Role in Industrialization industrialization involves exporting raw agricultural and extractive materials while importing finished products, highlighting the need for a more self-sufficient economic model.
            • 11:30 - 12:30: The Importance of Heavy Industries The chapter discusses the reliance on imports for everyday items such as food and technology. It highlights the tendency to buy finished goods like computers, projectors, and LCD screens from abroad, while some items like chairs might still be produced locally. This situation underscores the significance of having a robust heavy industry sector to reduce dependency on foreign imports and support local manufacturing.
            • 12:30 - 13:30: Need for Science and Technology This chapter explores the necessity of science and technology in modern industries. It discusses how various tools like saws and hammers, essential in making products such as chairs, often originate as imports. This dependency illustrates a broader reliance on scientific advancements and technological imports, even in sectors like agriculture and capital goods. The chapter underscores the critical role of technology in the production of finished goods, highlighting the interconnectedness of global supply chains and the importance of technological innovation in sustaining economic activities.
            • 13:30 - 14:30: Initiatives and Projects in Science Education The chapter delves into the discussion regarding the employability of science experts in a context where finished goods are readily imported. The narrative questions the need for scientists and engineers when companies can simply purchase products that are already completed and require no further research or development, thus indicating a gap in the industry for roles that necessitate scientific expertise.
            • 14:30 - 15:30: Challenges in Science and Technology Implementation The chapter titled 'Challenges in Science and Technology Implementation' discusses the practical aspects of industrialization in the Philippines. It addresses the issues involved in assembling or reassembling products domestically, with the intent to export them as whole units, rather than selling them as finished products within the country. The chapter raises critical questions about the country's basis for industrialization and whether progress can still be made despite the challenges. It concludes on a positive note, highlighting potential advantages the Philippines possesses that could aid in its industrialization efforts.
            • 15:30 - 16:30: Community-based Technological Solutions The chapter titled 'Community-based Technological Solutions' begins by recognizing the vast array of natural resources available, including metals, minerals, and energy sources. It highlights the abundance of marine resources and biodiversity, noting that while having such resources is valuable, the significant focus is likely on how community-based solutions can utilize these resources sustainably to tackle technological and environmental challenges.
            • 16:30 - 17:00: Conclusion and Closing Remarks The chapter discusses the dual components necessary for economic development: forces of production and the availability of resources. It highlights the importance of workers, professionals, scientists, and technologies as the driving force behind production capabilities. The chapter also explores the current trend of exporting these forces abroad to regions like Saudi Arabia, Hong Kong, Europe, and the US, suggesting a need to retain these elements domestically to foster local development. The chapter concludes with a hopeful outlook that if these forces no longer feel compelled to leave, local growth and development become feasible.

            FEU Public Intellectual Lecture Series | Dr. Giovanni Tapang | Part 2 Transcription

            • 00:00 - 00:30 [Music] if you have all of these problems if you have no jobs for the filipinos because you don't have industries if you don't have positions for researchers scientists to
            • 00:30 - 01:00 stay and if you don't have good future what do you do just try and sit down in the corner no we are more positive than that now if you don't have those industries then the best way is to build those industries rather than importing technology all the time we can actually build the technologies here we can actually make the things here
            • 01:00 - 01:30 we can actually be starting filipino industries why are we not doing it but in the first place what is industrialization and what is national industrialization for that industrialization is actually about building the capability to make things okay essentially in more technical terms is having self-sufficiency in building capital goods now capital
            • 01:30 - 02:00 goods if there are economies around are really about having factories that will allow you to build other factories machines that will build other machines we don't have that we just import the machines if they break down we then we buy another one that's more often what happens in our industries and we don't have trains we import the trains they break down
            • 02:00 - 02:30 we buy new trains right we don't build the trains there are research that are actually building the trains but they're not connected together because there's no train building industry why don't we have trained building industries because we don't have steel making industry etc and therefore that's the whole point of having industries here in the country one is not just because it will give you a modern and diversified
            • 02:30 - 03:00 industrial economy industrial meaning you can produce the things that you would be needing you will also secure livelihood because if you build the factories then you will need people to people to go into the factories and work they don't have to go to saudi anymore then you can satisfy basic needs probably not your ipad yet but if you ever would need a tractor if you're a farmer if you ever would need a small transportation
            • 03:00 - 03:30 uh truck if you would ever would need your clothes etc then we can produce those basic needs probably in the next few cycles we can build better uh products that's where your marketing people will come that's where your business people will come right and that's why we would need not just the scientists and engineers but all the other allied professions that would feed into a healthy and diversified economy
            • 03:30 - 04:00 but the national world there is very important because right now china and the u.s is in a trade war u.s does not want anything from china the and would rather produce on their own china would ban u.s products and would want to produce in their own okay the whole context of producing for national needs
            • 04:00 - 04:30 or producing primarily for domestic production is the whole crux of the word national international industrialization susumu um future
            • 04:30 - 05:00 no filipinos but we can actually build for ourselves primarily it doesn't preclude any export but you produce primarily for your domestic consumption and the whole real way of trying to address what we need
            • 05:00 - 05:30 would be the whole context of this industrialization it's not just building your industries for industry safe it's building your industries for filipinos but you have we have to look into a longer term um
            • 05:30 - 06:00 valuation because that's how you would actually give um economic sense into what we're building now the best way to appreciate national industrialization is to look at what's happening right now we're exporting agricultural and agricultural and extractive raw materials we're just exporting raw and yet importing steel or exporting grains and yet you're
            • 06:00 - 06:30 buying bread meat processed for bread we import a lot of things okay at the expense of cheaper exports and whenever you need something to buy usually you buy it finished already you buy a computer you buy a projector you buy lcd screen you buy um well not the chair probably they're making the chairs here
            • 06:30 - 07:00 but you buy the saw for the jet for making the chair even the hammer actually for the chairs will probably be important and therefore your finished goods already are coming in agricultural commodities and even capital is coming in as imports
            • 07:00 - 07:30 expert cool okay plastic covering why would you need those experts when you're already importing finished goods that's the reason why you don't have places for scientists why would a company hire somebody who's an expert in science or engineering when all the things that they would buy are already finished and need no research anymore
            • 07:30 - 08:00 and congratulations that we will be just assembling or reassembling these things and probably this might have been assembled here in the philippines okay but export it as a whole not exp not sell it to you as a finished product do we really have basis for industrialization uh can we still make it well the nice thing about the philippines is that
            • 08:00 - 08:30 we have we really do have a comprehensive um natural resource space we have metals we have minerals we have energy and mapa is all blue all there we have marine resources we're the center of the center of biodiversity we have all a lot we have a lot of those resources here but resources are just
            • 08:30 - 09:00 one part of the equation the other part is your forces of production your forces of production include your workers your patents professionals like you okay that includes scientists and technologies and if you have both of them we actually do have forces of production but we export it to saudi hong kong europe the us if they don't have reason to go out anymore then probably we can actually build the
            • 09:00 - 09:30 industries here in the country if we ever do build a industrial policy how will it look like well one we have to have a public sector control of vital industries now the reason that vital industries include the basic industries that you would be needing like electricity water serve and other services
            • 09:30 - 10:00 transportation distribution etc now the reason here is this very simple suppose you have a production plant in leyte for copper and you have a industrial plant somewhere in mindoro for copper tubing now how how would you transport okay those raw metal to
            • 10:00 - 10:30 your copper tubing plant if you do not really have control over the lines of transportation now does it mean you have to own it no not really you just have to have control let me give you a reason why control is important the best example is the mrt the mrt as you would know go from along edsa okay it's a privately owned company the government sold its
            • 10:30 - 11:00 control um and even if you have trains running with open doors and trains shutting down every station the government cannot force the company to operate correctly because it does not have control in 2007 there was a very big typhoon somewhere in marinduque and romblon and envy princess of the stars
            • 11:00 - 11:30 absolutely uh sat carrying it within several hundreds of people now the next day the marine authority actually shut down the owners all the ships of the owner of that of the every princess of the stars 30 of all inter-island trading stop that means the control of that company is already one-third of all inter-island trade
            • 11:30 - 12:00 now we don't want such a situation that well that the owners of the shipping company would refuse to do industrial production so that's why you have to have control it doesn't have to be ownership you just have to have control and we don't really want big monopoly operations because it will be detrimental in the national interest the other one is an active or biased support for filipino firms this has been there since the
            • 12:00 - 12:30 1950s and nobody really seriously gave support for filipino firms always the mantra of neo-liberal thinkers in the government would be to invite more foreign um investment wait for china wait for the u.s wait for japan etc but nowhere do you hear i will give support for him or her
            • 12:30 - 13:00 filipino firms is that we cannot have industrial policy that will always be dependent from foreign investors they will never try to industrialize the country they have their industries at home they want to sell to you finnish products and they will avoid doing this and if we want to have industrial filipino industrial
            • 13:00 - 13:30 companies then we have to give them terror protection give them accessible credit that's exemptions government procurement would give priority to filipino firms and even build state enterprises the government itself built these enterprises we don't have that for 40 years we're always waiting for foreign investment even the build-build bid program of the government is waiting for foreign
            • 13:30 - 14:00 investment and foreign laws to do it we don't do it ourselves does that mean we don't want people i mean foreigners no not really what we don't want is the situation where we don't we're not at par with each other because right now even if the constitution 1987 actually prohibits anything larger than 60
            • 14:00 - 14:30 percent ownership is being violated in the proposed federal constitution we don't see this limits anymore okay now what we want is real technology transfer if we have investors it doesn't really it's not bad to have foreign investors but we cannot depend on them to industrialize our country but if we do have foreign investors they have to leave their technology with
            • 14:30 - 15:00 us or else they can do what intel did the the chip maker they were here in 1970s up to 1990s when they left they actually brought all their plants and my classmates with them so in malaysia so they did not leave any production chip production here they were producing chips in the country but when they left it and did not give anything
            • 15:00 - 15:30 can you still fund these things in fact the nice thing of nice if you would want to call it nice thing about the the the the pork barrel issue is that we find some suddenly that we the the government really have has money and in fact even right now we can see that the government the president can
            • 15:30 - 16:00 actually command several billions of pesos at his fingertips and therefore they can really if they just wanted to build the industries themselves the money is there right but well this was a um a research that you can find in the philippine journal of science but the guts there here are ngos some of the dots are also the
            • 16:00 - 16:30 congressmen and senators the thickness of the lines is the money that was given from one ngo to a congressman and the colors were automatically generated to find who gives to whom regularly so the community so the red ones well not the pink in this color the pink ones are the ones that were jailed okay some of them are out already but you
            • 16:30 - 17:00 know the yellow the blue the green the brighter yellow and even the red ones are still there and probably running this 2019. yeah okay well if you look at it how does how much is one power plant to produce 600 megawatts now 600 megawatts one unit cost is 45
            • 17:00 - 17:30 billion vessels okay uh we are actually using around 15 000 gigawatt megawatts i'm sorry of electricity for the whole country okay now steel plant costs like that etc if you want to make chips computer chips then you would need around 46 465 billion pesos now with the whole 2017 budget you can actually build that
            • 17:30 - 18:00 of course you won't use your whole budget for it you can allocate five percent of your annual budget now if you look at it you can actually build these ones how now five percent of your budget annual budget can build already around four uh power plants four power plant that's
            • 18:00 - 18:30 600 megawatts times ford is 1.2 gigawatts you already have added 10 to electricity capacity in the country you build steel plants the next year six years then then you can build around 2.8 or three steel plants that will produce 5 million tons per year about luzon visayas could have one and then lrt you can actually have 56
            • 18:30 - 19:00 kilometers of line for five percent of your annual budget that will bring you lrt from here to the gupa santa 12 20 pesos dinner from assad a chipmaking company of course is very costly um you can wait several years to do it and other plants you can actually build tractors trucks etc with five percent three of those plants and you can build two of the largest two
            • 19:00 - 19:30 equivalently of hanjin which is supposedly the largest asia uh ship making company in asia which is in subi which only gave around 80 billion pesos that's really quote unquote cheap for a 3.7 trillion peso budget and therefore with 60 years you can actually build build build and industrialize the country we don't see those things why because
            • 19:30 - 20:00 the policy is not there but what kind of industrialization do we need what do we prioritize the first one of course is to address the needs of the seventy percent you have seventy percent of your people right now engaged in agriculture and they have a problem of course if they don't have land so you have to have land reform okay not the land reforming morocco but the land reform that would really address the problem
            • 20:00 - 20:30 of the monopoly of land the monopoly of land meaning the only a few people would actually own hundreds of hectares of land holdings in that are productive and therefore you have to give or empower the farmers to actually have to own their land now it's not just land ownership of course it's also agricultural development you have to provide them trackers you have to provide them
            • 20:30 - 21:00 fertilizers you have to provide them support you have to provide them credit and yet to ensure that they will pay you have to make them productive right and therefore you have to improve their farming technologies break all those cartels that will try to import rather than to produce locally okay and therefore that's why we call agriculture as the base once you build the base you will actually have a lot of people who would be having their lives better
            • 21:00 - 21:30 productive increase to buy things and even to um find work now the problem with this if you industrialize and modernize your agriculture then in that example
            • 21:30 - 22:00 what will happen to the nine well that's why you should not actually divorce agricultural in investments and um modernization to the whole industrialization policy because agriculture will do provide it
            • 22:00 - 22:30 will provide subsistence pakkai it will also be a source of industrial raw materials biogas fibers etc it's also a market for industrial products so if you can make tractors then you have people who will buy tractors if you can make chemical inputs they are people with biochemical inputs etc and it's also a reservoir of labor power in other words if you free them from doing artisanal
            • 22:30 - 23:00 agricultural work then you can actually have them go to your factories instead as long as you build the fabrics it's also a sort of accumulation funds and um the reason for that is of course if you invest in agriculture everybody is still going to eat anyway so you're you'll sure to have some people who would actually be at the receiving end of agricultural products
            • 23:00 - 23:30 but on the other side of the equation you have to build your industries as well you cannot industrialize agriculture and leave it at that because we will provide the tractors who will provide the machines who will provide the things that they will need for industrial agriculture you have to have a
            • 23:30 - 24:00 part that produces those industrial products modern machinery motor power chemical fertilizers pesticides and even all the motor production needs of agriculture you can also produce of course light industrial machines for in night industry but this is where scientists engineers would have to discover newer processes better ways to make things newer
            • 24:00 - 24:30 products etc because that's where innovation is needed agriculture has been there for 11 000 years okay we can do a lot of with it but here in the country with link with the resources that we have with the elect energy that we have what can we do in terms of industry and since everybody now knows how to avoid dirty industries how can we make industries clean
            • 24:30 - 25:00 this is also a problem that's why you would need scientists that's why when you need chemists physics engineers etc of course nike perimeter and that's where your um light industries that will be coming in now it's it will raise our living standards because we have available stuff already to buy we don't
            • 25:00 - 25:30 have to wait for imports to come in it's it requires smaller investments quick returns because everybody's going to use it every day and that's where you can actually accumulate fun for industrial development now why is it why is the leading factor called the heavy industries called the leading factor now let me just go back a bit now it includes base metals chemical production petrochemicals thermostatic precision instruments machinery electronics consumer durables etc
            • 25:30 - 26:00 and the reason why it's called the leading factor is because once you have say basic chemical production you can produce the chemicals that you need then you can produce a lot more with those chemicals it leads the way to new products new processes if you have you can produce steel then you can produce a lot of things other that will be using steel it will open the way to steal production the steel production and turret
            • 26:00 - 26:30 will open the way to other machineries etc so if you have electronic production that you need not to import a lot of things then you can make a lot of things like computers high-end id etc diving prospects you have to really check whether it's going to happen um there was a talk with the um in the air for example to
            • 26:30 - 27:00 to to supposedly address agree and before national industrialization and even environmental production but it has been stopped already but what can we do okay we have to find science and technology that is tuned to the needs of the people and taking into account the whole economy this means that we have to really push for national industries okay we have to find ways to have this industrialization plan
            • 27:00 - 27:30 and demand from the government we cannot just sit idly because sitting idly will just produce the same things that have been happening for 40 years for example in terms of science and math education we should actually do our part well i have a project for example advisor that create science kits for high schools to address the lack of science
            • 27:30 - 28:00 science laboratories in the country 35 of our high schools would not have any modern science equipment and those who said that they are modern quote unquote actually are just pointing to their laptop and their projector as modern lab equipment but even with this project for example it has been very difficult because you cannot find any local production here full 100 we do have a local producer
            • 28:00 - 28:30 for talking to one but they're also importing all of their um parts from abroad so it's not really technically 100 filipino product it's filipino made it's filipino created it's filipino um produced but all the parts are still from the outside with with i've been doing a lot of research for example on this
            • 28:30 - 29:00 and um we have been trying to produce low cost equipment for science education for i am internet of things for sensors etc by actually trying to use available software and available hardware designs and implementing them ourselves okay and we don't really do we do a lot of um ip generation
            • 29:00 - 29:30 intellectual property generation but for example the advisor project all the intellectual property of that has been licensed to that royalty free okay we're not going to earn anything from that well i think i will earn quote-unquote much with better students that will be coming from high school and that's good enough for me yeah but of course for private schools
            • 29:30 - 30:00 depending on the licensee they can charge but for public schools we're giving it license free the problem is how to translate this into industrial products right so really the problem of having all of these ideas all of these inventions if you would want to call them is that in the academe even making startups etc it's going to be
            • 30:00 - 30:30 very difficult unless you have the policy environment that will actually make you make things for the filipinos so we've been using this underwater camera air quality sensor water quality sensor the incubator cost around uh half a million pesos but we've made one just for one battery dish for our cancer research
            • 30:30 - 31:00 then it costs around 5 000 pesos okay so i have a lot of research but that research really would be very crucial in in actually building the capacity of the philippines but unless you have that policy environment that national industrial force of building things for the filipinos then this will actually just be papers
            • 31:00 - 31:30 inventions etc that will be very far from the experience of the the ordinary filipinos unless you actually go and bring it to them that's where that's why we have an organization called the gram or the advocates of science and technology for the people where we actually bring all of these technologies to communities that will be needing them
            • 31:30 - 32:00 um for example you have the those who were uh people in pandit who who did not have any electricity once they were given the the their houses then we're trying to figure out how to use solar power for them okay or a mining affected com comp uh community that has been um under the the
            • 32:00 - 32:30 under a a mining company that might have spills so they wanted to have um monitoring for the river so that they can be assured that they can drink the water or use it for agriculture a lot of these things do take time and because you have to go to the communities and ask them what they actually need um they probably would need not meet my
            • 32:30 - 33:00 paramission robots yet but at least when they need it they will have it the best um code for probably to end the discussions that it comes from uh einstein and uh he was saying here that man can find meaning in life short and perilous as it is only if he devote himself to society and this is how we could actually be more meaningful if we actually devote our
            • 33:00 - 33:30 science and technology to society thank you very much you