Agriculture as engine of growth—Part 2

FORESIGHT has served me well in private business. This is why I firmly believe that preparing for the future will also serve our country well. And another lesson in business that should also be an important part of governance is that there are opportunities in times of crisis.

In my previous column I wrote about the pragmatic solution to the current rice crisis. This time I’ll tackle the opportunities that the Philippines, an agricultural country, can draw from the global food problem.  We can turn this problem, this serious liability, into a major asset for our economy.

This food problem is basically an application of the law of supply and demand: food supplies can no longer cope with the demands of an increasing population, and the supply shortages lead to higher prices. The United Nations’ Food and Agriculture Organization has already concluded that the era of cheap food is over.

Indeed, it is definitely a serious problem, but for food producers it is a good opportunity to make money. For Philippines, it is an opportunity to boost agricultural production. For Filipino farmers, it is a chance to rise from poverty and secure a better life for themselves and for their children.

First, in terms of commercial-scale agricultural production, we can encourage corporate farms to boost production; and encourage more investments in plantations—not only of bananas, coconuts, pineapples and other traditional agricultural exports, but also of rice, now a coveted commercial commodity in the world markets. Global demand for our staple grain has gone so high that some producing countries are even talking about establishing a rice cartel.

We are fortunate to have many areas suitable for agricultural production. There is the Liguasan marsh in Mindanao, consisting of 500,000 hectares, which could be developed for food production. And there are other areas that are virtually untapped for food production.

The government, through government-owned or -controlled corporations, as well as government financial institutions, should consider making the start-up investments to open up these areas. At the same time, planners should think of ways to attract private investments in these areas.

Our great advantage is that we can produce many of the food crops that other countries need. We should exploit this advantage to boost the agriculture sector, which contributed only 1.2 percentage point to the 7.3-percent growth in our gross domestic product (GDP) last year, and accounted for only 18.3 percent of total GDP for the same period.

I’m supporting the extension of the Comprehensive Agrarian Reform Program Act, or CARP, but it should be amended in such a manner as to encourage agricultural production and, at the same time, increase farmers’ income so they will be encouraged to plant more.

Ownership of the land they till is only half of what agrarian reform should achieve. More important is freeing the farmers from the shackles of poverty. Some relationships could be developed between agrarian-reform beneficiaries and other small farmers and corporate farms to increase the country’s agricultural production, not only for domestic consumption but also for exports.

Yes, foresight tells me the unique turn of events in the global food markets could very well be our first opportunity to make agriculture an engine of economic growth.

Ironically, this has been forgotten for several decades because of undue haste and the misguided move to industrialize at the expense of agricultural development.

But this policy should be changed now. The global food crisis could pave the way for the renaissance of Philippine agriculture.

And, if we consider that half of the poor live in the rural areas, then we are faced with another unique opportunity, which is to reduce poverty in less than half the 15 years that the Millennium Development Goals set.

The most successful businessmen have always looked beyond the problems presented by crises. The government should do the same.

With respect to the rice shortage, we should be pragmatic. We should immediately implement measures that maximize available resources. Beyond the solution, we should look at the opportunities.

The benefits from exploiting these opportunities by using our natural advantages in agriculture are too significant and far-reaching to be ignored.

Summing up, I can point to two benefits. First, increasing food production will help us avert similar crises in the future and strengthen our food security. And second, our farmers will finally get their freedom, not just from the bondage of feudalism, but from the chains of poverty.

Isn’t this what a strong republic is really about? 

You may send your comments/feedback to mbvillar_comments@yahoo.com.

THE Joint Congressional Power Commission convenes today, Monday, to inquire into high electricity rates. The Senate panel is headed by Sen. Miriam Defensor-Santiago, who makes no secret of her support for the Arroyo administration, while the House panel is headed by presidential son Pampanga Rep. Mikey Arroyo.

BY power grab, we mean the manipulation of sleeping funds to raid profitable enterprises, eventually to resell to interests lurking in the shadows. There are precedents in this gambit, utilized when the hierarchy controls dormant pensions contributed by taxpayers and government employees.

IT is well that everybody, including the protagonists in what is now being touted as the biggest and, by the looks of it, the most acrimonious corporate battle in recent memory over the country’s biggest power-distribution utility, Manila Electric Co. (Meralco), have agreed on a common objective—reduce the power rates in the country.

Personal Finance: The pressures of education

A FEW days ago I was a guest at Shop Talk, a show on ANC. I may be a Registered Financial Planner and a Personal Finance Educator and all that, but I guess what really qualifies me on the subject is my being a parent to four wonderful kids—two girls (Billie and Gabbie) and two boys (Riggs and Chino).

The Entrepreneur: Agriculture as engine of growth—Part 2

FORESIGHT has served me well in private business. This is why I firmly believe that preparing for the future will also serve our country well. And another lesson in business that should also be an important part of governance is that there are opportunities in times of crisis.

Reflections from the Mirror: Unanswered questions

NOW that the issue involving Manila Electric Co. (Meralco) has become the talk of the town, there is one aspect that I think should be brought out in the open so we can have a clear and total picture of Meralco’s operations. I refer to the collection of water-meter deposits which I understand is around P3,000 per meter, subject to refund once the user gives up the contract.