Volume llI, No. 3
MAY - JUNE 1985 IIH
AGRICULTURAL TOWARDS SUSTAINED PHILIPPINE AGRICULTURAL GROWTH: POLICY ISSUES AND SUGGESTIONS* The agricultural sector is a key sector of the Philippine economy. Taken togerber, andaforestry activitiesagriculture, account forfishery, more than quarter of the total of the gross product (or value considerably moredomestic ff the gross valuewereadded agricultural processing to befrom included), compose more than two-fifths of total exports, and provide more than half of total employment. Thus, the growth performance of the sector has a tremendous impact on the rest of the economy. At the same time, however, the growth performance of the agricultural sector is heavily influenced by the policy environment within which the sector operates. II I
POLICIES FOR DEVELOPMENT EDITOR'S NOTE: The Philippine Institute for Development Studies has long been engaged in serious studies on agriculture as this is viewed as a critical sector in overall Philippine development. Way back in September 1983, the Development Research News featured a special issue on agriculture. The articles in that issue made clear that the potentials of agriculture couM very well be developed on equal terms with the commercial and industrial sectors. In this issue, the Development Research News presents brief summaries of the papers presented during a two-day seminar on Agricultural Policy hem on May 3-4, 1985. Our guest writer, Dr. Ponciano fntal, Jr., Chairman of the Department of Economics at the College of Development Economics and Management (CDEM) of the University of the Philippinesat Los Ba_os, introduces these summaries and suggests two broad themes that weave the papers together. The last article, also written by Dr. lntal, calls for increased support fbr agricultural research and improved public administration. The seminar-workshop on Agricultural Policy was eonducted at the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) in Los Baztos, and was jointly sponsored by the Center for Policy and Development Studies ( UPLB.CPDS), the Philippine Institute for Development Studies (PIDSJ, the Philippine Council for Agriculture and Resources Research and Development (PCARRD), the International Rice Research Institute (IRRI), and the Agricultural Development Council (ADC). III II
TABLE OF CONTENTS TOWARDS SUSTAINED PHILIPPINE AGRICULTURAL GROWTH: POLICY ISSUES AND SUGGESTIONS BY PONCIANO INTAL, JR............... RICE PRICING AND MARKETING POLICY BY F. LANTICAN AND L. UNNEVEHR ........ ISSUES IN IRRIGATION WATER MANAGEMENT IN THE PHILIPPINES BY MA. C. CRUZ, R. SlY AND W. CRUZ ........ IRRIGATION AND RICE PRODUCTIVITY: THE PHILIPPINE SETTING BY J. SISON ........................... POLICY ISSUES ON RICE CROP PROTECTION BY C. BANTILAN AND E. MAGALLONA ....... AZOLLA: A POTENTIAL SOURCE OF NITROGEN FOR LOWLAND RICE CULTURE BY E.T. CASTILLO, P.C. PAYAWAL, ET AL ..... FERTILIZER AND PHILIPPINE RICE PRODUCTION BY A. TE ............................. .......
POLICY ISSUES IN THE PHILIPPINE COCONUT INDUSTRY BY C. HABITO ......................... THE COCONUT REPLANTING PROGRAM 1
BY J. SANGALANG ...................... POLICY ISSUES FOR THE PHILIPPINE SUGAR INDUSTRY BY I. PABUAYON AND S. CATELO ...........
A CALL FOR INCREASED SUPPORT FOR AGRICULTURAL RESEARCH AND IMPROVED PUBLIC ADMINISTRATION BY PONCIANO INTAL, JR .................
6 PIDS PUBLICATIONS AVAILABLE
PIDS DEVELOPMENT 1[
Several recent papers, the majority of which were wholly or partly funded by the Philippine Institute for Development Studies (PIDS), have examined the policy environment of Philippine agriculture, Most of the papers were written by the members of the Agricultural Policy Working Group.** The papers of the Group contain a number of policy recommendations which are aimed at improving the policy environment of Philippine agriculture to make the sector a vigorous anchor of the country's economic recovery and sustained growth, There are two broad themes that weave the papers together. The first is that government trade and financial pollcies have unduly hurt agriculture. For the 1970s, this theme is best shown by David et al. (1983) and is reemphasized in Intal, David and Nelson (1985). Lamberte
marketing efficiency. The challenge to policy making, now and in the future, is to consider more carefully the appropriate level and form of market intervention. In this regard, the four principles to guide the process as spelled out in intal, David and Nelson (1985) are worth mentioning here:
et al. (1985) indicates that the burden of the macroeconomic adjustment during the past two years was shouldered more by the private sector, specifically the agricultural and export sectors, than by the government. In general, since these sectors can be expected to be logical anchors for economic recovery, the disproportionate burden imposed on them partly explains the difficulties in adopting the macroeconomic adjustment process. Towards stimulating the econo-
can be expected to use resources more efficiently than the public sector, (3) The government should only interfere where public benefits of intervention are much larger than public costs, (4) The government need not buy and sell directly in order to influence prices. The use of variable export and import taxes, for example, can provide domestic price stabi-
, ,, ,,=,,
1985 i| i
for agricultural research and extension (e.g., the development of azolla ecotypes appropriate for local conditions, Castillo et al.), as well as a call for research on methods for maximizing fertilizer efficiency and alternative sources of organic fertilizer (Te), and on the proper use and impact of pesticicles (Bantilan and Magallona). In the last paper, lntal notes that government investment in agricultural research (in real terms) during the 1970s barely grew in the Philippines in contrast to the significant expenditure increases in the agricultural economies of the ASEAN region.e
(1) Markets should be presumed to be functioning well, unless it can be clearly demonstrated that they are not. Price variability and large marketing margins are almost always evidence not of monopoly practices but rather of an underdeveloped market structure. (2) The private sector is almost always more efficient than the public sector. Being driven by the profit motive, the private sector
RICE PRICING AND MARKETING POLICY by: F.. Lantican and L. Unnevehr
mic recovery, it may be well to take a short-term macroeconomic strategy of further fiscal discipline and a more expansionary monetary policy stance vis-_ -vis the private sector, The second theme that is pervasive in the studies is for government to deemphasize its direct intervention in the control of the domestic and international marketing of agricultural output. The papers of Lantican and Unnevehr, Pabuayon and Catelo, Habito and Te indicate that government intervention in marketing during the 1970s had, on the whole, an adverse effect on farmers' income and
lity (Lantican and Unnevehr). The papers argue that government efforts could be more fruitfully directed towards improving the institutional framework of, and infrastructural support fbr, farming and agricultural marketing. Pubhc investments in market infrastructure (e.g., farm-to-market roads, ports), market information dissemination, and the protontion of competition in agricultural trading can reduce marketing margins and price uncertainty (Lantican and Unnevehr, also Habito). Habito, Pabuayon and Catelo argue for a serious examination of the tenurial
Domestic rice prices have followed the long-run trend in world prices. This is not surprising since both explicit budgetary costs and the implicit social efficiency costs of deviating from world price trends are large. Keeping domestic rice prices close to world price trends encourages the most efficient allocation of domestic resources. The short-run variability in world rice prices creates the need for some type of policy to provide domestic price stability. The central price policy issue is how to manage trade or stocks to provide tbr gradual adjustments to world market trends. The thin world rice market means that participants must bear substantial search and transaction costs, which will be particularly true for the Philippines in the near future, since the country is likely to continue to shift from being a marginal exporter to a marginal importer and vice versa. Thus, trade and buffer stock policy must be flexible to handle both surplus and deficit years. The government has relied on the control of international trade to influence do-
= *This article draws heavily from the overview paper written by C. David, G. Nelson
relationships in the coconut and sugar industries, including the feasibility of instituting land reform in these industries, In the area of irrigation, there are persua-
mestic prices, but this has had some unexpected effects on the market. During the importing years of 1961 to 1973, imports frequently arrived after the new
Banns_ **The Agricultural Policy Working Group is a project of the UPLB Center for Policy and DevelopmentStudies, involving individualstaff members mainly from the UPLBand IRRI. The
sive arguments for continued government subsidy even as the National Irrigation Administration has further streamlined its operations and strategies for cost savings and greater operational effect-
harvest had already begun. Government delays in contracting and disbursing imports meant that supplies were not available during the lean season when they were needed, and this had led to
PCARRD,IRRI, ADC and UPLB Office of the Director for Research.
ivity (Cruz et al.; Sison). All the studies argue for increased government support
unusual seasonal deficit years.
and P. Intal, Jr. for the May 3-4, 1.985 seminarworkshop on Agricultural Policy, U.P. Los
has been cooperatively
3 IIII I
1985 III I
': . . . The government has relied on the control of international trade to
the replacement of private storage with subsidized public storage. Since inter-
ISSUES IN IRRIGATION WATER MANAGEMENT IN THE
influence domestic' prices, but this has had some unexpected effects on the domestic market.. _"
vention did not hold actual market prices within official price bounds, private traders are still able to store .rice.
The results suggest that the government needs to reconsider its domestic marketing role carefully and to set more expficit intervention goals. One alternative would be to set a reference Manila price that would follow world market trends. Doraestic marketing costs would then determine other prices throughout the country, In the domestic market, the government could then compete with the private sector, either when farm prices are lowest, or whenever retail prices are highest. On the other hand, in defining a domestic market strategy, the government needs to decide whether subsidizing marketing costs is desirable or feasible. An explicit budget allocation to cover the stated goals of intervention could then be made, rather than financing operations from implicit capital subsidies and monopoly rents, Given tile sheer magnitude of the rice trade in the Philippine economy, it is likely that the government's role in trade will be small. Therefore, the govermnent
During the surplus years of the late 1970s, the government monopoly on international 'trade prevented world quality premiums from being reflected in doraestic prices. Private millers did not have the incentive to meet world market standards for consistent blends of head. rice and brokens or to develop quality control institutions within, tile private trade. This reduced the ability to export profitably because the government incurred reprocessing costs to meet export standards, On the other hand, government is to be commended for reacting to the shortage of domestic supply in 1984 with the timely disbursal of tinports. Past experience does suggest that in the medium'to long-term, some redefinition of the government's role in rice trade is needed, The goal of providing price stability could be achieved through relying more on the private sector and using wtriable export/import taxes. A domestic price goal (i.e., a Manila reference price) could
,ll _ The government
be set and then a variable export tax could be imposed that would be equalto the difference between the domestic price goal and the actual world price_ The private sector could then undertake whatever traffic would be profitable_
its scarce resources domestic marketing instead of creating market. "
An analysis of domestic market intervention shows that defense of the ceiling price has beenmore effective than defense of the floor price_ Disbursements have
needs to use its scarce resources to promote domestic marketing efficiency, instead of creating a segmented and inefficient market,
been determined byhighrice prices, while procurements have not been concentrated
In the long run, all rice producers and const, mers willbenefit from the reduction of rice marketing costs. This can be achievedthrough the government's role in infrastructure investments (i.e., transport and comnmnications); as well as through agricultural reseaJ'ch to reduce postharvest losses and the development of financialinstitutions. â€˘
promote e.Â˘ficiency, a segmented
where prices are lowest. Domestic floor and ceiling prices are not defined with respect to location, and in the case of ceiling prices, neither with respect to rice grade. The recent redefinition of ceiling prices to allow for grades may be unwieldy to administer, particularly if grades do not agree with consumer preferences. The difference between ceiling and floor prices is ,rot enough to allow private
,,, . . .Ttle
traders a reasonable return to storage between harvests, particularly now when capital costs are very .high. Thus, an implicit goal of intervention remahls to be IIIl
governmen[ needs to reconsider its domestic marketit,g role carefully and " to set more explicit intervention goals... " _. In
by. Mr. C. Cruz, R. Siy and W. Cruz The responses of tile National Irrigation Administration (NIA) to cutbacks in the irrigation budget and to the rising costs of irrigation operation have been: (1) to reduce the rate of increase of new areas for irrigation; (2) to shift investment priorities to rehabilitation versus new construction; (3) to increase the development of small-scale communal projects relative to large-scale national systems; (4) to improve water fee collection rates and increase the total mnount to be charged for irrigation services in.the future; and (5) to gradually shift operation and maintenance (O&M) responsibilities from NIA personnel to water user organizations through greater farmer participation in O&M system activities_ Two key policy issues become immediately apparent from these responses. The first issue raises the question of whether, in fact, there is a case for subsidizing irrigation development, and what the potential impacts of the subsidy on agricultural production, and income distribution are. If the benefits on an irrigation project are spread over a wider class of people it will be infeasible to assess charges against indirect beneficiaries and unfair to have fa,'mer-irrigators bear the full burden of repaying project costs. A fee schedule, when devised, should scale water charges only against increased net incomes arising from irrigation (as compared to rainfed conditions). An issue that is closely associated with water charges is the enforcement or collection problem. NIA has introduced several collection schemes which introd.uced institutional controls by water user associations, in both the collection of fees and the actual, operation of the system. While repayment forms part of the process of development borrowing, it does not follow that direct beneficiaries of the project must bear the full burden of recovering total project costs. This higldights tire distinction between pro/eel administration which runs and administers the project and .financial administration which, negotiates and pays for the loan. The former is the job of NIA, while the latter is the job of the Finance Ministry. IIII
PIDS DEVELOPMENT RESEARCH NEWS 4 I II I II The second issue has to do with the istration and widespread institutional need to make water charges correspond reform will be needed to go beyond more realistically to actual irrigation construction, and enhance administrative delivery services. Since full irrigation capability.e potentials are seldom achieved, programs for improving water management and for reducing inefficiencies in irrigation deIRRIGATION AND RICE livery will have to be devised. PRODUCTMTY: The problems associated with poor THE PHILIPPINE SETTING irrigation water management include: (1) incompatibilities between irrigation by: J. Sison system design and actual operation (which are reflected, for example, in the The Philippine government's efforts problem of intensive vs. extensive water toward the attainment of increased prodistribution); (2)problemsofwatertiming duction are reflected in the large investrelative to crop needs (such as the underments made in irrigation construction and estimation of land preparation duration); rehabilitation during the last two decades. (3) prevalence of unequal access to water These investments are generally made by within a system (e.g., between upstream the National Irrigation Administration vs. downstream users); and (4) inadequate (NIA), which is responsible for the superorganization for operation and maintevision, operation and maintenance of nance, irrigation systems in the country, In view of the above discussion, the A tremendous expansion in the service following policy proposals are recomarea occurred from 1950 to 1982. Howmended: ever, in spite of this rapid expansion, irri-
MAY-JUNE 1985 IIIII able in the near future unless major problems besetting the irrigation machinery of the country are resolved. These problems relate to: (1) The design and planning of systems. There is incompatibility between the irrigation system design and the actual method of water allocation and distribution, and this affects the level of operation and maintenance (O & M) in terms of activity and costs. With some systems being either underdesigned or overdesigned relative to crop water requirer ments, and the manner by which water is delivered to the benefitted areas, the magnitude of cost requirements for O & M is quite considerable. (2) Operation and maintenance. NIA's severe shortage of funds and equipment to properly maintain specific irrigation facilities, together with the lack of physical facilities, has led to the inability of individual systems to ensure adequate, equitable and timely distribution of water to farmer-beneficiaries.
1. Creation of alternative pricing strategies. Differential water charges, for example, between regions and within irrigation systems, and the provision of price support to agricultural produce are necessary to increase the ability to pay of farmer-irrigators, 2. Improvement of"operation and maintenance (O&M} of national systems. This can be done through (a) conversion of smal! and financially marginal national projects into communal systems, and
gation development in 1982 covered only 42% (or 1.32 mfllionhectares) of the total 3.1 million hectares of agricultural land which are potentially irrigable. Considerable improvements in rice yields and production were observed in the period of irrigation expansion, mainly due to complementarities among modern rice varieties, fertilizer application, and expansion, and improvement of irrigation facilities. Future rice production increases depend on the performance of individual
(3) Water management problems. Effective water management essentially requires a close coordination between NIA and the farmer-beneficiaries through
(b) gradual shifting of responsibilities for irrigation operation from NIA project managers to water-user organizations, 3. Maintenance of NIA's financial viability. To increase NIA's operating budget, new ways of improving fee collection rates (to recover part of O&M costs) will have to be devised. Also, NIA will need to
irrigation systems in minimizing operation and maintenance costs while providing dependable water delivery seivice, In many sites, the communal type of irrigation system seems to be most costeffective in terms of lower construction cost per hectare and per unit of output, as well as of lower operation and main-
arise from the complex relationship
volving technical, socio-economic and institutional factors. (4) Collection of irrigation service fees. The water ,management problems being experienced by systems, particularly 'the national systems, arising from poor O & M
explore new sources of income such as rental of equipment and other services, 4. Transition from construction-oriented agency to an O&M-oriented agency. New capabilities and skills in project admin-
tenance costs. Cropping intensity and yield are lower than with the other types of systems, but the communals are considerably less expensive to construct, Thus, they are the most effective systems in providing incremental production. Furthermore, communals (and gravity
performance has led to a lack of credibility of the NIA with farmer-beneficiaries, as reflected in the low irrigation service fees collected. Unfortunately, this has led to a vicious cycle of decreased funds for O & M -- less O & M, greater farmer frustration, and lower payment
systems in general) have relatively high
economic efficiency due to low investment, operation and maintenance costs. It should be noted that the heavy burden on irrigation of increasing Philippine rice production through improved yields in irrigated areas may not be attain-
(5) Current economic environment. The current economic environment which may persist over the succeeding years may preclude the attainment of NIA's yearly target of additional irrigated areas. Such a pessimistic forecast may be at-
poor irrigation water management include. incompatibilities between system design and practice; timing, unequal access, and quate organization... " IIIII
water inadeI IIII,
the community organizers and farmer associations. However, the success of the participatory approach in water management largely depends on: (a) the perceived need of farmers to participate in farmer associations, and Co) the perceived need of NIA regarding farmer assistance in water management. In general, the problems of efficient water management
PIDS DEVELOPMENT I II IIII
RESEARCH NEWS III I II
tributed to: (a) the shift in the government's emphasis on sectors other than irrigation; (b) delays in the release of project funds which have resulted in the delayed prosecution of a considerable number of systems, thus setting back implementation timetables; (c) the rising costs of irrigation development; and (d) NIA's increasing emphasis on rebabilitation projects as well as on the construction of communal systems,
proper use, generates problems and adverse side effects such as ecological disruption, environmental contamination, residues on food and feed, toxic and other adverse effects on man and other nontarget organisms, This two-sided nature of pesticides brings up several interrelated questions such as: i) Are we satisfied with the current state of affairs? ii) Even on the assumption that we
practice among farmers, a further study that includes the farmers' level ofapplicalion in measuring profitability may indicate more interesting implications. For example, it may show whether or not underdosing (which is the usual practice of farmers) achieves control at an economically profitable level. If so, farmers may be shown to be using a dosage level which is more economical than that made in standard recommendations.
The NIA is aware of the prevailing problems within its environment. Such awareness is reflected in the policy
are, could additional measures result in a safer envkonment? What are the constraints in our
Regulation of Pesticides and its Implernentation The FPA has been mandated with the
having a safer environment? Are we doing something about the problem? One measure calls for a more rigid evaluation of pesticides for registration, However, a hindrance to the effective implementation of this measure is the limited expertise of the Fertilizer and Pesticide Authority (FPA) with respect to evalua-
immense task of regulating and monitoring pesticide use in the Philippines since 1977. To start with, there was a low level of expertise on pesticides in both the government and private sectors, and FPA operated with limited staff support and resources. After eight years of operation, the agency is still faced with similar constraints. There is still a dire need for
Man's efforts to increase rice product-
tion. For example, the FPA does not have enough expertise in toxicology, which is a critical area for evaluation, Other measures suggested to attain a
ion to meet growing food needs is hampered by the increasingly serious problem of protecting the rice crop from pests,
safer environment with pesticide use are: (a) substitution of highly toxic cornpounds with less hazardous substitutes;
support mechanisms and experienced personnel to help develop and implement its various functions and programs. The paper reiterates the importance of the following measures to help FPA attain. its mandated objectives. Some of these are:
Through the years, alternative pest corn trol strategies have been developed and
and (b) dissemination of information about the hazardous effects of pesticides,
recommended. These varied from the use of chemicals or pesticides, various cultural practices, biological controls, and a cornbination of these. The task of this paper is to present and evaluate important issues involved in the problem of pest control, and attention is focused on two topics: (a) pesticide use, and Co) pest management in the Philippines.
and guidelines with respect to the proper handling of these compounds, Efficiency-Productivity Issue On the one hand, the application of pesticides has proven to be effective in the prevention ofcroplosses, thus assuring (to some extent) stable rice supply and price levels. On the other hand, the high cost of chemical inputs and the cost of application cannot be ignored. The following question is raised: "How economically profitable is it to prevent yield losses with pesticides?" The basic finding of the studies undertaken to resolve this question was that high levels of insect control added more to production cost than to the value of the yield. Using the ratio of added returns to added cost as a measure of economic profitability, it was found out that the lowest level of application was most profitable. "[he paper notes that the conclusion obtained in these studies is limited because it does not include the farmer's level of application. Since underdosing (applying below recommended levels) is a common
measures which the agency has adopted, and intends to adopt, to curb these problems in order to facilitate the efficient operations of the NIA irrigation machinery.o ' ' ' POLICY ISSUES ON RICE CROP PROTECTION by: C Bantilan and E. Magallona
A. Pesticide Use With regard to pesticide use, four issues are addressed as follows: (a) problems with pesticides, (b) the efficiency-productivity issue, (c) regulation of pesticide use and its implementation, (d) confidentiality vs. right to know, and (e) local manufacture of pesticides and nationalism in trade, Problems with Pesticides Pesticides have proved to be a powerful tool that can be brought to bear quickly on a pest l_opulation outbreak, However, extreme reliance on this method of pest control, coupled with the temporary nature of its effectiveness and ira-
A coordinated plan under which professionally trained and experienced personnel from agencies that are directly or indirectly involved in the pesticide industry may be tapped to mininlize the cost and maximize the efficacy of FPA; The training of laboratory and extension personnel at all levels of agricultural management; The continuing inspection and investigationofpesticideuse,licenses and marketing samples with enforcement or legal action as a final resort to ensure safe and effective programs; Closer attention to the field aspects of regulation to protect the small farmers. For example, there is a need for the establishment of necessary checks on the classification or mislabeling of pesticides.
Confidentiality vs. rightto know While the need for confidentiality in a regulatory agency is recognized especially as it applies to commercial secrets and
PIDS DEVELOPMENT I
MAY-JUNE II I
proprietary data required for registration, there are data generated by FPA, or at its instance, which cannot be justifiably labeled as confidential. For example, the vast amount of residue data on our vegetable and lake ecosystems cannot be justifiably made confidential because (1) 'there are no interests tobe jeopardized by making the information public, and (2) these data are generated by public funds so that the public has the right to demand an "accounting" of this expenditure by way of having the data made public. Thus, there is a need for settling tile issue of who is supposedto decide on what things are to be kept confidential or declassifted, and on what grounds it is justified to hold these data.
need careful study include pest biology and population, dynamics; natural enemies of pests;forecast of pest population levels; and determination of economic threshold levels. In. addition training and support is needed for person.nel who can help iraplement pest management programs at the farmer's level. Finally, the development of a pest management approach which is compatible with local .resources technical skills and the small-scale labor intensive farming technology of the Philippines, should fill file gap between research and extension.o
Local Manuf'acture of Pesticides and Nationalismin 7Yade The local manufacture of pesticides has its advantages and disadvantages. On the one hand, the establishment of a local facility to manufacture pesticides could easflyleadtopricereduction as experienced
constraints . . . There is still a dire need for support mechanisms and experienced personnel to help develop and implement its various functions arm programs.. _" ,, ,,,,
At the moment, the ecotypes available are mostly of foreign origin. Obviously, the performance of these materials will differ from their performance at the place of origin, particularly if the origin has a temperate climate. Among others, the growth of azolla depends on temperature,
by Malaysia with paraquat, wherein, alocal pesticide facility can utilize the by-pro_ ducts of existing manufacturing facilities. On the other hand, the local manufacture of pesticides could be a possible source of environmental contamination problems resulting tkom by-products and wastes of the plant. The issue that needs to be settled is whether or not we are technologically prepared to inil_mize the poilution potential of a local pesticide facility so that what happened in Bhopal would not be repeated_ With. respect to the policy on natio-
AZOLLA: A POTENTIAL SOURCE OF NITROGEN FOR LOWLAND RICE CULTURE
relative humidity, sunlight water, and phosphorous; and azolla will not thrive very well unless the optimum conditions for growth are provided. The azolla programs in the Philippines has recognized these limitations by adopting shortrun measures, such as priority dissemination of the technology in irrigated areas with. relatively high levels of available phosphorous. Long-run measures should also be undertaken to maximize the benefits from the technology. The most important of these is the development of ecotypes appropriate for localconditions.
nalism in trade, a positive step that has been reiterated is for FPA and its support agencies to assist Filipino entrepreneurs in the registration of their products, and to facilitate access to available tecb.nical data and consultation services, tb.rough govermnent institutions and universities,
' ' ""' "After eight years of operation, the FPA is still faced with similar
by: E.T. Castillo, P.C. Payawal and other members of the National Azolla ActionProgram, U.P. in Los Ba_:os. Exper,-nent station results and the experience of some farmers suggest that azolla has the potential to be an important source of nitrogen for low-land rice culture. Based on available information, az.olla use can. reduce the need
for inorg.anic N, farm chemicals and labor in hand weeding, all of which contribute to increases in.the income of rice farmers, generate savings of foreign exchange from the importation of inorganic fertilizer, and help avert a possible drop in rice productivity due to inadequate application of inorganic fertilizer, B. On Pest Management Azolla technology can "also be an Pest management is a control strategy answer to the problem of supplying inthat combines chemical, biological and organic fertilizer to inaccessible areas natural agents in controlling pests in order since azolla can be produced on the farm_ to balance yield loss, environmentalsafety The application of _olla can be made to and farmer's capabilities and resources, coincide with :farm operations like land The basic idea ofpest management has preparation and rotary weeding so that gained wide acceptance but its effective its use will not entail adjustment in farm implementation has barely started in the operations, capital outlay and unwarPhilippines. There is a need to expand ranted increases inlabor input, .research and development programs on Current adopters of azolla, however, pest management systems. Areas that are generally farmers with technical II IIIII IIII III IIIIIIIIIIIII
command of rice farming. The value of today's azolla technology for less skilled farmers has yet to be documented. The most notable area in the country that has successfully adopted azolla technology on a large scale is South Cotabato, while other areas have reported limiteduse. Three types of problems have been encountered in the process of promoting the use of azolla particularly in lowland rice culture - biological., socioeconomic, and administrative. Biological. Success in the use of azolla at the farm depends to a large extent on the ecotypes available in the country_ Theoretically the limits of azolla's usefulness are defined by its suitability to local conditions.
There is a need, therefore, to expand basic research on genetic development and on the ecological implications of spreading the plant species. Socioeconomic. Farmers are rational producers; they adopt innovations provided that in their own. terms, the economics of their use is clear. So far, there have been successful users of azollawho could serve as models in the use of the technology, but the success story has not as yet involved a larger number of potential users. Also the processes involved in the successful use of azolla are not clear to many of the designated change agents. Consequently, this limits the aggressive extension of the technology. Thus, it is imperative to educate the change agents on the short- and long-run potentials of the technology for both the rice farmers
7 ! II
and the economy, other than under, standing potential users' perception of azolla. These perceptions can provide basic researchers with information that is useful in the development of appropriate technology.
should be as a very short-term measure and should be lifted as soon as possible.*
Administrative. The rate of' dissemination of the technology depends partly on the administrative structure of the
COCONUT INDUSTRY by." C. Habito
nisms to overcome past problems experienced in credit programs for rice. Seeking to supplant traditional credit sources
program. At the moment, there are two azolla programs and both perform research and extension. For efficiency and economy, there is a need to streamline the administrative structure of the programs.o
The coconut industry is currently undergoing rapid changes. Presidential Decree No. 1960 which reopened coconut oil exportation to competitive forces has just been added to thelonglist of government measures which started with Public
especially the "suki" system does not appear warranted_ These credit-marketing tie-ups have become a way of life in the coconut industry (as well as in other crop sectors) and fill a real need in the industry by providing farmers with a ready
Act 2598 in 1916, pertaining to the coconut industry, The long history of legislation at'fecting tile industry attests to its significant role in the Philippine economy, a fact which has been recognized by generations of lawmakers. Whether this significant role will be maintained in the decades
source of credit when formal credit is inaccessible for economic or practical reasons. Credit policies in the coconut industry must be--formulated on the basis of lessons learned from the experience with the rice industry. One such lesson is that credit policies in a particular crop sector cannot be taken in isolation
FERTILIZER AND PHILIPPINE RICE PRODUCTION by:A.
POLICY ISSUES IN THE PHILIPPINE
The provision of farm credit will assume even greater importance as coconut farming becomes more input-intensive as a result of the hybrid replanting and intercropping programs. This must be undertaken with new and creative mecha-
With the production of the semidwarf, fertilizer-responsive, photoperiod insensitive rice varieties in the Philippines in 1966, fertilizer became a very important ingredient for achieving high production. Recognizing the critical role of fertilizer, the Philippine government had intervened actively in the fertilizer pricing policy through direct and indirect subsidles since 1973 with the intention of
ahead rests heavily on policy directions taken today. For this reason, enlightened public discussion of policy issues within the industry is of great importance at this time.
from those in the rest of the economy, considering the scarcity of capital and the need to find the most productive uses for it. Second, it should be recognized that the problem is not so much
In production, low productivity and the resultant low incomes have been the main problems of concern. These problems have both an agronomic and a socioeconomic dimension, and govern-
one concerning interest rates, but of credit delivery mechanisms. This is the greater chaUenge that should be faced by farm credit experts. , , ,
providing cheap fertilizer to the farmers, However, except for the years 1974 and 1975, it is very questionable whether farmers had actu_y benefitted from the large amount of money spent on the subsidles,
ment policy must address both. "['henational hybrid replanting program is the appropriate response to the agronomic aspect of the problem, but it is important that its implementation be efficient (both in the technical and economic sense) as
production, low productivity and the resultant low incomes have been the main problems of concern .... these problems have both an agronomic and a socioeconomic
The effect of small changes in fertilizer prices on the amount of fertilizer
well as equitable. Changes that appear warranted in the program include:
dimension, and government must address both .... "
use by farmers is debatable. Other factors such as availability of credit, wellcontrolled water supply, palay price and fertilizer efficiency are believed to be more important in determining the level of fertilizer use by farmers. Hence, it is recommended that it would probably be better for the government to minimize its direct intervention in the operations of the fertilizer industry and instead, concentrate its efforts in strength-
1. Promotion of other hybrid varieties besides the MAWA variety which is currently the exclusive choice of the program; 2. Strategic dispersal of hybrid seednut farms among the various coconut regions of the country, using varieties best suited for each particular region; 3. Market provision of seednuts (i.e., voluntary purchase and planting by farmers), accompanied by an active nation-
The need for extension services likewise becomes even more important as the hybridization and intercropping programs make the coconut less a "lazy man's crop," and more a component .0f an intensive farming system. Share tenancy continues to be a barrier to increased productivity on coconut farms, suggesting the need for the renewal of
ening its research capabilities, in search of methods for maximizing fertilizer efficieney and alternative sources of organic fertilizer. In addition government will do well to build its training and extension
wide campaign to demonstrate the profitability of hybrid replanting; 4. Improved loan assistance to farmers who engage in hybrid replanting; and 5. Increased and continuous research
agrarian reform efforts in the industry. Any effort to improve the lot of memhers of the coconut industry must also consider the plight of the sizeable group of landless workers who have been largely
program. If direct subsidy were to be resorted to again as a policy instrument, it I III I I
to identify, develop and evaluate mising new hybrid varieties. III IIII
overlooked by government policies. Many of the policies that have affected I II II II
coconut farm incomes in recent years are directed to the trading and processing sector of the industry. The vertical Lutegration program, while originally conceived to benefit the farmers, has largely failed to deliver tangible long4erm benefits commensurate with the costs which farmers have shouldered to finance it. Reopening the coconut off industry to competitive forces seems a logical step, after the recent years' experiments with market control through UNICOM, which have failed to yield convincing benefits for the farmers who nominally own it. The attempts to promote the cooperative marketing of copra through COCOMARK have likewise failed to gain significant headway due to the farmers' preference to deal with private traders who extend advance credit, as well as the conflict of interest facing the COCOFED trader-members who are often tasked with managing COCOMARK operations, These problems suggest that cooperative marketing efforts can only succeed if the buying stations operate in the same way as traditional "suki" traders, and if these are controlled by producers themselves, UNICHEM promises long-run benefits to the industry by expanding the market for coconut products and adding more valueadded to the domestic coconut industry, However, any such benefits must ultimately redound to the farmers, and not just to the few who hold control over
try is essentially a price-taker, this is the only way to increase the income of the industry, particularly of the farmers and landless laborers who account for the _' "'" ".... In a market where the country is essentially a price-taker, increased productivity is the only way to increase the income of the industry..."
vast majority of its members. This is also a logical response to similar moves on the part of countries producing closely competing oils to coconut oil, especially palm oil and soybean oil. Long-run gains in productivity cannot translate into improved welfare for the vast majority of the members of the industry unless this is accompanied by a well-functioning market system.e ,,,,,=, , Tangible benefits could be provided to producers by simply improving their links to the market through better market information and transport facilities .... " , , , THE COCONUT REPLANTING PROGRAM
agency breeding program would definitely facilitate the speedy development of alternative planting materials if adequate financial support were available. The coconut authorities should be commended for recognizing the need to have several hybrid .alternatives for replanting. The project on Regional Testing of Promising Coconut Hybrids and Cul, tivars (PCARRD-Special Project) involves the testing of up to 10 promising coconut hybrids and one local cultivar in various locations in the country. Of the five participating institutions that entered their hybrids for testing, however, only one showed the capability to produce and distribute large quantities of seednuts in the event that its entry is picked over the others. If another agency's entry were to be found superior, there would be no mechanism for the cornmercial production of the seednuts. Thus, it is important to fill this gap as early as possible. Research results show that the performance of different hybrids varies according to location. This suggests that a given hybrid can be recommended only to a particular location/region where it performs well. The susceptibility of the foreign bybrids to strong winds observed during typhoons should serve as a warning. It is very risky to plant these in the typhoon belt. In this connection, research on the
these firms' business operations as trustees of the farmers. Thus, there is a need to
by: J. Sangalang
identification and selection of hybrids/ cultivars which can withstand strong
reexamine the granting of monopoly rights over the importation of petrochemical to UNICHEM. Tangible benefits could be provided to coconut producers by simply iraproving their links to the market through better market information and transportation facilities. Such improvements can be expected to result in better prices for farmers by helping reduce monopsony power in copra trading at the farm level. While the importance of market infrastructure and information improvements has long been recognized, there continue to be insufficient investments in these areas of the industry. A proposal is to set aside at least part of what remains of the huge sums raised by the coconut levy for these purposes, In the long-run, much depends on the industry's capability to increase its productivity. In a market where the counIIII
Results from the Pilot Hybrid Farms and PCA research centers indicate that, under recommended levels of inputs the foreign hybrids perform somewhat better than the local talls and hybrids in terms of nut and copra yield/hectare, although there are some local hybrids and cultivarswhich show promise, The University of the Philippines at Los Bafios has several tall cultivars and at least 10 dwarfs and 25 hybrid crosses; PCA has a least 39 local cultivars and around 42 hybrid crosses in their research stations. Other local institutions like VISCA and TRRC are also doing some coconut collection and breeding work. All of these institutions need support to test their hybrids and cultivars under varied environmental conditions, These institutions already have qualified personnel to conduct crop improvement work. A highly coordinated, interllIll III
winds is needed. This involves the screening of hybrids arid cultivars for a more balanced development of roots, stems, leaves, and bunches, and the anatomical characterization of the strength of the fibers of their leaf petioles. The abandoned pilot farms are appropriate sites to observe the performance of the hybrids under the level of managemerit provided by the farmers. The pest and disease reactions of the palms in these abandoned farms should be monitored regularly. No one knows when a new or unusual disease may appear on those palms and .regular observation can provide an immediate warning. Existing data indicate that the foreign hybrids perform relatively better than the local tall cultivars and hybrids given optimum cultural management practices. They were not tested, however, under varied environmental conditions. IIIII I I
This kind of research is indeed of high priority since we need to identify the planting materials that are appropriate to the low levels of inputs that are likely to be used by farmers, Should the government proceed with the replanting program using the foreign hybrids, a mechanism to support the input needs (fertilizers, pesticides, etc.) of the hybrids must be instituted. With the present tight economic situation, this might be very difficult to provide.* ,, =,
InIII i li
The sugar industry, which is one of the country's oldest and most important industries, has received considerable government attention, regulation and support. There are two distinct periods of policy environment after World War II: first, the years preceding 1974, and second,
national trade. Although lOng-term contracts made in 1980 with foreign buyers proved beneficial, earlier marketing strategies led to unprofitable sales. Heavy investment in sugar mills, for example, in the mid-1970s, resulted in unprofitable milling capacity. Recent domestic and international developments suggest the declining irnportance of the sugar industry in Philippine foreign trade and its limited potential to provide growth in incomes and employment opportunities. The industry is saddled with problems of high production costs and interest rates, low sugar prices and the recent inability of NASUTRA to make full payments to planters. Furthermore, world market developments indicate that poor prices will continue to prevail in the near future, with little indication of any significant price improvement in the long-run. In view of these developments, there is a need to reduce production. At current world prices, most sugar production is unprofitable and crop diversification is
possible restructuring of the processing sector could include a government decision to reduce excess milling capacity in the inefficient, publicly-owned mills. Such mills could be offered for sale to interested domestic and foreign buyers. In summary, the most important role of the government should focus on the following areas: 1. Sale of the U.S. quota to producers and use of sale proceeds to finance programs that would avert short-tun industry adjustment problems; 2. Resolve issues related to" land reform and credit problems to encourage diversification among sugarcane faims, 3. Provide market information and infrastructure to enable producers to make sound production and marketing decisions and improve the marketing system in general; and lastly, 4. Fund research to improve farm and processing productivity and sugar output diversificatione , ,,,, ,,
1974 and thereafter. During the first period, government intervention consisted primarily of policies that governed sugar trade with the U.S. After 1974, the government assumed more direct control of the industry through full takeover of domestic and export marketing,
essential to counteract the potential negatire consequences of reduced sugar production. Diversification of some form (e.g., intercropping, diverting some sugar lands to the production of other crops, or sugarcane-livestock integration) could resuit in higher production value per hec-
A CALL FOR INCREASED SUPPORT FOR AGRICULTURAL RESEARCH AND IMPROVEDPUBLIC ADMINISTRATION*
Government intervention has had varied effects. Both policy environments, though distinct from each other, had little effect on sugar productivity which has remained low. Credit policies resulted in the sugar hrdustry having the biggest share in total agricultural credit, and since the amount of the production loan was based on the planter's estimated volume of production, the large sugar planters received the bulk of sugar production credit_ On the other hand, fertilizer price policies have not been favorable to producers. On the average, farmers have paid more than the world price for fertilizer. Until 1974, sugar marketing and pricing policies were closely tied to U.S. sugar trade policies, and maintained producer prices above the world price for sugar on average. On the consumer side, government policies have reduced price variability but appeared to have a minimal effect on consumer demand, The government had mixed success in its attempts to interfere directly in interII I i
tare and has the potential to increase employment through the planting of crops that are more labor-intensive than sugar. For crop diversification to gain momentum, issues related to land reform and possible forfeiture of credit lines with banks when planters shift to nonpriority crops must be resolved, For the industry as a whole, there is a need for minimum government intervention. The recent announcement of the government to subsidize the sugar industry by paying the producers a liquidation price of P300 per picul through the Philippine Sugar Marketing Association (PHILSUMA) deprives the consumers of the benefits of low world sugar prices. It is not clear why the consuming public _ould bear the cost of the subsidy which benefits the big, efficient planters. With respect to international trade, the government .should sell the U.S. quota to producers. The proceeds of the sale could be used to finance programs that would help solve short-run dislocation problems resulting from industry adjustments. A
One "public good" that the governmerit should have provided more, but has not, is research and extension. Technology development, which calls for research and extension, is needed before agriculture becomes a vigorous leading sector of national development. Research, both agronomic and socioeconomic, is the best and, ultimately, the cheapest way to be competitive internationally and to generate (and maintain) food self-sufficiency. In a review of resource allocation to national agricultural research in Third World countries during the 1970s, conducted by the International Service for National Agricultural Research and the International Food Policy Research Institute, the Philippines ranked behind India, Indonesia, Malaysia, Korea, Bangladesh, Thailand, and Pakistan in agricultural research expenditures as a percentage of the agricultural value added (using 1980 data). The Philippine agricultural research expenditures at constant prices barely increased during the 1970s. In con-
POLICY ISSUES FOR THE PHILIPPINE SUGAR INDUSTRY by: I. Pabuayon and S. Catelo
by Ponciano lntal, Jr.
in hrdonesia, Malaysia and Thailand increased tremendously during the same
tralization it would
that the The Philippines had a indicated comparatively period_ same review also low growth of scientific staff during the decade and that the country's scientists were paid lower compared with many other LDC scientists, The adverse hnpact of the relative neglect of agricultural research in the
trol a larger portion toof handle the totaland governbodies/governments conment budget than they are now receiving. A related need is policy delinkage. There is a need to minimize the tie-in of the implicit taxing power of some national government entities with the supposed developmental function of the
Philippines can be illustrated by the following two examples. Rice research has not been a top priority of government research funding institutions, thus, fund-
entities. It would be better if explicit and implicit taxation were done within. the framework of the overall tax program of the government. Similarly, it would be
ing for rice research has been especially meager. As a result, the Philippines lost its topmost rice breeder to IRRI and
better if budgetary allocation were. undertaken within the context of the overall expenditure program of fie
Burma, and undertook only few research studies on other rice varieties that can be better suited to Philippine conditions and input availabilities. As another example, the recent success of Malaysia in propagating a higher-yielding palm 'tree (using tissue culture) cml be expected to reduce
government. Another related issue is the government's mechanism in relending foreignsourced funds. Currently, there are agencies other .than the Central .Bank, public banks, and private financial institutions wherein tbreign-sourced funds (soft
further the conrpetitivencss of Philippine coconut in the world oil market. Given that productivity increases reduce prices and, further, that palm oil is the closest competitor of coconut oil, the mediumterm prospects for Philippine coconut would be secularly declining prices and a
loans) are coursed (e.g., TRC). It is doubtful whether it would be efficacious to turn some government agencies to quasi-financial institutions. Furthermore, to the extent that the soft loans carry interest rates that are lower than prevailing market rates, and the agencies do not
lower Philippine share in the world vegetable oil market (Barker 1985). Mainly because of the 1ocational specificity of crops, Philippine agricultural
tic their lending rates to the prevailing market rates, then the government agencies can be expected to be faced with pressures to allocate the funds to "fa-
growth (perhaps more than industrial growth) requires a vigorous domestic research community. Furthermore, much of agricultural research is not patentable or cannot be internal_ed by firms; thus,
vored borrowers" even if the proposed projects yield marginal benefits based on the current market returns to capital. It would be better if foreign loans were coursed through the Central Bank to bc
government support search isnecessary,
on-lent through the financial system or coursed through some link with the
2ublic Administration. Although not strictly a "public good," one form of "intervention" which the government should do more is hnprove d public administration and more responsive administrative structures/mechanisms. Toward this end, there is a need for decen.tralization of government decisionmaking, for example, in infrastructure.
to become more effective, be advisable to allow local
(hopefully less budget processe
,, *This article i.san extension of the paper
presented, dm'ing the May 3-4 1985 Agricultural Policy Workshop held i_ U.P. Los Bafio_-
This could reduce bureaucratic red tape, allow local governments to decide on what infrastructure is needed in their localities even if the key technical expertise may come from Manila, and increase the flexibility of local governments/ â€˘bodies in dealing with distinctly local III
SEMINAR ON "A NUMERICAL GENERAL EQUILIBRIUM MODEL OF THE PHILIPPINE ECONOMY" A seminar was held recently to discuss Dr. Ramon Clarete's paper on "A Numerical General Equflibrnm Model of the Philippine Economy." Dr. Clarete is a research fellow at the Resource Systems Institute of the East-West Center in Hawaii. The study was jointly sponsored by the Philippitle Institute for Development Studies and the Philippine Tariff Coinmission. _
SEMINAR-WORKSHOP ON "AGRICULTURAL POLICY" A two-day seminar-workshop on "Agricultural Policy hnperatives" was recently conducted at the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) in U.P. Los .Bagos. Other than the Institute, the seminar is co-sponsored by the Center for Policy and Development Studies (UPLB-CPDS), the Philippine Council for Agriculture Resources Research and Development and(PCARRD), the International Rice Research Institute (IRRI) and the Agricultural Development Council (ADC). A number of papers on agriculture policies specifically focusing on rice and commodity trade practices were presented to workshop participants who belong to various agencies involved in agficulture. Attendees to the seminar were either academicians, practitioners, administrators or planners ha both private and government sectors. Majority of the papers presented are summarized in this particular DRN issue. ,, ,,, _,"_, SEMINAR ON "ECONOMETRIC FORECASTING MODEL OF THE PHILIPPINE ECONOMY" The P1DS-sponsored research project on. the "Econometric Forecasting Model of the Philippine Economy" was high-
NEDA-Makati. The study is a joint underlighted in a Montes, seminar a held in taking ofrecently Dr. Manuel visiting Research Fellow at the Philippine institute for Development Studies, a_qdDr. Rolando Danao and Dr. Dante Canlas, both faculty members of the U.P. School
iPUBLICATIONS 1. w.P, # 8301
2. W.P. # 8302 3. W.P. # 8303 4. W.P. # 8304 5, W,P. #8305 6- W.P. # 8306
Studies on the Wood Based Furniture, Manufacturing
EVALUATION 7. W.P. # 8307
OF THE GROSS INCOME TAXATION SCHEME"
8. w.p. # 830,9 9. W.P. # 8309
A presentation evaluation of the scheme was held Makati B ildin_
of the study on the gross income taxation in May at the NEDA The presenters d i¢, _u____=. _ur.n_ the seminar were Mr. Rodrigo Castelo, Mr. Cesar Magnaye and Mr. PJfredo , all from the "_"--:r, tmpp.ne National Bank. Several insights were also provided by the reactors from the Central Bank and the Mmist_ of Finance, the National Tax Research Center, and the University of the ]13)k_l;=_=-rlt]j_lp_Jlne s at Los Bafios. ,_our,s V
Leather Products and Footwear
in the Philippines,
Niceto Poblador, Adtiano
Soti_, Roy Yba5ez, and Bi ..... ido Aragon, £conomic Policies and Philippine Agriculture, Cristina C, David. Changing Comparative Advantage in Philippine Rice Production, Laurian J. gnnevehr and Arsenio M, 8alisaean. The Impact of Government Policies on Philippine Sugar. Gerald Nelson and Mercedita Agcaoili, Comparative Advantage and Government Price Intervention Policies in Forestry, John H. Power and Teresita Tumaneng, Government Expenditures of Agricultural Policies in the Philippines 1955-1980, Manuel $.J. de Leon. Economic Incentives and Comparative Advantage in the Livestock In. dusrrv_ L.iborio S. Cabaniga. An Analysis of the Economic Policies Affecting the Philippine Coconut Industry, Ramon C]arete and J. Roumasset. Economic Incentives and Comparative Advantage in the Philippine Cotton Industry, Arsenio 8allsaean.
W.P. # 8402
The Impact of Government Gerald C. Nelson.
Population Pressure, Migration and Markets: Development, Ma, Concepcion Cruz.
Tenure, Technology and Productivity of Agro-forestry Schemes. Ana Doris Capistrano and Sam Fujlsaka. Environmental Effecrs of Watershed Modificationg Wilfredo P. David.
w.P. # 8408
19. W.P. # 8501 20. W.P, # 8502
Intersactoral Capital Flows and Balanced Agro-fndustrial Development in the Philippines. Manuel S.J. de Leon. Forest Land Management in the Context of National Land Use. Adolfo v. Revilla, Jr. Policy Issues on Commercial Forest Management_ Cerenilla A. Cruz and Marian Segura-delos Angeles. Policies
on Forest Resources Utilization, Implications
Management and Cost of Watershed Reforestation: The Pantabangan and Megat Case_Jose A. Gaivez. Workshop Papers on "The Consequences of Small Rice Farm Mecha, nization in the Philippines': A Review of Welfare in the Coconot lndustry. SylviaN. Guerrero. Financing the Budget Deficit in the Philippineg Eli M. Remolona.
STAFF PAPERS 1.
An Analysis of Fertilizer Policies in the Philip* pines Cristina C. David and Arsenio M, Balisacan.
Development Finance and State Survey of Experience. Edita A. Tan.
(Printed also in J.P.D, 1981) Creditand Price Policies in PhilippineAgrieulture.
S.P. # 8203
Government Policies and Farm Mechanization the Philippine_ Cristina C. David,
S.P. # 8205
Philippines An Analysis
the Financial Crisis, Marie B. Lamberte, 18.
Output and the Trade Experience Ma. Cecilia
Erlinda M. Medalla of the Commercial
Protection for Nontraded Erlinda M. Medalla.
Qn the Use of the DRC Criterion in Selecting Projectg Etlinda M. Medalla. Monetary Aggregate and Economic Activity.
A Decomposition Analysis and Import Performance, S. Intal Jr.
Marie B. Lamberte. Effective Protection
S.P. # 8503
S, P. # 8304
Philippine Export and Terms of Trade 1965-1982. Ponciano S. I ntal, Jr.
S.P. # 8504
Taxes in Manasan. Response
Methodology for Measuring Protection and Comparative Advantage. Erlinda M. Medalla and John H. Power.
S.P. # 8505
1970s S.P. # 8401
A Study Cayetano
S.P. # 8402
S. P, # 8403
8. Lamberte. Rate
Policy in Pante, Jr,, - 7.
An Assessment of the Behavior
of Philippine W. Paderanga,
for the Philippines.
and the Philippine.¢
Definitional G. Manasan
Exercise. Exchange the
Alejandro N. Hattie, F. Florentine.
of Philippine Export 1974-1982" Ponciano
in the Philippines. F. Montes,
Experience; E. Evenson,
PIDS DEVELOPMENT I
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DEVELOPMENT RESEARCH NEWS is a bi-monthly publication of the PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES (PIDS). It highlights findings and recommendations culled from PIDS-sponsored research or related studies done by other institutions. PIDS seminars: publications, and ongoing and forthcoming projects which are of interest to policy-makers, planners, administrators, and researchers are also announced. PIDS is a nonstock and nonprofit government research institution engaged in long-term policy-oriented research. This publication is part of the Institute's program to disseminate information in order to promote the utilization of research findings. The views and facts published here are those of the authors and do not necessarily reflect those of the Institute. Inquiries regarding any of the studies contained in this publication, or any of the PIDS papers, as well as any suggestions or comments on the publication, are welcome. Please address all related correspondence or inquiries to: RESEARCH INFORMATION DEPARTMENT (RID) PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES (PIDS) ROOM 515, NEDA SA MAKATI BUILDING 106 AMORSOLO STREET, LEGASPI VILLAGE, MAKATI, METRO MANILA Entered as Second-Class Marl at the MIA Post Office on October 13, 1983. Private firms and individuals are charged for delivery and mailing services at an annual rate of P35.00 (local) or US$5.00 (foreign). el