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IV ENVIRONMENTAL CONCERNS: OF REVISITS AND NEW PARADIGM


JournalofPhilippineDevelopment Number38, VolumeXXI, Nos.1 &2, First& SecondSemesters

SUSTAINING RESOURCE USE IN UPLAND AND COASTAL COMMUNITIES: MACRO AND MICRO ANALYSES REVISITED Marian S. delos Angeles

INTRODUCTION This paper explores three aspects of sustainability in upland and coastal resources: (1) the depreciation of natural capital upon which upland farmers and artisanal fishermen depend; (2) the factors that affect the economic sustainability of resource extraction from forests, upland soils and fishery resources; and (3) the requirements for sustaining resource conservation efforts at the macro and micro levels. DEPRECIATION OF NATURAL CAPITAL Concerns about the physical decline in the natural capital base have revolved around five issues: (1) impending exhaustion of nonrenewables; (2) extraction beyond the critical limits of biological reproduction among the renewables; (3) degradation, or decline in the quality of resources; (4) impairment of on-site nonmarket services provided, such as nutrient cycling and biodiversity; and (5) negative off-site-effects, such as erosion and global warming. For purposes of this paper, more emphasis shall be placed on those concerns which have direct economic significance. Biodiversity concerns which are best addressed by other experts, are not discussed here. Various efforts have been made to estimate the economic depreciation of the natural capital base. Cruz and Repetto (1992) applied the net price


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method •for dipterocarp forests and the replacement cost approach for soil resources, and adapted the estimates of Dalzell and Ganaden (1987) for fisheries. The study concluded that resource depreciation in these sectors averaged more than 4 percent of Gross Domestic Product (GDP) during 1970-1987 and 20 percent of gross investment (Cruz and Repetto 1992:2). Subsequent•research by the Environmental and Natural Resources Accounting Project (ENRAP), Phases I and II, explored refinements of the methods used earlier, particularly to address the tendency of net price methods and replacement cost methods to overestimate depreciation, l This result is indicated in Table 1, with considerable differences in magnitude. Regardless of the estimation method, all major Philippine •natural resources experience depreciation. Moreover, contrary to popular opinion, the problem is more acute among the potentially renewable natural resources, forests and fisheries, compared with the nonrenewables, Upland soils and minerals. Concern for sustainability may be examined economically in two ways. One is to estimate net investment at the national level, with adjustments made for depreciation of both physical and natural capital. For 1988, gros s •capital formation amounted to P147.5 billion; on the other hand, depreciation of produced physical assetswas P67.2 billion while natural resource• depreciation was P2.5 billion. Thus, net capital formation or net investment amounted to P77.8 billion, a value that is nonnegative. Given some substitutability among natural resource inputs, man-made capital, and intrasectoral transfers, a positive net investment should indicate continuous enhancement of the economy's productive capacity. What should be discerned, however, is whether the trend is for net investments to increase, particularly to allow for the increasing needs of a growing population. A time path of (dis)investments that shows increases larger than population growth rates implies that future generations would not be worse off. For completeness, however, such an analysis should include human 1. The net price method which is insensitive to the lifetime of the-natural capital base (Peskin 1992), includes monopoly rent usually associated with resource use. The soil replacement • cost approach assumes that replacement is always feasible and desirable.


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TABLE 1 Natural Resource Depreciation Estimates, 1988 (In million pesos) Natural resource

Method used

Estimate

netprice

(13,064)

netprice change in asset value

(16,435) (936)

net price changein asset value

(153) (838)

replacementcost changein asset value

(5,170) (380)

usercost netprice change in asset value

(387) (32,295) (3,483)

Copper plus by-products

usercost net price change in asset value

(0.12) (3,087) 445

Gold only

usercost netprice changein asset value

(387) (29,208) (3,928)

Forestry Major and minorforestresources Dipterocarpsonly

Fisheries:smallpelagics

Uplandspils

Minerals:copperand gold

Note: Values are usedin consolidatedtable for modifiedaccounts. Source: Environmentaland NaturalResourcesAccountingProject,Phase ii.


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capital formation. The comparisons so far made underestimate the possibility of substituting human capital for natural capital. A second approach is to examine the sectoral accounts. In Tables 2a and 2b attempts are made to measure the sustainability of the forest and agricultural sectors. The numbers above the double line are the entries normally found in the standard income accounts. The entries below the double line are modifications made applying the Peskin framework currently being pursued by the ENRAP, Phases II and III.2 On the left column are ENRAP entries on the input side pertaining to (1) natural resource inputs to unmarketed subsistence household production, (2) unpaid use of air and water for waste disposal, and (3) natural resource depreciation. On the right column are ENRAP entries on the output side, including environmental damages due to air and water pollution, and unpaid, direct nature services such as recreation. Important modifications include estimates on unmarketed fuelwood and upland agriculture production, and depreciation of f0rests and _fupland soils. Significant estimates were likewise made for the waste disposal services provided by the water resources network to the forest sector -- in connection with pollution Ioadings due to upland erosion either from logging or agricultural use of sloped land. Damages that occur downstream include impacts such as reduction in the life span of dams, decrease in the irrigated land area, and reduced marine productivity due to siltation. One method of examining intrasectoral sustainability is to compare capital formation with the depreciation of both physical and natural capital to obtain net capital formation. Unfortunately, while these modified accounts attempt to incorporate environmental changes, the traditional entries for capital formation in forestry and agriculture have not been estimated. Thus, computing for net investments within the sector is not feasible as yet. Nonetheless, Cruz and Repetto (1992: 2) stressed that "in essence, the Philippine development pattern was to deplete natural resource assets in order to finance current consumption and the acquisition of relatively

2. See IRG and Edgevale (1994) for details of the accounting methodology.

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Government Failures Government has historically failed to invest in resource protection and renewal and has been remiss in inducing the private sector to invest in "public good" activities like the maintenance of mangrove buffer zones along aquaculture areas. These failures largely reflect, on the one hand, the poor financial position of the government in light of the many demands on its budget and, on the other, its own failure to capture the economic rents from resource use. Another form of government failure is in policy design and implementation. The provision of credit to resource exploitation without due attention to sustaining resource use, for example, has been pinpointed by Octavio (1983) as the cause of excessive fishing effort in the 1970s. Further, government has not reduced transactions costs by not consistently providing better information on markets, appropriate resource use technologies, and assistance in the promotion of joint decisionmaking among competing user groups. Excessive Scale of Extractive Resource Use Because of the failure to generate enough employment and income for the growing population in the lowlands, a significant number of Filipinos have moved to the environmentally fragile uplands and coastal areas, thereby accelerating the problem of soil erosion and fisheries overexploitation. At the same time, the high demand for Philippine resource:based exports such as aquaculture products has led to both intensive but highly pollutive ponds and large-scale conversion of mangrove resources for extensive aquaculture. These conditions resulted in an excessive drawdown of the natural capital stock (Figure 1 shows the behavior of the three resources under study). Forest depreciation peaked during the logging boom in the mid1970s and was highest for pelagic fisheries during the period immediately after the granting of fishing loans. The extent and forms of economic inefficiencies associated with high rates of removal in the case of forest stocks are shown in Table 2a. On the


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one hand, excess earnings which indicate a further widening of inequity were largest during the 1970s when Philippine log and wood exports were attheir peak. On the other hand, unrecorded removals indicate the magnitude of foregone tax revenues. In Table 2b we note that unrecorded removals (26.2 million eu m)accounted for more than half of the depletion of dipterocarp forests (40.5 million cu m) during 1971-88. This resulted from illegal logging, fuelwood gathering, and conversion of forest lands for extensive agricultural purposes. The Natural Resources Accounting Project, Phase I, or NRAP I suggests that 41 percent of unrecorded wood removals may have been accounted for by unregulated fuelwood gathering (DENR 1991). UPLAND FOREST

RESOURCES:

AND AGRICULTURAL

USE

Steep Philippine lands are either forested, protected for biodiversity and other uses, or tilled by upland farmers. Presented below are the benefits and costs associated with, or accruing to, different user groups and ecosystem conditions estimated with the use of "modified" sectoral accounts for the forestry and agriculture sectors as presented in Table 3. The framework adopted for these modified accounts allow for both positive and negative adjustments, in contrast to previous accounting work that focused only On negative aspects. Large Informal Sector Inclusion of the estimates 0funmarketed fuelwood gathering inthe accounts would have increased the forestry sector's output by P4.3 billion, or 30 percent more than what has been measured through official statistics at P17 billion. Using LANDSAT data to examine upland cultivation, NRAP I (DENR 1991) also computed extensive-type, agricultural cultivation in lands of slope category from 18 to 30 percent to have increased from one million hectares in 1980 to 1.28 million in 1987. These figures are on the low side since they do not capture small landholdings and areas within


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steeper lands. Nevertheless, the estimate of the value of agricultural output from these lands at P1.95 billion means that adjusted agricultural output would have been 1.7 percent higher than the official statistical value ofPl 7 billion (Table 2b). Poverty Apart from the apparent population pressure on upland and aquatic resources, there is the problem of widespread poverty. Balisacan's (1991: 6, Table 1) study of poverty incidence by farm households revealed that 83 percent of forestry workers and 77 percent of fishermen were from households with incomes below the poverty line. Both groups appear to derive at least 50 percent of their incomes from farming. Important Off-site Effects Another important concern is the downstream impact associated with degraded and deforested areas. Siltation from soil erosion and mine tailings was estimated by Ebarvia (1994) under ENRAP 1I to have resulted in the following off-site damages in 1988:P1,851 million due to reduced coral reef fishes production; P425 million in foregone rice production from the affected irrigated land; P88.6 billion from reduced fisheries in Laguna de Bay; and P58 million from the reduced life spans of the Magat, Pantabangan, Ambuklao and Binga reservoirs. Damages from siltation that may be attributed to deforestation and upland agriculture were estimated to have reached P1,426 million which parallels the depreciation estimate of both forest and upland soil resources at P1,316 million. RESOURCE

CONSERVATION

BY UPLAND

POPULATIONS

3

I

Shifting Access to Forest Lands in Favor of Small Users A shift in the patterns of forest land use by type of users occurred between 1980 and 1990 (Figure 2). The drop in the share of timber license agreements (TLA) from 73 percent in 1980 to 57 percent in 1990 was due to the 3. This section draws partly'from delos Angeles and Bennagen (1993).


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cancellation of licenses. Substitution by small-scale users of large holdings occurred during the last decade particularly through eISF, albeit at a slow rate. A slight decrease in the share of pasture lease ,,_reements (PLA) was brought about by the erosion effects of land-extensive grazing practices and the moratorium on the issuance of new lease agreements. An increase i" private sector participation in tree farming and tree planting is also wort noting. The large jump in the proportion of reforested area is attribut_ contract reforestation. As of 1991, of the 73,602 hectares reforested throug government-assisted projects, 60.3 percent were completed through con tract reforestation by nongovernmental organizations, communities, an local government units, 19.8 percent through communities in the Integratea Social Forestry Program, and 1.2 percent through the recently-formulated Community Forestry Program. In contrast, only ten years ago, government reforestation work was conducted with limited involvement of upland communities. Providing Inputs to Resource Conservation The effects of resource rehabilitation and conservation practices by upland communities on sustainability and incomes have been showcased by the Central Visayas Regional Project's Upland Agriculture Component. The range of resource rehabilitation and conservation practices by both project adoptors and nonadoptors is shown in Tables 4 and 5. Implementors pointeq" out the spread effects of the project. Francisco's study (1994) on thes, practices, made at the end of the eight-year project implementation period shows the following roles for specific factors: farm area (-), attendance il community meetings (+), and seeds distributed (+) (Table 6). The incom, effect of resource conservation is presented in Table 7 which shows large increases in the income of cooperators compared to noncooperators. Securing Property Rights That property rights need to be secure for resource conservation activitie to be adopted in the uplands is no longer debatable. Recent studies have i


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TABLE5 Adoptionof ConservationTechnologies, CentralVisayasRegionalProject UplandAgricultureProjectSites,1991 Technology

Cooperators

Noncooperators

Number Percent Number Percent to total tototal On-farmsoilconservation Agroforestry development Off-farmreforestation Uplandfishpond Microwatershed planning andimplementation

6,626 5,336 1,274 725 2,110

89 72 17 10 28

820 2,110 6,172 6,721 5,336

11 28 83 90 72

fact shown that despite the demonstration effects of an agroforestry project to noncooperators without Certificate ofStewardsh ip Contracts (CSCs), the extent and pace of adoption still differ between those with CSCs and those without. For example, information on the Jala-Jala Project in Rizal which is presented in Tables 8 and 9 depicts the considerable impacts of CSCs on social and environmental indicators (Rola 1987). In another site, Rola (1987) showed the importance of tenure, as reflected by the CSC. Reducing Information Costs The Bulalakaw Upland Development Project (Borlagdan 1987, 1991) emphasizes the importance of demonstrating the feasibility of agroforestry schemes and facilitating the exchange of knowledge among farmers and implementors through cross-farm visits. Basic information on the target participants is also important as a basis for the sharing of the benefits and costs of activities such as seedling sharing and labor sharing. The cost of formulating and enforcing contracts may also decrease by encouraging farmer participation even in the land survey activities as a


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TABLE 7

Comparison of GrossIncome BetweenCVRPParticipantsand Nonparticipants,1985-1992 (In pesosperyear) Participant Cooperator Noncooperator

1985 4,389 5,062

1989 11,268 7,784

1992 20,843 13,633

Source: H.A. Francisco (1994) based on 1992 PIDS Survey.

means of "ensuring confidence in the survey work and in working out solutions to land-related conflicts" (Borlagdan 1987: xvi). This is critical considering that the enforcement of the CSC reveals that enforcement is problematic in terms of boundary and technical provisions (Pulhin 1987). Another important process that cannot be overemphasized is that of building community organizations. This has been found to be the most important determinant of the adoption of agroforestry schemes in earlier and more recent upland development activities (delos Angeles 1985; Aguilar 1982, 1986; and Francisco 1994). The role of government in providing sound market information likewise needs to be reemphasized. Although earlier works already underscored this gap in agroforestry work (e.g., delos Angeles 1983), this problem is still cited in recent evaluations of upland agriculture development (e.g., Francisco 1994). Thus, while numerous case studies in various sites indicate the profitability of improved upland cultivation practices, the economic feasibility of implementing them on a scale larger than the farm remains to be seen in light of market conditions. Future Directions Given numerous studies that show how feasible and privately profitable improved and soil-conservation oriented upland cultivation practices could be, it is puzzling why their large-scale adoption has not yet occurred.


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JOURNALOFPHILIPPINEDEVELOPMENT TABLE 9 Selected Regression Results of the Jala-jala Integrated.Agroforestry Program of Rizal, 1986 VARIABLE

Gross income(Y) (in pesos) TenurialStatus(XI) where 1 = with CSC

Estimated constant

Gross income(Y) (in pesos) Change in vegetation (Leucaena) (X1) Change in farm labor (X2) Change in organic content(Leucaena) area (X3) Estimatedequation * -T0.05 = 2.045 Source:Rola (1987),

Computed Coefficient T-value* of deterruination (R2)

2014

Change in erosion rate(X2) Estimatedequation

Standardized coefficient

0.64 -0,6202

-3.4376

-0.2364

-1.5082

Y = 2014 - 0.62 X1 - 0.24 X2 2494

0.54 0.351

0.114

0.673 •

3,0111

0.194

0,6419

Y = (2494) + 0.351 XI•+ 0.673X2 + 0,194 X3


DELOSANGELES: SUSTAINING RESOURCE USE

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An important clue is provided by the numbers in Table 10, which shows that it would take long for the top soil to be depleted. Even if one considers only the topmost layer, experts estimate a lifetime of 30 years for soil horizon A to be depleted (Francisco 1994). 4 In fact, upland farmers may already be (partly) replacing soil nutrients lost through plant uptake and erosion by applying fertilizer on the site. 5Thus, the erosion problem is less a concern about lost soil nutrients by upland farmers than a problem of the pollution effects on lowland receptors. As mentioned earlier, damages that occur downstream may be considerable. Continuing Subsidies for _ pland Resource Conservation Encouraging upland farmers and forest occupants to undertake conservation techniques is therefore not so much atask of convincing these users of its short-term private desirability but rather one of inducing them to behave in a socially desirable manner in the long term. In fact, during instances when labor-intensive conservation activities of households are limited and alternative income sources exist, a subsidy for labor costs should be provided, Speeding

Up Allocation

of Exclusive

of Use and Assignment

Rights to Various

User Groups

While such subsidy is already being implemented through various DENR programs, much still remains to be done. The recent cancellation of timber ,,tenses has left some 3 million hectares of residual land without any form of management. This is partly indicated in Figure 2, where the share of forest lands not under private user management increased during 1980-90. At the same time, there are various forms of claims on property rights in the uplands (e.g., Cornista et al. 1989). All of these highlight the need to accelerate the efforts already under way for reforming property rights for 4. This does not of course mean that exhaustion of soil reso


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both upland communities and the cultural minorities (Cornista 1992). The organizational work required for this appears formidable. Wallace (1993) estimate that with an average of 2,500 ha per community, more than 2,000 communities would be needed to protect the entire residual forest. For as long as the granting of exclusive user rights to specific upland areas is slow, the resources therein would always be under threat of intrusion. Cruz (1986), and Cruz and Cruz (1990) estimated that, based on figures from the National Population Census and their grouping of upland and forest communities, some 18.2 million persons occupy the uplands. 6 This represents 30 percent of the country's total population in 1990. Some 8.7 million are in forest lands, of whom 72 percent belong to tribal populations, and 28 percent are migrants. In comparison the official inventory conducted by the Forest Management Bureau (FMB) in 1989 arrived at a figure of only 4.5 million forest occupants (FMB 1993, forthcoming). This estimate is about half of Cruz's estimate of 8.7 million forest occupants. Notwithstanding the differences in forest land population estimates arising from methodological variations, there is evidence of a considerable increase in the cultivation of lands over 18percent in slope. Cruz' s estimates of the upland population imply a rate of increase of 2.3 percent per annum during 19_0-90. Assuming a monotonic relationship with upland cultivation and fuelwood gathering, this translates into a high rate of entry into forest lands. Between 1980 and 1985 alone, it is estimated that a total of 2.5 million migrants left the lowland rural and urban areas for the uplands (Cruz et al. 1992). Despite considerable reforms in forest policies, a number of policy issues remain. Foremost is the need to delineate the areas that need to be allocated for various user groups and for special purposes, including biodiversity. For as long as this is not done, forests that have a good potential for production and income generation will always be under the threat of a 6. The Philippine government classifies all lands with a slope of 18 percent and over as uplands. Cruz's estimate of 18.2 million inhabitants in uplands thus includes those in urban and alienable and disposable lands of 18 percent and over slope, in addition to those in forest lands which are under the jurisdiction of the Department of Environment and Natural Resources.


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JOURNALOF PHILIPPINEDEVELOPMENT

logging ban for one reason or another. The allocation of upland resources for special social goods should be tackled in tandem with the determination those of areas that are best allocated for production. Reexamining Goals and Prescriptions and Allowing for Flexibility The early success of pilot agroforestry projects in the Philippine uplands should not, however, make it a panacea for all forest rehabilitation efforts. In some sites, poor biophysical conditions require considerable investments before environmental impacts could be realized. In fact, there are those who argue that grasslands would dojust as well in reducing on-site erosion losses and sedimentation downstream (e.g., Hamilton 1985, cited in Fujisaka et al. 1986). _.... In other sites, high man-land ratios imply smaller land parcels to work with. This means that self-sufficiency in upland production which is often mentioned as a goal in many documents cannot be attained. It is in this context that an argument was made for "policy flexibility with respect to the maximum land area to be cultivated, particularly the marginal lands where the seven hectare limit may be insufficient" (Fujisaka et al. 1986: 355). Other dimensions should be considered as well such as the accessiâ&#x20AC;˘bility to markets of consumer goods and outlets for selling agroforestry farm products. Perhaps the other more important concern about the rapid decline in natural resources relates to foregone options from nonmarket resource values. Direct nature services provided by forest resources amounted to P 13 million (Ygrubay 1994). These were in the form of recreational amenities which were enjoyed with minimal payments. The large consumers' surplus means that there is room for imposing user charges for nature-based recreation to generate funds needed to improve the management of nature parks. Some areas also need to be set aside for biodiversity and bequest and the maintenance of ecosystem services. Under increasing populationâ&#x20AC;˘ pressure this becomes feasible only when those areas that are designated for


DELOSANGELES:SUSTAINING RESOURCE USE

497

production, whether for timber, agroforests, or plantations, are managed efficiently. Finally, the dynamics of linking community-based and communityoriented forestry efforts with large-scale, commercial activities, such as the IndustrialForest Plantation Program and large-scale logging, have yet to be examined. Favorable linkages between these two major groups of forest users need to be explored, along with interrelationshipswith upcoming user groups such as forest-based recreation seekers. COASTAL

RESOURCES

The fisheries sector has grown as a result of." (1) the increase in inputs including labor (number of fishermen, be they full-time or part-time); (2) changes in the amounts and kinds of capital (gears, motorized fishing); and (3) the clearing of mangroves for aquaculture production (Bennagen and Cabahug 1991) as shown in Table 11. Thus, while increasing rents were earned up to the late 1970s these declined and became negative in the 1980s for small pelagic fisheries (Table 12). Various evidences of stress in the ecosystem have likewise appeared, both in physical and economic terms. The decline in coral reef fisheries was attributed to damage from silt and mine tailings, destructive fishing blasting, the use of cyanide, and damaging of anchor, and coral extraction. At the same time, decreased productivity of capture and culture fisheries in Laguna de Bay is caused by increased fishing effort, and by various forms of pollution. Conditions surrounding the degradation of upland resources also apply to fisheries except for an additional complication: fish are mobile, as is the medium on which they thrive, water. Thus, the management of fugitive resources requires conditions that are specific to aquatic resources. To explore issues of improving the management and rehabilitation of fisheries, we draw from a study of an important coastal resources management project.


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Lessons from the Central Visayas Regional Project: Nearshore Fisheries Component The Central Visayas Regional Project: Nearshore Fisheries (NSF) Compoâ&#x20AC;˘nent was implemented to raise the incomes and living standards of smallscale fishermen and to improve the management of marine resources and habitats. To achieve those objectives, the project applied the following strategies: (1) introduction of various technological and resource management interventions; (2) community organizationâ&#x20AC;˘ efforts; and (3) infrastructure development. Site Management Units (SMUs) were established for each of the five NSF pilot sites in Bohol, Cebu, Negros Oriental (Bindoy and Bayawan), and Siquijor, to facilitate project implementation in the field. Salient Features and Extent of Adoption The community-based resource management (CBRM) approach hinged ol the organization of fishermen's associations (CFA) which served as entr points for the various interventions, including information disseminatio_ and training on fish habitat conservation and management. A total of 11, FAs were organized as of August 1992. Over a period of seven and a hal years (1984-91), 8,088 families in 182 barangays participated in project activities. By end of 1991, the project had nearly achieved all its physical targets, sometimes exceeding them. The overall accomplishments include: (1) the establishment of fish sanctuaries Covering 4,130 ha of coral reef areas; (2) the installation of 1,074 clusters of artificial reefs (ARs) and 244 units of fish aggregating devices (FADs); (3)the reforestation of 974 ha of mangrove areas; (4) the issuance of 1,490 mangrove stewardship contracts; (5) the introduction of mariculture in 90 ha of farm sites; and (6) the dispersal/redispersal of 132 head of livestockl High participation rates among household cooperators were recorded in artificial reef management, mangrove reforestation, and coral reef(sanctuary) management. The distribution of household participation in the various NSF activities reflected differences in the level of implementation


DELOS ANGELES:SUSTAINING RESOURCE USE

505

across the project sites. Such differences were expected due to variations in biophysical conditions, the phased expansion of the project, management capabilities, and fishermen's attitudes. Activities were also generated among the nontargetted households. Some respondent noncooperators indicated having done AR installation and mangrove reforestation in their areas on their'own initiative. â&#x20AC;˘impacts of the NSF Component Fish catch. Survey data indicate that fish catch increased after the installation of ARs. Cooperators reported, on the average, increases of 65 percent and 107 percent in the gill net and handline catches, respectively, over the pre-CVRP levels. An increasing trend in the catch also resulted from coral reef management. Sampled fishermen's associations experienced about 80 percent increases in daily catch rates after the establishment offish sanctuaries andthe minimization of illegal fishing activities. Notably, both members and nonmembers observed catch increases in the reef areas adjacent to the sanctuaries. High catch rates were also obtained in FADs or "payao" but more data are needed to assess this technology. Some fishermen attributed increases in their catch to the rehabilitated mangroves near their fishing grounds. Fishermen, cooperators and noncooperators alike, who noted decreases or no change in fish catch levels blamed the rise in total fishing effort brought about by more fishermen, more kinds of fishing gear, encroachment by commercial fishing operations, and other illegal methods in their areas. Determinants of impact. Regression analyses of the CVRPO fish catch monitoring data for 1988-91 gave some insights on the variables determining the impact of the project (Table 13). Increased fishing effort raises the catch offish corral and gill net fishing in ARs and coral reefs. On the other hand, such increased fishing effort tends to decrease the catch offish corrals near coral reefs and gill nets in the open sea. These differences may signal varying degrees of resource depletion or productivity and gear efficiency.


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Regardless of the fishing area and the gear types used, catch levels in all the project sites appear to have increased with the passage of time, except in Bohol (Table 14). This is indicativeof resouree enhancement as a result of CVRP interventions. More intensive involvement in community organization activities tends to reduce fishing effort over time (Table 15). However, the opposite is true for participation in technology/management interventions and infrastructure development. Potential gains from the interventions and easier access to the fishing grounds through better roads appear to have resulted in higher fishing effort. Those empirical results indicate the urgent need to regulate access to the near-shore fisheries to maintain the gains from enhanced fish productivity. A more thorough biological stock assessment over time will provide the scientific basis for determining the optimum level of fishing effort which fisheries can sustain. lncome effects. The mean incomes of cooperators and noncooperators increased during the project period and came close to breaking the poverty threshold barrier, but changes for the better in the quality of life are not yet readily apparent. From 1985 to 1988, the annual increase in real income averaged 27 percent among the cooperators and only 11percent among the noncooperators. While the increases continued during 1988-91, cooperators' income rose by 10 percent and that of the noncooperators' by a higher 23 percent. It appears that nonexclusive access to the fisheries has resulted in the capturing of the larger portion of the gains from CVRP by nonparticipants. Thus, by 199I, seven years after the project started, the gross fishing income of noncooperators was higher than that of project cooperators (Table 16). Measurements of the potential benefits from mangrove reforestation were not feasible because of poor growth and yield data on the replanted areas, the high mortality rates in some sites, and the nonreporting of household consumption of gathered aquatic products (crustaceans and bivalves). However, more direct contributions to future income increases were expected to accrue to CVRP participants with mangrove stewardship contracts.


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TABLE 15 Regression of Fishing Effort On Nearshore Fishery Project Activities and Time, Selected Cases from Fish Catch Monitoring Data, 1988-1991 Independent variable Intercept Communityorganization(CO) Index Nearshorefisheriestechnology index(NSF) InfTastructure index(!NF) Time (t)

Mean values

Coefficient

T-value

426.6

0.403 -1.471

-1.907"*

613,3

0.614

3,155"**

94,4

1.176 -0.528

1,734** -2.290***

AdjustedR2 = 0.1134 F = 3.142 *** Notes:

Equationestimatedis log (Effort,in man-hoursper fishingtrip) = a + b log(CO) + c log (INF) + d log(NSF) + e log(t) Based on data on 35 fishermenwith dailyobservationsgreaterthan 100 cases per year, and observedfor at leasttwoyears. (Source:CVRPO FishCatch MonitoringData). CO, NSF & INF data from relevantscoresin Table 3 of delosAngeles and Pelayo (1993) based on fisherman'sresidence, as observedfrom the CVRPO 1991 HouseholdProfile.

Source: DelosAngelesand R. Pelayo (1994), based on 1992 PIDS Survey.


DELOSANGELES:"SUSTAINING RESOURCEUSE

511

TABLE 16 Tests for Differences in Gross Fishing Income Central Visayas Nearshore Fishery Project Participants vs. Nonparticipants, 1991 MEAN INCOME (s.d.), in current pesos n I|IBI

Cooperators ii

vs.

NonCooperators

Tvalues

Conclusion

i|

All sites

75

20,946 (18,338)

<

28,235 (20,961)

(16) significant at _ =. 10

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18

24,589 (12,179)

<

25,641 (9,306)

(0.2015)

n.s.

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16

28,642 (27,510)

>

23,442 (22,413)

0.4145

n.s.

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15

16,188 (14,778)

<

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(2.2519)

significant at _ = .05

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26

16,703 (17,541)

<

25,939 (18,867)

(1.2929)

significant at _ = .10

Source:delosAngelesand R. Pelavo_1994_.basedon 1992 PIDS Survev.


512

JOURNALOF PHILIPPINEDEVELOPMENT

The noncooperators seemed to depend more on fishing as their main livelihood, while cooperators needed more income from other sources to cover their household expenditures. The net cash income from fishing accounted for onlY 65 percent of the total net cash income among cooperators, compared to 82 percent among noncooperators. Major Concerns Regulating pollution into water ecosystem s . Damage from pollution into water resources cause considerable economic losses. For example, the decline in productivity of reef fisheries due to erosion from upstream resulted in foregone outputs 0fP1.8 billion in 1988. Fisheries in Laguna L_ike likewise experienced losses amounting to P88.6 million. An investigation of the costs and benefits from intensified pollution control in Metro Manila to prevent further deterioration of Laguna de Bay indicates that avoidance of pollution damage of P900 million per year warrants spending an additional P126 million or to P225 million per year during 1993-2000 (delos Angeles and Pabuayon 1994). Among the protected current uses of the Bay, fishery gains constitute 98 percent of the total. Regulating fishing effort. Padilla (1994) estimated various indicators for small pelagic fisheries under alternative conditions: maximum sustainable yield (MSY), economic sustained Yield (MEY), and open access fisheries (OAF). The results presented in Table 17 show the inferior open access situation: low catch and revenues, dissipated (or zero) rent to accommodate the largest number of fishermen.


DELOS ANGELES: SUSTAINING RESOURCE USE

513

TABLE17 Valuesof KeyFisheryIndicators at OpenAccess,MSYandMEY

Fishingeffort Catch(tons) Revenues(millionpesos) Rents(millionpesos)

Openaccess

MSY

MEY

537,900 457,000 5,958 0

294,000 573,000 7,462 7,055

261,600 569,000 7,414 7,128

Note:

MSY- Maximum sustainable yield MEY- Maximum economic yield Source:Padilla(1994).

CONCLUDING REMARKS There are important relationships between upland and coastal ecosystems that require a coordinated management of these resources. Table 18 shows that uplands and poor households are major sources of water pollution. Coastal areas continue to be the destination of surplus labor, thus resulting in population pressure. The rehabilitation of coastal and upland ecosystems thus requires tackling population movements and assessing potential income gains from the resources therein. A major direction that should be explored is the granting of exclusive stewardship rights to specific ecosystems in lieu of the commodity-specific licensing system that has characterized the private use of natural resources. Commodity-specific licensing (e.g., licensing of logging, issuance of permits for the gathering of rattan and fuelwood, etc.) has resulted at best in piecemeal approaches to management. At worst, it has caused the shirking of responsibilities among user groups, and led to administrative difficulties and inequitable arrangements.


514

JOURNALOF PHILIPPINEDEVELOPMENT TABLE 18 Top Users of Waste Disposal Services Provided by Water, 1988

PSIC

Pollutant/sector

HH 12 31 32

BOD5 Householdsector Livestock,poultryand otheranimalproduction Food,beveragesand tobacco Textile,wearingappareland leatherindustry

59.0 31.8 7.0 0.9

91 12 21 HH 31 41

SS Publicadministrationand defense(urbanrun-off) Livestock,poultryand otheranimalproduction Metallicore mining Householdsector Food, beveragesand tobacco Electricity

46.7 27.1 13.6 10.2 1.1 0.9

91

N Publicadministrationand defense

11 12 HH 31

(urbanand forestland run-off) Agriculturalcrops production Livestock,poultryand otheranimal production Householdsector Food,beveragesand tobacco

56.1 17.1 13.7 11.6 1.5

P Publicadministrationand defense (urbanand forestlandrun-off) Householdsector

56.1 11.6

91 HH Note:

% Share to total effluents

Dischargesof toxicwater pollutantswere estimatedfor relevantfactors as follows: PSIC 211: Hg - 200 MT/yr PSIC 323: Cr- 79 MT/yr; Sulfides- 159 MT/yr PSIC 331: Phenols- 33 MT/yr PSIC 351,352 and 356:P205 - 33,365 MT/yr; F-14,829 MT/yr; SO4 - 108,833 MT/yr PSIC 353: Sulfides- 25,719 MT/yr; Phenols- 33,700 MT/yr; TOC _ 1232,719 MT/yr


DELOSANGELES: SUSTAINING RESOURCEUSE

515

TABLE 18 (continued) PSIC 363:SO4 - 8,912 MT/yr;K - 7,949 MT/yr PSIC 371:SO4 - 498 MT/yr;Ammonia- 181,804 MT/yr; Chlorides- 238 MT/yr PSIC 411: Chromium- neg.;Zn - neg.;Ni - neg. Totals(in MT/yr): Cr - 79; Sulfides- 25,878; Phenols- 33,733; P205 _ 33,364; FIourides- 14,828; SO4- 118,244; TOC * 1,232,718; Ammonia- 181,804; K - 7,949; Chlorides- 238; Zn & Ni - negligible Source: Environmentaland NaturalResourcesAccountingProject,Phase II, September1994.


516

JOURNAL OF PHILIPPINE DEVELOPMENT

BIBLIOGRAPHY

Balisacan, A.M. "Dynamics of Rural Development; Linkages, Poverty, and Income Distribution." Working Paper Series No. 91 -15. Makati: Philippine Institute for Development Studies, 1991. trker, R. "Natural Resources Management Program Objectives, Procedures, Progress: An Outsider's Perspective." Short-Term Consultancy Report, NRMP-Monitoring and Assessment Component Report 9211. Winrock International Institute for Agricultural Development, 16 August-5 September 1992. Bennagen, M.E.C. and D.M. Cabahug Jr. "Mangrove Forest Resources Accounting." Natural Resources Accounting Project (NRAPPhase I), Final Report, Vol. 2. Manila, Philippines, 1991. Cruz, M.C., C.A. Meyer, R. Repetto, and R. Woodward. Population Growth, Poverty, and Environmental Stress." Frontier Migration in the Philippines and Costa Rica. Washington, D.C.: world Resources Institute, 1992. Cruz, W. and R. Repetto. The Environmental•Effects of Stabilization and Structural Adjustment Programs: The Philippine Case. Washington, D.C.: World Resources Institute, 1992. Dasgupta, P. and Karl-Goran Maler. Poverty, Institutions, and the Environmental-Resource Base. World Bank Environment Paper Number 9. Washington, D.C.: The International Bank for Reconstruction and Development/Tile World Bank, 1994. delos Angeles, M.S. and R. Pelayo. "Impact Evaluation of the Central Visayas Regional Project: The Nearshore Fisheries Component." In • Pefialba et al. Impact Evaluation of the Central Visayas Regional Project Phase I (CVRPI). Discussion Paper Series No. 94-22. Makati: Philippine Institute for Development Studies, 1994. delos Angeles M.S. and E. Rodriguez. •"Measuring Benefits from Natural Resource Conservation: The Case of the Central Visayas Regional Projects-l." Working Paper Series No. 92-03. Makati: Philippine Institute for DevelopmentStudies, 1992.


DELOS ANGELES:SUSTAINING RESOURCE USE

517

delos Angeles M.S. and I.M. Pabuayon. "Economic Valuation of Impacts of Environmental Degradation in Laguna Lake." Phase I Study Report submitted to the Metro Manila Environmental Improvement Program with funding assistance from the World Bank and the U.N. Development Programme. Manila: Policy and Development Foundation (PDFI)/ Resources, Environment and Economics Consultants, Inc. (REECs), 1994. Francisco, H.A., F.K. Mallion, and Z.M. Sumalde. "Economics of Dominant Forest-Based Cropl_ng Systems in Mount Makiling Forest Reserve: An Integrative Report." Environment and Resources Management Project-Development Action Plan-Makiling Forest Rese4;ve.UP Los Bafios: Institute for Environmental Science and Management, 1992. Francisco, H.A. "Impact Evaluation of the Central Visayas Regional Project: the Upland Agriculture Component." In Pefialba et al. Impact Evaluation of the Central Visayas Regional Project Phase I (CVRPI). Discussion Paper Series No. 94-22. Makati: Philippine Institute for Development Studies, 1994. â&#x20AC;˘ "Accounting for Depreciation of Upland Soil Resources." Final Report prepared for the Philippine Environmental and Natural Resources Accounting Project, Phase II (ENRAP II), 1994. International Resources Group (IRG) and Mandaila Agricultural Develo pment Corporation (Madecor). Executive Summary, The Philippine Natural Resources Accounting Project, Phase I. Report prepared for the Depa_ment of Environment and Natural Resources with assistance from the U.S. Agency for International Development, December 1991. International Resources Group (IRG) and Edgevale Associates. Main Report, The Philippine Environmental and Natural Resources Accounting Project, Phase II. Report prepared for the Department of Environment and Natural Resources with assistance from the U.S. Agency for International Development, March 1994. Kummer, D.M. Deforestation in the Postwar Philippines. Chicago: University of Chicago Press, 1992.


518

JOURNAL OF PHILIPPINE DEVELOPMENT

Llanto G.M. and M. T. Magno. "Credit Markets in the Fisheries Sector Under CARP: A Review of Literature and Conceptual Framework." Working Paper Series No. 91-11. Makati: Philippine Institute for Development Studies, 1991. Padilla J.E. "Depreciation of Small Pelagic Fisheries in the Philippines." Final Report prepared for the Philippine Environmental and Natural Resources Accounting Project, Phase II (ENRAP II), 1994. Pefialba, L.M., M.S. delos Angeles and H.A. Francisco. "Impact Evaluation of the Central Visayas Regional Project Phase I (CVRP I)." Discussion Paper Series No. 94-22. Makati: Philippine Institute for Development Studies, 1994.


Highlights of Discussion

SUSTAINING RESOURCE USE IN UPLAND AND COASTAL COMMUNITIES

It may not be desirable to target for pollution control all the time. Given limited resources, one must prioritize areas where the damage or benefits from pollution control are greater than the cost of pollution control. If, for instance, the government were to invest its next million pesos to clean up certain rivers, it would be advisable for it to spend tile money on some rivers, rather than on Pasig River which can already be considered as practically "dead". The pure environmentalists may not agree with this totally, but if you would be guided by efficiency in allocating resources, then you start to see the wisdom of selective pollution control. In Germany, for instance, the government decided which rivers should be saved and kept very clean for everybody to enjoy, and which to remain "dead" or to be used for waste disposal. The government, of course, should not be the sole actor in deterring degradation and encouraging rehabilitation of resources. There are positive effects of having cooperators in some resource areas. It has been shown that local people can work very effectively in terms of community resource management. Government, however, should still be at the helm to disseminate information and orchestrate the different activities of the cooperators. How does one determine whether the benefits of pollution control outweigh its costs? The study painstakingly examined the state of affairs of different activities -- households, government, industry -- to the extent of how they produce waste and how they manage their waste. The value of waste


520

JOURNAL OF PHILIPPINEDEVELOPMENT

disposal services provided freely by air and water, was then estimated by the cost of additional pollution control to reduce uncontrolled emissions and discharges. Damage from pollution was estimated using another data set. This approach, which H. Peskin developed in the national income accounting context, is unique. Other effort at the U.N. use instead pollution abate-â&#x20AC;˘ ment cost to proxy for damage thatis avoided. On the other hand, the Peskin approach allows us to look at the Cost and damage separately and compare the benefits of an action. Generally, economists would advise a level of pollution control to be undertaken if the additional benefits from such control equal its added cost. If these are less, then it is better notto control any further. The measuring mechanism, however , has its defects. For one, we may not be putting the accurate value ofdamages because other factors would come into the picture. How can one segregate, for instance, the health damage due to pollution and those due to others like poor nutrition or inherent factors? Others may not report the damage, i.e., not see a doctor, and thus the damage is not included in the official accounts. The role of community-based resource management, for facilitating resource-conservation oriented technological change was emphasized. This is important particularly for open access and common-_roperty resources whose resource use conflicts are more problematic.


Sustaining Resource Use in Upland and Coastal Communities: Macro and Micro Analyses Revisited