PHILIPPI NE INSTITUTE FOR DEVELOPMENT STUDIES Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas
Vol. XXVI No.4
Editor's Notes Population, demography, incomes, expenditures, etc. These are just some of the many kinds of data that are collected, processed, and distributed by various government agencies, and are in turn accessed by various users for varied purposes.
DEVELOPMENT RESEARCH NEWS July - August 2008
Consolidating primary data collection activities under one roof
While data users have been effectively accessing pertinent data from respective data generators, the changing times and demands of globalization and innovations in communication likewise pose a challenge to our system of data collection. Hence, it is important for development planners to know whether the systems involved in the formulation of policies and programs, such as the system of primary data collection, are responsive to our changing needs or not. Such was the need for the creation of a Special Committee to Review the Philippine Sta 16
What's Inside 6
Retain fishpen/cage culture, streamline operations in Laguna de Bay: PIDS study
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Looking at the efficiency of the Philippine commercial banking sector
10 PIDS co-hosts conference on Asian economic integration 12 Philippines' sugarbowl holds seminar on agrarian reform, opens 10th PIDS Corner 14 The Corporate News: driver by profession, farmer by heart 15 The Corporate News: A friend's passing
ISSN 0115-9097
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eliable, relevant, and useful statistics are required by government in its planning, decisionmaking, and program implementation processes, especially for crafting development policies responsive to the needs of the public. The Philippine Statistical System (PSS) faces many challenges in meeting statistical information requirements for policy and planning with the current complexities in economic transactions and the changes affecting product mixes. This is due to globalization and new technologies, coupled with increasing data demands especially for statistics required in local development planning. Although the PSS meets a number of international specifications and is generally regarded very positively by the international community, there are many areas for improvements, particularly in the areas of macroeconomic and subnational statistics. Primary data collection in the Philippines should be consolidated under one agency which shall be called Statistics Philippines (STATPHIL) to improve responsiveness, coordination, reliability, timeliness, and relevance of information. Said consolidation will also promote efficient statistical operations and effective coordination without increasing the number of human resources currently available among the major statistical agencies and with less maintenance cost for field offices. This reorganization will be further aided by the passing of a proposed “Philippine Statistics Act of 2008,� both by the Senate and House of Representatives, which will consolidate all pertinent legal provisions on statistical matters as well as further reorganize the PSS. The above is one of the key recommendations of the 2007 Committee to Review the PSS after interviewing key informants, conducting focus group
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discussions with the statistical system’s stakeholders, and having regional consultations and sessions with experts. The said Committee is chaired by Dr. Vicente B. Valdepeñas, Jr., former member of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) and now consultant to the BSP. The other members are: Dr. Cielito F. Habito, Director of the Ateneo Center for Economic Research and Development; Dr. Mercedes B. Concepcion, Academician of the National Academy of Science and Technology; Dr. Isidoro P. David, Immediate Past President of the Philippine Statistical Association; and Dr. Lisa Grace S. Bersales, Professor and Immediate Past Dean of the UP School of Statistics. Background Prior to the 2007 Review Committee, an earlier committee was set up per Executive Order (EO) No. 121 on “Reorganizing and Strengthening the Philippine Statistical System and for Other Purposes,” which was issued in 1987. It aimed to make the proper changes in the organizational structures and functional duties of the PSS to achieve efficiency and effectiveness in its delivery of services.
July - August 2008
More than two decades after, though, there still remains sufficient room for improvement of the PSS. The 2007 Committee Report, for instance, highlighted the continuing insufficiency of the legal framework, with laws that are no longer responsive to the current time and environment in the country. It is amidst this scenario that the National Statistical Coordination Board (NSCB) Resolution No. 4 series of 2007 was issued to review and evaluate the PSS in order to come up with recommendations that will help it to become the effective and efficient agency that was envisioned by EO 121. To date, six major statistical agencies (MSAs) comprise the PSS. These are the NSCB, National Statistics Office (NSO), Statistical Research and Training Center (SRTC), Bureau of Agricultural Statistics (BAS), Bureau of Labor and Employment Statistics (BLES), and Department of Economic Statistics of the BSP. Because of the highly decentralized structure, said agencies conduct data production, coordination, and statistical research and training, as part of their primary functions or their administrative or regulatory functions. Committee’s recommendations After a comprehensive 9-month review, the 2007 Review Committee came up with the following proposals to address the needs of the PSS: Structure of the Major Statistical Agencies (MSAs) The STATPHIL will be established from among the current personnel from the NSO, NSCB technical staff, BAS, and BLES to take responsibility for primary data collection activities that are deemed essential for national policy and planning. Data gaps and limitations in basic data will be addressed in a timely manner with the integration of the personnel from the said agencies.
The Philippine Statistical System (PSS) faces numerous challenges in meeting the statistical requirements of the government for national policy and planning.
It will be led by a National Statistician holding the rank of an Undersecretary and will directly report to the National Economic and Development Authority (NEDA) Director-
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There is a need to enforce strict penal provisions on various statistical operations, especially on breach of confidentiality of information by parties collecting or having direct access to data, and noncompliance to survey responses. General. The National Statistician will also carry the title of Civil Registrar-General and will be joined by three deputies holding the rank of Assistant Secretary. To further improve the responsiveness of the statistical system, the BAS and BLES will have their mandates reoriented to focus on the analysis of primary data collected by STATPHIL. These agencies, as well as other statistical units and agencies in national government, will continue to compile statistics from administrative reporting systems as support to the requirements of their respective departments. More importantly, however, for the case of the consolidation of primary data collection under a single roof, efficiency will be improved due to the lower maintenance costs in the field offices. The Committee also recommends the creation of a Statistics Policy Council (SPC), a seven-person committee of experts (of statisticians, economists, social scientists, or experts from related sciences.), that would be the primary authority to promulgate policy and coordination on all matters concerning statistics in the government. The SPC, as the Committee says, will strengthen the statistical coordination structures currently under the NSCB. The SPC is charged to function as the governing board of STATPHIL. The SPC’s decision will be final and executory for all statistical processes throughout the PSS. A high-level consultative assembly of major users of statistics will be convened by the SPC every six months, as part of a feedback mechanism for the SPC and the STATPHIL. This will be composed of the NEDA Director-General, and the secretaries of the Department of Agriculture, Department of Labor and Employment, Department of Health, Department of Social Welfare and Development, Department of Education, Commission on Higher Education, Department of Interior and Local Government, and Department of
Budget and Management. Representatives from the local government units (LGUs) and private sector will also be invited. This assembly is envisioned to be the venue for STATPHIL to get feedback from the said data users on the relevance of the data that STATPHIL would generate. It will also give STATPHIL the information on emerging data requirements and whether the coordinating mechanisms are in place or not. The Philippine Statistical Research and Training Institute (PSRTI), meanwhile, is envisioned by the Committee to be the enhanced version of the SRTC. It will have inhouse research and training fellows following the model of the Philippine Institute for Development Studies (PIDS) and United Nations Statistical Institute for Asia and the Pacific. The PSRTI will be a nonstock and nonprofit government corporation attached to the NEDA. The SPC would also serve as its governing body. Legal framework There is a need to enforce strict penal provisions on various statistical operations, especially on breach of confidentiality of information by parties collecting or having direct access to data, and noncompliance to survey responses. It is seen that the proposed Statistics Act will update the already limited in scope and outdated penal provisions on statistical operations. Resources Through the years, the government’s budget allocation has been inadequate which has resulted in adverse effects in generating data, particularly in survey and census activities. Clearly, there has been no primary entity working as the champion for advocating the budget for statistics, according to the Committee report. To answer this, the Committee proposed a multi-year budgeting framework which could be attained by implementing the Philippine
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DEVELOPMENT RESEARCH NEWS
July - August 2008
Designated Statistics (PDS). The PDS would be guaranteed by legislation through the Statistics Act, with the supervision of the SPC and Congress, if needed. There should also Table 1. Selected statistics on technical personnel across the MSAs of the PSS, 2003 and 2006 Selected Statistics
2003
2006
Total Number of Personnel with
208
251
Statistics degree 141
181
Diploma
0
4
MAS/MoS
51
45
MS
14
19
PhD
2
2
1,505
1,498
BS
Total Number of Personnel without
be close coordination among the PSS national agencies in looking for funds coming from both local and foreign donors. Research and training capacity Only about one in 20 staff members of the MSAs has a degree in Statistics and only an insignificant number have doctorate degrees in Statistics (Table 1). Moreover, one out of three personnel in the MSAs may not have a degree in Statistics but have had training in the said discipline. The PSS, however, lacks the capability to upgrade its current personnel’s statistical capacity. It is thus recommended that scholarships be provided to selected PSS personnel to pursue graduate degrees in statistics. This will be done on a competitive basis for at least 100 personnel enrolling in master’s and 20 in doctorate degrees in statistics.
Statistics degree but with training in statistics Central Office
616
551
Regional Office
889
947
Total Number of Personnel with
147
93
Central Office
73
45
Regional Office
74
48
1,482
1,583
Central Office
806
765
Regional Office
676
818
Total Number of Personnel who
688
390
degree in Information Technology
Total Number of Personnel with degree in Information Technology but without training in Information Technogy
A careful reassessment of the qualifications and performance of PSS personnel, especially those holding technical positions, should be implemented. This includes evaluation of the existing workforce in relation to their various duties. Further, to help attract the best people, the possibility of exempting the would-be personnel of STATPHIL and PSRTI from the salary standardization law should be considered. The Committee Report highlighted the importance of strengthening statistical and research trainings. This could be done by developing a research track by means of the research fellowship positions at PSRTI. A mechanism for temporary secondment of statistical personnel from other agencies to the PSRTI for conducting research or training may also be developed.
attended/participated in Statistical training Central Office
602
249
Local
568
226
Foreign
34
23
Regional Office
86
141
Local
84
137
Foreign
2
4
Products and services Experts and data users have pointed to inconsistencies and contradictions regarding the data on national income accounts that are based on compilations from various data sources. There is a view that since some government agencies conduct the collection, processing, and reporting of generated data, there might be political influence in the conduct of activities. Thus, the Committee
DEVELOPMENT RESEARCH NEWS
recommends that all primary data be consolidated under the responsibility of STATPHIL. Other statistical units of concerned departments will be limited to analysis and interpretation of data. The survey activities should also be given proper clearance under the Survey Review Clearance System that the SPC and STATPHIL will institute. Moreover, the said system will prevent duplication and will ensure that best practices are enforced in the design and conduct of surveys. There will also be wide scope for improvement in the current inter-agency and multi-sectoral coordination mechanisms for addressing issues and challenges facing the statistical system. The country’s field data collection practices have been used for 30-40 years and the need to consider new data methods is necessary. Such examples are computer-assisted data collection, recent innovations in computerized data collection, web-based data collection, and real-time data capture methods. Also relevant is the strengthening of network and linkages among the private sector and industry associations. Data management, archiving, and dissemination Maintaining offsite archive locations has proved to be expensive for MSAs. Moreover, implementation of each agency’s archives had been difficult due to physical storage problems. The Committee therefore proposes a review of the archiving policies and guidelines of the NSCB Resolution No. 11 Series of 2002, giving weight to technological advancement, centralized location, and security measures. The SPC should also revise and enforce, through STATPHIL and PSRTI, the prescribed archiving systems. Meanwhile, the physical structures and facilities of some MSAs are inferior and have created a negative effect on staff retention, data accessibility to users, as well as data and personnel security. In line with this, a STATPHIL building that will house appropriate equipment crucial for quality control and effective dissemination is mandatory. To add, there is a need for a comprehensive ICT
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plan that would include the constant upgrading of appropriate hardware and software facilities to support the PSS statistical activities. Subnational statistics With the devolution resulting from the implementation of the Local Government Code in 1991, LGUs needed more information to carry out their functions. They need more disaggregated data than what the PSS can provide. However, they do not have their own statistical units or a statistical officer in their locality. At present, MSAs cannot fully support the increasing demand for statistics coming from LGUs. It is then recommended that in response to their urgent need, LGUs will be given technical assistance by STATPHIL and PSRTI to build capacities for generating comparable and sustainable statistics. They will also be trained to analyze data that would be generated locally. STATPHIL’s regional offices will be supervised by the Deputy National Statistician for Coordination and Standards. The PSRTI and STATPHIL need to further develop the linkages in the technical assistance that they provide to LGUs. In doing this, statistical standards and maintenance of data quality will be enforced since statistics generated by LGUs are wanting in that aspect. These standards will also be achieved by training and developing personnel working on statistics in the national and subnational levels. LGU's statistics personnel will need to obtain Certificates of Basic Statistical Competence from the PSRTI to ensure responsible data gathering activities. Comparison with other countries While the PSS is highly decentralized in primary data collection, countries with centralized setups as far as primary data collection is concerned such as Australia, Canada, the Netherlands, and Sweden are recognized as among the best statistical systems in the world. These countries have advisory boards that also serve as their feedback mechanisms. In the case of Canada and Australia, Secre-
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July - August 2008
Retain fishpen/cage culture, streamline operations in Laguna de Bay: PIDS study
S
hould the fishpens and fishcages in Laguna de Bay be dismantled? Current government pronouncements seem to focus on doing this, suggesting that fishpen and fishcage culture operations are the main culprit in the deterioration of the quality of the water and resources in the lake. Said dismantling and possible eventual phaseout of the fishpen and fishcage culture activities, however, may be unwarranted, according to Dr. Danilo Israel, senior research fellow at the Philippine Institute for Development Studies (PIDS). For one, studies have shown that the main causes of pollutants in the lake come from other sources and not from fishpens and fishcages. And two, stopping the operations will affect the poor who benefit from the cheap freshwater fish produced in the lake. In a forum on “Should fishpen and fishcage culture operations in Laguna de Bay be maintained, reduced, or discontinued?�, Israel noted in his presentation that there are a number of economic and social benefits that are gained from the fishpen and fishcage culture operations. The various fish varieties cultured in the lake such as tilapia, milkfish, and carp, for instance, are considered as low-value species that are usually consumed by the poor who represent majority of the Philippine population. Moreover, the operations provide jobs and livelihood for a large number of people.
What is needed, according to him, is to streamline operations in Laguna de Bay. The catch As mentioned, the main species traditionally raised in Laguna de Bay are milkfish, tilapia, and carp. Catfish culture also started recently. Carp is the fastest growing fish, followed by milkfish and tilapia. The volume of production has shown a steady increase of 10.65 percent per annum, reaching 48,187 metric tons (MT) of production in 2006 (Table 1). In terms of value, an estimated 1.8 billion pesos was earned in 2006, with an annual average rate of increase of 9.26 percent. As in volume, carp had been the fastest growing in value terms, followed by milkfish and tilapia. Employment and income contribution Jobs and livelihood are also part of the positive effects of the sector, with the employment of more than 5,000 people directly working in fishpen and fishcage culture operations in Laguna de Bay. In addition, many more people are involved in the backward and forward linkages of the industry. These include, from the input markets, the sellers of fry and fingerlings, feeds, nets, bamboos, and other inputs, while for the output markets, the consignacions (fish brokers who assist fishpens and fishcages in selling the produce for a fee), wholesalers, retailers, and other participants.
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According to Israel, the fishpen and fishcage operators in Laguna de Bay contribute to the revenue generation of the government by paying the bid price, annual registration fees and other fees that they pay to run the business. Income taxes and other forms of taxes are likewise generated from fishpen and fishcage operators, sellers of production inputs, and sellers of fish and fish products.
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Table 1. Production in fishpens and fishcages of Laguna de Bay, by species 1996–2006 (Metric tons) Year
Milkfish
Tilapia
Carp
Catfish
1996
10,779
6,990
1,295
0
19,064
1997
14,151
8,061
1,570
0
23,782
1998
13,729
7,480
4,440
0
25,649
1999
15,973
7,979
10,136
0
34,088
The other side: some problems In light of all these benefits, why is the fishpen and fishcage culture at the receiving end of complaints?
2000
13,515
10,632
10,284
0
34,431
2001
2,835
8,121
19,271
0
30,227
A fishpen is a water enclosure for the culture of fish with an area of more than one hectare, while a fishcage is a similar water enclosure with an area of one hectare or less. The Laguna de Bay Fishery Zoning and Management Plan (ZOMAP) assigned 10,000 hectares for fishpen culture and 5,000 hectares for fishcage culture at the lake. Fishpen areas are classified into corporations with maximum fishpen area of 50 hectares, fishermen cooperatives with a maximum of 25 hectares, and individuals with a maximum of five hectares. As of 2006, there are 455 registered fishpen operators and 1,599 registered fishcage operators. Both operators have consistently increased in number and areas covered have likewise steadily grown since 2000 (Table 2). Of the 455 fishpen operators in the lake in 2006, 258 or 57 percent are corporations, 164 (36%) are sole proprietors and 33 (7%) are cooperatives. A total of 10,795 hectares or 89 percent of the total area used for fishpens in Laguna de Bay were covered by corporations. Sole proprietorship covered 823 hectares (7%) while the cooperatives covered 499 hectares (4%). Fishcage operators have also increased but the fishcage areas have decreased. The average annual growth rate in the number of operators was higher for fishcages compared to that for fishpens. While the ZOMAP has indicated the fishpen and fishcage belt, hundreds of fishpen and
All
2002
8,274
8,733
17,933
0
34,940
2003
16,015
12,019
8,629
0
36,663
2004
20,766
13,543
13,337
0
47,646
2005
18,971
15,915
16,757
2
51,645
2006
16,997
15,716
15,470
4
48,187
24.63
9.854
3.49
-
10.65
Average Annual Growth Rate (%)
Source: Bureau of Agricultural Statistics (BAS)
Table 2. Number of registered fishpen and fishcage operators and area of fishpens and fishcages in Laguna de Bay, 2000–2006 Year
Fishcage
Fishpen Number of Operators
Area
(Hectares) Operators
Total Area
Number of
Area
(Hectares)
Operators
(Hectares)
Number of
2000
299
8,180
871
4,556
1,170
12,736
2001
230
7,051
1,018
1,050
1,248
8,101
2002
232
6,870
1,370
770
1,602
7,639
2003
363
10,064
1,546
854
1,909
10,918
2004
362
10,393
1,758
986
2,120
11,378
2005
365
10,174
1,808
1,111
2,173
11,286
2006
455
12, 117
1,599
998
2,054
13,115
9.91
8.40
11.55
-12.46
10.38
3.41
Average Annual Growth Rate (%)
Source: Laguna Lake Development Authority (LLDA) Note: The figures for area were rounded off so the totals may not exactly add up.
fishcage illegal structures have mushroomed in the area. These structures reduced the areas allocated for open fishing. Furthermore, navigational lanes that facilitate movements of people, goods, and services have been reduced to narrow areas because of the continued encroaching of illegal fishpen and fishcage structures.
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July - August 2008
Although Israel recognized that fishpen and fishcage culture in Laguna de Bay has also caused problems such as reduced water quality, siltation and sedimentation, invasion of alien species, and algal bloom, these could be addressed by rationalizing operations in the lake.
sociations of Laguna de Bay who said that his fellow operators are willing to cooperate to address the problem on illegal fishcages and fishpens. He also countered the claims that the overfeeding of fish results to fishkills, stressing that they follow the proper feeding schedule for their fingerlings.
There are also other problems besetting the fishpen and fishcage sectors like poaching in the areas which for some have resulted to operators hiring guards to man their properties. Limited government support is also cited by Israel as a concern of fishpen and fishcage operations.
Recommendations Israel noted that fishpen and fishcage culture operations have proven their significant economic and social contributions to the country. It is a thriving sector but it needs the help of the government, private sector, and the operators themselves, among others, to improve and address the social and environmental problems that the sector faces.
Wastes Israel reiterated that the fishpen and fishcage operations are not the main pollutants in the lake. He cited studies that point to agriculture as contributing 40 percent of pollution in the lake, 30 percent from industries, and 30 percent from domestic wastes. These findings were seconded by Mr. Edgar Manda, general manager of Laguna Lake Development Authority (LLDA). In his presentation State of the Laguna de Bay, Manda zeroed in on the effects of domestic waste pollutants in the lake. These are mostly contributed by informal settlers living in the areas bordering the lake such as the Lupang Arenda that serves as settlement for more than 52,000 families. With no decent toilets, the lake has become a huge septic tank for the wastes of these settlers. Added to this are the wastes coming from the industrial companies near the lake. All of these have contributed to fishkill. “Sixty-eight percent of pollutants found in Laguna Lake are from domestic wastes while 19 percent are from industrial wastes. Only 13 percent of wastes come from other sources, including fishpens and fishcages,� Manda said. The forum likewise gave a chance to operators themselves to air their sentiments. One is Mr. Marino Filart, president of the Federation of Fishpen and Fishcage Operators As-
To achieve this, illegal structures should be dismantled from the lake. There should also be a cleanup of decaying bamboos and other materials that have contributed to the deterioration of the waters. He added that the optimal area given for the fishpen and fishcage culture operations should also be determined. This will eliminate the claim of some sectors that the areas in use are too large. It should be done with the stakeholders to ensure that scientifically, socially, and politically valid results will be achieved. Further, more environmental research should be conducted by research agencies to address the environmental problems at the lake. An environmentally sustainable lake is crucial in meeting the livelihood and needs of its stakeholders. The national and local governments are called upon to develop alternative livelihood programs for the municipal fishermen to support their economic needs. It will also help reduce the conflict between them and the fishpen and fishcage operators. Lastly, Israel said that the government can attain positive results by strengthening its monitoring and enforcement system, and by streamlining the operations of various agencies in Laguna de Bay.CSM
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Looking at the efficiency of the Philippine commercial banking sector ver the years, the Philippine banking industry has undergone transitions especially as a result of the liberalization and Asian financial crisis in the 1990s as well as of the recent mergers and consolidation of various banks. These transformations, however, did not increase the efficiency of the commercial banking system.
O
Policy implications derived from Dacanay’s findings called for a level playing field between foreign and domestic banks. The country’s commercial banks should also consider upgrading themselves to universal banks. It would also be beneficial if the government separates itself from commercial banking activities and investments.
In a Pulong Saliksikan titled "The Efficiency of Philippine Commercial Banks," Dr. Santos Jose O. Dacanay III, professor at the University of the Philippines Baguio-Institute of Management said that both profit and cost efficiency declined after the liberalization in 1994 and after the Asian financial crisis.
Directions for future studies may delve on examining whether the inefficiencies of state banks are due to their multiple (if not conflicting) objectives or due to politics. A study on the the results of liberalization in terms of access, quality of services, and cost of other bank services would also be most welcome.
According to Dacanay, mergers and consolidations deemed to promote better quality bank services increased after the financial crisis. However, data showed no improvement in the productivity of merged parties compared with the surviving entity three years after the merger. Still, mergers and consolidations are encouraged to promote better services for the public to benefit from.
Further, it will be more useful if commercial banks create complementary databases and databanks. As a reform measure, there is also a need to push for greater transparency among regulators and banks.CSM
http://www.attardbros.com
Under the liberalization of commercial banks, foreign banks exhibit higher cost inefficiency but higher technical efficiency than domestic banks, added Dacanay, a recipient of the Thesis and Dissertation Assistance Program (TDAP) of the Philippine APEC Study Center Network (PASCN).1
1
TDAP is a financial grant open to graduate students of member institutions of the PASCN. It is open to graduate students who have completed all their academic requirements except for thesis and dissertation. Research topics should be of interest to the Asia-Pacific region.
Dr. Santos Dacanay recommends that plain commercial banks should upgrade themselves to universal banks.
DEVELOPMENT RESEARCH NEWS
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July - August 2008
PIDS co-hosts conference on Asian economic integration
T
he Philippine Institute for Develop ment Studies (PIDS) hosted the 5th meeting of the Track Two Study Group on the establishment of a Comprehensive Economic Partnership in East Asia (CEPEA). The meeting was held at the Renaissance Hotel in Makati City on April 18–19, 2008 and attended by Southeast Asian representatives together with Australia, China, India, Japan, Korea, and New Zealand, also known as the “ASEAN+6”.
CEPEA is one of two initiatives, the other being the East Asia Free Trade Area (EAFTA), which Japan launched during the Second East Asia Summit (EAS). It aims to serve as a framework agreement to liberalize tariff and nontariff barriers in the intraregional trade in goods and services and investments, in a phased manner, by 2020. It will be accompanied by an improved connectivity and trade facilitation to cut trade costs and by an economic cooperation that would narrow development gaps. Its ultimate goal is to provide a ‘seamless market’ combining all the EAS participating countries. The CEPEA launch held previously has brought all participating countries to conduct continuous studies on its possibilities. For the Philippine meeting, the group aimed at finalizing the track-two study on the proposal for the regional block.
The meeting of the Track Two Study Group on the establishment of a Comprehensive Economic Partnership in East Asia (CEPEA) was attended by (standing left to right): Mr. Datuk Merlyn Kasimir (Malaysia), Dr. Toh Mun Heng (Singapore), Dr. Suthiphand Chirathivat (Thailand), M r. Ichiro Araki (Japan), Prof. Chang Jae Lee (South Korea), Dr. Brent Layton (New Zealand), Dr. Htein Lynn (Myanmar), Mr. Sou Phalla (Cambodia), Dr. Josef T. Yap (Philippine Institute for Development Studies), Mr. Seiji Takagi (JETRO Hong Kong), Dr. Bui Truong Giang (Vietnam), and Dr. Pham Quy Long (Vietnam). Seated are (from left): Ms. Dau Win Myint (Myanmar), Ms. Mercy Oktaviani Simorangkir (ASEAN Secretariat), Mr. Jose S. Concepcion, Jr. (Swift Food Inc.), Dr. Erlinda Medalla (Philippine Institute for Development Studies), Dr. Trinh Thi Thanh (Vietnam), Dr. Prom Tevy (Cambodia), Dr. Liu Xiangfeng (China), and Dr. Khin Naing Oo (Myanmar).
PIDS President Dr. Josef T. Yap welcomed the participants to the conference, commending the intensive effort of the participating countries to address problems related to financial aspects as well as regional integration as a result of recent events, particularly the global financial turmoil. “Is CEPEA an idea whose time has come? If so, how can we make it happen?” This was a vital question posed by Department of Trade and Industry Assistant Secretary Zafrullah Masahud in his opening remarks. Asec. Masahud is also the Coordinating Officer of the Foreign Trade Service Corps of DTI. He emphasized that in evaluating stiffening competition that is apparent through new economic access points being formed, undeniably, integration is “the order of the day”.
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July - August 2008
This was followed by the presentation of Mr. Masato Miyachi, senior adviser at the Asian Development Bank (ADB), who stressed the importance and the role of monetary financial cooperation in the region. He also made a quick review of ADB’s key initiatives in the ASEAN+6 regions. Mr. Miyachi cited the ADB’s role in strengthening monetary and financial cooperation in Asia as well as the initiatives undertaken by the bank in supporting and promoting regional cooperation and integration, particularly in the Asian Bond Market Initiatives (ABMI). The first day of the conference was devoted to the discussion of the CEPEA report and executive summaries that contained the proposal to create the CEPEA. Mr. Risaburo Nezu of Japan, who sits as the group’s chair, presided the sessions. Dr. Chang Jae Lee of Korea raised the need to differentiate CEPEA from the EAFTA to avoid duplication in their frameworks. Hence, the group identified three elements that would differentiate it from EAFTA, namely: trade liberalization, facilitation of trade and investment, and economic cooperation. However, the sequencing of the said elements still needs further study and discussion. On the other hand, Dr. Nagesh Kumar of India pointed out the need for an established “regional framework” for CEPEA to avoid confusion among CEPEA member-countries that have already established bilateral and regional trade agreements with each other. As the objective of the group is, to succinctly put it, to establish what would be the largest business space in the world, the conference invited an eminent business person on the final day to present the views of the business community on the establishment of an East Asian community. Mr. Jose S. Concepcion, Jr., a leading Filipino industrialist and current Chairman of the East Asia Business Council, discussed the keys to a successful integration in East Asia. These are: 1) Addressing the need to narrow the development gap; 2) Pursuing fair market access between the developed and developing countries;
Business leader Mr. Raul Concepcion, Chairman and CEO of Swift Foods, Inc., said that the private sector is the engine of change in an economy.
3) Pursuing and integrating production network where member countries would specialize in production of parts where they have comparative advantage; and 4) Strengthening the framework to create a strong and cohesive regional financial market. Moreover, Mr. Concepcion frankly disclosed the reason many countries could not meet their targets. He stressed that the government makes all the decisions and policies that do not work simply because the private sector, which he calls “the engine of change”, has not been consulted. He emphasized that a forward-looking, dynamic private sector is critical for a country to manage the challenges of an intensive market competition for the good of all. Representatives of the participating countries agreed with the points shared by the business leader and expressed deep appreciation for the insights he shared. The Philippine stint of the CEPEA meeting added essential ideas and provided a clearer picture to the participants as they went back to their home countries to finalize the drafts assigned to them. A more defined distinction of CEPEA from the EAFTA would be an important matter that the participating countries would have to address in their next conference in Jakarta, Indonesia.APQ
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July - August 2008
Philippines’ sugarbowl holds seminar on agrarian reform, opens 10th PIDS Corner
T
he dialogue on CARP Institutional Assessment in a Post-2008 Transition Scenario continued as the Philippine Institute for Development Studies (PIDS) paved its way to the Visayas Region and hosted the Comprehensive Agrarian Reform (CARP) Seminar at the Grand Regal Hotel in Bacolod City on June 17, 2008. The discussion on the CARP focused on three major issues: land administration and management (LAM) presented by PIDS Senior Research Fellow Dr. Marife Ballesteros and Engr. Felino Cortez, former Director for Land Title Registration at the Land Registration Authority; rural development architecture presented by former Vice Chancellor for Planning and Development at the University of the Philippines Los Baños Dr. Fermin Adriano; and agrarian justice presented by Atty. Marvic Leonen, Dean of the University of the Philippines College of Law. The presence of agrarian reform stakeholders in the so-called “sugarbowl” of the Philippines—Negros Occidental—from the local government, Department of Agrarian Reform Region VI office, and most especially the farmer and landowner groups themselves, have made the seminar a very interesting forum, as each sector’s representative aired reactions and recommendations in relation to the presentations of the guest speakers. Among the farmer and landowner groups represented in the seminar are: Dagyaw ARB Center, DAMBA-PAMMBUKID, Federation of Sugar Producers, Inc. (FSPI), National Federation of Sugarcane Planters (NFSP), Negros Occidental Federation of Farmers’
Associations (NOFFA), People’s Agricultural Plan for the 21st Century Incorporated (Pap 21), and Provincial Agriculture and Fisheries Council (PAFC). Relative to the discussion on LAM, Mr. Gideon Umadhay of DAR Region VI agreed that the implementation of the CARP has been very porous in that it has so many loopholes in the records and references of the cadastral system. Despite that, he stressed some of the program’s successes in terms of uplifting the lives of some of the agrarian reform beneficiaries (ARBs). Mr. Umadhay mentioned for example, a study conducted by the Institute of Agrarian Reform and Rural Development which pointed to the higher educational attainment of the children of ARBs due to the latter's increased capacity to send them to school. Likewise notable are the higher access to credit and higher income distribution in agrarian reform communities (ARCs). Meanwhile, Atty. Julius Maestral, also from DAR Region VI, commended the study of Atty. Leonen on agrarian justice and its recommendations on ensuring efficiency of the agrarian reform law. However, in order to provide holistic agrarian justice, the DAR official stressed that cases on tenancy code should also be looked into, not just the CARP issues. Ms. Milagros Flores of the DAR Beneficiaries Development Coordinating Division (BDCD), on the other hand, emphasized the need for synchronized support services accorded to ARBs in order to achieve the ulti-
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mate goal of increased productivity and income. She said this in reaction to the statement of Dr. Adriano that the efficiency of the agrarian reform program is relatively low, with the ARCs producing only 3 metric tons/ hectare for rice and 1.6 metric tons/hectare for corn annually. Ms. Flores countered that the figures may be low when compared to those of Indonesia and Thailand because their governments have probably provided ample support to farmers in terms of crop production.
need to inculcate among farmers their obligations and duties. He also said that with or without extension of the CARP, their organization will continue because it wants to help farmers escape from poverty.
The varied views and reactions aired by the farmers and landowners gave first-hand information on the plight of some of the ARBs.
Meanwhile, the 10th PIDS Corner was inaugurated at the Bacolod City Public Library, in partnership with the Local Government of Bacolod City. Dr. Rogelio Balo, city administrator and college administrator of Bacolod City College, lauded PIDS’ move in disseminating information about its research studies to the regions. He said that the PIDS Corner is a welcome development for the city as it will provide better access to such development-oriented resources.
One is the statement given by Ms. Virgie Beches of the DAGYAW ARB Center who said that ARBs tend to survive in the first two years but later have to give up the land due to emergency and other expenses. Reacting to the DAR report that CARP gave better education and jobs to the people, she said that the lives of farmers during the hacienda system were better off as they were able to send around three of their children to high school. But when they became ARBs, they were able to send only one child to school due to poverty. This was in contrast to the statement made by Ms. Josephine Fernandez of the Office of the Provincial Agriculturist who reported that their agency has offered various support services to the ARBs in terms of irrigation, carabao dispersal, fertilizer subsidies, and capitalization for rice trading and agricultural products. From the side of the landowners, Mr. James Araneta expressed the opinion that the best productive farmers, not the poorest, should be allowed to till the lands. He noted the importance of having a business plan for farmers for them to succeed. The distribution of land must be accompanied by surveys on how to use such land productively. In other words, he said that land reform must be logical. Lastly, Mr. Efren Espallardo of the DAMBAPAMMBUKID offered a different, but equally important perspective by emphasizing the
July - August 2008
In closing, the dialogue gave an opportunity for the government representatives, landowners, and the farmers to hear each other's side to better understand one anoother and work together for a productive post-2008 CARP scenario.
Vice Mayor Jude Thaddeus Sayzon, who represented City Mayor Evelio Leonardia during the launching, likewise stressed that the PIDS Corner is a helpful resource for the city’s constituents as it contains materials related to local legislation and agrarian reform. APQ
Dr. Rogelio Balo, city administrator and college administrator of Bacolod City College; Vice Mayor Jude Thaddeus Sayzon; City Councilor Homer Q. Bais; and PIDS President Dr. Josef T. Yap, lead the ceremonial ribbon-cutting during the inauguration of the PIDS Corner at the Bacolod City Public Library. It is the fourth of its kind in the Visayas region and the tenth all over the country. Other Corners have also been launched in Luzon and Mindanao.
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July - August 2008
The Corporate NEWS Driver by profession, farmer by heart
A
lejandro P. Manalili, who has served the Philippine Institute for Development Studies (PIDS) for the past 25 years, was honored with a color ful “despedida” party on the occasion of his 65th birthday. It was literally a red-letter day as all staff members of the Research Information Staff (RIS)– his home department–wore red outfits to wish him good luck because that day likewise marked Mang Andro’s retirement from the government service. Mang A, as he is fondly called by his peers at PIDS, was jolly all day, particularly throughout the showing of a tribute video that was especially prepared for him by his colleagues. Everybody got a glimpse of the very colorful years that Mang A spent at the PIDS through pictures and messages sent in by former employees who have known him not only as a regular guy but as a close friend and a family member as well. Serving as driver to several top officials of the PIDS for many years, Mang A, during his “farewell speech,” proudly shared that his employment at the Institute has been his major lifeline in supporting his family especially the education of his children. He said he can only be grateful to the management and staff for he sees PIDS as a second home that is truly after the welfare of its employees, especially to those who have attained the “senior citizen” status while in the civil service.
One by one, he related his memorable experiences with each superior and each time, emphasized his deep gratitude. Fellow employees and bosses alike have praised Mang A for his diligence and sincere ways. PIDS Vice President Mr. Mario Feranil, who had been his superior for the longest time, recalled the after-work times they spent planting vegetables and tending animals. Dr. Gilbert Llanto, on the other hand, praised him for his positive attitude toward life and emphasized that his dashing smile will surely make his life light and easy to bear. Ms. Jennifer P.T. Liguton likewise thanked him for taking good care of her while they were on the road because as Ms. Liguton stressed, "My life depended on you." Mang A could not be happier, for he is leaving PIDS to spend more time with the things he likes the most: farming and spending undivided time with his family. In closing, he expressed his hope that he had been able to give what he could for the country, in his own little way, as a government employee. His heartfelt gratitude not only went out to his friends at PIDS, but moreover to the families of his friends who have welcomed him into their homes and have treated him as their own. Now it is time for Mang A to focus his attention to his family and his farm. He will surely be missed at the office. But then, everybody deserves this chance and so we all thank you for your kindness, and wish you all the best. Godspeed, Mang A! DRN
Mang A looks forward to focusing his full attention to his longtime passion: tending animals and growing a vegetable garden.
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DEVELOPMENT RESEARCH NEWS
July - August 2008
The Corporate NEWS A friend's passing
I
t is with sadness that we at the Philippine Institute for Development Studies (PIDS), particularly the Research Information Staff (RIS), face the reality of losing the company of our colleague and dear friend, Galicano A. Godes. Mysterious is perhaps what most of his peers would describe the Gali that they knew. He is perceived to be someone who valued his privacy very much. Occasionally, though, the ladies at the Publications and Circulation Division would catch glimpses of his other side, such as his sense of humor. Ms. Sheila Siar, his supervisor at the Division, recalls their routine break in the afternoon, talking about almost anything while eating banana cue or turon, and would notice Gali laughing silently in his workstation, amused by their conversation. There were precious moments when he would be heard commenting and even cracking a joke, which showed his hilarious side. Ms. Siar adds that as a co-worker, Gali knew his job and how to do it properly. He need not be reminded of what needs to be done. There were times when it was he who would remind her of things that need follow-ups, and would also offer suggestions on how to improve the processes in the unit. Having worked on circulation matters for a long time, 16 years to be exact, it is hard to imagine the unit without Gali. Furthermore, Gali's name has become a byword among the staff members ever since he joined PIDS in 1991. Simple and quiet as he
was, he was a favorite teammate during sports and recreation activities and would gladly accept acting or role-playing assignments which he did so well. This shy guy who hailed from Tanjay, Negros Oriental loved to spend his after office hours in a watering hole just a stone’s throw away from the office, together with his constant companions: a couple of beers, a pack of cigarettes, and a song called My Way. Yes, Gali loved to sing, and every time there was videoke during office parties, people would reserve the microphone for him so he could belt out his repertoire that everybody appreciated. Some would even say that his unspoken feelings were uttered through his songs. For his precious friends at PIDS, he seemed to have occupied a special place in their hearts. Those close to him would say that he really chose his friends with whom he shared stories about his work, faith, family, and love for movies. His friends also describe him as a hopeless romantic amidst the happy-go-lucky persona. He only talked about the one love of his life, and how he was devastated upon learning that there was no more chance for him and this one love to be together. Gali’s simplicity has made him truly special in the hearts of his friends and colleagues at PIDS. His stay in this dimension called life may not have been grand or extravagant, yet it was meaningful. DRN
Gali will surely be missed by his friends but they can only be happy for him as he is now in a much better place.
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DEVELOPMENT RESEARCH NEWS
DEVELOPMENT RESEARCH NEWS is a bimonthly
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DEVELOPMENT RESEARCH NEWS
publication of the PHILIPPINE INSTITUTE FOR
Vol. XXVI No. 4
DEVELOPMENT STUDIES (PIDS). It highlights the findings
July - August 2008
and recommendations of PIDS research projects and important
ISSN 0115 - 9097
policy issues discussed during PIDS seminars. PIDS is a nonstock,
Editorial Board: Dr. Josef T. Yap, President; Mr. Mario C. Feranil, OIC Vice-President and Director for Project
nonprofit government research institution engaged in long-term,
Services and Development; Ms. Jennifer P.T. Liguton, Director for Research Information; Ms. Andrea S. Agcaoili, Director for Operations and Finance; Atty. Roque A. Sorioso, Legal Consultant.
policy-oriented research. This publication is part of the Institute's program to disseminate information to promote the use of research findings. The views and opinions expressed 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 suggestions or comments are welcome. Please address all correspondence and inquiries to: Research Information Staff
Staff: Jennifer P.T. Liguton, Editor-in-
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July - August 2008
Reentered as second class mail at the Makati Central Post Office under Permit No. PS-570-04 NCR. Valid until December 31, 2008. Annual subscription rates are: P200.00 for local subscribers and US$20.00 for foreign subscribers. All rates are inclusive of mailing and handling costs. Prices may change without prior notice. ○
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Editor's notes...from p. 1 ○
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tistical System (PSS), which was tasked specifically to review and assess the PSS in terms of its structure, mandates, resources, products, and services. The Committee, composed of a panel of experts, employed several methodologies that are based on the principle of stakeholder participation and ownership in the conduct of the review. A series of public presentations were held to discuss the results of the said review. The Committee's recommendation that primary data collection should be consolidated under a single agency is the focus of this month’s issue of the DRN. Also featured in this issue is a PIDS-supported study that backs the call for the retention of legal and dismantling of illegal fishpens and fishcages in Laguna de Bay, and the streamlining of operations to curb the rapid deterioration of the lake. Another inside feature looks into the efficiency of the Philippine commercial banking sector.DRN
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Consolidating...from p. 5 ○
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taries from their Department of Finance or Budget and Management ensure their budget allocation from the government. Recently, India, Sri Lanka, and Malaysia conducted further restructuring in order to make their statistical systems more responsive to the present times and provide meaningful data. Thailand, on the other hand, is in the process of reviewing its statistical system. Concluding remarks The country’s economic, social, and even physical environments have been undergoing changes brought by innovations in technology, with new products and services being offered. The Committee recognizes this constantly dynamic environment that the PSS faces. Citing the weaknesses of the current system, it thus recommends that a reorganized and rationalized statistical system is the best way to generate timely, reliable, and accurate data critical in crafting development policies in the Philippines.CSM