Summaries of Studies on Forest Resources Management by Ronald Yacat

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ISSN 0115-9097 Illi

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FOREST RESOURCES MANAGEMENT .........

Introduction The summaries that follow are based on the papers presented during the PIDSsponsored seminar held in 1984 on forest resources management, whose aim was to bring together specialists in the different aspects of forestry development, in order for them to discuss critical issues for

EDITORS NOTE: This issue focuses on the existing policies and practices in the Philippine forestry sector. Recently, the urgency to conserve our forest resources has gained added importance with the recognition that efforts toward forest renewal are hampered by certain activities like destructive logging, burning and cultivation. Thus, policies geared toward resource conservation shouM aim to discourage these practices, inculcate new values and introduce better technologies, aside from encouraging participation in reforestation programs. On this note, there have been discussions on mini-

policy research in the forestry sector, Other related studies conducted by other entities involved in forest management are also summarized here.

mizing environmental degradation and improving the welfare of the upland communities as these are equally important concerns in forest resources management. Most of the articles contained herein form part of the papers presented in last year's seminar on "Economic Policies for Forest Resources Management," sponsored by the Philippine institute __ . for Development Studies.

The specific areas of forest management discussed were: 1. The Commercial

Logging Sector.

Discussions on this sector focused on the optimal sustainable yield of the forest resource, the pattern of resource use and the amount of land resmwed for forest use. Recommendations implied by the management prograna include: a) increased efforts to pilot the stumpage appraisal system as a basis for concession fees by the Natural Resources Developmerit Corporation in view of the current low charges for forest exploitation, b) research on the improvement of the

feasibility of the country's Selective Logging System (SLS) as well as on

use

alternative systems of forestmanagement, including clearcutting with immediate replanting schemes; and c) allowance of small community concerns to manage concessions if proven to be as efficient as large-scale concessions. The need to pay equal attention to both the prevention of forest destruction and to forest renewal was reiterated, Related to this is the need to explore means of generating more fimds for forest renewal,

A major concern in the area of landallocation is the amount of land

that will be devoted to fuelwood, consideiing that fuelwood supply in the next two or three decades will be less than projected requirements. 2. Upland Development. The discussion here dealt on forest occupants who practice some form of shifting cultivation and who, in some cases, are involved in joint activities with the commercial sector. Some of the recommendations made in this area are: a) the need for

CONTENTS INTRODUCTION ........................... POLICY ISSUES ON COMMERCIAL FOREST MANAGEMENT ........................ THE IMPACT OF GOVERNMENT POLICIES ON FOREST RESOURCE UTILIZATION .......... THE LOG EXPORT BAN ..................... UPLAND ECONOMICS AND ECONOMIC IMPACT ANALYSIS ............................ POPULATION PRESSURE, MIGRATION AND MARKETS: IMPLICATIONS FOR UPLAND DEVELOPMENT ........................ ECONOMIC ANALYSIS OF RESOURCE CONSERVATION BY UPLAND FARMERS IN THE PHILIPPINES ............. I

[

ENVI RONMENTAL EFFECTS OF WATERSHED MODIFICATIONS ....................... TENURE, TECHNOLOGY AND PRODUCTIVITY OF AGRO-FORESTRY SCHEMES ............ FOREST LAND MANAGEMENT IN THE CONTEXT OF NATIONAL LAND USE ......... MANAGEMENT AND COST OF WATERSHED REFORESTATION: THE PANTABANGAN AND MAGAT CASE ......................

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detailed studies on upland population and migration since it has become clearer that the ever-increasing population in the uplands is becoming dependent on forest resources; b) facilitation of the current allocation of tenure or rights of access to, and use of upland resources, 3. Macroeconomic Environment of Forest Use. Efficient forest resource management requires a tie-up with an evaluation of national policy. This means ttmt ecological stability and the quality of the environment are equally important concerns in Philippine development planning. 4. Watershed Management. Apart from being a source of thnber, forest resources also perfonn die role of watershed protection. Logging activities therefore have important implications in the state of

logging system (SLS), b) the conduct of reforestation by government; c) the encouragement of industrial tree plantations by forest concessionaires, and d) the management of forest occupants, Commercial forest management in the country has mainly focused on implementing die SLS where the removal of mature or otherwise defective trees is prescribed so that an adequate number of healthy ones are left behind for a future crop of timber and forest cover. The three principal phases of the SLS are: (1) tree marking, (2) residual inventory, and (3) timber stand improvement (TSI). A recent study conducted by C. Cruz (1982) analyzed the totality of the SLS using as main criterion, the benefit-cost ratio. She later showed the feasibility of the SLS in the three logging areas exam-

the watershed.

The experiences with the

ined, even if full logging capacities were

Pantabangan and Magat Watershed grams are sufficiently highlighted Proin detail in some of the studies presented during the seminar. These experiences point out that reforestation and soil

not However, the tosubsequent phaseachieved. of TSI was not found be economically attractive in the same areas due mainly to the lag in th-ne before revenue is realized from the TSI. If there were no

Corporation of the Philippines (PICOP) tree faiining project. Thus, more cornplete studies which are relevant to the reforestation needs of denuded areas are called for and should include the estab-

conservation projects tend to be very costly (up to 915,000 per hectare.) However, the enviromnental costs of not properly managing watersheds are

allowable cut regulations, therefore, a rational logger would tend to liquidate at the fixst cut all the commercial value m an area.

lishment of infrastructure, marketing and processing facilities and the involvement of the poorer households in the area.

much greater. Comprehensive benefitcost evaluation of watershed management schemes is helpful in order to set standards for such projects â&#x20AC;˘

POLICY ISSUES ON COMMERCIAL FOREST MANAGEMENT by Cerenilla A. Cruz University of the Philippines at Los Bafios and Marian Segura-de los Angeles, PIDS Research Fellow. Working Paper Series No. 84-03 This paper focuses specifically on the issues surrounding the management of Philippine commercial forests, as it deals with forest destruction and renewal problems,

initially

from

the

that of determining the distribution of costs of degradation and of attempts at

tothe

reversing it through the selective logging system (SLS), reforestation by concessionaire, contractor, or upland residents, and management of forest occupants.

inadequate

protection

residual forests which worsens in the short-rt_n when licenses are cancelled, since illegal loggers' and kai_geros encroach on these unsecured logged-over areas, whose activities further the degradation of the environment." "'

The study

also mentions

that

the

the logger on some silvicultural and management prescriptions. There is a

plantations is highlighted. Policy implications are discussed and research prior-

need, therefore, to conduct an in-depth study of the rules and regulations relevant to the loggers,

| m

the feasibility of forest plantation management, as well as their significance on the social scale focus on the Paper Industries

".... The problem of timber overharvest is very much related

length of the cutting cycle vis-h-vis the tenure of licensees affects the decisions of

i ,

The paper likewise discusses the economics of plantation forest management. So far, the earliest studies conducted on

A common problem in the mangement of both natural and plantation forests is

private

suggested, with proper congiven to societal welfare. resource renewal and conschemes are focused on: a) enforcement of the selected

The problem of timber overharvest is very much related to the inadequate pro, tection of residual forests which worsens in the short-run when licenses are cancelled, since illegal loggers and kaifigeros encroach, on these unsecured logged-over areas, whose activities further the degradation of the environment.

sector's point of view. Likewise, the economics of conlmercial forest management for both natural forests and tree

ities are sideration Forest servation the strict

the same study, one might expect that clearcutting would appear even more profitable than the SLS especially for firms which do not intend to practice forestry as a long-term venture and would rather opt to 'lose' tbe business.

The choice of clearcutting or liquidating forests needs further inquiry given that loggers may have already chosen this as a predominant alternative. Going by ...........

Various forms of private use of forests need to be evaluated from both private and public viewpoints because of forest externalities that span across time and space. Studies on the corresponding systern of incentives to forest conservation should go hand in hand with .researches on forest national posal of technical

taxation, the effects of intertrade, specifically in the dislogs in foreign markets, and forest conservation prescrip-

tions. incidence Thus, there a need to the of isbenefits andidentify costs associated with natural forest management schemes among private and social concerns, and the effects on national and local priorities, as well as on intergenerational equity for more responsive policy formation â&#x20AC;˘

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not unidirectional. They depend on. the input and output price elasticities. One of the most important areas of future reby Gerald Nelson, Agricultural search is to begin to quantify the impact Development Council of relative price changes on the rate of Working Paper Series No. 84-04 resource depletion. The analysis of policy effects on forest The impact of government policies on land utilization entails an understanding forest resource utilization is analyzed of the relationship between the labor using two conceptual frameworks. The absorptive capacity of a unit of land mad first framework focuses on determinants the quality of land. In using this frameof resource depletion and the rate at â&#x20AC;˘ work, care must be taken in interpreting which the resource is extracted by ecothe effects of commodity specific pollnomic activity, while the second focuses cies and general macro policies on land on the impact of government policies on utilization. Macro policies in general al;land utilization, feet prices of inputs and outputs for "all The general impact of government comnrodities, more or less utfiformly, policies (either forest management poliwhile commodity specific policies (in this cies or macroeconomic policies) on case lbrest management policies) may not. resource depletion has been examined in order to apply the conceptual apthrough their direct effects on: (1) outproaches described in the study, nrore put price which has an expected effect information is needed than is currently of raising the rate of depletion with its available on the quantitative relationships corresponding increase; (2) production between inputs and outputs in forest recosts which lowers the rate of depletion source depletion. On the other hand, an when the cost of either capital or labor attempt to estimate the depletion rate is raised; and (3) discount rate whichhas response to price changes requires accua positive effect on the current rate of rate production function information in depletion because future earnings are order for government to make informed valued less. decisions on the appropriateness of poliFrom the given set of forest managecies and recommendations for future ment policies, two forest management" changes, policies have either positive or ambiThe study observes.that there is less guous effects on resource depletion, than adequate understanding of th.elinkThese are: (1) investment incentives to age between macro-policy changes mad wood processing and (2) social forestry prices .of inputs used and outputs from

mainly fforn a desire to encourage wood processing as wetl as to reduce the rate of forest destruction, On May 19, 1975, P.D. 705 was issued providing for a total log export ban effective January 1, 1976. Opposition. to the ban has been aired owing to the importance 'of the foreign exchange earnings from log exports. After all, forestly products have been, for the last 30 years, among the country's top dollar earners. Also, there was an "allegedunreadiness on thepart of existing processing plants to operate at efficient and optimal capacity levels. In addition, planners have predicted that the domestic market would not be able to absorb the processedproducts,, some representing the surplus from the .foreign market due. to a sluggish world market condition. Hence,'P.D. 865 was issued to suspend the ban and allow log exportation on a selected and limited basis. A succeeding decree, P.D. 1159 was implemented on June 11, 1979 allowing for a totallogexport not exceeding 25 percent of the 'total allowable cut. .Finally, on May 1, 1982, a complete ban on log exports was to have taken 'effect but by 1.983, the exportation of logs was resumed and the following year, logging firms were asking for the suspension of th'e export ban till another year; Tiros, since 1976, licenses to export logs were neverfully suspended. Moreover, the ban has been blamed for the closure of many wood. processing finns.

program. Investment incentives reduce the co'st of capital and often reduce the price of imported in.termediate inputs via exemption from import duties. On the other hand, social forestry programs lower the individual's discount rate, but sometimes lower the cost of capital with government subsidies. Thus, the net impact of social forestry programs on resource depletion is ambiguous, Meanwhile, ha analyzing the effects of general macroeconomic policies on resource depletion, the study viewed the effects of these policies in terms of altering relative prices: (1) between the cost of production and price of output; (2) between the price of an individual factor of production and th.e price ofthe output; (3) between prices of tradables and nontradables; and (4) between prices of im-

The implementation of quotas on the export of logs has not been successful. Figures in this study show that disparity between Philippine data on export quotas and fire actual amount of logs imported by Japan' from the Philippines, stands at about 75 percent of total Philippine log exports_ In 1979, for example, Philippine data accounted for only 63.9 percent of the actual dollar value of what is stated in Japallese data, while in 1980, the figure went down to a mere 38.3 percent. In the an',dysis of the log export ban (or quota), tile study indicates that the ban would have the same effect as imposing an export tax - except that in. the ban there is no revenue realized. Either way, the desired, effect on limiting output would be achieved. Still. the qualitative aspects of conservation goals would not be achieved unless otiler controls are imposed.

ports and exports. The study notes that in general, the net impacts of most macro policy changes in resource depletion are

forest resources. Analyses of '.linkages among macro policies, like the case ofunemployment in the formal and informal .sectors, and migration are especially Jmportant. Data collection needs include price of labor, intermediate inputs and outputs at the "farm" level, The study realizes the hnpommce of evaluating the trade-off between national financing programs that reduce resource depletion directly, or indirectly, by hacreasinglabor productivity in other areas â&#x20AC;˘

THE LOG EXPORT BAN Taken from John H. Power and Tessie D. Tumaneng [Comparative Advantage and Government Price Inten_ention PoEcies in Foresrr.)'l Working Paper Series No. 83-05 The policy on log export ban arose

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".... The real wood crisis in the future shallbefuelwood... "

Existing policies on forestry include direct controls, export taxes on logs and some processed products, quotas on log exports, subsidies on exports of processed products and sales taxes on domestic sales of processed products, As experienced, direct controls and cutting charges are better measures than the quota system as a means of limiting output. Direct controls include lhniting (and locating) concessions, together with rules and regulations about forestry practices. These controls, together with cutting charges, could serve to limit output and promote conservation goals. Cutting charges also help to reduce rents and contribute revenue to the governmerit, thus reducing the anaou_rt required from general taxation to finance forest a&ninistration, In spite of this, there appears to be widespread feelingthatthe adininistration of controls in the past has not beet_ e_: fective in meeting the conservation goals, This weakness is perhaps the reason why such. a crude policy as a ban on log exports was adopted. Similar to the quota system, a cornplete ban on log exports raises no revenue and ouly by accident would it accomplish the right output limitation. The best that could be said for it is that it would

NEWS

increasing foreign exchange earnings, Further, an advantage is seen in creating a wedge between world and domestic prices of logs, representing world elasticity of demand. In this regard, an export tax is a better instrument than an export quota (i.e, partial log export ban). The suggested first-best package to offset the penalty imposed on all exports by the industrial protection system is to remove the 4 perce:nt export tax and its replacement by a 20 percent subsidy, This has financial implications that might be disturbing, since not ord.y processed wood products, but all exports would in a sense, "deserve" the same subsidy. Also, the :implementation of this scheme might 'bring a difficult tax and transfer problem for thegovernment. The second-best approach to policy reform as proposed would include at least: a) the removal of export tax on processed wood products, b) increased forest charges, c) a possible increase in the export tax on logs, d)the elimination of quotas on log exports, and hopefully, also an improved land tax on forest concessions â&#x20AC;˘

reinforce other policies desigued to limit cutting of trees, l:Iow well it could do this depends on how effectively it is

UPLAND ECONOMICS AND ECONOMIC IMPACT ANALYSIS by Marian Segura-de los Angeles, PIDS Research Fellow. Abstract of" a chapter taken fkom a forthcoming monograph, "Upland Development h2 the Philippines," by S. Fufisaka, R. del Castillo and P. Sajisi (eds.), Agricultural Development Council, Inc. 1984.

adininistered. The present evasion of quota limitations does not promise much in this respect. Moreover, it is difficult to safeguard against corruption in the administration of a quota system, Along with similar taxes on major exports, 'the export tax on logs was instituted in 1970 as a so-called stabilization measure to accompany the floating of the peso and its subsequent depreciation, Originally scheduled to be phased out, the export tax was continued apparently for the substantial government revenue produced, The study notes a strong comparative advantage in producing logs and processing them for exports. Processing would put more domestic value added, rims

Economic researches on uplanddevelopment (UD) are still few, although important issues on the economics of UD may be observed. In general, case studies have prevailed; and there is a need to rationalize their conduct. There is a need for comparative studies among various types of uplanders in terms of a minimum set of economic variables including gross income (also imputed income), allocation of time among various activities; productivity of labor and other factors of production, This chapter analyzes the behavior of upland communities from an economist's viewpoint, as it reviews various studies on Philippineuplanddevelopment

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and examines the economic effects as well as other forms of impact brought about by planned intervention to improve the uplands. Reactions to a changing environment by the upland farmers, whether fomrally4nduced or not, are then analyzed based on research findings. Effective access to the uplands is virtually "free," and the cost of migrating into forest land and using it is very nainimal. The migrants pay neither rent nor other fees to the government_ This has contributed to the attractiveness of the uplands to migrants who have taken advantage of the increased accessibility of forest lands due to roads built by timber concessionaires and the inadequate protection of forests by goverrmaent an.d loggers. Among others, the perceived gains from upland cultivation and the displacement of lowland farmers, have also been inducing factors. A "land for the landless" policy pursued in the early fifties through the late sixties, may all have contributed to increased lowlandto-upland migration.. Eventually, overcrowding resulted and this has been manifested in shorter rotation periods and decreasing upland soil productivity. Once the cultivator discovers that soil productivity soon decreases after one to a few years of cultivation, it becomes more rewarding to shift to another field. Later, however, the possibflity of continuously using new tracts of land for field rotations diminishes due to increased competition from other forest users. Hence, the upland farmer may adopt any of the following options or combinations: (1) development of land-saving fanning technologics; (2) diversification of income sources; (3) alteration of expectation from upland production; or (4) establishment of a system of fights to the land to preserve harmonious relations among fellow upland farmers. Indeed, these options have been observed for numerous long-staying upland groups.

,, ....

The

most

economic impact for other upland projects has been generation..." .....

important documented development employment

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by econolnists yielded

et al., 1982). The factors which lead to

Philippine upland cultivation, are diagnostic. Floro (1980), Capistrano (1982) and Nguu and Corpuz (1979) explored the economics of upland famling systems in Central Luzon and Southern Tagalog. Capistrano and Floro studied uplanders in Pantabangan, Nueva Ecija; while Nguu and Coipuz investigated those in Makiling,

interesting insights on participation in upland development in the Philippines. The PICOP Tree Fanning Project in Mindanao was studied by Mindajao (1978) and involved 100 DBP-fmanced and 100 non-DBP financed tree farmers. The variables examined were initial participation, ffnancial inlpact on farmers

participation must also be looked into, specifically, tenure, credit availability education, labor availability and population â&#x20AC;˘

Laguna. The studies in general yielded

and society's cost/benefits.

information on cash income labor and capital inputs at the farm level. The Nguu and Corpuz study focused on the time allocation activities of shifting cultivators while Capistrano analyzed labor utilization, income and asset ownership inPantabangan, using correlation analyses and adopting Hayami's (1978) framework,

The participation of non-DBP assisted farmers was positively influenced by income, but negatively influenced by education and the degree of risk aversion. In the case of the DBP-assisted farmers, only land-use at the time of joining the project appeared to be a significant explanatory variable, for farmer patti-

Social forestry projects undertaken by the government, as well as agroforestry projects initiated by the private sector, have aimed to uplift the standard of living of upland communities by improvingland productivity and increasing employmentgenerating activities. Pursued with equal emphasis are largely societal goals, (i.e., to stabilize forest occupancy and prevent further forest destruction and soil erosion) at tl_e same time rehabilitaring degraded forest lands,

cipation. Farmers with larger propm_ions of their land cultivated with. agricultural crops were morehkelytojointhe projects, An examination of the factors affecting farmer participation in upland projects revealed that farmers appear to be responsive to changes in the environment, more so with knowledge gained through project implementation. Those with smaller farms and smaller incomes, however, tended to adopt soil conservation practices more easily. The effect of income may be explained further by the fact that those with higher incomes tended to be those with other income sources besides the farm. Naturally, their time was allocated more towards

The thrust of the study is upland development with greater sensitivity to the underlying causes of change, hence, the study examines in detail the extent of population pressure in Philippine upland coInmunities with respect to the conditions affecting population growth, including the broader elements of demographic stress and the cortesponding adaptive changes of upland communities. At the same time, other factors that have intervened in the relationship between demographic stress and techno-institutional .change are ideatiffed. These are: a) the influx of lowland mJgrants into upland areas, and b) the penetration of commercial markets

activities with perceived higher and quicker returns, The most important econoinic impact documented for other upland development projects has been employment generation (Aguilar 1982). For Nueva Vizcaya, 42 percent of total income consisted of wage labor while for San Pedro, Laguna a higher percentage, or 71 percent of 'total income was observed and for Lake Buhi farmers, 58 percent, The stated objectives of UD should be measured consistently in temas of commonmeasuresofincome, conservation and ecological stability. Thus, glaring research gaps are evident on the areas of enviro_maental costs and benefits, distribution of income, and production of wood and food. Data on the costs of UD projects as well as indicators of outputs to measure the efficiency of upland projects were notably absent in a recent list of soci.,d foresl_y projects, (Bernales,

in the local economy. The role of government programs in infl.uencing management of resource scarcity in the communities as well as population growth is discussed and tied up with the growth of commercialmarkets. The usual relationship between demographic stress and technical change is postulated as follows: As population pressure increases, progressive changes also occur in techniqnes of production thus leading to higher intensification in production. For the uplands, higher intensification means reducing the fallow period or the number of years allowed for the soil to regenerate. The shorter the fallow period is, the more environmental degradation occurs as seen in terms of soil erosion and reduction in the productivity of the land. Demographic stress is defined in terms of the optimum population, (i.e., the population size where output per head is maximized given a certain level of

The National Irrigation Administration (NIA)-Mandalla Agricultural Development Corporation (MADECOR) (1979) ex-ante evaluation of watershed conservation effects focused on the economic gains from crop production and did not attempt to value ecological effects. No special consideration either was made for the possible income redistribution effects. The Paris study (1978), on the other hand, evaluated upland rice cropping systems and represents a normative analysis of how an upland farmer would optimally behave given specific situations, On the other hand, ex-post studies of social forest projects have looked into project participation and changes in beneficiaries' welfare, as well as management concerns, The feas_flity studies do not simulate the off-site environmental effects of altering cropping system; neither do they look into the rates of adoption of suggested cropping patterns nor the degrees of participation of farmers in upland development efforts. Indeed, most feasibility studies assume full cooperation by intended beneficiaries,

Investigations

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POPULATION PRESSURE, MIGRATION AND MARKETS: IMPLICATIONS FOR UPLAND DEVELOPMENT Mr. Concepcion Cruz Assistant Professor,

College

Development Economics and Managemenr, Unfi_ersit), of the Philippines atLos Bafios Working Paper Series No. 84-05

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resources and technology), using the concept of carrying capaeip?, defined as "the maximum population density which

population of the sample upland cornmunities was only 1.8M as compared to the 1948 figure of 5.7M, which, re-

the system is capable of supporting permanently in that environment without damage to the land."

presented. 24 percent and 30 percent respectively, of total national population for the period. For the intercensal period. of 1960-1970, the figure rose to 10.7M, representing 29 percent of total national population. Also, the high proportion of lifetime migrants (18.3 percent) illustrates that the movement of the population to the uplands has occurred long before the extensive margins for agriculture has •been reached. Thus, population pressure, although a recognized factor for inducing technical change in agriculture, also influences migration, Other socio.economic factors likewise influence decisions to migrate, in particular, govermnent intervention, land temlre problems and lack of employment opportunities in the area of origin. The ."pull factors" encourage movement towards frontier settlements or urban

Using a conceptual framework focused on the shifting cultivation problem, the study aims to examine primarily the use of forest resources (land, timber, and others) by upland cultivators, in patticular, the factors leading to the adoption and non-adoption of soft conservation measures in the Philippine context. The fran]ework generally looks into the slash-and-bum of second growth forests and interprets the problcun of optinmm resource use as one of determining the optilnal rate of using Philippine forest land for agricultural production. Moreover, the paper discusses the infomration obtained from Philippine literature which focuses on indigenous development of

Technical change, on the other hand, is measured in. terms of the following: changes in the labor force and in the production techniques, as they lead to increased intensification of production, for example, the tendency toward cash cropping as against subsistence production; the increased proportion off am} output put up for sale and the dominance of middlemen over the market, Population density remains an iraportant measure of environmental stress (Darity, 1980). In fact, ahigherpopulation density has been found to 'be positively

centers where employment opportunities are greater or in areas where land and clnnate conditions are productive, The socio-econonaic factors affecting populafionmovementsmayhlfactoperate independently of natural population growth_ as the study shows how markets can stinmlate changes in production and sidfts in settlement patterns. Moreover, the penetration of outside markets and government hrtervention activities may lead to greater intensification of production even before population densities have reached the lfinits of carrying capacity,

soil conservation technologies and those which, examine specific upland development projects dealing with planned soil conservation. Shifting cultivation, as defined by Pelzer (1958), is an "agricultural system characterized by a rotation of fields rather than by crops, 'by short periods of cropping (e.g., one to 3 years), alternating with long fallow periods (i.e., ranging from 6-20 years)i and by clearing by means of slash-and-burn. Conklin (1961) very briefly described the system as one wherein fields are cleared by firing and are croppeddiscontinuously.

associated with the presence of intensive cultivation methods, particularly, as land becomes scarce so that each unit of land

A solid empirical basis in understanding the problem of population pressure is called for. Tiffs is specially urgent at a

is used with greater frequency, Given increasing population, pressures, a shifting cultivation commmlity can either: a) diffuse stress through certain forms of fertility reduction or temporary outmigration, or b)• introduce new production techniques leading to increased land intensification. Recent data have shown that even in the remote forested areas in the Philippines, indigenous cultivation communities have significantly

time when social forestry programs are being implemented. It is worthy tc examine the .impact of government programs on forestry and agriculture like the People's Forest in order to determine whether these programs end up encouraging rapid migration into the uplands and further compounding the problems of conservation •

As a system of fainting, shifting cultivation (SC) has been characterized by low levels of capital inputs, highly fluctuating labor use, and eventual subsistence farming, especially for com-

"....

The cost of migrating into

Jbrest land and using it is very minimal. This has" contributed to the attractiveness of the uplands to migrants who have taken advantage of the increased accessibility of forest lands due to roads built by timber concessionaires and the inadequate protection of forests by government and loggers. "

turned to the intensification of agriculturalland, Census data obtained for the sample upland communities ha this study indicate the importance (at least in numbers) of the forest sector in society. In. 1903, the _

ECONOMIC ANALYSIS OF RESOURCE CONSERVATION BY UPLAND FARMERS IN THE PHILIPPINES by

munities which apply lowland cropping technology. Rapid soft erosion and the instability wrought on the ecological system further result in adverse effects such as flash flooding, higher incidence of pests and siltation of water systems. The extent and degree of forest destruction in the country has not been fully gauged arid there is a divergence of

.... "The $ocio-economicJhctors ing population movernenfs

affectmay in

Jact operate independently tural population growth .... ......

of "

opinion on the maguitude of such forest renewal requixements. Forest destruction has been manifested in the /bnn of a) forest overcutting, illegal logging, inadequate post harvest silvicultural treatment and ineffective forest protection by

na-

Ill

Marian Segura-delosAngeles, PIDSResearehFellow (Paper presented in a PIDS Seminar}

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loggers; and b) the conduct of shifting cultivation through "slash-and-burn" farming by forest occupants째 usually on unprotectedlogged-over forests,

At the same time, under conditions of low labor availability during a short planting season, a stringent time constraint would induce the farmer

Up to the early 70s, forest renewal was entrusted to only two groups: the fbrest authorities who conducted direct reforestation activities and the concessionaires through a set of regulatory mechanisms (Selective Logging System and the allowable annual cut) which were designed to ensure perpetuity of forests. However, inadequate reforestation work on the part of government authorities, lack of serious implementationof(defective)regulatorymechanisms, and ineffective forest protection from shifting cultivators and other illegal

to adopt labor.saving land preparation and planting technology, that of slashand-bum farming or kaifigin. On the other hand, the study advances a positive relationship beween labor availability and soil conservation since except for minimum tillage, soil conservation is laborintensive. In the past, it has been observed that some upland cultivators have applied various soil consm_ration schemes, and these included intercropping of agricultural and forest crops; improvements on land; and management of residue such as composting and minimumtillage,

encroachers, have all led to a faster degradation of forest lands, Government efforts in dealing with shifting cultivators during the last four decades have ranged from imprisonment to resettlement, and various positive programs like the fmnily approach reforestation (FAR) program; the forest occupancy management program (FOM); the communal tree farming program (CTF); and the integrated social forestry program (ISF). Recently, all forest renewal efforts involving forest occupants were integrated into a single "Integrated Social Forestry Program, or PROFEM II, as handled by the Bureau of Forest Development of the Ministry of Natural Resources.

,.,, The extent and degree o.f .forest destruction in the countr), has not been fully gauged and there is a divergence of opinion on the magnirude o.f such forest renewal requiremerits, _ ,,

Finally, the discussion focuses on the adoption of iesource conservation through planned change, (i.e., participation of forest residents in upland development projects.)

To fully assess the importance given by upland farmers to resource conservation, the study models a function which depicts a private individual's use of

Ervin and Ervin (1982) integrated the findings of various literature on the

upland soil resources under a perfectly competitive setting. Drawing from an

As depicted in the diagram, capital, education and land are largely policy variables which could easily be influenced through development projects. Farmers with higher educational levels may assimilate knowledge faster

earlier model which depicts the optimum use of forest lands for agrictfltural producfinn, the price of agricultural crops raised in fire uplands is seen to be lower than would otherwise be the case because enviromnental costs arenot inrputed in the individual's model. On the other hand, upland migration is explained by the incidence of high initial gains from upland cultivation, increasing population and lack of effective barriers to entry into the uplands. The result has been "overcrowding" in terms of shorter fallow periods and smaller land areas to work with.

adoption of conscrvationinFigure next page.)

1. (See

through teclmical assistance, although, they may not be able to implement soil conservation because they are not totally dependent on farlning alone as a means of liveliho ode

JANUARY-FEBRUARY IIII III

1985

ENVIRONMENTAL EFFECTS OF WATERSIIEDMODIFICATIONS by I짜.P. David University of the Philippines at Los Bafios. Working Paper Series No. 84-07 The paper defines the baltic concepts and assumptions in the discussion of watershed management with the objective of providing sound physical bases forlanduse policies for rural and forest avatersheds. From the standpoint of resource conservation and management, a watershed or catchment area is best viewed as a land-based ecosystem with physically defined dimensions within which its land, anhnal, water, plant, atmospheric and other components are in a state of being continuously subject to natural as well as artificial modifications. The more significant environmental unpacts of watershed modifications are hydrologic in nature, (i.e., the changes in some of the interactive processes in the water cycle) with the combined process of evaporation and transpiration playing a key role in the energy balance of a watershed. On the other hand, man's influence on the hydrologic cycle forms the core of the issues central, to water management. For example, population pressure and political inertia leads to manipulation of watersheds without the overriding concerns on the consequences to the environment outside the basin and the degree of manipulation, that basins can be subjected to, without irreversibly destroying their natural capacities for restabilization. The key to watershed management is relief from population pressure for the exploitation of land to enable the implementation of policies which give way for economic forces mad public opinion to reward tire good and penalize the bad resource users. Undoubtedly, such policies mustbe premised on a full appreciation of the interdependence and the extent of interaction of the various components of watershed ecosystems. The same is true where relief from population pressures is to be achieved through improved technology, reducing the need for land to provide for human needs. Seen in this light, an effective watershed management scheme must be pre-

ID m

m ¢-

-@ m

Personal Factors

Institutional Factors

Cost-Sharing

Edu cation Orientation to Farming Conservation Attitudes

Education & Technical Assistance

z ---I m ¢o

-lZ m

Perception of

Conservation ______

_Soil Physical Factors

Conservation_ractice Economic Factors

E_:t:'.ort

Slope Length

Wet-Farm Income

0ff-Farm Income

Slope Degree Soil Erodibility

Debt Level Farm Type

Discount Rate Planning Period Risk Aversion ¢__

z c > Ervin & Ervin (1982)

"TI m

Figure

PIDS DEVELOPMENT L

RESEARCH I II

NEWS

9 UIIllll

JANUARY-FEBRUARY I

1985 IlI

mised on satisfying the basic needs of the people in, and around, the water,

technology and productivity of agroforestry schemes reveal significant find-

of ipil-ipfl based teclmologies in upland development projects.

shed, specially in the allocation of the natural, financial and technical resources and for furthering their sociai as well as economic well-being,

ings. For one, many of the upland areas currently provide common access resources to present occupants. Simply put, environmental degradation repre-

Estimates place tile areas still covered with forests at less than 35% of the country's total land area. The rest were transformed into other land uses, and it is feared that further population growth will encourage rural dwellers to move into even steeper slopes in search of food, fuelwood and shelter, Quite obviously, the root cause of environmental problems today is the rapid growth in population. Many long term pohcies and programs for natural resources development, control and management are becoming obsolete orsociaUy unacceptable before they are fully realized because of the pressure of

sents a "tragedy of the commons" in which resources are over-util_ed or otherwise mismanaged by local residents because these are available to all but owned by no one. On its part, the government, through the Bureau of Forest Development (BFD) tries to avert the ongoing tragedy of the commons by granting upland cultivators rights over their upland farms, which include a two-year renewable lease given to Forest Occupancy Management (FOM) participants; a 25year renewable lease to conununities and legally incorporated organizations participating in the Communal Tree-Farming program; and a 25-year renewable steward-

Existing literature tends to overestimate the productivity and profitability of the agroforestry system. The discrepancy between projected estimates and actual figures is derived from differences ha resources quality and availability in ideal experimental conditions and in farmers' fields.

population on watersheds, Finally, related issues such as soil erosion, water quality and other hydro-

ship contract to Integrated Social Forestry Progam participants. Secondly, soft conservation and slope stabilization techno-

meteorological concerns are hoped to be given future research considerations in the area of environmental managemento

logies often used in conlbination with ago-forestry projects include: a) strip cropping of fast growing species, b) bench terracing, c) contour-ditching, d) contour-planting and e) wood lot establishment. Thirdly, social forestry projects and progranls provide opportunities for involving communities in the effort to rehabilitate and develop the uplands as well as test the applicability of available technologies. As of year end 1981, 255 social forestry projects covered 500,000 hectares, or 2.7 percent of the public domain,

Some of the constraints to a high agroforestry yield include lack of materia!s, financial capital and labor inputs; stray animals, pest infestation, and inappropriate technology. Also, the small size of landholdings and tenure insecurity are often mentioned as obstacles to adoption of agroforestry technology although there were also noted cases where agroforestry has been practiced despite the absence of tenure security. Although

the programs and projects

aim for community participation in the development effort, "real patticipation" has yet to be defined and operationalized. Upland commtmities have not had much say in project decisionmaking, and participation has so far been mostly in terms of contributing labor or attending seminars and :meetings.

Tenure insecurity is generally thought of as an issue biased towards land-use practices in favor of crops that yield immediate returns, but unfoltunately, cause environmental degradation. How-

The following issues have not been addressed by existing literature and are therefore suggested as areas for further socio-economic research: a) the relation. ship between tenure status, actual productivity and environmental protectivehess of upland production systems, (i.e., Are upland production systems with secure tenures more productive and less environmentally destructive than those with insecure tenures?), b) upland farmer decision making with regard to the prac-

This paper describes and reviews the literature on some of the agro-forestrybased technology currently being developed and discusses the government's efforts in "social forestry," as well as issues on land tenure, productivity of developing technologies and emerging policies and problems. Also, recommendations for further study and policy discussion are offered where the data base was insufficient, Available literature on Philippine up-

ever, there are no studies investigating the direct quantitative effects of tenure on the environment or in the productivity effects of the farm system and intensification of upland cultivation, There is a dearth of studies on technical and economic productivity of different upland production/agroforestry systems, and where available are usually based on controlled experimentation or limited to short-term, (i.e., one season or oneyear estimates); and is usually based on

tice of agroforestry. (i.e., What is the relative importance of which factors in deciding whether or not to practice agroforestry?, To what extent is the practice/non-practice of agro-forestry a response to market prices and econQmic policies? Given current farming technologics and available farm inputs, would the farmer be better off if he adopts the technology? From the point of view of the upland farmer and of society, what would be the relative costs and returns

land development focusing on tenure issues and existing upland development lill

combinations of ipil-ipil and other crops, The last is a reflection ofthe predominancc ill

to agroforestry as compared to those of alternative upland production sysI I IIIliI

TENURE TECHNOLOGY AND PRODUCTMTY OF AGRO-FORESTRY SCHEMES by Doris Capistrano and Samuel Fujisaka University of the Philippines at Los Baaos and the Agricultural Development Council (ADC), respectively, lÂ˘orkingPaper Series No. 84-06

PIDS DEVELOPMENT I I

RESEARCH II

NEWS

10 I

JANUARY-FEBRUARY III

1985 III

tems?). Also, we need to examine the income distribution impact of agro-forestry technology in upland communities. (i.e., Do upland households have equal access

solution of the allocation part of the land assessment/allocation system may be specified by quantitative models such as linear programming, or one of its variants,

quirements of both. household and industry. The assumption underlying the demand figures is that 60 percent of all households shall use fuelwood and that

to the technology and do they equally benefit from it?) â&#x20AC;˘

The relative scarcity of land resources to meet the growing needs of land-users has compelled land specialists to consider the needfor a better system in the proper use and management of land resource, Forest lands comprise a major component of the national land and are currently the most degraded areas. This poses a threat to the viability/sustalnability of the ecosystem, In view of this, the study proposes the following: (1) development of a

goal programming. O11the other hand, the operationalization of the sustained multiple-use :forest land management principle (which may be understood to be the capacity of the forest to provide a desired/optional mix of products and services on a continuing basis) requires the simultaneous solution of (1) land-use allocation problems and (2) identification of the best forest land management strategy for a given planning unit, based on a desired mix of products and services, such as sawtimber and pulpwood. The management strategy has three requirements: (1) quantification of the objective, production-functions and other constraints; (2) cranking of the numerical solutioneitherbymathematical programming, simulation or heuristices; and (3) putting the preliminary and final solutions on map(s) of appropriate scale(s), The sustained multiple land-use management planning may be done by an interdisciplinary team of forestry specialists, ecologists/environmentalists, etc.

50 percent of the demand is supplied by forest plantations. On the other hand, the supply figures are rather discouraging even under a well planned/executed forest land development system. For1980, there was only 3.0M cu.m, of fuelwood stock, although the figure is expected to reach close to 90.0M cu.m. in the Year 2025. The excess demand for wood in particular, fuelwood, will have to be grown on future fuelwood plantations and perhaps, even on private lands. The forest land-use scenario depicted in the study calls for the management of some 19.0 million hectares of land for forestry and agroforestry purposes. Understandably, the bulk of the forest lands is earmarked for pure agricultural production with expectations for the devel. opment and implementation of more intensive and high yield technologies and strategies*

framework for a comprehensive land assessment/allocation system; (2) use of the management science approach in operafionalizing a sustained multiple-

Another proposal ha the study is to develop an integrated type of forestry system which shall result in a turnaround: from exploitative dependence of

MANAGEMENT AND COST OF WATERSHED REFORESTATION: THE PANTABANGANANDMAGAT CASE

use forest land management; and (3) provision of an integrated forestry system

people on forests to co:mmunity forestry. These forest communities shall have

whereby constructive forestry activities shall benefit directly the people who depend on these forests for livelihood, Various symptoms of environmental overstress and the worsening degradation of the uplands indicate errors or imbalances in over-all national land use and land management. Hence, it becomes necessary to formulate a comprehensive development plan which shall include not only the proper use of forests but other land resources as well. In this sense, plans and strategies for land use need not be made in isolation of the goals and objectives of forestry or vice-versa, A framework for a comprehensive land assessment/allocation system entails the formulation of a matrix of hierarchical process. In one dimension, there is a hierarchy of the national, regional, district and land management unit levels. In the other dimension, there is the hierarchy of the economic sectors/activity areas and their componentland-usingactivities. The I I

the tasks of supporting forestry programs and undertaking socially and economically viable forestry projects. One problem of such undertaking has to do with economic and financial viability. The high cost of forest development and the long term nature of forest production render most forest development projects uneconomical/unprofitable. One strategy is to include early revenue-generating crops (such as rice and corn) into the forestry/ agroforestry cropping system to improve its internal rate of return, The program caUs for a more comprehensive planning and definition of realistic goals that can make major breakthroughs when propefly planned and seriously implemented, Projections contained in the study indicate that the real wood crisis in the future shall be fi_elwood. Over a 45-year period, estimates in the annual filelwood consumption point to an increase from 25.9M cu.m. in 1980 to 180.2M cu.m. in the year 2025, accounting for the reIIII IIIIIII I

FOREST LAND MANAGEMENT IN THE CONTEXT OF NATIONAL LAND USE by A.V. ReviUa, Jr. University of the Philippines atLos Ba_os Working Paper Series No. 84-02

Jose Galvez University of the Philippines atLos Ba_os Working Paper Series No. 84-08

Experiences of the National Irrigation Administration (NIA)in its reforestation of the Pantabangan and Magat watersheds are presented in this paper, as it identifies the basic requirements of a successful reforestation progranafordenudedareas. The reforestation project of the NIA is embodied as a major component of the Watershed Management and Erosion Contxol Project, whose use of the reforestation strategy as an erosion control measure, sought to minimize sedimentation of the Pantabangan and Magat reservoir through the improvement of the vegetative covers of the watershed areas. The Watershed Management and Erosion Control Project, which started in June 1980, was partially financed by a World Bank loan, and had three major components, namely: a) the Magat Watershed Feasibility Study which formulated an integrated develIII I I

PIDS DEVELOPMENT IIII

RESEARCH Ill

opment plan for the various critical sub-catchments ofthewatershed; b) the Forest Protection Pilot Program which dealt with the detailed planning and implementation of a three-year pilot operation wherein forest occupancy management, forest guarding, forest fire control and watershed rehabilitation were considered in an integrated effort;and c) the Reforestation Component, the biggest of the three components, which aimed to rehabilitate the Pantabangan Watershed and a portion of the Magat watershed by reforesting some 32,000 hectares of open grasslands with a variety of ago-forest and thnber species, Some of the benefits from these projects include: employment generation due to the project's labor intensive activities, like nursery operations andthe establishment of plantations, in the harvesting and processing activities for leafmeal, charcoal, mango and cashew plantations; food and materials production brought about by the expansion of these plantations; revenue and profit share to residents of the watersheds in the form of community facilities and road improvements, A few of the problems encountered in the implementation of the Watershed Management and Erosion Control Project were identified as: a) seed availability and propagation of planting nraterials; b) excessive growth of weeds especially during the rainy months; c) pest and disease infestation; d) destruction due to forest fires; and e) uncontrolled exploitation of watershed resources. Based on the experience of the project and an observation of areas covered by reforestation projects in the past, the factors that significantly affected the success or failure of the project included availability of access roads _election of species and timing of out-planting; fire prevention and protection. Appropriate timing in the implementation of reforestation activities cannot be overemphasized although this has traditionaliy been affected by late budget releases and the non-availability of seeds and labor. Nursery operations do not normally coincide with the harvesting of the ipil-ipil, yemane and other species, thereby making acquisition difficult. On the other hand the project nmst often I

NEWS

11 II

': . . . It becomes necessary to formulate a comprehensive development plan which includes not only theproper use of forests but other land resources as well. In this sense, plans and stra.... tegies for land use need not be made in isolation o.f the goals and objectives of forestry or vice-versa."

compete for labor with the usual farming operation ha the agricultural lands at a time which is set for outplanting, For any reforestation project to be considered successful, all the negative factors must be minimized, if not eliminated through sound planning and proper plan execution. Also, the reforestation activities must necessarily include the active participation of the residents of the communities within the project areaifwe are to substantially make advances in forest rehabilitation,

REFERENCES Aguilar, Filomeno V. Jr. "Social Forestry for Upland Development: Lessons from Four Case Studies," Quezon City: Institute of Philippine Culture, Ateneo de Manila University, 1982. Baustista, R., Power, J. and Associates. Industrial Promotion Policies in the Philippines. Philippine Institute for Development Studies, 1979. Bernales, et aL "Social Forestry Projects in the Philippines: An Inventory and a Listing of Communal Forests and Pastures." Integrated Research Center, De La Salle University, 1982. Cabanayan, Oscar C. "Selective Logging: An Analysis from the Public's Point of View." Paper submitted in partial fulfillment of FRM 227 (Economic Analysis of Forest Policy), U.P. at Los Bafios, 1982, Conklin, Harold C. "The Study of Shifting Cultivation." Current Anthropology 2, 1:27-59, 1961.

JANUARY-FEBRUARY IIII

1985 I IIII

Cruz, C.A. Economic Feasibility of Selective Logging in Selected Areas in the Philippines, Ph.D. Thesis, U.P. at Los Bafios, 1982. ."AnEconomicComparison Between Natural Forest Stands and Industrial Plantations in the Philippines," in Proceedings, Symposium on Management of Forest Production in Southeast Asia, 19-22 April 1977, Bangkok, Thailand. Bogor; Biotrop, 1979. Decena, A.S., Optimal Allocation of Logging Wastes in an Integrated Wood b_dustry, U.P. at Los Bafios, 1975. De la Cruz, R. Technical and Economic Feasibility of Utilizing Logging Wastes, unpublished M.S. thesis, U.P. at Los Bafios, 1975. Ervin, Christine A. and David E. Ervin. Factors Affecting the Use of Soil Conservation Practices: Hypothesis, Evidence, and Policy Implications. Land Economics, 58(3):277-292, Floro, M.S. "Economic Effects of Resettlement on the Organization of Pro2 duction, Consumption, and Distribution in Barrio Villarica, Pantabangan, Nueva Ecija." Paper presented at the Seminar-Workshop on the Socioeconomic and Institutional Aspects of Upland Development, sponsored by the Program for Environmental Science and Management, U.P. at Los Bafios, Laguna, August 4-6, 1980. Gutierrez, R.C. "The Impact of PICOP on the Socio-Economic Development of Bislig." Master's Thesis, Asian Institute of Management. 1973. Hayami, Y. Anatomy of a Peasant Economy: A Rice Village in the Philippines. International Rice Research Institute, Los Bathos, Laguna, 1978. Howe, C.W.NaturalResource Economics, John Wiley, 1979. Hyman, E. "Tree Famaing from the Viewpoint of the SmaUholder: An ExPost Evaluation of the PICOPProject." Paper presented at the National Conference on the Conservation of Natural Resources, sponsored by the Natural Resources Management Center and the National Environmental Protection Council. Manila 1981. Medalla, E. "Esthnatingthe Shadow Price of Labor," in Baustista, Power and Associates, 1979. Mindajao, N.M. "Smallholder Forestry and Rural Development: A Case Study I

llll i lumlgl

PIDS DEVELOPMENT RESEARCH ill lllll I I I I

NEWS

12 il

JANUARY-FEBRUARY Ill II I

1985

of the PICOP Project in Bislig, Surigao

P pp ne,:'

Ph.D. Thesis, University of Minnesota, U.S.A., 1978. National IrrigationAdministration (NIA) and Mandala Agricultural Developmant Corporation (MADECOR)_ Pantabangan and Magat Watershed Management and Erosion Control Projects, Feasibility Report, 1979. Nguu, N. and E. Corpuz. "Resources, Production Activities and Financial Status of a Kaifigin Farm." Annual Report Upland Hydro-ecology Progam, College, Laguna, 1979. Pads, T.B. Jr. "Systems Analysis and Simulation of Upland Rice-Based Cropping Systems in the .Philippines. Unpublished Ph.D. Dissertation, Michigan State University, 1978. Pelzer, K.J. "Man's Role in. Changing the Landscape of Southeast Asia," The Journal of Asian Studies, 27(2), 1968. Revilla, A.V. "Critical Issues in Forest Resources Management in the Philippines," unpublished inaugural lecture for the SEARCA Professorial Chair

UPDATE:

ON-GOING PROJ

ECTS

SEMINARS

JOINT NEDA-PIDS TRAINING PROGRAM ON MACROECONOMIC MODEL. LING AND FORECASTING A one-week traflaing progmn was conducted in December 1984 for NEDA's technical staff on macroeconomicmodelling and forecasting. The program included the use of PIDS-developed research software packages. Resource speakers included Dr. Roberto Mariano, a PIDS Consultant, Dr. Manuel F. Montes and Dr. Rolando Danao of the U.P. School of Economics.

FORTHCOMING MARCH EVENTS:

Towards More Rational Watershed Management Policies and Programs. by

Wilfredo DavM

The study is an evaluation of the present watershed management policies and programs through generation of information related to watershed resources development and, specifically, field evaluation of two on-going water. _ed management projects in Pantabangan and Magat. it also delves into problems associated with planning and implementation of watershed management programs as the study seeks to formulate more rational policies for development, control and management of watersheds.

in Forest Resources Management. U.P. Los Bafios, 1979. "Framework of a Cornprehensive Forestry Development Program for the Philippines," unpublished lecture, U.P. Los Bafios, 1980. Segura-delos Angeles, Marian. "Research on Forest Policies for Philippine Development Planning: A Survey." Survey of Philippine Development Research, Philippine Institute/'or elopment Studies (PIDS), 1982.

Dev-

SEMINAR ON THE "USES OF RATIONAL EXPECTATIONS" Presentor: Dr. Manuel F. Montes, U.P. School of Economics Venue: NEDA Makati Building

Forthcoming: The Sectoral Incidence of the Coconut Levy on the Market Participants in the Philippine Coconut Industry by Armando C Armas III

Mill

STAFF SEMINAR ON "THE ECONOMIC ANALYSIS OF THE RESOURCE CONSERVATION BY UPLAND FARMERS IN THE PHILIPPINES" Presentor:

Marian Segura-delos Angeles, PIDS

N EW

PUBLICATIONS

Venue: NEDA Makati Building SUBSCRIBE NOW TO THE DEVELOPMENT RESEARCH NEWS (DRN)

SEMINAR ON "A SURVEY OF INTERNAL COORDINATION AND CONTROL SYSTEMS IN SELECTED PUBLIC ENTERPRISES" Presentor: Amelia C. Ancog Venue: NEDA Makati Building

THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) AND THE FINANCIAL CRISIS: A DESCRIPTIVE ANALYSlS ILv Mario B. Lamberte, PIDSResearch Fellow Staf/'Paper Series No. 84-07 An analysis of the current financial standing of the DBP in relation to the current crisis is the objective of this study, as it goes into the causes of why the DBP is now unable to obtain additional funds, either from domestic or foreign

PIDS DEVELOPMENT I

RESEARCH Ill

NEWS

sources, contributing as it were, to the very sorry state of its loan portfolio. Three possible alternatives are depicted for DBP, together with an initial assessment on how those choices would affect not only DBP's short and long-term positions but also that of the country in general.

ErlindaM. Medalla Staf.fPaperSeriesNo.

JANUARY-FEBRUARY

lllllIII

This volume contains an overview of the practice of impact assessment of development projects in the Philippines. Specific cases are analyzed, as in the Forest Occupancy Management Project in Bulacan; the Fisherman's Village Project in Davao; and the impact of rural roads and Colmnunal Irrigation Systems in selected areas,

.... 4g

IIlIIIS PHII_IP_NEINsrI'IUTf_ fO_D[VII_NTbN-t._L5

85-01

This study looks into the trade and

industrial policies adopted by the Philippines, and empirically demonstrates the impact of tariff structure and other related trade policies on the manufacturing sector (e.g., sugar, textile, paper pro ..... ducts industries, etc.) and its ability to generate employment in the last decade.

Ponciano S. Intal, Jr_ StaffPaper Series No. 85-02

A REVIEW OF WELFARE ISSUES IN THE COCONUT INDUSTRY Working Paper 85-01 Sylvia H. Guerrero This paper is a review of welfare-related issues in the Philippines' coconut industry. It surveys the literature dealing with various aspects of the coconut industly in an attempt to highlight the impact of these on the well-being (i.e., ill terms of income, consumption, employment, etc.) of the coconut farmers mad laborers. Two things motivated this research. For quite some time now, community organizers (faculty members and students) from the Institute of Social Work and

JOURNAL OF

Community Development (ISWCD) have been dealing with coconut farmers in various localities. A research output such as this could help the Institute's practitioners "..... broaden their perspective, familiarize ............................................._,_atlr_c,, •........... themselves with the issues at a macro O,:,,,:l,,_r,,,.m _oz_,'f ,............................................ level, and thus facilitate the process of Man;tx_m_ntr'lc_iect ih',hc_f r. l¢.trm_ _.,,.:,., ......... .......... .......... _o, .............. •....................... understanding the more immediate prob................. •................................................................. lems confronted in the actual field work. I'hLim_,l¢_O1" thePhtwdec In'Ju_trl,fiE_L,tLe karu,r_,l,,C I-r,l,.'.Jr, ALSO, by identifying current gaps in ..................................... ................ ;'2::.........................................._'°"" ........ research, this review could help pinpoint ............... '".... areas for future investigation by social ................................................................................. scientists.

PHILIPPINEDEVELDI:_ENT .....................

.......................

A DECOMPOSITION ANALYSIS OF PHILIPPINE EXPORT AND IMPORT PERFORMANCE, 1974-1982

F ..............

_J.....

............................

,,,

Focusing on Philippine export and inaport performance during the critical years of 1.974-1982, this study presents the preliminary restflts of a decomposition analysis made on the subject. Balassa's (1981) fran_ework is used in estimaring the effects of external shocks on the BOP, brought about by huge trade defteit and mounting external debt, and the corresponding policy responses maple by government,

"-10.

"c'a

The other reason for this study is that farmers and laborers in the coconut industry constitute the second most important group, after rice and corn farmers, in terms of poverty incidence (World Bank 1980). This t_lding was based on data from the 1971 Family Income and Expenditure Series (FIES). It would be interesting to fh_d out how the situation has changed through the years especially since various programs have been implemented in the coconut industry, purportedly to improve the conditions of the farmers.

The Philippine Institute for Development Studies (PIDS) is a non-stock, non-profit research institution engaged in long-term, policy-oriented research. Through the [nstitute's is hoped that policy-oriented directly assist the government

1985

I IIII

JOURNAL OF PHILIPPINE DEVELOPMENT (FIRST SEMESTER 1984)

THE PROTECTION STRUCTURE, RESOURCE FLOWS AND THE CAPITALLABOR RATIO IN PHILIPPINE MANUFACTURING: A SHORT EMPIRICAL NOTE by

II IIIII

research on social and economic in planning and policy making,

development

government activities, it

can be expanded

to more

PIDS DEVELOPMENT I I III

RESEARCH

NEWS II

14 III

III

JANUARY-FEBRUARY II I I

1985 III f

STAFF AND WORKING PAPER SERIES

PIDS WORKING PAPERS 1, W.P. # 8301

2. W,P. #8302 3. W.P. _ 8303

4. W.P. _ 8304 5. w.P. :e8305

6. W.P. # 8306

7, W,P, _- 8307 8. W.P, _ 8308

9. W,P. = 8309

10.

W.P. _=8401

11.

W.P. #8402

12.

W.P. _ 8403

13.

W.P. #8404

14.

W.P. # 8405

15.

W.P, #8406

16,

W.P. _=8407

17,

W.P. #8408

18.

W.P. # 8409

"19.

W.P. _ 8501

20.

W. P, #8502

PIDS STAFF PAPERS

Studies on the Wood-Based Furniture, Leather Products and Footwear Manufacturing Industries in the Philippines. by Niceto Poblador, Adriano Solis, Roy Ybafiez, and Bienvenido Aragon. Economic Policies and Philippine Agriculture. by Cristina C. David. Changing Comparative Advantage in Philippine Rice Production_ Laurian J. Unnevehr and Arsehid M. Balisacan. The Impact of Government Po/icies 0/7 Philippine Sugar. Gerald Nelson and Mercedita Agcaoi_i. Comparative Advantage and Government Price InterventiOn Policie,_ in Forestry, John H. Power and Teresita Tumaneng. Government Expenditures and Agricultural Pollcies in the Philippines 1955-1980, Manuel S.J. de Leon. Economic Incentives and Comparative Advantage in the Livestock Industry Liborio S, Cabanilla, An AnaJysis of the Economic Policies Affecting the Philippine Coconut Industry, Ramon Clarete and J. Roumasset. Economic Incentives and Comparative Advantage in the Philippine Cotton Industry, Arsenio Balisacan, /otersectoral Capital Flows and Balanced AgroIndustrial Development in the Philippines. Manuel S.J. de Leon. Forest Land Management in the Contaxt of Nationa/ Land Use_Adolfo V, Revilla, Jr. Policy Issues on Commercial Forest Management_ Cerenilla A. Cruz and Marian Segura-delos Angeles. The Impact of Government Polic/es on Forest Resources Utilization, Gerald C, Nelson. Population Pressure, Migration and Markets: Implications for Upland Development. Ma. Concepcion Cruz. Tenure, Technology and Productivity of Agroforestry Scheme& Ana Doris Capistrano and Sam Fujisaka. Environmental Effects of Watershed Mod/ficadons. Wiffredo P. David. Management and Cost of Watershed Reforestation: The Pantabangan and Magat. Jose A, Galvez. Workshop Papers on "'The Consequences of Small Rice Farm Mechanization in the Phi/ipp#?es': A Review of Welfare in the Coconut Industry, Sylvia N, Guerrero. Financing .the Budget Deficit Eli M. Rernolona

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7. £.P. = 8302 8. $.P, #8303 9. S.P. # 8304

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S,P, # 8305

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S.P. # 8406

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S.P. #8407

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S.P. # 8502

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in the Philippines

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An Analysis of Fertilizer Policies in the Philippines. Cristina C. David and Arsenio M. Balisacan, (Printed also in J.P.D, 1981) CrediZ'andPricePolicies in Philippine Agriculture. Cristina C. David. Government Policies and Far/n Mechanization in the Philipphies. Cristina C. David. Shadow Prices of Goods and Resources in tile Philippines'A-n A-ssessment, Erlinda M. Medalla. An Analysis of the Behavior of the Commercial Banks, Mario B, Lamberte Exchange Rate Flexibility and Intervention Policy in the Philippines, 1973-1981. Filoloao Pante, Jr., On the Use of the DRC CriteriOn in Selecting Projects. Erlinda M. Medalla. Monetary Aggregates and Economic Activity. Mario B. Lamberte. Effective Protection Rates and Internal Indirect Taxes in the Philippine Setth_g,, Rosario G. Manasan, Response to Balance of Payments Crises in the 1970s Korea and the Philippine& John H_ Power, A Study of Philippine Real Property Taxation Cayetano W. Paderanga, Jr., Public Enterprisc M the Philippines in 1982 A Definition and Taxonomical Exercise, Rosario G Manasan, Estimating the Shadow Exchange Rate, the Shadow Wage Rate and the Social Rate of Discount for the Philippines. Erlinda M. Medalla, Development Finance and State Banking: A Survey of Experience. Edita A_ Tan. Derived Protection for Nontraded Primary Product. Erlinda M. Medalla, Modellhig the Effects of Devaluation on Prices, Output and the Trade Balance: The Philippine Experience, Ma. Cecilia Gonzales. The Development Bank of the Philipphies and the Financial Crisis, A Descriptive Analysis, Mario B. Lamberte. The Protection Structure, Resource Flows and tile Capital-Labor Ratio in Philippine Manufacturing: A Short Empirical Note. Erlinda M. Medal ta. A Decomposition Analysis of Philippine Export and Import Performance, 1974-1982. Ponciano S, Intal. Jr.. Philippine Export and Terms of Trade Instability, 1965-1982, Ponciano S- Intal, Jr., Methodology for Measuring Protection and Comparative Advantage, Erlinda M. Medalla and John H. Power. Food, Fuel and Urbanization in the PhiliPpine& Alejandro N Herrin, Manuel F_ Mon'tes, Rodolfo F, Florentino. Rural Development Experience; pective_ Robert E. Evenson,

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PIDS DEVELOPMENT RESEARCH NEWS

JANUARY-FEBRUARY IIII IIIIIIIII

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1. INDUSTRIAL PROMOTION POLICIES IN THE PHILIPPINES Romeo Bautista, John Power and Associates 2. SURVEY OF PHILIPPINE DEVELOPMENT RESEARCH I

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HOW PARTICIPATORY IS PARTICIPATORY DEVELOPMENT? Geiia T. Castillo 8. THE SPATIAL AND URBAN DIMENSIONS OF DEVELOPMENT IN THE PHILIPPINES Ernesto Pernia, Cayetano W. Paderanga, Victorina Hermoso and Associates 9. ENERGY AND STRUCTURAL CHANGE IN THE ASIA-PACIFIC REGION (PAPERS AND PROCEEDINGS OF THE THIRTEENTH PACIFIC TRADE AND DEVELOPMENT CONFERENCE) 10. PHILIPPINE EMPLOYMENT IN THE SEVENTIES Rosa Linda P, Tidalgo and Emmanuel F, Esguerra 11, MONOGRAPH NO. I: A STUDY OF ENERGY,ECONOMY INTERACTION IN THE PHILIPPINES Lean0er AleJo 12. MONOGRAPH NO I1: INDUSTRIAL POLICY AND DEVELOPMENT IN THE ASEAN COUNTRIES Romeo Bautista 13. MONOGRAPH NO. II1: ECONOMIC EVALUATION OF THE PHILIPPINEALCOGASANDCOCODIESEL PROGRAMS 14.

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Arman0o Armas and Dennis Joyce Cryde MONOGRAPH NO. IV: A SURVEY OF MATERIALS IN INTRODUCTORY ECONOMIC EDUCATION Gerardo P, Sicat JOURNALOF

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1985 I llll I

PIDS DEVELOPMENT in

RESEARCH

NEWS

JANUARY-FEBRUARY

....

DEVELOPMENT RESEARCH NEWS (DRN) is a bi-monthly publication of the PHILIPPINE INSTITUTE FOR ]DEVELOPMENT STUDIES (PIDS). It highlights findings and recommendations, culled from PIDS-sponsored researchegior related studies done by other institutions. PIDS seminars, publications, on-going and forthcoming projects which arel_f interest to policy-makers, planners, administrators, and researchers are also announced. The views and facts published here are those of the authors and do not necessarily reflect those of the Institute. _. quiries regarding any of the studies contained in this publication, or any of the PIDS papers, as well as suggestions to or comments on the DRN are welcome. Please address all related correspondence or inquiries to: RESEARCH INFORMATION DEPARTMENT (RID) PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES (PIDS) ROOM 515, NEDA SA MAKATI BUILDING 106 AMORSOLO STREET, LEGASPI VILLAGE, MAKATI, METRO MANILA Entered as Second-Class Mail at the MIA Post Office on October 13, 1983. Private firms and individuals are charged _or delivery and mailing services at an annual rate of P35.00 (local) or $5.00 (foreign).

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1985