Volume
V, No. 6
NOVEMBER-DECEMBER
1987
ISSN 0115-9097
Science and Technology in National Economic Recovery and Growth EDITOR'S NOTE: The importance of Science and Technology (S & T) in our economy cannot be disputed. Science and Technology contribu[ed greatly to a number of sign(tic'ant accomplishments in agriculture and natural resources, industry and energy, tlre basic sciences, and health and nutrition. /C)vrone, the agriculture and natural resources sector aims to develop low-cost and low-material inpul technoloNes to increase commodiO; production, as well as develop conserraricm and resource management systems. Pbr the industo, and energ3, sector, the thrust is to generate technologies to improve producth, ity of existing indust'ires. Side by side with this is the basic sciences sector whose aim is to strengthen the scientific and technological in,['raslructure of the ['(?Unl'_l"l Oil [he other hand, the strategy of the health and nutrition sector is to develop indigenous resources such as medicinalplants, Science and Technology has o['ten been cited as a key factor in economic growdt and development, l_i)r instance, m highly-developed countries, 50-70percent c).[ economic growth is attributed to S & T, while in newly industrializ#'lg countries (NICs), it is 4.5-5.5percent. In developing countries, the .figure stands at about 30 percent. Even countries with scarce resources, e.g., Kurea, 7_iwan and Singapore t,ave attained their present level of development due to the in ti,stion of S & T. .In the Philippines, it is hypothesized that full utilization of S & T would bring about as much as 40 percent of economic growth. Unfortunately, resources poured into S & Tin the Philippines have not kept pace with Ne requiremenls o.fa developing country, Our g3¢estwriter, Dr. Antonio _: Arizabal, is the Secretary oj'the Department of Science and Technology (DOST). In his article, he provides int'etvsting ins(ghls on the problems faced bv S & T in the Philippines, and also the current thrust of thc Departmen t. Dr. Arizabal graduated in ] 952 from the Unirersin, of tlre Philippines with a Bachelor oJ' Science degree in C/lemislrl; /CUlHlaude), lie obtained his Master's and Doctorate degrees in Metallurgical Engineeri_tg from the Carnegie Institute of Technology in 1957 and 1961. ,espectively. Al the same time, Ire was also a Research Fellow at the American Iron and Steel Institute. A TOYM (Ten Ottlslarlditlg Young Men of" tire Philippines) awardee Jbr 1966 in the field eft"iron and steel technology, his ma& area of specialization is industrial and energy development,
Fast-paced and increasingly complex technological innovations have made a rcvcrberatillg impact oft modern times, extending the seemingly firtite frontiers that man c_:li]explore. Among distinctive trends in rccent h.istory is the iNpol"tance of science and techlnology (S&T) and tlae concomitant surge in industrialism. This development has enforced sweeping changes in both Western and non-Western nations. Increash'@y, science and technology has become the bedrock of development, sere'ring as indispensable tools in efl!o_'ts to effectively harness natural resources.
Significance of Science and Technology (S & T) In the Philippines, science and technol.ogy constitute an integral component ....... of the national development plan, and is seen to complement the economic sector to hzaprove productivity. The csselqtial toIt of S & T in national development is recognized in the 1987 Constitution which mmxdates that "the State shall give priority to Research and Development (R & D); invention and ir_novation and their u_ilization; and to scie_'tce and technology education, train-
CONTENTS:
PAGE
SCIENCE AND TECHNOLOGY IN NATIONAL ECONOMIC RECOVERY AND GROWTH ................
1
UPDATE: NEW PUBLICATIONS ............................................................ ON-GOING STUDIES ............................................................. SEMINARS .................................................................... PIDS PUBLICATIONS AVAILABLE ................................................... IIIIII
III
8 8 9 10 IIIIlIIll
II
IIIIII
DEVELOPMENT RESE;. ICH NEWS
TABLE
I. LIST
OF Sat
PROGRAMS
PC IERD
NO',, .MBER-DECEMBER 1987
UNDERTAKEN
PCARRD
I_valuatlon aMonitoringofResearch ProjeCts Transfer 8Commercialization of Locally Developed Technologies Scientific EITechnologicafServices Information System
Institution Building Research and Development Monaqement ResearchLIt[!ization for Development Local _ Internal[anal Col[abora-
S_T
Manpower Development c_nd Institution Building Program Local 8_lnternatlonel Linkages
Haft
FPRDI
PCHRD
_
Invention Development Assistance (n the Field of hdustr[O,[ Proper_y Program invention Technology Development
Volcanological R _ D Program Volcano Monitoring & Disaster Mitigation Program Seismology _Geophysics R_D
Del.iver y Program _du_triai/Market Promotion for Filipino Innovations Development of Resource CapebilIties and Institutional Linkages
Program Economic Volcanic Produats R _ D Program Manpower Development Institution Building Program Local 8_ International Linkages
I
NAST
S_;ience Promotion, Information Dissemination and Scientific Services Scientific a_d Techn aiDe,ca ( Man_ower and Science Education _rogram
PI V$
I
Ceramic Research e, Dev't Program Metal Research 8 Devgt Program Polymers Research 8k Dev't Progro;_: Testing _ Evaluation of Mar'Is P_-,_. Test Production of Materials Progra_l Manpower Development and InstltJJti_n Building Program International Llnkage_
SPI
Nuclear Research and Development Scientific and Teehnot Deice ( Services and Information Sy$tem institution Build[noand"SBT Human/Resources Developmeat
2
MSp_I
Food Technology Program h_dustrlol Fermentation Program PharmaceutiCal Research ResourCe Recovery Research Program Organic Chemical Research Program Energy Research Program Engineering Research Program Technology Transfer I_ Commerciallzotion Program S_T Manpower Development I_ Institution Building Program International Linkages
_
Atmospheric, Geophysical _ Astronomical Services Weather Forecasting, Geophysical Astronomical Services Observation _Acqu[sitlon of Environmental Data Research and Trng. on Enviranmel_tel F_AIIied S_iences Typhoon Moderation a Weather Modification Development Local & Interpotional Linkages
mg and services. It shall support indigenous, appropriate and self reliant S & T capabilities and their application to the country's productive systems and national life" (Art. XIV, Sec. I0). At the same time, the Medium-Term Philippine Development Plan ([987-1992), exp.ressedly states the country's intention
NRCP Promotion &A_slstonce to Fundamental Research Activities S_T Manpower Development and Institution Building Prograrn International LInkage_
Health Services R 5_ÂŁ, Pr:_-n-m Medicinal Plants Pragram Manpower Training it Dev't institution Dev't Program Primary Health Care Financing Into. Dis ,Tech. Transfer and Commercialization Program International Linkages
Nutrltional Standards _Requiremeats Research Program Food Management Research Nutritional Assessmer_t _ Monitaring Program Food Compasit(on & Quality Researcll Program MedicolNutritional Research Program Hutritlon Intervention 8t Policy Research Program Nutrition C_mmunlcatlon BI Educ. Ntitritlonol Food Processing Prig. S I_T Manpower Oev't EkInstituticr. Building Program Local _ International Linkages
PAGASA
_ AGENCIES IN 1986
Pharmaceutical RBD Program Environmental Health Safety a Rehabilitation Program Maternal 8t Child Health Infectious Disease Pragram Nutrition ProgF_rn
FNRI
Paper, Chemical Products and DendroEnergy R aD Program Housing gild Materials R _D Program Furnitures, Ware I_ Packagino R _O Forest Products Researches, Findings and other into. Documentation Program NSTA-RegJonal Technology Developmeat Program Human Resources Development Program International Llnkagee
BY NSTA COUNCILS
Promotion and Recognition of Scientific; and Technol@gical Effort _Achleve" f_ent Advisory Functiol_ ihternational Linkages
PI;H$ Secondary Science Education Program
SOUrCe: DOST
"to fully harness S & ".f resources to help achieve the objectives of economic recovery, and to create the conditions for sustained economic growth. '_ On its part, the government emphasized the importance of S & T when the President directed the active application of S & T discoveries and innovations to backstop II
I
IIII
1986
Annun.1 Report
developmental programs aimed at iraproving the quality of life of Filipinos. A more recent development is tlne creation of the Department of Science and Technology (DOST), the age_cy mandated to provide central direction, leadership and coordinalJon of scientiI
I
I
II
I
DEVELOPMENTRESE!
CHNEWS
Ffic and technological efforts, and to ensure tlrat the results are geared and utilized in areas that will yield maxmrum economic and social benefits.
TABLE
the important role of S & T be appreciated by examining contribution to economic growth and
Tbus its
development.
The
of technological is
considered
results
more
2.
3.
Studies
4.
Establishment
than
growth
counting.
Ia
and
development
highly-developed
countries
NIC's Hang-
developing countries. As exanrples, in Asia like South Korea, Taiwan, kong,
and
Singapore,
even
with
Incorporated
and Operation
eMlndanao Cotton Development Corporation
of the
eMuniclpal
Government
of
Currlmao
5.
Development of Suitable Formulation and Eventual Production of Detergent Utilizing coconut Fatty Alcohols and Primal LMW
e Rohm and Haas, Phil. 19th Floor, Metrobank Bldg. Gen. d. Puyat Ext., Makati
6.
Commercial Production Soapfrom Coconut Oil
• Ephpheta,
7_
Soap Making and Cooking Oil Production
ac-
50 to 70 percent of economic growth was attributed to S & T, while in newly industrializing countries (NIC's), the figure is 45-55 percent; and about 30 percent in
on Cottonseed Oil Production
Demonstration Training of Center for the Production andand Utilization Marine-Based Products
the
Of capital or labor, Also, S & T has been proven to be a key factor in
Foods Corporation
Analysis and Formulation Studies e Leuca Life
application
significant
Name of Client •Florence
of Oleum melaleuco (Tea Tree Oil )
infusion
economic
Laboratory
-
2. ContractResearches Since March 1984
Development of Technology for the Accelerated Production of Fish SaucetPatis)and Fish Paste lBagoong)
to production
and
innovation
VIBER-DECEMBER1987
Project Titles I.
can further
NO\
of Laundry
Bar
Inc.
• The Industrial
Research
Foundation B.
Specialty Chemicals able Sources
9.
Technology Transfer of the Improved Method for the Production of Industrial
a. Osc.ar Ledesmaand b. Pablo Trillana II
Solar
¢. Kauturan Pison Development Corp. (KAPIDECO)
limited
from Locally
Avail -
Salt
QAvon Inc.Products
Manufacturing Co.,Inc.
resources,
]lave attained their present level of development due to the infusion
IO.
Analytical ProcedUreS and Techniques of Activated Carbon Analyses
• Interland
of S&T.
II.
Production of imported Bleaching Clay Subetitute from Local Bentonite
eMerit
12.
conversion of Coconut Husks Waste Materials Into Charcoal by Open-Hearth Furnace Method
= Northern Samar Integrated Rural Development Project
For the Philippines it is believed that the
fLI]l LttiJizat]on
of S & T can
aCCOL|llt
Mining Corporation
for as mucb as 40 percent of economic growth, In fact, S & T contributed sub-
13. Production of
TransparentSoapin CommercialScale
•Philippine
stantially
14.
Fabrication
**VGL
to
a
accomplishments ral
resources,
]lealth
and
industry
l_tUi/lber
OF
in agriculture industry
nutritiorl.
and For
benefitted
significant and
natu-
energy, Olle
and
suctl that the value-added share of this sector has been maintained at
high 50
very
seventies rice,
due
we to
percent.
achieved
In tbe early
self-sufficiency
amo:t?,g others
jrl
significant
S & T inputs_ Science and technology have made possible the improvenlent oF the physical quality of life, as reflected in the average life cxpectartcy at birth from 59.1 years in 1970 to 63.1 years in 1985, aud a reduction in infant mortality rate frol_ 74.6 per 1,000 live birtlls in 1975 to 56.6 in ].985. More recently, we have identified and utilized energy technologies using indigenous resources largely Through local adaptive R & D arid _he co,lsequent pilot testing of these technologies. A speciCic exanlple is the utilization of geothermal fields wh.ich llelped tile country attain 50 percel_t sell"sufficiency in energy, and has generated savings in oil imports amounting to IIII
Industries
• Pepsi Cola Bqttling Co., Inc.
16.
Evaluation of Thermal Efficiencles of Solid Fuels and Stoves of Various Designs Evaluation of Polystyrene Processandits Products for Improvement of Process Technology
• Technology
Design and Fabrication Densometer
• Petrochem
It.
efforts a
Herbal Group
le. Design and Fabrication of Storwheels and Honeycomb Filter Recycling Apparatus
OUl' food
from local R & D
of Cashew Nut Cracking Machine
Chemicals, Inc.
18.
19_ Improvementof Production
of Chamber/
MIST Technology in the
of Diesel Fuel from Coconut Oil
Source: DOST1986 Annual Report U.S.$227 million in 1985. Science and technology have been instrumental in the widespread culture of aquatic and marine resources such as milkfish and tilapia. For example, the scientific breakthrough in sex reversal of dlapia turned it from a imisance fish specie in the 1970's into the second most important cultured fish in the country today. Hopefully, the national infrastructure for advanced science and tecllnology will be sufficiently develaped to lay the foundations for the country to become a newly industrializing country by the year 2000. (Table 1 lists down S & T programsin 1986)
Resource Center
a Petrochem
•Philippine
Coconut Research
and Development Foundation (PCRDF)
Assessment of S & T in the Philippines The growth of local science and technology (S & T), at least at this stage of the cotmtry's developmelrt, can be characterized as increased sensitivity to tile needs of Filipinos in terms of programs and projects. Unfortunately, there is still a high degree of public apathy and criticisnl towards the pursuance of some S & T pilot projects, and even technological research. I IIII
3
<__-_ ......
:_'::::: (;L::i :_::/::_::<%:j:::;-_ ::< :/:_ :_:::........
_:........ _':_-'_ ?" _ _'?_ _ _<...... :L ..........
_
:::???;:'_L:::_: ___ _::_ _.:__ ?_'_:L7_(i_i:?_:%:_:Z_%-_V_(/:::_7:;%:_.:C:_": _......._:_ :_ :_ _ . ?_. ........ Sc ence:aiid tedi*ioi0gy tile : ' ip '-C 0rfi0fi : of: tibet resources: tO . . : .... ....i ....... al _ .7...... .... mgaged.......... m:R& pines is ,accci wit*l.:the universalpr0blem: i: stippor_R&Di .......... : : includes about :
of developiiig n:ations:-a widening gap : i: inlS& T::levels vis:aiv{s dieldevel0ped : isS& T i c0an{rieS_::S0rne eXperis:inindusttYsay :applicatioris;:Social seiei.rtists land ted> tliat:if the: Philippines eo_tiliucsi:eo be: inoiovists:liave r*o-t:c:0n'dnCi*iglyctemon_ : c0mplacen{, even cocmtries like l BaiW: wi.th the ladeSh and: Nepal might Tl_s :n_iEo:,ii'S::i.i_iost::::preS,,ing: ::problems, We: predicmneii* is f{rt le:r::agg?avated byl th.c : : : appC_r i_lcap_b[e {dire ate advances il_ ........ : radical:: teChn0i0gieall changes: 0rearing scier_ce::arid techr_0iogy, and t%r t]_at ...... wor dw del br6ng it ab0ut ::Wi:thl socio_economic to focus llatul-e::0fi: ecor_ollic productionl itself: 0 breaki:lii?0ugh :isctueiiJes ra.thel than i ::These::
:
advantagesi:
.....
....... ..........::
:: :
engineei!S: making the Philippines one of the countries with {he lowest ratio of scientists :and engi_ueers vis-a-vis its populatio:n. ........ :: i : ii :By fieldS:of:R: 19821 !figures hidica*c:t1_at 31 percent 0f total R& D expenditures were devoted to: a.gricul-i rural sciences. R & D hi agriculture was concerned mairdy with :improvillg crop varieties. Moreover unlike in developed
step-by-step where better:i'rlileage .for our: reScarchaIi:ddevei0pmerri:efforts. ....
i There iS Still: gieat: rcluctarJce: to: _ely: : _ "'""a ' I :" :':,:_" ; oi! local capabdm.es, and mid tO buy of:pay _oyaltJeS 0n packaged :
:
.....
:
:
:i
...... :: :::
cou:ntrieS, support for R & D in the Pldlippirtes mainly comes : from the government (i.e. (';5: percent of total resources).i Private indust:ry support accounts for only 15 percent.
....
,_,a qraah,-,;,b,,,,,
:
:
J :_ [::;') _ _.... c D:m 1.)8_.:/his figurl 8,000 scientists and
....
lnventmnsand
:
Patents
,_ vel]ttlr! .... .... ........ "_ ...... .... ....... ....... n expensive :R:&:Dt0determneltle :; ....: -: ......... t nlllppnle amuatexpendii-t res for _ -," ..... .......... .....the ktghest " .... ........: l'llost ..... appropriate ........: ::..... .tecmolog_es .................... • : . ........ _ih.ei hlhpplnes has one of for local ....... : _ , . .,-, _ _, ..... " " .... , .... _ 4. ,.., iesearcn a'nct :ctevel0Pmen*: Ux & Jo.)'number of: local inventions among Third : necos, "in generat," local acuwtlCS me :.... " "rnm.ls-mai :unns .... . "......b[y _ " ptih"t:ncanoqp,_va_e" ' " " ".. sectols' ": ". .... World countries according to the World ....... are iiot [echn01ogically: irmovative, a_d ave a ed: P604 i{illi0n i,_ the _eriod ..... " .... " ':<g: : ' .... " _"" ll_tel:lectua.1Property Organization. From the level of tectin00gical litetac? )f : 1_).78.78:_ Ttiis re._teSen.tS 0 ercent .... " ..... ....... •.... J_ .... P 1975 to i984, a total of 727 patent,._ g0vernment executives and: busJaless: e: .... : ......... ....... a,. (GNP). :f0r inventions;: I and 4;000 patents for has yet spes_t utiliw models, were granted to local into down ::........ :- :'
.........
co_trict
es ....... a_ch_s su,ce lO54} :!'":. _".:i: :
:: :
i::i ........
::: :i
0.4 :pe._ccn!::ol RTh, _ :then :CNp: _ :ofon: & D. :]e:vcl: deve:loped ten
was over :PNlippines. The
teei_:i_016gicalba.ckwardr, ess of the roan-
cxpen: for devei-
that the bulk of toeal inventions are i:rv on othe:r; is explained b?, the fact simple macb:ines and devices. Many are
t)i,i:ted:
: exeeptioti :of a. very select fe.,.v;:has te,::idencY::to):el.egaiie resea,'ch opment: to :_he:i academe i, yet cdmpla.in: about fire: irrel0var_ce of researei_ work being:prod:uccd b3._these instittrtiEns; Not t0 a.llocate a sight-:'i
hi( tern:is: og
vesto:rs. higha_id volume patents and on l 'i:l_e one The hand, the of scientific
merely improvements of already existing : : simple macNnes. Thnsi: there is a dearth ::resoorces, {tiere of %ew rove- d'l_*ls" in the form of i!__:_-'._.osproduction macl"_ineries. (Table 3 enu:
i : me:ra'tes some localisiventio*ls).
trial pater'its, whici't Constitute the indus-, ......... ..... ::
:: :: ......
............. : .......
trial teHmo]ogy in the eountg_, magn.ify L_ the sitt.iatiosi of: teclmological, backward.? g hess and dependence. : Foreigners hold• r_,..the bulk: o:f patents gra_'_tedfrom 1975 _ to i984. of: die 1,098 paten*s granted to r_.. f0reignersin 1984,83 pe:rCentwere owned co " by the 'United states; Japan, West Ger_ _
many;
Switzerlarid
and
the
Unitedl
..... Kingdom. .........: :
:Moigtur¢
......... ..... :,Tie;t&.:tesi.: o,im6ist_:_':ei:Z&i.'_>l: 0f
........ ..,*,,.,., /_rteTi .... ....... _,,Og,.:l_***.,,/ .....
ii
............
.....
:i:
:
TeCiino
hnports
................ : ...... The countrY: s'pending :more: ....... fo:,: the :tecDnicalS.ei:iiceso.f*he I,,dUs: : : .tectmo]ogy hnp0rts than for local R i D Tech-
........................ .........
....
....
In
1980,
c0pyrigl'tt;
royalties
and
.... ............ ................
nana
.....
g
e:
pioitation
of
agriculture:
and
natural;
....resources ha:s enjoyed byfar thel Strongest : attention a_td support resulting in the current teet'mological capabilities in agri-: culture and mining which outstrips the ..... oth.er Sectoi'S in ter,ns of t*acilities and : scientific k:nowh0w: ....... ....... o;
....
o
h
in
....
Ihe preceding assessrnent of S & T : the agricultural sector forms the .....
basis tlie role 0f S T to adopt : the promotion of" maxinlum utilization : : :i ol':natural: resources: in providing the; ainounted tO U.S.$S&:44 socioieconomi;c deVelOpment: Within this : basic requirements of: the: comatry, such: million o:r:P.423.94 million. This was equi, br0ad c0nfext.::the national:S & T Plan is as matm ial and energy Jnpu s to irtdustry: valent otthemnounts e t Mmeovet, o _ olste ..... to 65 ercent ; !'_.... " ....... i p-.n geared: t0wards ...... :[he folloWing objectives: " ' -: he developnelt ..... - .... : : for:10cai R:& Din tliat,,ear Tl:i,_ee,,,,_,,,,,_ ....... ...... ..... high-yieldlng hybrids, arid the full use of .... _ j ................ 1 ....... O tlmulll tltlhzatxon'" " '" of the ......natl¢" m's :additiona : U S $:14s 57 million or: i_i 1 ...... P ..... locally available inputs, such as nutrients ......... .....': "! ..... : " : : :::na_n:fal; lmman :and:rnanqnade re; • _ ..... ' , :billioi_ :of profits; earnings and dividends ....... _ : pestJmdes, etc. is now possH_le. Another . ......, . ..... sources to aecelerate SOClO-eeonornlc . ; .... }remitted m::1980; and another U:S.: $1_79 ..... owtli ...... complement to tlus role lsthe lull mlplebillio:fil :;biiiionl Spen on iin.;i : dispersal and ; ....... :notted Cal_it:al:,m0ds ........... : ....... -_ * :....... :: ........ _ : uti ization pr0grams by encouraging 'naxb .... v t _ a: 2 lrarlster ana:aCqusmon ot approo ' :....... :: : t-h" ,-...... mum participation concernea :
......
Technology importation lias Vari0us imP!iCati°ns:: :ion tlie development :Of: :scienee:i:::and:technology :in tlie c0ul_try. : i :i iI i usuaiiy:iesuhs:in tl_e purchase of specific .......... : foil:which tliey:wete::de: : :i :signed, :usually from : tlie :c0untrY:: of: origin The :deal extends to:tlie pm,eiiase of sp:ate partsland suppli:es: fr0m ttie:: : ....... ....... ........ " .... ........ _ : suppliers or l_s asso¢ ares; Tlie:: lieavy ......... : .... ...... " : : importation: or capital gooctS diScourages : ; ;
l_ea:vy
pondifig adaptafioi{S to fit well into sectors, Lastly; S & Wwill have tO sustain loCal:eondifi0nSl ...... : manpower and ms!m:mol_al ;resource : ........ development programs to ensure imand proved capabilitieS Fo,{:aVailable S & T: ; tectmological requirement of the i: serviceSat alllevels: ........... producti0nsect0tsiiaimedat achier{ : .... : ; i:i : ing bala_}cedagro}indus_rialdevelo pi mcnt; : i This emphasi*es die:need iz_ra strong ...... g; i:i;" : ; : network of R:&: ex: S'trengmem 3g: me research ana tension units in acCordar3ee with national .... , .... 2 neh.,_rk s develop,, ,.w,, - ; development guides to support the na_ .......... :t K,,,::,-,y usablel tional agricultural program, Full sectoral thrOUgi{o:utthe coun-participation of: ail c0nceri_ed, and gene: :
technologies .....
icss R & D:since t: is :easier and faSter to import tlia:n innovate locally:: :: : i
:
......
:::i
: :
infrastn:ic;ttlrei::A
:: :
try; and: : .... ; :& Acceleration :of:
ratio_l of: resources i:e:; financial, man: : : powerl and infrastructure capab.ilities manpower and shouldalso be intensified: In as much as land productivity Pliilippines re_ 6f sCiefic:e::andtechno-presents on!ya f0m'th o_ihat in the more
:
: ::;i::::
Clialienge for: : : :: ii
....
;:
:iogy;:
:
specifically :::ito strengthen :i
:: : :{:obe:::developed shall
agriculturally_el'ficient Taiwam
C0untries st,ch to :be done
to utilize S effe:ciively in order to develop tecimiques; hybrids/varieties and l
:...... a ; Suited'to1ocalCondilions. Furiher: :the :Ultimai:e:aim :seCtors. basic The :: : inputs more, irnport dependence:on such. impor: scien:ce and tleClin0iogv: is to:upllf_i i :i are:translated mto l taut items as fertilizer and animal feed; :tlieWelfa_:e:oFth:e:g,'eater niaSses:of out: i: c0ii:c:rete:ta:rgeL_:at:fouri::seCtoral levels;: agricultural Chemicals, pharmaceuticals,
....... :
:i: i people : techn0i0gy
use of: i iname!y;:::agricu!ture:,:industry and energy; as the most valuable toot for i:: :healtii and:the basic:Sciei_eeS:
etc- should be reduced: whenever local i: i : substitutes are available: i
givefi:[: :
i:
equip:m:erlt:i]: [
:
]
:::
: ::
::
:
i:ae ilei:Y: :a:n spare parts :3rficUl:afly ::: : d tist,>iallzation: SlI0[i]d :also e 0r e cq uiL :: stated to local app icatlons cou d be t_b y dst buled t: 0u,is the d s_e s .... :" ,_:!!-!.= ! g:-,I- ..... : : i p_odtieec :lOca ie:::be_e:ts ' :0'::in::: o _dt,st ieswl3e.leVerr_6:sSible ..... ..... " ........ .... ! _
:
:: SLIP11}:{)
: ]]. i
..-
_
,._
IO}
{]
:
_ : G_L, _,. ,rI
LI/G
:: _S ii_
_:]i
_l
,......
0
......:
}3D:III
US]t
the
courltry*s
Scheme
e:eomponent _-'dqs'" a:d k. ,_ t
".',
_tt
._.l/k
....: to
i:
_:ia
contribute [ growth by
economic
anct in:_{ creasing pr0ductiVity_ Among 0fhei-inputs_ tEis assures tile: international Com_
:
..... petil:iveness ........
:
6:: ..... :
:
:
...... :_ .... .... :: Broiler....... :lank::: ........
:
..... :8:
::: : : ........
: ::: :
.........
:
:
.................
:
......... :
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pel_,0_s
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: :power (leveiopmefit: 1]igll]tech: : :: 3oog9 i-caB lis_ec in(:):,4) rese;_'ch on : : effective mechanismsl t6 improve disse:: :
Wouk fntei.:iia:{{i:0rial develop: at_i tUl{ed::to ii_{efnati0nal confere:nces, meets t _e c,,: .Y i:m6sia••AS basic science . :fol.11i(iiti0 l 3 c:f 3 app]ied::science, capakilitv
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: :
oj:i We have lip se,'vice _o the : priv_i{e: fbmldaii0ils::::in: deveh:_ped cou> : vital role science and I'echnologv plays irl : i: leaders of the our national i growfh; ae:-ide:me:Sti0uki:: be conS{ai:,tly updated : wMle : in {l_e intt Sir _1zed cot m'ies : : 6ii::tl{e:::stiitus :of:::the basic sc ences .....,.,.,,,,,.2_o _n ,iq o ..... ,, .i.,o _,,........... , pa!TticUlarly 0nl th.eii::resPeCtive fields tlaaf::they: C0uld: impart: these to students : :and:p}actiti0iiers
S i11; there is _o sense :in try 3g o c_tc i up with ti_e :achievemems of developed : science an:d teclmoloav
:
7hu_;the _:og_c_ optS:o,_sio m_ke _,se:: : adopting' i: :
: : or what We : tiii_ xsic, .......... _nd adap.._ /big' ............ as we SCent .:: .......... : scieni:ific ::activities in: the: Philippines that is relevarit to otir needs,
technoIogy
..... i : i: Science and :techr*0]ogy must therc:i i fore be accorded immediate priority: I:I irl ,iational devek)pment u _dertal,:ilnc_s.q h7. Amidst the upheavals and hesitar_ce to : o pursueiaggi:essive R & Din science and::: a.= tech30iogv t3eSe Foundations will un: dOubted y e:ri Ure i )nly because addl O ...... *_ a • o vances m science anu teCimology have coii3e:::t.o I Symbolize human progress: _o
it,selL
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i
DEVEL()PMENTRESE
...."ICHNEWS,
UPDATE:
':NO
:MBER-DECEMBER1987
HOUSEHOLD INCOME AND ITS IMPLICATIONS ON RURAL POVER-
NEWPUBUCATIONSStaff Paper Series No_ 87-05
-
w
.
, _'_N
by Edna A. Reyes Research Fellow Philippine Institute for Development Studies This paper presents the structure
SUMMARIES OF COMPLETED AND ONGOING RESEARCH PROJECTS, 1979 - 1985 (VOLUME II) This volmne summarizes the objectives, major findings and policy recommend-
of
pines over a period of time. It also identitles changes in the structure which affect rural household income. A study of these changes can pinpoint government actions and policies to improve the rural household income in the Philipwelfare of the rural poor. A significant finding in the study is the extent of nonfarm employment opportunities, and its effect on the structure of rural household incomes. The data used in this study come from surveys conducted in Atbay,
The Philippine Institute for Development Studies (PIDS), together with the United States' Agency for I_n__term.a_tional Development (U.S.A.I.D.) is conducting a series oI eoIIaboratwe researches on Project Development and.Support: Employment and Employment Impacting Policy Studies. The objective of this research program is to address the development policy analysis and implementation needs of the Philippine government
Camarines Sur and Sorsogon, the three most populous provinces in the Bicol region.
as it relates to employment generation, a The first two papers in a.series of researchl programs are as follows:
ations of the completed and ongoing re-
1. Employment
Impact
s, of Selected
search projects of the Philippine Institute for Development Studies (P[DS)between
.Results of the study show a decline in farm income with the shift of workers
Macroeconomie Pofieies in the Philippines
1979 and 1985. Through this publication, the Institute hopes to contribute to the
from farm to non-farm activities. Moreover, labor transfer to non-farm activities
Rosario G_ Man.asan Research Fellow
limited number of policy-oriented matewas accompanied by unfavorable changes ria'ls aimed at providing comprehensive in farm productivity. With the significance information to policy-makers, planners, of non-farm sources of income to rural inresearchers, students of development, and comes over the five-year period, a good those who are interested in P]dlippine policy move would be to encourage the socio-economic development, growth of non-farm activities. However, The research projects covers widethis policy should also include efforts ranging areas that include Employment to improve productivity in the farms, Human Resource Development and Techby way of developing the labor force nology; Resource Mobilization; Trade and infrastrhcture facilities, among others. Expansion, Poverty, Income and Wealth An important input to the policy should Distribution; and Regional, Urban and ,- be credit accessibility to a large number Rural Development. ofpeople_
â&#x20AC;˘
Philippine Institute for Development Studies This study is carried out in the context of a growing need for policy options to minimize the adverse effects of the stabilization and structural adjustment policies on emp.toyment. The current econotnic crisis in the Philippines has led to a series of policies designed for short-run stabilization as well as long-run structural adjustment. Currently, the policymakers' major concern is how to achieve external balance while maintaining price stability through duction structures, and trade and distribution.
international
changes.in rnacroeconomic In particular, the study policies, reviews prothe_
._'_-"I"
8
_
l
_
III
III
I
Program (CEDP), the Tariff Reform Program (TRP), the Trade Liberalization Program, retbrm of the industrial Communitythe Employment Development incentives legislation, and the production incentives policy. I
I
DEVEL()PMENTRESE,
',CHNEWS
NO'
MBER-DECEMBER1987 Analysis of Public Sector Expenditures," covering the ten-year period from 1975 to 1985. This semhaar is the second in a series to present the findhags of a group of studies conducted by i3:..Rosario G. Manasan, Research Fellow of PIDS, and principal investigator of the research. Ms. Emilia Boncodin, Director of the Fiscal Planning Staff at the Department of Budget and Management (DBM), and Dr. Felipe Medulla of the University of the Philippines' School of Economics, were invited to comment on the study. For her part, Ms. Boncodin reiterated the need to look into the degree of flexibility available in expenditure programming, and the DBM's plan to push for a stronger link between planning, monitoring and implementation of new pro-
2. Employment,
Productivity
and Wages
-,_
EMINARS
jects. She also emphasized the importanceof of determining the beneficiaries government expenditnres. Dr. Medalla,
in thePhilippineLaborMarket
â&#x20AC;˘
solidation of pnblic expenditures was crucial in determining the out trendthatof conexon the other hand, pointed penditures for the sector. Moreover, a major reaction in tlle succeeding open forum pointed to the need to separate government corporations' expenditures from that of local government agencies'
I___] EdnaA. Reyes Research ]_lh'o_,v Philipl)inelnstiutt'efor Del)elopment Studies This paper aims to present in a cohc-
FINANCING
PUBLIC
SECTOR
rent systematic maturer the Philippine labor market condition, in terms of employment, unemployment and underemployment, wages m_d productivity and its related issues. Historical data are presented to reflect the economic conditions and the policy environment which characterized the period under study starting in the 1960s. It hopes to analyze the factors behind the structure ofenrployment as well as the changing trends ill productivity and wages.
PENDITURE 1975-1985
IN THE
PHILIPPINES,
EX-
A follow-up seminar on "Financing Public Sector Expenditure in the Philippines" was held last November 11. 1987 at the Operatiolls Room of NEDA sa Makati Building. Sponsored by the Philippine Institute for Development Studies (PIDS), the seminar focused on "The
in the "Total Public Sector Expenditures" item. The seminar was attended by representatives fi'om the academe, Department of Budget and Management (DBM), Department o[" Finance, Central Bank, National Tax Research Center (NTRC), National Economic and Developnlent Authority (NEDA). Bureau of lntcrnal Revenue, and 'the Philippine Institute for Development Studies (PIDS).
FORTHCOMING SEMINARS This study draws its data mainly from the Integrated Survey of Households (ISH) series conducted by the Nalional Census and Statistics O:ffice (NCSO). Furthermore, basic data for the produc_tivity estimates come from the national accounts Finally, the ISH mentary
and other NCSO publications. data on wages are provided by and NCSO, with some supplesurvey data.
.................
I. SEMINAR ON THE EFFECT OF AN EXCHANGE RATE DEVALUATION ON A SMALL OPEN ECONOMY WITH AN EXTERNAL DEBT OVERHANG Date: 5 Eeb,'uary 1988 Venue: Room 211, NEDA sa Makati Bldg. Sponsor: PIDS 2. POLICY CONFERENCE ON UPLAND RESOURCES Date: 1.4March 1988 Venue: Operations Room, NEDA sa Makati Bldg. Sponsors: PIDS and D.ENR
DEVELOPMENTRESE
CHNEWS
NO'
MBER-DECEMBER1987
PIDSPUBLICATIONS AVAILABLE Monographs
SURVEY
OF PHILIPPINE
DEVELOPMENT ECONOMIC PHILIPPINE
EVALUATION OF THE ALCOGAS AND
SHADOW PRICES OF GOODS AND II
RESOURCES IN THE PHILIPPINES:
308 pages
AN ASSESSMENT Erlinda M. Medalla
COCO-DIESEL PROGRAMS Armando Armas and Dennis
SUMMARIES OF COMPLETED RESEARCH PROJECTS, VOL. 1
1982
Joyce Cryde
1982
EXCHANGE
1984
92 pages
100 pages
18 pages RATE FLEXIBILITY
AND INTERVENTION POLICY IN THE PHILIPPINES, 1973-1981
A SURVEY OF MATERIALS IN INTRODUCTORY ECONOMIC EDUCATION Gerardo P. S/cat
INTEGRATION, PARTICIPATION AND EFFECTIVENESS: AN ANALYSIS OF THE OPERATIONS AND EFFECTS OF FIVE RURAL HEALTH DELIVERY MECHANISMS Ledivina Car,iSo and Associates
1984
1982
PROJECTS Erlinda M. MedaJla
47 pages
Filologo Pante, Jr. 1983 48 pages ON THE USE OF THE DRC CRITERION IN SELECTING
268 pages
MODELLING THE IMPACT OF SMALL FARM MECHANIZATION (a co-publication with the International Rice Research institute)
THE SPATIAL AND URBAN DIMENSIONS OF DEVELOPMENT IN THE PHILIPPINES Ernesto Pernia, Cayetano W.
1983
1985
Paderanga, Victorina and Associates
Mar[o B. Lamberte 1983 93 pages
104 pages
9 pages
MONETARY AGGREGATES ECONOMIC ACTIVITY
Hermoso
PHILIPPINE POOR: AN ANNOTATED BIBLIOGRAPHY, 1970-1983 (a co-publication with the Institute
1983
of Philippine Culture) 1985 221 pages
(Summary of the Papers and Proceedings of the Workshop)
1983
Edited by Wil'frido Cruz
RESPONSE TO BALANCE
PUBLIC POLICY
1985
PAYMENTS
PHILIPPINE
AND THE
345 pages
ECONOMIC POLICIES
AND
EFFECTIVE PROTECTION RATES AND INTERNAL INDIRECT TAXES IN THE PHILIPPINE SETTING Rosario G. Manasan
FOR FOREST
RESOURCES MANAGEMENT
40 pages
HOUSING MARKET
Edna Angeles-Reyes 1985 89 pages
26 pages OF
CRISIS IN THE 1970s,
ECONOMIC RECOVERY AND LONGRUN GROWTH: AGENDA FOR
KOREA AND THE PHILIPPINES John H. Power 1983 44 pages
REFORMS, May 1986)
A STUDY OF PHILIPPINE PROPERTY TAXATION
VOLUME
I (Main Report,
REAL
PRODUCTIVITY GROWTH IN PHILIPPINE MANUFACTURING: RETROSPECT AND FUTURE
Fiorian A. Alburo, et al. 1986 206 pages
Cayetano W. Paderanga, Jr.
PROSPECTS Richard Hooley
AN ANALYSIS OF THE INSTITUTIONAL FRAMEWORK OF THE
PUBLIC ENTERPRISE IN THE PHILIPPINES IN 1982: A
1985
PHILIPPINE SHORT-TERM FINANCIAL MARKETS Victoria S. Licuanan
DEFINITIONAL AND TAXONOMICAL EXERCISE Rosario G. Manasan
INFLATION IN THE PHILIPPINES Roberto S. Mar/anD
1986
1984.
1985
A HISTORICAL AND CURRENT PERSPECTIVE OF PHILIPPINE ECONOMIC PROBLEMS
AGENDA FOR ACTION FOR THE PHILIPPINE RURAL SECTOR (Main Report) Agricultural Policy and Strategy Team
EXCHANGE RATE, THE SHADOW WAGE RATE AND THE SOCIAL RATE OF DISCOUNT FOR THE PHILIPPINES Erlinda M. Medalia
Gerardo P. Sicat
1986
1984
128 pages
FORECASTING
MONTHLY
88 pages
1986
1984
215 pages
50 pages
77 pages
ESTIMATING
4.54 pages
42 pages
THE SHADOW
60 pages
Specia/Publications
SUMMARIES OF COMPLETED AND ONGOING RESEARCH PROJECTS, 1979-1985 VO L. I I
DEVELOPMENT FINANCE AND STATE BANKING: A SURVEY OF EXPERIENCE Edita A. Tan
INDUSTRIAL
1987
1984
POLICIES
PROMOTION
SURVEY
RESEARCH
MODELLING S[affPapers
OF PHILIPPINE
DEVELOPMENT III
1 66 pages
IN THE PHILIPPINES
Romeo Bautista, John Power and Associates 1979 429 pages
10
1980
RESEARCH
I
114 pages THE EFFECTS OF
CREDIT AND PRICE POLICIES IN PHILIPPINE AGRICULTURE Cristina C. David
DEVALUATION ON PRICES, OUTPUT AND THE TRADE BALANCE: THE PHILIPPINE EXPERIENCE Ma. Cecilia Gonzales
1982
1984
IIIIIII
25 pages II
60 pages III
I
t THE DEVELOPMENT BANK OF THE PHILIPPINES AND THE FINANCIAl. CRISIS, A
REVENUE PERFORMANCE NATIONAL GOVERNMENT 1975-1965
DESCRIPTIVE
IN
Rosario G. Manasan and
Adolfo
Rosario G. Querubin 1987 57 pages
1984
THE PROTECTION STRUCTURE, RESOURCE FLOWS AND THE
RURAL FINANCIAL MARKETS: A REVIEW OF LITERATURE
POLICY ISSUES ON COMMERCIAL FOREST MANAGEMENT Cerenilla A, Cruz and
CAPITAL-LABOR RATIO IN PHILIPPINE MANUFACTURING: A SHORT EMPIRICAL NOTE
Mario B_ Lamber're and Joseph Lira 1987 298 pages
Marian Segura-de los Angeles 1984 4,7 pages
Erlinda M, Medalla 1985 10 pages A DECOMPOSITION ANALYSIS OF PHILIPPINE EXPORT AND IMPORT
RESIDENTIAL DEMAND FOR ELECTRICITY AND PRICING POLICY IMPLICATIONS IN A DEVELOPING ECONOMY: THE CASE OF THE PHILIPPINES
THE IMPACT OF GOVERNMENT POLICIES ON FOREST RESOURCES UTILIZATION Gerald C. Nelson
PERFORMANCE, 1974-1962 Ponciano S, Intal, Jr.
Clodualdo R. Francisco 1987 42 pages
1984
23 pages
METHODOLOGY FOR MEASURING PROTECTION AND COMPARATIVE ADVANTAGE Erlinda M. Medalla and John H. Power 1985
THE RURAL BANKING NEED FOR REFORMS Mario B. Lamberte 1985
SYSTEM:
24 pages
24 pages
19 pages
EXPECTATIONS: THEORY AND EVIDENCE ON SYSTEMATIC RISKS TO THE BETA Clodualdo R. Francisco
DEVELOPMENT Ma. Concepcion Cruz 1984 73 pages
1987
TENURE, TECHNOLOGY AND PRODUCTIVITY OF AGROFORESTRY SCHEMES Ana Doris Capistrano and Sam Fujisaka
57 pages
THE STRUCTURE OF RURAL HOUSEHOLD INCOME AND ITS IMPLICATIONS ON RURAL
23 pages
V. Revilia, Jr.
POPULATION PRESSURE, MIGRATION AND MARKETS: IMPLICATIONS FOR UPLAND
THE CAPITAL ASSET PRICING MODEL WITH NON-HOMOGENOUS
PHILIPPINE EXPORT AND TERMS OF TRADE INSTABILITY, 1965-1962 Ponciano S, Intal, Jr. 1985 22 pages
POVERTY IN BICOL, PHILIPPINES Edna Angeles-Roves
1984
1987
ENVIRONMENTAL EFFECTS OF WATERSHED MODIFICATIONS Wilfredo P. David
30 pages
64 pages
Working Papers
1984
SOCIAL ADEQUACY AND ECONOMIC EFFECTS OF SOCIAL SECURITY: THE PHILIPPINE CASE Mario B. Lamberte
ECONOMIC POLICIES AND PHILIPPINE AGRICULTURE Cristina C. David 1983 99 pages
MANAGEMENT AND COST OF WATERSHED REFORESTATION: THE PANTABANGAN AND MAGAT Jose A. Ga]vez
1985
CHANGING COMPARATIVE ADVANTAGE IN PHILIPPINE RICE PRODUCTION Laurian J. Unnevehr and Arsenio M. Balisacan
1984
A REVIEW OF WELFARE COCONUT INDUSTRY Sylvia N. Guerrero
COMPARATIVE ANALYSIS OF INCENTIVES UNDER THE OMNIBUS
1983
1985
INVESTMENTS CODE OF 1981 (P.D. 1789) AND THE INVESTMENT INCENTIVE POLICY ACT (B.P. 391)
THE IMPACT OF GOVERNMENT POLICIES ON PHILIPPINE SUGAR Gerald Nelson and
FINANCING THE BUDGET DEFICIT IN THE PHILIPPINES Eli M. Remolona
Rosario G. Manasan 1986 46 pages
Mercedita Agcaoili 1983 37 pages
1985
FINANCIAL REFORMS AND BALANCE-OF-PAYMENTS CRISIS: THE CASE OF THE PHILIPPINES
COMPARATIVE ADVANTAGE AND GOVERNMENT PRICE INTERVENTION POLICIES IN FORESTRY
Eli Remolona and Mario B. Lamberte 1986 56 pages
John H, Power and Teresita Tumaneng 1983 57 pages
A MACROECONOMIC OVERVIEW OF PUBLIC ENTERPRISES IN THE PHILIPPINES, 1975-1984
AN ANALYSIS OF THE ECONOMIC POLIClESAFFECTINGTHEPHILIPPINE COCONUT INDUSTRY
MACROECONOMICADJUSTMENT THE PHILIPPINES: 1963-65
Rosario G. Manasan
Ramon Clarete and J. Roumasset
Manuel F. Montes
1987
1983
1987
109 pages
IMPACT OF BOI INCENTIVES ON RATE OF RETURN, FACTOR PRICES AND RELATIVE FACTOR USE: A
I
FOREST LAND MANAGEMENT THE CONTEXT OF NATIONAL LAND USE
Mario B. Lamberte 1984 29 pages
1985
ANALYSIS
OF TAXES,
63 pages I
III
33 pages
III
30 pages IN THE
140 pages
54 pages
FACTORS AFFECTING THE CHOICE OF LOCATION: A SURVEY OF FOREIGN AND LOCAL FIRMS IN THE PHILIPPINES Alejandro N. Herrin and Ernesto M. Pernia 1986 59 pages
66 pages IIIII
45 pages
II
II
I
I
IN
75 pages MI
I I
11
DEVEL()PMENT
RESE;
COSTS OF AGRICULTURAL CREDIT IN THE PHILIPPINES: THE SHORTRUN EFFECTS OF INTEREST RATE DEREGULATION Irma C. Corales and Carlos E. Cuevas 1987
,CH NEWS
NO', .MBER-DECEMBER 198:7
GOVERNMENT EXPENDITURES AND AGRICULTURAL POLICIES IN THE PHILIPPINES 195E;-1980 Manuel S.J. de Leon 1983 48 pages
56 pages
1986 ECONOMIC
CAN THE INFORMAL LENDERS BE CO-OPTED INTO GOVERNMENT CREDIT PROGRAMS? Emmanuel F. Esguerra 1987 25 pages
COMPARATIVE BANK STUDY: A BACKGROUND PAPER Mario B. Lamberte 1987 67 pages AN ANALYSIS OF PUBLIC SECTOR EXPENDITURES, 1975-1985 Rosario G. Manasan 1987 81 pages
INCENTIVES
COMPARATIVE ADVANTAGE THE LIVESTOCK INDUSTRY Liborio S. Cabanilla 1983 50 pages
AND FOOTWEAR MANUFACTURING INDUSTRIES IN THE PHILIPPINES Poblador,
Roy Yba_ezand
1983
Adriano
Soils,
BienvenidoAragon
286 pages
IN
INTERSECTORAL CAPITAL FLOWS AND BALANCED AGRO-INDUSTRIAL DEVELOPMENT IN THE PHILIPPINES Manuel S.J. de Leon 1984 32 pages WORKSHOP
56 pages
AND JOURNAL OF PHILIPPINE DEVELOPMENT (Semestral Journal) Vol. VIII (1981) Vol. IX (1982) Vol, X (1983) Vol. XI (1984) Vol_ Xll (1985) Vol. Xlll (1986) Vol. XlV (1987) DEVELOPMENT RESEARCH NEWS Vol. I (1983)
PAPERS ON "THE
CONSEQUENCES OF SMALL RICE FARM MECHANIZATION IN THE PHILIPPINES"
Vol. II Vol, III Vol. IV
(1984) (1985) (1986)
1984
Vol. V
(1987)
433 pages
STUDIESONTHEWOOD-BASED FURNITURE,LEATHERPRODUCTS Niceto
INTEGRATED SI_IMMARY REPORT: POPULATION PRESSURE AND MIGRATION -- IMPLICATIONS FOR UPLAND DEVELOPMENT Ma_Concepcion J, Cruz
IN OUR NEXT ISSUE... The fourth batch of studies under the DRN Clearinghouse Project will appear in the January-February 1988 issue of the DRN. Tire Clearinghouse, Project features a list of completed, on going and pipeline research projects of various institutions. Our network of agencies covers private and government entities as well as local and international research institutions.
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