A Looming National Disaster
May 5,2008
The recent food riots in Somalia and Haiti should prompt the administration of Gloria Mapacagal Arroyo to take a second, hard look at the economic problems confronting the country. Arroyo may have survived all the political crises spurred by a series of corruption scandals in her seven years in office, but she will have difficulty facing the wrath of an angry and hungry people.
Sen. Edgardo Angara, a hesitant ally, but an ally nevertheless, was right in warning that the global food crisis that has triggered worldwide protests can also destabilize the Arroyo administration. Another ally and trusted adviser, Albay Gov. Joey Salceda, in warning that the country is in for a long rice deficit, said the government was not tackling the problem with long-term strategic policies, but rather with “tactical tools like throwing money at the problem.”
Salceda was obviously referring to a P43.7-billion agricultural stimulus package announced by Arroyo after an emergency food summit last month, wherein billions of pesos would be poured on irrigation, fertilizer, hybrid seeds, etc. to boost agriculture production, particularly of rice.
An economic professor from the University of the Philippines, Ernesto M. Pernia, also found this approach wanting, as he reminded the government that the food crisis is not just a supply problem, but also a demand problem. Pernia insists that as the government moves to boost productivity to improve production of rice and other food supplies, it must also tackle the demand side of the problem, meaning the rapid population growth in the country.
To explain his point, Pernia pointed out that the Philippines was among the first countries in Asia to initiate a population policy and a family planning program. Unfortunately, he said, the Philippines failed to sustain what it began, apparently due to pressures from the Roman Catholic Church. By contrast, he noted, Thailand followed the Philippines’ lead in the 1970s and sustained the effort with vigor.
What ensued, Pernia correctly pointed out, has been a tale of diverging twins. In 1970s, the Philippines’ population was about 37 million, almost the same as that of Thailand, with almost identical annual growth rate of 3.0 percent. By 2007, the Philippines’ growth rate was still at 2.04 percent while that of Thailand was 0.9 percent. The Filipinos now number close to 90 million, while Thais number just 66 million, or a difference of 24 million, which is nearly the total population of Malaysia.
If the Philippines, Pernia said, had sustained its population policy and family planning program with the same vigor as Thailand, its annual rice consumption today would only be about 13 million metric tons, instead of 18 million. With annual domestic rice production of 16 million, the country would have been a net exporter of 3 million metric tons. Instead, the Philippines is now the biggest rice importer of over 2 million metric tons. Simple and sensible arithmetic!
The bottom line is that the government now has to look at the problem in a bigger perspective, just like what Thailand did. Wasn’t it just a few decades ago when Thailand was sending its students to study agriculture in the Los Banos-based International Rice Research Institute?
Now, it has emerged not only as one of the biggest rice exporters in the world, but also as one of the emerging economic tigers of Asia, while the Philippines has become the world’s biggest rice importers and the economic laggard of Asia.
The problem with our leaders is that their first reaction to a crisis is to set aside billions of pesos, where they can dip their hands in. Remember the P720-million fertilizer fund, the P2.46-billion swine program, the P3-billion irrigation fund, and God knows what other scandals will surface? Where did all the money go? If they were spent where they should have been spent, maybe the Philippines wouldn’t have to go through this food crisis despite the rise in population. And now, they have the temerity to set aside P43 billion more without as much as a research and study?
In contrast, what will the country’s leaders and politicians get out of a sensible population program, but the ire of the Catholic bishops?
The Filipino people is already reeling from the loss of their purchasing power because of the devalued remittances brought about by the drop in the value of the dollar. Add to this the unabated rise in the prices of oil, rice and other food items, electricity, water and other utilities, transportation, the cost of mortgage and renting, the rising unemployment rate, the rapid population growth, the numerous political scandals that have eroded the people’s trust in government, the unabated graft and corruption, an abusive and corrupt military, the rising poverty, and you have the perfect recipe for a national disaster.
And all Arroyo can tell us is “There is no crisis.”
valabelgas@aol.com
