Surprise! Ex-NEDA head Cielito F Habito, PhD, says, “Many Filipinos think of our country as an agricultural economy. It is not.”
I
did not know that! and I am a BSA graduate, UP Los Baños 1965; published
writer since 1975; and an explorer of the Internet since 1991.
Doc
Ciel makes that eye-opening statement in his book: No Free Lunch (Essays On Philippine Agriculture),
coming out Friday, 01 Dec 2023, according to his Facebook post of Sunday, 19
Nov 2023.
Well,
teachers are not exempted from re-learning!
The particular source of that statement is Doc Ciel’s
19-year old Inquirer essay,
“Raising Farm Incomes” dated 19 April 2004, the year President Gloria Macapagal Arroyo (GMA) won a
second term. GMA was herself an economist.
Here is the first paragraph of that essay as part of Doc
Ciel’s Inquirer long-running column “No Free Lunch:”:
Only one-fifth (20%) of the economy’s total output, as
measured by gross domestic product (GDP), actually comes from agriculture. And
yet the sector accounts for more than one-third (37%) of total employment. In
contrast, services now account for almost half (45%) of our economy’s output, while
taking up also about half (47%) of our workers. These numbers indicate that
there must be something wrong with labor productivity in agriculture. No wonder
farmers and farm workers are poor.
In
other words, to put it kindly, “Agriculture is under-performing!”
“There must be something wrong with the labor productivity
in agriculture. No wonder farmers and farm workers are poor.” Doc Ciel
attributes poor productivity in farms not to the farmers themselves but to inputs,
technology, and facilities. He says:
It is not the farmers’ or farm workers’ fault that output
per worker is low. They are simply working in an industry where lack of modern
inputs (seeds, fertilizers and machines, to name some) and of support
facilities (irrigation, post-harvest facilities, communication facilities and
roads) severely limits how much they can produce. As a result, our average rice
and corn yields are much lower than that of most of our neighbors, being only
half that of China and two-thirds that of Indonesia, for example.
Doc Ciel is saying the modern inputs that are lacking in PH
agriculture include seeds, fertilizers and machines; the support facilities
include irrigation, postharvest and communication.
“What would it take to boost our farm productivity
and incomes?” I will quote 2 precious bits of advice from Doc Ciel:
Local responsibility – Resources and responsibility for
raising productivity on the farms must be given to the units of government
closest to the problem, and not be centrally managed from Manila.
Agricultural cooperatives – the way to achieve greater
efficiency through economies of scale is for farmers to band together into
cooperatives. This would permit them to gain bargaining strength and lower unit
costs… both in the procurement of their inputs including access to credit, and
in the marketing of their produce.
I gather
Doc Ciel’s lesson in Agricultural Economics:
“Economics is for the greater number for the greater good!”@517