Maria Chelo E. Santos
Transformer Section
Final Essay Ver.1
Date: September 27, 2017
Approved Question:
What are the main issues and concerns that impede the development of agriculture sector that it fails to become a major driver to reduce poverty and inequality in Philippine society? Based on my own experience and observation in the field, what could be some of the reforms or core strategies needed to address these issues and concerns?
- Introduction
This integrative paper attempts to answer arguments that I believe are vital in presenting the state of Philippine agriculture of why it failed to become a major driver to reduce poverty and inequality in our society.
- Background
Relationship between poor agriculture performance and rural poverty
Poverty incidence is an economic phenomenon that is multi-faceted and multi-dimensional. Poverty is a universal issue because its level and percentage varies from one place to another. Many countries worldwide set their development goals to halve this global poverty. While some posted exceptional progress, others fall far short of attaining this goal. According to Basset (2009), no country, even the most developed one, has ever claimed that it has totally eliminated poverty.
Numerous studies reveal that agricultural productivity is an effective mechanism that stimulates economic growth. Economic growth in return, is an important factor that influences poverty reduction. Hence, it is assumed that an increase in farm productivity reduces poverty.
The agriculture sector does not only feed the world but also a provider of jobs to greater number of population. Thus, a poor agriculture performance directly impacts the income, the price of commodities, the economy and ultimately, the people.
Growth in agriculture is a pro-poor and a potent force in alleviating poverty since it appears to have a greater effect on the poverty levels compared to manufacturing sector (Tambonan, 2009). Moreover, isolated growth in non-agriculture sector may even possibly increase poverty level and important driver to which agricultural growth reduces poverty also depends on some factors such as distribution of land and level of inequality (Cervantes-Godoy & Dewbre, 2010 and Dhrifi, 2014). In view of the fact that agriculture is considered as biggest provider of jobs and vast majority of poor population are engaged in farming activities, an improved agri-performance facilitates increase in farmers’ income therefore reducing a significant number of people living within the poverty line.
Brief description of the state of agriculture in the Philippines
Philippines is among the Southeast Asian countries that are traditionally rural and agricultural based economies. Being an archipelago located in the Pacific Ring of Fire, our country is frequently visited by natural disasters and extreme weather conditions. In fact, the agriculture sector normally incurred Billions of Peso worth of losses whenever climate extremes such as El Nino/La Nina phenomena hit the country’s farm production areas. However, our tropical climate and very diverse geography enable our Filipino farmers to grow and produce various agricultural products.
- Based from my Personal Experience
I believe that the long dream of empowering the farmers and fishers is still underway despite numerous programs, projects and activities (PPA) are provided since time immemorial to cater their needs and contribute to their development. These PPAs implemented by Department of Agriculture (DA) include production and post-production support services and technical assistance. These services are accessible to farmers and fishers under various schemes (e.g. grant/dole-out, cost-sharing, loan at cost). However, the noble intention of the DA to uplift the economic status of its clienteles is sometimes not realized because of several factors I have noticed from more than a decade of field monitoring. There are cases were agricultural equipment, machineries and facilities given by the DA free-of charge are not maintained and/or left unutilized. Often times the loan obligations of farmers are not paid on time or are left unpaid hence, no possibility for next-in line beneficiaries to avail credit financing. There are instances also that recipients of production support services are politicized. These ill-practices cause majority of the farmers and fishers to become dependent on government interventions or at the mercy of credit facilities/financing institutions to support their agricultural production. While there are few agri-business entrepreneurs that excel, a great number of them are still engage in subsistence farming and hand-to-mouth living condition.