Volume llI, No. 3 MAY - JUNE 1985 ISSN 0115-9097

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AGRICULTURAL POLICIES FOR DEVELOPMENT

TOWARDS SUSTAINED PHILIPPINE EDITOR'S NOTE: The Philippine Institute for Development Studies has long beenAGRICULTURAL GROWTH: POLICY engaged in serious studies on agriculture as this is viewed as a critical sector in overall

ISSUES AND SUGGESTIONS* Philippine development. Way back in September 1983, the Development ResearchNews featured a special issue on agriculture. The articles in that issue made clear that

The agricultural sector is a key sectorthe potentials of agriculture couM very well be developed on equal terms with theof the Philippine economy. Taken to-commercial and industrial sectors.

gerber, agriculture, fishery, and forestry In this issue, the Development Research News presents brief summaries of theactivities account for more than a quarterpapers presented during a two-day seminar on Agricultural Policy hem on May 3-4,

of the total value of the gross domestic 1985. Our guest writer, Dr. Ponciano fntal, Jr., Chairman of the Department ofproduct (or considerably more ff theEconomics at the College of Development Economics and Management (CDEM) of

gross value added from agricultural the University of the Philippinesat Los Ba_os, introduces these summaries and suggestsprocessing were to be included), com-two broad themes that weave the papers together. The last article, also written bypose more than two-fifths of total ex-Dr. lntal, calls for increased support fbr agricultural research and improved publicports, and provide more than half of administration.

total employment. Thus, the growth per-formance of the sector has a tremendous The seminar-workshop on Agricultural Policy was eonducted at the Southeast

Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) inimpact on the rest of the economy. AtLos Baztos, and was jointly sponsored by the Center for Policy and Developmentthe same time, however, the growth per-Studies ( UPLB.CPDS), the Philippine Institute for Development Studies (PIDSJ, theformance of the agricultural sector is

heavily influenced by the policy environ- Philippine Council for Agriculture and Resources Research and Development(PCARRD), the International Rice Research Institute (IRRI), and the Agricultural

ment within which the sector operates. Development Council (ADC).

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TABLE OF CONTENTS POLICY ISSUES IN THE PHILIPPINE COCONUT

TOWARDS SUSTAINED PHILIPPINE INDUSTRYAGRICULTURAL GROWTH:POLICY ISSUES BY C. HABITO ......................... 7AND SUGGESTIONS THE COCONUT REPLANTING PROGRAM

BY PONCIANO INTAL, JR............... 1 BY J. SANGALANG ...................... 8RICE PRICING AND MARKETING POLICY POLICY ISSUES FOR THE PHILIPPINE SUGAR

BY F. LANTICAN AND L. UNNEVEHR ........ 2 INDUSTRYISSUES IN IRRIGATION WATER MANAGEMENT IN BY I. PABUAYON AND S. CATELO ........... 9

THE PHILIPPINES

BY MA. C. CRUZ, R. SlY AND W. CRUZ ........ 3 A CALL FOR INCREASED SUPPORT FORIRRIGATION AND RICE PRODUCTIVITY: THE AGRICULTURAL RESEARCH AND IMPROVED

PHILIPPINE SETTING PUBLIC ADMINISTRATIONBY J. SISON ........................... 4 BY PONCIANO INTAL, JR ................. 9

POLICY ISSUES ON RICE CROP PROTECTIONBY C. BANTILAN AND E. MAGALLONA ....... 5 PIDS UPDATE:

AZOLLA: A POTENTIAL SOURCE OF NITROGENFOR LOWLAND RICE CULTURE SEMINARS 10

BY E.T. CASTILLO, P.C. PAYAWAL, ET AL ..... 6FERTILIZER AND PHILIPPINE RICE PRODUCTION PIDS PUBLICATIONS AVAILABLE ............. 11

BY A. TE ............................. 7

....... II I III IIIIIII II I J I

PIDS DEVELOPMENT RESEARCH NEWS 2 MAY-JUNE 1985.... , ,, ,,=,, i| i

1[ III

Several recent papers, the majority of marketing efficiency. The challenge to for agricultural research and extensionwhich were wholly or partly funded by policy making, now and in the future, is (e.g., the development of azolla ecotypesthe Philippine Institute for Development to consider more carefully the appropriate appropriate for local conditions, Castillo

Studies (PIDS), have examined the policy level and form of market intervention. In et al.), as well as a call for research onenvironment of Philippine agriculture, this regard, the four principles to guide methods for maximizing fertilizer effi-

Most of the papers were written by the the process as spelled out in intal, David ciency and alternative sources of organicmembers of the Agricultural Policy Wor- and Nelson (1985) are worth mentioning fertilizer (Te), and on the proper use andking Group.** The papers of the Group here: impact of pesticicles (Bantilan andcontain a number of policy recommen- Magallona). In the last paper, lntal notesdations which are aimed at improving the (1) Markets should be presumed to be that government investment in agricultural

policy environment of Philippine agri- functioning well, unless it can be research (in real terms) during the 1970sculture to make the sector a vigorous clearly demonstrated that they are barely grew in the Philippines in contrast

anchor of the country's economic reco- not. Price variability and large to the significant expenditure increases invery and sustained growth, marketing margins are almost al- the agricultural economies of the ASEAN

There are two broad themes that ways evidence not of monopoly region.eweave the papers together. The first is practices but rather of an under-

Z I| Ill

that government trade and financial poll- developed market structure.

cies have unduly hurt agriculture. For (2) The private sector is almost RICE PRICING AND MARKETINGthe 1970s, this theme is best shown by always more efficient than the POLICYDavid et al. (1983) and is reemphasized in public sector. Being driven by theIntal, David and Nelson (1985). Lamberte profit motive, the private sector by: F..Lantican and L. Unnevehr

et al. (1985) indicates that the burden of can be expected to use resources Domestic rice prices have followed thethe macroeconomic adjustment during more efficiently than the public long-run trend in world prices. This is notthe past two years was shouldered more sector, surprising since both explicit budgetaryby the private sector, specifically the (3) The government should only in- costs and the implicit social efficiencyagricultural and export sectors, than by terfere where public benefits of costs of deviating from world price trendsthe government. In general, since these intervention are much larger than are large. Keeping domestic rice pricessectors can be expected to be logical public costs, close to world price trends encouragesanchors for economic recovery, the (4) The government need not buy and the most efficient allocation of domesticdisproportionate burden imposed on sell directly in order to influence resources.

them partly explains the difficulties in prices. The use of variable export The short-run variability in world

adopting the macroeconomic adjustment and import taxes, for example, rice prices creates the need for someprocess. Towards stimulating the econo- can provide domestic price stabi- type of policy to provide domestic pricemic recovery, it may be well to take a lity (Lantican and Unnevehr). stability. The central price policy issue isshort-term macroeconomic strategy of The papers argue that government how to manage trade or stocks to providefurther fiscal discipline and a more expan- efforts could be more fruitfully directed tbr gradual adjustments to world marketsionary monetary policy stance vis-_ -vis towards improving the institutional frame- trends. The thin world rice market means

the private sector, work of, and infrastructural support fbr, that participants must bear substantialThe second theme that is pervasive in farming and agricultural marketing. Pubhc search and transaction costs, which will

the studies is for government to deem- investments in market infrastructure (e.g., be particularly true for the Philippines inphasize its direct intervention in the con- farm-to-market roads, ports), market in- the near future, since the country is like-trol of the domestic and international formation dissemination, and the proton- ly to continue to shift from being a mar-marketing of agricultural output. The tion of competition in agricultural ginal exporter to a marginal importer andpapers of Lantican and Unnevehr, Pabua- trading can reduce marketing margins vice versa. Thus, trade and buffer stockyon and Catelo, Habito and Te indicate and price uncertainty (Lantican and Un- policy must be flexible to handle boththat government intervention in market- nevehr, also Habito). surplus and deficit years.ing during the 1970s had, on the whole, Habito, Pabuayon and Catelo argue The government has relied on the con-an adverse effect on farmers' income and for a serious examination of the tenurial trol of international trade to influence do-

= relationships in the coconut and sugar mestic prices, but this has had some un-*This article draws heavily from the over- industries, including the feasibility of expected effects on the market. During

view paper written by C. David, G. Nelson instituting land reform in these industries, the importing years of 1961 to 1973,and P. Intal, Jr. for the May 3-4, 1.985 seminar- In the area of irrigation, there are persua- imports frequently arrived after the newworkshop on Agricultural Policy, U.P. LosBanns_ sive arguments for continued government harvest had already begun. Government

**The Agricultural Policy Working Group is subsidy even as the National Irrigation delays in contracting and disbursinga project of the UPLBCenter for Policy and Administration has further streamlined imports meant that supplies were not

DevelopmentStudies, involving individualstaff its operations and strategies for cost available during the lean season whenmembersmainlyfrom the UPLBand IRRI. The savings and greater operational effect- they were needed, and this had led togroup has been cooperatively funded by PIDS,PCARRD,IRRI, ADCand UPLBOfficeof the ivity (Cruz et al.; Sison). All the studies unusual seasonal price fluctuations inDirector for Research. argue for increased government support deficit years.

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PIDS DEVELOPMENT RESEARCH NEWS 3 MAY4UNE 1985IIII I II 1111 III I

': . . . The government has relied on the replacement of private storage with ISSUES IN IRRIGATION WATERthe control of international trade to subsidized public storage. Since inter- MANAGEMENT IN THE

influence domestic' prices, but this vention did not hold actual market prices PHILIPPINES

has had some unexpected effects on within official price bounds, privatethe domestic market.. _ " traders are still able to store .rice. by. Mr. C. Cruz, R. Siy and W. Cruz

,, =,,, ,,, The results suggest that the government The responses of tile National Irrigationneeds to reconsider its domestic marke- Administration (NIA) to cutbacks in the

During the surplus years of the late ting role carefully and to set more expficit irrigation budget and to the rising costs of1970s, the government monopoly on in- intervention goals. One alternative would irrigation operation have been: (1) toternational 'trade prevented world quality be to set a reference Manila price that reduce the rate of increase of new areas

premiums from being reflected in dora- would follow world market trends. Dora- for irrigation; (2) to shift investmentestic prices. Private millers did not have estic marketing costs would then deter- priorities to rehabilitation versus newthe incentive to meet world market mine other prices throughout the country, construction; (3) to increase the develop-standards for consistent blends of head. In the domestic market, the government ment of small-scale communal projectsrice and brokens or to develop quality could then compete with the private relative to large-scale national systems;control institutions within, tile private sector, either when farm prices are lowest, (4) to improve water fee collection ratestrade. This reduced the ability to export or whenever retail prices are highest. On and increase the total mnount to be

profitably because the government in- the other hand, in defining a domestic charged for irrigation services in.the future;

curred reprocessing costs to meet export market strategy, the government needs to and (5) to gradually shift operation andstandards, decide whether subsidizing marketing maintenance (O&M) responsibilities from

On the other hand, government is to costs is desirable or feasible. An explicit NIA personnel to water user organiza-be commended for reacting to the shor- budget allocation to cover the stated goals tions through greater farmer participationtage of domestic supply in 1984 with the of intervention could then be made, rather in O&M system activities_timely disbursal of tinports. Past ex- than financing operations from implicit Two key policy issues become im-perience does suggest that in the medium- capital subsidies and monopoly rents, mediately apparent from these responses.'to long-term, some redefinition of the Given tile sheer magnitude of the rice The first issue raises the question ofgovernment's role in rice trade is needed, trade in the Philippine economy, it is whether, in fact, there is a case for subsi-

The goal of providing price stability likely that the government's role in trade dizing irrigation development, and whatcould be achieved through relying more will be small. Therefore, the govermnent the potential impacts of the subsidy onon the private sector and using wtriable agricultural production, and income dis-

export/import taxes. A domestic price ,ll ,., tribution are. If the benefits on an irriga-goal (i.e., a Manila reference price) could ".. _ The government needs to use tion project are spread over a wider class

be set and then a variable export tax its scarce resources to promote of people it will be infeasible to assess

could be imposed that would be equalto domestic marketing e.¢ficiency, charges against indirect beneficiaries

the difference between the domestic price instead of creating a segmented and unfair to have fa,'mer-irrigators beargoal and the actual world price_ The pri- market. " the full burden of repaying project costs.vate sector could then undertake what- A fee schedule, when devised, shouldever traffic would be profitable_ ' ' scale water charges only against in-

An analysis of domestic market inter- needs to use its scarce resources to pro- creased net incomes arising from irri-vention shows that defense of the ceiling mote domestic marketing efficiency, in- gation (as compared to rainfed conditions).price has beenmore effective than defense stead of creating a segmented and in- An issue that is closely associated withof the floor price_ Disbursements have efficient market, water charges is the enforcement or

been determined byhighrice prices, while In the long run, all rice producers and collection problem. NIA has introducedprocurements have not been concentrated const, mers willbenefit from the reduction several collection schemes which in-

where prices are lowest. Domestic floor of rice marketing costs. This can be trod.uced institutional controls by water

and ceiling prices are not defined with achievedthrough the government's role in user associations, in both the collectionrespect to location, and in the case of infrastructure investments (i.e., trans- of fees and the actual, operation of theceiling prices, neither with respect to rice port and comnmnications); as well as system.grade. The recent redefinition of ceiling through agricultural reseaJ'ch to reduce While repayment forms part of theprices to allow for grades may be un- postharvest losses and the development of process of development borrowing, itwieldy to administer, particularly if financialinstitutions. • does not follow that direct beneficiariesgrades do not agree with consumer of the project must bear the full burden

preferences. _, ,,, ........ of recovering total project costs. ThisThe difference between ceiling and ,, higldights tire distinction between pro/eel

floor prices is ,rot enough to allow private . . .Ttle resulls suggest that the administration which runs and administers

traders a reasonable return to storage governmen[ needs to reconsider the project and .financial administrationbetween harvests, particularly now when its domestic marketit,g role care- which, negotiates and pays for the loan.capital costs are very .high. Thus, an im- fully and " to set more explicit The former is the job of NIA, while the

plicit goal of intervention remahls to be intervention goals... " _. latter is the job of the Finance Ministry.IIIl In IIIII I IIIII II IIII ii llil iii i •

PIDS DEVELOPMENT RESEARCH NEWS 4 MAY-JUNE 1985I II I II IIIII

The second issue has to do with the istration and widespread institutional able in the near future unless major prob-

need to make water charges correspond reform will be needed to go beyond lems besetting the irrigation machinery ofmore realistically to actual irrigation construction, and enhance administrative the country are resolved. These problems

delivery services. Since full irrigation capability.e relate to:potentials are seldom achieved, programs (1) The design and planning of systems.for improving water management and for There is incompatibility between the irri-reducing inefficiencies in irrigation de- IRRIGATION AND RICE gation system design and the actuallivery will have to be devised. PRODUCTMTY: method of water allocation and distribu-

The problems associated with poor THE PHILIPPINE SETTING tion, and this affects the level of operationirrigation water management include: (1) and maintenance (O & M) in terms ofincompatibilities between irrigation by: J. Sison activity and costs. With some systemssystem design and actual operation being either underdesigned or over-(which are reflected, for example, in the The Philippine government's efforts designed relative to crop water requirerproblem of intensive vs. extensive water toward the attainment of increased pro- ments, and the manner by which waterdistribution); (2)problemsofwatertiming duction are reflected in the large invest- is delivered to the benefitted areas, therelative to crop needs (such as the under- ments made in irrigation construction and magnitude of cost requirements forestimation of land preparation duration); rehabilitation during the last two decades. O & M is quite considerable.(3) prevalence of unequal access to water These investments are generally made by (2) Operation and maintenance. NIA'swithin a system (e.g., between upstream the National Irrigation Administration severe shortage of funds and equipmentvs. downstream users); and (4) inadequate (NIA), which is responsible for the super- to properly maintain specific irrigationorganization for operation and mainte- vision, operation and maintenance of facilities, together with the lack ofnance, irrigation systems in the country, physical facilities, has led to the inability

In view of the above discussion, the A tremendous expansion in the service of individual systems to ensure adequate,following policy proposals are recom- area occurred from 1950 to 1982. How- equitable and timely distribution ofmended: ever, in spite of this rapid expansion, irri- water to farmer-beneficiaries.

1. Creation of alternative pricing strate- gation development in 1982 covered only (3) Water management problems.gies. Differential water charges, for 42% (or 1.32 mfllionhectares) of the total Effective water management essentially

example, between regions and within 3.1 million hectares of agricultural land requires a close coordination betweenNIA and the farmer-beneficiaries throughirrigation systems, and the provision of which are potentially irrigable.price support to agricultural produce are Considerable improvements in rice the community organizers and farmernecessary to increase the ability to pay of yields and production were observed in associations. However, the success of thefarmer-irrigators, the period of irrigation expansion, mainly participatory approach in water manage-

2. Improvement of"operation and main- due to complementarities among modern ment largely depends on: (a) the perceivedtenance (O&M} of national systems. This rice varieties, fertilizer application, and need of farmers to participate in farmercan be done through (a) conversion of expansion, and improvement of irrigation associations, and Co) the perceived needsmal! and financially marginal national facilities. Future rice production increases of NIA regarding farmer assistance in

projects into communal systems, and depend on the performance of individual water management. In general, theproblems of efficient water management(b) gradual shifting of responsibilities for irrigation systems in minimizing opera- arise from the complex relationship in-irrigation operation from NIA project tion and maintenance costs while pro-managers to water-user organizations, viding dependable water delivery seivice, volving technical, socio-economic and3. Maintenance of NIA's financial viabi- In many sites, the communal type of institutional factors.lity. To increase NIA's operating budget, irrigation system seems to be most cost- (4) Collection of irrigation service fees.new ways of improving fee collection effective in terms of lower construction The water ,management problems being

rates (to recover part of O&M costs) will cost per hectare and per unit of output, experienced by systems, particularly 'thehave to be devised. Also, NIA will need to as well as of lower operation and main- national systems, arising from poor O & M

explore new sources of income such as tenance costs. Cropping intensity and performance has led to a lack of credi-rental of equipment and other services, yield are lower than with the other types bility of the NIA with farmer-beneficia-4. Transition from construction-oriented of systems, but the communals are con- ries, as reflected in the low irrigation

agency to an O&M-oriented agency. New siderably less expensive to construct, service fees collected. Unfortunately, thiscapabilities and skills in project admin- Thus, they are the most effective systems has led to a vicious cycle of decreased

in providing incremental production. Fur- funds for O & M -- less O & M, greater'" '" thermore, communals (and gravity farmer frustration, and lower payment

"The problems associated with systems in general) have relatively high of fees.

poor irrigation water management economic efficiency due to low invest- (5) Current economic environment.include. incompatibilities between ment, operation and maintenance costs. The current economic environment which

It should be noted that the heavy may persist over the succeeding years

system design and practice; water burden on irrigation of increasing Phil- may preclude the attainment of NIA's

timing, unequal access, and inade- ippine rice production through improved yearly target of additional irrigated areas.quate organization... " yields in irrigated areas may not be attain- Such a pessimistic forecast may be at-

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PIDS DEVELOPMENT RESEARCH NEWS 5 MAY-JUNE 1985I II IIII III I II I IllllllI IIII I I

tributed to: (a) the shift in the govern- proper use, generates problems and ad- practice among farmers, a further studyment's emphasis on sectors other than verse side effects such as ecological dis- that includes the farmers' level ofapplica-irrigation; (b) delays in the release of ruption, environmental contamination, lion in measuring profitability may in-project funds which have resulted in the residues on food and feed, toxic and other dicate more interesting implications. Fordelayed prosecution of a considerable adverse effects on man and other non- example, it may show whether or not un-number of systems, thus setting back target organisms, This two-sided nature of derdosing (which is the usual practice ofimplementation timetables; (c) the rising pesticides brings up several interrelated farmers) achieves control at an econo-costs of irrigation development; and questions such as: mically profitable level. If so, farmers(d) NIA's increasing emphasis on rebabi- i) Are we satisfied with the current may be shown to be using a dosage levellitation projects as well as on the cons- state of affairs? which is more economical than that made

truction of communal systems, ii) Even on the assumption that we in standard recommendations.

The NIA is aware of the prevailing are, could additional measures Regulation of Pesticides and its Imple-problems within its environment. Such result in a safer envkonment? rnentationawareness is reflected in the policy iii) What are the constraints in our The FPA has been mandated with the

measures which the agency has adopted, having a safer environment? immense task of regulating and monitor-and intends to adopt, to curb these iv) Are we doing something about the ing pesticide use in the Philippines sinceproblems in order to facilitate the efficient problem? 1977. To start with, there was a low leveloperations of the NIA irrigation mach- One measure calls for a more rigid of expertise on pesticides in both theinery.o evaluation of pesticides for registration, government and private sectors, and FPA

However, a hindrance to the effective im- operated with limited staff support and' ' ' plementation of this measure is the limited resources. After eight years of operation,

POLICY ISSUES ON RICE CROP expertise of the Fertilizer and Pesticide the agency is still faced with similar cons-PROTECTION Authority (FPA) with respect to evalua- traints. There is still a dire need for

tion. For example, the FPA does not have support mechanisms and experiencedby: C Bantilan and E. Magallona enough expertise in toxicology, which is a personnel to help develop and implement

critical area for evaluation, its various functions and programs. TheMan's efforts to increase rice product- Other measures suggested to attain a paper reiterates the importance of the

ion to meet growing food needs is ham- safer environment with pesticide use are: following measures to help FPA attain.pered by the increasingly serious problem (a) substitution of highly toxic corn- its mandated objectives. Some of theseof protecting the rice crop from pests, pounds with less hazardous substitutes; are:

Through the years, alternative pest corn and (b) dissemination of information i) A coordinated plan under whichtrol strategies have been developed and about the hazardous effects of pesticides,

professionally trained and ex-recommended. These varied from the use and guidelines with respect to the proper perienced personnel from agenciesof chemicals or pesticides, various cultural handling of these compounds, that are directly or indirectly in-practices, biological controls, and a corn- Efficiency-Productivity Issue volved in the pesticide industrybination of these. The task of this paper On the one hand, the application of may be tapped to mininlize theis to present and evaluate important issues pesticides has proven to be effective in cost and maximize the efficacy ofinvolved in the problem of pest control, the prevention ofcroplosses, thus assuring FPA;

and attention is focused on two topics: (to some extent) stable rice supply and ii) The training of laboratory and ex-(a) pesticide use, and Co) pest manage- price levels. On the other hand, the high tension personnel at all levels ofment in the Philippines. cost of chemical inputs and the cost of agricultural management;

application cannot be ignored. The iii) The continuing inspection and in-A. Pesticide Use following question is raised: "How eco- vestigationofpesticideuse,licenses

With regard to pesticide use, four issues nomically profitable is it to prevent yield and marketing samples with en-are addressed as follows: (a) problems losses with pesticides?" forcement or legal action as a finalwith pesticides, (b) the efficiency-pro- The basic finding of the studies under- resort to ensure safe and effectiveductivity issue, (c) regulation of pesticide taken to resolve this question was that programs;

use and its implementation, (d) confiden- high levels of insect control added more iv) Closer attention to the fieldtiality vs. right to know, and (e) local ma- to production cost than to the value of aspects of regulation to protectnufacture of pesticides and nationalism in the yield. Using the ratio of added returns the small farmers. For example,trade, to added cost as a measure of economic there is a need for the establish-

profitability, it was found out that the ment of necessary checks on theProblems with Pesticides lowest level of application was most profit- classification or mislabeling of

Pesticides have proved to be a power- able. pesticides.ful tool that can be brought to bear "[he paper notes that the conclusionquickly on a pest l_opulation outbreak, obtained in these studies is limited because Confidentiality vs. rightto knowHowever, extreme reliance on this method it does not include the farmer's level of While the need for confidentiality in aof pest control, coupled with the tempo- application. Since underdosing (applying regulatory agency is recognized especiallyrary nature of its effectiveness and ira- below recommended levels) is a common as it applies to commercial secrets and

PIDS DEVELOPMENT RESEARCH NEWS 6 MAY-JUNE 1985I III I II II I I

proprietary data required for registration, need careful study include pest biology command of rice farming. The value ofthere are data generated by FPA, or at its and population, dynamics; natural enemies today's azolla technology for less skilledinstance, which cannot be justifiably of pests;forecast of pest population levels; farmers has yet to be documented. Thelabeled as confidential. For example, the and determination of economic threshold most notable area in the country that hasvast amount of residue data on our vege- levels. In. addition training and support successfully adopted azolla technology ontable and lake ecosystems cannot be jus- is needed for person.nel who can help ira- a large scale is South Cotabato, whiletifiably made confidential because (1) plement pest management programs at other areas have reported limiteduse.

'there are no interests tobe jeopardized by the farmer's level. Finally, the develop- Three types of problems have beenmaking the information public, and (2) ment of a pest management approach encountered in the process of promotingthese data are generated by public funds which is compatible with local .resources the use of azolla particularly in lowlandso that the public has the right to demand technical skills and the small-scale labor rice culture - biological., socioeconomic,an "accounting" of this expenditure by intensive farming technology of the Phil- and administrative.

way of having the data made public. Thus, ippines, should fill file gap between Biological. Success in the use of azollathere is a need for settling tile issue of research and extension.o at the farm depends to a large extent onwho is supposedto decide on what things the ecotypes available in the country_are to be kept confidential or declas- ' ' ""' Theoretically the limits of azolla's use-sifted, and on what grounds it is justified "After eight years of operation, the fulness are defined by its suitability toto hold these data. FPA is still faced with similar local conditions.

Local Manuf'acture of Pesticides and constraints . . . There is still a dire At the moment, the ecotypes available

Nationalismin 7Yade need for support mechanisms and are mostly of foreign origin. Obviously,

The local manufacture of pesticides experienced personnel to help dev- the performance of these materials will

has its advantages and disadvantages. On elop and implement its various differ from their performance at the place

the one hand, the establishment of a local functions arm programs.. _" of origin, particularly if the origin has afacility to manufacture pesticides could ,, ,,,, temperate climate. Among others, theeasflyleadtopricereduction as experienced growth of azolla depends on temperature,

by Malaysia with paraquat, wherein, alocal AZOLLA: A POTENTIAL SOURCE relative humidity, sunlight water, andpesticide facility can utilize the by-pro_ OF NITROGEN FOR LOWLAND phosphorous; and azolla will not thriveducts of existing manufacturing facilities. RICE CULTURE very well unless the optimum conditionsOn the other hand, the local manufacture for growth are provided. The azolla

of pesticides could be a possible source programs in the Philippines has recog-of environmental contamination problems by: E.T. Castillo, P.C. Payawal and nized these limitations by adopting short-resulting tkom by-products and wastes of other members of the National Azolla run measures, such as priority dissemina-

the plant. The issue that needs to be ActionProgram, U.P. in Los Ba_:os. tion of the technology in irrigated areassettled is whether or not we are techno- Exper,-nent station results and the with. relatively high levels of availablelogically prepared to inil_mize the poilu- experience of some farmers suggest phosphorous. Long-run measures shouldtion potential of a local pesticide faci- that azolla has the potential to be an also be undertaken to maximize the bene-lity so that what happened in Bhopal important source of nitrogen for low-land fits from the technology. The most im-would not be repeated_ rice culture. Based on available informa- portant of these is the development of

With. respect to the policy on natio- tion, az.olla use can. reduce the need ecotypes appropriate for localconditions.

nalism in trade, a positive step that has for inorg.anic N, farm chemicals and labor There is a need, therefore, to expandbeen reiterated is for FPA and its support in hand weeding, all of which contribute basic research on genetic developmentagencies to assist Filipino entrepreneurs to increases in.the income of rice farmers, and on the ecological implications of

in the registration of their products, and generate savings of foreign exchange from spreading the plant species.to facilitate access to available tecb.nical the importation of inorganic fertilizer, Socioeconomic. Farmers are rationaldata and consultation services, tb.rough and help avert a possible drop in rice pro- producers; they adopt innovations pro-govermnent institutions and universities, ductivity due to inadequate application vided that in their own. terms, the eco-

of inorganic fertilizer, nomics of their use is clear. So far, thereB. On Pest Management Azolla technology can "also be an have been successful users of azollawho

Pest management is a control strategy answer to the problem of supplying in- could serve as models in the use of thethat combines chemical, biological and organic fertilizer to inaccessible areas technology, but the success story has notnatural agents in controlling pests in order since azolla can be produced on the farm_ as yet involved a larger number of poten-to balance yield loss, environmentalsafety The application of _olla can be made to tial users. Also the processes involved inand farmer's capabilities and resources, coincide with :farm operations like land the successful use of azolla are not clearThe basic idea ofpest management has preparation and rotary weeding so that to many of the designated change agents.gained wide acceptance but its effective its use will not entail adjustment in farm Consequently, this limits the aggressiveimplementation has barely started in the operations, capital outlay and unwar- extension of the technology. Thus, it isPhilippines. There is a need to expand ranted increases inlabor input, imperative to educate the change agents.research and development programs on Current adopters of azolla, however, on the short- and long-run potentials ofpest management systems. Areas that are generally farmers with technical the technology for both the rice farmersII IIIII IIII III IIIIIIIIIIIII

PIDS DEVELOPMENT RESEARCH NEWS 7 MAY-JUNE 1985III ! II IIIII I

and the economy, other than under, should be as a very short-term measure The provision of farm credit will as-standing potential users' perception of and should be lifted as soon as possible.* sume even greater importance as coconutazolla. These perceptions can provide farming becomes more input-intensive asbasic researchers with information that ' " • _ a result of the hybrid replanting andis useful in the development of appro- intercropping programs. This must bepriate technology. POLICY ISSUES IN THE PHILIPPINE undertaken with new and creative mecha-

Administrative. The rate of' dissemi- COCONUT INDUSTRY nisms to overcome past problems expe-nation of the technology depends partly rienced in credit programs for rice. Seek-on the administrative structure of the by." C. Habito ing to supplant traditional credit sources

program. At the moment, there are two The coconut industry is currently un- especially the "suki" system does notazolla programs and both perform re- dergoing rapid changes. Presidential De- appear warranted_ These credit-marketing

search and extension. For efficiency and cree No. 1960 which reopened coconut tie-ups have become a way of life in theeconomy, there is a need to streamline oil exportation to competitive forces has coconut industry (as well as in other cropthe administrative structure of the just been added to thelonglist of govern- sectors) and fill a real need in the indus-programs.o ment measures which started with Public try by providing farmers with a ready

,= Act 2598 in 1916, pertaining to the coco- source of credit when formal credit isnut industry, inaccessible for economic or practical

The long history of legislation at'fect- reasons. Credit policies in the coconutFERTILIZER AND PHILIPPINE ing tile industry attests to its significant industry must be--formulated on the basis

RICE PRODUCTION role in the Philippine economy, a fact of lessons learned from the experiencewhich has been recognized by generations with the rice industry. One such lesson

by:A. Te of lawmakers. Whether this significant is that credit policies in a particularrole will be maintained in the decades crop sector cannot be taken in isolation

With the production of the semi- ahead rests heavily on policy directions from those in the rest of the economy,dwarf, fertilizer-responsive, photoperiod taken today. For this reason, enlightened considering the scarcity of capital and

insensitive rice varieties in the Philippines public discussion of policy issues within the need to find the most productivein 1966, fertilizer became a very im- the industry is of great importance at uses for it. Second, it should be recog-

this time. nized that the problem is not so muchportant ingredient for achieving high pro-duction. Recognizing the critical role of In production, low productivity and one concerning interest rates, but offertilizer, the Philippine government had the resultant low incomes have been the credit delivery mechanisms. This is theintervened actively in the fertilizer pricing main problems of concern. These pro- greater chaUenge that should be faced bypolicy through direct and indirect sub- blems have both an agronomic and a farm credit experts.sidles since 1973 with the intention of socioeconomic dimension, and govern- , , ,

providing cheap fertilizer to the farmers, ment policy must address both. "['hena-"InHowever, except for the years 1974 tional hybrid replanting program is the production, low productivity

and 1975, it is very questionable whether appropriate response to the agronomic and the resultant low incomes havefarmers had actu_y benefitted from the aspect of the problem, but it is important been the main problems of concernlarge amount of money spent on the sub- that its implementation be efficient (both .... these problems have both ansidles, in the technical and economic sense) as agronomic and a socioeconomic

The effect of small changes in ferti- well as equitable. Changes that appear dimension, and government policylizer prices on the amount of fertilizer warranted in the program include: must address both .... "

use by farmers is debatable. Other fac- 1. Promotion of other hybrid varietiesII I I I II

tors such as availability of credit, well- besides the MAWA variety which is cur-

controlled water supply, palay price and rently the exclusive choice of the pro- The need for extension services like-fertilizer efficiency are believed to be gram; wise becomes even more important as

more important in determining the level 2. Strategic dispersal of hybrid seed- the hybridization and intercropping pro-of fertilizer use by farmers. Hence, it is nut farms among the various coconut re- grams make the coconut less a "lazyrecommended that it would probably gions of the country, using varieties best man's crop," and more a component .0fbe better for the government to mini- suited for each particular region; an intensive farming system. Share te-mize its direct intervention in the opera- 3. Market provision of seednuts (i.e., nancy continues to be a barrier to in-tions of the fertilizer industry and in- voluntary purchase and planting by far- creased productivity on coconut farms,stead, concentrate its efforts in strength- mers), accompanied by an active nation- suggesting the need for the renewal of

ening its research capabilities, in search of wide campaign to demonstrate the pro- agrarian reform efforts in the industry.methods for maximizing fertilizer effi- fitability of hybrid replanting; Any effort to improve the lot of mem-cieney and alternative sources of organic 4. Improved loan assistance to farmers hers of the coconut industry must also

fertilizer. In addition government will do who engage in hybrid replanting; and consider the plight of the sizeable groupwell to build its training and extension 5. Increased and continuous research of landless workers who have been largely

program. If direct subsidy were to be re- to identify, develop and evaluate pro- overlooked by government policies.sorted to again as a policy instrument, it mising new hybrid varieties. Many of the policies that have affectedI III I I III IIII I II II II

PIDS DEVELOPMENT RESEARCH NEWS 8 MAY-JUNE 1985

coconut farm incomes in recent years try is essentially a price-taker, this is the agency breeding program would definitelyare directed to the trading and processing only way to increase the income of the facilitate the speedy development of

sector of the industry. The vertical Lute- industry, particularly of the farmers alternative planting materials if adequategration program, while originally con- and landless laborers who account for the financial support were available.ceived to benefit the farmers, has largely The coconut authorities should be

failed to deliver tangible long4erm bene- _' "'" commended for recognizing the need to

fits commensurate with the costs which ".... In a market where the country have several hybrid .alternatives for re-

farmers have shouldered to finance it. is essentially a price-taker, in- planting. The project on Regional Testing

Reopening the coconut off industry to creased productivity is the only of Promising Coconut Hybrids and Cul,

competitive forces seems a logical step, way to increase the income of the tivars (PCARRD-Special Project) involvesafter the recent years' experiments with industry..." the testing of up to 10 promising coco-market control through UNICOM, which nut hybrids and one local cultivar in

have failed to yield convincing benefits various locations in the country.for the farmers who nominally own it. vast majority of its members. This is also Of the five participating institutionsThe attempts to promote the coopera- a logical response to similar moves on that entered their hybrids for testing,tive marketing of copra through COCO- the part of countries producing closely however, only one showed the capabilityMARK have likewise failed to gain signi- competing oils to coconut oil, especially to produce and distribute large quantitiesficant headway due to the farmers' palm oil and soybean oil. Long-run gains of seednuts in the event that its entry is

preference to deal with private traders in productivity cannot translate into im- picked over the others. If another agency'swho extend advance credit, as well as the proved welfare for the vast majority of entry were to be found superior, thereconflict of interest facing the COCOFED the members of the industry unless this would be no mechanism for the corn-

trader-members who are often tasked is accompanied by a well-functioning mercial production of the seednuts. Thus,with managing COCOMARK operations, market system.e it is important to fill this gap as early asThese problems suggest that cooperative ,,,,,=, , possible.marketing efforts can only succeed if the Research results show that the per-buying stations operate in the same way Tangible benefits could be formance of different hybrids variesas traditional "suki" traders, and if these provided to producers by simply according to location. This suggests that

are controlled by producers themselves, improving their links to the market a given hybrid can be recommended onlyUNICHEM promises long-run benefits to through better market information to a particular location/region where itthe industry by expanding the market for and transport facilities .... " performs well.coconut products and adding more value- , , , The susceptibility of the foreign by-added to the domestic coconut industry, brids to strong winds observed duringHowever, any such benefits must ulti- THE COCONUT REPLANTING typhoons should serve as a warning. It ismately redound to the farmers, and not PROGRAM very risky to plant these in the typhoonjust to the few who hold control over belt. In this connection, research on the

these firms' business operations as trustees by: J. Sangalang identification and selection of hybrids/of the farmers. Thus, there is a need to cultivars which can withstand strong

reexamine the granting of monopoly Results from the Pilot Hybrid Farms winds is needed. This involves the screen-rights over the importation of petro- and PCA research centers indicate that, ing of hybrids arid cultivars for a more

chemical to UNICHEM. under recommended levels of inputs balanced development of roots, stems,Tangible benefits could be provided the foreign hybrids perform somewhat leaves, and bunches, and the anato-

to coconut producers by simply ira- better than the local talls and hybrids in mical characterization of the strengthproving their links to the market through terms of nut and copra yield/hectare, of the fibers of their leaf petioles.

better market information and trans- although there are some local hybrids and The abandoned pilot farms are appro-portation facilities. Such improvements cultivarswhich show promise, priate sites to observe the performancecan be expected to result in better prices The University of the Philippines at of the hybrids under the level of manage-for farmers by helping reduce monop- Los Bafios has several tall cultivars merit provided by the farmers. The pest

sony power in copra trading at the farm and at least 10 dwarfs and 25 hybrid and disease reactions of the palms in

level. While the importance of market crosses; PCA has a least 39 local culti- these abandoned farms should be moni-infrastructure and information improve- vars and around 42 hybrid crosses in their tored regularly. No one knows when aments has long been recognized, there research stations. Other local institutions new or unusual disease may appear on

continue to be insufficient investments in like VISCA and TRRC are also doing those palms and .regular observation canthese areas of the industry. A proposal is some coconut collection and breeding provide an immediate warning.to set aside at least part of what remains work. All of these institutions need sup- Existing data indicate that the foreign

of the huge sums raised by the coconut port to test their hybrids and cultivars hybrids perform relatively better than thelevy for these purposes, under varied environmental conditions, local tall cultivars and hybrids given

In the long-run, much depends on the These institutions already have qualified optimum cultural management practices.

industry's capability to increase its pro- personnel to conduct crop improve- They were not tested, however, underductivity. In a market where the coun- ment work. A highly coordinated, inter- varied environmental conditions.

IIII llIllIII IIIII I I

PIDS DEVELOPMENT RESEARCH NEWS 9 MAY-JUNE 1985nUll II i InIII i li I I

This kind of research is indeed of high national trade. Although lOng-term con- possible restructuring of the processingpriority since we need to identify the tracts made in 1980 with foreign buyers sector could include a government deci-

planting materials that are appropriate proved beneficial, earlier marketing stra- sion to reduce excess milling capacity into the low levels of inputs that are likely tegies led to unprofitable sales. Heavy the inefficient, publicly-owned mills.to be used by farmers, investment in sugar mills, for example, Such mills could be offered for sale to

Should the government proceed with in the mid-1970s, resulted in unpro- interested domestic and foreign buyers.the replanting program using the foreign fitable milling capacity. In summary, the most important rolehybrids, a mechanism to support the Recent domestic and international of the government should focus on theinput needs (fertilizers, pesticides, etc.) of developments suggest the declining irn- following areas:the hybrids must be instituted. With the portance of the sugar industry in Philip- 1. Sale of the U.S. quota to producerspresent tight economic situation, this pine foreign trade and its limited poten- and use of sale proceeds to financemight be very difficult to provide.* tial to provide growth in incomes and programs that would avert short-tun

,, =, employment opportunities. The industry industry adjustment problems;is saddled with problems of high produc- 2. Resolve issues related to" land

POLICY ISSUES FOR THE PHILIPPINE tion costs and interest rates, low sugar reform and credit problems to encourageSUGAR INDUSTRY prices and the recent inability of NA- diversification among sugarcane faims,

SUTRA to make full payments to 3. Provide market information and in-by: I. Pabuayon and S. Catelo planters. Furthermore, world market frastructure to enable producers to make

developments indicate that poor prices sound production and marketing deci-The sugar industry, which is one of the will continue to prevail in the near future, sions and improve the marketing system

country's oldest and most important in- with little indication of any significant in general; and lastly,dustries, has received considerable govern- price improvement in the long-run. 4. Fund research to improve farm andment attention, regulation and support. In view of these developments, there is processing productivity and sugar outputThere are two distinct periods of policy a need to reduce production. At current diversificationeenvironment after World War II: first, world prices, most sugar production is un- , ,,,, ,,the years preceding 1974, and second, profitable and crop diversification is

1974 and thereafter. During the first essential to counteract the potential nega- A CALL FOR INCREASED SUPPORTperiod, government intervention consisted tire consequences of reduced sugar pro- FOR AGRICULTURAL RESEARCHprimarily of policies that governed duction. Diversification of some form AND IMPROVEDPUBLICsugar trade with the U.S. After 1974, the (e.g., intercropping, diverting some sugar ADMINISTRATION*government assumed more direct control lands to the production of other crops, orof the industry through full takeover of sugarcane-livestock integration) could re- by Ponciano lntal, Jr.domestic and export marketing, suit in higher production value per hec-

Government intervention has had tare and has the potential to increase One "public good" that the govern-varied effects. Both policy environments, employment through the planting of merit should have provided more, butthough distinct from each other, had crops that are more labor-intensive than has not, is research and extension. Tech-little effect on sugar productivity which sugar. For crop diversification to gain nology development, which calls forhas remained low. Credit policies resulted momentum, issues related to land reform research and extension, is needed before

in the sugar hrdustry having the biggest and possible forfeiture of credit lines with agriculture becomes a vigorous leadingshare in total agricultural credit, and since banks when planters shift to nonpriority sector of national development. Research,the amount of the production loan was crops must be resolved, both agronomic and socioeconomic, isbased on the planter's estimated volume For the industry as a whole, there is a the best and, ultimately, the cheapest wayof production, the large sugar planters need for minimum government inter- to be competitive internationally and toreceived the bulk of sugar production vention. The recent announcement of the generate (and maintain) food self-suffi-credit_ On the other hand, fertilizer government to subsidize the sugar indus- ciency.price policies have not been favorable to try by paying the producers a liquidation In a review of resource allocation to

producers. On the average, farmers have price of P300 per picul through the national agricultural research in Thirdpaid more than the world price for ferti- Philippine Sugar Marketing Association World countries during the 1970s, con-lizer. (PHILSUMA) deprives the consumers of ducted by the International Service for

Until 1974, sugar marketing and the benefits of low world sugar prices. It National Agricultural Research and thepricing policies were closely tied to U.S. is not clear why the consuming public International Food Policy Research Insti-

sugar trade policies, and maintained pro- _ould bear the cost of the subsidy which tute, the Philippines ranked behind India,ducer prices above the world price for benefits the big, efficient planters. With Indonesia, Malaysia, Korea, Bangladesh,sugar on average. On the consumer side, respect to international trade, the govern- Thailand, and Pakistan in agricultural

government policies have reduced price ment .should sell the U.S. quota to produ- research expenditures as a percentage ofvariability but appeared to have a mini- cers. The proceeds of the sale could be the agricultural value added (using 1980mal effect on consumer demand, used to finance programs that would help data). The Philippine agricultural research

The government had mixed success in solve short-run dislocation problems re- expenditures at constant prices barelyits attempts to interfere directly in inter- sulting from industry adjustments. A increased during the 1970s. In con-

II I i i Bill IIII il III lilll i in

PIDS DEVELOPMENT RESEARCH NEWS 10 MAY-JUNE 1985

in hrdonesia, Malaysia and Thailand tralization to become more effective,increased tremendously during the same it would be advisable to allow local

period_ The same review indicated also bodies/governments to handle and con- LSEMINARS ]that the Philippines had a comparatively trol a larger portion of the total govern-low growth of scientific staff during the ment budget than they are now receiving.decade and that the country's scientists A related need is policy delinkage. SEMINAR ON "A NUMERICALwere paid lower compared with many There is a need to minimize the tie-in GENERAL EQUILIBRIUM MODELother LDC scientists, of the implicit taxing power of some OF THE PHILIPPINE ECONOMY"

The adverse hnpact of the relative national government entities with theA seminar was held recently to discuss

neglect of agricultural research in the supposed developmental function of theDr. Ramon Clarete's paper on "A Nume-

Philippines can be illustrated by the entities. It would be better if explicit rical General Equflibrnm Model of thefollowing two examples. Rice research and implicit taxation were done within. Philippine Economy." Dr. Clarete is ahas not been a top priority of government the framework of the overall tax program research fellow at the Resource Systemsresearch funding institutions, thus, fund- of the government. Similarly, it would be Institute of the East-West Center ining for rice research has been especially better if budgetary allocation were. Hawaii.meager. As a result, the Philippines lost undertaken within the context of the

The study was jointly sponsored byits topmost rice breeder to IRRI and overall expenditure program of fie

the Philippitle Institute for DevelopmentBurma, and undertook only few research government. Studies and the Philippine Tariff Coin-studies on other rice varieties that can be Another related issue is the govern- mission.better suited to Philippine conditions and ment's mechanism in relending foreign-input availabilities. As another example, sourced funds. Currently, there are agen- _ =the recent success of Malaysia in propa- cies other .than the Central .Bank, publicgating a higher-yielding palm 'tree (using banks, and private financial institutions SEMINAR-WORKSHOP ONtissue culture) cml be expected to reduce wherein tbreign-sourced funds (soft "AGRICULTURAL POLICY"

further the conrpetitivencss of Philippine loans) are coursed (e.g., TRC). It is A two-day seminar-workshop on "Ag-coconut in the world oil market. Given doubtful whether it would be efficacious ricultural Policy hnperatives" was re-that productivity increases reduce prices to turn some government agencies to cently conducted at the Southeast Asianand, further, that palm oil is the closest quasi-financial institutions. Furthermore, Regional Center for Graduate Study andcompetitor of coconut oil, the medium- to the extent that the soft loans carry Research in Agriculture (SEARCA) interm prospects for Philippine coconut interest rates that are lower than prevail- U.P. Los .Bagos. Other than the Institute,would be secularly declining prices and a ing market rates, and the agencies do not the seminar is co-sponsored by the Centerlower Philippine share in the world vege- tic their lending rates to the prevailing for Policy and Development Studiestable oil market (Barker 1985). market rates, then the government agen- (UPLB-CPDS), the Philippine Council for

Mainly because of the 1ocational speci- cies can be expected to be faced withficity of crops, Philippine agricultural pressures to allocate the funds to "fa- Agriculture and Resources Research andDevelopment (PCARRD), the Interna-growth (perhaps more than industrial vored borrowers" even if the proposed tional Rice Research Institute (IRRI)growth) requires a vigorous domestic projects yield marginal benefits based on and the Agricultural Development Coun-research community. Furthermore, much the current market returns to capital. It cil (ADC).of agricultural research is not patentable would be better if foreign loans were A number of papers on agricultureor cannot be internal_ed by firms; thus, coursed through the Central Bank to bc policies specifically focusing on rice andgovernment support of agricultural re- on-lent through the financial system or commodity trade practices were pre-search isnecessary, coursed through some link with the sented to workshop participants who be-

2ublic Administration. Although not (hopefully less cumbersome) general long to various agencies involved in agfi-strictly a "public good," one form of budget processe culture. Attendees to the seminar were

"intervention" which the government either academicians, practitioners, admin-should do more is hnprove d public ,, istrators or planners ha both private andadministration and more responsive ad- government sectors.ministrative structures/mechanisms. To- *This article i.san extension of the paper Majority of the papers presented

presented, dm'ing the May 3-4 1985 Agriculturalward this end, there is a need for decen.- Policy Workshop held i_ U.P.Los Bafio_- are summarized in this particular DRNtralization of government decision- issue.making, for example, in infrastructure. ,, ,,, _,"_,

This could reduce bureaucratic red tape, SEMINAR ON "ECONOMETRICallow local governments to decide on FORECASTING MODEL OFwhat infrastructure is needed in their THE PHILIPPINE ECONOMY"localities even if the key technical expert-ise may come from Manila, and increase The P1DS-sponsored research projectthe flexibility of local governments/ on. the "Econometric Forecasting Model•bodies in dealing with distinctly local of the Philippine Economy" was high-

III IIIII I IIIIIII

PIDS DEVELOPMENT RESEARCH NEWS 11 MAY-JUNE 1985

lighted recently in a seminar held in iPUBLICATIONS 1NEDA-Makati. The study is a joint under-taking of Dr. Manuel Montes, a visitingResearch Fellow at the Philippine insti- WORKINGPAPERStute for Development Studies, a_qdDr. 1. w.P, # 8301 Studies on the Wood Based Furniture, Leather Products and Footwear

Rolando Danao and Dr. Dante Canlas, Manufacturing Industries in the Philippines, Niceto Poblador, Adtiano

both faculty membersof the U.P. School Soti_, Roy Yba5ez, and Bi ..... ido Aragon,2. W.P. # 8302 £conomic Policies and Philippine Agriculture, Cristina C, David.

of ECOROn3Jcs. 3. W.P. # 8303 Changing Comparative Advantage in Philippine Rice Production, LaurianJ. gnnevehr and Arsenio M, 8alisaean.

4. W.P. # 8304 The Impact of Government Policies on Philippine Sugar. Gerald Nelson

• i and Mercedita Agcaoili,5, W,P. #8305 Comparative Advantage and Government Price Intervention Policies

in Forestry, John H. Power and Teresita Tumaneng,6- W.P. # 8306 Government Expenditures of Agricultural Policies in the Philippines

SEMINAR ON "AN EVALUATION 1955-1980, Manuel $.J. de Leon.7. W.P. # 8307 Economic Incentives and Comparative Advantage in the Livestock In.

OF THE GROSS INCOME dusrrv_ L.iborio S. Cabaniga.

TAXATION SCHEME" 8. w.p. # 830,9 An Analysis of the Economic Policies Affecting the Philippine CoconutIndustry, Ramon C]arete and J. Roumasset.

9. W.P. # 8309 Economic Incentives and Comparative Advantage in the Philippine CottonA presentation of the study on the Industry, Arsenio 8allsaean.

evaluation of the gross income taxation lO w_p. #8401 Intersactoral Capital Flows and Balanced Agro-fndustrial Developmentin the Philippines. Manuel S.J. de Leon.

scheme was held in May at the NEDA 11, W.P. # 8402 Forest Land Management in the Context of National Land Use. Adolfo

Makati B ildin_ The presenters d i¢, v. Revilla, Jr.

_u____=. _ur.n_ 12. w.P. #8403 Policy Issues on Commercial Forest Management_ Cerenilla A. Cruz andthe seminar were Mr. Rodrigo Castelo, Marian Segura-delos Angeles.

Mr. Cesar Magnaye and Mr. PJfredo 13. W.P. #8404 The Impact of Government Policies on Forest Resources Utilization,Gerald C. Nelson.

V,_our,s , all from the "_"--:r,tmpp.ne National 14. W.P. #8405 Population Pressure, Migration and Markets: Implications for Upland

Bank. Several insights were also provided Development, Ma, Concepcion Cruz.

by the reactors from the Central Bank 15 w.p.#8406 Tenure, Technology and Productivity of Agro-forestry Schemes. AnaDoris Capistrano and Sam Fujlsaka.

and the Mmist_ of Finance, the National 18 w,P. #8407 Environmental Effecrs of Watershed Modificationg Wilfredo P. David.

Tax Research Center, and the University 17 w.P. # 8408 Management and Cost of Watershed Reforestation: The Pantabanganand Megat Case_Jose A. Gaivez.of the

]13)k_l;=_=-rlt]j_lp_Jlnes at LosBafios. 18. w,p. #8409 Workshop Papers on "The Consequences of Small Rice Farm Mecha,nization in the Philippines':

19. W.P. # 8501 A Review of Welfare in the Coconot lndustry. SylviaN. Guerrero.

20. W.P, # 8502 Financing the Budget Deficit in the Philippineg Eli M. Remolona.

STAFF PAPERS

1. S.P. #8201 An Analysis of Fertilizer Policies in the Philip* 14. S.P. #8404 Development Finance and State Banking: A

pines Cristina C. David and Arsenio M, Balisacan. Survey of Experience. Edita A. Tan.

(Printed also in J.P.D, 1981) 15. S,P. #8405 Derived Protection for Nontraded Primary

2. S.P. #8202 Creditand Price Policies in PhilippineAgrieulture. Procluct. Erlinda M. Medalla.

Cristina C. David. 16, S.P. #8406 Modelling the Effects of Devaluation on Prices,

3. S.P. # 8203 Government Policies and Farm Mechanization in Output and the Trade Balance: The Philippine

the Philippine_ Cristina C. David, Experience Ma. Cecilia Goozales.

4. S.P. #8204 Shadow Prices of Goods and Resources in the 17. S.P. #8407 The Development Bank of the Philippines and

Philippines An Assessment Erlinda M. Medalla the Financial Crisis, A Descriptive Analysis.5, S.P. # 8205 An Analysis of the Behavior of the Commercial Marie B. Lamberte,

Bank.¢ Marie 8. Lamberte. 18. S.P. #8501 The Protection Structure, Resource Flows and

6. S.P. #8301 Exchange Rate Flexibility and Intervention the Capital-Labor Ratio in Philippine Manufac-

Policy in the Philppines, 1973-1981. Filologo turing: A Short Empirical Note, Erlinda M.Pante, Jr,, Medalla,

- 7. S.P. #8302 Qn the Use of the DRC Criterion in Selecting 19. S.P. #8502 A Decomposition Analysis of Philippine Export

Projectg Etlinda M. Medalla. and Import Performance, 1974-1982" Ponciano

8. S.P. #8303 Monetary Aggregate and Economic Activity. S. Intal Jr.

Marie B. Lamberte. 20. S.P. # 8503 Philippine Export and Terms of Trade instability,

9. S, P. # 8304 Effective Protection Rates and Internal Indirect 1965-1982. Ponciano S. I ntal, Jr.

Taxes in the Philippine Setting Rosario G. 21. S.P. # 8504 Methodology for Measuring Protection and Com-

Manasan. parative Advantage. Erlinda M. Medalla and

10. S.P. #8305 Response to Balance of Payments Crises in the John H. Power.

1970s Korea and the Philippine.¢ John H. Power. 22. S.P. # 8505 Food, Fuel and Urbanization in the Philippines.

11. S.P. # 8401 A Study of Philippine Real Property Taxation Alejandro N. Hattie, Manuel F. Montes, RodolfoCayetano W. Paderanga, Jr. F. Florentine.

12. S.P. # 8402 Public Enterprise in the Philippines in 1982. A 23. S.P. #8506 Rural Development Experience; Economic Per_

Definitional and Taxonomical Exercise. Rosario pective.¢ Robert E. Evenson,G. Manasan

13. S. P, # 8403 Estimating the Shadow Exchange Rate, the

Shadow Wage Rate and the Social Rate of

Discount for the Philippines. Erlinda M. Medalla.

I IIII 11111 I IIII IIII I IIIIIII!1

PIDS DEVELOPMENT RESEARCH NEWS 12 MAY-JUNE 1985I il'lll I IIIII • II

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DEVELOPMENT RESEARCH NEWS is a bi-monthly publication of the PHILIPPINE INSTITUTE FOR DEVELOP-MENT STUDIES (PIDS). It highlights findings and recommendations culled from PIDS-sponsored research or relatedstudies done by other institutions. PIDS seminars: publications, and ongoing and forthcoming projects which are ofinterest to policy-makers, planners, administrators, and researchers are also announced.

PIDS is a nonstock and nonprofit government research institution engaged in long-term policy-oriented research. Thispublication is part of the Institute's program to disseminate information in order to promote the utilization of researchfindings.

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