Column Title: Let's Talk About It
By Minerva Zamora-Arceo
Punto, August 28, 2008
Although the prices of petroleum products slightly dropped this month, economists look at the trend in an upward slope. The prices of petroleum products are indicators of larger issues on energy. The Philippine government is currently conducting consultation from the regions on its energy situation as part of the 20-year comprehensive plan being prepared by the Department of Energy and NEDA.
Last August 21, the consultation for Central Luzon was held at the Holiday Inn Clark inside the Clark Freeport Zone. At least 200 participants from various sectors all over the region joined the consultation process. The Advocacy for the Development of Central Luzon (ADCL) was invited being an active partner of NEDA Reg. 3 in several advocacies for economic and infrastructure development.
The demand on energy worldwide continuously grows while the resources are gradually depleting. This is the most problematic fact that is being addressed by several nations. Energy is required for economic growth. It is a very crucial instrument for poverty reduction, social equity and economic development.
As it stands today, Director Zenaida Y. Monsada of the Oil Industry Management Bureau said that oil pricing in the country is affected by the trends in supply and demand in the world market. Out of the total world oil demand of 86.8 million barrels per day, United States uses 20.43 million barrels while China requires 8 million barrels. Our country uses a measly .28 million barrels. The current available supply is pegged at 87.28 million barrels per day from OPEC and non-OPEC countries supplying oil.
The same as many countries dependent on imported crude and other oil products, the Philippines is at the mercy of the global trends. The higher the demand in the global market, the faster the prices increase because of limited supply.
The depleting oil reserves are an important factor for the limited supply. However, another factor that contributes to the limited supply of oil is the decreased capacity of some countries to produce oil products due to shut down of oil refineries. In the Philippines, the 50-year old Caltex oil refinery stopped operations in the 90s, thus affecting the prices of oil products in the country. Before, we have the capacity to refine our own but today we completely import petroleum products.
Oil refineries mostly shut down due to environmental policies like the Clean Air Act and others. Other factors include geopolitical tensions in oil producing countries like Iraq, Nigeria, Venezuela, Iran and others. There is also the issue of climate change and the weakening dollar vs. the Euro.
Given these reasons for the limited oil supply, the national government is now exploring alternative fuels like biodiesel and bioethanol. Since May 2007, all oil distributors were mandated to implement the 1 percent biodiesel blend under the Biofuels Act of 2006. By 2009, the same will be mandated to mix 5 percent ethanol.
The renewable energy resources are also being explored to address the growing demand on energy in the country. This includes hydropower, geothermal, wind, biomass, solar and ocean energy. Sen. Ed Angara is one of the staunch advocates of renewable energy. He is now bullish on the establishment of wind power mills in Aurora to take advantage of the province’s location at the foot of the Pacific Ocean.
Based on the study of DOE, our country has huge potentials in exploring the development of geothermal, gas and coal resources. There are 13 coal zones in the country and four of these are in Luzon. According to the DOE, our country’s potential coal reserve is pegged at 746 million metric tons.
Aside from the development of renewable energy resources and geothermal, gas and coal resources, the national government is also campaigning for the enhancement of energy efficiency and conservation to address the growing problem on energy.
Part of this campaign is the implementation of the National Efficiency and Conservation Program (NEECP), Palit-Ilaw program and the expansion of coverage of the energy labeling in the Philippines. The government is also pushing for the promulgation of the Minimum Energy Performance Standards to phase out the least efficient lamps in the market by 2009 and the Energy Conservation Bill.
There is also a move to look at Nuclear Power as a long-term energy option. But the DOE is preparing first to strengthen local expertise in nuclear energy before the Bataan power plant be even considered to operate.
And while several possible solutions are being explored to ensure stable and quality supply of energy in the country, the immediate concern that must be addressed by the Arroyo government is to make oil prices reasonable and affordable at the moment. Bureaucratic interventions and sound policies on oil pricing can be imposed if only to stop the oil cartel from dictating high prices. The Oil Deregulation Law must also be repealed and the government must revive its power to regulate oil prices. (30)
Sunday, August 31
Thursday, August 14
Federalism: Part II
There is no doubt that Central Luzon will give the Central Visayas and Northern Mindanao a strong competition should Sen. Aquilino Pimentel’s proposed resolution for a federal form of government be realized.
Central Luzon’s biggest advantage among all other proposed federal states is its strategic location and its potential to become a mega-logistics hub in Asia. For sometime now since former Clark Development Corp. (CDC) president Rufo Colayco started the concept of linking Subic and Clark and eventually Dingalan Seaport in Aurora, many private sector groups have supported the national government’s vision for Central Luzon.
Now with the idea of making this region a totally independent and autonomous state, many private sector leaders become more excited, even counting numerous possibilities for Central Luzon’s imminent transformation into an economic tiger in Southeast Asia. We could be the net Singapore is we play our cards right.
As soon as the Tarlac-La Union Expressway be constructed, the private sector groups are eying for the construction of the Tarlac-Nueva Ecija-Aurora Expressway. This expressway would link Dingalan, Casiguran and Baler seaport to Luista, Clark and Subic and the mega-logistics hub will be completed. Advocates for development like the Pampanga Chambers of Commerce and Industry, Metro Angeles Chamber of Commerce, Clark Investors and Locators Association and the Advocacy for the Development of Central Luzon (ADCL) believe that Central Luzon is more than ready to face the challenge of Pimentel.
Central Luzon will reap all the benefits if it will be declared as an autonomous state. ADCL chairman Rene Romero has long been saying that with the completion of the expressways linking Central Luzon’s east (Pacific via Aurora) and west (South China Sea via Subic and Masinloc) coasts, we would be able to compete with Hongkong and Singapore as the new mega logistics hub for industries moving cargo from US and Australia to Asia.
If run by an autonomous state, the two largest ecozones in Clark and Subic will also reap huge income and investments for Central Luzon. At present, both ecozones have the largest investors in the country including Texas Instrument, Fedex, AOL, Hanjin and others. On top of their production, we also have the Luisita Industrial Park, Hermosa Economic Zone, Masinloc Industrial Zone, Mabalacat Industrial Zone, all of these will contribute to the federal state economic performance.
Meanwhile, the state-of-the-art government center in Bulacan will soon be completed since it is listed in the priority projects of the Regional Development Council (RDC) for the years 2008-2010. Bulacan could be the seat of the Federal State of Central Luzon where the offices of the state administrative agencies would be located. Clark or Pampanga could be the financial center while Nueva Ecija could retain its role as the research, science and development seat of the federal state. We have existing facilities and institutions like the Central Luzon State University (CLSU) and the Science City of Munoz.
Central Luzon is also a host to the best minds, technocrats and tycoons in the country. We have the likes of Danding Cojuangco, Sen. Edgardo Angara, Jose “Ping” de Jesus, Josie Dela Cruz, Tong Payumo, Victor Jose “Chichos” Luciano, Presidential Assistant Rellie Fajardo, Mayor Oscar Rodriguez and more.
In the near future, Central Luzon would become a Center of Excellence for human resource development. Sen. Angara recently took the suggestion of ADCL to establish a 1,000 hectare center for academic institutions. The idea is to build a center that will house the best schools that would provide top courses for Central Luzon’s demand in various industries like aviation, information technology, engineering, arts, architecture, agriculture and others. We could invite the University of the Philippines, Ateneo, Philippine Aeronautical College, and other universities abroad to lease part of the 1,000-hectare center for the establishment of their own facilities. The region needs to develop more skilled and intellectual workers to sustain the demand of growing industries and investments in the area.
Central Luzon has also a huge potential in tourism. It has natural landscapes to offer in Aurora and Zambales. It also has the best urban havens in Olongapo, Angeles City and Subic. Tarlac, on the other hand, offers the religious pilgrimage sites while Bulacan and Bataan are famous for their historical landmarks.
And the most important advantage that Central Luzon has is its stability for food security. Being the rice granary of the country, Region 3 controls the volume of rice production and has enough lands for agriculture. Aurora, Nueva Ecija and Tarlac could maintain the balance to the growing industries in Pampanga, Zambales, Bataan and Bulacan. Our region has the potential to become an agri-product exporting federal state. We have agricultural geniuses in our midst. A company inside Clark is already exporting freezed mangoes to US and Europe while Rene Tayag of Angeles is already exporting Tilapia fillet abroad. Our best agricultural products including processed meats and marine products reach the four corners of the world.
So whose afraid of federalism? Definitely not us. Central Luzon is a region everyone around the country should carefully consider. If Pimeltel’s idea be realized, we would surely give others a tough competition. But more, our people will truly reap the fruits of our region’s blessings. It would mean more jobs, comfortable living and better future for our children. (30)
Central Luzon’s biggest advantage among all other proposed federal states is its strategic location and its potential to become a mega-logistics hub in Asia. For sometime now since former Clark Development Corp. (CDC) president Rufo Colayco started the concept of linking Subic and Clark and eventually Dingalan Seaport in Aurora, many private sector groups have supported the national government’s vision for Central Luzon.
Now with the idea of making this region a totally independent and autonomous state, many private sector leaders become more excited, even counting numerous possibilities for Central Luzon’s imminent transformation into an economic tiger in Southeast Asia. We could be the net Singapore is we play our cards right.
As soon as the Tarlac-La Union Expressway be constructed, the private sector groups are eying for the construction of the Tarlac-Nueva Ecija-Aurora Expressway. This expressway would link Dingalan, Casiguran and Baler seaport to Luista, Clark and Subic and the mega-logistics hub will be completed. Advocates for development like the Pampanga Chambers of Commerce and Industry, Metro Angeles Chamber of Commerce, Clark Investors and Locators Association and the Advocacy for the Development of Central Luzon (ADCL) believe that Central Luzon is more than ready to face the challenge of Pimentel.
Central Luzon will reap all the benefits if it will be declared as an autonomous state. ADCL chairman Rene Romero has long been saying that with the completion of the expressways linking Central Luzon’s east (Pacific via Aurora) and west (South China Sea via Subic and Masinloc) coasts, we would be able to compete with Hongkong and Singapore as the new mega logistics hub for industries moving cargo from US and Australia to Asia.
If run by an autonomous state, the two largest ecozones in Clark and Subic will also reap huge income and investments for Central Luzon. At present, both ecozones have the largest investors in the country including Texas Instrument, Fedex, AOL, Hanjin and others. On top of their production, we also have the Luisita Industrial Park, Hermosa Economic Zone, Masinloc Industrial Zone, Mabalacat Industrial Zone, all of these will contribute to the federal state economic performance.
Meanwhile, the state-of-the-art government center in Bulacan will soon be completed since it is listed in the priority projects of the Regional Development Council (RDC) for the years 2008-2010. Bulacan could be the seat of the Federal State of Central Luzon where the offices of the state administrative agencies would be located. Clark or Pampanga could be the financial center while Nueva Ecija could retain its role as the research, science and development seat of the federal state. We have existing facilities and institutions like the Central Luzon State University (CLSU) and the Science City of Munoz.
Central Luzon is also a host to the best minds, technocrats and tycoons in the country. We have the likes of Danding Cojuangco, Sen. Edgardo Angara, Jose “Ping” de Jesus, Josie Dela Cruz, Tong Payumo, Victor Jose “Chichos” Luciano, Presidential Assistant Rellie Fajardo, Mayor Oscar Rodriguez and more.
In the near future, Central Luzon would become a Center of Excellence for human resource development. Sen. Angara recently took the suggestion of ADCL to establish a 1,000 hectare center for academic institutions. The idea is to build a center that will house the best schools that would provide top courses for Central Luzon’s demand in various industries like aviation, information technology, engineering, arts, architecture, agriculture and others. We could invite the University of the Philippines, Ateneo, Philippine Aeronautical College, and other universities abroad to lease part of the 1,000-hectare center for the establishment of their own facilities. The region needs to develop more skilled and intellectual workers to sustain the demand of growing industries and investments in the area.
Central Luzon has also a huge potential in tourism. It has natural landscapes to offer in Aurora and Zambales. It also has the best urban havens in Olongapo, Angeles City and Subic. Tarlac, on the other hand, offers the religious pilgrimage sites while Bulacan and Bataan are famous for their historical landmarks.
And the most important advantage that Central Luzon has is its stability for food security. Being the rice granary of the country, Region 3 controls the volume of rice production and has enough lands for agriculture. Aurora, Nueva Ecija and Tarlac could maintain the balance to the growing industries in Pampanga, Zambales, Bataan and Bulacan. Our region has the potential to become an agri-product exporting federal state. We have agricultural geniuses in our midst. A company inside Clark is already exporting freezed mangoes to US and Europe while Rene Tayag of Angeles is already exporting Tilapia fillet abroad. Our best agricultural products including processed meats and marine products reach the four corners of the world.
So whose afraid of federalism? Definitely not us. Central Luzon is a region everyone around the country should carefully consider. If Pimeltel’s idea be realized, we would surely give others a tough competition. But more, our people will truly reap the fruits of our region’s blessings. It would mean more jobs, comfortable living and better future for our children. (30)
Wednesday, August 13
Federalism (Part 1)
By Mini Zamora-Arceo
Column Title: Let's Talk ABout it
Punto, May 2, 2008
Former House Speaker Jose De Venecia has long been making cries on the proposed Charter Change with the idea of changing our Congress into a unicameral body. His battlecry was however muffled by oppositions from left to right, including one from the Senate.
But the former Speaker might be relieved by now after Senate Majority Leader Aquilino Pimentel Jr. opened anew talks on Cha-cha. With Pimentel’s convincing prowess, 16 Senators are now supporting proposed Resolution No. 10 seeking the amendment of the Constitution to adopt a federal form of government.
Pimentel said 16 is more than the three-fourths vote (13) needed to approve a resolution for the holding of a Constituent Assembly (Con Ass) to amend the 1986 Constitution. The senator is pushing for a federal form of government with 11 autonomous federal states as centers of finance and development, decentralizing Manila’s economic power. The President and Vice President positions would be retained and elected at large among all 11 federal states. Pimentel also proposes that the federal states would elect six senators each while overseas Filipino workers would be allowed to elect nine.
The proposed 11 federal states are the State of Northern Luzon, State of Central Luzon, State of Southern Tagalog, State of Bicol, State of Minporom (Mindoro, Palawan and Romblon), State of Eastern Visayas, State of Central Visayas, State of Western Visayas, State of Northern Mindanao, State of Southern Mindanao and the State of BangsaMoro.
Metro Manila will remain intact and would be named as the Federal Administrative Region.
Should this resolution be passed in time, we will see drastic changes in our political and socio-economic systems. Others may not agree to further divide this small country into smaller governments but we must admit that we have diverse and distinctive sub-cultures that could never be reconciled. It is not a secret that when Filipinos settle abroad, they bond themselves based on their ethnicity or native language. This is why you have the association of Visayans, Bicolanos, Ilocanos, Kapampangans, Cebuanos, etc. in the United States. And worse, among these groups, you would even find smaller clusters. Funny but true.
Now, going back to the proposed federal form of government, I see several good points that would eventually propel this country into economic stability. First, the federal states will have no choice but to work on their own and develop strategies how to feed their own people, generate jobs and livelihood for them, and how to become more competitive in terms of finance and investments. The law of economics state that competition is good. It brings out the best among people. It makes products more affordable. It provides a wider choice for clients and in this case, our country will open more choices to foreign investors.
Also, stronger states will provide a model to their neighbors while the poorer states, knowing that they need to become self-reliant, will engineer ways how to improve their performance. At the end, the best minds will bring home the bacon.
Sen. Ping Lacson has yet to support Pimentel’s resolution because his questions have yet to be answered in a formal debate during the plenary session. Lacson is asking who will shoulder the P3.7 trillion debt of the national government and more, he wants to know what would be the plan for the poorer states.
Lacson’s concerns are valid but we could definitely find ways how to address these questions in the future. For now it is important for every Filipino to look where Pimentel is envisioning this country. Although we cannot reject the idea that the senators are pushing for federalism to save their own skins knowing that with a presidential-unicameral form of government as De Venecia earlier proposed, the Senate will be dissolved and they will have equal powers with the House members under a unicameral body.
But with the federal-unicameral set-up, the senators will have the chance to run as heads of the 11 federal states or be elected as State senators if they prefer.
However, both the public and private sector leaders of our country should look at this resolution as an opportunity to truly bring progress and development to our people. It is not bad to be “regionalistic” when the times call for it. The Visayans have already done it. Take Cebu’s example. They promote Cebu as an island in the Pacific, not in the Philippines.
So why not Central Luzon take Cebu’s lead? We have all the opportunities to overtake Metro Manila in the next 10 years. We have the mega-infrastructures such as the Subic-Clark-Tarlac Expressway (SCTEx), the most sophisticated and longest expressway in the country. We have the Diosdado Macapagal International Airport (DMIA), the next premier airport of the Philippines, while there are other airports in Subic, Baler, and Palayan. Central Luzon also has seaports in Dingalan, Casiguran, Bataan, Masinloc and Subic. And we are blessed for we have two of the largest ecozones in the country, Clark Special Economic Zone and Subic Bay Freeport Zone with other industrial areas like Luisita, Hermosa, Masinloc, and Mabalacat. It is just up to us how we could maximize the potentials of our region to become the next economic tiger in Southeast Asia. (30)
Column Title: Let's Talk ABout it
Punto, May 2, 2008
Former House Speaker Jose De Venecia has long been making cries on the proposed Charter Change with the idea of changing our Congress into a unicameral body. His battlecry was however muffled by oppositions from left to right, including one from the Senate.
But the former Speaker might be relieved by now after Senate Majority Leader Aquilino Pimentel Jr. opened anew talks on Cha-cha. With Pimentel’s convincing prowess, 16 Senators are now supporting proposed Resolution No. 10 seeking the amendment of the Constitution to adopt a federal form of government.
Pimentel said 16 is more than the three-fourths vote (13) needed to approve a resolution for the holding of a Constituent Assembly (Con Ass) to amend the 1986 Constitution. The senator is pushing for a federal form of government with 11 autonomous federal states as centers of finance and development, decentralizing Manila’s economic power. The President and Vice President positions would be retained and elected at large among all 11 federal states. Pimentel also proposes that the federal states would elect six senators each while overseas Filipino workers would be allowed to elect nine.
The proposed 11 federal states are the State of Northern Luzon, State of Central Luzon, State of Southern Tagalog, State of Bicol, State of Minporom (Mindoro, Palawan and Romblon), State of Eastern Visayas, State of Central Visayas, State of Western Visayas, State of Northern Mindanao, State of Southern Mindanao and the State of BangsaMoro.
Metro Manila will remain intact and would be named as the Federal Administrative Region.
Should this resolution be passed in time, we will see drastic changes in our political and socio-economic systems. Others may not agree to further divide this small country into smaller governments but we must admit that we have diverse and distinctive sub-cultures that could never be reconciled. It is not a secret that when Filipinos settle abroad, they bond themselves based on their ethnicity or native language. This is why you have the association of Visayans, Bicolanos, Ilocanos, Kapampangans, Cebuanos, etc. in the United States. And worse, among these groups, you would even find smaller clusters. Funny but true.
Now, going back to the proposed federal form of government, I see several good points that would eventually propel this country into economic stability. First, the federal states will have no choice but to work on their own and develop strategies how to feed their own people, generate jobs and livelihood for them, and how to become more competitive in terms of finance and investments. The law of economics state that competition is good. It brings out the best among people. It makes products more affordable. It provides a wider choice for clients and in this case, our country will open more choices to foreign investors.
Also, stronger states will provide a model to their neighbors while the poorer states, knowing that they need to become self-reliant, will engineer ways how to improve their performance. At the end, the best minds will bring home the bacon.
Sen. Ping Lacson has yet to support Pimentel’s resolution because his questions have yet to be answered in a formal debate during the plenary session. Lacson is asking who will shoulder the P3.7 trillion debt of the national government and more, he wants to know what would be the plan for the poorer states.
Lacson’s concerns are valid but we could definitely find ways how to address these questions in the future. For now it is important for every Filipino to look where Pimentel is envisioning this country. Although we cannot reject the idea that the senators are pushing for federalism to save their own skins knowing that with a presidential-unicameral form of government as De Venecia earlier proposed, the Senate will be dissolved and they will have equal powers with the House members under a unicameral body.
But with the federal-unicameral set-up, the senators will have the chance to run as heads of the 11 federal states or be elected as State senators if they prefer.
However, both the public and private sector leaders of our country should look at this resolution as an opportunity to truly bring progress and development to our people. It is not bad to be “regionalistic” when the times call for it. The Visayans have already done it. Take Cebu’s example. They promote Cebu as an island in the Pacific, not in the Philippines.
So why not Central Luzon take Cebu’s lead? We have all the opportunities to overtake Metro Manila in the next 10 years. We have the mega-infrastructures such as the Subic-Clark-Tarlac Expressway (SCTEx), the most sophisticated and longest expressway in the country. We have the Diosdado Macapagal International Airport (DMIA), the next premier airport of the Philippines, while there are other airports in Subic, Baler, and Palayan. Central Luzon also has seaports in Dingalan, Casiguran, Bataan, Masinloc and Subic. And we are blessed for we have two of the largest ecozones in the country, Clark Special Economic Zone and Subic Bay Freeport Zone with other industrial areas like Luisita, Hermosa, Masinloc, and Mabalacat. It is just up to us how we could maximize the potentials of our region to become the next economic tiger in Southeast Asia. (30)
Friday, August 8
Save the Pampanga mangroves!
This photo was taken at the Pampanga Bay in Macabebe, Pampanga. Only a few hectares of mangroves were left due to intentional killing of fishpond owners. Please join our campaign for the protection and reforestation of mangroves. For inquiries, please call ADCL office at (045)-8884363 and look for Ms. Rona Menos or Mini Arceo.
Thursday, August 7
Global Pinoy
Read: There are some one million Filipinos working in the Kingdom of Saudi Arabia alone. This is according to a local Saudi writer named Abdullah Al-Maghlooth. I received an e-mail of an article he wrote titled, “Imagine a World Without Filipinos” and I was very enlightened. According to him, in 2006 alone, the Kingdom recruited some 223,000 workers from the Philippines while we comprise about 20 percent of the total sailors around the world. He said there are about 1.2 million sailors working in various places.
Al-Maghlooth said that it is hard to imagine a world without the efficient, reliable and hardworking Filipino workers. He attributed the Filipinos’ “uniqueness” as global workers to our ability to speak the English language fluently and the technical trainings incorporated in our education system. Honestly, this is the first time I read praises for our educational system, much more coming from a foreigner.
The writer’s article is focused on the role of Filipinos as workers enabling the success of the day-to-day business of other nations. So he is putting much weight on the thought that if Filipinos suddenly and simultaneously stopped working around the world, there will be great disaster.
And I was really touched to read the lines of the writer encouraging all people around the globe to thank the Filipinos because they take part in building and influencing the world economy. And saying that “they” are dependent on us, he asked his readers to “pay respect” to Filipinos and “learn” from our experiences.
I want to believe that the article supposedly published in Saudi Arabia is real. It makes me proud of what we contribute to the world. Seeing our nation’s strength and meaning in the eyes of a foreigner is a consolation to our misery as a democratic state.
But taking the writer’s point of view, it is indeed liberating to think that all over the world, industries, schools, hospitals, clinics, studios, entertainment and amusement parks, casinos, hotels, restaurants, cruise ships, and even in government offices like The White House, there are Filipino workers.
The global Pinoy virtually controlling the world economy. He may not be the powerful voice that dictates the rules, but the global Pinoy is the muscle that moves the world economy. He is part of the means of production. He has the power to create a paradigm that would eventually change global economy.
But this possibility of the global Pinoy creating a paradigm shift in the global community also makes me think of all the reasons why we fail to boost our own economy. Filipinos excel abroad. Most of our skilled, trained, educated and middle class workers take chances in working for other countries rather than stay here and starve.
Our greatness is actually our failure. The continuous brain drain and human resource export is gradually crippling our own economy. Come to think of it. More and more of our college graduates and degree holders work overseas. More and more scientists sell their ideas to other countries. More and more doctors are treating the sick in other territories leaving our country short of specialists, making our people sicker than before.
The national government should seriously look at this problem instead of promoting brain drain and human resource export. Instead of getting contracts requiring export of our skilled workers, the Arroyo administration should concentrate in truly addressing the needs of our local economy. The national government should focus on pushing for entrepreneurship, agribusiness opportunities and invite more investors to locate in the country.
Better jobs means better pay. This would encourage our educated and skilled citizens to stay in the country and be productive in our own grounds. Better strategies and political drive for more investments will entice our people to stay here and influence our own economy. It is good to pay tribute to the global Pinoy but I dream of the day when the world looks up to us because of our country’s strength as a productive and progressive nation with strong local economy influencing global trends. (30)
Wednesday, August 6
Palengkenomics
Punto! Central Luzon
Mini Zamora-Arceo
Column Title: Let’s Talk About It
Article Title: Palengkenomics
Date Published: Thursday, June 19, 2008
Mini Zamora-Arceo
Column Title: Let’s Talk About It
Article Title: Palengkenomics
Date Published: Thursday, June 19, 2008
As soon as the giant malls start padding their charges on rentals and other services due to the increasing price of oil and energy generation, consumers will eventually feel the effect in every small product they buy. And for those who temporarily disregarded the wet markets in exchange of the fully air-conditioned super- or hyper-marts, they will soon return to the old public markets to look for cheaper meat, fruits, vegetables, rice and other food commodities.
With the rate of increase on oil prices nowadays, economists are projecting that all commodities will shoot up to 50 or even 100 percent. Recent reports said oil price in international market will soon reach $200 per barrel. When the price of oil was only $100 per barrel, the price of rice was only P32 per kilo while the price of pork was only P120 per kilo. At present, the price of rice has temporarily stabilized at P38 to P45 per kilo while the price of pork is already pegged at P170 to P180 per kilo. And I am talking of the wet market prices. At the giant malls, you might be paying a few more pesos for each commodity. Imagine what will happen if oil price escalates to $200 per barrel? Would you care to buy a kilo of pork worth P250?
This is alarming, yes. And even more inevitable. This is why several private sector groups are now encouraging the local governments to refocus on strengthening the public markets to help the public cope with the unabated increase on prices of all commodities.
One of the board of trustees of the Advocacy for the Development of Central Luzon (ADCL), Philip Camara of Iba, Zambales, came up with a brilliant idea to campaign for the Palengkenomics program. Camara is also the president of the Zambales Chamber of Commerce and Industry and a private sector representative for tourism at the Regional Development Council (RDC).
The Palengkenomics program aims to strengthen the public markets and develop them as centers of economic activities that would eventually dissolve cartels and empower the local traders by increasing their productivity and profitability.
According to Camara, the poor and neglected condition of our public markets creates disorganized commodity markets that enable cartels to gain control of the local economy, to the detriment of both the producers and the consumers. This, he said, can be reversed by “conditionally” privatizing public markets in favor of Vendors Associations.
The idea of going back to the basics is not bad at all. If there is one place in a local community that is actually moving the cash flow is the public market. It employs hundreds of people and feeding thousands from the slaughterhouses to vendors and helpers.
By encouraging LGUs to grant management rights to vendors association, there will be a common interest among all the stakeholders – that is to improve the markets and provide better services for the public. And as soon as the vendors are given additional income while they are being groomed to embrace the Bayanihan spirit anew, they will have a better chance to fight food cartels, thus, prompting the price of food commodities to become more affordable.
Camara further explained that public markets, being the economic nuclei of municipal economies, “are a key institution to put in order and generate motion towards far-reaching economic stimuli for local economic and even social development.”
He said that many public markets are in a state of disrepair and bad governance wherein vendor's associations are hardly empowered. True. Market people are even being used by some politicians for their electoral campaigns but without any concrete program for their security and welfare.
Camara further explained that production is not enough but market access is of absolute importance if we are to assure the profitability of the productive poor.
Our local government officials should think hard about this. It is true that production of food alone in our neighborhood will not guarantee that the end products will reach our tables without much inflation. The government should ensure that every product produced by the farmers or the fisherfolk will be available to all at an affordable price. It is not the wages or the salaries that matter. No matter how many times we ask for a wage hike, as long as the prices of commodities continue to increase, we will still end up lacking the quality life we want.
What is more important is for the government to bring down the prices of basic commodities, make everything affordable to the public including electricity and other utilities so the people could live comfortably. And one of the solutions is to ensure that the food we produce reach our tables fresh, safe and affordable by improving the public markets and empowering the vendors and small entrepreneurs.
With the rate of increase on oil prices nowadays, economists are projecting that all commodities will shoot up to 50 or even 100 percent. Recent reports said oil price in international market will soon reach $200 per barrel. When the price of oil was only $100 per barrel, the price of rice was only P32 per kilo while the price of pork was only P120 per kilo. At present, the price of rice has temporarily stabilized at P38 to P45 per kilo while the price of pork is already pegged at P170 to P180 per kilo. And I am talking of the wet market prices. At the giant malls, you might be paying a few more pesos for each commodity. Imagine what will happen if oil price escalates to $200 per barrel? Would you care to buy a kilo of pork worth P250?
This is alarming, yes. And even more inevitable. This is why several private sector groups are now encouraging the local governments to refocus on strengthening the public markets to help the public cope with the unabated increase on prices of all commodities.
One of the board of trustees of the Advocacy for the Development of Central Luzon (ADCL), Philip Camara of Iba, Zambales, came up with a brilliant idea to campaign for the Palengkenomics program. Camara is also the president of the Zambales Chamber of Commerce and Industry and a private sector representative for tourism at the Regional Development Council (RDC).
The Palengkenomics program aims to strengthen the public markets and develop them as centers of economic activities that would eventually dissolve cartels and empower the local traders by increasing their productivity and profitability.
According to Camara, the poor and neglected condition of our public markets creates disorganized commodity markets that enable cartels to gain control of the local economy, to the detriment of both the producers and the consumers. This, he said, can be reversed by “conditionally” privatizing public markets in favor of Vendors Associations.
The idea of going back to the basics is not bad at all. If there is one place in a local community that is actually moving the cash flow is the public market. It employs hundreds of people and feeding thousands from the slaughterhouses to vendors and helpers.
By encouraging LGUs to grant management rights to vendors association, there will be a common interest among all the stakeholders – that is to improve the markets and provide better services for the public. And as soon as the vendors are given additional income while they are being groomed to embrace the Bayanihan spirit anew, they will have a better chance to fight food cartels, thus, prompting the price of food commodities to become more affordable.
Camara further explained that public markets, being the economic nuclei of municipal economies, “are a key institution to put in order and generate motion towards far-reaching economic stimuli for local economic and even social development.”
He said that many public markets are in a state of disrepair and bad governance wherein vendor's associations are hardly empowered. True. Market people are even being used by some politicians for their electoral campaigns but without any concrete program for their security and welfare.
Camara further explained that production is not enough but market access is of absolute importance if we are to assure the profitability of the productive poor.
Our local government officials should think hard about this. It is true that production of food alone in our neighborhood will not guarantee that the end products will reach our tables without much inflation. The government should ensure that every product produced by the farmers or the fisherfolk will be available to all at an affordable price. It is not the wages or the salaries that matter. No matter how many times we ask for a wage hike, as long as the prices of commodities continue to increase, we will still end up lacking the quality life we want.
What is more important is for the government to bring down the prices of basic commodities, make everything affordable to the public including electricity and other utilities so the people could live comfortably. And one of the solutions is to ensure that the food we produce reach our tables fresh, safe and affordable by improving the public markets and empowering the vendors and small entrepreneurs.
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