My article in The Final Stand journal on Multiply

Mar 02, 2009 20:35



**Originally just a commentary posted on this Multiply journal. Check out http://thefinalstand.multiply.com

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The Irony of an Agricultural Economy
Against the Landless

By: Jim Sta. Isabel, IV AB MEC

Contrary to what people might think, The Final Stand isn't just a movement to stop the injustice against farmers who are seeking to own land that should have been theirs a long time ago. It is a campaign advocating a logical solution with underlying principles from development economics, a field that is essential in understanding why we are still a Third World country and how we can move to a stage with far better living conditions.

To start, it is best to qualify that the Philippines still has a predominantly agricultural economy. Yes, up until now, even with all the Serendra-like residential and commercial developments and with tons of  commodity imports from the rest of Asia, we are still considered agricultural. This is because the industrial sector of our economy is not vast, developed and/or diverse enough, producing very little volume of commercial merchandise in light of the world economy. (Whoever started characterizing the countries' economies only into either agricultural or industrial should probably rethink this.)

AB ECO and MECO seniors would probably know that in order for an economy to take-off, it needs a balance of manufacturing, agriculture and service industries, with the manufacturing side having a little more weight in terms of productivity (percentage of GDP). Right now, we Filipinos are very fond of being in the service industry--carinderias and sari-sari stores are mushrooming here and there, our mothers flee to other countries to become domestic helpers, colorum buses and jeepneys rule our roads, hundreds of thousands of young Filipinos take up Nursing or Care-gving courses, fresh graduates swarm in call centers, etc. This is not surprising because we are an inherently caring race. Hence, this has allowed the service industry to overtake the once verdant field of agriculture in terms of contributing to the GDP. Meanwhile, we are still nowhere near the capacity of other richer countries in terms of manufacturing.

In recap, our aces are, in due order: (1) Service industry, (2) Agriculture, (3) Manufacturing.  Following the premise above, since our Manufacturing industry is not expected to boom anytime soon, we are in deep heap. And, considering the four factors of production, since we don't have the necessary appropriate amount of capital (K) and modern technology (A) for manufacturing and industrial production, all we have left for use are land and labor (L). Hmmm...Put two and two together, and the math is not hard to solve at all.

There we have it. We are an AGRICULTURAL ECONOMY; So why the hell are we fighting to have the land given to our farmers? Right now, agriculture is what our country is good at; it's what we've been good at since we called this archipelago home. We have the resources, the agricultural research and development, the labor and, most of all, the land to produce agricultural products for our own consumption and possibly for export. So what the hell is happening?

I remember what Mark Ruiz said in his talk last Ignation with the Business Cluster. He said we have to innovate and create products that will put the nation in the wider global business arena. Having our very own Nokia or BMW is still definitely unimaginable at this stage of our economy.  We cannot yet create and mass produce something that we can call uniquely Filipino that will be diffucult to replicate by other countries, or that will be good enough to compete with existing global players. As of now, is it too much to ask to just stick to what we know?

Frankly, in accordance to what Mr. Ruiz said about a Filipino product making a mark in the world market, I think I can speak for the entire nation in saying that we all will be utterly delighted if the Phiippines will be regarded as the number 1 rice or mango or sugar exporter in the world. It may not be as iconic as iPod or Toyota, but at least we have made a name for ourselves, in addition to the fact that a lot of farmers and workers will be employed and fairly compensated. As an agricultural country, the Philippines belonged to a group of nations that has a niche in producing organic commodities and distributing them all over the world. Now, with what is happening (or not happening) with the CARPER, that niche may even be slowly drifting.

The government, especially the congressmen, should really learn the meaning and the value of "core competency", don't you think? What a sad irony...

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ABOUT THE AUTHOR:
Neil Jameson O. Sta. Isabel, IV AB MECO.

Even though he is on-leave from school, Jim tries his best to continue to be involved in his extra-curricular activities. He has been an active leader in the Council of Organizations of the Ateneo (COA) since 2007, and a proud member of the Management Economics Organization (MEcO). He used to hate eating vegetables, but now he eats them in an attempt to be fit and in support of the country's farming sector.

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