07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe

8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe

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Agrarian Reform in aGlobalizing World


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Three Propositions1. Liberalization amidst declining public and

private investments in agriculture underminesthe economic viability of small agriculturalstakeholders and the of the sector itself;

2. Implementing a comprehensive agrarianreform program is essential if agriculture is tosurvive in this globalizing world

3. There are certain institutional, policy as wellas resource requirements that must be met inorder to deliver an effective agrarian reformprogram


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Outline of the Presentation

1. Overview of Philippine agriculture2. Arguments for agrarian reform3. Requirements for an effective agrarian

reform progam


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Share of agriculture to totaleconomic output is declining

Share of agriculture to GDP, 1980-2008

-

5.00

10.00

15.00

20.00

25.00

30.00

1980 1984 1988 1992 1996 2000 2004 2008

Share of agriculture to GDP


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Average labor productivity inagricuture is low

68,674

348,633

191,075

171,900

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

Php per year

Agriculture

Industry

Services

Total

Average Labor Productivity per Sector, 2005


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Only 1.5 of the country 3.1 million irrigablelands have irrigation facilities

1.6

1.7

1.6

1.7

1.5

1.6

1.5

1.6

1.3

1.9

1.3

1.8

1.3

1.8

1.3

1.8

1.3

1.8

1.3

1.8

1.4

1.8

1.4

1.8

1.4

1.7

1.4

1.7

1.4

1.7

1.4

1.7

1.4

1.7

1.4

1.7

1.5

1.6

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

( i n m

i l l i o n

h e c t a r e s )

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Number of irrigated and irrigable lands in the Philippines,1990-2008

Irrigate lands for Irrigation


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Lack of access to affordable credit

The percentage share of agricultural productionloans to total loans has drastically dropped

from 6.99 per cent in 1990 to only 0.94 percent in 2006.

Source: Bureau of Agricultural Statistics


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Limited budget for agriculture

5.04

3.23

3.51

4.4

3.62

0 1 2 3 4 5 6

(in per cent)

Marcos

Aquino

Ramos

Estrada

GMA

Agriculture Budget as a Percentage of Total Budget UnderDifferent Administrations


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The Philippines is a signatory to many freetrade agreements as a member of ASEAN

1. Agreement on Agriculture under theWorld Trade Organization

2. ASEAN Free Trade Area - CommonEffective Preferential Treatment (AFTA-CEPT)

3. Other ASEAN Agreements


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Other ASEAN Agreements Free Trade Agreements Year signed Targe t date f or the

establishment of FreeTrade Area

ASEAN Free Trade A rea Common Effective PreferentialTreatment (AFTA-CEPT

1992 2003

ASEAN- China 2002 2010ASEAN - India 2003 2016ASEAN- Korea 2005 2010ASEAN CER ( Australia andNew Zealand)

2008 2013

ASEAN-EU under negotiations


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The Philippines has a negativeagricultural trade balance with ASEAN

Value of Philippine Agricultural Imports and Exports toASEAN, 1994-2008

0

500

1000

1500

2000

2500

3000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

( i n U S M i l l i o n

)

Export Import


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The Philippines has a negative agricultural tradebalance with most ASEAN countries

-1,200,000

-1,000,000

-800,000

-600,000

-400,000

-200,000

0

200,000

( i n

U S $ ' 0 0 0 )

B r u n

e i

C a m b o

d i a

I n d o

n e s i a

L a o s

M a l a y

s i a

M y a

n m a r

S i n g

a p o r e

T h a i l a

n d

V i e t n a

m

RP Agricultural Trade Balance with ASEAN


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Bulk of the countrys poor is inagriculture

61.6

0 0.1 1.74.2 4.7

6.3 6.7 9.2

0

10

20

30

40

50

60

70

( i n p e r c e n

t )

A g r i c

u l t u

r e

F i n a n c e

U t i l i t i e

s

M i n i n

g

M a n u f a c t u

r i n g

S e r v i c

e s

T r a d e

C o n s t r

u c t i o n

U n e m p l o y e d

Share of Sectors to Total Poverty, 2002


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Many farmers are poor

2.1

7.7

11.1414.8 15.7 16.6

28.5

44.848.5

0

5

10

15

20

25

30

35

40

45

50

( i n p e r c e n

t )

F i n a n c e

U t i l i t i e s

S e r v i c e s

T r a d e

U n e m p l o y e d

M a n u f a c t u r i n g

C o n s t r u c t i o n

M i n i n g

A g r i c u l t u r e

Poverty Incidence by Sector, 2002


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Arguments for Agrarian ReformImprovement in land inequality is not justabout advancing equity goals; it is also about

raising the trajectory of income growth byimproving overall economic efficiencyDeveloping countries with high landinequality can generally be expected to havelower long-term income growth rates andslower pace of poverty reduction. Balisacan, 2007


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Arguments for Agrarian ReformThere is also sufficient evidence that agrarianreform is successful in raising agricultural

incomes and in decreasing poverty. A studyconducted by the Philippine Institute forDevelopment Studies, covering 1,500 farmhouseholds, indicate that the average income

of agrarian reform beneficiaries (ARBs) is 23per cent higher than that of non-ARBs.Reyes, 2002


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Arguments for Agrarian ReformAng Kwento ni Ka Vic Fabe ng PAKISAMA

increased motivation to improve productionbigger room for innovationgreater responsiveness to the marketgreater interest in good governanceimproved incomeshousehold food securitybetter welfare

more vibrant communitiesAgrarian Reform creates a positive upward spiral for farmers, theirfamilies and their communities


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Large landholdings remainlargely untouched

Table 2: Farm Size and ClassificatioFARM SIZE and CLASSIFICATION(in '000)

ITEM 1960 1971 1980 1991 2002

NUMBER OF FARMS BY SIZE (THOUSAND FARMS)

TOTAL 2166 2354 3420 4610 4823

Under 1.00 ha 250 319 776 1685 1936

1.00-2.99 ha 1101 1118 1578 1968 19753.00-4.99 ha 405 558 588 523 5095.00-9.99 ha 290 244 360 325 30310.00-24.99 ha 109 101 104 96 8925.00 ha & over 12 14 15 13 12


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After more than 20 years, DAR has alreadyimplemented 70 per cent of its PAL Target

3,353,784

2,336,1251,809,967 1,783,071

5,163,751

4,119,196

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

( i n h e c

t a r e s

)

Private AgriculturalLands

Non-privateagricultural Lands

DAR Total

DAR Land Distribution as of June 2009

Scope Land Distributed


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AR implementation in the finalstretch

4,119,196

1,044,555

3,317,311

520,688

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

( i n h e c t a r e s

)

DAR DENR

DAR and DENR Land Distribution abd Balance, as of June2009

Distributed Balance


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AR Implementation in the finalstretch

3,017,254

2,396,096

3,048,578

2,223,133

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

DAR DENR

DAR and DENR: Number of AgrarianReform Beneficiaries, as of June 2009

Target Number of Beneficiaries Actual Number of Beneficiaries


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How can the next administration bestimplement agrarian reform? 5 points.

1. Ensure that there is actual budget forland tenure improvement

CARPER Allocation - 60 per cent of 150billion for LTI (Php 90 billion)PLEASE! Not the fate of AFMA


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2. Synergistic approach to beneficiarydevelopment

Budget for support services - 40 per centof the Php 150 billion CARPER Budget(Php 60 billion)

Inter-agency support package


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3. Innovative approach to land tenureimprovement and beneficiary

developmentGreater PO-NGO-GO cooperationEstablish mechanism for stakeholders to

validate/provide feedback on DARperformance


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5. Eliminate opportunities for bigay-bawi(reversals)

Revise relevant IRR, administrative policiesand procedures that makes bigay-bawipossible

Involve POs and NGOs in the formulation ofIRRs

Provide legal aid for farmers


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Salamat po!

07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe

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