Philippines

Agriculture is the most important sector in the Philippine economy, accounting for one-third of net domestic product, one-half of total employment, and almost three... Show More + -fourths of commodity export earnings. The major agricultural goals of the Government are self-sufficiency in cereals, expansion of agricultural exports, identification of land reform and distribution, and conservation of natural resources. This report reviews the prospects and performance of the sector in relation to these objectives and looks at the longer run potential for agriculture. Rehabilitation of existing irrigation systems and development of new systems will be required to increase output and improve smallholder incomes. In addition, fish and forest resources can be exploited and improved techniques for cattle raising will greatly benefit the economy. The major problems facing the development task include limited credit availability, inadequate research and extension services, a large number of small farmers, and a lack of transport facilities. Show Less -

Agriculture is the most important sector in the Philippine economy, accounting for one-third of net domestic product, one-half of total employment, and almost three... Show More + -fourths of commodity export earnings. The major agricultural goals of the Government are self-sufficiency in cereals, expansion of agricultural exports, identification of land reform and distribution, and conservation of natural resources. This report reviews the prospects and performance of the sector in relation to these objectives and looks at the longer run potential for agriculture. Rehabilitation of existing irrigation systems and development of new systems will be required to increase output and improve smallholder incomes. In addition, fish and forest resources can be exploited and improved techniques for cattle raising will greatly benefit the economy. The major problems facing the development task include limited credit availability, inadequate research and extension services, a large number of small farmers, and a lack of transport facilities. Show Less -

A stronger expansion of the economy in 1973-74 would be essential for a vigorous attack on the problems that have beset the economy in recent years. The main elemen... Show More + t in a recovery would have to be increased agricultural production through close attention to expanding credit and other supporting services. A better performance in the forthcoming year is likely to be assisted by a vigorous expansion in public development expenditures, a recovery in export earnings because of improved prices for major primary commodities and further expansion of output, and an improvement in import-competing industries as a result of the recent realignment of international currencies. This three-volume report discusses current economic position and the economic prospects for the country. Volume I discusses the pattern of past development; a development strategy for the Seventies; sector development strategies; agrarian reform; the public investment program; domestic resource mobilization; and, external trade and financing. Volume II provides a survey of industrial development, and also discusses the transportation sector. Volume III is a statistical appendix. Show Less -

In the two years since the adoption of the Stabilization Program in February 11970, the immediate economic situation in the Philippines has shown improvement in sev... Show More + eral respects, but underlying balance of payments and fiscal problems persist. The economic outlook for the next several years is likely to continue to be dominated by the concern with the balance of payments. The role of government policies in curbing import demand, while maintaining the present momentum of the economy, will be vital, and the need to economize on relatively non-essential imports through appropriate fiscal and other means will continue. Present government efforts to increase foodgrain production should at least reduce the deficits in rice and corn, and a shift in the structure of investment from the private to the public sector should help reduce the foreign exchange component of the investment program. A minimum increase in industrial raw materials and intermediate products could be achieved through better utilization of industrial capacity. A higher level of public investment would facilitate a large absorption of official assistance, but greater efficiency in the project cycle is the more critical factor. In addition, the country's urgent social problems must be addressed. Show Less -

The concept of agricultural productivity penetrated the agricultural strategy of the Philippines after gains of the high-yielding varieties of rice became obvious. ... Show More + The highest yields of paddies were obtained in the areas where all interrelated input factors (high-yielding varieties + fertilizers + irrigation) were applied at the same time. The results achieved by miracle rice have encouraged farmers to give up traditional methods and to accept innovations. This has also decisively influenced the governments economic policy. It is not a pure historical coincidence that the Administration of President Marcos in his first term, at the time when the first practical results of new varieties of rice were noticeable, shifted economic policy emphasis from industrialization to the promotion of agriculture. This is now much more vigorously launched in the second term of the Marcos Administration and particularly in the present Four Year Plan from 1971 to 1974. The rice irrigation projects started to be developed on a larger scale including ground water development. Thus, rice cultivation reached the stage of self-sufficiency and the country is no longer obliged to import rice for its fast increasing population. Today, possibilities for rice exports are even considered. Lack of credit is one of the main bottlenecks for increased investments on new technological means of production. The available loans of rural banks, the Agricultural Credit Administration (ACA) and cooperatives cover about one-half of the most necessary production costs. Therefore, farmers often borrow from private money lenders at exorbitant interest rates. One possibility to induce higher credits to farmers by commercial banks would be a government guarantee scheme. Show Less -