8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
1/28
Agrarian Reform in aGlobalizing World
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
2/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
3/28
Outline of the Presentation
1. Overview of Philippine agriculture2. Arguments for agrarian reform3. Requirements for an effective agrarian
reform progam
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
4/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
5/28
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
6/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
7/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
8/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
9/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
10/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
11/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
12/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
13/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
14/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
15/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
16/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
17/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
18/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
19/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
20/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
21/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
22/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
23/28
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
24/28
How can the next administration bestimplement agrarian reform? 5 points.
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
25/28
How can the next administration bestimplement agrarian reform? 5 points.
3. Innovative approach to land tenureimprovement and beneficiary
developmentGreater PO-NGO-GO cooperationEstablish mechanism for stakeholders to
validate/provide feedback on DARperformance
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
26/28
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
27/28
How can the next administration bestimplement agrarian reform? 5 points.
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
8/9/2019 07 Agrarian Reform in a Globalizing World - Prof. Maria Dolores Bernabe
28/28
Salamat po!