Speed and subsidy for survival
For Philippine agriculture, subsidy is necessary for survival. But if it is not speedily released, survival may not happen. This is for both the products, as well as the farmers and fisherfolk who produce them.
On June 15, incoming Agriculture Secretary Emmanuel Piñol proposed a P30-billion additional funding to President-elect Rodrigo Duterte during a meeting with other Cabinet Secretaries. In view of the El Niño, this was “for the rehabilitation of the farming and fisheries sector so it will be able to recover right away,” Piñol said. Subsidy will come in the form of fertilizers and other farm inputs.
Piñol added: “In the case of the fisheries sector, livelihood programs will be given for fisherfolk affected by the warming of the water.”
In a June 13 radio interview, Piñol said he did not want to violate WTO provisions on agriculture subsidies. However, Agriculture Undersecretary Segfredo Serrano said this was not a problem. This is because WTO rules allow a country to give subsidy to the agriculture sector in the amount equivalent to up to 10 percent of its agriculture gross value added. Since the 2015 agriculture GVA was P1.363 billion, 10 percent is more than the P30 billion proposed.
There is an additional interpretation that part of the P30 billion can be considered a calamity fund, rather than a subsidy.
However, if much of these funds are released after the stated deadlines, they will be rendered practically useless. For example, if the fertilizers are given when the crops are already grown, these funds will just be a waste of money.
This has happened before. It can happen again. With the provision of the fund must come improved procedures for the timely release of the funds for farm inputs and fisheries livelihood programs.
Calamity preparation
The proposed P30 billion has been identified by Piñol as a recovery fund for agriculture to be used in time of calamities. With climate change, these calamities will happen more often. Learning from the Yolanda experience, we should now prepare a more systematic calamity approach.
During Yolanda, Rene Lozare volunteered to bring to the Philippines a team of calamity experts from John Hopkins University. Lozare, previously Philippine Information Agency director during the Cory Aquino administration, has become such an expert, having been involved in more than 130 countries on calamity issues. Unfortunately, miscommunication resulted in his offer not being accepted. Nevertheless, he submitted a manual on guidelines to address calamities effectively.
This manual was never taken full advantage of. Some provisions could have minimized the Yolanda damage. For example, before a calamity comes, our government is not allowed to release emergency funds until the calamity has struck. The manual recommends that these funds be released beforehand for preparatory activities necessary to minimize both damage and danger.
Fund release system
Another recommendation is for the setting up of a system for the fast release of funds. Though there may be a small amount of leakage and waste, the benefit of timely fund release in terms of saving people and property far outweighs the loss of some funds.
I have personal knowledge of a Yolanda instance when a bureaucratic procedure delayed the relief assistance. It was no longer useful when it finally arrived. Rather than wait for the next calamity, this manual should be immediately studied and its relevant provisions implemented. This way, when a calamity comes, we will be well-prepared for it. In such cases, speed is of the essence because it often means survival.
In our country, the best intentions are not fulfilled because of bureaucratic procedures that slow down the planned implementation of well-conceived plans. The devil is in the detail of the procedures that should be reviewed and modified.
Agriculture subsidies are often more time critical than industry subsidies. And in calamities, timing is everything.
The incoming administration should immediately focus on improving the speed of service delivery. In many cases, speed determines survival.
(The author is chair of Agriwatch, former Secretary for Presidential Flagship Programs and Projects, and former Undersecretary for Agriculture, Trade and Industry. For inquiries and suggestions, email [email protected] or telefax 8522112.)
