The Department of Budget and Management (DBM) has asked the Department of Agriculture (DA) to provide subsector road maps as a condition for DBM’s endorsement of the DA’s proposed 48 percent increase in its budget, from P65 billion this year to P96 billion next year.
Initially, the DBM proposed a 26-percent decrease to P48 billion for 2014.
The DBM’s proposal may have been prompted by the fact that the agriculture sector grew by 5 percent in 2004 with the DA having a budget of only P14 billion. In contrast, the 2012 budget of P53 billion yielded an increase of only 3 percent.
But the growth for 2012 can already be considered a big turnaround.
Since Agriculture Secretary Proceso Alcala took over the portfolio, the sector has recovered from hardly any growth in 2009 and 2010 to an expansion of 2 percent in 2011 and 3 percent in 2012.
Nevertheless, road maps are a good tool to help ensure optimal budget use. Last November 2012, Alcala ordered DA officials to formulate these road maps.
At a meeting earlier this month, private sector leaders asked to see the drafts of these road maps. A DA official responded that they were still completing the draft. These road maps would be made available before the end of this month for review by the private sector.
The DA road map formulation process has not been uniform. Some officials closely involved stakeholders, while others did not.
Road maps can just become pieces of paper if they lack quality and commitment. Stakeholder participation is necessary to get the needed information to help ensure quality.
In 1987, the DTI embarked on its first systematic road-map formulation for key industry sub-sectors. Having been a Xerox Corporation strategic planning manager for its global headquarters based in the United States, I was assigned to oversee these road maps.
These road maps were done by highly paid consultants, but without adequate stakeholder consultation. More than 70 percent of the completed road maps were rejected by the private sector. After almost a year, most of these road maps were completed with private-sector consultation.
The road maps were largely successful. BOI-registered investments skyrocketed from P3 billion in 1985 to P400 billion in 1988. Unfortunately, the 1989 attempted coup d’etat shook investor confidence and halted this winning streak.
It is now necessary that we learn the lessons from the past.
First, the road maps should conform to a minimum standard outline. Road-map formulation experts with professional experience should be harnessed so that we have high quality roadmaps, not merely compilations of recommendations with little solid basis.
Second, substantial stakeholder participation should be required.
Third, responsible individuals should be identified and made accountable for each road map: one from DA, and one from the private sector.
Future budget increases or decreases for each sector should be determined by the relative success of road-map implementation.
The quality of and the commitment to the road map must be a joint undertaking of the DA and the private sector.
With accountable individuals from the government and the private sector, supported by the appropriate budget levels that are dependent on road-map performance, road maps will then not remain as pieces of paper. Instead, they can be effective strategic tools in achieving our twin goals of food security and increased farmer and fisherfolk incomes.
(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, e-mail agriwatch_phil@yahoo.com or telefax (02) 8522112.)