ADB: Philippines need to boost manufacturing to reduce poverty

by: Deng Shasha

MANILA, May 2 (Xinhua) -- The Philippines will remain vulnerable to rising poverty and global economic shocks unless it can diversify its exports and expand its manufacturing base, the Asian Development Bank (ADB) said on Wednesday.

ADB President Haruhiko Kuroda said the country's manufacturing sector is dependent on the production of electronics, and diversifying the manufacturing sector will create more jobs and promote inclusive growth.

"Widening the manufacturing base beyond electronics will create much-needed jobs, promote inclusive growth and help reduce the persistent poverty," Kuroda said in a speech delivered at the opening of the bank's 45th Annual Meeting of Governors.

He added that the Philippines also need to diversify its export markets, with emphasis on emerging economies outside of East Asia, to keep it resilient amid global economic downturn.

Kuroda said the Philippines has the potential to become a key production hub in the region. This is mainly due to its educated workforce and rich natural resources, which are among the reasons why interest among foreign investors is growing.

He said developing its industry sector and modernizing services, the Philippine economy will be able to create more jobs for more Filipinos, whether they are low-, medium-, or high-skilled workers.

"By fully exploiting its favorable demographics and strategic location in the heart of Asia, the Philippines can transform its economy to one of sustainable and inclusive growth that benefits all," Kuroda said.

In a separate briefing, Philippine Trade Secretary Gregory Domingo said the government is targeting to raise the share of the manufacturing sector to the country's economy to 20 percent from the existing 14 percent in 10 to 15 years.

Domingo said "it makes sense" to develop the country's industrial base particularly since consumer spending remains as a major growth driver for Philippine economy.

The services sector now account for 54 percent of the country's GDP while agriculture accounts for 32 percent. The manufacturing sector only makes up 14 percent.

Domingo said the government needs to solve the power problem. This will make the Philippines more attractive to prospective investors in the manufacturing sector.

Domingo noted that the Philippines has comparative advantage in ship building and food processing.

(click here to view article) 

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Personal Reaction:

Philippines, through its strategic location-- in the heart of Asia, having all the natural resources to supply the needed raw materials for products, makes me, a Filipino proud and hopeful for the rise of the economy of my country. This country might be experiencing problems lately like the electricity, the "noynoy-ing" craze, poverty and a lot more. But if this country will just delve on the negative things that it is experiencing, I can safely say that this country will not experience progress.

The article that I have chosen is an eye- opener to the Filipinos that there is still hope in bringing this country on the rise. According to DBP, this country just needs a lot more manufacturing plants and bases that can lead to a lot of positive results for this country-- job opportunities, export marketing and other benefits. With the country's natural resources and it's strategic location, opportunities are very visible and the country is vulnerable for investments.

The article also mentioned that it would be great for the country to produce electronics. I think this is also a nice idea because the Philippines is not yet famous of producing electronics for export but some of the Filipinos have proven its quality by the cellular phones produced (e.g. My Phone, Cherry Mobile, Star Phone). With this new market strategy, it would open doors to investments and more demand for production if other countries would appreciate our newly- made local product.

The article also mentioned about the manufacturing sector having the least percentage in contributing to the country's GDP. With the opportunities given to the eager Filipino people to work and lift their financial conditions plus the natural resources naturally bestowed unto us plus the beautiful location of the country perfect for export, what else would this country ask for and what else could I be proud of? And it is now safe for me to really say "I am lucky to be in this country. I should not only think of the problems but also the opportunities given to me and my fellowmen."

Dutch-Filipino group plans 

solar power farms in 

Philippines

Article by: Kristine L. Alave

Philippine Daily Inquirer

MANILA, Philippines—Filipino urban households may soon enjoy electricity harvested from solar farms in the countryside.

The Department of Agrarian Reform (DAR) said a Dutch-Filipino solar power company wants to rent non-agricultural lands in rural areas to establish solar farms that could be plugged into the national grid.

The Department of Agrarian Reform said beneficiaries of the Comprehensive Agrarian Reform Program can lease out part of their land to Sunconnex Solar Powered Agri-Rural Communities (SC-Sparc), which signed a memorandum of agreement with the agency on Tuesday.

The company is targeting to put up 50 solar farms in the Philippine countryside that could produce 5-10 megawatts each. In the long run, the company said, it aims to provide 250-500 mw of power to the national grid.

“This is another opportunity for our agrarian reform beneficiaries to earn extra income by way of leasing out portions of their farm for the setting up of solar-powered plants with a generating capacity of 5-10 mw each,” Agrarian Reform Secretary Gil de los Reyes said.

National Convergence Initiative chief Marriz Agbon hailed the project, saying it could not come at a better time. He noted that the government was in need of more energy sources in light of the power shortage in Mindanao.

Under the agreement with the DAR, Sparc will enter into a long-term lease contract with land reform beneficiaries for the use of the land over a period of 20 years. The company said it will pay direct rental to the farmers, with the farmers’ cooperative getting a small percentage of the lease cost.

De los Reyes said the Sparc program would not just benefit the farmer-beneficiaries but the country as well in the form of clean energy from solar power. The power generated by the solar farm will be sent into the national grid as part of the energy blend bought by distributors. This way, even those households in the urban centers can benefit from the power harvest in the solar farms.

Officials said about 50 sites have been identified by the company, which will put up solar PV panels and storage facilities in the chosen areas. Sparc said it has identified areas in Zambales and Zamboanga for solar farms.

(click here to view article)

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        Personal Reaction:

          Having a solar power plant in the Philippines would be something new to the Filipinos and would envelope some advantages to the people, to the country and of course to the world. I find this solar power plant something nice too for it really help when it would really be started to be implemented.I find the article above very plausible and very timely with the issues that are arising now. The article mainly discussed a way as to how the country can avoid rotating brown- outs and paying more for electricity.   

           The idea of this Dutch- Filipino solar power company is really a very big help for the Filipinos in different aspects. First, it could help those farmers who own some piece of land as to they can lease it to those who want to put up solar- powered plants in the rural areas. They could earn from their land as they plant and make a living. Second, this could also help the farmers to avail electricity at a very low cost. It could also be an opportunity for those families who never experienced having electricity in their household to finally feel what it is like to have light and power and of course, comfort in their own spaces. Third, it is not only the rural people who can benefit from this but also the people living in the city. As the price of electricity goes high, people in urban places try their best to pay for it just to avoid electric disconnection. It helps now the entire Philippines to make use of their money wisely and efficiently. Fourth, this idea is indeed a great help to prevent global warming from happening. We are now using something natural that can help us in our daily needs. Since Philippines is a tropical country, the idea of having a solar power plant is indeed perfect. Lastly, this newly- opened firm will open its doors to employment, thus bringing opportunity for people to have work.  

         I really hope that this project will be implemented as soon as possible. I can imagine people now able to breathe easily because their expenses are lessened and likewise, they have contributed on saving the earth. If this project would be made, I would really encourage my family and even other people to benefit from it. It is natural and it is very beneficial to a lot of aspects.