Global Trade Mailing List Archive

[Rodrigo Matabaran <<address removed>>]

Let me present my reaction to the comment of Lameen Abdul-Malik.
 
I agree that trade liberalization have benefitted the poor in less developed 
countries such as ours, the Philippines.  The inflow of low priced consumer 
goods (mostly coming from China) have help in certain degree the low income 
families comprising a great majority of the population.  
 
However, it is evident that the coping mechanism of less developed countries in 
this global trading environment is very much low.  Particularly in the 
agriculculture sector.  The government have instituted certain safety nets in 
various sectors but the effect still remains to be seen.  The farming sector is 
facing hard times as importation approved by the government goes on.  Rice, 
vegatables and other crops is being imported from neighboring countries.  
Policy as well as operational issues to address these concerns among others has 
to be instituted.
 
Such effort is confronted by some problems such as budget constraints, 
inadequate extension mechanism (which was devolved to the Local Government 
Units)  and others.  Although technology is said to be available, inputs is 
very scarce and not readily accessible for the farmers and small entrepreneurs. 
 
 
Let me present a simple case.  We have initiated citronella grass oil 
production project in 1997 for the upland farmers of Dinagat Island, Surigao 
del Norte.  Back then the price is Php 650.00 per kilo.  Now as citronella oil 
from Indonesia and China comes in, the industrial users is buying the oil at 
Php 305.00-450.00.  This is a simple but very grim example of the effect of 
trade liberalization on the income of our upland farmers.
 
Rodrigo R. Matabaran   

                
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