Background

It has long been recognized that smuggling or informal trading in whatever mode results in a negative net effect to the society as a whole. First and foremost, smuggling reduces the revenue that the government can generate, which could be used to provide the basic services for the citizens of the country. Entry of cheaper-priced smuggled goods decreases the competitive advantage of local producers. Consequently, the capacity of the domestic economy to generate more employment is negatively affected and the livelihood of small farmers is also imperiled due to the undue advantage of smuggled goods.

Studies in the late 1980’s have shown that the estimated extent of smuggling has totalled to about US$ 6 billion. In more recent research findings, the calculations estimated the value of smuggling to be about US$10 billion. This massive volume of illegal trade, no doubt, has adversely affected the country’s economic position. Hence, it is crucial to examine the nature, extent and channels of these illegal trade transactions. Furthermore, the study will also serve as a benchmark to the conditions of the World Trade Organization (WTO), as well as to the country’s commitments in regional and bilateral free trade agreements, including the prescription that the Philippines will implement zero tariffs on selected agricultural commodities.

Objectives

 In general, the study aims to examine the dynamics of smuggling in the Philippines. Specifically, the study will address the following objectives:

1. Determine the nature and the extent of smuggling in the country; 
2. Assess the effectiveness of existing policies to address smuggling; 
3. Track the channels of smuggling in selected agricultural commodities; and 
4. Draw policy implications to mitigate the problem of smuggling.

Methods

 The assessment will employ both quantitative and qualitative assessments. The determination of the extent of illegal trading and the effectiveness of existing trade policies, including sanctions and penalties for illegal trading, will be done using econometric models applied to secondary data from various sources.

On the other hand, the determination of the nature and tracking of the channels of informal trade will be performed using qualitative analytical techniques. This will make use of the widely employed Rapid Area Appraisal (RAA) technique. The sensitive nature of the data required in the determination of the nature of illegal trade as well as the information needed to track the illegal trade channels would require this methodology. Spatial analysis will be used to determine the factors that influence the flow of informally-traded agricultural commodities.

Furthermore, the study can draw lessons from the experiences of stakeholders from the regulatory agencies of the government as well as of traders and producers. Hence, a series of roundtable discussions that will be held in the following selected strategic areas in the country: Batangas City and Subic in Luzon; Cebu City in the Visayas; and Cagayan de Oro and Davao Cities in Mindanao.

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Source: BusinessMirror
2 May 2015

THE Philippines and other developing countries must spend $28 billion a year by 2030 to adapt to climate change. These are huge sums by any standard, wrote Lisa Doughtery-Choux for the World Resources Institute on April 23.

“As global temperatures climb, so do the costs of adapting to a warmer world. Severe weather events are becoming more frequent, creating major budget pressures for national governments, especially those in the developing world,” Choux warned.

The financial requirement would be heavy on poor nations with coastal communities vulnerable to the expected rise in sea level anywhere from 52 centimeters to 98 centimeters by 2100.

This rise in sea level would threaten billions of people, she added, “and increasing temperatures and shifting weather patterns threaten major economic sectors, such as agriculture, tourism and energy supply.”

Problems associated with the dire consequences of climate on agriculture have not been lost on the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca), which has been pushing a Weather Index-Based Insurance (Wibi) for Agricultural Production as a means to reduce losses among farmers. In his monograph,  “Implementation Issues in Weather Index-based Insurance for Agricultural Production: A Philippine Case Study,” Dr. Felino P. Lansigan, professor and dean of the College of Arts and Sciences of the University of the Philippines at Los Banos, said Wibi and the knowledge about the impact of climate change will teach farmers how to maximize their output, particularly for rice, and resort to the use of flood- and drought-resistant varieties.

Searca Director Dr. Gil C. Saguiguit Jr. said the Institute of Global Environmental Strategies in Kanagawa, Japan, supported the study, along with Asia-Pacific Adaptation Network and the Japanese Ministry of Environment. Crop insurance is important for the Association of Southeast Asian Nations, since 66.6 percent of the arable land in its member-states is planted to rice, and at least 90 percent of Indonesian farmers are susceptible to climate risks and 80 percent depend on rainfall for irrigation.

Saguiguit also noted that rice and corn yields in the Philippines decreased significantly during the El Niño episodes in 1997 and 1998, and in 1982 and 1983.

Foreign experts have projected rising costs, based on the fact that climate change has become more severe than projected, with some of them predicting a tripling of adaptation costs. “Developed and developing countries are responding to threats by committing increasing amounts of public finance to adapt to climate change, including from national, multilateral and bilateral sources,” Choux revealed.

Public money raised to address climate change in 2010 was a mere $4 billion, but the figure zoomed to $25 billion three years later.

For the 21st session of the Conference of the Parties to be held in Paris in December, many nations are expected to accelerate efforts toward climate adaptation. The latest estimate is that adaptation finance must rise by 438 percent in 2050.

“It’s important to tap into additional public-sector finance from developed countries, mobilize private-sector finance for adaptation and increase national spending in developing countries. The Paris negotiations need to help this mobilization process move forward as quickly as possible,” Choux said.

In 2009 developed countries pledged to provide $100 billion in climate finance annually by 2020, but the donor countries did not specify whether the money would go to adaptation or mitigation.