Publication:
Transforming Philippine Agriculture: During COVID-19 and Beyond

Loading...
Thumbnail Image
Files in English
English PDF (5.53 MB)
20,026 downloads
Published
2020-06
ISSN
Date
2020-07-01
Author(s)
Editor(s)
Abstract
Like other rapidly growing and urbanizing middle-income countries, the Philippines is experiencing a structural transformation of its economy. Structural transformation has progressed slowly in the Philippines, however, indicating that Philippine agriculture is not performing to its potential and therefore not fully delivering to the national (and rural) economy. The new strategic vision for the agricultural sector is a food-secure and resilient Philippines with prosperous farmers and fisherfolk. This new thinking for accelerating agricultural transformation recognizes both the limitations of and potential for the agricultural sector in the COVID-19 (Coronavirus) context. This report outlines policy and investment options to promote the development of a more diversified agriculture and food system that will enhance the welfare of the rural population and improve food security for the population at large. This report considers the major programs of the department of agriculture (DA) and trends in spending patterns over the last few years, although it is not a comprehensive review of agricultural policies and public expenditures, owing to a lack of data. This report comprises five chapters. Chapter one is introduction. Chapter two provides an overview of the agricultural sector, highlighting important trends over time, the current situation, and challenges. Chapter three reviews programs of the DA and attached agencies, including the major banner programs. Chapter four discusses policy reforms, institutional changes, and investments that have produced transformational change in the agri-food sector in other countries and explores how the Philippines can use lessons from these experiences. Chapter five presents recommendations for future policy directions.
Link to Data Set
Citation
World Bank. 2020. Transforming Philippine Agriculture: During COVID-19 and Beyond. © World Bank. http://hdl.handle.net/10986/34012 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Uganda - Promoting Inclusive Growth : Transforming Farms, Human Capital, and Economic Geography, Synthesis Report
    (Washington, DC, 2012-02) World Bank
    At an average above 6.0 percent per year over the past two decades, Uganda' s growth rate was impressive by all standards. In parallel, poverty declined significantly, not only in urban areas, but also to some extent within the rural areas. This combination was possible because the key drivers of growth were labor-intensive services sectors, some of which are agriculture based. In fact, Uganda's growth process has reduced overall poverty faster than what has been observed in many other developing countries. This report addresses the issue from a double perspective: sectoral and geographical. From a sectoral perspective, it concludes that the agricultural sector needs transformation because it remains the primary employer; it is the country's main comparative advantage and bedrock for industrialization. More broadly, identifying sectors with potential will be important for employment opportunities, which in turn will be largely dependent on productivity levels and thus on the level of education and skills of the labor force. From a geographical perspective, transformation generally yields a concentration of economic activities that leaves some locations lagging in prosperity. This unbalanced growth needs to be supported with appropriate economic integration policies that have been analyzed in the report.
  • Publication
    Philippines Digital Economy Report 2020
    (World Bank, Washington, DC, 2020-10-01) World Bank
    The COVID-19 (coronavirus) pandemic underscores the importance of digitalization for economic and social resilience. COVID-19 is restricting mobility and economic activity around the world, and the Philippines is no exception. As mobility restrictions and social distancing measures limit face-to-face interactions and activities, the availability of affordable digital technologies has emerged as a key determinant of resilience. Indeed, digital technologies allow businesses, the government and schools to pursue operations online rather than completely shutting down. E-commerce and digital payments have permitted business transactions to continue and goods to be delivered; online communication platforms have facilitated home-based work, virtual meetings, and remote classes; and government agencies in many countries have used online processes to quickly deliver social assistance to vulnerable households. Unfortunately, not all countries have been able to leverage digital technologies to their full extent, because of poor access to high quality internet and long-held analog practices. In the Philippines, COVID-19 has accelerated the adoption and use of digital technologies. However, digitalization is largely constrained by the country’s low high-speed broadband penetration, which lags behind neighboring middle-income countries. The digital divide in the Philippines is large with nearly 60 percent of households not having access to internet, and unable to reap the benefits of digitalization. As a result, face-to-face interactions and analog practices largely dominate in the Philippines, making social distancing economically costly. For example, cash and cheques remain the dominant modes of payment while applying for permits and licenses typically requires exchange of documents in person. Gatherings of people waiting in lines are typical fixture for Filipinos to secure goods and services. This report provides a thorough analysis of the obstacles to digitalization and identifies key reforms and policy measures that could help the Philippines harness the potential of the digital economy. It uses the CHIP (Connect, Harness, Innovate, Protect) conceptual framework to analyze the requirements to accelerate digital transformation. The framework focuses on four key drivers of digitalization: (i) Connect, which refers to a set measures to build the digital foundation and enablers such as digital infrastructure for participation in the digital economy; (ii) Harness, which points to needed investments in analog complements such as skills, regulations, and institutions to leverage the old economy; (iii) Innovate, which refers to expanding the new economy services, digital payments, digital entrepreneurship and e-government; and (iv) Protect, which focuses on mitigating the risks in the digital economy. The need to act on the digital economy is urgent. Reforms delivered now will help the government cushion the impact of the COVID-19 outbreak, support the recovery in the medium term, and make the economy more inclusive, competitive, and resilient to similar shocks in the long term.
  • Publication
    Basic Agricultural Public Expenditure Diagnostic Review : Ghana's Ministry of Food and Agriculture
    (Washington, DC, 2013-04) World Bank
    Ghana, like many other African countries, had made a commitment in 2003 to allocate at least ten percent of their national budgetary resources to develop the agricultural sector by 2008, following the adoption of the Comprehensive African Agriculture Development Programme (CAADP), with an aim towards realizing food security and poverty reduction. This Agriculture Public Expenditure Review (AgPER) for Ghana analyzes data on public spending from both government and donor sources to assess: 1) the alignment between expenditure patterns within the agricultural sector and stated policy priorities; and 2) the effectiveness of public spending by comparing spending against results. The outputs of the review include a comprehensive agricultural expenditure assessment to help provide a solid foundation for carrying out specialized studies, such as Public Expenditure Tracking Surveys (PETS), and the establishment of the levels and composition of public expenditure in the selected subsectors
  • Publication
    Responding to Higher and More Volatile World Food Prices
    (Washington, DC, 2012-05) World Bank
    Following the world food price spike in 2008 and again in 2011, there has been increased attention on better understanding the drivers of food prices, their impacts on the poor, and policy response options. This paper provides a simple model that closely simulates actual historical food price behavior around which the analysis of the drivers of food price levels, volatility, and the associated response options is derived. Future food prices are likely to remain higher than pre-2007 levels and recent price uncertainty is likely to continue for the foreseeable future. Accelerated use of food crops for industrial purposes (biofuels) continues to offset the slowing population growth effect on food demand. World food stocks remain at relatively low levels where the likelihood of price spikes is higher. Production gains may be harder to achieve in the future than in the past, with more limited space for area expansion, declining yield growth, and increases in weather variability. Suggested responses to reduce average food price levels are to (i) raise food crop yields, and their resilience, as the single most important action needed for an enduring solution to global food security; (ii) improve the rural investment climate to induce a private sector supply response; (iii) facilitate land markets to expand planted food crop areas and strengthen property rights to improve the use of existing cropped areas; (iv) better use price risk management tools; and (v) increase the responsiveness of the food system to price increases through better integrating markets to ensure world price signals reach more producers to induce a supply response. To reduce world food price volatility, suggested responses are to: (1) develop weather-tolerant crop varieties to reduce food production shocks; (2) improve management of food-grain stock purchases and releases to reduce, rather than amplify, local and world food price volatility; (3) shift to market-based biofuels policies (make biofuels mandates more flexible); (4) open trade across all markets to diversify short-term production shocks dissipating the associated price effects; and (5) improve market transparency to reduce market uncertainty and the associated large price corrections following revisions to market information (production, stocks, and trade). Suggested measures to reduce the negative impact of price shocks on food security are: (a) reduce taxes and tariffs (in some cases) to lower domestic prices, (b) short-term food and cash transfers to preserve purchasing power, and (c) support for agricultural production to try to prevent a next season shortfall that could add to local price increases.
  • Publication
    Estimates of Domestic Resource Cost in Philippines Agriculture
    (World Bank, Washington, DC, 2014-01) Briones, Roehlano M.
    This study is part of a World Bank review of major issues in agribusiness in the Philippines that aims at (i) strengthening the analytical underpinnings of the current and future portfolio of operations of the Bank in the Agriculture and Rural Development (ARD) sector of the Philippines, consolidating analytical work carried out in the past two to three years and provide critical inputs for project design; and (ii) building capacities and developing a common understanding and platform with counterparts on how the results of this analysis could inform future policies and programs in the agriculture and agribusiness sector of the Philippines. The study updates the last round of domestic resource cost (DRC) estimations done by Gergely (2010), and continues work done on agricultural policy indicators for the Philippines. The rest of this report is organized as follows: the methodology for DRC analysis is presented in Section 2. A review of commodity profiles and past estimates is provided in Section 3. Section 4 presents the results and analysis of applying the DRC method. Section 5 summarizes and makes recommendations.

Users also downloaded

Showing related downloaded files

  • Publication
    Addressing Gender-Based Violence to Accelerate Gender Equality
    (Washington, DC: World Bank, 2023-10-16) Maruo, Mirai; Arango, Diana J.; Grossi, Ariana Maria del Mar; Contreras-Urbina, Manuel
    Gender-based Violence (GBV) is the most egregious manifestation of gender inequality and an alarming global public health, human rights and development challenge. It is most often perpetrated against women and girls. This note reviews available data and evidence on GBV, outlines promising approaches, and presents strategic and operational recommendations. The following key messages serve as a call-to-action to policymakers, practitioners, researchers, and organizations seeking to eradicate GBV: • GBV prevention and response clear the path to reach development goals, including gender equality. • Institutionalizing GBV prevention and response across sectors, supported by adequate financing, can help prevent violence. Investments in technical expertise are essential. • Collaboration and coordination with international and national partners as well as the private sector are critical for inclusive, sustainable, and deeper engagements. Supporting national coordinating bodies can enhance an effective and coherent multi-sectoral approach.
  • Publication
    Can Public Credit Schemes Improve Access to Finance for Small Businesses? Evidence from Indonesia
    (Washington, DC: World Bank, 2024-09-06) Alibha, Salman; Johnson, Hillary C.; Niang, Cecile Thioro; Strobbe, Francesco
    Examining one of the world’s largest public business support programs, this paper studies how subsidized credit and partial credit guarantees shape access to finance for micro and small businesses in Indonesia. The analysis uses administrative data on more than 8.4 million borrowers and unique quantitative and qualitative data to show that subsidized credit can enable firms to access formal credit for the first time and boost financial inclusion. However, subsidized credit does not alleviate longer-term credit constraints by serving as a stepping stone to unsubsidized commercial credit in this context. The results highlight the challenge of reaching borrowers without collateral, even in programs that explicitly target them using instruments such as partial credit guarantees. The paper sheds light on how public credit schemes for small businesses can be designed to optimize inclusiveness and additionality.
  • Publication
    What’s Mine is Yours
    (World Bank, Washington, DC, 2020-06) Donald, Aletheia; Goldstein, Markus; Hartman, Alexandra; La Ferrara, Eliana; O'Sullivan, Michael; Stickler, Mercedes
    The protection of formal institutions can help to strengthen women’s property rights, potentially improving welfare and economic efficiency of the household with broader implications. Individual land certification in women’s names and civil marriage registration offer two routes for women towards a more formal delineation of their property rights. In the context of the World Bank Land Policy Improvement and Implementation Project (PAMOFOR), this pilot project examines what drives the take-up of innovative interventions that aim to strengthen women’s property rights in rural Cote d’Ivoire: providing economic incentives for a man to register land in his wife’s name, shifting attitudes through an emotionally resonant video, and encouraging civil marriage in the wake of a new legal reform. Pilot results show how highlighting the benefits of women’s land ownership for family harmony, economic efficiency, and security for the family can induce husbands to reallocate land to their wives.
  • Publication
    Business Ready 2024
    (Washington, DC: World Bank, 2024-10-03) World Bank
    Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.
  • Publication
    Ten Steps to a Results-Based Monitoring and Evaluation System : A Handbook for Development Practitioners
    (Washington, DC: World Bank, 2004) Zall Kusek, Jody; Rist, Ray C.
    An effective state is essential to achieving socio-economic and sustainable development. With the advent of globalization, there are growing pressures on governments and organizations around the world to be more responsive to the demands of internal and external stakeholders for good governance, accountability and transparency, greater development effectiveness, and delivery of tangible results. Governments, parliaments, citizens, the private sector, Non-governmental Organizations (NGOs), civil society, international organizations, and donors are among the stakeholders interested in better performance. As demands for greater accountability and real results have increased, there is an attendant need for enhanced results-based monitoring and evaluation of policies, programs, and projects. This handbook provides a comprehensive ten-step model that will help guide development practitioners through the process of designing and building a results-based monitoring and evaluation system. These steps begin with a 'readiness assessment' and take the practitioner through the design, management, and importantly, the sustainability of such systems. The handbook describes each step in detail, the tasks needed to complete each one, and the tools available to help along the way.