Saturday, June 20, 2009

Human Settlements Dev 6- PRIVATE SECTOR PARTICIPATION

Regional development projects require tremendous investments which are clearly beyond the capacity of public resources.  With appropriate incentives, the private sector shall be induced to invest in a number of industries and infrastructure projects including those that seemingly only government could undertake, such as road and bridge construction.
A complementary strategy to induce private investments, aside from incentives already available would be to incorporate the following elements:
  1. Corporate income tax schedule oriented towards labor employment;
  2. Tax rebates and holidays or other subsidies to industries that will base their operations in the desired areas; and
  3. Equity loans to investors, on a 50-50 basis and at a maximum interest rate of six percent per annum for the purchase of stocks preferably of private corporations which are located in the regional center or river basin.
Production ceilings shall be set by the government and incentives shall be increased or reduced depending on whether production lags or exceeds the ceilings.  To safe guard production against severe reverses,  the government shall see to it that the private entrepreneur is able to sustain a profitable enterprise in any case.  This flexible tax-subsidy scheme is a potent tool in correcting under and over production.

Monday, June 15, 2009

Human Settlements Development 5

The execution of projects shall follow a phased or staged program under sets of timetable according their technical complimentarity and feasibility.  Those projects that are mutually dependent and absolutely essential for the technical and economic feasibility of the entire package shall be implemented en masse.  On the other hand, projects that can be advanced or deferred from a package without affecting  its feasibility shall be timed in accordance with the feasibility study results.  They include those that are found to be obviously feasible at the early stage  of regional development planning and could be immediately on stream without significantly affecting or being affected by the over-all development strategy and those projects that require more detailed feasibility studies.

Regional Human Settlements Development 4

Projects in the regional centers shall include markets, electrification, water supplies and sewerage, housing , hospitals, educational facilities, seaport/airport, streets, recreational facilities, telecommunications, transportation, hotels, industrial estates, etc.  Projects in the river basins on the other hand, shall include the construction of highways, irrigation and drainage systems, transportation, access roads, rural electrification, rural water supplies, school and health facilities, agricultural food bowls, agricultural support service and simulation of other urban amenities.

In more immediate terms, undergraduate studies should be relocated from manila proper to a provincial location, say Tagaytay city.

Saturday, June 13, 2009

RP is ‘highly exposed’ to rising poverty - WB


Friday, June 12, 2009

Regional Human Settlements Development 3

Human and material resources of the Philippines should be dispersed to a number of growth points.  Socio-economic dispersal should be carried out by developing twelve designated regional centers and seven major river basins.  Possible regional centers are San Fernando (La Union), Tuguegarao (Cagayan), San Fernando (Pampanga), Legaspi City, Iloilo City, Cebu City, Tacloban City, Cagayan de Oro City, Davao City, Cotabato City, Zamboanga City and Jolo.  The major river basins are Cagayan, Agno, Pampanga, Bicol, Panay-jalaur, Agusan and Cotabato.

The regional centers shall serve as population sub-centers and as markets for agricultural and non-agricultural goods and services.  The river basins will function as sources of food and raw materials and as additional markets for urban goods.

Regional Human Settlements Development 2

     The concentration of opportunities in Metro Manila has invited heavy migrations from the other regions of the Philippines.  As a result Metro Manila is beset almost irreversibly with problems of congestion, pollution, slums, squatters, garbage, peace and order; and the lack of housing, education, transportation, communications, health, water and electrical facilities.

Thursday, June 11, 2009

This is something  perhaps one should read once a week (taken from an email forwarded to me without the authors name)       

 
1. Life isn't fair, but it's still good.
2. When in doubt, just take the next small step.
3. Life is too short to waste time hating anyone....
4. Your job won't take care of you when you are  sick. Your friends and parents will. Stay in touch
5. Pay off your credit cards every month.
6. You don't have to win every argument. 
Agree to disagree.
7. Cry with someone. It's more healing than crying alone.
 8. It's OK to get angry with God. He can take it.
 9. Save for retirement starting with your first pay check.
 10. When it comes to chocolate,
 resistance is futile.
 11. Make peace with your past so it won't screw up the present.
 12. It's OK to let your children see you cry.
 13. Don't compare your life to others.
 You have no idea what their journey is all about.
 14. If a relationship has to be a secret, you shouldn't be in it.
 15. Everything can change in the 
blink of an eye. But don't worry; God never blinks.
 16. Take a 
deep breath. It calms the mind.
 17. Get rid of anything that isn't useful, beautiful or joyful.
 18. Whatever doesn't kill you really does make you stronger.
 19. It's never too late to have a happy childhood. But the second one is up to you and no one else.
 20. When it comes to going after what you love in life, don't take no for an answer.
 21. Burn the candles, use the nice sheets, wear the fancy lingerie. Don't save it for a special occasion. Today is special.
 22. Over prepare, then go with the flow.
 23. Be eccentric now. Don't wait for old age to wear purple.
 24. The most important sex organ is the brain.  
 25. No one is in charge of your happiness but you.
 26. Frame every so-called disaster with these words, 'In five years, will this matter?'
 27. Always choose life.
 28. Forgive everyone everything.. 
 29. What other people think of you is none of your business.
 30. Time heals almost everything. Give time time.
 31. However good or bad a situation is, it will change.
 32. Don't take yourself so seriously. No one else does.
 33. Believe in miracles.
 34. God loves you because of who God is, not because of anything you did or didn't do.
 35. Don't audit life. Show up and make the most of it now.
 36. Growing old beats the alternative -- dying young.
 37. Your children get only one childhood.
 38. All that truly matters in the end is that you loved.
 39. Get outside every day. Miracles are waiting everywhere.
 40. If we all threw our problems in a pile and saw everyone else's, we'd grab ours back.
 41. Envy is a waste of time. You already have all you need.
 42. The best is yet to come.
 43. No matter how you feel, get up, dress up and show up.
 44. Yield.
 45. Life isn't tied with a bow, but it's still a gift.


Wednesday, June 10, 2009

Metro Manila Congested at 18,650 Persons Per Square Kilometer in 2007 - nso facts and figures

Based on the results of the 2007 Census of Population, the country’s population density is 260 persons per square kilometer or a 15.6 percent increase from 2000.  Metro Manila, the country’s center of economic activity and the most densely populated region, has 26 times the density of people in CALABARZON and 41 times that of Central Luzon.  With a land area of only 619.5 square kilometers and a population of 11,553,427, Metro Manila has a population density of 18,650 persons per square kilometer in 2007, an increase of 16.3 percent or 2,617 persons per square kilometer from 2000. 

Item 1 Regional Human Settlements Development

Economic wealth and power are overwhelmingly concentrated in Metro Manila.  Metro Manila accounts for some 80% of the countries economic growth and progress- about 70% of the non-agricultural workers, 90% of the biggest corporations, the major financial institutions, schools, hospitals, hotels, etc

Monday, June 8, 2009

RP to enter 'mild' recession by Q2- Joey Salceda


abs-cbnNEWS.com | 06/08/2009 

Albay Gov. Joey Salceda on Monday said he expects the Philippines to enter into a mild recession as early as the second quarter this year, which can only be countervailed by pump-priming the economy through increased spending. 

Salceda, an economic adviser to President Arroyo, said he expects the country to go into recession in the second quarter after gross domestic product reached a two-decade low of 0.4 percent in the first quarter. The GDP grew by 3.9 percent during the same period a year ago.

"We are experiencing significant downturn that will reach into the next quarter. My estimate is that, even including 60 percent increase in public construction, 1.4 percent in services, two percent in agriculture on the supply side, we will only reach 0.92 percent [GDP growth] in the second quarter," the governor told ANC television.

"Theoretically, in the Philippine definition of a recession, we will enter into a recession."

Salceda said the Philippines has technically entered into a recession when GDP drops below the population growth rate of 1.92 percent for two consecutive quarters. 

The Albay governor said the government should seriously consider his proposal to approve a P100-billion stimulus package for scholarships, health care, mass housing, and tax rebates for the middle class to boost the economy. 

He said one problem affecting the economic climate is that personal consumption and expenditures is at an all-time low of 0.8 percent in the first three months. 

"That is the source of the weakness. PCE is very weak. The money is going to the middle class but they are not spending it, they are saving it. On the other hand, the poor always have basic needs so if you give them money, the economy will run. Anything for the poor at this point or stage of the economic cycle is good economic policy. But then you can target it so dole it out through conditional cash transfers," he said. 

"I'll define it by extremes. Find a helicopter and drop the money in Tondo or Payatas where all the poor families are. I think that is the best way to do a stimulus." 

He said his proposed stimulus plan includes increasing government allocations to conditional cash transfers to poor families from P10 billion to P35 billion from P10 billion and increasing tax rebates to middle class earners. 

He also proposed that tax filers be given cash vouchers worth P7,000 in major department stores "so they will be forced to spend." 

Condone agri loans

Salceda said the government should boost college scholarships and Technical Education and Skills Development Authority benefits from P3 billion to P15 billion. He noted that at least 52 percent of jobless Filipinos in the country are ages 15 to 24. 

"Why would they be looking for jobs when they should be in school? So keeping them in school would be better, it will make more sense," he said. 

He also said the government should condone  P42 billion in unpaid agricultural loans and continue to give out land to landless farmers. He noted that from 1972-2007, only 18 percent of total agrarian liabilities have been paid. 

"There are 4.2 million hectares of arable land that have been mortgaged to the Landbank. Those are just frozen assets. We need to liquefy it and inject real assets into the rural property market," he said.

Con-Ass to affect economy

He also warned that a House of Representatives initiative to change the Charter though constituent assembly would have a contractionary impact on the economy and spook local businessmen. 

"Consumers aren't spending and now you want to affect the businessmen? Usually elections are a source of uncertainty and now you want to make the elections uncertain? It's a double whammy. I think we would be better off without those discussions. If we could just shelve it and archive it...because the economy is realy teetering on a recession, so we need to focus on it," he said. 

He said, however, that one silver lining in the current Cha-cha talks is the five-year extension granted by Congress to the government's Comprehensive Agrarian Reform Program. 

Salceda said the government could readily absorb 3.2 to 3.4 percent GDP deficit in the next three years without any repercussions. He said government should consider launching a "preemptive strike" on the recession before the economy sinks further. 

"We need to jolt the economy before it plunges into recession. We are already on the brink. We need a preemptive strike on the recession," he said.

Saturday, June 6, 2009

New Economic Directions

Aside from agriculture, the other sectors of Philippine society has to respond. The following new economic  directions constitute a comprehensive program for bringing about employment equity and growth:
  1. Regional Human Settlements Development
  2. Raising Farm Productivity and Income
  3. Land Reform
  4. Land Conservation
  5. Investment, Employment Generation and Income Distribution
  6. Education
  7. Reforestation
  8. Regional Development and Wealth, Population and Pollution Distribution
  9. Regulated Consumption
  10. Food Production and Nutrition
  11. Housing and Infrastructure Development
  12. Rice Problem
  13. Enclave-inclined Economy
  14. Loan-Oriented Strategy
  15. Wheels of Justice
  16. Third World and Self Reliance
  17. Foreign Debt

Performance of Philippine Agriculture 2- January to March 09

The crops subsector recorded a 0.61 percent increase in production during the first quarter of 2009. Production of palay went up by 5.13 percent while that of corn went down by 3.39 percent. Among the commodities in the subsector, the big gainers were banana, pineapple, tobacco, cassava and tomato. Crop production represented 48.95 percent of the total agricultural output. The subsector grossed P172.7 billion at current prices, up by 11.02 percent compared to last year's record.- bureau of agricultural statistics

Performance Philippine Agriculture 1- Jan to March 2009

Agriculture grew by 2.02 percent during the first three months of 2009. All the subsectors registered output gains. With the sustained increase in chicken production, the poultry subsector recorded the biggest gain during the reference period. The livestock subsector bounced back from last year's slump with the recovery of hog production. The fisheries subsector maintained its growth record while the crops subsector experienced a slowdown in production. At current prices, the sector grossed P309.3 billion or 10.43 percent more than the 2008 level.-bureau of agricultural statistics, Philippines

Role of Agriculture 3- Prof GeorgRaleighRiya

A total revolution is agriculture- in food agriculture, in import substitution agriculture, in raw material agriculture, and in export-expansion agriculture-would raise the level and momentum of activities in the other sector of the economy.  It would make for a higher income and healthier citizenry, and a more equitable income distribution.  it would result in a sounder economy as the capital goods industries that feed on agriculture and the farming sector as a source of demand, accordingly expand,  Eventually, it would bring about higher levels of social, economic and political development to the Philippines.

Philippine Employment demographics january 2009 - nso philippines website

EMPLOYED PERSONS Number (in thousands)                                                        34,258       33,693  INDUSTRY SECTOR Total                                                                         100.0        100.0 Agriculture                                                                    34.6         35.0     Agriculture, hunting and forestry                                          30.5         30.9     Fishing                                                                     4.1          4.1 Industry                                                                       14.2         14.8     Mining and quarrying                                                        0.4          0.4     Manufacturing                                                               8.3          8.8     Electricity, gas and water                                                  0.4          0.4      Construction                                                                5.0          5.2 Services                                                                       51.2         50.2     Wholesale and retail trade, repair of motor vehicles,             motorcycles and personal and household goods                       19.4         18.8     Hotels and restaurants                                                      2.9          2.9     Transport, storage and  communication                                       7.8          7.9     Financial Intermediation                                                    1.0          1.1     Real estate, renting and business activities                                3.0          2.7     Public administration and defense, compulsory social security               4.8          4.8     Education                                                                   3.4          3.2     Health and social work                                                      1.3          1.2     Other community, social and personal service activities                     2.5          2.5     Private households with employed persons                                    5.2          5.2     Extra-territorial organizations and bodies                                  0.0          0.0  OCCUPATION Total Officials of government and special interest organizations,                   100.0        100.0 corporate executives, managers, managing proprietors and supervisors                                                                13.2         11.9 Professionals                                                                   4.7          4.5 Technicians and associate professionals                                         2.7          2.6 Clerks                                                                          5.2          5.2 Service workers and shop and market sales workers                              10.5          9.8 Farmers, forestry workers and fishermen                                        17.3         18.1 Trades and related workers                                                      7.5          8.2 Plant and machine operators and assemblers                                      6.6          7.7 Laborers and unskilled workers                                                 31.9         31.6 Special occupations                                                             0.4          0.4  CLASS OF WORKER Total                                                                         100.0        100.0 Wage and Salary Workers                                                        52.3         51.7    Private household                                                            5.2          5.3    Private establishment                                                       38.7         38.2    Government/government corporation                                            8.1          7.9    With pay (family owned business)                                             0.2          0.3 Own Account                                                                    35.4         36.1    Self employed                                                               31.3         32.3    Employer                                                                     4.1          3.8 Unpaid Family Workers                                                          12.3         12.2  HOURS WORKED Total                                                                         100.0        100.0 Working: Less than 40 hours                                                             36.3         35.2 40 hours and over                                                              62.0         63.5 Did not work                                                                    1.7          1.2 Mean hours worked                                                              41.3         41.6 

Philippines January 2009 unemployment rate- carmelita ericta, nso administrator

    The number of employed persons in January 2009 was estimated at 34.3 million. This placed the employment rate at 92.3 percent, which is not significantly different from the estimate reported last year at 92.6 percent. The National Capital Region (NCR) posted the lowest employment rate at 86.0 percent. Aside from NCR, CALABARZON (89.1%), Central Luzon (90.3%), Ilocos Region (91.5%), and Central Visayas (92.2%) had employment rates lower than the national employment rate.

    Out of the estimated 58.7 million population 15 years old and over in January 2009, about 37.1 million persons were reported to be in the labor force, placing the labor force participation rate at 63.3 percent. The labor force participation rate registered last year was 63.4 percent. Among the regions, MIMAROPA registered the highest labor force participation rate at 69.4 percent and the Autonomous Region in Muslim Mindanao (ARMM) posted the lowest at 55.9 percent.

    Of the estimated 34.3 million employed persons in January 2009, more than one-half (51.2%) worked in the services sector, with those employed in wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods sub-sector comprising the largest sub-sector (19.4% of the total employed). Workers in the agriculture sector accounted for 34.6 percent of the total employed, with those engaged in the agriculture, hunting and forestry sub-sector making up the largest sub-sector (30.5% of the total employed). Only 14.2 percent of the total employed were in the industry sector, with the manufacturing sub-sector making up the largest percentage (8.3% of the total employed).

    Among the various occupation groups, laborers and unskilled workers registered the largest group at 31.9 percent of the total employed persons in January 2009. Farmers, forestry workers and fishermen were the second largest group, accounting for 17.3 percent of the total employed.

    Employed persons fall into any of these categories: wage and salary workers, own account workers and unpaid family workers. Wage and salary workers are those who work for private households, private establishments, government or government corporations and those who work with pay in own-family operated farm or business. More than half (52.3%) of the employed persons were wage and salary workers, more than one-third (35.4%) were own-account workers, and 12.3 percent were unpaid family workers. Among the wage and salary workers, those working for private establishments comprised the largest proportion (38.7% of the total employed). Government workers or those working for government corporations comprised only 8.1 percent of the total employed, while 5.2 percent were workers in private households. Meanwhile, among the own-account workers, the self-employed comprised the majority (31.3% of total employed).

    Employed persons are classified as either full-time workers or part-time workers. Full-time workers are those who work for 40 hours or more while part-time workers work for less than 40 hours. In January 2009, six in every 10 employed persons were full-time workers, with those working for 40 to 48 hours having the highest proportion (39.3% of the total employed). Part-time workers comprised 36.3 percent of the total employed.

    Employed persons who express the desire to have additional hours of work in their present job or to have additional job, or to have a new job with longer working hours are considered underemployed. The number of underemployed persons in January 2009 was estimated at 6.2 million or an underemployment rate of 18.2 percent. Around 3.8 million or 60.8 percent of the total underemployed persons were reported as visibly underemployed or working less than 40 hours during the reference week. Those working for 40 hours or more accounted for 36.1 percent. Most of the underemployed were working in the agriculture sector (47.0%) and services sector (37.9%). The underemployed in the industry sector accounted for 15.1 percent.

    The unemployment rate in January 2009 was estimated at 7.7 percent compared to 7.4 percent posted in January last year. Among the regions, the highest unemployment rate was recorded in the NCR at 14.0 percent.

    More males (64.1% of total unemployed) were unemployed than among females (35.9%). By age group, for every 10 unemployed persons, five (49.2%) were in the age group 15 - 24 years while three (30.3%) were in the age group 25 - 34.

    Across educational groups, the unemployed were comprised mostly of high school graduates (32.7%), college undergraduates at about one-fifth (22.2%), while the college graduates, 18.3 percent.


The Role of Agriculture 2

   In order to mitigate the disparity in income distribution, agriculture shall, in addition, have to provide employment opportunities to the millions of unemployed and underemployed Filipinos.

The Role of Philippine Agriculture

Apart from meeting domestic food requirements, agriculture is called upon to produce the raw material requirements of the manufacturing sector.  Food and non-food exports from agriculture are also necessary to beef up the foreign exchange earnings of the Philippines.  Foreign currency is used  to import food items which the country cannot produce adequately or cheaply, to procure raw materials and new machineries for industry and to repay foreign debt.

Filipino nutrient inadequacy

Rice is commonly consumed in the Philippines; however the contribution of other foods to the diet is not well 

defined. Our aim was to determine the nutrient intake and food group intake of Philippine nuns and compare 

their intakes to the current estimated average requirements (EAR), and food-based recommendations, respec- 

tively, and assess any differences in nutrient adequacy and energy intakes between body mass index (BMI) cate- 

gories. Body weight was assessed at baseline and at nine months; three-day weighed food intakes were recorded 

once every fortnight (n=187). At baseline, the mean (SD) age and BMI of the women was: 25.0 (4.6) years and 

21.8 (17.3) kg/m2, respectively. Over the nine months, women with an underweight (n=46; <18.5>

ceptable BMI (n=132; 18.5-25 kg/m2) lost 5.0 kg (p=0.005) and 1.5 kg (p=0.047), respectively, whereas over- 

weight women maintained their weight. Irrespective of BMI, 98% of women consumed less than the adequate 

intake for calcium, and no one met the folate EAR. The intake of all food groups (e.g., rice, vegetables, fruit, 

meat, dairy) was lower than food-based recommendations.  It is evident that the nutrient density of the Philippine 

diet is poor. In order to meet nutrient requirements, it is recommended that all women increase intake of fruits, 

vegetables, fish, meat and dairy products, to reduce risk of micro-nutrient deficiencies. - abstract from 


Nutrient adequacy and food group consumption of  Filipino novices and religious sisters 

 by Jessica A Grieger PhD1, Jere D Haas PhD2, Laura E Murray-Kolb PhD3,  Penny Kris-Etherton PhD, RD1, John L Beard PhD

 

Rice, Trade and Biotechnology in the Philippines (excerpted) by Steve Suppan

As in most South East Asian countries, rice is the basic staple food of the Philippines, where it is grown on about a third of all farmland by an estimated one million rural households. However, growing rice by no means assures one of having enough to eat. According to a 1986 report, farm children in Central Luzon, the Philippine rice bowl, had among the highest rates of malnutrition in the country. During the 1980s about 70% of all Filipinos were 40-60% deficient in protein intake and 40-80% deficient in caloric intake.2 In 1995, the Philippine National Statistics Board estimated that one out of five of all Filipinos could not afford to feed themselves. That year two out of five Philippine families fell below the official poverty line of 7,212 pesos (about U.S.$277) annual income.

Despite this perilous state of food insecurity, the government was ill-prepared for the crisis that erupted in August 1995, when the price of rice doubled throughout the country. The rice price jump consumed at least a fifth of the official minimum daily wage. To avoid food riots, the government's mobile rice caravans distributed the meager rice stocks of the National Food Administration (NFA) in Manila's poor neighborhoods

Recommended Caloric Intake for Filipinos 
(Food and Nutrition Research Institute or FNRI,2003)

POPULATION_GROUP

CALORIC_REQUIREMENTS

Male, age in years

10-12

2140

13-15

2800

16-18

2840

19-29

2490

30-49

2420

50-64

2170

65+

1890

Females, age in years

10-12

1920

13-15

2250

16-18

2050

19-29

1860

30-49

1810

50-64

1620

65+

1420


Daily eating guide for Filipinos - Dost.gov.ph


In these times where consumers are bombarded with exotic, fancy and mouth-watering food concoctions, it remains a 

challenge to attain or even maintain good health by building adequate meals through a variety of foods. Good health 

starts with eating properly.


 Certain foods are for liberal consumption and others are for moderate consumption. Attaining 

ideal health means sparingly enjoying other foods. The Food and Nutrition Research Institute (FNRI) has developed a 

food pyramid (see figure below), a simple and easy-to-follow daily eating guide for Filipinos. The food guide pyramid is a 

graphic translation of the current "Your Guide to Good Nutrition" based on the usual dietary pattern of Filipinos in 

general. The usual Filipino diet consists mainly of rice. It contributes the major part of the carbohydrates in the diet 

together with bread, corn and rootcrops such as sweet potato, cassava and "gabi". Therefore, carbohydrate foods are at 

the base of the pyramid and are for liberal consumption to meet 55 to 70% of energy needs. A viand or "ulam" is a 

combination of vegetables and fish or other animal protein sources, capped by fruits. Vegetables and fruits constitute the 

second level of the pyramid. 


Leafy greens and vitamin C rich fruits are the best sources of vitamins and minerals, plus 

dietary fiber or roughage. You are advised to eat more of these foods.The third level consists of animal protein foods like 

fish, meat, poultry, seafoods, milk and dairy products, as well as dried beans and nuts. These foods are recommended 

for moderate consumption as they supply high quality protein, vitamins and minerals. Finally, at the tip of the pyramid are 

the fats and oils that are to be taken just enough. In general, however, the Filipino diet is lacking in fat. On the average, 

Filipinos are only taking 15% of the calories from fat, which is one of the reasons why the total caloric intake is very low. 

You can improve caloric intake by consuming enough visible fats such as margarine and butter, as well as invisible fats 

contained in animal foods and some fruits and nuts.



Food Balance Sheet

In the Philippines the food balance sheet indicates inadequate supply of many food items. Due to the overall deficiency in food supply and owing to the gross disparity in income distribution, a large portion of rural and urban families suffers from a primary deficiency of calories in their diets.  The 6 months to 6 year old age group has the lowest intake of nutrients relative to requirements and the most severe and widespread clinical evidence of under-nutrition and malnutrition.  Many in this age group will suffer from permanent damage in physical and mental development.
More and more countries vie for the dwindling surplus of developed countries as their own populations increase.  Everyday, competition for food surpluses becomes keener and more desperate.  Thus the pressure on agriculture to dramatically increase food production, not only to meet the requirements of the growing populations but also to store up reserves in the event of production shortfalls, is overwhelming,  Successes in production and in population control must be sustained.  At the same time, wasteful consumption must be stopped
     Signals  all over the world of chronic food shortages are becoming alarmingly pervasive due to uncertainties in production and increased demand of growing populations.  Thousands upon thousands die daily of starvation, let alone malnutrition.  Typhoons, floods, droughts, infestations, and other vagaries of nature wreak havoc on agriculture.  Added to this grim picture are man-cause problems such as deforestation, the depletion of arable land due to population pressure and unregulated urbanization, and the notorious oil price increase with all its ramifications

Monetary Policy - Glossary and Abbreviations

Base Money (BM) – the sum of the reserve money (RM), reserve-eligible government securities, liquidity reserves and reserve deficiency of banks. 1

Consumer Price Index (CPI) – represents the average price for a given period of a standard basket of goods and services consumed by a typical Filipino family. This standard basket contains hundreds of consumption items (such as food products, clothing, water and electricity) whose price movements are monitored to determine the overall change in the CPI, or the level of inflation (See also Inflation Rate).

Demand-Pull Factors of Inflation – pressures on inflation caused by relatively higher demand compared to the available supply of goods and services. Usually, when people, business or the government receive more income, realize capital gains or obtain easier access to credits, the overall demand for goods and services may increase. This would lead to increased prices, assuming the supply of goods and services is not able to adjust quickly enough to meet the higher demand. In addition, supply shocks in the economy that, either increase the costs of raw materials or curtail supply or both could result in second-round effects that, in turn, may lead to higher demand-side price pressures. Higher oil and agricultural commodity prices, for instance, may eventually affect the price- and wage-setting behavior of economic agents, which could then lead to second-round price pressures from the demand side.

Explanation Clauses - the predefined set of acceptable circumstances under which an inflation targeting central bank may fail to achieve its inflation target. Such circumstances recognize the fact that there are limits to the effectiveness of monetary policy and that deviations from the inflation target may sometimes occur because of factors beyond the control of the central bank. Under the inflation targeting framework of the BSP, these circumstances include price pressures arising from: (a) volatility in the prices of agricultural products; (b) natural calamities or events that affect a major part of the economy; (c) volatility in the prices of oil products; (d) significant government policy changes that directly affect prices such as changes in the tax structure, incentives and subsidies.

 

Inflation Rate - the rate of change in the weighted average prices of goods and services typically purchased by consumers. The weights of the goods and services are based on their corresponding share to the Consumer Price Index (CPI) basket, i.e., the standard basket of goods and services purchased by a typical household. In the Philippines, the composition of the CPI basket is determined from the Family Income and Expenditure Survey (FIES) periodically conducted by the National Statistics Office (NSO). Inflation is typically defined as the annual percentage change in the CPI. It indicates how fast or slow the CPI increases or decreases.

  • Headline Inflation – the rate of change in the weighted average prices of all goods and services in the CPI basket.

  • Core Inflation – An alternative measure of inflation that eliminates transitory effects on the CPI, core inflation removes certain components of the CPI basket that are subject to volatile price movements, such as food and energy, and other items affected by supply side factors, the price changes from which are not within the control of monetary policy.

    Official Definition - This refers to the rate of change in the CPI which excludes the following items/ commodity groups: rice, corn, fruits and vegetables, and fuel items (gas, liquefied petroleum gas (LPG), kerosene, gasoline and diesel), which together represent 18.4 percent of the CPI basket. Core inflation data for 2001-2002 are BSP estimates while the data starting January 2003 are the official National Statistics Office (NSO) figures.

    BSP’s Alternative Measures of Core Inflation:
     
    • Net of Selected Volatile Items - This measure refers to the rate of change in the CPI which excludes the following items/ commodity groups: educational services, fruits and vegetables, personal services, rentals, recreational services, rice, and corn which together represent 37.6 percent of the CPI basket.
       
    • Trimmed Mean - represents the average inflation of the (weighted) middle 70 percent in a lowest-to-highest ranking of year-on-year inflation rates for all CPI components.
       
    • Weighted Median - represents the middle inflation (corresponding to a cumulative CPI weight of 50 percent) in a lowest-to-highest ranking of year-on-year inflation rates.
The First Step

The young poet Eumenes
complained one day to Theocritus
"I have been writing for two years now
and i have done only one idyll.
It is my only published work.
Alas, it is steep, I see it,
the stairway of Poetry is so steep;
and from the first step where now I stand,
poor me, I shall never ascend."
"These words," Theocritus said,
"are unbecoming and blasphemous,
And if you are on the first step,
you ought to be proud and pleased.
Coming as far as this is not little;
what you have achieved is great glory.
For even this first step 
is far distant from the common herd.
To set your foot upon this step
You must rightfully be a citizen
of the city of ideas.
And in that city it is hard
and rare to be naturalized.
In her market place you find Lawmakers
whom no adventure can dupe.
Coming as far as this is not little;
what you have achieved is great glory."

                       -C.P.Cavafy