07 Making Agrarian Reform Work - Dr. Ernesto M. Ordonez

8/9/2019 07 Making Agrarian Reform Work - Dr. Ernesto M. Ordonez

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Ernesto Ordoez, PhD3 February 2010


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Outline of the Paper

History--Why Agrarian Reform?

CARP Accomplishment: Taking Stock

--Role of Support Services Success Story

--Cost and Fund Sources

Importance of Organization Recommendation

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History

Philippines as an agricultural country

History of revolts rooted on land

44 land reform laws passed Only 2 have provision for services

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Why Agrarian Reform?

Agrarian reform important for development

Justice

Poverty

Productivity

Food Security

Support from

United Nations World Bank

Asian Development Bank


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CARP Accomplishment: Taking

StockCARP Land Acquisition and Distribution Accomplishment, 2008

Source: DAR as cited in Flores-Obanil (unpublished draft, 2008)


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CARP Accomplishment: Taking

StockComparative Income of ARB and non-ARB Households,2006

FARMERS INCOMES

YEAR ARBHOUSEHOLD

NON-ARBHOUSEHOLD

% DIFFERENCE

1990 P4,776 P3,544 34%

2000 P16,008 P11,257 42%

2006 P18,852 P15,594 21%

Source: Asia Pacific Policy Center


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CARP Accomplishment: Taking Stoc

77.5% accomplished in private agricultural landdistribution

83.7% in public land distribution andstewardship

Reservation on land distribution

Reservation on income increase

Making Agrarian Reform Work, Ernesto Ordoez PhD, Alyansa Agrikultura 7

Focused on ARCs, which cover only 40% of ARBs

Only 1 of 10 ARBs have CLOAs


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Role of Support Services

Support services key to agrarian reform

CARP Impact Assessment Report 2000, Celia

Reyes and UPLB

CARP Impact Assessment Report 2006, Asia

Pacific Policy Center

Other CARP impact studies in 2006: Cielito

Habito, GTZ and DAR ARC Strategy Successful

But less than 1/3 of ARBs have supportservices



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Success Story

Agrarian Reform Infrastructure SupportProgram (ARISP)

Infrastructure development

Institutional strengthening

Income increase

Luzon 29%

Visayas 78% Mindanao 38%



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Success Story

ARISP

Primarily a Right-based program

Reinforces the strategy of focusing scare

resources in specific communities to maximize

impact

Interventions are integrated: production, training,

marketing, and financing Puts a premium on peoples participation

Inclusive rather than exclusive

Both process and results oriented


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Cost and Fund Sources

ARISP: P68,000 per ARB

4.3 year payback, 23% annual return

Higher than P23,000 allocation in law

P19B annual addition is 1/3 of DA budget

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Fund Sources

DA

Agricultural Competitiveness Enhancement Fund

(ACEF)

Land Bank


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Importance of Organization

Organizing achieves economies of scale withagrarian reform

Anchor Approach (Octopus Analogy) Models

Clustering

Leaseback

Cooperative

Individual farmer-entrepreneur with marketing

contract

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Recommendation

Several successes, but many failures: needsrevamp Many farmers are worse off than before

ARCs cover only 40% of ARBs

Only 30% of ARBs get support services 35% ARBs have already lost their land titles

Only 1 out of 10 ARBs have individual CLOAs

Support services essential

Minimum: replace landowner support services

DA responsible for services and resources

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Recommendation

Successful Models with Economies of ScaleReplicated

Implement Alyansa Agrikultura

recommendation Fast track completion of true agrarian reform

This should be accompanied by the necessary

support services so that the farmers are better off

rather than worse off than before.

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- END -

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07 Making Agrarian Reform Work - Dr. Ernesto M. Ordonez