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    ADDRESSING POVERTY THROUGH GOOD GOVERNANCE

    IN THE AGRICULTURAL SECTOR

    A Research Paper

    Submitted to the Institute of Economics

    University of Asia and the Pacific

    In Partial Fulfilment

    of the Requirements for the Course

    Basic Economics (FOS101)

    ACB 501 D

    (15:00 17:00)

    Dy, Alexander John M

    18 May 2007, Friday

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    I. INTRODUCTION

    The Philippines is rich, in terms of its natural resources, specifically the

    agricultural sector. This God-given feature lets the Filipinos enjoy a rich and wide

    supply of crops, livestock and poultry, fishery, forestry, and farm products that

    are not only used for the countrys utilisation and consumption, but also as a

    source of the large percentage of our countrys revenues1, accounting for about

    an average growth rate of 14.6 percent of our GDP (Gross Domestic Product)

    and an average growth rate of 4.6 percent of our GVA (Gross Value Added) 2.

    Among the Philippines top agricultural exports include: coconut (oil and other by-

    products) topping the list, followed by fresh bananas, corn, pineapple, and

    sugarcane products3. However, since the agricultural sector is the most abundant

    part of out country, why is that it has also the most number of people living in

    poverty? According to Villegas (2005), one of the roots of Philippine poverty is

    poor governance: corruption and bureaucracy and the neglect in the agricultural

    development. These two reasons are directly related - referring to the poor

    management of the policy people whose interest have gone and continuously

    going beyond their responsibilities; thus, neglecting the agricultural industry

    (Fink, 2005). This poor management in agriculture has resulted to low levels of

    productivity that consequently accounts for the increasing rates of unemployment

    in the agricultural industry4. Unemployment triggers increasing incidences of

    poverty which constitutes the majority of the poor. This phenomenon is due to

    flawed economic policies mandated by bad governance by officials, who,

    unfortunately, pursue their personal agendas while they are in government posts.

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    Objectives of this paper:

    This study endeavours to explain how the agricultural industry can be

    maximised to reach its maximum potential capacity, if bad governance, through

    anti-corruption is reduced, thereby alleviating poverty.

    Significance of this Study

    Initial studies have been conducted to alleviate poverty through improving

    the quality of education and the maximisation of the agribusiness sector, which

    are all promising. However, these studies, although having stressed the factor of

    bad governance (i.e. poor management, graft and corruption, etc.), in one way or

    another, have missed to stress the strategies and/or solutions in fighting

    corruption in the agricultural sector - which is the Philippines major asset as a

    developing country6. Hence, this study shows an underlying message as

    supported by Villegas (2005) that high level of corruption, which is about 30% to

    50% of funds bided for government projects, act as a deterrent not only to

    economic growth but also the projects aimed at alleviating poverty. Thus, [] no

    matter how hard and persevering efforts of both public and private sectors try:

    (i.e. the investors, the not-for-profit organisations (NGOs), and other helping

    hands of the society) to alleviate poverty by means of improvements in the

    quality of education, overseas Filipino workers (OFWs) high dollar remittances,

    maximisation of the agribusiness, and so on, such efforts would just be a futile

    exercise if the problem of corruption is not rightfully addressed, especially in the

    agricultural sector7. Thus, the findings of this study hope to contribute on how the

    root cause of poverty in the agricultural sector can be addressed.

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    Scope and Limitation

    This study focuses on describing how poverty in the agricultural sector can

    be possibly alleviated through anti-corruption strategies (study on Fighting

    Corruption in Agriculture) that have been applied in other developing economies.

    Moreover, this initial study also covered some minimal information regarding

    corruption in the other sectors of society (education, taxes, etc.) In addition, only

    Rodney Finks study was cited and used in providing anti-corruption strategies in

    the agriculture. Lastly, this study is limited in alleviating poverty agricultural

    sectors which constitute the rural poor accounting for the majority of the people

    living in poverty, excluding the urban.

    ________

    1United States Library of Congress. The Philippines Agricultural Geography. Accessed 9 May

    2007. Avail. from http://countrystudies.us/philippines/60.htm

    2Villegas, B. M. Filipinos as the Ultimate Resource. The Philippine Advantage, UA&P. 2001. 83

    85

    3Department of Agriculture (D.A.). D.A. to Tap Emerging Organic Food Market to Help Boost

    Farmers Incomes. Accessed 23 April 2007. Avail. fromhttp://www.doa.gov.ph/.ihdel;Internet

    4Villegas, B. M. Filipinos as the Ultimate Resource. The Philippine Advantage, UA&P. 2001. 92

    5Villegas, B. M. Philippine Civil Society: Main Agent for Alleviating Poverty. The Philippine

    Advantage, UA&P. 2001. 105-115

    6See for further reading: Fink, R.J. Agriculture. Fighting Corruption in Developing Countries:

    Strategies and Analysis, Edited by Bertram I Spector, USA: Kumarian Press, Inc. 2005. 145-152.

    7Refer to this for further reading: Frank-Jrgen Richter and Pamela C.M. Mar, Asias New Crisis:

    Renewal through Total Ethical Management, John Wiley & Sons, Singapore. 2004.

    5

    http://www.doa.gov.ph/.ihdel;Internethttp://www.doa.gov.ph/.ihdel;Internethttp://www.doa.gov.ph/.ihdel;Internet
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    II. Review of Related Literature

    For all the magnificent testimonies to mans superior skill and intellect in

    producing todays level of cultural development, he still has to find solution to

    mass poverty (Villegas, 1998). It is very disappointing to our sensibilities to find

    the poor coexisting with the rich. That is why, there is a call to empower the poor

    for three main reasons: for a development change, for the common good, and to

    promote the dignity of the human person (Villegas, 2005). However, there are

    factors why the Philippines have increasing rates of poverty. Before we deal to

    that, we need to know what poverty means.

    According to Corbett (2005), poverty is a condition of having insufficient

    resources or income. In its most extreme form, poverty is a lack of basic human

    needs, such as adequate and nutritious food, clothing, housing, clean water, and

    health services. Another definition is that poverty is clearly multidimensional in

    nature. It encompasses not only material deprivation in terms of income or

    consumption levels, but also the deprivation arising form illiteracy, malnutrition,

    bad health, poor access to water and sanitation, vulnerability to economic shock,

    and lack of political freedom (ADB, 2003).

    Where and who are the poor?

    The poor are categorised under the following: tribal communities, upland

    farmers, landless (tenant) farmers, coastal/marginal fishermen, small farm

    cultivators, the urban poor that includes scavengers, contractual workers,

    minimum wage earners and micro0entrepreneurs (Balisacan & Pernia, 2002).

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    Causes of Poverty

    There are four roots of Philippine poverty as stated by Villegas (2005) in

    The Philippine Advantage 2nd Ed. Presentation, they are as follow: flawed

    economic policies that ignored competitive advantage of the Philippines in

    labour-intensive exports, the pro-longed emphasis on inward-looking

    industrialisation, the neglect of agricultural development, and poor governance:

    corruption and bureaucracy. Representative Rene M Velarde of the Buhay Party-

    list (2005), says [] all these causes of poverty are interrelated with bad

    governance, due to corruption and bureaucracy, representing as the head.

    Good governance

    Good [corporate] governance is the role of the board of directors to

    oversee the generally accepted set of institutional guidelines that are deemed

    necessary for the direction and performance of corporations [or any particular

    sector, i.e. government, etc.]. The principles of [good governance ensure the

    protection and equitable treatment of shareholders, enforce disclosure and

    transparency of financial performance, establish independence from

    management, stipulate accountability to shareholders and outline responsibilities

    of the board of directors (Sun, 2004). Sun (Corporate Governance, 2004), adds

    that, bad governance is just entirely the opposite of the good.

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    Effects of bad governance in the agricultural sector of the Philippines

    A study by the National Statistical Coordination Board (NCSB, 2000

    revised Poverty Incidence) has shown that 60 to 80 percent of the population live

    a hand-to-mouth existence in peasant agriculture. Sun (2004) says that this

    situation is primarily due to flawed economic policies and self-centred interests;

    thus, neglecting the management [agricultural sector] and worsening the

    condition of the poor. From the survey of the National Statistics Office and

    estimation of Villegas (2005), from the observed large difference between the

    actual growth rate per capita gross domestic product (GDP) and the forecasted

    or estimated trend line from the period 1971 to 1992 in Figure 5 (See Annex), we

    can pinpoint that misguided macroeconomic policies failed to maximise the use

    of our labour and capital resources [agricultural industry]. With the wrong and

    misguided policy mix on interest rates and the peso-dollar exchange rates,

    economic incentives resulted into a bias against the agricultural sector. The bias

    against the agricultural sector resulted into underinvestment (i.e. both public and

    private), into the agricultural sector thereby resulting into very low productivity

    rates, measured by output per worker(Villegas, 2005) (emphasis added).

    The policy bias consequently resulted into the slow and ill-progressive

    development of the Philippine agriculture. [T]his misguided policy was critical for

    Philippine development as our growth was solely dependent on the productivity

    of our labour force, and, at least 40% of the employed labour force is directly

    dependent on the agricultural sector for income or wages. The high level of

    poverty in the Philippines is attributed to the low productivity of the agricultural

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    sector due to misguided policies (emphasis added).In fact, 49% to 52% of poor

    households1 source their income from the labour-intensive agricultural sector.

    (Villegas, 2005). The economic development literature cites the vicious cycle of

    poverty: low investments lead to low productivity, then to low output and low

    income which ultimately lead to low savings. Low savings lead to low

    investments. The case of Philippine agriculture is, perhaps, a classic case of

    vicious cycle (Dy, 2000). Thus, to attribute the increase in the number of poor

    households to family size (Arenas, 2003) may be fallacious (Villegas, 2005).

    According again to Villegas (2005), there is a closely-linked relationship

    between household poverty incidence and the percentage of households with

    agriculture as major occupation. According to him, the capital-intensive fiscal

    policy bias from the 70s to 80s led to the mediocre performance of the

    agricultural sector, disenabling agricultural households to earn enough for their

    sustenance (see Figure 6 in the Annex).

    By looking at Table 3 (see Annex, where funds and tax evasion can be

    spent on), by focusing only in FOOD and AGRICULTURE, a total of

    135,431,680,000 pesos is needed when a total of 313,700,000,000 is lost

    annually through tax evasion and corruption. This huge money could go a long

    way in enhancing low levels of agricultural investments in the past that have

    resulted into its poor current performance so as to fund projects aimed at

    alleviating poverty in rural areas (agricultural sector).

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    Corruption Vulnerabilities in the Agricultural Sector

    Agriculture in developing countries employs a large percentage of the

    population and, for the most part as reiterated, a very impoverished segment.

    Farms in these countries tend to be small: in Africa, using Finks (2005) example,

    more than 90 percent of the farms are in the hands of the small landholders. In

    transitioning economies [like the Philippines] by contrast, the agricultural sector

    employs than a third of the labour force, and the average farm size is large (Fink,

    2005). According again to Fink (2005), for both groups of countries, corruption

    issues and vulnerabilities affect land title and use, credit availability, quality of

    supplies, water allocation, product standards and certification, marketing, and the

    development of agribusiness. Applied anti-corruption strategies are in table 10.2

    (refer to annex). By these organised anti-corruption strategies and vulnerabilities,

    it is very evident how malignant the worsening problem in corruption in the

    agricultural sector is due to big budget and revenues allotted in the agricultural

    industry; thus, corrupt people took advantage of it.

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    III. Conceptual Model

    Explanation of the Conceptual Model:

    P

    overty is lack of basic human needs, such as adequate and nutritious

    food, clothing, housing, clean water, and health services (Corbett, 2006). Tracing

    the majority of whom and where poverty is are the people in the agricultural

    sector, namely: the upland farmers, landless (tenant) farmers, small farm

    cultivators, coastal/marginal fishermen.

    The agricultural sector of the Philippines is rich teeming with all the export

    qualities of the resources (coconut, banana, pineapple, sugarcane, etc.) the

    Filipinos could ever ask for, so should the people living there supposedly, since

    the rich agricultural sector is their source of living. However, they remain in

    poverty. Worsening rates of poverty has long been a problem in the agricultural

    1

    Anti Corruption

    Interventions

    Decrease inPoverty in

    Rural Areas

    BadGovernance

    CausingFlawed

    EconomicPolices

    Increase inPoverty in

    RuralAreas

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    sector because of bad governance. The neglect in agricultural development

    because of people in positions or the policy makers became vulnerability to

    corruption to some factors, namely: land title and use, credit availability, quality of

    supplies, water allocation, product standards and certification, marketing, and the

    development of agribusiness. With their time and energy focused on self-serving

    interests, they promote bad governance, thereby, mismanaging resources and

    wrong allocation of funds needed for the agricultural industry to develop. Huge

    amounts of money are lost in corruption annually amounting to

    313,700,000,000Php (from tax evasion and corruption) (see table 10.3 in the

    annex), which could have been used to generate jobs for the majority of the poor

    who solely depend on the agricultural industry for their bread and butter. Thus,

    the vicious cycle of poverty starts (see annex diagram 0.1): The neglect in

    agricultural development would trigger low investments due to producing poor

    quality of goods. With low investments comes high unemployment rates due lack

    of funds to pay labour fees and other maintenances; thus, decreasing the output,

    then the income, and lastly the savings. When savings have been used up

    triggering the incapability of eating less than three times a day, poverty then

    starts to increase.

    This paper hypothesises that anti-corruption strategies is a possible

    solution to bad governance in alleviating poverty in the agricultural sector. These

    anti-corruption strategies drafted and ratified by the Presidential Anti-Graft

    Corruption Study (PAGCS, 2006) for the Department of Agriculture. They are as

    follow: 1.) the evaluation of corruption by sector by starting at the market and

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    working backwards to production (warehousing, transportation, licenses, grading,

    etc.) 2.) The exploring of the possibilities for the processor in granting credit to

    the farmer/s where commodity chains are shortened. 3.) The promotion of

    development of a land market by eliminating corruption in the registration and

    titling process. 4.) The continuous encouragement of the farmers entry into

    competition with emerging private sectors where marketing fails to be effective.

    5.) Promotion of quality controls and improvement centres. 6) The promotion of

    over sightedness of private sector groups. 7) Consistent pursuance on

    developing projects with producers groups involving stakeholders. 8) The

    avoidance of projects that allow rent seeking via hidden subsidies. Assuming

    these anti-corruption strategies will all be materialised, poverty may be alleviated

    while developing the agribusiness industry, thus, empowering the poor. This is

    because of the following: if funds, transactions, productions, transportations are

    strictly monitored by vigilant and honest people, and so the rest of anti-corruption

    strategies, the agricultural sector then would be developed due to proper

    management of people and allocation of budget, thus, there would be an

    increase in demand for employment, and others would be given loans to start

    their own small farms. If this happens, there would be an increase in investment,

    then increase in productivity due to increasing employment. Then this

    corresponds to an increase in output, then also an increase in income, increase

    in savings and consumption good for the economy; thus, alleviating poverty in

    a corruption-free environ with good governance or leadership as the atmosphere.

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    IV. Research Question:

    What are the possible anti-corruption interventions that can court BAD

    governance that is the cause of poverty in the agricultural sector of the

    Philippines? (similar answers can also be found in the second paragraph in the

    explanation of the conceptual model)

    The anti-corruption strategies drafted and ratified by the Presidential Anti-

    Graft Corruption Study (PAGCS, 2006) for the Department of Agriculture are as

    follow:

    The evaluation of corruption by sector by starting at the market and working

    backwards to production (warehousing, transportation, licenses, grading, etc.)

    By joining private and government sources to remove impediments such

    as road inspection points and replaces them with effective not-rent-seeking

    methods; build the case for the government to monitor the problem areas while

    privatizing as many the steps as possible will be a good practice of evaluation of

    corruption by sector. Shortening the commodity chain from the producer to the

    market by introducing contract arrangements between the cocoa farmers (for

    example) and the ultimate processor of the product will be some initial practices

    to see some corruption signs in the production.

    The exploring of the possibilities for the processor in granting credit to the

    farmer/s where commodity chains are shortened

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    This can be done by developing creative approaches for solving the

    problem and the supply chain simultaneously. A good monitoring of the credit

    granting is advisable.

    The promotion of development of a land market by eliminating corruption in the

    registration and titling process

    Facilitating simple and inexpensive procedures for transferring land title

    will also help enhance involvement of the private sector in land survey, titling,

    and real estate sales. Remove the legal and regulatory restraints to private

    ownership.

    The continuous encouragement of the farmers entry into competition with

    emerging private sectors where marketing fails to be effective

    This is a good indicator of corruption. Because if the morale of the farmers

    are boosted, encouraging to join the competition along with private sectors, the

    private sectors will be threatened in the business; thus, ending up giving bribes to

    the farmers not to join. Once they give bribes, they can be filed with bribery or

    other cases regarding graft and corruption.

    Promotion of quality controls and improvement centres

    By working with private and public groups to facilitate standards, grading,

    and certification, the promotion of quality controls and improvement centres will

    be hastened.

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    The promotion of over- sightedness of private sector groups

    It is good to promote over-sightedness of the private sectors so as to

    attract them to invest in farms and other agricultural business; thus, opening jobs

    for other unemployed farmers. This can be a start of a god monitoring of good

    governance in the perspective of the private sector.

    Consistent pursuance on developing projects with producers groups involving

    stakeholders

    It is advisable to involve the producers groups and the stakeholders in

    developing new projects so that they will be aware of what is happening in their

    investment, thereby also, supervising their tenants and workers.

    The avoidance of projects that allow rent seeking via hidden subsidies

    Hidden subsidies are risky. They can be sometimes illegal or may have

    some other business other than agricultural; thus, choosing to lease projects

    using them as facades.

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    V. Discussion and Analysis

    Further analysis and discussion will be presented in this section on how

    the agricultural sector can be affected by bad governance worsening poverty. It

    will also be presented here how to bring back the life in the agricultural sector if

    good governance had taken place; thus, alleviating poverty.

    Poverty in the agricultural sector is mainly caused by crooked policy

    makers who are in-charge in the industry. It will be helpful to quote Villegas

    (2005) in uprooting and eliminating corruption (see table 3 in the annex). He said

    that the high level of corruption, which is about 30% to 50% of finds, bided for

    government projects, acts as deterrent not only to economic growth but also to

    projects aimed at alleviating poverty. He also stated the estimated amount is

    120.0 billion (Office of the Ombudsman, 1997). These funds, when properly

    accounted for, could be used to either embark on projects which could improve

    the countrys food sufficiency and/or lessen the number of families living below

    the food subsistence level. Using Villegas (2005) example, these funds can be

    used as additional investments for capital formation in the agricultural sector.

    These investments are needed in order to improve the productivity of our farm

    lands. An improvement in the productivity of our farm lands can help bring down

    the cost of food (Villegas, 2005). Moreover, assuming there is good achievement

    rates of food sufficiency and food subsistence that, improvement in farm

    productivity would help decrease the countrys high food cost. As additional

    investments in the agricultural sector would indeed be a stimulus for productivity,

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    as it will allow farmers to produce more at limited hectare, or limited, fishery,

    livestock or poultry breeding stocks. When the costs of the capital invest is

    spread across a high production level, then average production cost decreases.

    It is through this mechanism that food costs would decrease allowing more

    families to afford three meals a day. Hopefully, the mechanism in increasing

    capital investments in agriculture would help decrease the number of families

    living below the subsistence level (indicator of the minimum demand for food of

    each individual). (Villegas, 2005).

    The wonderful thing about increased investments in agriculture capital

    formation is that it also allows the country to reach food sufficiency (an indicator

    of food supply). For example, with improved agricultural activity farmers can

    produce more. The country is not very far from achieving food sufficiency. In as

    fact as of 2003, the Philippines is already exporting sugar. In the next 5 years,

    the country is targeted to be rice sufficient. This means that we are currently

    reaching at least 90& self sufficiency in rice (interview with Dy, R.B., UA&P in

    Villegas, 2005).

    Capital investments in agriculture can also go a long way. According to

    Villegas (2005), an additional of P14.5 billion results into a 32% increase which is

    three times the average 9.3% compounded annual growth rate from 1991 to

    1997 capital formation (uses gross domestic capital formation in nominal terms)

    devoted to agriculture. Low levels of agricultural investments in the past have

    resulted poorly in current performance. Therefore, it is recommended that the

    poor performance of agriculture can better analysed under an agribusiness

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    system framework from input supply subsystem to production, marketing, and

    processing subsystems (i.e. via logistic services). Inefficiencies in the input

    subsystem will affect the efficiency of the production system. Using Villegas

    (2005) example, low or inefficient usage of fertilizer nutrients will reduce

    production levels which, in turn, reduce the raw materials for processing and/or

    marketing. This systems inefficiency will also affect the competitiveness or scale

    economies of a processing plant or supply chain due to or cascade of link effects.

    It is that the overall system of efficiency that counts (Dy, 2000) (Villegas, 2005).

    These restrictions are all too obvious in many agricultural sub-sectors and

    agribusiness industries such as food and beverage manufacturing, wholesale

    and retail. This sectors inefficiency also results into the inefficiency of about 40%

    of workers directly employed by the agricultural sector. An improvement in this

    subsystem via an increase in investments would definitely improve the efficiency

    of the entire agribusiness system (Villegas, 2005).

    By eradicating tax evasion and corruption, more funds will be generated

    for projects for the provision of basic needs. In table 3 (see annex), an overview

    of where such funds could have been assuming a corruption-free and tax

    evasion-free society. In addition, these possible projects stress that poverty are

    not caused by overpopulation. Lest, by poor policies, tax evasion, corruption in

    short, bad governance. Because of 20 years of heavy corruption, money outflows

    would definitely been used to reduce the incidence of extreme poverty.

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    VI. Summary

    Poverty is the state of experiencing low quality of life, deprived of both the

    material and non-material requirements that allows person to like a human being.

    This is the reason why it is important to empower the poor, chiefly because of

    three reasons, a development challenge, for the common good, and to promote

    and uplift the dignity of the human person. People in the agricultural sector

    covers majority of the poor. Although our country enjoys a rich supply of natural

    resources, due to bad governance, flawed economic policies are implemented;

    thus, neglecting the development of the agricultural industry. This is turn, triggers

    low investments high unemployment in the agricultural sector low output

    low income low savings then low investments again. This is called the vicious

    cycle of poverty. When all these happen, farmers and all other agricultural people

    will start to get poorer due to lack of money to support their needs, since the

    agriculture, which is their source of their living, is neglected due to bad

    governance, thus, increasing poverty rates.

    With the huge amount of money that is lost annually due to corruptions

    and tax evasions, such funds could have been used to address the different

    needs of education, wages, food, and especially, the development of the

    agricultural sector where the majority of the poor are situated.

    However, by eradicating tax evasion, uprooting and eliminating corruption,

    achievement of food sufficiency and food subsistence, and with recommended

    and proven anti-corruption strategies, the agricultural sector can be developed;

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    thus, increasing productivity, employment, income and output, and savings

    reducing poverty incidence.

    VII. Conclusions and Recommendations

    It is recommended that efforts to fight corruption in the agricultural sector

    should emphasise transparency, public awareness, accountability, prevention,

    and enforcement.

    In this study, it is also further rec know and understand the cause of

    poverty in the urban areas. Because the cause of poverty in both rural and urban

    share some similarities, although only a small percentage does the urban poor

    share in the total rate of poverty. Lastly, it is also important to give, if any, proven

    anti-corruption strategies to the other sectors of the society, since corruption is

    already a spreading disease or cancer of the Filipino society.

    Bad governance, as said by Villegas (1998), is very particular not on the

    leadership itself, but in the graft and corruption and bureaucracy. We have good

    and credible leaders and policy makers. The only problem is that they are all

    vulnerable, in one way or another, to be corrupted (Klitgaard, Robert).

    Corruption in the agricultural sector can be reduced since; being corrupt is

    a two-fold task. First, is the one who is corrupt who accepts the bribe, and the

    other is the one who gives the bribe. Corruption only exists if two parties agreed

    to scratch each others back. But, if only one party resists and tells it to the

    official who are not corrupt, then corruption ceases. By practising accountability

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    and honesty, corruption in the agriculture, and the country as a whole, can be

    removed.

    ANNEXES

    Table 10.2. Corruption Prevention Measures at the Khutsula Poultry CooperativeProject (Applicable to Philippines)

    Action Taken How It Was Done Outcome

    2

    Those women who had aninterest signed on.

    Members were enthusiasticand wanted to participate.

    All coop members knew theirresponsibilities and acceptedthe conditions.

    There were no secrets in theaccounting process.

    Children of illiterate parentsdid books.

    Well received by all. Goodparticipation.

    Ministry representative gavetechnical support.

    Successful project and goodorganisational and workingprocedures were followed.

    1. Donor identified players.

    2. The operating documentfor the cop was prepared.

    3. Seed money was identifiedand payback set.

    4. Accounting of centralbusiness.

    5. Individual accountability.

    6. Cooperative meetings.

    7. Government meetings.

    8. Did it work?

    Initial meetings wereconducted and theprogramme described.

    Meetings were held (under abig tree) with the 100-plus

    women who becamecooperative members.

    Donor agency presentedtheir financing potential and abusiness plan was adopted.

    A simple accounting systemwas designed and wasavailable.

    Each member maintained

    books and provided amonthly report.

    Held on a regular basis(under the same tree).

    Yes, the ministry ofagriculture was informed andhelped.

    Yes. Major effort to provide aquality product and viablemarkets open. Goodcommunication andinvolvement.

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    Diagram 0.1

    2

    Investments

    UnemploymentLow Savings

    OutputIncome

    ViciousCycle ofPoverty

    POVERTY

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    2

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    References:

    Balisacan, A. and E. M. Pernia (Mar. 2002) Probing Beneath Cross NationalAverages: Poverty, Inequality, and growth in the Philippines. ERD Working PaperSeries No. 7: ADB

    Corbett, Thomas J. "Poverty." Microsoft Encarta2006 [CD]. Redmond, WA:Microsoft Corporation, 2005.

    Department of Agriculture (D.A.). D.A. to Tap Emerging Organic Food Market toHelp Boost Farmers Incomes. Accessed 23 April 2007. Avail. fromhttp://www.doa.gov.ph/.ihdel;Internet

    Fink, R.J. (2005). Agriculture. Fighting Corruption in Developing Countries:Strategies and Analysis, Edited by Bertram I Spector, USA: Kumarian Press, Inc.

    145-152.

    Klitgaard, Robert. (___). National Anti-Corruption and Framework: National Anti-Corruption Plan for the Philippines: Development Academy of the Philippines,Manila: 6. DAP

    Integrity Development Action Plans/ 22 Doables Progress Report: CorruptionDeveloment Measures Initiated by Counterparts and their Counterpart Agencies.March June, 2006

    Mar, P.C.M. & Richter, F.J. (2004). Asias Crisis: Renewal through EthicalManagement, Singapore: John Wiley & Sons (Asia) Pte Ltd.

    Mar, P.C.M. & Richter, F.J. (2004). Why Ethics?Asias Crisis: Renewal throughEthical Management, Singapore: John Wiley & Sons (Asia) Pte Ltd. 7-9.

    Mar, P.C.M. & Richter, F.J. (2004). Corporate Governance: The Role of theBoard in Improving Managementby Chang Sun. Asias Crisis: Renewal throughEthical Management, Singapore: John Wiley & Sons (Asia) Pte Ltd. 7-9.

    Summary of Corrupt Practices on Select Executive Agencies: as reported by theagencies during the Integrity Development Action Plans Enhancement Seminar-Worshop 28-29 July, 2-3 August, and 4-5 August 2005, Mabini Hall, MalacaangComplex, Manila.

    United States Library of Congress. The Philippines Agricultural Geography.Accessed 9 May 2007. Avail. from http://countrystudies.us/philippines/60.htm

    Villegas, B. M. (2005), The Philippine Advantage 2nd Ed. Presentation

    2

    http://www.doa.gov.ph/.ihdel;Internethttp://www.doa.gov.ph/.ihdel;Internet
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    Villegas, B. M. Filipinos as the Ultimate Resource. The Philippine Advantage,UA&P. 2001. 8385

    Villegas, B. M. Filipinos as the Ultimate Resource. The Philippine Advantage,

    UA&P. 2001. 92

    Villegas, B. M. Philippine Civil Society: Main Agent for Alleviating Poverty. ThePhilippine Advantage, UA&P. 2001. 105-115

    Villegas, B. M. On Poverty. Guide to Economics for Filipinos, Sinag-TalaPublishers, Inc. 1998. 588-590

    2

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