A Green Formula for the Global Crisis

The Philippines is one of the developing countries that were hit hard by the current global economic crisis. The country's economy being largely dependent on dollar remittances by the overseas Filipino workers and the export industries, the constant workers' lay off by the employing countries and the lower product demands of the customer countries brought about a bunch of solutions being given by the Philippines' finest economic think tanks. Some groups offer job fairs, while some offer trainings. Some government agencies offer financial support and loans, while some offer business opportunities. What's important is that, in spite of the global economic recession, Filipinos still offer the spirit of bayanihan. Everybody extends its helping hand - from the government, non-partisan organizations from the business and labor sectors, religious sectors until down to the common resident.

Let me cite an example.

The Employers Confederation of the Philippines (ECOP) organized the 30th National Conference of Employers (NCE XXX) last April 29, 2009. Its theme "The Global Crisis: Our Response" aims on tackling different strategies these businessmen have to offer for our country. ECOP Honorary President Rene Y. Soriano said "We should transform the crisis to our advantage. We should not delude ourselves in the thought that our resilience alone will enable us to survive, endure and overcome the present global crisis." Further, the confederation believes to let the crisis be a defining opportunity for the Philippines to build up its competitiveness - at home and in the global market - by re-focusing on its natural strengths and instituting needed structural reforms to infuse greater dynamism in the economy. They also believe that once the global recovery is underway, the country should be in a leading position in Asia in the race for global competitiveness. (Excerpts from Philippine Panorama - April 26, 2009)

Ten days before the conference, there is a news published in the Manila Bulletin that global natural rubber output will fall 2.2% to 8.9 million tonnes in 2009 as Thailand, Malaysia and Indonesia produce less. According to the Association of Natural Rubber Producing Countries (ANRPC) "The 2.2 % decline in natural rubber production anticipated in 2009 is the biggest decline in the past 16 years." The ANRPC accounts for 94% of global natural rubber production. The member countries are: China, India, Indonesia, Malaysia, Papua New Guinea, Singapore, Sri Lanka, Thailand and Vietnam. The biggest factor of the rubber production decline could be blamed for Thailand. The said country is the largest natural rubber producing country accounting for about 33% of the global supply and its production dropped by 13.9% during only the first two months of the year. Other impacts made by Thailand are due to its current political turmoil and with Indonesia and Malaysia's participation, they took out 915,000 tonnes of rubber out in the market to support prices as global economic downturn cut demands for tyres. They believed that America's Motor City would decline its demand as it is still in a struggle for economic survival. Because of the cut in supply, cash rubber prices have more than halved from July's 56-year peaked around $3.20 per kilogram.

Now, while the ECOP were gathered for the NCE XXX, Rep. Bernardo F. Piñol, Jr., of the 2nd District of North Cotabato, had already pursuing his green formula for a potential Philippine economic recovery. He had filed his authored bill, Congress House Bill 05177 "AN ACT CREATING THE PHILIPPINE RUBBER AUTHORITY (PhilRA), DEFINING ITS POWERS AND FUNCTIONS AND APPROPRIATING FUNDS THEREFOR" or in short "Philippine Rubber Act Of 2008". The PhilRA, according to the bill's abstract, shall promote the development of the rubber industry from research, production, processing, marketing and trade regulation in order to make it globally competitive. Now how could this bill help the Philippine economy and environment?

Here are some facts:
The Philippines produced 404,070 metric tons of natural rubber in 2007. Due to growing global demand for rubber (in contrast to Thailand, Indonesia and Malaysia's assumption of demand decline, it is possible to reach 12.4 million metric tons of demand in 2020), the existing production area of 110,958 hectares in Mindanao (that produced the 404,070 metric tons of volume) would be increased by 21,600 hectares this year. This means that more trees will be planted. Meanwhile, North Cotabato, which produces 138,000 metric tons of rubber annually, is the Philippines' largest producer of raw and semi-processed rubber. This province would be a potential dollar revenue earner for the country. In spite of the economic recession, there is still (and will be) a big demand of rubber. China alone has a great demand for rubber due to the fast growing need of its 1.2 billion people. U.S., particularly Michigan, according to Newsweek, has kept its reputation as still the Motor City because the Big Three (Ford, General Motors and Chrysler) are leading the way to introduce next year the mass production of hybrid cars.

If properly governed, like a PhilRA, it is possible for the Philippines to achieve maximum production boost and to qualify as a member of the ANRA. Thus, making the Philippines in line with the ECOP's vision of the country's global competitiveness in the lead by re-focusing on its natural strength - in this situation, natural resources and agriculture technology. Therefore, it is but right for the common Filipino to support bills like the Philippine Rubber Act of 2008 to push thru and become a law. The lawmakers have done their initial part. The business sector have suggested and inspired. It is now the turn for the common Filipino to be the part of this necessary bayanihan for the progress of our nation.