Skip to main content

On Biofuels

Last Monday, Philippine newspaper headlines announced the business community’s applause over last week’s ASEAN SUMMIT accord, calling for the extensive use of biofuels. A few days before that, the Philippine President, signed the “Biofuels Law” that requires all vehicles to use petroleum mixed with 5% biofuel.

The use of biofuels as an additive (extender) or fuel source is exceptionally deserving of praise. It is expected to reduce the state's dependence on imported petroleum and trim the need for dollar reserves that are used to pay for the country's importations. Furthermore, a lesser dependence on imported fuel is expected insulate the local economy from fluctuations in both: the world oil prices, and; the value of the US currency. On top of all that, biofuels are environmentally friendly. It reduces harmful emissions therefore, making the air more breathable.

However, “I have a big BUT-T here!”

For quite sometime now, Philippine agriculture has failed to produce enough food for the local economy. As a matter of fact, the country continues to import rice, sugar and other agricultural items. In addition, the country’s poverty incidence even increased in the year 2006.

With so much focus being given on bio fuels and its potential as a source of income, there is A GREAT possibility that food production will be given lesser attention. Por ejemplo, sugarcane harvests may suddenly be diverted to ethanol production, should the hacienderos find it more profitable to sell biofuel. In such an event, it is very possible that the sugarcane plantation employees, who counts among the poorest of the country's poor, will suddenly find it difficult to have access to sugar.

Should that happen, the country’s Gross Domestic Product might actually show an increase but without any real benefit to the country’s poor. With so much focus to be given to biofuel, food production may decline. And with more people in the countryside getting hungry in 2006, what will happen to the country's poverty incidence from 2007 and beyond?

In my opinion, the state should push through with the biofuels project. However, it should take steps to ensure that it will not interfere with the current efforts to boost food production. In addition, other renewable energy projects (windmill, solar, etc..) should also be given strong emphasis.

With the current trend of population growth, it will not be long before the country's agriculture will be needed solely for food production.

Comments

Popular posts from this blog

Land Reform: Land of Bondage Land of the Free

One of the most moving speeches that I've read. During grade school, this was the most often recited elocution piece in my school. Here it is, the text of Raul Manglapus' Land of Bondage, Land of the Free. Land of Bondage, Land of the Free By Raul Manglapus And yet, ladies and gentlemen, the tao is constitutionally free! No wonder, then, that the tao being a slave has acquired the habits of a slave. No wonder that after three centuries in chains, without freedom, without hope, he should lose the erect and fearless posture of a freeman, and become the bent, misshapen, indolent, vicious, pitiful thing that he is! Who dares accuse him now? Who dares rise up in judgement against this man, reduced to this subhuman level by three centuries of oppession? Ladies and gentlemen the tao does not come here tonight to be judged -- but to judge! Hear then his accusation and his sentence: I indict the Spanish encomendero for inventing taxes impossible to pay! I indict the usurer for s...

US PRESIDENTIAL CONVOYS

A columnist for a Philippine newspaper talks about the costs and massive preparations required by the US Secret Service whenever President Bush and other (US Presidents) travel outside of Washington DC. I remember watching a CNN report that showed how big a US presidential convoy is, compared to the two vehicle transport being used by Prime Minister Tony Blair of the UK.

Competitive Advantage of the Philippines II

Despite being a newcomer in the global BPO industry, the Philippines have steadily increased its foothold as a top outsourcing destination. Rest of Asia ready to grab BPO jobs from India, RP--study INQ7.net, Agence France-Presse Last updated 08:44pm (Mla time) 11/05/2006 THE PHILIPPINES and India have to boost their overall competitiveness, as Asian countries gear up to get their share of the global offshore outsourcing pie, a recent global study showed. These top two outsourcing destinations will eventually compete with China, and other Asia Pacific countries that have similarly positioned themselves as outsourcing destinations, the latest Offshore City Competitiveness Report of market research firm neoIT showed. The study noted that companies have "moved beyond India" and the Philippines into not so well-known cities in the world since companies want to create a "global footprint." China and Eastern European countries are starting ...