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Tibs
Filbert Arsenal Arceño Hi noy,
for me one main factor why local harvested rice have higher prices compared to
other asian countries is land ownership. As practiced, most land planted w/
rice are being owned by absentee landowners. Since these lands are cultivated
by tenants, workers or renters—a portion of price of produces are considered
before taking into account the base price for the market. While in Vietnam
majority of rice farmers are landowners. So we end up paying absentee
landowners a part of the rice we eat even though they do not take part of the
actual production. i believe that agrarian reform is still key to development
in the countryside.
Nonoy Oplas Not
really Tibs. Local rice production simply cannot keep pace with rising
population (1.7 million a year net of death and migration). Rising rice prices
-- along with prices of tilapia, chicken, galunggong, pork, house rental,
school tuition fees, etc. -- are natural. Rice farmers themselves want higher
price for their palay too as they have rising needs for their households. What
is objectionable is using more tax money for agri cronyism like what the NFA is
doing.
On agrarian reform, it is among the main sources of agri business instability. You develop an ugly, marginal, cogonal land into a mango orchard or banana, pineapple, rambutan, etc., and when you succeed in making that land productive, DAR people will come to you to say that they will forcibly redistribute your land to your workers. You will not be happy when that happens, so many agri business ventures are postponed, or kept at low key levels.
On agrarian reform, it is among the main sources of agri business instability. You develop an ugly, marginal, cogonal land into a mango orchard or banana, pineapple, rambutan, etc., and when you succeed in making that land productive, DAR people will come to you to say that they will forcibly redistribute your land to your workers. You will not be happy when that happens, so many agri business ventures are postponed, or kept at low key levels.
Shakaru Macht Well,
Nonoy, Tibs has a point. For more information, please read Henry George. He has
an elegant book entitled Progress and Poverty. Its premises explain how poverty
exists despite economic growth. Inequality of access, possession and ownership
of natural resources - in particular land is emphasized here.
By the way, I fully agree with you not having forced land transfers, nor practicing the agri-cronyism done by the SUPER-REGULATORY BUREAUCRACIES of our government, who are given virtually divine powers who uses or benefits to what. It's not only inefficient - but also gives undue advantage to the special interests like the big farms and haciendas...
By the way, I fully agree with you not having forced land transfers, nor practicing the agri-cronyism done by the SUPER-REGULATORY BUREAUCRACIES of our government, who are given virtually divine powers who uses or benefits to what. It's not only inefficient - but also gives undue advantage to the special interests like the big farms and haciendas...
Tibs Filbert Arsenal
Arceño yet it could be an additional income for the rice farmers
if they own the land. just imagine about 15-25% of the income goes to the
absentee landowner.
noy how
about a discussion on the rise of the bombay/turko sector and its effect on our
economy especially on our SME's. one day you see a turko collecting 5/6 among
market stall owners riding a motorcycle. after 5 months he's already using a
brand new adventure or a vios. after another 5 months, he is now riding a
high-end hi-lux pick-up. how come they end up successful in their business? how
come that turkos----who cannot speak our dialect and are oftentimes held-up---
succeed?
Nonoy Oplas Some
absentee landlords extract exorbitant rents, some simply lose their lands to
land grabbers, rich and poor alike. Squatting for instance, is land grabbing.
If a land owner is seldom seen in his property, chances are that farmers won't
pay the regular rent while other people will start building houses, other
structures in the land.
About the Bombay/Turko lending, they fill up certain sectors of the credit market. In formal sectors like banks, borrowers like those in palengke must go to them, fill up certain forms, present a collateral, convince the bank officers that they have the capacity to pay back, do transactions only on weekdays and non-holidays. In the Bombay system, it's the entire opposite: the lenders go to the borrowers, do not require loan application form, do not require collateral, only word of mouth recommendation from other borrowers, do transactions 7 days a week incl holidays. The bank officers are holed up in air-con, fully guarded place, the Bombay endure heat, dust, rain, traffic, muggers and hold uppers. The admin cost of lending and collecting to each small borrower is high. I am not justifying that their 20% per month interest rate is good, it's just how the lenders would value their effort and risks endured. Which also reflects the failure of the government banking regulation system that force the formal lenders like banks to become extra careful, resulting in their inability to serve the micro but numerous borrowers.
About the Bombay/Turko lending, they fill up certain sectors of the credit market. In formal sectors like banks, borrowers like those in palengke must go to them, fill up certain forms, present a collateral, convince the bank officers that they have the capacity to pay back, do transactions only on weekdays and non-holidays. In the Bombay system, it's the entire opposite: the lenders go to the borrowers, do not require loan application form, do not require collateral, only word of mouth recommendation from other borrowers, do transactions 7 days a week incl holidays. The bank officers are holed up in air-con, fully guarded place, the Bombay endure heat, dust, rain, traffic, muggers and hold uppers. The admin cost of lending and collecting to each small borrower is high. I am not justifying that their 20% per month interest rate is good, it's just how the lenders would value their effort and risks endured. Which also reflects the failure of the government banking regulation system that force the formal lenders like banks to become extra careful, resulting in their inability to serve the micro but numerous borrowers.
