The
ranking of municipalities for the year 2000 based on poverty incidence
(Source: National Statistical Coordination Board) shows that distance
to population centers counts a lot in determining the number of people
who are poor. This observation and some implications will be the subject
of today’s column.
The top three towns in this ranking
(those with the highest poverty incidence) are Matuguinao at 72.16
percent, Daram at 71.05 percent and Zumarraga at 68.60 percent. All
of these towns are in (Western) Samar.
Geographically these towns are far
from Catbalogan (the capital town) which is the market center of the
flow of goods and services in the area.
Distance means high transport costs.
Thus, products from these towns are sold at low prices in their origins
(also termed: farm gate) because the transport cost to the places
where these are sold to consumers have to be added to their selling
price. Products like. root crops and fruits have to compete with those
produced in towns near the market center (e.g. from Jiabong and Motiong).
It is clear that reducing the distance,
improving the mode of transportation, and lowering transport cost
can go a long way in increasing the sale of agricultural products
since these would reduce the cost of the goods sold. Consequently,
poverty incidence will be reduced when farmers earn more from increased
sales.
This problem is very difficult to
overcome because of the large amount of funds needed to build roads
to remote villages.
What can be done, while transport
cost is still high, is to promote productivity so more products are
harvested per unit area in such a way that the cost of production
is reduced. This strategy would include improved agricultural technology
in producing the agricultural products needed by the market center.
If this is done there is still hope
for these villages.
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