There is a
strong effort of the national government to promote exports by
involving all the regions in a “localization”
process.
This process aims to drum up local
initiatives towards achieving US$ 50 billion worth of exports this
year.
To be mobilized in this effort are the regional
offices of the Department of Trade and Industry, the Regional
Development Councils, and PHILEXPORT Chapters.
This
initiative will create markets for our exports and thereby, employment
opportunities.
Looking at our regional situation, an
essential first step in this effort is to determine what exports this
region can promote.
The common strategy is to
promote “non-traditional” exports. This refers to
exports other than copra and abaca, our
“traditional” exports. For example, coconut oil
exports in this region reached 11,299 Metric Tons in the 1st quarter of
2005.
In this sense, we can look at agribusiness
ventures such as handicrafts, fruits, and marine products (frozen
bangus). Getting the data on existing enterprises and their
capabilities (and difficulties) is essential in determining the extent
to which they can enter the export market.
The
region must move out of its dependence on traditional agricultural
products if it is to significantly reduce poverty. With a fixed land
area and an increasing population, there is a lot of pressure to
produce more from land and labor, particularly in rural areas. However,
productivity gains are difficult to achieve for a variety of reasons
(e.g. weather disturbances, inadequate capital, poor infrastructure,
etc.)
Increasing exports of traditional products is
a major solution if these are largely rural-based. If these areas are
able to participate more in our economic growth then we can lick the
poverty problem.
However, miracles in the export
market do not happen overnight, so it will take a persistent effort to
reach this target. My view is this “localization”
must be sustained to achieve its intended impact on the economic
development of regions.