an introduction to policies, issues, and current context of natural resource governance
NATURAL RESOURCE GOVERNANCE
IN THE PHILIPPINES
I. BACKGROUND OF RESOURCE GOVERNANCE IN THE PHILIPPINES
The Philippines consists of 7,507 islands with a land area of 300,000 square kilometers - about the size of Norway or New Zealand or Burkina Faso or Ecuador, and a population of 101 million as of 2015 (people from the course get shocked upon learning this). The country is located along the Pacific Ring of Fire so it does not come as a surprise that the country has tons of minerals.
According to the Mines and Geosciences Bureau and the Department of Energy as reported in the Philippine Extractive Industries Transparency Initiative 2016 Country Report, we are very rich in natural resources. How rich?
According to the Mines and Geosciences Bureau and the Department of Energy as reported in the Philippine Extractive Industries Transparency Initiative 2016 Country Report, we are very rich in natural resources. How rich?
II. WHAT IS GOOD GOVERNANCE IN THE RESOURCE SECTOR?
Resource governance is unique and complicated. Know more by clicking VIDEO: REASONS WHY.
Today's session by Patrick Heller (my personal favorite) is an introduction to the framework of analyses to which the whole course will revolve around particularly on what constitutes good governance. These are: (1) rules, (2) institutions, and (3) informed citizens. Going back to the Philippines' RGI Score, the highest component score is from enabling environment which looks at the broader governance context of the country. The country scores weak in value realization and revenue management. The Philippines is a classic case of what is good in paper but differs in reality. Policies are there left and right but implementation remains a challenge. |
III. WHY GOOD RESOURCE GOVERNANCE MATTERS
The Philippines is a resource-rich country and is not immune from the consequences of extracting natural resources whether positive or negative. It has been extracting minerals for decades while artisanal miners have long thrived for centuries. The country is relatively unique, however, compared to other countries considering key statistics. What do I mean by that? Click on Infographic: Economics of Extractives in the Philippines
The numbers point to this: the Philippines is not resource dependent. Hence economic impact - negative and positive, are limited. So why bother? In concerning ourselves with the issues of resource extraction, do we solely look at the economics?
- The Philippines is a resource rich country.
- Social and environmental sensitivities
- History of social conflicts and environmental degradation
- Plethora of policies
Resource extraction impacts communities, the environment, and local economies. Governance of the extractive industries has also not been good in the past. If Filipinos are to benefit from their finite resources, all stakeholders concerned need to (1) commit to strict implementation of rules, (2) strengthening of institutions, and (3) encouragement of an informed citizenry.
If government sets rules, it needs to implement them. If it does it consistently, it builds its credibility. If it keeps changes the rules in the middle of the game, other stakeholders are discouraged. Government should also strengthen its capacity. If it is serious about the industry, it needs a national policy in place.
If government sets rules, it needs to implement them. If it does it consistently, it builds its credibility. If it keeps changes the rules in the middle of the game, other stakeholders are discouraged. Government should also strengthen its capacity. If it is serious about the industry, it needs a national policy in place.
THOUGHTS OF THE DAY
A lot of familiar concepts turned out today. Throughout the day I cannot help but analyze these concepts and issues from the lens of local or subnational rather than national level.
I work mostly at the national but the context of extractives in the Philippines requires to look more extensively at the local. Issues such as revenue management, resource curse, and economic impacts are mostly relevant there. That if the country is to maximize its benefit from its natural resources, local perspective in these issues should also be at the forefront.
In some countries, extractives are significant contributor to their economies. A sudden drop of commodity prices can cause their fiscal deficits jump. This is not the case in the Philippines, at least at the national level. Let's see if my appreciation of these issues change.
I work mostly at the national but the context of extractives in the Philippines requires to look more extensively at the local. Issues such as revenue management, resource curse, and economic impacts are mostly relevant there. That if the country is to maximize its benefit from its natural resources, local perspective in these issues should also be at the forefront.
In some countries, extractives are significant contributor to their economies. A sudden drop of commodity prices can cause their fiscal deficits jump. This is not the case in the Philippines, at least at the national level. Let's see if my appreciation of these issues change.