PHILIPPINES REPORT E 0022

NATIONAL:ENVIRONMENTAL ACTION

PLAN

Philippine Strategy forSustainable Development

Part 1A Conceptual Framework

January 1990

This report is property of Philippines

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REPUBUC OF THE PHIUPPINES

I PHILIPPINE STRATEGY FORSUSTAINABLE DEVELOPMENT

PART 1

A CONCEPTUAL FRAMEWORK

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DEPARTMENT OF ENVIRONMENT OF NATURAL RESOURCES

JANUARY 1990

( 'I *.+ 5v11 29a

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TABLE OF CONTENTS alPage

FOREWORD

1 RATIONALE: THE ECOLOGICAL IMPERAIIVES IN THE 1PHIUPPINE CONTEXT

2 THE PHIUPPINE STRATEGY FOR SUSTAINABLEDEVELOPMENT (PSSD): THE CONCEPTUAL FRAMEWORK 4

2.1 Goals and Objectives 4

2.2 Guiding Principles 5

2.3 General Strategies 6

Inrtegration of Environmental Considerationsin Decision Making 6

Proper Pricing of Natural Resources 7

Property Rights Reform 8

Establishment of an Integrated Protected 8, ~~~~~~~Areas System

Rehabilitation of Degraded Ecosystem 9

Stengthening of Residuals Managementin industry (Pollution Control) 9

Integration of Population Concems andSocial Welfare in Development Planning 10

Inducing Growth in Rural Areas 10

Promotion of Environmental Education 11

Strengthening of Citizens' Participation 12and Constituency Building

3 ASSESSMENT OF MAJOR SECTORS 13

3.1 Population 13

3.2 Environment and Natural Resources 15

Forests 15

Protected Areas and Biodiversity 17

Urban Ecosystems 18

Ii |Freshwater Ecosystems 22

Coastal Resources 23

Land and Mineral Resources 25

3.3 Agriculture 26

3.4 Industry 28

3.5 Energy 31

FOOTNOTES 34

APPENDIX

| ~~~~Figures] 1. Forest Area and Population (1930-1984)

2. Correlation of Population Densityand Forest Cover, 1980

3. Population Density and Poverty Incidenceby Region, 1980

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FOREWORD

*The Department of Evironment and Natural Resources initiated in 1987 the processofforrnuang a Philippine Strae for Sustaiable Dewdopmet (PSSD).

Through a series of consuons with the differet sectors of society, the concept tookform and substance.

j Jin a niona workshop held on June 6, 1988, a fomal resolduon urging the Presidentd dithe Congress- f the Repubic of the Philippines to adopt and implement a PhilppineI Strategy for Sustainable Development, was passed

Folowing the natonal workshop, the draft PSSD framework went tirough a senies ofregional and sectora consulatons.

On June 22, 1989 it was presented to the Cabin etAssistance System (CAS) Plnaryforcomments. CAS-CRD was then tasked to inputPSSD prinples into the formuon ofthe Sate for Sustaiable Development in the Rural Sector. A consensus was made foadopt the PSSD concept in a joint meeting of the CAS-CRD and the Cabiwet Cluster Aon Rural Development on August 3, 1989.

On November29, 1989, the Cabinet passed Cabiwet Resolution No. 37 approvng theConceptual Frmework of the PSSD subject to the following approved modifications:

1. 7he Philippine Strategy for Sustainable Development shalladdress specifically the adverse impact of growth anddevelopment such as but not limited to pollution from factoriesand pesticide build up from agriculture; and the depletion anddegradation of natural resources due mainly to misuse andover-exploitation.

2. It shall consist of a set of general strategies to resolve andreconcile the diverse ana sometimes conflicting environmental,

I demographic, economic and natural resource use issues arisingfrom the country's development efforts; and sectoral strategiesidentified after a review of the current efforts being undertakenin each of the identified sectors.

3. The general strategies shall include the integration ofenvironmental considerations in decision making, properresource pricing, property rights reform, conservation ofbiodiversity, rehabilitation of degraded ecosystem, strengtheningof residual management (pollution control), control of

I population growth and human resources development, inducinggrowth in rual areas, promotion of environmental education andstrengthening of citizens participation.

4. The conceptual framework shall be the basis for the formulat.onof strategies for each of the identified sectors, namely:

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I population, environment and natural resources, agriculture,I industry, infrastructure and energy.

The resolution also directs all the pertinent agencies to review the respectivedevelopment programs and projects for consistency with the PSSDframeworkI

T7his document contains the PSSD conceptual framework incorporating the relevantmodications as directed in Cabinet Resolution No. 37.

I Accompanying the volume are two other documents which contain the policy andinstutona trefbrm measures and action progran initiated and proposed by DENRThse documents represent the efforts undertaken by DENR to operationalize the PSSD.

Pertinent sectoral agencies are now in the process of reviewing theirpoeices, progrmsand projects or consistency with the PSSD fraork. Inal outputs haue beensubmitted to DENR and are contained in a septe document.

The same process will be undertaken at the sub-national levels for more accuratefocusing of the areal diensionslinplications of the strateg.

*The transktion of the PSSD conceptual frwnework will have reached its final cyclewih the preparation of a GovemmentAction Program

The GOP Action Prorn whie specificaily addrsing the concerns of a strtegyfor4 sustainable development will be treated as ar; itegr component of the coy'sS national deyelopfiewg ptflL

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THE PHILIPPINE STRATEGYFOR SUSTAINABLE DEVELOPMENT

PART I CONCEPT FRAMEWORK

I ~~GOAL ASSESSSUSTAINABLE OF MAJOR

t ~~DEVELOPMw SECTORSJ

GENERAL |GUIDING llSTRATEGIES PRINCIPLES

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PART 2: POLICIES/ POLICYi INSTRUMENTS

PART 3: ACTION PROGRAMS/INSTITUTIONAL REFORMS

1 RATIONALE: THE ECOLOGICAL IMPERATIVES IN THE PHIUPPINECONTEXT

One of the more revealing lessons learned during the past two decades ofenvironmentW awakening in the Philippines is that the maintenance of the earth'sdelicate balance by the mere prophylactics of pollution control and other ecologicalmitigation measures cannot ensure sustainable development There is now acompelflng need to overhaul the traditional concepts of development, with itsexclusive focus on economic principles and the political economy of naturalresources. In 1979, Rafael Salas was already attuned to this emerging world viewwhen he said:

We are temiingiobally towards a more holistic view of developmentwithisemphoasiszgnregmmiactorsopmfrzms. Pop tngrowth and developmentpatterns not only affect the demand fOr resources butasogenerateenvironmentalchanges which willhave repercussions on thefutuecanyng capacity of the earh. At the global level it is not only necessary to takeito amount the resources red to feed, clothe and shelter a growingpopulton but also the type of tedznooW which wil make this possik methoutworsening the environment It is, indeed, proper to ask at ths point how farpopulaton and development plans are consisen with the prudent use ofresourc, and do not bring about the degradadon of owenvironment"(1)

Maost Firpinos stll depend on natural resource systems for their subsistence andmust therefore confront the inexorable reality of ecological principles. Two thirdsof the Phifippine populaton live in the rural areas and depencd on agriculture.fisheries and forestry. Soil erosion, deforestation, polluton and declining fish catchai point to the fact tha the limits of the natural carryng capacity are already being1 exceeded While it is true that we can extend the limits by technological fixes suchas the green revouion and by industrialization, these responses take time and thegalloping populaton growth extinguishes whatever little gains we make. Secretary

; Fulgenciao S. Facoran vividly describes the national situation:

.^ ith a hih population growth rate the country is like a pate c z atreadmnifufiiouslyrunnis faerandfaster, each strid becoming more diffult,bu not gatting anywherm' (2)

Poputa'don Pressure

a Indeed, there are strong coincidences between population growth, resourcedepletion, environmental quality, and the incidence of poverty. These apparentlinkages are graphically portrayed in Figures 1, 2, and 3 for the Philippine situation.They are the resuk of the development efforts of the past which failed to considerboth population and environment as resource bases that must be nurtured andtaken care of as the central assets behind the development process.(3) Figure 1shows the increasing populaton and the decreasing forest cover during the lastfive decades. Since the Philippines was almost all forest in its natural state andsince the country's topography and ecology appear to be significantly controlledby the ecological dynamics of the forests, the state of the forests could.serve as aquaitave surrogate of environmental quaiity. Figure 2 reinforces the observatonof the connection between population and forest cover because it exhibits a clearcorrelation between popuation density and forest cover as they occur in the

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various regions of the Philippines. The linkage between development and forestcover is shown in Figure 3. This figure exhibits the regional variations of thecorrelabon between the incidence of poverty and remaining forest cover. There area host of other quantitative and qualitative indicators that could testify to theominous decline of environmental quality such as the ravaging of fishing groundsand coral reefs, the pollution of rivers, lakes, and bays, and the clearly visible airpollution in Metro Manila.(4)

Economic Costs

It Is possible to get a rough estimate of the economic cost of deforestation. Theconversion of one hectare of old growth forest amounts to a loss of about 100cubic meters of commercial quality logs, not to mention its potental for sustainedyield at a growth rate of about 2.4 cubic meters per hectare per year. If these arecomputed at the current price of about P2,900 per cubic meter, and assuming thatprofit amounts to 50% of gross revenue, this will represent a loss in net profit ofaround P145,000 per hectare.

Estimates show that some 1 19,000 hectares of natural forest vegetation weredestroyed in 1988. amounting to a gross loss of around P34.5 billion per year, or aloss in net profit of about P17.3 billion. Even if these areas have been loggedaccording to recommended practices, loss of future revenues would still amountto P5.7 biflion or a total of US$12.98 million net per year.

4- -Deforestation is responsible for erosion of all uplands. Here we also have anindication of the monetary cost of the loss. In the case of Magat watershed, annualerosion rate is pegged at 219 tons per hectare for open grassland and 71 tons perhectare for other land uses. Using the above erosion rates as basis, actualeconomic costs of soD nutrient loss amount to P1,068 to P3,392 per hr tare peryear. For the Pantabangan watershed the tota value of soil nutrient loss wasesfimated at P2,541 per hectare if erosion takes place from the first 5 cm. layer ofthe top soil.(5)

Thus, the unecological use of forests entails huge economic losses.

j Development policies, without the guidance of ecological principles, could goastray. This was clearly demonstrated by the past government's policy ofconverting mangrove swamps into fishponds in the hope of accelerafing foodproduction. The ultmate impact of this policy was the decimation of virginI mangrove swamps from 500,000 hectares in the 1950's to only about 38,000hectares of original vegetation in 1985. Studies now show that we have lost morein terms of sustainable fisheries production with the loss of spawning grounds, richnutrient pools and the protective values provided by mangrove ecosystems.

According to estimates, one hectare of a fully developed mangrove plantationcould produce an annual yield of 100 kgs. of finfish, 25 kgs. of shrimp, 15 kgs. ofcrabmeaE, 200 kgs. of mollusks, and 40 kgs. of sea cucumber in a direct harvest.(6)

The economic cost of air pollution is not yet well studied in the Philippine contextExperience from the US situation, however, shows that air pollution is costly.According to the World Resources Institute in the U.S.:

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- Agricultral losses for 1987 due to increase of ozone concentration| ~~~~~amounted to US$5.2 billion;

- On the other hand, the benefit of attaining standards for particulates|and sufur dioxide is estmated to be at US$500 million per year.

f ~~Costs to the Ecosystem

Concern, however, should not focus mainly on economic costs. Anunquantifiabte costof forest destruction is the loss of species and genetic diversity.Even estmates forthis tragic loss does not exist for the Philippines. Dr. SeymourSohmer of the Bishop Museum of Honolulu, who has been studying Philippine florafor many years now, asserts that we have already lost about 40% of our endemicflora Philippine losses contribute to the global loss of biological diversity estimatedat about 100 species per year. By the.year 2000, it is predicted that about a mirlionspecies would have been lost forever. In general, a decrease in the diversity of floraand fauna makes ecosystems less stable.

Environmental degradation has other serious implications. According toGanapin, "for a developing country like the Philippines, the impacts ofenvironmental degradation are much more serious than simply erosion or polluton.In many cases, the social and political impacts are of greater dimension and aremore direct. The poor become poorer. And as larger pupulabons are pushed intoa desperate struggle for survival, they wrought larger damage to the environmentand the cycle continues. There comes a time, however, when this vicious cycle

X . reaches a limit and the fragile fabric of a stressed society starts to unravel. The gunsubsttutes for the plow. The fire that used to burn forests becomes fire that willconsume society ." (7)

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2 THE PHIUPPINE STRATEGY FOR SUSTAINABLE DEVELOPMENT (PSSD):THE CONCEPTUAL FRAMEWORK

The only rational way of planning the country's national progress is throughsustainable development: meeting the needs of citizens of today without limiting theoptions of future generations to fulfill their needs. It Is development withoutdestruction; it is the achievement of material progress without compromising thelfe-support functions of natural systems; it is the pursuit of higher levels of qualityof life while preserving or even enhancing environmental quality. It is the only truedevelopment. It

2.1 GOAL AND OBJECTIVES

Goal

Sustainable development stresses the need to view environmental protectionand economic growth as mutually compatible. This implies that growth objectivesshould be compatible not only to the needs of society but also to the naturaldynamics and carrying capacities of ecosystems.

The goal of the PSSD is to achieve economic growth with adequate protection ofthe country's biological resources and its diversity, vital ecosystem functions, andover-all environmental quality.

j ~~~~ObjeUves

The following objectives have been identified toward the attainment of the PSSDgoaL

1. To ensure the sustainable utilization of the country's naturalresources such as forests, croplands, marine, and freshwaterecosystems.

2. To promote social and intergenerational equity in theutilization of the country's natural resources.

3. To develop management programs to preserve the country'sheritage of biological diversity.

4. To promote the technologies of sustainable lowlandagriculture and upland agroforestry through theencouragement of research and development (R and D) anddemonstration projects.

5. To achieve and maintain an acceptable quality of air andwater.

6. To promote and encourage an exploration program foreconomically important minerals.

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7. To promote R and D in environmentally-sound andeconomically-efficient processing of the country's mineraland energy resources.

8. To enhance the foundation for scientific decision-makingthrough the promotion and support of education andresearch in ecosystems.

9. To promote and support the integration of populationconcern including migration variables and family welfareconsiderations in development programs with specialemphasis in ecologically critical areas.

1O.To expand sustantially the family planning programs andresponsible parenthood program.

22 GUIDING PRINCIPLES

Sustainable development, as defined by the World Commission on Environmentand Development iWCED), is meeting the needs and aspirations of the peoplewihout compromising the ability ot future generations to meet theirs". It is difficult,however, to make use of a genera definition to guide actions with regard toparticular development situations. This general definition needs to be furtherexplained in operational terms.

Operationally, sustainable development can be further explained through thefollowing principles, which form the guiding framework for actions under the PSSD:

- a systems-onented and Integrated approach In the anaiysis and solution ofdevelopmentproblems;

- a concem for meeting the needs of future generations, otherwise terrned asinter-generational equity:

- a concem for equity of people's access to natural resources:

- a concem not to exceed the canying capacity of ecosystems;

-living on the interest rather than on the capital or stock of natural resources;

-mnaintenance or strengthening of vital ecosystem functons in everydevelopmentactivity;

- a concem for resource use efficiency;

- promotion of research on substitutes, recycling, exploration,etc. from revenuesderived from the utilization of non-renewable resources;

-a recogniton that poverty is both a cause and consequence of environmentaldegracfation; and

,r$l @~ - promotion of citizens' participation and decentralization in implementingprograms.

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2.3 GENERAL STRATEGIES

The PSSD has for its core a number of implementing strategies. This is aimed atresohing and reconciling the diverse and soietimes conflicfing environmental,demo~hIc, economic and natural resource use issues arising from the country'sdevepment efforts.

Integration of Environmental Considerations In Decision-Making

The underlying theme in sustainable development is that economic andenvironmental concerns must be addressed simultaneously in theplanning/decision-making process. This is a deliberate shift from the conventionalpractice characterized as predominantly single sector planning exercises. Theimportance of pursuing a mufflisectoral approach in poDicy and plan fornulation cannever be overstated. For instance, policies that conserve the quality of agriculturalland and protect forests improve the long-term prospects for agriculturaldevelopment Efficiency in the utilization of energy and raw materials in industrialpmcesses reduces wastes and can also reduce costs.

Merging environmental and economic considerations in decision- makingi involves a fundamental realignment of the overall objecies of development4 planning in the light of a new awareness of the envirounental implications of

development activies. This means that the process of development should beviewed from the outset as a multipurpose undertaking that includes an explicit and

I defined concem for the quality of the environment. Within such a planning context,it Is especally important that analysis and evaluation stress the key role that

3 environmental quaflity can play in sustainable development

To effectively implement this desired shit in economic decision-making, therefinement of analytical tools and methodologies is crical. For instance, toaccommodate the social and environmental consequences of the misuse of thenation's natura capital in ecDnomic calculations, such tools as Nahtral ResourceAccounting, Environmental Impact Assessment (EIA) and Land Use Planning mustI be properly installed and strengthened..

Natural resource accounting emphasizes the productive role of natral resourcesin the economic systemr Natural resource assets must be valued in the samemanner as man-made assets. Inasmuch as natural resources are principally themain assets upon which we depend for revenue, employment and foreignexchange, a system of national accounting and analysis must be instituted thatrecognizes them as such.

Uke economic analysis and engineering feasibilry studies, EIA is a managementI : ~~~~tool for officials, managers and'aftected ciffzens who must make important

;decisions abou major development projects. In recent years. major development;undertkings have encountered serious difficultes becauso insuffidernt accounthas been taken of their impacts on the surrounding environment. Some projectshave been found to be unsustainable because they caused resource depletion.Others have been abandoned because of public opposition, financialencumbrance by unforeseen costs, very high liability for damages to naturalresources, and the disastrous accidents they have caused.

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Given this experience, it is ciearly very risky to approve and finance a major!project without first takng into account its environmental consequences, as well asthe siting and project design considerabons that will minimize, or better still,altogether remove adverse impacts.

At the local/regional level, Land Use Planning is also seen as a basic tool forincorporating environmental considerations in the decision-making process.Optional land-use allocations can be determined using an environmental qualityperspective, which take into account ecological principles and the impact of humanacttvities on natural systems as inputs, along with other economic and socialdemands.

Proper Pricing of Natural Resources

The most widespread opportunity for improving resource management is to treatnatural resources as truly scarce, not as if they were free. This is done by properpricing based on the cost of replenishment, increasing their supply and providingappropriate substitutes. In essence, this strategy aims to correct the grossunderpricing of natural resources (e.g., logs, minerals) that is substantiallyresponsible for the wasteful extraction and utilization of these resources.

The question of who pays for damages to the environment should be part ofmore wide-ranging policy reforms regarding the pricing of the country's naturalresources. It has become obvious that natural resources such as timber andminerals are grossly underpriced. Underpriced in the sense that those given theright to exploit these resources for profit pay very litte of the significant damagecosts to societ. They also share with the rest of socity very little of the Orents"they geot oof exploiting these resources Crent represents the surplus after allcost and reasonable profits are paid). The rents from the exploitation of natralresources are huge, and they have gone to only a few. The World ResourcesInstitute, for example, has estimated that for the Philippines, only 20% of the morethan P20 bilion rent from logs harvested from 1979 and 1982 went to thePhilippine govemment To attain sustainability, the govemment should recover thefull economic rent for natural and environmental resources.

A component of the needed price reform strategy involves charging a price onthose envirornmental resources (e.g., air, water) which have until now beenregarded as free resources and which have thus been polluted freely and

* indiscriminately. At present, polluters continue to view the environment as a meresink, for which they pay nothing. This concept should be changed. A sociai priceshould be assigned to these otherwise free resources. The polluter must thenlearn to internalize this price within his profit-oriented decision-making process. Ifthere is pollution, the polluter must pay for the consequent social costs. The choicecan be made between cuting down on pollution by investing in poDlution controldevices or cutting down directly on pollutive aspects of an actvity. In effect, thepolluter regulates his own behaviour within the context of an environmental picingsystem. The system is based on the so- called "polluter paysg principle.

1o In generai, price reform provides a way to intemalize environmental costs as partof decisions on how resources are used. The advantage of proper resourcepricing in resource management is that, once in place, it provides a self-regulating

i system. Resource users still make choices in a way that maximizes real resourcecosts.

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By establishing a fair valuation of natural resources and charging the usersappropriately, an automatic economic restraint on the way environment and naturalresources are used is created.

Relevant to the successful implementation of such pricing mechanisms is thedevelopment of capabilities in environmental economics and the conduct ofmeasures in this field. In addition, there is a need to set up support funds andincentives for those willing to shift from pollutive or destructive technologies tothose that are environmentally protective.

Property Rights Reform

Natural resources have a tendency to be exploited as free resources byIndrividuals even though they are in effect scarce resources. This is the case foropen access" resources in which there is a strong tendency for misuse and

depletion. It is difficult for an individual producer such as a shifting cultivator or anartesanal fisherman to conserve an open access resource and unilaterally regulatehis exploitative efforts, since from his perception anything that he conserves willonly be taken up by others. This is the famous 'tragedy of the commons."

Self-regulation in the exploitation of natural resources can be achieved byassigning secure access rights perhaps even private ownership over theseresources to responsible individuals and communities. Through secure accessrights, the individual or community establishes a lasting tie with the resource and along- term stake in its protection for sustained productivty.

The need therefore is to develop creative and secure instruments such as foreststewardship contracts, small-holder timber concessions, artificial reef licenses,community forests, community fishing grounds and mining cooperatives to ensure' equitable access and tenurial security n the utilization of natural resources. It hasto be noted, however, that an essential condition for transfemng control overresources or cistributing resource rights is for recipient individuals or comununitiesto demonstrate the capacity for the sustainable development of such resources.

Estabilshment of An Integrated Protected Areas System

The importance of the preservation of the variety of genes, species, andecosystems cannot be overemphasized. The development of man and hiscivilization has always been based on the biological weafth of nature. Agriculturalcrops and livestock, virtually most of the country's daily food intake, were derivedfrom wild species. From wild species have also come many of the medicinesavailable today. In biodiversity resides the new genetic pool of information neededto adapt to various environments. It can thus well provide the answers andincreased capacities for man to deal with future questions of survival anddevelopment especially in the face of the rapidly changing local and globalenvironments. Unfortunately, this is not generally recognized.

Ecosystems are composed of species, and species are composed of genes andall these are linked to one another. The stability of ecosystems ultimately dependon the diversity of genes and species.

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Protected areas should therefore be established for the conservation of wildlifeand unique ecosystems, with the end in view of conserving genetic resources forscientific, educational, cultural and historical values. The establishment ofprotected areas should be preceded by a reassessment of the status of parks andequivalent reserves. This will serve as the basis for developing rehabilitativestrategies for degraded parks and at the same time identify new areas whereconservation of genefic resources and preservation of biological diversity can bepursued.

Rehabilitation of Degraded Ecosystems

. Rehabilitation of degraded ecosystems is a significant strategy given the massivedestruction of ecosystems that has already occurred. Under such conditions,nature's regenerative capacity is not enough. Deliberate rehabilitative efforts areneeded.

Rehabilitation must keep pace with the continuous degradation caused by theincreasing demands for both raw materials and products that come from naturalresources. As the pressures on these resources continue to intensify so must thecountry's commitment and capability for rehabilitative action. A concerted action,therefore, of a magnitude never tried before in the reforestation of denudedwatersheds, mangrove re-plantation, dean-up and control of pollution and revivalof biologically dead rivers, and seagrass transplantation should be vigorouslyundertaken.

Natural ecosystems, however, will continue to be threatened urness a moreComprehensive program on ecosystems rehabilitation is undertaken.Rehabilitation, therefore, has to be Unked to ecosystems protection programs andto policy reforms and instutional strengthening that decisively deal with the socio-economic roots of ecosystem degradation.

Strengthening of Residuals Management in lndustry(Pollution Control)

The most commonly applied instrument for pollution control is "end-of-pipemcontrol systems that treat or attempt to limit waste products with standards andlimits on the permissible emissions rate. Residuals management, however, looksat the pollution problem within a more comprehensive framework of materialspolicy which. includes resource recovery, recycling, and appropriate by productdesign that save on materials and energy.

A move should be made towards adopting recent innovations in industrialprocess designs which are aimed at reducing waste streams, especially asincreasing restrictions on disposal becomes more necessary. Reformulatingproducts, developing saleable by-products from residuals, and redesigning orcombining processes are some innovations that have often been found to reducewastes and costs as well. A U.S. plant, for example, was able to reduce wastes by66 percent by cutting on water use by 32 percent. The use of biogas digesters torecover methane from piggery or distillery wastes is another example of poilutionreduction through technological innovations.

In the Philippines, resource recovery should prove highly economical becausematerials and energy costs are quite high relative to labor costs. Paper, glass,

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On EnvironmentSl Issues

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ftn h ng on=ol a9cav by manhaUlng te{ ts Our comndW and ampUy(n these wedh psonsS comnSSuneL we nmAght /g,

-ENVItONMENT" ANIDNAUA REXSOUCES

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metals, plastics, oils and other materials could be recovered from waste streamsand recycled by networks of workers.

In addition to and in support of technological innovations is the strengthening ofenforcement of appropriate pollution control laws. Other policy instruments suchas the use of economic incentives to encourage pollutive firms to install pollutioncontrol facilities and collecfive actions such as the installation of central collectionand treatment facilities for wastewaters are needed to supplement currentenforcement efforts. These are especially important given,the relatively smallcapital base of enterprises involved. More concdiatory forms of pollution regulationinvolving persuasion and information dissemination aimed at altering polluter aswell as end-consumer behavior should also be implemented to cause positivechange in business attitudes towards the environment.

Integration of Population Concerns and Social Welfare In DevelopmentPlanning

Population is the critical factor in any effort at sustainable development.Population and the values espoused determine the speed at which productivity canbe increased or conversely the pressures on land and natural resources broughtto bear by the process of development. For a developing country like thePhilippines, it is important that the population factor-in all its dimensions-is turnedinto a real asset for building a strong industrial base, for multiplying productiveforms of livelihood, and for preserving and improving fragile ecosystems and theoverall natural resource environment

The country's population program must not be limited to controlling numbers butmust include improvements in health, education and values formation. It must beimplemented as part of a comprehensive socio-economic program at the regionaland community levels. The population program must be based on methods thatare consistent with the cultural and religious norms of the population. Within ourtraditional rural society the benefits of additional labor will always outweigh thebenefits of reducing family size. It is for this reason that our population policiesmust recognize the limiations of promobing fertility control in isolation from otherincentives. To overcome social prejudices against birth control and suspicions ofthe motivations behind the national popdation control program, emphasis shouldnow be placed on the benefits to each chifd and to the family of spacing births.

Managing population distribution and mobility should also be considered to limitthe rapid and often uncontrolled population growth in urban areas. Promotion ofprograms and policies that lead to balanced regional development are important.The development potential of all regions should be assessed and programrs toincrease opportunities for livelihood should be implemented to encouragemigration towards less densely populated and less environmentally sensitive areas.

Inducing Growth In the Rural Areas

Economic recovery and long-term stability depend on increasing incomes andemploymernt in the rural areas, where a majority of our people reside. It should beagain noted that the rural poor are linked very closely to natural resources. Theiractions have a direct impact on natural resources. Conversely, any change in theactual and potential productvity of these resources have serious repercussions ontheir present and future welfare, even on their very survival. The sheer number of

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rural poor already In place right on or beside fragile ecosystems make them aformidable farce either for envrronmental destruction or protection.

Attention must therefore be given to rural development, as it has already beenestablished that poverty forces the rural poor to be destroyers rather than caringstewards of the very resources that can liberate them from poverty. The economic,social and political potentials of the countryside must be hamessed to alleviatepoverty and uplift the conditons of the rural poor. A rural development strategywhich is characterized by the following elements must therefore be effected:

- Empowerment of the rural poor through greater participationi in policy-making processes and project implementation;

- Accelerated implementation of land reform to achieve equityin the distribution of wealth and boost producer incentives;

- Grant of equitable access for the rural poor to naturalresource use and benefits;

- Removal of economic policy and public investment biasesagainst the rural sector;

- Provision of infrastructure and support services to increaserural productivity and expand markets;

- Establishment and reinforcement of *growth centerso to serveas base for industrial and commercial activities that canprovide alternative livelihood and increased economicopportunities for the rural poor;

- Strengthening of social services such as education, healthand nutrition.

Promotion of Environmental Education

Environrnental educabon as concieved in the PSSD has two major objectives.The first is to enable citizens to understand and appreciate the complex nature ofthe environment, as well as the role played by a properly managed environment ineconomic development and to develop social values that are strongly supportiveof environmental protection and which will create the commitment and political willto deal with difficuit issues. Only a well-informed and motivated cifizenry cotudprovide the mass base necessary for the continued protection of the envirorunent.

Decisions are ultimately a political responsibility, but the likelihood of the bestchoices being made is greatly enhanced when there is widespread knowledge andI understanding of all aspects of the issues at hand. Tnis couic be acnievedb integrating environmental concepts in the elementary and secondary schools.This will equip people with the basic capability to make up their own minds in aninformed way and do something about their decisions.

The second objectve is to develop the local knowledge base about the localerwironment and natural resources through the development and promotion of

4.1

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tertiary and graduate courses in ecology, environmental science, resourcemanagement and resource economics. Research and development in these areasshould be promoted.

Strengthening of Citizens' Particpaton and Constituency Building

Lessons from both failures and successes in environmental and developmentaleforts have shown that citizens' participation is an important decisive factor.Absence or lack of it has caused failures. Its active presence has resulted not onlyin efforts meeting immediate targets but also in the assured sustainability of positivetrends that have been initiated.

People have the inherent capacity to improve themselves and their community.Problems confrontng them can be solved through their own efforts. In caseswhere the poverty of their situation and the difficulties they face are too serious forthem to deal with, initial assistance from govemment and non-govemmentinstitutions may be needed. Their active participation in planning andimplementaion, however, is a must so that they will not be forever dependent onexemal support.

i In promoting the active participation of the citizenry for sustainable development,non-govemment organizaions (NGOs) can be the central vehicle in mobilizingpeople to participate. NGOs have certain advantages. They have less bureaucraticred tape and can thus move fast They have already established strong direct linkswth the grassroots. Their members are the very citizens whose participation isneeded and who see their NGO membership as a citen's responsibility. They arethus imbued with the needed commitnent and drive to deal withc difficult sustainable

-.. development issues. A strategy in this regard is to develop a network among NGOsas wel as NGOs and govemmental organizations which will work on communityorganizing, public information campaigns, research/situation assessment,environmental surveillance and -nonitoring, science and appropriatetechnologyand the like.

. :11

12

3 ASSESSMENT OF MAJOR SECTORS

The cooceptual framework shall be the basis for the formulation of strategies foreach of the identified maJor sectors, namely, Population, Environment and NaturalResources, Agricultue, Industry, Infatructure and Energy. A review of eachsector, except for the Infrastructure sector, has been undertaken as Part of theformulation process. This section presents the preliminary results of this review,including current efforts, key issues and key measures needed.

3.1 POPULATION

ftiationr: The Philippine population in 1989 was estimated at 60.1 million andis expected to rise by 2.3 percent to 61.5 million in 1990. Wifthregards to populationdstribution, Southem Tagalog, Metropolitan Manila, and Central huon are thecountrys highly concentrated regions, wih a population of 8.1 million, 7.9 million,and 6.1 millon, respectively. The most common type of intemal migration in thePhilippines is the flow of people from the rural areas into the urban areas. For theperiod 1975-1980, Metropolitan Manila received a total of 378,878 rural migrantsfollowed by Southem Tagalog with 183,077 and Central Luzon with 101,844.*

The present population situation has already strained the government'scapability to provide basic services such as education, healfth care and food for thenaton. The critical issues to. be discussed should therefore address the balancebetween population size and available resources; and the rate of population growthIn relation to the capacity of the economy to provide the basic needs of thepopulaton.

Kevncem

- Continued rapid population growth which usually leads to adecline in the quality of life for the majority

- Encroachment of population into marginal ecosystems,including population settlements in ecologically-sensitiveuplands

- Continued influx of rural migrants into densely populatedr urban areas, which taxes the capacity of these areas to

sustain concentrated populations resulting in congestion,urban blight, slums, and environmental degradation

t

Current Efforts. The direction for the population program in the country wasdrawn up in a population policy statement issued in April, 1987. It specificallyaddressess the following demographic concerns: fertility reduction, familyformation, status of women, matemal and child health, child surviva!, morbidity andmortality, population distribution and urbanization, intemal and international

; migration, and population structure. The policy also stresses the importance of aJ&

13

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consistent population growth rate in relaton to existing resources recognizing thestrain imposed by the population on scarce resources.

Family Planning services continue to be provided by 3,545 family planningclinics/service outlets of govemment and non-government organizationsnatiornide. The remote areas are served by 39 Comprehensive Itinerant Teams.Support sytems for these activities include 1,753 full-time outreach workers(FTOW's) and 50,000 Barangay Supply Point Officers (BSPO's).

The Population Education Progra continues to work for the integration ofpopulation education into the scIool curriculum at all educational levels. TheAdolescent Fertility Program through its twetve adolescent centers also continuesto provide information and counselling services.

In 1987, 87 medical personnel were trained on basic family planning and voluntarysurgical sterilization. Manpower development and continuing educaton, whichwere mosty foreign-funded, were also conducted.

The Population Information Management and Dissemination Program alsoconducted widespread dissemination activities on the new population policy.These include the conduct of symposia and conferences, the release of two issuesof the Population Bulletin and the publication of a weekly newsletter.

The Population Policy Analysis and Coordination Unit of POPCOM is alsocontinuing its task of colecting, processing and analyzng various sources ofinformation for dissemination.

A National Consultation among 107 Natural Family Planning NGO's wasconvened to formulate workable schemes with NGO's and with the church-based.Famiy Planning - Maternal and Child Health (FP- MCH) network. The *Ugnayan sajKababaiha? Project was also launched as a vehicle to promote women's welfareiand strengthen women's participation in planning and decision-making.

Support activities to the population program are also implemented by the1Departent of Social Welfare and Development. These include daycare andcsupplemental feeding program, family planning motivation, population awareness,and sex education. The Department of Health also promotes/implements thefollowing programs: primary heath care development, control of communicableand non-communicable diseases, health promotion and specific protection, foodassistance, selective home food production, nutrition informaton and educationcampaign, and the malnutriton prevention project.

Key Measures Needed

I ' ;'l - Vigorous population program based on methods that areconsistent with the cultural and religious norms of thepopulation

- Broader scope of population programs to includeimprovement of the quality of human resources in terms ofproductivity, environmental consciousness. ability to managecommunal natural resources, and social responsibility

14

- Intensification of rural development with em hasis onsustainable livelihood programs to reduce the push factor inrural-urban migration

3.2 ENVIRONMENT AND NATURAL RESOURCES

Ecosystems are life support systems. They are capable of renewal, even in theface of major man-made disturbances - but only up to a certain point. Beyond this

J limited threshold and carrying capacity, ecosystem functions are impaired; hencedeterioration occurs. The challenge for resource management is to treat theecosystem as the unit most suitable for analysis, so that the maintenance of vitalrife support functions may be ensured.

This sector is currentlv facing a lot of problems, among them: resourcedepletion, environmental degradation due to pollution, tenurial problems inthe public domain, and inequitable distribution and allocation of lands and naturalresources, among others.

Forests

;Siuationr. The remaining forested areas of the Philippines (without brushlands)is 6.5 million hectares, which is 21% of the country's total area of 30 millionI hectares, and 40% of the legally classified forest lands of 16 million hectares. Thecountry is losing 119,000 hectares each year or about 14 hectares per hour due toillegal logging, forest fires and slash and bum agricufture.

i lleyt Concems

- Degradation of forest lands due to logging as well as-- encroachment of slash-and-burn cultivators into logged-over

areas;

- Settlement of ecologically-sensitive forest lands due topopulation pressure and lack of opportunities in the lowlands

- Poor enforcement of forest protection laws

- Lack of tenurial security, infrastructure support, and socialservices for upland dwellers which result in disincentives foradopting resource conservation measures

| Current Efforts. The Department of Environment and Natural Resources (DENR)launched the National Forestation Program (NFP) in 1986 declaring as a policy theperpetuation of forest resources for the benefit of present and future generationsof Flipinos.,

The NFP restates the key objectives of the govemment's basic policy inforestation as: adequate supply of industrial timber and fuelwood; provision of*1 livelihood for upland communities; and, restoration and maintenance of a stable,functionai and wholesome environment. The main focus of the 14-year forestationprogram is the development of production forest plantations for supplies of timberj and fuelwood, while at the same time rehabilitating denuded watershed areas.

..

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With the assistance of program loans from the Asian Development Bank (ADB)and the Overseas Economic Cooperation Fund (OECF) of Japan, the DENR Istargetting to reforest through various modes and approaches about 300,000hectares by 1992.

The main thrust of the policy framework of the NFP is to position the privatesector communities and families as the vanguard of the country's reforestationefforts. Thus, apart from encouraging the privatr sector to invest in commercialforest plantations at its own risk, the policy also directs the employment of theprivat sector (to include, apart from entrepreneurs and enterprises in forestation,the NGOs, individual farmers and farmers' associations) In executinggovernment-funded forestation projects on contract terms. The govemmentconsiders that contract forestation would enable it to make use of the experienceand commercial motivations of the private sector towards the expeditious andefficlent accomplishment of NFP targets, and that the terms of the contracts wouldensure that the planted areas paid for will actually grow into forests.

Projects under the direct administration of the DENR are: Timber StandImprovement in second-growth forests, and protection and maintenance ofexisting forests. Private sector participation will be in contract reforestation;watershed rehabiitation; assisted natural regeneration; bamboo, rattan andfmangrove plantations; industrial tree plantations, and integrated social forestryacivities to rehabilitats forest migrants.

Contracts to reforest or manage specific activities in reforestation areas are opento qualified corporations, non-government organizations, communities, tribesand/or families. DENR pays these private entities and individuals for thereforestation activities they undertake in specific sites.

Key Measures Needed

- Reforestation approaches that actively involve the uplandpopulation, and which combine the goals of re-establishingforests as well as providing sustained livelihood for uplanddwellers

- Intensified development of lowland resources to increaseproductivity and divert pressure away from critical uplands

-Preparation of site-specific resource management plans,based on inventory of resources, census of uplandpopulation, and assessment of carrying capacities

- Devolution of control over the management of forestresources to local communities and tribal groups based onof their ability to utilize the common resource properly

- Strengthening of resource access rights for small-holdersthrough more secure tenurial arrangements and dispositionof remaining A and D lands

- Intensification of environmental information and education

16

Protected Areas and Blodiversity

Saituoner. The Philppines has a total of 62 national parks and 7 wildlifesanctuaries encompassing some 1.3 million hectares, or about 4.3% of thecountry's total land area. However, some of these parks exist only on paper sincethere is a general lack of funds to Implement protection activities and fieldmanagement of the areas. Almost all designated reserves contain illegalsettements of Oslash and bumr caingin) farmers and have been parlally modifiedor completely degraded. Critically important areas, such as Bicol National Park InCarnarines Sur and Mt Apo Natonal Park in Davao, have been heavily squattedand seriously denuded. Others, such as Mt Pulog National Park in Benguet,Quezon National Park in Quezon Province, and Mt. Canlaon National Park inNegros Island, are seriously threatened by illegal logging and Tkainging.

The wide diversity of marine and terrestrial ecosystems form the habitats of fivem;ajrforestforrnations (mixed dipterocarp, tropicalmontane, mossy or sub-alpine,'molave and pine), 8,000 species of diominant argiosperms (orchids and roses),960 species of terrestrial vertebrates (iand mammals), 541 species of avifauna(birds>, 252 species of herpetofauna (reptiles), 488 species of coral, 16 species ofmangroves, and 1000 species of fish. Among the more notable of these are thefollowing endangered species: the Philippine eagle, Black Sharna, Philippinecrocodile, dugong, and marine turtles. The effects of hunting, trapping and tradingof wildlife, aside from habitat loss, have continually threatened the reproductioncapabilities and the survival of these endemic plants and animals in the Philippines.

| ~Key Coneems

- Ineffective protected areas and parks management systems

- Threats to the existence of valuable flora and fauna as aresult of habitat removal or modification

r- Need to increase the level of public awareness and

appreciation of the benefits of protected areas

Current Efforts The DENR and the World Bank are undertaking a study and- review of the country's protected areas in order to rationalize and develop an

integrated protected areas system (IPAS) in the Philippines. The study willdetermine existing protected areas to be retained in the new system andrecommend qualified sites for inclusion. The study shall also provide the basicinfbormation for the preparation of the legislation that will create the IPAS code asmandated by law. Also, under the Debt-for-Nature Swap Program between theDENR, the World Wildwife Fund, and the Haribon Foundation, the protecton,

? management and development of two protected areas, namely, St. PaulSubterranean River National Park and E Nido Marine Sanctuary both in Palawan-are under way. Experience from the program shall serve as the basis and providea model for the management, protection and development of other national parksin the future. The govemment is also currently conducting captive breeding

i; programs for the Philippine eagle, tamaraw, flying lemur, crocodile and other

Ye 74

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endangered species. NGOs have also been tapped as partners in conservationprojects.

The survey, rehabilitation, reproduction, conservation, information, training ancresearch of the country's diverse ecosystems and wildlife comprise the proposecNational Biodiversity Program of the DENR. The survey and rehabilitabon of critica:ecosystems such as coral reefs, mangroves, wetlands, lakes, rivers and lowlancforests shalf be undertaken. Ecological researches, surveys, capbve breeding ancre- introduction of endangered species into the wild shall be implemented. Theprogram shall promote conservation awareness to the public and establish trainincopportunities for field personnel under the DENR.

KfyMeasures

- Assessment and evaluation of existing national parks andequivalent reserves towards the formulation of a systematicmanagement and protection scheme

- Integration of protected area planning into the overall landuse and regional planning

- Implementation of an intensive nature conservation educationprogram

- Training of managers of protected areas

Urban Ecosystems

Sjituaoner. The migration of the populace to urban areas wil continue to pLpressure on limited urban land resources in the coming years. By 1990, about 2!millon or 43% of the national population will be residing in urban areas. By the yea2000, this will increase by 40%.

In Metro Manila, 7 million of the total populton crowd 636 square kilometers cland. With a population that is increasing at a rate of 3.6% annually, Metro Manil;will be one of the mega cities in the world with a population of 11 million.

Generation and disposal of solid wastes, air pollution emitted by transporvehicles (60%) and stationary industrial sources (40%) will continue to be a majcproblem. High volume sample measurements of total suspended particulate(TSP) indicate that annual averages in Metro Manila can exceed 250 milligrams pecubic meter (mglm3), exceeding the US annual average TSP air quality standarby over 200%.

Furthermore, jeepney, bus and taxi commuters are exposed to excessivconcentrabons of Respirable Suspended Particles (RSP) in the order of 1,00mg/m3 while millions of Metro Manila residents are exposed to ambierconcentrations of RSP in the order of 100 mg/m3. The long term health effects csuch exposure need to be determined.

Sulfur dioxide (S02) does not appear to be a major problem in Metro ManilzThere is relatively less concentration of heavy industry near urban centers ar

-I consequently the levels of S02 measured in Manila are all well below .05 parts pE

18

million (ppm) on an annual average basis. However, since most of the majorvehicles in Metro Manila are diesel-fueled the exposure of 802 by people directyexposed to traffic exhaust are higher.

Water pollution in Metro Manila and other major urban and regional centers iscaused by the general public and, to a lesser extent, by the industrial sector. Allmetropolitan areas in the Philippines have no efficient sewage collection andtreatment except for some affluent subdivisions with residents who can afford anexpensive sewage treatment facility. Only about 12% of Metro Manila's populationis served by a sewerage collection system. The balance of unserved areascontribute about 70% of all the biodegradable organic pollutants that flow into thedifferent river systems in Metro Manila. Untreated or partially treated industrialwastewater is also being discharged into rivers, lakes, or esteros. - These wastesMaccount for the other 30% of the organic pollutants that have all but killed Metro! ~~Manila's water systems.

Municipal solid wastes or garbage usually finds its way into the river systemthrough open canals and culverts and- end up in the river system and exertaddiftional oxygen demand. Metro Manila alone generates about 3,600 tons ofgarbage per day and this is expected to reach more than 5,000 tons pper day inthe year 2000. There are no sufficient funds to finance a systematic and integrated

! solid waste management system although a very thorough solid waste master plan*, has been formulated and approved by a Presidential Task Force on Solid Waste

Management.

Another problem is the disposal and proliferation of toxic and hazardous wastesfrom industri6s. This is especially true in Metro Manila where 69% of the country's15,000 industrial firms are located. Most of the toxic substances are apparently

i Xdischarged without treatment into natural water bodies and coastal waters.

'. Ke ~Coner

- Pollution from industrial effluents

- Solid waste disposal by domestic, commercial and industrial* establishments

4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

- Air pollution from gasoline/diesel fueled vehicles andindustrial establishments

- Population migration to urban areas

I Current Efforts. The DENR, in cooperation with other government agencies, theprivate sector and non-govemmental organizations, is currently undertaking arivers revival program, foremost of which is the UILOG KO, IROG KO" project

I aimed at lowering the pollution load of theI Navotas-Malabon-Tenejeros-Tullahan river Gystem. The DENR, being the leads agency, has committed to lower the industrial pollution load by 60% by 1992, from-fi 32,777 kg. Biochemical Oxygen Demand (BOD) per day to about 23,200 kg. BOD

per day. To date, the DENR has lowered the industry load by about 7%. The MWSSis committed to implement a basin-wide septic tank cleaning program that will lower

I the sewage load from the projected 1992 load of about 25,608 kg. BOD per day toabout 9,978 kg. BOD per day. The National Housing Authority (NHA) is also

19

committed to remove all the squatter shanties lined along the 26 kilometerwaterway and relocate them within the basin, thus lowering the pollution load. TheDepartment of Public Works and Highways (DPWH) is committed to dredge the 26kilometer waterway and build (2) parallel roads alorng the waterway.

The Inter-agency Committee aims to lower the overall pollution load in 1992 by50%MO. The cost to implement these programs is about U.S.$25.75 million spreadover the next three years, ending in 1992. The scenario beyond 1992 wiil involve

£ the installation of a sewerage collection and a marine outfall which will increase thetotal cost to U.S.$236.8 million. It is expected that the river system will be fullyrehabilitated and the entire 26 kilometer waterway will be capable of sustainingmarine life.

Another component of the river revival program is the Manila Bay Clean UpProject. This will tocus on six major river network systems which empty theirwastes into Manila Bay. These are:

- Navotas-Malabon-Tenejeros-Tuilahan River System,

- Pasig-San Juan-Marikina River System,

- Las Pinas-Zapote River System,

- Paranaque River,

- Laguna Lake Basin, and

- Meycauayan River.

The clean-up of Manila Bay will entail the clean-up of the individual sink systems.Among the projects lined up for lowering the pollution load of each of these

t sources are:

- septic tank cleaning and sewerage collection and treatment for domesticsewage,

- individual or combined wastewater treatment plants for industrial firms,

- dredging of rivers to remove accumulated debris, and

-transfer of squatter families along the river banks.

The current efforts for air quality management in urban regions are particularlyaddressed to the Metropolitan Manila area where most of vehicles and industria,firms are located. Other urban growth centers, however, have already started ancare stepping up the air pollution control program.

Vehicle exhaust emission is the most pressing air pollution problem today. Irthe short-term, activities being implemented to alleviate the situation are steppec

* Jup efforts to enforce the anti-smoke belching law and educational campaians tcraise the level of awareness and knowledge of motorists and the general public crthe air pollution problem. In addition to this, the air quality management prograrr

20

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for Metro Manila proposes the adoption of long-term policy options to minimizevehicular pollution. Such policy optons would cover a wide range of concernssuch as:

- Incentives for low-pollutant vehicles and additional tax for pollutive vehicles.

- Promotion of *environment friendly" fuel additivesand appropriate pollutioncontrol devices.

- Reguiation of importation of second hand cars.

-. Development of an efficient mass transportation system.

Emissions from industries and power plants will also be a major concem aseconomic development progresses. Major policy options being considered tominimize the air pollution efforts from these sectors are the following:

- Providing disincentives for pollutive industries that are located in Metro Manilaand other urban centers.

- Strict implementation of land use plans and zoning regulations.

- Promotion of energy conservation and energy efficient production processes.

- Adoption of low or non-waste technologies.

For an effective air quality management program, it is imperative that the;monitoring and enforcement capabilities of the environmental agencies will also bebeefed up. Thus, acquision of monitoring equipment and manpower training areI major components of the program.

j The Solid Waste Management Plan for Metropolitan Manila as conceptualized bythe Presidential Task Force on Sofld Waste Management is in its initial stages of

I implementation. Sites have been identified to serve as sanitary landfills in lieu ofoperating open dumps. Engineering designs are now being prepared andreviewed based on the Environmental Impact Assessment made.

Key Measures Needed

- Rational planning of urban centers (dispersal of industries)

- Provision of workable air monitoring networks

- Rationalization of current environmental and pollution policies

- Implomentation of a pragmatic information and educationcampaign on the effects of air and water pollution and solidwaste disposal

- Stringent enforcement of laws, ordinance, rules andregulations

- Implementation of a sound monitoring system

21L 21

Freshwater Ecosystems

SiMuationr' There are a total of 384 major river systems and 59 lakes and morethan 100,000 hectares of freshwater swamps in the Philippines. These are usedeither for domestic, industrial, irrigation and power-generation purposes.

Agriculture continues to be the heaviest water user, accounting for 60% of totalwithdrawals. The quality of water available for irrigation has been relatively good.However, the increasing sedimentation of river systems have resulted in thereduced water conveyance capability of irrigation systems and diversion facilities.The main cause of this problem is the destruction of watersheds and consequentsoil erosion. Sedimentation caused by the dumping of mine tailings in the riversystems is also a major contributory factor.

Another environmental problem which is becoming a major concem is saltwaterintrusion. This problem is characterized by the movement of saline water intofreshwater aquifers or surface waters. The general mechanisms responsible forthe intrusion are the reversal or the reduction of natural barriers that preventmovement of saltwater, and the accidental or inadvertent disposal of waste salinewater.

Official reports of the MWSS and NWRB reveal that the total area affected bysaltwater intrusion (excluding Metro Manila) has reached 480,802 hectares. Themost heavily affected provinces are CagayaLn, Bulacan, and Cebu.I. In Metro Manila, the affected areas may be categorized according to soul ces ofcontamination, namely: 1) seawater intrusion - 10,244 hectares; 2) seawateritrusion and connate water - 513 hectares; and 3) connate water - 5,674hectares. The affected areas total 19,611 hectares. It should be pointed out thatmajority ofthe affected areas are urban and rural settlements, which isa real causefor aarm.IHydrogeological investigation and economic analysis of the groundwatersalinity intrusion phenomenon indicate the following impacts on water supply andthe affected population:

- poor water quality

- corrosion of wells

- salinization of agricultural land due to inundation, subsequentfy reducinc! i . agricultural yield

! - reduced revenues in some industries due to additional cost of water supply

- revenue loss in public water utilities due to replacement costs where wellE: became too saline to use

- additional cost for the acquisition of water from piped supply

l22

. __ _

Six particular areas in the Philippines, including the two major cities - MetroManila and Cebu - were found to be subjected to continuous degradation of thegroundwater supply due to saltwater intrusion.

Key Concerns

- Pollution due to domestic, commercial and industrial activities

- Agricultural run-offs from pesticides and fertilizers

- Siltation

- Saltwater intrusion

Cuirent Efforts. The DENR, aside from its rivers revival program, is currentlyundertaking its river classificabon project. Of the 384 major rivers in the country,261 have been presently classified according to their use.

Key Measures Needed

- Enforcement of laws, rules and regulations.

- Implementation of an information and education campaign

I - Setting up of waste water treatment plants

1 - Implementation of a sound rehabilitation program for affectedfreshwater ecosystems

Coastal Resources

Siuaffoner. Because of pressures from an increasing popylation and the drivetowards industrial development, coastal resources have been exploitedindiscriminately and its conservation and protection have been overlooked.Dynamite fishing, siltation and human encroachment have led to the destruction ofcoastal resources. Po0ution from industrial complexes continues to be a growingproblem.

A recent satellite study reveals that mangrove and coral resources, two of thea most important coastal habitats have been severely degraded. Of the 500,000

hectares of the original mangrove species vegetabon in the 1920's, only 38,000hectares are left today. However, satellite imagery shows some 149,000 hectaresof secondary growth mangrove vegetation.

The estiriated coral cover of the country's coastal resources is almost 33,036square kilometer. Only 5 to 6 percent of.this is classified as in excellent condition.

* The coastal areas are also the final destnation of most of the mine tailingsgenerated by the mining industry. During the last 3 years, mine tailings generated

4 totalled over 2 billion DMT. In addition to land-based pollution, pollution from ship2 and oil spills are common.

23

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- Overfishing of nearshore fishing areas due to expandingcoastal population

- Continued widescale use of Illegal fishing practices

- Degradation of coral reefs which is due to a combination ofsilt deposition and destructive fishing methods (blast fishingand muro-ami)

- Disappearance and degradation of spawning areas, notablymangrove and mangrove areas, due to conversion tofishponds and other uses

- Encroachment of commercial fishing vessels into nearshoreareas reserved for small (municipal) fishermen

- Ineffective administrative arrangements for regulating coastalj and marine resources

Kay Measures Neteed

- Identification and quantification of point and non-pointsources of pollution

S- etting up of centralized treatment plants for domestic wastesand wastes of similar industry types

- Containment of oil slicks

- Control of siltation by reforestation

- Granting exclusive rights to small fishermen

| - Conduct of hydraulic studies in aquifers

- Stepped-up enforcement of fishing laws and zo:;- ng rules

- Common property management arrangements, i.e., assigningcommon property rights to coastal communities or fishermen

l . organizations in the use and protection of coastal fishingareas

- Preparation of site-specific fishery resources mm.1agementI * - z1!', * plans based on inventory of resources and assessment ofsustainable fishing yields

24

- Rehabilitation of coastal resources (coral reefs andmangroves) to sustain fish yields, including measures toenhance productivity through artificial means, e.g., artificialreefs

- Provision of alternative livelihood opportunities for coastalcommunities to reduce reliance on fishing as a source ofincome

- Intensification of environmental information and education

Land and Mineral Resources

SituatiriLffl Pollibon of land resources may be traced to three general sources:I solid wastes from domestic, commercial and industrial acdAties; agriculturalpollution from pesticides and fertilizers; and pollution from mining activities. Theextensive use of fertilizers and pesticides is continuously polluting the country'sland resources and is causing soil deterioration.

The land resources of the country are also vulnerable to soil erosion. Presently,at least 21 provinces are known to have more than half of their areas eroded.

1 About 9 million hectares of alienable land are eroded in varying degrees andapproximately 1 million hectares of agricultural lands have an 8-15% slope making

- it susceptible to severe soil erosion during the rainy season. Improper agriculturalI practices by farmers make these lands unproductive.

The Philippines is endowed with rich and varied mineral resources, much ofwhich remains to be explored and exploited. Wih such a vast mineral resource,the Philippine mining industry has played a major role in the economic growth ofthe country. Concomittant with mineral exploitation however, are theI environmental problems generated by mining, panning and milling activities. Hugequantities of waste and mine tailings have to be dumped. These can cause

* pdnuion of rivers and marine ecosystems, and damage irrigation canals andfarmlands by siltation. Vegetative cover has to be removed to give way to an openpit mining operation, and for sites of waste dumps and tailing ponds. Toxicchemicals like mercury, used by thousands of small-scale miners, find their way tothe river system even in urban areas. Landslides and flashfloods occur at alarmingrates in areas defaced by unsystematic mining operations.

g Key Concems

- Unregulated importation, distribution and use of toxic andhazardous substances

- Incompatible land-use practices

- Unregulated mining activities and dumping of mine tailingsI and wastes

I - Indiscriminate use of pesticides and fertilizers

I - Lack of awareness and education on the part of the publicregarding the ill effects of pollution

25

gM POMMARAL

I~~~~~~P .. X. -- 3 B -^ ~ - E -eA_2. &., -I-M_ 4

d o__w-_~Z >--4S "

bmt a -r St - aX: ''vU'

A~-.M.- -j ~ ~ ~ ~ ~ N Mr. _ m a _ Aam.............................. o, _ ;;¢ w- - , - _,

mftm~ ~ ~ ~ ~ ~~~~~~~~~O 111,11C PEAR1O

WntA.c -^U-W A"

Er

r NATWt~~~MMMM11AL RESOtlC

,.. ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~O IIGOEAoi

___? _ . _ ._~~~~~~~~~~~~~~~~~W .,low

Current EffolM. The DENR manages the mineral resources sector and isempowered to oversee the activities concerning geology and mineral resourcesexploration, development and conservation. The Environmental ManagementBureau, a bureau under the DENR, administers the Environmental ImpactAssessment System which has regulatory control over proposed mhning projects.Pollution and other related problems gener.ited by the industry are regulated by thefield offices of the DENR.

Key Measures Needed

- Formulation of a national land use plan

- Implementation of an effective information andeducation campaign on the causes and effects of landpollution

- Stringent enforcement oi environmental laws, localordinances, rules and regulations

- Immediate enactment of a law for the sound management oftoxic and hazardous substances

- Implementation of an efficient monitoring system to prevent orabate the degradation of land resources

3.3 AGRICULTURE

33AGRC WdL h thU FRpE population nearing 60 million in 1989, and a toteland area of 30 million hectares, the land area per capita is about 0.5 hectare. ThiEper capita agricultural land is lower than the world average of about one hectare.

As of 1980, the Philippines has about 9.70 million hectares of agricultural landAn estmated 3.7 million hectares of these lands are planted to palay, 2.0 milliorhectares to com, and 2.8 million hectares to coconuts. The remaining 1.2 milliorhectares of agricultural land are planted to crops like tobacco, sugarcane, citu-svegetables, abaca and others.

Until about 1960, agricultural growth was based primarily on land increase at thextensive margin with little changes in cropping intensity, technology, and tot:productivity. In 1979 and thereafter, there was a shift to increasing larproductvity at a very intensive margin.

The increasing demands by a growing population for higher agriculturproduction now threatens the very sustainability of the country's natural resourceSocio-economic factors such as inequitable distribution or lack of access to larlaggravate further the problem.

The problem of soil erosion in the Philippines is quite pronounced due togeographical and climatic conditions. For example, 31% of the country's total laarea is hilly and mountainous, and thus susceptible to erosion.

26

* *.,. ~ 4m ~ ~v ~IN

44 ~ ~ ~ * ~.* **%~.*,~

la~~~~~~~~~~~~~~

MIMI!~~~~~~~~~~~~~~~~~~~~~~~(fl i

soU ~""~

The recent shift from use of chemical fertilizers to organic fertilizers is gainingground even among our farmers. The Integrated Pest Management program issimilarly gaining attention.

Key Measures Needed

- Preparation of site-specific agricultural resourceinventories to assess sustainable production potentials andpopulation carrying capacities

- Efficient and intensive farming systems based on small-scalefarm units and use of organic farming, nutrient cyclingtechniques and integrated pest management

- Multi-purpose development of forest lands to providelivelihood opportunities through sustainable upland farming

- Utilization of the agricultural development potential of theuplands through combination of appropriate farmingtechnologies, provision of infrastructure, and establishmentof institutional support (e.g., tenurial arrangements)

D- iversion of pressure away from the uplands throughintensified distribution and development of agricultural arsasin the lowlands

- Policy and fiscal measures to encourage or direct a long-term. shift of agriculture away from reliance on chemical fertilizers

! iV i:and pesticides

- Intensification of environmental information and education

: . . _

34 INDUSTRY

Situaoner Without doubt, industrialization must be pursued. It is the vehiclethomugh which we expect to solve problems of mass poverty and unemployment.

* I' -However, industry withdraw materials from the natural resource base ancgenerates pollution. Depending on the overall framework of the policy to be

-; , .adopted, industrialization has the power either to enhance or degrade thEenvironment.

A.. tie industrial sector registered a positive gross value added (GVA) of 8.02% ir1987. Growth was principally attributed to the renewed business confidence in thE

;;-jJ i economy due to the improved consumer spending and perceived political anc; ': economic stability.

The growth in the industrial value-dded was accounted for by improve,performance in manufacturing (7.12) and electricity, gas and water subsector

-' (10.74). A strong domestic expenditure program, stable consumer prices anddemand for manufactured export products in the world market enhanced thgrowth of manufacturing industries. Increases in the growth level of the electricit'

28*j .. I

gas and water subsector can be attributed to the higher consumption of power andwater by commercial and Tndustrial firms.

The constructon industry recovered from last year's poor performance mainlybecause of the availability of credit at low interest rates which fueled govemmentand privW investments In the sector. The mirung and quarrying subsectorhowever, suffered from the inability to respond to metal price increases in view ofincased production costs based on risng oil prices and the low grade ofmills in most mines.

Investments also showed a strong turnaround in 1987. The Board oflnvestmaents (BOI) - approved equity investments grew by 165.7 percent from.P3.15 billion in 1986 to P 8.35 billion in 1987. This was brought about by the 217.7percnt increase in Filipino investments amounting to P3.43 billion and the 115percent growth in foreign investments amounting to P3.43 billion. The U.S. Japan,and Hongkong were the Philippines' major investors accounting for 55 percent ofthe total foreign investments for 1987.

In terms of regional capital investment, the Natonal Capital Region and SouthemTagalog registered a 95 percent increase in paid up capital stock of existing andnew domestic stock corporations.

The industrial sector is projected to continually grow with the thrust towardsexport promotion and selecive import substitution. The mining sector is expectedto recover as a result of the promotion of small-scale mining, increased productionof non-metallic minerals and expansion of foreign and local markets for mnineral

ffi commodities. The growth of domestc resource-based industies is likewiseexpected to enhdnce the growth of the manufacturing subsector. imports shallenjoy a steady increase and will come in terms of payments for raw- materials andIl intermnediate goods, capital goods and oil requirements of large-scale industrial

j - and other major infrstructue development projects. However, total import valuej8 is expected to decrease due to the utiization of indigenous energy sources and the

adopbon of energy conservation measures.J

> ~Kev Coneems

- Build-up of industrial infrastructure resulting in necessaryincreases in energy and raw material re-'iirements from thenatural resource base

- Pollution and waste resulting from ind-us;isal activities

- Concentration of industrial facilities in urban areasI - Environmental risks of new industrial technologies

- Relocation of pollutive heavy industries from industrialcountries to developing countries like the Philippines

X [Current Effort. In order to enhance continued growth in the industrial sector,the govemment prepared a ten-year sectoral development program. In theprgram, ten (10) industry sectors were identified for short and long-term actionplans. These are: agri-based industries, forest-based industries, wearables,

29

chemicals, construction, toys, gifts, fumiture and housewares, services, miningand other extractives, metals, engineering, electronics and telecommunicationindustries.

The govemment continues to promote the development of Cottage, Small andMedium Enterprises (CSME!s) through a package of assistance programsconsisting of financing, entrepreneurial development, research and marketing, ardtechnical assistance. Support activities were also provided in the form of projectson technology transfer, trining, productivity awareness seminars, technical andmanagement information.

IThe govemmert also created the Micro, Cottage, Small and Medium EnterpriseCounci (MICSMEC) in 1987 to coordinate efforts in the subsector and In theagencies involved In CSME development Another effort to sustain industrialgrowth Is the creation of 1,158 People's Economic Counals (PEC).

Another program implemented which aims to provide financial resources andtechrnical expertise for countryside development is the Agricultural, Small andMedium Industries Lending Programs (A-SMILE) along with the Agro4ndustrial

j Technology Transfer Program (ArTTP).

The regional dispersal of industries is being promoted to distribute the benefitsof industriazaon to the countryside and encourage self-reliant and productivecommurnites. The sub- components of the program are the Nationa Program for

| .. I~~~~rx-ial Estate Development and the Livelhood Projects (e.g.. 1( S)

.he govemmerit also granted fiscal incentives to deserving firms to make up formarket distortions. Incentives include outright tax exemption, tax credit andpreferential tax treatment

- Establishment of environmental goals, policies and standardsto regulate industry sector decisions involving location,pollution control, waste management, occupational healthand safety of workers, energy and raw material usage, anddisposal of toxic substances

- Support in terms of policy, research, economicinstrumentstmarket mechanisms for the promotion ofrecycling or reuse of industrial raw material and by-products

- Rural infrastructure development to promote dispersal ofindustries to the countryside

- Fiscal measures (e.g. tax incentives, subsidies, pricingpolicies) to encourage adoption of pollution control

*i . technologies by both large and small-scale industries

- Adoption of the "polluter pays" principle

i

!-0; ~~~~~~~~~~~~30!

- Vigorous enforcement of the Environmental ImpactAssessment (EIA) System in making decisions in industryplanning

- Establishment of a tracking system and capability to deal withtoxic and hazardous chemicals and wastes

Among the projects needing priority attention in this sector are:

- Toxic Chemicals and Hazardous Wastes Management

- Environmental Carrying Capacity Profiles of Proposed Growth Centers OutsideMetro Manila

- Intensification of Small-Scale Planning Operation for the Development ofAncillary Industries

- Development of an Information Base on Land Use and Fiscal Planning forUrban and Other Growth Centers in the Countryside

- Proqrams to Provide Technical Assistance on the Abatement of Air Pollution toDENR Regional Offices

- Air and Water Quality Monitoring Network

3.5 ENERGY

Situationer. After the energy crisis of 1973-1974, energy development in thePhilippines led to the partial replacement of oil by indigenous sources such ascoai, hydroelectric power, geothermal, and other nonconventional sources. Thenon- conventional sources include bagasse, agriwaste, and dendrothermal.

The country's total energy consumption in 1988 reached 110.53 million barrel offuel oil equivalent (MMBFOE), 10.3 percent higher than the 1987 consumption.Imported energy accounted for 62.3 percent of the total percent from the levelattained in 1987. The increase in the total energy consumption is attributable to theefforts to sustain the country's economic recovery momentum.

Indigenous energy production amounted to 41.70 MMBFOE, accounting for 37.7percent of the total consumption. Out of total indigenous energy consumption,geothermal accounted 7.6 percent, hydro -9.8 percent, oil - 1.8 percent, coal -3.9percent, and non-conventional - 14.7 percent.

The 1988-1992 Medium Term Energy Plan outlined the sector's policy thrusts asfollows:

- Promotion of energy self-reliance

- Rationalizabon of energy prices to reflect the true cost of production anddistribution

- Encouragement of energy conservation measures to promote efficiency

31

- Partcipaton of the private sector in energy projects

- Maintenance of environmental and safety measures for energy projects

Key Qonrarna

- Need for growth in energy supplies and power generatingfacilities to promote and sustain economic development

- Potential adverse impacts of large-scale energy resourcesdevelopment

- Wasteful energy utilization due to old and inefficientgenerating facilities and distribution system

- Reduced lifespans of hydro-electric systems due to rapidsiltation and degradation of watersheds

- The growing shortages of fuel wood in rural areas due todeforestation

- Several foreign exchange difficulties as a result of paying forimported oil

- Energy technologies have the potential to perturb criticalenvironmental processes as well as threaten human health

- No energy technologies are free of environmental risk

Current EfforI-: To assure the country of a stable supply of energy, the followingactivities are being undertaken:

- Oil exploration and drilling both on-shore and off-shore are continuouslypursued. A total of seven wells were drilled in 1988. The oil discovery at NorthMasinloc, and Galoc increased the number of oil producing fields to six, bringingthe total production to 2.18 million barrels or 6.9 percent from the 1987 productionlevel.

- Coal exploration was intensified with the launching of the small scale coalmining program. The coal mining industry produced 1.29 million metric tons in1988.

- Geothermal development activities have intensified in 1988, with the adoptionof a new power program recognizing that geothermal steam could be a majorpower source. To date, there are 197 wells that are producing an estimated powerpotential of 1,228 megawatts.

- In the nonconventional sector, studies and promotional activities that cover awide range of potential indigenous energy sources are being undertaken.

Key Measures Needed

32

- Environmental aspects should be integrated Into energypolicies both at the formulation and implementation stage

- Promotion of energy conservation measures which havepositive environmental effects

- Accelerate the development and exploitation of new andexisting energy sources, taking into considerationenvironmental requirements and precautions to minimizeadverse environmental Impacts

- Active support In terms of research and fiscal measures (e.g.tax incentives) for the development and integration of non-conventional renewable energy systems (biomass energy,wind, solar, mini-hydro)

- Clarification of energy development alternatives (e.g., coalversus geothermal) to inform the public on the necessarytrade- offs involved (economic, social, and environmental)

- Energy pricing scheme that includes payment forenvironmental damages or environmental rehabilitation costs.directly attributable to energy development

.1.

*1** ~~~~~~~~~33

~~~~~~~~~~~~~~~~ - --- - - -

FOOTNOTES

(t) Salas, Rafael, M. Reflection on Population, Pergamon Press,New York, 1984. p. 63.

(2) Factoran, Fulgencio, Jr. Population, Resources and the PhilippineFuture: An Ecological Perspective, Paper presented at the First RafaelM. Salas Foaum, 24 October, 1989.

(3) Roque, Celso R. The Present and Future State of the PhilippineEnvironment, Kalikasan Press, Quezon City, 1989.

(4) Ibid.

(5) Cruz, Wilfrido; Francisco, Herminio A. and Conway, Zenaida T. TheOn-Site and Downstream Costs of Soil Erosion in the Magat andPantabangan Watersheds, Joumal of Philippine Development. Vol.XIV, No. 2, Phil. Insttute for Development Studies, 1987, p. 88.

(6) Porter, Gareth with Ganapin, Delfin Jr. Resotirces, Populabon andI the Philippines' Future, WRi Paper No. 4. World Resources Institute.A .'-t 1968, p. 38.i ,,IVI ,.*.4. (7) Ganapin, Delfin Jr. Opening Remarks of the Director,I *'.'!1-ironmentci Management Bureau, Seminar-Workshop on the

Development of an Environmental Education Strategy for Sustainablei..... , ;1. iDevelopment in the Philippines, Sulo Hotel, Quezon Cty, 23 October,

. .'~ I: 1989.

I I. j~IJ

I 11.-;iN

. 3

!4'

I I:1 -;i'-

! 1

4:&.lo'

.4

Appendix B

- Figures

II

21 __ _ __

FOREST AREA AND POPULATION (1930 -1984)

FOREST AREA (milllion hectares) POPULATION (milllon people)

l04

.1 ~~~420

2 I --- ~FOR~EST AREA +POPULATION j10 I . . . I0i FOT1930 1939 1948 1957 1966 1975 1984

FORST 12A (lllonhecc YEAR PPILUIO mli epe

CORRELATION OF POPULATION DENSITYAND FOREST COVER, 1980

Has/Person Forest Cover (%)4 - 100

3.5 8

8 -

2 - 50

0 01 3 4 Palawan 5 6 7 8 9 la 11 12

RE GI O NSFIGURE 2

41~~~~~~~~~

POPULATION DENSITY AND, POVERTY INCIDENCEBY REGION, 1980

30Persons per km 2No. of families300 ~~~~~~~~~~~~~300

25025

150 150

100 ~~~~~~~~~~~~~~100

,' - 50

01 2 3 4 5 6 7 8 9 10 11 12REGIONS

s Population Density Agri. Families Inthe bottom 30%