CHAPTER VII: THE ECONOMICS OF ECOLOGY

The Philippine Agenda 21

Note: The Philippine Agenda 21 provides the policy framework of the country’s
strategy for sustainable development. Among the significant features are:

1. the realization that Gross Domestic Product (GDP) is not an accurate

measure of social well-being,
2. the realization of the continuing deterioration of the natural and social
environment,
3. a vision of “appropriate (not maximum) productivity” within the limits of the
natural environment’s carrying capacity,
4. redefining development as that which draws
out the full human potential,
5. adoption of a policy mix of market-based
instruments and command-and-control
measures as techniques to induce changes in
production and consumption patterns, and
6. adoption of social marketing approaches in
the effort to inform, educate, and
communicate the imperative of sustainable
development to the public at large to effect a
reorientation of fundamental societal values.

Executive Summary1

Philippine Agenda 21 (PA 21) is part of the

country’s response to fulfill its commitments in the
historic Earth Summit in 1992 where government
and key sectors of society agreed to implement an
action agenda for sustainable development, known
as the Agenda 21.
Philippine Agenda 21 seeks to answer four
questions:
"Only when the last tree has been cut down,
Only when the last river has been poisoned,
Only when the last fish has been caught,
Only then will you find that money cannot be eaten." -
-Cree Indian Prophecy

• Where are we now?

• What is sustainable development?
• Where do we want to go?
• How do we get there?

1
As amended by Sec. 2, R.A. No. 7718, 5 May 1994.
 In answer to these questions, the major stakeholders involved in the
formulation of the Philippine Agenda 21 found it necessary to seek common
ground. The Principles of Unity, forming part of this document, embodies this
common ground which unites the key actors in their pursuit of sustainable
development.

Where Are We Now?

The Current and Emerging Landscape for Sustainable Development

Achieving sustainable development is a formidable task. Hence, the

journey towards sustainable development must be grounded on a clear
understanding of the challenges, trends and opportunities that lie ahead.

Demographic Trends. The Philippines ranks as the ninth most populous

country in Asia and fourteenth in the world. The country’s population growth, if
unabated, will double to 128 million by 2025. Rapid population growth and
imbalances in spatial distribution will continue if policy decision-making at all
levels of governance does not recognize the relationships among population,
resources, environment and development. The crucial role of the Filipino family in
the dynamics of these relationships should also be considered.

Cultural Trends. The inherent strengths of the Filipino culture-for example,

openness, freedom of expression, resilience, strong family orientation-continue to
reinforce social cohesion within the Philippine society. These values are also
embodied in the growing tradition of local activism. However, it has been
observed that some erosion of Filipino cultural values has taken place as
manifested by, among others, the commodification of indigenous culture, sexual
tourism, consumerism, and increasing materialism.

Science and Technology Trends. There have been many positive

developments in this area. These include the improved level of contributions of
highly skilled Filipino scientists and the growing recognition of the value of
indigenous science and technology and holistic science. On the other hand, the
sector has its share of problems, such as the “brain drain” phenomenon, unfair
monopoly of intellectual property rights, increasing use of technology as a
simplistic response to complex problems, poor quality of science education due to
inadequate funding and facilities, among others.

Economic Trends. Positive economic growth rates (as measured by GDP)

have benefited certain sectors of Philippine society but do not reflect social
decline and inequity nor the deterioration of the environment associated with
economic growth. Despite continued economic growth, challenges remain, which
include, among others, high level of public indebtedness, low level of savings,
large deficits, remaining distortions in the price and incentive system, rampant
casualization of labor, and indiscriminate land and ecosystem conversion.
 Urbanization Trends. Difficulties in the implementation of agrarian and
urban land reform and rural development programs have contributed to unplanned
and uncontrolled urbanization. Philippine cities have deteriorated as human
habitats, beset with intractable and often interrelated problems like pollution, water
shortage, flooding, violence, and other social ills.

Human Development Trends. Existing measures of human development

indicate some improvement over time. However, these improvements are uneven
across geographical, income, gender, and ethnic groups. The development of
human potential is being affected by continuing challenges such as rampant
substance abuse, breakup of families, economic exploitations, and homelessness
as evidenced by the growing number of street children.

Environment Trends. Even with accelerating economic growth,

environmental quality is fast deteriorating as dramatized by the increased
incidence of environmental disasters and problems associated with mine tailings,
deforestation, pollution, salt water intrusion, and a host of other destructive
activities. The regenerative capacities of fragmented areas in the biogeographic
zones that nurture flora, fauna, and natural resources are severely threatened.
While advances have been made in the area of biodiversity conservation
alongside the growing awareness of the role of indigenous peoples in maintaining
the integrity of ecosystems, the Environmental Impact Assessment system
continues to be plagued with various enforcement and compliance problems.

Institutional Trends. The Philippines has strong institutional building blocks

for sustainable development, including a strong civil society, socially and
environmentally conscious business groups, community empowerment initiatives,
devolution, and decentralization. However, these are plagued by ineffective
mechanisms for enforcement and implementation, information inadequacies, and
continuing systemic graft and corruption.

Political Trends. The current wave of globalization is increasingly posing

some threat to the country’s national sovereignty. Domestically, the rich continue
to dominate political processes as evidenced by deep-seated iniquitous structures
and processes. The challenge continues for meaningful electoral reforms.
Meanwhile, the Local Government Code has reinforced the role of LGUs in
development administration. Civil society, as a countervailing force, has been
engaging government at all levels.
 What Is Sustainable Development?

A Conceptual Framework for Sustainable Development

The World Commission on Environment and Development (WCED), in its

report “Our Common Future” published in 1987, defines sustainable development
as “meeting the needs of the present generation without compromising the ability
of the future generations to meet their own needs.”

While sustainable development derives its meaning from the global

discourse, its application must be rooted in the context of national realities and
aspirations. Philippine Agenda 21’s concept of development is grounded on both
an image and a shared vision of the Filipino society. It recognizes the key actors
in sustainable development as the government, business, and civil society and the
functional differentiation of modern society into three realms-economy (where the
key actor is business), polity (where the key actor is government), and culture
(where the key actor is civil society). The three realms are interacting, dynamic,
and complementary components of an integral whole.

Thus, the essence of sustainable development is in the harmonious

integration of a sound and viable economy, responsible governance, social
cohesion/harmony, and ecological integrity to ensure that development is a life-
enhancing process. The ultimate aim of development is human development now
and through future generations.

Where Do We Want to Go?

Elements of a Shared Vision

Philippine Agenda 21 envisions a better quality of life for all through the
development of a just, moral, creative, spiritual, economically vibrant, caring,
diverse, yet cohesive society characterized by appropriate productivity,
participatory and democratic processes, and living in harmony within the limits of
the carrying capacity of nature and the integrity of creation.

In concretizing the vision, Philippine Agenda 21 describes path of images

for individuals, families, households, and communities and for each ecosystem
and across ecosystems in consideration of the interaction of the various
lifescapes and landscapes found therein.

The Philippine Agenda 21 adheres to the following principles of sustainable

development:
• Primacy of Developing Human Potential
• Holistic Science and Appropriate Technology
• Cultural, Moral, and Spiritual Sensitivity
• Self-determination
• National Sovereignty
• Gender Sensitivity
• Peace, Order, and National Unity
• Social Justice, Inter and Intra-Generational and Spatial Equity
• Participatory Democracy
• Institutional Viability
• Viable, Sound, and Broadbased Economic Development
• Sustainable Population
• Ecological Soundness
• Biogeographical Equity and Community-Based Resource Management
• Global Cooperation

How Do We Get There?

Operational Framework and Action Agenda

The operational framework of Philippine Agenda 21 consists of a multilevel

guide for decision-making consisting of sustainable development criteria,
parameters and descriptors. The principles of sustainable development embodied
in the vision serve as the criteria which help define the viability of development
interventions. The parameters are basic policies from which the key ingredients
of a sustainable development strategy are developed. Sustainable development
descriptors translate the parameters into specific action strategies.

Operationally, sustainable development is development that draws out the

full human potential across ages and generations. It is, at the same time,
ecologically friendly, economically sound, politically empowering, socially just,
spiritually liberating, gender sensitive, based on holistic science, technologically
appropriate, builds upon Filipino values, history, culture and excellence, and rests
upon strong institutional foundations.

Philippine Agenda 21 provides a comprehensive set of economic, political,

cultural, scientific and technological, ecological, social, and institutional
parameters that flow out of the principles of sustainable development.
Development is sustainable if it is fully guided by these parameters.

Philippine Agenda 21 advocates a fundamental shift in development

thinking and approach. It departs from traditional conceptual frameworks that
emphasize sector-based and macro-concerns. Philippine Agenda 21 promotes
harmony and achieves sustainability by emphasizing:
 • A scale of intervention that is primarily area-based. The national and
global policy environment builds upon and supports area-based initiatives.
• Integrated island development approaches where applicable. This
recognizes the archipelagic character of the Philippines which includes
many small island provinces.
• People and the integrity of nature at the center of development initiatives.

This implies the

strengthening of roles, relationships,
and interactions between
stakeholders in government, civil
society, labor, and business. Basic
sectors have an important role to
play in achieving equity and in
managing the ecosystems that
sustain life.

The action agenda of the

Philippine Agenda 21 elaborates the
mix of strategies that integrate the
SD parameters in the country’s
overall development strategy. In
formulating the action agenda, PA
(Siargao reefs) "For a successful technology, reality must take precedence 21 has been guided by the key
over public relations, for Nature cannot be fooled." --Richard Feynman, concepts of integration, multi-stake
US educator and physicist holdership, and consensus building
and operationalization.

PA 21 does not duplicate but builds on existing and ongoing initiatives

related to sustainable development. Hence, sustainable development in the
Philippines is the accumulation of conceptual and operational breakthroughs
generated by the Philippine Strategy for Sustainable Development, Social Reform
Agenda, and Human and Ecological Security, among others. Sustainable
development is also a product of the process itself, of engaging various
stakeholders and of working in global, national and local arenas.

PA 21 is a document owned by various stakeholders in government and

civil society. Hence, the action agenda brings out the important roles of major
groups and other stakeholders in the sustainable development process.

PA 21 must be identified with doing. This implies concrete policy

statements as well as appropriate implementation strategies on the critical issues
that will affect sustainable development in the Philippines in the next thirty (30)
years, including financing and localization mechanisms.
 The journey towards sustainable development involves both a transition
and a paradigm shift. PA 21, therefore, adopts a two-pronged strategy in defining
and mapping out the action agenda:

• Creating the enabling conditions which would assist various stakeholders

to manage the transition and at the same time build their capacities
towards sustainable development; and
• Direct and proactive efforts at conserving, managing, protecting, and
rehabilitating ecosystems through an approach that harmonizes economic,
ecological, and social goals.

Managing the transition to sustainable development calls for interventions

in the following areas:

• Integrating sustainable development in governance

• Providing enabling economic policies
• Investing in human and social capital
• Mapping out a legislative agenda
• Addressing critical and strategic concerns, to include population
management, human health, food security, human settlements, and land
use

These interventions define PA 21’s action agenda across ecosystems. The

action agenda at the level of ecosystems consists of strategic and catalytic
interventions covering the following ecosystems and critical resources:

Ecosystems Critical Resources

• Forest/upland ecosystem • Minerals

• Coastal and marine ecosystem • Biodiversity
• Urban ecosystem
• Freshwater ecosystem
• Lowland/agricultural ecosystem

Challenge Ahead: Implementing Philippine Agenda 21

The implementation of Philippine Agenda 21 must be anchored on the

basic principle of collective choices and responsibility. Forging new partnerships
and finding areas of common ground for collaborative action are central to the
process of implementation as well as building and strengthening the roles and
capacities of major groups and stakeholders; a consolidated and well-coordinated
effort at information, education and communication advocacy; localization;
generating financing means and strategies; and monitoring and assessment.
 Strengthening the Role of Major Groups

The identification of key players and how they interact in the whole process
provide a basis for deepening the analysis and treatment of the ecosystem, and
also for defining the varying roles that various stakeholders are expected to play
for achieving sustainable development.

There are two major categories of stakeholders: basic sectors and

intermediaries. Basic sectors comprise the farmers and landless rural workers,
fisherfolk, indigenous peoples, urban poor, and other disadvantaged groups such
as workers in the informal sector, children and youth, persons with disabilities,
elderly, disaster victims and overseas contract workers. Intermediaries are
composed of formal institutions that include the national and local government
units, business and private sectors, non-government organizations, church-based
organizations, civic groups and professional associations, mass media, and the
international community.

The key roles of the major stakeholders are defined according to sectoral
needs, motivation or interest and perspectives. Intermediaries can serve as any of
the following:

a. brokers of information and appropriate technologies;

b. mobilizers of resources,
c. networkers to strengthen institutional linkages and trainers, and
d. product enhancers.

Basic sectors, on the other hand, can serve as advocates of specific issues
and concerns, organizers and mobilizers of community resources, culture bearers,
innovators of indigenous approaches and systems, managers and controllers of
community resources.

There are common grounds within which these key actors can undertake
collaborative actions and interventions.

Localization

The process of localizing Philippine Agenda 21 is a vital element in

mainstreaming the action agenda at the local level. In principle, localization shall
seek to emulate the following key concepts: multistake holdership and consensus
building, integration and operationalization while respecting the need to preserve
the peculiarities inherent in each locality.

The process of localization needs a structure that will ensure coordination

and cooperation among the various actors. The structure to be eventually adopted
shall be left to the discretion of the local people. Two options, though, can be
identified: tapping existing structures such as the Regional Development Council
or creating a separate structure which is a mirror image of the PCSD.

Financing Means and Strategies

The adoption of a mixture of market-based instruments and command-and-

control measures is expected to set into motion financial flows that would help
achieve the goals of PA 21. The strategy aims to help induce changes in
production and consumption patterns in favor of the sustainable management of
the country’s resources.

Financing PA 21 will have to rely heavily on the economic sector’s ability

and willingness to incorporate sustainable development principles in the design of
their production systems. Market-based instruments working in tandem with the
application of beneficial and realistic environmental standards through credible
enforcement of regulations and sanctions could encourage companies to invest in
abatement equipment.

Companies that support philanthropic activities can also be tapped by PA

21 to channel an increasing share for sustainable development initiatives under
an environment fund. Pollution charges and other forms of penalties and fines can
be collected at rates that will provide an incentive for environmental protection. PA
21 may also be considered for inclusion in the Investment Priorities Plan to make
environmental investments eligible for fiscal incentives.

Proponents of public and private investment ventures are primarily

responsible for making the needed investments for environmental rehabilitation
and/or mitigation in compliance with environmental standards. Incorporating such
investments in public sector projects can be ensured through government’s
appraisal procedures.

Information, Education, and Communication Plan (IEC Plan)

The imperatives of sustainable development necessitate a reorientation in

the fundamental values of society. Hence, the formulation and implementation of
a comprehensive information, education, and communication advocacy plan is
part of the efforts to mainstream the principles of PA 21 in the various efforts of all
stakeholders.

The IEC Plan for PA 21 would involve a mix of communication strategies

such as social mobilization, advocacy, social marketing, networking, and
visioning. The following are some of the strategic messages which shall form the
basis of the over-all strategy:
1. Sustainable development is a matter of survival.
2. The only true development is sustainable development.
3. Avoiding pollution is not necessarily avoiding profit.
4. Pollution does not pay; managing pollution pays.
5. Environmental protection is a corporate responsibility.
6. Sustainable development begins and ends with you.

Monitoring and Assessment

To effectively assess the implementation of Philippine Agenda 21, a

comprehensive monitoring, evaluation, and reporting system should be
established to guide all stakeholders to meaningfully participate in the process of
operationalizing sustainable development. Such a system will also help institute
broad-based accountabilities and responsibility for sustainable development
among members of society. This system may include the following elements:
a. a system to coordinate and evaluate the extent to which the Philippine
Agenda 21 has been adopted and implemented by all stakeholders;
b. a system to coordinate, support, and enhance existing national and local
multisectoral as well as sectoral monitoring, evaluation and information
exchange on the implementation of initiatives related to Philippine Agenda
21; and (c) a system for reporting, giving feedback, and utilizing the
monitoring and evaluation results on Philippine Agenda 21 for international,
national, and local stakeholder communities.

Medium Term Development Plan of the Philippines (2004-2010)

The following is an excerpt from the 2004-2010 Medium Term Philippine

Development Plan (MTPDP) adopted by the Arroyo Government.

CHAPTER 3
Environment and Natural Resources

The 2004-2010 Medium Term Philippine Development Plan has devoted

an entire chapter (Chapter 3) on the Philippine Environment and Natural
Resources. It describes the rich bounty of our country being blessed with so much
natural resources yet also becoming vulnerable to both man-made and natural
factors. This covers the forest ecosystem and its resources, the alienable and
disposable land resources, biodiversity, coastal and marine ecosystem. It also
discussed the abundant minerals that can be found in our country yet still not
maximized due to obstacles such as declining market price and policy
inconsistencies. Likewise, the regressing quality of our physical environment was
described.
 The government for its part
prescribed five major goals that could
promote sustainable resource management
and alleviate poverty. These are
accompanied by specific strategies and
action plans that could help address the
context described. The five main thrusts for
the Philippine environment and natural "The fundamental principles of ecology govern our lives
resources are as follows: wherever we live, and ... we must wake up to this fact or be
lost." --Karin Sheldon, environmental lawyer [1973]
Thrust No. 1: Sustainable and more
productive utilization of
natural resources to promote investments and
entrepreneurship
Thrust No. 2: Promote responsible mining that adheres to the principles of
sustainable development: economic growth, environmental
protection and social equity. Responsible mining reduces
poverty and benefits local and indigenous communities
Thrust No. 3: Focus and strengthen the protection of vulnerable and
ecologically fragile areas, especially watersheds and areas
where biodiversity is highly threatened.
Thrust No. 4: Create healthier environment for the population
Thrust No. 5: Mitigate the occurrence of natural disasters to prevent the
loss of lives and properties

--------------------x

Taking a closer look at the 2004-2010 MTPDP, one will readily see that the
MTDP’s plan for environment and natural resources development still adopts the
extractive mode of economic development, and then calls it ‘environmental
protection’ and ‘sustainable development’. Very good!