Agriculture is the effective tool in reducing poverty
in the Philippines - Angara

Seeing the need to reduce poverty rates in the country, Senator Edgardo J. Angara stressed the need to develop the agricultural sector as a vital element to ensure further economic development.

"Economic development lies in agriculture. Our economy cannot jump towards industrialized enterprises without first strengthening its rural foundation, at the crux of which is agriculture. It is the most effective and economical tool in reducing poverty," said Senator Angara, who chairs Senate Committee on Agriculture and Food.

Recently, the World Bank (WB) - in its annual meeting in Washington in October - called for agriculture to take a lead in development policies and pledged to boost its lending to the sector after allowing it to decline in 1980s and 1990s.

It also said that an improvement in a country's gross domestic product that is agriculture-driven is four times more effective in reducing poverty than is gross domestic product (GDP) growth originating in other sectors.

In the same WB report, Luc Christiaensen said that 'in the 1980s, both countries had the same share of poor people, with an average of 20% of the population living below US$1. But by 2005, Thailand has an almost 0% poverty rate, while the poor population in the Philippines still lingers at 15%.'

"If we take a close look into these countries' strategy in poverty alleviation, we will see that while our country has been primarily focused on rapid urbanization, Thailand has continued to strengthen rural development with 70% of its populace continuously residing in the countryside," said Senator Angara.

He added that while the Philippines spends 3 to 6% of its Gross Domestic Product in agriculture, Thailand prioritizes it highly, spending from 7 to 12%.

Recently, initiatives to improve domestic farming conditions affected by global competition can now be seen after the Agricultural Competitiveness Enhancement Fund (ACEF) has been extended until 2015.

With ACEF in place, small farmers will be equipped with funding support for irrigation, farm-to-market roads, post-harvest facilities, credit, research and development, retraining, extension services and marketing infrastructure in the agriculture sector.

"These are but seeds of future harvest, and a lot more needs to be done. The essential point is the country's leaders must utilize agricultural development as an effective way out of poverty," said Senator Angara.