The Republic

Media

Part of The Republic

Title
The Republic
Issue Date
Volume I (Issue No.22) 1-31 December 1976
Year
1976
Language
English
Rights
In Copyright - Educational Use Permitted
extracted text
NINETEEN seventy-seven is here. The rejoicing for the new year, however, is tempered by the rec­ ent announcement of the OPEC that the prices of crude oil will soon be increased. Once more, the re­ soluteness and the resiliency of the Filipino people will be put to the test. In spite of the probable adverse effects of higher cost of energy, our economic plan­ ners are confident that our economy will again weather the inflationary storm. This guarded opti­ mism is based on the nation’s performance in the difficult years of 1974 and 1975. The national government is not letting the course of events shape the national destiny, how­ ever. The last few weeks of 1976 have found the gov­ ernment policy-makers hard at work on preparing the development agenda for the coming year. Significantly, the Batasang Bayan is closely involved in laying the groundwork for 1977. Of course, starting on that year, the government will start following the calendar year in its budget schedule. The budget hearings have been conducted by the Batasang Bayan Appropriations Committee headed by President Ferdinand E. Marcos. The Batasang Bayan, in Resolution No. 6, has already pegged the 1977 national budget at P27.4 billion—an amount that is enough to stimulate the economy, and yet not so excessive as to exacerbate the price pressures sure to be induced by the higher cost of oil. For several sessions before Christmas, there­ fore, the Committee “grilled” the various heads of government departments to ensure that all planned expenditures in 1977 are reasonable, hewing close to national priorities and goals. This process, gauging by its success, is certain to be institutionalized. Not only does the department head is made to justify his bud­ get share, but he is also made to show how his de­ partment performed during the past year. During the budget hearings, President Marcos underscored the need for an integrated program for rural development that links all agencies involved in countryside development. The President’s announce­ ment not only signified the continuing emphasis on rural development in 1977, but also his concern for the costly overlapping of functions and lack of coor­ dination among some government agencies. The Batasang Bayan also approved a medium­ term economic development plan lor the country starting in 1977 and ending in 1982. The plan stresses once more the target of the government to achieve economic growth that will result in equitable benefits to the people. This method of chartering the course of the economy is of certainly much more effective and logical than the old society system of “spending for the next election year.” The government is also hard at work in its en­ ergy conservation program, spearheaded by the ENERCON. Strategies are also b^ng formulated for the marketing of our primary exports. In the case of su­ gar, which has suffered recent downswings in inter­ national prices, the government has dovetailed its po­ tential as a source of alcohol fuel with the energy self-reliance program. All in all, the pressures of higher import cost are certain to induce the government to take a more active hand in promoting our export goods abroad. Politically, 1977 could become a milestone in the Philippine political history. Elections for repre­ sentatives in the national legislature will most prob­ ably be held next year. With the institutionalization of the Sangguniang Bayan and the barangay in the Constitution, as mandated by the people in the Oc­ tober Referendum-Plebiscite, community participa­ tion in the political processes will surely become more intensive and effective. Abroad, the Philippines during the recent years have achieved a position of respect for its policy of independence and peace. The recent spate of state visitors to Manila is one indication the growing impor­ tance of the Philippines in world affairs. The govern­ ment in 1977 is certain to, continue its policy of dovetailing its diplomatic activities with the impera­ tives of development at home, particularly in face of a more difficult year for the global economy. A con­ tinuing special concern of the government will be the consolidation of the gains made during the Bali Sum­ mit among the ASEAN members. Nineteen seventy­ seven might yet see the final peaceful solution of the Mindanao problem with the planned visit of Libyan head CoL Muammar Khaddafy in April. J HE government manager is sure to find their hands full of work again in 1977—the fifth year the New Society. In performing the duties of our office, we can perhaps again take heed of the Pres­ ident’s words: “. . .those who serve me must accept the most ruthless discipline. They must work hard and observe the highest standard of service, other­ wise they have no place in the leadership of the New Society....” □ P.13 2 1-31 December 1976 The Nation THE REPUBLIC FORUM □ Economic Planning Sec. Gerardo P. Sicat Steeling the economy from outside threats QUESTION. Sir, I understand it is feasible now to use alcohol as motor fuel since the price of gasoline is higher than the price of alcohol. So we can now convert sugar into alcohol and from alcohol to motor fuel. We are just curious who will do the conversion? Is it going to be a joint venture between the two sectors or purely a government enterprise? SEC. SICAT. Well the principle still has to be studied. We are current­ ly working on this. But let me tell you that some countries have been doing this for some time now. In fact, the President has instructed that we look into the program being undertaken in Brazil, and we are studying the Brazilian law on this. Countries like India have been using alcohol for fuel for some­ time and I think Australia is also known to have undertaken it. Our estimates seem to indicate that on a 15-percent to 20-percent mix, it could lead to import substitution in the order of about US$30 million, but this is a very rough estimate. Does this mean savings? Savings, in terms of imports—$25 to $30 million. It strikes me to be a modest figure at this point But we are not sure. But going back to your ques­ tion, I think that the undertaking will probably be a private venture because we have enough incentives available in our own investment laws. We have the Board of Investments; and then we have the Energy Development Board that has some primacy over energy policy matters. We are, however, still working on this program which, as you will note, is linked with the sugar industry program over which the President required the National Economic? and De­ velopment Authority (NEDA) to under­ take a very thorough overall study. How long will this project or this study on conversion take? What is the lifespan before we can come out with the first implementing rule? First, we have to learn the tech­ niques. We have to mobilize what is available. The private sector and the government will work together on this. Secondly, we are still debating the issue on whether we need to set up an alco­ hol agency patterned after the Brazilian model or work on it through a special program, utilizing the existing govern­ ment machinery which will be involved in it to some extent, including of course the sugar industry which is the primary source of the raw material. So, considering all these, Mr. Secre­ tary, how soon can we implement this plan? We hope to begin implementing whatever is in this program before the end of this year. I mean, we ought to be pinpointing responsibilities as well as identifying segments in the private sector. I understand that most of the com­ panies which will be tapped in this pro­ ject are the distilleries. Yes, they are involved. They have been converting sugar into alcohol. It is only a matter of really working on what we have now and then seeing to it that this is synchronized with the fuel x dustry or those that have the regula­ tory capacity over the use of fuel. Incidentally I think we have been burning alcohol for fuel for long, long ago. We are just returning to something that we have already done. Has this method been proven profit­ able in Brazil? In the case of Brazil it seems to have been a successful case. At least we have heard the minister who was here, Minister Weki, who had informed us more or less about what the Brazilians have done. Alcohol surely has a much bigger potential than petroleum from some standpoint, because it is reprodu­ cible, while petroleum is exhaustible and not replaceable. It takes millions of years to make petroleum, and at the rate the world is consuming resources, we don’t have these millions of years to wait. How we will deal with higher oil prices SINCE we are also on the topic of fuel, certainly we will have to cov­ er also in our talks the OPEC price in­ crease to be effective January next year. Somebody here said that in the “Busi­ ness Prospects” meeting, you said that you personally do not believe that OPEC will raise prices by December or January. Do you think there should be a revision of this view? Well, you know, I expressed the view there largely to downplay the hys­ terical commentary that is going around. Because one can be hysterical and lose track of the fact that there are many ways with which we can adjust to the situation. I also emphasized in that meeting that I believe that despite what is said in the world press about increases of 10 percent, 25 percent and so on, there are members of OPEC that really do not want a high price increase. I do believe that there is and I did be­ lieve then that there will be some price increase, but I think that it is only logical that the element of high price increases should not be emphasized in this type of discussion, when everything is speculative. I am sure that the increase is of a much lower magnitude. I have express­ ed several factors working toward a low­ er rate of price increase. Number one, it seems that if I am correct in my assess­ ment, there have been cases when the so^alledprices at which they were sell- w iijt-by Jgreement hSv’e not? bee *ealij? f fully followed. In other words, there were some efforts at making larger sales through lower prices by some of the partners. As a cartel, they have to dis­ cipline themselves. Discipline is very im­ portant and too high a price will tempt discipline to break down. Secondly, I think that some of the countries exporting oil are probably not determined to raise the price too high because they know that the consequence on the world economy can be bad. I think they will not underestimate the impact of price increases on world pros­ perity as well as on countries dependent on technology and industry. And a third point, which I think is also some­ thing they are concerned about, is the impact on the poorer countries—the ones without oil resources and the ones whose balance of payments are really suffering. I think the OPEC countries are also compassionate in relation to the effects on their fellow members in the OPEC—I mean those belonging to the Third World. They are the richest among the Third World countries. They know that what they do severely affect? their friends in the Third World and I think that they are learning the responsibil­ ities attached to all of these. So I am not as pessimistic as the others. What about the effects on us? We have a target growth rate of six to seven percent every year. Shall we hold on to this target for 1977? , I think that the growth rate depends not only on the price of fuel. You knov?, it depends also on the pros­ pects for world trade and in our inter­ nal efforts. Therefore, I think that we can still maintain our growth rate. If it is going to be a severe price increase, we might slow down by one percent of the actual rate of growth. So, if we were aiming at 7 percent, we could probably hit 6 percent or even 5 percent if worse comes to worst. But despite the problems we are having about terms of trade difficulties as evidenced by the fall of the sugar price and the unlikely recovery of copper and our other exports, I think we can maintain a reasonable growth. Earlier, you were saying about ad­ justments to an increase in the OPEC prices. Are you referring to the import and export margins—meaning the terms of trade? Specifically, if there is a sev­ ere increase in the prices of OPEC, does it mean that we will have more restraints on imports although we are trying to expand exports at the same time? Yes. Well, you know, if our exports are not able to earn as much, obviously our imports will have to adjust. Of course, we manage to import more be­ cause some of our imports are really in the areas of machinery and raw materi­ als and the payments for these are over long-term periods. They are not instan­ taneous. So, part of our imbalance is due to the fact that we are just creat­ ing more productive efforts and we are paying for this through longer-term re­ payments in the future. How much do you think will the imports of raw materials and machinery be allowed to grow in case of a severe or, say, a 10 percent increase in the OPEC price? s Well, w e will have to ^really work along the following lines. It depends on the availability of long-term develop­ ment credits and that thing, I believe, is not going to be reduced. In fact, based on our internal domestic efforts, there is evidence that we can continue rely­ ing on credit as a major source of ex­ pansion of our economic development efforts. Well, if that is going to move toward that direction, then we can use this independently of short-run prob­ lems. However, if this thing is going to persist, I mean, if it is going to affect our exports severely and if the world economic conditions are going to be as severe as they were about two years ago, it could hurt us. I cannot, therefore, give you the exact numbers on which we would al­ low imports of machinery. It will de­ pend on the complex of forces operating together and what results they will yield. To protect us against too much im­ ports, or to discourage unnecessary im­ ports, or to even trim down import growth, is the government thinking of letting go its support of the peso in the foreign exchange market? I did not understand your question. In other words, will we at this time allow a free float of the peso? This is too delicate an issue to dis­ cuss over a press briefing. Our peso is essentially a strong currency, and it has been strong for several years. I don’t see any reason why it should be the subject of speculative discussions. What about the pooling of import purchases by the private sector? Could that pooling be a mechanism for these projects of the government being offi­ cially declared or made known? In the case of public development projects, the importations are more or less pooled. Now, in the case of the pri­ vate sector, it is a simple machinery, but there is the danger of creating too great an authority over it, so that it might lead to some problems. So, I am not so sure that it should be completely pooled. In some cases, for instance, we are buying buses and so on. I think we can really get good bargains if the buses are pro­ cured altogether rather than singly. What we used to do is to allow eve­ ryone to just do this. So the mechanism would be through existing agencies that we have-in the Transport Authority or the Metro Manila Transit. We are think­ ing that the best place to do it is really in the public utility sector which affects directly the general public. Let us not go into those individual projects that are being set up by private industry because they have all the right to look for all the channels where they find it best, be­ cause one of the problems is that tech­ nology is involved, and technology is something that is not so easily lump­ ed together with others. It has to be done on a company-by-company basis. I just want to ask a follow-up ques­ tion on this oil price increase. I under­ stand that the government, at least now, has a general expectation on how much the rate of increase would be; and, on the basis of this, you have made certain projections on how the econ­ omy will work. Can you tell us the ex­ pectation?___ ' What we have been domically and I don’t have the numbers here— is that every now and then we do some exercises on input-output table basis. If the price of a particular item were to be raised by 10 percent, what is the impact on all the other sectors? Can we talk of specifically the 10 percent impact? We have been doing this for some­ time. In general, an analysis of this im­ pact shows that they don’t escalate as the general public tend to think. You know the reason why I don’t want to release these technical studies is be­ cause they become the basis of specula­ tive discussion. Maybe, in two weeks’ time, I might. Granting a 10-percent increase in the price of oil, what is the target for the increase in the consumer prices next year? This year, I think it is seven or eigh t percent. We don’t expect that price increase would be severe anymore. Last year the price increase had been, I think, within the 7 percent leyel. In fact, it was 5 per­ cent—between 5 and 7 percent. If there is a price increase of oil, obviously there will be an effect on all the others. But do you know what contributed to the excessive price increases we had in 1973? The inflation psychology, plus the great boom in our export price. That was a good effect—the boom in export prices —but when you see it in terms of indices and then in terms of total effects on the price levels locally, you get scared also. But, as I said one time to you, we ought to analyze much better these price indices. Sometimes they are good for us, although the price is rising. The future of gold CAN we turn to gold now? About the Gold Subsidy Program, I under­ stand there are opposing views between Secretary Paterno and Secretary Virata on how much subsidy should be extend­ ed to the gold industry. I understand Secretary Paterno was batting for at least an amount that would help the industry break even; but the position of Secretary Virata is that there should not be any subsidy at all to the gold in­ dustry for the reason that gold is'now 1-31 December 1976 3 THE REPUBLIC just an ordinary export commodity. If a subsidy will be extended to the industry, then subsidies to, say, sugar where the government made a lot of money in 1974, should also be given and to the other industries as well. Actually, we were discussing this in the Monetary Board and to some ex­ tent in a subcommittee of the NEDA. Because of the monetary character of gold until lately, we were talking about the desirability or undersirability of granting subsidy. The future of gold seems to be a big question mark because of the demo­ netization of gold by the IMF. They are going to sell their gold holdings and so on. On the other hand, there is the feel­ ing that gold is still a prime commodity with monetary potentials, despite the deglam orization going on, plus the fact that it is a speculative commodity which can have price changes that are as vola­ tile as any. And if we have holdings of gold, we could make good recovery of subsidies that were paid today for the future because of this. So, what we end­ ed up talking about was really whether we would guarantee to the gold pro­ ducers something in the amount of 130 million US dollars—something like that, not exactly—or, let us say, 110 million US dollars. We were reviewing the cost of production of most of the major gold producers. Incidentally, when I said one time “secondary gold producers,” I did not mean “marginal.” Somebody picked it up and thought that it was marginal. Secondary gold producers mean they produce other things besides. They have to produce copper to begin with. Primary gold producers are those producing es­ sentially only gold. So, they try to mine the gold veins and so on and they try to extract them. What policy do we expect from jjM~ eovfVnme^fnrvnM-athtuiy ?_ _ Well, let me say that the question of subsidy is still under serious consider­ ation. It is the level of the amount. And as I pointed out in a previous meet­ ing, we would not want to take care of overhead costs. And if companies are paying too high a price for their execu­ tives, they ought to weed them out. I mean, our concern is to maintain em­ ployment in these mines, and companies that are having difficulties on cost squeezes because of factors within and outside their control ought to be able to adjust. I have a feeling that much of a the so-called overhead of companies can be reduced. They have luxurious offices in some places and they have fat salaries for some executives. They ought to be trimmed down. And perhaps, fat bonus­ es for some stockholders in spite of problems. But our concern is to take care of the variable costs. This is the cost that takes care of employees and laborers who would be either employ­ ed or not. Taxation and fuel WILL taxation be tied up again on the possible increase in oil prices? Well, along this line, reviewing the tax component of oil products, and con­ sidering the President’s own injunction against luxurious consumption, I mean, unnecessary consumption of oil, we be­ lieve that one of the thoughts we are looking into is whether the taxes on these products are high enough to con­ tain this luxurious consumption. If peo­ ple get used to a particular type of price and then they resume old habits, there may be justification for additional in­ crease on this, provided that there will be enough safeguards to see to it that public utilities have a sustained utiliza­ tion at a good concession in terms of taxes. Well, I mean there may be—I am just speculating. Surely in the public utilities field, in other words. No, in general, for consumption purposes—more especially for private motor vehicles. Sir, are you implying that those for industrial uses will be maintained? Wed, you know, we have always kept a system whereby industrial uses have gotten lower taxes for industrial fuel and so on. Cooking fuel also. But the President has been worried about the traffic jams we have and so on and the wastage of our vehicles. Of course, part of this is related to our inadequate infrastructure. But you improve the road and the traffic enlarges rather than decreases. Because the number of vehicles keeps on growing. Yes. They are growing. Another point is that these roads cost a lot to construct and if gasoline is consumed that way, there must be a justification for building more of this infrastructure through additional taxes of gasoline products. Well, anyway, I am hinting to you the possibility. We are studying this, in short. In other words, we are joining the practice of other countries in forcing a decline in the consumption of gasoline by raising prices. We have to do that actually. Early this year, I remember the President said that our target is a 10 percent decline in consumption of oil products. As of September, I think the PNOC said that we only hit 4 percent. We created a cabinet committee to implement the writing of a five-year plan, ten-year plan and the perspective plan. We have been meeting. Our tech­ nical committees are working. We ex­ pect that all these things will be finished by early February. By March or April, we hope that the President will be able to approve the plan or at least act on our recommendations so that the plan can be made effective for 1978 to 1982 for the five-year plan and another one up to 1987. This committee is under the chairmanship of the NEDA but it involves the total government machinery. What are the highlights of this de­ velopment plan? Well, it deals with the'total national and economic development plans and it involves the total machinery of the gov­ ernment, I mean, all those implement­ ing divisions as well as all the agencies tied up with the NEDA. How does it comply with the re­ quired emphasis on export orientation rather than imports? It will be a combination, because our economy is built up from within, and there is a lot of potentials for ex­ ports. So, in the case of tax measures, we aim to really raise the revenue to a GNP ratio of about 15 percent or 16 percent in a few years. The purpose is not to tax existing income, but to be able to see to it that we capture addi­ tional income flowing to the economy in support of basic premises related to With escalating prices of real estate in Manila, use oj land is being maximized. basic cleanliness, maintenance of gov­ ernmental operation and employment, too. And when people begin to see this, they will be more surprised when they take a look at the countryside with new roads being improved. Have any of you gone to Baguio? The road is very beau­ tiful. And the road going up north. These are things that are not known because we see only what is immediately before us. But actually, a lot of improve­ ments are going on all around the country, continuously without letup. On housing and export IA/OULD it be correct to say that the VV government is going on without imposing new taxes and not on existing income? New sources of taxation may be a better way of looking at it, including those that would discourage affluent consumption. So you will tax consumption? Oh, yes. Not income. Well, they are both in some cases. Let me point out to you one of the problems we are facing, the housing program. We have scanned around and taken a look at all the possibilities and it seems to us that there is reason to sug­ gest some sort of a payroll tax to be paid by employers to support the total housing program. We have heard that the private sector is more worried about General Order No. 47-type order, which would require them to provide hous­ ing when they grow large. But the gov­ ernment is devising a system of expan­ ding the housing program. We don’t know how much it is—1 percent, 1-1/2 percent of payroll by the employer. Possibly it could be a general tax; it could be a special type of providential arrangement, in addition to existing re­ sources. We are studying this. And we believe that this could raise resources for ^lbw-cost housing of a iubstaittial character. And currently the National Housing Authority is really working on programs of mass housing in Metropoli­ tan Manila based on what might be call­ ed housing estate concept. That is the high-rise type of housing. We don’t want to talk of high-rise, but we believe that because the price of land has been so expensive in Manila and because of our system of patch ownership of property, it would be es­ sential to maximize the use of land in the areas where we have government consolidated landholdings which are still available. In the meantime, this will give us time. If we work on this con­ cept it will give us time, while working on the consolidation of other land areas. We believe that some of these hous­ ing projects should be in places where people are around, not in places where people are not around, because they create demand for additional fuel con­ sumption, transport, dislocation of fam­ ilies, dislocation in the rearing of chil­ dren, family problems and so on. Do you mean land consolidation in areas where there is already population? Yes. Sir, I understand that the level of domestic savings which must be in­ creased through measures like taxation will not be enough to propel the indus­ trialization of the economy and so the government is looking at more foreign investments and more foreign borrow­ ings to finance this. Well, I have said this in many in­ stances, because you know if we are to attain the targets of growth that we have set for ourselves, our capability has to be assisted. That is why we have a pro­ gram of preparing more projects for presentation so that we can borrow from the World Bank and from the Asian Development Bank, and so that we can package projects from bilateral sources, like Japan, United States and Australia. For instance, negotiations have been made so that we can improve and build roads and highways. As I understand it we wfil get a $95-million loan from the World Bank which is $10 million more than what we had originally thought would be needed. This could mean a larger coverage of the road program. Is this nationwide? Yes. For the improvement of vari­ ous roads. Will there be new policies regard­ ing foreign investments and liberaliza­ tion of foreign loans? Our policies are there and we are expanding the facilities for attracting foreign investments. We are also study­ ing the creation of an Export Processing Zone in the Visayas situated in the Mactan Islapd where we have a huge ai-porU We are studying this. It will be Based the export-labor intensive type activity. Cebu is best located for this. Besides, they have power, I think. Yes. The virtue of this proposed project is that it is in a place where a huge concentration of skilled manpower is located. Secondly," it is located in a secondary city that could be a counter­ pull, away from Metro Manila. And there is sophisticated infrastructure, the most sophisticated in the Visayas. The airport is very sophisticated and large; it can carry additional expansion, and export-oriented activities based on light manufacturing industries could be best located there. Water is a problem there but I don’t think it is going to be too great of a problem. □ 4 1-31 December 1976 Laws THE REPUBLIC Stimulating Samar THE President last November 17 gave the go-signal for the implementa­ tion of the Samar Integrated Rural De­ velopment Project (SIRDP) by directing the Cabinet Coordinating Committee on Integrated Rural Development Projects (CCC-IRDP) of the NEDA to oversee the project and by appropriating P7 millionfor its funding. The go-signal, under Presidential Decree No. 1048, makes the SIRDP the fourth integrated rural development project of the national government un­ der the direct supervision of the CCCIRDP. The other three are the Bicol Rive/Basin Project, Mindoro Integrated Rural Development Project and the Ca­ gayan Valley Integrated Development Project. The CCC-IRDP as created in Letter of Instructions No. 99 dated July 10, 1973 is composed of the secretaries of agriculture and public works, transpor­ tation and communications, as chair­ man and vice chairman, respectively, with the secretaries of finance, public highways, natural resources, local govern­ ment and community development, ag­ rarian reform, and economic planning as well as the representative of the Of­ fice of the President, as members. The local government secretary shall be the Cabinet committee coordinator for the SIRDP and shall act for the chair­ man of the Cabinet Coordinating Com­ mittee in all administrative matters. Under the decree, the Cabinet com­ mittee is charged with the planning and implementation of all rural development projects. To effectively carry out rural devel­ opment projects, the President ordered that the following policies be adopted: □ To integrate national and local government programs and projects with­ in its jurisdiction, and □ To decentralize the planning and implementation of all rural develop­ ment projects. The President has also placed the SIRDP Office under the supervision of the Cabinet committee, through the Cabinet committee coordinator, for co­ ordinating the planning and implemen­ tation of the project by the implement­ ing national and local government agencies. The SIRDP Office shall be headed by a project director who shall main­ tain a technical and management staff to help him perform his duties and responsibilities. It shall have field offices in North­ ern, Eastern and Western Samar which shall be headed by project officers who shall be appointed by the project director. The President appropriated from the National Treasury funds P5 million for the SIRDP and its three field offices and P2 million for the CCC-IRDP. In a related development, the Presi­ dent created the town of Tagapul-an in Western Samar “to achieve a closer supervision in the execution of the developmental programs of the locality” and, at the same time, ensure peace and order in the area. Under Presidential Decree No. 1047, Tagapul-an is created out of the town of Almargo. However, the creation ofTagapul-an does not affect in any manner the legal existence of the mother town of Almagro, according to the decree. The seat of government of the new­ ly created town shall be located in barangay Sugod. Pending the appointment by the President of the officials of Tagapulan, the present elective officials of Al­ margo shall perform their duties as such in the newly created town and shall hold office until their successors shall have been elected, “unless sooner removed by the President.” Under PD 1047, the President shall transfer to Tagapul-an its equal share in obligations, funds, assets, and other pro­ perty from Almargo, upon recommenda­ tion of the Commission on Audit. □ Muslim housing THROUGH Letter of Instructions No. 481, the President last November 24 ordered the Budget Commission to release P9 million for the development of the Sahaya Housing Project ary| re-i settlement projects in Mindanao. The amount, to be taken from pre­ viously unappropriated funds of the Re­ habilitation and Development of Min­ danao Program, is broken down as fol­ lows: Sahaya Housing Project, P7.5 mil­ lion, and the various resettlement pro­ jects, Pl.5 million. The Southern Philippines Develop­ ment Authority shall undertake the de­ velopment of the Sahaya Housing Pro­ ject. Specifically, it shall develop the project’s water, electrical and sewerage systems, construct 200 dwelling units, barangay community facilities, and oth­ er social infrastructures, and widen and upgrade the access road. It shall also undertake the improve­ ment and rehabilitation of resettlement projects in Mindanao, including those in Tawi-Tawi, Jolo, and Marawi City. The President directed the Depart­ ments of Public Highways and Public Works, Transportation and Communica­ tions to help in the development of the Sahaya infrastructure projects and to earmark money for the project in their 1977 budgets. In ordering the release of P7.5 mil­ lion for the Sahaya Housing Project, the President pointed out that the hous­ ing project “not only conforms with the human settlements approach in commu­ nity development but also preserves the lifestyle of our Muslim brothers.” In a related development, the Presi­ dent ordered five government agencies to expand, upgrade and integrate the development of Maharlika Village “so as to make it truly a symbol of our na­ tional aspiration for unity in diversity.” Maharlika Village was established through Proclamation No. 1217, dated January 3, 1973, to serve the needs of the resident Muslim population of Me­ tro Manila. It is located at Bicutan, Taguig, Metro Manila. In Letter of Instructions No. 482, the President ordered: □ The National Housing Author­ ity, as project administrator, to provide the cooperating agencies detailed plans of their participation and to advance to them funds needed to accomplish their participation, and undertake housing development needed in the project; □ The Department of Public High­ ways to undertake road construction and land development within the .pro­ ject, including landscaping and develop­ ment of parks and recreational areas; □ The Department of Public Works, Transportation and Communica­ tions to construct all basic community amenities, such as schools, clinics, mul­ ti-purpose community building; □ The Metropolitan Water and Se­ werage System to construct the water system, including deep wells and water reservoir, and sanitary sewerage systems that will lead to the development of a bio-gas systenvand " t □ The Budget Commission to give due course to the request for funds by the participating agencies and to effect the needed transfer of funds from the cooperating agencies to the NEA to li­ quidate its cash advances. □ The longest parks THE President last November 18 or­ dered Natural Resources Secretary Jose Leido Jr. to prepare a proclama­ tion which would set aside a belt of 25 kilometers on each side of the Marikina-Infanta Road as a national park and forest reserve. To speed up implementation of the order, the President directed that pho­ togrammetry be used in surveying the areas and in delineating boundaries. Presidential Decree No. 399 issued in 1974 declared all lands of the public domain within a strip of 1,000 met­ ers along any existing, proposed or on­ going public highway or road outside existing towns, cities or settlements, withdrawn from settlement or sale until the government has made a comprehen­ sive and integrated land use and devel­ opment plan for such lands. The President’s directives are part of the government program of public land utilization, forest conservation and the establishment of wildlife reserva­ tions and sanctuaries. • Just recently, the President, through Proclamation No. 1578, declared Calauit Island, Busuanga, Palawan, a game preserve and wildlife sanctuary. He has also issued Proclamation No. 1594 declaring an area in Ternate and Maragondon, Cavite, and Nasugbu, Batangas, a national park, game refuge and bird sanctuary. □ Planners' community GOVERNMENT employees in Met­ ro Manila will soon enjoy the ben­ efit of low-cost housing in planned com­ munities. President Marcos last Decem­ ber 6 ordered the Government Service « r Insurance System (GSIS) to make avail­ able its 60-hectare land at barrio Kamias, in Antipolo, Rizd for the development of low-cost housing Manila government workers. The Presi­ dent’s directive under Letter of Instruc­ tions No. 483 is in line with the govern­ ment’s policy to develop housing for government employees in Metro Manila. The Kamias housing project development is expected to provide the government, particularly agencies involv­ ed in urban development planning, op­ portunities to apply and adapt ecologi­ cal systems to community living. To carry out the project, the Presi­ dent likewise directed the GSIS to make available money for the construction of housing units in the project and to ■ advance to the participating government agencies their fund requirements to un­ dertake specific tasks until such funds can be made available to these agencies by means of their respective budgets, budgets. Under the LOI, the National Hous­ ing Authority is made responsible for the construction of housing units of dif­ ferent designs. The NHA general man­ ager will be the project administrator. The President also ordered: 1. The Department of Public High­ ways to undertake the project’s land de­ velopment and road construction, includ­ ing landscaping and the conversion of the lagoon and other areas into parks and recreational facilities; 2. The Department of Public Works, Transportation and Communi­ cations to construct all basic commun­ ity amenities, such as schoQls, clinics, and a multi-purpose administrative build­ ing, and develop wells in springs; and 3. The Metropolitan Water and Sewerage System to construct water and sanitary sewerage systems that will lead to the development of a bio-gas system. These government agencies, includ­ ing the GSIS and the NHA, will consti­ tute a committee to be called “Bagong Nayon Project Committee,” under the direct supervision of the Metro Manila government. The committee will plan and develop the housing project as a pil­ ot project for the application of ecolog­ ical systems in community living. It is authorized to employ professional ser­ vices, such as appropriate consultants and project managers. □ THE REPUBLIC Metro Manila 1-31 December 1976 5 BRIEFING □ Rosalinda G. Roxas A short tour of Metro Manila exhibits THE current festival of visual arts in Metropolitan Manila started last September 27. Under the patronage of the First Lady and Governor of Metro­ politan Manila, Mrs. Imelda Romualdez Marcos, the festival’s start was held to coincide with the International Mone­ tary Fund-World Bank meetings. During most of last October, residents and visitors of Metro Manila were regaled with top-flight music, dance and drama. International stars like the Bolshoi Bal­ let, the Australian Ballet, Margot Fon­ teyn, Montserrat Caballe, Ivan Rebroff and Van Cliburn were affectionately re ceived by the Manila audience. Not to be outdone, exhibition halls glowed with art objects from Europe, the United States, China and Egypt. Visitors had a good glimpse of Philippine traditions through such exhibits as the Kulay Anyo ng Lahi (public art paintings of estab­ lished artists in seven strategic spots of Metro Manila, a project of the People’s Artists of the Philippines for the beauti­ fication program of Metro Manila); Con­ temporary Art of the Philippines (at the MuseongPansining ng Maynila); Likhang Bata (some 1,000 paintings by children three to twelve years old); Philippine Costumes and Dolls (exhibit of Philip­ pine dolls, tribal costumes, the evolution of the Filipina dress and barong Pilipino and Philippine embroidery); the Ilocano Museum and Philippine shells, butterflies and fishes at Nayong Pilipino; Philippine Pre-History and Ethnology at the Na­ tional Museum; the Philatelic collection and the Animal Museum at the Sining Kayumanggi. Many of these exhibits are still open. They provide a rare opportunity ~ the visual delights of our culture—of the world. Below, The Republic presents a mini-tour of the Manila exhibits. Portraits by Filipino Artists FIVE hundred paintings by Filipinos coming from private collections as well as contributions of the artists them­ selves are on exhibit at the Museum of Contemporary Art (Museong Pansining ng Pilipinas). Formerly the Elks Club Building, the two-story edifice has been rebuilt to house the works of Filipino painters with the hope of preparing them for international grounds. It answers the long-standing need for a commodious gallery for their art. The five galleries of the museum are: a) Backgrounds and Departures, b) Ambiguous Figuration; c) Contem­ porary Representation; d) New Abstract­ ion and e) Visual Propositions. The parti­ cipating painters include: Hernando Ocampo, Tabuena, Ang Kiukok, Ray Albano, Arturo Luz, Federico Aguilar Alcuaz, Benedicto Cabrera, Victorio Edades, Roberto Chabet, Lee Aguinaldo, Jose Joya, Cesar Legaspi, Anita Magsaysay—Ho and Vicente Manansala. Ray Albano, director of the Mu­ seum, said that the place is most ideal for showcasing the works of local artists. “It’s the first time we have a place like that which really fits,” he explained. “White walls, high ceiling. It is intimate for a gallery, not at all cold or business looking.” How many people come to the gallery every day? “Around 2,000 to 3,000 a week, paying or nonpaying,” he answered. “There is a possibility that this will become a permanent site for our art shows.” “The museum gives artists a new attitude,” he further said. “It makes him think bigger, literally, it makes him think of scale. It makes him think sensitively because of the beautiful space, the am­ bience of the gallery.” Egyptian Art through the Ages THE exhibition of Egyptian art at the old Legislative Building started last September 27 and will last up to March 31, 1977. It consists of cultural treasures from the dawn of Egyptian civilization some 5,000 years ago to the products of Islamic civilization. Sponsored by the Egyptian Antiquities Organization in Cairo, Egypt, the art treasures-100 pieces covering 5,000 years, from pre­ historic 4,000 BC to the 18thcentuiywere brought to the Philippines through the encouragement of the First Lady. Mrs. Marcos was impressed by the col­ lection during her yisit to Egypt last year. The exhibit covers the Pharaonic or traditional art which rose from the ritual and funerary needs as conditioned by the natural habitat of the people; the Graeco-Rom an which is influenced by Greece and Rome; the Coptic or Christ­ ian art; and the Islamic or EgyptianIslamic art. Among its major attractions are the canopic urns which were used to hold the ashes of the dead (one of them the coffin of Prince Rameses), centuries-old icons, representations of the Pharaohs, life-like facsimile of Alexander the Great and various antiques. One is intrigued by the prominence of several artistic motifs, the bird and the boat motifs, for in­ stance. In Egypt, the boat is the vehicle of the sun-god as he sails across the ocean-like sky. Furthermore,Egypt grew out of a civilization watered by the lower reaches of the Nile River. Travel and feasting were held on a boat and the ancient kings had special royal barges which popular imagination has closely associated with Cleopatra seated majes­ tically on a magnificent barge leisurely moving on the Nile River. Examples of the bird motifs are the horus, falcon, ibis, geese, peewit, flamingo and vulture. For the Egyptian, the horus and the ibis sym­ bolize occult powers. With Ambassador J.V. Cruz as overall chairman, the Egyptian exhibit is ma­ naged by Dr. Muhammed Saleh, curator of the Egyptian museum in Cairo. Saleh had managed similar expositions in Eu­ rope, the last one in 1973 at the Univer­ sity of Heidelberg. He is assisted by Mrs. Rosario B. Tantoco, curator of Museum Education at the National Museum. According to Mrs. Tantoco, there were 10,000 people during the first day of the exhibit She added that an average number of 5,000 people visit the exhibit each day, the bulk of whom are paying visitors. Dr. Saleh when asked why the mu­ seum is dark countered that this is to create an atmosphere of mystery. Among the 100 Egyptian artifacts, which are the most valuable? Saleh mentioned four: the triad of the Mytefonus, builder of the third pyramid which is 4,600 years old; the family statue, which he said he particularly like; the statue of Tutankhamen and one of • the Graeco Roman pieces. One of (he main attractions, he added, is the coffins or canopic jars which are^used for the ashes. He said everyone wanted to see a mummy. And why didn’t he bring one along? He explained that a mummy is fragile, easily broken and affected by the weather. He observed that museum goers sometimes do not believe that what they see are genuine. “Many think it’s an imitation,” he averred. What are his plans after the exhibit closes in March? “Maybe, we’ll send this to Indonesia, Australia or China,” he answered. Archeological Finds of China ALSO exhibited at the Old Legislative Building from October 1 through December 31 from 9:00 A.M. to 10:00 P.M. daily are artifacts representing 6,000 years of Chinese civilization, from the pottery of the Neolithic age to the porcelain of the Mongols in the 14th century. They form only a fraction of the antiquities unearthed since 1949. Most came from discoveries during China’s cultural revolution. They result from surveys and preservation work car­ ried out at many important sites and ancient tombs. The artifacts present a bold outline of the development of his­ tory and culture in ancient China. There are magnificent stone and bronze vessels and images dating from a thousand or fifteen hundred years before Christ showing a highly developed cul­ ture that was already existing at that time. The Ming and Ching Dynasties por­ celain are considered superior to any other ceramics known around the world. Intricate flower designs and landscape scenes characterize the porcelain of the late Ming and Ching Dynasties. Paintings from the Sung Dynasty (900-1200 AD) are the richest in the art of painting. Chinese painting is essentially a linear art, composed of lines-horizontal, thrusting, winding, swirling, scaling. This is calligraphic art, a direct off-shoot of the traditional Chinese art of character writing. Philippine Costumes and Dolls THE new Mercury Building at T.M. Kalaw St in front of the Rizal Park houses an exhibit of Philippine dolls, tribal costumes, the Filipina dress and barong Pilipino, and Philippine embroid­ ery. Inaugurated last October 1, it is a permanent display. The viewer grows acquainted with the rich cultural heritage of the Philip­ pines through the miniature world of The miniature world of dolls. dolls, depicting the history, games, folk­ lore and folk dances of the Philippines including the evolution of national cos­ tumes. The doll collection, first started in 1953 as the Alto Doll Museum by Dr. Aleli Guzman Quirino, was donated to the Museum of Philippine Costumes. Bicentennial Exhibit THE newly-constructed Metropolitan Museum of Manila located at the Central Bank Complex opened October 2 with the Bicentennial Exhibit of early American paintings and Western Euro­ pean paintings on lo.an from American collections. The museum is vast and stately, with imposing ceiling and spa­ cious floors which can readily accommo­ date murals and large-scale sculptures. Consisting of about 100 paintings, a few drawings and prints, and six sculpt­ ures, the Bicentennial show follows the popular notion of art-that it must be sensuously pleasing, charming as well as relaxing. In some ways, the art exhibits fill up the cultural vacuum in the lifeways and thoughtways of the masses, giving them a taste of artistic standards. It would be quite a change from the superstar spectacles, the basketball craze and the trivialities of fashion, fads and festivi­ ties. It is to be assumed that by extend­ ing the products of artistic traditions within the reach of'the Filipino people, the democratization of culture would inevitably be hastened. □ THE REPUBLIC The Nation PROGRESS REPORT □ Juanita G. Trinidad The classroom is a development arena EDUCATION is an important and ur­ gent component of nation-building. In his Notes on the New Society, Presi­ dent Marcos observes that “the most im­ portant field for the Internal Revolu­ tion is that of education and culture. And here we must admit numerous and grave problems. Educational reforms will be the work of not one but of several generations working together.” Thus, the upgrading of the country’s educa­ tional system enjoys a high priority in the overall policies of the government. Efforts are being continuously under­ taken to integrate educational policies and goals with national development programs. Education for national develop­ ment was pinpointed for the first time in the 1969 report of the Presidential Commission to Survey Philippine Educa­ tion, an agency created by the Presi­ dent in December 1969. The report stressed, among others, new directions and new patterns through new struc­ tures to systematize educational policymaking and administration; planned eval­ uation and innovations to maximize effectivity and efficiency. From the beginning, the New So­ ciety is committed to the principle that quality education is an investment in the future of the nation. The Depart­ ment of Education and Culture (DEC), in fact, gets the biggest slice from the overall national budget—Pl.6 billion last fiscal year. And right after martial law was proclaimed, the President issued PD 6-A, otherwise known as the Educa­ tional Development Decree of 1972, which subsequently led to the formula­ tion of the ten-year education develop­ ment plan. The plan restructured the country’s educational system so as to make it more responsive to Philippine needs and introduced reforms and chan­ ges that focus on the relevance of educa­ tion to national growth. Emphasis on Development Skills INNOVATIONS: As a means to bolster the administration’s new educational orientation, a number of innovative ap­ proaches have been adopted to upgrade the educational system. Being an agricultural country, educ­ ational reforms primarily put emphasis on producing technicians needed in agri­ culture and industry. In this regard, the Educational Development Project Implementing Task Force (EDPITAF), an office under the DEC Secretary, is coordinating with the Philippine Council for Agriculture and Resources Research (PCARR) in developing agricultural schools and in implementing the agri­ cultural education programs. This in­ cludes the strengthening and expansion of two agricultural universities and 13 agricultural high schools, 11 of which are members of the PCARR-coordinated na­ tional agricultural research network. Along the same vein, the Youth Educating the masses through the adult education program. Civic Action Program (YCAP) requires at least a semester of civic work before a student is allowed to graduate from college. As a result of this program, the youth are being involved in mean­ ingful community development activi­ ties such as reforestation, food produc­ tion, cleanliness, sanitation, beautifica­ tion and adult education work. Moral virtues and duties of citizenship are now more vigorously stressed; manual work is being dignified. Through priv­ ate and public school teachers, con­ cepts like the land reform program, cooperative education, drug abuse pre­ vention, population control and envir­ onmental pollution are being dissemina­ ted by YCAP volunteers to rural folks. Encouraging Vocational Education NCEE: To further improve the qual­ ity of education, the President is­ sued PD 146 in 1974 requiring all grad­ uating students from high school to pass an entrance examination for admission to any four-year college course. The decree limits entrance in college to the more capable students. At the same time, it helps channel students into such vo­ cational, technical and technological courses which are needed in economic development but which are not popular among the youth. For those unable to pass the Na­ tional Collegiate Entrance Examination (NCEE), a plan has been conceived by the DEC wherein studegts will still be allowed to enroll in college, provided they do not intend to get degrees. For those seeking degrees in this program, they will have to undergo another examination. With the implementation of--the NCEE, more students are now enroled in vocational and technical courses in both the state and private schools. Not­ ing the big shift from nontechnical cour­ ses to vocational-related subjects, DEC Secretary Juan L. Manuel said that the trend “is a sign that students now realize it is easier to get employment after finishing technical courses.” Currently, the National Education Testing Center which supervises the NCEE is developing a test that would eliminate the present practice of col­ leges and universities requiring stu­ dents to take entrance examinations even after passing the NCEE. Unlike the ones given in 1974 and 1975, this year’s examinations are neith­ er scholastic aptitude nor proficiency test but a test designed to measure the students’ potential needed for learning in college. It is expected that some 400,000 high school students will take the 1976 NCEE. A work-oriented curriculum is also being enforced. Aside from strengthen- ■ ing the implementation of regular curri­ culum requirements, new subjects are adopted in line with the New Society’s, development programs. Education now Sec. Manuel: Restructure Education is more realistic and the teaching of the New Constitution as a social subject is being required, including subjects like pollution, population control and land reform. The DEC proper itself is in­ volved in ambitious programs like popu­ lation education, applied nutrition, Masagana 99 rice production and Greet Revolution. The palpable expansion of our fu^d production has been the result of tue Green Revolution program which in­ cluded schools all over the country. Last schoolyear, the DEC netted P70.000 worth of harvest from backyard lots, livestock and fishery projects. ' Because of these breakthroughs, a leading educator commented that “we have made great advances in the imple­ mentation of a work-oriented curricu­ lum. We have succeeded in opening the minds of the students on the possibil­ ities of our natural resources and incul­ cated in them better work attitudes.” Pilipino in Schools Bilingual education: The use of English and Pilipino as media of instruction in all schools began last year. In grades one and two, the verna­ cular used in the locality or place where the school is located is the auxiliary me­ dium of instruction. The use of the ver­ nacular, however, is resorted to only to facilitate understanding of the concepts being taught through the prescribed medium for the subject, English, Pili­ pino or Arabic as the case may be. Bilingual education covers two phas­ es. The first phase started last school­ year through schoolyear 1977-78. It will be the transition period in the use of Pilipino as the medium of instruction for social studies, social science, work education, character education and health and physical education. English remains the medium of instruction for all other courses. Mass Education. Project Impact is a devised system of mass primary education calling for programmed teaching in levels one and two where teachers use specially prepared materi­ als and, in the higher elementary levels, community human resources as high school students, home tutors, parents, and skilled resource persons are enlisted to provide instructions. An interesting feature of this sys­ tem is the use of older students to as­ sist younger students. Learning is through modules or topics, each module covering the amount of instruction which normally takes one to two weeks to master. There are very few set class­ es. Students may drop out and reenter at any time. Here, the education that is being developed is non-formal, that is, without the conventional classrooms, teachers for every subject and school­ building or textbooks. A community learning center takes the place of the usual schooL No Grades. The Bureau of Elemen­ tary Education has a policy called Con­ tinuous Progression which is still elicit­ ing rem arks and criticisms as when it was formulated four years ago. In this pol­ icy, the pupils in elementary and high schools are studying and are being taught according to their pace of learn­ ing. In this non-grading scheme, the students- are individually observed by the teachers concerned and their poten­ tials encouraged and developed. Likewise, the bureau is of late bat­ ting for the adoption of a new kind of curriculum. Called Curriculum Continu­ um, its most significant features include: □ Schooling extends throughout the whole year wherein a child is ad­ mitted anytime he is old enough to be in school, say, three or four years old. □ Vacation period may be sched­ uled at anytime agreed upon by the learner and teacher since the former is involved in planning his activities. To achieve this, schoolchildren will be as­ signed to a team of teachers rather than to a grade under one mentor. □ There would be no failure since every child would be pursuing his own particular goals at his own rate of learn­ ing. Performance is judged in terms of his own progress, not based on a group standard set. □ The practice of dropping out is eliminated. The child can resume where he left off when he returns to school. □ Annual promotion is done away with. It is replaced by a continuous di­ rection toward success and growth. As a result, rating cards are eliminated. □ Sources of the curriculum con­ tent are from anywhere, anytime. The venue of learning is everywhere, not just in school. Restructuring the College Program HIGHER EDUCATION: Higher edu­ cation is also being restructured. At present, the DEC is drawing up a tenyear development plan to maximize the role of higher education system in the country’s development. The plan, which will'be completed Th Maul* BMP, ■■ iii~ be incorporated into the overall devel­ opment program being prepared by the National Economic and Development Authority. The plan will give emphasis on the private education system in the country in accordance with a Presidential direc­ tive to look for a more innovative and lasting solution to the financial prob­ lems of private schools. Once completed, the plan will become the basis for pol­ icies on higher education by the Na­ tional Board of Education such as the dispersal of schools in Metro Manila and the improvement of opportunities for higher education in the rural areas. In upgrading Philippine education, the teaching population has not been overlooked. In recognition of the vital role they play in nation-building and as an incentive to raise their morale, PD 1006 was issued by the President recent­ ly to professionalize the teaching pro­ fession in the country. As a whole, education nowadays is no longer solely’ for improvement of the mind but of the spirit and muscle as well. With the innovations, changes and incentives, what then is projected in edu­ cation over the next 25 years? An education official puts it this way: “Even as the formal system continues to grow, educators foresee an expan­ sion of the nonformal system. Voca­ tional, technical and scientific courses will be top priority. College education will be extremely selective. Methods of instruction and curricula content will be locally-oriented. Private industry will share a larger burden of the costs of education. Bilingualism is expected to be fully accepted. Many of our educa­ tional programs will be created around regional needs and priorities.” In terms of highly-skilled profes­ sions, it is foreseen that professionaliz­ ation of management in the Philippine setting will be firmly entrenched. As a matter of fact, it is predicted that Filipino talents will be among our most vital exports. Computerization will be pervasive. Planning and coordination between the government, the public and the private sectors will be close and continuous. □ -31 December 1976 7 PROGRESS REPORT □ Marcos Agayo The Philippines is getting healthier HOW healthy is the Philippines? There are no known exact gauges of a population’s state of health. However, the indicators in current use are: the nature and extent of disease in the popu­ lation and the occurrence of vital events (births and deaths). Using these, the Department of Health (DOH) says that the state of health of the Philippines today is “satisfactory and continually improving.” Nature of disease problems. Communicable diseases have always been the major disease problem of the Philippines. Fortunately, the impact of these diseases on our population has been significantly reduced over the years. In 1923, when the problem for the first time could be well defined statistically, communicable diseases accounted for 75.6 percent of all deaths. In 1956 the proportion was reduced to 54.7 percent; and in 1974, further cut down to only 42 percent Deaths caused by communicable diseases has been declining more than the relative rate of incidence. According to the latest (1974) statistics, five of the ten leading causes of death in the Philip­ pines are communicable diseases; namely, pneumonia, tuberculosis, gastro-enteritis, bronchitis and tetanus. These ranked, in 1974, first, second, fourth, ninth, and tenth, respectively. The other leading causes of death in 1974 were diseases of The state of health of the Philippines is satisjaciury «„u ^^uiuuuy improving. the heart (third), diseases of the vascular system (fifth), avitaminosis and other nutritional deficiency diseases (sixth), malignant neoplasms or tumors (seventh). At present, communicable disease problems come from three distinct di­ sease groups; namely, respiratory disea­ ses, gastro-intestinal diseases, and viral diseases. Respiratory diseases. These account­ ed in 1974, for 22.2 percent of all deaths, for 52.6 percent of all communi­ cable disease deaths, and for the illnesses of 0.3 percent of the total Philippine population. Of this group, respiratory tuberculosis had been the leading killer of Filipinos until about 20 years ago. Lately, pneumonia (all forms) has been responsible for more deaths than any other disease, causing 16.2 percent of all deaths and 72.3 percent of all in­ fants’ deaths. Gastro-intestinal diseases. These were responsible, in 1974, for 6.0 per­ cent of all deaths, for 14.2 percent of all communicable disease deaths, and for the illnesses of about 67 persons per 1,000 of the population. The incidence of gastro-intestinal disease group rises during the rainy sea­ son, especially during the months of July and August. Slight rises of “summer diarrheas” of infants and young children may occur during the hot months. These diseases are closely tied up with poor environmental conditions. Outbreaks of­ ten occur in rural areas where food and water sanitation is lacking. Viral diseases. The m$or members of this group are influenza, measles, rabies, poliomyelitis, varicella and he­ morrhagic fever. They have accounted for 2.5 percent of all deaths and 6.0 per­ cent of all communicable disease deaths in the country. The major impact of this disease group occurs in morbidity; it ac­ counted for the illnesses of 7.8 persons per 1000 population. Of these viral diseases, influenza leads in morbidity and mortality. It caused about 1.0 percent of all deaths and 2.5 percent of all communicable di­ sease deaths in 1974. Viral diseases are mainly childhood diseases; and while in­ fluenza attacks all ages, deaths are con­ centrated among the young. Communicable disease traits. Two relatively new diseases of which there have been recent outbreaks de­ monstrate some basic facts about com­ municable diseases. One—Philippine he­ morrhagic fever-illustrates, according to Director J.J. Dizon of the Bureau of Health Services and Disease Control, “the trend of viruses to multiply and develop into more types and strains and to increase in pathogenicity (capability of causing diseases) possibly through mu­ tations.” The other “new” disease, cho­ lera el tor, has shown that “complete eradication of communicable diseases is quite difficult to attain-that while a di­ sease may be absent for some time, the introduction of a force that would trigger off into action the many other factors of disease causation would result in its reappearance.” Hemorrhagic fever first occurred in the Philippines in 1954 sporadically, then in localized outbreaks; the disease has become endemic (prevalent in a particular locality or people) with a ten­ dency to break out into an epidemic (rapid spread of a disease) every five years. Preliminary investigations point to the household mosquito as the carrier of hemorrhagic fever virus. Cholera el tor broke into the Phil­ ippines despite the application of all known preventive and quarantine mea­ sures. It was originally confined in the South Celebes. It then spread to South and Southeast Asia before it came here. Director Dizon notes that: “Cholera el tor is basically a poor man’s disease inti­ mately related with poor environmen­ tal conditions.” The problem of communicable di­ seases, as Dizon sums up, is that: “Com­ municable diseases are diseases of a young population and of a poor environ­ ment As that population tends to grow older as shown by an increasing life ex­ pectancy, and as the environment tends to improve, then the problem corres­ pondingly becomes less and less. This principle has been excellently illustrated in our country, as shown by the close correlation between the increasing aver­ age life span of Filipinos and the im­ provement of environmental sanitation on one hand with the decline of the main impact of communicable diseases on the other. Declining Death Rates. Indicating an improvement in health services, espe­ cially among newborn babies and mo­ thers giving birth, the death rate declined by 61.6 percent, from what it was 50 years ago to 6.8 per 1000 in 1974. The decline is particularly notable among newborn babes and mothers giving birth. During the last 25 years, the crude death rate declined by about 38.7 percent while the infant mortality rate declined by about 58.3 percent and the maternal mortality rate, by about 56.8 percent A young population. The declining death rate has resulted in an enlarged youth population. The Philippine popu­ lation in 1974 was estimated to be about 41.5 million. And it has been noted that the population is essentially young; 45 percent are under 15 years of age and are equally distributed between the sexes. While Malthusian nightmares are engendered by this expanded youth population, it shows how far the battle against disease has progressed. SPREADING HEALTH SERVICES. Since most of the population cannot afford private medical care, the task of providing health services to the majority has fallen upon the DOH. The public health system consists mainly of Rural Health Units (RHUs) and city health department clinics. Cases needing hospi­ talization are referred to city or provin­ cial or town hospitals. Cases needing more specialized care are referred to a regional hospital or to Metro Manila. Keeping up with a geometrically expanding population provides a con­ stant strain on the capacity of govern­ ment services. For their part, health planners have had to minimize the cost of medical services while increasing popu­ lation coverage and making maximum use of technology and resources. There are now 762 government and private hospitals and 1,605 Rural Health Units in the country. Health manpower con­ sists of 52,783 or an average of one phy­ sician per 3,222 persons. Metropolitan areas enjoy a better ratio of services while the ratio for rural areas falls “far below the average”. To help orient the Philippine medi­ cal curriculum to rural indigenous needs, the following, among others, have been proposed: locating undergraduate medi­ cal training facilities in predominantly rural areas and granting “preferential fis­ cal treatment” to medical schools ac­ cording to how many of their graduates practice in the Philippines. To be able to provide adequate health services to the rural population, the DOH has formulated a program for upgrading and expanding its rural health infrastructure. This program includes: 1) the establishment of health stations in barrios or districts remote from the local RHU which is usually located in the town proper; 2) the construction of new RHUs and renovation of existing ones; and 3) the provision of jeeps for transportation of RHU personnel. The present accent of health services is preventive rather than curative. The DOH, consequently, is carrying out an expanded immunization program, for­ mulating more environmental sanitation programs, and accelerating its part in the government’s nutrition program. Immunization. The priorities are directed to mass immunization of infants 3-14 months old and to primary grade school entrants, against tetanus, diptheria, pertussis, and tuberculosis. The pro­ gram will soon include immunization against other preventable diseases as soon as technical and operational cons­ traints will allow. Most of the vaccines used in immu­ nization programs were either donated by other agencies or imported. Efforts in the way of research, experiments, and appropriate allocations are being done to produce serums locally. Eventually, self-sufficiency in vaccines will be at­ tained via accelerated production by the Alabang Laboratories of the government. Immunization teams visit each of the 40,000 primary schools in the coun­ try twice a year. The first visit is made in June or July when schools open. The second visit is made in January or Feb­ ruary, after an interval of six months from the first round. Each immunization round, lasting for about four weeks, en­ sures that the vaccines used retain their potency despite lack of refrigeration facilities in most rural areas. An information campaign precedes every immunization round to motivate parents to submit their children for im­ munization. To ensure sufficient cover­ age, moreover, basic immunization was declared compulsory for all children eight years of age or younger. Environmental Sanitation. Only about 39 percent of the population has access to potable water and about 32 percent, to sanitary toilet facilities. Since it will take some years before proper municipal water and sewerage systems reach the minority of the population, most will still have to make do with un­ connected systems. The DOH’s Division of Environmental Sanitation is respon­ sible for inspecting water and sewage or toilet systems and for educating the public about environmental health. Plans have been made to increase the budget of this agency and thus give better atten­ tion to preventive measures. Nutrition Education. The Philippine campaign against malnutrition has been praised by the United Nations University as “the most comprehensive program of applied nutrition at the village level yet undertaken by any country.” The report further notes that the government pro­ gram has “contributed in three years to an improvement of nutrition and health in the Philippines.” The government’s nutrition policy is focused on the prevention and cure of malnutrition among infants, preschool children, and pregnant or lactating wo­ men. These persons are the ones who suffer most from the effects of malnutri­ tion. Specifically, the first six months in the life of an infant are the most cru­ cial period in his mental development. A vital factor in providing for good infant nutrition is making the mothers aware of good nutrition practices. In the rural areas, mothers usually learn about the nutritional needs of their children through the Mothercraft Centers of the DOH’s National Nutrition Service. These centers also provide supplemental feed­ ing to pregnant and lactating women, as well as to infants and children from needy families. □ BRIEFING □ Department of Publir nformation Energy [ THE REPUBLIC BRIEFING □ PNOC y* The target: energy independence THE 1973 global oil crisis has brought into sharp focus the utter vulnera­ bility of the Philippines, like any other developing nation, to drastic changes in the international oil market. For as it is, the country is heavily dependent on petroleum to fuel its development needs. As a result, a redefined energy pol­ icy has been drawn up by the govern­ ment, the underlying philosophy of which is that while imported petroleum remains a major factor, it should not constitute the be-all and the end-all for its sustained economic viability. The Energy Development Board, which has been mandated to formulate policies, implement and coordinate all government activities relative to the ex­ ploration, exploitation and development of the country’s energy resources, has thus evolved an energy plan based on the redefined national policies and goals. The energy plan aims to reduce heavy dependence on imported petrole­ um from the present 95 percent of the country’s total energy needs to 72.1 percent by 1985 and 53 percent by the year 2000. To achieve this, the exploi­ tation and development of indigenous energy resources become imperative. Be­ hind all these is the fact that the Philip­ pines is endowed with energy sources whose potential is still waiting to be tapped to the hilt. Petroleum FOR one thing, there is petroleum. The country is situated at the edge LJ of the Southeast Asian continental plate * and experts agree that it has all the po* '..................................................... ■ tentials of becoming an oil producer. There are 11 known sedimentary basins in the country; namely, Cagayan Basin, Luzon Central Valley Basin, Southern Luzon Basin and Bicol Shelf Basin in Luzon; Samar-Leyte Basin, Visayan Sea Basin, Panay Basin and Palawan Basin in the Visayan Region, and AgusanDavao Basin, Cotabato Basin and the Sulu Sea Basin in Mindanao. r Hydro THEN there is hydro power. The EDB plan is to increase the share of hydro power in the total energy needs from the present 4.8 percent to 8.8 per­ cent by the year 2000. According to estimates, the coun­ try’s hydro-electric potential stands at 8,000 megawatts of which only 600 megawatts are being utilized. The pres­ ent hydro power generating capacity is equivalent to 50 million barrels of oil annually. And there is no reason why the country’s hydro power potentials cannot be developed. Except for the production of electro-mechanical equip­ ment, Filipino expertise in this field is almost complete. In hydro-electric tech­ nology, for instance, there is a local welldeveloped expertise in site investigation, geology, design, construction and plant engineering. The EDB considers hydro power as not only indigenous and non-depletable, but also inherently capable of multi­ uses, contributing significantly to agric­ ulture, sound forest management, fish­ ery development and various recreation­ al activities. Under the plan, the EDB aims to accelerate hydro-electric development to fully utilize at least 85 percent of its total potential in the next 25 years. The program is considered vital in food pro­ duction, potable water supply, flood control, power generation and naviga­ tion. Coal ALTHOUGH quite belatedly, coal, too, is now getting the attention that it deserves. Estimates are that the Philippines’ coal reserves may reach 125 million metric tons. Philippine coal has been found suitable for thermal and cement kiln use. The reserves are distributed throughout the archipelago, with greater con­ centration detected in Cebu, Batan Is­ land off Albay, Semirara Island off An­ tique and Malangas situated in Zambo­ anga del Sur. To speed up coal development, Pres­ ident Marcos has issued Presidential De­ cree 972 or the Coal Development Act of 1972. Like the incentives given to oil exploration firms, the Act provides attractive terms for coal producers and industrial firms which will convert or re­ convert to coal use. These incentives in­ clude tax exemption on imported cap­ ital equipment for coal production and for conversion of existing oil-fired plants and facilities; tax credit on domestic capital equipment; net operating loss carryover; capital gains tax exemption; accelerated depreciation; preference in grant of government loans; and remit­ tance right at the prevailing exchange rate to cover interest and principal of foreign loans and obligations regarding technological assistance relating to coal conversion programs. PD 972 also signalled all-out gov­ ernment participation in all phases of the country’s erstwhile anemic coal indus­ try. Under this program, the EDB is em­ powered, to engage in supply, storage, transport and distribution of coal, im­ portation, technical and financial assis­ tance, and the maintenance of a national oil stockpile. The EDB expects coal demand to increase from the present 226,000 met­ ric tons to 2.9 million tons by 1985. Geothermal ANOTHER indigenous energy source which the government in­ tends to utilize is geothermal energy. So far, five priority areas have been iden­ tified for development. These are Tiwi in Albay, Makiling-Banahaw in Laguna, Tongonan in Leyte, Southern Negros and Manat in Davao. It is not surprising that the Philip­ pines abounds with geothermal energy sources. The country straddles the socalled circumpacific “fire belt.” Its esti­ mated geotherjnal resources is about 200,000 megawatts. By 1978, the first 55-megawatt turbine generator will be operational at the Tiwi project. Sixteen production wells have so far been drilled, of which 14 are now producers. Geothermal development is being A wealth of power sources ffydro—An appraisal of all the available potential dictates a full util­ ization of the natural water resources of some 8,000 megawatts (MW). At present, only 600 MW are being utiliz­ ed. Assuming a load factor of 50 per­ cent, the energy generation capacity corresponds to 50 MMB of oil equival­ ent per year. Geothermal—It is known that the Philippines is lying on a high heat flow region (circumpacific “fire belt”) where volcanic activity was and is very inten­ sive. In the country, about 25 volcanic centers with known surface and ther­ mal manifestations have so far been identified. If we consider these volcan­ ic centers as ready sources of heat en­ ergy and assuming that only 25 per­ cent of the rock volume beneath each is fractured and naturally water-filled, we can project an energy generating potential of 2 x 10* megawatt-centu­ ries. This potential is equivalent to 2.5 x 106 MMB of oil. Nuclear Minerals—Field surveys are being conducted in two promising -x ;• ' areas: Camarines Norte and Samar. - A LS* _ - iOS-* ■ - Conservative estimates of the recoverGeothermal power can substitute for oil. able uranium in Camarines Norte alone Tapping local energy resources. undertaken under close supervision by the EDB in close collaboration with other government agencies. The Nation­ al Power Corporation, for instance, is ac­ tively involved in the two most advanced geothermal projects—Tiwi and MakilingBanahaw. On the other hand, the EDB is supervising the Tongonan project in Leyte and the Southern Negros project. The PNOC Energy Development Corpo­ ration has likewise been harnessed for the exploration and exploitation of geo­ thermal resource areas. Nuclear IN anticipation of the activation of the first nuclear power plant in the Philippines, the Energy Development Board has intensified the exploration and development of nuclear fuel, espe­ cially uranium. The first nuclear plant, which will begin operations in 1982, will have a generating capacity of 620,000 kilo­ watts, equivalent to some $60 million in savings from non-importation of crude oiL The National Power Corporation has drawn up a 25-year power expan­ sion program that includes the installa­ tion of 11 nuclear plants which will form a vital component of government efforts to reduce fuel imports. The nuclear generation program is being supported at this early stage with the exploration and exploitation of local nuclear materials and the training of Fil­ ipino nuclear technological manpower. Field surveys are being conducted in two promising areas in Camarines Norte and Samar. In one area in Camarines Norte, some deposits of uranium-bearing ores are already pinpointed with a con­ servative estimate of 200 metric tons of recoverable uranium. The EDB, in cooperation with Phil­ ippine Atomic Energy Commission, is currently negotiating for a technical as­ sistance program from the Australian government for uranium and nuclearore exploration. Actual uranium explo­ ration shall be undertaken by the PAEC with EDB-prescribed guidelines. Solar THE Energy Development Board, for the first time in the country’s history of energy planning, has included the util­ ization of solar energy and non-conventional sources in the overall energy plan. The Board, while recognizing technical and other problems inherent in the util­ ization of solar energy, believes that this energy source may be the key to future national development because it is prac­ tically inexhaustible, does not cost any­ thing and has the most minimal environ­ mental impact. An assessment of the Philippine situation shows that solar energy offers tremendous potential for applications of immediate and future relevance. Di­ rect solar energy conversion, wind en­ ergy conversion and bio-conversion to fuels are the areas considered to have specific applications with the greatest impact in the near and medium-term future. Majority of these applications are rural-based and their introduction in remote powerless areas could have far-reaching effects on tJ>e br^tenditions of the rural masses. Solar energy-”-^’ generating plants and devices may enable solar-derived electricity to become a sig­ nificant factor in supplying the country’s energy demands by the the end of the century. A seven-year solar energy develop­ ment program has been drafted calling for the mass production of solar utiliza­ tion devices for sale to the public or for distribution to rural areas through pos­ sible government financing and subsidy. These devices will be capable of heating buildings, space-cooling, crop drying, refrigeration and heating engines for the pumping and generation of lowpower electricity. □ is 200 metric tons. All other rela geological data are currently under evaluation. Coal—There is disparity in esti­ mates of the nation’s known reserves. These range from 36 million to 125 million tons. However, if we assume that only one quarter of those parts of Cebu which are covered by young­ er limestone might be underlain by a one meter thick coal layer, geological considerations bring an evaluation of existing potential coal resources to as much as 1 billion tons. Similar geolog­ ical conditions exist in several areas in Mindanao. Using the same assumptions as above, then another billion tons of coal might exist. This brings our total estimated coal potential to as much as 2 billion tons. This corresponds to 6 billion barrels of oil equivalent. Petroleum—There are 230,000 square kilometers of sedimentary bas­ ins in the country and assuming that about 1 percent of this total area is prospective oil accumulation with aver­ age net pay thickness of 30 meters, then we can estimate a potential re­ serve of 10 billion barrels of oil. □ THE REPUBLIC Rural Development 1-31 December 1976 11 PROGRESS REPORT □ Jake T. Espino Multiplying opportunities in the countryside CLOSELY identified with the govern­ ment effort to improve the living conditions in the countryside is the In­ dustrial Guarantee and Loan Fund (IGLF). And perhaps, this credit scheme best exemplifies the dramatic turnabout in state policy concerning the geograph­ ical allocation of resources in the coun­ try since the proclamation of authori­ tarian rule in 1972. Until a few years back, the IGLF concentrated its lending operations on well-established companies—those that can put up acceptable collateral. And these firms were usually located in the cities. This lending policy certainly is in accord with “sound banking” prin­ ciples. In terms of the national develop­ ment program, however, the agency fail­ ed to “deliver, the goods,” so to speak. While the well-off companies in the cities enjoyed more capital for expan­ sion, the rural population remained tied up to agricultural activities for their livelihood. There were very limited eco­ nomic activities, in short, in the coun­ tryside aside from farming and fishing. This situation was precisely what President Ferdinand E. Marcos sought to reform when he declared martial law four years ago. Thus, the state now rec­ ognizes that to uplift the welfare of the poor, the government must actively in­ vest resources in the countryside. In line with this national policy, the IGLF has drastically altered its lend­ ing schemes to give priority to rural en­ trepreneurs. The strategy is to encour­ age the growth of small- and medium­ scale industries in the rural areas. As activities are mainly labor-intensive, their ^establishment will surely spur the mul**Yiplication- Of eiirpRjJment opportuni­ ties for the rural population. Implementing the Strategy HOW to implement this strategy? Leonardo Mariano Jr., director, industry and utilities staff of the Na­ tional Economic and Development Au­ thority (NEDA) and concurrent chair­ man of the IGLF review committee re­ cently stressed that under the new finan­ cing scheme, prospective borrowers will no longer be required to submit “expen­ sive project studies” which are consider­ ed to be the bane of new entrepreneurs engaged or planning to engage in smalland medium-scale industries. Small en­ trepreneurs have complained that they could not afford the high cost of pre­ paring project studies. The relaxation of collateral requirements is another in­ centive in the revised lending program. Mariano said that the implementa­ tion of the new IGLF financing scheme would entail the selection of some 100 commercial, savings, development and rural banks and other financial inter­ mediaries throughout the country in­ tending to participate in the lending program as sponsoring banks. Govern­ ment financial institutions may also be­ come sponsoring banks. Under the revised IGLF policies, the maximum amount of a loan is P500.000 and the enterprises eligible for loans must have assets not exceed­ ing Pl million. These IGLF loans are obtainable from the sponsoring banks located in the area of the borrowers. The funds are made available to the sponsoring banks to enable them to ex­ tend loans without necessarily using their own resources. But these sponsor­ ing banks will evaluate the loan applica­ tions to the IGLF review committee which is composed of the NEDA, the Central Bank, the Board of Investments and the UP Institute of Small Scale In­ dustries. The review committee are given four weeks to decide on the applications. Proceeds of the loan may be used for the purchase of capital goods and working capital or a combination of both. Repayment is within a maximum period of three years for working capi­ tal loans and up to 10 years for fixed assets loans. There are at least two advantages of coursing loan applications to the spon­ soring banks. .First, the borrower will get longer maturity period for his working capital loan, the interest rate is much lower and can easily avail of the guarantee feature of the IGLF for the insufficiency of his collaterals. Second, the participation of the private banking system will encourage its greater involvement in promoting small-scale industries. As the administrator of the IGLF funds, the Central Bank (CB) recently released new rules on how the different banks and ncnbank financial interme­ diaries may be accredited to participate in the IGLF financing program. To be ac­ credited, the following CB requirements must be complied with: 1. Minimum paid-up capital. For rural banks, the paid-up capital should not be less than P500,000, exclusive of government counterpart capital (preferred shares); 2. Sound and efficient management and an adequate number of qualified staff to carry out the institution’s normal business; 3. Capability for satisfactory appraising of the technical, marketing and financial viability of small industry projects together with satisfactory sys­ tems and procedures for regularly fol­ lowing up project implementation and operations; 4. An over-all level of ar­ rearages of no more than 15 percent of the total outstanding loans of the insti­ tution; and 5. Non-arrearages with the CB or the IGLF. On the other hand, the general procedures for participating institutions in the IGLF program are: 1. Banks and nonbank financial in­ termediaries should apply for accredita­ tion with the IGLF; 2. All applications for accreditation should be in the prescribed form and should be filed in quadruplicate with the CB department of loans and credit. This department will evaluate applications for accreditation in accordance with the established criteria; and 4. The CB will communicate to the applicant banks or nonbank financial intermediaries the action taken either by the CB governor or senior deputy governor on their applications for accre­ ditation, copy furnished NEDA. Under the accreditation scheme, the accredited bank evaluates and ap­ proves the loan to facilitate the process­ ing of loan applications. After the accredited institution has submitted all the required documents the CB will release an initial 50 per­ cent of the total amount for approved projects in the form of special time de­ posit for banks, and deposit substitutes (certificate of assignment with recourse) for nonbank financial intermediaries. The remaining 50 percent will be releas­ ed to the accredited institution after submitting evidence on the disbursement of the initial funding to the borrowers. The rules also stipulate that the CB will undertake the postaudit of IGLFassisted projects on a periodic basis and submit the corresponding reports to the IGLF review committee. For purposes of industry dispersal, accredited institutions will be required, for a six-month period, to channel to the rural areas a minimum of 60 percent of the total approved applications. Operating Guidelines THE IGLF, established in 1952, is a joint project of the governments of the Philippines and United States pur­ suant to Section I of Annex I of the economic and technical agreement be­ tween the two governments. Counter­ part funds were authorized under R.A. 604. The sum of P10 million was with­ drawn from the counterpart fund spe­ cial account as initial fund. In the said agreement, the CB was appointed agent for the purpose of administering the IGLF program for a period of ten years. The master agreement was renewed in 1965 and again in 1975 for another ten In the new IGLF policies, small industries get much-needed assistance. years to expire on January 22, 1985. The counterpart project agreement and the rules and regulations govern­ ing the operations of the IGLF were re­ vised on July 16, 1973. The revision of the two documents resulted in the fol­ lowing policy and operational changes: 1. Withdrawal of the United States As­ sistance for International Development (USAID) representation in the IGLF re­ view committee; 2. Representation of the Department of Industry and the UP4SS1 in the review committee; 3. Em­ phasis on the utilization of IGLF for small-scale and cottage-type industries; 4. Further relaxation of qualifications of participating rural banks; 5. Approv­ al of the participation of the investment houses and financial companies to ex­ pand the base of participation in the IGLF lending program. On April 5, 1975, a loan agreement was established between the Philippine government and the International Bank for Rural Development (IBRD) under which the IGLF’s share was $12 million. The term of the loan is 12 years includ­ ing a two-year grace period during which only interests will paid. With the entry of the World Bank into the IGLF pic­ ture, the lending policy was again chang­ ed, as follows: 1. The loan/equity pro­ portion in project financing was raised to 80-20 ratio which means that the IGLF will assume 80 percent of the in­ vestment while the borrower will put up the remaining 20 percent and; 2. The in­ crease in the lending rate from 10 to 12 percent on special time deposit loans. 3. Guarantee fee of 2 percent for auto­ matic 60 percent guarantee. As of June 30, 1976, total contribu­ tion to the fund amounted to P99.5 million, P50 million of which came from counterpart funds and the remaining from the loan accounts. During the same period, total assets of the fund amounted to Pl 12.25 million. The total liabilities stood at P46.93 million result­ ing in a net worth of P65.31 million. Outstanding special time deposits reached P82.03 million with unreleased commitments on approved loans amounting to Pl3.8 million. Available funds stood at Pl 1.4 million as against pending applications in the amount of P8.22 million, thereby reducing the amount available for new applications. Consistent with the government ob­ jective of dispersing small-scale industries in rural areas, more projects in the farflung areas of the country were extended IGLF assistance. Where before the Metro­ politan Manila region used to account for over 60 percent of IGLF financing, the trend under the revised lending scheme has been reversed. Less de­ veloped regions like Bicol and those in the Visayas arid Mindanao which were hardly reached before by the IGLF fi­ nancing, are now beginning to get the much-needed assistance for small, medium-and cottage industries. Of the 570 projects approved from July 1973 to June 30, 1976, 301 pro­ jects or 53 per cent of total projects financed by IGLF are within the P50,000 and below and Pl00,000 range. This in­ dicates that the IGLF is assisting mainly the small-scale industries. A study of loan disbursements and dispersal for those past years identifies two key imperatives for the program to maximize its contribution to the coun­ try and our economic development: 1. That more loans be extended to enterprises outside the Metro Manila; 2. That greater participation must come from the banking sector and that this sector be familiarized with the pro­ gram, so that a broader public may be reached by the IGLF. With wider participation, the IGLF foresees even better results may be at­ tained in the financing of the small-scale industries. □ 12 1-31 December 1976 I Society THE REPUBLIC CONVERSATION □ Carmen G. Nakpil ‘Womanpower is wasted on menial tasks9 Best known as a writer, Carmen G. Nakpil recently agreed to be a director in the executive board of the National Commission on the Role of Women. Created by a presidential decree, the Commission has three goals: equal­ ity before the law, change in education and the appointment of women in policy-and-decision-making jobs. They are goals which Mrs. Nakpil has constantly and at times provocatively clarified in her writings, most of which are found in her books, Woman Enough and A Question of Identity. As a writerand as representative of the Philippines to var­ ious international conferences, Mrs. Nak­ pil travels to many countries of the world. She is founding director of the Writers Union of the Philippines. She has served as chairman of the National Historical Commission. In this conversa­ tion with Monina A. Mercado, managing editor of Archipelago, she re-emphasizes her beliefs and working goals for wom­ en’s rights. In discussing women’s rights, would you say that man is the villain? No, he just needs to be re-educated. Partly also, it is the women’s fault. We have spoiled the men. Not only have we spoiled them, but the majority of women do not like the idea of talking about their rights. But why ? They are afraid that these rights will turn into duty. The price for free­ dom and independence comes high. Most women are not willing to pay it. Perhaps this reluctance to talk about rights is a ploy to keep a fact under cover, the fact that women tend to be the strong party in the Filipino family. Tradition and history for Malay women in general, and not just for Fil­ ipino women, make them different from other Oriental women. Several anthro­ pologists and historians have said that they have a certain enterprising spirit which makes them more independent and gives them more integrity and status in life. Thus, the Filipino woman has always lived by a sovereignty based on her fellowship with man. She is self­ sacrificing, but she is no fool. She has always been her own woman. Millions of documents of Philippine history attest to this. Pigafetta, Magel­ lan, the conquistadores, the friars and the encomienderos, found queens and princesses, shaded by parasols and by masculine deference, priestesses and heal­ ers who were wise and self-possessed. History and tradition bear out that the Filipino woman has always been assertive, hasn’t she? Legend, history and the facts of women added to social equality a superiority of passion, for many of them believed—according to an old Spanish chronicle—that after death, a woman could be helped to cross the river of the Great Beyond only by those men who had loved. Representation of women in public life should be more equitable. " some women do not want to work. It is, in fact, considered a mark of status or prestige in some quarters to be a lady of leisure. I lectured once at a university where most of the coeds come from socalled exclusive convent schools. I was asked: “If her husband makes enough money, why should a woman work?” I said, “Do you mean to say that wom­ en should work only out of economic necessity? I believe that work is part of life. Not to work is to waste human resources. Whether your husband can afford to keep you or not still you should work.” While that attitude is common among certain women, it is not general with all Filipino women, is it? Curiously enough, it is the western­ ization of Filipino women that gives a negative aspect to the picture. It is the upper class women, the so-called elite who are apathetic, who do not join and who do not do their share. This may be from Spanish as well as American in­ fluences. I find that women’s lib, for in­ stance, is a westernized value and a westernized movement. The mass of Fili­ pino women who are not westernized, the rural women from the middle and lower income groups, are untouched by westernized sex-typing roles. Most social commentaries on the situation of Filipino women do make such a distinction between the attitudes of the so-called upper class from that of the middle or lower groups. Another fine distinction has to be made. The upper class partially educated women are the most victimized by wes­ ternization. But there is a very thin elite that has common ground with the lower group—in the dynamism, the in­ dependence, and the enterprise that they share. Somewhere in between they meet and come full circle. Is the weighing factor Westerniza­ tion then—or something else? It seems to be some kind of partial or period westernization. By that I mean colonization, a period of westernization which seems to have enslaved or brought down the status of women. The excep­ tion are women who are very highly edu­ cated and who do imagine themselves to be highly westernized. It is they who have a larger meeting ground with rural women in the sense of having the same kind of attitude and spirit. What is this attitude or spirit? They both see work as part of life. They think that work is something that a human being has to do—not just as something honorable or dishonorable or connected with earning a living or need­ ing to earn money. But they look at work from differ­ ent eyes, as it were, don’t they? Even if they start from different points, in this attitude they have com­ mon ground. One side starts from being highly educated and highly westernized; the other side starts from the indigen­ ous, the indigenous independent strain of the Malay women. Somehow they meet on .the same plane: they think of themselves not only as having rights but as having duties. As a matter of fact, I think that it is on that plane where for these Filipino women, rights and duties have become the same, one and the same thing. A right is a duty. A duty is a right. That is a marvelous view. That is my. view of it. I think I have changed my position since some years ago. I base it on evidence of surveys and many other studies that have re­ cently been made, which are revealing, comforting but, in a way, strange. For instance, there was a survey conducted by the Philippine Women’s University where Margaret Mead was present at the summing up. The discus­ sants were divided into three groups: lower income, middle, and upper class. The report on the upper class group showed that they tended to be the most In more recent times, how were equality and superiority indicated by Filipino women? With the exception of a tiny Euro­ pean upper class, the women of the co­ lonial period in fact resisted the enfeebl­ ing effects of foreign rule and foreign culture much better than the men, per­ haps because the latter had borne the brunt of it. The women retained their devious freedom, their enormous energy, a na­ tive industry and talent for enterprise, and most of all, the tradition of seeing themselves as the conscience, the giver of moral courage and the full partner of Filipino men. In the politics of revolt, the Fil­ ipino women were avengers and inciters, as well as helpmates. In the rosters of the secret society of the Katipunan, they were victims but also proud aggressors, muses as well as warriors. At the begin­ ning of this century, an American jurist wrote, in a tone of astonishment, that the Filipina was “the best man in the Philippines.” What then is there for Filipinos to complain about? Philippine laws and the civil code are full of legal inequalities still. While Filipino women are relatively better off than many women from other coun­ tries, before the law we do not enjoy the sort of position that you would ex­ pect from our performance outside of the confines of the law. The opinion is sometimes expressed that in a developing country, the battle of the sexes is not really the most im­ portant problem, rather it is economic upliftment, a concern shared equally by men and women. I never disagree with that. But it has to be one of the most important questions, more important perhaps in a developing country than in a developed country. By the legal inequalities and by the cultural attitudes in a developing coun­ try, half of the manpower—or the wom­ anpower—available is wasted by not al­ lowing women to share in the develop­ ment, by putting them aside, by giving them all the menial tasks when they have the talent and the capability of contributing precisely to this economic upliftment that is desired. In the Philippines, there are statis­ tics which show that Filipino women are more highly educated than the men. In graduate school alone, 71 percent of the students are women, 29 percent are men. In the college level, 55 percent of students are women and 45 percent are men. It is only in kindergarten where there are as many boys as there are girls. However, the statistics also show that only one percent of jobs in the managerial, executive or policy-making • caliber is held by women. That is a waste of educated womanpower. You are aware, of course, that apathetic, the most self-indulgent, the most ready to withdraw from commun­ ity life into their own private comfort­ able world. On the other hand, the report on the lower class indicated otherwise. This is evident in the barangay, many of which are headed by women. The na­ tional president of the barangay is a woman. There it can be seen that in the rural areas, it seems to be the women who seem to be stronger, who feel it is their duty to do something for the fam­ ily, to contribute to the family funds, to take on responsibility. This seems to be true of the middle class as well as lower income groups. What are your personal goals for being so outspoken about women’s rights? I think I have achieved all my per­ sonal goals. . Nevertheless, you are outspoken still. Why? I think it is a matter of tempera­ ment Nothing in my family background warrants it. Your personal goals being so mag­ nificently achieved, what are your ulti­ mate goals for others—for men as well as for women? I would like to re-educate the men out of sex-typing, particularly in work. My other goal is to get women out in the open. If they want to be a cabinet secretary or a justice of the supreme court, then come out openly about it and stop using underhanded methods. Stop using feminine attraction to get what they want. The representation of women in public life should be more equitable. More than half of theTTmppist-poptria^. tion is composed of women. Therefore half of the cabinet should be women, half of the judiciary should be women, half of the security council and of the foreign policy council should be wom­ en, half of the ambassadors should be women. That is my ultimate goal. Is it too visionary? Fven if women come out in the open and assume deserved roles in pub­ lic life, they can never abandon their primary role as mothers and child­ rearers. Of course not, that is biology. But if a woman feels that her husband is better at taking care of the children, he should take care of the children. How will you bring up a girl? Treat her like a boy. Treat her as a person without any consideration of her sex—that because she is what she is, she has to be coddled or taught to serve the men. Just treat her like a human being. Don’t take her sex into consideration. How would you bring up a boy? In exactly the same way—as a hu­ man being. What contribution do you think women can give to public life, for in­ stance, to politics? The pat answer would be their in­ tuition, their gentleness, their compas­ sion. But I think it is the men who are soft and gentle and that it is the women who are ruthless. Women are ruthless because of the veneer that they have learned in order to get their way. I find that it is the men who are more senti­ mental and more emotional, who are more tender. Are you saying that there are no qualities that are exclusive to women as women and to men as men? If you remove environment, train­ ing and education, basically that is so. The only difference is biological. Nevertheless there simply are jobs that women can’t do. That is why the women themselves have reservations. Do you mean this whole business that women can’t be stevedores? We don’t want to be stevedores. We are not complaining because we can’t be steve­ dores. But we want to run the stevedor­ ing company. □ 1-31 December 1976 13 On Civilians in Police Agencies FACTS: Miss X was appointed APLECS Operator in the Libertad Pol­ ice Department, Libertad, Antique. Issue was raised as to which agency, the CSC or the Integrated N ational Police should act on the appointment in question. RULING: Pursuant to Paragraph 5 (d), Article II, Chapter I, Part XX of the Integrated Reorganization Plan, the func­ tion to attest appointments heretofore vested in this Commission is transferred to the National Police Commission in­ sofar as officers and members of the local police forces are concerned. This function of the National Police Commis­ sion has been expanded to include ap­ pointments of firemen and jailguards pursuant to Presidential Decree No. 765 and Civil Service Commission Memoran­ dum Circular No. 11, issued on Septem­ ber 5, 1975. It should be noted that the law is explicit that the authority of the NAPOLCOM to act on appointments refers only to those extended to officers and members of the local police forces, firemen and jailguards but it does not include appointments of civilian and other administrative employees in the local police and fire departments. It appears that the position of APLECS Operator in the Libertad Police Department to which Miss X is being appointed, does not involve police func­ GcM'T PRIVATE On the Interpretation of "Conflict of Interest" QUERY: National Economic and De­ velopment Authority Director Gen­ eral Gerardo P. Sicat requests opinion on whether his acceptance of a director­ ship in certain private corporations in­ debted to government financial institu­ tions would constitute “a conflict of in­ terest,” considering that he is a mem­ ber of the Monetary Board and the Na­ tional Economic and Development Au­ thority (NEDA). OPINION: The Secretary has, in several occasions, already ruled that the “interest” adverted to in the prohibi­ tions contained in the Anti-Graft and Corrupt Practices Act (Sec. 3 (h) and (i), RA No. 3019) refers to interest of a personal or private character; and that the legal injunction, though apparently comprehensive and unqualified, should be confined to cases which exhibit con­ flict between public and private inter­ ests. The rationale behind these statu­ tory restrictions is that no public offi­ cer ought to be permitted, in respect to a matter confined to his official care, to tions such as the preservation of peace and order, the prevention of the com­ mission of crimes, or the protection of life, liberty or property, among others. Hence, her appointment as such may now be acted upon by that Office sub­ ject to the requirements of the Civil Ser­ vice Law and Rules. Basis: CSC 2nd Indorsement dated August 20, 1976 On Holding CS and SB Positions OFFICIALS AND EMPLOYEES IN THE CIVIL SERVICE WHO AC­ CEPTED MEMBERSHIP IN THE SANG­ GUNIANG BAYAN MAY LOSE CIVIL SERVICE POSITIONS IF THEY FAIL TO EXERCISE OPTION TO CHOOSE WHICH POSITION THEY DESIRE TO RETAIN The Manager, Local Government Audit, Commission on Audit, has raised the issue on whether Mr. Pablo M. Amansec, Barangay Affairs Coordinator, Office of the Mayor, Baguio City, whose permanent appointment was approved on July 1, 1975, under Section 24 (b) of Republic Act No. 2260, as amended, may simultaneously hold the position of member, Sangguniang Bayan, and collect the emoluments attached to both positions. Otherwise stated, the issue is whether the payment of emoluments to Mr. Amansec as member of the Sanggu­ niang Bayan is a violation of the consti­ tutional prohibition (Section 5, Article XIV, the Constitution) and Section 46 of Presidential Decree No. 807 against double compensation. In a decision of the Civil Service Commission promulgated on Septem­ ber 16, 1976, the Commission considers entertain two conflicting loyalties—one, public and official; the other, private and personal—since experience has shown that where private interests clash ■with The requirement of public duty, man is disposed to succumb to the im­ peratives of self interest. In the present case, Mr. Sicat sits as a director in the private corporation in order to represent the interests of the government financial institutions which are creditors of said corporations, not his own private holdings. Hence, there is no conflict of interests to speak of. Source: Sec. of Justice Op. No. 127, Series of 1976, Letter dated July 5, 1976. On Withholding Payment of Work­ men's Compensation Award to Satisfy Debt of Claimant QUERY: The Director of National Library requests opinion on wheth­ er his Office may withhold payment of the money value ot the Workmen’s Compensation Commission’s award to Mrs. Milagros Mercado, former employ­ ee, until she settles her debt to com­ plainant. FACTS: Mrs. Mercado, due to pro­ longed absence on account of illness, was separated from the service on Dec­ ember 18, 1974. Consequently, she was granted disability benefits under Section 11(c) of Commonwealth Act No. 186, as amended (GSIS Charter), and also was awarded compensation benefits by the Workmen’s Compensation Commis­ sion. While she was still employed in in the National Library, an administra­ tive case was filed against her by one Josefina C. Gomez for non-payment of debt. This case remained unresolved on the date of Mrs. Mercado’s separation for which reason said Office had opined it “has lost jurisdiction over the person of the respondent.” Complainant Gom­ ez requested said Office to withhold payment of Mrs. Mercado’s WCC award until the said debt is settled. OPINION: If only on this ground that said Office has lost jurisdiction ov­ er Mrs. Mercado on account of her se­ paration from the service (since the dis­ pute has become a private matter), the Secretary doubts whether the National Library may entertain to withhold pay­ ment of the WCC benefits due her. Let alone that a government office should positions in the Sangguniang Bayan as political in nature in the sense that when one is elected or becomes a mem­ ber of the Sangguniang Bayan, he as­ sumes a membership in a political or­ ganization and thus involves himself in political organization and political activ­ ities. Mere membership therein or candi­ dacy for an elective office constitutes political activity within the contempla­ tion of Section 14 (b), Civil Service Rule XVIII, and is also prohibited under Sec­ tion 29 of Republic Act No. 2260, as amended, which reads: “Officers and employees in the Civil Service whether in the competitive or classified service (now career or non­ career service) shall not engage directly or indirectly in partisan political activi­ ty or take part in any election except to vote, xxx.” The same provision, needless to say, is found in the New Constitution (Sec­ not allow itself to be used as a collect­ ing agency of a private creditor. Besides, the WCC benefits due her cannot be withheld to satisfy the same in view of the provisions of Section 35 of the Workmen’s Compensation Act No. 3428, as amended, that “no claim for compensations under this Act is transferable, and all compensations or rights to compensation shall be exempt from creditor’s claims.” Source: Sec. of Justice Op. No. 126, Series of 1976, Letter dated July 2, 1976. On Status, Rights and Benefits of Gratuity Employees QUERY: Opinion is requested regard­ ing “the status, rights and benefits” of “gratuity employees” of the Central Luzon Sanitarium, particularly on the following questions: “1. What is the status of the Sani­ tarium gratuity employees as employees of the Philippine government? “2. Are they entitled to the rights, benefits and privileges of government employees who are affiliated with the Government Service Insurance System? “3. If they are not entitled, what are the rights and benefits to which they are entitled under existing laws and regulations?” FACTS: The Law authorizing the employment of “gratuity employees” is found in Item 22, Special Provisions of the Appropriations Decree for the current fiscal year (P.D. No. 733) for the Office of the Secretary of Health which reads: “22. Use of savings.—Any savings in the appropriation authorized for the Department of Health may, subject to the approval of the President, be used for: xxx xxx xxx part of their rehabili­ tation and therapy at the rate of Pl per patient per day in an amount not ex­ ceeding P100,000.” OPINION: The Secretary observes that the employment from time to time of such employees is being authorized pursuant to the above provision as part of their rehabilitation and therapy, and therefore essential to their treatment as patients of the Central Luzon Sanitari­ um. If follows that they remain hospital patients not yet fully recovered from the illness warranting their confinement, for which reason they may not be con­ tion 5, Article XII-B), which states that: “No officer or employee in the Civ­ il Service including members of the arm­ ed forces shall engage directly or indi­ rectly in partisan political activity or take part in elections except to vote. Thus, in Resolution No. 146, series of 1976, it ruled that officials and em­ ployees appointed in the Civil Service cannot concurrently hold positions in the Sangguniang Bayan, whether such positions be in the Sangguniang Panlalawigan, Panglungsod or Pambayan. Con­ sequently, any government officer or employee shall be considered resigned from his appointive position a? of the moment he accepts membership in the Sangguniang Bayan. Thus, Mr. Pablo Amansec may not simultaneously hold a civil service posi­ tion, that of Barangay Affairs Coordi­ nator, Office of the Mayor, and the pol­ itical position of Member, Sangguniang Bayan, collecting emoluments attached to both positions. For reasons ef equity, however, and because of the understand­ able legal complexity of the problem, it is but proper and just for civil service employees in the career ranks who have accepted membership in the Sangguniang Bayan to be afforded the opportunity to choose which position they desire to retain. Thus, Mr. Amansec is given the option to decide within thirty days from receipt thereof, which of the two positions he would prefer to retain. Other officials and employees similar­ ly situated are given the period of thirty days from the circularization of this decision. Basis: CSC Decision dated Septem­ ber 16,1976, AMANSEC, Pablo □ sidered as regular employees in the Civil Service, whether in the career or non­ career service as defined in the new Civil Service Decree and in the Integrated Reorganization Plan. This renders the other questions moot to pass upon. Regarding membership in the Gov­ ernment Service Insurance System, the System may nonetheless refuse to insure any government employee who does not pass the medical examination conducted by it, the Secretary adds. Source: Sec. of Justice Op. No. 120, Series of 1976, 2nd Indorsement, dated June 20, 1976. On the Authority To Appoint Per­ sonnel of the City Health Office of Davao City QUERY: “Whether it is the City Ma­ yor of Davao or the Director of Regional Health Office No. 11 in Davao City, who has the power to appoint per­ sonnel of the Cith Health Office of Da­ vao City.” OPINION: That the Secretary of Health is, under existing law, empowered to appoint health personnel is already a settled matter, and it has in fact been the subject of a circular dated Novem­ ber 19, 1973 of the Civil Service Com­ mission, based on an opinion of the Department of Justice dated November 17, 1970. In answer to various queries, it (the Department of Justice) has consistently ruled that “officials and employees of provincial and city health offices under 'service are officials and employees of the Bureau of Health and they are for that reason not local but national employ­ ees.” The only city health office so far found by this Office to be a deviation from this rule is that of Cebu City by reason of “a combination of special cir­ cumstances present in the case”. Under R.A. No. 4405, the positions of the personnel of the provincial and city health offices (assistant health offi­ cers, sanitary inspectors, nurses and mid­ wives) have been “nationalized”, there­ by leaving no doubt as to their being employees of the national government and therefore appointees of the Secre­ tary of Health, pursuant to Section 79 (D) of the Revised Administrative Code. Source: Sec. of Justice Op. No. 140, S. 1976 7th Indorsement, dated July 14, 1976. □ THE REPUBLIC 14 1-31 December 1976 Pres. Ferdinand E. Marcos □ From rebellion to revolution THE BEST of societies, if there is anything to agree on, has its share of shortcomings. More so, indeed, in the case of a society that had just been born. About the gloomiest observation made of peoples in developing societies is that they are caught between two worlds: one that is dead and another too impo­ tent to be born. I consider it remarkable, therefore, that the New Society was born at all. If for this reason alone, the New Society, like any society, is not above criticism. As a matter of fact, a critique of that society may even be ionger than a straightforward description of it. And as the main architect of the New Society, I should think that I know its shortcomings as much, if not more, than anyone. Socially speaking, we are confronted with cer­ tain problems in the democratization of wealth through agrarian reform. While it is admitted even by our bitterest critics that government has achieved more in three years than any government in thirty, still there are some demands for zero retention, which means the dispossession of all landlords. On the other hand, I have allowed retention up to seven hectares, for the majority of these landlords are re­ tired military men and government civil servants not a few of whom are former teachers. Certainly, in my view, they cannot by any stretch of the imagination be counted among the caciques of old. It is true, however, that there are landlords who resist in various ways, to the extent even of harassing tenants, sometimes with the assistance of misguided military officials. I am not unaware of this as I am not unaware of other abuses of official authority. The abuse of power is one area I am not in­ sensitive about. There has been ill-treatment of de­ tainees, extortion, and other misbehavior on the part of the military and the police. While these are isolated cases, they nonetheless are offensive to civilized mankind. The factual establishment of guilt is sometimes difficult, but I am determined that these should stop, as arrogance, insensibility, and Inaccessibility of high-ranking officials must stop. The bureaucracy has its share of miscreants too. They perpetuate bureaucratic delay and venality. It will be recalled that last year, I carried out a gen­ eral cleansing of the bureaucracy, though perhaps in too summary a manner. Consequently, I have had to reinstate several of those dismissed. As for the re­ tirees who remain in office to this moment, I can only plead some difficulty in finding their replace­ ments. To my mind, in any case, the age of an offi­ cial should not be a disqualification, unless, of course, deterioration is evident In any case, the important lesson of the “purge” is that human be­ ings, even if they are government officials, cannot be computerized. The errors of the “purge list” itself revealed certain propensities which endanger our sense of society. Power, in this case, has been used by seve­ ral to settle old political or personal scores, as there have been cases of false reports and mistaken ap­ prehensions because duly constituted authorities have been influenced—both by public servants and private citizens-into unwittingly prosecuting their personal vendettas. I continue to observe this trend, gathering evidence quietly, for as in all other mat­ ters, I must be wary about prevarications. Resurgence of Oligarchy I AM APPALLED by the resurgence of oligarchic behavior not only in the public but also in the private sector. Conspicuous consumption continues. The well-off have yet to learn the necessity and vir­ tue of restraint; ostentation dramatizes a lack of consideration for the sensitivities of the poor. I can­ not command the privileged—for to be in govern­ ment now and to be rich by virtue of inheritance, industry, or luck are both privileges—to abandon their tastes, but I do urge them to restrain their “styles.” As any true artist will tell them, elegance of style is simplicity and restraint Moreover, the aping of foreign modes of living is reflective of a colonial mentality. I understand that human nature can hardly be changed, although social structures can be drastically changed. But the ethics of the New Society are not alien to us Filipinos: it has been with every popular aspiration in the past for a better life in a better so­ ciety. In sum, the New Society ethics is rooted in our historical and cultural heritage. It is only that the old society repudiated the ethics, precisely be­ cause its measure was. economic or social advance­ ment by any means. I will say, therefore, that now the perversity is not in the society but in the individual who be­ lieves that the old way is still the most effective way of achieving his personal goals. That individual is to be found both inside government and outside government, and it is their interaction which causes distortions in our new society. Stopping this interaction through vigilance in the bureaucratic authority is one part of the job: that is mine. The other half is a citizen task; he must not succumb to the bureaucrat; he must exer­ cise his right of vigilance through the proper chan­ nels, through his barangay, and through every avenue offered by the government, including the Office of the President Graft and corruption, as I have emphasized in my previous books, is a conspiracy of at least two persons, often between an offi­ cial and a citizen. Having cited all these and other shortcomings, I make an opening for the few remaining detractors of the New Society. The critics, I must say here and now, are always welcome, for they are presumed to have the welfare of the society in mind. But detract­ ors have a sinister purpose: to discredit-and do away with the society. To them, the shortcomings I have cited and the “ills” that they themselves cite, “prove” that the New Society is a failure. I need only remind them that we have had their version of democracy and civil liberties for 27 years; it had des­ troyed an entire society, and yet it took that long— 27 years-before it was given up as a destructive experiment Now, on the other hand, we have had only four years of the New Society with its acknow­ ledged achievements for the Filipino people, but be­ cause detractors are dissatisfied, .they would disman­ tle it as dictated by the old political habit Worse still, they would have us turn back the clock and return to the old society. On Criticisms THAT THE New Society is oppressive is neither an accurate observation nor a valid criticism. But that its crisis government is authoritarian, that is true; however, I do not accept it as a criticism that I am obliged to respond to. The terms author­ itarian and martial law upset some people, most of whom have no stake in the country. As for some of my countrymen whose disapproval is well-known, it is not altogether clear whether they are against the situation as it is or are just simply against me. I am aware of such remarks as, ‘I like Martial Law with­ out Marcos,’ which is just as capricious as the re­ mark—‘I like Marcos without Martial Law.’ There is, quite frankly, nothing that can be done about it, as far as my adversaries are con­ cerned, except to get rid of me. However, if they are willing to have a principled discussion about it, then certain things can be done. Thus, the criticism of the New Society has two aspects: personal, which relates to me, and objective, which relates to the situation. I am, of course, an old veteran in personal criticism. Indeed, if many of my bitterest critics had the same attacks levelled on them, public or private, they might have died of apoplexy or called out'the troops for a bloodbath. In my long career as a poli­ tician in the old society, I have dined with ardent civil libertarians who were crushed by a snub or would call in the police to defend an error in gram­ mar. The most reverend repeaters of Lord Acton’s— ‘power corrupts and absolute power corrupts absolutely’—would not give their clerks the discretion to requisition coupon bonds. This shows, if anything, a The ethics of the New Society are not alien to us Filipinos. misapprehension of power and a lack of appreciation for coupon bonds. But I suppose I am obliged, at this point, to explain myself in relation to the power I exercise. It will be noted at once that I do not speak of the power I possess, but of the power I exercise. These are not one and the same thing. If, indeed, power were a matter of possession by me, it follows that I could transfer it at will, and I know I cannot Thus, power is exercised by virtue of the position that I fill. Should I be incapacitated, the position will be vacant, and I can no more dictate who shall be in it than I can command the tides to recede. What happens then? By testament, I have decreed that a committee will take over the reins of government and submit themselves to a referendum election. How do I know that I will be obeyed? Is my testament binding on others? The obvious answer is that the people know. My testament cannot pre­ vent the ambitious from trying to stage a coup, or determined groups from making a revolution, but that, in either case, will depend on the temper of the people. My detractors and adversaries speak as if I had stolen a march on the Filipino people. They can only say that because they are not occupying my office. Nor have they ever made a truly crucial political decision, but that, of course, is entirely my affair. Consider, however, what my decision meant: I have altered the course of the nation, and in doing so, I placed my life and honor and my fa­ mily’s life, honor, and future at the mercy of his­ tory and the judgment of the people. Is that a price for a few more years in the Presidency? I am afraid that my adversaries cannot judge me on the basis of the so-called ‘power drive.’ There are more things in the exercise of power than are dreamt of in their philosophy. It is an unfortunate occasion in history when a free people would have to need ‘a great man’-that is, if they were free. As Lincoln once said, the mission of a democracy is to prevent the rise of eagles; true, quite true. But Philippine democracy in the old society was, if not run by eagles, populated by vultures. In this instance, an eagle, even a hawk, was preferable. This was the note I emphasized in a speech before constitutionalists: Tiopk ^historic decision not‘only to preserve the Republic but to build a society, a political society, in which a Marcos would neither be necessary nor desirable. Some have called my leadership Cromwellian, which is not alto­ gether unacceptable, and others predict a Cromwellian fate, to which neither they nor I have much of a say. I know, however, that protestations of good faith is not enough. I would not mind this so much if those who deny my protestations would also inhi­ bit theirs. But political instincts die hard. Coming back to power, the criticism narrows down to its sharing. But since as I have said, I pos­ sess not the power to distribute, what I have done is to spread the work, the duties, and the respon­ sibilities, a rather ordinary act which is misunder­ stood as a ‘grand alliance.’ However, in fairness to this criticism, I will note the assertion that ‘the ruling elite now possesses greater power than ever before,’ compared to my statement that ‘among some of the poor, there is still the nagging fear that they have again been left behind, and that we have liquidated an oligarchy to set up a new oligarchy.’ My actual context, however, was in reference to the throw-backs of the old society who either had not changed their ways or were trying to forge their own alliances in power-centers below the Presidency. That this ‘ruling elite has greater power’ is, of course, a wrong observation. (Excerpted from President Marcos’ Notes on the New Society Part II. To be continued) Viewpoints Sila ang gobyerno HINDI pa tapos ang “pagwawalis” na ginagawa ni Presidente Marcos sa mga hindi karapatdapat na tauhan ng gobyerno. Patuloy itong gagawin hanggang sa matiyak na ang matitirang mga pinuno, empleyado at manggagawa ay matatapat sa serbisyo at sa gobyer­ no. Yaong igagalang ng mga mamamay an at maipagmamalaki sa mata ng lahat. Ang mga hindi panagbabago ng ugali sa pag-aakalang malakas sila sa liderato ng bansa ay nagkakamali. Wala nang “malakas” nga­ yon. Ang pinakamatibay na “kapitan” na hindi matitinag ninuman ay ang paglilingkod na matapat sa sukatan ng katarungan. Magserbisyo tayo nang matapat. Walang labis at walang kulang. At huwag nating isipin na nakahihigit tayo sa karaniwang mamamayan. Sila ang gobyerno at tayo’y mga lingkod-bayan lamang na puwede nilang patalsikin, tulad ng ginagawa nila ngayon na pagsusumbong sa mga kinauukulan. PAKS ANG pandaigdig na ngayon ang Demokrasyang Pilipino na itinindig ng Presidente sa Pilipinas, na ang katuturan ay pinahahalagahan ng isang ekspertong Amerikano, si W. Scott Thompson ng Fletcher School of Law and Diplomacy. Sinabi niyang ang Presidente at ang kanyang mga kasangguni ay nagtagumpay sa pagtatatag ng gobyerno sentral, sa pagpapalaki ng produksiyon at pagpapalawak ng ekonomiya, na siyang nagpagaan sa pambansang kabuhayan ng RP. Sa pahayag na ito ay maiuugnay ang patakarang “selfreliance” na nagbigay ng magandang larawan sa RP. fjttfflJTJSfii&rling panlabas sa ilalim ng kasalukuyang liderato ay itinuturing lU-Gnofthg Thompsorma.isang tagumpay, kaya umuuho dito ang pagtitiwala ng ibang bansa sa porma ng pautang at teknolohiya na nakakasangkapan sa pagpapaunlad ng pambansang ekono­ miya. Sana ay matigil na sa paninira ang ibang Pilipino, THE REPUBLIC Isang Bansa, Isang Diwa Board of Editors Chairman: Francisco S. Tatad Members: Lorenzo J. Cruz, Florentino S. Dauz Managing Editor: Luis V. Ople Assistant Editor: Conrado de Quitos Editorial Staff: Juanita G. Trinidad, Marcos D. Agayo, Gloria Jane Bayion, Rosalinda G. Roxas, Rowena M. Lumen, Jake T. Espino, Alma L. Diputado Art Director: Micaelita C. Almendral; Art As­ sistant: Henry S. Solis; Art Consultant: Larry Z. Alcala; Photo Editor: George S. Gascon; Production Manager: Marcelino N. Palisoc; Production Assistant: Cesar B. Tablason; Cir­ culation Manager: Bruno R. Dabu. THE REPUBLIC is published fortnightly by the Department of Public Information, Malacanang, Manila, for government managers. The Editors welcome contributions of manuscripts and pho­ tographs which should be sent to THE REPUB­ LIC, BNFI, UPL Building, Intramuros, Manila. While they will take reasonable care, the Editors assume no responsibility for the return of unsoli­ cited manuscripts. Entered as a second-class mail matter on March 5, 1973 at the Manila Central Post Office. dito at sa ibang bansa, sa kasalukuyang liderato. Makipagtulungan tayo sa mga pagsasakit ng liderato upang matiyak ang kaligtasan sa nakaumang na mga paghihirap na kakaharapin ng bansa. Ang kailangan natin ay pagkakaisa. Hindi pagsasalungatan. BUWAN ng Pasko ang Disyembre. Mangyari pa, marami sa mga tauhan ng gobyerno ang umaasam ng aginaldo. Tradisyunal ito sa mga public servants, laluna at ang tanggapang pinaglilingkuran ay kumikita, tulad ng CB, DBP, PNB, GSIS, SSS at iba pa. Sa karani­ wang mga tanggapan, ang kalakarang iyan ay huwag hanapin, ngunit kung magbibigay ay salamat Ang mga empleyado at manggagawa, sa tunay na kahulugan ng public service. . .ay siyang nag-aaginaldo sa gobyerno. Ginagawa ito sa pamamagitan ng pagseserbisyo ng matapat. Ang diwa ng kahulugan nito ay maihahambing sa pangungusap ng yumaong Presidente Kennedy ng Estados Unidos na :“Ask not what your country can do for you. Ask what you can do for your coun­ try.” Sa Paskong ito ay mababanggit natin na “Huwag itanong kung ano ang maiaaginaldo sa iyo ng iyong bayan.” Maliligayahan ang iyong bayan sa pamamagi­ tan ng paglilingkod na mabisa at matapat. Iyan ang pinakamagandang aginaldo ng mga public servants sa tanggapang pinaglilingkuran. NABAGO na ang paniniwala ng mga Pilipinong pihikan sa pagbili ng mga bagay na “made-inRP”, sapagkat mga pangunahing tagatangkilik na sila ngayon. Sa ganang akin, ang uri ng mga yaring-Pilipino ay pang-agapay na sa mga yaring day uh an. Ito ang dahilan, salig sa istatistika, kung bakit palaki nang palaki ang bolyum ng eksportasyon, pagkat mataas na nga ang uri. Ang pagbabagong ito ng attitude ng malaking bahagi ng mga Pilipinb ay isang malusog na indikasyon na hindi na rin tatanggihan sa ibang bansa ang mga yari dito sa atin. Ang katotohanang ito ay isang malaking tagumpay ng gobyerno, ng Philippine Chamber of Industries, ng mga negosyanteng Pilipino at dayuhan, at ng ibang sektor na katulong ng bansa sa pagpapaunlad ng ekonomiya. PUMA1LALIM na sa anim-na-buwang pagsasanaypag-aaral sa mga karunungang militar sa iba’t ibang pook-sanayan ng Hukbong Pilipino ang 460 sa 19,000 dating rebeldeng Muslim na nagbalik-loob na sa gobyerno. Ang pagsasanay nila ay bahagi ng programa ng Presidente sa pagkakaloob ng mahahalagangresponsibilidad sa mga Muslim sa paghahanda at paglikha ng maulirang gobyerno Pilipino sa Mindanaw at Sulu sa pamamatnubay ng kasalukuyang liderato. Angpagbabalik ng mga rebelde sa lupi ng batas, tulad ng gina­ gawa ng mga tauhan ng New Peoples’ Army (NPA), Hukbalahap at iba pa ay bilang pagkilala sa katapatan ng mga pangakong programang pangkaunlaran ng bansa, na siyang naging dahilan ng kanilang pamumundok. Sa kasalukuyan ay umuuho na sa Timog ang maraming proyekto ng gobyerno sa porma ng pagawaimbayan, pagtatayo ng mga industriyang paniyak sa mabilis na pagpapaunlad ng ekonomiya, edukasyon, kalusugan, kasama ang pagpapaunlad ng liderato sa iba’t ibang purok na pagpatnubay sa kapalaran ng milyun-milyong Muslim sa bahaging iyon ng Kapuluan ng Pilipinas. Asiong Aksaya. Matakaw sa flaw. LETTERS =a Dear Sir: I am very pleased to inform you that your newspaper, The Republic, which I have been receiv­ ing, is giving me very helpful information on what is happening in our government. Particularly interesting are the articles on the government infrastructure pro­ jects which have multiplied and expanded in the New Society. Octavio Fernandez Chief Deputy Assessor Provincial Office Tarlac, Tarlac Dear Sir: Thank you very much for the copies of The Republic. I enjoy reading your brief, easy-to-understand and up-to-date publication. It is very informative —on the reforms, developments, plans and projects of our government in the New Society. I understand that your publication is for “government managers,” but perhaps you can give some special consideration by including my name in your mailing list. Thank you very much. Maximo Padua 37 Concepcion Street San Antonio, Zambales Dear Sir: I find your articles excellent readings for government managers. Why not include forum articles and dialogues among managers from the government as well as private sectors on the crucial issues of the day? The said articles could prove highly informative and enriching. Kindly include my name . too in your mailing list Thank you. Rosalio D.G. Balane Administrative Officer U.P. College of Fisheries Diliman, Quezon City NAKASAPIT na sa ika-26 anibersaryo noong nagdaang buwan ang Philippine Marines, ang “putakting-dagat” na panagupa sa katihan ng Philippine Navy. Mangyari pa, pambihira ang iniukol na papuri ni PN Commodore Ernesto Ogbinar sa brigadang ito. Taun-taon, ang Philippine Marines ay tumatanggap ng maraming papuri at karangalan dahilan sa matapat na pagtataguyod sa maselang tungkulin nito. LUMULUBHA na naman ang kriminalidad sa Metro Manila at ibang dako ng bansa. Hindi lamang ang mga alagad ng batas ang dapat na mabahala sa panahong ito na pinatitingkad ang halaga ng bagong lipunan. Dahil dito, dapat na ipatupad ng buong katapatan ang nasasaad sa Philippine Commission Act No. 519. Sa ganang akin, anumang kilusan ang ilunsad ng maykapangyarihan kontra sa kasaihaan ay hindi malulutas kung hindi tutulong at makikiisa ang mamamayan. Kailangang masugpo ang mga kaaway ng lipunan. Hindi madaling gawin ng maykapangyarihan ang mangalaga sa kaayusan, kailanman at hindi makikipagtulungan ang mamamayan. Ang pagtutulungan ng lahat ang tanging paraan upang masugpo ang mga krimen. Sa ngayon ay marami nang “wanted” ang naibabalik sa kulungan dahil sa bagong kilusang inilunsad ng mga alagad ng batas sa kooperasyon ng mga mamamayan. Maganda itong palatandaan. Not So Funny — Larry Alcala 16 1-31 December 1976 The Nation THE REPUBLIC PROFILE □ Enercon Movement ‘The energy crisis is real9 AN impending increase in oil prices is threatening our economy again. Like the sword of Damocles, the oil crisis hangs up above our heads poised to spawn disaster anytime unless we do something. Unlike the sword, however, the crisis that oil can create cannot be avoided by simply moving out of its sphere of influence. By its very nature as the main energy source of the world, oil indeed has an unavoidable grip on the state of a nation. The Philippines, in particular, ob­ tains more than 90 percent of its power requirements from oiL Our development program, now being formulated and im­ plemented in unprecedented scope and speed, has compelled the government to look for alternative energy sources. As President Marcos pointed out when he launched the Energy Conservation Pro­ gram (Enercon) in October 1975, the multiplying oil prices have cost our government P7.2 billion yearly, a rather significant increase from the pre-1973 crisis price of only P2.2 billion. The economic reality that we have to contend with is that we cannot do without oil for the time being. Our government planners, however, are vigo­ rously exploring ways and means of tapping our own alternatives to the energy crisis-a crisis that will inevitably go on and on for as long as there are oil-dependent nations. The national goal is for our nation to be thoroughly self-sufficient in energy by the year 2000, Of course, this goal is targetted not without some apprehension by our planners. It can be very expensive and frustrating for the search for the “black gold” has been historically much like looking for the needle in the haystack. Our only immediate alternative to minimize the effects of the oil crisis is to vigorously pursue an energy conserva­ tion program. Last December, the Ener­ con movement was launched with no less than President Marcos presiding over the ceremonies. On that occasion, the President underscored the necessity for a successful campaign because “every barrel of oil saved means $12 in import savings and every percentage of con­ sumption that is saved means $9 million for the country.” “Whether it is in oil, uranium, or even the machinery for geothermal units, for hydroelectric power, the production of energy is going up. Across this broad terrain of escalating prices, therefore, the logic of conservation becomes more valid and urgent,” he added. The Enercon movement .is spear­ headed by Meralco chairman Emilio Abello, and directly supervised by the Enercon Council of the Energy Develop­ ment Board. This board is headed by Geronimo Velasco, who is also the pres­ ident-chairman of the state-owned Phil­ ippine National Oil Company (PNOC). The Enercon campaign is an inte­ grated operation which involves four major sectors of fuel consumers; namely, transportation (utility vehicles, airplanes, ships, trains); industries (plants, facto­ ries, offices, buildings); electric and power-generating companies (Meralco, NEA, NPC); and government and private sectors. According to Enercon Council statistics the energy consumption pat­ tern shows that the transportation, in­ dustry and power-generating sectors col­ lectively account for 87 percent of petro­ leum used in the country. The govern­ ment-private sectors account for only 13 percent PNOC Public Affairs Manager Jose Burgos, Jr. explaned that the Enercon campaign “seeks to unite the broad spectrum of Philippine society to wage a cohesive and collective effort tc make energy conservation a way of life.” He added that conservation, a constant facItor in day-to-day living, does not mean non-use. “It is simply the correct use of energy, the nonwaste of available fuel,” so that every drop of oil must pay for itself in terms of more and better production. Enercon slogans have been so omni­ present that a fuel-user would think twice before he would even start using up gas. Slogans such as “Save energy, save yourself’ can be heard on radio, seen in television, newspapers, billboards, posters, decals and even cartoons (Asyong Aksaya) that one would conclude: “indeed the energy crisis is reaL” “Enercon sense is common sense,” goes another Enercon slogan. But the fact remains that not all fuel-consumers have the sense of cooperation; thus the slogans succeeded in appealing only to certain sectors. Enercon head Abello re­ ported last month that the campaign has not permeated our population and sug­ gested to President Marcos the adoption of more drastic measures if the citizenry remain indifferent to the conservation drive. Among such measures are: □ A street ban on heavy cars which require displacement of 2500 cc and above, except diplomatic or tourist cars, starting 10:00 a.m. Friday to 6:00 a.m. Monday every week; , □ Prohibition of car and motor­ cycle racing, rallies and motorcades; □ Organization of car pools in schools and business firms; □ Closure of service stations from 6:00 p.m. until 6:00 the following morn­ ing, except those in strategic areas and those within initial jeepney routes; □ Creation of a government-pri­ vate study group to consider possible energy conservation steps; and □ Stop all lighted advertisements after 10:00 p.m. Enercon suggests that the proposed study-gKrap disctrsrTfrrfollowing measures: 1. Restriction of certain zones and streets to small vehicles during peak traffic periods; 2. More effective means of clear­ ing main streets of traffic obstacles by the police forces; 3. Additional ten percent reduct­ ion in the electric power and gasoline consumption of government agencies. Objectives of Enercon THE Enercon’s four-fold objectives are as follows: □ Promotion of general awareness on the need for energy conservation and the efficient use of fuel; □ Promotion of sustained involve­ ment by all energy-users, specifically the four sectors named earlier; □ Establishment of energy con­ servation guidelines and standards in achieving maximum efficiency for ma­ chines; and □ Encouragement of energy con­ servation among industrial firms through a system of incentives that will provide government assistance in importation of energy conservation systems. These objectives have been applied' in such Enercon-sponsored projects as auditing of more than 300 industries and consumers using at least P1 million worth of electricity and fuel annually. A earless day program has also been launch­ ed to persuade car owners to voluntarily refrain from using their cars at least one day in a week. Furthermore, the Ener­ con Council is authorized by LOI 328 to oversee and monitor plant conservation programs of industrial firms. These firms are required to report their monthly fuel consumption and productivity figures to the Council. There is no doubt that the success of the energy conservation drive depends primarily on the citizenry. Between Dec­ ember last year and this month, several programs of conservation were launched by Enercon. While support was en­ couraging at the start, this dissipated as thC T°n^S W6nt 'by~ “angays"un* happily -were*-fi&t as militant atcy started to be. Even government agencies, which began by religiously recording their fuel consumption—some even had fuel conservation units-waned in their enthusiasm. A suggestion has been made that government agencies must be the first observer of LOI 328. The fear of gas rationing seems to be the motivating force in participating in the conservation drive. This was re­ sorted to at the start of the 1973 crisis and everyone knew how this drastic alter­ native inconvenienced the population, especially those who owned fuel-ope­ rated shops. At that time, many factories were shut down, employees were laid off, and prices of essential commodities multiplied. To be sure that the conservation drive seeps to the local levels, Enercon organized directorates in the area. These are headed by responsible, civio-minded citizens. The Enercon Council conti­ nuously conducts researches and semi­ nars involving students, teachers and the general public. To sustain its information program, Enercon coordinates with the Department of Public Information. Asyong Aksaya of the Bureau of Na­ tional and Foreign Information (BNFI) is one product of this joint endeavor. Re­ cently, an agreement was concluded with the Department of Education and Culture (DEC) to include energy conser­ vation subjects in curricula for elemen­ tary and secondary private schools in Metro Manila. The agreement was based on the following: 1) everybody needs energy and thus, it is vital to modern life; 2) fuel energy is exhaustible-therefore, it must be conserved; and 3) correct energy use is related to better living. For its part, the Department of Finance is willing to grant tariff and tax incentives for the importation of energy­ saving machineries provided these are proven to be “critical variables” in pur­ suing the conservation projects among industrial firms. According to Atty. Rey Palmeiri of the Department, the govern­ ment can provide additional incentives in terms of priority loans from lending institutions such as tlje Development Bank of the Philippines. —G. J. Bayion