The World Food Summit of 1996 defined food security as a condition “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”. The concept of food security is regarded as having both physical and economic access to food that meets people's dietary needs and their food preferences. A recent publication of the Food and Agriculture Organization of the United Nations underscored the food insecurity problem the world is facing. Food production needs to increase by 70 percent to keep up with the global population that is projected to grow from 6 billion in 2009 to 9 billion in 2050.

Food security is a major concern of the agricultural sector since it produces the bulk of a country's food needs. Both the government and the private sector can work together to generate more investments in the food sector so as to increase the capacity to produce more food. In a discussion paper, Dr. Gilberto Llanto, PIDS president, and Ms. Jocelyn Badiola described various financing schemes for food production, such as value chain financing (e.g., contract growing), risk reduction instruments (e.g., index-based weather insurance and guarantee schemes), and credit delivery structures. In all these mechanisms, the authors stressed the role of government in creating an enabling policy and regulatory environment to encourage investments from the private sector.

Rice and corn are the Philippines’ staple crops and the main sources of income of the majority of small farmers. Rice self-sufficiency remains a contentious issue in the country. Three years ago, the government launched the Food Staples Sufficiency Program (FSSP) where food self-sufficiency is envisioned as a scenario where domestic requirements for food, seeds, processing, and feeds are met through local production. Dr. Roehlano Briones, a PIDS senior research fellow, argued that rice self-sufficiency on the notion of zero importation is not feasible. The FSSP assumed a fixed per-capita consumption which is not possible given the ever-increasing population growth. Briones’ analysis also indicated that the projected growth rates of palay production under the program are too ambitious to achieve based on historical trends. Briones stressed that what is needed is a pragmatic approach based on sound evidence. The more crucial strategy to pursue, he said, is to expand the area harvested and to raise yield through irrigation, which is another problematic subject based on recent PIDS studies showing that many publicly funded irrigation systems are performing poorly due to their inappropriate design arising from incorrect technical and economic assumptions. “Self-sufficiency should be pursued with more realistic targets and more cost-effective support mechanisms to rice producers, such as research and development and extension activities to generate and spread new rice farm technologies,” he added.

In the wake of national calamities that have gripped the country in recent years and months, food security is further put in peril. Typhoons, floods, and droughts have significant impact on food production. Based on a study by Briones and another PIDS research fellow, Dr. Danilo Israel, the total value of agricultural damage caused by natural calamities from 2000 to 2010 amounted to more than PHP 100 million, with rice, corn and high-value crops receiving the most damage. The figure excluded the damage to agricultural facilities, which was valued at PHP 4.9 million and at PHP 9.7 million for irrigation infrastructure. The study recommended site-specific support to farmers and provision of post-disaster emergency employment in affected communities aside from emergency food assistance.

Attaining sustainable growth of the agricultural sector is an efficient path to food security. Sustainable agriculture is also critical for increasing rural incomes and reducing poverty. The persistent sluggishness of Philippine agriculture will further widen the gap between rural and urban incomes, and aggravate urban problems when rural people relocate to the cities to seek opportunities they cannot find in the countryside. PIDS studies have attributed its slow growth to policy biases against the sector as a result of trade protection, high rate of population growth, unequal land distribution, and limited access of the rural poor to essential services such as physical infrastructure, health and education services, and agricultural finance.

To know more about PIDS research on food security, visit the SocioEconomic Research Portal for the Philippines. Simply type “food security”, “food insecurity”, “agriculture”, “rice self-sufficiency”, “financial scheme”, “agricultural finance” and related terms in the Search box.

1. Innovation in Financing Food security
2. Philippines: Food Security versus Agricultural Exports?
3. Impacts of Natural Disasters on Agriculture, Food Security, and Natural Resources and Environment in the Philippines
4. Food Security
5. Addressing constraints to agricultural finance to boost food production
6. Putting rice on the table: rice policy, the WTO, and food security
7. Rice self-sufficiency: is it feasible?
8. Policy coordination for food security: the case of the ASEAN Rice Trade Forum
9. Bakit nagmahal ang bigas noong 2013? At bakit mahal pa rin? The continuing saga of rice self-sufficiency in the Philippines
10. Rice self-sufficiency = no rice imports: Is it really feasible?

The Economic and Social Database (ESD) is one of the databases that PIDS maintains as part of its policy research strategy and mandate as a repository of economic research information. Started in 1995, the ESD is an in-house project that has been constantly upgraded to make its interface more user-friendly and contents more relevant to the research community and the public in general.

The ESD keeps various Philippine economic and social data both at the national and sub-national levels and in long time series for some. The data are downloadable and exportable into spreadsheet for ease of use in data analysis. One can also do simple calculations and post-processing within the database system. The database contains sections on key indicators, economic data, social statistics, Community-based Monitoring System (CBMS) indicators. With databases like the ESD, PIDS hopes to encourage the conduct of policy-oriented studies, assist in decisionmaking processes, and facilitate public discussions on major policy issues.

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27 JANUARY 2015
Pulong Saliksikan on Massive Open Online Courses (MOOCs)
C.P. Romulo Hall, NEDA sa Makati Bldg., Amorsolo Street, Makati City
Speaker: Dr. Marito Garcia (Former lead economist, World Bank)

10 DECEMBER 2014
Pulong saliksikan on poverty impacts of changes in the price of agricultural commodities: recent evidence for Argentina (an ex-ante analysis)
Room 208, NEDA sa Makati Bldg., Amorsolo Street, Makati City

POLICY NOTE

• PN 2015-01: Feeding Severely Wasted Children in School: Examining Processes in DepED’s School Feeding Program
  by Jose Ramon G. Albert, Ana Maria L. Tabunda, and Imelda Angeles-Agdeppa
  

In the Philippines, the Department of Education (DepED) has been conducting food for education (FFE) programs since 1997. Its current FFE program, the School-Based Feeding Program (SBFP), has for its main objectives the rehabilitation of severely wasted children to normal nutrition status and the improvement of classroom attendance of these children, as well as that of their health and nutrition status and behavior. This Policy Note presents the findings of the process evaluation of the SBFP. In particular, the evaluation examined the processes undertaken by the DepED in the SBFP and complementary activities during SY 2013-2014, when DepED targeted 40,361 beneficiaries enrolled in 814 schools located in 20 provinces and eight cities. The Note finds that while the program has been managed well, there are implementation issues that need to be addressed, and policies that may require adjustments.

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RESEARCH PAPER

• RPS 2014-02: Choke Points and Opportunities in the Supply Chain of ASEAN Agricultural Products: A Philippine Country Study
  by Roehlano M. Briones and Danilo C. Israel

This study identifies and examines "choke points" in the supply chain of two selected commodity groups that are of interest to the region of the Association of Southeast Asian Nations: crude coconut oil (which belongs to the HS15 group), and fish and crustacean, mollusks, and other aquatic invertebrates (which belong to the HS03 group). For crude coconut oil, no major choke points were identified from mill site to export stages, but cost and delay factors were found at the farm-to-mill stage, such as low farm productivity, among others. For fisheries, several choke points were identified, such as poor quality of domestic roads and low capacity of vehicles, among others. The study recommends specific types of road investments, a competition policy in domestic shipping (both for crude coconut oil and fisheries), industry restructuring in the case of coconut, and compliance with SPS measures in the case of fisheries.

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DEVELOPMENT RESEARCH NEWS

• DRN 2014 Vol. XXXII No. 4: Philippine Agriculture Saddled by Poor Irrigation Systems
  by PIDS Research Information Staff

The main feature in this issue dwells on the critical policy issues in irrigation development confronting the agriculture sector. In particular, it discusses the unsuitable design of irrigation systems arising from poor assumptions and technical calculations, the trade-offs between construction of new systems and rehabilitation of existing ones, operational and maintenance issues, and financing and cost recovery. Since the 1980s, the relevance of continuing the heavy public investments in irrigation expansion has begun to be questioned due to the consistently poor performance of the national irrigation systems.

This issue also features the AEC fora organized by PIDS and the National Economic Development Authority (NEDA) in various regional hubs of the country, the seminar collaboration of PIDS and the Congressional Policy and Budget Research Department, and the workshops on impact evaluation methods and tools organized by the Institute for the staff of the NEDA and the Department of Budget and Management.

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ECONOMIC ISSUE OF THE DAY

• EID 2014 Vol. XIV No. 2: Amending the Economic Provisions of the 1987 Constitution
  by Claudette S. Malana

This issue of the EID features the amendment of the economic provisions of the 1987 Constitution. Amending the Constitution's economic provisions is an ideal recourse for the Philippines if it wants to benefit from the establishment of the ASEAN Economic Community (AEC) in 2015. The country needs to be competitive in order to take advantage of the growing marketplace of opportunities, especially for small and medium enterprises. Platforms like the AEC and other free trade agreements are gaining more success in terms of reducing or removing market entry and access issues.

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DISCUSSION PAPERS

• DP 2014-51: Analysis of Catastrophic Health Financing by Key Institutions
  by Alvin B. Caballes

Financial protection of patients is considered a key component of health systems, and has been a consistent policy goal of the Department of Health. Of paramount importance in this regard are catastrophic health expenditures, which can severely restrict the access to much-needed services, contribute to (further) impoverishment, or result in both, for the affected patients and families. This study was undertaken to determine the institutional mechanisms for addressing these expenditures, and develop a framework to improve the existing arrangements. Focus group discussions (FGDs) and consultations were conducted for this study.

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• DP 2014-50: Analysis of the Maintenance and Depreciation Costs and other Requirements of Selected Government Hospitals
  by Eduardo P. Banzon, Ma. Gerry Lyn Alcantara, Maria Alyana Diez, and Lorra Angelia Sayson

To a large extent, planning and budgeting in government hospitals are still carried out in an unsystematic, nonstrategic manner that goes against the thrust of current reforms. Historic budgeting proves to be inadequate in responding to the real needs of hospitals, especially in terms of maintaining its capital assets. The lack of clear guidelines and protocols on prioritization and budget decisions render the process vulnerable to subjective influences. This paper provides information on the appropriate capital management and investments in maintaining and upgrading equipment and capital plant by analyzing the budgeting practices, maintenance and depreciation costs, and requirements of public hospitals.

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• DP 2014-49: Assessing the Feasibility of Public-Private Partnerships in Health in the Philippines
  by Eduardo P. Banzon, F.J. Young, P.A. Factor, B.L. Ho, J.A. Lucero, and M.E. Puyat

The government has decided to utilize the public-private partnership (PPP) program to help improve access to quality hospitals and health care facilities. This paper looks into the feasibility of implementing PPPs in the health sector. Review of literature, key informant interviews, and focus group discussions were conducted for the study. The Philippine hospital system was reviewed using five performance criteria, namely, improved health care access, equity, and quality, operating with maximum efficiency, and ensuring sustainability followed by the development of an assessment framework; the application of the said framework; and policy and program implementation recommendations for health PPPs.

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• DP 2014-48: Public-Private Partnership Options toward Achieving Universal Health Coverage in the Philippine Setting
  by Eduardo P. Banzon, J.A. Lucero, B.L. Ho, M.E. Puyat, E.J. Quibod, and P.A. Factor

Public-private partnerships (PPPs) are increasingly being utilized to meet development goals of many countries and there is much potential for PPPs to help address health inequities and advance universal health care (UHC). In support of these efforts, the paper defines PPPs and their role in the health system and proposes health PPP options that would support the pursuit of UHC. The objectives of this paper are to define what PPPs are and their application in the health sector. The paper presents representative case studies or models of PPP practices in health. Furthermore, it aims to provide a methodology for decisionmakers and stakeholders in developing health PPPs.

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• DP 2014-47: Formative Evaluation of the DOH's Complete Treatment Pack (Compack) Program
  by Dennis B. Batangan

The Complete Treatment Pack (COMPACK) program is a medicine access program designed to reach the poorest of the poor with complete treatment regimens for the top most common diseases in the country. The program aims to address the increasing morbidity and mortality due to these common diseases and high out-of-pocket spending in medicines and health services for majority of Filipinos. COMPACK also aims to expand the choices and ensure access and availability of affordable quality generics to other segments of the population otherwise not included in the Pantawid Pamilyang Pilipino Program (4Ps) of the national government. This study is a formative evaluation of the Department of Health (DOH) COMPACK program that also aims to analyze the impact of the access-to-medicines program.

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• DP 2014-46: Review of Experience of Social Health Insurance in Three Asian Countries: China, Thailand, and Vietnam
  by Rolando G. Talampas

The study assesses the experience of three Asian countries—China, Thailand, and Vietnam— in the pursuit of universal health coverage (UHC) of their social health insurance schemes. It seeks to analyze a set of domains including membership fees, services, benefits, equity, among others, relative to the economic and political conditions of these countries as "push and pull" factors in achieving UHC. This paper mainly utilizes empirical studies, assessment reports, international discussions and proceedings, and individual country plans of integrating, widening, and deepening health insurance coverage with the end goal of identifying comparative areas where the Philippines might be able to benchmark itself in its UHC quest. The study adopts the UHC cube of the World Health Organization as the framework for the review. It finally submits applicable recommendations that the Philippines may consider in advancing its plans toward universal health coverage.

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• DP 2014-45: Feasibility of Supplemental Funds from the Private Sector for Catastrophic Illness Financing
  by Noel R. Juban, Benito R. Reverente, Jr., and Maria Socorro S.D. Santos

Catastrophic illnesses can push a household into poverty by causing unmanageable, or catastrophic, expenditures for their treatment or management. Kalusugan Pangkalahatan aims to provide financial risk protection for the poor. Hence, insurance coverage for catastrophic illnesses need to be strengthened. However, the scope of the PhilHealth Z benefits, which was developed to protect Filipinos affected with certain medical conditions from financial catastrophe, is limited. This report provides an analysis of the feasibility of supplemental funds from the private sector, specifically from health maintenance organizations (HMOs) and self-insured companies, for the Z benefits program. Key informant interviews were conducted with representatives of PhilHealth, HMOs, and self-insured companies to determine the constraints, prospects, and requirements to implement a supplemental fund. Results were analyzed thematically.

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• DP 2014-44: Study to Support Improvement of the PNHA Components: Expenditures on Employer-provided Health Care and Private Schools Health Services
  by Rachel H. Racelis

The expenditures for employer-provided health care in private establishments and for student health services in private schools are two components estimated in the Philippine National Health Accounts (PNHA). The basic methodology for producing the annual estimates of the two components have remained the same since the first PNHA was produced in 1994 and estimation procedures had continued to use through the years the parameters (average costs) generated from the 1993-1994 establishments and private schools surveys. The surveys on health expenditures of private establishments and private schools were conducted again in 2013-2014 as part of this study. Results from the new surveys are used to generate the updated parameters for PNHA estimation. Additionally, results from the survey provide detail on curative care provision and preventive health care activities of establishments and private schools.

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• DP 2014-43: Stories from Around the Globe: Financing Catastrophic Health Expenditures in Selected Countries
  by Anna Mae D. dela Cruz, Christian Edward L. Nuevo, Nel Jason L. Haw, and Vincent Anthony S. Tang

This study reviews literature on financing catastrophic health expenditures in selected countries to describe and synthesize the strategies of relatively successful health financing schemes. It begins with a review of basic concepts and definitions to set the stage for later discussions. This is followed by a country selection process, where countries were selected based on their income level, health outcomes, coverage outcomes, cost effectiveness, and the availability of information on their health financing strategies. Low-income, lower middle-income, and upper middle-income countries were selected, each one having above average outcomes and cost effectiveness relative to other countries within the same income level. The availability of information further limited the selection to three countries--Kyrgyz Republic, Sri Lanka, and Thailand--on which a desk review was conducted. The study presents the stories of each country and the common themes that emerged.

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• DP 2014-42: Reconnaissance Study on the Implementation of Case-Based Payments
  by Godofreda Dalmacion, Noel R. Juban, and Zenith Zordilla

To improve PhilHealth's benefits framework, enhance hospital services, and achieve one of the Universal Health Care's thrusts, greater financial protection, the case-based payment (CBP) scheme was implemented in 2011. CBP is a provider payment scheme initially implemented with rates for the 23 most common medical and surgical cases. This study investigates what has happened with CBP after its nationwide implementation through the perspectives of the following stakeholders, such as PhilHealth, administrators of health facilities, and health care providers. This also concerns operational aspects of the implementation not an assessment whether CBP helped achieve Universal Health Coverage for the Philippines. The approach used in this study is a mix of qualitative methods including desk review of the legal framework of health financing, administrative orders related to CBP, key informant interviews, and survey on health care providers. Areas of implementation were thematically grouped into four categories based on the results of interviews and survey, namely: (1) administration and system, (2) human resources, (3) medical integrity, and (4) financing.

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• DP 2014-41: Interim Assessment of the PhilHealth CARES Project
  by Nina T. Castillo-Carandang, Emmanuel S. Baja, Brent Andrew G. Viray, and Pamela A. Tagle

The PhilHealth Customer Assistance, Relations and Empowerment Staff (CARES) project was launched in 2012 to help members and their families navigate the complex Filipino health care system. The study assesses the design and quality of implementation of the PhilHealth CARES project in selected hospitals in PhilHealth's National Capital Region (NCR). The specific objectives were: (1) understand the overall goals and objectives of the project and how these are being understood by the project managers, implementers, and staff in selected areas in NCR; (2) evaluate to what extent project objectives are being met; (3) identify the project strengths, weaknesses, opportunities, and threats as perceived by CARES managers, implementers, and staff; and (4) craft appropriate policy and programmatic responses to improve project implementation.

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• DP 2014-40: Tuberculosis and Diabetes Mellitus Control and Care: A Rapid Situational Analysis for Planning a Coordinated Program Response
  by Emmanuel S. Baja, Mary Ann D. Lansang, Marissa M. Alejandria, Nina T. Castillo-Carandang, Jill R. Itable, and Grace Kathleen Serrano

Tuberculosis (TB) remains one of the leading killers among bacterial diseases worldwide. In the Philippines, the prevalence of culture-positive TB is estimated to be 5 per 1000 and that for sputum smear-positive pulmonary TB is 2 per 1000 based on the 2007 National Prevalence Survey. In addition, the prevalence of metabolic syndrome among Filipinos is 5 percent or approximately 5 million people have diabetes (DM) in the Philippines. With the Philippines being endemic for TB, compounded by an upward trend of DM, there is a need to jointly address this tandem disease interaction. This study aims to mount a coordinated response to TB/DM with the following expectations: (1) improve the case detection rate for TB, (2) facilitate early management among patients, and (3) prevent a significant number of severe disease and deaths.

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GROSS DOMESTIC PRODUCT

The Gross Domestic Product (GDP) grew by 5.3 percent in the third quarter of 2014. This rate is below that of the same quarter last year by 1.7 percentage points. The GNI likewise decelerated. It grew by 4.8 percent, almost half the growth rate in the same period last year (i.e. 9%).

Source: Philippine Statistics Authority

VIEW TABLE for time-series data on gross national product and gross nation income.

EXCHANGE RATE

The average peso-dollar exchange rate went down to Php 44.688 in December 2014, from Php 44.951 in November 2014. This is higher compared to Php 44.104 in the same period in 2013. This was the first time the monthly exchange rate went down within the last 5 consecutive months of 2014.

Source: Bangko Sentral ng Pilipinas

VIEW TABLE for time-series data on monthly average peso-dollar exchange rate

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