Big boost to rural development initiative
OUR mission to raise the level of living and economic conditions in the rural parts of the country recently received a big boost when the World Bank unveiled its own plan to offer technical assistance that would guarantee sustainable rural development in the Philippines.
Why is this significant? Because when private sector and international multilateral funding agencies share an initiative, government support is bound to follow suit. Suddenly, all three sectors move in unison for the proverbial greater good. But the real challenge is to move from just mere lip service into actual execution and completion of the proposed programs and projects.
The Bretton Woods-created institution has offered technical assistance that would develop the operation of different government agencies in the country, specifically in providing technical inputs and other assistance that would develop the operational and institutional frameworks for the government.
According to Joseph Lim, a study consultant for World Bank, the initiative to establish a new rural development framework becomes impera- tive given the current institutional fragmentation in the delivery of agricultural and rural development services in the country. He can’t be more right. Despite constant promises by different administrations to alleviate the plight of poor rural communities, there exists a great discrepancy between the living conditions of Filipinos in the greater metropolitan Manila and the people outside it, especially in the Visayas and Mindanao. The reality is, that gap has not been bridged. We all hear it every time: the rich becomes richer and the poor becomes poorer. Despite the efforts of many sectors to spread the wealth, or in the case of the Rural Bankers Association of the Philippines, equip rural communities with the means to accumulate wealth on their own, these noble schemes have hit a wall.
Good thing this latest program of the World Bank has already reached the ears of our lawmakers. Policy options on agricultural diversification along a supply-chain approach, improving non-farm employment and incomes, and provision of safety nets to the severely marginalized were discussed with the House Committee on Rural Development, chaired by Rep. Wilfrido Mark Enverga of Quezon, according to the World Bank.
In recent years, our country has managed to restore macroeconomic stability and remained relatively resilient to external economic shocks, such as the global financial crisis and recession, and the impact of super typhoons and El Niño. We still enjoy a savings rate that exceeds our investments and Overseas Filipino Workers remain in high demand around the world.
But despite these achievements, “inclusive growth” that benefits the poor has been a continuing chal- lenge for the Philippines, the World Bank said, as poverty has remained at about the same level during the last decade. Twenty five percent of the population remains below the poverty line. The problem lies, as it always has been, in the effective deployment of financial resources in the countryside. Be it corruption, lack of infrastructure development or the seemingly unending strife between government and rebel troops, there remains a great roadblock against sustained development in the countryside.
But we can’t be frustrated. We just can’t. RBAP will remain committed to its goal and address these challenges to promote economic growth among rural communities. Just as programs such as World Bank’s continue to be pushed, so will our commitment. The agri- agra sector, in which a significant percentage of total loans are invested, remains foremost in our goals to promote countryside development. In addition, 33.56 percent of rural banks’ loan portfolio, updated as of November 2011, is invested in the agriculture sector, or P35.525 billion.
The Aquino Administration’s continuing focus against corruption is another source of hope. It is intended not only to improve the investment climate for domestic and foreign investors, but also to enhance social service delivery and help reduce poverty through more accountable governance.
It is also very inspiring to think about how some Filipinos have used their resourcefulness to not only help themselves but also their communities. The Isang Litrong Liwanag (a liter of light) project of the Myshelter Foundation, which primarily involves the use of solar bottle lights as the ultimate cheap source of light in some 20 cities and provinces literally and figuratively provide light at the end of the tunnel. Students of the Massachusetts Institute of Technology originally developed this technology.
What started as an energy-saving supplemental light in rural classrooms in Laguna was eventually applied to surrounding communities.
The project basically involves placing a bottle containing water and bleach into a purpose-built hole in a roof. When sunlight hits the bottle, it virtually becomes a homemade bulb as it refracts and spreads sunlight, effectively illuminating the room beneath. Today, the project has expanded to more than 15,000 solar bottle bulbs in 20 cities and provinces, benefiting more than 200,000 families. It aims to reach 1 million beneficiaries this year. This very clever project provides poor households at least P200 to P400 savings per month on their electric bills.
This also did not go unnoticed by the international community. Recently, the United Nations’ (UN) Momentum for Change Initiative has given its prestigious recognition to this project along with other innovative undertakings. The UN said the liter of light project contributes toward fighting poverty. It is also very likely to be replicated in other countries. Chalk one up for another contribution by Filipinos to the world.
Enduring rural development remains an elusive dream. But if we all use our resources, tapping the support of institutions such as the rural banking sector, as well as our creative minds and unrelenting drive to achieve our common goal, mere hope inches closer to becoming a reality.