PROGRAMS/PROJECTS

AGRICULTURE,
SOCIAL SUPPORT
AND ENVIRONMENT
FACILITIES

COUNTRYSIDE
PROGRAMS FOR
CHILDREN (CPC) VI

KAPIT BISIG
LABAN SA
KAHIRAPAN
(KALAHI)

PUBLICATIONS/REPORTS

REGIONAL
DEVELOPMENT
REPORT CY 2006

QUARTERLY REGIONAL ECONOMIC SITUATIONER
1^st QUARTER 2008

ACCOMPLISHMENT
REPORT 2006

BIKOL KNOWLEDGE
EMPORIUM

NEWS UPDATES

NEDA 5 CONDUCTS MID-YEAR INTERNAL PLANNING

   The NEDA Regional Office 5 (NEDA 5) conducted a three-day mid-year internal planning workshop on June 26, 27 & 30, 2008 to review the first semester accomplishments and existing functional structure and recommend actions to strengthen office operations and improve service delivery to NEDA 5’s clients.

   NEDA 5 Regional Director Romeo C. Escandor, in his opening message, emphasized the need to revisit the NEDA 5 work program and review its targets vis-à-vis accomplishments. This is to come up with an improved functional structure and address, as well, the sectoral concerns of various stakeholders in the region. He also said that an evaluation of the Office Performance Evaluation System (OPES) is necessary to determine its strengths, weaknesses and relevance with regard to the efficient performance of the office and its staff.

    Each division presented its accomplishments for the first semester CY 2008 as well as the problems and issues that affected their performance. The staffs were grouped by functional division, to wit: plan and policy formulation; project development, investment programming and budgeting; knowledge management; and project monitoring and evaluation. Each group assessed the functional division assigned to it and came up with well-defined tasks and activities for each division. Each group also proposed the various job descriptions for each position title in each division. The workshop outputs were presented for comments, suggestions and recommendations. The result was a revised NEDA 5 staffing pattern where each technical division shall have, initially, six technical staff complement. The said output was also made as basis for the preparation of the revised work program for the second semester CY 2008.

   With regard to OPES, the staff noted that the system only considers the time value but not the quality of work done. They feel that such system is not applicable to NEDA but would be more beneficial in the assessment of front line and regulatory agencies whose objective is more on the quantity of clients served at the least possible time.

   The implementation of the workshop recommendations will make NEDA 5 more proactive to changes in its external environment and hopes to respond more quickly to regional problems and continue to be a catalyst for regional development.

The Law of Supply and Demand : The Culprit of Price Crisis

   A month ago, people were made to believe that the country is facing a rice crisis. Anywhere in the country, people lined up to buy NFA rice because the price of commercial rice climbed from P27.00 per kilo in January to P36.00 in April. It seems that it was just an artificial shortage of rice peddled by hoarders and some businessmen who wanted to make big profit by tightening supply of grains in the market.

   The fact is, we don’t have rice crisis but a price crisis brought about by an increase in the average price of Asian Dubai crude from $103.41 a barrel in April to almost $120.00 in May.

  Because of soaring price of oil caused by persistent increase in the world crude price, prices of goods and services in the Bicol Region shoot up. The April inflation data shows the consumer price index has risen to 149.8 percent. This indicates that the consumer prices on the average have increased by 49.8% from 2000. Inflation rate, on the other hand, rose to 7.8 percent which reveals that the average level of consumer goods and services increased by 7.8% from the same period last year. This brings us to the lowering of purchasing power of peso to 67 centavos, that is, the same amount of goods that can be bought with 67 centavos in 2000 can be bought with one peso in April 2008.

   The steep inflation rate is happening despite the strengthening of the peso as against the dollar because peso’s gains against the dollar could not offset the even steeper rise in world crude oil prices.

   The price of oil is dependent on world crude price and foreign exchange because oil price is in dollars. Based on current levels of crude price and forex, the rule of thumb is that every peso change in the value of the peso against the US dollar translates to a domestic price adjustment of 18 to 20 centavos per liter. On the other hand, domestic prices will be adjusted by roughly 31 centavos per liter for every US dollar change in crude FOB¹.

   The principle of Law of Supply and Demand holds true with the price of oil. The price of oil goes up when oil producers decide for more revenues for their crude oil by cutting back their production thus limiting supply and resulting to an increasing demand for oil. These factors put together can result to very serious inventory draw downs worldwide and skyrocketing prices of world crude oil.

   The effect of oil price hike is encompassing. It causes, not only an increase in the prices of basic commodities but also prices in distribution and production costs. In this case, regional areas are more affected because goods go through a larger process of distribution hence more expenses are incurred. This includes increase in transportation fare due to hike in the prices of spare parts, and other accessories needed for operation covering cost of repairs and maintenance, fuel, oil and lubricants, and labor due to rise in minimum wage.

   Talking of minimum wage rate, every time consumer price index rises, a demand by the labor group on wage increase is inevitable. However, a balance between economic and social concerns must be established to avoid a significant decline in employment due to closure by some businesses that cannot cope with the increase in labor and production costs.

   Increase in oil price causes spikes in prices of production inputs. This is the reason why prices of rice increased. Because of expensive inputs to produce rice, farmers shifted to other crops resulting to low production levels of palay. Food security, then, becomes the urgent issue not only in the Philippines but across the globe as well. Countries have not been able to export the usual levels of basic food commodities due to low production levels caused, not only by the increase in oil prices, but by climate change, and other factors. In the Philippines, aside from these factors that caused low production of palay, conversion of prime rice lands into other uses have been rampant in the last decade. Thus, consumption outstripped production causing a short supply and increase in prices. And we are back to the principle of “Law of Supply and Demand”.                         TChong (NEDA5)

¹ Conceptual Framework on Supervening Condition

NEDA 5 Hosts Bicol Planners' Forum

  The NEDA Regional Office 5 hosted the Bicol Planners' Forum on April 30, 2008 in coordination with the League of Local Planners in Bicol, comprising the Planning and Development Coordinators of the six provinces, seven cities, and 107 municipalities in the region.

   Fifty of the 120 local provincial/city/municipal government units sent representatives to the one-day forum, which provided a venue for sharing ideas and information, as well as resolving issues that would help in achieving good governance at the local level.

   The topics that were presented include the following:

Comprehensive Investment Programming Guidelines, which provide the procedures and requirements for programs and projects to get into the Regional Development Investment Program (RDIP);

Bicol Project Development Committee (BPDC) that was created by the RDC 5 to elevate the level of project preparedness and facilitate donor assistance to regionally identified priority projects;

Agriculture, Social Support and Environmental Facilities (ASSEF) Project, a grant facility from the Spanish Government through the Agencia Española de Cooperacion International (AECI) which seeks to increase the agricultural productivity and income of farmers, as well as improve the environmental condition of the region;

   Responding to questions raised, Engr. Luis Banua (NRO 5) explained the reasons for non-availment of the grant facility by some eligible LGUs (4^th, 5^th, and 6^th class municipalities), which include: failure to liquidate previous KR2 projects, difficulty of counterpart funding, disaster-related concerns, and the recent national/barangay elections;

Albay in Action on Climate Change, an initiative of the Provincial Government of Albay on climate change adaptation, which also include some results of the studies conducted on the impacts of climate change on the province and the region;

Ecological Solid Waste Management Act, presented by Mr. Rudolph Lita (DENR-EMB), which focused on the status of compliance of LGUs to the provisions of the Solid Waste Management Act;

   Questions from the plenary were on the framework for the formulation of the Solid Waste Management Plan (SWMP) of LGUs and the nature of assistance being provided by DENR-EMB to LGUs. Mr. Lita responded that the DENR-EMB provides technical assistance on the identification of potential sanitary landfill sites. It was agreed that the League of Planners in the region shall coordinate with DENR-EMB in coming up with a training proposal for the preparation of the SWMP;

Updated Bicol Development Plan 2008-2010, presented by Ms. Rosemarie Buan (NRO 5), highlighting the roles of LGUs in plan implementation, monitoring and evaluation.

Joint Memorandum Circular (JMC) 1 presented by Dir. Blandino Maceda (DILG), highlighting on the responsibilities of the local government units in planning, investment programming and local expenditure management; and

Mainstreaming Disaster Risk Reduction (DRR) in Local Planning presented by Ms. Cynthia Berces (NRO 5), highlighting on the planning framework for including disaster risk reduction in all stages in the planning process with the objective of building resilient communities.

NEDA Region 5 conducts Project Development Training

for low income municipalities

The NEDA Regional Office 5, through its Project Development Assistance Center (PDAC), conducted a Project Development Training (PDT) course for 4th, 5th and 6th class municipalities last March 3-6, 2008 at Mayon Spring Resort, Sto. Domingo, Albay. The training aims to enhance the technical capability of project proponents and improve the region's level of project preparedness.

   The participants were trained on the basic tools and techniques in the preparation of project feasibility studies and project proposals. The output of the training was a project proposal to be submitted by each municipality, for possible funding under the Agriculture, Social Support and Environment Facility (ASSEF) Project funded by the Spanish Government.

   A total of 41 participants from 13 LGUs composed of local planners, agricultural officers, municipal engineers, local legislators, municipal health officers and other municipal personnel attended the training.

   This PDT activity intends to cover LGUs, line agencies and SUCs who wish to tap NEDA for project development assistance, especially for regionally-identified priority programs and projects.

ANNOUNCEMENT

JAN TIMBERGEN AWARDS

ISI COMPETITION FOR YOUNG STATISTICIANS

   The International Statistical Institute (ISI) has announced the call for papers for the Competition for Young Statisticians in Developing Countries (Jan Timbergen Awards) where authors of the prize winning papers will be eligible to present their work at the 57th Session of the ISI on 16-22 August 2009 to be held in Durban, South Africa.

   For more details please log on to http://isi.cbs.nl/tinbergen/2009papers.htm

For more information visit their website:
http://www.statssa.gov.za/isi2009/index.aspx