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Ernesto Ordoñez, PhD

3 February 2010
Outline of the Paper
 History
--Why Agrarian Reform?
 CARP Accomplishment: Taking Stock
--Role of Support Services
 Success Story
--Cost and Fund Sources
 Importance of Organization
 Recommendation

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History

 Philippines as an agricultural country


 History of revolts rooted on land
 44 land reform laws passed
 Only 2 have provision for services

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Why Agrarian Reform?
 Agrarian reform important for development
 Justice
 Poverty
 Productivity
 Food Security
 Support from
 United Nations
 World Bank
 Asian Development Bank
CARP Accomplishment: Taking
Stock
CARP Land Acquisition and Distribution Accomplishment, 2008

•Source: DAR as cited in Flores-Obanil (unpublished draft, 2008)


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CARP Accomplishment: Taking
Stock
Comparative Income of ARB and non-ARB Households,
2006

FARMERS INCOMES

YEAR ARB NON-ARB % DIFFERENCE


HOUSEHOLD HOUSEHOLD

1990 P4,776 P3,544 34%

2000 P16,008 P11,257 42%

2006 P18,852 P15,594 21%

Source: Asia Pacific Policy Center

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CARP Accomplishment: Taking Stock

 77.5% accomplished in private agricultural land


distribution
 83.7% in public land distribution and
stewardship
 Reservation on land distribution
 Only 1 of 10 ARB’s have CLOA’s

 Reservation on income increase


 Focused on ARC’s, which cover only 40% of ARB’s

Making Agrarian Reform Work, Ernesto Ordoñez PhD, Alyansa Agrikultura 7


Role of Support Services

 Support services key to agrarian reform


 CARP Impact Assessment Report 2000, Celia
Reyes and UPLB
 CARP Impact Assessment Report 2006, Asia
Pacific Policy Center
 Other CARP impact studies in 2006: Cielito
Habito, GTZ and DAR
 ARC Strategy Successful
 But less than 1/3 of ARBs have support
services
Making Agrarian Reform Work, Ernesto Ordoñez PhD, Alyansa Agrikultura 8
Success Story

 Agrarian Reform Infrastructure Support


Program (ARISP)
 Infrastructure development
 Institutional strengthening
 Income increase
 Luzon – 29%
 Visayas – 78%
 Mindanao – 38%

Making Agrarian Reform Work, Ernesto Ordoñez PhD, Alyansa Agrikultura 9


Success Story

ARISP
 Primarily a “Right-based” program
 Reinforces the strategy of focusing scare
resources in specific communities to maximize
impact
 Interventions are integrated: production, training,
marketing, and financing
 Puts a premium on people’s participation
 Inclusive rather than exclusive
 Both process and results oriented
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Cost and Fund Sources

 ARISP: P68,000 per ARB


 4.3 year payback, 23% annual return
 Higher than P23,000 allocation in law
 P19B annual addition is 1/3 of DA budget

 Fund Sources
 DA
 Agricultural Competitiveness Enhancement Fund
(ACEF)
 Land Bank

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Importance of Organization

 Organizing achieves economies of scale with


agrarian reform
 Anchor Approach (Octopus Analogy)
 Models
 Clustering
 Leaseback
 Cooperative
 Individual farmer-entrepreneur with marketing
contract
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Recommendation
 Several successes, but many failures: needs
revamp
 Many farmers are worse off than before
 ARC’s cover only 40% of ARB’s
 Only 30% of ARB’s get support services
 35% ARB’s have already lost their land titles
 Only 1 out of 10 ARB’s have individual CLOA’s
 Support services essential
 Minimum: replace landowner support services
 DA responsible for services and resources

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Recommendation
 Successful Models with Economies of Scale
Replicated
 Implement Alyansa Agrikultura
recommendation
 “Fast track completion of true agrarian reform…
This should be accompanied by the necessary
support services so that the farmers are better off
rather than worse off than before.”

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