Prometheus

Bound
The State of Science and Technology
in the Philippines

Samahan ng Nagtataguyod ng Agham at

Teknolohiya para sa Sambayanan (AGHAM)
Advocates of Science and Technology for the People
2005
This material has been published with financial support
from the office of Representative Satur C. Ocampo.

Reproduction in parts or in whole is allowed even

without permission from the publishers provided that
the authors are properly acknowledged when quoted.
FOREWORD

S WITH ANY SEARCH FOR UNDERSTANDING OF A PARTICULAR

a SITUATION, we begin the analysis of the Philippine state of science

and technology with its description. This entails quantifying and
describing the concrete state of things and listing the particulars of what
we mean by a backward and stunted state of science and technology. That
we do not have an advanced state of science and technology is a statement
generally shared and experienced directly by many scientists and engineers
in the Philippines. To deepen and enrich our understanding beyond this
perceptual and descriptive level, we have to investigate and study the existing
relations between science and society; between scientists and the products
of their activities; between scientists, science and technology and the rest
of society.
The place of science in society is already familiar to scientists— how
scientific activities depend on the changing needs of society; how these
activities change productive methods and how these productive methods
eventually contribute to change in society. Science, technology and society
are inextricably linked in the daily production activities to meet man’s material
needs. This is true in every historical epoch human societies have undergone.
This is one of the key elements that have guided us in writing this paper and
therefore we take a bit more detail in looking at the relations between our
economic and social conditions to the current state of science and technology.
Another key idea is trying to understand why despite new knowledge
and technologies being developed almost routinely around the world, still a
great majority of people live in abject poverty. And nowhere is this irony
more intense than in countries like the Philippines. We have bright and
learned scientists; we have people who can benefit from the skills of these
scientists. Yet scientists find it hard to practice in this country and develop
new technologies for our people. We have engineers who can find jobs only
in foreign-owned companies or abroad. Meanwhile, we import manufactured
goods at great costs. This despite the intellectual understanding of the
processes and technologies necessary to produce such goods.
Why is it so? Who benefits from this situation? How can we change it?
Improving the state of science and technology in the Philippines is
therefore not just a matter of increasing the number of scientists, building
the necessary infrastructures and generating successful technologies.
Improving science and technology should mean addressing both sides of
the coin: why Philippine science and technology remains backward and
stunted and why it fails to benefit our people.
 This paper hopes to contribute in the understanding of these issues.
In the process of writing this paper, we saw that there are a lot more
information that should be sought and that even more questions need to be
answered. But we believe that this paper is a step bring closer to
understanding and discovering ways on how to make science and
technology meaningful to the Filipino people.

Edward Deveza, MS
Assistant Professor
Technology Management Center
University of the Philippines Diliman

Henry Ramos, Ph.D

Head
Science and Society Program, College of Science
University of the Philippines Diliman.

Giovanni Tapang, Ph.D.

National Chairperson
Samahan ng Nagtataguyod ng Agham at
Teknolohiya para sa Sambayanan
AGHAM
TABLE OF CONTENTS

Foreword

Introduction 01

Framework 03

The Backward and Stunted State of Science and

Technology in the Philippines 6
Basic Industries in the Philippines: Little or
No Industrial Activity 7
Mineral Extraction 8
Chemicals 9
Energy 9
Manufacturing 10
Food Products Manufacturing
Chemical Manufactuuring
Garment and Textile Manufacturing
Electronics Manufacturing
Agriculture 13
Crops Subsector
Livestock and Poultry Subsector
Science and Technology Education 16
Research and Development (R&D) 17
Control and Ownership of Industrial
Firms in the Country 21

Analysis 22

Conclusion 28

References

The title PROMETHEUS BOUND is a metaphorical statement of the current S&T situation in the Philippine
society. Prometheus is also a greek word for “forethought”. Prometheus is a god in greek mythology, who gave
the mortals all sorts of gifts. Prometheus’ divine gift of fire unleashed a flood of inventiveness and productivity
in the rapidly developing mortals. As punishment for giving the ability to create and develop without the gods,
Zeus had Prometheus in shackles and each day, Zeus’ eagle would devour the liver of his immortal flesh. Each
night the flesh would heal so the eagle could begin anew at the first touch of dawn.
LIST OF TABLES

Table Number and Title

1 National Income in Millions of Pesos during the First Quarter

of 2002 and 2001

2 Number of Employed Persons, in Thousands, by Major

Industry Group, January 2003

3 Manufacturing Sector Based on Employment in 1993

4 Capacity of the Food Manufacturing Sector in Metric Tons

5 Philippine Private Agricultural Research, 1985 and 1995

6 Types of Agricultural Firms with R&D Activities

7 Total Quantity of Patented Agricultural Technologies from

1948-1995

8 R&D Expenditures in US$

9 Preliminary Estimates of National R&D Expenditures by

Sector at Current Prices (2002), in Thousand Pesos

10 Preliminary Estimates of National R&D Expenditures by Types

of Research at Current (2001) Prices, in Millions of Pesos

11 Patent Applications of Residents and Foreigners in Selected

Countries

12 Total Number of R&D Personnel

13 Full-time and Part-time R&D Personnel by Sector

 The State of Science and Technology in the Philippines 1

INTRODUCTION

T
HE EXTRAORDINARY RAPID ADVANCES in science and
technology (S&T) are transforming old industries, creating new ones
and now permeate almost every aspect of human life. Yet science
and technology also confronts its greatest challenges to address widespread
famine and hunger, rapid ecological destruction, the breakdown of health
systems, social decay and disintegration.
Daily, one sees and hears of new discoveries that typify the progress in
humanity’s understanding of nature and society: new advances in physics,
biology, technology, space discoveries and the like are commonplace. Yet
the pace at which these rapid changes occur obscure the fact that the immense
newly-released constructive forces of a new scientific technology are brought
into a deeply divided world with uneven development. These great
technological advances and scientific discoveries have failed to bring concrete
benefits and real development for the majority of the people of the world.
Even with the level of agricultural productivity possible today, almost one
billion people go hungry and 160 million more are malnourished. Every
day, more than 70,000 persons join the hungry and starving masses in the
world [36].
On the other hand, in 2004, the world’s richest 20 percent own 85 percent
of the world’s income. This is 150 times the wealth of the world’s poorest 20
percent. The world’s three wealthiest persons, all based in the US, have
combined assets greater than the gross domestic product (GDP) of the 48
poorest countries with a total population of 600 million. The concentration
and centralization of technologies, research and development and capital to
only a few industrialized countries has been unprecedented. Giant
corporations have merged with each other resulting- to only two companies
engaged in manufacturing big commercial planes, only three giant oil
companies remained out of the “seven sisters” of the 1970s and only 11 from
the former 40 independent car manufacturers worldwide. The adoption of
higher technology and the full swing of “free market” globalization have
served to deepen and aggravate the situation of the people not only of those
in developing countries but even those in industrialized ones.
Why is it that despite the great advances, science and technology is still
unable to answer the needs of the people? This glaring fact is most felt in
underdeveloped countries where science and technology is not accessible
nor has it effectively accelerated social progress. Most of the high technologies
are used and appropriated by corporations towards production for their own
profit and providing for the needs of the people is not given attention.
Developing countries, the markets for the products of the same corporations
and sources of their raw materials, are left out and prevented to develop
their science and technology capability.
2 PROMETHEUS BOUND

In the case of the Philippines, this has been pointed out by several studies
on the national science and technology situation that focused on research and
development indicators in relation to economic productivity [1-7]. Some
studies [4-6] show that the dismal economic growth in the last 35 years is due
to gaps in research and development (R&D). These gaps are national and
sectoral in terms of expenditure, budget, manpower and inefficiency in
institutional arrangement. Philippine firms would rather import foreign
technology and pursue the “adaption of existing products from abroad to the
Philippine market” [1]. Poor economic performance and the backwardness of
S& T is indeed a vicious cycle [2] from which existing and past government
policies in science and technology have failed to bail the country out of.
These policies are in the numerous S&T development plans of the
Department of Science and Technology (DOST) since 1986: the S&T Master
Plan (1991-2000), Science and Technology Agenda for National Development
(STAND, 2000), The Medium Term Plan of the Department of Science and
Technology (DMTP, 1999-2004) and the recent National Science and
Technology Plan for 2002-2020 [3]. These plans fixed targets for certain levels
of indicators such as technology achievement index, patent output, publication,
R&D, manpower per million population, corporate R&D spending, number
of private R&D laboratories, education, expenditures and high technological
exports as percentage of manufacturing, but have failed to address the fact
that even with high levels of these indicators, it would still not automatically
follow that science and technology would bring long-term benefits to our
people.
While these indicators were adequate in comparing the S&T situation
relative to other countries [35], they overlook the end-beneficiaries of S&T
products. While there were attempts in linking scientific and technological
indicators with economic conditions [8], they were incomplete and inadequate.
The greater significance of a deeper look at the state of S&T lays not so much
in comparing the country’s performance with others but more in how the
greater segment of the population has been unable to benefit from the fruits
of S&T in a social setup that keeps our economy underdeveloped.
This paper attempts to put the state of S&T within the context of the
country’s overall national development in order to point out the factors that
have prevented the growth of science and technology in the Philippines and
to gain insights on how we can take the path of science and technological
development that would benefit the majority.
The paper would proceed as follows: after a brief discussion of the overall
framework, the next section provides data and outlines trends in the science
and technology sector. An analysis of these trends and data follows in section
4 while the last section puts forward our recommendations.
 The State of Science and Technology in the Philippines 3

FRAMEWORK

T
HROUGHOUT THE AGES, human societies have created the bases
of survival, sustenance and advancement using natural resources
through S&T. Science is used to create processes, tools and technology
to enhance man’s interaction with nature. Significant advances in S&T have
been reached in the past few decades. Man witnessed rapid developments
in information technology, genetic engineering, medicine, chemistry and
other fields.
Advances in science and developments of new technologies have pushed
the economic development of society. The industrial revolution in the early
stage of free market competition provided the tools for mass production of
goods. The use of S&T for the market increased the production and profit for
the capital owners. At present, the intense market competition dictates the
direction and pushes the rapid development of S&T [10-13].
The present era is characterized by advanced technology on the one hand
and widespread suffering and dislocation on the other. Science is now a
definite fixture in any industry. Research and development for new materials
and processes is vital to industrial success. Governments have also poured a
lot of investment in research activities with similar aims as industry. At no
time other time in the past has the interaction between science and the
productive process become much closer and more important than today. In
comparison to the 1900s and before, science and technology is now done on a
larger scale and at a much more rapid pace.
Historically, man use science and technology in his interaction with nature,
to produce goods for everyday existence. The advent of surplus led to the
stratification of society into classes and permitted the economic and politically
dominant class to dictate the allocation and use of resources and tools in the
production of goods. Science and technology bridges the established and
transmitted practice of the production activities of man, the pattern of ideas
and traditions in society and the rights and privileges of the classes that make
it up. Science and technology in each epoch of historical development was
shaped and directed by the existing relations in that era.
The flowering of Greek science was reflective of the rise and decline of the
slave-owning Iron Age society. The growth and instability of the feudal
subsistence economy that had little use for science was reflected in the long
interval of the Middle Ages where superstition reigned supreme. It was in
the Middle East where scientific activity had proceeded during this time
keeping classical Greek knowledge alive. When the feudal order was broken
by the rise of the bourgeoisie, it was only then that science could again advance
at a faster pace than before.
 4 PROMETHEUS BOUND

As capitalism fought its early battles and had its first successes as the
dominant economy in Holland and Britain, these same conditions for the
rise of capitalism made experimental science possible and necessary. The
practical success of the subsequent discoveries made by Galileo, Newton
and their contemporaries all contributed to the next great technical advance:
the Industrial Revolution.
The Industrial Revolution ushered in the factory system and seemed to
forecast at the time the triumph of a progressive capitalism allied with science.
However, the extraordinary rapid evolution of understanding of nature and
the development of techniques— science and technology— was much faster
than the motion of social arrangements that controlled them. These new
discoveries inevitably required new social adaptations to cope with them
successfully.
Currently the dominant mode of producing goods is one that sacrifices
people and the environment in favor of profit. The current capitalist system
is one with global reach and is characterized with increased concentration of
production capacity into a few. Production for
profit by its very nature does not provide the vast
The dominant mode of new population of wage laborers that it had
brought into existence a sufficient share of goods
producing goods is one that or opportunities to allow for continuous
prosperity. With this logic of capitalist
sacrifices people and the production, monopoly capital conscripted science
and technology to create new products and
environment in favor of profit. processes, better and more efficient than the old,
in order to survive intense competition. This
fueled further the technological revolution as monopoly capital used these
new ideas and processes to increase production.
The transformation and revolution in the physical sciences in the twentieth
century were important and far more rapid than the great seventeenth-century
revolution. They enormously increased the power of the physical sciences as
a means of understanding not only physics and chemistry but nearly every
branch of science. The explanation of biological phenomena in atomic and
molecular terms transformed biology into one where we can understand
molecular structure, the interrelations of specific nucleic acids and proteins
and link it to wider ecological processes. This new vision of biology was given
a push largely from outside the discipline of the subject due to new techniques,
ideas and explanations from other sciences under the pressure of new problems
presented by the expanding fields of agriculture and medicine.
This irony and tragedy of modern science and technology are thus due to
the fact that science and technology has been under the almost complete
dominance of monopoly capital in the current production system for the
ultimate objective of gaining profits. The advances in S&T are not used to
 The State of Science and Technology in the Philippines 5

solve the problems of humankind, such as starvation, poverty, failure of

health systems, environmental catastrophes and social disintegration and
rottenness.
In underdeveloped countries such as the Philippines, the situation is
aggravated by the absence of basic industries and a real manufacturing sector.
Agricultural and mineral production is geared for export of raw products.
Most industrial enterprises are owned and controlled by foreign interests.
These foreign investments have not translated to technology transfer or to the
development of an industrial sector in the country. In fact, worldwide, the
net capital transfer from developing countries to the developed capitalist
countries amounting to US $111 billion in 1998 nearly doubled to US $193
billion in 2002.
This paper will present how this dominance is particularly reflected in
the case of the Philippines. This paper will show that the lack of basic industries,
the concentration of control and ownership of existing firms in the country
and the export-oriented and extractive nature of mining and agriculture can
all be understood as a result of the country still serving its role as a provider
of raw materials and market for the US, Japan and other countries.
6 PROMETHEUS BOUND

THE BACKWARD AND

STUNTED STATE OF SCIENCE
AND TECHNOLOGY IN THE
PHILIPPINES

ASIC INDUSTRIES PROVIDE THE FOUNDATION for development

B and the advances in other industries. The minerals and metals industry
provide copper, iron, aluminum and other ore for the production of
capital and consumer goods, energy and tools for the communications,
construction, engineering and food industries. Basic industries are the
foundations for industrialization [11].
The presence of a thriving industry necessitates the development of
skilled S&T manpower. Its absence on the other hand, indicates that there
would be no real impetus for the development of an adequate number of
science and technology manpower.
The state of science and math education reflects the quality of S&T training
in the country and the support programs for the development of S&T
manpower. What are the needs that current S&T education caters to? Are the
graduates of S&T courses in schools, particularly from state universities and
colleges, sufficiently trained for our own industrialization?
Meanwhile, research and development (R&D) is one of the major factors
in increasing further the production of goods and services [12]. A review of
the state of R&D is given by Cororaton [15]. R&D activities are usually
conducted both by government institutions and private firms. Looking at
R&D would give us an idea of how S&T is used in production as well as how
scientists acquire the skills and technologies in government laboratories and
private firms. The use of technology in these firms produces innovations for
the development and production of value-added products. This would in
turn increase the competitiveness of these manufacturing firms [23].
Finally, it is necessary to look into the ownership and control of the
country’s strategic industries. This will basically answer how S&T resources
(i.e., technology and manpower) are used in our economy and who primarily
benefit from them. This will also reveal why most advanced developments
in science and technology are not used and enjoyed by the people through
improved production. Looking at the control and ownership of these
 The State of Science and Technology in the Philippines 7

industries would also reflect the general direction of S&T development in

the country.
Using these parameters, the generally backward and stunted state of
S&T will be shown in the context of current economic situation. It is our
assertion that the backward and stunted science and technology is primarily
due to the character of our economy. Taken in this light, the strategic plans
of the government for science and technology can be assesed and appreciated
on how they address these economic causes of underdevelopment.

Basic Industries in the Philippines:

Little or no domestic industrial activity
A close inspection of the existing industries in the country shows that the
scale of industrial production is small and underdeveloped. For example, in
a country where 70% of the labor force is involved in agricultural production,
there are only 12 fertilizer firms producing all their input needs.
Employment in major economic sectors reflects this low development in
industry. The yearly employment profile reflects the small and
underdeveloped level of industrial production. The labor profile from 1960
to 1995 for instance showed that the share of the industry and manufacturing
have not risen from between 15% and 11%. Of the 30 million workforce in the
industry, only 1% is in the manufacturing and electronics industry.
Based on government statistics, local basic industries including agriculture,
mining/quarrying, chemical manufacturing and energy, contribute to the
national income by almost one-third of the total revenues. Local industries
engaged in micro and livelihood enterprises make up 91% of all the business
in the country. These home-based cottage industries employ low technology
and have a labor-management structure of less than 10 workers [9]. Micro
enterprises cannot answer the need for long term investments necessary to
spur industrialization as they only subsist on simple tools and equipment
with a very small management structure. They are unstable, providing
informal and semi-formal employment, little job security, lack of standard
benefits and give wages below the minimum set by Congress.
According to Habito, even the small to medium enterprises comprising of
10 – 199 workers are too small to respond to the prerequisites for
industrialization. An almost negligible 1% of the total number of businesses
that account for large enterprises is concentrated in garments and
semiconductor production. Service providers of basic utilities such as
telecommunications, transportation, water and electricity exist although most
technologies and research and development for the maintenance and
upgrading of these utilities are mostly foreign sourced.
Basic industries such as steel production are absent. Manufacturing of
8 PROMETHEUS BOUND

machinery, chemicals and other industrial products are limited or non-

existent.
Furthermore, most of this industrial activity would be limited to foreign
owned firms. Wealth and businesses in the Philippines are concentrated in
the hands of a few families. The largest 10 families control half of the
capitalization in the corporate sector. For example, the Ayala family alone
controls 17.1% of the total market capitalization. Ayala Corporation is owned
by the Ayalas and Meiji Life of Japan [17]. Other tie-up corporations of the
Ayalas are the Globe Telecom and ITT.

Mineral extraction
The Philippines is ranked in the world’s top 10 in chromite, copper, gold
and nickel production. It is in fact second to Indonesia in Asia-Pacific in terms
of mineral prospectivity and resources [18-19].
Around 400,000 people, 75% of whom are small-scale miners, are involved
in the mineral industry. Forty-four percent are in the extraction of metals
(44%) and the rest are in limestone, marble and sand extraction. The Philippine
Associated Smelting and Refining Corporation (PASAR) remains to be the
only copper producer in the country [19]. Metal production accounts for nearly
100% of mineral export earnings [18]. This indicates that little or no mineral
processing is being done inside the country, with most of the raw ores directly
exported to countries such as Japan (in the case of nickel and copper).
The minerals and metals industry can provide copper, iron and ore for
the production of capital and consumer goods, energy and tools for the
communication, construction, engineering and food industries. Given the
scope of mineral utilization, the establishment of a mineral industry would be
the foundation of industrialization [11]. With the existing policies geared
towards foreign-based investments for export of raw and semi-processed
minerals, the state of the mining industry remains extractive and
underdeveloped with little or no processing done for domestic industrial use.
Despite sporadic mining activities, communities along mining areas subsist
on small opportunities that are offered to them with no just compensation
from the land that they have nurtured. Government mining policies favoring
foreign mining interests have been hurting small-scale miners who have to
contend with piecemeal resources.
With the recent reversal of the Supreme Court of its earlier decision, the
Philippine Mining Act of 1995 or RA 7942 now allows 100% foreign ownership
under Financial or Technical Assistance Agreements (FTAAs) and Mineral
Processing Permits (MPPs). This law favors foreign corporations to venture
into large-scale mining in the country and allows them “beneficial ownership”
of the country’s vast mineral resources. Some 30 mining companies are
expected to start operations after the SC reversal on top of the 299 mining
 The State of Science and Technology in the Philippines 9

rights and contracts that have been approved and registered at the DENR.
These cover at least 14.226 million hectares, or roughly 50 percent of the
country’s land area. Under the FTAA, complete ownership of water rights,
land rights and mineral resources is given to foreign corporations. These
are mostly monopoly transnational corporations (TNCs) that help project
illusory economic growth with the entry of these investments. The law,
however, allows the repatriation of profits and resources to where these
TNCs are based.

Chemicals
The chemical industry plays a significant role in the development of other
basic industries. Petrochemicals are vital to plastic production as well as a
variety of downstream products that can be processed into various consumer
goods as well as packaging and construction materials and other industrial
goods. Drugs, medicines, cosmetics and toilet preparation production are
also dependent on a well established chemical industry.
At least 1,000 local firms comprise the chemical industry in the Philippines
that involve small-scale development of petrochemicals, oleochemicals and
fertilizers. The Philippine Resins Industries,
Inc. remains as the only active producer of The chemical industry in the
polyvinyl chloride (PVC) in the country, while
only two other companies engage in country remain small and
polystyrene plastic production. In 1998, two
more plants for polyethylene and peripheral in nature and firms
polypropylene production were established.
All other materials that are used for these
plastic production are currently imported.
serve as distribution arms.
Production of minor coconut oil based-chemicals and raw outputs from
vegetable and animal fats comprise the oleochemical sub-industry. Twelve
firms are in the manufacturing of fertilizers, two of these, the Philippine
Phosphate Fertilizer Corporation and Atlas Fertilizer Corporation, are
government owned.
The chemical industry in the country clearly remains small and peripheral
in nature, with Philippine firms merely serving as distribution arms of large
foreign multinationals of major industrial chemical products.

Energy
A consortium of local and multinational conglomerates that covers the
entire energy production from supply and distribution runs the local energy
industry. Meralco, providing supply in Luzon while private owned electric
cooperatives supply electricity in the provinces, governs the power distribution
sector. The government has put up for sale the generation and transmission
10 PROMETHEUS BOUND

components of the government-owned National Power Corporation

(Napocor) after the Philippine Congress passed the Electric Power Industry
Reform Act (EPIRA) in 2001, resulting in relatively high industrial and
residential costs of power [21].
Energy is primarily imported even if the domestic geothermal power
production is the second largest in the world. The Malampaya natural gas
field discovery is being developed by Shell Philippines Exploration B.V.
(SPEX), Texaco Inc. of the US and the Philippine National Oil Co. (10%). It is
estimated to have some 70.8 billion cubic meters of gas reserves for 20 years.
R&D for safe and sustainable sources of energy, such as solar, wind and
hydropower, is also under foreign dominance and control.
The country’s oil consumption is estimated at 360,000 barrels/day
[bbl=barrels] and about 6 million tons of coal per year. Local production
accounts to only around 8,460 bbl per day. In 2001, energy production was
broken down into the following: fossil fuel: 55.6%, hydro: 17.5% and other
sources (mainly geothermal): 26.9%.

Manufacturing
Based on government statistics, industry includes four sub-sectors; mining
and quarrying, manufacturing, electricity and gas (or energy) and
construction. It accounts for almost 33 percent of the country’s total revenues.
Table No 1: National income in millions of pesos during the first quarter of 2001 and 2002
Source: [24]
GNP/GDP by industrial origin 2001 2002 2003
Agriculture, fisheries, forestry 0 49,176 051,358
Industry sector 077,977 079,453
Service sector 105,969 111,054
GDP 233,122 241,865
Net factor income from abroad 015,728 019,265
GNP 248,850 261,130

Micro enterprises are very small businesses using simple tools and
equipment and have a very small management structure with less than 10
workers. “Livelihood enterprises employ material-based, low technology,
labor-intensive activities directed at earning a living rather than making
profits. They are mostly home-based or cottage enterprises engaged in
furniture making, handicrafts, food preparation, garments and others [9].”
Small firms may even fall under the category of “sweatshops.”
The capacity to use and develop the technology of the country is a major
factor for the success of industrialization. In the era of globalization,
technology has been the “key to achieving international competitiveness [25].”
This will be seen on the level of innovation in the different sectors of the industry.
 The State of Science and Technology in the Philippines 11

Table No. 2: Number of employed persons, in thousands, by major industry group, January 2003.
Source: [24]
Major Industry Group Total
Philippines 30,119
Agriculture 11,146
Agriculture, hunting, and forestry 10,012
Fishing 01,134
Industry 04,560
Mining and quarrying 000.98
Manufacturing 02,767
Electricity, gas, and water 00.117
Construction 01,578
Services 14,414

Table No. 3: Manufacturing sector based on employment in 1993.

Source: [22]
Type Total
Cottage (less than 10) 78,530
small (10-99) 09,761
Medium (100-199) 00.818
large (200) 00.945

In an effort to boost industry productivity, the Department of Trade

and Industry (DTI) identified 10 priority sectors. These are dominant export
producers of the country. Among them are the manufacturing of construction
materials, electronics, food, giftware and holiday décor, home furnishing,
IT services, marine products, motor vehicle parts and components, organic
and natural products and wearables.
In the succeeding paragraphs, different industry groups are considered.
Much of the discussions were taken from Nolasco [4] and DTI studies [26].
Food Products Manufacturing. This industry includes fresh and processed
food. Fresh food includes papaya, banana, mango, pineapple and others.
Processed food includes coffee, meat, beverages and others. In 2003, food
products were 4.47% of the total export of the country amounting to Php1.3
Billion.
R&D in this industry is confined to packaging and preservation techniques,
employing low-level technology. For example, meat is cured, smoked and
dried to prolong its storage life.
Raw materials for food manufacturing are sourced locally. In dairy
processing however, the prime raw material called dry skimmed milk and
12 PROMETHEUS BOUND

butterfat are imported from New Zealand, the Netherlands, Australia and
the United States. In addition, packaging materials are also mostly imported.
In a 1999 study [4], the cocoa sub-sector has 13 establishments. Seven are
directly involved in the processing of cocoa for industrial and common
(chocolate mix) applications. The fruits and vegetables processing sub-sector
produces dehydrated fruits, preserved fruits and vegetables, puree
concentrates and canned vegetables. The ethnic food and marine organism
preparation and processing sub-sector produces food mixes as substitute for
common ingredients in dishes and canning of different marine organisms. In
the flour-milling sub-sector, 13 flour mills supply 96% of domestic demands
of which 90% is consumed by home-based industries.
Table No. 4: Capacity of the food manufacturing sector in metric tons.
Source: [4] qouting BOI, Industry profile, 1997 and [26]
INDUSTRY NUMBER TOTAL
OF FIRMS CAPACITY/YR
Cocoa 013 0.00 36,000.000
Fruit and Vegetable Processing 135 22, 098,360.500
Ethnic Foods, Marine products, Tuna canning 086 582,772.600
Meat Processing 500
Flour Milling 013
Banana+ 023 27.040
Mango+ 006 0.047
Pineapple+ 002 0.017
Papaya+ 002 1.400

Chemical Manufacturing. The chemical industry is almost nonexistent.

Macapanpan [1] describes it as “mere distribution arms of major international
chemical industry.” This reflects the dismal R&D activity and innovation.
The R&D efforts of local firms are limited to assisting local buyers in
incorporating or adapting their chemicals into local buyers’ processes.
Garment and Textile Manufacturing. The garment industry accounts for
6.30% of the country’s total exports amounting to $1.8B in 2003. In 2002, the
country exported garments to 110 countries, tapping about 1,200
manufacturers, 240 traders and 1,150 subcontractors.
The Philippine Textile Research Institute of the DOST is the lead institution
in research and innovation. The private firms though, are doing insignificant
R&D efforts. In 1999, only 19 big firms had the capability to integrate the
multi-process textile production.
Electronics Manufacturing. In 2004, semi-conductors and electronic
products amounted to US$ 24.411 billion or 67.19% of the total value of
Philippine export. This industry includes manufacturing of office equipment,
medical and industrial instrumentation, telecommunications, automotive
 The State of Science and Technology in the Philippines 13

electronics, consumer electronics, components and devices and electronic

data processing.
Semiconductors and electronic products assembly and telecommunication
services make up the bulk of the IT industry. The IT industry employment is
second to garment and textile employment in the manufacturing sector. In
2003, some 335,000 workers were employed in different electronic firms.
The DTI itself characterizes the industry as export-oriented, engaged in
assembly and testing and dominated by multinational firms. There are 715
electronics firms of which 72% are foreign-owned, mostly by Japanese
corporations. Indeed, the industry has a very limited knowledge input [4].
The electronics and semi-conductors manufacturing is also heavily
dependent on imported raw materials.
Agriculture
Agriculture is the main source of food staples and raw materials for local
light manufacturing and handicrafts and other export products. From 1996-
2000 the self-sufficiency ratio for the basic staple food indicated an average of
87.11 percent for rice and 93.89 percent for corn. But productivity in the
agricultural sector was very low. From the 4% annual growth rate in the
1960s, it slowed down to 2% during the 1980s and in the last decade, it became
1%. Four sub-sectors compose the sector: crops, livestock, poultry and fishery.
The monopoly of agricultural lands by a few landlord families is pervasive
in the country. About 70% of the 10 million hectares being farmed are in the
hands of a few landowners. The top 0.5% of landowners control 21% and 5%
of the total number of landowners control 43% of the total farming area. The
majority of the landowning population (67%) owns small plots of seven acres
or less. Farmlands with less than three hectares make up about 37.7% of the
total agricultural land area. These small parcels of land comprise 79.2% of the
total number of individual farms.
From 1992 to 1998, about 118,000 hectares were placed under land-use
conversion. This was expanded to 6.2 million hectares or 63.3% of the total
agricultural lands in the 1991 census. The conversion aimed to increase the
export-oriented commercial production of high-value crops, livestock and
poultry.
Between 1987 to 1991, a total of 11,337 hectares of irrigated rice lands, at
an average rate of 2,267 hectares annually, were converted for use of urban
settlements and industry. This was shown in the 1991 Department of
Agriculture’s Bureau of Soils and Water Management nationwide survey. But
the Australian International Development Assistance Bureau estimated a
higher conversion rate at 2,300 hectares per year. [28]
Crops sub-sector. The Bureau of Agricultural Statistics (BAS), estimated
the total harvest area of different crops, like palay, corn, coconut and sugarcane,
at about 12.61 million hectares in 1993. This was around 42.03% of the total
14 PROMETHEUS BOUND

land area of 30 million hectares [30].

In the 1991 Census of Agriculture, the total farm area of the country was
pegged at 9,974,871 hectares, comprised of 4,610,041 farms. A mere 2,296,111
hectares or about 23.4% were regularly irrigated. In 1999, the National
Irrigation Administration (NIA) estimated the potentially irrigable area to
about 4.66 million hectares with 29% or 1.34 million hectares within the
irrigation service area [30].
The Philippine Agricultural Census [29] showed there were about 70
combined numbers of two-wheel and four-wheel tractors for every 1,000
hectares of cropland and less than two combined harvester and thresher. There
were about 6 irrigation pumps providing irrigation needs to 1,000 hectares of
the total agricultural land. Mechanized farming only exists in pineapple
plantations owned by multinational corporations. In general, 80% of
agricultural lands are dependent on rainwater for irrigation and farmed
manually with plows and farm animals.
In 1995, the R&D expenditures of private firms amounted to about $10.5
million or 22% of all agricultural researches conducted in the country. Today,
fruit plantations are the most active in R&D spending. The seed industry
concentrates on breeding new varieties of hybrid corn, hybrid vegetables and
hybrid rice. The company Pioneer has the largest corn breeding program.
Other companies like Cargill, Cornworld, Ayala and Asia Hybrids also have
corn breeding programs.
Table No. 5: Philippine private agricultural research, 1985 and 1995
Source: [31]
Research expenditure 1985 1995
Agricultural machinery 305 Unknown, but small
Agricultural chemicals 1,657 02,562
Livestock 0,708 01,480
Plant breeding 2,242 01,800
Plantations 1,610 04,680
Total private research 6,522 10,522
Public research expenditure 0,n.a. 37,000
Private research as a percentage
of total research 0,n.a. 22%
Agricultural gross domestic
product 11,054,000 16,319,000
Private research as percentage of
agriculture gross domestic product 00.06% 000.06%
1,000 1995 U.S. dollars
Except in vegetable and corn breeding, coconut and sugar cane research,
agricultural research and development is oriented towards the introduction
of foreign technology.
 The State of Science and Technology in the Philippines 15

Significant research activities can be seen in pesticide companies, banana

growers, poultry integrators, hog breeders, vegetable and corn seed producers.
All pesticides and their formulations and commercial breeds of chicken
and hogs and their management systems that include housing design and
gadgets are developed abroad. Likewise, all agricultural machineries are of
foreign origin while local inventors are active in innovations. Only 46 of 300
companies involved in agricultural production have varying R&D activities.
Table No. 6: Types of agricultural firms with R&D activities Source: [32]
Type Number Type Number
Agrichemical producer 0009 Feed producer 3
Animal breeder 0007 Hog grower 3
Banana fruit producer 0005 Machinery
Poultry integrator 0004 fabricators/assembler 1
Seed producer 0004 Grain producer 1
Organic fertilizers producer 0004 Ornamental plant grower 1
Animal health Research foundations 4
product producer 0004

Patents protect technologies for agricultural production like pesticides,

growth regulators, fertilizers, feed formula, vaccines, therapeutics, chicken
strains, hog breeds, seeds and farm implements, processing methods for crops
and livestock and processing machineries. These technologies are imported
by wholly owned subsidiaries of multinational corporations. Patents awarded
to Filipinos are mostly in agricultural gadget innovations.
Table No. 7: Total quantity of patented agricultural technologies from 1948-1995.
Source: [32]
Agricultural technologies Foreign Local
Agrichemicals 1656 024
Agricultural machineries
and gadgets 0166 130
Animal husbandry 0146 009
Agroprocessing 0286 080
Total 2254 243

In the sugar industry, before the establishment of the Philippine Sugar

Research Institute Foundation, sugarcane researches in the private sector was
carried out by three companies: Victoria Milling Corporation (VMC),
Hacienda Luisita and Ledesma Foundation. The VMC used to provide for
free the technologies, such as on new varieties and information to its contract
growers and, for a fee, to other sugar millers and planters.
Livestock and poultry sub-sector. The few elite families that also
dominate other businesses dominate the livestock and poultry businesses.
16 PROMETHEUS BOUND

Their firms include San Miguel Corporation, Purefoods, Swift, Vitarich and
General Milling Corporation. They have hatcheries, large commercial pig
farms, feed mills, poultry and meat processing facilities and retail outlets.

All commercially available hog and poultry breeds are imported. In 1994
to 1997, 28 chicken strains and 19 hog breeds were being grown in the country.
Most of them originally came from American international firms such as Arbor-
Acres, Cobb-Ventries, Avian Farms and Hubbard supplies poultry breeds,
Dallard, PIC, Babcock, Seghorn and Hypor Ralston supplied pig breeds. Purina
has also now entered the feed business.
Integrated swine and poultry corporations and feed companies conduct
livestock research. Researches in beef and dairy though are of less priority.
The researches are mostly on improving the management of livestock and
identifying the most productive breed, feed additives, pharmaceutical and
machinery inputs. Feed companies are focused on identifying low-cost
combinations of inputs into processed feeds and eliminating anti-nutritional
factors. However, a few separate R&D staff conducts these researches.
Feed mills are imported systems acquired either by subsidiaries of
multinational corporations or through a technology transfer tie-up. In 1997
there were 322 registered feedmills. Presently, Vitarich and San Miguel
Corporation are the only feedmills with 1,000 tons per day production.

Science and Technology Education

The Philippine educational system have the biggest number of college
graduates, compared to other countries, but have one of the smallest number
of graduates with science and engineering skills [16]. There is less attraction
on science and engineering courses.
In the early ‘50s, S&T professionals were trained to identify flora and fauna
native to the Philippines for American pharmaceutical companies. Engineers
were trained to analyze minerals, map geologic sites and come up with
chemical analyses of Philippine natural products that were useful to the
colonizers [32].
During the 1980s, emphasis was given in training high school students
and out-of-school youths for vocational and technical skills which were direly
needed by export-oriented industries. This has not changed up to the present.
In 1994 to 2001, using average data, enrollment in engineering averaged
at 312,023 students yearly, or about 14% of the total enrollees while the
mathematics and information technology have about 7%, natural sciences
attract only 1%. The most popular discipline for incoming students in the
tertiary education are in business administration and related courses and
agricultural related courses, having 30% and 32% of enrollment shares,
respectively.
 The State of Science and Technology in the Philippines 17

Recently, the information technology (IT) field has attracted a lot of

students. There is a 20% average annual increase of graduation in Computer
engineering and other I.T related programs. AMA Educational System alone
has about 150,000 students in 200 campuses. But IT professionals eventually
end up in the service sector and not as research scientists and engineers.
The IT industry includes the manufacture of computer hardware,
telecommunication equipment, semiconductors, computer software and
services. Currently, call center services are pushed and marketed by the
government.
In January 2003, the total number of higher education institutions in the
country was 1,470. Of these, 1,297 were private schools. Furthermore, private
institutions owned 1,383 of the total 2,106 technical and vocational schools.
But “private schools prefer not to go into these technical related courses because
of their high laboratory requirement that is capital intensive. Non-technical
courses are less laboratory-intensive and therefore less capital intensive [16].”
Basic science and education is weak. The introduction of the new Basic
Education Curriculum, criticized for the reduced emphasis on the sciences,
will worsen the current situation. Moreover, teacher competency is questioned
in Magpantay [8], with the additional description that “students are taught
by the least academically inclined people….”
This is reflected in the Trends in Mathematics and Science Study 1999
Assessment Results (TIMMS-R 1999). The Philippines ranked 36th among 38
participating countries in the survey. The TIMMS-R measures trends in high
school students’ science and math achievements. This hardly improved in
the TIMMS 2003 where the country ranked 41st in Mathematics and 42nd in
Science out of the 45 countries surveyed.
The government has instituted several incentives such as grants and
scholarships in science high schools to students entering science and
mathematics courses. Enrollment in some basic science and engineering
courses in some universities (like the UP) has increased but corresponding
support structures such as laboratories, teachers and classrooms have not been
augmented.
Furthermore, there are not enough available research positions in
universities or in industry for new graduates prompting many to go abroad
or to be employed differently from their educational training, either as
managers, line inspectors or sales personnel.

Research and Development

R&D Expenditure
Based on the UNESCO definition, R&D is any systematic and creative
work undertaken in order to increase the stock of knowledge that include
18 PROMETHEUS BOUND

knowledge of man, culture and society and the use of this knowledge to
devise new applications. R&D affects the economic productivity of the
country.
R&D further increase the production of services as pointed out by
Coronaton (2002) in areas where government and private institutions are
engaged in. The type of R&D undertaken provides the basis on how S&T can
improve production. The innovations developed and the value-added products
that will be rendered would enhance production for economics of scale.
R&D is a capital intensive endeavor. Industrialized countries allocate 3-
5% of their GNP to scientific research and development.
Table No. 8: R&D expenditures in US$.
Data source: [4,14,33]
Year GNP at R&D % of GNP
1999 Prices Expenditures
1979 29,552 76.3 0.26
1980 35,219 91.9 0.26
1981 38,434 33.9 0.17
1982 39,278 60.3 0.15
1983 34,081 46.3 0.14
1984 31,580 36.7 0.12
1987-1997 00.2
1998 00.3
In the Philippine, the budget allotted to research and development efforts
has hardly changed since the latter part of the 1970s. In 1998, P931.1 million
of the government budget or 0.3% of GNP was allotted. This is far below the
minimum of 1% standard set by UNESCO for developing countries.
The direction of R&D has explicitly emphasized in the progression of
applied research advancing more than in basic research, a trend observed
from 1989 –1995. This shift towards responding to market-driven needs is
reflective of the policy focus in the various DOST plans [3] where the
prioritization is on marketable technologies and products needed in the export
industry.
Four major sectors are involved in R&D activities in the Philippines: higher
education (both in private and state universities and colleges), government
agencies, non-government organizations and the private industry.
Private industry expenditures account only to about 26% of the total R&D
spending in 1989 to 1992 [15,17] and hardly changed from 1993 to 1996.
During the 1980s the contribution on R&D expenditures of private industries
was estimated to be just 10 to 20%. Government agencies’ expenditures
account for more than 70% of the total RD expenditures in 1989-1992 and
decreased by two percent in 1993 to 1996.
 The State of Science and Technology in the Philippines 19

Table No. 9: Preliminary estimates of national RD expenditures by sector at

current prices (2002), in thousand of pesos. Source: [5]
Sector 1993 1994 1995 1996
Higher Education 0,380,029 0,419,801 0,457,063 0,531,981
Government 1,036,304 1,131,363 1,433,187 1,742,483
Non-Government 0,155,626 0,170,442 0,207,700 0,249,918
Private Industry 0,547,484 0,599,603 0,730,677 0,879,195
Total 2,119,444 2,321,210 2,828,628 3,403,577

In industrialized countries, the private sector tops government

expenditures in R&D. In 1995, private sector spending in the USA and
Singapore was 59.4% and 62.5% respectively. In the previous year, South
Korea’s private sector had a 84% share in R&D expenditures.
By the UNESCO definition, there are three kinds of R&D activities. Basic
research is “any original experimental or theoretical work pursued to have
new knowledge of the underlying foundations of phenomena and observable
facts, without considering any particular or specific application”. Applied
research is “any original investigations, undertaken in order to acquire new
knowledge but is directed primarily towards a specific practical aim or
objective.” And experimental development is “directed to producing new
materials, products and devices, to installing new processes, systems and
services and to improving substantially those already produced or installed
[29].”
From 1989 to 1995, more than half of R&D expenditures in the Philippines
were on applied researches and about 42% were on basic researches. This
indicated that R&D was directed towards market needs, even with the relative
high spending in basic R&D. Development of existing processes and innovation
was a low priority.
Table No. 10: Preliminary estimates of national R&D expenditures by types of research at
current (2001) prices, in millions of pesos. Source: [34]
TYPE OF RESEARCH 1989 1990 1991 1992
Total 1,638.70 1,654.74 1,968.68 2,940.55
Basic Research 0,317.50 0,745.91 0,973.09 1,647.17
Applied Research 0,947.43 0,745.91 0,973.09 1,647.17
Experimental Development 0,373.76 0,490.87 0,426.75 579.16

Patent Applications
Patent application is a good indicator of the technological innovation
capacity and performance of a country. Foreign patent applications usually
surpass local patent applications in most countries. In 2003, patent application
by Filipinos was only 125 while foreigners submitted 3,440 patent applications
[3]. This discrepancy is much bigger than that of South Korea and Thailand.
20 PROMETHEUS BOUND

Table No. 11: Patent applications of residents and foreigners in selected countries
Source: [3]
Country Patents Granted Patents Granted
to Nationals to Foreigners
1976 1986 2000 1976 1986 2000
USA 44,162 38,124 - 26,074 32,736 -
S. Korea 01,593 458 92,798 01,727 01,436 37,184
Philippines 00/108 082 00/125 00/767 00.755 03,440
Thailand - 060 00/238 - 00.634 05,205

S&T Manpower
DOST data indicate that for 1987 to 1997, the average scientists and
engineers involved in R&D was only 152 per million, less than half of the UN
recommended 380 per million population. The estimated gap in R&D
manpower was about 197 scientists and engineers per million population [5].
Moreover, there were only 22 technicians per million population. During the
1990-1997 period, Japan had 5,561 scientists and engineers and 864 technicians
per million population. In the same period, South Korea had 2,274 scientists
and engineers and 223 technicians per million population.
Table No. 12. Total number of R&D personnel.
Source: [3,5]
Year R&D Technicians Total
Personnel and others
1989 9,029 5,180 14,209
1990 9,258 5123 14,381
1991 9,767 5576 15,343
1992 9,960 5650 15,610
1993 11,679
1996 15,243

In a recent survey of researches in state universities and government

agencies, it was observed that less than 10% of R&D personnel have PhD
degrees in engineering and technology [16]. “This in itself presents a big
stumbling block because new technologies available are already in advanced
state and requires special technical skills [6].”
S&T manpower is lacking in all sectors [6] and very few are employed.
In 1996, 69,375 graduates of the sciences and engineering became part of the
27 million labor force. But only about 9,896 of them were employed in the
R&D related work. These employment statistics have barely changed since
1989. Government agencies employ only 37% of them. DOST researchers
are about 7% of the total R&D personnel, while the private sector employs
11%.
The Magna Carta for the Government Science and Technology Personnel
 The State of Science and Technology in the Philippines 21

(R.A. 8439) is yet to provide incentives such as honoraria, share of royalties,

hazard allowance and other benefits to government S&T workers.
In a recent survey, the number of part-time researchers has been increasing
by 11.5% annually, from 1993 to 1996 [15]. While the number of full-time
researchers with MS and Ph.D degrees has been decreasing. Rather than
engaging in productive R&D, MS and Ph.D holders are in consulting work
which has a much higher pay.
Table No. 13: Full-time and Part-time R&D personnel by sector. Source: [15]
Sectors Full Time Part Time
1993 1994 1995 1996 1993 1994 1995 1996
Higher Education 2,961 3,397 3,500 3,865 2,423 2,780 2,863 3,162
Government
Agencies 3,294 3,694 3,789 3,993 1,004 1,237 1,291 1,616
Non-Government
Organizations 548 629 648 715 153 175 181 199
Private Sector 1,014 1,163 1,198 1,323 283 324 334 369
Total 7,817 8,883 9,135 9,896 3,863 4,516 4,669 5,346

S&T manpower development is closely linked with the current educational

system. Assuming a genuine reform in the educational system, it would take
15-20 years “to properly equip and educate the children with the necessary
skills and talents before they enter the workforce [8].” Magpantay describes
the educational system as a “mismatch” between the needs and the actual
supply. This “mismatch” is seen in the high number of non-technical
graduates, yet, local industries “demand” technical and engineering-related
graduates [8,9].
The quality of S&T manpower development is also reflected in the Human
Development Report’s Technological Achievement Index of the UNDP. In 2000,
the Philippines ranked 44th which was below Malaysia’s and Thailand’s
ranking. In the Science and Technology Competitiveness, the Philippines
ranked 41st.

Control and Ownership of Industrial Firms in the Country

The ownership and control of the local strategic industries is a gauge on
how S&T is being utilized for the benefit of the economy. A conflicting
reality is the advancement of technology that does not benefit the majority
of the population. The structure of the business in the Philippines comprises
small, medium and large enterprises. Micro livelihood enterprises are home-
based cottage industries using simple tools and equipment with small
management structure varying from 10-199 workers [9]. They comprise 91%
of the enterprise in the country varying from furniture-making, handicrafts,
22 PROMETHEUS BOUND

food preparation and garments making. A 1% rate is shared by large

conglomerates of business owned by wealthy families. Only 10 families
control half of the capitalization in the corporate sector.

ANALYSIS

HE PHILIPPINE ECONOMY has remained agrarian and pre-

T industrial. The agricultural sector contributed almost 19.76% to the

GNP in the first quarter of 2002, the biggest share in the economy.
Import dependence on technology and capital goods for the export-oriented
manufacturing of goods remained. In agriculture for example, export earnings
from agricultural crops were placed at US $1.30 billion while the value of
agricultural imports reached US$2.10 billion in 2001. There is a marked lack
of innovation in the industry due to foreign monopoly in technology.
The data from the previous section reveal the almost non-existence of
heavy industries in the country. Most mineral resources are exported with
little or no processing at all. Meanwhile, our S&T education has failed to
develop a scientific culture in the country. The educational system may
produce yearly one of the biggest numbers of graduates in the region but
with only a small number of engineers, technologists and scientists. The
number of scientists and engineers in the country also does not meet the
UN’s minimum requirement of scientists and engineers vis a vis the population
size for a developing country. Thus, the scientific community in the country
remains very small.

Historical roots
At the beginning of Spanish colonial rule, most of the peoples in the
Philippines were living in riverine and maritime societies engaged in rice
farming, fishing, pottery-making, weaving, mining and metallurgy. Pre-
Spanish industries included the manufacture of liquors and vinegars like tuba,
basi (rice wine) and others, the production of hides, the manufacture of
gunpowder, the making of wax and the making of cotton stockings for trade.
These early communities which were mainly societies with elements of
both slavery of the patriarchal type and pre-feudal serfdom [11] were trading
among themselves and with traders from China, Japan, Vietnam, Malaysia,
Indonesia, India and the Arab countries. Among their products were betel
nuts, pearls and tortoise shells. Imports consisted of porcelain, silk, bronze
gongs and semi-precious stones. The many and diverse cultures of these
communities had alphabets, mathematics, calendar systems, herbal medicine,
systems of weights and measurement and political systems.
Clearly the most distinguishing technological feat of our forefathers was
the building of the Banawe Rice Terraces, where rice fields were literally
 The State of Science and Technology in the Philippines 23

carved out of steep mountain slopes. The creation of the terraces proves
that we have had knowledge in agricultural engineering, hydrology and
meteorology, to say the least.

Further development of Philippine societies during that time stopped

when Spain colonized the Philippines. It forcibly subjugated early Filipinos
and established political and economic systems designed to reap the most
out of its new colony. As a colonial master, it took control over the land and
other resources and dictated how these were to be utilized for the throne of
Spain. Thus, control over local production systems shifted from the local
communities to the Spanish colonizers who appropriated Philippine raw
materials for the Galleon trade. Introduction of technology in production
systems were kept to a minimum (crudest). Further developing
manufacturing systems within the Philippine colony necessitates huge
investments that would drain the coffers of the Spanish throne, then already
strained with its engagement in several colonial wars. It was more beneficial
for the colonizers to export the raw or semi-processed products of the islands
in exchange for finished products from its trading partners.
For 300 years, the Spanish colonizers imposed feudalism (landlord-tenant
relations) first through the encomienda system, which likewise implemented
the political management of towns. Colonial trade flourished with the export
of sugar, coconut and other crops to industrial capitalist countries of Europe
via the Galleon trade. Later, the hacienda system replaced the old encomienda
system. This intensified the production of raw materials for trade during the
opening of the ports of the Philippines after the fall of the Galleon trade.
The rise of industrial capitalism in Europe from the late 18th century and
the decline of the Galleon trade pushed Spain to intensify agricultural
production for export that resulted in the rapid expansion of estates owned
by the friars and the Spanish natives and mestizos. Instead of improving
technological practice, it was more convenient to grab larger tracts of lands to
satisfy the increased needs for export. The ever increasing colonial taxation,
the arbitrary increases of the land rent by the friars and the rapid expansion of
landed estates resulted in social unrest and the 1896 Philippine Revolution
[11].
By the end of the Spanish era, industries had been set up in the processing
of tobacco for cigars, abaca (hemp) for rope, coconut for copra, oils for paints
and sugar milling. The first distilleries for alcohol were likewise established
at the end of Spanish rule. Mining activities under the Spaniards were not
significant as the colonizers were unsuccessful in penetrating the gold-rich
areas of the Cordillera peoples.
Under US colonial occupation, the landlord-tenant structure of the
hacienda system was maintained. The hacienderos or Filipino landlords
prospered under US rule as Philippine agricultural products were exported
 24 PROMETHEUS BOUND

to the US. In exchange, US goods had free access to the Philippine market.
This uncontrolled dumping of surplus goods limited any prospect for
domestic industrialization and led the Philippines to a growing dependence
on agricultural exportation to the US. This policy of intensive agricultural
exportation served to strengthen the hold of a small number of powerful
landowners in the countryside. It created a small segment of society that
became chief trading and financial partners of US corporations – or what we
call the comprador big bourgeoisie who benefited the most from the export-
oriented nature of the economy. Thus, while controlling large segments of
the commercial and industrial sectors, they are also the landlords who control
the vast tracts of land in the countryside.
The economy today remains dominated by a few families with huge
landholdings and big businesses. Half of the corporate capital is concentrated
in the hands of only 10 families. They comprise only 1% of the population
but wield economic power over the rest and are the main business and
investment partners of foreign corporations.
Before granting nominal
The ever increasing colonial taxation, independence to the Philippines, the
US imposed the Bell Trade Act of
the arbitrary increases of the land rent 1946 and later on the Parity
Amendment of 1946 and other similar
and the rapid expansion of landed laws and treaties that instituted
unequal trade relation with the
estates resulted in social unrest and Philippines. These allowed American
business interests to gain free access
the 1896 Philippine Revolution to Philippine resources and markets
with little or no technology transfer
to the former colony. The nominal independence granted to the Philippines
on July 4, 1946 did not result in the establishment of a truly sovereign nation
with an independent economy.

Obstacles to genuine growth

The industries present in the Philippines is composed of light
manufacturing, construction, public utility and mining enterprises dependent
on imported equipment and raw materials. Most of these are paid for by the
foreign exchange earnings of raw-material export and foreign loans. Despite
government claims, assembly plants of semiconductor manufacturers and
those industries that involve fringe processing do not, in general, generate
technology transfer.
Until now, the country does not have an industry for capital goods. Heavy
and basic industries are non-existent, except for copper processing. Machine-
tool industry, basic metal and chemical industries, engineering industries
 The State of Science and Technology in the Philippines 25

are yet to be established. Existing industries merely reprocess components

from abroad and is wholly dependent on technologies from advanced
countries. Vital industries such as power, oil and mining have been liberalized
and deregulated.

The domination of our economy primarily by the US and its main local
partners, the comprador big bourgeoisie and landlords, impedes the building
and development of our national industries. It is of course not to their interest
to change the largely backward agrarian production systems and develop
the local industries, technologies and products.
We are therefore not surprised that the past and present administrations
in the Philippines are also disinterested in pursuing a genuine industrialization
program much less allocate an adequate budget for science and technology
development beyond the usual token amounts.
Government support through
sufficient funding for S&T institutions
remains inadequate. The private
The economy remains dominated
sector and industries have very little
participation in S&T activities.
by a few families with huge
Technologies used in industries are
focused only on assembly and testing, landholdings and big businesses.
product innovation from other
countries’ existing products and Half of the corporate capital is
improving management strategies.
Technologies are mostly imported. concentrated in the hands
The minimal R&D expenditures of
private firms in the country reflect the of only ten families.
fact that foreign capital in the country
does not improve on nor use the full capabilities of science and technology
personnel they employ. The attraction for these large firms is in the cheap
labor and raw materials available in the country. In general, technology
transfer does not happen.
.
The meager R&D activities result in the lack of opportunities for our
S&T professionals. Government S&T institutions could not employ all of
them while the lack of industrialization creates no demand for research
engineers and physical scientists. Thus, most of them are forced to seek
employment abroad, contributing to the “brain drain” phenomena. In 1998,
about 25% of deployed OFWs abroad are professionals and technical workers
(POEA report, 1998).
Many Filipino scientists who have opted to stay in the country meanwhile
face low budget allocations for their researches, inadequate compensation
26 PROMETHEUS BOUND

and lack of resources and a host of other problems. Still, a lot of them
produce research publications that are at par with those in other countries.
While these commendable efforts create a sense of self-reliance because of
the minimal government support, these are more often than not the
specialized rather than the general type of research activities done in most
research institutions. Worse, the government has not used these results nor
directed their research for the country’s needs.
The government’s strategic plans on S&T are not geared towards
developing a truly self-reliant economy. These plans have been tailored for
the export-oriented and import-dependent economic model. Thus, the
government’s strategic plan does not contain efforts to build and strengthen
industrialization for domestic production. Instead, it further weakens domestic
production through its policy and program of opening national industries to
foreign corporations and further deregulating critical base industries.
Efforts to build and improve packaging technologies also fit the
government thrust of agricultural production for exports. Meanwhile, the
training of data savvy, English-speaking “IT” experts fulfills the requirements
of off-shore call centers but does nothing to upgrade actual skilled production
for our local IT needs. Information and communications technology, with the
spread of mobile phones and internet, is largely confined to urban centers.
To further exacerbate the situation, the government has never been serious
in realizing its policy pronouncements in science and technology as reflected
in the steady decrease in budgetary allocations for the DOST and other R&D
institutions.
To this day, there is little or no technology transfer to the Philippines from
its international trade partners. Most technologies being used in the existing
manufacturing/industrial sector in the country today are owned by foreign
companies. Most of the patents granted in the country are of foreign origin.
Intellectual Property Rights laws embraced by the Philippines by large do not
protect local scientific endeavors but rather hinder the country in accessing
foreign technologies needed for its development.
International trade policies supported and adopted by the Philippine
government also do not support the development of local industries. After
years of implementing “Free Trade Globalization” under the WTO, the country
continues to be driven to export more raw and semi-processed materials
because of the undeveloped manufacturing systems and the continued
dumping of finished goods by industrial countries – to the detriment of
course of local production.
Agriculture in the country is still not mechanized. Mechanization is
undertaken only by big plantations owned by foreign corporations, like Dole
and Del Monte. Irrigation in the countryside remains a problem. Employment
in agriculture is about 11.1 million or 37% of the estimated total population
in January, 2003. But only about 2.4 million or 21.7% are salary and wage
 The State of Science and Technology in the Philippines 27

workers and about 26.8%

are unpaid family members. The government was never serious in
The 5.7 million or 51.5% are
all self-employed farm realizing its policy pronouncements in science
workers. From 1997 to 2000
the average daily wage rate and technology as reflected in the
in agriculture was P154.78 in
nominal terms and P110.68 steady decrease of budgetary allocation
in real terms.
While the agriculture for the DOST and other R&D institutions.
sector contributed about 4.03
percent to the country’s total
exports and 7.12 percent to the total imports, the country has remained an
importer of basic food items. Rice imports for the last five years ranged
from 722.40 thousand metric tons in 1997 to 808.23 thousand metric tons in
2001. Heaviest importation was in 1998 – with 2,170.83 thousand metric tons
of rice – to avert the supply shortfall brought about by a long dry spell.
Monopoly of agricul-tural lands by a few landlord families remains. About
70% of the 10 million hectares of farm lands are in the hands of a few
landowners. The top 0.5% of landowners control 21% while only 5% of the
total number of landowners control 43% of the total farming area. The
majority of the landowning population (67%) own small plots of seven acres
or less. Farmlands of less than three hectares are about 37.7% of the total
agricultural land area. These small parcels of land comprise 79.2% of the
total number of individual farms.
As a summary, the pre-industrial and mainly backward agrarian character
of the forces of production in the country – chained to this condition by the
continued domination of foreign interests, mainly the US and the comprador
bourgeoisie – prevents genuine industrialization and thus provides little room
for the growth and development of Philippine science and technology.
All indicators discussed in previous sections are like jigsaw puzzle pieces
that form a distressing picture of the backward, underdeveloped and stunted
S&T. More than just lagging behind industrialized countries, the
backwardness of S&T in the country has deprived the people of its possible
benefits, particularly those addressing their basic needs and improving the
quality of their lives and have the potential to impact tremendously on the
economy and everyday life of the ordinary Filipino. S&T and the potential
of the S&T community in the country are not being tapped and developed as
a propelling force to push the country’s economic development.
 28 PROMETHEUS BOUND

CONCLUSION

S
CIENCE AND TECHNOLOGY can be used and fully developed for the
benefit of the people only if the more fundamental obstacles, mainly
economic and political in nature, currently confronting the country are
completely addressed.
The largely backward agrarian economy and lack of basic industries stand
out as hurdles we must confront in order to address the daily needs of our
people. But our ability and potential to create, provide, manufacture and
distribute the basic needs of its citizenry is mainly impeded by the existing
social relations in the country, mainly the US and comprador bourgeosie
dominance of the national economy and land monopoly of the countryside
elite.
To overcome these obstacles, a
The backwardness of S&T deprives genuine comprehensive agrarian
reform must be undertaken to break
the people of the benefits of S&T the land monopoly and age-old feudal
relations between the landlords and
to fully address their basic needs the peasants. Land reform coupled
with the promotion and development
and improve quality of their lives. of agricultural cooperation,
agricultural modernization and rural
industriali-zation would create the
production surplus that can be used to support the development of local
industries and pave the way for industrialization. Moreover, this land reform
would also lead to the development of a strong agricultural base that can
provide the basic food staples of the country as well the raw materials for
industries.
National industrialization is an imperative to alter the neocolonial pattern
of production, investments and trade based mainly on the export of
agricultural and extractive raw materials, the import of finished goods,
agricultural commodities and capital, and the re-export of reassembled or
repackaged imported manufactures.
National industrialization and agricultural modernization and
development that judiciously utilize the rich natural resource base and the
skilled personnel will boost the development of science and technology.
More and more scientists and engineers would emerge to meet the needs of
a dynamic local industrial base. Such condition would also attract back home
our S&T compatriots abroad. This industrial base would provide the basic
needs of the country including our food, mass housing, clothing, education,
healthcare, communication and transportation services.
An independent and self-reliant economy anchored on a program of
 The State of Science and Technology in the Philippines 29

national industrialization and a comprehensive agrarian reform program must

be a major national objective. In this context, science and technology would
then truly be of service to the people.

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