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Agriculture is the Most Important Sector in the Economic Development Of the Philippines Introduction Agriculture is a key sector of the development of the Philippine economy. More than a quarter of the total value of Philippine income or gross domestic product is attributed to agriculture. 1 Agriculture still maintains a major role in the country’s economy considering that the Philippines being essentially an agricultural country. A significant number of Filipinos live and work in the rural areas and is employed in agricultural activities. 2 When viewed in terms of “agribusiness”, the importance of the agricultural sector to the overall economy may be overwhelming. 3 In 1988, the direct contribution of agribusiness to the GDP until now is incredibly rising considering other related agricultural activities such as wholesale, retail and transport agribusiness. 4 But is it really the most influencing factor in the economic development of the Philippines? How does agribusiness really work in contributing to development in our country? What major agricultural products do we have for imports and for foreign exports? How did agriculture developed here in the Philippines over the years? This paper is aimed to answer these questions and to prove that agriculture is the most important sector in our country’s economic development. 2 I. Agricultural Growth in the Philippines A. The Nature and Importance of Agriculture to the Economy Agriculture plays a dominant role in the economy, contributing 2.21% to the GDP in 1990, and employing 45.5% of the labor force in 1992. About 51% of the population resided in rural areas in 1991. 5 The main export crops are coconuts, sugar cane, bananas and pineapples, while the principal subsistence crops are rice, maize and cassava. Livestock (mainly pigs, goats, water buffalo and poultry) and fisheries are important. 6 Due to deforestation, the export of logs, formerly a important source of foreign exchange, and sawn wood were banned in 1986 and 1989, respectively. 7 The major agro-ecological systems are coastal fishing, lowland irrigated farming, fed farming, upland farming, and river and lake fishing usually combined with crop cultivation. 8 B. The Development of Modern Agriculture Development of science and technology for agriculture started in the 1800’s. And in our country today, Science and technology have contributed to the great increase in farm production in three main ways: They have provided farmers with labor-saving technologies and this include the development of all-purposed tractors, development of electric powers to run milking 3 machines, irrigation pumps, and many other farm machineries. 9 Produced improved plant varieties and breeds of livestock; and developed new agricultural chemicals like fertilizers, insecticides, herbicides and chemicals to control plant and animal diseases. 10 C. Agriculture in Economic Development The rapidly growing literature on the history, theory and policy of economic development has recognized the dominant place of agriculture in underdeveloped countries like the Philippines and has generally concluded that economic development requires the vast numbers of rural people to shift on agriculture. 11 The role of agriculture in economic development depends heavily upon the stage of economic history In which a particular nation finds itself and , especially at the time that economic progress first becomes a major social aspiration, upon the ratio of agricultural land to population. In a rather fundamental sense, agricultural progress is normally a requirement for industrial and economic development. 12 II. Chief Agricultural Products in the Philippines A. Food Products 1. From Crops Food products from crops are cereal grains like barley, corn, millet, oats, rice, rye, sorghum, and wheat. Another are root crops like potatoes, sweet potatoes and cassava. 4 Others are dry beans and peas, fruits and vegetables, oil-bearing crops such as soy beans, sugar-bearing crops especially sugar cane and sugar beets, nuts, cocoa beans, coffee. 13 But the biggest production in the country are the U.S. firms Dole and Del Monte which have two of the biggest farms in the country, both of which are located in Mindanao. These plantations produce pineapples and other tropical fruits for export like banana, tomatoes, mangoes and papaya. 14 2. From Animals Food products from animals are cattle, chickens, goats, hogs, and other livestock are the main animals raised for food. They supply nearly all of the country’s meat, eggs and milk. 15 B. Natural Fibers Mills and factories use the fibers to make fabrics, yarn, and other textile products. 16 1. Animal Fibers Animal Fibers are wool from sheep and goats. 17 2. Silk Fibers Silk fibers are obtained from the cocoon of silkworms which promote the development of nylon and other synthetic fibers. 18 3. Plant Fibers Plant fibers include cotton, abaca, jute and kenaf ( used to produce container bags for grains). 19 5 B. Raw Materials for Manufacturing 1. From Crops From crops are sugars, starch, oils, aromatic compounds, essential oils like menthol, peppermint, and lavender for perfume manufacture, steroids, natural pesticides and medicinal drugs. 20 2. From Animals It is classified into animal hides which are used to make leathers and animal fur which are taken from foxes and minks.
Approximate Word count = 3315 Approximate Pages = 13.3 (250 words per page double spaced)
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