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Editor's Notes

Vol. XXVI No.2 March - April 2008 ISSN 0115-9097

P H I L I P P I N E

I N S T I T U T E F O R

D E V E L O P M E N T

S T U D I E S

Surian sa mga Pag-aaral Pangkaunlaran ng Pi l ip inas

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A father, a mother, and their chil-dren constitute a family. They har-moniously live together under

one roof with the parents providing allthe love, attention and the assuranceof a better future for their children.This, however, may not be true for allfamilies. For some, because of the wors-ening economic condition in the Phil-ippines, one or both of the parents havechosen to work overseas.

According to the Commission on Fili-pinos Overseas , as of 2006, there are 8.23 million Filipinos abroad, of whom3.6 million are permanent migrants, 3.8 million are temporary migrants and0.87 million are “irregular.” Many of them have left their children behind.With only a single parent left with the children or with both parents workingoverseas, the children may be wanting for affection and time. Worse, theymay be prone to emotional and psychological distress.

In a paper, “The Effects of Parents' Migration on the Rights of Children LeftBehind,” presented by Asia-Pacific Policy Center vice president and execu-tive director Rosemarie Edillon during a recently held United NationsChildren’s Fund (UNICEF) and Philippine Institute for Development Stud-ies (PIDS)Seminar on Public Policies and the Rights of Children, the rightsof children—survival, development, protection, and participation—and howthey are affected when one or both parents is (are) absent, were the focus ofdiscussion. Specifically highlighted in the study is the role of two importantfactors: money and time in meeting these rights.

OFW children:wanting for more

attention

6 What limits Philippine access to EU markets?

8 Philippines' auto parts industry needs activegovernment support

10 Cebu to benefit from JPEPA

11 PIDS roundup: from Cagayan to Mindanao

Overseas Filipino Workers (OFWs) are lauded world-

wide for their heroism. The Philippine government, in

fact, considers OFWs as a new breed of economic

investors in the country. Much has been said about

the economic contributions of these modern-day he-

roes, but it is also equally important to look into the

effects that migration has on their children left at home.

On the positive side, it is expected that children of

migrant workers have better living conditions than

their counterparts from non-OFW families. These chil-

dren experience more monetary benefits in terms of

food, clothing, education, and savings. While some

would think children are satisfied with this, our main

article reveals otherwise. In fact, there are indica-

tions of sadness among these children. Furthermore,

children of OFWs put more premium on time and

attention given to them by their parents.

More than their children’s need for a better educa-

tion, which is the main reason for migration, parents

should also be made aware of the greater need to

address the emotional needs of their children. Regu-

lar communication is the key and various institutions

such as the government, schools, and social groups

have roles to play in addressing key issues affecting

the welfare of OFW children. DRN

DEVELOPMENT RESEARCH NEWS March - April 20082

Money vs. adult attention/timeEdillon said that it is assumed that there is atrade-off between money and adult timewhen one or both parents work abroad. Sim-ply put, less time spent with children arecompensated with more money that theirparents send. In addition, children’s satis-faction only improved when both money andadult time/attention provided to them in-creased.

The study’s panel interviews of childrenaged 6–8, 9–12, 13–16, and 17 years old froma sample of 248 households of both Over-seas Filipino Workers (OFW) and non-OFWfamilies were conducted in eight barangaysof two municipalities in Ilocos Norte (Table1).

Results showed that young adolescents, par-ticularly the 13–16 year-old children of OFWfamilies appear to be worse off among theage group of both OFW and non-OFW fami-lies mainly because adult attention andmoney given to them lessen when they reachthe said age bracket. Most of these childrenhave younger siblings who receive more timeand attention from adults in the household.For some, these 13–16 year-old children alsoassume responsibilities such as caring for theyoung since there are fewer older adults inthe household.

One of the participants in the seminar, Dr.Maruja Asis, research director of theScalabrini Migration Center (SMC), stressedthe importance of guidance and parentingon the 13–16 age group because it is not justthe issue of these children wanting moretime or money but it could be that they maybe handling bigger responsibilities in thehousehold that their young minds cannotstill fully grasp and deliver.

The trade-off, on the other hand, is experi-enced among the 9–12 age group when moremoney is provided to them while the atten-tion given by their caregivers lessens as theygrow older and are able to take care of them-selves.

OFW children in the age bracket 6–8 areconsidered to be the better off since theyreceive more attention and average moneyinputs. These younger siblings also take abigger part of the family budget as well asguidance and care. Data from the studyshowed that in terms of guidance and care,children of OFW families aged 6–8 seem tobe the better off, with 2 in 3 children havingregular doctor and dentist visits as opposedto only 1 in 3 children in the 9–12 agebracket, and only 1 in 4 children in the 13–16 age bracket having such visits.

Table 1. Survey areasMunicipality Barangay Number of household respondent

OFW Non-OFW

Batac Baay 17 15

Baligat 13 15Palongpong 15 15

Tabug 15 15

Vintar Dipilat 15 15

Lubnac 15 16

Alejo Malasig 16 15Tamdagan 16 20

When parents migrate, adolescent children seem tobe worse off in life. They are also made to assumebigger responsibilities, particularly in taking care ofyounger sibl ings.

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DEVELOPMENT RESEARCH NEWS 3 March - April 2008

In the aspect of children’s satisfaction withthe time and money provided to them, re-sults showed that OFW parents and theirchildren give different importance to theseinputs. While it is true that children do feelan increased satisfaction with the increaseof adult attention and money from their par-ents, they give varied weights on their im-portance. More specifically, while the OFWparents give the same level of importance toattention and money, children, on their part,give more premium to attention than tomoney.

The migrant scenario"To provide good education for their chil-dren" is the main reason of the OFWs in work-ing overseas. Having a better income onlycomes second in their goals.

While the above seems to be a common re-ply among OFW parents, there are differ-ences, though, in the views and conse-quences of their working overseas betweenan absentee father and an absentee mother.

An OFW father differs from an OFW motherin his outlook regarding the timeline in work-ing out of the country while 53 percent ofOFW mothers prefer long-term engagementabroad. For instance, only 40 percent of OFWfathers wish to work for long years abroad.The Middle East also continues to be thefavorite destination of OFW fathers at 54.4percent while OFW mothers favor East Asiaas the main destination at 53.4 percent(Table 2).

It is noteworthy to know that a considerablenumber of children were not yet born whenone of their parents started working abroadand have thus been wanting of their personalcare from the start. Seventeen percent werenot yet born when their mother first left thecountry while two thirds have not yet reachedseven years old. For the OFW fathers, 60 per-cent of their children are less than 18 yearsold while 43 percent were not yet born whenthey left.

In terms of the effects at home of a fatherworking overseas, less adjustment incaregiving is needed in comparison to theadjustments required when it is the motherwho works abroad. After all, a mother usuallyattends to almost 80 percent of the caregivingneeded by her children. Hence, when she isthe one working overseas, her role is filledup by other female relatives or older siblingswho take the role of caregivers in the family.When it is the father working abroad, themother takes the role of both the father ashead of the family and mother as nurturer oftheir children.

This then leads to the question on whetherthere is a difference in the adjustments offemale and male children left behind, asraised by Prof. Aurora Javate-De Dios, execu-tive director of Miriam College’s Women andGender Institute, during the open forum ofthe seminar.

She added that “there are certain risks andvulnerabilities that these children left be-hind would experience compared to otherchildren who have their parents in theirhomes.” Thus, greater attention should beprovided to aid the emotional needs of the

Table 2. Destination of parent overseas Filipino workers, in percent

FatherMiddle East 54.4Southeast Asia 15.2Western Europe 13.0East Asia 10.9South Asia 2.2Commonwealth of Independent States 2.2Southeast Europe 2.2

MotherEast Asia 53.4Middle East 16.4North America 13.7Western Europe 6.9Southeast Asia 5.5Southeast Europe 4.1

"To provide good education for their children" is the main reason of the OFWs inworking overseas. Having a better income only comes second in their goals.


children and the psychological and socialshocks that the OFW children may experi-ence.

OFW families vs. non-OFW familiesResults from the comparison between theinterviewed OFW and non-OFW familiesshowed that the former have a smaller familysize with four children as against that of thelatter with five children. OFW families alsohave higher per capita incomes of P20,000.00and higher per capita expenditures ofP16,000.00 based on 2003 prices. Moreover,families with OFW parents only work 65 hoursa week in comparison with families with noOFW parent who spend 102 hours a week inwork.

School-aged children from OFW familiesalso have a greater capacity to attend schooland achieve 93 percent of their potentialeducation compared to the 88 percent ofchildren from non-OFW families of the sameage. Education expenditures that includetuition, books, and school supplies of OFWfamilies are almost double that of non-OFWfamilies at P15,400.00 versus P8,200.00. It

may also be inferred that children with OFWparents attend private schools and if they dogo to public schools, these children havebetter supplies of books and notebooks.More monetary benefits are enjoyed by chil-dren of OFW parents as opposed to non-OFWchildren in terms of food (P7,800 vs. P5, 400),clothing (P2,100 vs. P1,100), education(P7,500 vs. P4,400), and bank accountsopened under the name of the children(P1,500 vs. P100).

ResultsOverall outcomes of the study showed that,according to their guardians/caregivers, lessthan 10 percent of OFW children are said tobe “very happy”. Two percent of these chil-dren are even considered to be sad and only25 percent of them considered their rela-tionship with their parents as “very good”.Fifteen percent of children of non-OFW par-ents, on the other hand, are said to be “veryhappy” and 33 percent said their relation-ship with their parents is “very good”.

Healthwise, there were hygiene-related prob-lems—skin, scalp, ears, and nose—in 2 outof 3 children of OFW families. It also doesnot show that the presence of an OFW par-ent influences better health-seeking behav-ior. Thus, having an OFW parent does notseem to be an assurance for greater survivalof the children.

In the aspect of development, OFW childrenare more of the achievers with 47 percentreceiving academic awards against 32 per-cent for non-OFW children. For non-aca-demic awards, non-OFW children garnered12 percent compared to the 25 percent oftheir counterparts. Non-OFW children are,however, more active in sociocivic organiza-tions at 23 percent against 14 percent forOFW children.

Data from the study also showed no cleardanger arising from sleeping patterns andno reported incidents of abuse on the pro-tection rights of the children. There are, how-

School-aged children from OFW families also have a greater capacity to at-tend school and achieve 93 percent of their potential education compared tothe 88 percent of children from non-OFW families of the same age.

Asia-Pacific Policy Center Vice President and Executive Director RosemarieEdil lon reported that the overall outcomes of the study showed thataccording to their guardians/caregivers, less than 10 percent of OFWchildren are "very happy" with their situation.


ever, problems arising from families that havesplit up.

It was also shown in the child preferences—overall emotional state, relationship withparent OFW, relationship with siblings, rela-tionship with other household members,health status, school performance, securityfor the future, extra-curricular activities par-ticipation, and participation in decision-making—that only 29 percent of them arehappy with their family and participate infamily decisions. Nonetheless, 53 percent ofthese children said they are better off thantheir counterparts in terms of education(Table 3).

RecommendationsRegular communication between OFW chil-dren and their parents is made through textmessages and phone calls. Edillon said thatone of the activities that could enhance therelationship between the migrating parentsand their children is by writing letters. Sheadded that the school may help by includ-ing this in the children’s activities. It is im-portant though that the letters reach theirintended recipients.

The school is also a place where values andskills learned at home by the OFW childrenshould be strengthened and improved. Withthe absence of the parents, guardians/caregivers will also be the school’s ally in im-parting good values to the children. Schoolofficials are also asked to undergo trainingfor them to be able to spot incidents of childabuses. They are called on to administerregular physical and medical exams to schoolchildren.

The government is enjoined to promote bet-ter health-seeking behaviors among theOFW parents by requiring them to submitmedical certificates before their children areaccepted in schools. OFW awareness ofhealth and assistance programs from the gov-ernment is very little and utilized only by 4.2percent of the OFW population.

The study also looks into the big role of theBangko Sentral ng Pilipinas in providing fi-nancial literacy programs for the OFW par-ents. Other banks are also seen as sources ofinvestment opportunities that could helpthe OFWs protect the financial security oftheir families. This would help OFWs to con-sider insurance coverage and liquid assetsaside from investing in new houses whichcannot be of much use when economicshocks occur.

While there have been a number of laws en-acted to uphold the rights of Filipino mi-grants, policies to secure the rights of theirchildren left behind continue to be want-ing. OFW children experience not only eco-nomic problems but also threats of familiespermanently breaking up due to physicaldistance. Intervention from the governmentand other systems such as schools, nongov-ernment organizations, civic and socialgroups to address these key issues is longoverdue.CSM

Table 3. Self-rated living condition of children

Aspect % who say they are better off

Health 42Education 53Future 39Happy family life 29Acceptance by peers 40Extra-curricular activities 44Participation in family decisions 29

One of the activities that could enhance the relation-ship between the parents and thei r chi ldren is bywriting letters.

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The European Union (EU) is an im-portant market for Philippine ex-ports, absorbing 19.5 percent of the

country’s agriculture and fisheries exports.Products exported solely to the EU includesardines and coffee extracts. Among thecountry’s major exports, coconut-relatedproducts primarily go to the EU market, fol-lowed by bananas and pineapples.

While global tariffs have fallen substantiallyover the years, giving hope to many export-ing developing countires that they may fi-nally have better access to developed coun-tries' markets, the imposition of morenontariff measures (NTMs), however, hasgenerally distorted trade and has resultedin almost the same effects as tariffs of higherprices and lower trade volumes.

The Philippines' experience with the con-sequences of NTMs on its agricultural ex-ports is a case in point.

To analyze the extent to which Philippineexports are subjected to NTMs imposed bythe EU, Gloria O. Pasadilla, Senior ResearchFellow at the Philippine Institute for Devel-opment Studies (PIDS), and ChristineMarie M. Liao of the Center for Research andCommunication (CRC) conducted astudy1that estimates the costs associated withthe presence of NTMs in trade and howmuch additional costs are borne by food ex-

What limits Philippine access toEU markets?

porters because of them. In addition, thestudy traces the Philippine export productsspecifically affected by NTMs imposed by theEU.

NTMs refer to all measures, other than tar-iffs, that affect trade. They are instituted forhealth protection, plant and animal sanita-tion, and safety reasons by importing coun-tries. NTMs are generally wide-ranging, lesstransparent than tariffs, more variable andunpredictable in implementation, therebycreating greater trade uncertainty.

NTMS are classified into various types,namely: (1) price control measures; (2) fi-nance measures; (3) automatic licensingmeasures; (4) quantity control measures; (5)monopolistic measures; and (6) technicalmeasures which include sanitary andphytosanitary standards (SPS), and techni-cal barriers to trade.

Citing studies conducted by the Organiza-tion for Economic Cooperation and Devel-opment (OECD) and the US InternationalTrade Commission, the authors said thatthose classified under technical barriers totrade, customs and administrative proce-dures, and sanitary and phytosanitary mea-sures are the most commonly imposed NTMsand have directly affected the different coun-tries’ exports to foreign markets. These tech-nical barriers are in the form of standards,testing, certification, and labeling.

Philippine products exported to the EU facedifferent NTMs. According to UNCTAD’sTrade Analysis and Information System(TRAINS) database, 59 out of 163 commodi-ties or 6.6 percent of Philippine agriculturalexports are affected by NTMs imposed by the

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1 PIDS Discussion Paper Series No. 2007-15 titled "MarketAccess Limitations of the Philippines in the EU Market." Ashorter version of this paper also appeared as PIDS PolicyNotes 2007-10 titled "Nontariff Measures Faced by PhilippineAgricultural Exporters."


EU. Bananas, tunas, and sweet biscuits areamong the commodities that face testing forauthorization, prior surveillance, productcharacteristic, and labeling requirements.

To better understand the implications ofNTMs on actual exporting firms, the authorsinterviewed some exporters of selected agri-cultural products. Exporters of canned tunafound it difficult to comply with the EU’s re-quirement of reducing the maximum resi-due limit of lead in tuna from the 0.5 ppmlimit to 0.2 ppm. Noodle exporters, on theother hand, have also been forced to altertheir production practices and ingredientuse because certain chemicals in food color-ing traditionally used in the Philippines arebanned in the EU. Wood packaging alsofaced an additional requirement such as fu-migation prior to shipment. Furthermore, acompany’s shipment could also be detainedfor not containing an exact address in its la-bel.

To assure foreign countries that their prod-ucts meet specific requirements, exportingcompanies must submit certain certificationsprior to engaging in trade. Majority of thesecertifications are traditionally issued by theappropriate bureaus under the Departmentof Agriculture or the Department of Health.Examples of certifications are PhytosanitaryCertificate and Official Meat Inspection Cer-tificate (OMIC).

For example, an exporter of processed meatproducts incurs an additional 2.4 percent incosts per shipment for obtaining certifica-tions for Hazard Analysis Critical ControlPoint, OMIC, and International VeterinaryCertificate. Fish exporters, for their part, facelaboratory testing costs for health certificateprocessing which can amount to aboutPhP720,000 per container. Meanwhile, amango exporter tags quality control and labo-ratory testing as representing five percent ofits production costs.

Additional hidden costs are incurred bythese companies on capital expenditures forupgrading their facilities to satisfy health andstandard requirements. The authors alsomentioned “trade facilitating” expenses in-curred by exporters which come in the form

of tips and outright bribes to accelerate pro-cessing.

While the old hands in exporting have beenable to cope with these limitations saying thatthe profits from exporting still outweigh thecosts, smaller firms are being marginalizedor even completely unable to gain marketaccess. This is a glaring problem in that outof the 22,500 food and beverage processorsin the Philippines, 99 percent are cottageand small and medium enterprises. Hence,they are unable to afford the technologicaland manpower requirements of compliance.

Additionally, there are problems that resultfrom the inadequacy of infrastructures, bothtechnical (lack of internationally accreditedlaboratories, electronic system of certificationand tracking, and capacity for risk assess-ment) and legal (bureaucratic red tape andoutdated laws on international trade).

Despite these problems, the authors seehope in the potential of the country’s capac-ity to export quality products and had givenseveral recommendations to improve the ex-port industry, especially for agricultural prod-ucts that are shipped to places like the EUwith strict NTM regulations. To wit:

Wood packaging materials also face an addi-tional requirement such as fumigation priorto shipment. The process must be certified bythe Bureau of Plant Industry.

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Firms engaging in the assembly of auto-motive parts and components continu-ously search for internal ways and ex-

ert effort to improve their competitiveness.This, according to the study “Assessing theCompetitiveness of the Philippine AutoParts Industry” conducted by Rafaelita M.Aldaba, Senior Research Fellow at the Phil-ippine Institute for Development Studies(PIDS), needs to be complemented withactive government support.

Aldaba’s paper described the major govern-ment policies formulated through the yearsthat were meant to promote the growth anddevelopment of the automotive industrysuch as the adoption of local content require-ments and imposition of high tariffs coupledwith restrictions on the importation of mo-tor vehicles.

When the industry faced increasing pressureto improve competitiveness brought aboutby globalization, however, several reformswere implemented to liberalize and deregu-late the industry. These included the open-ing of the assembly sector to accommodatenew players, removal of previous restrictionson the number of models that could be as-sembled, and the allowing of the importa-tion of all types of motor vehicles.

The Philippine automotive industry consistsof two major sectors: the automotive assem-bly and the manufacture of parts and com-ponents. The assembly sector has 14 car as-semblers and 21 commercial vehicle assem-blers. It is dominated by five Japanese manu-facturers, namely: Toyota Motor, Honda Cars,Mitsubishi Motors, Isuzu Motors, and NissanMotors. In 2002, this sector posted around

Philippines’ auto parts industry needs activegovernment support

PhP40 billion in total investments and em-ployed 15,000 workers.

The parts and components sector, on theother hand, is composed of 256 companiesproducing different parts and componentsmade of metals, plastic, rubber, and compos-ite materials. More than half of these compa-nies are considered small and medium en-terprises (SMEs). These small firms havevarying capabilities and some real qualityproblems. They have also failed to developdue to insufficient capital and technology.

The major players in this sector are Yazaki-Torres Manufacturing Corp., United Tech-nologies Automotive Phils., Temic Automo-tive Inc., Honda Engine ManufacturingPhils., Fujitsu Ten Corp. of the Phils., andAichi Forging Co., Inc. Total investmentsamounted to PhP27 billion in 1999 andPhP28 billion in 2001. The sector employed33,000 workers in 2002.

In her paper, Aldaba discussed the issuesand problems confronting the industry. Ac-cording to her, after almost three decades ofimport substitution which was centered onthe local content policy, a large part of theindustry still remains underdeveloped. Sheadded that at best, the local content programof the government only had a limited impacton the growth and development of the in-dustry. For one, the local automotive sectorhas barely 10 to 15 percent locally producedparts and the assemblers must rely on im-ports for the remaining 85 percent.

The author cited a number of reasons forthe failure of the local content program, in-cluding: a) reluctance of multinational com-

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panies to outsource components manufac-turing to local Filipino firms; b) lack of do-mestic firms that could meet the standardsof the contractor-assembler in the short-term;and c) adoption of inconsistent policies inthe industry.

The author also identified the existence ofa few firms (mostly foreign-affiliated ones)that have access to the best industry practicesand state-of-the-art equipment and technol-ogy. This creates a dichotomy between largeand small firms in terms of equipment andtechnology, capital, productivity, and workerskills.

Aldaba sees the unavailability of raw materi-als in the local market, labor strikes and radi-cal unions, high cost of electricity, weak do-mestic demand due to the failure of theeconomy to recover from the 1997 financialcrisis, and the increasing presence ofsmuggled used imported vehicles as well assmuggled and counterfeit auto parts andcomponents as major challenges. While theindustry considers the skilled labor force asits major strength, the above metioned prob-lems cause firms to operate at an average ofonly 60 percent of their total capacity.

The author emphasized that the automotiveindustry is a highly global industry; it is tech-nology driven; competition is intense, andonly the best survive. Given the current stateof small and medium manufacturers, mak-ing them internationally competitive is amajor challenge.

Facing international competition wil be dif-ficult as domestic firms can no longer relyon protective government policies. Less com-petitive firms will have to contend with re-duced market shares and eventually bank-ruptcy. The few remaining competitive ones,on the other hand, need to define their strat-egies and the market postion that they wantto pursue. Given the firms' limited technol-ogy and research and development capabil-

ity, finding technologically fit foreign part-ners will also be important. While industryplayers have already identified internal andexternal constraints in improving their com-petitiveness, they are also relying on govern-ment support to help them out.

Foremost is the designing of market expan-sion policies that would stimulate the de-mand for domestically assembled vehicles.The government can also help by providingsupport in finding markets abroad as well asin linking them with multinational compa-nies.

Furthermore, the author takes note of theneed for government action in addressinghuman resource development and laborpolicy issues that increase firms’ costs as wellas in putting a stop to the smuggling of usedimported vehicles, especially in free portzones. Immediate tariff reduction is also animportant solution to address distortions inthose sectors where the tariffs on their majorraw materials are greater than the tariffs ontheir finished goods.

Lastly, it is also important for the governmentto improve infrastructure provision particu-larly utilities like power and ports operationto help firms bring down their operating/overhead costs.ALO

The automotive industry is a highly global industry; it is technology driven;competition is intense, and only the best survive.

Whi le F i l ip ino workers a re re -garded as highly skilled, this isnot sufficient to make the auto-mot ive par ts indust ry inte rna-tionally competitive.


As the Senate is in the process of con-sidering whether to ratify the Japan-Philippines Economic Partnership

Agreement (JPEPA) or not, the PhilippineInstitute for Development for DevelopmentStudies (PIDS), the Philippine APEC StudyCenter Network (PASCN) and the Univer-sity of San Carlos (USC) in Cebu held a fo-rum clarifying the issues on the controver-sial agreement last February 28.

Themed as “JPEPA in Focus,” the forum,which was held at the USC main campus'Buttenbruch Hall, explored both the pros-pects and challenges of having an economicpartnership agreement (EPA) with Japan.

In his opening statement, PIDS PresidentJosef Yap challenged some of the argumentsraised against the JPEPA. According to him,most of the negative publicity against JPEPAhave been disproved such as the notion that

Cebu to benefit from JPEPA

JPEPA will destroy the economy, allow impor-tation of toxic waste, allow Japanese vesselsto fish in Philippine waters without con-straint, and adversely affect the agricultureand automobile sectors.

Dr. Yap emphasized that JPEPA will have apositive impact on gross domestic product(GDP), job creation, and poverty alleviationas a result of greater access to the Japanesemarket in terms of trade and movement ofnatural persons, increased Japanese foreigndirect investment (FDI), rising incomes, anddeclining prices.

Dr. Erlinda Medalla, PASCN project direc-tor, meanwhile, said that JPEPA is not just aFree Trade Agreement (FTA). It also in-cludes cooperation and technical assistanceand capability building provisions. She alsonoted that the JPEPA cements the country’slong-standing good relationship with Japanand at the same time strengthens its link-ages with East Asia.

JPEPA, she said, is a signaling mechanismthat the Philippines is on board with build-ing an East Asian community and its visionof shared prosperity, peace, and stability.

Cebu, on the other hand, stands to gain fromthe JPEPA, according to Dr. Victorina Zosa,Research Director of the USC, who pointedout that based on her study, “Philippine-Ja-pan Economic Linkage: A Case Study ofCebu,” 60 percent of locators in Cebu’s eco-nomic zones as of 2003 are Japanese firms.In that same year, she added, Japan also ac-counted for 56 percent of all official devel-opment assistance poured into CentralVisayas. Given these, it is anticipated thatmost likely, the JPEPA will further contrib-ute to Cebu's overall economy. GGM

Phi l ipp ine Inst i tute fo r Deve lopment Studies(PIDS) Pres ident Dr. Josef T. Yap emphasizedthe positive impact of the Japan-Philippines Eco-nomic Partnership Agreement (JPEPA) on thecountry's gross domestic product, job creation,and poverty alleviation.


The Philippine Institute for Develop-ment Studies (PIDS) opened its 9th

PIDS Corner; this time at the CagayanState University (CSU) in Tuguegarao onApril 2, 2008. Established in 1978, CSU iscomposed of seven campuses and is consid-ered as the best academic institution in theprovince that provides professional and tech-nical training in the arts, sciences, humani-ties, and technology.

Dr. Roger P. Perez, president of the CSU,welcomed the partnership with PIDS as theUniversity's symbol of support for theInstitute’s goals and objectives in providingsocioeconomic research for the developmentof the country.

PIDS President Dr. Josef T. Yap on his part,expressed his gratitude for the warm wel-come extended by the University and is hon-ored by the importance it is giving to the

PIDS roundup: from Cagayan to Mindanao

Dr. Roger P. Perez, president of Cagayan State Uni-versity, and PIDS President Dr. Josef T. Yap sign theMemorandum of Agreement formalizing the openingof the PIDS Corner in the University.

Institute’s policy research outputs. The in-auguration was also attended by Dr. Lina M.Garan, dean of the College of Arts and Sci-ences, Ms. Benita Cabaddu, chief librarianof CSU, professors, support staff, and stu-dents of the university.

Meanwhile, last February 22, the PIDS re-ceived a certificate of appreciation from theUniversity of the Philippines (UP) Mindanaoas an acknowledgment for its generous sup-port to the University all these years. Theawarding was done during the TestimonialDinner honoring UP Mindanao Prime Mov-ers and Donors in celebration of the Cen-tennial Year of UP.

UP President Emerlinda Roman lighted theCentennial Flame of UP Mindanao whichserved as the start of the centennial celebra-tion in the campus. Other UP Alumni andofficials also graced the event. CSM

The Philippine Institute for DevelopmentStudies (PIDS) is acknowledged by theUniversity of the Philippines Mindanao forits generous support to the University.


DEVELOPMENT RESEARCH NEWSVol. XXVI No. 2March - April 2008ISSN 0115 - 9097

Editorial Board: Dr. Josef T. Yap,

President; Mr. Mario C. Feranil, OIC

Vice-President and Director for Project

Services and Development; Ms. Jenni-

fer P.T. Liguton, Director for Research

Information; Ms. Andrea S. Agcaoili,

Director for Operations and Finance;

Atty. Roque A. Sorioso, Legal Consult-

ant.

Staff: Jennifer P.T. Liguton, Editor-in-

Chief; Ma. Aileen A. Garcia, Issue Edi-

tor; Claudette S. Malana, Ma. Gizelle

G. Manuel and Alfonso L. Orioste, Jr.,

Writers; Jane Alcantara and Edwin S.

Martin, Contributors; Valentina V.

Tolentino and Rossana P. Cleofas, Ex-

change; Delia S. Romero, Galicano A.

Godes, Necita Z. Aquino and

Alejandro P. Manalili, Circulation and

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a) Redefine the roles and responsibilities ofthe different government agencies in termsof standards testing, quality control, and thelike to eliminate duplication and overlap-ping. Furthermore, the industry will benefitfrom the rationalization of the laboratory sys-tem, integration of standard-setting bodies,and prompt harmonization of processes andadministrative details;

b) Develop the capacity of agencies involvedin terms of research and development, train-ing, and extension;

c) Facilitate the accreditation of more labo-ratories and the upgrading of existing satel-lite laboratories;

d) Improve the information technology in-frastructure to enable electronic certificationand traceability of products. There is also aneed to construct databases of laboratory re-sults, existence of pests and microorganisms,and requirements of importing countries;

PIDS' newtelephonenumbers:

893-9585 to893-9592

e) Enhance support for the development ofknowledge and technological tools, technol-ogy transfer, and provision of scholarships ortraining of experts; and

f) Modernize machineries in satellite labo-ratories and prioritize strategically locatedlaboratories in the regions in terms of ISOcompliance and capacity building.

Other recommendations cited the need toconduct information dissemination activitiesamong the public and private sectors on newstandards, health requirements, regulatorypractices, and necessary responses; developnecessary treatment facilities by a consortiumof small companies; and establish coopera-tion between universities and firms that maylead to technological breakthroughs. Aboveall these, the authors emphasized the needfor political will and genuine leadership toestablish such reforms that would definitelybenefit the whole export industry of the coun-try. ALO

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