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Philippines: Improved Environment and Natural Resources Management Could Boost Economic Progress

The Philippines is blessed with a rich diversity of natural resources, from forest reserves to coral reefs, to endemic types of plants and animals. Yet, population pressure along with long-term neglect of the environment have strained ecological systems.

Better management of the environment would not only result in improved quality of life for Filipinos but could also result in higher economic growth.

"Good environmental management can attract investments in key growth sectors. The Philippines has great potential to expand tourism. But the tourism industry is very sensitive to effective management of the environment.

In the mining industry, effective environmental management improves the investment climate and the support of the population for this very important industry.

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Finally, the international services industry can be attracted by a good urban environment.

Political will, stronger enforcement of laws, modern public institutions, and public participation can all play a part in improving the environment and tapping this potential for the Philippines" said Joachim von Amsberg, World Bank Philippines Country Director.

The economic importance of environmental management is highlighted by data that shows the costs of environmental degradation in the Philippines as high.

The annual economic losses caused by water pollution are estimated at PhP67 billion (US$1.3 billion). Lack of management of fisheries resources is estimated to cost PhP23 billion (US$420 million) annually in lost income. The increased health costs of exposure to air pollution (particulate matter) in four urban centers alone are estimated to be over PhP21 billion (US$400 million).

These are some of the findings of the report, Philippine Environment Monitor 2004-Assessing Progress, launched today by the World Bank and DENR.

The Philippine Environment Monitor (PEM) series presents an overview update of the status of the environment.

The PEM 2004 updates progress in natural resources management and governance, biodiversity conservation, solid waste, air and water pollution control, and coastal and marine management, global programs and contributions of environmental champions.

Since 2000, the Philippines has adopted overarching legislation aimed at improving air and water quality, and preserving precious, often-threatened, environmental resources.

New environmental and economic policies have been put into place. In some areas, progress in environmental quality has been achieved. But actual change on the ground, measured by environmental indicators, has been slow and not yet sufficient to overcome years of neglect, haphazard policy-making, and weak local environmental management.

According to Jitendra Shah, World Bank Lead Environmental Specialist and the report's principal author, "Forested areas in the country continue to be threatened by competing development claims of agriculture and urbanization. The Philippines in fact has one of the lowest forest cover per capita in the world.

As habitats shrink, biodiversity is increasingly endangered." He added, "Coastal resources, especially coral reefs, of which over 90% are at high risk, mangroves, and sea-grasses face threats from coastal zone development, expanding aquaculture, and destructive fishing. Fisheries catch per-unit-of-effort has been declining steadily in many areas."

The Monitor points to the following key challenges in the Philippines:

• Stronger long-term national commitment to environmental protection to reverse degradation.
• Greater public awareness and involvement to create political will. Increased private sector participation for environmental services.
• Improved coordination and capacity to harmonize the decentralization process.
• Modern systems for monitoring, enforcement, and public disclosure to ensure compliance.
• Streamlined bureaucratic processes to encourage investment in natural resources.

In conjunction with the launch of the 2004 Monitor, the World Bank, in partnership with DENR and other stakeholders, hosted a dissemination workshop and roundtable discussion with stakeholders from Congress, local government unit (LGU) executives, international development partners, and civil society to build consensus and find areas for concrete collaboration during the launch held at the Department of Environment Natural Resources–Protected Areas and Wildlife Bureau Visitors Center.

Philippine Environmental Champions

These Environmental Champions featured in the Monitor were honored during the report's launch for their contribution to the conservation and protection of the environment:

• Mr. Raul Zapatos (Forest Guard, DENR Region X)
• Mr. Eugenio Paden (Mangrove grower from Banacon Island in Bohol)
• Ayala Foundation
• Sr. Aide Velasquez (Lingkod Tao Kalikasan)
• Wild Bird Club of the Philippines)
• ASIN (folk music))
• Puerto Princesa City)

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