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Land Reform in the Philippines
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"The Philippines: Land Reform through Tax Reform
address by Mason Gaffney
Conference on Land Reform and Development in the Philippines
World Affairs Council, San Francisco
(20 Oct 87)
I. The Philippines Suffer Extreme Poverty
Personal observations as an American GI in 1945: We thought we
were badly fed, but local children were salvaging our garbage.
Also pilfering, mooching and -- tragically -- pandering for a
living. "C'est la guerre", we explained -- the easy answer. But now 42
years later, the poverty and degradation remain. Now we see, Ce
n'est pas la guerre: c'est la propriété foncière" -- it's
property in land.
Extremely high concentration of land ownership. e.g., in 1955, just 600 entities
held 13% of the farm area, with larger holdings on best land
(Sorongon, 1955). Throw
in the Pentagon and the Philippine Department of Forestry and the
top few have much more than 13%.
Low per capita income: $772.
Few job opportunities. "Education" is an easy answer,
beloved by those who educate for a living. Education has
improved dramatically, but is not a sufficient solution: it
simply leads to frustration and brain drain. Education for
effective reform and public policies for job creation would solve
many problems, but that's not the kind of education they get.
Dense population: 490 per square mile, higher than Switzerland! This
density is lower than some urbanized countries, but in this
country population pressure is not relieved by labor-using urban
development (commerce, manufacturing).
This is a truly colonial economy, with plantation
agriculture on the best lands. Export-orientation, another easy
explanation, is an incidental aspect; the heart of the problem is
low capacity to absorb labor productively. Sugar, copra, rice:
the wage is a low share of gross output, rent is a high
share.
"
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