Infrastructure Foreign Loans Towards Productive Agriculture

In an era where technology prevails due to globalization, the country has the need to keep

up with the fast pace of change or risk of being outdated particularly on rural areas. This sector

of a country doesn’t only provide food security but also contributes in national income. This is

measured as the value added of the agricultural sector as percent of GDP. According to World

Bank, contribution of Philippine agriculture in the country's economy has been halved over the

years, from 24.6% in 1985 to 12.8% in 2011. And PSA noted that in 2012, the country's earnings

from agricultural exports were lower by 7.9% from the previous year, while import expenditures

grew by 3.6%. This shows that income contributed from the agriculture sector continues to

decrease and have been totally left behind despite of being an agricultural country, and that the

government’s efforts are not enough to improve the said sector. This may be originated from

various reasons including the lack of good infrastructure for farmers from rural areas such as

farm-to-market roads, irrigation system, drying facilities and milling centers. Infrastructures are

considered vital for enhancing agricultural productivity since it could reduce the costs of

production, faster movement of crops, create more jobs, and increase food security. And in order

for the country to achieve this goal, according to Development Budget Coordination Committee

(DBCC), the Philippine government is borrowing funds from countries like China, Japan, and

South Korea, for major infrastructure deals.

Adriano, Krizzia Marie

Limon, Divine Grace

Magbanua, Andrea

Yanto, Chino Eugene