Tricycle economics

Details Category: Banking & Finance 03 Jun 2014 Written by George S. Chua

IN spite of our supposed high gross domestic product growth rate, we are
falling behind in so many things such as the increasing poverty rate, no
improvement in the unemployment and underemployment rate, low tourism,
lagging foreign investments and so on. Undoubtedly some sectors are flying
high but for the vast majority of us who have to stay on the ground have no
choice but to deal with the daily horrors of basic life in the Philippines.

Our growth and potential is limited by something so basic as the abomination

that we are living with, the tricycle. What is that you say? That the tricycle
provides for countless jobs to Filipinos who would otherwise have no source of livelihood? That the tricycle provides for
the essential transportation of Filipinos?

Well let us get the story straight. These tricycles which run on a two-stroke engine cause so much pollution that we are
literally killing ourselves from their exhaust. Given the condition of most of these tricycles, they will not make Euro II
emission standards let alone Euro IV emission standards that we should have in place shortly. They are noisy, slow,
uncomfortable, unsafe, unregulated with uneducated drivers. They provide tricycle drivers with a marginal livelihood that
keeps them in poverty and their commuters with a backward means of transportation.

One might argue that there are rules and regulations covering tricycles, but in reality they are not being enforced. How
many tricycles have been taken off the streets for not passing the emission test? How many tricycles have been caught
for operating in national highways or not following basic road signs? How many people have been hurt or even died
from accidents involving tricycles?

With our road network, the easiest way to explain tricycle economics is that everyone can only move as fast as the
slowest tricycle. The government is not pressured to do something about the sorry existence of tricycles because they
have nothing better to offer to both the tricycle drivers in terms of gainful employment or livelihood and to the commuting
public who has no choice but to make do with the tricycle.

How can we expect our government to fix our economy when it cannot even fix our transport system that is still using
tricycles all over the Philippines? The government should ban all tricycles that are not Euro IV compliant and cannot run
at a fully loaded speed of 80 kilometers per hour (kph). Better yet, phase out all of the tricycles who clog up our entire
road network and slow down the pace of our economy. What then do we use to replace all these tricycles?

Replace all these tricycles with small vans that have a maximum passenger capacity of seven or eight, air conditioned,
Euro IV compliant and can run up to highway speeds of 100 kph. These small vans should cost no more than P500,000
so that four former tricycle drivers can form a cooperative to be able to buy one for the same price it would cost them to
buy a new tricycle each. Each of the coop member will drive one eight hour shift and while there are only three shifts in
one day, you would need a fourth member for the days off or when someone is sick.

Similar to the UV Express which are mostly used by office personnel, these Workers Express (WE) Van will also have
stations to pick up and drop off passengers, provide the comfort of air conditioning and the safety of a standard
manufactured vehicle.

The WE Van will be able to keep up with highway traffic, comply with emission standards by being Euro IV compliant and
would be much easier to regulate. Of course, details such as the granting of the franchise to operate will need to be
worked out. However, if the government is really serious about inclusive growth, it is about time it ends our tricycle
economics.