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v ReporNi 736- -Philippines Forestry,Fisheries, and Agricultural Resource ManagementStudy (ffARM Study) January17, 1969 Public Disclosure Authorized CountryDepartment II AgricultureDivision AsiaRegion FOR OFFICIAL USEONLY - W I ' ' " " , , " a 91-'c' 'J~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' Public Disclosure Authorized . Q \~~~~~a: '9 I~ '9 0~~~~~~~~~~~' C~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Doc.m,of d' ,bi , 'N ., 5-. ~~~~~~. Public Disclosure Authorized KS.~~~~~~~~~~~~~~~~\~ Doc enof th WbIdC-n 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ' Thisdocument has a restricteddistribution and may be usedby recipients only in the performanceof their officialduties. Its contents may not otherwise Public Disclosure Authorized be disclosedwithout VUbddBank autorization. Y r PbosaZU VA Rollar 1983 11.1 1984 16.7 1985 18.6 1986 20.4 1987 20.6 An ACMMX25 AMC Annual Allowable Cut AhD Alienable and Disposable ACIPHIL Philippinas Association of Independent Conaultants AID/USAID U.S. Agecy for International Development AIJ Asian Institute of Journalism APT Agricultural Production Te-hntcian AR Artificial Reefs BAI Bureau of Animal Industry B/C Benefit-cost Analysis BFAR Bureau of Fisheries and Aquatic Resources BFD Bureau of Forest Development (now FHB) BOX Board of Investmnts CARP Conprehensive Agrarian Reform Program CamR Comunity Enviro mnt end Natural Resources Officer CFL Cowsunity Forest Lease. now Comunity Forest Stewardship CLAO Citizens Legal Assistance Office COA Co_mission on Audit CSC Certificateof Stewardship Contract CTUP Community Timber Utilization Permits CVRP Central Visayss Regional Project DA Department of Agriculture DAR Department of Agrarian Reform dbh Diameter at breast beight DeRIR Department of dnvironment and Natural Resources DL5 Department of Local Covernments DOH Department of Health DOTI Department of Trade and Industry EDF Economic Development Foundation EIB Environmental Management Bureau (replaced NEPC and NPCC) FFF Free Farmers Federation FMB Forest Management Bureau FOSA Forest StewardshipAssociation CDP Gross Domestic Product GNP Gross National Product GOP Government of the Philippines "ED Human Resource Development IAMSAS Integrated Area Management Services IIRR International Institute for Rural Reconstruction IPAS Integrated Protected Areas System IRRI International Rice Research Institute ISF Integrated Social Forestry nT Industrial tree planting IUCN International Union for the Conservation of Nature LMB L.nd Management Bureau LiMP Local Resource Management Project MAF Ministry of Agriculture and Food (now DA) MM Metro Manila MKC Metro Manila Commission mm Ministry of Natural Resources (now DENR) MRLF Moro National Liberation Front NANRIA National Mapping and Resource Information Authority NEA National Electrification Agency NEDA National Economic Development Authority NEPC National Environmental Protection Council (now EMM) NFA National Food Authority NGO Non-Governmentel Organization NHA National Housing Authority NIA National Irrigation Administration NACIAD National Council for Integrated Ares Development NPCC National Pollution Contrul Commiision (now EnB) NRDC Natural Resources Development Corporation PBSP Philippine Business for Sociel Progress PFA Philippine Coconut Authority PDS Provincial Development Staff PENRO Provincial Environment and Natural Resources Officer PIADP Palawan Integrated Area Development Project PICOP Paper Industries Corporation of the Philippines POPCOM Population Comission PUo Private voluntary agency RDC Regional Development Council RED Regional Executive Director RP Republic of the Philippines RRDP Rainfed Resources Development Project RTD Regional Technical Director SALT Sloping Agriculture Land Technology SEC Securities and Exchange Commission UP University of the Philippines UPLB University of the Philippines at Los Bsanos USLE Universal Soil Loss Eq tion FOR OMCIAL LSE ONLY Preface This report was prepared principally by members of a mission that visited the Philippines twice in 1987, for three weeks in March and four weeks in November-December. It was revised following discussions with Government in November 1988. In addition to extensive discussions in Manila and Los Banos, the main mission visited various field sites to explore natural resource management issues, including, in Luzon, the t-ingayen Gulf, Pantabangan and Magat watersheds, and Bataue; in the Visayas, the provinces of Cebu, Bohol, Negros Oriental, and Siquijor; in Mindanao, Bukidnon Province; and Palawan. The mission received much information, assistance, and suggestions from officials and others in these localities, as well as from those in many agencies and institutions, including the National Economic Development Authority (NEDA); Departments of Environment and Natural Resources (DENR), Agriculture (DA), and Agrarian Reform (DAR) and their attached agencies; NIA; PCARRD; NACIAD; the University of the Philippines at Los Banos and Dilliman, and Silliman University; the Haribon Society; the International Center for Living Aquatic Resources Management (iCLARM); ADB; USAID; IRRI; Center for Research and Communications (CRC); Philippine Wood Producers Association; and the Paper Industries Corporation of the Philippines (PICOP). The mission was hosted in Manila by NEDA and DENR, and in the field by management ar.d staff of the Bank's Central Visayas Regional Project and Watershed Management Project, and the Palawan Integrated Area Development Project. A workshop held in March was sponsored by the Haribon Society, with funding provided by the international Institute for Economic Development (IIED). In support of the ffARM Study, the Swedish Government (BITS) funded a satellite reconnaissance and mapping of land uses in the Philippines, which was completed by the Swedish Space Corporation with the astistance of DENR's National Mapping and Resource Information Authority (NXAMRIA);the land use map included in this report is one small part of the final product. Support for consulting services was provided by the Canadian Government (CIDA); and UNDP, as part of a project entitled "Pilot Phase for Natural Resources Management and Economic Development." Studies to provide information for ffARM on the biological diversity issue in the Philippines were funded by USAID through a contract with IIED and subcontracts with the Haribon Society and the Conservation Monitoring Center of IUCN in Cambridge, England. Aside from extensive review of available literature, the mission benefited greatly from commissioned papers whose authors participated in a Manila workshop in November. The authors, who have also reviewed and commented on the draft report, were Ma. Concepcion Cruz, Wilfredo Cruz, Garonimo Silvestre, Rodelle Lasco, Wilfredo David, Warlito Natividad, and Owen Lynch, Jr. The March mission was led by John Cleave, and included Celso Roque (envi- ronmentalist), Norman Myers (ecologist), and Charles Cicchetti (economist). The main mission was led by Tom Wiens, and included Norman Myers (ecologist), Christopher Gibbs (institutional specialist), John McEachern (coastal zone specialist), Bert Reid (forester), John Ambrose (land use specialist), William Hyde (economist), and Louise Fallon (economist). Belinda Barlow (research assistant) contributed to report prt*parat ion. This documenthas a xstricted distributionand may be used by recipientsonly in the performantce of their offcial duties. Its contents may not otherwisebe disclosedwithout World Bankauthorization. PHILIPPINES FORESTRY. FISHERIES. ANDM AGRICULTURA RESQURCE MANAGEMENT STD (Sh2Hx) Table 2f Contentsg EXECUTIVU M MR................................................. i-xiv.................. I. INTRODUCTION .......................... 1 Population Growth ............. 2 Urban EnvironmentalProblems .......... ................ 3 IndustrialPollution .......................... 4 Rural Natural Resource Management Issues . 5 II. i UPLANDS...................................................... 9 Land Classificationin the Philippines. 9 Natural Resources in the Uplands.10 Forestry Policy and Practice.17 Uplands Populationand Crop Cultivation.21 Social Forestry.24 Soil Erosion.24 Watershed Degradation.27 Downstream Losses.29 Biodiversity.30 III. THE COASTAL ZQN . .. 33 Mangrove Forest .. 34 Coral Reefs .. 36 Inshore Fisheries .. 41 IV. INSTITUTIONALAND ORGANIZATIONALINFLUENCES . .47 Resource ManagementOrganizations . .47 Government Organizations .. 48 Non-GovernmentalOrganizations .. 54 Organizational Issues . .. 55 V. TH ECONOMICSQF PHILIPPINERESOURCE MANAGEMENT . .61 Economic Costs of Degradationand Depletion . .61 Economic Evaluationof AlternativeForms of Intervention .. 68 Economic Policy .. 80 VI. STRATEGICPROPOSALS FOR IMPROVEDRESOURCE MANAGEMENT . .85 The Core of a Strategy ......... ............................... 85 Institutionaland OrganizationalRecommendations . .92 Forestry Program Recommendations . .97 Coastal Program Recommendations . .103 Establishmentof an IntegratedProtected Areas System .. 106 BiQs in Text Box 1 - The PICOP Project .......................................... 15 Box 2 - The WatershedManagement ane. Erosion Control Project . 28 Box 3 - Palawan IntegratedEnvironmental Plan . 62 Box 4 - The Central Visayas Regional Project (CVRP) . 74 Figures iBntZe Figure 1 - Forest Land Cover by Region . 12 Figure 2 - Value Added in Forstry . 16 Figure 3 - Aggregate Fish Production,1973-86 . 43 Annexes Annex 1 - Mapping of Land Uses in the Philippines. .. 109 Table 1. SPOT Land Cover Statistics Table 2. Classificationof Land Area from SPOT Survey Table 3. Forest