Prioritize agriculture,
Loren tells government

Senator Loren Legarda yesterday urged the government to review its economic programs to prepare the country for the "unforeseen" economic shock associated with the global financial distress.

"The government must act now before it's too late," said Legarda, wary of the impending domino effect the current financial meltdown may have on the country.

"If the economy of a huge and strong county such as the United States tumbles, the Philippines for sure is much vulnerable too," she said.

Attack in the US financial district continues unabated despite the government's bailout since Lehman Brothers and American International Group went in tatters.

According to Legarda, the government must give strong consideration to agriculture to spur food production and agriculture-related industries.

With a population now close to 90 million, it would be wise for the government to re-evaluate whatever program it has in agriculture to ensure stable source of food supply.

This, she said, the government can do by asking the Department of Agriculture (DA) to initiate massive food production.

"Population explosion certainly affects food production because lands that may be devoted to agriculture may have to be converted to residential to sustain the need for housing," she said.

"We must think that ours is an agricultural country, and that millions of our citizens depend on agriculture for livelihood," she said.

The Philippines used to be one of the biggest exporters of rice in the early 70s. Now, the previously-exporting country is importing to sustain its supply of main staple food.

The Chair of the Senate Economic Affairs committee also advised the government to have prudence in spending so as to avoid eating out a large chunk of the country's meager budget.

"If the government can tell our people to tighten their belts, then it must be the first to do it by cutting down unnecessary expenses," Legarda said.

Legarda also reminded the country's economic managers to be extra cautious, even amid a piece of good news in the inflation front.

"We must not confident just because of inflation rate has eased out. That was too small for the people, especially the poor, to feel its result," she pointed out.

Inflation eased out to 11.9 percent in September from a 17-year peak of 12.5 percent the previous month.