Wednesday, April 20, 2011

Good things Aquino admin is doing..

I have been on Holiday for quite sometime and I have visited Barangays and farming communities in the eastern part of the Visayas. I have learned that more farmers today are upbeat and confident of the future due to the policies of the Aquino administration, although much more could be done.

1. Prices of copra. Around 60 to 70 per cent of people here have coconut farms. Prices have gone up from P14 to around P45 at farm level, and from P20 to P60 at city purchase level. This has effectively increased farmers income from coconuts hugely. Farmers are happy with the prices. The government could help them more with technologies to further increase their production levels. Technicians and agri-technologist are needed in communities to do technology transfer among other issues.

2. A program called "for peace" or something by the DSWD. Around 50 poorest families in every barangay are recipients. This would provide P600 per child per month. This is just WOW! Everyone is talking about it, and everyone is upbeat. It is limited to 2 kids per family of school age. I am just hoping this would not encourage having more babies among poor families just for sake of P600 assistance. The government must do this fairly and without corruption.

3. The P500 pesos a month per "senior citizen assistance.

These three things would greatly eradicate hunger in huge swaths of communities all over the country.

Great job going.


Oil prices.

EVAT is extemely important for the government so it must not be touch. If the oil prices gets worse than it already is, then the government must think of doing something about it.

They could probably make EVAT in oil elastic. They could freeze the oil price at a price level, and the further increases charge to EVAT. Which means the price could be frozen up to levels of 12% equivalent of EVAT. This would look like this:

If current price is 50 per liter. The government earns P6 per liter from EVAT. If the government decide to freeze price levels at P50, then further increases could be charge to EVAT which would provide them a room of as much as P6 anticipated increases which further would equivalently reduces EVAT earnings on oil until it reaches P0. Further increases, the government should think about subsidizing it up to a certain amount.

The government recovers everything back when oil prices goes down below 50 per liter, but would still keep it frozen st P50 liter for a period of time until losses from EVAT, and its possible subsidy is recovered.

This is win win.