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The Online Magazine for Sustainable Seas
April, 2002 Vol.5 No.4
   


Agriculture and Fisheries Modernization Act and the Fisheries Code of 1998: Key areas ofconflict and recommended courses ofaction

Overlaps and contradictions between two fishery-related legislative initiatives the Agriculture and Fisheries Modernization Act and the Fisheries Code of 1998 pose an enormous challenge to coastal resource management. This article examines areas of conflict and offers possible solutions.

-- Excerpted from a policy paper of the same title by Jay L.  Batongbacal


 

 

 

   




epublic Act No. 8435, otherwise known as the Agriculture and Fisheries Modernization Act (AFMA) became effective as law on February 9, 1998, slightly ahead of Republic Act No. 8550, the Fisheries Code of 1998 (FC), which became effective on March 23, 1998. Although related in that both deal with the fisheries sector, these legislative initiatives proceeded largely independently of each other. The AFMA was more concerned with providing the appropriate budgetary and logistical requirements for the modernization of the country’s entire agricultural base and encouraging a more rapid shift towards industrialization, while the FC was the product of a long-drawn lobby effort by concerned fisheries groups. Both laws were enacted at the end of term of the Ramos Administration, which had committed itself to several major legislative initiatives as part of its socio-economic and political program, and are only now beginning to see implementation.

This article presents the contextual premise by which the two laws operate and subsequently identifies possible areas of conflict arising from the subtle differences between the two. It highlights areas of contradictions so that the concerned national government agencies can give appropriate attention to reviewing and revising the administrative rules and regulations that operationalize the laws.


Modernization of the fisheries sector under AFMA entails increases in the utilization of limited coastal space and more efficient extraction methods, and is likely to increase habitat destruction and resource exploitation. (Photo by S. Green)

Divergence of Principles

          Key Issue. The AFMA places priority on sustained increase in production, industrialization, and full employment. The FC, on the other hand, prioritizes management, conservation and protection of fishery and aquatic resources, optimal utilization of existing resources, and maintenance of ecological balance and the quality of the environment. Although both laws coincide in some general objectives such as achieving poverty alleviation, social equity, food security, rational use of resources, people empowerment, and sustainable development, the AFMA’s distinct character is borne out of its additional goal of seeking global competitiveness. These differences create a subtle tension between the two laws, which can have far-reaching impacts.

          Recommended Intervention. To prevent this fundamental difference from resulting in disaster for the more vulnerable fisheries and aquatic resources, it necessary for the Department of Agriculture (DA) to issue additional guidelines clarifying this potential conflict, and reiterate the policy thrusts of the FC for conservation, management, and protection of limited and stressed resources. The DA must recognize that the fisheries sector must be treated separately, or under a different framework, from the rest of agriculture instead of lumping fisheries with agriculture. The fisheries sector must be regarded with a different perspective that de-emphasizes the maximization of production, and orients the AFMA implementation towards conservation and protection.  

Operational Complications

In addition to the divergent principles by which the AFMA and FC are separately founded, there are also clear operational conflicts that may arise from implementing the two laws, particularly when coastal resource management (CRM) is taken into context.  These complications are anticipated to have an adverse impact in the overall, if not long-term sustainable management of coastal resources.

          Complicated Zones

          Key issue. The AFMA has created a new but very complicated system of zone-based management of agricultural and fisheries development that has serious implications on local CRM. The Strategic Agricultural and Fisheries Development Zones (SAFDZ) are special areas set aside for agricultural and agro-industrial development, where government resources and development efforts are to be concentrated to encourage the creation of geographically-distributed sites of agro-industrial development; the apparent hope being that the existence of the SAFDZ will result in benefits spilling over to adjacent areas. SAFDZs are to have their own integrated development plans consisting of production, processing, investment, marketing, human resources, and environmental protection components. However, the SAFDZ represents enormous potentials for clashes with the framework of decentralized and localized fisheries management not only under the FC, but also under the Local Government Code (LGC).

          Recommended Intervention. If the AFMA is to be legally challenged in the future, one of the most likely issues from which this challenge will arise is the matter of LGU jurisdiction over municipal waters within a SAFDZ. A local CRM approach or project may actually be the catalyst for this issue. In anticipation of this probable conflict, the DA should therefore endeavor to include within the national Agriculture and Fisheries Modernization Plan (AFMP) provisions that will allow for the establishment of a national CRM strategy, perhaps in conjunction with the Department of Environment and Natural Resources (DENR) and the Bureau of Fisheries and Aquatic Resources (BFAR).  This exercise will provide the means by which local initiatives in CRM may be integrated into the formulation of the AFMP, identification of SAFDZ, and the implementation of the AFMA at an early stage.

          Industrialization and Protecting the Environment

          Key issue. The AFMA clearly makes industrialization as the main objective of modernization of the agricultural and fisheries sectors.  The modernization of the fisheries sector would however, entail increases in the utilization of limited coastal space and more efficient extraction methods, and is therefore more likely to increase the rate of destruction of vital habitats and the exploitation of resources beyond sustainable levels. These objectives run counter to the stated objectives of the FC.

          Recommended Intervention.The potential conflict arises from implementation of the SAFDZ system and principles that guide it. Remedial action will have to be in the following forms:

  • The implementation of the SAFDZ system should not proceed without ensuring that a resource accounting system is tested and found to be a reliable gauge of the tradeoffs between industrialization and conservation. Research and development should place utmost priority on the establishment of such an accounting system.
  • The LGUs should be given a much greater role in the identification and delineation of SAFDZs than the national or regional administrative agencies since LGUs are in a much better position to exercise reliable judgment if choices are to be made between rapid industrialization and precautionary conservation.
  • The DA should flesh out precisely how it intends to incorporate the principles of environmental sustainability in the AFMP. It should be noted that even in the AFMA Implementing Rules and Regulation (IRR), there are still no guiding principles that will enlighten planners and decision-makers with respect to how they are to regard the environment in the context of the industrialization that the AFMA promotes. Perhaps this guidance can be found in Agenda 21, or any number of international documents on food security, fisheries, and environment.  The DA must now turn to enacting provisions on how these are to be tempered by rules of similar legal stature that will allow the realization of its stated dedication to environmental sustainability.

          Conflicts in Land Use Planning and Zoning

          Key Issue. All cities and municipalities are required to prepare land use and zoning plans incorporating the SAFDZs. The incorporation of SAFDZs, however, may run counter to any existing land use and zoning plans that may have already been enacted by the cities or municipalities pursuant to their general powers under the LGC. This may entail changes in the land use and zoning plans of the LGUs on the basis of national pressure on account of the creation of the SAFDZs, rather than local pressures arising from actual local needs.

          Recommended Intervention. Since SAFDZs can include fishery areas, it is only logical to expect that the cities and municipalities should also prepare coastal water use and zoning plans. Otherwise, gaps within the SAFDZs are created if the LGU does not specify the classification or use of geographical areas; at the very least, there may be inconsistencies between the classification and use of areas of coastal land and the actual use of the adjacent coastal waters.  

          Planning Mechanisms

          Key Issue. The DA is mandated to formulate and implement a medium and long-term comprehensive Agriculture and Fisheries Modernization Plan (AFMP). The national AFMP is to be an aggregation of local, regional, and subsectoral AFMPs, which are to incorporate integrated SAFDZ plans that consider in particular multi-area projects and programs that cross-administrative and political boundaries. The initial difficulty that can be foreseen here is that plans that cross-administrative and political boundaries require coordination and synchronization of various stages of local and national government planning, which may become impossible to manage on account of many possible differences in objectives, jurisdiction, powers, and perceptions.

          With so many different LGUs, distinct powers, national agencies, special bodies, jurisdictions, and a multitude of laws and policies, it will be very difficult to conduct an efficient, effective, and consensus-based planning process. This makes traditional top-down planning and decision-making a preferable alternative; this in turn contravenes the principles of decentralization and local autonomy so essential to coastal resource management.

          Recommended Intervention. It is imperative that the work of the various planning bodies that derive their mandates from separate laws such as the LGC and the FC, be harmonized. The DA is currently in the best position to initiate this harmonization because it is the agency that provides the impetus for the additional planning entailed by the implementation of the AFMA. Rather than create new overlapping and confusing mechanisms, it would be more prudent for the DA to make use of existing planning mechanisms.

          Realigning Watershed Management

          Key Issue. The AFMA advocates a policy of preventing further destruction of watersheds, rehabilitation of existing irrigation systems, and development of better irrigation systems. It requires the preservation of areas identified as watersheds, which are sources of water used for irrigation and consumption. In so doing, the DA is given the lead role in the preparation and implementation of programs and projects for protection, conservation, and rehabilitation of such watersheds, in collaboration with the DENR, and concerned LGUs, state universities and colleges (SUC), people’s organization (PO) and non-governmental organization (NGO). To this end, the DA emphasizes strategies for erosion control, sediment transport, reservoir sedimentation, water yield enhancement, and development of cost-effective and socially acceptable watershed rehabilitation measures.

          However, there appears to be no limitations as to the character, location, and extent of these watersheds. Although certain watersheds may be located deep within the large islands, in many cases the watersheds straddle the coastal areas, especially since the country is made up of islands. It is possible that these watersheds may be located along large coastal areas. The DA’s watershed protection strategy may therefore impact upon existing CRM strategies where they happen to overlap.    

          Recommended Intervention. Watershed protection by the DA needs to be coordinated with CRM planning. Initially, this will require a review of current watershed protection programs and strategies, together with future plans; it will then be necessary to identify where these programs or plans may converge with CRM proposals and programs. In the case of coastal watersheds, it may be possible to make these two programs complement each other, especially in cases where the maintenance of the coastal environment requires management of the adjacent watershed.                

          Choosing Infrastructure

          Key Issue. Infrastructure usually either introduces changes in environmental conditions, by physically altering some aspect of the locality, or becomes the focal point of changes by drawing intensified human activity. An example falling under the first instance is reclamation, which alters the coastline and can be the source of various environmental impacts; in the second instance, the construction of a port within a formerly pristine bay is likely to begin the environmental deterioration of the bay.  Infrastructures may have either immediate or cumulative effects on the environment in which they are located, and in most cases, it is only the immediate locality that feels the impact. 

          Recommended Intervention. It is important that infrastructure development be guided by local inputs and not completely left to national planners, who tend to focus only on the national impacts in disregard of local effects.  Infrastructure development should be based more prominently on local inputs, in the same way as the planning and decision-making for industrialization purposes. Since the LGC mandates LGUs to provide infrastructure as among their basic services, it would be proper to allow LGUs to guide the DA in identifying, selecting, and undertaking the appropriate and relevant infrastructure projects.  

          Where infrastructure affects coastal resources, it becomes even more important for the DA to pay closer attention to both the community’s current needs and the requirements of maintaining their fragile coastal environments. Guidelines may be needed to ensure that infrastructure planning gives greater weight to the different needs and characteristics of the coastal environment. In this regard, the FC has required certain minimum standards for fisheries-related infrastructure; these should be adopted as part of the implementation of the AFMA.            

          Human Resource Development

          Key Issue. The AFMA reiterates the declaration of policy for the State to promote industrialization and full employment, based on sound agriculture and fisheries development and agrarian reform, through industries that make full and efficient use of human and natural resources. With respect to human resources, the Commission on Higher Education (CHED) has been tasked with the establishment of a National Agriculture and Fisheries Education System (NAFES), while the Department of Education, Culture and Sports (DECS) is to establish an Agriculture and Fisheries Education Program (AFEP) especially designed for elementary and secondary levels. For vocational schools, a Post-Secondary Education Program is to be developed by Technical Education and Skills Development Authority (TESDA). The CHED and DA are to formulate an integrated human resource development plan in agriculture and fisheries, which shall serve as an instrument that will provide the over-all direction in setting priorities in curricular programs, enrolment, performance targets, and investment programs. But under the FC, the DA is to coordinate with the CHED, DECS, and TESDA to upgrade state fisheries schools and colleges that provide both formal and non-formal education. These include the formulation of standards to upgrade all schools so that those that do not meet standards shall be closed. However, the FC is more liberal in that it does not necessarily require affiliation with a national center of excellence for an institution to engage in the teaching of agriculture and fisheries courses. Such affiliation is, in effect, the minimum standard for operation of agriculture and fisheries educational institutions.

          Recommended Intervention. With the responsibilities allotted by the AFMA, it would be possible to incorporate education for coastal resource management in the standard agriculture and fisheries curricula. The DA can initiate the development of formal and non-formal courses in coastal resource management, which has the potential of combining the best of two worlds, namely land management for agriculture, and management of inland and coastal fisheries. Both fields are, after all, sorely needed in the context of the archipelagic nature of the country. Courses in CRM may even become standardized core courses for agriculture and fisheries education.

          Rationalizing Research and Development

          Key Issue. In line with the stated policy of promoting science and technology in agriculture and fisheries, the DA is to collaborate with the Department of Science and Technology (DOST) in enhancing, supporting, and consolidating the existing National Research and Development System in Agriculture and Fisheries (NRDSAF).  "Consolidation" has been defined by the AFMA as the unification in strategy, approach, and vision of the agriculture and fishery components of the ongoing National Agriculture Research and Extension Agenda (NAREA). But then again, the AFMA states that fisheries research and development is to be pursued separately from, though in close coordination with, that of agriculture.  The fishery research subsystem is composed of the National Aquatic Resources Research and Development System (NARRDS) including the Philippine Council for Aquatic and Marine Research and Development (PCAMRD), selected units of the Department of Agriculture Research and Development System (DARDS), selected SUCs, the DENR, the private sector, and specialized agencies.

          However, with respect to fisheries, there is a slight inconsistency between the AFMA and the creation under the FC of a National Fisheries Research and Development Institute (NFRDI). The NFRDI is the primary research arm of the Bureau of Fisheries and Aquatic Resources (BFAR), tasked with conducting fisheries research in development, management, conservation, and protection of fisheries and aquatic resources. With the AFMA and FC, there are at least four different bodies that may be involved in research, development, and extension in fisheries and aquatic resources, namely, the NARRDS and Council and Extension, Research and Development in Agriculture and Fisheries (CERDAF), and the NFRDI and BFAR. Each has an independent mandate to set policies and implement them with respect to the fisheries sector. There is therefore the possibility the CERDAF / NARRDS and the BFAR / NFRDI priorities and agendas for research, development, and extension may not coincide. Oddly enough, the BFAR is not even specifically mentioned as among the agencies forming part of the NARRDS; had it been so, there might be a basis for assuming that as part of the NARRDS the NFRDI, acting for BFAR, will be able to undertake its activities as part of the former. 

          Recommended Intervention.The ambiguity in this situation needs to be clarified. A decision must be made as to what role the NFRDI is to play in the implementation of the National Research and Development  System in Agriculture and Fisheries (NRDSAF). If fisheries research is to be undertaken separately from agriculture, then it would probably be better for the BFAR/NFRDI to attain a kind of "autonomous" status from the CERDAF/NARRDS framework. This would be in line with the specialized characteristics of the fisheries sector that cannot be treated as mere incidental to agriculture, which is chiefly land-based. Resolution of this issue of having a lead institution is an important one, because all CRM efforts require some degree of research, development, and extension activities before, during, and throughout the CRM undertaking. 

          Reconsidering Extension Services

          Key Issue. The AFMA makes it the State’s policy to support the development of a national extension system that will help accelerate the transformation of Philippine agriculture and fisheries from a resource-based to a technology-based industry. The LGUs are responsible for delivering direct agriculture and fisheries extension services to farmers, fisherfolk, and agribusiness entrepreneurs.  The DA provides extension services mainly through the Agricultural Training Institute (ATI) Training Centers. Under the FC, the DA is to develop cost-effective, practical, and efficient extension services on a sustained basis, in addition to those provided by state educational institutions, especially to municipal fisherfolk in undeveloped areas, called the National Fisheries Extension Program.

          Recommended Intervention. These extension services are a possible future tool for ensuring the replication and continuity of CRM efforts in the long term. Since under the AFMA the existing training institutions of the DA are being tapped to develop training programs, it would be a worthwhile idea to formally include within the offerings of these training centers the essential skills and capacity-building activities needed for the conduct of CRM.

          Finding Basic Needs

          Key Issue. While LGUs have indeed been given authorization to engage in investment and marketing missions, a rapid shift towards industrialization may not be what they need. In fact, in many ongoing CRM initiatives, moves toward industrialization become focal points for concern because of the environmental costs that they usually entail. Since the AFMA requires LGUs to now identify industrial sites, CRM planning must now always contend with the additional problem of industrial siting.

          In the case of CRM, the more basic question that needs to be answered is whether the idea of industrialization itself is appropriate for the community. Is it acceptable for basic needs to be satisfied only by wages in the context of an industrialized economy, or is it more feasible not to adopt industrialization and instead concentrate on ensuring that the current level of the local economy, however it may be set up, accomplishes the fundamental task of allowing all resources and benefits from these resources to be equitably shared by all the members of the community? 

          The "basic needs approach" appears to assume that in all cases the populace will accept industrialization as the key to a better life. This is not necessarily true. In using the "basic needs approach", the DA should emphasize development objectives that are appropriate and relevant for the specific needs of the local communities 

          Recommendation Intervention In using the "basic needs approach", the DA should emphasize development objectives that are relevant for the specific needs of the local communities.

          Training of Workers

          Key Issue. The TESDA is mandated to organize local committees that will advise on the scope, nature, and duration of training for the Basic Needs Program and Rural Industrialization and Industry Dispersal Program. As a nod to the role of coastal management, the AFMA also specifically provides that the DA and DENR shall organize the training of workers in CRM and sustainable fishing techniques. This is to be undertaken in coordination with CHED, TESDA, DECS, ATI and Philippine Fisheries Development Authority (PFDA), within the Basic Need Program (BNP) areas and SAFDZs. The problem is that the AFMA seems to assume that coastal resources management and sustainable fishing techniques are of the same category and are appropriate subjects for "workers". There are two possible meanings of this term: (1) generally, persons who undertake particular tasks required of them, and (2) a class of persons who perform labor in exchange for wages or goods. That the term "workers" has these meanings is all the more highlighted by the fact that the TESDA is mainly a vocational skill training institution; it is not a school for managers or decision-makers.

          Recommended Intervention. It would be useful for the DA to distinguish between (1) CRM training as part of an educational program to develop competent and professional coastal managers, and (2) CRM training as part of the implementation of CRM strategies or programs. Using this distinction in providing CRM training, TESDA will be concerned with two groups of people: (1) "managerial"-level people, such as LGU officials and government agency personnel, who will require re-orientation into the CRM approach, and (2) "implementers", those members of the community affected who will be asked to undertake certain activities or take actions as part of the CRM plan. These will require different training designs and curricula, and in some cases may be beyond TESDA’s capabilities or scope as a vocational institution. Particularly for the first category, other educational institutions may be more appropriate venues. It would be helpful if TESDA were to define the scope of CRM-related training that it can provide, so that provisions can be made through the other aspects of the NAFES to fill in the gaps in CRM-education that will likely be identified thereafter.             

          Providing Incentives

          Key Issue. The AFMA provides for fiscal incentives for enterprises engaged in agriculture and fisheries, which for five years from the effectivity of the law, shall be exempt from tariff and duties for agriculture and fisheries inputs, equipment, and machinery, including fishing equipment and parts thereof. A word of caution is appropriate here, as the grant of fiscal incentives for fishing equipment and gear, thereby making them cheaper and more accessible, would run counter to the policy of conservation and protection in the long run, since cheaper fishing equipment will lead to a more active fisheries sector, which becomes more efficient in production of catch, which then translates to faster extraction of the already limited fishery and aquatic resources. 

          Recommended Intervention. In selecting goods and services that will be subject to fiscal incentives, the DA must exercise caution that it is not actually accelerating the pace of development of fishing gears and extraction of fishery resources. Through BFAR, the DA should still take care in regulating the entry and use of fishing gears that will only contribute to the faster degradation of fishery resources.  

          A Question of Funding

          Key Issue.There are significant fiscal allocations that may be the source of funding for various activities related to CRM, from both the AFMA and the FC.

          Recommended Intervention. CRM projects may benefit from the AFMA and FC by funding projects or activities that come within the pertinent funding windows. The LGUs should also participate in these projects or activities.

Danger and opportunity

          The Chinese character for "crisis" is said to mean both "danger" and "opportunity". In much the same way, the AFMA represents a possible danger or opportunity to CRM on account of how it interacts with the current legal regime for fisheries and aquatic resources. The AFMA is a rather enormous attempt at micro-management of agriculture and fisheries, but fisheries have already acquired a management system of its own.It would be very easy to dismiss the possible conflicts between the AFMA and the FC as resolvable through the simple rules of a later law amending the prior law, and a special law prevailing over the general law. But certain complications arise from the fact that the implementing arm of the FC is a subordinate bureau of the implementer of the AFMA; that the fisheries sector is still considered a part of agriculture; that the implementing rules of the AFMA were issued after the implementing rules of the FC; and that in many cases, the overlaps between the AFMA and FC are so subtle as to require harmonization, because they cannot be viewed as outright amendments.       

CRM, which places great reliance on both the FC and LGC, will find itself challenged by the AFMA and the system it provides. The opportunities for conflict are numerous, but so are the means by which they can be avoided.



Bachelor of Laws, University of the Philippines 1991,  Master of Marine Management, Dalhousie University (Canada) 1997.  Mr. Batongbacal is a Research Fellow of the UP Archipelagic and Ocean Studies Program, and currently Executive Director of the Philippine Center for Marine Affairs, Inc., and a member of the Coastal Resource Management Network. He is a legal expert in marine policy.  His areas of study have included international maritime boundaries, marine environmental policy, coastal resource management, and fisheries management

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