Friday, July 10, 2009

REGIONAL COOPERATION

NO HOLDS BARRED (022) July 11, 2009
By Ike Señeres

REGIONAL COOPERATION

What is the Asia Pacific Economic Cooperation Forum? APEC was envisioned to be a venue for “economies” within and around the “Pacific Sea” to come together to cooperate with each other. This has been an emerging trend in international relations, for countries or economies around “bodies of water” to work together towards common economic goals.

How to organize local economic forums? Here in the Philippines, we have about 240 river basins all over the country, and that does not yet include other biospheres that are bound together by common lake shores and coast lines. Since climate change is ultimately linked to climatic and geophysical changes around river basins, lake shores and coast lines, why not build economic cooperation forums around these biospheres, APEC style? This is definitely better than having fragmented forums in each jurisdiction.

Which has more money? Is it CDM or is it CDF? Believe it or not, the Clean Development Mechanism (CDM) could be a bigger source of funding for Local Government Units (LGUs) compared to the Countryside Development Fund (CDF). Well, the comparison is inexact, because LGUs are hardly able to have access to CDF anyway.

What is CDM? It is the mechanism devised by the first Kyoto Protocol (yes there is now a second one) for the purpose of allowing industrialized countries with greenhouse gas reduction commitments to invest in projects that reduce emissions in developing countries as an alternative to the more expensive emission reductions in their own countries.

How can LGUs make money from CDM projects? The local government code allows LGUs to enter into projects in the same manner that private corporations could. This means that LGUs, acting on their own or in joint venture with private companies could enter into projects that could qualify for CDM investments. Consequently, these projects or companies could sell the carbon credits produced to buyers representing companies in the industrialized countries.

Can LGUs own and operate utility companies? The answer is yes, either investing on their own, or in joint venture with private companies. In areas where there is no electricity, LGUs could actually invest in mini hydro projects. Even small rivers and small waterfalls could be tapped to produce energy. As a bonus, the local irrigation system could also be improved. Projects like these are already in place in Cordillera Province.

Are electric cooperatives engaged only in the selling of electric power? Could it be part of their mandate to provide lighting to off grid areas? If they could catch on to this new orientation, they could sell the solar lamps on installment terms, since they are the ones who have the money to invest in inventory.

Is it really better to distribute water in the provinces through the so called “water districts”? Why not follow the business model of electricity, which is now being sold by electric cooperatives? This will remove the burden from the LGUs that are now sponsoring the existence of water districts. Is it now time to study the potential of water cooperatives?

Is it time to think about gas cooperatives? There are now technologies that are available that would enable small communities to own and operate their own gas company to distribute cooking gas. The methane gas could also be produced locally on site. This being the case, why not put up gas cooperatives also? With more coops entering the utilities industries in the rural areas, we could see the faster distribution of wealth.

Why not localize the irrigation function? Water cooperatives could also actually become the providers of irrigation water. This would actually spur local productivity in such a way that we might even attain self-sufficiency in rice much earlier.

Why not supply water to orchards too? Trees need water too, believe it or not. In some places, rain water may not be enough for trees to survive and bear fruit. So why not also make it the business of local water cooperatives to supply water to the local orchards? We need to change our mindset, away from the old thinking that irrigation is only for rice, period.

Watch my TV show “Bears & Bulls”, a daily coverage of the Philippine Stock Exchange. 9:00 am to 1:00 pm in Global News Network. Email iseneres@yahoo.com or text +639293605140 for local cable listings.

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