The proposed federal form of government will help eradicate the oppressive middlemen trading system in the Philippines, an official of the official of the Mindanao Development Authority (MinDA) said.
Speaking at the Habi and Kape press forum, MinDA Public Relations Chief Dr. Adrian Tamayo said Federalism addresses middlemen who controls the product supply chain because production is co-integrated and the consumers are grouped together based on their culture, taste and preferences.
“So therefore the cost of goods that reaches the market will not be as inflated as the middle men now are reduced into transportation from the farm up to the immediate market. At the moment many middlemen captures the value of the product because again it is a centralized and controlled market and it is easy to implement every now and then cartel or monopoly for that matter,” he said.
Though there will be trading among and between inter states, the producers and goods are protected by their respective regions, he said.
The Constitutional Commission tasked to draft the federal constitution has proposed the creation of 18 federated regions.
To the issue of economic value, Tamayo said Federalism would create now a kind of market that is unique also to the demands of the people residing within a territory. He said present set up , under a centralized form of government, market is controlled .
“Secretary Pinol himself mentioned on this when he created a kind of market that addresses to the demand of the consumers in Bohol it created economic activity in Bohol. All the rest of the big markets are controlled markets. Federalism will therefore address access to the markets because the kind of products told in the market the market system that would be implemented within a territory are consistent with the manifested demands for goods and services of the people within the territory,” he said.
He also cited the current problem on rice supply facing the National Food Authority which is commercial and regulatory as example of a controlled market.
“But over time with the course time because it is concentrated control from the top and centralized the agency moved for the commercial rather than on the regulation. The regulation is maintaining, ensuring that the right of amount of supply is distributed across the country,” he said.
“What happen is there’s already the cultural system of barter economy that occurs in Zamboanga, Sulu, and Tawi tawi. Some others call this as backdoor. But in the course of time it is actually a cultural economic set up,” he said.
He said barter economy is one of the many initiatives of MinDA because it’s there already even the Philippines became a sovereign country. But at present barter is illegal, when in fact it is a cultural system and only those who are part of it and those who understand it culturally can address this.
“Federalism will provide a leeway how to make these things the culture, economic, political, structure, and even internal security be addressed. There goes the economic side and the current system actually further pushes us down because the distribution of rice is done at the top. Therefore economically the current set up we see barter economy consistent with federalism as a way to address the chronic problem of hunger and poverty in Mindanao,” he said. Maya M. Padillo