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Erle Frayne D. Argonza
[Writ 07 May 2008, Quezon City, MetroManila. Writer was former Livelihood Coordinator of the Ministry of Human Settlements, PAC Gonzaga, from July 1981-June 1982. In Jan. 82 he was designated Acting Deputy Provincial Manager, concurrent with the livelihood post.]
Let me go through with my continuing journey as a young development professional, and transport you this time to the town of coastal town of Ballesteros in Cagayan. This town is famous for its crustaceans, notably crabs and lobsters. Let me stress here that the crabs and lobsters were huge by size compared to the ordinary, making them worth writing.
In the last quarter of 1982 my agency then, the MHS, finally recruited, trained and deployed Municipal Staff Assistants or MSAs. It was a great relief to acquire the “new kids on the block”, as it lifted so many burdens from us provincial staff, both technical and communicative (information dissemination of the KKK). From Ballesteros came this lanky young male staff (name now escapes my memory), with long ‘babalo’ chin. He was a no mean staff, to recall.
Mr. Bubbles (that’s how I jokingly call ‘babalo’ long chin folks) brought to my attention right away the huge potentiality of expanding crustacean production in his town. Unfazed by his rather dynamic explanation, who was almost gyrating like Elvis Presley during his presentation, I arranged for some consultations with fish farmers there (crustacean producers who operated onshore) as well as municipal fishers (who operated offshore). I simply wished to verify what my staff had reported to me then.
I found out that my staff did presented information in as truthful a manner as possible, verifying every millimeter of his report to the dot. I then arranged a visitation to the coastal area to see for myself what things were in there. To my own shock (I do get this feeling in the field at times), I realized that their ‘gears’ for fish farming was appallingly primitive (hmmm this is what I got for being an acculturated Big City boy in Manila: culture shock at local life). They used guava twigs that were planted below the sea level, after which the fish farmers would pick them up, with the ‘victims’ riding on the twigs.
As usual, my team’s task was to conceptualize what innovation to introduce there. That’s why our job is called ‘development’. To recoup from my initial shock (I really had to criticize myself silently), I quickly arranged for consultations with the technical staff of the BFAR (Bureau of Fisheries & Aquatic Resources) who became our constant partners in the area (they were so elated at our arrival there), as well as the professors of the Cagayan State University (CSU) –Gonzaga branch (agriculture & fisheries campus). From the consultations and research of my staff, we pieced up information about the techno-component that would be simple to operate and utilize local resources for inputs.
Since we already had municipal fishing with bagoong making in Gonzaga, my team, with the nod of our BFAR partners, decided to focus crustacean fish farming in Ballesteros. So we had this double task of convincing the municipal fishers in the town to sideline as fish farmers if they wish to benefit from the KKK enterprise finance program there.
Our simple innovation introduced to them was the ‘fish cage’, or ‘crustacean trap’. It was made of wooden and tree branches, with grill-fashioned openings to let the smaller crabs & lobsters get in, where they’d stay and feed. As soon as they grew in size, it was difficult for them to go out if at all (experiments have shown they don’t go out as they acclimatize to the domicile). Simple indeed, but so sensible as it increased the yield of the marine farmers.
We also had to convince the fish farmers to apply as individual proponents. The parameters in the area were different from that of neighbor Gonzaga where offshore fishing was the primary engagement. It was more fruitful if each individual would work on his ‘crustacean yard’ (by the sea), though collectively they would have to secure the area together (there are always thieves everywhere, remember).
Project approval was fast for this one. I don’t recall now the exact figures per project. But my recall is sharp regarding the approval, financing, re-training of fish farmers, take-off, and the most important: taste of the final result. The lobsters and crabs using the traps were even larger than the previous pre-trap days! I’m sure you’d agree with me that these crustaceans warm up the heart and brighten your day when you see, feel and taste them.
Erle Frayne Argonza
Tuna sandwich, tuna adobo, grilled tuna, and more tuna. We’re surely a happy people here in the islands, based on Asian researches showing that in fact we’re the happiest people. I’d say tuna is among those fauna that satiates our appetites and make us happily fulfilled.
In case you fellows would want to know what gears are used to catch tuna—that would not damage the environment nor the infantile tuna—let this be told. Muro ami and purse seiners are still in among some commercial fishers here, but these are stoned aged gears. The purse seiners scrape the coral reefs below sometimes, thus damaging the spawning areas of fishes. Muro ami exploits children who are used with the gear, and threaten their very lives.
In the early 1980s, as a junior executive then with the Ministry of Human Settlements, I had the opportunity to eco-scan the offshore areas of Cagayan, with fisheries experts and investors tugged along. Among the enthused investors were the executives connected with Dr. Edward Litton who was at one time the richest man in RP (he owned Litton Mills, and was into food exports). I also had at some times interacted with the billionaire himself, in his Wac-Wac home in Mandaluyong City (Manila).
What caught my attention then was the opening salvo of new technologies to catch, store, pack and retail tuna without the damaging effects of the stone age gears. At that time, the Long Line Tuna equipment was freshly released, and our neighbor Taiwan was producing the gears in mass scales. It cost P1 M then to purchase a long line tuna which comes with the big boat, the long line, sashimi-grade storage, and packing. That is roughly P18 Million today.
If one would add at least four (4) months of working capital, the funding requirement for a Long Line Tuna Project would cost P1.5 Million in 1982, or roughly P27 Million today. Former executives of Dr. Litton, namely Atty. Pefianco and Efren de Castro, put up their own trading firm, and was the proponent of a start-up project funded under the Kilusang Kabuhayan at Kaunlaran or KKK. Their company though, the EFCI, had joint undertakings with the old boss, Dr. Edward.
The gear surely fascinated me. It didn’t use nets, but rather a long line that could stretch to 7 kilometers long. Using floaters, the long line would be situated just above water, with the hooks containing tuna feedlots just a few feet below the waters. Upon hauling a catch, the tuna is pre-processed right away, cleaned and pre-cut to large sizes, and stored as sashimi-grade products in the built-in refrigeration. The gear could go out to sea for days, at most for four (4) weeks assuming that provisions would be complete.
Another news that fascinated me then was that over 3 Million tons of tuna—that traverse the Pacific towards Taiwan and Japan—die every year due to old age. It means no one is catching them, so they simply die naturally. The point is, why not catch them en masse, catch even just a few thousands of tons? The byline worked, I was convinced of the production side to the project, and I had it be endorsed for approval in late 1982. Loan requested then was P1 Million, with the rest declared as equity.
The fish boat of the long line tuna gear was at that time already the automatic steering type. It was programmable in such a way that, all by itself, it can sense blockages along the way (eg. rock formations, small islets, vessels) and avoid them by re-routing, before it traverses the same path programmed for it. Amazing gears!
Today we could just imagine how the gears for catching tuna and game fish, the real large ones, could have evolved. Great catchers can use the usual fish line to catch a bull as large as 300 kilograms, such as my sibling Emerald who is an expert on game fishing. In Mexico, the Tuna Cage is now in operation, where cages are used to trap baby tunas that are then raised in the same cages placed just below the sea, under the fish boat.
As a development official then, and even after that (as private person), I found it wonderful to go out with fisherfolks for the early morning catch. I can never forget the experiences in Cagayan, Quezon and Batanes in particular. Privately, in California, I’d go out with sibling, bringing along our family speed boat there that also dabbles out as fishing vessel. It was really fun, learning, and thrill altogether.
[Writ 06 May 2008, Quezon City, MetroManila]
Erle Frayne Argonza y Delago
[Writ 04 May 2008, Quezon City, MetroManila]
As I went around Batan Island, Batanes province’s main isle that contains the capital Basco and the domestic airport, for the 1st time in 1981, I immediately scheduled visits to the Mayors of Mahatoa, Ivana and Uyugan towns. I heard from my kins, the Basco Mayor Castillejos included, and staff that these towns still practiced consuming ‘sweet potato’ and ‘gabi roots’ as staples. Prior to that, I saw with my own eyes the huge bulbs of garlic that dwarfed the golf-sized ‘native’ varieties we had in the ‘mainland’ (Luzon). I told myself I can’t miss out on this opportunity to biz-track the root crops of Batanes.
I was then livelihood coordinator of the Ministry of Human Settlements for Northern Cagayan & Batanes in the 2nd semester of 1981, so I had the mandate to do development tasks for this paradise island. So enchanting was this province that I literally experienced heart pains whenever I left Basco back for Tuguegarao and Gonzaga in Cagayan where my official headquarters were located. Part of the enchantment was the wonderful root crops there: sweet potato (kamote roots), gabi roots, garlic, onion, and ginger.
Right away, upon arriving at Mahatao town hall, the lady mayor served my team fried sweet potatoes that were sliced so thin they would pass for some manufactured sweet potato chips. The lunch came, and there went out the boiled sweet potato, served alongside the viands. Lunch was also served with the wonder wine made from sugar called palec. No rice was served at all.
After lunch we visited farm lands planted with the root crops. I was amazed to see farms planted in the old biodiversity way rather than the nutrient-damaging monocrop system. All the root crops mentioned here co-existed in plots as small as half a hectare. The small planters than informed me that they were interested in increasing the volume of production and explored marketing some products to the ‘mainland’. They needed some fresh funds to increase the land area (via purchase), install good storage facilities, and working capital for farm inputs and marketing expenses later.
I was then motored to Ivana town after that, and lastly to Uyugan (hmmm am I right in my ordering?). Traversing these towns was via an asphalted road at the periphery of the islands, and overlooking the sea below. To your left are the stone houses of Batan, much like those of the isle of Capri in Italy. Herds of Brahman cows and carabaos could also be seen, consuming the luscious verdant pastures of the rolling hills. Perfectly idyllic! Splendid! …I heard practically the same things from the small planters there, about the need to expand production.
That is, the prototype ‘root crops project’ there would turn planters from subsistence producers to commercial producers, turn them into agro-businessmen. Seeing that the planters knew what they were aiming at and how to achieve it, save for writing the technical papers (biz plans, proposals) and processing them, I “jumped the gun” pronto and declared that for the whole of Batanes (including the other isles of Sabtang and Itbayat that was nearer Taiwan than Batan) will have root crops production as priority investments for state assistance.
As soon as I convened the new Kilusang Kabuhayan at Kaunlaran Secretariat there (I was already the deputy provincial manager-designate), I put on the top agenda that root crops and indigenous crafts of the island shall be preserved, not only as part of the development program there but also because the products and crafts are part of the national heritage. Anticipating the ‘green revolution’ in Batanes then, I also put on the agenda of the core Provincial Development Council the fast-tracking of electrification and wharf expansion, and the acquisition by Batanes of its own maritime ship that will enable trade expansion by leaps and bounds.
With only a year to operate in Batanes, I did everything I can to see to it that the development principles and targets I initiated there will take off at least, sensing that I might be re-assigned (promotions for this young technocrat was dizzyingly rapid). P500,000 worth of root crops projects alone, owned by small planters, were approved in early 1982, during my watch (that’s P10 Million today). Couples of millions more worth of projects were on the pipeline. Happily, when these projects took off, the National Electrification Administration team arrived, installing at last the long awaited electrification facilities in Batan.
Finally, let this be stressed strongly, I moved for the retention of the biodiversity practices in Batan. With ‘ecology balance’ among my agency’s priority agenda, I had sufficient weapon to support biodiversity rather than shift the planters to mono-cropping that sadly sapped out soil nutrients in ‘mainland Philippines’ since their inception during the time yet of Spanish Governor General Basco (1700s).
Every time I left Basco back for Tuguegarao then, I also had on hand more than a kilogram of garlic, sometimes with onions and ginger. I was so proud of the garlic that I always brought a few samples to show to my kins and fellow state officials in the ‘mainland’. The same variety now is cultivated in many regions of the country. But Batanes’ cutting edge is fully recognized: garlic & rootcrops here were planted in the sole paradise islands of the north. Ipso facto, they are root crops that enchant too, like their mother soil.
Erle Frayne D. Argonza
[Writ 01 May 2008, Quezon City, MetroManila]
Samurais in Tuguearao! That must be a farfetched chimera, but truly in this capital town of Cagayan province (Northern Philippines) is located a village of cottage industries run and managed by marginal artisans. Their chief craft was, and remains to be that of bladed metal works.
I was pretty busy scouring for bankable projects in my own hometown (my basic education years were spent in Tuguegarao) as early as 1981 when news came to me that a certain group of Larion craftsmen desired to bolt away from their tradition and diversify into hmmm samurai swords. Already a junior executive of the Ministry of Human Settlements after barely out of college, I had the luck of having among my personnel a driver who was bona fide resident of Larion village (barrio was the term then).
The driver (Rolando Tumpalan), an Ilocano like all of his neighbors in Larion, was very vivid in his presentation to me one day of the plan of his neighbors to diversify into samurai swords and accessories. I knew since childhood that Larion produced bolos and knives, made from cast iron scraps, even as my own family abode possessed couples of the same products. But to say of samurai swords, well, my encyclopedia set was telling me that the original thing was made of a specially forged steel alloy. Besides, I knew by then that samurai craft (it was home industry in Japan) was dying if not dead already. Japanese considered themselves as Western people and had nothing to do with seemingly phoney items from their past, including kimonos and samurai blades.
Before some Larion guys might be playing tricks on me, I summoned my operations manager (Mia Calimag) and Livelihood Coordinator (Bong) to immediately set a rendezvous between the regional director of the National Cottage Industry or NACIDA (name now escapes my memory) and myself, with our technical staff around. The NACIDA was one of our partner agencies in implementing the KKK and was already in operations way ahead of us in the region (my agency was regionalized only in mid-1981).
Well, thanks to this magnanimous NACIDA official, he came right to my office, breaking protocol by visiting the office of an erstwhile official of lower rank. We than set our joint agenda and modus operandi first of all, updated each other about initial enterprise support operations of our respective agencies, and determined whether the Larion metalworkers were worth supporting. To my own surprise, this director (quite a fat guy but very intelligent) was very enthusiastic about the samurai project.
This being so, we immediately arranged for a visit to the proposed project site in Larion, had a chat with the officials of the cooperative (the coop served as beneficiary), inspected their facilities, and then delivered pep talks to the members. We were then shown models of the proxy swords produced by them, and wow! My eyes almost popped out of wonderment. The products were splendid! The intended captive market was the tourists, with domestic tourist resorts and trade exhibit sites serving as primary forward linkages.
The funding support from the KKK (Kilusang Kabuhayan at Kaunlaran) was needed to procure extra machines (metal lathe included), mini-furnace, increase the volume of raw materials (steel scraps), improve the storage area, hiring marketing & sales staff, re-train the artisans, and for around three (3) months of working capital. Funding level was past P0.5 Million, with approval done merely at our regional level (past the P1 Million it has to go to central office).
The Larion coop members were very elated over the support shown by us state officials over their venture. Such an elation would extend throughout the processing of their documents and pre-operational trainings, and on through their appearances in some KKK Recognition Days (held once a month).
The project did take off and operate successfully, and made the name of Larion blade makers shine brightly beyond their previous marginal state. It’s now over a quarter of a decade since that project commenced, and I wish the Larion samurais had graduated to global standards in any way.
Bro. Erle Frayne D. Argonza
[Writ 12 April 2008, Quezon City, MetroManila. The author was a former young executive of the Ministry of Human Settlements for Cagayan and Batanes provinces and for Cagayan Valley. ]
Financing micro-enterprise has now come a long way in the Philippines. And there is much cause for jubilation regarding this particular feat.
I myself began my professional career in enterprise finance, as a young livelihood supervisor with the defunct Ministry of Human Settlements. Our funds sources for development financing then were from three sources: (a) Human Settlements Development Corporation or HSDC; (b) Kilusang Kabuhayan at Kaunlaran or KKK (roughly, National Livelihood Movement); and, (c) BLISS Program, for those BLISS housing site-related projects. That was in the early 1980s, and we were quite awash with funds then.
With quite a huge war chest for our projects, we sat down in no time at all around the 2nd quarter of 1981 to plan the compass of operations for the newly launched program, the National Livelihood Movement. It took us around two (2) months to do planning internally, after which we took another couple of months to dialogue with other state agencies and procure their own co-operation and partnering with us regarding the project prototypes and modules.
Among those projects that we identified pronto were those simple micro-enterprises that would easily buy with the folks. Our projects though went beyond the micro-finance, as we were mandated to fund huge projects via the HSDC program. I was with the Cagayan Valley team then, and was transferred from community development to livelihood program just so that I can focus my tasks of taking off the new KKK program in my areas of jurisdiction.
I recall very well how reluctant were the folks in accessing to financing. That was a time when the Philippine economy was still 50% rural, and the psyche of the folks was strongly of the peasant-rural artisan type. They couldn’t easily identify with new ideas, even as they get suspicious over them, as the failures of previous programs (e.g. Masagana 99 for rice) have transmogrified them into shy turtles whenever enterprise financing comes. Besides, they weren’t that confident that they could run their own projects competently.
Given that rural background of the folks, our project teams prioritized food production-related concerns, as well as crafts that were more or less backward or forward linkages of food production. To name a few project modules that we developed and successfully funded via the KKK: garlic production (1-1.5 hectares); citrus orchard (5-10 hectares); goat raising (10-heads); draft carabao (1-head buffalo); onion production; bagoong production (backyard, jar-crucible). The total list of enterprises actually went beyond 100 in Cagayan and Batanes alone, where I was primarily assigned. I’m citing only the micro, individual beneficiary-operated projects here.
Because the program was new, we had to undertake a social marketing campaign by informing not only the people but also our partner agencies. The latter were particularly very helpful in our efforts at capacity-building, both for our development implementers and beneficiaries. The financial delivery system also had to be oiled well, as this involved co-partnering with state banks that acted as fund repositories and co-evaluators. It was a success as a whole, amid the gaps in the initial implementations.
That was a long time ago now. The KKK is still alive as an institution today, many other micro-finance institutions have already cropped up including NGOs, and the central bank already entered the arena for regulatory and wholesale funding purposes. The old informal micro-financing, via the 5/6 scheme now has to retool or repackage their financing, as they have been perceived as economic barnacles and have to compete with the formal institutions for beneficiary loyalty.
The great thing with micro-finance is that not only does it save the petty commodity producer from poverty. As the case of the early 80s had shown, the KKK and related programs were instrumental in cushioning the impact of global recession and the internal shock caused by Dewey Dee scandal that sent down the economy like a sinking boat.
When a strategy such as microfinance can save the boat both on the micro and macro levels, it can indeed be a very strong strategy for national salvation. And this is where our jubilation comes in.
Mabuhay! A toast to micro-finance!
Bro. Erle Frayne D. Argonza
[Writ 11 April 2008, Quezon City, MetroManila]
Most recently, Philippine economic growth reached impressive levels of 7.3% GDP and 8.4% GNP. GNP is measured by adding the Net Factor Income from Abroad or NFIA, comprising largely of remittances from overseas workers and overseas investments. There is surely cause for elation over these developments.
How far has Philippine development progressed? Quite far, to say the least. In 1946, when the USA granted independence on this ‘far-east’ colony, the Philippines was a backward, agrarian economy that was dependent on manufacturing imports to move on. It was also coming out of its war-torn phase, and had to embark on an ambitious recovery program first as part of its development program.
Today that post-colonial past is now a distant epoch of a long by-gone time. The work-force is dominated by the services sector which also contributes to 55% of the GDP, while industry contributes 30% more or less though a measly 16% of the work-force. Agriculture itself had quite modernized, though it now contributes to just around 15% of GDP and 36% of the work-force.
Urban population had already surpassed the 55% mark by the middle of this decades and is still surging ahead as urbanization makes radical, sweeping changes over vast expanses of rural villages and small towns. Manila, the primate city, is as huge as a mega-polis, contributes 1/3 to the national output and is now a highly reputable 1st World city. Philippine investments have been moving out of the country as part of wealth production overseas, aside from overseas labor, and in long run remittances from investments will exceed those from manpower. The domestic banking sector is so awash with cash, that it can fund the most ambitious development projects conceivable, thus cutting off RP’s dependence on foreign debts.
But RP still has a long way to go before reaching a 1st World status. Using the industry cycle—where an industry progresses from ‘take-off’, to ‘growth’ stage, then to ‘maturity’ stage, then to ‘overdeveloped’ or ‘decay’ stage—experts can easily assess that RP is already at the tail end of the ‘growth stage’. It took so long a time for this to happen, as this stage began in the 1970s yet. The ‘take-off’stage likewise took so long a time to conclude, as it started in 1948 yet, more or less, got bogged down for some time in the 1960s, before moving on to the next phase during the technocratic-militaristic order of the 1970s.
But RP had already moved forward, this had to be recognized most of all. It is now a 2nd World economy, still an ‘emerging market’ though already no longer the backward/agrarian ‘carabao economy’ that it used to be, and no longer rural but predominantly urban. And this news is sufficient cause for euphoric jubilation.
If only the late economist & sociologist Joseph Schumpeter were still alive today, the Philippine experience would make him happy. RP authenticates well his theory of cycles, particularly the long-wave Kondratieff cycle. This cycle contends that long-period growth takes place over a period of 55-60 years, with expansion at the beginning half and contraction at the last half.
RP began its ‘take-off’ in 1946 (alongside the war recovery), and the long-cycle period officially ended in December 2006. Using this theory then, I forecast as early as 1999 yet that RP will experience another period of long-term growth beginning in 2007, and I hit the mark so precisely that I am sure the theory of cycles is as valid as ever. Discounting aside the possible effects of external shocks that we have no control over, our long-term expansion will be till 2036.
Which means that RP will reach ‘maturity’ very soon, around 2015, and then attain ‘over-developed’ or 1st world status by the period 2025-2030. No matter how slow the carabao (water buffalo) may work, it will still deliver results. And RP, which is justly signified by the carabao, had demonstrated this to the world.
Bro. Erle Frayne Argonza
[Writ 09 April 2008, Quezon City, MetroManila. The author was former Acting Deputy Provincial Manager, Ministry of Human Settlements, Batanes & Northern Cagayan, in 1982.]
A BrightWorld day to you all!
In the northernmost corridor of the Philippines is located the idyllic province of Batanes, a province with its own maritime ship. Small and sparsely populated, the province used to be perennially cut off from the rest of the ‘mainland’ (Luzon island) during inclement weather.
In the early 1980s, I had the privilege of serving this province as a development planner & manager for the Ministry of Human Settlements. My unit, the Provincial Action Center of PAC Gonzaga, covered Northern Cagayan and Batanes.
Handling the newly opened livelihood first, then later expanding to other developmental concerns, I immediately immersed in hard work for the province. At that time, there was no electricity, telephone, public transport, and those state of the arts utilities that one can have today. Contrast that with today’s Batanes, where internet facilities are available as far down as all of the rural villages, and essential utilities are present.
Integrated area development was then the in thing, and being from the urban/regional planning arm of government, we agency staff had the privilege of poking our fingers in all development efforts in a province and region. We consolidated the planning outputs into master plans which, for the first time, galvanized in all areas of the country. We state personnel did the same for this small province.
To recall, commerce between the ‘mainland’ and Batanes was quite scarce. Aside from the small ‘flying coffin’ PAL planes that traversed the Manila-Basco route, there was the Philippine Navy flat-bottom ships that were used for the purpose. Only two (2) scheduled trips of navy ships occur per year, once every semester, which brought forth rice, gin, and essential grocery items from Luzon.
Idyllic and paradise-like in its mien, Batanes is pathetic economically. To begin the development efforts there, core agencies got together to plan the installation of electricity, transport facilities and vehicles, warehouse and pier improvements, and development financing for micro family enterprises.
It was really tough and challenging a task to present ideas then to the natives, the Ivatans, who were real charmers but so simple and pretty satisfied in life. During those moments of duty, being a core institution-builder then of the development councils there, I presented the audacious idea of a maritime ship for the province. This will not only improve commerce between Batanes and its mother island Luzon, it will also be a booster to tourism and related development concerns there.
As to the question of who can own the ship, I remember having proposed the idea then of Batanes forming its own corporate unit. The said corporation can then own and manage maritime facilities and ships.
It was too said that I had to leave Batanes before I would ever see the crystallization of the idea. But I was happy to find out that the young development managers of the province, including some staff of mine who later became the dads of the province (today’s governor Castillejos was my part-time community organizer for Basco), developed the idea some more… Till the ship M/V Ivatan saw the light of day.
The locals decided to institute the Batanes Development Foundation that took care of ownership of the ship. It also engaged in other key programs to fast-track development there. I was so happy that my former staff (livelihood coordinator), Ed Puno, became its first CEO. (Mr. Puno later became vice-governor-elect.)
My fellows out there can go ahead and visit this paradise province of the North. The development story of this ‘cinderella’ province is a fairly successful story worth narrating.

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