Integrating Environmental Considerations into the Economic Decision-Making Process
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INTRODUCTION

In recent years, the economy of the Philippines has achieved considerable economic and social progress. The adoption of market-based policies and the increased participation of the private sector in the development process as espoused in the Medium-Term Philippines Development Plan has significantly contributed to that progress. However, while significant economic and social gains have been achieved, activities aimed at producing those gains have also resulted in the degradation and depletion of the environment and natural resources in many parts of the country, attributable mainly to: (a) the increasing population vis-à-vis the carrying capacity of the national resource base; and (b) policy biases which encourage resource exploitation instead of conservation, resulting in the abuse and misuse of resources. Consequently, according to the National Economic and Development Authority (NEDA), a number of environmental problems have plagued the country in recent years including forest resources depletion, coastal and marine resources degradation, loss of biodiversity and habitat destruction, soil erosion, land-use conversion, water and air pollution, waste disposal, urban congestion and water scarcity.

The Philippine Agenda 21 amplifies those issues in the statement: "....While there is an acceleration in economic growth, there is evidence that environmental quality is fast deteriorating, as dramatized by the increased incidence of environmental disasters such as problems associated with mine tailings, deforestation, pollution, salt-water intrusion and a host of other destructive activities. The regenerative capacities of already fragmented areas in various bio-geographic zones are similarly threatened." (Philippine Council for Sustainable Development, 1997b)

The increase in environmental problems led to the recognition that economic growth should be pursued hand in hand with environmental conservation and protection. That view is clearly spelled out in the Philippine Agenda 21 for sustainable development as embodied in the Philippine Strategy for Sustainable Development (PSSD) which was initiated by the Department of Environment and Natural Resources in 1987 and approved for adoption in 1989. PSSD is the first official document to recognize the various dimensions of sustainable development. It also recognizes the need to integrate environmental considerations into economic decision-making. In doing so, "...PSSD attempts to reconcile the diverse and sometimes conflicting environmental, demographic, economic and natural resource use issues arising from the country's development efforts." PSSD contains the following elements: (a) the integration of environmental considerations in decision-making; (b) proper pricing of natural resources; (c) property rights reform; (d) the establishment of an integrated protected areas system; (e) the rehabilitation of degraded ecosystems; (f) the strengthening of residuals management in industry; (g) the integration of population concerns and social welfare in development; (h) inducing growth in rural areas; (i) the promotion of environmental education; and (j) the strengthening of participation of the population and constituency building. The document provided the basis for the position of the Philippines at the United Nations Conference on Environment and Development (UNCED) in June 1992, the Earth Summit, which resulted in the formulation of the global Agenda 21.

The integration of environmental considerations in decision-making has been identified as one of the general PSSD strategies. Various efforts have been pursued towards its achievement, including the creation in September 1992 of the Philippine Council for Sustainable Development (PCSD) which is responsible for, among other things, periodically monitoring and assessing the progress of the commitments made by the Philippines at UNCED as well as ensuring that the espoused sustainable agenda is mainstreamed in the national development effort. PCSD, which comprises representatives from both the private sector and the government, provides a venue for discussion and the formulation of appropriate recommendations on policy matters relevant to the promotion and implementation of the sustainable development agenda.

Apart from PCSD, a number of mechanisms have been established and existing ones strengthened to ensure that environmental considerations are properly integrated into policy decision-making, such as: (a) the strengthening of the Environmental Impact Assessment (EIA) system; (b) the establishment of a regulatory framework for the prospecting of biological and genetic resources; and (c) the adoption of the community-based forest management approach as the national strategy to ensure the sustainable development of forest land resources. Those mechanisms are discussed in detail in the following sections.

This paper discusses the current mechanisms, analytical tools and methodologies, and institutional structures that facilitate and allow effective integration of environment. The problems and bottlenecks within the existing structures are then discussed and analysed. Likewise, the commitments by the Philippines to environmentally related international agreements into domestic policy formulation are given in the final chapter.

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