The PDu30 economic team is using the wrong economics.
It assumed market is efficient as posit by comparative advantage theory.
In game theory economics, that maybe true if the market is collaborative, but it is not.
Rice market like in many of the limited food crops is a competitive game of not just zero sum but negatives (penalizing the unprepared).
The world market for food crops is inefficient and vicious.
This is where we all have gone wrong since the debacle of Sec. Yap in 2008-09 global food crisis which should have taught us valuable leasons and use different economic approach.
Food is a matter of national security. With the ill effects of climate change, the chance of food crop failures in many parts of the world will be more recurring.
China has been preparing for decades to irrigate its north from waters of the south to survive and drying up the Mekong and Salween rivers in the process.
Price spikes like what is happenning now in the world market will be more vicious in the years to come.
Relying on imports without strong and resilient local food production is very dangerous.
It is high time to protect and support our farmers, not injure and penalize them with false promises under RTL.
Thanks Sec. Manny for telling the truth. Somebody has to deliver the sad message.
As your name suggests, your role is very important.
More power to you
(Photo of rice prices in 2020 downloaded from the Philippine Star.)
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