‘Competing' in Open Markets? The Role of Government Policies in the Development of the Philippine Hog and Chicken Industries

The study focuses on how the Philippine government’s agricultural policies and programs have shaped the competitiveness of the hog and chicken industries in the context of liberalizing trade. The study argues that due to the intense competition domestically and internationally, the local hog and chicken industries adopt different strategies in order to cope with increasing competition and decreasing competitiveness. The nature of politics and political dynamics of policymaking resulted to domination of certain groups of stakeholders in the market (business) environment that influenced the government’s decisions and policies. The Agricultural Competitiveness Enhancement Fund (ACEF) program illustrates an example of a government’s policy to minimize the negative effects of trade liberalization, particularly, on the small and medium-sized enterprises in the two sectors. The study found that the government’s goal of improving the competitiveness of the hog and chicken industries is mainly influenced by large agribusiness. The effect of ACEF was relatively limited as most of the projects were allocated to the biggest medium-sized players. Relevance to Development Studies Development objectives of countries, including the Philippines, are geared toward export-focused and market-driven growth strategies in a more liberalized trade environment. However, the different policies and program interventions provided by governments to ensure increased productivity and competitiveness in a certain sector have mixed results. It is imperative to ensure that the greatest number of people benefit from the fruits of economic development. While assistance to small producers and micro-enterprises remains a priority to reduce poverty and increase incomes, agribusiness development in developing countries play a major role in attaining development.