Modernizing the agricultural sector - why cant we?

It is more fun criticizing

This post was amazed by a video on Saudi Arabia modernizing its agriculture.   Their agri contributes about $18.00 billion to their GDP.  Who woud think that this could happen to a country largely covered by desert?

May be Saudi leaders saw that they could not be too dependent on oil exports and coulld not  dependent on agri imports  

It employed several techniques much known to our leaders in achieving such self sufficiency and surplus

     1.   Water

           1.  Tapping aquifers

           2.  Desalination plants

     2.  Helping farmers

          1.  Interest free loans

          2   Technical assistance

    3.  Massive investments in agriculture and technologies    (about $20 billion)

Saudi Agriculture

Why cant we achieve the same level of sufficiency and modernization.  We have some of the best schools in agriculture:    UPLB and CLSU  (2/3 of CLSU faculty are doctorate)   Our Sec of Agriculture is no less than the President.   We have plenty of rains and water in the Philippines.   We do not need desalination plants like Saudi

Why are we having shortages in onions, garlic, and lately in eggs   and oh yes sugar and rice.  This is an embarrassment (All tallks lang during the campaign to modernize agriculture? More passion needed

I met Dr. Tito Cantado who owns a company that produces Noni Juice and he bewailed the state of agriculture world wide (as he served as consultant of FAO.   The focus on subsistence farming 

and traditional farming are roadblocks to agricultural productivity   Corporate farming, leases to agricultural lands under land reform (as what DOLEfil  is doing at Gensan

Let us wake up men.   

Saudi Arabia set to borrow $10 billion dollars

It is more fun criticizing

Philippines April 22, 2016

From CNBC

The Kingdom of Saudi Arabia is set to issue bonds (to borrow) in the international market its first in 25 years in the amount of $10 billion.   The offer was oversubscribed especially from Asian banks, despite the downgrading of KSA due to ballooning budget deficit and declining oil revenues.

KSA has burned through since 2014 a $150 billion cash reserves since 2014.  Oil prices has shrunk from a high of $100 to just over $30 lately.  Most Arab countries break even at $80.00 per barrel of oil.

Thus do we believe that all good things must come to an end? Once a high and mighty nation, forced to borrow money, hat in hand.   Tsk6  Dont be surprised if they fire millions of workers soon.

If there was no more oil, or less revenue from oil, KSA is just but a band of bedouins and goat and camel herders.  How pitiful.  In our country, we can grow our own food and dig our own water.  In KSA they could not even depend on their common wealth - oil.

Hundreds of Filipinos and as high as millions could lose jobs in KSA and elsewhere in the world

It is more fun criticizing

Rizal Philippines
February 5, 2016

                                        From Arabian business - up to 3 million expats could lose jobs at KSA due 
                                                                    to Saudinazation

The Iran KSA row over the beheading of a Shiite relgious leader (most of Iran leaders are Shiite, KSA are Sunnis) may break out into war.  The war could lead to loss of jobs.

From Manila Times - Iran Saudi row may displace millions of Filipino OFW

This is too sad as PHL is being kept afloat by OFW remittances.  All ready , CB discounted its projection of remittances by OFW.

The other reason is the low low oil prices. KSA and Russia makes money and can provide for its people's welfare at $80.00/barrel and up.   Oil is trading below $30.00 Russia is being hurt by this development, and is spending its cash reserves for paying its IOU.

From Business Mirror oil glut causes loss of jobs for OFW

Thus the oil majors closed their drilling operations because of oil prices that were at $26.10 last week.  Some 4,000 Filipinos working at oil rigs at Norway and North Sea did not get contract renewal.  The low prices and entry of Iran into a market that is a state of glut could not come at the worst moment.

However, many workers in ME are nurses, sales people and other professionals and may not be affected by this glut.  Middle East remittances account for 25% of the total  remittances and this was still OK as of December 2015

The bigger threat is the Saudinazation wherein KSA puts the limit of expats in their country to only20% of the total population to give job  opportunities to Arabs. The current number of expats stand at 8 million or 30% of the total Saudi population

Why are oil prices dropping like rock? Why will prices continue to plummet

It is more fun criticizing

Rizal Philippines
December 5, 2015

Oil prices in free fall after OPEC agree on production cut - Fortune

Why are activists not rising in arms vs govt. now that oil prices are dropping like rock.  Diesel price, the fuel for many is down to as low as P23.50 per liter. down from a high of P50+ about a year ago. Good for our economy - drivers, transpo, travel, and factories, power producers.

For unknown reason there are no protests from the activiists (the antis - Hegelian animals) vs the govt.  Well, the govt has nothing to do with price under the free market conditions.  If the govt had subsidy for the fuel and the prices dropped this low, the govt could have lost billions!  As if people do not understand the free market.. Now we are benefiting from the free world market bonanza.

Why are the prices falling down?  Because of low demand - Europe economy is not ticking as it should, the countries have developed their renewables, and US production from shale and fracking has gone up.

And lately, OPEC in its latest meeting failed to agree on cutting down their production  The head of OPEC  is not cutting down its daily production of 30 million barrels  a day  (Production must be cut down to raise prices)  But perhaps, KSA can not sustain its govt budget with $40.00 per barrel.  Note that Argentina, and Russia which are also starved for cash, are not part of OPEC. Thus with OPEC in disarray, prices are most likely to fall below $40.00 even further.  The move is to force US shale producers to lose money and cut back on their production

Saudization Law now in effect; thousands of Pinoys being repatriated;

It is more fun criticizing

Philippines, December 7, 2013

 
Bulk of workers at KSA are not Arabs but Filipinos 28%


From Rappler

From Inquirer - Saudization

All good things must come to an end.  Before OFWs thought that jobs in KSA will be forever.  But as they say in a song, "Nothing good gonna last forever"  And the jobs in KSA is expected to dry up, now that demand for oil is on the decline.  Signs that things are not so good in Saudi:   unemployment  is high (9%), Saudi is going solar to save on their oil production for export 

Thus the Saudization is expected.  Saudis  cannot depend on foreign labor forever.  KSA is for Arabs and expatriates will have their time end.  Saudization finally took effect November 3, 2013, after long period of extensions to give time for workers to regularize their documents.  The law mandates that KSA residents must now be employees of over 300,000 companies located in KSA, as KSA faces huge unemployment problem

The bigger problem is the illegals in KSA.  Those who abandoned the original labor contract in effect are illegals.  Filipinos who went there and found out that the job offers here in RP is different from the actual contract abroad, quit, and work for others.  They in effect violated, not the Arabs the labor and other agreements and must face imprisonment.   They could have resigned.  But they did not.  And so they face punishment from the host country

The Commission on Overseas Filipino Workers made an estimate of 1,27 million in KSA, with 108,000 considered as irregular or undocumented.  ASec Raul Hernandez of DFA, said that 4,302 Filipinos in Saudi have been repatriated;   and issued travel docs to 9,000 others.   Some l,500 have voluntarity signified their intention of going home and awaiting their travel documents

 

 

 

 

Major Shift in US Saudi Relations?

Social and political criticisms

 
 KSA intel chief Bandar Bin Sultan


Repost from Reuters | October 22, 2013

From Al Jazeera | October 23, 2013

There could be a major shift in the US Saudi relations, its lowest in years, KSA intelligence chief Bandar Bin Sultan,  on what the kingdom perceives as its inaction over the Syrian civil war and the Israel - Palestinian peace talks.  KSA rejected a two year seat at the UN Security Council lately.  The recent overtures to Iran was also displeased the Arabs.

In an unusual public attack, Prince Turki Al Faisal called Pres Obama's foreign policy in ME "lamentable"

The low point in US KSA relations started in 2001 9/11 attack in NYC, where most the terrorists involved were Arabs.

How would this affect the oil supply?

What happens next?  Would Pres. Obama change its current foreign policy towards Syria, Iran, and Israel?

                         
                    With whom will the Arabs will be friendly with next?  Pres Putin of USSR at right