Introduction
policy director
embodied in Republic Act No. 8479, otherwise known as "liberalization of the oil industry law manufacturing in 1998, "is a state that deregulates the oil industry to" promote truly competitive market that can bring the best social policy of the prices of the objectives of fair and adequate, continuous supply of environmentally products Switch CLEAN and high-quality oil policy "(Conference 1998).
with the lifting of the restrictions, the government will allow competition in the market. This means the government does not intervene in the pricing and export and import of petroleum products, and even the establishment of retail outlets, warehouses and storage facilities receiving the ocean, and refineries.
It has been a decade since the House proposal would ensure that the liberation of the Philippines from the weakness of the oil price shocks due to heavily dependent on imported oil. But it is now increasingly clear that many claim to cancel six out of ten Filipinos prefer to cancel the RA 8479 Act (Sumusara 08).
policy as a process
when President Fidel Ramos began his administration in 1992, said his country has already begun to suffer from the effects of a lack of power supply, with the main areas already suffering from power outages. The power crisis caused a slowdown in the national economy for nearly three years and urged the government to embark on major reforms for the rehabilitation of the energy sector (Viray 1998, p.461-0). In response to the crisis of power supply, and the revival of Ramos plans to liberalize the oil industry, which cut short under the Aquino administration because of the Gulf crisis.
government's efforts in activating also intensify in 1995 to cancel the oil law restrictions when he started a fund to stabilize oil prices (OPSF) threaten the financial stability of the economy. Thus seen deregulation as a solution to the recurring deficit.
OPSF deficit problem was in the section on political nature largely to oil prices, which has encouraged the government to postpone the price increases as much as possible to avoid public protests even incur a financial account deficit. However, government mismanagement of the Fund and included also be used for purposes other than oil, such as funding for other government projects or public sector deficit when he was in surplus (Pilapil 1996, P.12).
At the peak of the strong lobbying efforts to lift the restrictions by the oil companies and despite the noisy opposition from armed groups, it has freed the industry will end up in 1996 with the enactment of RA 8180 Act (downstream lift the oil industry restrictions Act of 1996 ) in Congress.
However, the Supreme Court declared in 1997 declared unconstitutional RA Resolution 8180. Court stems from the three provisions in the law that were considered to prevent free competition and, therefore, violated the state anti-monopoly of the 1987 Constitution (Supreme Court 1997). But Congress administration quickly re-filed the project raise oil Limitations Act which led to the new law, raising the oil restrictions. RA 8479 and then enacted to pave the way for lifting the full restrictions of the oil industry. Since then, the government no longer controls the industry. What can be done is to monitor only.
Applicable models
policy, which describes the political process model is the vig and Kraft Form 1984 where the stages of a policy of / phases of five elements: 1) setting the agenda 0.2) policy formulation 0.3) adopt a policy 0.4) policy implementation, and 5) monitoring policies.
On the other hand, the model that best describes the optical mixed policy approach because the Ramos administration resorted to rational planning and process incrementalized to edit Aquino government's plan.
second. This policy in the context of system approach
environmental policy
policies that have been identified include the properties of Ramos management system environment, economic and social structure in 190, the international financial and influence the prevailing politics of the country's economy.
and stakeholders policy
also identified the stakeholders in this policy is the Filipino people, the president, lawmakers and the Supreme Court, the Ministry of Energy, Ministry of Justice, Ministry of Commerce and Industry, NEDA, and oil companies, non-governmental groups / advocacy and media.
interrelationships between the environment, policies and stakeholders
Despite coming strong opposition directly from ordinary people, and groups of transport, non-governmental organizations, still pushed up oil restrictions policy across. It has developed it and put under President Ramos, who, in the main program has a system called the Philippines in 00, conceived to make the country globally competitive through follow trends deregulation, market liberalization, and privatization. And then exposed to the media the fact that the biggest factors that influenced the formulation of policy was seen to bankruptcy eventually stabilize oil prices Fund, established originally by President Ferdinand Marcos for the purpose of minimizing the frequent price changes resulting from exchange adjustments and / or an increase in the global market for crude oil and petroleum products imported prices.
, the influence of the International Monetary Fund, the Ramos administration argued that there is a need to edit the industry because under a regulated environment, prices are not allowed to rise and fall with market levels . This means that when the price rose, the government was to shell out money to support the difference between the old and the new price.
According to the National Economic Development Authority (NEDA), the government chose not to edit, OPSF commitment has ballooned to at least P8.3 billion in 1998 and P8.3 billion to build the equivalent of more than 4,500 kilometers of roads local, 51,000 deep wells of drinking water 0.25000 school houses, or rice for free for 20% of the poorest Filipinos (Bernales 1998)
Supreme Court ruled in 1998 in favor of the constitutionality of lifting the oil industry restrictions manufacturing Law in 1998. since then, it has been the policy of the subsequent liberalization of the industry departments. The Ministry of Energy, Ministry of Commerce and Industry, DENR, Douste agencies are assigned to serve as the monitoring arm of the government.
is a group on policy?
The answer is obviously "no." IBON Foundation said that the lifting of the oil restrictions and further strengthen the monopoly of the big oil companies law also allows for automatic rising oil prices. As a result, other oil companies have taken advantage of this policy, hiking gasoline prices of all petroleum products by about 535% since the introduction of the oil lifting restrictions for the first time the law in April 1996 (Bicol day 07). The policy is also not able to solve or at least mitigate the effects of the global oil crisis.
III. Thinking Out Loud
a repetition of the process
problem definition A.1 / restructuring
has been recognized that the problem with oil is not over yet as a policy to lift restrictions failed to achieve its goal to promote market really competitive, and affordable oil. The current president admits herself, Gloria Arroyo, and the fact that the oil crisis threatens to erode the very fiber of Philippine society.
Contrary to what happened in 1998, it seems that the current crisis to be more irreparable such as the United States faces what many economists described as the worst economic crisis in its history, triggering a jump can not be stopped from oil prices and food prices all over the world . As already mentioned, the oil crisis is a global problem and needs to be not only at the national level oriented, but at the international level as well.
But why is the oil crisis of global crisis? Is it really beyond the control of the government?
Philippines, like many other countries, buys oil in the spot market. By "spot" is meant, that one buys oil on the market by only 24 to 48 hours one takes physical (spot) delivery, instead of buying it 12 months or more in advance. In fact, the inclusion of the spot market broker in the course of the oil patch income.
today, it is largely set oil prices in the second Futures Markets: International Exchange and the London-based Petroleum (IPE) and the New York Mercantile Exchange (NYMEX). Here, traders or investors to buy or sell certain commodities such as oil at a certain date in the future at a specified price. Basically, traders invest in the futures market by buying futures contracts called "paper oil" or simply a paper claim against oil. The real purpose of the purchase of oil is not to wait for the actual physical delivery of oil in the future, but to sell the oil card to another dealer at a higher price. This is how investors involved in speculation on a large scale. It became viscous cycle. Almost all countries, including the Philippines, to buy oil on the spot market, where the price is already at its peak.
In 00, a study, a review of intelligence Executive (EIR) that for every 570 "barrels of oil card" -mn is the futures contracts that cover 570 traded every year a barrel, there was only the underlying physical barrel one of oil. Oil paper 570 to withdraw the price of a barrel of oil behind, and the manipulation of the price of oil. If speculators are betting a long time ago that the price will rise-Mount bets pulls up the basic price (Valdes 05).
This refutes the common assumption that only high oil prices has something to do with "the law of supply and demand." In fact, up to 60% of today's price of crude oil is pure speculation driven by large trader banks and hedge funds. It has to do with the convenient myths of peak oil nothing. It has to do with control of oil and its price (Engdahl, 08).
, cited IBON Foundation in the last statement, a study conducted by the US Senate Permanent Subcommittee of Investigations, which revealed that 30 percent or more of the prevailing cost of crude oil is driven only by speculation. IBON also cited speculation that adds about $ 35 for a barrel of crude oil (Martinez, 08).
A.2 alternative development
in the face of high oil prices is alarming that threatens the survival of the ordinary Filipino people, and a number of stakeholders calling for alternative solutions: 1) modifying the oil reorganization and 2 Act) scrap / repeal the law, 3) removing the 12% value-added tax on oil, and 4) the search for alternative sources of energy, and 5) to participate in the oil deal from country to country.
A.3 Analysis of Options
1. Amendment deregulation law
and the crowd continued to hurt from the high oil prices, many policymakers calls to reconsider the lifting of restrictions downstream Law in 1998. oil industry and one of them, is Ilocos sur Rep. Eric Singson, who has sought many of the amendments in the Act to ensure transparency in the pricing of petroleum products and to encourage more competition in the retail sector, which has been under the influence of the giant oil companies. He pointed out the need to amend articles 14 and 15 of RA 8479 to strengthen the powers of the Department of Energy (DOE) so it can effectively carry out its mandate to inform and protect the public from illegal practices in the oil industry more financial assistance for the establishment and operation of petrol stations and the provision, which encourages on investment and fair competition (Malacanang 05).
2. scrap / Uninstall raise oil Limitations Act
For many, the amendment of the law is not enough to correct the enormous rise in oil prices and products that rely on oil. Request the cancellation, instead. Lawmaker from the House of Representatives, Cagayan de Oro City Rep. Rufus Rodriguez introduced House Bill 4262, which aims at the abolition of Republic Act No. 8479, arguing that instead of strengthening the competitive market, and the law only strengthened the oil cartel in the country and bring oil prices to rise. The bill also seeks to re-establish a fund to stabilize the oil prices. Has pointed out that the oil companies are still prevailing dictate price because players until the new oil industry to get their supplies from the Giants (Cesante 08).
marches and strikes by armed groups and other non-governmental organizations had organized across the country in opposition to the policy of deregulation. Kilusang May Uno (KMU), one of the disputed prominent in the country, labor groups, cartels that still exists in light of the lifting of restrictions. In its recent statement, KMU articulated that with oil prices pegged to Dubai recently at $ 97 per barrel (as of September 3RD week), the domestic price of diesel at P49 / liter. While when Dubai crude was at $ 97 / liter in the November 6, 07, the sale of diesel in the Philippines only in less P37.95 / liter, or P11.05 / liter from the current rates (GMANews.TV 08).
3. Remove the 12% value-added tax on oil
said Sen. March Roxas that the government must heed calls for the removal of VAT 12% (VAT) on petroleum products and oil with continued price to rise despite the drop in oil prices in the global market. May Roxas Senate introduced Bill No. 1962. However, in her eighth State of the title of the nation (SUNA), President Arroyo, said it would be the poor who will suffer the most from the removal of VAT on oil and electricity as this it will mean losing P80 billion in programs funded by the tax reform her (Arroyo, 08).
4. alternative sources of energy.
While many have engaged themselves in a running debate for a long time about modifying compared to repeal the law, and a number of stakeholders say that the Philippine government should, instead, focus on alternative sources of energy to correct the heavy reliance on imported oil. The hyped Senator Juan Miguel Zubiri, who is now considered the "father of the Philippine Bill of biofuels," Biofuels miracle product that can lower oil prices. But more and more scientists are concerned that the focus on biofuels could threaten food production.
Philippine LaRouche Society, a research organization emerging increasingly in the country, says that biofuel call is a lost cause as they compete with food production for human consumption. The organization calls, instead, for the revival of the Bataan Nuclear Power Plant (BNPP) as soon as possible to provide the population of cheap, reliable, continuous power later on people from dependence on oil. Organize further explains that since that would require a huge financial requirements, the Philippine government and therefore must declare a moratorium on foreign debt payments because many of them are cumbersome and simply the product of "bankers Account" (Billington 05).
5. The oil agreement country to country
Philippine LaRouche Society has long been a proposal to the government to take immediate steps to conclude bilateral contracts agreements with oil-producing countries no less than the government 12 months from the scheduled delivery of affordable, fixed. The government can also conclude a commodity swap agreements with oil-producing countries.
as a member of the United Nations and other intergovernmental associations such as APEC and the World Trade Organization and the Philippine government to join the growing call for worldwide oil trade fair and impartial oil delisting traded in the futures market contracts as a commodity.
A.4 take the best decision and the most feasible option
and must be known to all the Filipino people that the liberation of oil, politics, and failed to promote a competitive market really about fair prices and adequate, continuous petroleum products supply quality of the environment clean and high. The proposed solution # 2 (scrap / Uninstall raise oil Limitations Act) and therefore is the best option. But the abolition of the law of liberation from the constraints are not the answer in the end to rising oil prices. Even if the abolition of the law, the Philippines will continue to be exposed to the same factors for the rise in oil prices in the global market.
proposed solution # 5 (country agreement to the oil country) could address the issue of the oil crisis at the international level. What about efforts to resolve the crisis at the national level?
The Philippine government must revive the Bataan nuclear power plant to supply the population of cheap, reliable, continuous power later people from dependence on oil. He also suggested the government should be direct enough funds, rather than debt service, about the revival and modernization of BNPP. Remove the entire value-added tax E, and not just on oil, must also be taken into account to alleviate the pain of the Filipino people. Before the ban, the government has not to extract a pound of flesh from every Filipino be a way to finance their programs.
Why B apparently is not built Options "best"? The peculiarities of the Philippine System Policy
from the standpoint of the current administration, and amending RA 8479 seems to be difficult to adopt for the reorganization of the oil industry will mean support for oil prices, what it's like OPSF. For many, this does not work in an era of high oil prices because of the inherent government resources. This is where the debt moratorium in effective financial strategy comes. But stop, a lot of skeptics, it is unwise because they are afraid of retaliation or extortion of multinational creditors. Our leaders must learn how to then challenged President Nestor Kirchner of Argentina predatory financial institutions, the lack of confirmation that "there is life after the International Monetary Fund."
On the other hand, many leaders see country agreement to impossible oil state to implement such oil giants have an impact remains strong on the policy-making process in the country. Of the oil companies, it will be a big loss if the government will assert its power to find a bilateral agreement with any of the country's oil-producing. Also, many of the leaders of the Philippines as a small country have no voice in the international assembly. But it is a matter of having a "big balls", to put it in figurative language. After all, they are the leaders and commissioned by the Constitution to protect and promote the general welfare.
Another advantage of the system is the policy of the Philippines negative attitudes towards nuclear power. BNPP has been stigmatized as an environmental threat and as being associated with "corruption." The fact of the matter is, the technology has already been developed and updated. The Philippine government has spent $ 2.3 billion to build the BNPP without generating kilowatts of electricity. The time has come to rethink the old strategy in the end to liberate the country from dependence on imported oil.
It is worth mentioning that the International Atomic Energy Agency to inspect the power plant in Bataan early this year, and said that this could be rehabilitated, in full compliance with high international standards of environmental safety, in at least five years in the cost of 800 million $ (Burgonio 08). The Philippine LaRouche Society emphasizes the importance of the Declaration postpone repayment of debt and financial strategy to start rehabilitation. The organization says that the Philippines debt service of more than $ 10 billion annually, which is more than enough to start full operation of the BNPP (PLS 08).
fourth. Integration and recommendations: better public system policy
recognizing that the oil crisis is a global oil crisis, which affects the lives of all inhabitants of our planet, we must, therefore, the leadership in the Philippines to immediately take the following steps: 1945002 ]
a) to the immediate abolition of the law raise oil restrictions on the government to assert its sovereign authority in control of the oil industry and the economy as a whole.
b) proposal of any summit or the International Association of Oil, being a commodity, are critical to the continuation of human life, to write-off the inclusion traded in the futures market as a commodity, and thus escape from the clutches of unscrupulous people and financial institutions speculation.
C) to start immediate steps to conclude a bilateral contract agreements with oil-producing countries of the government's delivery schedule of not less than 12 months, affordable, fixed.
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