8/7/2019 POL ECO CRITIQUE

1/3

College of Public Affairs, University of the Philippines Los Baos, SY 2006 2007

PAf 201 Political Economy of Public Affairs

Prof. Rolando Bello

Negatives Are Still Negative:

A Critical Analysis of Peter Wallace Journal Paper entitled

Mining: Its Not All Pluses, but they far outweigh the Negatives

Benevieve D. Villanueva

The earth does not give up its mineral riches easily. People must tear

them from the earth with picks and shovels, drills and explosives. But the

work is well worth the trouble.

The statement actually summarizes in its simplest term what Peter Wallaces paper is

trying to assert about the potential of mining in the economic development of the Philippines

particularly on the local level.

So far, the Philippines is ranked among the top five leaders in the mining sector in

the world. Yet, for the fiscal year 2004, mining contributed only 4.3% of the countries GNP.

The factors of course were well discussed by Wallace, two of which are the controversies

associated with mining by the lobby groups and government failures.

There is no question about the benefits that mining can provide. As Wallace puts it,

Mining can bring tremendous benefit to the Philippinesin terms of increased

employment, foreign exchange earnings and tax revenues. In fact, I would agree that if the

government develop mechanisms for the enhancement of positive externalities, and that the

mining company engage in a better relationship with local communities in order to make

them fully aware of the benefits that mining could bring to the locality, the outcome of the

negotiation would be fairer, benefiting the company, the community and the State.

However, NEGATIVES ARE STILL NEGATIVE. Mining by its very

nature is destructive; extraction causes destruction1. Although there are engineering

8/7/2019 POL ECO CRITIQUE

2/3

solutions to keep the destruction to a minimum, a policy on clean up in case of spill,

reforestation, recontouring, drainage, tailings disposal, and detoxification solutions as

provided in the Mining Act, the question lies on the ability of the Philippine government

for strict compliance and implementation.

Taking Bicol Region for instance where the Lafayette Mining activities in Rapu

Rapu had taken place, Mining is not new to the people of Rapu Rapu. It has been part of

Bicol activity for more than a century but the industry remains backward and has hardly

uplifted the lives of the local population. Based on 2004 study conducted by the Institute

for Environmental Conservation and Research in Ateneo de Naga University, gold mining

in Bicol did not alleviate poverty but actually worsened the poverty of local communities .

This claim is evident in the gold mining communities in Luklukan Sur, Jose Panganiban,

Camarines Norte and Sta. Barbara, Rapu Rapu island in Albay.

Wallace sentiments over Lafayettes Mining in Rapu Rapu may have substantial

basis. The company was fined 10.7 million without proper hearing and its closure costs the

company million dollar investment. Adding to the fact that Lafayettes responsible reaction

to the spill accident has mitigated the damage locally. Yet, one need not forget, that the

peoples reaction towards the incident has a considerable foundation.

It was only a decade ago, March 24, 1996 to be exact, when Marcopper Mining in

Marinduque caused 3 4 million of tons of toxic mine tailing to spill down the Boac River.

Experts then declared the river BIOLOGICALLY DEAD. The closure of mining had caused

little alternative industry for the people particularly as the fishing industry has been

devastated by severe environmental degradation. And although, communities directly

affected by the spill were compensated, other communities such as along MOGPOG and

8/7/2019 POL ECO CRITIQUE

3/3

CALANCAN Bay who also suffered from tailings spill and continual contamination were

not.

Wallace implied that Mining succeeds best in those countries that are democratic,

have pronounced pro poor policy that they genuinely want to achieve and where there is

good governance and transparency in dealings with that government. This indeed true, and

poses challenge to the present administration which as observed by Wallace is pro mining.

However, just a side comment about it, knowing about the current scenario where in Wallace

probably is aware, in this statement, wasnt he trying to put the promise of economic

prosperity of mining into the world of oblivion and impossibility? This would always turn

into the discussion of government failures.

End Notes

1Romualdez, Benjamin G.,Showcasing Responsible Mining in the Philippines.AMCHAM JOURNAL,

April 2006

2.Cabarrus, Jose Miguel, Whatever is not grown is mined. AMCHAM JOURNAL, April 2006 10 25

Bibliography

Padojinog, Winston Conrad. The Mining Industry: A Case for Developing a Framework for Pre Exploration

and Post Mine Development in the Philippines. Manila, Philippines, March 2006

Roque, Romero. Fostering the Positive Externalities of Mining Policy Options, March 2004