The purpose of the intermediate step is to build momentum for development. One concept behind the strategy is 'Overkill'. We are using resources one or several level below their capability. It is difficult for Filipino scientists and engineers to innovate faster in cutting-edge categories because of the inherent advantage in resources of their counterparts in developed countries. But if they will divert their capability towards improving traditional industries, they could innovate faster.
Let's take for example the coconut industry shown below:
The coconut industry is a dominant sector of Philippine agriculture:* Of the 12 million hectare of farmlands, 3.1M hectare is devoted to coconut
* 68 out of 79 provinces are coconut areas
* Over 324M bearing and non-bearing trees
* 3.5M coconut farmers
* 25M Filipinos are directly or indirectly dependent on the industry
* Annual average of 5.97% contribution to GVA and 1.14% to GNP
* 59% share in world coconut exports
* Among the top 5 net foreign exchange earners, average of US $760M per year
However, coconut farmers live in poverty. They are still limited to 'copra production' from coconuts as taught by their fathers and grandfathers. A large portion of the coconut is also wasted because they only gather the meat even if almost all the portion of the coconut has an economic value. Numerous technologies could be use to improve the quality and quantity of coconut by-products that could double or even triple the value of coconut exports. But for this to happen, there must be:
1. Entrepreneurs who will recognize the economic potential of coconut by-products;
2. Scientists and engineers who will devote some of their time in developing coconut processing technologies ; and
3. Investors who will fund the R&D, production and marketing of coconut products.
These are the three components of the alternative catch-up strategy: the Technology Catch-up, the Economic Development Plan and the Alternative Financing Strategy.
One interesting problem of the industry is the transport of coconuts. Almost every component of the coconut fruit has an economic use. However, coconut farmers usually only gather the coconut meat. They remove it from the coconut shells and husk and sells it as 'copra', a valuable source of coconut oil. The reason for this is because they couldn't bring the whole coconuts down from the mountain. Mang Anton is a farmer in Agdangan, Quezon and he has to walk for two hours to reach his 10 hectare coconut farm in the mountain. If one coconut weights 2 kilogram, how could you expect Mang Anton to bring 100 coconuts down from his farm?
Of the 3.1 Million hectares of coconut lands, most of these are in the mountains. Few are accessible by concrete roads, more could only be reached by unpaved roads and a large percentage only through muddy and slippery mountain trails. There are two possible solutions: one is to develop a cost-effective way of bringing down whole coconuts or coconut processing equipments should be developed could be carried and used in the mountains. The coconut farmers could not develop these equipment themselves but i believe that Filipino engineers and scientists could develop innovative solutions to this problem. With this, it is possible we could double or even triple the export value of coconut products. Entrepreneurs who will be able to solve this problem will earn a lot and investors will find this as a good investment opportunity. With the right team of scientists and engineers and enough funding, it is possible to solve this problem in a few months.
This example for the coconut industry is just one of the opportunities we are unable to tap. Similar opportunities are available in all traditional industries left behind by lack new technology. Numerous opportunities abound. We just have ACT now!
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