GLOBDEV #3: The Ultimate Question: "At What Cost?"

When precious gold is underground, do you instantly dig for it even when the land you're going to destroy is the only rain forest left?

In one of our classes. my microeconomics professor, Dr. Joel Tanchuco, told us that one of the most important question businessmen constantly ignore is this: "At what cost?" He gave the following example: If the prices for palm oil used in producing bio-diesel increased, would you immediately turn an entire rain forest into a palm farm? No. Stop first and ask yourself this question, "At what cost will we earn profit?"

Photo source:

http://www.peopleandplanet.net/?lid=28483&topic=23&section=37

Last March 2, 2012, I attended a two-day Young Economists' Convention held in the Angelo King Institute Bldg. and in De La Salle's Teresa Yuchengco Auditorium. I was fortunate to have witnessed in the first day of the convention the lecture of Ms. Regina Lopez, managing director of ABS-CBN. She discussed her advocacies and the concrete projects she has done or was involved with to preserve what’s left of our natural resources. One of her major and ongoing project is“No to Mining in Palawan”.

The day after the lecture, I read in a news article that Ms. Lopez attended a forum on the same day she lectured in our convention. She was one of the most active speakers from the environmentalists' side, constantly delivering arguments against business tycoons, like Mr. Manny Pangilinan, Philex Mining chairman.

In the forum, Mr. Pangilinan argued that mining is not bad if done responsibly. He even claims that it will pull us out of poverty. His most convincing argument, for me, is that we can't live without mining.The cell phones we use, the laptop I used to write this blog, the cable wires used to make distant communication possible, and even the microwave ovens the canteen people used to reheat our food contain metals.

One does not need a degree in Economics to know that supply of a particular good is affected by the demand for it. Mining industry has grown in terms of the number of firms, big and small, legal or illegal, because our demand for technology is continually increasing at a rapid rate. All these happen, thanks to globalization and consumerism.

Globalization made it possible for Philippine industries to cater not only to local demands but also to demands from other countries. This is why our our exports of mines and metals increased through the years. Foreign investment in our mining industry also increased due to globalization.

Consumerism also affected the demand for metals. Businessmen knew that while the rich continue to patronize highly expensive phones, they should look for a bigger market. And so, they targeted the middle class. Now, even people earning less than 12,000 pesos a month can afford to have two phones. This is also true for other gadgets that contain metals. We have been led to believe that everyone should own a set of gadgets. We used to live without cell phones. We used to be fine with just one personal computer per family. Now each family member has to have his or her own laptop. We used to have a family car. Now, everyone has his own car. We no longer settle for less than a flat screen LCD TV even if our old television set still works perfectly. Condotels around De La Salle University sprout like mushrooms all over Taft, Manila even when there's already enough of them; but of course, students wouldn't want to stay in the old ones.

Demand for metals would not diminish considering the consumption behavior of people today. So should we grab this opportunity that might help bring more income to our country? I don't think so. I believe our laws and implementers lack the capability to protect our environment and the state from the damage it would bring. I think we should strengthen the rules that guide mining in the Philippines.

There may be a hundred reasons why mining should be regulated. I chose to list a few important ones. 1) In our country, most of the places where mining operations are held do not benefit from the profit of the mining firms. My father told me that the this happens because most firms file for their taxes in their main offices which are usually located in the cities. That is why the GDP of the places mined do not increase from the mining industry. 2) Another point is that usually, mining sites are left by the firm after operation without allotting a portion of their profits to rehabilitate the place.This should be made as a requirement for mining companies. 3) Also, mining firms only provide temporary employment to locals and leave them without livelihood after.

4) Mining also affects other industries like agriculture. The chemicals used to extract some mines damage the land of mining and sometimes flow down to agricultural lands, damaging crops. 5) Another factor is that mining companies get away with their violations to the environment and to people and accidents by paying the government officials who should have been the ones to look after these things.

I also don't think that the the government effectively examines the places before allowing mining companies to operate there. All of the possible damage to the environment and to the livelihood of locals should be weighed before permitting them to go on business.

Let's not stop asking the ultimate question, "At what cost?" Whenever we buy food, we first look at the price and the satisfaction we will get from it. Then we weigh the pros and cons. Let's do the same in bigger things that affect many in real life. Is mining worth damaging our environment for? (if there really is something that's worth harming nature for)

We may not stop consuming products but we can reduce consumption. We may not be able to stop mining everywhere but we can fight every opportunity we get. Sign http://no2mininginpalawan.com/ for a start.

Reference:

Dumlao, D. C., & Alave, K. L. (2012, March 3). Manny Pangilinan: Mining is not the enemy, poverty is. Retrieved March 3, 2012, from Inquirer News: 2012