Philippines losing billions yearly from pollution

Air pollution costs the Philippines billions of dollars a year and kills thousands of people annually, according to the World Bank report released Monday. The World Bank, in its report “The Philippines: Country Environmental Analysis,” said that outdoor air pollution has cost the Philippines more than 1 percent of gross national product (GNP).

GNP, a key economic indicator, refers to the total value of all goods and services produced by Filipinos—at home and overseas—in a year.

The report added that the cost of disease linked to outdoor air pollution exceeded $20 million a year.

“We estimate that more than one million people get sick every year due to outdoor air pollution in urban areas. About 15,000 people die prematurely due to OAP [outdoor air pollution],” World Bank reported.

Indoor air pollution

For indoor air pollution, the bank estimated an economic cost of illness in terms of income losses and healthcare costs amounting to more than $30 million per year.

“We estimate that premature deaths from IAP [indoor air pollution] cost about $100 million,” the World Bank said.

The bank added that about 50 percent of Filipinos use fuel wood or charcoal for cooking.

“Indoor air pollution is conclusively linked to several types of respiratory disease and premature death. Our estimates show that almost half a million annual cases of illness are caused by IAP, which is also linked to almost 6,000 deaths per year,” it added.

Water pollution

The bank also estimated an annual cost of water pollution, sanitation and hygiene-related morbidity and direct and indirect mortality of about $1.4 billion to 2.8 billion; over extraction of forestry products and conversion to other uses which lead to losses of nontimber forest products, $60 million a year and land degradation, $150 million a year.

“The sad state of the environment is attributed to over exploitation of natural resources, conversion of natural ecosystems to other uses, development of urban and industrial infrastructure, and pollution and sedimentation from urban and industrial centers and agricultural expansion,” the bank said.

Population and resources

The World Bank also blamed the rapid population growth, urbanization, and industrialization that have taken place in the last several decades have led to deteriorating environmental quality, especially in urban areas.

The bank said that the Philippines has more than enough laws, but the government has failed to address environmental degradation.

The report cited some reasons such as the lack of explicit environmental objectives and programs; inadequate leadership and weak enforcement of policies and laws; inadequate financial and human capital, unclear distinction between responsibilities; conflicts of interest among environment natural resources agencies and local governments; the absence of land use planning and zoning and unclear property rights; and the lack of routine environmental monitoring and poor use and dissemination of environmental information.

The World Bank also noted the small budget of the Department of Environment and Natural Resources (DENR) for maintenance and other operating expenses.

The bank added that of the total budget of department, 62 percent was allotted for personal services and 27 percent, programmable and developmental budget consisting of the maintenance and other operating expenses.

Asia leads recovery

Meanwhile, from Bangkok, Agence France-Presse, citing a UN survey, reported that Asia and the Pacific was leading the global economic recovery after the financial crisis, but major uncertainties remain about the extent and durability of the resurgence.

The report forecast robust growth of 6.3 percent in 2010 across the region, which contains around half the world’s population, but said its countries still depended on recovery in US and European markets to boost vital exports.

Governments must increase regional cooperation to protect against future crises and not withdraw stimulus packages prematurely, said the yearend update on the UN Economic and Social Survey of Asia and the Pacific 2009.

Fears sparked by Dubai’s debt problems—which emerged after the report was written-highlighted the need for caution, the report’s authors said.

“It’s a timely reminder of the need for tempering excessive optimism,” Tiziana Bonapace, chief of the UN body’s macroeconomic policy and analysis section, told reporters.

Kumar said Asia-Pacific economies needed new engines for promoting and sustaining domestic growth to better weather shocks from outside the region.

It was important to boost domestic consumption, while governments should also “broaden and deepen” regional economic and political cooperation agreements that allow them to cooperate, Kumar added.

Among major economies in the region, China is forecast to experience the fastest growth in 2010 at 9 percent, while India and Indonesia are expected to grow 7.5 percent and 5 percent, respectively, the report said.

Growth was also expected in export-led economies, although not to levels before the crisis, with Singapore, the Philippines and Taiwan each set to grow 3.5 percent, Thailand by 3 percent and Malaysia by 2.5 percent, it said. –DARWIN G. AMOJELAR SENIOR REPORTER, Manila Times WITH REPORT FROM AFP