The Russia-Ukraine conflict has amplified the need to secure national food supply and keep a healthy oil inventory. A well-fed nation and ample oil inventory will assure the wheels of the economy are moving.
There is nothing much the Philippines can do about soaring oil prices in the world market. Prices will keep increasing because of the uncertainty of the war that disrupts the crude supply chain.
The same is true with commodities like wheat and corn. With Russia and Ukraine as major wheat and corn suppliers, prices have gone up steeply in the world market. The Philippines will eventually feel the impact of rising feed wheat and corn prices—local hog raisers rely heavily on wheat and corn feeds for their production.
Skyrocketing oil prices and more expensive pork will certainly exert pressure on the inflation rate and reduce the purchasing power of consumers. The twin negative effects of the war on the Philippine economy may be temporary, depending on how soon the Russia-Ukraine war ends. But the Philippines should learn its lessons from this geopolitical conflict.
Minimizing the economic fallout from the European conflict is the challenge faced by the Philippines. President Duterte the other day agreed with the recommendation of the economic team to, among other things, strengthen the economy and stabilize prices by boosting local production to ensure food stability in the Philippines. Increased food production and less reliance on imports are the ideal situation and they can certainly be done.
Weaning away the Philippines from oil imports is the bigger challenge. The Philippines should now intensify its shift to electric-powered vehicles to reduce its dependence on fossil fuels. Public and private vehicles and mass transportation such as buses and rail should run on electricity fed by batteries, solar and wind farms, geothermal energy, hydro and other renewable sources.s
Attaining energy and food security for a country like the Philippines is a big leap forward. It will shield the nation from the vagaries of the world oil and commodities market—and wars that fracture the supply link.
