The Bangko Sentral ng Pilipinas (BSP) has recently expressed interest in exploring a partnership with the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), particularly in creating linkages related to agriculture and rural development, as well as in promoting digital inclusion among Filipinos.

SEARCA’s office in Los Banos, Laguna. IMAGE CREDIT: Searca.org

Dr. V. Bruce Tolentino, BSP Monetary Board member, said during a visit to SEARCA earlier this month that SEARCA’s work with Southeast Asian countries is notable, especially in the Philippines, where sustainable agriculture is deemed to have a huge potential for economic growth.

“The Bangko Sentral ng Pilipinas is interested in exploring synergies with SEARCA, particularly on linkages (related to) agriculture and rural development, especially in the Philippines where sustainable agriculture has a huge potential for economic growth yet confronted with challenges,” he said in a statement.

During the same visit, Dr. Glenn B. Gregorio, SEARCA Director, provided a briefing to the BSP delegation composed of Dr. Tolentino, Dr. Chuchi Fonacier, and Dr. Lyn Javier, BSP Deputy Governor, and Assistant Governor, respectively, on the center’s activities and programs that focus on Accelerating Transformation Through Agricultural Innovation (ATTAIN) under its 11th Five-Year Plan (FYP).

The center is currently working on an agri-business model that would help elevate the quality of life of agricultural families and resilient livelihoods while providing access to modern networks and innovative markets. This, according to Gregorio, is actually one of SEARCA’s seven priority areas.

For the next five years, SEARCA commits to accelerating transformation that elevates the quality of life of agricultural families through sustainable livelihoods as well as access to modern networks and innovative markets.

“Our new development strategy was shaped by SEARCA’s desire to contribute to the transformation of farmers who are stuck in the belief that farming is limited to production, into new farmers operating in a modern agriculture ecology, that is Agriculture 4.0,” Dr. Gregorio said. “Transformation efforts will focus on policy, institutional, social, and technological innovations.”

For its part, the BSP presented the central bank’s Sustainable Finance Framework on Environmental, Social, and Governance (ESG) Integration in the Philippine Banking System. They explained that the sustainable finance program being rolled out by the BSP is comprised of a set of rules, regulations, and principles in the banking system.

The framework’s strategy, the BSP adds, aims to provide an enabling environment, align with national strategies and aspirations, and lead by example.

Digital economies as a food security enabler

Mr. Jerome C. Barradas, Project Coordinator II at SEARCA’s Research and Thought Leadership Department, who is set to lead the center’s round table discussion on digital economies in January 2023, also made a presentation explaining how digital technology can actually play a major role in ensuring food security in rural communities.

“Digital agriculture, whereby farmers would use mobile phones and other digital technologies to access customized, actionable agricultural information in real-time, could revolutionize how these communities secure and improve their livelihoods,” he said. He added that adequate and accessible financial services for farming families will also be an important entry point for enabling digital economies in the Philippines.

In light of Mr. Baradas’ presentation, Dr. Fonacier of the BSP stressed that policy recommendations from SEARCA will be considered critical inputs, particularly those related to incentives to be provided for BSP-supervised institutions that adhere to innovative and sustainable projects and activities.

“The reason why we highlighted the enabling environment in the framework is (because) we wanted to influence the behavior of our supervised institutions,” Dr. Fonacier said.

“We are now looking forward to SEARCA becoming a channel to connect BSP with other institutions, in particular, farming institutions,” she added.

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