Friday, December 21, 2007 Ledesma: Cashing-in on crises By Jun Ledesma Sunbursts
A NUMBER of billionaires the world over made their fortunes in times of war and crises. Some are unschooled but they have an innate sense that made them smell and find where the opportunities are. That is true before and it is true today.
Let me site some examples. Japan's economy had its meteoric rise during the Vietnam war. The US had a policy to buy or manufacture anything needed by their forces from Asia where American bases are located. One of the major air force and naval bases used by the USA was our Clark Field and Subic. There was of course Okinawa. Thailand cashed in on being the best rest and recreation area of tired soldiers fighting in Vietnam. Today's day, the tourism boom generated by that phenomenon 30 years ago, continues to do wonders to the Thai economy.
Philippines made very little money on that war because the government then failed to support private enterprises by extending them loans needed to build factories and to purchase raw materials needed for the factories. Japan made a killing because their government saw the opportunities and therefore provided the necessary assistance to private firms. Thus many of the vehicles used were made in Japan. The popular "Eisenhower" and "MacArthur" jeeps and military trucks and a lot of military hardware were manufactured in Japan. The rest was history. Japan upstaged us, we lagged behind and never caught up despite the fact that we were neck and neck in the economic race before.
When Iraq was pulverized giant American contractors, some identified with officials in the corridors of power in America, made and are still making a lot of fortune rebuilding the ruins. It is to their misfortune though that the suicide bombings continued to this day that these contractors and wheeler dealers cannot really cash-in that easy.
Let's not go far. General Yamashita emptied all the treasure throve of countries his forces overran. His luck though ran out for the Imperial Army was routed forcing him to bury his stolen treasures. But treasure hunters, including dictator Marcos, started to find their quarry. Some, like Marcos, sequestered other people's finds. In Davao City, not a few made commandeered abandoned Japanese military trucks and used this for logging activities. Today, illegal loggers in Davao del Norte use trucks salvaged from the Iraq war. Governor Dolfo del Rosario calls these impounded vehicles, which were used for illegal logging as "Saddam" trucks.
The increase of prices of oil actually has some kind of advantage for the Philippines. Don't you know that because of the proximity of our country to the biggest fruit consumers in the world, some big business guys are now looking at the Philippines as the land of promise? Instead of buying bananas from faraway Latin American countries which also supply bananas to Japan which is the principal export market for bananas, buyers find it a lot cheaper and faster to import fruits from Davao.
Dolfo del Rosario said that presently, Japan buys solo papaya from Hawaii because multi-nationals have seen to it that their Hawaii investments are protected. It is his prognosis that eventually they will shift to developing solo papaya plantations in RP particularly Davao because of the excellent weather condition and fertile soil. He revealed that they are doing that now for Davao mangos. The multi-nationals are now tying up with local growers, small and big producers, with the aid of the office of Governor del Rosario, so that they can be given adequate technical assistance. The governor by the way cannot believe why banana growers in Tamayong, Calinan make very little money. He said there is no way they can lose. He said that cooperatives he has assisted in Davao del Norte have become overnight millionaires in just six months from their five-hectare farms.
"Kung alam mo paano, alam mo kung paano ka kikita. I know the business having been hands on in the industry for the best part of my life, that's why I know. It's the same with bananas and mango," Del Rosario explained. He revealed that there is now a vapor treatment in Panabo. "I will send my technical people to help small time mango growers -those with even one or three mango trees in their backyard how to take care of their trees for them to produce quality fruits. They will be making money on these trees instead of just making these as their shade for siesta and carabaos."
Dolfo, who is now full time governor following his retirement from Anflocor, is busy personally surveying idle lands which are owned by small landowners. He said that he and his son Anthony personally talk to farmers to make them realize the potential of their farms. He said that when needed funds will be earmarked for the construction of farm to market roads to encourage farmers to cultivate their lands.
As the prices of gasoline and oil go up, we find value in the proximity of the Philippines to the export market. Since we are near, the cost of transport is cut by nearly two thirds. This is indeed a big advantage. Dolfo is right in many ways. He is changing the mindset of his constituents to cash in on the crises.
