Former NEDA chief pushes urgent agri reform for growth

LOS BAÑOS, Philippines— Dr. Karl Kendrick Chua, former Secretary of the National Economic and Development Authority (NEDA, now known as Department of Economy, Planning, and Development [DEPDev]), underscored that agricultural productivity is the missing foundation in the Philippines’ long-delayed structural transformation during a seminar hosted by the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) on 14 November 2025.

Addressing the audience at SEARCA’s flagship seminar, Chua described the Philippines’ economy as stable, but not yet prosperous. He pointed out that true national prosperity can only be achieved by launching an agricultural transformation similar to those undertaken by other successful Asian economies. Chua noted that economies such as those of Thailand, Japan, and Korea followed a strategic path—starting with increases in agricultural productivity, enabling farmers to scale up or transition, and harnessing rising rural incomes to drive manufacturing and exports. These steps, Chua said, led to inclusive and sustainable structural transformation.

Highlighting the Philippine experience, Chua observed that the country’s economic development had skipped crucial agricultural steps, resulting in underdeveloped manufacturing, weak job creation, and slow poverty reduction. The decline of agriculture’s share in the economy, he noted, has not been matched by robust manufacturing growth, causing a large portion of the workforce to move into low-value informal services.

A key theme in Chua’s presentation was the country’s restrictive and incomplete agrarian reform system. He highlighted this as one of the most significant factors restraining agricultural productivity. Citing examples from East Asian neighbors, Chua noted that rapid and complete land redistribution, secure property rights, functional land markets, as well as mechanization and farm consolidation, were all pivotal in their success.

Chua reported that the Philippine agriculture sector has grown at an average of only 2.2% annually since the 1970s, barely keeping pace with population growth and keeping the country in a persistent “low-productivity trap.” He argued that revitalizing agriculture will help lower food prices, ease inflation, reduce poverty more rapidly than any other sector, support labor transitions into manufacturing, and create stronger agriculture-industry linkages essential for sustained growth.

Calling on academics, students, local governments, and development practitioners, Chua urged the Los Baños science community to lead the advancement of analytical foundations for agricultural reform.

Chua outlined the following reform priorities in Philippine agriculture: strengthen property rights and land markets by completing the agrarian reform; shift from equity to efficiency by focusing on increasing scale in farms; reform land administration and titling systems; focus from inputs to farmers, products, and value chains; reallocate public spending to productive public goods and targeted support, as needed; and fully liberalize rice and other key crop markets.

The ADSS is SEARCA’s flagship seminar series that encourages the presentation and discussion of development and research issues, as well as their implications for the sustainable transformation of Southeast Asian agricultural systems through innovation. It aims to foster dynamic discussions and knowledge sharing within and beyond the LBSC.