Effect of monetary policy

In the short run, monetary policy influences inflation and the economy-wide demand for goods
and services--and, therefore, the demand for the employees who produce those goods and
services--primarily through its influence on the financial conditions facing households and firms.
During normal times, the Federal Reserve has primarily influenced overall financial conditions
by adjusting the federal funds rate--the rate that banks charge each other for short-term loans.
Movements in the federal funds rate are passed on to other short-term interest rates that influence
borrowing costs for firms and households. Movements in short-term interest rates also influence
long-term interest rates--such as corporate bond rates and residential mortgage rates--because
those rates reflect, among other factors, the current and expected future values of short-term
rates. In addition, shifts in long-term interest rates affect other asset prices, most notably equity
prices and the foreign exchange value of the dollar. For example, all else being equal, lower
interest rates tend to raise equity prices as investors discount the future cash flows associated
with equity investments at a lower rate.

In turn, these changes in financial conditions affect economic activity. For example, when short-
and long-term interest rates go down, it becomes cheaper to borrow, so households are more
willing to buy goods and services and firms are in a better position to purchase items to expand
their businesses, such as property and equipment. Firms respond to these increases in total
(household and business) spending by hiring more workers and boosting production. As a result
of these factors, household wealth increases, which spurs even more spending. These linkages
from monetary policy to production and employment don't show up immediately and are
influenced by a range of factors, which makes it difficult to gauge precisely the effect of
monetary policy on the economy.

Monetary policy also has an important influence on inflation. When the federal funds rate is
reduced, the resulting stronger demand for goods and services tends to push wages and other
costs higher, reflecting the greater demand for workers and materials that are necessary for
production. In addition, policy actions can influence expectations about how the economy will
perform in the future, including expectations for prices and wages, and those expectations can
themselves directly influence current inflation.

In 2008, with short-term interest rates essentially at zero and thus unable to fall much further, the
Federal Reserve undertook nontraditional monetary policy measures to provide additional
support to the economy. Between late 2008 and October 2014, the Federal Reserve purchased
longer-term mortgage-backed securities and notes issued by certain government-sponsored
enterprises, as well as longer-term Treasury bonds and notes. The primary purpose of these
purchases was to help to lower the level of longer-term interest rates, thereby improving
financial conditions. Thus, this nontraditional monetary policy measure operated through the
same broad channels as traditional policy, despite the differences in implementation of the
policy.
Monetary Policy measures or actions taken by the central bank to influence the general price
level and the level of liquidity in the economy. Monetary policy actions of the BSP are aimed at
influencing the timing, cost and availability of money and credit, as well as other financial
factors, for the main objective of stabilizing the price level.

o Expansionary Monetary Policy monetary policy setting that intends to increase

the level of liquidity/money supply in the economy and which could also result in
a relatively higher inflation path for the economy. Examples are the lowering of
policy interest rates and the reduction in reserve requirements. Expansionary
monetary policy tends to encourage economic activity as more funds are made
available for lending by banks. This, in turn, increases aggregate demand which
could eventually fuel inflation pressures in the domestic economy.

o Contractionary Monetary Policy - monetary policy setting that intends to decrease

the level of liquidity/money supply in the economy and which could also result in
a relatively lower inflation path for the economy. Examples of this are increases
in policy interest rates and reserve requirements. Contractionary monetary policy
tends to limit economic activity as less funds are made available for lending by
banks. This, in turn, lowers aggregate demand which could eventually temper
inflation pressures in the domestic economy.

The Federal Reserve Bank, in consultation with congress and the executive branch, makes
monetary policy for the U.S. The Federal Reserve (Fed) is the nation's central bank, and it has
the ability to control how much money circulates and the costs of borrowing money, known as
interest. How the Board of Governors of the Federal Reserve handle the nation's money supply is
known as monetary policy and its effects on everyday life--including business--are profound.
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Borrowing
The Federal Reserve sets the interest rate at which banks borrow money from them. When the
Fed lowers interest rates, they make it cheaper for banks to access money, which in turn makes
banks more likely to lend to businesses and consumers. Your business's ability to borrow or
establish a line of credit can be largely affected by how expensive or cheap it is for banks to get
money.

Interest Rates
The primary thing the Fed controls is the interest rate for banks to borrow money. Not
surprisingly, banks turnaround and pass the savings or cost on to their borrowers. When the real
interest rate is set low for banks, commercial and consumer interest rates also tend to run lower,
making loans more affordable.

Foreign Exchange
Interest rates and the value of the dollar have a distinct relationship. When the Federal Reserve
makes the cost of borrowing cheaper, more money starts flowing in the economy. The more
dollars that are out there, the less each one is worth. The dollar value drops. Often, when the Fed
drops interest rates, it intends to lower the dollar's value in order to make U.S. goods more
affordable, and therefore, increase U.S. exports, which can foster growth in business and jobs.

Inflation
During a time of low interest rates and increased money flowing through the economy, inflation
can occur if economic production and employment do not increase. Stagnant business, despite
increased cash, means that more money is chasing fewer goods and prices rise. One of the goals
of monetary policy is to prevent excessive inflation while fostering economic growth

MONETARY POLICY

Monetary policy is the management of money supply and interest rates by central banks to
influence prices and employment. Monetary policy works through expansion or contraction of
investment and consumption expenditure.
Monetary policy is that part of economic policy in which central bank controls the cost and
supply of money and credit by applying different techniques. It is also main function of central
bank.

In India RBI is sole institute who is taking steps to regulate money and credit by controlling its
supply. Monetary policy regulates both volume and value of currency and credit.

Monetary policy is the process by which the government, central bank (RBI in India), or
monetary authority of a country controls.

1. the supply of money

2. Availability of money
3. Cost of money or rate of interest, in order to attain a set of objectives oriented towards the
growth and stability of the economy. Monetary theory provides insight into how to craft
optimal monetary policy

OBJECTIVE OF MONETARY POLICY

To control the supply of money in the market.

To control the cost of money and credit.
Exchange stability
Full employment

WHY IT IS NEEDED?

What monetary policy -at its best -can deliver is low and stable inflation, and thereby reduces the
volatility of the business cycle. When inflationary pressures build up, it is monetary policy only
which raises the short-term interest rate (the policy rate), which raises real rates across the
economy and squeezes consumption and investment. The pain is not concentrated at a few
points, as is the case with government interventions in commodity markets.

Monetary policy in India underwent significant changes in the 1990s as the Indian Economy
became increasing open and financial sector reforms were put in place. In the 1980s, monetary
policy was geared towards controlling the quantum, cost and directions of credit flow in the
economy. The quantity variables dominated as the transmission Channel of monetary policy.
Reforms during the 1990s enhanced the sensitivity of price signals from the central bank, making
interest rates the increasingly Dominant transmission channel of monetary policy in India.

Read more: http://www.ukessays.co.uk/essays/finance/impact-of-monetary-

policy.php#ixzz4ND596aMs
Educational problems effects to parents and students

Parents are the most immediate relation of a child. Their financial status and education do have
an important influence on the personality of child. Educated parents can better understand the
educational needs and their childrens aptitude. They can help their children in their early
education which affects their proficiency in their relative area of knowledge. Belonging to strong
financial background, parents can provide latest technologies and facilities in a best possible way
to enhance educational capability of their children. Parental education and Socio-Economic
factors are of vital importance in effecting students educational achievements also. They are like
backbone in providing financial and mental confidence to students. Explicit difference can be
observed between those students who belong to different financial status and different parental
educational level. Education is a primary need in this era of globalization. Education not only
gives insight, it also grooms the personality, inculcates moral values, add knowledge and gives
skill. Education is necessary owing to the atmosphere of competition .In every field highly
qualified people are needed. As Battle and Lewis states; In this era of globalization and
technological revolution, education is considered as a first step for every human activity. It plays
a vital role in the development of human capital and is linked with an individuals well-being and
opportunities for better living. The world is making progress day by day because education is
the only key to match the pace of its progress. People are giving preference to higher education.
International Journal of Academic Research and Reflection Vol. 1 No. 3, 2013 Progressive
Academic Publishing, UK Page 26 www.idpublications.org It ensures the acquisition of
knowledge and skills that enable individuals to increase their productivity and improve their
quality of life. This increase in productivity also leads towards new sources of earning which
enhances the economic growth of a country (Saxton, 2000) The quality of students
performance remains at the top priority for educators. The variables effecting students academic
performances are both inside and outside the school. There are a number of factors that affect
students performance like parental SES, parents education and their involvement in childs
studies, students gender, time allocation, technology, available facilities and lots of more.
Educators, trainers, and researchers have long been interested in exploring variables contributing
effectively for quality of performance of learners. These variables are inside and outside school
that affect students quality of academic achievement. These factors may be termed as student
factors, family factors, school factors and peer factors (Crosnoe, Johnson & Elder, 204). Adams
in 1996 stated, Low parental SES has negative effect on academic performance of students
because basic needs of students remain unfulfilled and hence they do not perform better
academically. The study of the demographic and other factors affecting students education
rooted back in seventeenth century. Up till now many researches are made on this issue. The
formal investigation about the role of these demographic factors rooted back in 17th century
(Mann, 1985). Every factor affecting students education is worthy to be studied but the most
important one is parental socio- economic status. The children of well to do parents have better
sources and facilities to avail. They have the opportunity to get admission in good schools, which
offer a sound base for their future career. Besides other factors, socio-economic status is one of
the most researched and debated factor among educational professionals that contribute towards
the academic performance of students. The most prevalent argument is that the socio-economic
status of learners affects the quality of their academic performance. Most of the experts argue
that the low socio-economic status has negative effect on the academic performance of students
because the basic needs of students remain unfulfilled and hence they do not perform better
academically (Adams, 1996) On the other hand the students having financial problems have to
face various hurdles. Their financial problems distract them from their studies and they fail to get
high grades and consequently have to suffer for finding a job. The low socio-economic status
causes environmental deficiencies which results in low self esteem of students (US Department
of Education, 2003) Moreover specifically, this study targets to analyze effects of parental socio-
economic status and education on students academic performances. Secondarily it aims to find
out the influence of above mentioned factors on both genders.

Each year students attend schools that represent a variety of socioeconomic backgrounds.
Socioeconomic status refers to the level of education, income, and professionalism of an
individual or group. Although students of higher and lower socioeconomic statuses both attend
school, the effect of lower socioeconomic status on student achievement is difficult to ignore.
Students of a lower socioeconomic status often face additional challenges including a dearth of
learning resources, difficult learning conditions and poor motivation that negatively affect their
academic performance.
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Learning Resources
Families with a lower socioeconomic status often struggle with providing academic support
for their children. Limited time and financial resources make it difficult for parents to create a
home-based learning environment. Parents in a low socioeconomic household cannot afford
reading materials, technology and tutors for their children. When children do not have a positive
learning environment at home, it negatively affects their academic achievement level in school.
School Environment
School environment plays a profound role in academic achievement for low socioeconomic
status children. Teacher turnover, limited resources and low academic performance are all
characteristics of schools in lower socioeconomic communities. Consequently, highly-qualified
teachers often avoid such schools by committing to more affluent school communities, leaving
low socioeconomic status children with teachers who often lack expertise in their subjects.
Academic Achievement
 Lower socioeconomic status students often display difficulty with language skills and struggle
with reading. In comparison to higher socioeconomic status children, they are not as accurate
when completing mathematical tasks such as word problems or addition and subtraction. As
schools become aware of low student performance, students are often assigned to lower school
tracks. Consequently, students on the lower end of the socioeconomic spectrum are forced to
take lower level courses or vocational courses that do not necessarily prepare them for higher
education. Lower socioeconomic status ultimately contributes to lower academic performance
and slower rates of academic progress.
Motivation
Students in lower socioeconomic communities are more likely to exhibit behavior-related
learning problems because they feel as if they do not belong in school due to their working class
background. These feelings of loneliness and inadequacy often influence the decision to drop out
for many students. Additionally, as low socioeconomic status students become aware of high
college tuition fees, they often lose the motivation to perform well due to their inability to pay
for higher education, ultimately affecting the influence of socioeconomic status on student
achievement.

Parent involvement actually declines as students grow older, so that it is less in secondary
schools than in elementary (Stouffer, 1992). If parental involvement is so beneficial, why isn't it
being used to a greater extent than at present? There are many reasons from the parent and also
from the school for this lack of involvement. One of the reasons concerns the lack of
understanding of nontraditional families on the part of the school system. The nontraditional
family is struggling to deal with many factors that affect every member of the family. These can
definitely affect the way that the family is able to be involved in the student's education. More
than likely, there is a shortage of time. There just simply are not enough hours in the day to
accomplish everything. If there has been a divorce or death in the family, there probably has
been a change in the financial standing of the family. By the school not being sensitive to this
change, the student/family could be embarrassed. The verynature of the family structure is in a
state of change causing confusion and insecurity (Duncan, 1992; Lewis, 1992; Wanat, 1992).
The parents may be doing the very best that they can.

"Schools must understand that lack of participation by parents does not necessarily mean they
are neglecting their responsibilities. They simply may not have the time, resources, or know-how
to help out" (Wanat, p. 47). Parents often do not feel welcomed at school. They feel that what
they may have to offer is unimportant and unappreciated. Also, parents may not believe that they
have any knowledge that the school is interested in knowing. This is especially true when the
parent may not have a great deal of education (Dixon, 1992; Vandergrift & Greene, 1992). It is
also possible that the parent does not have a great deal of interest in the school or his child's
education. The parent may not feel that education is important (Vandergrift & Greene).

Another reason for lack of involvement is embarrassment. The parents may be illiterate or unable
to speak English. This could make communication difficult if not impossible. Another source of
embarrassment is memories of the parent's failure in school. The parent would not have much
desire to return to a place that only served to remind him of his own failures (Brink & Chandler,
1993; Smith, 1991).

"Do parents know how and what they can do to ensure their children's success? Do they
understand how the school and home can work in harmony for the good of both" (Campbell,
1992, p. 1)? It is possible that a lot of parents do the best they can, but simply do not know the
answers to these questions. They want to help their children achieve success, but do not know
how to go about doing that. Reginal Clark conducted research on students who were classified
as high achievers and discovered that these students shared ten common characteristics
(Campbell, 1992). These ten characteristics can provide a blueprint for families to be more
effective in their roles of ensuring their children greater success in school.

1. A feeling of control over their lives.

2. Frequent communication of high expectations to children.

3. A family dream of success for the future.

4. Hard work as a key to success.

5. An active, not a sedentary, lifestyle.

6. Twenty-five to 35 home-centered learning hours per week.

7. The family viewed as a mutual support system and problem-solving unit.

8. Clearly understood household rules, consistently enforced.

9. Frequent contact with teachers.

10. Emphasis on spiritual growth. (Campbell, 1992, pp. 2-3)

The important person is the student. Anything that the parent can do to help the student improve
is worth doing. "Emphasis should be on effective ways of helping children, families, and
schools work together to provide students with the opportunity to put their best efforts forward"
(Duncan, 1992, p. 13).

It is very clear that parental involvement is beneficial. It can definitely benefit the student in
question, but it can also benefit the teachers, the school, the parents themselves, and the
community, as well as other children in the family. Everything possible should be done by the
school system to encourage the parents to become involved. This is especially true of the
principal of the school. He or she is the driving force of the school, and it is his or her leadership
that will guide the teachers in the direction of emphasizing the importance of parental
involvement.
There has been extensive research done on this subject. However, new ways for increasing
parental involvement can always be discovered. Additional research and information in this area
can do nothing but help all concerned.

Farmers and urban dwellers

How would farmers with land along a river feel about being asked to allow their precious
farmland to be flooded periodically for the sake of controlling flooding in cities further along the
same river? This is a question scientists from the Department of Environmental Science at
Aarhus University have dealt with in the EU research project Bottom-Up Climate Adaptation
Strategies for a Sustainable Europe (BASE). Results from the project will be presented at the
European Climate Change Adaptation Conference (ECCA 2015) in May 2015 in Copenhagen.

Our results indicate that farmers on average would prefer not to enter a contract. However, if
they were to agree on a contract, they would prefer to receive compensation for lost crops and
negotiate collectively with other farmers. As expected, they would also prefer higher rather than
lower annual payments, says Senior Researcher Marianne Zandersen, Department of
Environmental Science, Aarhus University.

A contract that would allow for compensation based on individual negotiation would on average
require a yearly payment of EUR 250447 per ha, depending on the negotiated contract. The
data did not show a significant preference for or against a requirement to grow flood resistant
crops.

Collaboration needed between farm and urban interests

The background for the study is that Northern Europe is experiencing an increasingly wetter
climate, which is leading to more frequent and severe flooding from rivers. Ecosystem-based
adaptation (EbA) is becoming recognised as a valuable yet under-utilised means of alleviating
the negative effects of a changing climate.

Ecosystem-based adaptation necessitates a new and different type of collaboration between

landowners and stakeholders interested in protecting urban structures. As a result, novel ways of
understanding and organising EbA are emerging across Europe. An example, using the approach
of Payment for Ecosystem Services (PES), is the one that will be presented at ECCA 2015 by
Marianne Zandersen and her colleagues from Aarhus University.

Farmers along the second-longest river in Denmark Storen could be instrumental in

protecting urban infrastructures from flooding by allowing flooding on their farmland. The
question is how willing the farmers are to do so, says Marianne Zandersen.
The researchers conducted a survey among farmers located in the vicinity of Storen in order to
assess their willingness to accept a contract that would allow the local town of Holstebro to
periodically flood farmland to avoid or limit urban flooding from the river. The aim was to
estimate the cost of getting farmers to participate in the scheme, which would represent a portion
of the cost of reducing climate change impacts in Holstebro.

Farmers were asked to select between either no contract or contracts characterised by a set of
positive and negative attributes, including whether or not to require specific flood resistant crops
or not, whether to allow for compensation in case of crop loss or not, the type of negotiation
situation and, finally, the level of payment to the farmer for including his land in the inundation
control scheme.

This type of analysis investigates attitudes and preferences of landowners, which are essential
when dealing with ecosystem-based adaptation. Past experience shows that without the
agreement of landowners or the appropriate compensation level, voluntary schemes will not
function at the necessary scale.

Ultimately, the agropolitan approach will discourage rural-urban migration through the
dispersal of development in regions outside Metro Manila. Creating and opening urban
growth centers outside the metropolis will help largely in decongesting it. It will also
prevent people from leaving their hometowns to look for that very elusive greener
pasture.

By Felino A. Palafox, Jr.

Manila Times
November 4, 2015
Excerpt:

The urban farming concept should be embraced by Metro Manila if it intends to improve its food
resiliency efforts, especially if drought in the agricultural areas occurs. Homes and buildings can
very much adopt this. Certain vegetables and fruits such as kangkong, a variety of tomato,
eggplant, cabbage, and maybe even garlic, among others, can be grown locally in the
community. In working with the urban poor, the indigenous people, and survivors of natural
calamities, among others, Palafox Associates and Palafox Architecture Group have incorporated
the concept of growing your own food in the design of affordable housing.

Green walls may be used to grow edible plants as well as citronella grass to ward off mosquitoes.
With technology, strides in hydroponics, specie variety, and soil nutrition have vastly improved.
The government can start making this as part of their agenda in giving ample incentives.

On the other hand, areas specifically Bulacan, Pampanga, Nueva Ecija, Cavite, and Laguna
should look at how to integrate agropolis concepts to their development. One of the crucial issues
that the government should address is to update and properly implement the general land use
plan of the city in order to achieve balance between nature and development. The opening of the
countryside for agropolitan development can employ barren lands for productive use. This will
open more opportunities for jobs, businesses, and tourism potentials.

Cebus population is always on the rise while only three percent of its total lands are
classified as agricultural lands.
By Fayette C. Rien
Philippine Information Agency
6th of March 2012
CEBU CITY, March 6 (PIA) Agriculture officials here urged metro residents to do urban
gardening and plant vegetables in their backyard or in plain pots to address the insufficient
supply of high-value crops in the region.

Jorge Paculba, chief of the crops division of the Department of Agriculture (DA) 7 said the
region is only about 56 percent sufficient in vegetables or high-value crops and that most of our
supply is imported from other regions.

A rising population sparking greater demand for vegetables and the existing 89 hotels plus
pension houses and 116 restaurants in Cebu make it hard to achieve self-sufficiency in high-
value crops, Paculba declared.

Last year, our production went down compared to in 2010 especially on eggplants, broccoli and
onions, Paculba declared.

The DA 7 official said that in order to increase our supply of vegetables, we need to do urban
gardening so that the vegetable plants we produce in our own homes are just what we consume
for our needs.

Paculba cited Cebu which only has three percent of its lands categorized as agricultural. Cebus
population is always on the rise while only three percent of its total lands are classified as
agricultural lands. Thus, the province depends largely on imports for its veggie needs, the DA 7
official added.

Under the Agricultural Roadmap in Response to Increasing Demand and Climate Change 2011-
2016, the DA 7 aims to increase the vegetable sufficiency level of the region from 56.26 percent
in 2011 to 66.32 percent in 2016 by providing production, post-harvest, and processing
equipment and facilities.

The DA 7 is also partnering with the Dep Ed in the National Greening Program where vegetable
seedlings are given to schools to be planted by students in their school gardens.

Paculba also advised farmers to utilize even sloping lands for vegetable planting known as
contour farming.
The High Value Crops Development Program of the DA is one of its priority programs aimed at
helping address food security, poverty alleviation and sustainable growth.

Urban agriculture: Growing crops in the city

By Henrylito D. Tacio
Sun.Star Davao source of Philippine community news
March 14, 2010
Farming is always associated with rural areas, rivers and mountains.

Unknowingly, farming can also be done right in the city. Experts call this practice as urban
agriculture.

Urban agriculture refers not merely to the growing of food crops and fruit trees but that it also
encompasses the raising of animals, poultry, fish, bees, rabbits, guinea pigs, or other livestock
considered edible locally, explains Dr. Irene Tinker, an American professor in the department of
city and regional planning at the University of California.

In recent years, urban agriculture has been creating a big impact in some thickly-populated areas.
In the 1990s, the Beijing government decided that urban agriculture was an important way to
meet the citys food needs. Today, farming in, around, and near Beijing not only provides
residents with safer, healthier food, it also keeps farmers in business.
Between 1995 and 2003, the income for farmers living just outside of Beijing doubled, wrote
Brian Halweil and Danielle Nierenberg in their collaborative report published in the recent issue
of State of the World, published by Washington, D.C.-based Worldwatch Institute.

In Vancouver, Canada, 44 percent of the people grow vegetables, fruits, berries, nuts, or herbs in
their yards, on their balconies, or in one of the 17 community gardens located on city property.
There, farming the city is part of a much larger movement that includes restaurants buying from
local farms, and buying clubs in which neighbors subscribe to weekly deliveries of produce,
noted Halweil and Nierenberg.

In Thailand, 60 percent of the land is under cultivation in greater Bangkok. In Russia, 72 percent
of all urban families are engaged in raising food, mostly part-time. In the United States, the
number of farmers markets selling locally-grown produce increased by 40 percent from 1994 to
1996.

In Guangzhou, China, up to nine crops are grown yearly on any single field. In Hong Kong, six
crops of cabbage a year are not uncommon. Urban farming supplies Israel with 95 percent of its
food needs. The city of Cairo is host to some 80,000 livestock.

In the Philippines, a presidential decree obliged owners, or entitled others with owners
permission, to cultivate unused private lands and some public lands adjoining streets or highways
in Metro Manila. In Davao City, the agriculturists office is promoting the Gulayan sa
Barangay. This program pushes for the growth and propagation of organically-grown
vegetables.

The United Nations Development Program estimates that 800 million people are involved in
urban farming around the world, with the majority in Asian cities. Of these, 200 million produce
food primarily for the market, but the great majority raise food for their own families.

In a survey conducted for the United Nations, cities worldwide already produce about one third
of the food consumed by their residents on average.

This percentage is likely to grow in coming decades, given that the need for urban agriculture
could be greater now than ever before, Halweil and Nierenberg wrote.

A TYPICAL Filipino breakfast takes a complex process of harvest, refinement, and labor that is
masked in its seemingly simple product or produce. Local coffee or kapeng barako comes from
Batangas or highland Benguet, sugar from Negros Occidental, rice from Nueva Ecija, and corn
from Ilagan. If one prefers imported products, coffee is harvested as far as Indonesia and
Guatemala; powdered milk from New Zealand; and tea leaves from China, Japan, or South
Korea.

How far do you think the food has to travel before it is served for our consumption? Where does
the food that nourishes more than 50 million urban dwellers in the Philippines come from? Will
the city ever run out of food? It takes a typhoon to remind the citizens of Metro Manila that the
many kinds of produce are not grown from within the city, hence the eye-popping and heart-
wrenching price surges.

Essentially, the agropolitan (from the words agriculture or farm, and polis or city) approach
balances development between urban and rural or agricultural areas. This means there is a better
integration, a more balanced relationship between the cities and the farms so that communities
and town cities are still close to the farm. The approach is not exactly novel since this type of
development dates back to the Middle Ages. Its practice, though, continues in southern France
and in many parts of Europe.

Agropolis, urban farming, and leisure farms

With the agropolis, a city produces enough agricultural surpluses to be self-sustaining in terms of
food security. At the same time, it can even feed nearby cities. One of the concepts of
agropolitan development is urban farming. A good example would be New York City, where
building rooftops are converted to become urban gardens and their produce is directly sold to the
people living in the building or in the restaurant downstairs. It also eases vegetable demand by
generating extra supply. In effect, urban farming actually decreases the prices of produce
because it would have traveled less, bringing down operational expenses. Less food miles, or
the length of travel between farm to plate, also means less carbon footprint.

The urban farming concept should be embraced by Metro Manila if it intends to improve its food
resiliency efforts, especially if drought in the agricultural areas occurs. Homes and buildings can
very much adopt this. Certain vegetables and fruits such as kangkong, a variety of tomato,
eggplant, cabbage, and maybe even garlic, among others, can be grown locally in the
community. In working with the urban poor, the indigenous people, and survivors of natural
calamities, among others, Palafox Associates and Palafox Architecture Group have incorporated
the concept of growing your own food in the design of affordable housing. Green walls may be
used to grow edible plants as well as citronella grass to ward off mosquitoes. With technology,
strides in hydroponics, specie variety, and soil nutrition have vastly improved. The government
can start making this as part of their agenda in giving ample incentives.

On the other hand, areas specifically Bulacan, Pampanga, Nueva Ecija, Cavite, and Laguna
should look at how to integrate agropolis concepts to their development. One of the crucial issues
that the government should address is to update and properly implement the general land use
plan of the city in order to achieve balance between nature and development. The opening of the
countryside for agropolitan development can employ barren lands for productive use. This will
open more opportunities for jobs, businesses, and tourism potentials.

Another approach to agropolitan development is the leisure farm concept. It integrates farming
with residential development. Twenty five percent of the total lot area is buildable, while the
remaining 75% is primarily for farming. Farming may include vegetable cultivation and
production and raising of fruit-bearing trees, among others. In the Philippines, Palafox
Associates has been involved in the master plan of leisure farms like The Leisure Farms in
Lemery, Batangas; Ponderosa Leisure Farms in Silang, Cavite; and Tierra Maria in Lipa,
Batangas, among others.

Ultimately, the agropolitan approach will discourage rural-urban migration through the dispersal
of development in regions outside Metro Manila. Creating and opening urban growth centers
outside the metropolis will help largely in decongesting it. It will also prevent people from
leaving their hometowns to look for that very elusive greener pasture.

The Philippines has great potentials for this type of development primarily because of its wide
expanse of agricultural lands and natural resource endowment. It is a matter of imagination,
technological feat, and sound economic investment. It would be important to implement proper
urban planning first. Second, infrastructure for irrigation; mobility, such as farm to market roads
and trucking; and renewable energy should be developed.

Each city or region should be well thought out. It should be sustainable, livable, resilient, and
independent in itself. While its surplus produce or economic strength is being leveraged for
better business and sustainable outsourcing, cities in general can be self-sustaining.