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The Philippines Gasifier and Fuelwood Development Programme

The developing countries of the world face a particularly difficult task in adjusting to high energy prices and the decreasing availability of wood and other traditional fuels. The adjustment should be made in a manner which does least harm to the process of development; it is especially difficult for oil-importing developing countries which must allocate capital to alternative supplies of energy whilst continuing to pay for imports of oil until the investments take effect. In 1982 oil imports in the Philippines amounted by value to 38 per cent of export earnings. The cost of the adjustment is not borne equally by all sectors of the economy. Manufacturing industry in developing countries, at least in South East Asia, has sustained reasonable growth through recent difficult periods and is better able to adjust than is the relatively stagnant agricultural sector on which the rural population depends. High costs of commercial energy for lighting, irrigation, transport and agricultural processes, combined with a decreasing availability of traditional fuels for cooking, reduce welfare and restrict future development. The unequal capacity to adjust threatens to widen the gap between urban rich and rural