Carlo Butalid’s blog

Reflections of a Filipino in the Netherlands

Shift oil use to electricity

Posted by butalidnl on 16 July 2008

We are now facing two aspects of the energy crisis: first is the obvious one of crude oil, while the other one is in electricity production. Since crude oil is in short supply, it is but logical to shift our gasoline and diesel use to electricity as much as possible. Since the overall electricity grid incorporates wind, hydro and even solar (although the majority is still generated through coal), electricity is easier to make “greener” than diesel.

There are a number of ways to shift from oil products to electricity.

Plug-in Electric Cars
The announcement by a number of car companies that they will come out with Plug-in Electric Cars is a welcome development. Not only will the cost per kilometer be less than for gasoline-driven cars, it will do wonders for air quality (at least, locally).

Electrifying the entire train system
One immediate advantage will be the savings in diesel from long-distance trucks that haul goods all over the US. Part of the electricity needed for running the system could be generated locally, using wind or solar energy. Another advantage of an electrified train system is that, when it is combined with high-speed train routes, would be a viable alternative to the airplane.

The US government should encourage these measures, even to the point of investing in some projects. These measures would generate a lot of employment (think of all the civil works to install electricity power lines for the trains, or for the construction of new locomotives, etc.). It would ease the demand for gasoline and diesel, and create conditions that would better fit with the introduction of more electricity from alternative sources.

Solar Energy Links

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American Midwest Floods and some possible tips from the Dutch experience

Posted by butalidnl on 10 July 2008

I have been following the events of June in the American midwest, where many rivers overflowed their banks, flooding cities and croplands. It was indeed quite a disaster. And I don’t believe that this was a “hundred years flood” - with climate change and all, people should expect this to happen more often, instead of 100 years,  maybe every 20 years!

Perhaps the Americans can learn some tips from how the Dutch deal with the constant threat of floods.
First of all, the Dutch take the control of water flow quite seriously. The government always allots all the funds needed for water control projects. (Nobody ever complains at these expenses; many complain however if water projects are done too slowly)All the dikes are regularly inspected and maintained. There are elected bodies which are in charge of all aspects of water flow control in an area covering several towns. (These waterschappen even predate the founding of the Netherlands as an independent state.

And then the Dutch rivers have dikes, but they are placed differently from the American ones. The Dutch have set up two rows of dikes at their rivers. The first set, about one or two meters high is set right next to the river, or what they refer to as the river’s “summer bed”. A couple of hundred meters further is the second row of dikes. This is a more massive and tall structure, and often, there are even roads on top of them. The area between the small dike and the massive one is usually devoted to grazing land.  The whole space between the massive dikes on both sides of the river is referred to as the river’s winter bed. This is because there is often more water flowing down the river due to rains and melting snow in the countries where the rivers originate (Switzerland, Germany, France and Belgium)

The Dutch also have a system of gates and special canals, which they can open when too much water is flowing in one or another river. Thus, they can divert water from the Rhine into the Ijssel river. Or, from the Maas into the  Rhine/Maas rivers.  And finally, if even this is not enough,  they have the system of “green rivers”, where excess water could  be diverted onto green lakes.

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Net metering/billing law needed

Posted by butalidnl on 10 June 2008

Net metering and net billing are important measures that need to be taken in order to fully utilize the potential of alternative energy sources. Net metering/billing is a system in which energy consumers could produce their own energy (usually alternative energy) for their own use, and sell the excess to the electricity grid at the same price that they buy electricity from the grid. This is why it is called “net” metering/billing. The alternative energy that the consumer sells to the grid for instance during the day (when there is a lot of sunshine) would be used to cancel part of the cost of the electricity used at night (when solar energy is not available). This sounds quite straightforward, but unless it is made into law, electricity companies will tend to pay consumers much less for the electricity produced by them than what it collects for the electricity it itself sells.

A law on net metering/billing is quite important for promoting alternative energy at the retail level, because it facilitates the connection of this to the electricity grid. Up front, it makes for real monetary savings, since with net metering/billing it is no longer necessary to have expensive batteries to store the alternative electricity during peak production periods - the electricity grid becomes, in effect, the battery.

While alternative energy is not yet being produced on a large scale, it is good to start promoting the emerging forms of alternative energy. The electricity grid is intersecting more and more with alternative energy in various forms such as biogas (from bio-waste), micro-hydro, and “co-generation” (e.g. burning of bagasse while producing methanol). Also, it will not be too long before the alternative energy from solar and wind could be connected to the electricity grid.

The net metering/billing bill would also have other advantages. Electricity companies will be required to extend technical assistance to consumers who want to connect their alternative energy sources with the grid. There would need to be national standards for the interconnection equipment.  A gradually more decentralized system of electricity generation would reduce electricity transport costs and promote stability in the grid.

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The Philippines can overcome the rice crisis

Posted by butalidnl on 18 April 2008

Lately, there have been speculations to the effect that the government has blown up the rice crisis beyond proportion; that it used the rice crisis as a diversion from all the corruption scandals that plagued the government.  My reaction to this is: I don’t think it is a conspiracy. After all, the rice crisis is not only affecting the Philippines. In fact, it affects many more countries, with rice stocks being shepherded by surplus countries, and the price of rice and other grains rising dramatically.

I think that the rice crisis just arrived; and the government of GMA was confronted with it. Of course, I suppose it is a not unwelcome change after all the months of scandals and political intrigue. A crisis such as this makes things simpler. It even gives them an opportunity to regain a bit of good will with the people.

So, we have the crisis. But are we reacting too early?
I don’t think so. The fact that we don’t see hungry Filipinos rioting in the streets does not mean that we are just crying wolf, when the crisis is still far away. The crisis is real, it has been seen in advance - before becoming really acute. This is the right time to face it, when we still have more options. Both short term and medium term measures could still be taken to address the problem. If we waited too long, the problem would have become very difficult to solve, and no good options would be left.

It is good, in a sense, that we face the food crisis now instead of later. One crisis at a time, I would say. In a couple of years, the country (and the rest of the world, by the way) would be facing an acute fossil-fuel crisis with extremely high prices and even shortages. If we are successful in meeting this food crisis now, we will have enough capacity to deal with future crises when they do come.

Good steps taken, more needed.
One thing about having a crisis is that some political decisions may be easier to make then, than when there was no crisis. All of a sudden, things fall into place, and the necessary steps are perceived as such; and as the “lesser evil” as compared with not taking those steps. Let us take a look at some of the good first steps taken by the government which they could not have taken without a crisis. These would include:
- a freeze on land conversion;
- increased farm-gate price for rice (from P12 to P17);
- more funds earmarked for increasing agricultural production.

Of course, these are just a start. They should be followed up. A freeze on land conversion should be followed by a comprehensive Land Use Law, and even specific decisions to roll back many cases of land conversion. Increased farm-gate prices don’t mean much if there is not enough money set aside for the NFA buying program. And funds set aside to improve agricultural production should be used well.

Additional steps need to be taken, and they require a bit more political will than the initial steps mentioned above. First among these would be a freeze on the biofuel program. It is scandalous to continue with using food crops for transport fuel, at a time when people are literally getting short of food. The biofuel program should at the minimum be frozen.

Then there comes the question of the Comprehensive Agrarian Reform Program. The current CARP is coming to an end, even though there is still a lot of land at the hands of landlords that have managed to evade redistribution. CARP should be extended, and the remaining lands redistributed. As part of CARP,it is important that the government support the new (small scale) landowner/farmers with extension services, financing, post-harvest facilities etc.  They should really be assisted, so that they can immediately make optimum use of their land to produce food.

An even more “sticky”, but necessary, step would be to “liberalize” rice processing and distribution. Rice millers and wholesalers have a stranglehold on the farmers - they lend farmers cash, fertilizers, seeds, etc. and in turn the farmers have to sell their harvest through them. This monopoly position make it possible for them to dictate prices, and to block others who try to buy or mill rice. What they are doing is not technically classifiable as “hoarding”, but the effect is almost the same, since it stifles productivity, and minimizes the income of the farmers, resulting in smaller harvests. Mechanisms should be set up to open up the agricultural market - for there to be real competition among millers and distributors.

And lastly, Overseas Filipinos (even those with other passports) should be allowed to invest in agriculture. This would open a vast reservoir of capital and knowhow that our agriculture sector can put to good use.

We can overcome this crisis.
This crisis is one which I am sure the Philippines can overcome. We have a lot of good ideas; we have enough technicians and managers.  We even have enough financial resources (especially if we count the increased allocation of government funds, and tapping Overseas Filipinos).  The problem we now face, with the rice shortage, was caused and aggravated by the lack of political will. We can even say that politicians didn’t pay attention to the problem - and didn’t feel the need to take the necessary steps to address it. Now that the problem has to be solved, it will be. Or political careers would suffer.

Solving the food crisis will also put the Philippines in a better position to solve other crises that we are sure to encounter in the coming years. If we successfully address the food crisis, we will have proven to ourselves that this kind of big problem can be solved, if we just decided to do so.

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Think twice before starting with a nursing course

Posted by butalidnl on 17 April 2008

Nursing courses are booming in the Philippines. People are pushing their children to take up nursing in the hope that they would be able to get a job in the US and earn a lot of money. It is getting to the point that one could say there is a “nursing bubble” in the country - too many people taking up nursing courses, resulting in a glut of nursing graduates. But whatever we may say, parents and relatives almost force their children to take up nursing - even if these children have no real aptitude or inclination to take up the course; just because it is apparently a good way to get a US-based job and lots of dollar remittances.

Now that the school year is about to start in the Philippines, the question then arises: should he/she take up a nursing course?

Yes. If the student really has a feel for nursing, and is willing (and even expecting) that she/he may be practicing the profession in the Philippines itself.

No/maybe. If the aim is to get a high-paying job in the US. Why do I say so? Some reasons:

Only one fourth or less of those who start with a nursing course end up with jobs in the US.
In the latest nursing board exam, only 43% of the examinees passed. Of these, many if not most will try to get the NCLEX, the exam to get qualified for US nursing jobs. Not everyone will pass. Of these, they still have to actually get jobs. Then they will have to contend with visa limits; this month (April), the visa quota for the US from the Philippines for 2008 was already met, and thus no more visas will be issued this year.

One fourth success ratio seems not bad. However, please note that this is the best of times. The US is suffering a nursing shortage and till this year, it has been able to absorb as many new nurses as we can produce. This ratio will get worse from this point on. Think of the backlog in visas - next year, those who didn’t make it this year will try again, and then with the additional competition of a whole new batch of nurses. The oversupply will back up, lowering “success” ratios to 1/5 or even 1/10 of graduates in only a few years.

The Philippines is not the only source for nurses for the US.
True, there is a nursing shortage in the US. But who says that all those openings are just waiting to be filled by Filipino nurses. There are many more countries where nurses could come from; and with the Philippines reaching its quota maximum, they will surely be coming from these other countries in increasing numbers.

We also need to consider the increasing supply of nurses from the US itself. Enrollment in nursing courses in the US is increasing. As economic hard times come, there is also the tendency of many Americans who left the nursing profession during the boom times to come back to nursing. There is a large number of former nurses in various other kinds of jobs in the US right now; they are starting to return to nursing, which they view as a stable job with a good income - perfect for these difficult times.

In six years time, a lot of things could happen to the nursing job opportunities in the US. Of course, there are still jobs for nurses in other countries e.g. Europe, the Middle East, and Japan. But with all the new nurses who will be around in 6 years, the competition for these jobs will also be quite intense.

Other professions will also be in demand 6 years from now.
The world will change a lot in six years, and there will be lots of jobs available both in the Philippines and abroad. Those with professional and technical qualifications would be able to land these jobs. Think about the Business Process Outsourcing (BPO) industry. We know this more from the call centers that have sprouted all over the country. However, BPO does not end with call centers - it is just the beginning. There is a big untapped market for the outsourcing of accounting, bank back-office functions, IT development, even research and development. With the development of communications technology, it makes more and more sense for companies (and not only those from English-speaking countries) to outsource many of their functions. The Philippines is only starting to tap into this market. This will be booming in six years. Thus, there will be lots of jobs for those with degrees in accounting, banking and finance, IT and even the applied sciences.

Then consider the jobs that will be available abroad. There will be a continuing need for skilled technical personnel from heavy machinery operators, to electricians, plumbers, refrigeration technicians etc. At the higher end, there will be enough jobs for architechts and engineers, accountants and computer experts of all kinds. Not only will foreign companies continue to hire Filipinos; Filipino companies will increasingly bring their own workers to their foreign projects.

Even seemingly unpromising jobs e.g. school teachers or agricultural extension workers may see an increase in demand, accompanied by a marked increase in salaries. Sooner or later, the country will realize the importance of such jobs. Teachers, after all, are all-important in ensuring that the country continues to produce skilled workers and professionals for domestic and international jobs. And farm extension workers are essential in ensuring that the country produces enough food.

With all the possibilities, it is no longer a simple and cut case for nursing as the quick route to a big income. Nursing may still remain as one of the viable options, but the beginning college student has a lot of choices of what course to take.

Why only “maybe”?
Now, let us go back to why “maybe”. One thing about the range of jobs that will be available 6 years from now is that there is a lot of possibilities for “sideways” movement. One possibility for those who tried but failed to land a nursing job abroad, is get a job with a BPO company. Some companies still do medical transcriptions; people with a nursing background will qualify quite well for this. And, there is always the call center agent possibility - if you are good enough to pass the nursing board, your English is probably good enough to become a call center agent.

And there is always a possibility that even though one did not have the inclination for nursing to begin with, that they would acquire it over the years of studying to be a nurse. And there will be enough jobs available (and some with quite reasonable salaries) in the Philippines as nurses - of course, you would probably be working in a public hospital, or a rural clinic. But wouldn’t that be fulfilling?

The

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