INTRODUCTION. To all distinguished guests from various agencies of government and the private sector, subject matter experts, and all our attendees, a pleasant morning to all.
Foremost, I would like to congratulate the Maritime League and the Department of Transportation for spearheading the Blue Economy Annual Trade and Conference, or BEACON 2023.
It is my distinct honor to represent the Secretary of National Defense, Atty. Gilberto C. Teodoro, Jr., and share the DND’s perspective on its role in the Philippines’ bid to transform its ocean-based resources that make up its maritime economy to become a sustainable and low-carbon blue economy.
BLUE ECONOMY. A blue economy, according to the United Nations Department of Economic and Social Affairs (UN DESA), is “an economy that comprises a range of economic sectors and related policies that together determine whether the use of ocean resources is sustainable,” the operative word being sustainable. Sustainability of the use of oceans for economic prosperity is front and center to the blue economy concept.
In the Philippines, the sustainable management of our oceans and seas is a vital component of our maritime governance framework because as the world’s second-largest archipelagic state with the 5th longest coastline, 2.2 million sq. kms of our national territory is in the maritime domain. This translates to 88% of the total area of our legal jurisdiction. Because 55% of our municipalities are coastal, Filipinos benefit from a variety of ocean-based economic activities such as fishing, offshore and coastal mining, coastal construction, ocean-based power generation, sea-based transportation, and storage.
In the past years, these ocean-based activities have been expanding. According to the latest Philippine Statistics Authority (PSA) data, ocean-based industries grew by 6.7%, meaning, our maritime economy accounts for 3.6% of total GDP in 2021, yielding Gross Value Added of Php707.8 billion. The main contributor to this growth is ocean fishing, accounting for 33.9% of the total 2021 Philippine maritime economy; followed by the manufacture of ocean-based products (23%); sea-based transportation and storage (14.8%); and ocean-based power generation, transmission, and distribution (12.8%).
Global data from the United Nations Food and Agriculture Organization (FAO) also revealed the Philippines is constantly within the top 25 Countries and Territories with the highest marine captures. The report shows projected fisheries, and aquaculture production by 2030 will increase to 22.3%. This means by 2030, the Philippines is expected to yield 3,337 tons from fish catch and 1,045 tons from aquaculture, a projection with several implications for the Philippines and the world.
First, the growing fisheries and aquaculture production is directly related to the increasing trend in dependence on ocean-based produce for food security. Second, with this growing aquatic resources consumption is the threat of overfishing, pollution, and mismanagement of ocean resources. And third, the nexus of food security and sustainability through the Blue Transformation, or the holistic and adaptive ecosystem approach to sustainably secure economic value chains.
The Role of the Defense Sector in the Blue Economy Framework. In this impending shift towards a blue economy, we ensure the protection of a peaceful and enabling environment for the Philippines to reach this point efficiently and effectively. A blue economy cannot flourish without addressing the persistent and emerging maritime security challenges.
Security is vital to development. As it is the mandate of the AFP to guard our territorial integrity and sovereignty, they need to be equipped with the required capabilities to effectively defend against internal and external threats. This is made possible through the implementation of the AFP Modernization Program, which entails the identification, development, production, and acquisition of capabilities that can address identified threats. In terms of maritime security, the Philippine Navy’s Active Archipelagic Defense Strategy (AADS) vis-à-vis the Philippine Navy Sail Plan both serve as guideposts in terms of ensuring that the Philippine archipelago is protected.
In terms of legal approaches, we have champions for the furtherance of our country’s Blue Economy as evidenced by proposals filed in Congress to support the establishment and adoption of the Blue Economy framework which promotes the sustainable development of our maritime resources. The President has signified the Blue Economy Act as a priority bill in his second State of the Nation Address.
The DND’s role in the Blue Economy Act is to promote a responsive ocean governance framework in order to realize the blue economy’s potential. We believe and support the UN Division of Ocean Affairs and Law of the Sea’s (UN DOALAS) three elements of ocean governance anchored on 1) legal and political frameworks, 2) sectoral stakeholders of ocean space, and 3) implementing structures based on scale. First, we believe the legal and political frameworks provide foundational principles, rules, roles and responsibilities of major stakeholders in the marine space. Second, many laws and political instruments governing ocean space are tailored for industries such as shipping, fisheries, energy, marine science, national security, and law enforcement. Third, implementing structures must ensure the legal regimes for managing ocean concerns are coordinately applied, with a balance between development and conservation.
With respect to national security, the sustainable development and exploitation of the Blue Economy is necessary as it increases extractive capacity of the State to generate more national wealth. The Blue Economy remains a vast untapped resource reserve where industries with long-term operational designs could generate significant income to finance the provision of public goods such as national defense service.
CONCLUSION. As such, the DND and AFP shall remain steadfast to secure the country’s territorial sovereignty and integrity as it is our main contribution to the development of the Blue Economy. We will continue our AFP Modernization Program and establish a credible defense posture and initiatives that promote our intention for regional peace, prosperity, and stability.