It has been repeated ad nauseam that the Philippines is rich in natural resources. Unfortunately, it has been poor in the goods and services that are needed for economic development. This paradox can be attributed to a large extent to the absences of roads, ports and bridges that can enable Filipino farmers and rural workers to make productive use of the natural resources, which are predominantly in the countryside. Agribusiness and tourism, among others, can flourish if our thousands of islands can be connected with one another more efficiently. Unlike Thailand and Vietnam which are large land masses, the Philippines suffers from the fragmentation that is inherent to an archipelago.

Fortunately, the present administration has recognized the need for efficient, speedy, reliable, and affordable mass transportation that enables people to move from one island to another and within islands. The Roll-on/roll-off (RO-RO) program of the Administration of President Macapagal Arroyo has virtually linked the islands through better road and port facilities that have made it possible for passengers and cargo to move efficiently from one island to another through the RO-RO shipping system of inter-island ferries. These fast-moving boats have come to be known as "moving bridges."

Through ports constructed or revived in key island points, passengers and cargo can now travel inter-island without the higher costs of transport and cargo handling. Profits in agriculture have also increased because farmers, who used to sell their produce in far-away Manila or in other major cities, reached new markets after the nautical highways were opened. Local area development and tourism, especially domestic tourism, have been significantly facilitated through the Strong Republic Nautical Highway (SRNH). The SRNH consists of three major routes of both land and sea transport – the western, eastern and central nautical highways – encompassing the whole Archipelago. As early as 2007, the Philippine Ports Authority (PPA) already registered 96 RO-RO-capable ports around the country.

It was in January 2003 that Executive Order No. 170 was signed, geared towards the following objectives:

To reduce transport costs from Mindanao to Luzon, through the Visayas, by means of efficient and cost-effective RO-RO Terminal System (RRTS);
To enhance tourism, transportation and commerce through the country.
To facilitate the Government's agro-fisheries modernization and food security programs;
To promote private sector participation;
To establish new policies to promote the development of the RO-RO system.

The establishment of the SRNH is a perfect example of how an artificial scarcity of goods and services can be addressed by improving the infrastructures in the Philippine countryside, where the overwhelming majority of the poor are residing. There are regions of the country such as in Mindanao, Mindoro, Palawan and the Mountain Provinces where there is an over-production of vegetables and fruits. Unfortunately, in the past a great portion of the abundant harvests went to waste because they could not be transported cost-efficiently to where the markets are. Thanks to the SRNH, these agricultural products can now be transported more cost-efficiently to the consumers. I surmise that this factor is a major one in explaining the ability of the Government to keep inflation rates down. Let us be thankful for the "moving bridges" that we now have. For comments, my e-mail address is bvillegas@uap.edu.ph.