In its 2004 Philippines Environment Monitor-Assessing Progress report, the WB said the annual economic losses caused by water pollution alone are estimated at P67 billion, while the poor management of resources costs players in the fisheries sector P23 billion in lost income each year.
The increased health costs of air pollution in four urban centers alone are estimated to be more than P21 billion.
The WB said in its report that the Philippines is blessed with a rich diversity of natural resources but population pressure, along with long-term neglect of the environment, has strained ecological systems.
The international agency pointed out that better management of the environment would not only improve the quality of life, but could bring about higher economic growth.
"Good environmental management can attract investments in key growth sectors. The Philippines has great potential to expand tourism. But the tourism industry is very sensitive to effective management of the environment. In the mining industry, effective environmental management improves the investment climate and the support of the population for this very important industry," the report said.
In a forum where the report was introduced yesterday, WB Philippines country director Joachim von Amsberg said "political will, stronger enforcement of laws, modern public institutions, and public participation can all play a part in improving the environment and tapping this potential for the Philippines."
The report noted that forested areas in the country continue to be threatened by the need for more land for agriculture and housing.
"The Philippines has one of the lowest forest cover per capita in the world. As habitats shrink, biodiversity is increasingly endangered. Coastal resources, especially coral reefs, of which over 90 percent are at high risk, mangroves and seagrasses face threats from coastal zone development, expanding agriculture and destructive fishing. Fisheries’ catch per unit of effort has been declining steadily in many areas," said Jitendra Shah, WB’s lead environmental specialist and the report’s principal author.
Shah noted that while the Philippine government has adopted "overarching" laws aimed at improving air and water quality and preserving environmental resources, "the actual change on the ground, measured by environmental indicators, has been slow and not yet sufficient to overcome years of neglect, haphazard policy-making and weak local environmental management."
The report said that successive administrations, the private sector and civic groups have collaborated in enacting important laws such as the Clean Air Act in 1999, Ecological Solid Waste Management Act in 2000, and the Clean Water Act in 2004.