| Abstract: | The BACHUE model, a dynamic simulation technique developed within the International Labour Organization's World Employment Program, has been applied to the Philippines. The model simulates behavior and consequences in a number of key areas: fertility, marriage, migration, savings and expenditure, and labor force participation for households and a macro-model for demand, ouput, employment, and income. The design and development of the model are discussed in detail. The model was run for a series of 13 experiments ranging from nationlization of modern sectors, increasing self-employment, movement toward labor-intensive techniques, changes in growth rates of various sectors, and a reduction in fertility by 2% over 1976-1985, an increase over the 1% assumed in the base run. Runs R-2 to R-11 all showed that a change in basic needs is associated with significant declines in fertility, largely because of increasing education and decreasing mortality. Better economic conditions in rural areas also reduced migration. R-13 which examined the effects of a family planning program of moderate size on ultimate fertility, showed that even by year 2000 the effects were small. The population is reduced 5% over the run which assumes negative income tax and government subsidies to poor families but the gain in income per adult is less than 4%. Any real improvement in income as the result of family planning will take 40-50 years to achieve. Economic incentives, on the other hand, have much faster demographic results. The models also show that rural-urban migration is responsive to policy changes. Planners are cautioned that the model is not a picture of the entire range of human behavior but is an adjunct for use in analyzing interaction between policies. |
