LSD-2-Tangkilikan-Components

Let’s All Help Create, Strengthen:

The ‘Tangkilikan’ Components

By Tony Cruzada Kasikap
Co-founder and Tangkilikan Coordinator, Katipunang DakiLahi;
Overall Coordinator, Sanib-Sikap Initiatives;
Board of Trustees member, SanibLakas ng Taongbayan Foundation

[This is reproduced from the second part of Cruzada’s article in ‘Pambansang Talastasan’ and ‘Pambansang Tang­kilikan’: Twin Imperatives for National Syn­ergy-Building, Empowerment and Upliftment, a pamphlet written by Ed Aurelio Reyes and Cruzada, with an introduction by NEPA president, and DakiLahi chairperson Faustino G. Mendoza Jr., and published by Katipunang DakiLahi in 2003.]

HERE is a user-friendly guide to “Tangkilikan Compo­nents,” especially for networks and associations earn­estly dedicated to improving the Philippine economy by creating new realities where they count—local economies.

Pinoy Market
(Tumatangkilik sa
Produktong Pinoy)

The starting point for the re­surgence of the economy is market demand. It is the mar­ket which alone sustains trade and industry. And the situation of consumers, their purchasing power, affects the fortune of enterprises. If the vast major­ity of the population have a low purchasing power, de­mand will be low and the pro­ducers of goods and services will have little business: if they produce large stocks, pri­ces will be depressed and if they are not already suffering loss, their profits are next to nil.

Consumers preferences al­so affect business. If con­sumers in large numbers continue to pre­fer foreign, imported products, no local industry will thrive. Filipi­nos who will patronize Fili­pino products are needed in great numbers to save Fili­pino jobs and industries and keep the Philippine econo­my afloat. If the market continues to be flooded with foreign goods, and there is little local pro­duction, we are reduced to a society of consumers, spend­ing for as long as there is money to spend, by those who still have that money. But no new wealth is created, no new money flows into the eco­no­my while it is being bled by fo­reign investments, resulting in continuing outflow of capi­tal.

We are all affected by the condition of the economy. We worsen that condition as we continue to patronize foreign goods at the expense of local industries. So, before indul­ging our preferences, we must first seek to build our national economy, or suffer the conse­quences. We need to take a long-term view. If the econo­my does not recover and is not rebuilt on the strength of local productivity, we all sink with it eventually.

Trading, Wholesale/Retail
(Tumatangkilik sa Mamimiling Pinoy)

Consumer net­works by geogra­phic clusters must estab­lish mechan­isms that free them from the clutches of unscru­pulous traders. Re­tailers can consolidate in a com­mon-services cooperative that will do the volume purchase, so that as a cooperative they perform the wholesale func­tion. A worker coop can ope­rate the actual purchase and de­livery function, while the retail­ers are the investors and the subscribers. The workers coop will not be after unfair advan­tage by itself, as it will be a member of a trading coope­rative network participating in the sharing scheme.

A Credit Coop can be a partner providing credit line to the Trading Cooperative. The trading cooperative can have an investment in the credit co­operative, or the retailers can become members of the credit coop and avail themselves of concessional group loans. Re­tailers of fruits, vegetables, dairy and other items sold in volumes daily can form a com­mon service cooperative for wholesale buying. Alongside many of these retailer/whole-­saler cooperatives there can be a sup­ply service for sari-sari stores and a com­munity - based network of households. For example, wholesale trading of rice can be planned for household delivery. The consumer network places the order, the Credit Coop finan­ces the bulk purchase and pays the supplier; and the house­holds pay the cooperative.

Pinoy Quality Products=
(Dapat Tangkilikin ng Mamimiling Pinoy)

Necessarily, quality Filipi­no products must be produced which can compete with im­ported ones in quality and price. In fact, there are already many products produced by Filipino manufacturers which are of high quality and are being exported. All of these products have to be promoted together so that the range of local products can be known and appreciated and can help convince households that their needs can be met by local producers.

In the case of certain goods that are still substandard, pro­duct development support can be negotiated and pro­vided. Discriminating buyers can com­mit to buy Filipino pro­ducts and demand quality from local producers in the name of rebuilding the local economy. The credit coope­ratives can play a big role in financing the production of Pinoy quality products.

Agro Producers’ Welfare=
(Tangkilikan ng mga Magbu­bukid at mga Mamimili sa Lungsod)

Producers and manufac­tur­ers are hard put because of taxes, the high cost of money, materials, machinery and man­power. Under a system where profits are paramount for the owners of enterprise, the costs, including wage of workers, have to be cut down. But under a different system based on the perspective of workers, what is paramount is employ­ment security. Profits can be small at the start and increased only through gradu­al build-up. Worker coopera­tives stand a better chance of surviving the present crisis.

Also, worker coops are a way to spread and multiply em­ployment. More employment means more people with pur­chasing power, a bigger mar­ket for Filipino products.

Among producers, the pro­ducers of basic commodities such as rice, crops and poultry continue to be poor. This is because the cost of production is high. They are at the mercy of traders for agricultural in­puts. To break this, farmers will need to shift to organic farming and no longer depend on expensive inputs.

Ultimate­ly, they ought to be co-owners of cooperatives producing ag­ricultural inputs, like fertiliz­ers, feeds and farm machinery.

The end-user should be co-pro­ducer or at least be an invest­or. As a consumer he will be entitled to discounts and re­bates. As worker he will have his wage for work contribu­tions. And as investor, he will share in the profits.

Small/Medium Enterprises and/or Workers’ Cooperatives=
(Tangkilikan sa pagpapalago ng mga Pagawaan at Nego­s­yo ng mga Magkakamanggagawa)

Small and medium in­dus­tries account for more jobs than the big corpo­rations.

The multiplication of SMEs therefore provides a better avenue for the reduction of unemploy­ment.

Worker Co­operatives are SMEs with the added advan­tage of be­ing owned by the workers and there­fore also pro­vide employ­ment security, for as long as the business is vi­able.

And even if a parti­cular business is no longer mak­ing enough money for the group, the coop can al­ways explore new business op­tions since they are the owners.

The credit coops will be doing the economy a great boost if they support initial capitalization of worker co­operatives.

Industrialization
(Tangkilikan ng mga Negosyo Upang Maitindig ang Malalaking Industriya)

Industrialization which in­volves heavy industries re­quires smaller industries that utilize the output of the heavy industries. Before heavy in­dus­tries become viable, there must first be the mul­tiplicity of down­stream indus­tries of the small and medium type.

Again, the Credit Coops can help lay the ground for event­ual industrialization by supporting the spread of numerous small and medium industries that in time will absorb the products of heavy industries, such as a steel mill. This process starts with a groundswell of small-scale lo­cal enterprises developing ma­ny products, and these, in turn set off the basis for the deve­lopment of much more pro­ducts, in a chain reaction.

=======

This process starts with a groundswell

of small-scale

local enterprises.

=======

It is the crucial role of credit co­operatives is to provide capi­tal loans or pro­ductive loans (not only the providential loans asked for) to members who would be en­couraged to go into entrepre­neurship.

Beyond Micro-Finance
(Tangkilikan sa Maliliit Tu­ngo sa Malalaking Pamumuhunan)

Credit cooperatives have largely provided the service of micro-finance and mostly to individual entrepreneurs and small-time traders and vendors. Through bigger credit coopera­tives, they should now look at financing cooperative busi­ness­es at the level of SMEs. Workers coops in manufact­uring, wholesale trading and largescale services all need ca­pitalization. The excess liquid­ity of millionaire cooperatives can be put to good use for these group enterprises. Part­nership arrangements will help spread the risk, even as ade­quate capital will become av­ailable. All worker members will become members in a pri­mary credit coop. And the pri­mary coop should avail itself of the mutual protection that the network and partnership setup offers.

of modest dimen­sions. Then, from there, the family can move on to a better dwelling as its in­come increases. And fi­nally, they can settle in per­manent homes. The rental in all various stages would be in­stallments for the final house.

Many children of poor fa­milies cannot complete their schooling due to lack of mo­-ney. But these families can be organized to plant and care for community forests. Their share of the income from commer­cial tree farms can be sub­stantial. And part of it can be reserved for the children’s schooling. Cooperatives can set up a fund to advance pay­ments for enrolment and study expenses, by co-in­vesting in such community forests. There are many other possibilities.

Cruzada...

---------------------------------------------------------------------------------------

BACK TO LSD-2 TABLE OF CONTENTS

To post FEEDBACK on this article, click HERE, join as member, and send your comment as a message.

.