Rural revitalization programs: Too many & out of focus?

Almost two decades ago, I was invited by the Eduardo Aboitiz Development Studies Center to lecture before directors and managers of a handful of cooperatives in Cebu. We tackled, among others, subjects on accounting, finance, management and entrepreneurship. Certainly, these topics are so ordinary and totally devoid of challenges to some who are even making a living out of it. However, knowing fully well that these were to be facilitated before participants who are finance and accounting non-literate, the undertaking was very interesting.

Then, two of those who attended were officers of Lamac Multipurpose Cooperative (LMPC) of Lamac, Pinamunjahan, Cebu. These two officers (a midwife and a teacher) were just regular attendees trying to catch every step towards literacy in an entirely different field of endeavor. 

Today, with these two leaders (Ellen and Delfin) at the helm, LMPC brags about having 14 microfinance offices, a rice mill, a resort, a piggery, a bakeshop, a grocery store, an orchard, and a vegetable farm. Consequently, they are able to provide employment opportunities and help develop entrepreneurs out of their members.

Undeniably, there is relative success in the country’s cooperative movement. However, the same cannot be said of the other rural revitalization programs. To recall, the government implemented a handful of rural revitalization programs. This include, among others, the Barangay Micro Business Enterprises (BMBEs), One Town One Product (OTOP) and the most abused and graft-ridden Comprehensive Agrarian Reform Program (CARP).

Unknown to us, this BMBE act’s purpose is so noble. This is supposedly a better version of the ineffective “Kalakalan 20”. It is passed to hasten the country’s economic development by encouraging the establishment and growth of BMBEs. As the barangays are considered the source of entrepreneurial talents, it envisioned an integration of those in the informal sector or in the underground economy with the mainstream.   By granting incentives and benefits to these BMBEs, they are supposed to sprout all over the country. Consequently, they will be able to generate employment and alleviate poverty.

As adequate capital is necessary, credit facilities were made available too. The Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), the Small Business Guarantee and Finance Corporation (SBGFC), and the People's Credit and Finance Corporation (PCFC) are mandated to set up a special credit window that will service the financing needs of BMBEs registered under this Act consistent with the Bangko Sentral ng Pilipinas (BSP) policies, rules and regulations. The Government Service Insurance System (GSIS) and Social Security System (SSS) are likewise mandated to set up a special credit window that will serve the financing needs of their respective members who wish to establish a BMBE.

 Unfortunately, however, this law has remained seemingly dormant because of the local government executives’ indifference. 

On the other hand, just like the BMBE, the Department of Trade and Industry (DTI), together with the LGUs, is also spearheading the implementation of OTOP. Hopefully, with the DTI at the helm, we may not just be able to promote our products but develop as well a town that could be like Yufuin (in the Oita Prefecture of Japan-where OVOP originated). A town that plays host to more than 3.8 million visitors a year despite having only less than ten thousand population.

Taking the first big step, early last year, the DTI organized a familiarization tour to the municipalities and cities of Carcar, Argao, Lapu-Lapu, Liloan and Carmen. Understandably, these places are easy picks because of its fully developed products or services. These are products or services that have been there for decades or even centuries. Their primary concern, therefore, could only be an access to a reliable market to remain robust. Thus, this familiarization tour for guides and operators was the most appropriate undertaking to do at the moment. 

 However, like Japan’s Oita Prefecture’s One Village One Product (OVOP) movement, the ultimate objective is rural revitalization. Portraying the successes of these accomplished entrepreneurs might help but will not certainly serve as the model for the rural area’s aspiring ones. Needless to say, some are even owned by millionaires who are just recipients of these moneymaking inheritances. Entrepreneurs who never tried starting from scratch.

A model is imperative and necessary. There is an apparent need to establish a trail from conceptualization to realization. Certainly, DTI can play a major role (as they have always been) in developing them.

The key is making use of the facilities that we already have. Facilities could be in the form financial support or enabling laws that may encourage would-be entrepreneurs in harnessing available resources. Or, could be in the kind of incentives that can push them to put to good use their inborn talents or developed skills in actualizing wild ideas and build organizations to help ensure commercial viability.

Raw materials and labor, prerequisites of OTOP, are abundant in the rural areas. Therefore, the ingredients to this program’s success are just waiting to be tapped. Like any undertaking, however, financial support is crucial and necessary. Whether this OTOP has enough development funds, we aren’t privy to that. Certainly, however, a law was passed in 2002 that might be able to help ensure success of OTOP, the “Barangay Micro Business Enterprises (BMBEs) Act of 2002” or RA No. 9178.

Since both programs (OTOP & BMBE) are under DTI’s guardianship, then complementing efforts can be easily initiated. Dangling the OTOP program before would-be BMBE registrants could be a good start. Simply put, OTOP-for product development and BMBE-for incentives and financial assistance. Potentially, this inseparable pair of honest to goodness rural revitalization programs can liberate the majority from this age-old oppression called poverty. These could be the best duo for success, a perfect combination.

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