OTOP & BMBE: Laudable programs LGUs do not support

As war rages on in Libya, expect unusual increase in traffic in the country’s premier international airports. Unfortunately, however, it is not for good. These airports will not be filled with arriving moneyed tourists, but mostly, returning penny-less overseas Filipino workers (OFWs). In all likelihood, therefore, this sad development shall certainly aggravate the country’s already worsening unemployment problems. With these unfortunate realities, expect more families to languish in abject poverty.

In containing the downside of these unfortunate events, expect this government to go, as usual, for options that are popular. These will all be temporary solutions that are so familiar. 

To recall, in September of last year, the Aquino government had subserviently acceded to the traditional politicians’ ways, “dole-outs”. Worst, this government tried to clip the wings of the National Food Authority (NFA) by transferring the agency’s annual P8-billion rice procurement subsidy and consequently expanding that of the Department of Social Welfare and Development (DSWD). This simply means, the same “dole-outs” to the same panhandlers but taken out from the other pocket. 

Like the NFA’s price subsidies and DSWD’s cash transfer programs, these initiatives as solutions are mere perceptions. These are just like painkillers prescribed for cancer patients. These might take out the pain momentarily but not cure it. Precariously, these temporarily solutions are disguising as permanent.

Unknown to us, we have programs that are meant of to solve this menace. One of these programs is the Barangay Micro Business Enterprises (BMBE). The 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.

To minimize the risks in lending to the BMBEs, the SBGFC and the Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) under the Department of Agriculture, in case of agribusiness activities, were also authorized to set up a special guarantee window to provide the necessary credit guarantee to BMBEs under their respective guarantee programs.

To make sure this law succeeds, a BMBE Development Fund was set up with an endowment of Three Hundred Million Pesos (P300,000,000.00) from the PAGCOR. The SMED council is administering this fund. Supposedly, DTI, DOST, UP ISSI, CDA, TESDA, and TLRC may avail of the said Fund for technology transfer, production and management training and marketing assistance to BMBEs.

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.

Just like Japan’s Oita Prefecture’s One Village One Product (OVOP) movement, the ultimate objective is rural revitalization. The key is making use of the facilities that we already have. Facilities could be in the form of 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. 

Incentives and benefits are too tempting to ignore. While BMBEs shall be exempt from income taxes, LGUs are likewise encouraged to either reduce or exempt these enterprises from local taxes or fees. On top of these, BMBEs are exempted from the coverage of the minimum wage law. 

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.

Indeed, the government is not lacking in programs for the poor. While some are viewed as dole outs or political bribery, others are sincere and realizable. The adoption of Oita prefecture Gov. Hiramatsu’s OVOP (OTOP for us) is one of the best options. The Barangay Micro Business Enterprise (BMBE) Act is the other. These are two complementing programs that are both workable.

Unfortunately, however, these laws have remained seemingly dormant because of the local government executives’ indifference. Entirely implementable at the local government level, we can only surmise on the reluctance of politicians in supporting these programs. 

First, they don’t want to implement programs where they cannot affix their photos (where a top Cebu LGU executive has immeasurable fondness) on since it won’t earn media mileage. Secondly, they don’t seriously consider programs that shall truly emancipate the poor from the bondage of poverty. They are leaning largely on programs that shall truly make the majority of our countrymen their unequivocal parasites. These are willing parasites who are blindly ready to die for them as they continue to satisfy their unquenchable thirst for power and perpetual hold of their respective turfs.

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