On January 11th, in the weekly Rotary meeting of my club, our guest speaker was Jose Ma. “Boy” Montelibano. Montelibano is head of Special Projects of Gawad Kalinga. My Rotary Club has helped build 30 houses in Las Pinas in a squatter colony. But the Club’s commitment does not end there. A health center and a vocational center was proposed by our Club to the community.
Montelibano’s quote “in a country like the Phlippines where a majority of the people are poor, organizations and private enterprise cannot ignore the poor. Private Enterprise and non profit organizations has to provide development projects and poverty alleviation projects in order for the country to progress. Government projects are never enough and it is our experience that private enterprise are the catalyst of economic development.”
This quote of Montelibano is factual. Although government has planned the priority sectors in the economy wherein the resources of the country should be concentrated in, private enterprise is still the catalyst for economic development. It is still the visions and dreams of entrepreneurs that drive our economy. It is also the initiative of organizations like Gawad Kalinga that drive the poverty alleviation projects of private enterprise.
The Makati, Cubao, Ortigas areas were developed by private enterprise. The booming BPO and serivices sectors of the ecenomy are again fueled by private enterprise. Yet these entrepreneurs are not selfish individuals. Ayala Corp has the Ayala Foundation for its corporate social responsibility. John Gokongwei placed half of his wealth in a foundation to provide scholarships and school buildings for education and livelihood projects for the poorest of the poor. PLDT has invested in Gawad Kalinga projects and requires their employees to build houses for Gawad Kalinga.
One of the most inspiring stories of employment and job creation is the story of Ricky Reyes (Ricky Reyes Salons) and Les Reyes (Reyes Haircutters) that provided employment and training to thousands to beauty salon workers. They have also managed to make the beauty salon workers proud of their profession. Lamoiyan Corporation (the makers of Beam and Happee toothpaste) and Splash are local companies going against the big multinationals and succeeding in the marketplace. And they provide the employment needed to spur development. Jollibee, with its franchises, not only provides employment but wealth creation for its franchisees. And many of their franchisees have joined the Rotary or other organizations that engage in proverty alleviation project.
Unlike other Asian countries wherein development and poverty alleviation projects were initiated by their governments, in the Phlippine experience, private enterprise and private non profit organizations are the main movers of these development projects.
Even our infrastructure develoment are spurred by private enterprise. Government may give the directions but private enterprise still builds and completes the infrastructure.
It is largely private enterprise that has moved the Phlippines from a poor developing country to a middle/moderate developing country. But much has still to be done.
Economic development has to move from the large urban areas of NCR, CALABARZON, Cebu, Davao, Cagayan de Oro, Subic, Clark, Tarlac, Pampanga, Pangasinan to the poorer less developed rural areas. Local government together with private enterprise can initiate development in the rural areas.
It gets my goat when media and left leaning organizations try to find fault with private enterprise. They label private enterprise as heartless capitalist that take advantage of the poor and the helpless. It also gets my goat when politicians try to milk private enterprise as a spigot of funds for elections. They sometimes threaten private enterprise with taxes and laws that will limit ecnomic development. Idiots!
The only way to develop the country is to provide jobs and livelihood to lift the Filipino out of poverty. Private enterprise can do this.
Popularity: 3% [?]
I know, right?
Excellent diatribe against the left! These people do nothing but demonize and undermine what possibly are the only positive forces in this country that work significantly well, ignoring the fact that the socialist and communist models tried elsewhere had led to collapse and ruin the countries that tried them. Those countries now embrace capitalism.
Of course we acknowledge that there is such a thing as bad, ruthless, and wretched capitalism, but this does not invalidate the genuine concern and care generous entrepreneurs have extended to the less fortunate.
private enterprise can afford to be generous with corporate social responsibility projects obviously because these companies make sooooo much money. what goes into csr is surely just a fraction of profits. there must be other ways of contributing to development. like how about bringing down their prices for goods and services so that a wider public benefits…
Thanks for this post Tonyboy, and welcome to our merrie little band of swashbucklers and adventurers.
I think “private enterprise” is much-appreciated around here, and has a much nicer ring to it than “NGO-work” when applied to initiatives like Gawad Kalinga.
BTW, what in the world has gone wrong with GK? It seems to have died or disappeared. I know there was internal strife and I tried to follow the developments last year, but could really not make head or tail of it from the few articles I read.
Again, it is not as simple as that. Pricing a product considers so many factors to ensure an ongoing operation.
first they have the committment to their investors who are putting their money in the business in the hope that the return is more than the other investment instruments promise, ie. treasury bonds.
second, they have to plough back a portion of their profit to capital reserves for possible expansion in the future.
third, they have to consider the losses from obsolescence of inventories.
fourth, they provide for replacement of fully depreciated equipment and other assets used in production.
if the company is just going to produce low priced products to help people, they might as well put up a cooperative.
i rather applaud a corporation which contributes money to the charitable orgs than an NGO which officials make a living out of the contributions.
people who run non-govt orgs have to eat too, have families too, just like people who run government orgs
Ask less what your neighbors can do to help you and ask more what you can do to help your neighbors.
Ask less what your neighbor can do to help your neighbor and ask more what you can do to help your neighbor.
ask less how someone else can help you and ask much more how you can help yourself.
if you think that Rotarian Joc-Joc Bolante sponsored by a Rotarian FG to his post as Agriculture USEC, and made the disbursement of fertilizer funds during election time – the other Rotarians doing civic-projects could be just to spruce-up a tarnished image.
Very middle-classy post.
@JCC, I edited the following out from Tonyboy’s article, since I thought it wasn’t necessary,
“(my club is not connected with FG’s club except belonging to the same Rotary District)”
I know fully well that many rotarians have hearts of gold. As do most Filipinos. Now if there are bad apples, let’s leave the rotten one out of the basket and acknowledge the good ones who are actually trying to do some good..
i think any entity or individual, whether public or private, cannot help society just by giving things, e.g., money, houses, bayongs of foodstuff and rice. it must show how, and inspire others, to help themselves (except for the helpless infants, aged and disabled). as the old adage goes, teach them how to fish, rather than just supply them with it and thus make them think that they are “entitled” to, whether or not they work for, it.
It is not enough for the ‘good’ Rotarians to dissociate themselves from Joc-joc and FG. The Rotarians should have done more to police their bad apples, at the very least they should have expelled Joc Joc and Mike Arroyo. Self-congratulations, given the context in which it is made, leaves a bad taste.
cvj and Bencard,
I agree!
side-topic: kiva.com
Fil-Ams or Fil-French or Fil-Aussies who want provide microfinance loans to entrepreneurs from underdeveloped countries may want to look at kiva.com
Nick,
very honest of you to say that you have edited the post. but even without that gave away, some were able to discern a motive. :)
Side-topic: It makes me wonder if the the Filipino blogosphere is manipulated because there has been a few comments about Gaza but I have not seen any Filipino blogosphere comment about Sri Lankan journalist Lasantha Wickramatunga and his editorial “And Then They Came for Me.”
First of all , there are Large enterprise, medium size enterprise and small business. Entrepreneurs belong to the small business category or a start up business. True, it is known that large enterprise monopolize some of the many industries, making it difficult for market entry and survive.
Both large enterprises and politicians are conspiring against the people. It is not only the politicians who is milking , it’s both ways. The supply of money comes from the private enterprise, demanded by the politicians during election. After election, private enterprise will have no restrictions of its business dealing. It’s a free market for a corrupt country.
On Small Business, the government must provide training, seminars and low interest rates financing. Small business can be the backbone of economic development. Universities must offer courses/degrees on entrepreneurship both in the provinces and cities.
The title of your blog is applicable to small business. I have no comment with gawad Kalinga. I have heard horror stories, like commingling of funds :)
But true , large corporation should stop supporting politicians during election. The appropriateness and legality of allowed donations must be followed.
A donation is understood as a monetary or non monetary gift to a fund or cause, typically for charitable reasons.
It is clear that if a donation is given with the purpose of giving a company an undue advantage, it will be considered as bribery by most authorities.
There are numerous examples of companies being confronted with demands of donations and political party contributions. You will see them on billboards. It is common practice in our country that political parties ask for donations. Such demands can be seen as extortion. It can be difficult, and in most situations impossible, to prove that this is the case. Therefore it is important that a company has a CLEAR POLICY regarding donations.
Philippine Business Corruption Link
It is not only political parties that use mumbo-jumbo polemics and various propaganda-techniques when they ask for donations. Some even use threats — a cell-tower damaged or a grenade into a passeger bus — to reinforce their request for funds or goods. Some say that they can reduce the taxes that you pay (which, of course, has no effect no OFW’s). Then, there are DJB’s favorite groups —- those who suggest that they can take years off your stay in purgatory if you are supportive of their cause.
in addition to The Cat, prices of goods can be lowered in many different ways but it requires political will. The government can:
1. Increase supply ( suppliers) and reduce industry barrier to entry.
2. Decrease Tariff on shipping, remove corruption and a transparent port.
3. ease of doing business and enticing government small business loans. an awareness program would be good to motivate the young talented pinoy.
4. technology to manage databases, inventories and record keeping
5. infrastructure (land, sea and air)- this is the most important. it moves products/services without delay,
6. Educational infrastructure to produce talents and knowledgeable entrepreneurs.
I do believe that this government has failed the people over and over again.
But then again, there’s the other side of the story. Haven’t you heard of rich Makati businessmen paying less taxes than lowly government employees.
Sure, private enterprises are the engine of economic growth. But aren’t they, for the most part, driven by the profit motive? They will immediately get out of doing business in the Philippines once their operations become unprofitable.
Barya lang yung inaabot sa charity. Their likes would rather sponsor PBA basketball teams.
Better yet, why don’t we junk this loser mentality of expecting “good intentions” from private enterprise and government and rely a bit more on our individual capabilities to underpin our future prosperity.
That way we become less frustrated about the proverbial guava failing to fall into our gaping mouths. :D
Unlike other Asian countries wherein development and poverty alleviation projects were initiated by their governments, in the Philippine experience, private enterprise and private non profit organizations are the main movers of these development projects.
It is only proper that poverty alleviation projects, most notably microfinance undertakings, be done by the private sector whether profit or non-profit, simply because those undertaken directly by government entities even with the best of intentions have typically been dismal failures. And microfinance principles work best without government babysitting.
To be fair, even here in the Philippines serious microfinance undertakings had their starts in the government sector, but may now have relegated government to very indirect roles.
Benigs,
you want scalability and your framework to work? I think Manolo is presenting a better view over yours.
Here it is: Ilumina ITV
Benigs, it’s not the people of this country. It is the solution.
Agree. Private enterprises execs. sweat it out how to make money. NGO execs. sweat it out to spend the money.
Who knows how they are spent?
There was one executive in a non-profit who charged his cosmetic surgery to the operating expenses of the org. His justification was that he needed good personality to raise potential donors. He ate in expensive restaurants charged to the expense accounts. Again the justification was he was courting donors.
What also happens (especially in 3rd world countries) will be bosses (of not-for-profit, for-profit, government, religious or quasi-religious) obtaining sexual and other favors from their employees. Which, of course, can be the employee using sex and other favors to get advantageious treatment from their boss or their boss’s boss.
The business of business is profit. If there were real markets in the Philippines (the mechanism that is fair and free) existing the number of wretched poor would not be so great.
Corporate social responsibility extends simply to ensure that stockholders make money.
This righteous business folk are no better than the left who want to socialize the tuyo industry.
Why the hell are you building homes for the poor and giving it away.
Did you ask yourself why there are so many of them who are barefoot and homeless.
How much of private profits are there available in the Philippines to give away to the multitudes who are poor.
For those who have Ricky Reyes franchise. You can start franchising internationally and move to the U.S.
As long as you can prove that your profession hairdressing and giving manicures can sustain you and you have some savings to put up a beauty parlor in the States one can become a service provider and move to the States.
…especially also in 3rd world…
especiallyalso in 3rd world….[ use strike ... ]