ACCELERATING POVERTY REDUCTION �THROUGH SOCIAL ENTREPRENEURSHIP

Ateneo de Manila University | 29 June 2012

POVERTY

INEQUALITY

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During this period our economy experienced a modest growth at an average of 4.8 % annually.

23.1 M

…the richest 20% of the population “outspent” the poorest 20% by more than 8 times and that the Philippines has the most unequal income distribution compared to Thailand, Indonesia, Malaysia and Vietnam.

Wealth created by the national economy largely goes to a handful of private corporations with households getting less share over time.

Social Enterprise, Fascinating Organizations

• Create wealth + distribute the wealth they create to the poor they serve, in the process building the assets, capability and confidence of the poor to overcome poverty

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• Create profit or surplus with and for the poor

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• Put the interest of the poor first:

House Bill 6085�Magna Carta for Social Enterprises

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“… a National Poverty Reduction Through Social Entrepreneurship Program that envisions the identification and development of strategic economic subsectors with the potential for growth and where the poor are concentrated or could be major players.”

House Bill 6085�Magna Carta for Social Enterprises

What are ECONOMIC SUBSECTORS?

• networks of related actors and enterprises performing various functions in value chains
• these actors and enterprises transform raw materials into finished products, or develop services, and distribute or provide them through market channels to final consumers
• they may be identified by key raw material source, by finished product or final service provided

FISHERFOLK & COCONUT FARMERS

COCONUT FARMERS

• 25 percent of agricultural lands are devoted to coconuts covering about 3 million hectares
• 700,000 of the 1.2 M hectares of CARP balance are coconut lands
• Coconut products remain the biggest single export-earning agro-based crop

Huge potentials exist for engaging the poor in social enterprises in such subsectors as coco sugar, desiccated coconut, virgin coconut oil, coco fiber and cocopeat.

COCONUT FARMERS

Foundation for a Sustainable Society Inc:

• 10 B coconut husks from the 3 M hectares of coconut lands = 1 B tons of fiber and 2B tons of cocopeat (or dust) per year = Php10 B to Php15 B.
• Processing the fiber and cocopeat into higher value products = employment and livelihood opportunities for at least 3 M people in various coconut communities

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“…provide employment and livelihood opportunities to all 1.2 M coconut farmers and 1 M fisherfolk nationwide.”

COCONUT FARMERS

• 27% of SMC shares of stocks are owned by government and are “to be used only for the benefit of all coconut farmers and for the development of the coconut industry” – Supreme Court (24 January 2012)
• Total shares = P56.5 B
• As of January 2012, it has earned dividends amounting to almost P9B

House Bill 6085�Magna Carta for Social Enterprises

Support programs:

• special credit windows supported by a guarantee fund pool so that social enterprises could avail of non-collateralized loans;
• a comprehensive insurance system so that social enterprises and the poor could be protected from the impacts of climate change and natural disasters;
• a research and development program to assist social enterprises undertake continuing innovations;
• a market development program based on the principles of fair trade that would allow social enterprises to grow; and a capacity development program to assist social enterprises and the poor manage the challenges of scaling up

House Bill 6085�Magna Carta for Social Enterprises

• Alter Trade Group in Negros Occidental - over 800 asset-less, powerless sugar workers turned agrarian reform beneficiaries
• AFFIRE in Southern Leyte - innovated on manufacturing a diversified set of coconut-based products

MARAMING SALAMAT PO!

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