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Economic Theory on the Development Strategy for Social Equity Programs

Updated on April 2, 2010
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Christopher F. Bueno is currently the Dean of the College of Education, University of Northern Philippines, Vigan City.

      The international community and sovereign states are always in track of defining the development strategy for the pro-poor program to attain the "Improved Quality of Life" (IQL)of the stakeholders. These development programs are address to promote the generation of income and employment to satisfy the basic needs of the poor.

1. Sustainable Development by providing alternative employment and income of the poor in areas such as agriculture and forestry.

2. The Gender and Development Program to sustain the employment of women by creating micro-enterprise based on their strategic expertise to create an additional income.

3. The Peace and Security Programs not only in the support of infrastructure development but alos job-generation program to reduce the internal conflict in the community.

4. The Cooperative Enterprise Program on collective effort to produce credit line, consumer products and other service oriented jobs.

5. The International Funding Assistance and Grants with the Equity Support of the Soveriegn State on employment generation and micro-enterprise.

6. The National Government Agenda on Anti-Poverty Alleviation Program to provide support on infrastructure needs and community enterprise to attain self-sufficiency of the poor.

7. The Employment Generation Program and Liveliihood Programs by the national government agencies to provide an alternative income and employment to attain a better social services and economic services mechanism to the poor.

      These have been adopted almost all regions of the world with the primary international development goals in reducing the poverty incidence and providing the basic needs of the poor. The development strategy is through employment and generation program as social equity mechanism to finally address the concern of the poor. There are basic international standard tools to find out the international grants and assistance which is also adopted by the sovereign state to translate an effective and efficient development programs on social and economic services. These are the use of strategic management tools,Monitoring and Evaluation Programs, Feasibility Studies, Logical Framework Analysis and other tools to ensure the viability of the project as even supported by CBA,NPV,IRR and CEA.

    The effective and efficient way to know on the quantitative manner to know the success of the development programs for social equity mechanisms may entail so much on mathematical interpretation that C<B, NPV + or = the value of ROI. The CEA for the social services must respond to high level of effectiveness to conform the criteria set by the international funding agency and the national government.

       The economic value on the assigned development project has the value of even more 100 percent on certain period of time. The higher the social and economic benefits may translate better for the IQL. There are criteria and indicator of the poverty threshold line that those benefit of the development programs and project for the social mechanism systems by the international funding agencies is usually below 50 percent on the poverty threshold line or even below 20 percent. From the mean score of 20 percent. For example, 300 dollars may be with the line of the poverty threshold line, the family income for below 20 percent may 60 to 100 dollars on monthly support for their basic needs.

      Let us say, 500 dollars may reflect the IQL at the minimum level it could translate a better social and economic life to pay the basic necessities of life. Imagine that the countries in Asia and Africa have an average range of 100-200 dollars monthly income to live in better life without any comfort of living as you can find in the regions of Europe and America. The International Funding Agencies and Sovereign States are humbly proud to tell their accomplishment on country report to reduce the poverty incidence based on their international strategic move to totally eradicate the poor people in Asia and Africa.However, the country report on quantitative figures have not fully accomplished their development goals as being presented by comparative analysis on the monitoring and evaluation programs. Out of the 100 percent implementation of the development strategy for the social equity mechanisms only 20 percent have strong indication of sustainability by the support of corporations. There are only 10 percent rate of success as to the sustainability on the economic enterprise for 5 to 10 years. The remaining 70 percent that have been accomplished may go back the same cycle for the impoverished people on those areas whose occupation is farming, fishing only simply a laborers.

      The development strategy of the poor for the social equity mechanism must have a new economic approach to prevent the cycle of natural death as implemented by the international funding agency and the national government. There are full proof and indications of the high rate of success but the sustaining effect of the development program is catastrophic. The economic theory of dynamic strategic on social equity mechanism relies on the development sustainability to ensure the 100 percent rate of geometrical successions of benefits.

Economic Theory of Dynamic Strategy for Social Equity Mechanism

International Development Goals

     The development goal is to sustain the employment generation program to attain the modest economic and social impact on the pro-poor program by initiating a social responsibility team to provide technical, management, financial and marketing support in the social equity program.

     The development mission to provide sustained technical, management, financial and marketing support through the complementary process by linkages and partnership with the public and private sector in the development of social equity programs of the stakeholder.

The development objectives in the social equity programs are

1. Continue the International Standard Management Program of the International Funding Agencies on the implementation of their development strategies of the social equity program for employment generation and creation of development enterprise such as micro-enterprise and medium scale enterprise to the stakeholders.

2. Create manage team for the social equity program by the sovereign state for the sustained technical, management,financial and economic support on the development enterprise implemented by the International Funding Agencies .

3. Provide development policy guidelines in the implementation of the social equity programs as employment generation program and micro-enterprise development for the stakeholders.

4. Create an Operational Management Team for the Social Equity Programs for coordinating centers,field support,institutional linkages, ME strategies , financial and management support.

5. Provide the partnership and linkages with the national government agencies such as trade and investment, commercial banks, export and import bureaus,and business centers.

6. Create employment agency for the job generation program for the micro-enterprise or medium scale enterprise.

7. Implement in sustained way the production,distribution and marketing of social equity good and services

8. Develop the marketing mix and segmentation of Social Equity Goods and Services

Development Strategy

1. International Standard Management Program

    There are no international changes as to the development policy of the international funding agency on the strategic planning to the implementation of the social equity program.It is usually the prerogative of the international funding agency to implement program that may best their strategic interest of the social equity program. The policy guidelines are in place on the identification of the pro-poor programs such as sustainable development, gender and development, job generation and micro-enterprise development.

2. Management of Social Equity Mechanism

a) Development Policy Guidelines on Sustained Support by the National Government and Local Government Units.

b) Operational Management Team of Social Equity Mechanism

1) Management Team Coordinating Support

2) Management Team Field Support and Institutional Linkages

3) Financial and Marketing Team Support

4) Evaluation and Monitoring Management Team Support

c) Complementary Partnership and Linkages with the national government agencies such as trade and investment, commercial banks, export and import bureaus, business centers.

1) National and Local Government Support Team on Social Equity

2) Local and National Trade and Investment Support Team for the Marketing Program

3) Business Centers Coordinating Centers ( Malls,Supermarket and Local Grocery Stores)

4) International Marketing Support and Quality Management

5) Commercial Banks Support

d) The employment agency job generation program for the micro-enterprise or medium scale enterprise.

e) Production, Distribution and Marketing of Social Equity Goods and Services.

f) Marketing Mix and Segmentation of Social Equity Goods and Services

     The implementation on the Economic Theory of Dynamic Strategy for Social Equity Mechanism may provide an effective and efficient way to implement the pro-poor programs that generate jobs or employment by the creation of the institutional enterprise. There are no problems of the International Funding Agencies about the implementation the pro-programs including the job generation in the Sustainable Development, Gender and Development, Micro-Enterprise Development and other development programs with ROI or NPV.

    By this social equity program, the CBA,NPV and ROI have tremendous impact as to the job generation and multiplier effect on investments. These are the positive economic impact of the designed social equity program.

1. The CBA, NPV and ROI have a 3 to 4 times multiplier effect as to the economic analysis and the potential sustainability of the program. Assuming that the range monthly income of the stakeholder is $100-$300, the multiplier effect on sustainabilty at minimun rate of $500 on the five year period. The potential market value for consumer goods may reflect to almost 150% from the same range.

2. The sustainability of the program of the stakeholders may have beneficial reward for almost $200 once the enterprise sustained its peak in the market. The creation of products and services may rise on depending the capacity of the geo-political areas based on its productiveness to create a market from the micro-enterprise being developed.

3. The vibrance of the job generation program is addressed to the communities were potenrtial product market has existed. The cash exchange on micro-enterprise product including the raw material sells may provide cash liquidity in the domestic market. On the other hand , the maturing enterprise that may be strategically invested for the international trade may provide the expansion of corporate enterprise.

     The industrialized or developed countries have one formula in economic growth and development that is the " product marketing",as simple as that in steering the economic enterprise of the corporate world. This economic theory is based on the mass based-enterprise with the support of the private-public sector to market the product being produced. The problem of development assistance may left the stakeholders hanging once completed the project cycle of  development. Let the sovereign state do the rest of the work....Well.. Catastrophic Governance may come in...Why? Let us put the issue  of corruption,red tape,bloated bureaucracy and forms of mismanagement. Whether we like it or not that's the case. We cannot do otherwise because the poor people mostly existed from the countries that we are giving grants and assistance to provide job generation program.


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    • bohemiotx profile image

      Joffre Meyer 6 years ago from Tyler, TX

      I like the start of this essay by pointing to agriculture as a form of sustainable development for the poor. The urban gardening movement testifies to sustainability. Detroit has become a leader in urban gardening, thanks largely to Mayor Dave Bing. Anywhere you have lots of vacant land or crumbling deserted houses, a vegetable garden could improve it! Looking forward to studying this article later.