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The Social Equity Model for Employment and Income: The Reality Check in the Social Enterprises of the Sovereign State

Updated on March 17, 2011
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Christopher F. Bueno is currently the Dean of the College of Education, University of Northern Philippines, Vigan City.

       The national development of the sovereign state has always provided the social equity mechanisms such as the following:

1. The provision of technical support and capacity building in the support of the livelihood programs.

      The technical support is usually given as to the expertise of the national government on specific social and economic services. It must be noted that as part of the development cycle the national government has been orienting, training and educating the stakeholders about the implementation of the technical support of such program.

a) Agriculture- The agricultural technical support in crops production, insecticides, infrastructure facilities and post-harvest facilities.

b) Forestry- The forestry technical support for the reforestation program, forest management, seedling bank and sustainable development projects

c) Fishery- The maritime and fishery support in the aqua-culture development, deep sea fishing, reefs and corals reservation,

d) Trade and Industries- The provision for technical support for the facilities and industries under the vocational trade and industries.

e) Other economic services- The economic enterprise such as cooperatives, and service-oriented occupations.

     The national government has provided budgetary allocation under social and economic sectors as pro-poor programs which will bring job generation and increase the income of the people. This is the direction of the improve quality of life (IQL).

2. The financial assistance and grants for the operation of the livelihood programs

     The national government continuously support the establishment of the livelihood programs would not only for the technical support for the facilities and equipment, and the capacity building program which marketing strategies are integrated but also financial assistance granted by the government financial institutions and commercial banks. The financial grants are use to buy the necessary production facilities and equipment including the wages of the workers.

3. The infrastructure support and development on the beneficiaries of the micro-enterprises and medium scale enterprises.

     The national government agencies such as on trade and industries, agriculture, fishery, forestry, transformation, communication and etc. have been providing the necessary infrastructure support and development particularly of farm-to market roads for the beneficiaries of the micro-enterprises and medium-scale enterprises. The bulk of the national budget under the capital outlay has been used in this endeavor including the construction of broads, bridges, hospitals, schools and national roads.

     The policy guidelines for the social equity programs in social enterprise in the development of livelihood, micro-enterprise, and medium-scale enterprises:

  1. The creation of cooperatives, and social enterprises.

       The community needs to come as a group to organize a cooperatives and social enterprises. The enterprise shall be managed by them:

a) Organizational Resources

b) Financial Operation

c) Management Operations

d) Field Operations

  1. The support of the NGA and LGU for the provisions of technical, management, infrastructure and financial support. The provisions of the MOA and MOU including Budget Appropriations for those identified programs.

The identification of the priority development projects of the NGA and LGU on the following:

a) The technical support shall describe the technical operations on the identified beneficiaries for the coordination in the production of inputs.

b) The management support through the implementation of MOA and MOU for the continuing development assistance for the operation of the enterprise.

c) The infrastructure support of the social enterprise beneficiaries for budgetary allotment in the economic services.

d) The financial support through the complementation of the government financial institutions and commercial establishments for the MOA, and MOU as evaluated in viable or feasible enterprise.

Contemporary Issues and Concerns on the Social Equity Mechanism

      The national government advocated international funding assistance and grants through the social and economic services particularly on education, health, infrastructure and job generation. The root cause of poverty is unemployment and low income that could not support basic needs of life. In the global community, it has been addressing the employment problem for centuries now. The political advocacy of communism, socialism and capitalism has been able to focus the problem of poverty. Recent time, only the capitalistic structure has succeeded in solving the problems of unemployment and low income because the proactive corporate enterprise that provided enough jobs and incomes for the poor.

      The international community constantly providing all the necessary technical, management, infrastructure support for the sustainable development programs, cooperatives, gender and development, livelihood programs for agriculture, forestry, aquaculture, vocational training and other enormous international projects but it cannot sustain to become corporate enterprise.

     The national government has supported the strict standard of the international funding agency but in the long run failed to sustain the programs. It must be noted that these programs where properly identified national development economic councils for the priority investment and infrastructure plans by even providing concrete master plan and development plan with all the support of the NGA and LGUs. There is also strict protocol or procedure in the development and management cycle from the identification of the projects, proposing feasibility studies, granting the required financial assistance, the implementation of the project until the monitoring and evaluation of the project.

     Why can a community livelihood programs, micro-enterprises, cooperatives cannot last long for even10 years? For almost 50 years of the existence of international funding institutions of developed countries failed swiftly to address the success social enterprise for the social equity programs? Is international model of development fail to suit the needs of the third world and developing countries? Is the sovereign state has inefficient and ineffective government to address this issue? What then should be the right remedy to issue this cycle of failures of the sovereign state and international funding agency?

     There seems to be a problem in the final stretch of the social and economic development for the employment generation program that failed to address by the sovereign state and international funding agencies. They have the belief that “dole out” may not be the case to put solution to the problem. Or let them stand alone once the whole cycle of development has been placed with a grade of “excellent” in the technical, management, infrastructure and financial support as all provided by the international funding agencies. I believe the sentiments of the international funding agencies about the “equity or share” of the sovereign state for any development projects. However, once the development project has been given to the sovereign state there are now complications on its sustainability. Why?

1. The incompetence, inefficiency, and ineffectiveness of national and local government officials to coordinate and manage the development projects not to mention the problem of graft and corruption, business interest, and other political strife the complicated the situation once the development project is implemented.

2. The organizational process of the development project for social enterprise have all the ideal action to grow the enterprise but seemingly in the long run the financial resources cannot support the market and personnel staff.

3. The development cycle teaches the marketing and promotional plan, from marketing mix to segmentation. Only to find out the product could not support the competitive corporate nature of the business system.

4. The social enterprise has no enough cash to buy the input materials and divested to the local producers. There is no enough economic impact in the production of the product for this social enterprise.

5. The local products on this development projects failed to penetrate in the supermarket, stores, and malls as the primary demand of this product.

      In order to address these issues and concerns in the development program for social enterprise such as cooperatives, micro and medium scale enterprises, local trade and industries , there is a need to shift an innovative approach to economic development to address these problems through the “Social Equity Model of Economic Development” which generate high employment and income.

     This is actually an “ Economic Theory of Dynamic Strategy for Social Equity Programs” designed to generate high employment and income that will to totally wipe out the problem of “poverty” in Asia and Africa. It should be noted that the International Development Goals for the “Social Equity Models for Employment and Income “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 shall 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 strategy shall 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.

Management Team of the Social Equity Model

      As provided in this economic theory, it must 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 .

1. Management Support

     The management and operation of the organization which include the election of board officers, personnel staff, accounting personnel and operation management, field and management staff. The formulation of policies and guidelines for the effective implementation of the organizational goals.

     There is still the participation of the international funding institution and national government agencies (for trade, investment, industry, corporations, export processing zone, and allied enterprises) which shall be coordinating the private enterprises for the marketing and promotion of the products:

2. Technical Support

a) The direct management as Board of Trustees in the formulation of policy guidelines of the social enterprise.

b) The supervision of the social enterprise such as in handling packaging, distribution and sales of the product. The support team shall provide technical support from the team in the conceptualization and the market promotion of the product. Remember, the social enterprise are owned by poor people they are only expected to produce products

c) There shall be a clustered social equity enterprise for their commercial establishments such as grocery store. In the linkages and partnership through merchandising the local stores, grocery stores, supermarkets, commercial centers and malls shall provide product sections for the enterprise.

3. Financial Support

a) There shall be immediate payments of all raw materials and finished products on cash basis or cash on delivery to those stakeholders of the social equity enterprise.

b) There shall be funding assistance on all technical support in the operation of the social enterprise.

3 Economic Support

a)Creation of Social Equity Enterprises in public market to provide a low prices of wide range of products such as canned goods,milk products, poultry products

Warning Signs in the in Implementation of the Livelihood Programs, Micro-and Medium Scale Enterprises, Cooperatives, Sustainable Development and GAD Enterprises, Local Trades and Industries .

“The poor people are inherent creative to produce agricultural crops, handicrafts, souvenir items, food products, conned goods and other native products that could compete in the corporate world. Someone should assist them to market their product then no one will become for once they have income and employment out their product initiative.”

     Don’t expect that the poor farmers, fishermen, laborers, and artisans, shall work for marketing and promotional programs.Let the Social Equity Team presents the product designs just like in the corporate world. But, let them decide which of the product design presented worthy in the market. The payment of the social enterprise products shall be “Cash on Delivery”(C.O.D.)

     It is the responsibility of the Social Equity Enterprise Team to coordinate and conduct linkages and partnership on all concerned national government agencies and private corporations. There is policy guidelines just like the power of eminent domain as a social bias mechanism to promote and support the local products designed by the Social Equity Program in local stores, supermarket , mall and commercial centers.

      These are the conduits of cash fluidity and the exchange of wide range of products for the social equity enterprises such as rice, wheat, corn, vegetable, fruit, tobacco, fish, handicraft, and other products available in agriculture, forestry, coastal areas, urban centers for trade and industries. These products are not properly sold from its potential market , national government provides so many guidelines and technical support but no effectively handled the social enterprise.


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    • Didge profile image


      6 years ago from Southern England

      Really useful hub. Great job!


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