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Tangkilikan philosophy 2


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Tangkilikan Philosophy- Theory and History in the Philippine context. A philosophy of the National Economic Protectionism Association (NEPA) since 1934, it is expressed in the slogan "pagbutihin, paunlarin at tangkilikin ang sariling atin" or the Filipino First Policy.

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Tangkilikan philosophy 2

  1. 1. Tang kilikan Philos ophy in the Philippines Dean Jorge V. Sibal < >
  2. 2. Tang kilikanand the National HeroesThe philosophy of Rizal and Mabini on nationalism and protectionism: Jose Rizal A free and self- reliant economy is an indispensable foundation of national Apolinario independence Mabini
  3. 3. Tang kilikanand theNationalHeroesThe philosophy of Rizal and Mabini on nationalism and protectionism: Dominance of Filipinos over the country’s economy and resources through government protection and promotion of domestic industries.
  4. 4. Rizal and Mabini onnationalism and protectionism rooted to the neo-mercantilist philosophy of Friedrich List & Alexander Hamilton.
  5. 5. F. List & A. Hamilton- nationalism and protectionism Rejected free trade and advocated-  protection of domestic industry & market against foreign encroachment and unfair competition from powerful alien-controlled companies.  active government regulation & intervention in commerce and industry to realize the growth of the economy.
  6. 6. Rizal and Mabini onnationalism and protectionism Rizal organized the La Liga Filipina in July 1892 as a national organization of Filipinos. Its Constitution stated: “Mutual protection for all members. Any member may recognize all the others to patronize him in his business or profession. He may request for aid or capital for some enterprise or business when funds are available. If he buys from firms supported by the Liga, he is entitled to a reduction in price”. (Luna-Orosa, Severina 1902)
  7. 7. La Liga Filipina
  8. 8. Economic nationalism duringthe colonial years “Mercantilist philosophy, the earliest form of economic nationalism, … puts the interest of the local economy above all considerations” (Lichauco, Alejandro 1985) “The Chinese who, to a significant degree, helped in the growth of the local economy since the colonial years, became the convenient scapegoat” (Golay, Auspach & Pfanner 1969)
  9. 9. Tang kilikan from the labor pers pective Don Isabelo de los Reyes and Dr. Dominador Gomez, leaders of the Union Obrera Democratica (UOD), the first labor federation founded in Feb. 1902 advocated-  Popularpatronage of local industries & products [which] were repeatedly raised & urged in various workers’ rallies, pickets and conventions, along with the overriding demand for Philippine independence.
  10. 10. Don Isabelo de los Reyes and Dr.Dominador Gomez Union Obrera Democratica
  11. 11. Dr. Dominador Gomez The growth of local  “Every dollar of industry [is] for the American capital welfare of the labor invested in these sector and … the islands is a nail in enhancement of a the coffin of self-reliant and Philippine independent nation. independence- Gomez, 1935 (Dava-Severa 1935)
  12. 12. Don Isabelode los Reyes “[The] development of local industry  “Unionism”, meant not only more according to de los businessmen but Reyes, “was aimed also more factories to achieve the & greater jobs and longed-for alliance employment of labor and capital” opportunities.” (Constantino 1975)
  13. 13. Tang kilikanfrom the labor pers pective “Filipino unionism was Filipino nationalism. It was the unity of Filipinos, workers and capitalists, peasants and professionals, all others to the cause of Philippine independence from American imperialism.” (Velasco, Renato 1985)
  14. 14. Tang kilikanfrom the Employers ’pers pective The Chamber of Commerce of the Philippines (CCP), which was organized in July 19, 1903, did not oppose free trade because its members initially benefited from it. But in 1920, the CCP opposed free trade & proposed the doctrine of protectionism and particularly urged for a wider patronage of local products.
  15. 15. Tang kilikanand the birth of NEPA In 1926, the CCP organized a Committee on Protectionism which promoted economic nationalism & protectionism. It was composed of Leopoldo Aguinaldo, Toribio Teodoro, Ciriaco Tuazon & Ramon Fernandez. It launched in Dec. 30, 1926 the “Give Preference to Philippine-Made Goods Campaign”.
  16. 16. NationalEconomicProtectionismAssociation, 1934 Don Salvador Araneta
  17. 17. Tang kilikanand the birth of NEPA The CCP Committee on Protectionism organized the National Economic Protectionism Association (NEPA) in November 19, 1934.  President,Benito Razon, Socox y Cia; Vice President, Gonzalo Puyat, Gonzalo Puyat & Sons; Treasurer, Toribio Teodoro, Ang Tibay Shoe Factory; Board members- Leopoldo Aguinaldo, Aguinaldo Ent., Salvador Araneta, lawyer economist, Phil. Economic Ass’n, Ciriaco Tuzon, Tuazon Enterprises.
  18. 18. 3 F eatures ofNEPA’s EconomicNationalis m Belief in the ownership and control of citizens over the productive assets of the national economy. Active government support and protection to local industries through incentives and legislations against unfair competition from foreigners. Call for nationalist industrialization.
  19. 19. NEPA’sDekalogo ng Tangkilikan Mahalin mo ang sa iyo ng higit pa sa iba. Parangalan mo ang mga yari sa iyong bayan, ang kanyang mga industriya at ang pangangalakal niya. Maging Pilipino ka sa isip at gawa kapag nauukol sa mga bagay na pangkabuhayan.
  20. 20. NEPA’sDekalogo ng Tangkilikan4. Huwag kang gagamit ng mga yaring dayuhan kung mayroon nang gayong yari sa ating bayan.5. Tangkilikin ang hanapbuhay dito sa atin.6. Itanim sa isip ang dakilang katotohanang ito: na ang bayang walang pamana ay aba.
  21. 21. N EPA’sDekalogo ng Tangkilikan7. Magpumilit ka sa hangad na ang bayan mo ay maging lalong maunlad.8. Tumulong kang magbigay-dangal sa ikagiginhawa ng manggagawang Pilipino, at sundin ang katutubong batas na nag-aatas na kalingain ng isang kapatid ang kapwa kapatid.
  22. 22. NEPA’sDekalogo ng Tangkilikan9. Isakatuparan ang tangkilikan sa pamamagitan ng gawa, at hindi sa salita.10. Maging matiyaga ka at masipag sa pagganap ng tuntuning nauukol sa ikasusulong ng sarili at ng bansa.
  23. 23. Tang kilikanfrom the g ov’t pers pective  In 1930, Manuel Roxas of the Philippine Assembly adopted economic nationalism as the ideology of Ang Bagong Katipunan (ABK) which was composed of businessmen and professionals.
  24. 24. Decalogue ofAng Bagong Katipunan “We will practice economic nationalism. We will organize and struggle for economic self-sufficiency. We will serve to produce what we need and buy what we produce. We will encourage the development of our home industries.
  25. 25. Decalogue ofAng Bagong Katipunan We will patronize our countrymen who are engaged in business but condemn those who exploit their customers. We will buy from abroad only those commodities that we do not produce, giving preference to articles coming from countries which buy our products” (Kalaw 1931).
  26. 26. Claro M. Recto Nationalist
  27. 27. Claro M. Recto Ang Parity Amendments ay magdudulot ng paghahari ng mga dambuhalang korporasyong Amerikano sa ating ekonomiya na walang buting idudulot sapagkat ang kikitain ng mga itoy lalabas lang sa bansa sa halip na magamit upang paunlarin ang ekonomiya.
  28. 28. Claro M. Recto Makabansang pag-iindustriya: Kung isasaalang-alang ang lawak ng ating mga yamang-bansa, walang alinlangang kakayanin natin ang magtatag ng mga pambansang industriya. Sa ilalim ng programang ito, makalalalang tayo ng sarili nating mga kalakal sa halip ng walang patumanggang pag-aangkat, at ang ating kapital ay di na lalabas nang lalabas ng bansa. Alexander Remolino
  29. 29. Filipino First Policy  President Carlos P. Garcia
  30. 30. Filipino First Policy Pres. Carlos P. Garcia popularized economic nationalism through the Filipino First Policy. It gave preference to Filipinos over foreigners in the acquisition of land and capital and in the operation of business, trade and industry. The Filipino First policy also aimed to encourage the people to patronize Philippine-made products and to promote Filipino labor. Source:
  31. 31. Tangkilikan before World War II The NEPA Tangkilikan movement in the 1930s stimulated the growth of Filipino industries. Local industries increased in 1938. These include textiles, leather & rubber footwear, cement, medical & toilet preparations, household utensils, potteries, furniture, shell craft, cigarettes, cosmetics & lotions, soap, lard, candies, toys, etc.
  32. 32. Tangkilikanbefore World War II NEPA’s Tangkilikan became a byword in the country. NEPA had 38 provincial chapters and 160 municipal & barrio chapters. The Bureau of Education helped organize NEPA student chapters nationwide. The weekly Voice of Industry was broadcast regularly.
  33. 33. Tangkilikan during the War Tangkilikan philosophy helped alleviate the sufferings of the people during the war. Economic nationalism was forced to be practiced and found to be viable. Businesses became self-reliant and produced products made of locally available materials.
  34. 34. Tangkilikan in the 1950s NEPA was revived in Dec. 30, 1948. It spearheaded the import substitution industrialization (ISI) development strategy of the country. Industrial enterprises mushroomed in Manila area making the Philippines the second highest in economic development in the 1950s, next to Japan.
  35. 35. Filipino First PolicyThe country produced captains of industry like Salvador Araneta and Hilarion M. Henares, Jr., the ideologues of the industrialization, Filemon Rodriguez, Col. Severo Santiago, Meneleo Carlos, Sr., Pablo Silva, Jose Concecion, Sr. , Jose Marcelo, Jacinto families, and numerous others who pushed for industrialization and ‘Filipino First’ Policy”.
  36. 36. The Pitfallsof the ISI Strategy1. Most of the beneficiaries of the ISI programs were US firms (3 out of 4 companies set up in 1950s were foreign subsidiaries and joint ventures).2. Their investments were in tertiary processing and in capital intensive processes that were subsidized and protected by the state.
  37. 37. The Pitfallsof the ISI Strategy3. There were limited forward and backward linkaging and these ISI industries managed to control the local market via industry cartels or oligopolies and monopolies. They did not expand to the export market for more efficiency, economies of scale and competitiveness.
  38. 38. The Pitfallsof the ISI Strategy4. Colonial mentality led to wasteful spending. Foreign cultures created new needs, attitudes and values that developed costly tastes among the rich and the upper class that favored the purchase of imported goods. Many foreign & local firms practiced transfer pricing and patronized foreign suppliers instead of local producers.
  39. 39. The Pitfallsof the ISI Strategy5.There was no genuine land reform program to increase the incomes of the rural population and expand the local market to encourage industrialization.6. The ISI strategy institutionalized patronage politics and crony capitalism that preserved the dominance of the local dynastic elites & the neo-liberal technocrats in the political system.
  40. 40. The Pitfallsof the ISI Strategy The ISI strategy failed because it was derailed by anti-industrialization forces. Instead of clearing the obstacles to the ISI strategies for industrialization, it was completely abandoned in exchange of an experimental export-oriented strategy that brought the economy back to the free trade colonial past
  41. 41. The Free TradeDevelopment Strategy With the influence of the IMF-World Bank, a new export oriented industrialization (EOI) was adopted after President Carlos P. Garcia. The country literally became an open economy to foreign capital, foreign loans and foreign economic advisers. There was a promise of economic development and industrialization in this new strategy
  42. 42. The Failure of the Experiment After several decades of globalization and trade liberalization, studies now show that “people in the high income countries account for 20% of world population but posses 90% of the GDP in the world. On the other hand, poorest people, which account for the lower 20% of world population, posses only 1% of GDP in the world” (ILO Director General Juan Somavia 1999, Takagi 2004)
  43. 43. The need to bring backTangkilikan Other Asian counties like Taiwan, South Korea, Hong Kong, Singapore, Thailand, Malaysia, India and lately China followed the Tangkilikan strategy of Japan. They are now the new Tigers of Asia.
  44. 44. Tangkilikan revival at present Aside from NEPA and the Pilipino Muna Movement, other Tangkilikan organizations have been formed. Among them are the Galing Pilipino Movement and the Buy Philippine-Made Products Movement. One of the most promising group is the Fair Trade Alliance (FTA)
  45. 45. Workshop: OperationalizeTangkilikanGuide Questions: How do we see Tangkilikan effectively operationalized at the grassroots level? How best can we push for Tangkilikan to be widely adopted and actively employed? What mechanisms and structures does it need?
  46. 46. References:Dava, Severa (1935), The Great Accomplishment of Quezon, ManilaGolay, Frank, Ralph Auspach & Ruth Pfanner (1969), Underdevelopment and Economic Nationalism in Southeast Asia, USA: Cornell University Press.Kalaw, Maximo (1931), “The Philippine Question”, Philippine Social Science Review, Vol. III, No. 4, p. 16, Manila: Sept. 1941Luna-Orosa, Severina (1962), “Rizal’s La Liga Filipina and the NEPA”, NEPA Courier, Vol. II, No. 3, June-July 1962, p. 17.Remolino, Alexander, Claro M. Recto,, Jorge V., “The History of NEPA is the History of Economic Nationalism” (manuscript)Sibal, Jorge V. (2002), “Industrial Culture and Industrialization”, Philippine Journal of Labor and Industrial Relations, Vol. XXII, Nos. 1 & 2, Quezon City: UP SOLAIRVelasco, Renato S. (1985), Fifty Years of Filipino Economic Nationalism: The National Economic Protectionism Association (NEPA), 1934-1984, Quezon City: UP Asian Center___________,