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NEPA History

NEPA AND PHIL. HISTORY: Heroic Heritage as Source of Tangkilikan Economics

HISTORY OF NEPA: Recalling NEPA's History


NEPA and Philippine History

Heroic Heritage as Source

of Tangkilikan Economics

FROM the glorious spirit of our heroic ancestors of thousands of years past we have drawn our renewed sense of hopeful determination to pursue Tangkilikan economics and save ourselves as a people from sinking deeper in the quicksand of mass destitution resulting from “free trade.” We know that the Filipino people can attain our collective liberation and upliftment by rallying to the urgent tambuli (reveillé) call to synergize our own capabilities and restore our prosperous bayanihan praxis.  

We have learned to heed the voices of our ancestors, all the way from the folk storytellers behind our genesis mythology around ‘Malakas and Maganda’ which, as we have now realized, pertains to such divine attributes  as ‘magandang loob’ and ‘lakas-loob,  through the creators of the Banaue rice terraces and such spiritual artifacts as the Manunggul Jar, through the exceptionally honest trading partners here of the Chinese empire, through the versatile warriors of intellectual, cultural and armed resistance to Spanish, American and Japanese invaders, through the enlightened eloquence of our Rectos, Tanadas and Dioknos of decades ago, up to our anti-dictatorship martyrs and heroes before, during and well beyond the EDSA People Power Revolution.

For thousands upon thousands of years we have been a heroic people, a dakilang lahi, so undeserving of such degradation and suffering as we have come to allow ourselves and the coming generations to endure under worsening foreign domination over our lives.

Bayanihan Alive in Tangkilikán!

We can all be proud of the Bayanihan heritage of our fore-parents where they synergized their efforts in effective team-work and produced goods and services that were more than enough for the needs of their families, clans, and tribes and even traded these with foreign trading partners like the Chinese. Our islands have been blessed with fertile land and a favorable environment that were, for thousands of years, worked industriously by our ancestors for such abundance.

The world-renowned Banaue Rice Terraces is just one of many living monuments of our capability as a race, long before the Spanish conquistador ever set foot upon our soil less than half a thousand years  ago.

Before settling in our islands, our ancestors were living their lives literally “in the same boat” together in the high seas, learning well the lessons from the crucial need to exercise well the assertion of collective stakeholdership. In those large boats called “baranggays”or “balanghais” our ancient people learned well the principle of synergism and developed the “bayanihan” philosophy.

Not quite completely erased from our collective psyche after almost five centuries of western domination, this bayanihan culture translates not only into the spirit of working teams for specific production tasks at hand, but also for dynamic economics where our people would patronize one another’s produce in goods and services, conspicuously preferring these over similar goods and services produced by outsiders.

Tangkilikán  restores completely our bayanihan spirit. As producers we would in turn, seek to continually produce goods and services of higher and higher quality and seek to lower the costs as much as we can, conscious of the fact that the buyers and the ultimate consumers of these goods and services would be our own families, clans and community members.

Bayanihan goodwill in mutual support is very much alive in the practice of tangkilikán that NEPA has always been promoting.  Faithful practice of the Tangkilikán ethics, as expressed in NEPA’s own Decalogo (see back cover of this Handbook) by more and more people would lead the Philippines back to mainstream economics, away from failed experiments in “free trade” that have been imposed upon our people by the institutions of international usury and dependence, as well as by foreign creditors and foreign trading partners.

Tangkilikán Shall Return Us to the Mainstream!

The mercantilist paradigm of centuries ago--where countries sought to produce more and buy less--was mainstream economics.

With the collective spirit of the bayanihan philosophy and the mutual patronage of Tangkilikan, the Philippines can free itself from the bonds of slavery under the control of Globalized Greed, concede and abandon as a failed experiment our engaging in grossly disadvantageous “free trade” arrangements with powerful foreign businesses and economies, and  finally return to mercantilist mainstream economics for the sake of our people and the next generations.

But Tangkilikán is not only limited to economics.  It has also dimensions in culture and politics. Tangkilikán culture means being proud of the positive side of Philippine culture, like language, history, arts, music, cinema, literature, traditions, beliefs, norms, habits, etc.  Tangkilikán politics does not mean patronage politics where the political lords (dynastic elites) take care of their underlings (usually relatives, close friends and cronies).  The latter reciprocates through blind loyalty to their political patron.

Tangkilikán politics means good governance and a civil service effectively governed by proper rules and regulations.  It also means a government that gives priority and protection to its citizens -- workers, businessmen and professionals -- over non-Filipinos.

Tangkilikán Economics and its Theoretical Foundation

Tangkilikán means mutual patronage.  As an old definition, Tangkilikán means reciprocating what benefits you have received.  On the national scale Tangkilikán also means patriotism or nationalism.  It means loving or patronizing first and foremost your own goods and services and not those of others.

Tangkilikán is rooted in the philosophy of mercantilism, which advocates “producing more in order to buy less”.  In doing this, the economy accumulates surpluses which are needed to finance development and industrialization. Tangkilikán economics is therefore the philosophy behind economic nationalism. Economic nationalism, in turn, is the ideology of national industrialization and economic development.

Jorge Sibal

The Modern Tangkilikan

The mutual commitment of Tangkilikán in this period of Globalization is not limited to patronage of one another’s produce.  Such a limited type of tangkilikán may lead to monopoly, inefficiency, uncompetitiveness and patronage politics. Instead of promoting national development and industrialization, it may lead to backwardness and underdevelopment.

Genuine Tangkilikán promotes locally produced products and services that are clearly of high quality standards through technological adaptation, innovation, and continuous improvement.

This is essence of  the slogan Tangkilikin at paunlarin and sariling atin (patronize and improve our own products and services).

Tangkilikán in the Nationalist Development Plan (NDP) being proposed by the nationalist Fair Trade Alliance (FTA) is best expressed in the strategies “forward and backward linkaging” and “modernization of agricultural and industrial sectors”.

Forward and backward linkaging

Forward and backward linkaging has at least three dimensions

1. A direct link between the Phil. consumers and the Phil. producers.

a. Philippine consumers are the workers (both low unskilled and and highly skilled knowledge workers- managers, entrepreneurs, professionals, OFWs, etc.) and the government. 

b. The Philippine producers are enterprises, groups and individuals operating in the Philippines. They should be encouraged to maximize locally-sourced inputs (labor, technologies, materials, ideas, etc.).

c. Both the Philippine consumers and producers should patronize each other to the fullest.

d. In the USA for example, Verite is a consumer-based NGO advocating consumption of American-made products & services through social standards imposition on imported products.

e. Verite practices Tangkilikan to help preserve American jobs and consumers’ purchasing power.

 2.  Direct link between big, medium, small and micro enterprises.

a. At present, big & some medium enterprises are linked with TNCs through outsourcing & international quality standards like ISO,  Malcolm Baldridge, social standards, etc.

b. Big firms with international linkages do not transfer their technologies and capabilities to the micro & small enterprises (MSEs).

c. Hence, MSEs may lose in competition with low end smuggled imported goods or stay in the unregulated informal sector. 

d. Under the Nationalist development plan, big and medium enterprises should maximize their outsourcing requirements to the micro and small enterprises (MSEs) under the big brother-small brother partnership relationship.

3. A direct link among industry, agriculture and services.

a.  Agriculture should produce raw materials for industry and food for the consumers.

b. This will empower agricultural producers and the consumers.

c. The consumers in return will be able to buy more finished products from the industrial sector.

d. Developing a modern agro-industrial economic base is the key strategy of the Nationalist Development Plan.

All these have to be done in the face of great external and internal challenges. But we are confident it can all be done. We hear the voices of our heroic ancestors telling us to have faith in the collective kagandahang-loob and lakas-loob still in the innermost psyche of our noble race. And this faith has become our bold commitment.

__________

This combines articles by Prof. Jorge V. Sibal, NEPA Secretary-General, and Prof. Ed Aurelio C. Reyes, NEPA education committee chairperson, and forms a chapter with the same title in the NEPA Members' Handbook of 2005.

 

Explanatory Text

 

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History of NEPA

Recalling NEPA's History

FOUNDED IN 1934, the National Economic Protectionism Association (NEPA) is the oldest non-government organization in the Philippines.  For some years NEPA became an active participant in the formulation of national economic policies, fostering the spirit of Filipino economic nationalism and industrialization, and promotes the protection of Filipino interests in the country’s polity, economy, culture and environment.

Founding

NEPA was born out of the historic necessity to hasten the industrial development of the American colony called the “Philippine Islands” in preparation for its scheduled “acquisition of independence” under the Tydings-McDuffie Act.  Centuries of Spanish rule and three decades of “free trade” under the Americans made the Philippines dependent on the outside world for almost every manufactured commodity, from machineries to nails and even toothpicks!

In 1926, the Chamber of Commerce of the Philippine Islands issued a manifesto “Ours First, Yours Later,” a title presumably addressed to foreign businesses. The manifesto urged the Filipino people to patronize locally-made products.

By 1930, Ang Bagong Katipunan (ABK) was organized to promote “economic nationalism” and “economic self-sufficiency.” About four years later, the Chamber created a committee tasked with promoting Filipino products on a more sustained basis.

On November 19, 1934, the Chamber’s initiative gave birth to NEPA in a founding assembly held at Club Filipino in the then-suburbian town of San Juan.  The founders were: Antonio Brias, Salvador Araneta, Isaac Ampil, Florencio Reyes, Benito Razon, Arsenio N. Luz, Joaquin Elizalde, Leopoldo Aguinaldo, Vicente Villanueva, Toribio Teodoro, Gonzalo Puyat, Ramon J. Fernandez, Ciriaco Tuazon, Aurelio Periquet. Sr., and Primo Arambulo.

Right after its founding, NEPA launched a nationwide campaign to promote economic protectionism.  Provincial, municipal and student chapters were created all over the country. Popular meetings and assemblies, attended by thousands of Filipinos, were held in different parts of the archipelago.  “NEPA” became a trademark and symbol of the people’s pride in Philippine-made products.

War and Post-War Years

The Second World War disrupted the work of NEPA. However, the pre-war consciousness-raising efforts of NEPA regarding self-reliance made it easier for individual entrepreneurs and families to produce essential commodities out of locally available materials.

NEPA was revived in late 1948 under the leadership of Sen. Gil J. Puyat. In the 1950s, the entrepreneurs and firms associated with NEPA spearheaded the great industrial drive that developed around the program of import and foreign exchange controls. The rapid industrial transformation of the Philippines made this country the envy of our Asian neighbors.

During that period, NEPA founded the Home Industries Association of the Philippines, the Philippine Inventors Society, the Philippine Hatters’ Association, and the Philippine Standardization Association.

The decade ended with NEPA becoming the main pillar of the “Filipino First” program of President Carlos P. Garcia.

Difficulties in the ‘60s and ‘70s

The decade of the 1960s saw the Macapagal administration putting an end to the “Filipino First” policy.  Decontrol, peso devaluation and an open door to foreign investors became the order of the day.  This policy reversal, formulated by the International Monetary Fund and implemented by a rising group of “technocrats,” was continued by Macapagal’s successor, President Ferdinand E. Marcos. 

In the 1970s, years mostly under martial rule, the Philippine economy became fully open to foreign capital, foreign loans and foreign economic advisers.  Filipino capitalists were relegated to being junior partners under the policy of labor-intensive, export-oriented, transnational-dependent industrialization.

NEPA in the 1980s

Against the backdrop of IMF-World Bank domination of the economy, NEPA started redefining its role in the changed economic situation.

On August 23, 1980, it organized the First Conference on Economic Independence, which declared that “political independence can only be meaningful in terms of the welfare of the whole nation, if the national economy is free from control of foreign interests.”  The Conference expressed grave concern over the “operation of the World Bank and other international financial institutions in the Philippines, which primarily benefit transnational corporations and their home companies, to the detriment of Filipino businessmen, consumers, workers and farmers, and other sectors of our society.”

The same theme was reiterated in the Second Conference on Economic Independence held in December 1983, in the midst of what was then the worst economic crisis ever suffered by our country.  The Conference for a renewal of NEPA and its transformation, once again, into a nationwide movement for the promotion of genuine economic independence.

Late in 1984, NEPA gained a 50-year extension of its corporate life.  Its new leadership declared its firm resolve to push NEPA once more into a prominent role in the struggle.  This has been the renewed struggle to promote economic nationalism so that the Filipinos shall at last be the sole determinant and principal beneficiary of this nation’s economic development.

In mid-1986, NEPA launched its mass organization known as the Kilusang Pilipino Muna, which renewed the call for patronage of Filipino-made products and services.

The late 1980s saw NEPA initiating the organization of the Freedom from Debt Coalition (FDC) and the Movement for Nationalist Industrialization (MNI).

NEPA Towards the Turn of the Century

NEPA once again vowed to be at the forefront of the struggle to promote and protect the interests of the Filipino people.  In preparation for this renewed organizational vigor, NEPA conducted a series of workshop meetings in 1991 which culminated on December 10, 1992, with the adoption and issuance of the “NEPA Manifesto,” better known by its official title, “The NEPA Vision of Development – Capitalism and Nationalism: The Missing Partnership.”

This was capped by an operational planning workshop on December 29, 1992, which resulted in the adoption of a new NEPA organization system and the approval of several projects. The projects included the revival of the NEPA Bureau of Economic Research, organization of the Information Resource Center and the NEPA Training Center (with the perspective of being transformed later into the NEPA School of Business and Economics), starting a NEPA Business Development and Management Center, revival of the NEPA Awards for Outstanding Entrepreneurs (first given in the 1970s), establishment of NEPA corporations and cooperatives, and the strengthening of the NEPA confederation by organizing city and municipal chapters throughout the country.

NEPA also resolved at that time: (1) to promote an alternative all-out industrialization based on economic Filipinism to achieve self-sufficiency and self-sustaining growth; (2) to oppose the imposition of the External Forces that seek to dominate our economy and exploit our human and natural resources; and (3) promote a sense of nationalism among our people, a sense of belonging to one another, a sense of collectivity in purpose and destiny, a national sense of pride that can make the “improbable” a reality: a “corporate Philippines,” or “Philippines, Inc.”

Into the New Millennium

Continuing to think of more realistic targets and approaches to be adopted in the continuing pursuit of economic nationalism and protected industrialization, the current leadership adopted a heritage-inspired mass-based paradigm for its work. The paradigm shift is reflected in the adoption of a new logo design by the NEPA Board in January 2002 (see page x).

In 2003, NEPA forged a partnership with the Kaisahan sa Kamalayan sa Kasaysayan (Kamalaysayan) and the Galing Pilipino Movement (GPM) by leading in the formal organization of the Katipunang DakiLahi para sa Pambansang Pagsasanib-Lakas, which has been growing fast as a nationwide network of various community-based efforts in heritage consciousness cultivation, positive values development, environmental conservation, local community empowerment, and healthy cooperativism. NEPA adopted the scheme for a Barangay-Based Associative Industrialization and worked out programs and projects, like the Barangay Economic Support System (BEDSS) and the Tangkilikan Socio-Economic Card mega-project, to pursue these steadily in the years leading to NEPA’s Diamond Anniversary in 2009.

The holding of monthly meeting of the NEPA Board and of annual NEPA anniversary reunions of the current active membership, as well as the publication of this Handbook, are all signs of a NEPA activating and boldly expanding itself to face the gargantuan tasks it has committed itself to accomplish for the self upliftment and emancipation of the Filipino people.

__________

Largely based on a manuscript written by a group of leaders in 1997, as led by then NEPA President Nelson Aboganda)

 

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