Holy Name University

Bohol

The Dawn of Social Enterprise as Economic Model

• Name: Ernesto O. Golosino

(ernesto_hnu@yahoo.com)

• JOB POSITION: Full-Time Faculty• INSTITUTION: Holy Name University, Tagbilaran City, Bohol,

Philippines

BackgroundThe failure of capitalism

Objectives1. How can social enterprises correct the existing

social imbalance especially in the Philippines?2. What are the enabling mechanisms needed in

order to facilitate the mass introduction of social enterprise to the economy?

Framework

• The Classical Economist’s Perspective• The Legal Mantra of Cooperative

(Philippines)• The Not So Famous Stories of Capitalism• Theories advanced by scholars (with H-

index)

Methods

• Literature Review• Secondary Data• FGD

Results Province Gini Coefficient Rank

Zamboanga del Norte 0.5355 1

Leyte 0.5220 2

South Cotabato 0.5161 3

Lanao del Norte 0.5109 4

Bohol 0.5001 5

Catanduanes 0.4949 6

Bukidnon 0.4871 7

Mountain Province 0.4801 8

Iloilo 0.4756 9

2nd District NCR 0.4734 10

Region

2006 2009

Average Income

Average Expenditure

Average Income

Average Expenditure

Philippines 125 107 129 110NCR 221 183 227 197CAR 137 108 136 108Ilocos 102 89 116 94Cagayan Valley 108 89 115 90Central Luzon 147 127 139 119Calabarzon 153 136 158 135Mimaropa 82 70 90 77Bicol 92 81 95 85Western Visayas 97 86 99 89Central Visayas 101 87 111 92Eastern Visayas 94 78 98 78Zamboanga Peninsula 93 73 88 71Northern Mindanao 102 84 98 83Davao 96 82 99 85Soccsksargen 85 72 96 82Caraga 86 73 88 74ARMM 61 52 62 54

Average Income and Expenditure of Families by Region, at 2000 Prices: 2006 and 2009 (in thousand Philippine Peso)

ASEAN COUNTRIES SELECTED DEVELOPED COUNTRIES

Country Gini coefficient

Country Gini coefficient

Philippines 0.4484 USA 0.408Singapore 0.425 Italy 0.360Thailand 0.425 Australia 0.352Cambodia 0.407 Switzerland 0.337Indonesia 0.394 France 0.327Malaysia 0.379 Canada 0.326Vietnam 0.378 Finland 0.269Lao PDR 0.326 Sweden 0.250Myanmar No data Japan 0.249Brunei Darussalam

No data

The 2009 Official Poverty Statistics

RegionPoverty incidence among families

2003 2006 2009Philippines 20.0 21.1 20.9Caraga 37.6 36.9 39.8ARMM 25.0 36.5 38.1Region IX 40.5 34.2 36.6Region V 38.0 36.1 36.0Region III 30.2 31.1 33.2Region X 32.4 32.7 32.8Region VII 32.1 33.5 30.2Region XII 27.2 27.1 28.1Region IV-B 29.8 34.3 27.6Regions XI 25.4 26.2 25.6Regions VI 23.5 22.1 23.8Region I 17.8 20.4 17.8CAR 16.1 18.6 17.1Region II 15.2 15.5 14.5Regions III 9.4 12.0 12.0Region IV-A 9.2 9.4 10.3NCR 2.1 3.4 2.6

The 2009 Official Poverty Statistics

Region No. of Registered

Cooperatives

Total Membership

No. of Persons Directly

Employed

No. of Persons

Indirectly Employed

Amount of Assets

Region I 1,269 405,514 8,086 5,676 4,317,895,077.24Region II 755 374,031 5,532 3,883 4,684,779,526.47CAR 711 250,622 2,827 1,985 7,414,692,256.02Region III 2,005 624,329 17,377 12,199 12,310,729,950.94NCR 2,129 1,313,340 21,359 14,994 55,553,822,731.27Region IV 2,450 580,002 20,077 14,094 20,411,684,593.83Region V 793 241,528 4,784 3,358 2,879,707,908.84Region VI 1,332 418,603 8,888 6,239 9,151,433,182.31Region VII 1,523 588,564 20,342 14,280 16,110,273,531.69Region VIII 666 277,543 5,238 3,677 5,335,128,809.28Regions IX 741 300,457 7,819 5,489 5,273,818,664.78Region X 1,438 392,700 26,350 18,498 13,442,974,069.45Region XI 1,653 346,456 19,883 13,958 17,657,235,578.31Region XII 1,006 190,464 10,382 7,288 8,529,489,011.51CARAGA 1,042 187,337 6,622 4,649 3,647,290,950.81ARMM 1,214 56,490 15,659 10,993 3,191,694,419.94Central Office 65 No data No data No data 19,927,614,544.33

Grand Total 20,792 6,547,980 201,225 141,260 209,840,264,807.02

Registered Cooperatives, Its Assets, No. of Employees, Indirect Employment

Conclusions

• The recurrence of economic epidemic brought about by capitalism and the injustice it accord to society needs immediate attention

• If the number of social enterprise will continue to grow in tandem with the growing number of membership, the social inadequacy introduced by capitalism will gradually vanish

Recommendations

• it is imperative that the pending bill on recognizing the role of social enterprise must be acted with dispatch

• the presence of cooperatives must not be viewed to be adversarial to the present capitalist’s set-up

Literature Cited

Avadhuta, A.V. The Post Corporate World by David Koten

1999 Kumarian Press, West Hartford, CT

Downloaded from: www.ru.org/book-reviews/the-the-post-corporate-world

-david-koten.html.

 

Burnett, B. The Smirking Chimp

2011 downloaded from: http://www.alternet.org/story/152118/5_reasons_

Capitalism_has_failed

 

Emery, A. Why Capitalism Fails Society

2012 Posted in Ecology and Biology

downloaded from: http://www.kivu.com/?p=4098

 

Haines, W. The Bankruptcy of Classical Economics

1993 New York University

downloaded from: www.ru.org/economics/the-bankruptcy-of

-classical-economics.html

 

Jossa, B. Marx, Marxism and the Cooperative Movement

2003 Cambridge Journal of Economics

downloaded from: http://cje.oxfordjournals.org/content/29/1/3.short

 

Lendman, S. Predatory Capitalism Failed

2012 downloaded from: http://www.globalresearch.ca/index.php?context=va&aid=30763

 

Mihm, S. Why Capitalism Fails.

2009 The Boston Globe

Downloaded from: http://www.commondreams.org/view/2009/09/14-6

 

Nito, B. The Social Economy Picture

2012 downloaded from: ww.google.com

 

Noya, A. New Economic and Financial Order: What the future holds for cooperatives?

2012 Organisation for Economic Cooperation and Development (OECD)

downloaded from: http:/www.sommetinter2012.coop/site/home?

Ping-ay, J. The State of Cooperatives in the Philippines

2011 Coop NATCOO Partylist

Downloaded from: http://cda.gov.ph/website/html/press_room_speech_

Pin-ay.html

 

Republic Act No. 583- An Act To Constitute A Small Farmers’ Cooperative Loan

1950 Fund For The Purpose of Providing Credit Facilities To Small Farmers and Farm Tenants

Downloaded from: www.lawphil.net

 

Republic Act No. 2023- Philippine Non-Agricultural Cooperative Act

1957 downloaded from: www.lawphil.net

 

Republic Act 6038- National Electrification Administration Act

1969 downloaded from: www.lawphil.net

 

Republic Act No. 6939- An Act Creating the Cooperative Development Authority

1990 downloaded from: www.lawphil.net

Republic Act No. 9520- An Act Amending The Cooperative Code Of The Philippines

2008 To Be Known As The “Philippine Cooperative Code Of 2008”

Downloaded from: www.lawphil.net

 

Social Sectors B Division, National Statistics Coordination Board

2012 downloaded from: www.nscb.gov.ph/poverty/2000/ot_gini.asp

 

Tañada, L. Representative, 4th District, Quezon Province, House Bill No. 6085

2012 Republic of the Philippines, Congress of the Philippines

Fifteenth Congress, Second Regular Session

Downloaded from: www.google.com.ph

 

Villalba, M. A. Social Enterprise: A Strategic Proposition

2012 Unlad Kabayan Migrant Services Foundation

Downloaded from: www.unladkabayan.org

 

Virola, R. 2009 Official Poverty Statistics

2009 National Statistics Coordination Board

Downloaded from: www.nscb.gov.ph