Nick Perlas - Bayanihan Economics

BAYANIHAN ECONOMICS:NEXT EVOLUTIONARY STAGE OF

THE SOCIAL BUSINESS MOVEMENT

Nicanor PerlasLifeBank Foundation

GK Enchanted Farm - Bulacan, Philippines

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Social Business Summit 2013

DAWN OF A NEW WORLD

THE “DOTS” ARE THERE:• ADB: 30,000 social enterprises (SEs)• The “ecosystem” for dots (SEs) also exist:• Can the dots connect with each other, through

INCLUSIVE DEVELOPMENT, to form aSUSTAINABLE SOCIETY where poverty nolonger exists?


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DAWN OF A NEW WORLD

Creation of Future History =Understanding Trajectory of History + Sensing

the Emerging Future


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FOUR PILLARS OF THE ECONOMY


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Conventional Economics

- Self-Interest- Competition- Invisible Hand- Rising Tide

Lifts All Boats- Trickle Down


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Conventional Economics

• Winners and Losers• Rich and poor• More competition• Richer and poorer• Exclusion,

disconnection,alienation

• EXTERNALITIES


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Collapse of Neo-LiberalEconomic Paradigm

• Adam Smith: Theory of Moral Sentiments• Joseph Stiglitz: Globalization and its

Discontents• Paul Omnerod: The Death of Economics• Jan Tinderbergen and the Limits of GDP and

GNP• UNCTAD Papers, Dani Rodrik on the dark side

of economic globalization


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Collapse of Neo-LiberalEconomic Paradigm

• WTO Occupation• World Bank Occupation• Global Financial Crisis• Arab Spring• Occupy Wall Street• Non-Inclusive growth of the Philippine

Economy


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New Economics Rising

PRODUCTION• Sustainable Agriculture• Renewable Energy• Low carbon footprint transportation


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TRADING• Natural Foods Market• Greening Supply Chains

– Walmart– Unilever– DM

• Human Nature, Bayani Brew• Pambansang Baboy


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CONSUMPTION• Green Consumerism• Ethical Consumerism


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FINANCING• Ethical Banking• Social Finance• Social Capital• Inclusive Finance• Social Investment• Green banking• Socially responsible investing


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FOUND IN ALL FOUR KEY ASPECTS OF THEECONOMY

• Social Entrepreneurship• Inclusive Business• Social Business


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New Economies Rising

INTEGRATION OF FOUR KEY ELEMENTS• Community Supported Agriculture• Tekei Movement• Business Alliance for Local Living Economies

(BALLE)• Associative Economics


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EVOLUTIONARY PERSPECTIVE


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BAYANIHAN ECONOMICS

• Mutual Help, Cooperation, Solidarity• Inclusive• “Walang Iwanan”• Systemic• Associations in Four Key Elements of

Economies• Dialogue and Price Formation


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Bayanihan Economics and SocialEnterprise Program (SEP)

• Joint Program of LifeBank Foundation and GK-Center for Social Innovation– LBF: 400,000 + families– GK: 100,000 + families

• Eradicate poverty, achieve food security, in thecontext of extreme weather events andclimate change


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• Incubate and mainstream 10 social agri-enterprises using Sustainable Agricultureproduction and processing technologies– For micro-entrepreneurs– Agrarian Reform Beneficiaries– Social Entrepreneurs– For Farmers


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STAGING AREA• Center for Bayanihan Economics (CBE)• Microcosm of Philippine Agriculture• Portal into regional innovation and

mainstreaming hubs for Smart Agriculture• Smart Agriculture Program


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Societal Partnerships andEntrepreneurship

• Entrepreneurship has broader meaning.• Results from a Google Search:

– “Social Entrepreneurship” = 4.05 million hits– “Political Entrepreneurship” = 33,400 hits– “Cultural entrepreneurship” = 84,200 hits


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Entrepreneurships in Society


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Essence of Entrepreneurship• “Entrepreneurship” - a set of human qualities

that enable individuals to address burningissues of society and humanity.

• Risk Takers in Knowledge, Creativity, andInnovative Action beneficial to Society

• Culture, the natural habitat of entrepreneurs• Skills and values of entrepreneurs developed

primarily by cultural institutions: family,school, media, others.


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Inclusive Value Chain - RiceFARMERS/MICRO-ENTREPRENEURS• LifeBank Foundation/GK members• DAR - Agrarian Reform Beneficiaries• Farmers Associations

– MASIPAG– Pabinhi– Federation of Free Farmers– Pakisama

• Cooperatives• SUC farmer cooperators


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Inclusive Value Chain - RiceTRAINING• SUC and SUC-Network of partners• PCAARRD Consortium members and network of

members• DA-Agricultural Training Institute• PhilRice• SRI-Pilipinas Network• Office of the Provincial Agriculturist• Successful farmer practitioners• LifeBank Social Enterprise Program (SEP)


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Inclusive Value Chain - RiceTECHNOLOGY• SUC and SUC Network Partners• PCAARRD Consortium• DA-Bureau of Agricultural Research• PhilRice• SRI-Pilipinas Network• Successful farmer practitioners• Office of the Provincial Agriculturist• LifeBank’s SEP


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Inclusive Value Chain - RiceSOCIAL AGRI-ENTERPRISE• SUC AT Center/Agribusiness Department• PCAARRD Consortium – business member• Local rice miller• LGU-Trading Posts• National Food Authority• LifeBank Foundation (especially sari-sari stores and

rice traders)


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Inclusive Value Chain - RiceSOCIAL AGRI-ENTERPRISE• Land Bank• Development Bank of the Philippines• Social Entrepreneurs• Philippine Business for Social Progress• League of Corporate Foundations• Philippine Chamber for Commerce and Industry• Philippine Chamber of Agriculture and Food, Inc.

(PCAFI)• Institutional buyers


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Inclusive Value Chain - RiceBAYANIHAN ECONOMIC ENTERPRISE• SUC Agribusiness Department• PCAARRD Consortium – business member• Philippine Chamber of Agriculture and Food, Inc.

(PCAFI)• Provincial, regional and national rice trader• Institutional buyers• LGU-Trading Posts• National Food Authority• LifeBank Foundation


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Inclusive Value Chain - RiceBAYANIHAN ECONOMIC ENTERPRISE• Landbank• Development Bank of the Philippines• Inclusive Businesses (IBs)• Philippine Business for Social Progress (PBSP)• League of Corporate Foundations (LCF)• Philippine Chamber for Commerce and Industry

(PCCI)• University of Asia and the Pacific network of

corporate agribusinesses


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SEP PHASES

PHASE 1– Sustainable agriculture production

PHASE 2– Green Processing

PHASE 3– Value Chain Rapid Prototyping

PHASE 4– Mainstreaming the various value chains nation wide


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GRATITUDE

• SEP FARMERS• SEP TEAM• SAP FARMS• LBF BOARD AND MANCOM• LBF PARTNERS• GK-CSI


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CONCLUSION

• Dawn of a New and Very Different Kind ofAgricultural Revolution

• Massive in Scale but Doable• Bayanihan Spirit in the 21st Century

– Social Entrepreneurship Movement– Inclusive Business Movement– SOCIAL BUSINESS MOVEMENT– Sustainable Agriculture Movement


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DO NOT DOUBT

“The best way to predict the future is to inventit.” – Alan Kay


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DO NOT DOUBT

“Never doubt that a small group of thoughtful,committed citizens can change the world.Indeed, it is the only thing that ever has.” –Margaret Mead


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Nick Perlas - Bayanihan Economics