Arrowsmith | GO LOCAL, BE LOCAL: HOW INVESTING IN PRODUCTS MADE IN THE PHILIPPINES SUPPORTS THE ECONOMY
As a beautiful young lady named Dorothy once said “There is no place like home.”
Often known as the best way to support your community and become more environmentally friendly. Having abundant natural resources paves way for the creation of some of the most innovative and convenient products you can see manufactured locally here in the Philippines. Locally made products or buying locally just simply means purchasing items that are made or grown near your home or in a nearby area, city, or estate. According to the author Michael H. Shuman, author of the book Going Local. “Going local does not mean walling off the outside world. It means nurturing locally owned businesses that use local resources sustainably, employ local workers at decent wages and serve primarily local consumers. It means becoming more self-sufficient and less dependent on imports. Control moves from the boardrooms of distant corporations and back into the community where it belongs.” (Shuman, 2000). Such examples of these “local products” prior to the topic are Abaca Baskets, Abaca Placemats, Walis Tambo (Dust Broom), Banig, Abaniko, Tabo, Doormats made from nylon, polypropylene, coir, cotton, microfiber, and natural rubber, Walis-tingting, and many more products found locally in respective regions. Those who manufacture these items will undoubtedly provide you with high-quality goods made with a soft and tender touch. Moreover, you maintain and own the tears, hard work, blood, and sweat of every Filipino worker who has made those products. I agree that we should purchase locally made products since it not only helps boost the economy of our region or country, employs workers at decent wages, becoming more self-sufficient and have to rely less on imports, and have control over moves that rotate back to the community, but it also elevates the popularity index of these particular items as well as appraising its value.
The authors came up with three (3) arguments to assert the claims mentioned above. To begin, local businesses need local manufacturers to save money and also help the environment. This highlights and paves way for more opportunities to arrive for local manufacturers. Local businesses need local manufacturers in order to cope with the needs of the businesses, in return, it makes the local economy grow. As Andrea and Rodger (2016), a local weaver said
“For me, the main arguments in support of local manufacturing are that it creates connections within communities, provides jobs, and enables ongoing conversation in perfecting a product.”
Local economic growth attracts new talent and professionals, who may, in turn, attract new customers. According to Small, Michigan’s Business Association of Michigan (SBAM) must begin to pursue a culture of innovation entrepreneurship to encourage more people to start their own growth-oriented businesses and to support existing businesses. In turn, they start their own businesses, boosting the local economy (Robinson, 2010). With local manufacturers supplying local businesses, it saves money by unessential logistics. The national expenditure of North American companies is shelling out at a staggering 1 billion dollars yearly (Team Thomas, 2022). Localizing your supplier base is a brilliant way to help the environment. Reduced shipping and storage reduce emissions and energy consumption. Sourcing locally not only benefits green manufacturing but also helps you build consumer trust. When customers buy with confidence, the company gains positive brand awareness and customer loyalty (Team Thomas, 2022).
Another reason why the Philippines must invest in locally made products is that it can help contribute to a business environment and economic success. The popularity gain will attract more investors, thus boosting not just the small business, but the economy of the area as well. Investing in our local products will attract more investors, which can help small businesses boost their sales. Supporting local businesses can increase the economy of the country. As GBB (2020), You can support your community’s economy by buying locally-produced food and other goods. Families and cultures are supported, new jobs are created or maintained, and things thrive and grow. Supporting local products also means supporting yourself. When you buy Philippine-made products, your money stays in the community because of the MSMEs you buy from other local businesses like banks, service providers, and farms. This, in turn, strengthens the Philippines’ economic foundation, allowing other local businesses to thrive (Go Lokal, 2020). When we buy locally, our money stays in the community, which benefits the local economy in two ways. For starters, purchasing locally keeps money in the local economy. According to studies, when local businesses create locally owned supply chains and invest in their employees, they recirculate a significant portion of every money (The Journal, 2019). A thriving market attracts investors and entrepreneurs, improving the country’s economic growth. With this, they’ll see the Philippines as a progressive country, a secure place they can invest (Go Lokal, 2020).
Lastly, the use of fresh ingredients can help both the business and consumers save money, stay healthy and have better quality products. One can have fresh ingredients or materials to be used when manufacturing local products. When one makes a product, one can use fresh/raw ingredients or materials to create such quality products to make it taste better or have a nice quality overall. Based on studies it is proven that fresh, regional food consumption promotes sustainability. Purchasing regional goods supports local farmers and strengthens the community’s economy (Proc & Ryno’s 2022). Using fresh local ingredients can make your products way more marketable, based on a study, American organic sales have increased from $3.6 billion in 1997 to $43.3 billion in 2015 and The organic industry had a 10.8 percent growth rate in 2015, well above that of the overall food market at 3.3% (Notch, 2018). Fresh, regional food is better for the environment. By doing this, we can lower the prices of the supply chain, protect local farming, and lessen our reliance on fossil fuels for long-distance produce transportation. Seasonal shopping is another aspect of purchasing fresh, local goods. It is frequently necessary to utilize more resources, especially water, to meet the demand for out-of-season fruits and vegetables, which is not only costly but also unsustainable (Proc & Ryno’s 2022). Consumers equate “natural” with “healthy” a study conducted by Askew concluded that customers frequently assume that healthful products are those that are labeled as natural. When asked what qualities they anticipated from a natural product, 59 percent said they anticipated health. 53 percent of respondents also expected it to be GMO-free.
Therefore, having the love and passion to share what is created in your own home is bliss not just to yourself but to others that benefit from it. To support locally is like bringing joy to those who had worked hard for it, sweating from making it, and bleeding from the time it takes to make those items, which means bringing tiny bits of joy within us to be at peace knowing we made a change in the world.
Though locally-made products are available anywhere in the Philippines, many Filipinos still patronize foreign and imported products. To contrast the claims above, the authors raised three reasons why Philippine-made products can not compete with products from the foreign market: Colonial Mentality, Labor Cost, and Difficulty in finding raw materials.
Firstly, imported products are considered high quality while local products are considered low-grade or cheap. The cliche “Tangkilikin ang sariling atin” is one that is frequently heard but not practiced. According to Royeca (2010), the preference for all things foreign over domestic is known as the colonial mentality. It is a condition that affects many Filipinos and has to be cured. It hinders and burdens the development of the Philippine economy and has harmed Filipino culture. Colonial mentality is somehow related to the phrase “Pinoy Pride” — which is feeling a sense of pleasure and pride whenever our country is being validated by other races (Unique Philippines Team, 2021). Despite being less costly, imported products sometimes have better quality.
Secondly, Filipino craft makers are paid less compared to craft makers from other developing countries. According to research conducted by picodi.com, the minimum wage in the Philippines is among the lowest in the world. The monthly nutritional requirements for an adult are satisfied by purchasing basic food items using 75% of the minimum income earned by Filipinos. Since a larger percentage corresponds to a lower ranking, the Philippines is ranked 52 out of 54 nations (Limos,2020).
Lastly, at some point, it becomes difficult to locate and gain access to raw materials, which results in an increase in the cost of the product. As stated by Atim (2021), exactly when the markets begin to heat up once more, nearly all raw materials have become scarce and extremely expensive courtesy of the COVID-19 outbreak. Due to increased domestic production, which now accounts for 75% of the market, imports have decreased. Philippine suppliers are used by well-known international companies like Polo, Nautica, Ann Taylor, Victoria’s Secret, Nike, and Adidas. Smaller firms find it challenging to compete for a factory’s time and attention when it is already producing goods for famous names like these.
Although locally made products are expensive, they last longer than those imported products and it also helps boost the country’s economy. Thus, creating more job opportunities for Filipinos. Many businesses were shut down due to the pandemic caused by COVID-19, including locally-made products that are usually found outside the country’s famous tourist destinations. The Philippine Chamber of Commerce and Industry (commonly known as PCCI) has launched the #PinasMunaTayo movement to support the government’s efforts to promote Filipino goods, such as the oneStore.ph website by the Department of Science and Technology (DOST) and the Department of Trade and Industry’s (DTI) “Buy Local, Go Lokal” campaign. “In light of the losses resulting from decreased economic activity, we are urging all customers and business users to purchase Philippine-made goods. This will aid neighborhood businesses in surviving, recovering, and continuing to offer Filipinos employment” stated the PCCI President, Benedicto Yujuico in 2021.
It is essential to prioritize raising the minimum wage since it has a substantial impact on a nation’s employment, businesses, and economy. Raising the minimum wage of the country can help prevent deprivation of access to basic necessities and poverty. However, raising the minimum wage can cause inflation, which would seem to be beneficial for the economy’s growth. Better than high costs and low income is high prices and big income (Journal Online, 2021). When the cost of goods and services increases, inflation happens. Although it’s frequently thought of negatively, the effects depend on how high the rate of inflation is. Since rising economic activity increases consumer demand for goods, inflation at a fair level is sometimes seen as a sign of a successful economy.
Some of the raw materials needed to create locally-made products are available almost everywhere in the country. It attracts more investors to invest in the country and its local products, thus, making locally-made products known worldwide. Raw materials such as bamboo, abaca, banana leaves, etc. are found almost everywhere in the Philippines. Bamboo has many uses but it is mainly used in making furniture and abaca is used for making specialty papers such as tea bags, coffee filters, etc. As for the banana leaves, a fashion designer from Tagum City, Joy Soo, has created a fashion line made out of the leaves and fibers of bananas, called the Musa Advocacy. Musa started small in Tagum City but is now going worldwide competing with the big famous brands. The Musa advocacy aims to give jobs to persons deprived of liberty, and the indigenous community (Asian Journal Press, 2022).
As a result of the discussion, local manufacturers and business owners provided evidence that buying locally produced goods will draw in additional investors, helping small businesses improve their sales and strengthening the nation’s economy. Locally made products or buying locally just simply means purchasing items that are made or grown near homes or in a nearby area, city, or estate. It is the best method to help the community and protect the environment. Natural resources in abundance enable the development of some of the most inventive and practical goods produced locally in the Philippines. Furthermore, this draws attention to and opens up new options for local producers, particularly when it comes to using fresh materials or ingredients to create local goods. Despite the fact that locally produced goods are widely available throughout the Philippines, many Filipinos still continue to buy imported and foreign goods. This is because they hold the viewpoint that imported goods are of higher quality than local goods and that local goods are inferior or less expensive. Filipino craftsmen are also paid less than those in other developing nations, and finding and accessing raw materials is challenging, which drives up the price of the finished product. Thus, more advancements are required in light of the disadvantages of locally-made products. The authors suggest promoting Filipino products and launching “Buy Local, Go Lokal” campaigns to compel consumers and business owners to buy products created in the Philippines. This would help local firms thrive, recover, and continue to provide jobs for Filipinos. Moreover, people in the Philippines should start buying locally produced goods because doing so helps the country as a whole. By purchasing goods made in the Philippines, we can support local families, improve communities, and preserve valuable employment while also boosting our economy. Instead of merely repeating and saying, “Tangkilikin ang sariling atin,” let us start putting it into action by practicing it.
