TRAINORS’ TRAINING FOR ENCASH AGRIBUSINESS

IN AGRARIAN REFORM AREAS

November 2007
Trigger picture

Half full or half empty?

 The “Glass is
half-full” lessson:

Communities, no
matter how poor they
are, have a lot of
strengths (kalakasan).
They need to discover
what these are, and
build on these
strengths.
 What is Development?

 Development is not measured by external, outward

changes or progress alone. Industrialization and
modernization only manifest part of the genuine
development that we want to achieve.

 Development projects are not ends in themselves,

they are only means by which people’s skills in
identifying their own problems and planning and
working out solutions are continuously enhanced.
What is Development?

A process by which the members of

society increase their capacities to
mobilize and manage resources to
produce sustainable and justly
distributed improvements in their
quality of life consistent with
their own aspirations.
What is Development?

Having
 Development Management Perspective

 The field of development management is

infinitely more complex than
straightforward business management

 Development management deals with

diverse concerns:
a. area, agency and industry management
b. art and science of people management
c. resource mobilization and multiplication
of these resources
Development Management Perspective
 The objective of development management is to
propel balanced growth by maximizing development
wheels:
a. environmental – management of geographic area,
industry and sector
b. socio-political - human infrastructure and
institution building
c. economic - conversion of resources into
investment, investment into goods
and services into income and
income back into resources or
distributed to intended
beneficiaries
 SOCIO-POLITICAL OR PEOPLE DEVELOPMENT

Ideology Integrated
Maturity & Unity Strategy
Development
Values Organization

Framework

INTEGRATED
STRATEGY
DEVELOPMENT

Resources Investment Area Industry

Prosperity & Equity Productivity & Quality

Markets Agency

ECONOMIC DEVELOPMENT ENVIRONMENTAL DEVELOPMENT

Morato Model
 Development Management Perspective
 Development management requires a wholistic
approach that would bring the three development
wheels in an integrated intervention strategy
 Development management utilizes strategic
management as a tool

 Development management promotes good

governance (participation, transparency,
accountability, rule of law, sustainability)

 The development managers serve many and

oftentimes conflicting objectives which cannot be
easily resolved by simplifying development
equations
 Principles of Development Management
 Environmental productivity must be
accompanied by an improvement in the quality
of that environment. Environment must not
depleted for the sake of productivity

 Economic prosperity must not sacrifice social

and economic equity

 Socio-political maturity must be achieved

without breaking down society into fragmented
units
Environmental Development Process
Industry/Sector
Area
• Capital
• Land • Machinery &
• People/Labor Equipment
• Natural Resources Enterprise/ • Technology
• Infrastructure Institutional • Imported Materials
Management • Factory Buildings
• Savings
• Stocks of goods and
materials
Productivity
and

Area Quality Industrial/

Management Sectoral
Management

•Agency Resources
• Agency Managers/Workers
• Agency Investments

Agency
Environmental Development Process
 Objective – to synchronize the
management of geographic area,
industries and sectors in the area and
development agencies intervening to
promote growth, productivity and quality
of life in the area

 The Development Manager determines where the

three environmental forces of development
interface and how to intervene at the interface
point
a. area and agency interface- effective
management of area resources by the agency
for harnessing, utilizing and controlling the
resources
 Environmental Development Process
b. agency and industry/sector interface – for the
mobilization or building up of industrial/sectoral
capabilities and the promulgation of industrial/
sectoral incentives and regulation through local
administrative mechanism

c. area and industry/sector interface- tapping of

area resources, translating the resources to
industry investment and creation of backward
(supply) and forward (market) linkages through
enterprises and institutions
 Environmental Development Process
 Outcomes

a. Productivity – generation of greater amount

of goods and services by and for the people
through efficient means

b. Better state and quality of being – maturity

of the industry, area and agency raised
through attainment of economic, social and
political standards
 Economic Development Process
Resources
(Area, Industry and Agency) Investments

• Land/Natural
• People/Labor X
Management and
Labor Resource
• Capital/Savings New or expanded
Multipliers
• Stocks production units for
• Technology delivery of goods and
Prosperity & services
• Physical
Infrastructures Equity -
• Existing gov’t & (division of Marketing
industry investment + benefits) Channels
Value added (Income
÷
or profits subtraction
generated conduits)

Local and Export

Markets
 Economic Development Process
 Conversion of resources into investments, investments
into goods and services, goods and services into
income and income back into resources or benefits
distributed to intended beneficiaries
a. multiplication process – conversion of resources
into investments with high multiplicative potentials
through
i) harnessing untapped resource; ii) leveraging
scarce resources; iii) focusing on critical inputs
of production, marketing and finance
b. subtraction process - deduction in potential
income through payment of commission to brokers
and middlemen, profit margin foregone to viajeros
who collect good ex-farm
 Economic Development Process

c. Addition process – as productions are sold,

revenues are generated for plowing back of extra
profits to resource base of production and
distribution to beneficiaries

d. Division process - the distribution of benefits is

through the sharing of the profits or value added.

 Outcome – Prosperity and equity

 Socio-Political Development Process
Ideology
Vision
Ideas
Theories
Doctrines
Beliefs

Reflection: Abstraction:
Internalize, Educate
Convert to Build
Ideals Maturity and Capabilities
Unity
Attitudes
Norms Action:
Customs and mores Identification, Structures
Motivations Increase Processes
Commitments Willingness, Controls
Reinforce

Values Organization
 Socio-Political Development Process

 Objective - Human infrastructure and institution

building to increase consciousness and
capability of organization to stand alone

 A social process concerned with interaction of

individuals within the organization and groups

 A political process involving influencing,

governing and empowering people.

 The process encompass the totality of human

being, his mind, body and spirit
 Socio-Political Development Process
a. Ideology – set of ideas, theories, doctrines
and belief formulated to attain a vision of
individuals and society

b. Organization - the aggrupation of

individuals for specific purpose,
structures, processes and control for goal
attainment

c. Values – deep-seated convictions about

how they and other people should behave
Socio-Political Development Process
 Ideology and organization interface - through
education and training to build capabilities

 Organization and values interface-

identification with certain value system reinforces
achievement of desired results

 Values and ideology interface- marriage of mind

and spirit

 Outcome – maturity and unity

Approaches in Development Management
 Rational or Analytical Approach – logical
using the “science of correct reasoning” which
stresses that induction or deduction must
emanate from sequential and linear thought
process. Focuses on charting trends, recognition
of patterns and mapping out of possible
scenarios with the hope of forecasting the
outcomes as events unfold

 Adaptive Approach – not a formal procedure,

does not decipher trends and scan the
environment, does not sift the strengths and
weaknesses and does not use sophisticated tools
of analysis. Agency adapts to the dynamism of
the situation at hand
Approaches in Development Management
 Ideological Approach – agency exist because of
theories, missions, doctrines and beliefs that they
espouse. The strategies are aimed at “spreading
the good news”. The how’s of attaining the state of
life are prescribed in non-equivocal rules and
dogmas.

 Creative Approach – seeks for better ways of

doing things since it is never contended with the
status quo. Has entrepreneurial spirit to venture
into the unknown, takes a less traveled route, not
necessarily the riskier but definitely the most
unfamiliar terrain.