Tangkilikan Philosophy- Theory and History in the Philippine context. A philosophy of the National Economic Protectionism Association (NEPA) since 1934, it is expressed in the slogan "pagbutihin, paunlarin at tangkilikin ang sariling atin" or the Filipino First Policy.

1. Tang kilikan Philos ophy
in the Philippines
Dean Jorge V. Sibal
< sibal_jorge@yahoo.com >

2. Tang kilikan
and the National Heroes
The philosophy of
Rizal and Mabini on
nationalism and
protectionism: Jose Rizal
 A free and self-
reliant economy is
an indispensable
foundation of
national Apolinario
independence Mabini

3. Tang kilikan
and the
National
Heroes
The philosophy of Rizal and Mabini on
nationalism and protectionism:
 Dominance of Filipinos over the
country’s economy and resources
through government protection and
promotion of domestic industries.

4. Rizal and Mabini on
nationalism and protectionism
 rooted to the neo-mercantilist philosophy of
Friedrich List & Alexander Hamilton.

5. F. List &
A. Hamilton-
nationalism and
protectionism
 Rejected free trade and advocated-
 protection of domestic industry & market
against foreign encroachment and unfair
competition from powerful alien-controlled
companies.
 active government regulation &
intervention in commerce and industry to
realize the growth of the economy.

6. Rizal and Mabini on
nationalism and protectionism
 Rizal organized the La Liga Filipina in July
1892 as a national organization of Filipinos. Its
Constitution stated:
“Mutual protection for all members. Any
member may recognize all the others to
patronize him in his business or profession.
He may request for aid or capital for some
enterprise or business when funds are
available. If he buys from firms supported by
the Liga, he is entitled to a reduction in price”.
(Luna-Orosa, Severina 1902)

7. La Liga Filipina

8. Economic nationalism during
the colonial years
 “Mercantilist philosophy, the earliest
form of economic nationalism, … puts
the interest of the local economy above
all considerations” (Lichauco, Alejandro
1985)
 “The Chinese who, to a significant
degree, helped in the growth of the local
economy since the colonial years,
became the convenient scapegoat”
(Golay, Auspach & Pfanner 1969)

9. Tang kilikan
from the labor pers pective
 Don Isabelo de los Reyes and Dr.
Dominador Gomez, leaders of the Union
Obrera Democratica (UOD), the first
labor federation founded in Feb. 1902
advocated-
 Popularpatronage of local industries &
products [which] were repeatedly raised &
urged in various workers’ rallies, pickets and
conventions, along with the overriding
demand for Philippine independence.

10. Don Isabelo de los Reyes and Dr.
Dominador Gomez
Union Obrera Democratica

11. Dr. Dominador Gomez
 The growth of local  “Every dollar of
industry [is] for the American capital
welfare of the labor invested in these
sector and … the islands is a nail in
enhancement of a the coffin of
self-reliant and Philippine
independent nation. independence-
Gomez, 1935
(Dava-Severa 1935)

12. Don Isabelo
de los Reyes
 “[The] development
of local industry  “Unionism”,
meant not only more
according to de los
businessmen but
Reyes, “was aimed
also more factories
to achieve the
& greater jobs and
longed-for alliance
employment
of labor and capital”
opportunities.”
(Constantino 1975)

13. Tang kilikan
from the labor pers pective
 “Filipino unionism was Filipino
nationalism. It was the unity of
Filipinos, workers and capitalists,
peasants and professionals, all others
to the cause of Philippine independence
from American imperialism.” (Velasco,
Renato 1985)

14. Tang kilikan
from the Employers ’
pers pective
 The Chamber of Commerce of the
Philippines (CCP), which was organized
in July 19, 1903, did not oppose free
trade because its members initially
benefited from it.
 But in 1920, the CCP opposed free
trade & proposed the doctrine of
protectionism and particularly urged for
a wider patronage of local products.

15. Tang kilikan
and the birth of NEPA
 In 1926, the CCP organized a
Committee on Protectionism which
promoted economic nationalism &
protectionism.
 It was composed of Leopoldo Aguinaldo,
Toribio Teodoro, Ciriaco Tuazon &
Ramon Fernandez.
 It launched in Dec. 30, 1926 the “Give
Preference to Philippine-Made Goods
Campaign”.

16. National
Economic
Protectionism
Association, 1934
Don Salvador Araneta

17. Tang kilikan
and the birth of NEPA
 The CCP Committee on Protectionism
organized the National Economic
Protectionism Association (NEPA) in
November 19, 1934.
 President,Benito Razon, Socox y Cia; Vice
President, Gonzalo Puyat, Gonzalo Puyat
& Sons; Treasurer, Toribio Teodoro, Ang
Tibay Shoe Factory; Board members-
Leopoldo Aguinaldo, Aguinaldo Ent.,
Salvador Araneta, lawyer economist, Phil.
Economic Ass’n, Ciriaco Tuzon, Tuazon
Enterprises.

18. 3 F eatures of
NEPA’s Economic
Nationalis m
 Belief in the ownership and control of
citizens over the productive assets of
the national economy.
 Active government support and
protection to local industries through
incentives and legislations against
unfair competition from foreigners.
 Call for nationalist industrialization.

19. NEPA’s
Dekalogo ng Tangkilikan
 Mahalin mo ang sa iyo ng higit pa sa
iba.
 Parangalan mo ang mga yari sa iyong
bayan, ang kanyang mga industriya at
ang pangangalakal niya.
 Maging Pilipino ka sa isip at gawa
kapag nauukol sa mga bagay na
pangkabuhayan.

20. NEPA’s
Dekalogo ng Tangkilikan
4. Huwag kang gagamit ng mga yaring
dayuhan kung mayroon nang gayong
yari sa ating bayan.
5. Tangkilikin ang hanapbuhay dito sa
atin.
6. Itanim sa isip ang dakilang
katotohanang ito: na ang bayang
walang pamana ay aba.

21. N EPA’s
Dekalogo ng Tangkilikan
7. Magpumilit ka sa hangad na ang bayan
mo ay maging lalong maunlad.
8. Tumulong kang magbigay-dangal sa
ikagiginhawa ng manggagawang
Pilipino, at sundin ang katutubong batas
na nag-aatas na kalingain ng isang
kapatid ang kapwa kapatid.

22. NEPA’s
Dekalogo ng Tangkilikan
9. Isakatuparan ang tangkilikan sa
pamamagitan ng gawa, at hindi sa
salita.
10. Maging matiyaga ka at masipag sa
pagganap ng tuntuning nauukol sa
ikasusulong ng sarili at ng bansa.

23. Tang kilikan
from the g ov’t pers pective
 In 1930, Manuel
Roxas of the
Philippine Assembly
adopted economic
nationalism as the
ideology of Ang
Bagong Katipunan
(ABK) which was
composed of
businessmen and
professionals.

24. Decalogue of
Ang Bagong Katipunan
 “We will practice economic nationalism.
 We will organize and struggle for
economic self-sufficiency.
 We will serve to produce what we need
and buy what we produce.
 We will encourage the development of
our home industries.

25. Decalogue of
Ang Bagong Katipunan
 We will patronize our countrymen who
are engaged in business but condemn
those who exploit their customers.
 We will buy from abroad only those
commodities that we do not produce,
giving preference to articles coming
from countries which buy our products”
(Kalaw 1931).

26. Claro M. Recto
Nationalist

27. Claro M. Recto
 Ang Parity Amendments ay
magdudulot ng paghahari ng mga
dambuhalang korporasyong
Amerikano sa ating ekonomiya na
walang buting idudulot sapagkat
ang kikitain ng mga ito'y lalabas
lang sa bansa sa halip na magamit
upang paunlarin ang ekonomiya.

28. Claro M. Recto
 Makabansang pag-iindustriya:
Kung isasaalang-alang ang lawak
ng ating mga yamang-bansa,
walang alinlangang kakayanin
natin ang magtatag ng mga
pambansang industriya.
 Sa ilalim ng programang ito,
makalalalang tayo ng sarili nating
mga kalakal sa halip ng walang
patumanggang pag-aangkat, at
ang ating kapital ay di na lalabas
nang lalabas ng bansa. Alexander Remolino

29. Filipino First Policy
 President
Carlos P. Garcia

30. Filipino First Policy
 Pres. Carlos P. Garcia popularized
economic nationalism through the
Filipino First Policy. It gave preference
to Filipinos over foreigners in the
acquisition of land and capital and in
the operation of business, trade and
industry.
 The Filipino First policy also aimed to
encourage the people to patronize
Philippine-made products and to
promote Filipino labor.
 Source: http://www.geocities.com/Athens/Thebes/1055/garcia.html

31. Tangkilikan
before World War II
 The NEPA Tangkilikan movement in the
1930s stimulated the growth of Filipino
industries.
 Local industries increased in 1938.
These include textiles, leather & rubber
footwear, cement, medical & toilet
preparations, household utensils,
potteries, furniture, shell craft, cigarettes,
cosmetics & lotions, soap, lard, candies,
toys, etc.

32. Tangkilikan
before World War II
 NEPA’s Tangkilikan became a byword
in the country.
 NEPA had 38 provincial chapters and
160 municipal & barrio chapters. The
Bureau of Education helped organize
NEPA student chapters nationwide.
 The weekly Voice of Industry was
broadcast regularly.

33. Tangkilikan during the War
 Tangkilikan philosophy helped alleviate
the sufferings of the people during the
war.
 Economic nationalism was forced to be
practiced and found to be viable.
 Businesses became self-reliant and
produced products made of locally
available materials.

34. Tangkilikan in the 1950s
 NEPA was revived in Dec. 30, 1948.
 It spearheaded the import substitution
industrialization (ISI) development
strategy of the country.
 Industrial enterprises mushroomed in
Manila area making the Philippines the
second highest in economic
development in the 1950s, next to
Japan.

35. Filipino First Policy
The country produced captains of
industry like Salvador Araneta and
Hilarion M. Henares, Jr., the ideologues
of the industrialization, Filemon
Rodriguez, Col. Severo Santiago,
Meneleo Carlos, Sr., Pablo Silva, Jose
Concecion, Sr. , Jose Marcelo, Jacinto
families, and numerous others who
pushed for industrialization and ‘Filipino
First’ Policy”.

36. The Pitfalls
of the ISI Strategy
1. Most of the beneficiaries of the ISI
programs were US firms (3 out of 4
companies set up in 1950s were foreign
subsidiaries and joint ventures).
2. Their investments were in tertiary
processing and in capital intensive
processes that were subsidized and
protected by the state.

37. The Pitfalls
of the ISI Strategy
3. There were limited forward and
backward linkaging and these ISI
industries managed to control the local
market via industry cartels or oligopolies
and monopolies. They did not expand
to the export market for more efficiency,
economies of scale and
competitiveness.

38. The Pitfalls
of the ISI Strategy
4. Colonial mentality led to wasteful
spending. Foreign cultures created new
needs, attitudes and values that
developed costly tastes among the rich
and the upper class that favored the
purchase of imported goods. Many
foreign & local firms practiced transfer
pricing and patronized foreign suppliers
instead of local producers.

39. The Pitfalls
of the ISI Strategy
5.There was no genuine land reform
program to increase the incomes of the
rural population and expand the local
market to encourage industrialization.
6. The ISI strategy institutionalized
patronage politics and crony capitalism
that preserved the dominance of the
local dynastic elites & the neo-liberal
technocrats in the political system.

40. The Pitfalls
of the ISI Strategy
 The ISI strategy failed because it was
derailed by anti-industrialization forces.
Instead of clearing the obstacles to the
ISI strategies for industrialization, it was
completely abandoned in exchange of
an experimental export-oriented
strategy that brought the economy back
to the free trade colonial past

41. The Free Trade
Development Strategy
 With the influence of the IMF-World
Bank, a new export oriented
industrialization (EOI) was adopted after
President Carlos P. Garcia.
 The country literally became an open
economy to foreign capital, foreign
loans and foreign economic advisers.
 There was a promise of economic
development and industrialization in this
new strategy

42. The Failure of the Experiment
 After several decades of globalization
and trade liberalization, studies now
show that “people in the high income
countries account for 20% of world
population but posses 90% of the GDP
in the world. On the other hand,
poorest people, which account for the
lower 20% of world population, posses
only 1% of GDP in the world” (ILO
Director General Juan Somavia 1999,
Takagi 2004)

43. The need to bring back
Tangkilikan
 Other Asian counties like Taiwan, South
Korea, Hong Kong, Singapore,
Thailand, Malaysia, India and lately
China followed the Tangkilikan strategy
of Japan.
 They are now the new Tigers of Asia.

44. Tangkilikan revival at present
 Aside from NEPA and the Pilipino Muna
Movement, other Tangkilikan
organizations have been formed.
 Among them are the Galing Pilipino
Movement and the Buy Philippine-Made
Products Movement.
 One of the most promising group is the
Fair Trade Alliance (FTA)

45. Workshop: Operationalize
Tangkilikan
Guide Questions:
 How do we see Tangkilikan effectively
operationalized at the grassroots level?
 How best can we push for Tangkilikan
to be widely adopted and actively
employed?
 What mechanisms and structures does
it need?

46. References:
Dava, Severa (1935), The Great Accomplishment of Quezon, Manila
Golay, Frank, Ralph Auspach & Ruth Pfanner (1969), Underdevelopment
and Economic Nationalism in Southeast Asia, USA: Cornell University
Press.
Kalaw, Maximo (1931), “The Philippine Question”, Philippine Social
Science Review, Vol. III, No. 4, p. 16, Manila: Sept. 1941
Luna-Orosa, Severina (1962), “Rizal’s La Liga Filipina and the NEPA”,
NEPA Courier, Vol. II, No. 3, June-July 1962, p. 17.
Remolino, Alexander, Claro M. Recto,
http://www.tinig.com/v37/v37_kolum_alex.html
Sibal, Jorge V., “The History of NEPA is the History of Economic
Nationalism” (manuscript)
Sibal, Jorge V. (2002), “Industrial Culture and Industrialization”, Philippine
Journal of Labor and Industrial Relations, Vol. XXII, Nos. 1 & 2, Quezon
City: UP SOLAIR
Velasco, Renato S. (1985), Fifty Years of Filipino Economic Nationalism:
The National Economic Protectionism Association (NEPA), 1934-1984,
Quezon City: UP Asian Center
___________, http://www.geocities.com/Athens/Thebes/1055/garcia.html