Basic Asset and Market Relations Reforms
Basic Asset and Market Relations Reforms
    
The rural economic system  is practically under the control of landlords, traders and usurers, big business and multi-national corporations.  They owned the land, have the capital and controlled the trading and marketing of the agricultural products.  They continue to amassed wealth through the excessive land rents, exorbitant interest rates, and super profits in the exchange of agricultural and consumer goods.  A restructuring in the ownership and control of the basic assets, and reforms in the market in countryside must take place.         

1.    Land Reform
A land reform program is a measure that is fundamentally aimed at ending the monopoly control of vast tracks of lands, that became the foundation on which landlords extract feudal land rent .  It is based on the recognition of the right of the tenant to own the land they till and effect a just distribution of lands on the whole.  It also aims to enhance and integrate various forms of land ownership.  

Social transformation in agriculture is a basic requirement for rural development to be realized.  Breaking up the bondage of the tenants to the soil would finally bring social justice to the MRSP who were exploited for centuries.  In effect, it would empower them by exercising total control, responsibility and decision making in the development of appropriate production systems, and afford them freedom from traditional patronage politics and leverage for self-governance.  It would, essentially, form the foundation for the democratization of the rural communities.                   

The land reform program shall encourage a non-monopoly forms of land ownership, such as:
  • Family-size farms.  Refers to the private ownership of land with the owner and family members for the production and marketing of their produce.
  • Cooperative farms.  A cooperative organization of peasants and farm-workers who have voluntarily joined together in order to manage in common large scale agricultural production such as those in plantations, and is based on the socialized ownership of the means of production and collective labor.
  • Communal ownership. All indigenous people’s i.e. Moro, Lumads, etc. are recognized as having primary rights to their ancestral domain which include the surface and sub-surface therein, based on the concept of right to self-determination and autonomy.    

2.    Alternative Rural Finance

Financial capital or money is one form of capital  that performs a very important role in economic development. Without it the economic development of a country may yet be stunned.  
Alternative rural finance program thus, aimed for the establishment of a financial system that could sufficiently and effectively provide the financial requirements for the betterment of the MRSP, and for agricultural and rural development.

It also refers to the building of people’s formal lending institutions (i.e. people’s banks, etc.) in the rural areas that offers affordable and accessible credit.  This is part of our long term objective to dislodge informal lending, that characterized the rural financial system controlled by the landlords, traders and merchants extracting usurious interest rates.  

Savings generation and mobilization is one focal issue that shall be persevered.  Huge financial requirements are needed to pursue authentic rural development efforts. A measly 4% only of the total loan portfolio is allocated for the agricultural sector, and yet, cornered by agri-business (MNC’s).  Nothing can be expected from the commercial and even from government assisted financial institutions. The MRSP shall generate the resources from their initiatives to sustainably finance their economic undertakings and community development plans.               

3.    Alternative Trading  and Marketing

Given the prevailing orientation and thrust of agricultural trading and marketing, there surfaces a need to develop an alternative trading and marketing program: one that adheres to fair pricing , environment-friendly, sustainable, and ensuring the country’s food self-sufficiently.

It aimed for the breaking up of the monopolies  and monopsonies  perpetuated by the trading firms and cartels that rake in enormous profits both from the producers and consumers as well.

It also envisions for the establishment of people’s trading and marketing firm, constituted from among the producers and consumers,  to acquire the benefit of the economies of scale, and strengthen their position against their adversaries and competitors.  Further, through this inter-linkage, several layers of the marketing chain will be cut, that contributed nonessential value added to the price of the product.        
This also means a support to the production and trading of basic food requirements ensuring food self-sufficiency first, as opposed to the governments policy of cash crop production oriented towards the international market.  This, however, does not preclude production directed towards both the local and international market.