-"E|---- -- F_

FSSI
FouNnerroN
A
FOR
SUSTruNABLE
SOCI[TY,
INC.

ANNURT
Rrponr
2000
MESSACEFI{OM THE CHAIR 4

'IHE
I FOTJNDATTON

t-IICH I-IGtITSOF OPEITAfIONS 9

. ECO-Enterprise Performonce l0
. ProgromPerformonce ...... IJ

r InslilulionolPerformonce
17

EMERGINC ECO-ENTE}TPRIS
E l9
. The Logicof Microfinonce
20

SPECIAL
PROIECTS
. Coco-Enterprise Development
Yeor2 Report. . . 34
. MoiorFindings of JUBOKEN
Socio-Economic lmpoctStuoy

5 FINANCIALREPOM 62
 -

MESSAGE
THECHAIR
FROM

A l l i l { l l UL h N l Y f ' A R
thot wreoked
The veor 2O0o wos morked bv o series of filses
economit situdtion
hovoc on the politi'ol ond' inevitoblv' on the
in the .ounrry,
obondoned
During the first holf of the veor the Eslrodoodministforion
Muslim group
neqoliotioneond puBuod o toiol wor poli'v on the seporotist
inirostructure
in Mindonoo, d€strovingtheir comps ond voluoble
obduct€d Filipinos
in ihe Pro.ess Al'rosl s;multoneouslv'o ler'orisi sroup
chips Ior severol
o, w€ll 03 for€isn tourists dnd held them os borgoinins
months
wos ensondered
During rhe second hol{. on even more explosivesitudtion
os people werc ollrdgod bv ollegoiions of corruPlion
less thon the
dnd plu.dsr of unimqg;nobl6 propodion commiited no
pressurethe
Presidenthimself Thus, p€ople were mobilized to
PhiliPPin€lesisloture to inlpeoch' try ond conviclthe President'
events
As lhe country continued to be held hostoge bv the Polirlcol
deter'ordie
thot wers unfolding, the frogile economv soon begon to
leodership
By the end of ihe v€or' th€ loss of conf;dencson the counlrv's
index'
monifestediiselfihrousb shorp decl;nesin the stock mo'kel
PhilipPins 'urrencv
increosesin inlerest rotes, ond lhe depre'iotion of ihe

O N F O U N D A I - I O N 'O
E TF E C T S SP E K { T I O N S
of these crises'
lhe Foundolionwos not spdred ftom the negdrlve efiecfs
For one, il becornemole difii.ult lo exPlore new proie€rsin Mindonco'
provin'es' rhe
Eventhough lhe ormed .onllids were confined ro specific
ro llourish'
o businessenvitonment wos simply not conducivefor enrerp'lses
sufie'edonoiherveorof decl;ne
Foronoiheagrosseorninsso{ the Foundorion
 f

o
=

INCREASED ASSISTANCE
A M I D S TT H E C R I S I S
C *E wfiole, however, lhe
Hlo|i .onllnued to expond
l €rJtonce lo .onmunllt-bosed LEVEMGINGASAN
-tsrFls€t In sPll€ ot rhls
STRATEGY
EMERGING
-fulen(e. Th6 taond.tllon hos aonllnued lo pulsue
AtiE rhe yeor,lh€ BoordoI Tr!,ste€s (reo ve slrclegies under condltlone o[
aros€d th€ lotol buds€io{ ths Smcll un(edqlnt Armed rYAh|ts unlquc expettise
C-r Focilit Wirho biggerollocolion, on lhe dltfeter Eco-Enlorpdrdi, lho
Fo'rdolion wo6obl€ to supporl ioundatlon hsE exlendod leahnlcal oE3blsnaa
F*rn for the y€orcomPor€dlo |o yorlous Inrlilullonr In tho tlelds of iolld
btE previousperiod. wosle mondg€menl ond ruf,lolnqble
ogrlcullure'
ih€ numberand volu€of
inveslm€n!opprovols Thedois on opprovolsond lh€ loon portfolioof lhe
{or lh6 ysof 2000.Th€ Founddliondoesnol odequolelycoptur€thisiyp6
ol proiectsn€o.lydoublod of servicesincono finonciolsuPPorthod bson
9 in 1999lo I7 duringlhe Yeor' gronled.Yelf'rndslev€rogodos o rosullofihis
voluewos 87 millionin 2000 servic6hovesignificontodreoch ond long-losting
drly 31 millionin 1999. €ffeclson ihe communitiesand oih€I instiiution's

Thus,stortinsrhisyeor,th€ Foundotionsloff hos

b€enqiv€nthe mondateio pursuoond monitor
the lg.hnicolond leverosings€wicesit provides

E T H R U S TF O R2 0 0 1 :S T M T E G I CI M P A C T
ft ot rhe cris€s exPe<tedlo drdg on wcll inlo the y€or 2001. lhe
"lie.ls qi qn opporlunlly lo. ll! podners fo qchievo
views thls Predl.omed
impdci on lhe seclor where fhey belong'

r, rh€ growthin the fomilieslivingbelowrhe Povsrtvthr€sholdsignifiesthe urgencv

ng microfinonceseNicesto orsos where there is o concentrotionof poor households-
instiiulionsmusfbs upscol€dond sources
ro o.hievethis,rhe copociryof microfindnce
finoncing developed.

nbgniiude of the problem is simply too big to be lo'kled bv onv sinqle enlitv As such'
lti.Etion orovidesth€ impetusfor Postible ioinr prosroms with olher instilutions' including
the bosis in th€ Foundoiion'sconsrnuenciesfor o
 K
THE
FOUNDATION

I B A C K c R o u N.D. . . . . . . . . . . . . . . . . . . _
7
r THEfouNDAltol{,svtstoN
....... 7
i rHE FOUNDA?tol{,s MtsstoN . .. _ . 7
r T H EB O A R ODf TRUSTEE . .S,....... 8
I IHE GENTNTAI
BACKGROUND
On Ausurl 11, I995 lho Gov€mm€nts of the Philippines ond Swiizerlond
iJn€d o BiloierolAgro€monlon ihe Reduction of the ExternolD€bl, Th.oush
ai' ogr€€ment,Philippin6bildrerdldebtio Swifzerlond wos conc6lledwith lhg
dEolion oI o fund equivolernlo 50 perced of lhe d€bt'sfoc€volu€. Thavoluo
oarhistudd ;n Philippinopesoswos PhP454,922,597in Sspl€mb€r1995.

Soclely,Inc. (FSSI)
TIE Foundolionbr o S'rstoinobl€ is o non-stock,non-profit
bondoiion orgoni:edio manogeond administerfhi! fund.

THEFOUNDATION'S

VISION
tte ,ol,owing ore rhe i(ey lorms in lhe Foundorion'svisionj

. Susfoinobleenterpriseslhol ore
community-orienled,ecologicolly
sound,ond economicolly vioble
will be supportedond promoled
. Prolectsshould providemoximum
benefiffor ihe moximumnumber
of beneficiories.

THEFOUNDATION'S

MISSION
t?E Fourdotion wos estobiithed with tfie misioDi

I To serye os o resource inslilulion

\rii'
for lhe economic emoowerment
 1.5.

T H E BOARD T H E G E N I R A LA S S E M B L Y
O FT R U S T E E S Thefoundofionis monosedbv ond is
occouniobleto PhiliPpin€NGos
Government' throushthe DePortment
,. r* o-.0- *"'c The PhiliPpine
".i ore representedin ihe Assemblv
of Finonce,ond rhe S$ss Confederotion
Foundoiion'sBoord ond in the BoordofTrusie€s'
for the Yeor 2000: TheAnnuolGenerclAssemblv M€elingwos hsld lostMov 3' 2000
w€'e ds {ollows:
ri" inrlirurio*t *".u'o ond their dasisnoted'epresenidlives
CHAIR;
Misuelvillo-Reol
NASSA Asso(iollon of Foundotlons(AR'
sr. nosdnne Molllllin,
5PC CONVERGENGE, June Rodriguez
LuzVillovirov
vtcEcHAIR: Oepdrimenl ot Findnce(DOF)'Aurcro
CONVERGENCE E.umenicol Developmenl coopetqtive
June Rodriguez So(iert (EDCS), Mo. Lourd€sLodesmo
Freedomfrom Debl coolirion (FDc)'
Mo.ToresoDiokno-Poscuol
HEKS
lcrborc Soldzor Green Forum (GF),T€rrYNolosco
crupo ng lokos ng Kobobqlhon
(Glo) THI:
MEMBEiS:
HEwITAS, Afion€ Bi.kerl
TOUNDATION
NATCCO STAFI
Joime Pongonibon Mogbosso Kilq Foundollon (MKF)'
leodulo Poderet Thefollowingwere the
PBSP Norioncl Council{or Sociol Foundotionotfice6 ond
Gll Solozor Development(NCSD)'CorozonYororso slolf for the Ye6r2000:
Nolionol Coun.ll ol Chur€hesin rhe
tniguel Vllo'Reol
Phllippines (NCCP),RommelF' Linoloc DIRECTORl
EXECIJNVE
FDC Eugeniofrl. Gonzol€s
Mo. tereso Diokno- Nofionol Confederorionot
Cooperolives(NAICCO),Teodulorooeres DIRECTOR:
ASSOCIATE
Enri.o O. Gorde
Nolional Se.reroriot for So<iolAcrion
EX.OFFICIOMEMBERS: (NASSA),Sr RosonneMorrrnn rrL SENloR OFfICER:
PROGRr'"U
swss EMEASSY RicordoE' TorresJr
NGO Cenrerfor CooPerotlve
DeveloPment(NGO-CCD),AnihonY PROGRAMOFFICER:
DOF Sylvlo RochelReyes'sescon
A'rroro Luz villovircy
Porrnershipof PhilippineSupporrSeryi(e COORDTNA'iOR:
PROJECT
SECREIARY/
CORPORATE Asencies (PHIISSA),CesorVillonuevo Corlos s. En.ornocion
COUNSEL:
Philippine Business{or. Sociol Progress
LEGAL
FINANCEAND
AnY. Morvi. M.Vf' (PBSP),FlorindoLoconloroy OFFICER:
ADMINISTRATVE
Erlindo Torres-veldrgo
Phillppine PsrtnershlPfor rhe
Developmed o{ Humon ResourcesIn y'.SSISTANT:
ADMINISTRATIVE
Rurol ireos (PHILDHInA),Art Bernordo Avelino P Logmoy

Womeds A.lion Nerwork for - BOOKKEEPER:

Developmenr(WAND) Reb€ccoronood Aidc M. Boringon
SWISSCON'ACT,Poulweiier DRtvER/MESSENGER:
&
Zenon C. Csrtogeno
HIGHLIGHTS
0F2000
Eco-Enferprise
Developmenf ProgromPerformonce
. TheECO-Entsrpdse . APPROVALS t3
D e v e l o p m eFnf ol m € w o r k . . . . - . . . . . . . . . . . t 0 . Proposolsond App.ovols . . t3
' A.tive Portners tl . SmdlG l ronis........... t3
. New Cotegoryo{ ECO-Enlerprisos . New Progron lnveslmeds t3
o n dP o r t n e r s ...........12 . Approvols by Instrument . . . . . . 11
. A p p r o w l s b y E c o - S y s t e m. . . . . 14
r ]TCHNICALAND MARKETING SERVICES 'I
,... 2 . A p p r o v o l sb y E c o - E n i e . p r i s € . . . . . . 14
. Te(hnicol Support . . . .. .. 12 . Approvolsby Region l1
. M o r k e t i nAgs s i s t o n c. .o. . . . . . . . . . . . . . . . . 1 2
T H ED E V E I . O P M EPNOI R T F O L I.O
......., t5
. Portfolioby Instrument t5
. Portfolioby Region l5
. Po#olio by Enterpris€ t5
PORIFOUO Q U A U T Y. . . . . ..... 16
. Restru.turing l6
. N u m b eor f A f i e c t aAdc c o u n t.s. . . . . . . . . r6
. C l o s s i f i c o roi foAnc c o u n.t.s. . . . . . . . . . . . . . 1 6

InstifutionolPerformonce
oRGANtZAflONAt ASpECts. . . . . . . . . . . . . l 7
. Meelings of the GenerolAssembly....... 17
. M e e l i n gos{ t h eE o o r d
o f T r u s r e e. .s. . . . . . . t 7
. StoffCon{erence!. . . . . . . . . . . . . . . . . . . . . . 17
. S t o fD
f e v e l o p m eo nn tdT r o ; n i n .s. . . . . . . . . 1 7
F I N A N C I APLE R F O R A T A .N. ,C. .E. . , .... ]8.
. Revenues ond Net Income . . . . . . . . . . . . . . . 18
 2.r.

ECO-ENTERPRISE
DEVELOPMENT
D E V E L O P M E NFTR A M E W O R K
T H E E C O - E N TREP R I S E
fhe Foundation pro"o.llvely promotes Eco-enrerprlses'
lhe.e ore soclql enretprlseslhdr exemPlit rhe follo',vingcrirerio:

o) €ommunlly Orienlollon
b) Ecologlcol soundnessrond
c) Economi. vlobllllY.

Since 1998. FSSI

hos been evolvlng

ot ECO-lnlerpilses.
It ls premised on
buildlng vldble

respond lo lhe
emergin9 con(ems
of fhe diflerenl

These. i.r rurn, ore

interdep€ndenlly
linked wi t one

lil
 I

ACTIVEPARTNERS
Thedi$erentclossificoiions ond the oclive porlne6 ofrhe Foundotioaos o{ the €nd
of ECO-Enierprises
ofthe yeor oro lisl€dbelow.The porlnors
wilh bold letter: were those opproved during rhe yedr o

Technology/Servi(es Clusler 2
. Quddvoni Engineerihg seruices M o c h i n eF a b r i c o l i o n
M o c h i n eF o b r i c o t i o n
H ! n o n D i m e n s i o nE
s nlerprises Refurbishi.q
o f c o n i o i n e rv d n s
. HASTK/Psl
' AIIKHA Video Ielephony for oversedsworkers
Microfinonce Cluster
. N c w R u r o lB o n ko f S o n L e o n o r d o( N R B S L )
' C e n l c rf o r A g f i c ui u r c o n d R u f a lD e v e l o p m e n(lC A R D I
. Cosoyon Volley Confederoliof of Cooperolivesond
Developmeni Cenler (CAVALCO)
p I c o n s u m c r eM ! l i i P ! r p o s ec o o p e r o l i v e( l P l LK O o P )
B o y o r M i . r o t i n o n c e - A B S - C BFN
oundolion
A o n c eo { P h i l i p p i n e
P o r l n e r feo r E n i e r p sr e
D e v e l o p m e n(l A P P E N D I
' I U l o ys o P o g - u n l o dI,n c
Coconul/Coir Dusl Cluster
. Coco Techhoogies Corporolion M d r k e i / P r o d u dD e v e l o p m e n iO, r g o n i c

Enlerprises
TUBOKEN De.orlicoting, Produclon of Anli-e.osion
devices/coconulpeol bricks
Decorlicoiing,cocofiberhdndicrdfls
! n s o p p o r o s o K o l u s u s o nn s S o m b o y o n o n
(LIKASJ Siitchedcocofiber pods
S . n d i g o nn g M o g s o s o k o
D e c o r i i c o i i n gO, f g o n i cF e d i l i z epr r o d u c t i o n
D e . o d i c d i i n gH
, o d i c ul u r e
SuslcincbleAgriculrure Clusrer
. i - . . d I n i i l o i i v e fso r N e s r o s D e v e l o p t r e n(l B I N D )
' P o l o w d n C e n r e r t o r A g r i c u l t u r o l R e s e d r c ho n d H e r b o lP l o n l sP r o c e s s i n s
Troining (PCART)
' Aloy Kopwo (AKAP)
. - : , . ! d i n M ! l i i P u f p o s eC o o p e r o t i v e M u l i - C r o pT r o d i n s
'::SFJ Orgon c Fedi izer Produciion
50lid Woste Mdndgemenf Cluster
' _ : , ! 1 e f o r t h e D e v e l o p m e noi f E c o l o g i c ool n d . W o s i eM q n o g e m e n t
-:,.oiionol Allernoiives
gadweed
 N E W C A T E G O RO
Y F E C O , E N T E R P R I SAENSD P A R T N I R S
It moy be noted Jhot new tpe! o{ busineses were p.ovid€d support by lhe Foundofiondurins ,he yeor.
Ar su<h, o new.otegory of ECO-Enr€rpris€s wos creored,<lusrodngrogerher porrnersengdsed in
mo.hins fobricotion, low-.ost housins, ond video retephony. This wos co ed Technotosyond Services.

TECHNICAT
AND MARKETING
SERVICES
lhe Foundatlon does T E C H N I C A LS U P P O R T
nof onlt provlde
The proiectsprovidadwith technicolservices foc,rsedon sotidwostemonogemenr
flndnclql 6upport to
ond Eustdinobleogriculrur€.In po.ticulorth6 Foundotionprovid€dossisronce
ro
Ils pddnel3. Cohsls-
th€ followinsorsonizdtions:
lent wlth ltr lco-
Er erp.ise dev€lop-
menl frornework Solid Wdste Mdhogement " opprox
fSSl provldes t€chni- A m o d o D i o zE d u c o f i o n o l D e s i g no n d I n s r o l l o i i o on f PhP325,000.00
col dnd morkerlng Foundolion, Midsoyop, wosie pfo€essingdnd
Cotoboto recovery sysiem Embossy/PBsP)
osslsiofte lo other
tikds Koyons Kdunldrdn Desisn of Sotid Wosro PhP212,000.00
Foundotion, Kiddpowon Monogement Sysiem for {fromthe City
Overiime,o numberof City ond HEKS Kidopowon Ciry

d6v6loped without
Citycouncil{o.
dir€ctFSSIporticipoiion
in lh6 lindncingospect Yeor2001
but with Foundolion J o i m eV O n g p i n Design of Solid Wdsre us$ 30,000
Monosemont Sysiemfor
siaff providingcrirical goguio City Soguio City
rechnicoland morker SusrolnobleAgrtcuhure
ing inpuls.In these Deporlmentof Agrorion Instollotion
of fonn
.osos,FSSIhod been Reform-(DAR).Asion defronstroiion sites for
obleto leve.osefund-
AgriculturolRuro| Support technotosiesin Nuevo Eciio
ing suppo.lftom othe.
ProsromDesisnfor uplond PhP800,000.00
Koboboihonsq DRI tormingsystemsond (fromSwiss
Theseproiectsore not Embossy)
copruredin tho listo{
proie.tsopprovedond
in rhe loon portfol:oof M A R K E T I N GA S S I S T A N C E
ihe Foundotion.
Assu.h,
membersof rhe Fsst TheFoundotion olso porticipored;n rhe onnuotBioseorchTrodeFoirorgonized
by lhe Cenlerfor lnier.ationolTrodeExposirions& Missions(C|TEM)underthe
o DeportmeniofTrodeond IndusrryThiswos on exh;b; hor showcqsed
norurot
thesebe reported ond o.son;colly-grown
producrs.
2.2.

PROGRAMPERFORMANCE
]

o
I

APPROVATS

IROIOSAI-A
SND AIPROVALS
r Arobl of 80 proposolswore rsceivedduring
tho y6oi Of lhis number, 63 w€r6 provided wilh
ossistonce.Thus, rhe efteclivorssponserole rs
S M A L LG R A N T S
Duringlhe yeqr,lheBoordof Trusleos in(reosed
the ollocotionfor smollsronts.With lhs
increos€dcoilins,lhs Foundotionwos dble to
support45 proiettscomporodio 36 in 1999.

Forlhe yeor 2000, L86 millionwos sronled

lhroughthisfocility.

SMALLGMNT FACtLtry(0Oo)
2,OOO

I,600

I,200

800
t 996 1997 1998 r 999 2000
ltltlPRoPosALs! APPRovALs 400

0 '1996
)997 1998 1999 2040
lltl AMouNrAPPRoviD

NEW PROGRAM
INVESTM
ENTS t8
I Toiol opp.ovols for new t6
progrom 'nv€slmenls l4
doubled compdr€d ro the 12
previousyeor From 9 t0
opprovols in 1999, this
increosedio I7 in 2000.
 APPROVATS
BY ECO.ENTERPRISE
r Th€signiffcqntporrionof new opprovqts
wore
tor the Technotogy/
Seryi.esctusr€rto|owed
APPROVALS
BY INSTRUMENT by micro-finonce
ond .oconurbosodeni€rpris€s
. Loonsopprovedr€oched42.8 mi ion p€sos croplonds/Sus.
Ag.i.utrure
in lh€ y€or2000.prog.om-r€toled
gronrs
omountedto obor,t855 rho,riondpesos.
r l,ikewise,
o loon guoront€eequivolen o
4! millionpesoswos€nendedfor o tow-cosr
housinsprosmm.

lYo Te.hnology/ServiGes
5a% 13yo
t
II
490/d

't
I
.\\\d
APPROVALS
BYREGION
r Most ofthe n6w opprovoh wer6 for proisds
with nofionol chqrocr€r

Minddnqo Vl5oyos
APPROVALS
BYECO-SYSTEM 40/o \yo
r N6w invesimenis
opprov€dwer€ 590/.

predominonrly
lor tow-cosrhousing.
. Thiswosfollowedby proiecisthorore mutri-
eco-syst€m
in norure(microtinon.e).

Croptonds/

13o/o 1Yo
cropronds ,vtuhi-E.osy5tem

o
 t

2.2.2.

PORTFOLIO1
THEDEVETOPMENT
o

BYINSTRUMENT
PORTFOLIO o
=
. Th€currenrporltolioincludssfour lypesof
findn.iolinstruments (excluding
gronh).
Loonsorc siill the predominonlinslrument.

B YE N T ER P R I S
PORI'FOLIO E
. The bigg€st€xposur€sof the Foundolionore
dnd coconutonterprisss
in Microfinonc6

-
(foPs
te.h/Olhers
Seoweed I O9o

| O R T F O L I OB YR E G I O N
r The proi€cisor€ locolsd in poor or6os
orto* difl€rcnt isldnds in the .ou^try.
 2.2.3.
QUALITY
PORTFOLIO

RINC
RESTRUCTU C LASSIFICATI ON
O FA C C O U N T S
. Theeftsd! ot lhe I 997 Asioncrisishos
occounts
As of D€comber2000, p.oblemoric
slabilized,Only on€ proiectwos restruclured
\E occolnls) cosPtised S Perceh\ o\ \o\o\

ADIUSTMENTS
PROGRAM
20 Upon the mondot€ of lhe Boord, ddequots
t8 provisionshove b€6n s€l up io cover losses,
l6 should ihey moi€riolize.
14
12
80/a
t0 65%
8

2
0
1996 1997 1998 1999 2000
15vo
I FoREclosED
!!i! REsrRUcruRED
trllllNFwINVFSTMENTS
LEOTND
A : Up-lo-ddie o.counls
B: Poslduo<ot=I monih
C: Pdstdus > I month blt < 3 Bonths
D: Pondue>3months
E , Foredded/tesol Adion

ACCOUNTs
OFATFECTED
NUMBER
r ProblomAccountsremdinto be thoseo#€ctedbv the crises
(prc-1998opprovols)

5 16
1 12
P.ev Reslructuring
o Foreclosed/LesolAction 3 6
Prev Reslruciuring 3 5
 6
o

I N STITUTIONAL PERFORMANCE 9

rltrri

o
l.l.

ORGANIZATIONATASPECTS
t €t;ngs of lhe Generql Assembly Meelings of lhe Boord ot truslees I
-{
8TH GENERALASSEMBTY MEETING.The r€sulor The Boord of Trusi€eswos obl6 to meet fiv6
:€.ero Assemhlywos held ci the FSsl Form ond Troinins (5) times du.ing the yeor. ll wos during
: ? - i e r 0 1S i l o n s ,C o v i l eo n M o y 3 , 2 0 0 0 . T w e l v e( 1 2 )o f t h e rhes€ meer,ngsthoi proi€ct proposols ond
=- or membeB oltendod while two membeB desisnqled poliq recommendolionswer€ presenled
::.{ie5 omons those presenl.A .epresentdtiveof the Swiss ond opproved by rh€ Boord.
i-.ossy wos olso rep.es€nt€dduring tho meeling. One of the meelingswos held in Logospi
r. ,cd of lhe regulof ogendo, the ExecutiveDireclor ond Ciry-This enobled members of the Eoofd
t: &socioie Oirectorpresented the highlighis of of Trusteeslo visit three pdrtneB of the
a.j1ions of ih6 proviousyeor Likewise,sl€crions{or Foundotionengoged in coconul coir
'E-.e6hlp to lhe Boord of Trust€eswere olso conducted.
-rges!hs were
os follows: Conv€rgencewos re-€lecled to
Sfolf Conferen.es
+€ 8oord, whilo PBSPreploced NATCCO.
'r. A stdff confefencewos held ol Aborlon in
-eiins then iockled rhe mondote of the Foundoiion to
Polowon in Moy,2000. The Foundotion's
€1c the membershipof the Generol Assembly.The stoff
iwo unils - progrom ond occounling/
G.-,ed the nominotion processwhere oll mombe6 were
odministrotive presented iheir respective
=e:.o s u b m i lp o t e n t i o l c o n d i d o i e os n
, d t h e c . i i e r i ou s e d
occomplishmenlsfor the firsi holl of lhe
t -e MembershipCommittee creoted by the Eoord to
yeor ond plonned their o.tivilies {or ihe
F:+- rhe nominees.The GeneroI Assembly then deliberoied
-8 . 'he pro.ess of invilins new members. Afler some
j<-liions, ihe group mondoted the fSSl siofi lo extend on slolf Developmenl ond froining
r'-::on io foor notionolond fo'ir regionol nen{orks
Durins the yeor, selectod sloff ottended the
-=.rcJsly idenlilied by the Membe.ship Comffihee.
followins confei€nces ond iroining coursos:
--{ slH
MEETINGOF THE GENERAIASSEMBLYThe
COURSE/5EMINARTITLE
..e_-! wos convenedot Moxt Restourontlost November
--
2lO0 wilh lhirt€en resulor membeB oHending.The I Web PdgeD*ign ond Mointenonce
.-le*niolive {rom the SwissEmbossywos olso present. 2 Ndtiondl Conferen.eof SolidWosie
Associolionof the Philippjnes
}J-! lhe meeiins, iwo resionol netdorks inviled ro ioin 3 Forum on Micronnoi.e
'l.e =:Sl Generol Assemblywere {ormolly introducedio the 4 Orsonic Production
t Adninistrdtive stofl
:E-, Their represenlotivesmode o brief p.esentoiionof 5 Euilding Eleclft!l wking ond Mointenonce
1€ _ :6peclive orgonizotions. 6 Module llon Humon R6ource
Dwe opment Diplomo Cou.se
-€
3ene.o Assemblyolso deliberoted upon o proposol for
 2.3,2.

FINANCIATPERFORMANCE

R E V E N U EASN D N E - II N C O M E
r Revenues.orninuedto d€cline due to lowe'
interestrotes prevoiling in ihe morkot
r At tho some tim€/ expens€s'ncreosed becouseof
bigser ollocoiionsfor smoll granls ond p.oboDre
FUND G ROWTI-I
. The Counterport Fund srew only in nominot
terms in 2000 compqred to positivefeol srowrh
ochieved in 1998 ond 1999.

uof 12
5 01 to
,o] 8
30.

.:L
20l

0
1996 1997 1998 1999 2000 1996 1997 1998 1999 2000
-+. TOTAL
REVENUES fi FUNo
cRowrHR TEJ!!lltNFrATtoN
R^TE

C O S TE F F E C T I V E N E S S A P P R O V A LVSS F S S I N C O M E
r ln spiie of lowe. r€venues,th€ Foundorionhus r In linewith th€ cenerol Assembly,s mondoreio
monoged to keep operoting exp€nsesbelow rhe in.reosetund uiilizoiion.dpprovolsfor 20OOfor
opper limit of 25 percenr- exceededlhe net in€ome;n 1999.

30r 90
80
70
20 60
50
4A
I
t0 30
E 20
o 5
to
0 0
1996 1997 1998 1999
 GING
-ENTERPRISE

f n e L O g I CO l M l C r O r l n O n C e .2o
r tHE DEVET.OpMENI CONI:XT . . . . . . . . . . . . . . . . . . . . . 2 l
' Th€ Business of the LowIncom€l'louseholds 21
. L o b oFr o r c €
P o r l i c i p o t i .o. n ......
. Sourcesof In.ome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
. N u m b eor f l - i v € l i h oAo cdt i v i t i s. .s. . . . . . . . . . ...22
. E m p f o y m ebny O t c . u p o t i o.n. . . . . . . . . . . . . . . . . . . . 2 2
. OccupotionbyGend€r . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3
. s u m m o royf F i n d i n g .s. . . . . . . . . .... .23
'Geogrophicol Dimensions of Foverty. . . . . . . . . . . . . . . . 23
. M o s n i l u doof P o v e rbt yy l s l d n d G r o u F i n s. . . . . . . . . . 2 3
. Mogniludeof Povert by Resion . . . . . . . . . . . . . . . . . . 24
. Mogn ude of Povertyby Province. . . . . . . . . . . . . . . . . 25
. S u m m d r. y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5
r tHE ARrrHttlEItc
oF Low-tNcoME
BoRRowEns
. . . . 25
' PrimqS r yo ' r r c eo sf C r e d iqt n dL o a nS ; z e. . . . . . . . . . . . . 2 6
' CompdrcriveReturnsf.oln Productive Activities. . . . . ..26
' The Repoyment Porodox. . . . . . . . . . . . . . . . . . . . . . . . . . . 28
' SovinssMobilizotionomonslhe Poor . . . . . . . . . . . . . . .2a
' T h eR o f e
ofcredir ..........29
. t H E n n I c R o F f N A NICNES I | T U I I O N S. . . . . . . . . _ . . . . 2 9
' Synthesis: WinninsSrrolegies of MF|s . . .. ....... . . . .29
'The FSSIPortne6;nMicrofinon.e. . . . . . . . . . . . . . . . . . . 30
. T o t ool u t r e d c h ...........30
. L o o nP o r $ o l i o ............31
 THE LOGIC
OF MICROFINANCE

lhe mlcrolinon.e In the lostthre6yeors,th€ numberof ctients,omounrof toonsdkbu6ed,

sector IE curredlt ond sovinssmobili:edby the mjcroffnonce
insritulions(MFk)hovebeen
drro.rlng wlde growng ot on oxpon€ntiotrore.As MFtshurdterheirleorningcutues,
ailention for its ihoir capocityto seryeexpondsropidty.
oppqfenf suac€ssIn
Whotis ono:ing ;s,rhefocrlhoi ihe ctienrsof ihe MFtsb€tonsro rhe
provldlng lending ond
poorersegm€ntofrh6 poputotionin o givencommuniry. As such,rhe
tsvlngs servi.es to rhe
nolionihot lhe poor ore not bonkobteis roiollydebunkedby lhe MFI
thousonds ot poor
fqmilie3 In rhe
8ut who qr€ the poor ond whichs6smeniof ihe microfinon€€
s€ciordrs
we referringto? Thesene€dlo b€ ctdrifiedfirel.
Without doubt, rhts ls
due ro the increoslng In rh6 Philjppines,
th€ governmonr definesthe annuotper copitopoverry
lhresholdos th€ onnualpor copirqincomorequirodro sotist the
orgonizotlons that minimomnutritionol.equnemenrs {2,000cotories)ond other basic
hove bean oble to needs.As s!,ch,thos€fomitieswhoseincomesfoll botowih€ poverty
rnalntoln ex.ellent thresho'do.e consid€redpoor ThoMFtswe referlo are thossrhorhdve
odopi€dsp€cificospectsot rhe ,,Grome€n,,
technotosyin their
llnonciol
inlermedidtion. Thelr
In thisshod stud, we shollrryro disseclhe vori6usfocrors,hor mods
MFlso successful
providerof seNicesio ,he poo..
repcyrnent rotes ore
not only ot por wlrh First,we sholltoke o loo! or slne of rhe generot.horocrerisrics
of ih€
credir rooperortves low-incomefdmiliesin the phitippines. In porii.utor,we sho onolyze
ond rurql b6nks, som€ theire.onom;cprofileond iheir geosrophicottocotjons.Thes€ore
the
oI rhem er.eed rhe moreslrotesi.concernsof microtinonce.
performonceof rhese Nexl,we shollfocuson operorionolosp€crs. We sho discussrhe demond
inslifutions. for creditofrhe poor by srudyingrheir boffowingbehavior:

Thereqre voriousliteroturerego.dingpoveriyond ihe credirmorkei.

A,
such,we sinply reviewthe doroond moiorfindingsofihese sfudiesond
reinterpretrhemdcco.d;ngro o m;crofinonceperspecnve.
Finolly,the profil€ond pe.formonceof FSSIporinersin rhe microtinonce
o
c,ustefshollbe presenred. Theseor€ rhe primeexomptes oI succ€ssful
m;crofi
nonce;n;rioriyes.
 g

;l
oi
THEDEVETOPMENT
CONTEXT lt,

: H E B U S I N E SOSF T H E t O W I N C O M EH O U S E H O T D S
ic hod menfoned lllor
lr-in.ome lomlll€s crc the o. Labor For(e Porll.ipulion
Fintory cllenrs of . More lowJn.ome households.nler rhe lobor force. thls meons
-<rofincn.e inrlirutions,
lhol thore b o ldrge polenfiol market lor microllncnce.
& !!.h, lt lb lmportod thor
rG 'rdderstond lhem. Comporedlo the nolionoloveroge,loborforc€ porticipoiionof ihe poor
is hish6r.Thi! moonsmorepeopl€in the low"incomesroup ore looking
ltEr ore lhe e.onoml<
for wo.k or 016qcluolly*orkjng. ln 1992,for instonce,88.3 per.onlof
-ivities ol the poor? lhlg
mol€sond 53.8 of f€ftolesdr6 in th€ loborfor.€ comporedto 81.7
- *|€ querllon lhql wlll be
percantond 47.2 p6r.enlof th€ nolionolpopulolion,rospectively.
dessed In rhe
-e.dlng porqgroph6, We
br 6n concern3 lhcl ('re
.ddor|l lo our obie.llve ol
&ing why mlcrollndn.e Mole A1.7Y" 88.3%
F6mole 47.2% 53.8%
Soui(evnucio(1994).
Cit€dinAldobo.ndTldno,
19t9

b. Sourae3 of lnaome

r Within low-income hoGcholds, lh. biggosl scamerd

ls lhe 'eilrepreneuridl poon' Also, ther€ ore
indlccftonslh.!t migrdnr lcbor is increcslng.

In the Ph;lippines.
loborobsorptionby lhe formolsectorhds remoinod
slogndntovertime. In focl, us;ngwoge ond sdloryrcrk os on ind;cotor
offormol seclorsrowlh, il mdy be soidrho his soctorhosoctuollybeen

Wirh rhe limired obso.privecopocit of

lhe fiormdlsector,where does rh€ poor
derive lheir incom€?
27.O 27.7 26.6
Th€ dotd €vedl3 ihdr the greoter
F.e.prenueriol Activities 41.5 42.1 43.9
moiorit of low-income households
O-er Income,of which: 3t.5 30.2 29.5
. '.lei shore of c.ops relias on GrfrepreneuridloctMties to
2.2 ?.6 2.5
. Assistoncefrom obrood generdte in.ome. This segmenr hos
0.6 1.0 1.3
. Assistoncefrom domestic been increosingover time.
5.9 6.0
 domesricsourc€shdsbeensr€odityincreosing. This;ndi.orasthor d. Employment by O.cupotlon
lobof misror;onis b€cominsan oprion{or monyfomitiei.
' Poor householdcore
Th€ presence
of o loQe ontrepren€uriol
poolwithinrhe tov- engoged molnl)r in
incom€houssholds.oinforcesrha viewrho hereis o wide morker ogrlculfure-reloled
for mi.rofinonceservices.

Thus,lhoenterpris;ng
poor oro the mostoppropridtecli6nrsof Ar for os sectorolemplornsnr;!
microff
ndnceinsrituiions. conc€rned, poor household.ore
mosilyengogEdin osriculiure,
Number ot Liv€llhood Actlvlties fish€rySor€stry,
ond lossingond
r llost of lowlncor|G hoG.holdr hunlingoccupotions.This;s rrue
dre engoged
In lwo or n|orc prododlve acdrrlfils frorboth molesond femdtes.

lo cotnpcruote ior thelr lor In.onres. Ihe pr€dominonce o{ ogriculrur€

os o a.;maryo.cuporionk o
moiorfeosonwhy manyconrinus
ro live belowrhe pov€rrytine.
civsn th€ stoieof the ogricult\jrdj
sector,incomesdefivedfroh thjs
rource ars o$octed by toctors
b€yondths conirolof individuol
housoholds or evengovsrnmgnt.
Theseinclud€:dromoli€chongos
jn lhe w€othe.pottern
{e_g.EtNiho
ond to Nino),oligopoliesond
Tholtho poo. tondedro work mor€to componlotoior fheir tow oligopsoniesin rhe morker,eic.
incomosis lupportedby the fdcrtho hoy engos€din muttipt€
For microfinonce, ther6fore,ih€
economi.octiviries. from rhe oxhib;ibetow,ir moy b€ st€onedrhor thrustis lo helphoui€holdsdev€-
ftosl of ihe poor underrookrwo or threeocrivir;es
in ord€rto surviv6. lop off-forlrltivetihoodoctivifies.
this findingot{i.msihe
logi. thoi in provid;ng
finonciolservices to the

Professionol,iechnicot 3.6 1.0 |.0

householdincom€or Adm'nistrdiive, monoserioi 0.1 1.2 0.1 0.8
coshflow,rorherlhon Ciericol 0.8 3.0 0.9
revenuesfrom o sPecific 7.3 I4.2 24.6
odiviry.As such,lhe more 2.4 6.1 r1.5 14.0
opproPriate opproochis Agr, tishery,foresrry,Jogging 73.9 52.6 55.8 30.5
porfolio linoncing rorher Productionond rronsport 18.4 25.9 12.5
o 12.3
thon proiectfinoncing. Unclo5sifiedworkers 0.0 0.2 0.0 o.2
0.1 0.0
 !

2
It cender Summory ol Findlngs
o
ws summorize
thefindingsin thissection
osforrows: z
. A sreoter proporlion of low-income populotion is worhng or wdnts
2
. There is o lorse 'enrrepreneuriolcloss' omong lh€ vorking poor :I
. l-ow-incomohouseholdsengoge in lwo or mor€ prod'Jctiveodivities
ioin soles, . ThreeJourth, of moles ore in ogn.u[uro-r€loted ociivities€ompdred o
-d Droducllon
ro only holf for the women 6
' Only one oui of fiv€ mol6s iend lo 6n9oge in non-torm ocfivities
(productionond irdmpori).
;
. More vomen thon men ore in severdl o#-fdrm ocrivil;es(soles, o
l
sewic€s,ond production ond lrdnsporl)

Ar we sholl sse in subs6quentseclions,lh€se .onsidordtions or€ criticdl

in mdking microffnonc€inslitr,lionso s!cc6ss,

f!. the mol6s,olmost

*OO*N"''A' DIMENSIONS
O F P O V IR T Y
In lhe previo$ redion, we des.ribed the o.onomic prolile o, the
lowln.ome hou.eholdi. In lhls .cclion, we qsk the queitlon: Where
ore lhe poor? AB {re move lrom o nolionol lo o provin.lol perspec-
tlve, we con pin down lhe oreos where lhere ore .on.ernro ons of
poor tomiller.

into soles,produclion o. ,Vldgnitude ol Poverly by lslqnd Grouplng

r The numlr€r of the poor hos rl6en drcnialicolly

,lnce lhe 3torl ot lhe llnonclql crlsls in 1t97,

i' stores,food vonding

MAGNITUDEOF POVERTY
lE of 6bersor sewins 2,500,000

2,000,000
idicotes thot morc women i 1997lltl 2ooo
r,500,000 I
-!€sed in non-form
iol octivilies 1,000,000 rI rt
" -ored
-td
io m6n. And if th6
of microffnonceis lo
s00,000 i\m: :ffim$
3i l :MI\\\tr1 $.}"\\lli i
a.=*op ofi-fdrm employmed,
LUZON VISAYAS MINDANAO
kr n is losicolthol it targers
 Loon Slze Th€selo€ts showlhot lhe smoll
Primory Sources ol Credil ond
borrow€r5ore rotionolo d€cision-
r fhe inloriial !€dor M b€en lhe pri|n(lrt moke6. As vith ony borrow€n low-
poPuldion'
sour.e ol .redlt ol lhe low'ln'orne incom€households tend lo opProochthe
do not bonowfrom formol lender with tho leost cosl o{ moneyond
Thotmosrlow"in ome households
StudieEhove with flexible rspoym€d terms For most'
finonciolinniturionsis nol ol oll surprisins
(borrow€r rhis would b€ fri€nds gnd relotiv€s
shownlhol the coslt incurred bv lhe borrow€r
whsr€ lha l€rmi would mo3t likely be:
rr! .dion co3is)or€ rimPlv too prohibiriv€
n6or z€ro inlol€st rd{e ond r€poym€nl
'Pdydblewhen obl€' l6rms
!,nd6r

r Mott ol thc loons orG

. lnfo.mol 70 "'
30 35 bolow lo,0oo Peco$
. Formol
How muchdid low-incomahouseholds
borrorv?Forolmosloll mombsrsoflhe
lurninglo the lowsstincom€group{Cldssl), the loon
A! su.h, ths low'incomopopulotionhovob€on
informolssctorfor th€irffnoncingn6ods' omounlis l6sslhon 10,000Po6os'

for microfindn.e inslitulions; lhe

r Orvoroll, frtends ond retqlivG5 ore lh' moln
chollengo i3 to r.och oul lo morry
iour.at cl arGdll. Protatslonol mon€tlendctt pcople no€ding 5ft911omq'nli'
.!ra o f.rr ,e.ond, .lotoly lollow€d It rho
tormdl l.ndlng lmlilutlons'
nron€y'end66
whib w6 |end b b6li6volhol lha reqch ot lho
thii i6 not totollv
lmt bean so pervosivein lho 'ountrysid6'
conslilul'adth€
true. The t€oliv is thol telotiv6s lnd {ri6nds
rndin iourca o{ crodil ('t0 pe'(6nt)'
lo cdptura ont
lhe profet iotol mon€yl'nd€n ore obl€ b. Cornpotolive Relurn3
by the slot€
obod 12 p€rc6.rtol borroweB, iollo{ad lrom ProduallYe Adivillca
funds ond
.odrolled sociol s..!rily sytt€msond Pension r llelumi lo ogtl.ulh.tte cnd
5etvice3 ore hlgher lhon ttlutn5
b ||lonuiqdurlng qdivilie'

We hdd secn from Previouss€clions

3e In{ormor
F';d"/R"k;
. Prof MoneyIende6 12 Info'mol
. Gsls/sss/Pos-ibis 9 Fodol
. Cooperotives I Formol
4 Fdrmdl
. Lending tnvestors
. Londowne6/EmPloyers 3 Informol
in chud (l9961
o source ol Bdsi. Ddlo: sws Dalo sonk cil€d
lhot lho primorv otcupotion of low-
incone ho$eholds is dgric'rlrura'
Ths qu€stionnowis: givenlhek low
income.how could lh€Yhov€ Poid
high inter6l rdle!?
The ollswer is simPle.conirory lo
populor Perceplion,aigricuhureond
!€wice! ieclot! vield much higher
 3

about 500 pesosin workins

copilolwhichhelsheus€slo
z
purchoseingred;enrsond other
Agriculiu16/5erv;ces
n6eds.At the €nd ofthe do,
1,640 85%
helsheendsup with 650 pesos, :I
Ornomenioi Plonis I,928 t92'/.
imply'ngo nel inflowof 150
1575
1,213 ]] 1"/"
How dooslhe micro- e
8,947 59"/" enlrsp.€nsurossossthe o
8,095 36% porformonc€o{ the businoss? t
-
Shouldhelsh€bonow moner
l
losed on o sud€y of osroblishmenlsin o ff6h closs municipdli4,,
4 ottsmpted to compor€ lh€ net incomesond returns (lsing th6
Wo pres€nlvorio'rsffndn(;ng
nm!lo ner incomo/erponses)of diltureni livelihood underldkins!,
optionsfor lh6 dd;lycopilol
tlE outcomesore shown in E,(hibil14.
r€quiremenlof 500 pssoso
lc€d on tha dofo, iwo observolionsmoy be nodo. firrt, it mdy b6 dqy.Shouldour €ntr€pr€neur
.Fred thol, in obsoluts t€rms, incom€ nom monufsdur;ng is highor wishlo borrow,w€ ossumeo
rEn lhol of ogri.ulture ond sorvices. 5% interesirot6 par dor We
then comp(J16
fof Returnon
Hayevea when perc€nlog€sor€ us€d/ the reversais iru6. ln terms of
..r!ms, (n6r income/exponses)lh€ colculoled .elurns to os.iculrure ond
CdpirolondReturnon Equit

r&icos ore much higher lhon monufoctu.ing octivities. Whot conw€ observ6?First,
lh6 Returnon Copitol/
Ttr. distin.tion belwo€n obsolute figures ond proportions ;s crilicol.
Inveslm€nlformuloyieldslhe
trer income implies sredrer poverry,bnt o high€. .etum meons the
somerolio regordless of
diir}, lo pqy hisher interest.Following this losic, ihose in osricuhure
finoncingmjx.ln our 6xomple,
tn eNices drc poo4 but they.on obsorb d hishe..4t of moneyl
lh€ returnon coptiolis 3O%.
As such,usingthis meosur€,
! t- th€ mi.ro-cntrcpren6ur,
rhe sourceof finoncinsdo€g
I mke. b$lness sense to borrow

ff. inrerestrote f.om moneylendersis so pfohibitive, do€sn'r ir moke

Howevor,usinglhe R€lurnon
se flr peopl€ no! lo borrowA
Equifyformulo,one <on
.t ' <onsiderih€ onolysisof o simple vending business.A rypi€olmicro- observethot th€ r€sultingrotio
FEereneur s.lling 6ooditens in schoolsor officessldrls the ddy with incredses
ds ihe omouhlof
loon becomesbisser

Fromone pointof view,the

Ievelof hoppinessofrhe micro-
500 500 o s0% 30%
€nrrepr€neurincreoss!os hel
300 500 t0 30% 470/o
sh€ borrow!more.Thus,under
2AO 500 t5 30% 68%
.e.ldin .onditions,ii mokes
I 500 25 30"/" 125%
sense10useother
 Sdvings Mobilizolion dmong lhe Poor
lhe Repdymenl Porodox
. Ih€ poor con ond do sove' But lhe wov
' The hisher lhe inleresr,
io sove is ro lollow rhe torhulu:
the higher the tepsYmerf.
Revenues leis Sdvlngs equols ExPenses'
Next, we look into onother poPular notion of NGOS
Another intriguins question thor chdllengesour
,egording repoymenl behovior of bo(owe( Fot
to usuolrhinking i$: how con the poor genefote
insionce, NGOS exPecrtheir borroweFclienh
sovingswhen rheir dpenses ore lorger lhon their
mointoin their credil worlhiness becouseo{ the
revenuss?Shouldnt sovinssbe negotive?
tollowing;
int€resi Und€r conYeniionolrheory the derivotion ot
L NGOS offer lhe lishiesl ierms (e-s , Iower
sovinssis cdlculoted usins ihe followins formrno:
roto, elc ), therefore bo owe6 should pov rhem
'usurious'
fiBt rother lhon the lenderswith

2. NGO5 provido volue lormotion ond Propor N€t lncome or Sovings

educoiion befo.e loons oro siven out, thus'

borrowors know their resPonsibilitiesdnd Thus, if we sr.ictlyfollow ihis formulq, we con
conclude thdt the Poor connot sove

Unlortunotel, the empiricol evid€nc€ shows thol lho However,the solulion to th€ problom is lo reverce

r€versois troe The repovmeni Perlor'nonceof o items in ihe eqodtionr low-income households

maior NGo shows th€ {ollowins trends: follow o difieGnt lormulo:

less Sovings

040
3,5 65-69
Whor ihis simply meons is rhol uPon receipi ol
6-8 70 73
lheir cosh revenues,the fksl thins thot people
g 79-42
should do is io immedidielv set oside a portion of
12 84
ihe fLrndsos sovinss.And wirh the remolnins
t8-r9 a7
bolonco,ihey hove lo budsel then exPenses
2021 98
While the omount of sovingsis smoll per trdnsoc-
of o siven'redit tion, o consistentond frequed oppli'otion of rhrs
Thus,the moreoccurotedescription
procticewill enoble peoPle with low incomesto
morkeris: the lenderwithhisherinterestwillrend ro
hisherrepovmentrotes. occumuloteo huse omo'rnt of sovingsover time
exp6rienc€

ConveBely,it offirms thol Poor

bo.rowers ore roiionole individuols
Like ony other borrower,rhe Poor
rend to borrow from lenderswith ,l 2
3
tx
ii
liqhter terms ond PoY-o#those
3 l 2
ia more sningent cond;tions.In other 2 3
I
words, people iend to bo.row from

e. lhe Rolo ol Credll
I Credit |' nol q Pri|nary
need of sonr€ seclors.
ln lhe end, however,is th€
provisionof credn ths
primory need ot rhe Poof?
In o surv€yof enlsrPrises
ln o mun;cipolity,w€ osk€d
people whot kind ot
ossiston.elhey n€oded
The resuht oro tobulolod
in Exhibi1
l 7.
ll is irioresling to noie lhot
thore engogod in
ogricuhurolociivitiessuch
os rico formins ond Poullry/
liv€sfock-roising hqv€
ronked ossistoncoin
terhnologyos lhoir priorit
convoBol, the n€sdfor
iE orher hond, who
bble reveolsthot lhose
-rEnufo.lu ns hove
-*ed thisos rheir Priorit
L6, n is .160r thol differont
-doE hove voing needs
The queslion is: ore we
Fwiding ihe opPropriot€
Gsisionce to our Portnels
I
z
o
3.0.
INSTITUTIONS
THEMICROFINANCE z
OSF M F I S
S :I N N I N G S T R A T E G I E
S Y N T H E S IW
we stnlhesize our findings ocrosi s€ctlons bt listlng oc'ordlng lo
pollct oreo ond describlng rhe corrdgondlng Poli'les procil<ed bv
mosr, if not oll. mi.rotinonce lnslirutlons. Ar msv be seen In lhe
exhlbtr below, lhe ml.tofinon(e In$iruflons h.rve b€en obl€ ro ollsn
o
Itsell o(cording lo lhe need! ond .horccterlstl's of lis clienis'
o
f
L o w " i n c o m eh o u s e - . Bronches
io cover
h o l d st e n d i o b e c o n -
ceniroled in clusters . Soirowersovers to be
orsonizedinio sroups
TorgeiClienrs 'entrepreneuriol
'enlrepren€uriol closs' Poor'
omong the working
. Mor€ wonen thon
men ofe in enlrepro-
' Friends/reloiivesos
moin sourc6 of credit
Sto'1with smdll loons
. Loon size is 10,000
creosedofier good re-
entrepreneur,ii mokes poyment performon€e
. No subsidizedinierest
' The higher the
inierest, the higher the
. lnterest roie sufficieni
. Returnsto micro'
enterPrisesore hish
' Repoymentbqsed on
h o u s e h o l des n g o g eI n h o u s e h o l di n c o m e
. weekly instdllments
productiveoctivilies
. Olher income trom
. Forcedond volunlory
Sovin9s
do
 T H E F S SP
I A R T N E RIS
N MICROFINANCE
WG d|t now In a porl on lc pretetr lhe Pcrfonndnce
ot FSg ponneE .ngoged In mlcrofinon.6. We look qt
lhe follo{rlng ocp€cls: o, Ouh.o.h, b) Loon Porlfolio, in Exhibit10,ths3€ore olso known
.' Savtngs Portfollo, ond dl Operollonol Hfi.l.nct lhol or€ under"
io hovemunicipolitie!

The FSSIporlnori thdt or€ dir€cl implemer|te6 oro lhe

Iollowingr Th6 doto on bftib;l 9 sholl bs o v€ry
. Cenlar ior &ricultur6 dnd Ruftl Dovolopmeni,Inc ussful9uid6in idrgeling€xponsion

ICARD,Inc)
. ASS.CBNBoyonFoundorion(Boyon)
. lhe MFb 016 oble lo reo.h
' CdgoydnVoll€y Conf€dorofionoI coop€roliv€s
l€rge numbc|1' of people.
ond D€vslopmor C€nrer (CAVAICO)
. N€w Ruralbank ot Son loonordo(NRBSL) In termsof clienlbos€,thsr€ is o wid€
. lPlLConsumaru
MultiPurposeCooperotiv€(lPllKoop) rong€omongporlnorsfrom os high
os 35,000 for CARDro os low os 752
o. lolol Oulredch for lflLKoop.h rsnochtwo lyp€sof
MFl6-lho$ lhot have ochisvad
. lhc l lk orc dblo to oon r paca pnonlnse!.
oxpononlislgrcwlh {€.9.,CARD,
We hod proviowly idenlified province5with ths highail loyon, NnBSL) ond lhoselhol ore slill
conc6nlrolionsot poor tomiii6!, A. 3uch,w€ hdve nokhod gosringup tor ropidgrowth(lPllkoop,
thi! list with rh. q.eq3 af op€rolion of lh6 FSSIpdrtnor3lo cAvArco).
find oul if th6y 016 positionedin lhc proper or6os. Thisdislincliono|nongportneFcon
li mdy b€ gleoned fiom ihe oxhibit bolow lhoi oll pqdners bs tronsloled into o ditferenliofion
016op.roling in q provincewirh high Pov€rly.Whil€ lh€ in fi.onciol pockog€sthal FSSIcon
oth6r providc* where lhsy ore moy nol b€ on th€ lisi

Provinciol . Mosboie . NCR ' lsobelo ' Nuevo Eciio ' zomboongo
Presence" . Ouezon ' auezon ' Nuevo vizcoyo ' Pomponso del sur
. Ldsuno ' C o m o r i n e s5 u Quirino ' Bulocon
. Morinduque ' Zqmboles ' Lo Union 'Torloc
' Mindoro
Acrive Centers 1,232 466 216 74 39
a,16O 2:191 126-4 55O 149
Acrive Membe6 35,704 16,650 5,706 2,220 752
Ave. pe. Center 29 36 26 30 t9
'
o OnyGmmen bcsei loon pockoges d€ @unred
" Provinces
in hishlishrhdvehigh.oncenrE ionsoi povedy.{se ExhibnI O)
 3
o
z
o

z
65,635 16,6s0 6,204 2,220 2,164
5 3 1 . 2M 274.7M 49.2M 9 . 0M |.2 M
240 M 92M 1 2M 4 . 2M 3M
::
3,650 5,5r2 1,852 1,912 1,413
99% 97'/" 96% 99v" 97%
e

68,098 16,650 11,412 2,220 752

1 2 4M 25M 4 . 3M 0.38M
1,815 I,504 392 760 512
' On y 6rmssn-bosed sovlngspo.logos o16count.d

l3t 108 24 l2 7
273 154 237 185 107
501 253 r85 309
r . 8M 085M 0.43M 0.35M o.44M

: Loon Por olio c- Sovings Mobiliz(tlion

. lh6 l/lFls hsve rec.hed
dl brro'ae6,
J- derog€ loon sizeis to be ou. indi€olor,
l-y b€ soidrhot lhe bonowgrsof FSSI
trrEs ors iruly rhe micro-entreprsnsurs.
tsEge loono'.'Ltondingis os low os 1,500
rE frorlPlLKoopro or most5,500pesosfor
EFn.
! tast F.drFlrs hdve so for mointclned
.rcellent repoyment re(ords.
h die of rhe lorse number of borrowers,
51 portne.shovebeenoble lo moinloin
<ellent rEpoymenl recordr.Thusfor,rhe
6€t repoymentrote is 96 percent re.orded
r tilFl .lients ore lhe smoll s.wers.
As wi$ rhe loon por+frclio,
it moy be soidihot the MFlsors
oblelo soryelow"incomecli€nts.Av€roseomounlof
savinssronsesfrom o low of 392 for CAVAICO10only
l,8l5 ior CARD-
d. Operdtionql Efficiency
. lhe llFls ore oble lo genelole
employrnerd In rurcl oreos.
The.eo'ityis rhol MFlsore onlyoble lo providofinon.iol
serviceslor the low"in6omehouseholds, burtheyore also
oblelo g€nerEteemploymenlin poo. conmun;tiesMosl
oflhe loono{ficersore usuolvorgon:clolheprovince where
th€ywo.k.A numbarore freshgroduotesfrom collese.
 ' lhe Mfls ore cl vsrylng
sioges of opercllonol
eflicien.Y.
T h e w i d e d i s p o r i i i e isn t h e s c o l e
o f o p e r o t i o n so m o n s F S S l
ponner in microfinonce
exemplifyihe voryins levels of
developmeni of micro{inonce
institltions in the country
While some hove hurdled thei.
leorning curvesond hove
ochieved hish rot€s of s.o$rh,
olhors hove remoined fo.used
on resolvinginiemol Problems
T h i s i m p l i c 5t h o t o l o t o f w o r k
still needs to be done, il ihe
sector is to
micro{inonc@
conlribute to Poverryolleviotion
in oll ports of the counlry
o REFERENCES
Aldobo, Femondol ond Tuono,Philip.Rev'ewol Liierotureon Povertvond Equ"/ Ateneo Cdnier
f o r s o c i o lP o l i c yd n d P u b l i c a f l o i 6 , l 9 9 9
C O N C L US I ON
hdve discussed
In closing, ir is our belief rhoi rhe Poinls we
low'in'ome
cooture ihe lmPortont .horo.terislics of rhe
of
households who ore lhe oduol ond potenriol clienrs
following
mi.rolinonce insrlFrions. We hove looked ot rh€
ore lhev
ouesiions: Who ore rhev? Whdt do rhev do? Where
locsled? \'Vhol ore rheir borrowing hsbirs?
(lues os lo whv
The onswers ihnl we hcve uncovered provide
mi.rolinon<e institutions ore su'cessful in Providlnq
{inonciol
sewices ro the low-income l,orrowers'
hos been
ln order to sustoln the momentum thqt the sedor
emerging
dble ro o<hieve rhus tor, ir is imPorrod ro oddress
bordenecks lor anorher wove of growth'
(e'toinlv o prlmorv
firsr, increosing obsorPtive .oPo<itv is
concern. As the su(.es! srories dre ropidlv bel6s
going io be
dirseminoled, more ond more resour<et ore
in ihe shorl term'
ooured inio rhe se.tor. While this is good
greqrer
rhe risk is thot, €ventuollv, supplv oI lunds mov be
rhdn rhe obiliiy ot insriru ons to obso/b them'
Se<ond. rhe liqhl ogoinsi poverfv is o long-drdwn bdnle'
As ssiYr, lhe s\<to{ic(<e inslitutions need long-ternr
\\non.\ng \s ordei rs $nve msie s\\s\es\ (sKti\se\ds\\
rerms of their operolions. One .onnot linan.e long-term
plons with short-term linon.ing.
Towords rhis end, equiry dnd osser building hove lo be
underrcken by rhe microfinon.e institution!. These ore not
limired to findnciol cnd Physi.ol ossets bt r in lerms of human
.ooildl os well.
FsSl is comrnined ro relpond lo rhe'e .hcllenges with the
some fervor cnd .reoliviry ir hos shown in the post live yeors.
 of Juboken
MoiorFindings
lmpoctSiudy
Socio-Economic
tNTtoDucfloN . . . . . . . . . . . . . . . . . . . . . . . . 48
. T h e8 e n e f i c i a r. .i e
. .s. . . . . . . . . . . . . . . . . . . 4 8

SPECIAL
. The Somple . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
. O u l l i n e. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
'INDINGS ON THE BENEICNNY-

PROIECTS
H O U S C H O L DPSR' O F I 1.E ................ 49
' H o u s e h oSl di z e. . . . . . . . . . . . . . . . . . . . . . . . 4 9
. M o n l h lIyn c o m € ............... ........49
. Occupotionof Employed M€mb€rs.. .. . . . . 50
. MoioP r r o b l s mo sf H o u s € h o l d. .s. . . . . . . . . 5 0
. M o n t h lDy€bo t f H o u s € h o l d.s. . . . . . . . . . 5 1
Coco-EnlerpriseDevelopmenl ;INDINGS ON COCOFISER
Yeor2 Reoorl PROCSSSTNG . . . . .. . . . . . . . . . . . , . . . . . . . sl
. length of Experi€nce
2000 ExrcuflvE Sutti AFl . . . . . . . . . . . . . . . 3,1 in CocofibsrProcessins. . . . . . . . . . . . . . . . . 5 l
. Mod€sof Lsorning . . . . . . . . . . . . . . . . . . . . . 52
. . . . . . . . . . . 36
2000 HIGHLIGHIOt ACTIVITIES i . Cocoffber processino os riv€tihood ........52
. COCOENIENP SEIRAININGS ' SkilledFdmilyMembers
A N D D I S S E i ' l l N A r l o. .N. . . . . . . . . . . . . . . . . 36 n o l i nP r o c e s s i.n. s. . . . . . . . . . . . . . . . . . . . . 5 2
. i i A R K E T t NA ' Ase Pro{ileof Processor.. . . . . . . . . . . . . . . . 53
GC l t V t f l E .S. . . . . . . . . . . . . . . . 3 7
. L o c oM , c e n d e fP r o f i loef P r o c e s s o. r. s. . . . . . . . . . . s 4
l o r k e t i n. s. . . . . . . . - . . . . . . . . . . . . . . 3 7
' InlernotionolMorketins . . . . . . . . . . . . . . . . . 37 . FINDINGSON DIRECTBENEFIIS
. socto-EcoNoMtcIniPAcT
STUDY
..
ro PRoctssoRs 55
t N t E R p R t S .E. . . . . . . . . 3 7 . P.imory Goins ... 55
o F T H EJ U S O K E N
. lmprov€msnl in Economic Well-8e;ns.-...55
. VIDEO PRODUCIION .....38
. lmprovement in SociolInteroction
. Coco Coir video . . . . . . . . . . . . . . . . . . . . . . . 38
i n t h eF o m i l y. . . . . . . . . . . . . . . . . . . . . . . . . . 5 6
. A d d i l i o n o l V i d e o s. . . . . . . . . . . . . . . . . . . . . . 3 8
. FINDINGSON SECONDARY
' ENHANCED GROWING MIDIA . . . . . . . . . . . 38 B E N E F | C | A R |. I. S
....................... 56
. FPAC€rlificotion . . . . . . . . . . - . - - . . . . . . . . . 38 . MonthlyIncome
. Moss Productionof Growins Medio o f S e c o n d oBr e y n e f i c i o r.i.e. . . . . . . . . . . . . 56
ond FertilizerPellets. . . . . . . . . . . . . . . . . . . . 39 : . Associotion of Secondory
. Co(opeotDryinsTechnolosy. . . . . . . . . . . 39 : w i t hP r i m o rEye n e f i c i o r i. e. .s. . . . . . . . . . . . 57
: . PersonolBenelits
. FSSISIIANG EXPERImENTAI FARI ...... 39
o f S e . o n d oB r ye n e f i c i o r.i.e. s. . . . . . . . . . . . 57
. F S SFI o r mO b i e c t i v e. .s. . . . . . . . . . . . . . . . . 3 9 :
. Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 r sUsIAlNABlLlfl CONSIDERATIo
S ......58
:
'Percepfionson,cococoirProcesing
. AppticorionoforhercococoirProducrs...40 :
. os o LivelihoodODtion . . . . . . . . . . . . . . . . . . 58
. F o r m I n f r o s t r u c t u 'A
. Fuiu,€
e c l i v i t i e s. . . . ....40 : ' -
A*iviries
Form .o : fft:::ffj?,:lflflT"i.:l.. *
stTE |NSIALLAflONS. . . . _. . _. . . __. . . . . . . 40 : . Per.eption on Levelof Discomforl ... . . . . . . 59
 coco-ENTERPsJ!lq
TRAINING AND PROMOTION
AN t]
ENT
TECH NOLOGY DEVELOPM
AND DISSEMINATIONPROIECT

2000 Yeor-EndRePort
SLIAMITTEDTO :

The Ford Foundolion

SYTHE|
SUBMITTED

Foundolionfor o Sustoinqble5o(ieiy'Inc'
Mdrch2O0l

SUMMARY
I. 2OOOEXECUTIVE
The .o.o enterPrise Proiecl
fhe ford-lunded co.o'enrerprise proied
in ils secondYeqr (enlere.l
hos lwo moin obie.liv€s,
on lhree moior gools. First
L Coco-Enlerprise Troining ond Promotion: wos lhe senlng uP o{ Coco
privoie ;nstiiu- le.h Pro.essingPlont for
To provide NGOS, government osencies ond
so cocopeqt-seoweed
lion with informoiion ond exPosureio the 'oco-enlelprrse
it' operate {edilizer Produdion ond
lhot they con decide whethe' lhev should invesrin
nqiurol
.ertiti€orion. Se.ond,
it thelnselves,or use its productsespe'iollv for their
lurlher developrnenrof
rosourcemonogenent o<iivilies
coco .oir morker linkoges
Development dnd Disseminolion: erroblished during lhe firlr
2. Co.o-le.hnology
yeor. tosrly, rhe esroblish-
thot
To develop ond dilseminote coco-bosediechnologies med o{ rhe Fssl Fcrm and
degrodeo
o will hove on immediole Positiveuse ond ;mPocton lroining Cenler in Silong
of
uplond ond osriculturol ecosvstemsond on the livelihood Govitefor the testing of

troinings & Dis5eminqiion Seminors
To cori rue rhe proce$ of informolon
disseminotionon the coco enierprise
ondsoilrehobiitotion
Morketing A<tivilies
Fof lhe oco morket, increoseol torge1
so es ond implementotionof
fronch sing oqreehenls, Fo. the
i.ternotiono morket,elioblishment ol
distf bulion ond slrenglheningol
Prodldon of o 30-minurevideo thol
would showlhe opplicotionond benefils
o I . o . o p e o t o n d fb e rp r o d u c t s .
FsSlErperimentolform
ldplemenroiion
of forh developmeni
anhdn.ed Growing Medio
Enhdncegrowing medio fohuloied
d . d o p p l e db o l h i n t h e e x p e r i m e n l o l
i.rm ond or-ste. Etfe.livelse ol coco-
ceot growing medid ir 50,000
Anli-erosionststems designedond
.slo led. Applicllion ofcoco {lber onli-
:rosion systemsin 50,000 hectoresoJ
SoilSodpling & lesting
5ol anolysisequ pmert p!rchosed &
:no yslsof soil defi.ienciesro be
Tro nings ond informotiontook the form
ofguided louu o{the FSS]Form ond
troln ng of FormworkeE Ino!surolion
ot FSS|TroininsCenler ln S lons Covite
Moy 3, 2000.
Soleshove 6xpondedfrcm 3 locol
b l y e r s i n 1 9 9 9l o 2 0 i n 2 0 0 0
g e n e r on r q 2 i r y l i u u 4 p e s o s' n s o r e s
Coco Techwos d so oble lo ocquife 9
foreign blyers omountins ro 3,319,862
Pesos r exporl so es lolol ng 10
5 , 7 1 6 , 8 6 65 9 s o l e sf o r 2 0 0 0 .
F l n i s h l n os l 2 0 o n d 1 0 - m i n o i ec o c o
coir lhdustfyvideo stirl under proce$.
Expociedcompleliondole hds beon s6l
Tesing of h sh volue crops
Growi.s med d lnd ferti zef
l ) App icoiion of.o rtechnologyto
Teslinqond esloblshmenl oJ morkels
Informotiondissedinoron ond
Cons1rlclionoflhe Coco TechCoco Con
Processing Plontwds completed.Sdmples
wer€ disrriblted to portnersocrossthe
coun1ryfor |he continuedpromotionond
testinqol lhe qrowins medio.
Coco Techslbmlrled Experine.lol Use
Permilln Aug!51ond ir now owoiri.s
lhe Fediliz6rond PenicideAgency
Cerlificotionfo. mossprodldion ond
Sile insld ldrons hove incuded solf
courees,industrlolond residentioloreos
omount nq 1o oround 40,000 sq.m of
It wos decidedihotsoiltesiirq would
be conduded sim! ltoneouslywith
!
F S S | w i lbl e d e s i s n i n sf o r m d l t r o l nn g s o
bosed on ieedbocktrom thesevkits.
2
Solesfor 2000 hove been enco!.osing I
consde. ns thot mdny of ihe purchoses 7
involyedsomplesthot wore disnib!ted
to the locol ond foreign morkels Coco
Techdnlic poiesthot such wil l6od ro
o n i n . r e o s eo i s o l e sf o r 2 0 0 1 .
3
The imiled video ed I ng equlpmenl
ond f umefous rechnkot dilfk!hies
encounteredby Med o Circ! t hos
d€loyedihe releoseoflhe videoii 12001
The FSSIExpernenidl Fdrn wos
slc.essf!lin the prodocilonond
qssessmenlot th€ morkel potentiolof
severdlcropsslch os the cobbog6, 7
leltlce, eggpont dnd cul{lowers.
lhe Form in 2000 encouniered
n!merous problemsin rermso{ th6
c imote, pesi ond tllciuolins markei
Processresull ng lo some losses. 9
Severo modif colions were.iode wilh t
l h e o r l g l n o l p e l e td r i e rm o c h i n e . :
o
FPAcertificotonis expecledlo be
obloined by 2001 ln quorle.
o
Ihe n!mber ol site inslolloiionsis
dnec y.elored lo Jheomount ofso es,
whjch is expeded to incredseby nexi
FSS obsetoedJhotthe conceplofsoil
rehdbililoiionond monogemenlco! d
II, 2OOO
HIGHIIGHTOFACTIVITIES
A . C O C OE N T E R P R I S
TER A I N I N G SA N D D I S S E M I N A T I O N
On May 3, 2000,
FSSIinousuroled

Moy3 Inougurotion 50
TrqjningCentorin
5ihn9, Csv;te.In Philipp;neB u s i n e sfso r NGO
sociol Prosress(PBSp)

Swk3Ambossodo. SwissInlerChurchAid NGO t9

W9rno.Boufionn, (HEKS)
Ford Counlry
VisdyosCooperotivo NGO - 17

SuronneSiskel, {vtcTo)
SilungMoyor Peopl€'sAlte.notive
Community Exchonse
cooperotiv€ {ACES)
socoyond Fssl
NGO 2. Appr€cioting
ChoirSisRosonne
Mollillin[Pls. Fquitoble,PClBonk
Bonk

NGO

olsolh€ firsi
NGO 47
hold in lhe Fdrm. lnternotionol Fund, In€. 3. Apprecidting
(AKAP)
Sin.ethen, the
FSSIFormho! 21
Coop Norlhem tuzon
over200 persons

S i l o n qC o m m u n i t y 30

high volue -
14
Eelowis o lisrof

InoctiveFdrm workeA 54
visitedlhe FSS| 287

ins Cenre.in
Fromthesoin;rioladi ties, FSS|is now srroresizing
on how ro coirinue rhe
2000.
Frocessof troininsond inlormdion
B, MARKETING
ACTIVITIES
The{ollowinsshowthe progr€!! ot CocoTech'smorketinsociivitiar.From3 lo.ol buye6 in 1999, z
morketinso€liviliosoeond€d io 20 lo.qlond 9 foreignbuy€rsin 2000.The conesponding increose
in soleswos 2,216,866.59P6sos- or fron 3.5 millionPesosin 1999to 5,716,966,59Pasosin 2000. 6
8€lowis o g€ogrophicbr€okdownof ths locolond intorno onsl sol€s.

B.l. Locol ,Vlqrkeling

z
Thereware o totol of 2,397,004.21
pesosoI grosslocolsole' Ior 2000.
Thebreokdownis os follows:

MetroMoni1o................... 645.428.71
B o s u i o . . . . . . . . . . . . . . . . . 1. .3. ., .6. 0. .2 . 2 5 27./o
r5%
Tdgoyioy....................... 891,000,00
S o t o n g 0 3 . . . . . . . . . . . .2. .2. .5.,.7. .2 7 . 0 0
L o g u n d . . . . . . . . . . . . . . .3. .5. 9
. .,.8. .6. 7
. .. 7 5
Coviijo ................
......... .......30,000.00
Pongosinon.....................
226,51 6,50
N'rcvo1.iiq....,......................,(,862.00 1%
9%
3a%
8.2. Internqflonql ilorkellng o

Toralfor€iqnsolestorqlod3,319,862.38in 2000:

. K o r € o. . . . . . . . . . . . . .........' 9 6 , 3 6 4 . 8 7 3yo

! Moloysio . .... ........... ....325,12A.22 10% 9

' US.... . ....... .... . ........ ...1,875.313.81
. iopon. . . .......... . . ....... 539,544.00 ,
US
. Germony....... ............. . 191,601.00
o
. Greece.......................
....... 291,910.AA

C . S O C I O - E C O N O M IICA A P A CSTT U D YOFTHE.JUBOKEN

ENI'E
RPRISE
In the lofler holf of 2000, FSSIcontroctedrh€ Bicol
Smoll BusinessInstituteFoundolion, lnc. bosed in
ihe Bicol UniveEiry,l€gaspi Ciry,Albo, 8icol, to
do a householdsurveyon the so.io-economic
;mpo€tof.ommunifies engdged in the coco corr
industry The surveyconfirmed ihe eneni thor
moler;o's fiom coconul fiber A totdl of 680
respond€ntswere included in the survey.Alide
from increosed;ncomes,othor socio-economic
benefitssuch os occessto €ducotion were ciied os
hoving improved. JPIeoseReturto Ac(omponyins
Repodl.Another surveywill be conductedat the
 I). V tt) t(r f ttotfllclluN
D.l. Coco coir Vid€o In produ.ing lhe newvideo, iiwos osreed lhor FSS|wouldbe odopiing
Medio Circuit in Februory o honds-on opprooch jn ossistingMedio Circuit sincerhe loiterdid nor
presenied 1o Fssl o drofi of hove enoush knowledse on the subieci morier ro re-do rhe vidoo lpk.
ihe Coco Co;r video. FSSI{elt Referto Annex Bi. From Morch FSSI'Sossistonce€ame in rhe form of:
thoi the video wos too L S€ript re-writins
unorgoniz€d,centered too 2. Reviewond idenrificstionof foorqses ro be inctuded
mu€h on odvococ),ond ldckod 3. Shootins of odditionol footoses
ihe documsntory qoo,ities 4. Productionand motchins of picruresio scripr
needed to fulfill ir, 5. Honds-on pqrricipotionin video ediring
educolionol ond morketing
Unforlunotely,ie.hnicol problons such os the tock ond constonl
obie.iiv€s. There were qlso
repoi6 on equipment hov6 resulredin endlessdetdrs. At rhe wrjting
severol rochnicolproblems
ofthis r€port, Medio Circuit is still in the proc€ssof finishing the
.oncerning the qudliry ol lh€
v i d e o ,w h i c h s h o u l db e o u t b y A p i l 2 o 0 t .
sound, video ond grophic

D 2. Additionol videos

In lhe courso of r€yiewingihe footqgss roken by M6dio Circuir,

F55lwas oble io iddntit other possiblevideos rhoi coujd be
produced.These ore the Coconut Decorricorionpro.essnhd Coco
r;b6r Net Moking dnd Instsllolion. lSSl will now b€ tooking qt the
post-produciionskotesios fo. thes€ udd;tiondl vid€os.

[. I N I ] A N C T DC I T O W I N CM I D I A
E . l . FPA Cerriticotion

Frlfillmenl of ih€ requiremenrs . Rice 37% heovieor nd l2%

ncreose n producnonqudnnt
oflho €xperimenlolUse Permit
of Coco Technologieswos
completed ond submified to
the Philippine Fe.tilizerdnd
. Good n tiolfeedbdck though lriols
PesricideAuthority (FPA)in o n r c e , c o o m o n ! o n d m o n g oo r e
August 2000. Co.oTech is now
woiiing for full certificotion
. 2 0 % i n c r e q s ei n v e g e t o b l e s, r r o w -
for it to be oble to moss- U nv e B i t yl B s U ) berrydnd cuflower prod!c1ion
p.oduce dnd d;stribute its
blend ond pellet fertilizeB. 'Colomons, qro$,thof nronger fr! ts

o The tesr resuhssubmitted to . Good nltiolfeedbockthoushh oh on

the FPAwere bos€d on b o f o n o o n d o r c h i do r e s t l l o n g o t n s

commerc'al lriols conducted FSSI

< . Cdbb.qe:

All the orgonizoiions,
some ofwho dre the some
parlners vho estobljshed
t i e l d t r ; o l si n I 9 9 9 ,
reporled positivefeedbock
wilh lho 'rse of lhs Coco
T€chf€rtiliz€r cocopeot-
seowe€d pelleis and
blends, So encouroging
we.e the resultsthdi two
orsonizotions,PCARTin
Polowon ond MINFLO in
Dovoo hove decidsd io
creat€ their own cocopeoi-
Numerous ofde6 hove
now been ploced for the
cocop€olseweed fertiliz€r
p€nding FPAc€rtificotion.
F, F S5 l S I L A N GE X P E R I N / I I N TFAALR M
E l . FSSI Fdrm Obiectives
The FSSIForm, whi.h
officiolly srdded in Jonuory
of 2000, 'i/os ser-up for
rhe following obiectives:
l. Testingoflhe producfion
of high volue crops in d
low lond leitins
(silons, Covile).
2. T€sting Growing med;o
ond fertilizeropplicotion.
3. Appli.otion of.oir tech-
norogysrrchos .ocopaat,
loose fiber ond roco-
p€ot-seoweedfeitil;zer
to cropping systems.
4. Reseorchond esroblish-
ment of locol ond
!
E.2. l\ oss Production of Growing Medio ond Fertilizer P€llefs
CocoTe€hcompletedth€ conslruction
of irs CocoCoir Processins
Plont
o
locotedot the FSSIFormin Silons,CoviteldstJuly2000.Th€rewere no
problemsencounrered with the mulchins,mixingond procelsins
mochins. However,severoldes;gn(hongesvere modewith resordsro
lho drye. in ths cou6e of producrion
€xpedmehrotion.Tha Plonrihor,ld
a
be fullyoperotionolby Mor.h 2001 [Pls.Returto AnnexC].
a
E.3. Co.opeof Drying le.hnology z
Thesolordry;ngfocil;iieshod to b€ improvedbecouseo revolidolionof
the needsofthe coco-enterpris€ indicdredihot solarenergywould
simplyb€ inodequoteto ihe dryingol cocop€ot.Afier severdl
consulloiions
ond experimenis with designersond €nd-us€rs, I
o multi- o
purpos€gosifi€Fd.ierusingogricolruroiwosteos fuelwor s€l€ctedos :
th€ bote. ollsrnotive.FSSIshould€rodlhe cosiof thes€consultorionsos
ihos€w€r€ not incl'rdedin th6 proposodbudgeifo. this gront,Only ono
gosifi€Fdrierwds fobricotedusinglocoll€chnology. It is expecied
howev€rthqlthe oth€rdriorswill bo fobricolodin the firstquort€.o{ 2001.
o
E2. Crops [pls. refer to Annex D] t
Wiih the obove obiectives,FSSIw€ntoheod ond t€sted the production
of o voriety of crops in Silons.
I
r Cdbbage - FSSIwos successfulin proving thdt cobboge, which
originolly srows in uplond oreos, con be successfullygrown in o tow :
ldnd s€tling. Th6 cabbogeswer€ highly dense os the cdbboses,
overoge weight olmosr reoched o kilo eoch. In terms of nutrieni
content, test show thdt the .obboges.ontoined 25% more viiomins
o
rhon ordino.y cdbbose.
. bnu.e - FSSIplonled ndo kinds of the Leituceusing UV plosticond
Shode Net Tunnel structuros.There wos rhe Red Lefu.e voriet whi.h
respondedwell despitethe fluctuoiins dry-wet weorhei The Rore Bo
Vodery,hov/ever,did noi fore so well os the remperoturefluctudtions
cousedthe plont lo fior€ instedd of boll. FSSIolso g.ew some ofthe
lenucosin pots for the possibiljtyoflellins rhese os borh o produce
ond on ornomentol.
. ESSplon|, Horbe.i AgribusinessCo.p., on€ of FSS|'ssuppti€r of
 F5 ful!r;., tqrrrm Aclivilies
wos hir with the
Bell PepPer - The Bell PepPet unforrunolel'
out ihe entire plot FSSIis now in lhe Processof
"root rot" lungus diseoserho! wiPed
negotioting with ihe lnstilute {or
io hove bisger
Cu|flowers - The €utflowerswero obsewed the DeveloPm€d of Ecolosicol
oPprecioled
ond stronger slems, somothingwhich buve6 ond Edu€orionolAlt€.nstives,
production
Hovever, FSS|is v€t to perfect its 'utflower Inc. (IDEAS)for the lott€r's
bloomins ond
techniquesos problems with the limins of th€ ossumprionoI form monoge-
quoliry ot ih€ flove6 were €ncountared ment ond morketangrosPon-
the producnon
Btrer 6ourd - FSSIolso expsrimentedwith sibiliiies. IDEASis o Preferred
lupPlv Th€ lesl choice bY FSSIsinc€ ihe NGO
of Bit€r Gourd lAmplovol leov€s for modicinol
rolutions on how
wsre Positiv€,how€ver,FSSIhos v€i to find is bosed in Silons ond Possess
thot contamr
io incrooseProduclionand tredi pest inleciion the necassorYogriculturol
noted oro'rnd 20% of rhs Plonts' expe ence ond know how'
beons' conols, IDEASond FSSIhove olso been
Note: Oiher onsoins <roPsinclude poioto' bush
workins closelyloqoih€r ev€r
,ince ih€ fo.mer ovoiled of o
lodn lor wost€ monoqement
j\irplir:,.'i,rr ni 'ir'r l' ir li'rjudr:l
"':ir.r' in 1996.
were in the
The followins co.o coi. prod'J'ts ond technologies
Thoush tsslins o{ croP dnd
ogriculturol technologvwill still
- This ferliliTerwos
. Cocopeot-seoweed Pellets ond Blend be continued,fSSl ond IDEAS
bell pepper'
us€d with oll the c.oPs li.e l€iluce, cdbboge {or 2oO1 will be con.enirotins
resulls lr€fer to
curflowers,ond othelsl wilh en'ourosins on ihe com$€rciol feosibiliiy
section D 1l- of producing ond morketing
mulching sheets high volue croPs.lt is envisioned
* Loose Co.o Fiber - used insreodof ploslic
grov"th This wos ihol the morkei linkoqes ond
lo retoin ground moisture dnd preventweed
production copobiliryio Producethese
used efiectivolvwirh fte Bifief Gourd lAmPolovo]
high vo{ue c.oPscon then be
ond rhe culiivqiins of leHu'e in Pols
tronsferredto ih€ community
os potling
. Cocopeot - Cocopeotwos us€d in the nu6erv ihe.eby Providinsthem $th
medio for leituce ond cobboge seedlings o beHer olterno$veto lherr
in the comins
FSSIplons io continue th€ use of these products current list of crops

tsdrln lr,i|ssf rudl!rile rl\e+iviiies G, SII'i INSIALLATIONS

to investon
To moke the obove ociivitiesPossible,fSSl hod A loiol of 15,522 sq. meiers of
the Form woter
severotmoior infroslruciureoctivities Firsi wds c o c o U b efro l l s o n d 2 1 , 2 3 0
rmpound'ns
ond irrigotion sysiem-A deep well ond o woter sq. meters erosion control neis
irrisoi'on
slstem were construciedin order to meet lhe Fdrm's were sold in 2000 Th6lotol
qlso erectedfor the
requirements-Severolsreenhouseswere oreo of e{iactiveerosion conirol
a infrosiructure
cutflowersond io seNe os nuBery stotions Other con be esiimoied ol orcund
roodwov
 o
III.PROJECTION
OF ACTIVITIES
FORTHEYEAR2OOT
Aslde frorn the lurgels llsfed below other proiected octlvlfiei wlll In.lude ihe podiclpqrion in o
o
internciionol Aolnlngs dnd conlerences,which orc eip€cled to st(rrt in lhe lsr quorler of 2O0l
vilh the onnuol .onIer€n.e ol lh€ Infernollonol EroslonConrrol Asso.lollon. there will ollo
be the fobri.otio. of lhe gssifier-drlers I'y rhe lit Quorler fo b€ Inmedldlely lollowed by rh6
a
holdlng ot semlnors by lhe 2nd qudrt€r, lndeed. lhe yeor 2OOl,lhc losf teor of lhe whole
proiecl, promises lo b€ o very busy yeorl
z
Troininss & Dissemindrion Semindrs
To cont nue the pfoce$ of informoron l ) H o l d i n go l l o l l m o n o g e m e n l Formolirqiningswl I be conducred n
dkseminol on on lhe coco-enlerprGe s€minor - ogricultorol|rolning podnershipwilh vorous NGOS, pr vole
o
ondsoilrehabiiloron wo{shops in silong, Coviie. ond qovernhenl orgonizouohs

Morkerinq Activiiies
For lhe locdlnorkei, inoeose oflorqel l) Continuedpromoiion ond mofket ns Actuol{fonchisng ogrcem€nlswill be
solesdnd mpemenioiion of lronchk nq oclivilies.Asse$ing ot franch sins implementedonly when l6os bilit
osr€emenis For lhe n16rndiionoi teos bl iry ond disrriburor s1ldiesond morkel lnkds nq oro
ino el, esioblishmertof disiib!iion
ond slrenglhenlngof mdrketifg nerworks

+bdoctiaD6fa 3a-ninute vi.leo th.l I ) Disttibotionof L.th 20 otltt to Both vHS ond cD rcBions afth.se
-..,ld.hos the dpplicotion& benetits vdc'
Makng afNot hbtonatiot'
: :::. Peotdnd fiber Producis t
Moking oJ Coco Coir Video

f55l ErperimenlolF.rfr FSS|tohl.e IDEASto monoge torm t

-: emeniduonof fornrdevelopmerl
r) Continue.rcp exPeimeniotion
octlviliesin 20% oJ torm ofeo' operdtion5cnd morketins ocnv'rres
1
2) l m p e m e . r . o m m e ( o P r o d ! d r o n o
o.d morlelinq of idennnedcropson

Enhonced Growing Medid
:1ho.ce growins medio forn!Loted.
:fld opplied bolh in the experimenldr
:..m ond on-sile EilecJivelse or coco'
.edt srowins medio in 50,000
o
lhe distlbution ond mo.ketinq otlhe
Afioinment ol FPAcertificotion
cocopeol-seweedlertilizer wi I be n full
Mo* prodution dnd d slrrbunonof
qedr wnh the qronlins ofihe FPA
seoqeed - cocopeorPerels Ln6
cedificotion dnd the complelionofihe
will includethe possiblelronchising
Coco TechP.oce$ing Pldnt
of saverolplonlsdroundthe couniry

Lt lnndllqlion silesto incedse os oroers S i l ei n s t d l l o i l oonc t i v i l i e s w i l b ed o n e ' 1

Anli-erosionsynems designed.ond .. congr!ence with mdfkelins ocuvilies
f or dnti-eroslonProducl5srow
inslolled.Applicorionot coco_lrbe'dnr-
2 l Cooperotionwilh the DENRond
erosion systemsin 50,000 hectoresor
D A R w i l ld L s ob e s o u g r r r '

soilSohplidq a Testing
r) The originoloclivitiessioled in the SoiLsomplingofd lestinq oclvitie5 will
Soil o.olysis eqlipnenl purchosed& be conducredslmuliofeouslvvith the
proPosolwill be implenenred
ondlysiso{ soildeficienciesto be morkeling ond dislributiono'nvLlresor
P"nner NGOS. POs PrivoteInsliu_
 A N N[ X A ]

FSSITRAININGCENTER.SII-ANG,CAVITE

coNsrruqtod oF ttalt{lN9 Cil{lEn louNDAtloN

cor/tPtEnoN oftf,all{lNc cENlll RooF

f56I ITAII{ING CINIEN WITH IETIUCE PTOlt ATTHE IAC|( cr.osE-u?ot FSsttta|l{tNc cltiltEt

MrlY3 F55lIOARD||EFnxO! F55ltRAlNlNO CENIEI

A N Nt X I ] :

COCOCOIRVIDEO PRODTJCTION

YIOEOIDITING tsst at{D ttEDtActtcutt staFFtEvtEws(ttPt

VIDEOVOICERECOTDINE VIDEOSOUNDEDITINO
ANNIX C

COCOTECHNOTOGIESCORPORATION
PLANT
PROCESSING
FERTITIZER

TENTIIIZET
CO-CO.P-IAT-SEAWEED
USEDFOI THEPTODUCTIOX.O-F
HETEARETHEDIFfEREI{'f,AWMATETTAIs
PNIsENTGD rRoMrHt cocoNut
i,iiiiiiiiollLirn selNG--DC<o{rrcAtED
orro srowN selwro rdii'Dii;liiNrrnt cocoprlr HULL
;ir:i;iR-nf iibdkr.vlaij nii cuv sowrro aro <d'doPEAIrrxrutE ANDcoFFEE

lHl fOLIOWINGPletUf,ES SHOWg tHE 'ROCESS BlEl{DrltEFl ICtpV|EWOf HAr gltt t!!
Of MtXtNGfERflUZER
ptCtun! OFTHE|/UXER;
!!!rtctr!!{13 cgJoPEAr,(cENTEn) (R|GHT)
COCOPEAI.SEA*IED AND REDCrAy BEt O tXlD
INTO FERAIUZEI ETEND

tHElOllOWlNG PICIURES OF pEtLEflz|NOT{tEFqA VtlWOFTHE pAllEflZtNG TaACH|NE

SHOWTltE PROCE'S _
ON IOP 15WHERE MtXtURE pLAaED:
THESEAWEED-PEAI piuEts
 ANNIX Dl

FSSIFARTIII.VARIOUSCROPS

EEu.PlPtlt

B|IIET OOUTD "AI/IPALAYA"

cuTrrowfnli
 ANNIX L:

FSSIFARMINFRASTRUCTURE

ptclull ol FsSlrlalNlNc aENTER FARMDEEPWELI.AI{D (OCO TTCHPNOCESSING

PLANT

wAllt |ltPouNDll{ouNoEtco srtufiloN PICTUNEOI CANAI.WITH INIEIIOCKIiI9 BIOCXS

< B|rlEN GOURD"AIIPATAYA" PIOIS

,\IN III T:
l}fl"il'Iqii
{g'l'|i',ll
ij'i-',ll$T',$l'-$-,&'['i1

il;$*,*ffiff;*.:i.ffi'
 MA'OR FINDINGSOF
UBOKEN OCIO_EC
ONOMI
IMPACTSTUDY
INIRODUCTION'
THEBINEFTCIAR
ESI
Thoprimoryb€nefi.iarymunicipotiries
(onducred during ofrl coir processins
wero
cqmorig.nd Bococoy.aon,,o,,n
the lcsr qudrter of 0."""n"'ooken
rhe teor 2OO0ro
orcobroon requono, "ou
cor,"..;
ilr.;"r.;:;:ffi1, ;: ;ff:::T:."
th6 olhe. hand,Bocacoy coir processors
ossessrhe socio_ w6re con(ennoiedin bqrongoy
Bonso.
e.onomt. tmpo.r Aen€fic;ory
fomit;eswere usedos unitsof study
insreqdof individuotprocessors.
of JUBOKEN The.pre-r6st
hqd showedrhor.oco fiberprocessing
wqsd ,omity-rpeo{
Enterprlse!,o cot,
pro.esghg ptdnl ln termsoflh€ noiu.eot proc€rsins
beingundertoken,Bococoy househotds
lo.oted ot were 'nto twiningwhile Ccmotig
respondenrs wereweoven.
Comdllg, Atbar.
as to ths covorcge,Jubokenlntorprises
the generol involvedobou, t4% ofihe torol
'1ll househotds in 4 borongoysof Comotis(t 09
HHs)ond l4oloof ihe househotds
In borongdyBonsoin Bococoy (124HHs).
tlitf
ii{lrlr etfe.t of the

;irilti T H I S A MP L E
processing o. ytry
,,li;ii ot rhe colr
Thestudyodopredrhr€esompling
schemes. Fo.the dir€crboneficjories,
complereenumerdiionwos used
processors for the becouselh€ unrror the siudywos
houreholdof processo.s, the
Enrerprise. norihe ;ndividudtpro(essors.considering
@ch_houshotdrhereweres€verol rhoi in
pro€essofs,rhe lisrof boneficjories
sisnificonrly
becomesmoler
The id€nriflcorion
of s€condorybenefidories observedpurposivesompl,ns
becouserhe beneficioriesidentitiedihese. Findtl, for the .ontrol
preporedby FSSIsioff srmpt€rondomsomptinsschem€ group,
wos irsedin rhe seteaio, rte
for th6.ontroj group. ,espo.a.nr
"l

OUTIINE
brsity, onl/ the moin
o This.summory is djvidedinto 6 porrs.ThefiEtthree
pfovid€sinformorion
on lhe directbeneticiories:
,,",***"*"'*n".i-;;.;;;.;:::';;T;:,"iLli.J,"_i.
,heir profite;rheirr
PART ]

FINDINGSON THEBENEFI PROFI[E

CIARY.HOUSEHOTDS'
l l.
SIZE
HOUSET{OID
s
The beneli.lory.lomlll€e hod
overage-slzd households,
. The m6onhouseholdsizefor
l 3 2.42 2 r.83 Bococoy (6.11vos slisfnlybisger
2 3.23 6 5.50 thon thoi of Cdmolig(5.4).
3 9 7.26 14 12.44 r Both,howeverwers wiihin lhe
t9 15.32 l4 12.44 o
overog€hous€holdsizefor the
5 20 r6 . r 3 22 20.18 Filipinofomily.
6 16 12.90 23 2110
7 l2 968 I t009
I 17 t 3.71 9 4.26 a
9 t9 15.32 3 2.15
t0 3 2.42 4
12 2 I 6l I o.92
rorot 124 100.00 109
Meon HH Size 6.1 5.4

1.2.
M O N T HL YI N C O M E
lh€ in.ome .horocterlsti.s of rhe bcneliciort fomllics 80 psrcsntof lhs househo,ds
hod
.onflfmed t|rdl lhey were b€low rhs povert line. o monthlyincomeof P5,000.00

per copitomonthly
For Bococoy,
incomewos P334.10.Thiswos
bosedon on overogefom;lyincome
0-500 20 r6.81 l4 12.73
of P2,037.82ond on overose
50r- r000 16 13.45 21 19.O9
householdsizeof 6.1
r00]- 2000 39 32.77 39 35.45
2001 - 3000 t9 15.97 21 t9.o9 Fo. Cdmolig,per copitomonthlyin-
300] - 4000 tl 9.24 5 4.55 comewds P339.65bosedon on ove-
4001 - 5000 5.04 I 7.27 roge mordhlyincomeof P1,834.10
500r - 6000 3 2.52 0 0.00 ondonoverogehousehold
s;:eof5.4.
6001 - 7000 3 2.52 0 0.00 Theregionolmonlhlyincomeoverose
700r - 8000 0 0.00 0 0.00 fo. Sicolwos P6,427.60ond monthly
 1.3.
MEMBERS
NF EMPLOYED
O C C I J P A T I OO
There wos o mot.h belween th€
requlred skills bY the IndusttY
ond tho6e of lhe benell.lol'Y

23 19.33 43 41.75
r Bosedon lhe dolo in TobleI 38,
Former ond onother
t3 r0.92 7 6.80 ihe primqrycrodentiolof the
€mployedwos the obiliryto
ilN Skilled Lobor
24
t3
20.17
10.92
21
8
20.39
7.77 performmonuoll6bor

t0 8.40 r Thisdemogroph;c chdrdcleristi€

i.,
CocofiberProcessins 6 5.04 3.88 wos suiiedto the loborinlensive
Service 12 10.08 3.88 noiureol tho fiber procossins
Self-Employed/ industry.
8 b.72 0 0.00
4 3.36 l o.97 r Thus.susloinedoxist€nce of ihe
6ntorpris6shoulddiroctlybenofit
Govt Employs€ l 0.84 0 0.00 ih6se communili6s,

TechnolosyReldled l 0.84 0 0.00

ProfessionolSeNices l 0.84 0 0.00
2 I 68 3.88
I 0.84 5 4.85
119 r00.00 103 100.00

1.1.
SF H O U S E H O L D S
M A J O RP R O B L E MO
i ClothinS,shelt6r(bo!i. houto ond
lhe top lhree Problems were:
repoirexpendilures)ond heollh
(o) tdck of Income, (b) schoollns, ond (.) r6od'
conc6rnswere seconddry difiiculries
' Th€throeprimoryfinoncioldifficulties orderorg'ovitw€re:
in dec.eosing
schoolins,ond food' r The resulrsmonifesled fior the
lockof income(or non-siobleiob or livelihood),
did not
pr;o ti€sof th€ beneficio.ies
siricllyobserveihe hierorchyo{
needs-iheih.eebosicthenihe rest-
. Emphosizedby lhe resultswos the
32.42 67 39.88 premiumresordocco.ded schooling,
Schooling 5t 26.15 43 25.60 whichrnoybe viewedos o vehicleto
21.54 39 23.21 improYetheir socidlond economic
Cbhing 14 7.14 7 4.17 stalus.Thispropensiiywossimiloriv
r*rre"li.in" 12 6.15 5 2.98 moniiesledby lheir concornovero
l.5.
M O N T H L YD E B TO F H O U S E H O L D S
3
lhe debls reyeoled rhe lock oI dbposoble In.ome Ior benefl.ldry r Meon monthly debt in Bococoywos
6
fomilie!. This wos o .orcequen.e of lhe ogri.uliurol nolure ot 652.83. Meon monihly debi in
l
fomilies' livelihood where work qnd ih.o|ne cre often secsonol. Comolig wos 346.94.
i
r Percentdse'wise,overog€ deb/
overog€ income wer€ 32.04 percenr
for Eo.ocoy (P652.83/P2037.82) E
ond 18.92 percont tor Comolig
0-200 54 43.55 55 56.12 (P346.94lPl834.1), respectiv€ly.
201 - 400 13 t0.48 5 5.10
r Th€ Bococoybeneficioryfomil;es
40r - 600 23 22 22.45 !
hod considoroblygrsqier debt
601 - 800 l 0.81 4 4.O8
800 - I 000 t3 10.48 8.16 exposurolhan lhose ol Comolig.
I
Possibleoxplonotionswerel
t00t - r500 3 2.42 2 2.O4
:
t50t - 2000 I 6.45 2 2.O4 . Cosi of living wos higher in
200r - 3000 3.23 0 0.00 Bucocoyb€cous€of iis grooier
t
3001& hisher 5 4.03 0 0.00 occ€ssibilit lo rhe noliondl rood
totol 124 r00,00 98 100,00 nelwork compor€d io Comolig
Meon MonihlyDebl 652.A3 346.94 . Hous€holdsize jn Bococoywos

bigger

PARI 2.

FINDINGSON COCOFIBERPROCESSING
2.1.
L E N G T HO F E X I E R I E N CIEN C O C O F I t s [ R
P R O C E SI N
SG
Pro.essorsin Comolig hod lesser experien.e Th€ mean lensrhs of expsrience
compored fo lh.ir .ounlerports In 8o(o.cy. in cocofiberprocessinswos 22.73
monihs for Bococayand 16.53
months fo. Comolig.

Bosed on ihe disiribution of lensth

of experien€o,lhere were consi-
0-6 55 13.61 7l 24.45 derobly higher proportion of new
7-12 8 1.98 t6 5.52
'169 Procosso6in Comolis thon i.
t3-24 198 49.O1 54.24
25-36 r05 25.99 27 9.31
37-44 14 3.47 These indicote voryins moturjty
I 0.34
24 5.94 6 2.07
 2.2.
M O D E SO F T E A R NNI G
In Bococo, €xp€riencein oboco
lhe prilnqry mode. ol lcornlng wore!
(ol one'3 exp€rten.e In cbo.o Prote$lng' dnd (bl ht obtlwston' processingwos ihe top fo.m of
l€orninq folloved by simPie
obseNoiion ond lhen by being o
'veloron processor'

In Comolig, boing o vetemn pro-

csssor mofl€red mosl, followed by
experi€n.e in aboco, ond then by

This showsrhor co@Iibe. Pro-

c€ssinswos o simple procadure
ond lhsrelore suited lo lobor-
intens;vesei-up such os thot
found in dgriculturdl communitio$.

2..3
C O C O FI u E I rI.R O C I T S S I NAGS L I V E L I H O O I )
At lhe fim. of lhe sludy, mosl ot lhe pro.eseot! Gonildorad 'o'otiber Co.ofib€rproceslingwos o
pro.eslng ellher 05 socondqry or ollerdotlv. llvellhood opllons' primorylivelihood{or 203l
per.entond 19.66perceniof ihe
p.o.€ssoEof Eo.ocoyond
Comolis,rsspeciivaly.

Consideringlhot the beneficiories

26 20.31 35 19.66 we.e from osriculrurolmunicipoli-
53 41.41 12 40.45 to dEduc€
t:es,it wos reosonoble
42 32.81 59 3315 lho he gopsin ogriculluroiwo.k
7 5.47 l2 6 . 74 s.hedul€providedopporiuniries
128 100.00 t7a loo'oor' for gointul octivfiyvio cocofiber

S OT IN PROCESSING
S K I L L E DF A M I L YM E M B E R N
lhere wos a pool of 3killed lobor ev€n qmong beneliciory house- Only46.55 pcrcenlof Eoca€oY
hold!. Expontlon of produ.llon .opo.lv iI ll wos underl€ken' skilledmembeafully ensoged
would direedy benelir q greoter number ot houtehold members' in coi. processing
whil€ 64.49
percedof rhe cocofiberp.o-
. Th€ distributionof skilledfomilymembersnot currenilv;nvolvedot fiber
o of comoliswere fully
cassors
processingshow how much o{ lha lobor force mov be topped for the €x-
r Dandedmonutocturins processe.ofJubokenorolhercocofiberproc6so6'
. Proc€ssorsusuollywo.k os o group in o fom;ly.This norure of the The implicotion wos thot should
rnon'rol monlfocturing procersfit the skills of rurolfolk. Thus, this enterprke moture to o
progr€ssionof skills developmentwould tend to be possedon wirhin sustoinobleindustry rurol
communiiiesin sen€rdl ond rurol
fomilies in porliculor slond to I

directly benefit {rom the socio- 9

economi. goins to be reoliued in
view of ihe decreosingproductivity
-
o

:
2.5.
;
E F PROCESSOIIS
A C I P R O I . I LO
Procos3or3In Bsaqaoywere generolly oldet compqred lo Cqmollg' . In tarms of the oSe dislribulion o{
dclive proc€ssors,thero were mor€
odult {20-s9 yeors) o.d rhe old
{60 ond older) ose .onse thon the
younger oge groups in Eococoy

A. HouseholdMembefship who were beneficiaryprocessors.

'128
l 2 y o o r so n d b e l o w 137 27.45 30.33 . Comolis hod fewet ofrhe old
'r9.43
I 3- l9 yeors 105 21.34 a2 {60 yeors ond older)ose involved
20-59 yeors t32 26.43 126 29.46 in co.ofiber processins.
60 yeors ond oider |8 23.94 a6 20.38
r This wos tro.ed to the rype of
492 100.00 422 100.00
product beins mode.
B. HH in Processing
l2 yeors ond below 30 15.38 38 21.59 . In Bococoywhere l.,ines were
13-19yeors 38 19.49 47 26.70 mode rhe relotivelysimple tosk of
20-s9 yeors 68 34.47 63 35.80 lurning ihe iwiner's wheel wos
60 yeors ond older 59 30.26 2A 15.91 usuollyrelegotedto child.enwhile
Subiorol for B 195 100.00 176 100.00 the hord€r tosk of twine mokins
or weoving wos rhe respons;biliry
l 2 y e o r so n d b e l o w 22 30 of rhe older processors-
l3-19 yeors 36 57
. ln Comolis, where wedvins wos
20-59 yeors 5l 50
underloken, both odulis ond
60 yeors ond older 50 32
younger people ioke iurns in
P€rcentof B/A sub totols 39.63 41.71
 r Thu., cocofiberprocessinsmoy be
viewed qs o fom;iy endeovor As wiih
form ond householdchores,children
were involved in prccessing.They
were oble to help eorn coshfor ihe
iomily.
r Child lobor f.owned upon by western countries usuollywere the
typesthot require some form of bondose or sub-humon condiiions
The <osewith child cocoliber processorswos oi oll not similor with
these iypes. lt involved,he eosiesitosks ond wos done wiihin tho
fomily householdofior s€hool hours. This is o normol procticein
rurol .ommunilies in ihe Philippines.

G T NI ] I R I R O F I I - EO F P R O C I 5 S O R 5
Femoleswere equollt llkely to
be irwolved in lhe cocoliber
Pro.essingInduilry os lhe nen.
r About40 percentof benoficiory
A 1 2 Y e o r cq n d b e l o w
householdmemb€rsw€re ocllv€
69 6l
68 67
Totol 137 128 . In ose sroupswher6household
Perceniin processlng 22 30 porti.ipdtionin procassing
wos
B. l3-19 Yeors high6st,womenhod ot lsoston
58 4l equolnumberos the men.
47 4l
r Thisresultshowedthot ther€wos
105 a2
o foirlyevenchqncerhot womsn
Pefcentin processing 36 57
w€r€ obl€io porticipoiein
C. 20-59 yedrs
cocofiberprocessing.
58
68
132 126
Perceniin processing 5t 50
D . 6 0 y e o r so n d o l d e r
58
60
118
Percenlih processing 50

251
241
492
Percentin processing 39.63
o
 PART 3

FINDINGSON DIRECTBENEFITS
TO PROCESSORS
3.1.
I R I M A I T .C
YA I N S I

I
fhe pri|nory golru exp€rien(ed [!t the respondedt r Th€sludylist€dseveroltypesof bsnofilscluirered
loftllles due lo .ocollber processing ore the lollowlng: oround9 calegories. Thissummorized repo.tpi.k€d
(a) dbl€ to €ol al leosl3 meols o doy, (b) dble to send the iremswith the h;9hestfrequencycountsond
chlldren lo school,ond (c) oble lo p6t debrs,
a
presenlsdlhesein Tobl€3.1B.
' Thetop threeposiriye.ons€quences
of the
processingoctivity,
whonviewedogoinsttheir o
b6lowpovsrlylin€ economi.stonding,were hishly o
signiliconifindings.
S e n dc h i l d r e nt o , c h o o l 122 171
Nicer clothesfor children 59 42 r Thecontinued€xis16nceof this informolti€-up o
A b i l i t yt o p o y d e b l s b€tw€enthe rurolfomilycocofiberprocessors ond
5
112 153
M e o l so t l e o s i3 t i m o so d o y 123 106 JUBOKEN helpedsustointhe economicviobilit of r
Vegefoble
6-7 x o week 90 A2 thesecommunities.
S n o c k sl - 2 t i m e s 85 67 . Pr€sentins lhesefomilieswilh on olternoiivesource
Meol once o monih 76 7
oI i.come redound!to socio-oconomic odvontoges
Fish I -2 x o week 45 78 porticulo.ly5inceoccessio ond opiionsfor lucrotive
Fiesio 72 61
Iivelihoodopporlunities
or€ limited.
chrlsrmos 76 55
M e d i c o cl h e c k - l p
r JubokenEnterprisemustbesivencr€dilforproviding
52 62
Medicotion for ill nr€mbers 51 53 non-formlivelihoodopporlun;ties
to 5 bosicolly
ogriculturolbdronsoysof Eococdy
ond Comolig-

3.2.
I M P R O V I M E N TI N E C O N O M I CW [ L I . B E IN G
I'lolorily ot lhe processorr exp€rienced overoge I Fomilieshod expedencedoveroge
lo high improvemenrsIn their fomlly's well-being, improvementsin their €conomic
well being. But more thon 30
percent in Bococoyond 25 percent
in Comolig hod moderore to very
hish improveftents.
Very Low (l) I 0.81 3.67
r lt wos importoni to noie thot this
Low (2) t0 8.r3 6 5.50
moderote improvemenl in
20 16.26 t8
economicwell,beins hod been
5l 41.46 49.54
ochieved despits the foct ihdt the
Moderoiely Hish (5) 22 17.49 l9 17.43
soid iivelihood wos not a yeo.Jons
Hish (6) 12 9.76 5.50
 3.3.
IN THEFAMILY
I M P R O V E M E NITN S O C I A TI N T E R A C T I O N
Molo"lt of rh6 pro.e$or. hod tlgnlflcotrl I Th6pr6mi!€woslholimprovedposilive
lmprovenienlE In soclol Inreror on In lhe 6olnllt' irferoctionwilhin lhe tonily leodslo
improv.montson th€ senerolw€lfore
ot th6 fomilyne,nbersond on lho
gon€rolwel{oroofthe commrrnit. Afiet
oll, improvodsociolinteroctionwilhin
veryLow(l) l 0.81 3 2.75 thc fdhily wos rnore likely to br€ed
low (2) 3 2.44 I o.92 good inlsnlionsfor .olle.livo growh.
ModerotelyLow (3) l7 13.82 9 a.26 t Fromths perspecliv€ oflha ben€'
Ave,sse (a) 47 38.2',r 52 47.71 Gcioryfqmilieslh€y hod exp€rionced
ModerorelyHish (5) 29 23.58 2l 19.27 onhonc€dsocioldev€lopmont in
Hish(6) 15 12.20 t8 I6.5l th6ir fonily lifo. lt strongthgns
th€
very Hish (7) tl 4.94 5 4.59 cloin of the sociol conlin'.Jsd
bonefils
123 100.00 109 r00.00 by lho exi.lonc€of lobor-intensivo
4.54 4.44 enlerprisc!in iho ruroloreos,

TAILI ,1,

BENEFICIARIES
FINDINGSON SECONDARY
th6 s.rondory b.n6fl.lories were ldendllod
bt lhe pri|noty benell.lorl*. lh6lr nunrbcr
wgt d€pendenl upon lhe r.3ulls of lh€ surv6y
of b€n6tl.iorle3' i6edbdclc
ll|e dlrtln.t .orilrlbu on ol lhe fcedbock of ac.ondoly
berefi.lorlca moy bo oppreclored bolh qs do.umenlc-
tlon ol th. "rtpplo-€ficci" of lh. soclol ond e@noml(
bencllts of co.ofiber prc.esilng.

4.1.

M O N T HI - YI N C O A , I O
.I F SECON ES
D A R YB E N E F I C I A R I
,!l.rr o{ iltc secondory ben6ficiory
groupr w€r€ ol5o In lhe low In.orne
bracket lhole In Bo.ocny, however.
hod low€r dverugc In.ome.
0-500 9 19.57 2 6.45
. Monrhlyincomed;st.ibulionofsecor
501 - r 000 8 17.39 3 9.68
dorybenefi.ioriesshowsd meon
ro0r - 2000 t0 21.74 7 22.58
monthlyin.omeof P2,777-17for
2001 - 3000 6 13.04 9 29.O3
Bocscoyond P3,411.29for Comalig-
300r - 4000 3 6.52 I 3.23
4001 - 5000 2 4.35 3 9.64 . Theserneonincomevolua'we.esisr;
c 500r - 6000 o 0.00 I 3.23 ficonllyhisherthon the meanmontttt
600r - 7000 2 4.35 0 0.00 incomeof th6 beneficiory
fomiliesof
r Bococoy'ssecondorybeneficioriesvere from lhe t The secondoryben€ficioriesof Cdmolis ware more con-
loker id<one gtoups ot the fomilr ofbenefi-ciorie! cenlrcted qiong sJighly higher in<ome groups (from ihe
consistingof rolalivesor corpente. groups. P],001.00 P3,000.00)implying thot these include ths i

so.i-so storesqs well os olhor €nt.ep.€neuriol entiti€s.

4.2. I

A S S O C I A I I O NO F S E C O N D A RW
YITH PRIMARY
BENEFICIARIES I

lhe ostociclion belween prlmdry

qnd secondory b€nefi.lorieg
wos rded obove overoge. lhis o
implied rhol co.oflb€r pro.esrors
VeryLow(ll 2 3.92 3 7.32 were soclollt oc(epr6ble.
Low (2) 0 0.00 I 2.44
r Associotion
ben{eencocofiberpro" o
5 980
21 41.18 16 39.O2 cessoFond recondoryben66.idries
o
ModerorelyHigh (5) 10 I9.6l
'12
29.27 w€f€gen€rollyrotod
lo be moderote- 'o
Hieh(6) t0 I 9 . 6r 3 7.32 ly high(4.55)forBacocoyond
slishlly !
VeryHish (7) 3 5.88 2 4.88 dboveov€ros€(4.22)fo. comolie. a
51 100.00 41 100.00 . Thefacl thdt morethdn 40 percent
4.55 4,22 of th6 seconddry
behefic;oriesof both
rotedtheirdssocioiion
municipoliries
with cocofiberprocessorsto be
moderor€lyhish (5)to very hish (7)
mqnifestihe posiliveonitudeengen,
94.00 32 94.12
deredby the processing
o<tiviiy.
Negoiive I 2.00 2 5.88
2 4.00 0 0.00 The positiv€viewwos reinbrcedby
50 100.00 34 100.00 lhe Tobl€4.2.258.

'r.3.
P E R S O N A LB E N [ F I T SO F S E C O N D A R YB E N E F I C I A R I E S
Severol rype! ot benefib were identi{ied os personolly The doto below lends oddilionol
d.crulng ro secondorybenefl.lcries. lhe top two were insishls jnlo the dynomicsof
polronoge of lhe sfore, ond poymenl of debts. cocofiber pro.essing.

Benefitsoccruins to ihe secondory

beneficiorieswe.€ voried. These
indicoted the t;pple eftecl'on rhe
communiiy oi lorge.

Sori-SoriSlore 37 24.18 26 32.10 Eslentiolly'it in.luded eftuctson

38 24.85 29.63 their business(e.9. poyment of
29 r 8.95 t5 I8.52 debi, potronose of store) ond
 ' Ll! l()(iir i.)i'I 1r:lfl

The results Indi.ole rh6r lhere

were srill sr€os for imProvemenr
in order ro PUshlhe o<teprobility
of .o.o (oir Processingds dn
5 4.07 5 .510 olternotive non_form
5 447 I 92
Low (2)
ll t 0 109
M o d e r o r c LLyo w ( 3 ) t5
40
)2 20
32 52 40 3 6 7A;L , Afihe time o{ the 5tudv,beneti'iorv

M o d e r o t e l yH i s h ( 5 ) 30 2 43 9 35 32 t t,l fdmilies' views on cocofiber

p.ocess;ngos o livclihood oPlron

;i
t7 13.u2 8 .26
.
Hieh (6) ronsed from overose to
tl a 94 42
vcry Hlqh(7) moderolelYhigh
123 100.00 109 1 0 0.00
.

l'll(iU|551j\l('
l , t r : 1 . | i rllt,( ) i \ l f . . l i l l \ i ! 1 L l / i l l l X i 1 1 . 1 l ( ) li\ll' J L l O i ' { ) f 1 l l ! l l i
lhe pro(e$ors PossibledPlondiions wer€:
Whlle $e rdllngs msv be desc'ibed ds overoge'
phvsicollv srrenuous ' Boco.oy ProcessoBhqd 22 73
Iro|n Comolig t)und iheir work more
thon lhelr counterporls in Bocdcov' months (l 89 Y6ors)overoge
procossors lengih o{ processingexperience
r The meon .otins of Bd<ocovprocessorswos 3'80 while
compdrod to lhe 16 53 months
in Comdl;s hod on overose roting of 4 12
(r.38 yeors) of lhose .omins
from Comotig. Also, there were
more new recruiis in Comolig

. Coco nor wos consideroblymorc

t0 8.13 5 459 difficirlt to Producethon coco

t0 Lr3 4 3.67
tow {2}
26 2l.14 14 12.44
Moderciely Low (3) , Compored with ihe control srouP
4A 32.52 49.54
Avercse {a) responses,however,coco coir
27 2t 95 17 15.60
r'.ae.die Y Hlsh (s) processinsdid not PhysicollYlar
'12 I t.0t
-:_ 5 4.O7
! ihe worker beyond whai wos
5 4.07 3 2 . 75
required bY oiher livelihood
109 r00.00
i.*r3 123
3.80
100.00
4.)2
P E R C E P T I OO
NN L E V E LO F D I S C O M F O R T
The level of dlsconfort in co.ofiber processing woi Therewds o verypronounced o
very low lor Boco.dt benefl.lqrles but moderorely high diftu.€ncein the lev€lo{ discomfori tr
f or Colnollg benerl.lorles. expen€nced by rhe procelsorsin I

Thisr€inforcsstho findin9in the

Pre ous s€clion.lmprovementin -
work technolosyopp€orodlo bs
very Low (r) 77 64.71 3 4.29 dssirobl€in net weoving.
Low (2) 38 31.93 3 4.29
Comporedwith iobsfrom rhe !
ModerotelyLow (3) 0 0.00 10 14.29
o
conlrolgroup,howeve.,rhe l€v€lof
Averoge(a) 2 26 37.14
discomfortsxporiencod
by iho
ModeroleLyHish (5) 0 0.00 t5 21.43
Hish(6) 2 10 14.29 Comolisgroup os shownobovodid o
noi Yorymuchfrom lhs levelof
a
very Hish (7) 0 0.00 3 4.29
It9 100.00 70 100,00
frofi other
discomforlexper;enced t
1.45 4.76 iobs.

5.4.
P E RP
S E C T I V EOSN P A YS A T I S F A C I ' I O N
Pqt solisfqcflon omong beneflclorles exhlblred o sk€w6d dltrl- r This could be directly oflributsd to
bullon Incllned towords the lowe/ rolings lor bolh municipolities lhe dif$erencein ihe level of
but more detlned for rhe Colrlollg pro.*sor fomillei. discomfortby Comdlis processors
os shown previously.ll wos
therefore rotionol thot the Conolis
procsssorsvi€w lhe present
poyment rote moderotely low
Very Low (l) 8 6.61 given thdt fhe octivity demond€d
Low {2) t7 14.05 t5 12.30
27 22.31 34 27.87 . Thk poinr con{irmseorljer findinss
4A 39.67 29 23.77 thot, in ldte of improvementsin
Moderotely Hish (5) 9 7.44 economic vell-boing, there
Hish (6)
cmoins o need for a mix of
Very Hish {7)
liv€lihood options for osdculiurol
Toiol 121 100.00 122 ]O0.OO
communili€s.Thus, lhe necessiryof
other non"form livelihood
opportunities is indi€oted.
 PARI 6,
OF FINDINGS
SYNTHESIS
precedins tecrions,rhe lollowlns.onclusions
from the enume.drion qnd dllcussion ol 'esulrs In rhe
were drawn os boses for furure inrerveniions on rhe nolure
of operotions ol the J'rboken EnterPrise.

o. ,'itdlch ol Skills A Secondory Livelihood

The lubok€n coco{iberProcessors Although cocofiber processinsenobled rurol

\ete \o1r\\o\se\s\ $\e\{\se\s \s\ae\\s\ds \o eoin(odes\ i\cose $o\o(\

employed os forrner,skill6d lqbot o f l h e h o u s e h o l disn E o c o c o vo n d c o m o l i g

md.uol ldbor, ond other reloled fields. .onsidered co.ofiber processingeither os

The comPositionof co.otiber secondoryor dltefnoiive livelihood This wos

processo6 on€lt€d to lh6 foc hot the duc to the ssosonolilyof income derived

required Processinqskills of the from co.o{iber proccssins ln.ome dlone

Enterp.isemotched rhe skills ond from cocofiber pro.essing mov not be oble

competenciesof rurol ond osriculturol io onswe. oll economic noeds of processor

lomiies due 1othe seosonolitvot Processinq

b. Polentiol lor Exponsion

d. Concrele Benefits
Convebely, the Poteniiol io dpond
ond inrensifyco.ofiber processing IUBOKIN Enrerpriseshod .r€ot€d

within ths household{oced b.ight 4onJorm smploymenl opportunilies to five

osriculturol borongoysthrough coco coir
pro<essing. Due to rhis opporlunit tho
This wG due 1o oi leost ih.ee reosons.
.oro (o\r Frocess6rshoA erler\e\ied on
On€ wos the presence/ovoilobiliryof
overose increosein their e.onomic well-
skilled household membec who were
beins os well os improvementin sociol
noi yei o.tively involved in cocofiber
interd.tion omo.o th6 fomily members.
p r o c e s v n gl o r r e o s o n sn o l r e v e o l e dn
ihe study. Second,the processing IUBOKEN Enterprisesmode ovoiloble
technolosywos eosily leorned. Third, livelihood oplions oi o time when
the gene.dl populo on ofthese rurol ogriculturdl produ.rion in gicol hod been
or osriculturol communitiesrecorded depressedby both nottirol ond morket
th€ neod lor olternoiive liyelihood forces. In turn, this increosedthe cqpociiy
options to ougment form income. omong the beneficioriesio send their
childfen io school, enioy three meols o doy
ond eorn extro income to poy debts. In ihis
respecl,lhe entiiy con be c.edited for
o
.reoling o socio-e.onomic impoct in rhe
boronsoys of Comolig ond Eococoy,Albo,.

Ripple-Effe<ls
Resultsofrhe studytend to oHestedto ihe
"rippl€-e#ect" of cocofiber pfocessinsto
secondqryben€ficiories. The bGnefic;ories
ot cocoliber processo6 consistedof their
immediot6 fomilies or households,ond their
respectivelocql governmontunit ot the for
end oI lho pole. Among rhe benefitsderivod
by se<ondorybeneficioriosfrom co.ofib6r
processingwore: Potronogeof slors,
poynenl of debi, direct qssistonce,
ossislon<ein kind, dnd poyment of monuol
L coco{lber Processing
as o LivelihoodOption
Givsnth€ sisnificonl
socio-oconornic
of JUEOKEN Ent€rprises,
contribdion
theoccsplobiliry
of coco
coirprocessing
os q livelihood option omong rhe rurolfolks
wos viewed positivel, olbeit, moderotely.
cocofiber pro(essingvos olso posilively
psrceivedby procosso.s,secondory
bensfi€iories,ond ev€n by the conirol srouP
in certoin oreos of pordmelers. These
includ€, omons olhers, mode.ot€ly low level
of discom$ort,moderoiely low to overose
level of physicolexertion, posilive p€rception
of iho fdmily's economicwell-bsing,
moderol€ly low level of difficult in
processing,ond posniveperceptionof its
efiecr on fomily ljf€.
The study showed thot the losks required
overoge or moderote Physicolexe.iion os
claimed by the processo.sthemselves.
However,when compored to productive
octivitiesin lhe oreo, its level of physi.ol
I
=
o
s lnlrinsic Vqlue
of JUBOXENEnlerprises I
volueot luboken
Theintrinsi< 2
Enlerpnseto lh€ proYjnceof AIboY
wos ih€ provisionof o monufociurins
indlstry to o p.ovince thol hod very
o
few mqnufocturing€nie.prisosond
hod obort€d plons of boostins its
o
!
lh .ontinued existencewoold imProve
the economic index of the provinceos
well os the r€gion. lis conlinued :
relevonc6would sroduolly build-up
t
rhe so.io"economicstruclureot its
b€noficiorymunicipoliti6sos these
moved loword hishe. loYelsof
outonomy,higher levelsof produclivit,
or wider employobl€ skills Pol€ntiol.
Using th€ dcceptobilit criterion os on
'ndicotor o{ susroindbilit IUBoKEN
Enl€rpriseswos viewed 10 be
sustojnoblefrom ihe eyes of ihe
communiV SusroinobiliV howeve.,
must b€ more importanily oddrelsed
bosed on idctors inherenl to the fim
iiself such os finonciolviobiliry ond
mo rkeroHlily.
From the {oresoins, it wos evident thot
lhere wos o pobnriol Io.IUBOKEN ds
an ogro-processingentiry 10 ssloblish
its ni(hs os cotolystfor rurol
developmenrin AIboy Province.
I
if...
''t,

FINIANCIAL
REPORT

CENTIIICD
r REPOTIOF INDEPENDENT
PUBUCACCOUNTAN'S 63

OF FINANCIALPOsITION
r STATEMENI':i 64

t STATEMENTSOF IEVENUE'
D(PEN5ISAND EXCES5OF NEVENUES
 z
2

-'JI
& ARAULLo
PuNoNcanYAN o
& YOUNC INIERNATIQNAL
ERNST

AUDITORS
OF INDEPENDENT
REPORT

The Bodrd of Trustees

Foundolion tor o su6lqinoble so(leiy (FSSI)In.orporqled
(A wonstock l{onprolil Corpordtton)

of Foundolionfor o
We hove oudiled th€ occomponyingstolemontsof finonciol posilion'l999,
Sustoinobl€So(iety(FSSI) Incorporotedos of Docombor31, 2000 ond ond th€ rolotod
gxpenles ond
3tolomenfsol revenues,expensesond cumulolive excessoI revenuosover
coshflows for the veorsth€n ended.Thes€finonciol slotemenhorg the r€sPonsibililyofthe
Foundofion'smonog6msnl.Our responsibilityis to €xpresson opinion on thesefinonciol
slolemenlsbosodon ou. oudits.

we conductedour oudils in occordoncewilh oudiling stondordsgonerollyoaaeptodin lhe

Philippines.Thosestondordsrequir€thot wo Plonond performlhe oudil lo obloin reosonoble
ossuronceobout whether the finonaiol slolementsoro {r€e of motsriol misslolemenl An
oudil includesexomining,on o leslbosis,evidoncesupportingthe omounlsond disclosures
in lhefinonciol slolemenls.An oudil olso includesossessinglhe occounlingprinciplesused
ond significonl€stimolesmode by monogemenl,os well os evoluolinglhe overollfinonciol
slolementpresenlolion.W€believethot our oudilsProvideo reosonoblebosisior our opinion'

In our opinion, the finonciol sfolementsrefurredlo obove pr€sentioirly, in oll moteriol

respecls,lhefinonciol posilionof Foundotionfor o SusloinobleSociely(FSSI)Incorporoted
os o{ December3l , 2OOOond 1999, ond the resullsof if5 operotionsond ils cosh{lovs for
lhe yeols lhen ended in conformitywilh occounlingprinciplosgenerolly occepledin the
Philippines.

.
A
t\
\.++& PTRNo. 7738911
lonuory8, 2001
 fouNDAflor{ FoR A SU$AI AELESOCIETV (FSsl}INCORFOTATED
(A Itorstocr(, llo,'Diori, Corporotlont

OF FINANCIALPOSITION
STAIEMENTS
DECE|IEEI3r, 2q)O AND 1999

2000 1999

ASSETS

CASH 1,248,199 2,153,940

SHORI-TERi INVESTMEN?5 - Net of Allowonco

for OoubtfulAccountsof P3,000,000in 2000
ond P750,0O0 in 1999 13,A95,877 13,121,677

LOANSRICEIVABLE - Nel (Note3)

- PROJE€TS 52,O53,743 31,071,605

FUNDSHELDlN TRUST- Ner (Note4) 506,120,904 5r 4,200,400

PnO?EffY AND EqUIPMENT- Nel (Nore5) 40,755,886 39,141,004

(Note6.)
OfHEn ASSETS 14,379,74O 11,595,767

P 628,454,729 p 51, ,287 ,393

LIABILITIESAND FUND BALANCE

ACCOUNISPAYABIEAND OII{ER
LtABtLtitESrNoie7) 7,s39,As3 3,40r,989

FUND BALANCE
Members'contributions 85,500 85,500
Gront (Nofe7) 454,422,597 1s4,422,597
Net unreolizedlosson declinein volue
of investmentportfolio(Note4) | 7,257,267)
Cumuloliveexcessof revenuesoverexpenses 173,264,O16 t52,977,307

620,914,476 507,445,404

P 624,454,729 P 611247393
o
 z
z

FOUNDAflON FOR A SUSIA|NAELE SOCTETY(fSSr) I{CORPOiAIED

(A Nonsrocb Norrprcflt corporcrion)

STATEMENTS
OF REVENUES, AND CUMULATIVE
EXPENSES
EXCESS
OF REVENUES
OVEREXPENSES
FORtHE TIARS ENDEDDEGE BER3t, 2000 AND t999

2000 1999

REVENUES
lncomefrom fundsheld in lrusl 34,754,941 41,046344
Gront- Ford(NoteZ) 4,135,873 4,697,741
lnlereslincomefromi
Proiech (Note 3) 4,525,775 3,090,888
701,570 560,777
Guomnteelees (Note6) 452,473 494,994
Others 471,824 200,865

p 45,042,456 p 50,!3I,613

EXPENSES
Losseson guoronfee tund 4,713,705
Provisionfor doubtful occounts 4,320,539 5,168,516
Ford proiect expenses(Note 7) 1,135,873 1,697,741
Soloriesond woges 3,847,905 3,479,512
Proiect sronis (Note 8.) 2,795,544 1,926,100
Employees'benefits 1,449,17O 1 , 3 r0 , 1 5 5
Depr€ciotion 8t 5,498 738,169
',t
461,1 5 377,607
Ulilities ond communicotions 437,O59 559,430
Professionolfees ond olher fees 395,t88 625,659
Trovelond lronsportotion 377,061 210,988
Securitysewices 334,800 334,800
Book ond office supplies 259,323 227,93O
Toxesond licenses 50,510 71,311
322,427 250,237

P 24,755,717 P r9r8r,455

OVERExPcNsEs(Note9.)
ExcEsSOF REVENUES 20,246,739 30,150,r58

OF REVENUES
CUIiULATIVEEXCESS OVER
EXPENSES AT BEGINNINGOF Y:AR 152'977,3O7 122,427,149

CUMULATIVE
EXCEssOF REVENUES
OVCR
 FOUNDATIONFORA SUSTAINABLISOCIETY (FSSDINCORX)MTGD
(A Nonsroctg Nonprofi, Corporofiont

OF CASHFTOWS
STATEMENTS
3I.2OOOAND T'99
}OR IHE YEARSENDEDDECEMBER

2000 1999

€AsH FLOWS FROM OPERATINGACTIVIIIES

Excessof revenuesover expenses P 20,246,139 P 30,150,158
Adiustmentsto reconcile excessof revenues
over expenseslo n€l cosh provided
by operoling octivities:
Losseson suarontee fund 4,713,705
Provisionfor doublful occounrs 4,320,539 5 . t6 8 , 5 1 6
Depreciotion 8t 5,498 734,469
LosEon sole of tronsporlol;on equipmenl 14,144
Recov€ryin volue o{ investment portfolio 11,530,929
Accountswritien-off 3,008,372)
N€t chonses in operolins ossctsond liobililies:
Increoseinr
Short+erm invesrm€nts 3,O24,2001 5,399,922)
loons receivoble- proiects 27,763,4221 6,e17,214)
Increosein occounts poyoble ond other
liobilit;es 4,137,464 2,893,601

Nel Cosh Providedby Op€roting Aclivities 3,500,467 35,256,'t65

CASH FIOWS FROM INVIsTING ACTIVITIES

lncreosein other ossets 2,784,O13J 3,095,884)
Ner ocquisitionsof property ond equipment 2,s95,2241 1,414,167)
Decreose(increoso)in funds held in trust 422,229 29,797,376)
'150,700
Proceedsfrom sole of tronlportotion equipment

Nei Cosh Used in Invesiing Aclivilies 4,406,308) ( 34,307,727'

(DECREASE)
NET INCREASE IN CASH 905,44r) 948,438

CASH AT BEGINNING OF YEAR 2,153,940 1,205,502

CASH AT END OF YEAR 1.244,499 2,753,940

Supplemenlol Disclosure of oncosh Invesring Adlvily

a In 1999, the Foundotionocquiredlond with o iotol cost of P29,A42,OOO
through o docion en poso
 2
z

}OUi|DATION 'OR A SUSIAINABLESOCIITITGSSD II{CORFORAIED

(A No,'Bro.k Nonp,!th Cotporarlont o

NOTESTO FINANCIATSTATEMENTS

I . ORGANIZATION

The Foundotion,o nonstock,nonprofit corporclion,wos regisleredwilh lhe Se.urilies

ond ExchongeCommissionon September6,i 995. tts Primorypurposei5 to conlribufe,
encouroge,ossist,Providefinonciol supporl by meons of gronls ond loons in o cleor
ond tronsporcnt monner ond to provide lechnicol ond mdnogeriol supporl io
nongovernmenlolorgonizolion {NGO}, people's orgonizolion (PO),cooperotivesond
similorprivoleorgonizotions enterprise
in susloinoble

On seplember6, 1995, the PhilippinaGovornment,lhrough lhe DoporlmenfofFinonce,

gronted P.{54.8million consistingol5% in cosh ond 950/6in governmenlsecuritieslo
the Foundotionfrom ihe proceedsof o debt concellotionunderlhe EiloterolAgr€oment
on the Reduclionof Ei€rnol Debt entered inlo by ihe Governmenlsof lhe Philippines
ond Swikerlondon August11, 1995.Thefund will be usedos gronlsor loonslo supporl
proieck of NGO's, PO's,cooporotives6nd similor privole orgonizolionsin sustoinoble
enlerprisewhich folls within the guidelinessel iorth in the Agreement.

ACCOUNTINGPOLICIES
2, SIGNIFICANT

Loons ReceiYoble - Proiecls

Loons receivoble- proie.is ore sloled ot their oulslonding boloncesreduced by the

ollowoncefor proboblelosses.

Theollowoncelor proboblelosse6is ihe eslimoiedomountoflossesin the Foundolion's

porffolio,bosedon monogemenlevoluotionof the collectibilityof loons.Th€ollowonce
for proboblelossesis estoblishedthrougho provision{orloon losseschorgedioexpense.
Loonsore wrilfen-off qgoinsl lhe ollowonce for proboble losseswhen monogemenl
believesthol lhe collectibilityof the principol is unlikely.

Funds Held in lrusl

Fundsheld in trusl orevolued ol lhe lower of oggregole.osl or morkei. Unreolizedloss

on declinein volue of inveslmenlporlfolio is chorgeddireclly to the fund bolonce.
 Property ond Equipmenl

Properlyond equipmentore corriedol coslnet ofoccumuloteddepreciolion.Depreciolion

is compuledusingthe sfroight-linemethod over lhe eslimoledusefullivesof the ossets
rongingfrom 4 to 20 yeors.

The cost of repoirsond moinlenonceis chorgedto incomeos incurred,significont

renewolsond bellermentsore (opiiolized.Whenosselsore reliredor otherwisedisposed
of, lhe costond reioled occumuloleddepreciotionore removedfrom lhe occounlsond
ony resultinggoin or loss is r€flectedin incom€for the period.

. PROJECTS
3, LOANSRECEIVABLE

This occount represenls loons gronted to the following cooperolives ond other
orgonizolions which eorn inleresl ol rotes ronging from l2'/.lo 17'/o per onnum.

2000 t9i9

Cogoyon Volley Confederotion of Cooperotives

ond Developm€nt C€nter P 5,400,000 3,000,000
lingop Poroso Kolusugonng Somboyonon, Inc. 5,r30,000 1,370,000
Jubok€n Enterprises.Inc. 5,000,000 2,741,O23
ABS-CBNFoundotion 4,800,000
Coco TechnologiesCorporotion 4,s00,000 2,000,000
Cenler lor Agri.ulture ond Rurol Development,Inc 4,000,000 5,000,000
Aloy so Kopolid Int€rnotionol Foundotion 3,702,s16
I PILConsumer Multi-PurposeCooporolive 3,000,000 1,800,000
New Rurol Bonk of son Leonordo 3,000,000
Humon Dimension Enterprise 2,470,OOO r,rro,ooo
Dovoo Federoiion of Free FormersCooperolive, lnc. 2,137,591 2,137
,591
Allionce of Philippine Porlnersin Enterprise
Developm€nt. Inc. 2,000,000 3,000,000
PITADFoundotion, Inc. 1,568,3t9 2,O41,847
Lubis Enterprises 1,512,144
Togudin Muhi-PurposeCooperotive 1,366,O71 1,366,O71
Institurefor the Deve,opm€ntof Educstionol
'r.639,500
ond EcologicolAhernolives 1,139,500

o BolonceCorried Forword 50,726,181 29,326,O32

 z

2000 1999

EolonceBrought Forword P 50,726,141 P 29,326,032

Sondigon ng Mogsosoko r,085,000 460,000

Brood lnitiotivesfor Negros Development 1,044,643 1,343,929
FoiresMochinePhilippines 800,o00
Hortonel Consultoncy& Dislribution Services 72s,O00
Center for Ahernotive Rurol"fechnology,Inc. 604,000 604,OO0
AgorophytoPhilippines, Inc. 4BA,129 776,275
Polowon Center lor Appropriore RurolTechnolog, lnc. 427,175
Quodront EngineerinsServices s50,000
Misomis orienlol"Cogoyon de Oro Federotion 300,000 :oo,ooo
Atikho 250,000
KopunungonAlong so KosodponSugbu,Inc. 25,000 202,344

56,425,124 33,O52,580
Lessollowonce for doubtful occounls 4,771,345 1,977,975

p 52,053,783 P 31,074,605

Theseloons ore odaquotelycollolerolizedby cedoin reol estoleond chotlel morlgoges

ond ossignmenlofcertoin inventoryond receivoblesoftho.especfivecooperolivesond
orgonizolions.

4, FUNDSHELDIN IRUST

The Foundofion hos truslee bonks ocling os fund monogors lo invesl the Fund in
combinolion of equities, securiliesond other inslrumenls.The Fund is held by the
followingos of December3l:
2000 1999

TrusteeBonks:
AB Copitol ond InvestmentCorporulion P 128,8t2,658 ? 118,051,642
Solid Bonk Corporolion 97,287,436 a9,715,239
Deoische Bonk 94,710,57
6 90,615,724
Philippine Commerciol Internolionol Bonk 73,793,112 77,012,727
For EostBonk ond Trusl Compony 71,545,444 67,914,139
Metropoliton Bonk ond Trusl Compony 47,179,014 71,5O4,629
Bonk of the Philippine lslonds 49,127 19,127

5 t 3 . 3 7 8 7, rl 511,923,231
Les: ollowonce for proboble loon lossesond
decline in volue of invastments 7,257,267 722,431
 The Foundolionho5 on investmentcommitteewhich coordinoteswith lrusteebonks for
lhe efficienlond effeclivemonogementof the Fund.Theinvestmentcommifieerecerves
reportsregulorly from the trustee bonks which it uses to review the voluation of the
osselscomprising the Fund.Thebolonceof the ollowoncefor probobleloon lossesond
declinein vslue oI investmentsis bosedon the reportssent bv thesetrusteebonks_

5. PROPERTY
AND EQIJIPMENT

Thefollowingis o summoryof Property

ond Equipment
os of December31:

2000 1999

Buildinsond improvements 7,633,449 4,843,440

Officeequipmeni r,s56,393 1,356,990
Tronsportofion equipment t,4s3,256 aas,ot4
Furnitureond fixiures 622,520 622,520

1 1, 2 6 s , 6 5 A 7,70A,424
Lessoccumuloteddeprecidrion 3,267 , 7/ 2 2,452,27
4

7,997,AA6 5,256,150
32,758,OOO 32,746,OOO
Consiruction in progress r,138,854

P 40,755,886 P 39,141.004

6. OTHERASSETS

This occountccnsislsof:
2000 1999

Equity - proiects 4,160,000 4,160,000

Proiectsuorontees 4,000,000 4,000,000
Interestreceivabie 3,451,382 1,464,6e9
Loonsond odvoncesto officers ond emptoyees 2,O29,730 1,086.605
Others 734,664 884,473

P 14,379,75O P 11,595,767

o The ProiectGuorontees of P4,000,000wos estoblished

by the Foundotionto support
a smoll-scoleprojectsimplementedby the New RurolBonkof Son Leonordo.portionof
? the guoronleedepositeornso ouorontee
 z
z

7 . FUND GRANT

In April 1999, the Foundolionhos been oworded o gront omounting to US$280,OOO by

ihe Ford Foundotion.Suchgronl is lo be used exclusively
for generoiinglivelihoodsond
improving degroded og.iculiurolsystemsthrough the developmentond disseminotion
of coconL,i'bosedtechnologies.In August 2000, the Foundotionhos been oworced on
oddiiionolgront of US$100,000by the Ford Foundofionos o supplementolgront relotive
to lhe originol ogreemenl entered inlo by the Foundotionond Ford Foundotion.As oI
December3l , 2O00, lhe Foundolionhod olreody receivedPl4,0l 4,515 of the fund of
which P6,448,100 wos received in 2000 ond P7,566,415 in i999. The remoinins
b o l o n c e so f l h e f u n d o m o u n t i n st o P 5 , 1 8 0 , 9 0 1o n d P 2 , 8 6 8 , 6 7 4i n 2 O O O o n d 1 9 9 9 ,
respectively, ore presenledos port of the AccountsPoyobleond Other LiobilitiesIn ine
slotementso{ finonciol posirion

In Oclober 2000, the Foundotionwos oworded onother gront omounting to US$31,260

by The SosokowoPeoceFoundolion.Such gront is to be used to supporf dctivitiesof
vorious civi( orgonizotions geored towords environmeniol protection. As o{ December
31, 2000, lhe Foundotionhod olreody receivedPf,226,857 which remoined unusedos
ofthe end of ihe yeor ond presented os po rt of the Accounts Poyobleond Oiher l"iobilities
in lhe stotementsof Iinonciol position.

L PROJTCI GRANTS

These represenl gronls provided for developmont oclivities such os technicol ossistonce,
economic reseorch, feosibility studies, product reseorch ond development, pilot
production.copobilitybuilding ond other octivities.The Foundotionoworded gronts io
the following:
2000 1999

Lingcp Poro so Kolusugonng Somboyonon,Inc- p 225,OOO I00,000

JubokenEnterprises, Inc. 150,182
New Rurol Bonk o{ Son Leonordo I50,000
ABS-CBNFoundotion,Inc. r50,000
PolowonCenler for Apprcpriote RurolTechnolog, Inc. I00,000
Sond;gonng Mossosoko 50,000 so,ooo
iPlt ConsumersMulii-Purpose Cooperotive 50,000
Quodronl Ensineer;ngServices 30,000
Lubis Enterprises 30,000
PITADFoundotion, Inc. 50,000
B.ood Initiotiyesfor Negros Development 20,70a
AgorophytoPhilippines, Inc. 5 . 50 C
Cogoyon Vclley Confederotion of Cooperotives
ond Developmenr Center 2?Ca':f
 Smoll gronts representgronls lo vorious nongovernmentoagonizolionsfor lhe some
purposeos the proieclsbut ot on omounl not in excessof P50,000.

9, INCOME TAXES

The Foundotion is o corporotion nol orgon;zedfor Profit but oPerotedmoinly for the
promotion ofsociolwelfore os contemplotedunder seclion30(g) [ormerly 26{g)]of th€
Tox Code, cs omended, ond lherefore, exempl from lhe poyment of income tox on
incom€ receivedby ii os such orgonizotion.

However,it is subiectto corresponding inlernol revenueloxes imPosed underthe Nolionol

lntornolRevenuoCode on its incomederivedfrom ony of iis properties,reol or personol,
or ony octivity conducted for profit regordless of the d;sposition

10. PROHIBITION AGAINST SHARING IN CORPORATEASSETsAND EARNINGS

Upon rhe dissolutionond wind;ng up of the olfoirs o{ lhe Foundotion,no person or

pe.sonssholl be enlitledto shore;n the distribul;onof ony corporoieossetsAllmembers
o{ the Founddlionsholl be deemed to hove expresslyogreed ond consenledlhal upon
such dissolutionoI lhe Foundotion,whether volunlory or involunlsry rhe ossetsof ihe
Founctoiion,ofter pcying its liobilities, sholl be conveyed ond lronsferred ro ony "quoli{ied
foundofion engoged in oclivitiesin ihe Philippinessubslontiollysimilor to lhose of the
Foundotion'sor to the Republicof the Philippinesor ony of ils ogenciet,inslnrmenlolities
or politicolsubdivisionsos the Boord of Trusleesmoy decide

OF ACCOUNTS
],I. PRESENTATION

Cer'loinoccountsin lhe 1999 slotemenioffinonciol pos;tionwere reclossified

to conform
with the 2000 presentotionof occounts.
 F SSI
SOCIETY,INC.
FORA SUSTAINABLE
FOI]NIDATION
I103
Unil E #46 SomorAvenuscornerScoulAlbanoslr6et,Solth irionsle. Queon Cilv,PhilipPin"