The Challenges of Handicraft Industry of Malilipot Albay

A Research Paper to be submitted to our Instructor at San Jose Community

College, San Jose Malilipot Albay.

In Partial Fulfillment in the Requirements for our Research 1 Curriculum

By:

Raymundo Canada

Joan Bitancur

Enrique Cortezano Jr.

Mark Steven Kaalim

John Robert Cerillo

Egiemil Bidar

April 6, 2023
 CHAPTER 1

INTRODUCTION

Handicrafts have a traditional value that holds the indigenous ethnicity of a particular

region. The skills to produce those products have continued to flow from generation to

generation. Though in the modern world, the industrial product has taken over the market still it

has popularity.

They include a wide variety of products that are prepared either entirely by artisans or with the

help of specialized tools and machines. They can have different values, such as aesthetic,

creative, decorative, traditional, utilitarian, artistic, functional, cultural, social, and religious.

They play a vital role in the economic development of a country or state as handicrafts are a

prominent medium for foreign exchange revenue, require low capital investments, and offer

employment opportunities to local artisans. They also serve as a lucrative method of income for

numerous indigenous communities, homemakers, and women. Handicrafts are often

manufactured from recycled materials, plastic bottles, magazines, newspapers, old fabrics, and

cardboard boxes to reduce pollution and carbon footprint. They are also imported to various

countries for their unique designs and authenticity. Furthermore, as handicrafts are aesthetically

pleasing and valuable, their demand is increasing around the world.1

https://www.imarcgroup.com/handicrafts-market

Handicraft is the activity of creating decorative and functional items by hand. Craftspeople or

artisans are individuals who produce handicrafts. They use manual labor to create handicraft

products. There are numerous types of handicrafts in India that are categorized based on the type
of materials used, the kind of work performed to create the product, the purpose it (the product)

serves (i.e. accessories, décor, fashion, functional, etc.), and what people (E.g. tribal people) from

which state/region make the products. (Alekhya Sridhar) 2

In the Philippine setting though, almost every family in the Philippines owns one or more

handicraft products like baskets, brooms, feather dusters, bamboo sofa sets, cabinets, and other

furniture. Accessories like earrings, bracelets, necklaces, and other clothing apparel which young

people today are fond of wearing are also made from native products like beads, shells, seeds,

and others. This is a clear indication that our handicraft industry is enjoying the patronage of

Filipinos nationwide. Every region in the Philippines has its own unique handicraft product like

in

Malilipot, Albay is known for producing abaca hemp or locally known as lubid municipality is

known to be the region’s major producer. 3

This study aims to gain insights into the performance of the handicraft industry in

Malilipot, Albay, focusing on the String (Lubid) industry and how it conducts its business.

The industry has a very interesting feature with a contrasting context: on one hand, it is

traditional in nature, while on the other, it has a global reach.

The characteristics of this industry have catered to the needs of the local or

domestic market since then, but the Local Government Units of Malilipot are throwing

their support behind handicraft makers and encouraging them to expand the reach of this

industry by promoting it to the global market and by integrating the industry into the

tourism sector of Malilipot.

This characteristic is also one of the reasons why this study is being pursued and of great

interest. The String (Lubid) industry is well integrated to the global market for decades
now starting from the time where people of Malilipot remember, when most of the third

world countries like the Philippines were struggling to modernize their economy.

The handicraft industry has withstood the times also when the country has tried to

uplift its economic status through import substitution – a strategy of utilization of

indigenous technology. As most neighboring Asian nations have geared towards an

export-oriented strategy with success like for the countries of Singapore, Taiwan, South

Korea and also lately of China, the Philippines has also promoted such strategy but with

just marginal results. The Philippines is still confronted with a huge surplus of labor force

that is absorbed by the informal sector.

Statement of the Problem

This paper explores the struggles of Lubid Handicraft maker for the continuous

survival of the industry, and the successful integration of it to the global market. As any

modern industry contest all means to expand, protect its market and promote growth., the

Lubid Handicraft Industry is faced by both modern and traditional Challenges. The

modern challenge is marked by Hyper- competition where a form of alliances or

cooperation’s has

taken in place as a defense mode to keep strong and stay in the market.

The traditional challenges are exemplified by the kind of stereotype that the

industry is being faced. The Lubid Handicraft Industry still belongs to the informal sector.

The attributes of an informal sector stay in contrast to the formal sector especially when it

comes to quality, efficiency and optimization of the production functions. The Lubid

industry must eventually address both. It seems to be an impossible task to carry both

challenges as each side is hard enough to conquer. Considering the high degree of

resiliency to stay in the export market., the industry has managed to keep afloat for
decades now. It is a major interest in this study to look at the dynamics present in the

industry and in order to get a critical point of view on how the industry is performing.

Reference Question:

1. What is the demographic profile of the handicraft maker in terms of:

1.1 Age
1.2 Gender
1.3 Source of income
1.4 Nature of work
1.5 Years in the Industry
1.6 Monthly income

2. What is the significance of handicraft industry along with:

2.1 Economic Aspect

3. What are the challenges encountered in the handicraft industry:

3.1 Lack of Resources

has connections to the activity of the Twine (Lubid) handicraft industry in Malilipot Albay.

This information would serve as preliminary assessment of the activity of the industry.

Based on these assessments, a critical view would pave the way into the exploration of the

competence of the industry. Competence here is referred to the viability of the industry to

stand competition and to pursue its own goals for the market. From these initial findings,

we would like to attempt to answer or give hints on the question: Did the Twine/String

(Lubid) handicraft industry exhaust its means towards successful integration to the global

market?

Getting through in general about the perspective of the Twine (Lubid) handicraft

industry towards its integration into global market, we would hypothesize that the industry

with all the interventions and its survival it had in the past, it is still living up to its identity

of just being an informal sector and the treatment of the industry has always been based on

what is the industry all about and what is not, instead of shaping the industry on what it

can be.

Scope and Delimitations

Handicraft industry in the economic growth of Malilipot Albay. It is focused only in 18

barangays of Malilipot, and its residence who locally produce handicraft made of String

(Lubid). It is to explore the fate of the String (Lubid) Handicraft Industry under the context

of global market because the industry represents a potent example on how a traditional

industry is struggling to fight for its market share.

Related Literature

Creativity, Innovation, and Sustainability: Insights of Entrepinays in the Handicrafts Industry

Divina M. Edralin De La Salle University, Philippines and San Beda University,

Philippines [email protected]

Link: chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.dlsu.edu.ph/wpcontent/

uploads/2019/10/7edralin-et-al-041519.pdf

Sustainability and Originality Boost Philippines Handicraft Sector

Marilyn Balcita, Special Correspondent, Manila, 11 Dec 2019

Filipino handicrafts provide income and protect the forests

LEISA MAGAZINE 24.1 MARCH 2008

Links: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://edepot.wur.nl/56325
Philippine Handicraft Industry: Their Benefits and Importance

BETH ARCHNOV 11, 2019

Links:https://discover.hubpages.com/art/Philippine-Handicraft-IndustryTheir-Benefits-andImportance

Related Studies

Philippine Traditional Crafts in Discipline-Based Art Education: A New Prospect Carmita

Eliza J. Icasiano, November 2009

Insight Guides: Filipino Handicrafts cultural features

https://www.insightguides.com/destinations/asia-pacific/philippines/culturalfeatures/

filipinohandicrafts

CONCEPTUAL FRAMEWORK

String/Twine (Lubid)

String or Twine (Lubid) Handicraft Industry is a Handicraft that made of String

come from Abaca Fiber. Abaca under its scientific name musa textilis belongs to banana

family. The plant can be easily mistaken for edible banana plant because of striking

semblance to it. The abaca plant is cultivated mainly because of its fiber. Its fiber became

popular worldwide under the name “Manila Hemp” which was earlier primarily used as

cordage for the shipping industry. The abaca plant is endemic to the Philippines. It is

believed to have originated from the Bicol region. The plant thrives in the region due to its
volcanic soil and also due to its frequent rainfall activity. There were attempts of

cultivating the abaca plant in Sumatra Indonesia, India, Borneo, Central America and some

other countries at the peak of cordage industry in the 1920s but the activities were not

relevant to Philippine share of abaca in the global market. A Japanese in the person of

Furukawa successfully cultivated abaca in Ecuador at the time the World War II ended. At

present the Philippines covers more than 80 percent of worldwide abaca requirements¹.

Practically, the abaca fiber as raw material enjoys competitive advantage to the Philippines

due to high degree of exclusivity of its agricultural production and use.

The preliminary abaca plantation requires 2 to 4 years’ time to ripen but since

abaca grows shoots, the harvesting could take place within 4 to 8 months after the initial

crop. The trunk of the abaca plant is then harvested for fiber. The Abaca Fiber Extraction

Process is done through Hand-Stripping, Spindle Stripping and Decortications. The Hand-

Stripping

Method produces an output of 15 to 25 kg. of fiber per man-day compared to Spindle

Stripping which could produce fiber of 80 to 120 kg. per man-day. The grading of the

fibers is categorized into two: those grades under Hand-stripped and those under

Spindle-stripped. The fibers are either graded or classified as Normal (S2, S3, I, G, H, JK,

M1) and Residual (Y, OT) or Excellent (AD, EF, S2, S3) Good (I, G, H), Fair (JK, M1) and

Coarse (L) ².
Local Government of Malilipot Albay 7
7
Source: https://cmci.dti.gov.ph/lgu-profile.php?lgu=Malilipot
Handicraft

A handicraft, sometimes more precisely expressed as artisanal handicraft or

handmade, is any of a wide variety of types of work where useful and decorative objects

are made completely by hand or by using only simple tools. It is a traditional main sector,

of craft, and applies to a wide range of creative and design activities that are related to

making things with one's hands and skill, including work with textiles, moldable and rigid

materials, paper, plant fibers, etc.

Definition of Terms

Abaca Fiber – Abaca natural fiber comes from a species of inedible banana
native to the Philippines. It is sometimes called Manila Hemp or Musa

Rope (Lubid) – A rope is a group of yarns, plies, fibers, or strands that are

twisted or braided together into a larger and stronger form. Ropes have tensile strength and so

can be used for dragging and lifting.

Cottage Industry – a business or manufacturing activity carried on in a

person's home “weaving was an important cottage industry"

Informal Sector – The informal sector consists of "units"; engaged in the

production of goods and services with the primary objective of generating employment and

incomes to the persons concerned in order to earn a living.

production and exchange of goods and services.

Handicraft - a particular skill of making decorative objects by hand.

Industry - a branch of an economy that produces a closely-related set of raw materials, goods, or
services.

Integration - a strategy whose goal is to synchronize a business cultures and

objectives and align with business strategy and goals.

Global Market - The market in which goods and services of one country are traded (purchased

or sold) to people of other counties.

Global Market Integration - Market integration occurs when prices among

different locations or related goods follow similar patterns over a long

period of time. Groups of goods often move proportionally to each other

and when this relation is very clear among different markets it is said that

the markets are integrated.

The Informal Sector

The Bicol Fiber cottage industry shares a wide array of commonalities under the concept of
informal sector. There has been an extensive effort since early years in understanding the
dynamics of this sector.

Viewing the Bicol Fiber cottage industry based on that concept could help in dealing up

with its perceptions, fallacies and facts. The informal sector is also generally known as

nonstructured sector, transitional sector and petty production sector. ³

The activity of the informal sector is also partly referred to as Community Based Industry

(CBI). “CBI is a group of enterprises which have developed from traditional industries, and

depend on the local labor forces and raw materials in the local Market”.4

The informal sector is also identified by some scholars as the “Bazaar” economy. “The

traditional household industries are highly labor-intensive, subject to seasonal fluctuations in

activity, essentially loose and undynamic in their organization, and because of the dwarf scale on
5
which they operate, very difficult to capitalize effectively.” The bazaar economy provides

everyone in the sector some niche in the overall system through a set of inward elaboration of

details such as labor sharing and sub-contracting arrangements.

The informal sector can be viewed into two different perspectives. One is to consider how its

own constituents projects itself and on the other hand how the scholars, development institutions,

and government authorities understands the sector. The two perspectives need to be consistent

with each other in order to effectively address the challenges that lie in the informal sector. The

informal sector struggles with a lot of its stereotypes. Most of these stereotypes suggest strong

conventionality, inferiority and negative attribution. The informal sector must address a lot of

issues such as that: The informal sector operates outside the formal economy, utilizes lower level
of investment, demands less demanding skills and handles relatively simple products, that there

is no adequate physical structure such as the absence of physical premises, and that it is often the

case that the output of informal sector is of poor quality. The samples of issues above were

presumptions made by scholars and it tackles the realities present in the informal sector. It has

been around for decades and up to now it is still legitimate and yet the constituents have not

dared to address such weaknesses. It seems that the constituents of the informal sector react

passively in defining the future of their operation.

The primary cause of failure among small firms can be collectively attributed to management

weaknesses. Lack of management skills reduces the operating efficiency. It includes the lack of

accounting records and poor financial management practices. The virtually nonexistence of

business records disables the firm to assess the situation and to direct its future business

activities. Expenditures for production are often indistinguishable from household

expenditures.45 Another reason for bankruptcy was the attitude of the small entrepreneur himself

towards business and towards life in general.

³ Source: Office of the Special Coordinator and Least Developed Countries (Published Year unknown)
Informal Sector Development in Africa. (Leaflet) (United Nations, New York Department for Policy
Coordination and Sustainable Development) p.6

4
Satake, Masaaki People’s Economy: Philippine community-based industries and alternative
development (Manila, Phils. Solidaridad Publishing House and Kagawa, Japan: Literary Society,
Shikoku Gakuin University,2003) p.63
How the Informal Sector Does Business

It seems that the informal sector even lacks judgment on how they would carry and

improve their activity. The deficiency in basic and fundamental tool for assessment which is

information in written form cripples them to make a step further. The outright informality is

actually the way the informal sector does its business in a manner of not keeping records or

basically in a manner where paper and pen seems not to exist or irrelevant. There is a huge

disability with this kind of set-up.

Transformation is a prerogative. The people in the informal sector must learn and grasp

the importance of accumulating and preserving information that would help them better

understand and connect their past with the future. It does not need to have a sophisticated way of

documentation (The constituents possess functional literacy). For as long as they could write and

read and carry simple mathematics and articulate at least in their own dialect –in which case it

should be under their capacity, it would serve as a revolutionary effort in the industry that is

capable in creating a firm ground and a strong reinforcement for the future.

Low Productivity

The most common argument about the informal sector and to the extent of the cottage industry is

low productivity. Low productivity can be understood as the under capacity in transforming the

production inputs into optimum yields. As the informal sector is generally regarded as labor

intensive, it suggests a very low remuneration at the works done. That further translates to low

value added as the goods command very low commercial value. Effectively addressing the low

productivity in the informal sector needs comprehensive understanding of its nature of

alternatives.
Putting the case on peoples’ (informal sector workers are peasants) job or work prospect, they

could not get any better option other than their informal activity. Individuals are pushed into

informal sector activities for lack of alternative ways of earning a living.

“The low productivity of the informal sector is due primarily to the failure of the government to

establish conditions and reforms that can make the informal sector more productive by

improving its scale, such as more funds or investments for infrastructure, higher labor

productivity, and imports of capital goods.

“On formation of human capital, values and access to better technology: the government must

establish institutions that can help the households adopt the results of agricultural and industrial

research. The informal sector must be in a position to recognize the new technologies that they

need and adopt them for the specific conditions of their activities.

Poor dissemination of technology is partly due to failure by individual families to evaluate the

usefulness of the new technologies.” The government definitely has a level of responsibility

towards the sector and the remark above is pushing for policy reforms and a clamor for attention

but again the interaction only takes place outside. The passivity of the informal sector people is a

major disability.

The informal sector constituents must engage first in addressing the fundamental

challenges of low productivity and they must exert great effort in achieving growth.

“Increased productivity is a result of new and better production possibilities, realized from

advances in technology, increases in physical capital, accumulation of skills, and improvement in

economic organizations”6

5
Geertz, C. Peddlers and Princes: Social development and economic change in two
 Indonesian towns. (Chicago: University of Chicago Press, 1963) p.70

6
Llanto, Gilberto (Editor)Handbook on the Informal Sector (Manila, Philippines: Bishops

Businessmen’s Conference for Human Development and Department of Labor and Employment, 1998) p.21