Wednesday, August 10, 2011

Consuelo de bobo

“THE REHABILITATION and improvement of the old public market in this city to make it more competitive in the advent of big malls is on top of the list of the City Government’s 2012 Annual Investment Plan (AIP).
Mayor Oscar Rodriguez said during the three-day AIP deliberations meet in Baguio City last week, said (sic) department and unit heads submitted their respective proposals for 2012.
“The various departments of the city submitted their proposals, including the City Council. This includes budgetary requirements. Many of them have been concretized and we are looking at them kung kaya ng City Government. Isang halimbawa nito ay iyung rehabilitation at improvement ng old public market,” he told Sun.Star Pampanga in an exclusive interview.
"It can be recalled that the mayor has pushed for the renovation of the old public market to give small and medium entrepreneurs the opportunity to boost their businesses amid the opening of malls in the city proper.
"Rodriguez had then broached the idea of coming up with novel marketing strategies for vendors which they can capitalize on, like selling wares not found in malls and enhancing sectors like eateries and restaurants…”
There, clear as day, the proletarian Oca has not uprooted himself from his masa base and sold out to big business. The city has concrete plans to prop up the small traders and make them competitive with the malls.
That was my seminary brother Boiti Portugal reading from the July 14 issue of Sun Star Pampanga over his café Americano at Starbucks SM Clark.
Sounding more like cantankerous fishwives’ tales are those loud whispers from the old public market of millions of reasons and rationalizations for the establishment of yet another SM Mall in the capital city. So Boiti concluded.
Ah, you are so blinded by your admiration for Oca that you failed to see the joke in his press release.
That was the prolific columnist Ashley Manabat riposting after a sip of the coffee concoction named after him.
What joke, for Christ’s sake, Oca is talking serious economics here. So bristled Boiti.
Oca to make the old public market competitive with the SM Mall right in the downtown area. That is the joke. The BIIIIGGG JOKE! So Ashley chuckled.
It’s all about the economics of scale.
That was our seminary elder, green tea-guzzling Don Luisito butting in. Making me frantically google the term in my Sony Vaio notebook.
Yeah, here in Investopedia:
What Does Economies Of Scale Mean?
The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.
There are two types of economies of scale:
-External economies - the cost per unit depends on the size of the industry, not the firm.
-Internal economies - the cost per unit depends on size of the individual firm.
Investopedia explains Economies Of Scale
Economies of scale gives big companies access to a larger market by allowing them to operate with greater geographical reach. For the more traditional (small to medium) companies, however, size does have its limits. After a point, an increase in size (output) actually causes an increase in production costs. This is called "diseconomies of scale".

That’s gobbledygook economics, thank you. The economics of scale I refer to hews closer to Darwin’s law of natural selection, to the “survival of the fittest.” In this wise, the dominance of the big and the mighty over the small, the puny. The rule of the jungle, the kingship of the predator. So dismissed the Don
Yeah, the Brobdingnagian reigning and ruling over the Lilliputian.
That was me, my second cup of café espresso tripping my imagination to Gulliver’s travels.
Spare us of your classical pretentions. So snapped Don Luisito. The simplest analogy here is of the small fingerlings ending up in the belly of the big fish in the small pond. The big feeding on the small. That is the old public market vis-à-vis giant SM in downtown San Fernando.
So what’s all that press release of Oca all about?
Sweet lemoning. Sugar coating. Lip service. Clearly amounting to nothing. In plain terms, consuelo de bobo.
No, that was not me.



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