One Town, One Product (Philippines)

One Town One Product (OTOP) is a promotional program of the government of the Philippines. OTOP aims to promote goods and products of Filipino towns, cities, and regions, and provides funding for small businesses. It is administered by the Department of Budget and Management (DBM).

Logo for the One Town One Product Program

History

The Philippines' OTOP program was proposed by then-President Gloria Macapagal-Arroyo as early as 2002[1] and launched in 2004. The OTOP program was originally scheduled to end in 2010. DBM dropped OTOP funding in spring 2011. However, current Filipino President Benigno 'Noynoy" Aquino has authorized the continuation of the OTOP program.[2]

OTOP Philippines is a priority stimulus program for Micro and Small and Medium-scale enterprises (MSMEs) as government’s customized intervention to drive inclusive local economic growth. The program enables localities and communities to determine, develop, support, and promote culturally-rooted products or services where they can be the best at or best renowned for.

OTOP Next Gen is DTI’s program to LEVEL UP these products and services. Building from the gains of OTOP first generation, this initiative aims to offer a package of public-private assistance in order for MSMEs with minimum viable products to come up with new or better offerings with significant improvement 4 and innovation in the areas of quality, product development, design, standards compliance, marketability, production capability, brand development, among others.

In keeping with DTI’s various thrusts and priorities, OTOP Next Gen shall also align support to DTI and PDP-identified priority industries. OTOP products shall still leverage on “Pride of Place” and cultural value while working in the backdrop of market-responsiveness OTOP products are identified based primarily on its (1) cultural value – heritage, local customs, living traditions, or a vintage recipe passed on from generations; (2) abundant resources or skills – available raw materials and a pool of skills readily deployable in the locality or proximate ones; (3) competitive advantage – a locality’s innate or endemic strength anchored on several variables like topography, climate, geographic location, among others. MSMEs who engage in business within the value chain of OTOP products (raw material suppliers, processing, distributor, retailer, but mostly the manufacturers, etc) are called OTOPreneurs.

Examples of OTOP Products

OTOP products vary, and can include fruits, specialty dishes, or handmade products. Examples of OTOP products include Arabica coffee in the Cordillera region,[3] cacao products in San Isidro in Davao del Norte,[4] and brooms in Santa Fe in Nueva Vizcaya.[5]

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See also

References
  1. "Town Hall Meeting for Gloria in LA". Philippine Daily Inquirer. Retrieved August 22, 2011.
  2. "http://www.abs-cbnnews.com/business/05/16/11/aquino-adopts-gma%E2%80%99s-otop-bid-spur-growth". Retrieved August 22, 2011. External link in |title= (help)
  3. "Agriculture agency allots P5M for Cordillera's OTOP". Retrieved August 22, 2011.
  4. "Davao Norte mayors back CoCoPal project". Retrieved August 22, 2011.
  5. "Nueva Vizcaya town moves to sustain broom making industry". Retrieved August 22, 2011.
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