This study examined why traditional labor institutions change and remain resilient in two farming villages in the Philippines with the establishment of a special economic zone (SEZ) in the area. The study focused on the institution of hunusan in rice harvesting. Specifically, this paper aims to describe the importance and benefits of traditional labor institutions, identify possible factors for change and resiliency and illustrate some implications. This study utilized both qualitative and quantitative methods as data were gathered through surveys, key informant interviews and field observations. The establishment of a SEZ in the town of Mariveles resulted in the diversification of livelihoods and increased preference of laborers to work in construction and SEZ, which, in turn, resulted to the difficulty of finding farm laborers, changes in farming practices, preference to be paid in wages and changes in traditional labor institutions in the villages. This study argues that traditional institutions provide benefits and can be resilient by accommodate changes. This is contrary to the view that such institutions are automatically replaced by market-based exchanges with industrialization and modernization. This study suggests that the resiliency of traditional institutions depends on their ability to reduce the risks and provide returns to people and in their ability to adjust with the changing economic environment without changing its underlying norms.

Institutional Resiliency: Traditional Rural Labor Institutions and Rural Industrialization in Two Philippine Villages

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