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The Philippines Experiences of Development Report 5 - 1

The document discusses regional development in the Philippines. It provides 10 key lessons learned including that regions connected to the global economy grow faster, which can increase inequality. National growth depends on investments in infrastructure and human capital. Poor regions remain poor without national policy changes. The balance of power between central and local governments also remains a challenge. It then discusses regional development patterns, poverty, conflict, infrastructure challenges, center-region fiscal relations, and the impact of decentralization on local governance.

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Vitas Vitaly
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55 views

The Philippines Experiences of Development Report 5 - 1

The document discusses regional development in the Philippines. It provides 10 key lessons learned including that regions connected to the global economy grow faster, which can increase inequality. National growth depends on investments in infrastructure and human capital. Poor regions remain poor without national policy changes. The balance of power between central and local governments also remains a challenge. It then discusses regional development patterns, poverty, conflict, infrastructure challenges, center-region fiscal relations, and the impact of decentralization on local governance.

Uploaded by

Vitas Vitaly
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The Philippines experiences of

Development

4 1
The Philippines and Regional
Development

 What kind of decentralization policies are best to


promote regional development?

4 2
Ten Key Lessons and Observations

 1. Regions better connected to the global economy


grow more rapidly, and this process may result in
increased regional inequality.

 2. National growth and regional development depend


on investments in key public goods, physical
infrastructure, and human capital.

4 3
3. Poor regions stay poor without changes in national
policy

4. Program neither a success nor a failure

5. Program poorly executed despite good planning

6. Balance of central-local governments remains a


problem

4 4
 7. Government tiers lack coordination

 8. Governance quality varies among local


governments

 9. Program has had little effect on regional


disaffection

 10. Nation-wide policy agenda needed in addition to


addressing region-specific issues

4 5
4 6
The Philippine Case
 Challenging physical environment

 Unevenly distributed economic activity

 Uneven living standards

 Challenging center-region relations

 Lessons relevant to other decentralizing countries

4 7
4 8
The Issues

 Economic geography and regional development

 Reasons behind decentralization

 How to achieve decentralization

 Understanding regional differences

4 9
The Philippine Experience
 The Philippines has evolved into a nation state since
the highly decentralized Spanish colonial era, in which
the Catholic Church was as much a national institution
as the Manila government.

 The Philippines was one of the first countries in East


Asia, and indeed in the developing world, to embark
on a program of decentralization, in 1991.

4 10
Current regional structures
 The country is a unitary state, a presidential republic with a bi-
cameral legislature. The central government has approximately
20 departments and agencies. The country is divided into 17
regions.

 . As of 2005, there were 80 provinces, 114 cities, 1,496


municipalities and 41,945 barangays. In 1991, immediately prior
to decentralization, the relevant numbers were respectively 75,
60, 1,543, and 41,820.

4 11
Current regional structures
 Local Government Code (LGC) -provides a comprehensive
framework for centre-region relations.

 It specifies the transfer to local government units (LGUs) of a


wide range of functions and services, and divides
responsibility for their provision among the various local
tiers.
 70,000 staff from central government departments were to
be transferred to the LGUs,

4 12
Current regional structures
 Departments of Health (65% of the total) and
Agriculture (25%)

 programs considered to be “national” are retained by


the central government.
 political economy
(a) there are frequent turnovers of administrations;
(b) the bureaucracy is weak and much of it highly
politicized;
(c) major families heavily penetrate both the
administrative and political wings of government.
4 13
Regional development patterns
 Manila dominates the Philippine economy, generating a
little over one-third of the country’s GDP in recent years
 Luzon in aggregate contributes almost two-thirds of the
national economy and is by far the largest of the three
major island groupings.
 The shares of the Visayas and Mindanao have changed little
in recent years
 Its per capita income is about 2.75 times that of the national
average, more than double that of the next richest region,
and twelve times that of the poorest.

4 14
= poor regions- ARMM
*grew more slowly than the national average of
3.1%.

= richest region- NCR


*grew at about the same pace as the national
average

= the fastest growing region- CAR


*which was also second to Manila in terms of per
capita income in 2003.

4 15
4 16
Poverty and inequality

 The Philippines is a high-inequality country compared


to most of Asia.
 The inequality within regions, not between regions,
accounts for over 80% of the national variation in
household incomes.
 the Philippine regions did not experience any major
changes in asset or income inequality during the past
two decades.

4 17
 The comparatively high level of regional income and
asset inequality blunts the effect of the income
growth on poverty.

 Hence, the country’s unenviable record on poverty


reduction in recent years is due not only to its low per
capita GDP growth rate but also its weakness in
transforming income growth into poverty reduction.

4 18
4 19
Conflict
 Over 1986–2004, an estimated 91% of Philippine
provinces were affected by ideology-based armed
conflict.
 Since 1986, a democratic Philippines has found that
resolving the conflict has been just as elusive as it was
in authoritarian times.
 The pattern of sporadic negotiation interspersed with
conflict continued under the Aquino administration. In
1996, under the Ramos presidency the Jakarta Accord
between the Philippine Government and the MNLF was
successfully brokered with Indonesian cooperation and
the ARMM was established.
4 20
Population, labor, and migration
 There is clear movement of population from poorer
to richer regions. The younger and better educated
have a higher propensity to move.
 This brain drain to the major centers is further
reinforced by the spatial patterns of employment
creation in the wake of trade liberalization.
 Meanwhile, international out-migration is rising
rapidly.
 8 million Filipinos reside abroad

4 21
Infrastructure and integration
 Effective infrastructure provision requires competent
governance.
- many infrastructure projects require long gestation
periods and therefore have particular financing and
policy predictability requirements.
- a number of sectors have “natural monopoly”
characteristics
- there are major coordination issues

4 22
three inter-related problems remain.

 First, the country is underinvesting in infrastructure.


 Second, the overall regulatory framework lacks
cohesion, coordination between national agencies
and between the various tiers of government, and a
clear division of responsibilities.
 Third, national level decision-makers appear unable or
unwilling to deliver the long-term policy predictability
and guarantees that major private (and especially
foreign) providers require.

4 23
Regional dynamics
 The overwhelming beneficiaries of deconcentration
are just three regions:
 - the two Manila spillovers of Southern Luzon
 - Central Luzon
 - Cebu-centred Central Visayas

Export growth from these regions has been rapid.

4 24
Center-region relations
Looking at center-region fiscal and administrative
relations, the assignment of functions to the various
tiers of government has been broadly consistent with
public finance notions that power should rest with the
jurisdiction best able to internalize the benefits and
costs associated with providing these services.

The main exception is education which was retained by


the central government for political reasons.

4 25
There are serious misalignments of revenue
assignments and expenditure responsibilities between
the center and the regions and also among the regions.

 Three dimensions.
-First, there is a growing imbalance between the
revenue and expenditure responsibilities of LGUs
-Second, little has been done to downsize national
agencies and abolish their regional offices as their
functions have been transferred to local government
units (LGUs)
- Third, there are perverse incentives among the tiers of
local government.

4 26
Local institutions and governance
quality
 Decentralization in the Philippines has been in place
for over a decade, longer than anywhere else in East
Asia.
 bringing politics closer to the constituents should
make public administration
-transparent
-more responsive and quicker
-more cost-effective.

4 27
Thank you
kaayo poh;)
 “AYAW PAG STUDY UG AYO
PAG STUDY LANG UG TARONG”

4 28

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