Managing Urbanization Under a Decentralized Governance Framework (Volume 1) by Ronald Yacat

ManagingUrbanization Undera Decentralized Governance Framework

Volume1

ManagingUrbanization Undera Decentralized GovernanceFramework

Volume 1

Edited

by Rosario

G. Manasan

Raul S. Anlocotan Casimira V, Balandra Jazmin D. Berido Rosemarie O. Buan Carmel P, Chammag Clark Y. Clarete Aurora M. Joson Johnny T. Lira . Ma. Lourdes D. Lira Rosario G. Manasan Ruben G. Mercado Virginia S. Pineda Ross Q. Quisao Anicia C. Sayos Victor B. Ubaldo

Demographic Researchand Development Foundation, Inc.

pAs Philippine Institute for Development Studies

Copyright 2002 â&#x20AC;˘ by Demographic Research and Development Foundation (DRDF), Inc. c/o Population Institute, University of the Philippines 2/F Palma Hall, Diliman, Quezon City 1101 Philippines and Philippine Institute for Development Studies 4/F NEDA sa Makati Building 106 Amorsolo St., Legaspi Village 1229 Makati City Philippines

The findings, interpretations and conclusions in this volume are those of the authors and do not necessarily reflect those of DRDF and PIDS.

Please address all inquiries to:

PHILIPPINEINSTITUTE FOR DEVELOPMENTSTUDIES NEDA sa Makati Building 106 Amorsolo St., Legaspi Village 1229 Makati City Philippines Telephone: (63-2) 8924059, 8935705 Fax: (63-2) 8939589, 8161091 E-maih publications@pidsnet.pids.gov.ph Website: http://www.pids.gov.ph ISBN 971-564-047-8 RP 06-02-500

Table ofContents Foreword Part I

..........................................................................

ANALYSES

Chapter I Financing and Delivery of Urban Services in the Philippines: An Overview ............................................. by Rosario G. Manasan Urbanization vis-_t-visExpenditures and Revenues ..................... Revenues and Expenditure Structures of Cities .......................... The Urban Fiscal Problem ............................................................ Closing the Urban Fiscal Gap ....................................................... Issues for Further Research .......................................................... References ...................................................................................... Chapter 2 Metropolitan Arrangements in the Philippines: Passing Fancy or the Future Megatrend? ..................................... by Ruben G. Mercado and Rosario G. Manasan Context of Inquiry. ......................................................................... Purpose and Scope of Study. ......................................................... Demographic and Geographic Features of Current and Emerging Metropolitan Arrangements ......................... Genesis of Metropolitan Arrangements ....................................... Organization, Financing and Activities of Metropolitan Arrangements: Variations and Commonalities ................................................................... Policy Issues and Implications ...................................................... Sustaining and Enhancing the Metropolitan Arrangements ............................................................................ Alternative Metropolitan Structures ............................................. Conclusions and Agenda for National Policy Action .................. References ....................................................................................... Chapter 3 Environment and Natural Resources Management: Lessons from City Program Innovations .............................................

bynen

xix

5 7 11 24 30 31

34 38 39 40

45 52 58 61 68 72

Mer,ao

Selected City Environmental Programs ........................................ Lessons Learned: Key Elements for Program Success ................ V

76 97

Conclusion ...................................................................................... References .......................................................................................

102 103

Chapter 4 Health Management: Strategies from Selected Cities ............................................................................. by Virginia S. Pineda

105

Health Services Provided by Cities and DOH Under the Devolution ............................................

107

Comparison of Population, Health Expenditures and Health Performance of Selected Cities .......................... Health Concerns and Strategies ............................ . ...................... Strategies Related to Systems Administration ............................. Applicabili W and Suggested Improvements ................................ Conclusion ...................................................................................... References ......................................................................................

108 109 119 123 124 126

Chapter 5 Local Efforts in Housing Provision ............................... by Anicia C. Sayos, Ross Q. Quisao and Rosario G. Manasan Introduction ............................................... :................................... Objectives ............................................. ........................................... Urbanization and Housing Needs ................................................ Local Efforts in Housing Provision ............................................... Cost Recovery. ..................................................................... ............ Key Concerns .................................................................................. References ...................................................................................... Appendix ........................................................................................ PART II

127

127 128 129 131 140 146 149 150

CASE STUDIES

Chapter 1 Closing the Urban Fiscal Gap: An Overview ................. by Rosario G. Manasan Introduction ................................................................................... The Heart of the Problem ............................................................. Dissecting the Urban Fiscal Problem ........................................... The Unfortunate Consequence .................................................... Recommendations: Interventions to Close the Urban Fiscal Gap ................................................................ Reference ........................................................................................

155 155 155 157 158 158 161

Chapter 2 Metropolitan Arrangements in the Philippines: An Overview ........................................................... by Ruben G. Mercado and Rosario G. Manasan Metropolitan Arrangements vs. Decentralization ....................... Metropolitan Arrangements in the Philippines .......................... Activities That Metro Arrangements Do Best .............................. Policy Issues ..................................................................................... Sustaining Metropolitan Arrangements ....................................... Agenda for National Policy. ........................................................... Choosing the Appropriate Metro Structure ................................

163 163 164 164 165 166 167 168

C . mdie of_Metropo Owning the Metropolitan Vision: The Case of BLIST ...................... by Ruben G. Mercado and Carmel P. Chammag Development Trends in Metro BLIST.......................................... The BLIST Master (Structure) Plan ............................................. Potentials for Cooperation ............................................................ Managing Metro BLIST. ................................................................. Existing BLIST Structure ............................................................... Points for Consideration in Handling Metro BLIST ................... Conclusion ....................................................................................... References ....................................................................................... Setting an Institutional Framework for Metropolitan Management: Metro Cebu ................................................................... byRuben G. Mercado Composition and Management of Metro Cebu .......................... Metro Cebu Population and Land Characteristics ..................... Current Activities in Metro Cebu ................................................. Potentials for Cooperation ........................................................... Institutional Structure for Managing Metro Cebu ..................... Conclusion ..................................................................................... References ...................................................................................... Providing a Metropolitan Perspective to Development Planning: Cagayan de Oro .................................................................. by Ruben G. Merrado and Casimira V. Balandra Metro CDO Current Development and Prospects ...................... Approaches to Metro CDO Development ................................... vii

173

174 174 176 180 181 184 190 191

193

193 194 195 196 199 201 202

203

204 211

Metropolitan Concerns in the CDO Area .................................... Metro CDO Planning and Governance ........................................ LGU Preferences on the Sharing Pattern of Urban-Related Activities and Service Delivery. ...................... Conclusion ....................................................................................... References ....................................................................................... Metro Naga: A Continuing Challenge of Local Autonomy and Sustainability ............................................................... by Ruben G. Mercado and V/ctor B. Uba/do Management of the Metropolis .................................................... Demographic andLand Characteristics ....................................... Historical Antecedents/The Metro Naga Development Program (MNDP) ..................................................................... Programs/Accomplishments ......................................................... Future Plans .................................................................................... Key Features of Success .................................................................. Furore Challenges .......................................................................... References ......................................................................................

214 215 216 219 220

221

221 222 223 226 231 232 233 234

Melro Iloilo: A Struggle for Acceptance and Organization .............. by Ruben G. Men:ado and Rau/S. An/ocotan

235

Demographic and Land Characteristics ............................ i......... Identified Areas for Cooperation ................................................. Possible Next Steps ............. ,.......................................................... Conclusion ...................................................................................... References ......................................................................................

237 238 244 245 245

Metro Davao: In Search of Metropolitan Def'mitions ....................... by Ruben G. Mercado

247

The Three Definitional Models of Metro Davao ......................... Conclusion ...................................................................................... References .......................................................................................

248 253 254

Governance and Urban Development: Case Study of Metro Manila ..................................................................................... by Ruben G. Mercado

255

Introduction .................................................................................... 255 Metropolitan Governace ................................................................ 263 Major Metropolitan Governance Challenges ....................... ........ 281 ell

VIII

Future Challenges and Directions ................................................ References .......................................................................................

293 295

Chapter 3 Health Management Strategies of Selected Cities .......... by Virginia S. Pineda Pros and Cons ................................................................................. Passing the Buck to Local Governments ...................................... Eight Who Made the Grade ........................................................... Coping with Insufficient Health Stations ..................................... When Health Workers Are Scarce ................................................. Meeting Medical Emergencies ...................................................... Augmenting Finances .................................................................... Identifying Health Needs: Knowing the Problems Gets You Half the Way There ................................................. Integrated Approach: The Sum Is Greater Than Its Parts .......... Clustering of Barangays: A New Meaning for Hamletting .......... Planning, Monitoring and Evaluation: Don't Expect WhatYou Don't Inspect .................................. The Best and the Worst: Appealing to the Filipino Ego ............. More Improvements in the Current Setup .................................. Health in the Hands of the People: In Conclusion .....................

299 299 300 300 301 302 304 305 306 307 307 307 308 309 310

C_e Studies_of Health Management Strate_es Reaching Out: Gingoog City's Total Integrated Development Approach (G-TIDA) ...................................................... by Virginia S. Pineda and Clark Y. Clarete Health Facilities and Expenditure/Budget ................................. Health Performance ........ ;............................................................. The G-TIDA Approach .................................................................. Key Elements for Success .............................................................. Areas for Improvement ................................................................. Applicability and Replication ........................................................ Conclusion ...................................................................................... References ...................................................................................... Puerto Princesa City's Satellite Clinics: A Curative Rural Network ....................................................................

315

315 316 316 322 323 324 325 326

327

byvirginias. Pinega Health Facilities and Expenditure/Budget ................................. Health Performance ...................................................................... The Satellite Clinic Projects .......................................................... ix

327 328 329

Impact of the Project ............................................. ........................ 331 Key Elements for Success ............................................................. : 332 Strategies That Can Be Replicated ............................................... 332 Other Recommendations .............................................................. 334 Conclusion ..................................................................................... 335 Emergency Rescue Naga: An LGU-Managed Emergency Rescue Project ....................................................................................... by Virginia S. Pineda and Rosemarie O. Buan Health Facilities, Welfare and Expenditures ................................ Emergency Rescue Naga (ERN) ............................ :...................... ERN Structure, Functions and Responsibilities ............................ Key Elements for Success ............................................................... Applicability and Replication ......................................................... Conclusion ......................................................................................

337

337 338 339 342 343 345

People Power at Work: The Case of Surigao City's Primary Health Care (PHC) Federated Women's Club ................................... by Virginia S. Pineda and Johnny T. Lira

347

Health Facilities and Expenditures ............................................... Health Performance ....................................................................... The PHC-City Government Partnership ...................................... PHC Health Activities ..................................................................... PHC Health Initiatives .................................................................... Key Elements for PHC Success ...................................................... How to Replicate ............................................................................. Conclusion ...................................................................................... References .......................................................................................

347 348 349 351 353 354 359 361 362

Financing and Delivery of Health and Sanitation Services: A Case Study of Cotabato City............................................................. by Virginia S. Pineda and Ma. Lourdes D. Lira Vital Facts and Figures .................................................................... Problems/Constraints to Effective Health Service Delivery. ...... The Special Project on Health and Sanitation ............................ Key Contributors to the Project's Success .................................... Strategies That Can Be Replicated by Other Cities ..................... Conclusion ......................................................................................

363

363 364 366 372 374 376

Lapu-lapu City's Partnership for Health ............................................

377

by VirgniaS. Pineda Health Facilities .............................................................................. Health Expenditures/Budget ....................................................... Health Performance ...................................................................... Strategies to Promote Health ........................................................ Key Elements for Success .............................................................. Strategies That Can Be Replicated ............................................... Conclusion ...................................................................................... Olongapo: A Health City ...................................................................... by Virginia S. Pineda and Aurora M.Joson

377 377 378 379 382 383 384 387

Health Facilities and Expenditure/Budget ................................. Health Performance .......................................................................

387 388

Strategies to Promote Health ........................................................ Key Elements for Success ............................................................... Strategies That Can Be Replicated ............................................... Conclusion ......................................................................................

388 391 391 392

Butuan City: A Consistent Regional W_nner in Nutrition ................. by Virginia S. Pineda anJazmin D. Berido Health Facilities and Expenditure/Budget ................................. Health Performance ...................................................................... Nutrition Activities ......................................................................... Strategies to Overcome Malnutrition ........................................... Key Elements for Success ............................................................... Strategies That Can Be Replicated ............................................... Conclusion ......................................................................................

About the Authors ..............................................................................

393

393 394 395 397 399 401 402

403

ListofFigures PART I Chapter 1 Figure I Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7

Share of CLGUs in Total General Government Revenue ............................................................................. Share of Externally Sourced Income in Total Receipts of LGUs .................................................... Revenue Performance of CLGUs ................................... Share of CLGUs in Total General Expenditure ............ Importance of CLGUs in Total Expenditure, Total Population and Total Land Area ........................... Growth Rate of Real Per Capita Expenditure and Real Capita Local Source Revenue ......................... Distribution of CLGU Expenditures by Service Category. ..............................................................

7 8 8 9 10 10 11

Chapter 2 Figure 1 Figure 2 Figure 3

City, Non-city and Total Metropolitan Land Area ......... Comparative Structure of Local Government System With and Without a Metropolitan Body. ........... Metropolitan Governance Framework ...........................

Structure of the Clean Effort ............................... :........... Structure of the Green Effort .......................................... Eco-Walk Program Essentials ...........................................

85 86 87

56 59

Chapter 3 Figure 1 Figure 2 Figure 3 Chapter 5 Figure 1

Organizational Chart of the Lote Para sa Mahirap Program ..............................................................

xii

145

PART lI Case Studies of Melropolitan Arrangements BLIST Figure 1

Proposed Organization for Metro BLIST Under the Structure Plan ....................... ......................... 182 BLIST Area Task Force Under the NWLGQ. ................. 185

Figure 2 Metro Manila Figure 1 Figure 2

Major Road Network of Metro Manila ........................... 262 Organizational Structure: Metropolitan Manila Development Authority .................................................. 278

Case Studies of Health Management Su'atet_ies Emergency Rescue Naga Figure ]

Organizational Structure of the Emergency Rescue Naga ......................................................................

340

Surigao City's PHC Federated Women's Club Figure ]

The Community Dam Board .......................................

....356

ListofTables PARTI Chapter 1 Table ] Table 2 Table 3 Table 4 Table 5

Linear Regression of Per Capita Tax Revenue of CLGUs ............................................................................. Ratio of Revenue to Expenditure from LGU Business Enterprises, 1991-1995 ...................................................... Ratio of Revenue to Expenditure from LGU Business Enterprises of Selected CLGUs, 1995 ..................... ;..._.... Total Cost Recovery of Hospitals, 1995 ............................ Linear Regression of Per Capita Expenditure of CLGUs ............................................................................ t0*

xnl

14 17 18 19 23

Chapter 2 Table 1 Urbanization in Selected Asian Countries, 1990 ............... Table 2 Metropolitan Arrangements: Composition, Land Area and Population .................................................................... Table g Metropolitan Composition, Geographic and Demographic Characteristics, by Metropolitan Arrangement ........................................................ _............... Table 4 Organizational Types and Financing of Metropolitan Arrangements ..... _................................................................ Table 5 Development Activities Under the Metropolitan Arrangements ........................................... :.......................... Table 6 Past and Future Traffic Demand in Metro Cebu, 1979-2010 .............................................................................. Table 7 Urban BLIST: Water Demand, 1994-2020 .......................... Table 8 CAMADA: Landfill Site Requirements ...............................

33 39

42 46 48 50 51 51

Chapter 3 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6

Basic Features ofOplan Linis Program .............................. General Information on Bantay Puerto Program Components .......................................................................... Baguio City Clean and Green Program Components ....... Clean and Green Program Budget and Sources, 1996..._. Olongapo City Solid Waste Management Program, 1989-present .......................................................................... Environmental Sanitation and Management Office Income and Expenditure, 1990-1996 (in thousands of pesos) ........................................................

77 79 82 85 89

Chapter 4 Table Table Table Table Table Table Table Table Table Table

1 2 3 4 5 6

Population of Selected Cities .............................................. 108 Population Density and Land Area of Selected Cities ...... 110 Infant Mortality Rates ........................................................... 110 Child Mortality Rates ............................................................ 110 Maternal Mortality Rates ...................................................... 111 Health Expenditures and Ratio to Total City Expenditures ......................................................................... 111 7 Rado of Basic Health and Hospital Expenditures to Total Health Expenditures .............................................. 111 8 Health Expenditures Per Capita, 1991 and 1994 .............. 112 9 Basic Health Expenditures Per Capita, 1991 and 1994 .... 112 10 Hospital Expenditures Per Capita, 1991 and 1994 ........... 112 xlv

Chapter 5 Tablc._"'Stat_ of Urbanization ......................................................... Table 2 Income of Local Government Units .................................. Table 3 Participants and Their Respective Roles in the Kaantabay sa Kauswagan Program ...................................... Appendix Table 1 Cities' State of Urbanization ...............................................

131 139 143 150

PART II Case_Studies of Metmp_olitanArrangements Metro BLIST Table Table Table Table

1 2 3 4

Metro BLIST: Demographic and Land Characteristics .....174 Metro BLIST: Land Use (in percent) ................................. 175 Metro BLIST: Water Demand, 1994-2020 .......................... 177 Expected Benefits From and Share in the BLIST Cooperation .......................................................................... 187

Metro Cebu Table Table Table Table

1 2 3 4

Table 5

Metro Cebu: Demographic Characteristics ........................ Urbanization Projections for Metro Cebu ......................... QuantityofSolidWaste in Cebu City.................................. Past and Future Traffic Demand in Metro Cebu, 1979-2010 ............................................................................... Water Balance in Metro Cebu (in cu.m/day) ....................

195 195 197 198 199

Metro Cagayan de Oro Table 1 Table 2 Table 3

Metro Cagayan de Oro: Demographic Characteristics ..... 205 Existing Land Uses ............................................................... 207 Passenger and CargoTraffic at the CDO-PMO and Airport ........................................................................... .207 Table 4 Types of Business Establishments ....................................... .208 Table 5 Telephone Situation in Metro Cagayan de Oro .......... ...... 212 Table 6 Water Supply Facilities, 1996 ............................................... 216

Metro Naga Table 1 Metro Naga: Demographic XV

and Land Characteristics ...... 223

Table 2 Table 3

Area-Specific Roles in Metro Naga ........ ...................... :..._i. 2_i-i Financial Sources of the MNDC .............. :..,_z...._x: .......... 226

Metro lloilo Table 1 Metro Iloilo: Population

and Land Characteristics

.......... 237

Metro Davao Table 1 Table 2 Table 3 Table 4 Table 5

Davao City: Basic Demographic and Land Characteristics ...................................................................... General Land Use, 1994 ..................................................... Population Distribution, Land Area and Density, 1990... General Information on Davao City, Sta. Cruz and Panabo ........................................................................... General Information on Davao Integrated Development Program ........................................................

248 249 249 250 253

Metro Manila Table Table Table Table Table

Table Table Table Table Table Table Table Table Table

1 Demographic Facts About Metro Manila ........................... 257 2 Gross Domestic Production Structure ............................... 258 3 Regional GDP Per Capita .................................................... 260 4 Poverty Incidence of Families, by Region and Urbanity, 1985-1997 ...................................................... 261 5 Comparative Overview of Metro Manila Commission (PD 824), Metro Manila Authority (EO 392) and Metro Manila Development Authority (RA 7924) ...................................................................... . ....... 265 6 Comparative Revenue Structure of Metropolitan Organization .......................................................................... 268 7 Expenditure Pattern of Metropolitan Body. ...................... 274 8 Total General Government Expenditures in Metro Manila, 1989-1997 ..................................................... 276 9 Traffic Volume on Major Roads, 1980 and 1995 (vehicles/day) ................. ,.................................................... 283 10 Number of Registered Vehicles in Metro Manila, 1980, 1990 and 1995 ............................................................ 283 11 Car Ownership Structure, 1980 and 1996 ......................... 284 12 Public Transportation Supply, Estimated No. of Operating Units, 1983 and 1996 .................................... 285 13 Transport and Traffic Management in Metro Manila ....... 286 14 Land Use Classification in Metro Manila ........................... 290 xvi

.Case Studies._of_Health ManagemenLS1rategies Gingoog City's Total Integrated Development Table 1

Mortality and Nutdfion

Indicators,

Approach (G-TIDA) 1990 and 1995 .......... 317

Puerto Princesa City's Satellite Clinics Table 1 Table 2 Table 3 Table 4

Budget for the CHO and Satellite Clinics, 1995-1997 (P million) .......................................................... 328 Mortality and Nutrition Indicators, 1990 and 1995 .......... 329 Satellite Clinics and Catchment Areas ............................... .330 Satellite Clinics' Services and Number of Patients ........... 2,31

Emergency Rescue Naga Table 1

Mortality and Nutrition

Indicators,

1990 and 1995 .......... 339

Surigao City's PHC Federated Women's Club Table 1

Mortality and Nmrition

Indicators,

1990 and 1995 .......... 348

lVmancing and Delivery of Health and Sanitation Services in Cotabato City Table 1

Comparative

Mortality Rates, 1990 and 1995 .................... 372

Lapu-lapu City's Partnership Table 1 Table 2 Olongapo: Table 1

for Health

Catchment Areas of Hospitals and Barangay Health Stations in I_apu-lapu City. ..................................... =.378 Mortality and Nutrition Indicators, 1990 and 199.5......... 1380 A Health City Mortality and Nutrition Indicators,

Butuan City: A Consistent Regional Outstanding in Nutrition Table 1 Table 2 Table 3

1990 and 1995 .......... 389 Winner

M0rtalityand Nutrition Indicators, 1990 and 1995 .......... 394 Composition of the Butuan City Nutrition Committee....395 Malnutrition in Butuan City and in the Philippines ......... 397 xvii

Foreword

ing of the Local Government Code in 1991. This single Act of ne of the landmark legislations in Philippine history the passgranting more autonomy and responsibilities to our islocal government units has had tremendous impacts on the way governance takes place at the local level. Perhaps the most significant has been in the challenge that the Code had incited among local officials and citizens in coming up with innovative ways to address issues and shortcomings in their respective spheres. Of course, the Code--and the accompanying decentralization process as a whole--is not without problems, to say the least. The decentralization process was rendered even more complicated by the rapidly growing urbanization phenomenon that has taken place in the past few decades and which has impinged heavily on the fiscal condition of the various localities. This first volume of a 2-volume publication documents these phenomena-urbanization taking place against the framework of a decentralized environment for governance. The overall picture is a bit bleak and shows the urgency of resolving the fiscal situation first and foremost. But the accompanying snapshots to the bigger picture are encouraging. They show that in coping with such situation, the innovativeness and determination to succeed of a number of local communities shine through. This book is about them. In coming up with this volume, therefore, I sincerely hope that the winning case illustrations will serve as an inspiration to more local government units and communities to put their acts together and aspire to be among the best in their endeavors. Finally, I wish to thank the Demographic Research and Development Foundation (DRDF) through its director, Dr. Corazon P. Raymundo, for its support of the research project as well as of this two-volume publication. The writing of the case studies for this volume would also not have been possible without the assistance provided by the following individuals and offices in the regions: Ms. Madelyn Escandor of NEDA Region VII (Central Visayas); the Primary Health Care and Barangay Environmental and Sanitation Implementation Group (BESIG) members of Surigao City; the staff of NEDA Region IV (Southern Tagalog) and Puerto Princesa City Planning and Development Office and satelxix

lite clinic; the staff of the Olongapo City Health Office; Dr. Victor Borja and the Emergency Rescue Naga/Naga City Hospital staff; the Macro Division of NEDA Region V (Bicol Region); Dr. Berame, health officer• • of Lapu-lapu City; and the Cotabato City Office of Health Services.

MARIO B_LAMBERTE, Ph. D. President, PIDS

Part I. Analyses

Chapter

Fin'lancing and Deliveryof Urban Services in the Philippines: An Overview Rosario G. Manasan rbanization has certain advantages. Agglomeration economies esult inhigher productivity than in the rest of the economy. urbanization proceeds, cities are better able to capture the benefits from economies of scale, which may bring about reductions in unit cost of delivering certain types of services. Scale economies are more likely in public utilities such as sewerage treatment plants, public transportation, and the like. Urbanization also induces increases in the taxable capacity of cities such that more revenues can be mobilized from the same jurisdiction. However, urbanization also tends to be associated with a good number of problems. Congestion, which tends to increase with city size, leads to agglomeration diseconomies that may offset the positive effects of technological economies of scale on input costs. These diseconomies may take the form of air and water pollution, increased need for disease control and fire/police protection, and slum settlements. Moreover, one observes that basic services such as potable water supply, solid waste collection, telephones, health and education facilities are critically inadequate in many large cides. Worldwide, there have been two types of responses to these problems. One way is to impose controls on rural-urban migration and rapid population growth. The other way is to find efficient ways to manage and finance the urban sector. This paper takes the accomodationist view and focuses on the question of how to finance and deliver adequate public services in urban areas. This question then becomes, in large part, a fiscal question. However, it cannot be denied that improvements in resource allocation and in service delivery mechanisms/arrangements at the local government level are also extremely important.

Managing UrbanizationUnder a DecentralizedGovernance Framework

The immediate cause of the shortage and, sometimes near absence, of basic public services in large cities is the inability of governments to fund the delivery of the right quantity and quality of these services. At the national level, central governments may be so preoccupied with stabilization issues and the need to deal with the problem of large central government fiscal deficits to have enough time and resources to address unmet needs in the urban sector. Moreover, central governments may not be in the best position to levy and/or collect taxes and user charges that are suitable at mobilizing public resources from the growth in urban fiscal capacity. At the local level, the growth of local government revenues may be dampened by centrally imposed constraints on their revenue-raising powers, and limited by low revenue effort and inappropriate intergovernmental fiscal relations. How can cities and other urban areas capture the fiscal benefits of urbanization so that they can then increase supply of public services in their respective jurisdiction? For this to happen, cities should be empowered to levy and collect taxes and fees that can better exploit thei r gains from urbanization. There should be no disincentives arising from the grant system against improvements of local government revenue effort. Also, there should be appropriate credit institutions and mechanisms that will enable subnational governments to finance investments of a relatively large scale. In the conduct of any study on urban management, one is always confronted with the difficulties of delineating which are "urban areas." This study tried to resolve this issue by defining its coverage to include all cities plus non-city regional growth centers? This decision was borne more out of convenience than out of rigorous analysis. Admittedly, some cities will not qualify as "urban" under most definitions. However, this option is a a convenient way of categorizing most urban areas without getting bogged down by the definition problem. Also, the focus on city local government units (CLGUs) is motivated by a desire to study urbanization in the context of the more decentralized governance framework that is engendered with the passage of the Local Government Code (LGC) of 1991. Note that the fiscal gap (the di_rence between expenditure requirements/needs and revenues) of urban LGUs tend to be magnified by the recent devolution of fianctions from national government agencies. 1The municipal regional g_ovcth centers included in this study ate Santiago in Isabela, San Feriaando in La Un_-on, _ad S',m P'e_nando in Pampanga,

Financingand Deliveryof Urban Services

In the next section, the conceptual framework that defines the urban fiscal gap problem is presented. Meanwhile, the section "Revenue Structure of Cities" presents an overview of the expenditure and revenue structure of CLGUs in the Philippines. It provides some overall perspective on the size of the urban sector. The section "The Urban Fiscal Problem" looks at the determinants of CLGU revenue performance and expenditure behavior in an attempt to validate the existence of the urban fiscal gap in the Philippines while "Closing the Urban Fiscal Gap" presents some ways to close the said gap. Urbanization vi_-vis Expenditures and Revenues 2 Local government units (LGUs) in urban areas typically tace a financing problem. The problem may be defined by the existence of a "fiscal gap," a gap between perceived service needs and available financial resources. It should be notedthat the fiscal gap is different from the actual fiscal deficit that reflects the shortfall of actual revenue collections relative to actual LGU expenditure. This distinction is very important in the Philippine context where LGUs are not allowed to engage in deficit financing of recurrent expenditures. To gain some understanding of how urbanization impacts on the fiscal gap, it helps to look at how urbanization and population growth affect the expenditure requirements as well as the revenue collections of urban LGUs. On the one hand, the growth in the demand for public services is most often driven by the growth in population. The growth in population may arise from its natural growth and from migration. Some would argue that LGU expenditures have to increase at a rate that is at least proportional to the rate of population growth so as to sustain a given level of service. In cases where service provision entails increasing marginal cost, the response of expenditure needs to population growth is even more pronounced. This may be relevant, for instance, when rapid rural-urban migration tends to lead migrants to settle in hard-to-service (and, therefore, cosily-to-service) areas like shorelines, mountainsides and floodplains. The strong and positive correlation between urbanization and per capita personal income in developing countries is well documented. At the same time, higher per capita income tends to be associated with higher per capita demand for public services (which implies that most types of public services are normal goods). The

2This section draws heavily from the work of Bahl and Lima (1992).

ManagingUrbanizationUnder a DecentralizedGovernanceFramework

increment in service requirements would be larger as the income elasticity of demand for public services goes up. Positive income elasticities have been observed for water/power supply, telephone services, and for solid waste disposal and also urban highway infrastructure (because the demand for motor vehicles is highly income-elastic). Similarly, the demands for educational services and health care are positively linked with rising incomes. While it is clear that urbanization exerts an upward pressure on local government budgets, it is unclear ifLGU revenues will respond as quickly and as strongly to rapid population growth. Undoubtedly, population growth, urbanization and the associated growth in per capita income all tend to expand the revenue capacity of urban governments. However, the growth in LGU revenue is held back by the fimited taxing authority of LGUs and their lagging revenue efforts. For instance, while property values tend to rise with urbanization, this is not immediately reflected in the statutory tax base unless assessment values are automatically indexed. Also, inflation is usually higher in larger cities. However, government expenditures are more automatically responsive to inflation than government revenues. Inflation will drive up government spending requirements almost instantaneously because of a hike inthe cost of materials and supplies and of the pressure to" increase government employees' salaries following the associated escalation in the cost of living. The LGU revenues are not as responsive to inflation. This is because in many places, there is no automatic indexation of the assessed values of real property for real property tax purposes. Moreover, many local taxes are imposed on a specific rather than on an ad valorem basis. The evidence on the relation between city size and cost recovery is mixed. On the one hand, some large cities (especially those which operate public business enterprises) are able to fully recover the cost of service delivery and they may sometimes even generate a surplus. Some countries like South Korea and Colombia impose betterment levies (or special assessment) in order to charge alt_cted landowners for the benefits they get from certain improvements in infrastructure. On the other hand, it may be difficult to genei_tte enough revenue from user charges to cover full costs from services like transportation, housing, health and education, which have a large social component. Lastly, the relationship between intergovernmental grants and urbanization can either be inverse or direct. "If grants are distributed on a straight per capita basis then urbanization may generate an

Financingand Deliveryof Urban Services

increased inflow of"external resources. The same will hold if grants are made on a cost reimbursement basis. External resource flows may increase or decrease in responseto increases in per capita personal income in the city depending on the structure of the grant system. A tax-sharing scheme will channel more funds to local governments as urbanization proceeds, whereas formula-equalizing grants may have just the opposite effect" (Bahl and Linn 1992). Revenue

and Expenditure

Structures

of Cities

Revenue structure All LGUs, in the aggregate, accounted for 4.9 percent of total general government revenue in 1985-1991 and 5.7 percent in 19921996 (Figure 1). Thus, the degree of fiscal decentralization when measured in terms of revenue decentralization has not been altered significantly by the passage of the LGC. In comparison, the share of CLGUs in the country's total general government revenue rose significantly from 2.1 percent in 1985-1991 to 2.9 percent in 1992-1996. In a sense, the increment in the share of all LGUs in total general government revenues is due solely to the increase in the share of CLGUs. Moreover, CLGUs' share in the total local source revenue of all subnational governments has expanded from 43.0 percent to 50.2 percent during the period under study. Nonetheless, there appears to be a trend toward increasing reliance on external sources of finance among CLGUs. The contribution of externally Sourced income to the total receipts of CLGUs was magnified, reaching 52.0 percent in 1992-1996 from 38.6 Figure 1. Share of CLGUs in Total General Government Revenue ALL LGUs 4.9%

1985;_1991

CLGUs 2.1%

ALL LGUs 5.7%

1992-1996

CLGUs 2.9%

Managing Urbanization Under a DecentralizedGovernance Framework

Figure 2. Share of Externally Sourced Income in Total Receipts of LGUs externally sourced income 38.6%

externally sourced income 52%

1985-1991

1992-1996

ALL LGUs externally Sourced

externally sourced

64,7%

62%

1985-I 991

I gg2-1996

Figure 3. Revenue Performance of CLGUs TOTA,,oc._ sou_l. P_ GNP

0.25................................. 0.2

0.16 _

0,1

0 I

1935-1991

1992-1996

1985-1991

1992.1996

percent in 1985-1991. However, CLGUs continue to be less reliant on external sources of finance relative to the average LGU, where the share of externally sourced income to total receipts rose from 52.0 percent to 64.7 percent (Figure 2). Despite these developments, the overall revenue performance of CLGUs was noteworthy during the period under study. Total local source revenue rose from 0.34 percent of gross national product (GNP) in 1985-1991 to 0.55 percent of GNP in 1992-1996 (Figure 3). Thus, per capita local source revenue of CLGUs grew at a decent pace of 11.4 percent in 1991-1996 compared with the 8.9 percent

Financingand Delivery of Urban Services

growth of local source revenues of the average LGU during the same period and the 2.4 percent growth in CLGU local source revenue in 1985-1991. The biggest increase was posted by local business taxes, which doubled from 0.11 percent of GNP to 0.22 percent of GNE This was followed by real property taxes, which increased from 0.14 percent of GNP to 0.21 percent of GNE However, operating income of CLGUs remained steady at about 0.1 percent of GNE Consequently, the local business tax came to dominate the real property tax after the implementation of the LGC. F__enditure structure In the Philippines, the LGUs as a whole contributed 7.0 percent of total general government expenditure in 1985-1991 and 14.0 percent in 1992-1996 (Figure 4). This implies that the degree of fiscal decentralization, when measured in terms of expenditure decentralization, has doubled in the post-LGC era. The latter figure is roughly equal to the 15 percent share of subnational governments in general government expenditure in a sample of less developed countries (Bahl and Nath 1986). Figure 4. Share of CLGUs in Total General Expenditure ALl. LGU N.I. _

7,0

19_5-1SSl

3.5 CLGU

CLGU 14,01

7.4

lSg2-1_6

In like manner, the share of CLGUs in total general government expenditures in the country doubled from 3.5 percent in 1985-1991 to 7.4 percent in 1992-1996 (Figure 4). Thus, CLGUs' share in the total expenditure of all subnational governments has remained fairly stable at approximately 50 percent throughout the period under study even as their jurisdictions include 25.5 percent of total population and 6.0 percent of total land area (Figure 5).

12 Managing UrbanizationUnder a DecentralizedGovernanceFramework growth and/or urbanization, the urban fiscal gap still exists (find is manifested in reduced levels of public service delivery). This may have arisen because other sources of CLGU finance (which account for some 75 percent of total CLGU receipts) do not exhibit a similar relationship with either population growth or degree of urbanization. It is also worrisome that the present IRA distribution formula tends to have a disincentive effect on local business tax effort. Also, CLGUs have an apparent disregard for cost recovery practices. Ironically, the experience elsewhere in the world suggests that this is in fact one area where urban governments are better able to generate additional revenue as urbanization proceeds. On the expenditure side, we found that relative gainers in the devolution process allocated higher IRA at the margin on education and economic services but not on health services. This implies that the provision of health services is not a priority sector for most CLGUs. Determinants of revenue performance of CLGUs This study assessed the determinants of CLGUs revenue performance in 1991-1995. The LGUs' revcnuc performance was measured in terms of per capita total LGU income and two components of per capita locally generated revenues: per capita local business tax revenue (PCLBT) and per capita real property tax revenue (PCRPT). Per capita LGU revenue is then regressed against the variables listed below for each of the years 1991, 1993, 1994 and 1995. 1. Per capita personal income (PCPY) is used as a proxy for the taxable base of the CLGU. 2.

Per capita IRA (PCIRA) is included as one of the major determinants of CLGU tax effort to assess whether central government transfers to CLGUs suhstitute for locally generated taxes. On the one hand, there is concern among some policy analysts that intergovernmental grants may provide a disincentive to local resource mobilization efforts. On the other hand, others argue that central government transfers may stimulate LGUs to increase local revenue generation because such grants allow LGUs to breach the threshold income associated with the provision of more and higher quafity services, in this case, higher allotments from the central government may encourage LGUs to generate

Financingand Delivery of Urban Services more revenues locally to complement the center. 3.

] 3 what they receive from

Degree of urbanization (URB). Earlier studies have shown that LGU revenue performance is determined by the economic base as well as other economic variables that indicate the overall level of development like the degree of urbanization (Bahl and Schroeder 1983). In these studies, a high degree of urbanization is hypothesized to allow LGUs to derive more revenue from agiven economic base because tax collection is less difficult when the informal sector is relatively smaller in more urbanized areas. Relatedly, urbanization is associated with the expansion of market-based activities that are easier to reach tax-wise.

4. Population growth rate.(POPGR) is yet another proxy for changes in the economic base. Two alternative functional specifications were tried: linear and double logarithmic. The results of the double logarithmic equations are largely consistent with those of the linear equations in terms of the signs of coefficients and their statistical significance but the linear form was found to have a better fit. White's (1980) test was used to detect heteroscedasticity. This test is deemed to be important considering that the regressions were run using cross-section data. The test is based on the regression of the squared residuals from the original regression on the original set of explanatory variables plus the squares of said variables. Where heteroscedasticity was present, the procedure suggested by White was used to correct the standard errors and t-statistics. Per capita local business tax revenue The results presented in Table 1 show that per capita local business tax revenue is, as expected, positively related with per capita personal income. The relationship is not statistically significant for all years under study except in 1995. Moreover, the relationship is weak because the increase in PCLBT is estimated to be P0.26 at the maximum for every P100 increase in PCPZ. This may be indicative of the LGCs' inability to fully capture the revenue potential of their economic base. At the same time, PCLBT is found to be negatively related with PCIRA. Unlike in 1991 and 1993, the relationship was found to be

Managing Urbanization Under a Decentralized Governance Framework

Table 1. Linear Regression INDEPENDENT DEPENDENT

Constant

of Per Capita Tax ]Revenue of CLGUs VARIABLE

PCPY

PCIRA

URB

POPGR

VARIABLE PCLBT 1991

-4.143 (-0.293)

1993

1994

0.001 (1.004)

-0.040

0.620

0.619

(-1.449)

(4.162)"

(0.310)

q.030

0.001

-0.148

0.760

2.339

(-0.059)

(1.013)

(-1.532)

(2.896)-

(0.657)

14.898 (0.604)

1995

White Chi-Square

0.002 (1.610)

-0.030 (-3.055) 째"

0.609 (2.271)"

15.172

0.003

-0.034

0,748

(0.515)

(1_664)*

(-2.765)'"

(2.343)'"

0.006

_).039

5.833

0.522

2.483"

0.441

2.394"

0.459

1.986"

0.477

2.596"

0.247

2.147"

0.098

0.257

0.120

2.646"

0.142

2.740""

0.429

1.575

0.851

3.406""

0.625

8.082'*

0.432

8.068"

(1.446) 7.418 (1,552)

PCRPT 1991

-1.480 (-0,048)

1993

7.606 (0.149)

1994

0.005 (1.952)*

-23.915 (-0.326)

1995

(2.123)* (-0.742)

0.005 (1.332)

-17,000

0.005

(-0.200)

(1.741)"

0.020 (0.794)

0.032 (0.068) 0.078 (0.170)

7.269 (1.108) 0.876 (0.106)

0.045

-0.111

18.830

(1.198)

(-0.140)

(1.709)"

0.007 (0.163)

0.076 (0.089)

21.458 (1,936)"

PCLGUY 1991

1993

1,994

1802.223

0.003

(1.330)

(1.220)

630.444

0.009

(0.461)

(1.633)*

20.638

0.026

(0.008)

(2.112)'

1995-2241.926 (-0.667)

0.021 (1.068)

1.172 (6.549) "" 1.134 (20.288)" 0.859 (8.765)'"

1.465

-1740.106

(1.796)"

(-1.295)

2.987

-731.572

(2.954)*"

(-0.539)

1.197

88.274

(0.077)

(0.035)

0.935

2.583

2320.627

(7.185)"

(0.866)

(0.695)

"Statistically significant at 5%. *"Statistically significant at 1%, Note: Numbers in parenthesis refer to t-values. When the White ehi-square is significant, the t-values are derived from White chi-square heteroskedastieity-consistent covarianee matrix.

Financingand Deliveryof Urban Services

statistically significant for 1994 and 1995. The coefficients for PCIRA indicate that an increase of PI00 in PCIRA results in a P3.01-P3.36 reduction in PCLBT, other things being equal. These suggest that while intergovernmental transfers had a neutral effect on local business tax effort prior to the implementation of the LGC, CLGUs tended to substitute central government grants for local business taxes with the LGC's implementation. Lastly, the PCLBT of CLGUs exhibits a positive and significant relationship with the degree of urbanization in all years under study. In contrast, the coefficients for population growth rate yield negadve signs but are not statistically significant. These suggest that CLGUs are able to capture part of the fiscal benefits of urbanizadon and population growth. Per capita real proper_ tax revenue In contrast, PCIRA appears to have a neutral effect on per capita real property tax revenue in all years under study. While the coefficients for PCIRA are positive, they are not statistically significant. Again, PCPY has a positive and significant link with PCRPT (except in 1994). The relationship is slightly stronger than that of the PCLBT. A P100 increase in PCPY results in a P0.48-P0.55 increase in PCRPT. The coefficients for population growth rate have positive signs and they are significant in 1994 and 1995. However, while the coefficients for degree of urbanization are also positive, they are not significant. Apparendy, CLGUs' real property tax systems have not been able to fully capture the positive effects on land values that urbanization usually entail. Per capita CLGU total income Per capita LGU total income (PCLGUY) is found to be largely driven by increases in per capita IRA. This is expected given that the IRA accounts for approximately half of the total CLGU income during the period. The regression results also confirm expectations that PCLGUY is positively and significantly associated with per capita personal income. This was the case in 1993 and 1994. However, on the whole, both the urbanization and the population growth rate variables are not found to be statistically significant explanatory variables for PCLGUY (with the exception of the 1991 and 1993 equations, where the coefficient for degree of urbanization is found to be positive and statisticaUy significant).

16 ManagingUrbanizationUnder a DecentralizedGovernanceFramework

This study also assessed the performance of CLGUs in recovering the costs of provision of certain types of service through user charges. Specifically, cost recovery in the provision of public utilities (like waterworks, power supply, and telephone services) and of general urban services like markets and slaughterhouses was studied. Table 2 indicates that, in the aggregate, CLGUs' cost recovery ratios (i.e., revenue-to-expenditure ratio) in the activities enumerated above were consistently below unity in 1991-1995.3 Moreover, contrary to the experience in other countries, the cost recovery ratios of CLGUs are even lower than those of the average LGU. For instance, the 1995 data showed that none of the 20 CLGUs providing water supply services had a cost recovery ratio greater than unity. Moreover, it appears that only four of these CLGUs were charging for water (Table 3). The CLGU cost recovery performance in markets and slaughterhouses was relatively better but still problematic. Only nine out of 42 CLGUs were able to fully recover the recurrent operating cost of their public markets while only five out of 24 CLGUs (or 21 percent) were similarly situated with regard to slaughterhouses (Table 3). Lastly, the hospital revenue-to-hospital expenditure ratio of CLGUs in 1995 varies from a low of 0 to a high of 36 percent (for Olongapo City). Moreover, seven out of 17 CLGUs in the sample posted ratios higher than the 11 percent average for all CLGUs. This result is not quite expected because many LGUs regard hospital care services as a public good that should be given free of charge (Table 4). Determinants of CLGU expenditures To study the determinants of the expenditures of CLGUs, total per capita I, GU expenditures (PCTLGUEXP) and per capita expenditures on economic services (PCECON), health services (PCHE) and education (PCED) were regressed against the variables listed below. 1. LGU Income. Obviously, LGU expenditure will be limited by LGU income because of the budget constraint. By tradition, sI-Iere, we limited our analysis inaccessibility for capital costs.

to recovery

of recurrent

costs only

because

of data

FinancinganODeliveryof Urban Services

Table 2. Ratio of Revenue to Expenditure from LGU Business Enterprises, 1991-1995 All LGUs 1991 Total Pubfic Enterprise

|992

CITIES

1993

1994

1995

53,66 97.33

90.55

78.61

68.02

Waterworks System

72.95

48.18

55.69

Electric Light & Power

69,28

84.56

78.27

Telephone

1991

1992

1994

1995

90.01

78,86

77,00

68.06

54.72

72.06

83.00

42.59

36.f_

86.76

18.42

92.59

93,75

94,01

94,72

98,55 227.04 151.84

37.78

16.02

10,70

59.77

$.66

Operation of Market Opelation of Slaughterhous_ Operations of Toll Roads,Bridges& Ferries

119.09 109.23 106.71

75150

66.12

Operation of Cemeteries

184.10 94.75 177.00 126.12

System

Transportation system

197.61 165.69111A2

1.76 14.25

_9._

38,02

49,71

1995

6.87

0,84

3.06

1.48

92.19

97.07

76.94

71.73

227.39

156.28

85,31

77._

118.12

83.97

32.47

0.27

2.52 11_,83 3,380.90 425,02 534.59

90._

453,26 299.79

263.40 404.87

180.37

Source of data: AFR 1991-1996,

Philippine LGUs do not finance recurrent expenditures by issuing debt. In the analysis that was done for this study, two major components of LGU income (per capita IRA [PCIRA] and per capita local source revenue [PCLSR]) were considered as distinct explanatory variables. Itis important to distinguish between these two variables so as to evaluate the impact of intergovernmental transfers on CLGU spending. 2. Net Resource Transfer as a Result of the LGC While the increase in the IRA (as a result of the implementation of the 1991 Local Government Code) is sufficient to cover the cost of devolved functions in the aggregate, it cannot be denied that there is a mismatch, between the financial resources and the expenditure responsibilities that were transferred to LGUs. Thus, the increase in the IRA share of some LGUs is not enough to finance the functions devolved to them. 4 Although only a few CLGUs had negative per capita net resource transfer in 1993 and 1994, there is considerable variation in said

erhc

IRA increment

1992 IRA.

in 1991 is defined

The IRA increment

as the difference

in 1994 is analogously

between

computed.

the 1993 IRA and the

Managing Urbanization Under a Decentralized Governance Framework -. -

Table 3.Ratio of Revenue to Expenditure of Selected CLGUs, 1995

from LGU'Business

Enterprises

RATIOOF INCOMETO EXPENDITUI_(%) N_a_ae of Cities

Water

Laoag, Ilocos Norte Dagupan, Pangasinan San Carlos, Pangasinan Baguio, Benguit Santiago, Isabela Cabanatuan, Nueva Ecija Palayan, Nueva Ecija San Jose, Ecija Angeles, Pampanga Olongapo, Zambales Batangas, Batangas Lipa, Batangas Gavite, Cavite Tagaytay, Cavite San Pablo, Laguna Lucena, Quezon Legazpi, Albay Iriga, Camarines Sur Nag'a, Camarines Sur 0.00 Roxas, Capiz Uoilo, Iloilo 0.00 Baeolod, Negros 0.00 Bago, Negros Oct. Cadiz, Negros Oct. 0.00 La Carlota, Negros San Carlos, Negros Oce. Silay, Negros Occ. 0.00 Tagbilaran, Bohol Danao, Cebu 27.60 Lapulapu, Cebu 0.00 Mandaue, Cebu 0.00 Toledo, Cebu 21.54 Bais, Negros Oriental Dumaguete, Negros Oriental Ormoe, Leyte 38,24 Tacloban, Leyte 0.00 Calbayog, Western Samar 0.00 Dapitan, ?_amb_Del Norte 0.00 Dipolog, Zamb. Del Norte O.00 Pagadian, Zamb. Del Sur Zamboanga, Zam. Del Sur 0.00 Ozamis, Misamis Occ. Tangub, Misamis Occ. Cagayan de Oro, Misamis Or. 0.00 Surigao, Surigao Del Norte 0.00 Davao, Davao Del Sur General Santos, S. Cotabato 0.00 Iligan, Lanao Del Notre 30.97 Marawi, North Cotabato Cotabato, N. Cotabato 0.00 C_oocar_ Pasay 131.83 Q_ezon No. of dries w/ratio Percentage

> 100

to Total No.

0 out of 20 0

Markets

Slaughterhouse

Transport

93,31 96.26

116.42 336.68

99.32 65.70

12.75 46.69

0.00

120.77

0.0O

150.38 54.68 14.68 106.98 114,03 201.82 99.92 149.96 270.25 59.96 98.27 100.66 77.94 96.29 40A7 8.55 77.06 58_35

0.00

216.71 38.05 81.17

0.00

84.22 84.10 30.46

18.41 69.41 44.65 63.01 37.04

97.41 72.90 3._.46

155.42

65.66 19.43 21.95 17.96 0.00

0.00

30.26 O.00

0.00 0.00

55.88

53.27

214.10 38.44 68.66 29.26 93.51 63.48 28.16 34.49

98.81 15.17 136.73 2.03

0.00 0.00 384.13

15.89

0.0O

9 out of 42 21.43

2.42 5 out of 24 20.83

2 out of 12 16.67

Financingand Deliveryof UrbanServices

Table 4. Total Cost Recovery of Hospitals, 1995 ..... ul

Hospitals

Name dCilies

ulli

Income

Ex/_ndit_..,. Ratio (%)

Laoag, Ilocos Norm Cahanatuan,Nueva Ecija Angeles,Pampanga Olongapo'/am_cs Cavite,C__ite

156,828.00 1,332,862.00 5,19'2,2_8.95 6,650,576.88 0.00

2,6'29,419.25 17,023,515.28 21,294,692.23 18,439,639.32 904,259.40

5.96 7.83 24.38 36.07 0.00

San Patio, Laguna Naga, CamarinesSur Bag_ NeglOSOct. Toledo, Cebu

0.00 1,554,701.98 994,943.60 626,989.21

3,000,000.00 7,828,976._2 5,262,267.73 9,700,013.91

0.00 19.86 18.91 6.46

Onnoc, Leyte Tadohan, Leyte Pagadian, 7_rnK Del Sur Ommis, Misamis Occ.

0.00 1,425,510.81 46,380.27 1,165,910.83

989,567.05 6,507,776.27 1,581,451.01 7,868,676.15

0.00 21.90 2.55 14.82

Cagayande Oro"Misanfis Or. lligan, Lanao DelNorm Caio(rm_ Pasay

2,805,178.40 2,865,949.62 652,647.16 1,915,413.85

26,728,446.48 21,650,876.09 12,298,011.2'2 18,103,726.19

10.50 13.24 5.31 10.58

All Oties All LGUs

71,219,000.00 623,173,000.00 L_31,986,000.00 2,783,245,000.00

11.43 10.46

variable across individual CLGUs. s A dummy variable, D1, (which takes on the value of 1 when the per capita net resource transfer to the CLGU is above the median and 0 otherwise) was thus includedas one of the explanatory variables in the regression analysis. This variable was induded to verify whether the budget allocation behavior of the relative gainers from the devolution program differ significantly from that of the relative losers. 3.

Human Development Index. The analysis also tested whether or not lagged (or contemporaneous) values of the composite human development index (HDI) and its various components (life expectancy [LE] and functional literacy rate [FLR]) influence the budget allocation of CLGUs for the social sectors in the current year. This is an attempt to determine if CLGUs'

5 The net resource transfer is defined as the difference between, the IRA increment the cost of devol_d functions.

and

ManagingUrbanizationUnder a DecentralizedGovernanceFramework spending on the social sectors is responsive to objective indicators of need. In the 1993 equations, 1990 HDI values were used while 1994 HDI values were used in the 1994 and 1995 regressions. 4. Population Growth Bate (POPGR). The growth in the demand for public services is most often associated with population growth. A prior/, it is expected that LGU expenditures grow more or less proportionately with respect to population so as to maintain a constant level of service. 5. Degree of Urbanization (URB). A strong and positive relation between urbanization and per capita personal income is well established (Bahl and Linn 1992). At the same time, rising per capita personal income would tend to lead to an increase in the demand for public services if such demand is incomeelastic. 6. Dummy Variables for the Presence of CityProvincialRegional Hospital Within CLGU Jurisdicfion. Three additional dummy variables were introduced. D2 takes on the value of 1 if the CLGU operates its own hospital and is set at zero otherwise. On the other hand, D3 is given a value of 1 if there is a provincial government-operated hospital while D4 takes on the value of 1 if there is a Department of Health (DOH)operated hospital within the city. Given the high cost of operating hospitals, the presence of city-operated hospitals is expected to impact significantly on per capita CLGU health expenditures. On the other hand, since most of the patients of province-operated and DOHoperated hospitals located within a given city are typically residents of the said city, their presence usually implies an effective subsidy to the city in the form of lower health spending requirements (Capuno and Solon 1996).

Again, two alternative functions specifications were tried: linear and double logarithmic. The results of double logarithmic equations are largely consistent with those of the linear equations in terms of signs and significance of the coefficients. Generally, the linear specifications werefound to have better fit. White's (1980) test was again used to detect heteroscedasticity and White's correction was implemented where needed.

Financingand Deliveryof UrbanServices

Per capita total LGU expenditure In all years, a strong,positive and significant link is established between per capita LGU total expenditure and per Capita IRA. However, while there appears to be some evidence that relative net â&#x20AC;˘gainers from the devolution process tend to have different marginal propensities to spend out of the IRA comparedwith relative net losers, the coefficient of the Dl*PCIRAvariable switches sign from negative in 1994 to positive in 1995. 8 The results of the expenditure regressions presented in Table 5 show that the degree of urbanization and PCLGUEXP are negatively and significantly related in 1995. In the other years, the sign of the coefficient of the urbanization variable is positive but not significant (except in 1994). These results tend to show that while CLGUs were able to adjust their aggregate expenditure level in line with the increasing demands of urbanization in 1991-1994 (when the IRA share of LGUs increased substandaUy following the implementation of the Local Government Code, they were largely unable to do the same in 1995 (when the increase in IRA share of LGUs have started to taper). In contrast, the population growth rate variable did not turn out to be a good explanatory variable for all years under the study. Per capita health expenditures The analysis reveals that the population growth rate is negatively and significantly associated with per capita health expenditures (PCHE) for all years except 1991. Similarly, the coefficients of the urbanization variable are also negative and statistically significant in 1994 and 1995. The negative sign of the POPGR and URB variables is contrary to initial expectations. However, it is possible that actual CLGU per capita health expenditures (as opposed to required level) will decline with higher population growth rates and higher degree of urbanization as their revenues do not increase accordingly. This is so because Philippine LGUs are generally unable to go into deficit finance. Consequently, these results might be an indication of the urban fiscal gap problem. However, CLGUs that operate their own hospitals tend, as expected, to spend more on health on a per capita basis compared with other CLGUs. This is manifested by the positive and highly Â°Note that IRA share of LGUs of BIR revenues 1992, 25 percent in 1993 and 40 percent

rose from 11 percent

from 1994 onward.

in 1991 to 20 percent in

22 ManagingUrbanizationUnder a DecentralizedGovernanceFramework significant relationship between D2 and PCHE. However, our results do not suggest that the presence of province-operated or DOHoperated hospitals within city premises leads to a reduction in per capita health expenditures of the host cities. The coefficients for PCIRA have the expected signs but are not significant in 1994 and 1995. Moreover, while the coefficients of the DI*PCIRA variable are negative in the PCHE regressions 7, they are not significant except in 1993. This is in sharp contrast with the results of similar regressions made for provincial governments. The difference may be because only one of the CLGUs was a net loser in the devolution process in an absolute sense. Similarly, there is no strong link between per capita local source revenue and PCHE. While the coeffĂ&#x2030;cients of the PCLSR variable are positive, they are not significant except in 1995. It is noted that while CLGU allocations on the health sector are consistent with health need indicators like life expectancy (i.e., with high life expectancy-CLGUs budgeting less for health services), the relationship between these variables is not statistically significant except in 1994.

The coefficients of POPGRin the PCED equations have negative signs as in the PCHE equations. However, these coefficients are not statistically significant. The same result holds for the URB variable. All these lend some support to the existence of an urban fiscal gap. The DI*PCIRA and the PCIRA are the only statistically significant explanatory variable in the PCED regressions, s The sign of the coefficient of the Dl*PCIRAvariable is positive indicating that relative net gainers in the devolution process tend to allocate their windfall resources to the education sector. However, the negative sign of the coefficient of the PCIRA variable suggests that on the whole, per capita education expenditure of CLGUs tend to fall with higher per capita IRA. Per capita local source revenue does not appear to be a good explanatory variable for PCED; Its coefficients in the PCED regressions are not significant except in 1991.

_'he negative relationship between D I*PCIRA and PCHE indicates that relative net gainers in the devolution process tend to spend less on health at the margin compared with the relative net losers. SThe D I*PCIRA is significant

in 1993 and 1995 while the PCIRA is significant

in 1991 and 1994,

Table

5. l.lnear

D_ vARiam _.

Regression

of Per

C__mnm¢ Per Cq_a IRA

Capita

Expenditure

DI* Per C_mA

Per Capita Sam_me

ClaUs

POPGR

URB "

FLR

W_te _ _re

5' mI = O.

.0,039

=_ Q-

0.269

0.620

0.270

0.4s4

0,256

0.523

Tolal Eeenemic 1991 199,$ 19o_ 1995 1991

-730.049 .0.0_5 (.o.8c_) (.0.._1) -1184,642 (0.0131 (-o.421) -0.105 1007.693 -0.0a4 (0.,1401 (-0.._0) 1250.176 .0.028 (0.5311 (-0.474)

0,254 (2.7a0) "" 0.188 0.1591 "" 0.170 (3.082) ""

4).o80 277.4_ (.1.2os) (o.sso) 0.014 1454.827 (o.o66) (.529) -0.1,,8 -`513.475 (-1._531 (-0.2251 -0.020 -789A13 (-0.259) (-0.:_t8}

-0.040 (-2.310)" 0,006

0.075 -169.439 0.096 (3.,................._0)" (-1.0751 (1.0801 0.030 -779.080 .0.257 (1._51 (-2.2¢81" (-l._Jo) 0.034 -1188.585 -0.0`51

.0.196 (.0.2121 -0.320 (-0.1_) -5.314

(-I.826) (-1.810)" .2.689 (3.920) 25.445 8.692 (.0.369) 12.738 0.313 (-0,509)(1.148) (0.528) (0.495) 0,_09

1094

188.804 (1.073) 858.$92 (i.84_) 1081.007

0.941 (1.7111" 0.052 (1.900)" 0.012

1995

(2_8_)

(0000700 _ (.0,_$21 .0.014 (-0,5611

1993

_n 1901 1995 1994 1995 LI;U_ 1991 1995 199_ 199_

006.139 (.0.8oa)" .0.018 (-2.100) .0.005 (.o.cm) .0.005 (.0.fi34}

(2.430) (0.220) E_acndiem, e 300.593 0.0_ (1 .g_o) • (1.7¢s) 492.210 .0.076 (0.749) (-0.759) -20.821 .0.044 (-0.046) (-2.065)" 792.943 -0.033 (0.783) (-o.913)

0.087 (2.094)" 0.023 (1,113) 0.175 (2.9211 ""

(IA59) (-2.936)"(-2,2591" 0.073 .1959,870 .0.735 (1.9021 (-2.6041'(.I,7251 0.071 -348,517 0.674" (3.41_)" (-2.o_)" (2._21 0.008 .172.7t7 -2.02_ (0.177) (-0312) (-1.054) 0.0_ 39.411 0.726 (.855) (0.09,5) (0.424) -0.009 -518,690 -1.609 (.0.1`57) (.0.565) (.0._631

1771.253 1.0_5 (0.763) (3.319) "" -1181.542 0.842 (.0.37S) (7.345) "" _17.025 i.o37 (1..5021 (10.2801 "" -s4.soo -o._3 (-0.o17) (-2._8o)"

0.044 (0.404-) .0.1o_ (-1.6531" o.._1 (2.7o2) ""

0._03 (1.2701 0.686 (2.7'20)" .0,068 (-1.OOO) .o.o4o (-o.101)

-t696.750 (.0.73_) 1006.102 (OAV2_) -s_4._4 (-1Ar_) 2162._4 (o.4_)

•Statistically significant at 5%, "Statistically s_gr_icant at 1%, Note: Numbers in pa_nthesis refer to t-values. When the White chi-square consistertt to covariance matrix,

1.113 (0.768) 2._¢/ (1.157)" 5.45o (1.o._71= -lo.9o3 (-3.oo_)

is significant,

25.707" -8.072 -2A06 0.573 (4.6101 (-1.374) (-.0.580) 21.113" 3.188 s.3880,300 (2.sos) (o._<Jo) (o.275) 49.690"- -'26.586 -0.288 0.631

0.815 0.514 0.460 1,195

Q_ _. m -_ 0') _-

2.655 °°

0.370

0.359

0,109

2.486"

0513

0.115

0.199

0.$01

0.615

1.123

o,7_5

2.7_'.

o.3os

2.sa_-,

the t-values are derived from White chi-squarc heteroskedaslicity

-_" ,_

Managing UrbanizationUnder a DecentralizedGovernanceFramework

" " on economic services The DI*PCIRA variable is the only variable that is consistently significant in the PCECON regressions. Similar to the PCED equations, the sign of the DI*PCIRA coefficients is positive, suggesting that relative net gainers in the devolution process tend to allocate a larger portion of their IRA on economic services compared with relative losers. The coefficients of the POPGR and the URB variables are both negative tending to support the urban fiscal gap hypothesis. However, they are not statistically significant. At the same time, both the PCIRA and the PCLSR do not register statistically significant relationships with PCECON. Closing the Urban Fiscal Gap The problem of the urban fiscal gap can, in principle, be addressed in four different ways: (1) increased local revenue effort with unchanged revenue authority; (2) increased LGU revenue authority; (3) increased transfers from central government; and (4) more efficient use of existing financial resources in service delivery. Increa_ng _ revenue effort One of the more important findings of this Study is the substitutive effect of the IRA distribution formula on local source revenue. To counteract this tendency, tax effort may be taken into account explicitly in the IRA allocation formula. Alternatively, the IRA distribution formula may also be allocated to the different LGUs so as to equalize net fiscal capacitieis, i.e., revenue capacity net of expenditure needs (Shah 1994). At the same time, the results outlined in the subsection "Per Capita Real Property Tax" indicate that CLGUs' real property tax systems have apparently not been able to fully capture the positive effects on land values that urbanization usually entails. In this regard, the amendment of the Local Government Code in favor of an automatic indexation of the schedule of fair market value in between general revisions will greatly help to compensate for this weakness in the system. Such a move will protect the real property tax base from being eroded by inflation during the years when no general revision is undertaken. By avoiding the need to make substantial adjustments in the schedule, it will also be easier to narrow the gap between the "official" fair market values and the true marketvalues of real property

Financingand Deliveryof UrbanServices

in the medium term. Moreover, to counter local assessors' tendency to value real property below its true market value, the use of the zonal values of real property (on which the BIR bases its assessment of transfer taxes) should be considered. Tan (1993) found from a sample of areas in Metro Manila that the local assessors' estimate of the fair market value was at best 30 percent of the true fair market value of real properties. On the collection side of RPT, Fisher (1996) recommends that current collecdbles should be monitored separately from delinquent accounts. He further recommends that a more aggressive collection/ enforcement stance be taken such that at the close of each quarter, each account is issued notices of delinquencies; at the end of the second quarter when an account becomes delinquent, warrants of levy should be issued; and at the end of the third quarter when an account becomes delinquent, auction notice should be issued. In comparison, the biggest problem with regard to the local business tax is the underreporting of gross receipts of establishments. Requiring taxpayers to submit income tax returns (ITRs) filed with the Bureau of Internal Revenue is perhaps the most direct way of obtaining information. Given the present tax calendar, this implies that local business tax is initially assessed on the basis of previous year's ITRwhich is subject to final adjustment later in the year as the current ITR becomes available. In addition to the ITRs, local treasurers may require large establishments to submit supplementary accounting records. In large/urban areas, local treasurers should be trained in the conduct of field examination to check veracity of reported gross receipts. The use of presumptive income levels, particularly for small establishments, should be explored. Anecdotal evidence suggests that this worked very well in Naga in the late 1980s and early 1990s. To improve collection/enforcement of the non-RPT, ARD (1992) noted that the requirements are simple. They only need consistency in practice. It includes: (1) the establishment of a tax roll for each type of tax (the conduct of a tax census and the development of a revenue data bank are key steps in this regard); (2) maintenance of systematic and organized records where payments of all taxpayers are automatically entered as they occur;, (3) the sending of tax bills; (4) conscientious monitoring of payments of taxpayers and identification and collection of tax delinquencies; and (5) strict implementation of sanctions and penalties on erring taxpayers.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

A number of LGUs, particularly provincialgovernments, have â&#x20AC;˘adopted cost-based pricing of hospital services. Moreover, a good number ofdties are already sourcing a substantial part of their hospital expenditures from user charges. In addition to this innovation on the technical side, local sanggunians (councils) need to pass legislation that will remove restrictions on the retention of income generated by these hospitals. It has been found that said restrictions discourage hospital personnel from collecting user fees. In contrast, the poor financial performance of CLGU business enterprises is worrisome. Again, a move to cost-based pricing is one way of addressing this problem. Still another wayis through the award of management contracts to the private sector. Lastly, a good number of CLGUs have large cash balances. However, the Commission on Audit has put in place certain regulations that limit the CLGUs' ability to maximize the returns on these funds. Some LGU officials (e.g., Bacolod officials) were questioned when they invested in Treasury bills. increasing LGU taxing authority in the medium term, the assignment of taxing powers to various levels of government must be reviewed. Existing theoretical guidance on tax assignments suggests that residence-based taxes and taxes on immobile factors like the RPT are appropriate for local taxation. At the same time, motor vehicle ownership and use is also a suitable tax base for CLGUs. "The number of vehiclesAn any given city usually grows faster than its population. The growing number of vehicles requires more expenditures to maintain roads and imposes the cost of congestion and pollution on the urban environmenC (Bahl and Linn 1992). The imposition of betterment levies (or a tax aimed at recouping from beneficiaries the public costs of providing urban infrastructure from the beneficiaries) should also be explored. Such charges have been tried with positive effects in Korea and Colombia.

,, ng

and

inse,- e li,y

Case studies of best practices in LGU service delivery suggest that upgrading of LGU planning and fiscal management capacity, greater emphasis on participatory process, more effective coordination with other government agencies including other LGUs, ability to catalyze private sector and NGOs, use of appropriate lowcost technologies, contracting with the private sector, and elimination

Financingand Deliveryof Urban Services

of corruption will all contribute to improving the efficiency of public service provision. These highlight the need to disseminate and encourage replication of such practices. In this project, eight case studies ill health service delivery (Butuan, Cotabato, Gingoog, Lapu-lapu, Naga, Olongapo, Puerto Princesa, Surigao), five in environmental and natural resource management (Baguio, General Santos, Olongapo, Puerto Princesa, Las Pifias), and three in housing (Naga, Puerto Princesa, San Carlos) were reviewed. The objective of this exercise is to document innovative programs and highlight the key elements that have made them successful and sustainable. Many of these programs have already received awards from various bodies like the Galing Pook Awards, HAMIS (Health Management Information System), and Clean and Green Program. The added benefit of this project is not so much the identification of previously unrecognized innovations but the decomposition of so-called best practices into their principal components which, in turn, enhances their replication in other cities. These case studies share several features that cut across sectors. First, greater participation of various stakeholders (local institutions and people) in the financing as well as in the implementation process ensures efficient and effective program results and helps sustain the program itself. This is best exemplified by the mobilization of women's groups in the delivery of health services (as in Surigao City's Primary Health Care Federated Women's Club, Lapu-lapu City's mothers support groups); Naga City's reliance on the community organizations in identifying the beneficiaries of the housing program and in putting together the share of the beneficiaries in the financial requirements of the project; and the widespread participation in Puerto Princesa's Oplan Linis and reforestation program. Second, the LGUs involved in these best practice cases have somehow been able to break free from the financial constraints that most urban LGUs face. The concerned LGUs took different routes in addressing the fiscal gap. Some have introduced user fees (as in Olongapo City's Solid Waste Management Program) while others have spent time and effort in designing a well-thought-out cost recovery Scheme (as in San Carlos City's LoteParasa Mahirap). Still other LGUs have focused on mechanisms/techniques that reduce the cost of service production/delivery. This is true of Cotabato City's use of barangay halls and even private homes in the absence of barangay health stations (BHSs) and the mobilization of health volunteers in Cotabato City, Olongapo City and Naga City. Some LGUs have also

Managing UrbanizationUnder a DecentralizedGovernance Framework

mobilized additional funds from other levels of goyernment as well as from the private sector. For instance, Olongapo City requires its barangays to allocate 5 percent of their IRA to health and welfare. Surigao City obtained P1.5 million for the construction of a training center for its PHC Women's Club from the Countrywide Development Fund (CDF) of a senator. In Lapu-lapu City, partnerships with the private sector were established, wherein 10 private companies and five educational institutions support eight barangays in the conduct ofamonthlyfree clinic and donated facilities and supplies. Similarly, in General Santos City's Adopt-an-Island Program, business establishments, academic institutions and NGOs develop and maintain parks and road islands in the city. Other LGUs have maximized the use of their own resources to finance development expenditures. San Carlos City, for example, set aside 30 percent of its IRA (instead of the mandated 20 percent) for their Local Development Fund. Third, the better programs are those that are integrated, intersectoral and undertaken within a development strategy that attempts to capture the synergy from program interdependencies. For example, Puerto Princesa's Low-Cost Housing Project is in reality just one component of the city's Bantay Dagat Program. In like manner, Olongapo City strengthened the link between health and sanitation by integrating its environment program with health activities.

On the other hand, the case studies also highlight a number of sector-specific concerns. In the housing sector, both Naga's Kaantabay sa Kauswagan Housing Program and San Carlos' Lore Para sa Mahirap focus on the provision of lot and settlement upgrading in contrast to Puerto Princesa's Low-Cost Housing Project, which involves the provision of a house and lot package. Experiences elsewhere in the world tend to indicate that the role of government in the housing supply is best limited to land development and investment in on- and off-site infrastructure. "Given the heterogeneity of people's preferences for a kind of shelter and the speed at which they can or want to improve its quality, it is not surprising that public housing projects often do notfit the housing preferences of the poor." In this case, public resources alloted for housing construction are better placed in complementary inputs into housing like tenure and services (Bahl and Linn 1992).

FinancingandDeliveryof UrbanServices

The experience in all three housing cases is consistent with the experience in many countries that subsidize housing consumption either through the underpricing of land or the implicit subsidy on interest. Often, land is valued at its acquisition cost to government. _While a first project may be able to draw on financially cheap public land, follow-up projects may have to purchase land at commercial prices from private owners. In that case, the replicability of the first project--if it relies on subsidized land costs--is in doubt." At the same time, experience in other countries suggests that subsidies on housing tend to result in the overconsumption of housing relative to other goods and services and in overly ambitious expectations for housing standards because full cost is not borne by beneficiaries (Bahl and Linn 1992). This lesson is most relevant in the case of Puerto Princess where the project did not Charge an interest and which provides homelots of 99 square meters (almost double the size of lots in commercial low-cost housing projects) but beneficiaries still complain about the smallness of the lot. Although San Carlos and Naga provide some implicit subsidies in their programs, these subsidies are not as substantial. In all three cases, the success of the programs was helped by the LGUs' ability to play a catalytic role in terms of coordinating with national shelter and shelter-financing agencies. Moreover, in Nags, the City Council passed ordinances pertaining to land conversion and gave the mayor authority to negotiate the purchase of land. Aside from the traditional way of acquiring land which is through direct purchase, the LGU negotiated for land sharing and land swapping schemes. All three cities used census listing of the claimants in monitoring the legality of the latter's claims as future beneficiaries. But most noteworthy is the local initiative in strictly implementing the ban on illegal construction in Puerto Princesa. Environment and natural resource management The types of environmental programs that cities can undertake may vary depending on the overall development goals of the city as well as the features and priorities of the city environment that is to be managed. For natm_ resources-rich cities like Puerto Princesa and Baguio, environment and natural resource management activities (such as the Bantay Gubat and Bantay Dagat in Puerto Princesa and Eco-Walk Program in Baguio) serve as the city's main programs. For

ManagingUrbanizationUnder a DecentralizedGovernanceFramewOrk

highly urbanized cities where environment problems are associated with growth in economic activities such as in Olongapo City, solid waste management program deserves greater emphasis. Environmental programs can also be nonconventional as in the case of Las Pifias and General Santos where the focus is more on the aesthetics and tourism aspects and goals of the program. In environmental and natural resource management where there is a need to change people's behavior and attitudes, a good information, education and communication program is essential. While each LGU may craft its own program for the environment, inter-LGU cooperation has to be made in many instances in view of the economies of scale and externalities involved (e.g., sanitary landfill site management and maintenance). Lastly, when market-based instruments are used in tandem with regulatory instruments, LGUs may be able to raise revenues while minimizing further environmental damage. Health Puerta Princesa's Satellite Clinic Project and Naga's Emergency Rescue Naga are aimed at providing emergency medical assistance. Naga's scheme makes use of an extensive radio network and the availability of ambulances to improve the access of residents in rural barangays to medical care in emergency situations. Making the program available metro-wide enabled the sharing of limited facilities and magnified benefits. In contrast, Puerta Princesa (by staffing the satellite clinic with trained medical personnel on a part-time basis) not only provided emergency medical care but also improved the access of rural barangays to basic health care. The satellite clinics enabled early treatment of diseases before they go t worse and decreased the number of patients going to hospitals. Thus, the projects highlights the importance of looking at curative and preventive health care in a more integrated manner. Issues for Further

Research

This study also attempted to collect some input/output indicators of the service delivery levels of CLGUs. The results are rather disappointing. Input/output indicators were not available (or at the very least, not easily accessible even if they are available) at the local level for most services with the exception of education and health care services. The absence of this information may indicate that

Financingand Delivery of Urban Services CLGUs do not make use of budgeting. Moreover, simple output indicators (when they per capita CLGU expenditure, relationship between them.

this kind of data in planning and correlation analysis between input/ are available), on the one hand, and on the other, suggest there is a weak

References ARD (Associates in Rural Development). 1992. Essential Actions for LGU Revenue Mobilization. Local Develoment Assistance Program

(LDAP) Project Document.

Bahl, R. andJ. Linn. 1992. Urban Public Finance in Developing Countries. New York: Oxford University Press. Bahl, R. and L. Schroeder. 1983. The Business License Tax. In Local Government Finance in the Third World: The Case of the Philippines, edited by Roy Bahl and Barbara Miller. NewYork: Praeger. Bahl, R. and S. Nath 1986. Public Expenditure Decentralization Developing Countries. Government and Policy 4:405-418.

Capuno,J.J. and O. Solon. 1996. The Impact of Devolution on Local Health Expenditures: Anecdotes and Preliminary Estimates from the Philippines. Unpublished. Fisher, R. 1996. Assessment of Real Property Tax System in the Philippines. Report submitted to ARD-Gold Project. Shah, A. 1994. The Reform of Intergovernmental Fiscal Relations in Developing and Emerging Market Economies. Policy and Research Series No. 23. Washington, D.C.: World Bank. Tan, E. 1993. Real Property Taxation and Its Potential as a Major Source of Local Revenue. In Poverty Growth and the Fiscal Crisis, edited by Emmanuel de Dios and Associates. Makati City: Philippine Institute for Development Studies and Ottawa: International Development Research Centre. White, H. 1980. A Heteroskedasticity-Consistent and A Direct Test for Heteroskedasticity. 838.

Covariance Esdrnator Econometrica 48:817-

Chapter

2 Metropolitan Arrangements in the Philippines: Passing Fancy or the Future.Megatrend? Ruben G. Mewado, and Rosario G. Manasan In the next century, human progress will hinge on the metropolitanization of the majority of the world's population, transformation of the old models of metropolitan development and planning, and the elimination of urban inequality... What is needed is a new wa_ of thinking about the metropolis and urban planning based on the idea that the metropolis is progressive and desirable and not aplague to the humanity... The new way of thinking should pmject the current trends of metropolitan development into the twent_frrst century, not as fantastical futuristic visions but as sane scientific assessments of the laws that govern metropolitan development, and that permit us to consciously guide that development.

- Thomas Angotti (1993) in Metropolis 2000

economy and the continued pursuit of the national dispersion he country's towardconcentration becoming a have globally competitive policy through drive regional revitalized and eventually stirred large cities to expand their physical area for planning as well as their service area for urban service delivery. Noteworthy in recent years is the emergence of new "metropolises" in almost every region of the country. A local traveler may be surprised to hear that a city he has always known now has the word "metro" preceding its name. A tour in these new metropolises will reveal, however, that they do not show yet the metropolitan complexion, i.e., population and built structures, that the term "metro" usually connotes. Angotti (1993), in writing a modern day perspective on metropolitanization in the world, has suggested a general rule-of-thumb in defining a metropolis by referring to it as a large urban settlement

ManagingUrbanizationUndera DecentralizedGovernanceFramework

with at least. 1 million population, t. A city is different from a metropolis as the former is only a medium-sized settlement with a population between 100,000 and 1 million. Also a unique feature of a metropolis is that its geographical area usually extends across several local government boundaries. If the above definition is to be used, only Metro Manila, Metro Cebu and Metro Davao will qualify. Metropolitan arrangement in this paper defines or classifies other metropolises that do not pass the theoretical standards of population nor the urban criteria of a metropolis but functionally behave as such. Operationally defined, a metropolitan arrangement is where a highly urbanized city and the local government units (LGUs) contiguous with it enter into a cooperative venture in planning and implementing urban development activities. The formation of metropolitan arrangements emerged mostly in the 1990s. But is this just a fleeting phenomenon considering the recent emphasis placed worldwide on mega-cities? Or, is this a prelude to future trend in the management of the urban environment in the 21'_century Philippines? If there are significant benefits to this form of geopolitical cooperation, how can these be strengthened and enhanced as an alternative mechanism for effective and efficient urban service delivery? Context of Inquiry Interwoven in this study is an examination of the issues surrounding the evolution, appropriateness, effectiveness and sustainability of these metropolitan arrangements. It may be worthwhile to consider these issues in the light of current socioeconomic and political development in the national and global scene.

There is no strict universal definition of a metropolitan area such that metropolises in the world vary in terms of population and area size. Neither is there a formal definition in the Philippines. More recently, however, with the emergence of relatively big metropolis worldwide, the United Nations has defined some metropofis as megalopolises, which pertain to big cities or metropolises having a population of 8 million and over (UN Unive_gsity 1994).

MetropolitanArrangementsin the Philippines

Table 1. Urbanization in Selected Asian Countries, 1990 Urban, Population

Country

Population (in millions)

Area (sq. km)

Ave. Annual Density

GrowthRate 1980-1990

As%of Total

Growth Rate 1980-1990

Philippines Thailand Indonesia

61 56 178

300 513 1905

203 109 93

2.4 1.8 1.8

49 23 31

5.1 4.6 5.1

Malaysia Vietnam South Korea Japan

18 66 43 124

330 330 99 378

54 200 434 328

2.6 2.1 1.1 0.6

43 "_2 72 77

4.9 3.4 3.5 0.7

Source of basic data: WorMDe_/opment

Report 1992.

Rap/d urban/zat/on The rate of urban growth in the Philippines, which posted 5.1 percent for the intercensal years 1980 to 1990, is considered one of the highest in the developing economies of Asia (Table 1). As it is true for its ASEAN neighbors, its urbanization rate is more than double the national population growth rates. The source of this growth has been recognized to be influenced by a mixture of factors, including history, geography, sectoral, macroeconomic and explicit spatial policies (NEDA 1996). The 1990 Census of Population and Housing revealed that the Philippines is 48.4 percent urban. Projection for 1995 showed the share of population in the urban areas to be 54.1 percent or about 38 million out of the 69 million total population (Gonzales 1997). This represents a high growth rate of 4.6 percent--almost double the national growth rate of 2.45 for the period 1990-1995. The proportion of urban population over the national population is expected to increase its share as the country's economic production will be generated mostly in the urban areas following the anticipated increasing shares of the industry and services sectors. Ttw advent of metropolises and meg_bolises The rise of metropolises and the emergence of megalopolises are contemporary urbanization phenomena taking place in many countries. The former refers to the process whereby a city expands its influence to surrounding cities and towns, forming an urban region

ManagingUrbanizationUndera DecentralizedGovernanceFramework

or conurbation 2 more commonly known as a metropolis or metropolitan area. The latter phenomenon is when a metropolis grows further in terms of population and creates an expanded metropolis forming a megalopolis, a term first used byJean Gottman for a spatial system consisting of several metropolitan areas (Serote 1994). In the Philippines, the occurrence of these phenomena is very much pronounced in recent years. Metro Manila is now part of the world map of current megalopolises or mega-cities (ADB 1994). Having reached more than 8 million population in 1990, it has graduated from a metropolitan status. Lately, some of the highly urbanized cities have been gradually taking on a metropolitan character in terms of increasing population and the presence of relatively complex urban systems, including modern transport and communication infrastructure, expanding residential areas resulting in an intricate daily commuting pattern and sophisticated commercial and trading activities. Other cities, while still far from being considered a metropolis, are gradually following suit by shaping either a formal or an informal metropolitan arrangement among the concerned LGUs. The transformation of these cities into metropolises finds basis in the expectation of their likely metropolitan destiny aside from the perceived benefits that can be derived from such aggrupation. Metropolitan arrangements: re-centralizaaon ?

decentraliza6on

Article X Section 13 of the 1986 Constitution provides the prime basis for any inter-governmental or metropolitan arrangement. It states: Local government units may group themselves, consolidate or coordinate their efforts, services and resources for purposes commonly beneficial to them in accordance with law.

=Serote (1.994) quotes the Dictionary of Social Sciences in defining "conurbation" as a "large geographical area, extending across several local government boundaries, forming in socioeconomic terms a single continuous urban region." He further explains that the term metropolis comes from two Greek words: metro meaning "mother" and polls meaning "city." It is descriptive of a "mother city giving birth as it were to daughter cities and together forming a large city that is several times bigger than the original one in terms of land area and population."

MetropolitanArrangementsinthe Philippines

The 1991 Local Government Code further strengthened the concept of metropolitan arrangements under Chapter 3, Section 33: Local government units may, through appropriate ordinances, group themselves, consolidate or coordinate their efforts, services, and resources for purposes commonly beneficial to them. In support of such undertakings, the local government units involved may, upon approval by the sanggunian concerned after a public hearing conducted for the purpose, contribute funds, real estate, equipment, and other kinds of property and appoint or assign personnel under such terms and conditions as may be agreed upon by the participating local units through Memoranda of Agreement. While these provisions form the legal basis for some intergovernmental structures that can then be applied to a metropolitan arrangement, the creation of such a structure is feared by some as a form of re-centralization or, at the very least, a threat to the autonomy of LGUs. Metropolitanization would, in effect, make LGUs give up some of the greater and broader powers and functions they have been accorded under the new Local Government Code. In addition, smaller LGUs might consider such metropolis formation as a form of annexation and fear that they will lose their identity as a distinct local entity. Still, some believe that metropolitan arrangements strengthen decentralization rather than encourage re-centralization when its formation is caused primarily by the LGUs themselves. Such metropolitan formation allows for a subnational-level government (as oppose to a central government) provision of services characterized by economies of scale and externalities. Thus, metropolitan arrangements can be viewed not as a re-centralization movement but rather, a refinement of the decentralization thrust. Me_llam arrm_me_ _ poetical preferences From the standpoint of a more integrative development planning, the support behind metropolitan arrangements emanates from the benefits that could be derived from scale economies and the spillovers of service between administrative or political jurisdictions. This is true particularly of urban services such as traffic management, water supply, treatment and storage, solid waste

ManagingUrbanizationUndera DecentralizedGovernanceFramework

management and land use planning that can be provided more effectively and efficiently if they are jointly planned and delivered by moreJ than one LGU. While this is arguably a justifiable option, the choice of the type of organizational structure may be difficult to determine considering that LGUs have equal political legitimacy. Thus, competition and antagonism may sometimes hinder a workable and sustainable working relationship or moreso, a more formal metropofitan arrangement. Purpose and Scope of Study This study provides a broad inquiry into the evolution and dynamics of metropolitan arrangements in the Philippines. Specifically, the objectives are: 1)To document the evolution of the various metropolitan arrangements in the country and evaluate their future prospects; 2) To determine the various functional areas where metropolitan arrangements have been or can be effective and efficient in the delivery of urban services; 3) To identify and analyze problems confronting these groupings in the area of institutional strengthening and coordination, finance, management operations and local autonomy; and 4) To propose policy reforms regarding these arrangements, both metropolis-specific and metropolises in general. Eight metropolitan arrangements are considered in this study: Metro Manila, Metro Naga, Metro BLIST (formerly Metro Baguio), CAMADA (formerly Metro Dagupan), Metro Cebu, Metro Iloilo, Metro Cagayan de Oro (CDO) and Metro Davao. While there are other metropolitan arrangements that are known to be emerging (e.g., Metro Urdaneta, Metro General Santos, Metro Iligan), the study limits itself only on those that already have a formal institutional arrangement or are in an advanced stage of evolving one. The insights and perspectives put forward in this study benefited very much from formal and informal discussions with regional government officials and local executives in these areas.

MetropolitanArrangementsin the Philippines

Table 2. Metropolitan Arrangements: Composition, Land Area and Population Composition blvb-o

Manila CAMADA

City

10 1

Municil_dity (Total) 7 2

Province

17 3

(_l. kin)

633.21 147.50

BLIST

973.34

Naga Cebu Iloilo CDO Davao 1" 2** 3***

1 3 1 1 1 1 1

14 7 3 15

15 10 4 16 1 3 4

1257.67 922,98 207,80 3841 _71 2211.30 2724.61 20817.86

Population 1995

Land Area

I_wel

Growth Rate 1990-95

9,454,040 269,093

3.52 1.38

386,512

2.49

560,322 1,435,903 437,351 861,588 1,006,840 1,039,721 4,480,267

2.19 2.39 1.59 3.63 3.39 2.66 2.29

* Davao City only, ** Total of Davao City, Panabo and Sta. Cruz. *** Total of Davao City, Davao del Norte, Davao del Sur and Davao Oriental. Sources: 1990 Population and Landarea Population and Housing.

Data from National Statistics Office; 1995 Census of

Demographic and Geographic Features of Current and Emerging Metropolitan Arrangements Table 2 provides a general picture of the eight metropolitan arrangements as to their demography and geography. Expectedly, a metro arrangement is generally composed of a city plus the neighboring municipalities. Variations, however, exist in the number of geopolitical units involved in the arrangement (Table 2). The number of cooperating LGUs ranges from 3 to 17. Metro Davao is a special case where there are at least three definitions that have evolved: (1) a Metro Davao that is synonymous to Davao City; (2) a Metro Davao that encompasses Davao City and the neighboring municipalities of Panabo and Sta. Cruz; and (3) a Metro Davao referring to Davao City and the three surrounding provinces, namely, Davao del Norte, Davao del Sur and Davao Oriental. There is a close association between the largeness of the metropolitan areas under study and the area contributed by the noncity LGUs in the metropolitan composition. These non-city LGUs account for a sizeable share (i.e., about more than half) of the total metropolitan area in this study (Figure 1). Conversely, the same graph shows that the share of the city area to the overall size of the metropolitan area is relatively small. Except for Metro Manila, Metro Cebu, Metro Davao 1 and Metro Davao 2, the share of the mother city comprises only less than a third of the total metropolitan area.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Figure 1. City, Non-city and Total Metropolitan Land Area

25000--

z_oo,

I=N째_Y I

, NXlO.

_- MANILA

Source:

Basic data

BUST

from

_M_

Table

*CO,'

,L01LO

CES0

C_-

OAVAO 3

The demographic and geographic differentiation between city and non-city areas can be seen as creating a development balance. For instance, the geographically large non-city area can be a potential expansion area for the geographically limited capital city while the demographically large city can be seen as a big potential market for non-city products and services. Such symbiosis and development complementarities would, of course, prove workable, depending largely on how well the metropolitan arrangements are effected. Genesis of Metropolitan Arrangements With the exception of Metro Manila, the formation of metropolitan arrangements are events of the 1990s. One can glean from their unique experiences a variety of factors that cause their formation. These arrangements can be generalized based on four major precursors, Common pressing local concern The formation of Metro BLIST, CAMADA and Metro Naga was preceded by pressing concerns. The damage left by the strong quake that hit the regions of Northern Luzon in 1990 has paved the way for LGUs to interact more closely and view future developments in a more integrated fashion. The disaster has facilitated the development plan

MetropolitanArrangementsin the Philippines

of Metro Baguio, which eventually, upon consultation with the surrounding municipalities of Benguet Province, became the foundation of the Metro BLIST (Baguio, La Trinidadl Itogon, Sablan and Tuba) area. The same experience holds true for Dagupan City, Calasiao and Mangaldan in the province of Pangasinan. Originally called Metro Dagupan, the new name CAMADA was eventually agreed on by the mayors of the area. In the case of Metro Naga, the shortage of oil products during the Gulf War led Naga City and surrounding municipalities to work together in resolving gas sourcing and allocation issue.

Metro Cebu, Metro CDO and Metro Davao find their origin from regional or area development strategies and spatial studies. Initially, the Regional Cities Development Project targeted Cebu, Davao and Cagayan de Oro. In view of the important infrastructure projects undertaken in these major cities, strategies for regional development gave them key roles for the growth and development of their respective regions. The influence of these cities have expanded beyond their boundaries and development planning has led these cities to take on a new status as metropolitan centers integrating themselves with the nearby cities and provinces. The Central Visayas Regional Program (CVRP) first defined Metro Cebu as a planning area. Under the CVRP, the Metro Cebu Development Project (MCDP) is the CVRP's infrastructure component, implementing road projects in the areas defined as Metro Cebu by CVRP. Metro Cagayan de Oro, on the other hand, was a product of the integrated area development (IAD) approach, which was a development planning strategy fashionable during the Aquino Administration. While the National Council on Integrated Area Development (NACIAD) was abolished during this period, IAD as a planning tool has been carried over and reinvented through the Special Development Programs (SDPs). The Metro CDO was packaged as an SDP, of which the Cagayan de Oro-Iligan Corridor (CIC) Project is a major component. Efforts in the implementation of the SDP were focused more on the development of infrastructure links between Metro CDO and Iligan. Such realization has given impetus recendy in considering the needs of the defined metropolitan area hand in hand with the development of the CIC region. While originally a Davao City initiative, the Metro Davao now has metamorphosed into a subregional growth area as defined by the

Managing Urbanization Under a Decentralized Governance Framework

Table 3. Metropolitan Composition, Geographic and Demographic Characteristics, by Metropolitan Arrangement Population Metro

Level

Growth Rate 1990-1995

Land Area (sq. kin)

1990

1995

Metro Manila Manila

7,928,867 1,598,918

9,454,040 1,654,761

3.52 0.62

633.21 24.98

Mandaluyong Marikina Pasig Quezon City Sat*Juan Kalookan Malabon Navotas Valenzuela La_ Pinas Makati Muntinlupa

244,538 310,010 397,309 1,666,766 126,708 761,011 278,380 186,799 340,050 296,851 452,734 276,972

286,870 357,231 471,075 1,989,419 124,187 1,023,159 947,484 229,039 437,165 413,086 484,176 399,846

2.75 2.68 3.22 3.34 -0.40 5.64 4.13 3.82 4.81 6.37 1.25 7.02

9.29 21.52 48.46 171.71 5.95 55.80 32.64 8.94 47.02 32.69 18.31 39.75

Parafiaque Pasay Pat;eros

307,717 366,623 51,401

391,296 408,610 55,286

4,57 1.96 1.37

46.57 13.97 10.40

Taguig Metro BLIST

266,080 341,202

381,350 386,512

6.93 2.49

45.21 973.34

Buguio City La Trinidad

183,102 48,252

226,883 63,089

4.09 5.04

57.51 80.78

Itogon Sablan Tuba CAMADA Calasiao Mangaldan Dagupan City Metro Naga Naga City Bombon Calabanga Camaligan Canaman Gainza Magarao Milaor Minalabac Pamplona Pasacao Pill San Fernando Bula Ocampo Metro l]oil0 Iloilo City Leganes Pavia Oton

61,773 8,440 39,635 251,160 62,966 65,947 122,247 502,299 115,329 10,874 54,261 15,436 20,298 7,095 16,623 18,199 35,922 24,097 31,960 52,481 20,608 48,240 30,876 403,949 309,505 18,505 23,814 52,125

47,781 9,170 39,589 269,093 69,528 73,351 126,214 560,322 126,972 11,739 59,164 17,411 22,732 7,743 18,264 21,213 37,574 26,176 36,070 61,520 24,196 54,650 34,898 437,351 334,539 19,235 26,756 .56,821

4.70 1.57 -0.02 1.38 1.87 2.01 0.60 2.19 1.82 1.44 1.63 2.28 2.14 1.65 1.78 2.91 0.85 1,56 2.29 3.02 3.05 2.37 2.32 1.59 1.47 0.73 2.21 1.63

423_70 96_95 314.40 147.50 53.40 56.87 37.23 1,257.67 84.48 44.20 163.80 4.68 43.27 14.75 44.97 33.64 126.10 80.60 149.54 126.25 71.76 151.30 118.33 207.80 56.00 32.20 35.00 84.60

MetropolitanArrangementsin the Philippines

Table 3 (continued) Population MeU'o

Metro Cebu

Level

Growth Rate

Land Area

1990

1995

1990-1995

(sq. km)

1,274,345

1,435,903

2.39

922.98

Cebu City Lapu-Lapu City Mandaue City Cordova Concolacion Lfloasl

610,417 146,194 180,285 22,331 41,270 42,587

662,299 173,744 194,745 26,613 49,205 50,973

1.54 3.29 "1.46 3.34 3.35 3.43

315.00 58.06 25.18 17.15 147.20 52.10

Compostela Tali_ay MinglaniUa Naga Metro C,DO

22,006 97,955 50,875 60,425 718,699

26,499 120,292 62,523 69,010 861,588

3.54 3.92 3.94 2.52 3.63

53.90 86.45 65.60 102.34 3,841.71

CDO City Jasaan Villanueva

339,598 29,146 17,122

428,314 33,598 21,310

4.44 2.70 4.19

412.80 77.02 48.80

Tagoloan Claveria

33,919 31,130

40,929 39,020

3.58 4.32

117.73 894.90

Opol El Salvador

20,473 26,721

23,958 31,500

2.99 3.13

80.85 87.13

Alubijid Laguindingan Gitagum Libona Manolo Fortich

19,531 15,503 10,994 29,652 61,329

21,765 16,521 11,327 31,897 67,400

2.05 1.20 0.56 1.38 1.78

103.45 16.74 43.40 343.20 405.19

Talakag Baungon Malitbog Sumilao Metro Davao Davao City Metro Davao2

35,379 19,774 14,934 13,494 849,947 849,947 1,016,070

39,378 22,617 16,414 15,640 1,006,840 1,006,840 1,196,564

2.03 2.55 1.79 2_80 3.39 3.39 2.66

186.40 245.30 581.85 196.95 2,211.30 2,211.30 2,724.61

Davao City Sta. Cruz Panabo Metro Dav'ao3

849,947 55,951 110,172 2,932,361

1,006,840 59,139 130,585 3,288,824

3.39 1.11 3.40 2.29

2,211.30 319.91 193.40 20,817.86

Davao Davao Davao Davao

849,947 632,701 394,697 1,055,016

1,006,840 677,069 413,472 1,191,443

2.28 2.41 0.87 2.28

2,211.30 4,541.05 5,700.61 8,364.90

City del Sur Oriental del Norte

Sources: Basic data from National

Statistics Office

1990; 1995 Census of Population

and

Housing.

Davao Integrated Development Program (DIDP). Metro Davao is a product of the joint undertakings by the city and the three provinces whose aim was to develop the whole of Davao as a tourist and investment area. Such undertakings includes big tourism projects as well as the area's major role in the East ASEAN Growth Polygon.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

The beginnings of Metro BLIST and CAMADA (though actual development was facilitated more by the effects of the 1990 earthquake) can also be traced to its being first identified as major components of the North West Luzon Growth Quadrangle (NWLGQ). The NWLGQ is an interregional development strategy envisioned for Region I and CAR. Metro BLIST and CAMADA constitute the East Quad and South Quad (CAMADA-Sual-Bolinao Growth Corridor), respectively. Deliberate national policy and constituency approval Metro Manila is the only metropolis that came about as a result of a conscious policy decision at the national level. Metro Manila is not only a metropolis but is also the National Capital Region (NCR). Such title carries with it a distinction of being the economic, social, cultural, educational and political center of the nation. The needs of metropolitan Manila is a priority concern of the national leadership because of two major considerations. First is how to improve public services in the areas geographically embracing the center of government. Problems of inefficient and uncoordinated services as well as future challenges in the face of rapid urbanization have caught the attention of the national leadership. The second consideration is the need to develop a region that will serve as the showcase for the country's drive for modernization consistent with its exp0rt-oriented national development strategy. These concerns brought the Marcos leadership to issue Memorandum Order No. 314 dated November 10, 1972, creating an Inter-Agency Committee on Metro Manila to "study the systems of municipal/city government in metropolitan Manila and to recommend whatever measures of coordination and integration are deemed appropriate" and to "study the functions and responsibilities of the National Government in the metropolitan area, and to recommend whatever changes in structure and interrelation with municipal governments are deemed appropriate." The committee proposed for the creation of a Metropolitan Manila Authority under the Office of the President through a presidential decree. A referendum was called for to get the people's support to legalize the compositional definition of Metro Manila and to give the President the authority to create a new administrative structure for the NCR. Eventually, with the positive response by the people, a presidential decree (PD 824) was issued in 1975, which defined the composition of Metro Manila and created the Metro Manila

Metropolitan Arrangements in the Philippines

Commission (MMC). Executive Order 392 was issued by President Corazon Aquino in 1990, replacing MMC with the Metropolitan Manila Authority (MMA). Then in March 1995, Congress enacted a law creating the Metropolitan Manila Development Authority (MMDA), replacing MMA and clothed with more powers and authorities than the previous metro body. Lozalmittazi_ Metro Iloilo and Metro Naga are examples of local or subregional initiatives. The germ for the creation of Metro Iloilo came from influential city locales and was eventually supported by some local officials of Iloilo City and the three surrounding municipalities that have a stake in a metropolitan arrangement. In the case of Metro Naga, the establishment of the metro arrangement was principally bolstered by the leadership of the mayor of Naga City. Under Naga City's leadership, the initial discussion on the gas shortage as a result of the Gulf War eventually led to broader concerns and identified the potentials for future cooperation, which paved the way for the creation of the Metro Naga Development Council. Organization, Financing and Activities of Metropolitan Arrangements: Variations and Commonalities Table 4 outlines the various organizational structures and sources of financing of the eight metropolitan arrangements in the country. Only three of the eight metropolitan areas under investigation already have their respective policy and management structures in place. These include Manila, Naga and Davao. Metro Manila and Metro Naga are supported by a congressional law and presidential decree, respectively, while Metro Davao was established through a memorandum of agreement by and among local government officials. Majority are still in the process of forming their metro bodies and are biased for an authority type of management leadership although local leadership is emphasized particularly in the chairmanship and composition of the executing council. The Metro Cebu Development Council is one of the most recent organizations formed. A lot still have to be done to internally organize as well as clarify linkages with the regional and local structures, and institutions. Except for Metro Manila, all metropolitan arrangements are largely locally led. The provincial governors and mayors of the cities

ManagingUrbanizationUndera DecentralizedGovernanceFramework

and municipalities of the cooperating area comprise the highest decisionmaking group in the organizational hierarchy. Although it has been shown in the preceding discussions that while many of the existing metropolitan arrangements were not mostly local initiatives, the management and sustainability of the arrangement depend largely on the zeal and full cooperation of the LGUs. This does not only pertain to their crucial role in steering the development of their area but similarly important is their commitment to sustain the established arrangement through their agreed financial contribution. All metropolitan arrangements have fixed local contribution, which is Table 4. Organizational Types and F'mancingof Metropolitan Arrangements Metro Manila

Existing

Proposed

Organization

Metro Manila Development Authority

CAMADA

Under

Study

BLIST

Short Term: Consultative Forum

Source(s) Basis / Support

Participants

of Financing

Republic Act

National Local

/ National Allocation/ Local Fixed Contribution/ Fees/Fines Collection

CAMADA Master (Structure) Plan

Under Study

BLIST Master (Structure) Plan

Local

Under

Local

National Allocation/ Local Fixed Contribution

Regional

MCDP Proiect Funds/ To be determined

Local

Local Fixed Contribution

Study

Long Term: a "Metro" Authority Naga

Metro Naga Development Council

Executive

Order

Cebu

Metro Cebu Development Council

RDC Resolution

Iloilo

Metro lloilo Development Council

Memorandum Agreement

CDO

Under

Metro CDO Master Plan (ongoing)

Under Study

Memorandum Agreement

Local

Local Fixed Contribution

Davao

DIDP Board/ Committee/ Management Office

Study

MetropolitanArrangements in the Philippines

usually a certain percentage of the LGU's internal revenue allotment. For Metro Davao3, LGUs provide an equal share of P300,000 as initial funding for the program and the operation of the management structure. However, Metro Manila and Metro Naga are provided annual appropriations from the national government budget, on top of the fixed local contribution. Table 5 lists the areas of concern considered or proposed to be undertaken by the established and the soon-to-be-instituted metropolitan arrangements. There are some disparities in the activities undertaken by each metropolitan arrangement. This is expected considering the diversity in the conditions and priority for coordinated effort of each area. For ins "tance, only Metro Davao and Metro Baguio have included tourism as part of their major concern because of its significant role in these areas' development goals. Interestingly, the concerns of Metro Manila and Metro Cebu are exactly the same because Cebu views its present and future needs for integrated planning and service delivery as one that is or would be similar to those of Manila [at least t_om the point of view of the proponent of the congressional bill creating the Metro Cebu Development Council (MCDA)]. In general, however, there are concerns that seem to be common to all metropolises. These are in the areas of development planning, solid waste management, and transport and traffic management. MMDA considers these areas as its biggest challenge at present. It is worthy to note that the other emerging metropolises have included these concerns either because they are confronted with these issues at present or because they want to be more prepared for these challenges in the future. In Metro Cebu, transport and traffic management is one of the priority concerns. Although the traffic situation may not be as severe as in Metro Manila, Metro Cebu is confronted with traffic congestion in some of its major sections. If existing road situations are not improved (i.e., unless new road constructions and/or road expansions are undertaken in the future), all of these road sections will be totally clogged with increasing traffic demand by the year 2000. Table 6 shows past and future traffic demand and how this translates in selected road sections of Metro Cebu. The tmttic demand will continually grow at over 3 percent toward the next century. By then, its major road sections have reached beyond their full capacity as revealed by the computed congestion ratios.

48 Table

Managing Urbanization Under a Decentralized Governance Framework 5.

Metro Manila

Development

Activities

Under

the Metropolitan

Arrangements

ConcernActivityProgram Development Planning Transport and Traffic Management Solid Waste Disposal and Management Flood Control and Sewerage Management Urban Renewal, Zoning and Land Use Planning and Shelter Services Health and Sanitation, Urban Protection and Pollution Control Public Safety

CAMADA

Development Planning (socioeconomic, land use and environment) Transport and Traffic Management Flood Control and Drainage Improvement Solid Waste Management City/Town Centers Upgrading Housing/Resettlement Education Health Telecommunications Water Supply

BLIST

Solid Waste Management Transport and Traffic Management Tourism Water Supply

Naga

Development Planning Equipment Pool Program Elderly Service Emergency Rescue Enterprise Development Manpower Development and Employment Water Supply Health Services Support

Cebu

Development Planning Transport and Tr'_c Management Solid Waste Disposal and Management Flood Control and Sewerage Management Urban Renewal, Zoning and Land Use Planning and Shelter Services Health and Sanitation, Urban Protection and Pollution Control Public Safety

Iloilo

Development Planning Transport, Traffic Engineering and Management Environmental Sanitation, Waste Management and Disposal System Flood Control and Sewerage Mmlagement Urban Renewal, Land Use and Zoning and Shelter Services Networking of"Economic Support Infrastructure Public Safety, Maintenance of Peace and Order, Disaster Management Trade and Investment Promotion

CDO

Traffic Management Water Supply Solid Waste Disposal and Management

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Table 6. Past and Future Traffic Demand in Metro Cebu, 1979-2010 1979 Person Trips (000) Private Public Total

1992 111 1029 1139

Annual Growth Rate Selected Sections (person t.rips, in 000) Talisay-Ce bu Cebu-Mandaue Mandaue-Consolacion Mactart-MaJ.nla_d Road Congestion Ratio Talisay-Gebu Cebu-Mandaue Mandau e-Consolation Macta_,-Mainland

2000

2010

347 1846 1093

583 1728 2311

901 2309 3210

8.05

g_89

$.29

35 51 25 17

61 110 55 36

85 159 82 58

1.18 0.64 1.25 0.86

2.03 1.38 2.75 1.80

2.83 1.99 4.10 2.90

ASSUMPTIONS Population (000) Trip Maker (000) Trip Rate per Trip Maker Private Vehicles (000) Basic source: Cebu Integrated

1,274 956 1.68 65 Area Development

1,712 1,284 1.8 110

2,301 1,726 1.86 170

Master Plan Study (1994).

well-operated landfill or composting site. Dagupan, Calasiao and Mangaldan have dump sites that are generally below international health standards. Land area estimates for landfill sites ior the CAMADA are shown in Table 8 based on the indicated assumptions. Potential areas have been proposed in the Master Plan for CAMADA and are still awaiting actual implementation. The above cases of metropolitan arrangements underline the difference of tackling local concerns toward a more integrative planning and program implementation and the need to clefine the roles of each involved LGU. The basis for such arrangements vary in legal forms such as laws, executive orders or memoranda of agreement, depending on the political culture of these areas. Generally, such legal forms delineate each locality's functions and roles in the given arrangement, in practice, however, formal arrangements and systems are not yet installed for many of the metros under study despite their awareness of their respective urban problems. Note that the functions commonly identified for metropolitan cooperation are largely consistent with those one might expect a prior/

MetropolitanArrangementsin the Philippines

Table 7. Urban BLIST: WaterDemand, 1994-2020 Year

Population

1994 2000 2010 2020 Source: BDUPP

% Served

312,000 358,000 421,000 473,000

58 70 80 90

Average LPCD 190 210 220 220

Water Production Requirements Ave. (cu. m/day) Peak (cu. in/day) 34,400 48,135 54,600 73,700 74,100 103,700 93,700 131,100

(1994a).

Table 8. CAMADA:Landf'dlSite Requirements LandAreaRequired Period 1996-2000 2000-2010 20102020 TOTAL

Initial Population 301,000 334,000 417,000

Final Population 334,000 417,000 500,000

(ha) 9.2 27.3 33.4 69.9

Assumptions: Average daily waste generation: 0.75 kg/capita/day Percent of population serviced by collection system: 95% Average solid waste density (as collected): 375 kg/cu.m Final landfill volume: 50% of collected volume Average landfill depth: 5 m Additional site area required for services: 5% Basic source: BDUPP (1994b).

on the basis of the theory on expenditure assignment under fiscal decentralization. That is, functions that are characterized by economies of scale and externalities are generally deemed to be more appropriate for higher level governments. Thus, services that require areas larger than a local jurisdiction for cost-effective provisioning like water supply, sewage disposal and solid waste management are generally assigned to metropolitan governments worldwide. Similarly, the same is true for services like public health whose benefits and costs accrue to nonresidents of a Iocaljurisdiction (i.e., services that give rise to spadal externalities). On the other hand, Metro Naga's identification of "elderly service" as a metropolitan service appears to be surprising at first considering that it is largely a quasi-private good with minimal economies of scale and benefit/cost spillout. However, if one considers that this service is likely to have a large redistributive component, then one sees why the proponents of Metro Naga would rather assign this to the metropolitan unit rather than to the individual LGUs.

Metropolitan Arrangements in the Philippines

,53

the formation of a stronger and more coordinated structure to implement the Plan. Metros Cebu and CDO have yet to show any concrete evidence that their cities and municipalities concurs with the need for a formal metropolitan arrangement. One may argue that in the case of the former, the problem of acceptability may not be so alarming considering that the area has already experienced many metro projects in the past. However, one must consider that the dynamics of a policy and the management structure differ a lot between a project office and a metro body. Metro CDO, which is currently formulating a master plan for itself, may have to find out how the LGUs envisioned to comprise it would like to view the plan's institutional management structure. The failure of Metro BLIST and CAMADA to instill among the LGUs involved a deep appreciation of the arrangement and their inability to work outan acceptable structure for the master plan should serve as a lesson to others.

Leadership is crucial to the adoption of an acceptable metropolitan structure. There are two points in this leadership issue. The first concerns the question of who should initiate to get everyone to agree on a structure. The second is the determination of an agreeable mode of metro leadership. The first facet of the issue is a serious reality. Generally, the initiative is expected to come from the dominant city. There are at least three reasons for this. First, most often than not, the dominant city has the greatest stake in the arrangement. Second, the city is usually recognized as a "big brother" to the other LGUs. Third, the component cities and municipalities are constrained ethically to make the first move considering thz, t they are structurally under the provincial government. While these reasons may be valid, the dominant city still hesitates to initiate. There are two reasons. First, dominant city fears that some LGUs may misconstrue the former's initiative as a move to expand its political power and authority. Second, the dominant city encounters some difficulty over the provincial government's sensitivities. The result is a political stalemate. This whole initiative issue is very real in the case of Metro BLIST and C_IKDA. Higher authorities (i.e., regional or national leaders) are opined by the local officials to be more effective arbiters in such a case.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

The second facet of the leadership issue is equally challenging, i.e., the choice of leadership type for the adopted structure. Metro Manila provides a good example of experiments !n metropolitan leadership. The MMC had a powerful governor at its helm. The MMA shared the powers by adopting a rotating leadership among the members of its council. The MMDA has a presidential appointee as chairperson with a Cabinet rank while giving the council a big decisionmaking authority. Given Metro Manila's rich experience on various modes of leadership, it is not surprising that many of the emerging metropolises refer back to these tried structures in formulating their own. Reaching a decision on an acceptable formula is still in process for a lot of these emerging metropolises•

•

" ed_body

An effective structure is where roles and functions are clearly delineated and understood. In the experience of the MMDA, this factor is lacking. One of the criticisms on the functions and responsibilities OfMMDA under Republic Act 7295 is the use of the word "coordinate," which finds weakness in practice. For instance, MMDA's function in coordinating land use classification and zoning means almost nothing because it is the LGUs that have the authority anyway to reclassify land by virtue of the Local Government Code. Coordination in this case has often reduced the MMDA into a mere center of information on any changes in land classification by the LGU. An integrated physical planning for Metro Manila, which is the whole rationale for such task, becomes difficult for MMDA to effectively carry out because the function as written in the law does not warrant full responsibility and authority. e an

•

When a metropolitan arrangement graduates into a formal metropolitan structure, it inevitably requires a full-time organization to handle its growing technical and administrative needs. Metro Naga, which has gradually evolved from an informal metropolitan setup to an established institution, now finds itself needing to build up its secretariat support to the Metro Naga Development Council (MNDC) as development challenges and activities in the area mount. At present, such support is lodged with a Project Officer of Naga City. While this one-man support setup is still workable, an expansion of management support may eventually become a big necessity.

Metropolitan Arrangements in the Philippines

Finandal mstainabillty One of the key factors for a metropolitan body to be sustainable is a stable financial source. Different modes of financing and various strategies have been employed by existing metropolitan organizations. It can be said that the different convictions and perspectives on metropolitan structures are reflected in their choice of financing. Metro Davao believes on local self-reliance and, therefore, deliberately ruled out their dependence on national support to finance its organizational machinery. Thus, each member-LGU commits P300,000 as its annual contribution. Metro Naga, on the other hand, is more practical in its approach. While it too believes in local selfreliance, it takes into account the financial condition of the LGUs in the arrangement. The uniform 2 percent of the 20 percent development fund set aside by the municipality from their annual budget as contribution to MNDC addresses the varying financial ability of its members. In view of the limitation of the total local contribution, the MNDC has to source funds from other sources. The issuance of Executive Order (EO) 102 creating the MNDC was a means employed by Metro Naga to entitle itself funds from the national budget. The original proposal was to get funding from such institutions as the Philippine Amusement and Gaming Corporation (PAGCOR). The executive order, however, provided for funds under the Office of the President. While the NMDA receives an appropriation of P1 million annually, the appropriated item has changed its funding source. Currently, the budget is part of that of the National Economic and Development Authority (NEDA)under its Integrated Area Development activities, the item where the fund of the Regional Development Council (RDC) is also sourced. Metro Manila is a special case. Being a nationally initiated metropolis backed by a congressional law, it gets a regular appropriation, on top of fixed local contribution, from member-cities and municipalities sufficient enough to manage its day-to-day operations.

laenaCyand "toyatty"erise,of and munidpalities The introduction of a metropolitan structure--be it metropolitan arrangement or a formal metropolitan body--chang. significantly the relationships of political units in the local governme system. Figure 2 shows graphically these changes. Prominent in t"

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Figure 2. Comparative Structures of Local Government System With and Without a Metropolitan Body Philippine Local â&#x20AC;˘Government System WithoutMetro Structure

WithMetro Structure Metropolit_

]

[

Provinoe

comparison is the way component cities and municipalities of the arrangement can be cross-related with the province and the metropolitan body. Quite many believe, though, that the identity and loyalty issue may not necessarily present problems in the legaladministrative perspective but may do so in the political realm. The issue becomes sensitive especially when the historical evolution of Metro Manila is brought to the fore. It may be recalled that the original composition of Metro Manila prior to the establishment of the MMC includes the cities of Manila, Quezon City, Pasay and Caloocan--all units that are not under any provincial jurisdiction. When the MMC was installed after a pleb!scite was undertaken, the 12 municipalities that were under the province of Rizal and one municipality under the province of Bulacan formed part of a special province now called Metropolitan Manila Area or the National Capital Region (NCR). Many believe that the eventual late of many municipalities and component cities upon joining any metropolitan arrangement is to be detached from the province and become part of a new political jurisdiction. The experience of Metro Naga, however, shows that it is possible for municipalities to maintain their identity as a political unit under the province and still be an active member of the metropolitan arrangement as well as contribute religiously in all its endeavors while â&#x20AC;˘ doing its responsibilities as part of the larger i_rovince. It should be mentioned, though, that the MNDC leadership particularly of Naga

Metropolitan Arrangements in the Philippines

City consulted the province regarding the formation of the council and sought its support and cooperation. The existence of a municipal identity and loyalty despite its metropolitan arrangement in the traditional local government system may, thus, depend on the political dynamics in the regional area. Such dynamics will determine the destiny of subprovincial units involved in the arrangements. Resolution of conflicts: compromise and sacrifice Taking heed of tradeoffs between metropolitan and local concerns is one of the more difficult issues in metropolitan governance. The basic problem arises when local executives give priority to the interest of their respective constituents over that of the whole metropolis. The problem of solid waste management best illustrates this dilemma. Many LGUs have improved garbage collection system by adopting more systematic methods and have successfully rallied the cooperation of their constituencies in promoting a clean environment. However, the reality remains that the final disposal of collected garbage has not reached a level of modernity and strict environmental acceptability. Open dumping is still the standard practice. The two major technologies available in this regard are incineration and the establishment of a sanitary landfill. The former is regarded by the Department of Environment and Natural Resources (DENR) as an expensive option considering the quality of waste generated, which is largely putrescible materials. The use of landfills is what the agency is encouraging local governments to adopt instead (Ganapin 1997). There are two big constraints to the establishment of sanitary landfills, which is why these cannot gain much support from local governments. First and foremost is the huge cost of developing the facility and the similarly expensive maintenance requirement. This problem could be mitigated through inter-LGU cooperation as economies of scale are achieved. Metropolitan arrangements show a lot of promise in this regard. In case financing can be handled jointly by the LGUs concerned, a second hindrance comes to the fore--the NIMB (short for Not In My Backyard) attitude. The problem of site identification is such a perplexing issue and no amount of technical exegesis can convince a local government of the economic, geological and environmental feasibility of an area under its jurisdiction as the best place to build the sanitary landfill.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

For a lot of the emerging metropolises under study, the garbage issue is one of the sources of nonsupport for a metropolitan arrangement. Often, municipalities, especially those that have large tracts of land with big potential as a landfill site, perceive such arrangement as a means for them to be co-opted to be the site of refuse of the dominant city or the other municipalities in the metropolitan area. Metro Manila's experience in this issue was one that required presidential intervention. What complicated the problem is that the identified landfill sites are in Carmona and San Mateo---both in Rizal and municipalities outside of Metro Manila's jurisdiction. The issue could not have reached a fast resolution had Malacafiang not intervened for the MMDA. For many cities, especially those having limited land for final disposal, the garbage problem pose both a serious and an urgent issue. For instance, Baguio City projects that its current dump site will reach full capacity in a year's time. Negotiations are being tried for a possible site in La Trinidad, among others, but with much difficulty. If metropolitan arrangements will not prove workable for cities beset with metropolitan-wide problems, how can these be resolved? Should Metro Manila's experience of Presidential mediation be always used or should a national policy be formulated in cases of conflicts requiring compromise or sacrifice? Sustaining and Enhancing the Metropolitan Arrangements Addressing the issues just described necessitates a clear understanding of the elements essential for the successful planning and management of the metropolis. An understanding of these basic prerequisites would help identify the necessary policy intervention instruments that will solve the issues confronting the existing and emerging metropolises in the country. The identification of the key elements of metropolitan planning and management finds basis on the documented experiences of other countries and from the unique lessons derived from the existing metropolitan arrangements in the Philippines under study. There are three key elements or conditions necessary for an effective and efficient metropolitan planning and development. First, a common vision of preservation and development of the region is crucial. Second, there ought to be a unified ecooomic and political base to implement the vision. Third, an appropriate metropolitan

MetropolitanArrangements in the Philippines

structure that will provide an institutional framework for successful planning and implementation is inevitable. These three conditions essentially constitute what we shall refer hereon as the metropolitan governance framework (Figure 3). At the apex of the triad is the adoption of a vision to preserve and develop the region or the constituted metropolitan area. The vision may either be an elaborately framed goal or a simple recognition of the benefits that the members of the constituted metropolis may derive from the arrangement or cooperation. Similarly important is the process of framing and adopting the vision or the identified benefits. The ownership of the vision can be better accepted as well as produce an impact if the vision itself is derived through a process of community debate and decisionmaking. A universal experience in metropolitan planning is that many of the formal master plans that embodied the vision for the metropolis suffer from non-implementation to mere uselessness (Angotti 1993). This is one of the biggest frustrations of metropolitan arrangements such as in the cases of Metro BLIST and CAMADA. There is no question on the technical merits of these master plans. What is lacking perhaps is the fuller involvement and cooperation of member-municipalities in promoting a metropolitan-wide vision that reflects the collective interests of the major stakeholders in the area. Cooperation is better assured and the organizational mechanism for implementing the vision will be less difficult to install if local ownership of the metropolitan arrangement is secured early on. A contrasting example is Metro Naga, which took its root from a desire of the leaders of the city and member-municipalities to pursue development via the principle of resource sharing, role identification and integrated area development. A number of achievements Figure 3. Metropolitan Governance Framework Common Vis/onfor

and Po//t/m/Base

the Reg/on

M_erope//ta_

ManagingUrbanizationUndera DecentralizedGovernanceFramework

have been made so far without the existence of a formal master plan. Only recently did the leaders realize the need for one. Metro Davao3 is also treading toward a more sustainable arrangement. Its vision of nine key result areas for socioeconomic cooperation and development under its Davao Integrated Development Program shall form the basis for the soon-to-be-completed master plan. The Memorandum of Agreement adopting the strategy and the commitment to financially assist indicates a commitment to a unified purpose and vision for the region. At the base of a triad is a unified political and economic mechanism to implement the vision. Ideally, to be effective and efficient, the metropolitan area should have a unified political jurisdiction and a well-coordinated and well-managed economic agencies and authorities. Metropolitan planning and management differ from city or municipal planning in that the former has to contend with disjointed political jurisdictions. Unified planning is thwarted especially when these political jurisdictions retain and exercise substantial functions and powers under existing laws. A similarly formidable challenge is how to harmonize or rationalize the various sectoral and specialized agencies providing urban development services. These agencies and authorities often develop independently of elected government and may resist participation in metropolitan-wide planning if not handled carefully and systematically. Metropolitan Tokyo is a distinct political unit with 23 special wards, 26 cities, 7 towns and 8 villages. The development of the whole area is contained in a single plan, which is backed up by a national legislation and has the national agencies providing for its regional infrastructure needs. In Calcutta, effective delivery of services and infrastructure needs of the metropolitan area was carried out only by rationalizing the existence of about 570 public institutions, "a veritable maze of jurisdictions and authorities that were often in conflict andin noway coordinated regionwide" (Sivaramakrishnan and Green 1986). In Metropolitan Toronto, a division for urban services was devised so that the six area municipal governments and the regional agencies, boards and commissions have clearly defined responsibilities and accountabilities. On the other hand, the case of Metro Manila best illustrates the presence of multiple government agencies operating, in most cases, independendy of the metropolitan authority. Almost all the metropolitan services are handled outside of the MMDA without a clear

MetropolitanArrangementsin the Philippines

line of authority between these agencies and the metropolitan sixucture. For instance, in the transport sector, the Light Rail Transit Authority (LRTA) is under the Department of Transportation and Communication (DOTC), Traffic Engineering and Management Team is under the Department of Public Works and Highways (DPWH), road construction and operations are under DPWH and local governments, vehicle registration and licensing are with the Land Transportation Office (LTO) and the Land Transport Franchising Regulatory Board (LTFRB), flood control and drainage is with DPWH, environmental management and services are with the Department of Environment and Natural Resources (DENR) and the Laguna Lake Development Authority (LLDA). The problem of coordination especially in urban iniiastructure was not evident during the MMC regime as it was during the MMA establishment, when it suffered not only financial and manpower constraints but also powerlessness in coordinating metro-wide services. While greater powers have been given to the present MMDA, problems still exist in the area of vertical and horizontal coordination among national sectoral agencies as well as local governments. The last element of the triad is the choice of metropolitan structure. Existing and emerging metropolises in the country may choose one or a combination of the following models of governance structure acceptable to its members: (1) a metropolitan city, under which a single LGU has responsibility for all local functions; (2) jurisdictional fragmentation, under which the responsibility for the same local functions lies with the various LGUs operating in the metropolitan area; and (3) functional fragmentation, under which the provision of services is area-wide but divided along functional lines among the LGUs and one or more autonomous agencies or corporations (Bahl and Linn 1992). However, each of these metropolises will have to craft its own structure considering the multiplicity and variety of political and socioeconomic challenges. Alternative Metropolitan Structures Given the issues raised in the preceding section, the task of choosing from among the variety of metropolitan structures would definitely not be easy. This section now discusses some of these alternative structures for metropolitan management and how they can address the particular needs of the present and rising metropolitan arrangements.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

New city or metropolitan city The metropolitan area may be structured as a metropolitan city where the provision of most basic services is provided by a Single LGU and where no other LGU operates in the area. A metropolitan city may occur naturally by virtue of the prior existence of a political jurisdiction whose land area is large enough to contain its urban sprawl within its boundaries. Alternatively, a metropolitan city may result from the annexation or amalgamation of a number of existing political jurisdictions or LGUs into a single political administrative unit. Metropolitan Bangkok is actually a merger of former municipalities of Bangkok and Thonburi. The result was the creation of the Bangkok Metropolitan Administration (BMA), an autonomous metropolitan city government. The BMA charter provided for a metropolitan assembly consisting of both elected and appointed members, each representing a constituency of about 100,000 people, the equivalent of a district. Aside from Bangkok, metropolitan cities in other countries include Seoul, Kuala Lumpur, Surabaya and Jakarta. The metropolitan city structure provides some ease in coordinating activities and implementing plans. The duplication of services is less likely and the new city tends to be large enough to enjoy economies of scale (Bahl and Linn 1992). The formation of a new citycan provide a resolution to the legal administrative ties between the province and the municipality/ies that are involved in the metropolitan arrangement. Their legal identity in the local government system is, thus, clearer and more defined. However, the weakness of the metro city's structure lies in its general inability to account for intra-city or neighborhood differences in the demand for the services. For metropolitan arrangements that involve only a relatively few local entities and where political and cultural forces are less problematic, a plebiscite can be held for a new city charter. The CAMADA may be an eligible candidate. Interviews conducted with high officials of Dagupan City and the municipalities of Calasiao and Mangaldan indicated no strong opposition to this option. However, since the two municipalities thought that because Dagupan City has twice their population, they may have to field one candidate for mayorship or governorship for the newly formed political unit to compete with Dagupan City. Jurisd'wtional frabomentation with a second-tier government The second approach to metropolitan governance is to allow for jurisdictional fragmentation, i.e., the existence of several LGUs

Metropolitan Arrangements in the Philippines

side by side with a second-tier governance structure within the metropolitan area. This structure is very common in the United States but examples in developing countries do exist, notably Metro Manila, Sao Paulo, Lima, Rio deJaneiro and metropolitan areas in South Asia. Geographic or jurisdictional fragmentation is usually a spontaneous phenomenon stemming from the expansion of the metropolis beyond the primate or core city. This model promotes economic efficiency by bringing the government closer to the people and, consequendy, making it more responsive to local preferences. However, it has the disadvantage of being less able to capture the benefits from economies of scale and to address problems associated with spillover effects of certain types of services. The creation of the second-tier governance structure in this model is precisely aimed at counteracting this inherent weakness in jurisdictional fragmentation. The upper-tier structure takes various forms in different places around the globe. One may have a metropolitan development council, metropolitan development authority or a metropolitan government. The difference among these three options lies in how power is shared among the LGUs in the metropolitan area and the leadership structure in the second-tier. Metropolitan development council (MZK2) A common and less complex form of metropolitan structure is a metropolitan development council (MDC). In this structure, the powers of LGUs composing the council are maintained. Metropolitan leadership rests on the council composed of mayors representing the cities and municipalities and whose chairmanship is appointed from among the members. A similar model can be found in most large U.S. metropolises such as the Metropolitan Washington Council of Governments (WASHCOG), which is an association of federal, state and local governments concerned with the Washington metropolitan area. The metropolis covers a land area of 4,000 square miles located in three states (Maryland, Virginia and District of Columbia) with a population of about 4 million people. The MMA is a form of MDC. Metro Naga's adopted structure is one vari_/nt that follows the RDC type of organization, minus the agency representations. Instead, it has purely local government composition. The Metro Davao3 model also has semblance to this structure. The difference between these existing models is their respec-

ManagingUrbanizationUndera DecentralizedGovernanceFramework

tive technical and administrative support. Metro Naga relies on secondment of technical personnel from the member LGUs to serve in the MNDC Secretariat. Metro Davao3, on the other hand, established a full-time Project Management Office to manage the affairs of the regional program. Meanwhile, the MMA has full-time personnel with plantilla positions, owing to its being an interim metropolitan structure after the abolition of the MMC. One advantage of this metropolitan structure is its relative ease in obtaining national support mainly because it is backed by constitutional provisions. An executive order from the president will suffice to sustain its legal identity and financial backing. However, because of the limited budget of the executive, financial sustainability of the MDC is always at risk. In the case of Metro Naga, its appropriation is taken from an agency budget. However, such could prove disadvantageous to the agency? Local self-reliance in financing the council can hold some promise, as in the case of Metro Davao3--that is, if LGUs sustain their commitment to the arrangement. The MMA's regime suffered because the LGUs refused to contribute their Internal Revenue Allotment (IRA) shares to maintain the authority. Metropolitan development authority An attractive form of metropolitan structure is the metropolitan development authority (MDA). This is in view of its relative institutional permanence, greater corporate powers and functions and fiscal advantage. Also, since it is more of a technocratic organization than a political body, it de-politicizes decisionmaking especially on issues that are controversial or difficult to be raised by an elected leader as they involve political risks. In the Philippines, the creation of an MDA lies with the legislative branch by virtue of a congressional law enacted for that purpose. The metropolitan authority is typically headed by a chief executive officer who is appointed by either the central government or the state government. What easily comes to mind when referring to this model is the MMD& Based on interviews conducted in the regions, Metros Cebu,

* The NEDA, recommendation

from which the MNDC's to increase its budget

new item in the agency

budgeL

appropriation is lodged, had to defend its ceiling following the addition of MNDC as a

Metropolitan Arrangements in the Philippines

BLIST, lloilo and CDO tend to prefer the MMDA structure but it is difficult to determine whether such structure would fit in the socioeconomic and political milieu of these emerging metropolises. Issues on political jurisdiction would have to be resolved and may require a regional plebiscite to determine the people's willingness to conform to a new administrative unit. Also, their coordinative relationships with the regional institutions (e.g., RDC) should be clearly spelled out. Metro Manila is unique because it is a region in itself but functioning as the RDC of the national capital region. Therefore, when adopting its model on other regions, adjustments may have to be made, especially on those that compose a significant geographic and political part of a region. Moreover, these are questions raised with respect to the strength of the authority because it displayed weak leadership and ineffective coordination of activities with local governments and national agencies. Caution, therefore, must be taken so that the faulty features of the model are avoided if it is to be adopted. A lot of cities or metropofises in South Asia, including New Delhi, Bombay, and Colombo, have adopted this model. Experience has also shown that, as has been the case in Karachi, metropolitan-wide authorities have not been able to resolve conflicts in project implementation and that central and provincial governments have to intervene (Cheema, in ADB 1987). Moreover, Bahl and Linn (1992) noted that: MDAs need to have executive functions and fiscal autonomy (resources) if they are able to coordinate the delivery of services within metropolitan areas and provide certain services with area-wide benefits. A planning agency with only advisory powers cannot effectively play this integrative role. Typically, MDAs have not been given such powers and as a consequence their effectiveness has suffered .... MDAs often fail to combine development (investment) and operating responsibility and thus create the typical turnkey problem: the agency responsible for capital ouday and planning does not allow sufficiently for the preferences and the technical, managerial, and financial capacity of the operating agency. The result is that local facilities deteriorate for lack of adequate maintenance. 4

These weaknesses are shared by the two other models ofjurisdicational discussed in this section.

fragmentation

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Meixo4_lilaJa government The establishment of a me tropolitan government is one of the more controversial options. Metropolitan government differs from authorities or development councils in that the LGUs composing the metropolitan area are subjected to a higher jurisdictional authority or government whose leadership is usually elected. The metropolises of Tokyo and Toronto adopt this model. In a metropolitan government setup, the body is usually headed by an elected governor. There is a single-tier council and the city and municipal mayors also act as area managers. The governor coordinates the sectoral departments of the national government. In the Philippines, the establishment of this kind of metropolitan setup will only be possible with the amendment of the present Constitution. As discussed in the earlier section, LGUs have been safeguarded by the Constitution against any form of disempowerment that may result from the establishment of metropolitan authorities or similar bodies. It should be recalled that the new charter was framed in preparation for the abolition of centrist governance (under the Marcos administration) in favor of a more democratic regime and local autonomy. A compromise metropolitan government can be set up whereby the local governments retain their powers and function but surrender to the metropolitan government those functions and activities that are metropolitan in character or those that transcend political boundaries. The leadership shall be through an elected governor, who shall therefore command the respect of both the people and the local executives in the metropolitan area. Functlonal_ With functional fragmentation, LGUs in the metropolitan area have limited responsibilities for service delivery, but autonomous local bodies with corporate powers are given the authority to undertake specific functions and services on a metro-wide basis. Special metropolitan corporations can be established to perform services such as water supply and sewerage, electricity, transportation and solidwaste management. The metropolitan corporation model is suitable in addressing economies of scale in capital-intensive services like public utilities and transportationmareas where smaller LGUs would norreally have difficulty financing. The "corporatization" of service delivery has the advantage of energizing the management of service delivery activities by professionals (vs. politicians) whQse decisions tend to be shielded from political interventions. Moreover, this mode pro-

Metropolitan Arrangements in the Philippines

motes greater cost recovery; thus, assures the availability of funds for the expansion and maintenance of a particular service. However, this model makes cross-sectoral coordination more difficult and may lead to either over or underinvestment in certain sectors because of the earmarking of user charges to the activities. In Metro Manila, the Metropolitan Waterworks and Sewerage System (MWSS) and the Light Rail Transit Authority (LRTA) are examples of the functional fragmentation2 There are other laudable models of these metropolitan corporations outside the country. For instance, the Metropolitan Toronto Corporation, with its agencies, boards and commissions, provides specialized urban service functions such as licensing, zoo maintenance, performing arts center administration, police services, transportadon, family and child service. The Karachi Metropolitan Corporation in Pakistan takes care of development projects through its subsidiaries, the Karachi Development Authority dealing with land and infrastructure projects and the Karachi Water Supply and Sewerage Board. In Metropolitan Madras, development projects and operation of urban services are executed by governmental, parastatal and municipal organizations, one of which is the Madras Corporation that is governed by a council of 120 elected members and administered with a stateappointed special officer. The commissioner, who is the executive head of the corporation, is also appointed by the state government. In Cartagena, Colombia, the Municipal Public Service Company (EPM) provides the majority with local public services including water supply, sewerage, fire protection, administration of public markets and slaughterhouses. Public corporations have been tried in the Philippines with some degree of failure and success but the experience has been largely limited at the national level. Metropolitan organizations may, however, adopt this model based on the success features in other metropolitan bodies abroad. However, a more basic issue has to be resolved. That is, whether the metropolitan body has the legal or corporate personality to undertake this form of service provision. In the case of Metro Manila, Presidential Decree 824 issued in 1975 created Metropolitan Manila as a public corporation but Republic Act 7924, which created MMDA in 1995, redefined the metropolis as a special devel-

5Operationally, (GOCCs) and,

however, therefore,

these are government-owned and controlled corporations outside the coverage of the metropolitan unit.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

opment and administrative region. Meanwhile, RA 7924, which is the existing legal framework for Metro Manila, no longer recognizes its corporate personality (unlike PD 824) nor allows for MMDA to create corporations. There are three notable reasons why it is advantageous for a m_tropolis to have a corporate personality. First, it will be able to advance economic interest should it require resources that are beyond what it can immediately provide; for instance, via capital market or through other financial arrangements with private institutions. Second, a metropolitan corporation may address the issue of decentralization versus re-centralization. For instance, acting as stockholders, LGUs can more forcibly advance their own interests as well as determine the functions of the organization and the manner by which these capacities will be carried out. Third, a corporate structure gives continuity to programs despite the limited tenure of local government leaders. Conclusions and Agenda for National Policy Action The metropolitan area is the ultimate form of urban transformation. Once an area reaches this stage, it becomes imperative that the area should not be constrained to evolve an identity as a new political and administrative unit. This will facilitate the formation of an organizational machinery that is appropriate, effective and efficient. This paper has shown concrete examples of this urban transformation and how the emergence of this phenomenon in many urban areas of the Philippines has necessitated new forms of administrative structures. The metropolis is not a province, municipality or city. It is rather a collection of all these and therefore requires unique planning models and distinct legal laws. Metropolitan planning and development is fast becoming a new feature of local governance in the Philippines. While most of the groundwork is undertaken largely by local governments themselves, the national government plays a critical role, especially in providing the legal framework and environment conducive to such undertakings. The following is a list of some of the short-term and long-term agenda for action in support of metropolitan development. Review of basic laws supporting metropolitan devekrpnwnt While the present Constitution has authorized the creation of special metropolitan political subdivisions," it has delimited the ex-

MetropolitanArrangements in the Philippines

tent to which metropolitan management will proceed. This is because of the provision that says higher jurisdictional body such as metropolitan authorities can only be established through a congressional act and that "cities and municipalities shall retain their basic autonomy and shall be entided to their own local executives and legislative assemblies." Thus, there are no laws that allow a desirable metropolitan mechanism with sufficient powers and authority when the situation calls for its establishment. One of the immediate tasks of policyrnakers, therefore, is to make appropriate amendments to the Philippine Charter that will strengthen the metropolitan structure and promote the objectives of metropolitanization. Some of the promising provisions can be the inclusion of metropolitan areas as a recognized territorial and political subdivision of" the country. With such recognition, it would be easier to accord the structure with enough powers and functions inherent in such political subdivision. This can provide [br a stronger constitutional authority and flexibility for any legislation pertaining to metropolitan organizations. Rad, ao/inelnde

Code

provisions

in the Philippine

Local Government

The Local Government Code has overlooked local governance relative to the current and future dynamics of urbanization. Rapid urbanization as a result of greater industrialization and agricultural modernization, however, has compelled local government units to expand their political and administrative linkages with neighboring cities and municipalities. Should changes be made in the Local Government Code, its amendments should be in line with the proposed changes in the Constitution. This will allow for the eventual changes in the way sharing of powers and functions between LGUs and the constituted metropolitan organizations are to be effected. The current Local Government Code has further strengthened LGUs' powers and responsibilities while overlooking the fact that a number of them are attaining the metropolitan character. No provision, however, has been made to vest appropriate powers and responsibilities best suited to deal with the unique requirements of metropolitan management and development. In fact, serious problems still exist in so far as sharing of powers and responsibilities between the capital city and the surrounding municipalities is concerned as well as in the lack of appreciation to give up some of their powers and functions to a higher jurisdictional body.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

There are at least two areas where amendments can be explored. First, the assignment of urban functions or services to a metropolitan unit ought to be consistent with and complement that of other LGUs or other government agencies. At the very least, the functions can take into account those that are metropolitan in character. Potential services for metropolitan units to assume include land use planning, traffic management, solid waste management, water and sewerage services, transport services, flood control and management. Second, the functional relationship of the metropolitan unit with other government entities must be clear and well-thought for better coordination and maximized benefits. For instance, in the area of budget review, the absence of an institutionalized development planning for Metro Manila was weakened when the Code passed on the review of the LGU budget to the DBM rather than to the MMDA (then MMA). This has institutionalized the disjointedand uncoordinated programming and budgeting process in the metropolis and prevented maximum use of Metro Manila's resources. Had the line of responsibility between the metropolitan unit or organization and the LGUs regarding plailning, programming and budgeting faanctions been recognized and made clear, then key problems and needs arising from the growing urban service and infrastructure requirements in the metropolis could have been strategically formulated. The same lack of institutional linkage with the sectoral line agencies makes it difficult for the MMDA to influence these agencies' priority thrusts. Recognize roles of _litan planning and institutions in the present and future urban managenwnt Urbanization and the rise of new metropolises are inevitable and the challenge of sustainable development in the next century lies in their effective and efficient management. National and regional planners' perspectives must seriously recognize the implications of metropolitanization in their medium- and long-term development planning efforts. The RDC as a nonpolitical entity can be a catalyst for interlocal or metropolitan undertakings in the region. As the development planning and policymaking body in the region, it can support and provide impetus to efforts where local governments are politically constrained to initiate.

MetropolitanArrangementsin the Philippines

Promote researchand deve/opm_ on metwpol/tan p/ann/rig and management modds Literature relating to city or metropolitan planning and management are not that many. In the Philippines, rigorous policy studies are rare and if there are any, most are focused on Metro Manila only. Given the myriad and increasing number of issues and problems of the city and metropolises, studies should be made on a more sustained basis to ably assist leaders in making appropriate policy interventions. Offhand, there are at least three related issues that have to be tackled in the short term. One is the need to look at what a metropolis or a metropolitan unit can or cannot do under the existing legal framework. A clear understanding of this aspect will reveal important issues for intervention by the legislature. Two is the need for a deeper study on the issues brought about by the changes in the institutional dynamics between regional and subregional governments following the emergence of a metropolitan arrangement. The policy study can identify how a metropolitan cooperation can enhance rather than obstruct regional development coordination. Third, financial mobilization under a metropolitan setup or similar inter-LGU arrangement is an important area for research since financial sustainability is the lifeblood of any metropolitan arrangement. Long-term issues can be identified in the areas of financial structure and management, improvement in the administrative capacity to meet the increasing demand for shelter and basic services, improvement of urban information systems, development of urban institutional capacities and issues pertaining to urban environmental management. Finally, the study has also explained that metropolitan planning goes beyond technical development planning, it is often political planning, a relational and prudent approach that sets it into reality and fruition. Sivaramakrishnan and Green (1986) has an interesting description of this: "In reality, metropolitan management is an unglamorous interagency process; its accent is on consensus rather than on command; its quality is a product of perseverance and team

ManagingUrbanizationUndera DecentralizedGovernanceFramework effort; and its success in the long-run is directly dependent on the degree to which that effort can continue to be maintained in the rapidly changing kaleidoscope of metropolitan life,"

A metropolitan arrangement is a crucial beginning of metropolitan development. It can be a passing fancy if the members of the arrangement who hold the key to its full development lose their enthusiasm and zeal to make it work and if the national government fails to open its mind to new avenues and ways of thinking about decentralization and local governance. References ADB (Asian Development Bank). 1987. Urban Policy Issues. Proceedings of the Regional Seminar on Major National Urban Policy Issues, February 3-7. Manila. _.

1994. MegacityManagement in the Asian and Pacifw Region, edited byJeffrey Stubbs and Giles Clarke. Vols. 1 and 2. Mandaluyong City, Philippines: ADB.

Angotti, T. 1993. York.

Metropolis 2000: Planning, Poverty and Politics. New

Bahl, R.W. and J,E Linn. 1992. Urban Public Finance in Developing Countries New York: Oxford University Press. BDUPP (Baguio and Dagupan BLIST. Manila. _.

Urban

Planning

Project).

1994a.

1994b. CAMADA. Manila.

Ganapin, D.J. 1997. Prospects for Greater Public-Private Sector Partnerships. Paper presented at the Conference on Solid Waste Management Capability Building, Cebu City, June 26. Gonzales, E. 1997. Settlements, Growth Zones and Urbanization. Paper presented at the Technical Workshop on Population and Urbanization, PIDS, Makati City, 22 September.

MetropolitanArrangementsin the Philippines Housing

Japan

and Urban Development Coordinating Council / Local Government Development Foundation, Inc. 1998. Metropolitan Manila Management Study. Manila.

International Cooperation Agency. 1994. The Study on the Cebu Integrated Area Development Master Plan. Final Report, Vol. 2. Cebu.

National

Land Use Committee Framework Plan.

NEDA. 1992. National

NEDA (National Economic and Development National Urban Policy Agenda. NEDA Regional Office XI. n.d. Development Program.

Authority).

Physical

1996.

Profile of the Davao Integrated

Republic of the Philippines. 1991. The Local Government Code of 1991. Congress of the Republic of the Philippines of 1987-1992, Manila. Serote, E. 1994. Toward a Nadonal Urban Development Policy: A Conceptual Framework. Pasig: National Land Use Committee. Sivaramakrishnan, K.C. and Leslie Green. 1986. Metropolitan Managcnumt: The Asian Expoqence. NewYork: Oxford University Press. United Nations University. 1994. Mega-City Growth and theFuture. Tokyo: UNU Press.

Chapter

3 Environment and Natural ResourcesManagement: Lessonsfrom City Program Innovations

he enactment of the 1991 Local Government Code brought local government units (LGUs) greater responsibilities to manage their natural resources and the environment. In particular, the following environment-related mandates have been given to the city: Solid waste disposal system or environmental management system and services or facilities related to general hygiene and sanitation (Sec. 17.b.2.vl). Pursuant to national policies and subject to supervision, control and review of the Department of Environment and Natural Resources (DENR), enforcement of forestry laws limited to community-based forestry projects, pollution control law, small-scale mining law, and other laws on the protection of the environment; and mini-hydroelectric projects for local purposes (Sec. 17.b.3.iii). Tourism development and promotion (Sec. 17.b.3.xii); tourism facilities and other tourist attractions, including the acquisition of equipment, regulation and supervision of business concessions and security services for such facilities (Sec. 17.b.2.xi). For some Philippine cities, the enormous responsibilities placed on them have brought more opportunities for greater dynamism and innovation. Strategies employed and programs undertaken vary in

ManagingUrbanizationUndera DecentralizedGovernanceFramework

focus and form depending on the city's stage of development and, relatedly, on the features of the city environmenL For instance, natural resource-rich cities have made the environment the focus of their overall development strategy, particularly in relation to resource conservation and tourism development. Within the same focus, variations are evident in both program content and the institutional dynamics that were involved. Fo r largely urban cities, environmental problems are associated with growth of economic activity and for most of these cities, special attention is given to the maintenance of air quality, cleanliness and managing solid waste. Although strategies adopted differ, all the cities achieved a relatively similar degree of success. A number of these successful programs have features and implementation process that can be considered unique or innovative. While these programs were crafted under the socioeconomic and political milieu of their respective areas, they nevertheless provide valuable insights to other LGUs wanting to better their program design and execution. This paper aims to draw lessons from some selected cities that have undertaken innovative environment programs and to highlight the key elements that have made their programs successful and sustainable. It concludes with a brief account of other environmental management concerns that have not been given significant emphasis and attention or where performance has been short of expectations, and suggests measures to address the same. Selected

City Environmental

Programs

Puerto Princesa City: Oplan Linis and Bantay Puerto Programs There are two major environment programs that Puerto Princesa City has undertaken: Oplan Linis and Bantay Puerto. These have been successfully implemented, bringing national and international recognition to the city. The city has become a source of inspiration to many local governments not only in the area of environmental management but also in the area of local governance. Puerto Princesa's secret for being the cleanest and greenest city in the Philippines-is the sustained implementation of the Oplan Linis Program. The program has significantly remade the image of the city from the haven of prisoners and malaria-causing mosquitoes that it was to what is now the most envied city for its estimable cleanliness and for its reputation as one of the major tourist destinations in the country.

Environment and Natural Resources Management Table 1. Basic Features of Oplan _ Component Cleanliness

Obiectives Maintain cleanliness in all public places

Sagip-Dagat;, Operation Basura

Maintain coastal areas clean

Beautification

Beautify the city

Sanitation

Promote practices

Information and Education

Disseminate information about the program

sanitary

Program Activities

- Street sweeping - Cleanliness contest

in barangays and schools

(local version of Clean and Green Award) - Award for Cleanest and Dirtiest Barangay -_Monthly general cleanin G - Operation of redemption centers in coastal barangays for wastes dumped in coastal areas - Low-cost housing program for _luatters living near the coastal area - Painting of sidewalks - Planting of ornamental plants and trees - Nursery for continuous supply of planting materials (Program buys from children 5 tetra packs for P1.00. They are used to grow seedlings/cutting of plants_) - Installation of garbage receptacles (donated by the business community) along main streets and other conspicuous places" - Putting-up of comfort rooms in coastal and rural barangays - Organization of information team composed of representatives from city government and civic organizations - Tapping government and private entities to assist ill all information-related activities - Airing of a rive-minute issues on cleanliness

Operation Sagip-Hangin

Improve air quality in the city

Solid Waste Management

Improve garbage collection and disposal

Source:

local TV program

to tackle

- Formation of Oplan Linis Families (OLF) in each school composed of a minimum of 50 students providing cleanliness awareness in their immediate neighborhood. Each OLF is required to submit a regular accomplishment report. - Strict enforcement of the following ordinances: Anti-Littering, No-Smoking and Anti Pollution. - Violators are imposed fines and their names are flashed on TV and aired over the radio_ -Daily collection of garbage in the marketplaces and scheduled zone collection in residential areas - Program introduced to produce organic Iertilizex_ fi'om wastes disposed through IRREN Foundation (an NGO). Fox"this purpose, classification of garbage at the household level is slowly being introduced. Target collection in residential areas is once a week.

Oplan Linis Story: The Puerto Prineesa City F_, 1996.

Puerto

Princesa

City Government,

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Puerto Princesa City now claims to be larger than Davao City in terms of land area (253,982 hectares) and, therefore, boasts of being the largest city in the world. Despite its huge size, the city has successfully managed to make the task of cleaning, greening and beautifying itself a not-so-difficult undertaking. The Oplan Linis Program aims to sustain cleanliness and beauty in the city through program institutionalization and community participation. Table 1 presents a summary of the basic features of the program. The program is being managed by a full-time staff headed by a project manager (who, incidentally, is the wife of the mayor), two assistant project managers and a program supervisor for each of the program components, i.e., Cleanliness, Sanitation, SagipDagat (Save the Seas), Beautification, Sagip Hangin (Air Improvement Program), Dog Pound and Information and Edfication. At the lower level of the organization are 50 grass cutters, 70 street sweepers and gardeners, 50 garbage collectors and various workers and volunteers. Program cost at the start of the program in 1993 was P2.1 million. This increased to P6.1 million in 1995, representing amere 1.3 percent of the total budget. Initial program cost was spent on information and education campaign (e.g., media hour, printed materials, consultations, etc.), which were considered essential to make the program effective and successful. In later years, cost for personnel services, mainly for street sweepers, exceeded the cost for operations following the expansion of the program's coverage area. Palawan is considered the Philippines' "Last Frontier." As the capital, Puerto Princesa City considers its critical role as a "steward of (its) biodiverse resources and as the active promoter of the balance of its total ecology" (Puerto Princesa City Government 1997). Faced with illegal activities existing both in the forests and in the seas [e.g., illegal logging, kaingin (slash-and-burn) method of farming, destructive forms of fishing such as use of dynamite and cyanide, muroami], the city has responded to the call of conserving, preserving, rehabilitating and sustaining the development of"its forest and water ecosystem through the Bantay Puerto Program. The Bantay Puerto Program originally had four components: City Forest Protection Project or the Bantay C-4zbat,City Coastal Areas Protection Project or the Ba,ntay Dagat (Bay-watch), Special Task Force Unit and the Special Monitoring Unit. Lately, another component was added, i.e., the operation of the Cyanide Detection Laboratory.

Environmentand Natural ResourcesManagement

Table 2 provides a general description of the Bantay Gubat and Bantay Dagat projects and their accomplishments. The Special Task Force Unit (STFU) and the Special Monitoring Unit (SMU) lend support to both the Bantay Gubat and Bantay Dagat projects. The STFU evaluates and disseminates intelligence information, prepares plan of action relative to illegal activities and performs apprehension or arrest of violators. The unit is a 21-person body headed by a task force leader from the PNP, a civilian task force Table 2. General Information on Bantay Puerto Program Components Program component Bantny Gubat (City Forest Protection Project)

Objectives To address the alarming reduction of forest cover in Palawan that reportedly decreased from 75 percent in 1976 to 50 percent in 1992.

Strategies / Activities

Highlights of Major Accoml_sh_ems During the first 100 days of the program, confiscated 33,302.17 board feet of illegally cut logs, 2,749 pieces of round poles, 3 chain saws and 50 illegally caught wildlife.

Intensify information dissemination campaign regarding preservation and conservation of the city's forests_ Strengthen partnership and cooperation of the city with DENR, DA, DILG-PNP, NGOs and PVOs in the enforcement of forest-related laws_

Instilled in the community that the government is serious in enforcing and carrying out forest protection laws.

To conserve, preserve and rehabilitate the forest areas of the city, particularly in the identified 24

Organize and train 24 community-based forest protectors serving as project managers in the identified critical areas,

environmentally critical rural

Establish four checkpoints in the north and 2 in the

barangays,

south) equipped with radio communication system and motorcycles,

Increased awareness and importance of forest conservation and rehabilitation by instituting the "Pista Y ang Cageban" (Feast of the Forest) held every (2

June 7 to reforest the denuded watershed of Irawan. DENR devolved to the city the management of the Irawan Watershed and the St. Paul

Plan and conduct operations/ raids against illegal activities.

Subterranean National Park (Nagkan Tribe of Palawan, Haribon Foundation and

Seize illegally caught marine products and equipment used in the commission of the

Ulugan Bay Foundation Board Members).

crime and apprehends violator/s. Endorse

its

to authorities

concerned any confiscated property for proper custody. Organize/create a foot patrol group in most critical areas.

sit as

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Table 2 (continued) Bantay D_at (Baywatch)

To lessen, if not eliminate, the depletion of marine resources due to illegal fishing activities

Daily (average of S hours) patrolling of the fbur strategic bays of the City. Intensify information dissemination campaign regarding preservation and conservation of the city's coastal areas, Strengthen

partnership

Maintain six outposts placed strategically in the different bays of the city. Plan and conduct operations/raids against illegal activities, Seize illegally caught marine products and equipment used in the commission of the

Endorse

Daily patrolling of the bays resulted in the confiscation of a total of 482 seacrafts as of end of 1994_

and

cooperation of the city with government agencies especially the Philippine Coast Guard and NGOs.

crime and apprehends violator(s).

In the initial months of the program, the city government passed an ordinance banning the shipment of all live fish and lobster out of the city_

Seized 13 pump boats engaged in illegal fishing activities; 184 pump boats without license/permit from Philippine Coast Guard and BFAR; collection of P309,000 from one fishing vessel for muro-ami fishing within 7-kin boundary of the city and for vessel overload; and from one fishing vessel loaded with live fish without permit and manned by British nationals without passport or working permit_

its

to authorities

concerned any confiscated property for proper custody. Source:

Puerto Princesa City Government Documents Galing Pook Award application materials).

(4th City Sharing Workshop

paper and

Note:

The Gaiing Pook Program is a national program that aims to recognize local governance or best practices in the areas of health services, environmental management, public finance, peace initiatives, integrated approach to development, sociocultural development, employment generation/livelihood and productivity improvement.

leader, 10 PNP personnel and nine civilians. The SMU is composed of 10 monitoring officers tasked to monitor problems in the implementation of the program and gather information on specific areas of concern as directed by the program manager. The added feature in the program is the establishment of the Cyanide Detection Laboratory, which has been accredited by the NBI to assist in legal cases involving cyanide fishing. The whole Bantay Puerto Program is being managed by the city mayor with the assistance of the project managers of each of the major

Environment and Natural Resources Management

program components. The Bantay Gubat project manager is assisted by two project assistants, 24 community forest patrol officers, 24 checkpoint sentries and a project recording secretary. The Bantay Dagat project manager is assisted by two project assistants, seven banca (boat) operators , seven deputy marine guards and a project recording secretary. Bagnio City: Clean and Green, and Eco-Walk Programs The active and substantial involvement of Baguio City's community and the civil society in the affairs of the city government are more than exemplified in many of the cleanliness programs and forest preservation projects of the city. While Baguio City is known by various rifles such as "The Summer Capital of the Philippines," "The City of Pines," "The Garden City," "The Education Center of the North," and "The Regional Center of the Cordillera," the successful implementation of its cleanliness and preservation programs has also given it the title of "The Cleanest and the Greenest City." Maintaining the city clean and green has been a great challenge considering the multiple roles of Baguio City. The city serves as the regional administrative center of the Cordillera region, the commercial and retail trade center for agricultural products of Benguet province, the center for higher learning in the north, and one of the favorite tourist destinations in the country. These roles carry with them a wide array of development activities that invariably put a strain on the city's environment. To lessen the difficulty in carrying out its task, the city government forged strong partnerships with active nongovernmental organizations (NGOs), the media, business sector and the community residents themselves. The Clean and Green Program of the city of Baguio has seven components. Table 3 lists these components and their respective activities and accomplishments. The entire program would not be possible if not for the partnership of the city government, the NGOs (particularly the Baguio Re-greening Movement and the Alay sa Kalinisan) and the national government agencies operating in the city. The organizational structure of the Clean and Green Program shows graphically the extent to which it has involved everyone. Separate structures were established for the Clean effort and for the Green effort (Figures 1 and 2). Barangay/Baguio residents' inclusion in the organizational structure is a recognition of their important role in the success of the .program and its sustainability.

Managing Urbanization Under a Decentralized Governance Framework

Table 3, Baguio City Clean and Green Program Components lh-ogram component Sofid Waste Management

Activities Dally garbage

-- Major accomplishments

collection

117 out of 129 barangays are served with the city's collection system (90 percent)

Orgmaization of Quick Response Team on call for emergency garbage collection especially during peak seasons of summer and Christmas Advocacy campaign through training of barangay residents on the 3Rs of Solid Waste

20 barangays

have attended

as of 1996

Management (Re-use, Reduce and Recycle) Local Clean and Green Contest Annual purchase g-,u'bage ffuck Liquid Waste Management

of one

Installation of more latex_ and secondary sewer lines

Contests held every year in schools, public buildings, barangays, local departments of the city govemmeaat, includingjeepney terminals.

10 sewerage projects completed in 1995 (e.g., installation of 2422.1 lineal meters of sewer pipes, 25 manholes and one communal septic tank, repair and rehabilitation of 70 linear meters of old sewer lines and 256 manholes in various parts of the city).

Intensified monitoring of pollution levels in creeks and natural and man-made waterways within the city

City Ordinance provides for mandatory connection to the public sewer system. City government undertakes regular sampling and testing to determine the bio-oxygen demand and carbon oxygen demand levels of different tributaries in the city_

Environmental Sanitation and Management

Conduct of regular inspections of food centers, recreational facilities, night spots and u_,msient housing facilities, including dormitories and boarding houses in terms of

Organized a special task force that conducts on-the-spot checks on compliance. Conducted regular mad compulsory health testing and training of food handlers.

compliance to health and sanitation standards Abattoir Operations

Establishment and strict maintenance of a cleml and sanitary environment of the new abattoir facility_

New/acility established, which is provided with rails where animals are hanged and slaughtered. This way, floor dressing and carc'asses are avoided, thus

Environment and Natural Resources Management

Table 3 (continued)

ensuring utmost sanitation in the area and fresh and disease-free meat. Liquid wastes and other effluents generated by the abattoir are disposed of through the Sewerage Treatment Plant while solid wastes are collected regularly by garbage trucks for disposal in the city dumpsite-. Part of solid waste is composted for use as fertilizer. Perimeter fencing of the City Abattoir discourage further squatting in its vicinity. Anti-Smoke Belching

Intensified compulsory testing of all motored vehicles especially dieselfed vehicles

Acquired new smoke-testing machine. Intensified testing generated P796,:190 worth of income from fees and fines and more importantly, raised awareness of the city's serious drive against smoke belching and proper maintenance of vehicles. City's inter-agency Traffic and Transportation Management Committee conducted an "Anti-Smoke Belching Contest," a search tot model driver and model uansport association with big cash prizes donated by the private sector,

Pat'ks Maintenance and Reforestation

Regular maintenance of city parks and street islands

Collection and propagation of seeds of ornamental plants and tree seedlings as a continuing activity.

Reforestation

Evaluated success of the city's 57 reforested areas (10 reforested by the city government and 47 by various private organizations). Results showed about 70 percent survival rate representing 27,698 total surviving treesApprehension of 55 persons violating forestry laws and effecting the confiscation of various tools and equipment as well as forest products valued at P46, 322.28 in 1995.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Table 3 (continued) Program

cmnimmmt Advocacy

Activities Tri-media advocacy campaign to generate people participation and, enthusiasm

Major Public Information Office of the City Government spearheaded the campaign that also led to the implementation of the Eco-Walk Program. DECS launched

in the different

elementary and secondary schools in the city the "War Against Waste" projectOffice of City Social Welihrc and Development and Public Employment Services Offices incorporate clean and green agenda in their respective prosa-ams. Source:

Office of City Planning and Development "Always Clean, Ever Green_"

Coordinator

(OCPDC),

Baguio City, 1997,

Financing the program is not solely the responsibility of the city government. Although mainly funded by the city government (17 percent of its annual budget in 1996), barangays and NGOs share a relatively large amount to sustain the program. Table 4 shows a summary of contributions to the program from the various groups in 1996.

Baguio City was a Galing Pook Awardee in 1995 for its program called "Eco-Walk: An Environmental Awareness Program for Children." This program is actually a revival of a similar program in 1992. The 1992 project was started by the Baguio Regreening Movement but not sustained due to lack of volunteer tour/hiking guides. In 1993, an NGO called Timpuyog Ti Iit, whose members were mainly barangay captains, pledged support to the program and assigned its members as lifetime volunteers. They complement the existing volunteers from other NGOs and government agencies that believe in the program's rationale and objectives. Figure 3 shows graphically the process involved and the activities undertaken as part of the Eco-Walk Program. The basic objective of the program is value-formation, which is considered the foundation for the protection, conservation and rehabilitation of the city's environment. In particular, the program

Environment and Natural Resources Management

Table 4. Clean and Green Program

Budget and Sources, 1996

Sources

Amount (P)

City Government

45,000,000

Office of City Mayor General Servii:es Public Utilities and Services

2,000,000 16,000,000 5,000,000

City Architect and Parks Superintendent City Veterinarian City Health Officer Other Departments* Barangays ** .Association of Barangay Councils (ABC) *** Baguio Regreening Movement

12,000,000 2,000,000 4,000,000 4,000,000 645,000 12,080 1,680,000

* All other departments share at least 1 percent of their respective budget to the program, which is then used at least once a month for the massive cleanup of creeks and main thoroughfares. ** The 129 barangays allocate at least P5,000 of their respective budget for the beautification and cleanliness campaign *** The ABC launched "Piso-Piso para sa Kalirlisan," which they turned over to the Alay sa Kalinisan, an NGO leading the clean effort. Source

of basic data: OCPDC

F'_gure

1. Structure

LGU

(1997).

of the

Clean

[

Effort

Scctore NGO/erivate

[

NGA

(ASK) ?day sa Kalikasan

[ ASKThrusts

I Qeanliness Drive

I Propagation of Medicinal Plants

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Figure 2. Structure of the Green Effort [

LGU

]

[

NGO

]

] ] Baguio Re-_gr¢_ningMovement

Technical Committee

[ [ 'AJ

[

I Ways&Memls [ Committee

Re=greening I Committ¢_ I

[ ] [/

[

]

Committee

[

NG-A

[

]

(BRM) I

I Executive

_ ]

I_oxma.tion C_c_tW_u, °n:umcauon

Community

[

[Service Com_nitteeJ I Barmlgay / B_ttio

Re;idents _]"

Source: OCPDC (1997).

hopes to make children aware of the importance of trees and forest and learn how they contribute to the supply of water in the city. Busol watershed was chosen as the site of the eco-tour walk since it is the city's major source of water. However, due to denudation, it barely produces 250 to 300 gallons per minute (gpm) from its original generating capacity of 4,000 gpm. The seven-member staff of the Public Information Office of the City Mayor's Office serves as the coordinator and overseer of the EcoWalk Program. Volunteers who serve as guides of the children in their hikes come from the Timpuyog Ti lit, the Baguio Re-greening Movement (BRM), media practitioners, the Department of Environment and Natural Resources (DENR) and the Baguio Water District. The program started with very minimal funding but as it progressed, there were activities and projects that required bigger funding. A fund drive was launched fbr the construction of a picnic shed, wherein about P50,O00 was raised. The city government now ha_sa regular budget of"P20,000 for the purchase of reforestation tools. The BRM and the Timpuyog Ti lit shelled out PIO,O00 and P30,O00 for the program, respectively. In the future, more funds would be needed for the establishment of a tree nursery, audiovisual equipment for lectures, documentation requirements, office and salaries for a regular staff, and regular forest guards to help protect the children's seedlings and the watershed as a whole.

Environmentand Natural ResourcesManagement

Figure 3. Eco-WalkProgram Essentials

urrl

Source: Various Galing Pook documents

(1995).

The active participation of school children (about 15,000 grade schoolers as of 1995) has reforestated the Busol watershed with about 25,000 tree seedlings. It has reaped socioeconomic benefits. It minimized squatting, logging and forest fires. Because the children initiated the maintenance of the watershed, there were no forest guards needed. This spelt considerable savings to the government in terms of maintenance and security expenses. Most important is the unquantifiable benefits of the eco-walk experience to the children, especially on their present and future regard for the environment. Olongapo City: Solid Waste Management Olongapo City is one of the pioneer innovators in local governance, particularly with regard to solid waste management (SWM). As in most cities, Olongapo has faced garbage management problems--i.e., irresponsible disposal of waste and a disorganized collection system. Part of the problem was the lack of financial resources to put up an efficient system since the cost of available technology and system was beyond the city's financial capacity. Given its meager resources, the city government introduced an innovative program on garbage management. Tile program rests on

ManagingUrbanizationUndera DecentralizedGovernanceFramework

the principle that solid waste management is not the sole responsibility of the local government but is rather a shared obligation with the community. This involved user fees and was therefore initially met strong opposition. However, because the city government showed its sincerity in pushing forth this program, the people were convinced and themselves took the program seriously. In the removal of the US bases in 1991 and the eruption of Mt. Pinatubo, the city took on an even greater challenge of maintaining and improving the city's environmental condition as a major strategy in attracting investors. Table 5 summarizes the innovative features of the program. The city's solid waste management program has been financially serf-sustaining in the first two years of the program through income derived from garbage fees. As shown in Table 6, the city has a net income of about P1.4 million during the first year of the program and more than P500,000 during the second year. From 1992 until 1996, the city incurred more expen-ses than income derived from garbage fees, reaching about P5.7 million in net loss in 1996. The expenditure increase over these years was due to the provision of benefits under the Salary Standardization Law and the hiring of more SWM personnel as demand for services grew with increased population. One will note that garbage fee collection dwindled in 1991 to 1993 because of population loss brought by outmigration from the city following the eruption of Mt. Pinatubo and the removal of the US bases. Thereafter, population grew again (attributed to returning residents and migration from areas displaced by the calamity) side by side with the flurry of development activities and projects in the city with the installation under the Subic Bay Metropolitan Authority. The increasing expenditure of the city for solid waste management and the relatively small hike in the income derived from garbage fees gave the SWM program budget a deficit since 1.992 and contributed to the total city budget deficit since 1995. To raise revenues, new ordinances to amend the 1989 program of fees for garbage collection and use of landfill site were issued in 1997. The mayor consulted the people with these new rates: from P10-20 to P30-40 for households and from P30-P300 to P50-P500 for business establishments.

Environment and Natural Resources Management

Table 5. Olongapo City Solid Waste Management Program, 1989-present Component Collection and

Activities/Innovations Residents required to put garbage

Monitoring

collected. follows:

They

are encouraged

in plastic bags or else they will not be to use the prescribed

plastic bags as

Yellow plastic bags (dry recyclable wastes) to be collected on the following schedule: Zone 1 - Mondays Zone 2 - Tuesdays Zone 3 - Wednesdays Green plastic bags (wet biodegradable wastes) Zone 1 - Thursdays Zone 2 - Fridays Zone 3 - Saturdays Orange plastic bags (hazardous wastes such as hospital and clinical wastes) to be collected on a designated day and to be disposed of through incineration Collection

schedule

is strictly followed

and daily in commercial Garbage uniforms

(twice a week in residential

area_s

zones and markets).

collectors (called Garbage Teehniciam) and truck drivers and IDs (to mark professionalism in the service).

wear

Sanitary inspectors from City Health Office regularly inspect the assigned areas. Citation tickets are issued to residents as_d establishment owners violating the sanitation ordinances. Junk dealers, scavengers, organized and integrated the dumpsites. Information and Value Education

pushcart boys, ambulant and sidewalk vendors in the program; children stAcfly kept out of

Garbage trucks have public address reminders for people to guard their and dispose of garbage properly.

system health,

broadcasting jingles and keep surrom_dings clean

Garbage trucks are emblazoned with slogans Clean" and YBawal ang Tamad sa Olongapo."

Organization

"Keep Olongapo

Essay-writing and poster-making Department of Education, Culture

contests and Sports

conducted (DECS).

though

the

City Tourism Council organized barangays that facilitated the barangays.

cleanliness competitions among 17 adoption of the program by the

Environmental Sanitation axld Management Office (ESMO) headed by the Public Service Officer oversees the entire program. The ESMO is divided into three sections: garbage collection, street cleaning and raotorpool. City Planning and Development Office (CPDO) provides technical assistance through program documentation, interagency negotiation and sharing of the city's experience with visitors and researchers_

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Table 5 (continued) Component

Acfivifie_/Innovafiom

City Health Department inspectors, who issue citation Financing

provides support tickets to violators_

its

sanitary

Garbage fees collected. To make collection the electricity bill:

easier and efficient,

- P10 to P20 for households housing structure; and - P30 to P300 for business type of business

garbage depending

on floor

area

in of

on the

Ordinance No. 31, Series of 1988 (Use of the Material Recovery New Cabalan) amended by Ordinance No. 13, Series of 1997.

Plant at

trucks finzaaced through

estabhshments

fees are included

depending

Garbage Legal Orders

through

donations.

Ordinance No. 34, Series of 1988 (Schedule of Fees t_or the Use of Sanitary Landfill Area at New Cabalan) amended by Ordinance No. 7, Series of 1997. Ordinance No. 1 Series of 1989 (Schedule of Garbage Fees and Other Requirements for Proper Waste Disposal) amended by Ordinance Nos. 6, 8, and 33, SeiSes of 1997. Ordinance No- 56 Series of 1995 (An Ordinance Adopting an Environment and Sanitation Code of Olongapo City), embodying the city residents' goals, aspirations, efforts and discipline with respect fo environment and sanitation management. Source: Various Olongapo

Citygovemment

documents

asld personal

interviews with city officials

Marikina City: River Park Managtmwnt The success of the Marikina River Development Program, or what has been more popularly known as the Save the Marikina River Project, provides fresh perspective and valuable lessons on river rehabilitation and river park management in the metropolis. The program, which started in 1992, has received numerous citations and awards from regional and national bodies and has been an inspiration to the current efforts to rehabilitate the Pasig River, of which the Marikina River is a tributary. The city's project increased in popularity when the Philippine Earth Day Festival in April 1996 and the World Earth Day Festival in April 1997 where held at the river park. The current features of the river park are far better than what were originally conceived. The initial objective of the city leadership

Environment and Natural Resources Management

Table 6. Environmental Sanitation and Management Office Income and Expenditure, 19901996 (in thousands of pesos) Pmtkadam

1990

1991

1992

199S

1994

1995

1996

(C,arbagcFees) Espemilmm

S,755.621 4,384.815

5,713.556 5,0725.625

5239.960 6,031.195

4_12.435 6,050.045

5,126.496 6,992.013

5,590.840 5,721.217 10,193.57811,377.07S

Salaries and Other Personal Services

2,976.495

3,737.870

4,149.577

4,283.927

5,572.468

8,327.621

9,345.924

Gasoline/

1,408.320

1,335.755

1,881.618

1,766.717

1,419.544

1,865.956

2,031.749

1,570.805

659.930

(69,234) (1,2$8.210)

(1,865.516)

Maintenance and Other ExpenSes Net I_ome/

Source: City of Olongapo,

comparative

income

statement

(4,8@2.737) (5,656,455)

(1997).

was just to revive the river and its traditional use as a people's park the way it had been prior to the 1970s--before the squatters settled along the river banks. The task was to simply relocate the squatters and to clean the 22-kilometer stretch, plant shade trees, carve out jogging, biking and walking paths along both banks, set up park benches and install park lights. Today, however, the 12-kilometer stretch has been installed with the following features: a skating rink, picnic and tamping grounds, water fountains, a Roman garden, gazebos, a floadng restaurant (a small ship turned into a restaurant) and a floating stage (used for public performances). The fountains and the ship are lighted to enhance the view at nighttime. The river park project is one of the city's major programs meant to address a broader concern--to improve the living environment and conditions of the Marikina residents. It should be mentioned that about a third of the people are living in depressed areas, many of them settling in disaster-prone places such as those along the riverbanks. Flooding is one of its biggest problems because it is situated on a valley. The overflow from the Marikina river is not only caused by heavy rains. It is exacerbated by the garbage dumped mainly by factories and squatter shandes along the river. A successful resettlement program would be a prerequisite to a more focused river rehabilitation and park development. While incity resettlement was favored by officials over relocation of people outside the city, resetdement efforts were not as easy as it was thought it would be. After a yea r of discussion that necessitated the help of

ManagingUrbanizationUndera DecentralizedGovernanceFramework

community development experts and sociologists, the squatterfamilies were finally convinced to resettle in the Malanday and Tumana areas. Because the land is privately owned, the city government helped the families organize themselves and facilitated their enrollment in the Community Mortgage Program so that they could eventually own the land and house they occupy. One of the major factors that led people to cooperate was the city government's effort to ensure that the resettlement sites have the basic facilities such as water, electricity and sewerage. After the successful resettlement of families, the city government issued an ordinance that penalized garbage dumping into the river. A fine of P2,000 was set for violators. The ordinance was strictly enforced and those who could not pay the fine had the option to pay the equivalent amount in the form of community service. The construction of the five-kilometer biking, jogging and walking lanes passing through 11 of the town's 14 barangays was henceforth pursued. Electric lights were installed and park benches placed along the river stretch. In cooperation with the Department of Environment and Natural Resources (DENR), 800 ornamental trees were initially planted along the riverbanks. Fish seeding (carp, plapla and tilapia) was also undertaken. Marikina river prides itseff as the, only biologically living river in the whole Metro Manila. The rise of numerous structures along the river followed. Included here are the playgrounds, picnic groves, camping grounds, basketball courts, skating rink, floating restaurant and water fountains. From 1993 to 1997, the city government spent about P34.7 million or an average of P6.9 million per year on this project. Among its financial sources are national government entities and about P1.6 million from the Countryside Development Fund of two senators. Donations in kind were given by the city's private sector. For instance, the Chinese Chamber of Commerce built a Chinese pagoda while the Marikina Zonta Club (a people's organization) designed a Roman garden. The Marikina River Park Authority (MRPA) under the Office of the Mayor was created to oversee the whole river park program. It is presently an attached agency of the city government and manned by about 50 personnel. The MRPA coordinates with the City Engineering Office, City Settlements Office, City Health Office and City Public Safety and Security Office and the barangays. The city's radio broadcast facility, DZBE also supports the project through its public service programs aired daily from 6:00 a.m. to 7:30 p.m.

Environment and Natural Resources Management

Marikina City is the only LGU in Metro Manila adopting this form of communication service to reach its constituents. The whole program has achieved more than its basic objective. It caused the recovery of valuable land for public use. It helped restore the people's confidence in the local government. Dredging activities currently being undertaken to alleviate the effects ofLa Nifia can now be undertaken with less difficulty as big equipment can easily navigate around the river park. Lastly, Marikina City's experience provided hope and a tested model for rehabilitating waterways in the other parts of the metropolis. General Santos City: "Adopt, an-Island" Program There are numerous creative ways to beautify the city aside from effective garbage management and the conventional activity of maintaining ornamental plants and trees around the city. General Santos City's simple but creative project provides such example. Historically, General Santos City experienced the same fate as Central Luzon with the eruption of a volcano 90 years ago. Although years have passed, the sight of lahar ashes is still evident especially along the uncemented roads of the city, making the place dusty. Planting and maintaining trees around the city help screen dust from the air. Thus, as early as 1959, tree planting has been part of the major programs of the city. Given the city's economic boom following the implementation of major infrastructure projects and its vision to attract more investments as well as make a mark in the international trade scene, the task of cleaning and greening the city has gone beyond the level of aesthetics. With the support of the city mayor, the City Environment and Natural Resources Office (CENRO) embarked on a program that called for the development and maintenance of parks and road islands in the city. The city has two major parks and seven road islands needing to be developed and maintained. Because of the meager resources of the city and the need for the people to accept the responsibility of managing the environment, a program was launched based on a concept called "Adopt-an-Island." The program enjoins business establishments, academic institutions and NGOs to adopt (i.e., develop and maintain) a park or a road island. The city government formulated a landscape design of the parks and road islands. Then it forged an agreement with any of these said groups wherein the latter would be required to execute

ManagingUrbanizationUndera DecentralizedGovernanceFramework

the plan and sustain the project. The city's only role is to provide planting materials/seedlings and to assist in daily watering activities. To date, agreements with the following groups have been forged: Cutflower Vendors Association, Plaza Photographers Association, Coca-Cola Bottling Philippines, Inc., Rotary Club of Dadiangas, RFM Corporation, Notre Dame Dadiangas College, Mindanao State University-CETD, and the General Santos City Garden Club, among others. A mark bearing the name of a group or association is placed in each island for people to know the original developer and the one responsible for maintaining the island. The city government has also solicited the cooperation of the media, particularly Bombo Radio, to either publicly praise or air the people's complaints regarding this groups' performance. Recendy, Bombo Radio has also ,joined the program and adopted its own road island to develop and continuously maintain. The city government spent at least about P25,000 for each road island as initial funding for landscape design and purchase of planting materials. Thereafter, the government spends only a small amount for watering assistance as the major maintenance cost is shouldered by the adopter or partner group. Other maintenance activities include weeding of the island's peripheries, pruning or trimming, insect spraying and painting of island fences. The presence of road islands in the inner core of the city and the city parks has not only improved the city but has also provided the people with an opportunity to substantially contribute to the city government's program. Las Pifias City: Historical Corridor Project Another creative way to improve the city's environment is to introduce changes in the built structures of the city so as to project a unified architectural theme. This strategy, which is aligned with the city's tourism master plan, is exemplified by the Las Pifias City's Historical Corridor project. Las Pifias is one of the cleanest and greenest places in Metro Manila. It is home to the Las Pifias (St.Joseph's Parish) Church and Bamboo Organ, which gained worldwide fame and regularly draw local and foreign tourists in the area. This led the city to realize its need to further develop its tourism potential by restoring its historical and cultural sites and artifacts.

ManagingUrbanizationUndera DecentralizedGovernanceFramework

importantly to its quality based on clearly defined roles in the entire program framework. The case studies have amply illustrated the tact that local government programs relating to the environment extend beyond normal bureaucratic responsibility, as they demand greater coordination and collaboration of various institutions. The setting up of a framework and organization to effect a properly planned participation and some kind of a machinery to resolve conflicts are therefore important. As have been shown by the city experiences presented, bringing together the various actors and stakeholders in an organized fashion has lessened the cost of implementing the program, helped sustain its implementation (even with change in political leaderships) and impressed on the people that environmental management is a shared responsibility with the city government. Surely, "better participation" is more important than "more participation." Communication: improving knowledge and understanding Effective communication is necessary in soliciting meaningful participation in a program. The cases presented have recognized the crucial role of a well-informed citizenry. A change in the behavior of people through information and greater understanding of the general intents of the program can bring about unfettered acceptance of the responsibilities, costs and inconveniences of any environmental policy or program. The identification of target beneficiaries and communicators of the program was important in designing the communication strategy of Puerto Princesa's Oplan Linis Program and Olongapo's SWM Program. Oplan Linis targets the children as both beneficiaries and disseminators of program information in their respective households and communities. Thus, the Project Team covered all elementary and high schools to discuss the value of cleanliness and oriented them on the program. In each orientation, the team then measured how successful they were able to communicate the program's concept. To do this, children were given biscuits and juice drinks and were then observed if they would find a trashcan for their garbage. If they do so, then the orientation was considered to have achieved its objective. For Oplan Linis, every resident knew about tile program. School children and tricycle drivers were in fact the most active program campaigners and overseers. In Oiongapo, since the major component of the program required some instilled

Environment and Natural Resources Management

discipline and financial sharing by households, the city mayor, along with the city officials, held meetings in each barangay to discuss and elicit suggestions and/or confirmation on the program. Regular barangay meetings allowed discussions and resolution of conflicts. The importance of including information, education and advocacy as an integrated component of an environmental program cannot be overemphasized. In the case studies presented, programs extensively used government and private entities, and especially the media, both in program dissemination and monitoring. For instance, local media was tapped to report violators of the program, as in the case of Puerto Princesa and General Santos. This illustrates that program advocacy and program awareness can be done in more creative ways than one. Leadership:

vision, popular

support,

clout and managerial

_nls?l

From the five city program innovations presented, four leadership themes are underscored: vision, popular support, clout and managerial acumen. The leader referred to here is not necessarily only the city mayor. These leadership themes may be present among other leaders or groups in the city. Visionary leadership refers to the ability to see the big picture of what to achieve and how to get there. "Without vision, people perish" may be a trite expression but the articulation of a vision for the city has propelled the five program innovations to move and get things done. For instance, Puerto Princesa's Oplan Linis and Bantay Puerto programs were formulated based on the city's vision of "Kalinisan, Katahimikan and Kaunlaran" (Cleanliness, Peace and Order and Development). Baguio City's Clean and Green Program and how it is implemented anchor on the city's vision of a "...progressive, peaceful, clean and green Baguit>---a center for education, trade and familyoriented tourism--managed by God-loving and strong-willed leaders in partnership with self-reliant and disciplined citizenry." Olongapo's simple vision--to clean the city and create a better image of itself as a city and people---drove the organization and sustainability of the program. Improving the external environment of General Santos City as a means to attract people and investors and contribute toward becoming a competitive city in the international trade market illustrates than an environmental program can be linked to the city's overall development framework. The shared visirn of the city of Las

100

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Pifias and the Congressional Office "to bring back the old charms of Las Pifias while at the same time raise the quality of life of its people in a way they can be truly proud of" has led the city to implement its Historical Corridor project. Meanwhile, Marikina City's vision of letting people "touch and smell the water" has driven efforts to rehabilitate a dying and unsightly river. Popular support derives itself from the leader's ability to communicate the vision to the people and rally them behind that vision. Credibility and trust on the leader is more important than the leader's personal charisma and proficiency in public speaking. Credibility is gained through consistency in public utterances and actions, in the case programs presented, all of the local leaders in their respective cities have established some form of credibility and trust among its people. While people's belief on the program per se and the benefits that may be derived are important, the leader's credibility is critical in ensuring that the people fully embrace the program and take on a positive attitude toward its success. This is exemplified, for instance, in Puerto Princesa's Oplan Linis Program. Although this was a mere remake of past programs, local leaders showed more political will to see through its implementation by organizing better, issuing ordinances and strictly enforcing them, and appropriating sufficient funds. Clout refers to the leader's capacity to influence critical institutions and individuals to support a program. The ability to influence the City Council is important so that critical legislations or ordinances are passed and budget appropriations are approved. Clout also includes the skill to encourage government agencies, business groups, NGOs and the media to take part in the program in terms of funding and technical services. In this study's cases, city leaders displayed political and administrative clout in undertaking their respective programs. Such allowed the timely passage of needed laws or ordinances, sufficient funding for the program operations as well as enabled the active participation of various groups both in implementing the programs' activities and in providing grants and donations. Managerial acumen refers to corporate and administrative capacity to lead or to intelligenfly choose people who will oversee the program's implementation. From among the case studies presented, Puerto Princesa's mayor personally steered the Bantay Puerto Program. On the other hand, the other programs in this study relied

Environmentand Natural Resources Management

101

upon the leadership of mayoral appointees. It is interesting to point out that program managers do not necessarily come from the city environment office. Puerto Princesa's Oplan Linis program had the First Lady at the helm; Baguio City has the Public Information Officer as coordinator of the Eco-Walk Program; and Das Pinas has the Office of Tourism and Cultural Affairs playing a major role. General Santos, though, had the City Environmental and Natural Resources Officer as program overseer. In O!ongapo, the program overseer was the Environmental Sanitation and Management Office, a unit especially created for the program in coordination with the City Planning and Development Office and the City Health Office. In Marikina City, a parks authority was created to oversee the fiver park program. In general, the management of the programs proceeded under a formal organizational setup within the city government and clear organizational lines with other agencies and institutions. Program design: creative adoption of local culture, values and beliefs The adoption of local values, beliefs and practices can become a creative tool in designing effective and culture-based programs. In Puerto Princesa, for instance, the transformation of the yearly Irawan Town Fiesta into a Pista Y Ang Cageban (Feast of the Forest) incorporated environmental awareness and concern on the need to reforest Irawan into this annual religious festival. In Baguio City, the Eco-walk program has adopted the concept of muyong, an Ifugao term for manmade forests that serve as sources of water for the Banawe Rice Terraces. The term was adopted fbr the planting area in the Busol Watershed designated for the reforestation project of a group of children. As part of the tradition, no one could enter any muyong without the permission of its "owners." Because of the sacredness of this concept, the reforested area gained respect from outsiders and led to the high survival rates of tree seedlings planted. Fund _"

funding sources not limited to city govermnent

One of the big lessons that can be derived from the five programs presented is that the limited financial resources of the local government should never pose a constraint to environmental programs. No matter how costly the program, there are creative means .of fund sourcing and there are alternative programs that can still

102

ManagingUrbanizationUndera DecentralizedGovernanceFramework

achieve the same ends. If the people realize the worthiness of the program, then they can share resources, even voluntarily. The programs presented have shown the creative use of Countrywide Development Fund (CDF), user fees, and donations in kind, and fund drives initiated by various groups and NGOs. Program regularity and institutionalization Successful programs usually stand the test of time. Except that of Las Pifias, the other programs have more than three years of sustained implementation. The secret lies not only in leadership but, more importantly, in undertaking regular activities that can institutionalize the program in the city. For example, Oplan Linis has a regular Saturday cleanup in a designated area, Eco-walk is a continuous program, Olongapo's garbage services follow a regular schedule according to zones, and the General Santos Road Island Program is regularly checked and maintained by the city and the partner institution. National support The support and involvement of the national government in the city programs, though admittely limited, come in various forms. For one, the devolved powers and increased internal revenue allotment (IRA) give cities more clout and resources to undertake the program. This is especially true for those whose annual budget relies mosdv on the IRA. Other forms of support by the national government are the awards and recognition given to program innovators. Conclusion This study identified the elements and the preconditions that make programs successful in terms of goal achievement as well as program sustainability. Also underscored here is the collective or the participative nature of environmental management programs as all sectors of the society can play a dual role: as implementors and as beneficiaries of the program. Managing the environment is a huge task that local governments have to deal with not only because they are mandated by the Local Government Code to do so but more importantly, because failure to address environmental concerns would undermine the entire city's development efforts and affect people's welfare. While each city or

Environment and Natural Resources Management

103

any LGU is expected to craft its own program for the environment, there are instances that interlocal programs have to be made because of the resulting program interdependencies and economies of scale. This is MOSt especially true in solid waste disposal managemenL While many cities have been successful in cleaning their surroundings, the final disposal of wastes has not achieved the same degree of sophistication _s waste collection. Huge costs required in establishing a sanitary landfill and the similarly expensive maintenance requirement pose a constraint on the LGUs to undertake the more environmentally sound waste disposal activities as an alternative to providing areas as dumpsites. Interlocal arrangements show some promise in this regard in terms of joint financing and maintenance. On a long-term view, the management of environment and natural resources would entail the scientific accounting of environmental damages and use of natural resources. It will not only ensure sustainable management of resources and the environment but will also provide revenues for the LGUs when it is used as basis for the implementation of regulatory instruments or other more effective instruments meant to minimize further environmental damage and natural resource depletion. At present, a number of LGUs are already adopting regulatory schemes (e.g., anti-smoke belching, etc.) to avert activities damaging the environment and are also imposing fines and penalties for violators. However, these fines do not reflect the full cost of the environmental damage because these were not based on sound scientific costing. In some developed countries, full cost accounting of environment and natural resources is being used as basis for managing forest resources, minimizing vehicular emissions, reducing industrial effluents, and installing waste treatment plants and facilities, among others. In the Philippines, a number of efforts are being undertaken (e.g., Environment and Natural Resources Accounting Project [ENRAP], Metropolitan Environmental Improvement Program [MEIP] ) which, in the future, can help LGUs improve the management of their respective environment and natural resources in a sustainable fashion. References Baguio City Government. 1997. Baguio City: Always Clean, Ever Green. Office of City Planning and Development Coordinator, Baguio City.

104

ManagingUrbanizationUndera DecentralizedGovernanceFramework

. n.d. Baguio City Profile• Office of the City Planning Development Coordinator, Baguio City.

and

Campbell, T.EJ. 1997. Innovations and Risk Taking: The Engine of Reform in Local Government in Latin America and the Carribean. World Bank Discussion Paper No. 357. Washington, D.C. General Santos City Government. 1997. City Environment and Natural Resources Office Operational Framework• CENRO, General Santos City. Local

Government Academy 1996. Eco-Walk: Environmental Awareness for Children. In renovations. LGA-AIM, Manila.

Marikina City Government. 1992. Program of Government, Major Thrusts/Programs.

1992-1997,

Office of Congressional Representative (Las Pifias). n.d. Las Pifias Historical Corridor• Briefing Materials• Olongapo City Government. 1997. Oiongapo City Solid Waste Management Program. Paper presented during the DENRWorld Bank Conference on Local Governance and Private Sector Participation in Solid Waste Management. Asian Institute of Management, Makati City. Puerto

Princesa City Government• 1996. Oplan Linis Story. Puerto Princesa City, Province of Palawan. • 1997. City of Puerto Princesa: Profile, Development Vision And Strategies. Puerto Princesa City, Province of Palawan. • n.d. Bantay Puerto Documentation Enhancement Project. A project proposal submitted to Gantimpalang Pang-Lingkod Pook, Puerto Princesa City, Province of Palawan. n.d. City of Puerto Princesa Ecological Environmental Program: A Case Study. Paper presented during the 4d_City Sharing Workshop. League of Philippine Cities, Puerto Princesa City.

Republic of the Philippines.

1991. Local Government

Code of 1991.

World Bank. 1992. World Development Report 1992: Development and the Environment. New York: Oxford University Press.

Chapter

4 Health Management: Strategiesfrom SelectedCities Virginia S. Pineda ities are facing the challenges of urbanization and devolution. Urbanization increases the demand for basic services and sanitation facilities. Devolution, on the other hand, gives cities and other local government units (LGUs) autonomy in the mobilization, allocation and utilization of resources. It involves the transfer of power, functions, responsibilities, programs and projects, personnel and assets as well as their corresponding appropriations, from the national government to the LGUs. If LGUs fail to mobilize, allocate, and utilize resources wisely to meet the increasing demand tor health services, the health of the population would deteriorate. Devolution has been met with perhaps the strongest resistance in the health sector. There were fears concerning the health workers' security of tenure, the financial and management capability of the LGUs to sustain the devolved facilities and functions, and the politicization of health services. Consequently, there have been moves for recentralization or suspension of devolution. On the positive side, devolution can facilitate and improve health service delivery. With health workers under the jurisdiction of the LGUs, decisionmaking is faster, which allows immediate action on health needs and problems. Greater accountability to and closer association of local officials with the people put them in the best position to underake health programs that are locally responsive, relevant and innovative (Borlagdan et al. 1993). As devolution proceeded, many local officials complained that the internal revenue allotment (IRA) had been inadequate to cover for the devolved functions and responsibilities. The net transfer of resources (incremental IRA less cost of devolved functions) was negative in 26 out of 76 provinces and in some 20 percent of the 1,500 municipalities in 1993. Although provinces and cities received the same IRA, provinces shoulder 60 percent of the total cost of devolution of health services while cities shoulder only 2.5 percent

106

ManagingUrbanizationUndera DecentralizedGovernanceFramework

(Manasan 1995). Insufficiency and delay in releases of funds adversely affected the implementation of health programs and benefits of health personnel as well as the maintenance and operation of hospitals and other health facilities. Demoralization among devolved personnel, lack of medicines and supplies, and deterioration of services in many of the hospitals turned over to provinces have been reported. Budget allocation for health was also eroded in LGUs where health was not a priority of the chief executives. While there are unmet needs in the health sector, total local government expenditures on health, on the aggregate, have been lower than what the government used to spend before the devolution. On the other hand, the Department of Health's Local Government Assistance and Monitoring Service (LGAMS) reported that in each of the many places where the health sector and the LGU have succeeded in forging a working relationship, there has been a marked improvement in community participation, closer coordination among the various agencies involved in health and health-related programs, more flexibility in program implementation, and better primary health care management. The LGAMS was able to document I.GU success stories under the devolution, specifically, selected municipalities and provinces with innovative responses to devolution's transition problems. This study focuses on model cities--those that have exemplary health strategies that could help other cities cope with the demands of devolution and urbanization. Based on the recommendations of the NEDA Regional Offices, eight cities were selected for the case studies on the health sector. The cities have been winners in competitions for best-practice, such as the GalingPook and Health and Management Information System (HAMIS) Awards (see Asis 1994 and Queta 1994). The next section specifies the type of health services devolved to cities and those retained by the Department of Health (DOH). This is followed by a comparison of population, health expenditures and health performance of the selected cities before and after devolution. The study then presents the cities' various approaches in overcoming common constraints to health financing and service delivery as well as their strategies related to systems/administration. Finally, it provides an evaluation of the applicability of the strategies and suggested improvements.

Health Management: Strategies from Selected Cities -Iealth Services Provided Ynder the Devolution

107

by Cities and DOH

With decentralization, city governments will be responsible for the implementation of primary health care and other field health services, aid to puericulture centers, and provision of medical, hospital and other support services (which include primary, secondary and terdary health care services) in the following health facilities: • * • •

Barangay (village) health stations; Rural health units; City health offices; and City hospitals in highly urbanized cities (excluding the National Capital Region).

those in

Primary health care includes health education; control oflocaUy endemic diseases (such as malaria, dengue, and schistosomiasis); expanded program of immunization (against tuberculosis, polio, measles, diphtheria, whooping cough and tetanus); maternal and child health and family planning; environmental sanitation and provision of safe water supply; nutrition; treatment of common diseases; and supply of essential drugs. It is usually provided by midwives and barangay health workers in barangay health stations (BHS) or rural health units. Secondary health care is given by physicians with basic health training. It is usually done in infirmaries, clinics or hospitals. Secondary level facilities can perform minor surgery and some simple laboratory examinations. Tertiary care is rendered by specialists in hospitals. Tertiary hospitals have staff and facilities to handle complicated cases, intensive and rehabilitative care, diagnosis, treatment, research and training activities. The DOH retains the following functions, services, facilities, programs, personnel and assets: • components of national programs that are funded from foreign sources; • nationally funded programs that are in the process of being pilot-tested or are in the process of being developed; • health services and disease control programs covered by international agreements such as disease eradication programs and quarantinable diseases;

108

ManagingUrbanizationUndera DecentralizedGovernanceFramework 째 regtflatory, licensing and accreditation functions in accordance with existing laws such as Food, Drugs and Cosmetics Law and hospital licensing; and * regional hospitals, medical centers and specialized health facilities.

Comparison Performance

of Population, Health of Selected Cities

Expenditures

and Health

Poputat/on The population of the cities ranged from about 88,000 persons to 247,000 persons in 1995, with Gingoog having the lowest and Butuan having the highest population (Table 1). Table 1. Population of Selected Cities Population City

1990

1995

% Change

Puerto Princesa Lapu-lapu Cotabato

92,147 146,194 127,065

129,577 173,744 146,779

40.62 18.84 15.51

Naga Butuan

115,329 227,829

126,972 247,074

10.10 8_45

82,582 100,379 193,327 60,703,206

87,530 104,909 179,754 68,616,536

5.99 4.51 -7.02 13.04

Gingoog Surigao Olongapo Philippines Source:

1997Phili1_ine

Statistical Yearbook, National Statistical

Coordination

Board.

Puerto Princesa City had the highest increase in population between 1990 and 1995 at 41 percent. In contrast, Olongapo City's population declined by 7 percent for the same period. This may be due to out-migration after the withdrawal of the US Navy from Subic and the eruption of Mr. Pinatubo. For the rest of the cities, the rise in population ranged from 5 to 19 percent between 1990 and 1995. Lapu-lapu City was the most densely populated among the cities under study, with almost 3,000 persons per square kilometer in 1995 (Table 2): It is followed by Olongapo and Naga, each with over 1,500 persons per square kilometer. Puerto Princesa and Gingoog had the lowest density, with population per square kilometer of 62 persons and 216 persons, respectively, in 1995.

Health Management: Strategies from Selected Cities

109

Health expenditures and mortality rates All the eight cities have lower infant and children mortality rates than the average for the Philippines in 1990 and 1995 (Tables 3 and 4). However, Surigao, Butuan and Puerto Princesa have higher maternal mortality rates than the national average for the same years. Nevertheless, they showed a greater decline in maternal mortality rates than the national average from 1990 to 1995 (Table 5). The data on health expenditures and mortality rates (Tables 310) indicate a positive relationship between these two variables. The magnitude of the cities' expenditures depends on the extent of the health problem. Cities that have the highest (lowest) mortality rates also have the highest (lowest) health expenditures. Puerto Princesa had the most substantial increase as well as the biggest h_alth expenditure per capita in 1991 and 1994. The city aimed to reduce its mortality rates, which were the highest among the selected cities in 1990 and 1995. In Olongapo City, the share of health expenditures to total expenditures dropped significantly from 26 percent in 1991 to 8 percent in 1994. The city had the smallest increase in health expenditure per capita between 1991 and 1994. Although it had the highest health expenditure pcr capita in 1991, it ranked fifth only in 1994. It minimized its health expenditures considering that it had the lowest infant and child mortality rates in 1990 and 1995 and ranked third lowest in maternal mortality rate in 1995. Likewise, Lapu-lapu City's low health expenditures may be associated with its having low mortality rates. The city had the second smallest increase as well as the lowest health expenditure per capita in 1991 and 1994. It had the second lowest infant, child and maternal mortality rates in 1990 and 1995. These cities may be deemed as good examples since they have been adjusting their expenditures to the severity of the problem-pending more when the problem is greatest and spending less when the health problem has been minimized. Health

Concerns

st sfor

and Strategies

/th

In several cases, the cities confronted the same constraints to health service delivery. These problems and the corresponding different approaches used by the cities in resolving them are as follows:

110

Managing Urbanization Under a Decentralized Governance Framework

Table 2. Population Density and Land Area of Selected Cities Density City Lapu-lapu Olongapo Naga Cotabato Butuan Surigao Gingoog Puerto Princesa Philippines Source:

1997 Phili_ine

(persons/sq.

kin)

Land Area

1990

1995

2,516 1,872 1,488 722 433 409 204 44

2,990 1,740 1,638 834 470 428 216 62

202.3

(sq. kin) 58_1 103.3 77.5 176.0 526-3 245.5 404.6 2,106.7

228.7

.Statistical Yearbook, National

Statistical Coordination

300,000 Board_

Table 3. Infant Mortality* Rates Infant

Mortality Rates

City

Rank

Olongapo Lapu-lapu Cotabato

1990 41.2 42.0 45.0

1995 30_9 32.8 36.1

% chan_e -25.0 -21.9 -19.8

Surigao Butuan

44.3 45-9

36.3 36.7

Gingoog Naga Puerto Princesa

44.7 49.6 52.7

]. 2 5

1995 1 2 3

-18.1 -20.0

3 6

4 5

36:7 42.2 44.8

-17.9 -14-9 -15.0

4 7 8

6 7 8

Philippines

56.7

48.9

-13.8

* Infant mortality: infant deaths per 1,000 live births. Sources: Herrin (1998) ; National Statistical Coordination

]990

Board.

Table 4. Child Mortality* Rates Child Mortality Rates City

Rank

Olongapo Lapu-lapu Cotabato

1990 54.0 55. I 60.9

1995 40.2 43-0 50_0

% change -25.6 -22.0 -17.9

1990 1 2 3

1995 1 2 3

Gingoog Surigao Butuan

61.1 61.8 65.0

50.2 50.8 52.2

-17_8 -17.8 -19.7

4 5 6

Naga Puerto Princesa

66.6 71.8

56_2 61.2

-15.6 -14.8

7 8

Philippines

79.6

66.8

* Child mortality: number of deaths among children children of the same age range_ Sources: Herrin (1998); National Statistical Coordination

-16.1 less than 5 years Board.

of age

per

1,000

Health Management: Strategies from Selected Cities

111

Table 5. Maternal Mortality* Rates Maternal

Mortality Rates

City

Rank

Naga Lapu-lapu Olongapo Cotabato

1990 150_7 157.7 184.0 182.8

1995 128.1 130_8 138.0 149.9

% chan_e -15.0 -22,0 -25,0 -18.0

Gmgoog Sufigao Butuan Puerto Princesa

190_3 237.7 251.3 253.1

156.1 194_9 201.0 215.1

-18.0 -18.0 -20_0 -15.0

Philippines

209.0

179.7

-14.0

1990 1 2 4 3

1995 1 2 3 4

5 6 7 8

* Maternal mortality: number of materrxal deaths per 100,000 live birtl_s. Sources: Herrin (1998); National Statistical Coordination Board

Table 6. Health Expenditures City

Health 1991

Gingoog Butuan Cotabato Naga Puerto Princesa Surigao Lapudapu Olongapo

and Ratio to Total City Expenditures Expenditures

2,295,264 12,262,330 3,016,387 3,594,597 6,512,001 3,888,840 2,821,137 18,764,434.

(]_) 1994

10,774,523 27,512,850 8,470,312 10,456,201 20,119,268 12,066,714 6,099,927 23,586,670

Health Expenditures (_)/ Total Expenditures 1991 1994 0_06 0.11 0-07 0.07 0.07 0.09 0-07 0.26

Table 7. Ratio of Basic Health and Hospital Expenditures F_.xpenditures 1991 City Naga Olongapo Butuan Puerto Princesa

Basic Health Exp,/Total Health Exp. 0.48 0.44 0.34 0.96

0.09 0.10 0.05 0.06 0.05 0.06 0.04 0.08

to Total Health 1994

Hospital Exp,/ Total Health Exp. 0_51 0.56 0.66 0.00

Basic Health Foxp./Total Health Exp. 0.41 0-41 0.43 0.74

Hospital Exp./ Total Health F_xp. 0.59 0.58 0.55 0.17

Gingoog Cotabato

0.97 0.75

O-00 0.24

0.61 0,95

0.05 0.00

Surigao Lapu-lapu

1.00 0_65

0.00 0.00

0.77 0.88

0.00 0,00

Source: Local

Government

Audit Office (LGAO).

112

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Table 8. Health Expenditures Per Capita, 1991 and 1994 Health City

Expenditures

Puerto Princesa Gingoog Surigao Butuan

Per Capita (_) 1991 1994 61.51 160.21 27.46 124.54 38.31 115-98 52-96 113.20

Olongapo Naga Cotabato Lapu-lapu

95.01 30.58 22.86 18.65

Amount Increase

of (_)

Rank

17 53 34 18

1 5 7 8

111.99 83.96 56.46 36.28

99 97 78 60

1.991 2 6 4 3

1994 1 2 3 4 5 6 7 8

Table 9. Basic Health Expenditures Per Capita, 1991 and 1994 City Puerto Princesa Sufigao Gingoog Cotabato Butuan Olongapo Naga .Lapu-lapu

Basic Health Expenditures Per Capita 1991 1994 59.25 118.66 38.31 88.98 26.65 76_15 17.25 53.59 18.05 48.78 41.88 46.03 14,68 34.68 12.04 31.76

Amount of Increase (_)

Rank 1991 1 3 4 5 6 2 7 8

59 51 49 36 31 4 20 20

1994 1 2 3 4 5 6 7 8

Table 10. Hospital Expenditures Per Capita, 1991 and 1994 Hospital City 1991 Olongapo Butuan Naga Puerto Princesa Gingoog Cotabato Surigao Lapudapu

Expenditures

Per Capita 53.13 34.91 15.55 0.00 0.00 5.43 0.00 0.00

1994 65.12 61.97 49.27 27.38 5,82 0.00 0.00 0.00

Amount Increase 12 27 34 27 6 (5) 0 0

of (P)

Rank 1991 1 2 3 -

1994 1 2 3 4 5

â&#x20AC;˘ _.r__ofbarangay health stations Conducting outreach activities in rural barangays. To deliver basic services to people who live far from government facilities, Gingoog City implemented the Gingoog Total Integrated Development Approach (G-TIDA) in December 1988. The G-TIDA is an outreach program to rural barangays. It is integrated since it provides health medical, infrastructure and other services.

Health Management: Strategies from Selected Cities

113

A G-TIDA core group, organized by the mayor, is responsible for planning, identifying the target barangays, and implementing the outreach program. The core group is composed of the G-TIDA coordinator, the G-TIDA Secretariat, transportation coordinator, lo_sdcs coordinator, and specific service coordinators represented by the department heads of the concerned agencies. The city conducts G-TIDA outreach activities usually once or twice a month. During the G-TIDA Day, members of the team meet with the people and their leaders to discuss the needs and problems of the barangvay, if problems cannot be solved immediately, they are referred to the appropriate agency. The G-TIDA team informs the people about the functions and services provided by each agency in the city so everyone would know which to approach for specific needs. The G-TIDA approach contributed to the building of people's capabilities and participation in local governance. Encouraged and guided by the G-TIDA team, people in some of the far-flung barangays were able to install water pipes connected to a spring using their own local resources and relying on the ba_anihan (mutual assistance and exchange of labor) system. Gingoog's outreach program is now on its tenth year of implementation. It has provided a means for delivering health care services in areas without BHSs. During the early implementation of the program, the G-TIDA team stays for two days and one night in the barangay. However, as requests for outreach activities increased, the conduct of G-TIDA outreach activities is now limited to about one day per barangay. Presently, all the 50 rural barangays have BHSs manned by at least a barangay health midwife and volunteer health workers. The expenses incurred by the various agencies in providing services during the G-TIDA outreach are taken from the regular agency budgets. No new appropriations are provided except for the budget for overhead expenses like gasoline, transportation and food. In 1996, the city government appropriated P189,400 for G-TIDA. Use of barangay halls and rooms of private homesfor BHS. Cotabato City aimed to provide a BHS for every barangay so that the people could have ready access to basic health care services and facilities. However, the city's Office of Health Services (OHS) had very limited financial resources. Its regular budget was just enough to cover personal services and maintenance and operating expenses. In the city's experience, building cost for a concrete BHS was about P100,000.

114

ManagingUrbanizationUndera DecentralizedGovernanceFramework

At most, the city could construct per year. Despite such constraint, nine in 1990 to 35 in 1991.

only three concrete BHS structures the number of BHSs increased from

The OHS overcame the lack of permanent BHS structures by using (free of charge) barangay halls and rooms or spaces in homes of concerned citizens as health stations. This strategy enabled the provision of a BHS for each of the city's 37 barangays. At present, Cotabato City has 37 BliSs and seven BHS extensions. Of these, 23 are permanent structures constxucted by the city while the rest are temporarily placed in barangay halls or private homes. Inadequ_umber of health pexs_nnel Mobilization of health volunteers. The common approach to augment manpower is to mobilize volunteers. Cotabato City activated 100 volunteer health workers, mostly trained hilots (traditional midwives), to assist midwives in the BHSs ..... nilarly, Olongapo has about 300 health vohmteers. For its rescue and emergency medical assistance program, Naga City has 400 trained first responders and emergency medical technician volunteers. The volunteers render free services so the cities save on salary expenses. As token of appreciation, Cotabato City gives each volunteer P500 cash gift during December; Olongapo entitles them to hospitalization benefits; and Naga provides them with uniforms, group insurance, and free fbod while on duty. Organization of women's gnmps. Women proved to be valuable partners of the city governments in the health sector. Olongapo has its Balikatan Ladies of Olongapo Movement (BLOOM). The group has 6,000 members, most of whom are housewives in the community. Its members participate in the city's cleanliness drive and undertake various barangay projects. Members who also serve as health volunteers work without pay as nursing aides in the city hospital and also assist the health workers in the immunization drive, and in the organization and conduct of health classes. Similarly, Lapu-lapu City has its mothers' support groups, composed of 410 members. Health personnel ask help from the mothers during advocacy activities such as feeding the children during nutrition month. Surigao City mobilized the largest number of women for health care. its Primary Health Care Federated Women's Club (PHC) has over 12,000 members as of 1996. This represents about 63.2 percent of the 20,240 households in the city at that time.

Health Management: Strategies from Selected Cities

115

The PHC is a people's organization initiated in 1986 by a City Health Office (CHO) midwife who conducted three-day seminars on health matters and thereafter formed PHC Clubs. The CHO adopted and expanded this strategy all over the city. It appointed a coordinator whose task is to launch PHC clubs. In addition, it provides the training package and resource persons for the PHC classes. Upon completing the course, the participants form a PHC chapter at the pur0k I level and elect a set of officers. As health volunteers, the PHC members are involved in the operation and maintenance of BHS and feeding centers. They record immunization, bring the pregnant women for prenatal checkup, assist in feeding the children, conduct health education activities, encourage and teach plant propagation to those who do not have herbal or vegetable garden, and do the necessary follow-ups, such as on children who have not been immunized. They have also learned to treat common illnesses and make herbal cough preparations and liniments. Since the PHC members work on a voluntary basis, this brought the CHO considerable savings on salaries while having thousands of health workers on call. Involvement of private companies/medical practitioners. Lapu-lapu City asked private companies and institutions to adopt barangays that they could assist in terms of health care needs. These entities help by engaging the services of their own doctors (retainers) to conduct regular monthly free clinic in the adopted barangays and by donating facilities or supplies. One company even handled fogging activities in the entire Lapu-lapu City. At present, 10 private companies and 5 educational institutions have adopted 8 barangays. The Lapu-lapu City CHO also involved private medical practitioners from the Mactan Doctors' Organization and nursevolunteers from the Mactan Community Hospital in the immunization program. It provides vaccines for the group during such collaborated â&#x20AC;˘ program. Moreover, it also requested the doctors and nurse-volunteers to render free services to the barangays. Currently, 50 doctors and about 100 nurse-volunteers give their services for free for such a cause.

A small district within a barangay (village) ; subvillage.

116

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Hiring of temporarypart-time health personngl. To reach more people and serve them better, Cotabato City OHS's target was to have one midwife stationed in every barangay. However, the regular budget could not finance the employment of additional permanent midwives. To solve this problem, the OHS hired casual midwives and funded the salaries from the 20-percent Development Fund. Thus, the city was able to employ 37 casual midwives for its 37 barangays and other casual personnel for the Main Health Center starting 1993_ Salary expenses for these personnel totalled P2.5 million yearly. For its Satellite Clinics Project, which was also financed from the 20-percent Development Fund, Puerto Princesa City hired five doctors on contractual and part-time basis. At present, it has five strategically located satellite clinics. Each doctor ys for two days a week in his/her assigned satellite clinic. For the rest of the week, he/ she is free to work in hospitals or engage in private practice. The city government pays each doctor a monthly salary of P10,000. The schedules of the doctors in the satellite clinics are synchronized to maximize their availability. For example, in one satellite clinic, the doctor's schedule is Monday and Tuesday. In the nearest satellite clinic, the doctor's schedule is Thursday and Friday. During the days when the doctor assigned to a satellite clinic is not, scheduled to come, tile patient can go to the other satellite clinic and avail of another doctor's services. Lack of emergencyJl3_]igal2_s_ Emergency Rescue Naga (ERN). In April 1991, the Naga City government initiated the establishment of the Emergency Rescue Naga (ERN) under its Disaster Preparedness Program. The ERN is a quick response unit led by the Naga City Hospital personnel. It provides emergency medical assistance, rescue services, and transport to a hospital. It also gives medical backup assistance to events and conducts regular training on Disaster Preparedness and Management to ERN volunteers and various groups. The ERN has two telephone hotlines and two VHF controls. Its volunteers are equipped with beepers. Average ERN response time is 3-5 minutes within the city proper and 30 minutes for the farthest mountail_ barangays some 17 kilometers away. As the ERN has become metrowide, calls come not only from Naga City but from neighboring municipalities as well. Within Metro Naga, an extensive radio network links all offices of the mayor, the ambulances, and the police and fire

Health Management: Strategies from Selected Cities

117

stations. Handheld radios were also distributed to key personnel of each LGU. Of the 14 LGUs comprising Metro Naga, only four have fire protection bureaus and five have ambulances. Making the ERN metrowide enabled sharing of these limited facilities and magnified their benefits. The ERN's core staff includes a paramedic, a driver, and volunteers. Regular hospital staff, numbering 40, are on call. It has 400 trained First Responders.and Emergency Medical Technician volunteers. Its participating partners include the Philippine National Police, Bureau of Fire Protection, City Disaster Coordinating Council, Task Force COMET (for calls involving peace and order problems), and other civic organizations equally prepared to serve when disaster strikes. The ERN started with only one ambulance. At present, its facilities consist of three ambulances, one all-terrain rescue vehicle and one rubber boat stationed at its base at the Naga City Hospital, and a trauma van posted at the Naga City Bureau of Fire Protection. All ambulances are on call 24 hours a day and manned by a crew of three per vehicle. The city government spent a total of P150,000 for ERN for 1997. For 1996, the ERN responded to 2,257 emergency and transport cases or an average of 6.2 trips per day. It has provided valuable rescue services during calamities. For example, when Super Typhoon Rosing struck Naga in 1996 and floods rose to more than five feet, ERN rescued and evacuated about 310 families or more than 1,700 persons. In recognition of its exemplary performance, the ERN was honored with several awards. These include the Galing Pook Award (Top Twenty) in 1994, Disaster Management Award (Regional Level 1995 and 1996, National Level 1995) and Alay Buhay Award (given by thc Department of Health in 1996). Puerto Princesa City's satellite clinics. The city has five strategically located satellite clinics to serve far-flung rural barangays that do not have access to health services. These clinics handle emergency cases and simple illnesses. For more serious or complicated cases, the clinics have ambulances ready to bring the patients to hospitals. In the absence of telephones, the satellite clinics use radio communication equipment. Each barangay and tribal community is provided with hand-held radio (VHF transceivers). Emergencies are reported to the barangay chairperson who then calls the nearest satellite clinic for an ambulance and health personnel. If patients

118

ManagingUrbanizationUndera DecentralizedGovernanceFramework

require hospitalization, radio communication enables the clinic to make an advance call to the receiving hospital. This gives the hospital time to prepare and have a team of medical personnel ready for the arrival of the patient from the rural barangay. Each satellite clinic is manned by two midwives, a radio operator, a driver and a utility man. A doctor stays two days a week and a dentist comes every two weeks. To accommodate patients who are too weak to move or are in need of further observation or awaiting transport, each clinic is equipped with four to five beds, These patients are confined in the clinics for about one to three days. From 1993 to 1997, the clinics have served an average of 47,000 patients per year. Most cases attended to were respiratory infections and other simple illnesses. The clinics serve as a vital link to the city's referral system. They resulted in an increase in the reported emergency cases and a decline in the number of patients with simple illnesses going to the hospitals. The satellite clinics project was one of the top 20 Galing Pook winners in 1996, For 1997, the budget fbr this project was P6.2 million. __int an daaagmen/afiaQ Barangay funds for health. Olongapo requires its barangays to allocate 5 percent of their IRA to health and welfare. Drug allocation to the barangays are sourced from this fund. In Cotabato City, the barangays also finance the medicines. In the case of Lapu-lapu City, the barangays provide the allowance for barangay health workers. Depending onthe budget, the allowance ranges from P400 to P1,500 per month. Sourcing funds from the barangays reduces the financial burden on the cities and encourages greater involvement of barangay officials in health matters and in monitoring the activities of the barangay health workers. 20percent Development Fund. Cotabato City and Puerto Pfincesa City used the 20-percent Development Fund to be able to hire temporary health personnel and set up satellite clinics, respectively, which otherwise could not be financed from their regular budget. Contributions. Financial constraints were somehow alleviated by contributions. In Surigao City, the Barangay Environmental and Sanitation Implementation Group (BESIG) members contribute labor services while the government provides fimds for small infrastructure projects, such as construction of health stations and feeding centers. The city's PHC Federated Women's Club obtained P1.5 million for

Health Management: Strategies from Selected Cities

119

the construction of its training center from a senator's Countrywide Development Fund. Under the share-food project of a Butuan City barangay, wellto-do families sponsor malnourished children for three months. During this period, the sponsoring family feeds a child every mealtime. In Lapu-lapu City, private companies and congressmen contribute for the milk feeding of preschoolers and Grade 1 pupils while a food manufacturer regularly provides noodles for children's feeding. They also donate facilities or supplies to barangays. Strategies

to Systems Administration

Regular visitatlon/interaction with the barangay residents To identify the people's needs and ways of improving the delivery of health care services, the Lapu-lapu city health officer toured all barangays for one month. He traced the city's low performance in the Expanded Program of Immunization (EPI) and the peoples' limited access to health care services to the absence of a specific schedule for immunization, the doctors' unavailability, and the people's lack of interest. The CHO therefore set a permanent schedule for the immunization and the doctors' visits and encouraged people to go to the BHS and avail of health care services. As a result, Lapu-lapu was awarded the Most Accelerated City in EPI in 1991. At present, the city health officer still goes to the barangays three to four times a week to check on the status of programs being implemented. The mayor also accompanies the CHO to the barangays about three to four times a month. The Lapu-lapu City health officer also conducts a barangay assembly meeting every quarter. He presents the current health programs and projects initiated by the government and solicits from the community their health problems and priorities. Through the assembly, the community participates in coming up with solutions to address its own problems. In the case of Olongapo City, the mayor goes to the barangays, together with all the department heads, to personally see the people's situation and needs. All the 17 barang, ays are visited within one quarter. During barangay consultations, the people inform the mayor of their problems and needs. The department head concerned is then tasked to act on these matters the following day. The people report to the mayor any problems that remain unsolved.

120

ManagingUrbanizationUndera DecentralizedGovernanceFramework

.Integrated approach Gingoog City opted fbr an integrated approach to its outreach program to rural barangays. Its officials recognize that there are problems that can only be solved by several agencies working together. One example is the malnutrition problem. The City Health and Social Welfare personnel address this problem by feeding malnourished children, teaching mothers proper nutrition, and educating people about thmily planning. Stafffrom the agriculture department are also needed to teach people how to plant and grow nutritious food. Infrastructure services are required to construct health centers and water systems. Olongapo City, on the other hand, strengthened the linkage between health and sanitation by integrating its environmental management program with health activities. The CHO plays a major role in the city's solid waste management project. Its sanitary inspectors regularly check their assigned areas and issue citation tickets (fines) to residents and owners of business establishments who violate sanitation ordinances (such as having unclean premises and putting out garbage outside of the scheduled collection time). The combination of health and environmental management resulted in the reduction of sanitation-related diseases such as l_Â˘phoid fever and paratyphoid infections from 75 percent in 1988 to 9 percent in 1995 per 100,000 population. Chtstering, of barangays For more effective supervision and monitoring, the Cotabato OHS grouped its 37 barangays into seven clusters. Each duster is headed by a coordinator who supervises and monitors the activities of his/her BHS, and barangay midwives. Dividing the work of supervising and monitoring the 37 barangays among seven coordinators i_tcilitated these tasks. Because each is now focused on only a few barangays, coordinators can immediately respond to the problems and needs of the barangays within their respective clusters. Planning, monitoring and activities

and evaluation

of programs

_..minats / wo r_ksh_o_ps Butuan City Nutrition personnel and Department of interior and Local Government (DILG) staff conduct nutrition program

Health Management: Strategies from Selected Cities

121

planning seminars with barangay leaders. They compare the nutritional status of the puroks in the barangay and guide the leaders in making local plans for each quarter. I.ocal leaders are asked to identify problems, think of solutions, identi_ funding if needed, assign people to handle the problems, and make a timetable. The Cotabato OHS conducts semi-annual and annual reviews of its programs, activities and performance. Through the workshops, the OHS staff and health workers learn of better methods as they listen to lectures, interact with "each other, share their experiences, problems and solutions. The workshops therefore serve as an effective monitoring and management tool.

Regtttar_mee gs In Surigao City, the PHC chapter's monthly meetings serve as a venue to identify and discuss community needs and problems, solutions, development projects, and plans at the puroklevel. To ensure prompt action and accountability in implementation, the PHC uses a monitoring chart specifying the problems or needs, the steps required, the persons responsible for each step, the target completion date, and the plans that have been accomplished. Monthly staff meetings, in addition to report submission, are also conducted in Olongapo City to monitor, compare and evaluate performance in the barangays. Likewise, health personnel and workers in each of Lapu-lapu's eight districts and nutrition workers in each of Butuan's 10 barangay clusters also hold monthly meetings for the same purpose. Accordingly, causes of low accomplishments are identified and appropriate actions are undertaken, resulting in a better performance.

Surigao City's sustained implementation of the community data board enables it to know the health status of each household and identify their needs. Each household is represented in the data board by a small hut. The hut shows the house number, the name of the family head, the health concerns, and the quarterly period covered. For comparison, the previous year's quarterly performance is included as baseline data. The community data board is updated every quarter through a survey of all households. The survey covers health concerns such as pregnancies (pre/post-natal), immunization and nutritional status

122

ManagingUrbanizationUndera DecentralizedGovernanceFramework

of children, garbage disposal, water source, occurrence of diseases, PHC health insurance membership, and availability of toilet, herbal and vegetable garden. For each health concern, the health worker and the assisting mothers assign a colored circle to indicate health status. The color codes, their meanings and some examples of their application in different health concerns, are as follows: Color Blue Yellow Green Red

Meaning Not Applicable Improving Safe Danger

Example Nobodyis pregnant in the household Degreeof Malnutritionchangedt_omsevereto mild Childrenare fully immunized No PHChealth insurance

By looking at the red circles, the health personnel are alerted on the needs of each household. The concerns of the purok can also be prioritized according to the number of red circles. The health concern with the most number of red circles is considered as the top problem. Comparison with the previous quarter will also show where performance has improved or deteriorated. Recognition of outstanding and worst performers In Surig_ao City, outstanding perfbrmances are recognized based on how the PHC chapters or members conduct health-related programs, projects and activities such as the most number of babies immunized and the most number of sanitary toilets constructed. Awards are given to the Ten Outstanding PHC Chapters, Five Outstanding Workers, and Outstanding Couple during the PHC annual convention. The awardees receive prizes in cash and in kind. Butuan City conducts an annual contest for the most outstanding barangay, known as the Search for Bulawanong (Golden) Barangay. Every quarter, the performances of the barangays are evaluated using various criteria such as prhnary health care activities, food production and livelihood programs. Prizes for the winning barangays range from P50,000 to P100,000. The city also ranks barangays in terms of rate of malnutrition and announces the poor performers during the barangay captains' meetings. The problems of these barangays and appropriate action plans are further discussed accordingly.

Health Management: Strategies from Selected Cities

123

Recognition of the outstanding and worst performers motivates barangay leaders and constituents to give their best performance and cooperation in the implementation of programs and projects. Applicability

and Suggested

Improvements

Gingoog City's outreach method (i.e., G-TIDA) of providing health care services is useful as temporary measure only for coping with the inadequate number of BHSs. The long-term solution is to provide additional BHSs to reach all barangays. People benefit from the curative and preventive health services provided during an outreach visit but there are health services that have to be done on a regular basis. The G-TIDA approach may be adopted by cities that are in the process of setting up additional BHS structures or looking for a facility to house, even temporarily, the BHS. To sustain health activities initiated by the outreach team, the CHO could train local residents as health workers and nutrition scholars. It could also form and mobilize people's organizations. Cotabato City's strategy of using barangay halls and rooms or spaces in private homes as BHSs is a sort of progression from the GTIDA method. The strategy enables regular provision of health services rather than a one-shot approach. Another alternative is to rent a space for the BHS. Since the barangay will be the beneficiary of the BHS, the OHS, through the mayor or sanggunian, may ask the barangay officials to take the lead in finding a suitable place for a BHS. Equally important as having a BHS facility is the awailability of health personnel or workers to deliver the health care services. Mobilization of volunteers and mothers in particular is a good way to supplement the existing health manpower resources while providing the city considerable savings in salaries. Likewise, Lapu-lapu City's utilization of free services of private medical practitioners and doctors of private companies does not require any cost. The hiring of part-time doctors, as practiced by Puerto Pfincesa, enables the provision of curative services in the barangays. BHS personnel are mostly midwives who mainly focus on preventive health care. Because of the availability of doctors in the satellite clinics, the number of patients going to the hospitals for consultation and minor illnesses was reduced. Such strategy may also be extended to other health personnel such as dentists and medical technologists. Medical

124

ManagingUrbanizationUndera DecentralizedGovernanceFramework

personnel serve a number of barangays on rotation basis. The barangays covered may contribute to the salaries of part-time docto1_ and other health personnel. The providers of emergency medical assistance--Naga and Puerto Princesa--could learn from each other. Puerto Princesa could follow Naga City's mobilization of volunteers to handle emergencies. On the other hand, Naga City could station ambulances in strategically located barangays, as done in Puerto Princesa's sattelite satellite clinics, or in the farthest barangays. This way, the ambulance need not come from the city proper. Instead, any ambulance nearest to the place of emergency can respond immediately, thus saving on travel time. The cities in the case studies provide free services and medicines in their health facilities (BHSs and satellite clinics) and in the use of ambulances. In some cases, they were able to obtain cash and in-kind contribution from individuals or priwate companies. However, another option to source funds is cost-recovery, specifically by charging fees for the medicines, use of ambulances and medical services. Only those who are really indigent may be exempted from paying. This suggestion, however, requires a system for determining the people's capability to pay. Conclusion Like all LGUs, the cities in the case studies faced challenges arising from the devolution of functions. They were also confronted with various constraints to the delivery of health care services. Because of their ability to overcome these limitations and make devolution work to their advantage, they can be considered as model cities for others to emulate. Devolution is a step toward the fulfillment of the DOH's vision of"Health in the Hands of the People" by year 2020. In the course of the devolution, the government devised various measures to assist the LGUs. To advise the LGUs on health plans and budget, the 1991 Local Government Code provides for the creation a Local Health Board per LGU composed of local chief executives and health officers, representatives from the DOH and the private sector or NGO. To ensure the speedy resolution of devolution-related issues and personnel problems, Transition Action Teams at the provincial and regional levels have been created. The DOH also established and tapped the Local Government Assistance and Monitoring Service to attend to local government concerns. It also provided for Comprehensive

Health Management: Strategies from Selected Cities

125

Health Care Agreements, wherein priority health programs are implemented through DOH and LGU cooperation. A number of studies have identified some remaining issues that should be addressed so that devolution could work well [Legaspi (1995), BriUantes (1997) and Gaffud (1997) in Herrin (1998)]. Specifically, the following measures are needed: * resolution of the issue of the inequitable distribution of IRA shares vis-a-vis devolution burdens (IRA reallocafion bills are currently pending in Congress); * technical assistance to LGUs in exploring alternative ways for raising additional financial resources and in improving their capability in the management of devolved hospitals; * greater participation of NGOs and people's organizations in local special bodies; and * development of alternative modes of intergovernmental cooperation to deal with issues of service delivery and monitoring that cut across jurisdictional boundaries and to consolidate and strengthen efforts in advocacy and social mobilization. Meanwhile, the DOH could jointly undertake with the LGUs revenue enhancement projects in devolved hospitals and other facilities just as it has done in its retained hospitals such as the Rizal Medical Center in Pasig City and the Ilocos Regional Hospital in La Union. It could provide technical assistance in improving pricing, billing and collection systems of devolved facilities. Moreover, the DOH could help enhance the LGUs' capability in managing devolved facilities by providing Continuous trainings to LGU officials and personnel. The model cities provide some useful ways _br dealing with devolution issues. In general, their leaders and health officers promoted good management by interacting with the people and finding out their needs and problems. To alleviate financial constraints, they obtained funds and other forms of assistance from private companies, congressmen, and civic-minded individuals. Furthermore, they encouraged people to participate in the delivery of health care services by mobilizing volunteers, women's groups, and private medical practitioners. Inter-LGU cooperation was also achieved in the provision of emergency rescue services, as in the Case

126

ManagingUrbanizationUndera DecentralizedGovernanceFramework

of Naga City's ERN which has evolved into a Metro Naga activity involving a total of 15 LGUs. With the political will of leaders, commitment of health officers, and people participation (as exemplified by the model cities)n supplemented by national government support in terms of DOH assistance and equitable IRA distribution--and given sufficient dme for adjustment, devolution could work well and result in the improvement of health service delivery to the people. References Asis, M. 1994. Community-based Initiatives in Health: Development, Growth and Transformation. Occasional Paper No. 8. Manila: Department of Health (DOH)-Health and Management Information System (HAMIS). Borlagdan, S., G. Gabronino and A. Tracena A. 1993. Health Service Delivery: Issues, Problems, and Prospects of Devolution. Philippine Journal of Public Administration 37 (1). Herrin, A. 1998. Beyond 2000: An Assessment of the Health, Nutrition and Education Sectors, 1992-1996. Unpublished PIDS paper. Local Government Assistance and Monitoring Service (LGAMS) n.d. Devolution Matters: a Documentation of Post-Devolution Experiences in the Delivery of Health Services. Manila: Department of Health (DOH). n.d. Health Services Department of Health.

and

Local

Autonomy.

Manila:

Manasan, R. 1995. Fiscal Decentralization: The EarlyYears of Code Implementation. Development Research News, Vol. 13, No. 4. Makati City: Philippine Institute for Development Studies. NCSB (National Statistical Coordination Board). Statistical Yearbook. Makati City: NSCB.

1997. Philippine

Quieta, R. 1994. Health Strategies and Interventions: Extended Case Studies on Good Health Care Management in the Philippines. Occasional Paper No. 9. Manila: Department of Health (DOH)Health and Management lnformatinn Sv._tem (HAMI.q_

Chapter

5 Local Efforts in Housing Provision Anicia C. Sayos, Ross Q. Quisao and Rosario G. Manasan Introduction

urbanization, resulting in a number of serious problems. n some placed cities, economic growth opportunities accelerated .These extreme pressure on urban services and infrastructure. Some of the urgent tasks that local government units (LGUs) in urbanized areas now face include coping with the demands of increased employment opportunities; insufficient housing (aggravated by high rental and land costs); congestion, pollution and other forms of environmental deterioration, lack of health and sanitation facilities as well as of peace and order. With the passage ot the Local Government Code (Republic Act 7160) in 1991, managing local projects to ease these urban problems has become more challenging. The Act mandates LGUs to discharge functions and responsibilities previously performed by national agencies in the delivery of basic services and facilities, including low-cost housin_ projects. The Code specifically states: Chapter 2. - Section 17 (a) "Local government units shall endeavor to be serf-reliant and shall condnue exercising the powers and discharging the duties and functions currently vested upon them. They shall also discharge the functions and responsibilities of national agencies and offices devolved to them pursuant to this Code. Local government shall likewise exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or incidental to efficient and effective provision of the basic services and facilities enumerated herein.

ManagingUrbanizationUndera DecentralizedGovernanceFramework (g) "The basic services and facilities herein enumerated shall be funded from the share of local government units in the proceeds of national taxes and other local revenues and funding support from the National Government,..." Strengthened by these provisions of the Code, a number of LGUs have successfully provided the much-needed housing to the less-privileged sector of their communities. This paper presents an overview of the existing knowledge and policy experience in local housing finance and provision considering the recent decentralization initiadves and the notable innovations introduced in the cities of Puerto Princesa in Palawan, Naga in Camarines Sur, and San Carlos in Negros OccidentaU The next section of this study presents its objectives. The third section describes the level of urbanization and housing status of the cities under study. The fourth section documents the different approaches cities used to help ease their housing problem. And the last section highlights the key concerns and issues culled from the experiences of these cities. Additional concerns in urban housing strategies are also incorporated in this section to provide LGUs more options in addressing their respective housing problems. Objectives This study's main objective is to document the housing strategies and processes used by model cities to meet the challenges of rapid urban and population growth. This will examine the "replicability" and "adaptability" of the housing programs by other urbanized LGUs by exploring: 1) The key elements of the model cities' local housing initiatives; 2) The innovative manner by which these housing schemes were implemented in terms of financing and management, catalyzing the institutional involvement of other levels of government, private and government shelter agencies, nongovernment organizations (NGOs) and people's organizations (POs); and

1All three cities are classified as fast income class cities as of 1996.

Local Efforts in Housing Provision

129

3) The extent to which LGUs approach the full utilization of the authority and responsibilities in social service provision and management that are assigned to them under the Local Government Code (LGC). It is hoped that through a comparative discussion of the strengths and weaknesses of the programs in relation to the capabilities of the implementing LGUs, others may be guided in pursuing their own programs. The study does not prescribe but merely provides options on the type of housing program strategies other LGUs may find fit for their needs. Urbanization and Housing Needs The country's population increased from 36.7 million in 1970 to 48.1 million in 1980 and 60.7 million and 68.6 million in 1990 and 1995 and is projected to reach 76.3 million by the year 2000. 2 Twentysix (26) out of the 65 cities in the country in 1995 (Appendix 1) are classified as 100 percent urban. With most of the population living in urban areas, one of the significant areas of concern is the settlement of the urban poor as growing urbanization and poverty created serious shelter problems. The rising costs of land and construction materials especially in urban areas have deprived the "vulnerable sections of society" of the chance for available self-help housing. Housing costs rise due to land value speculations, and the problem is aggravated further by the high rents in the cities. Under this situation, the informal settlers are left with no choice but to squat. Generally, squatters or informal settlers are those people occupying government land and structures; those residing in reclamation areas and danger areas those affected by the road-widening project of the government; and those who are squatting in privately owned land. Ways to ease the burden of homelessness in the country have been the national government's concern as early as 1938 with the creation of the People's Housing Corporation. Later, in response to other shelter requirements, related housing agencies were created, including the National Housing Authority (NHA). Another law,

2 1997 Philippine Statistical Yearbook, National

Statistical Coordination

Board.

130

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Executive Order (EO) No. 90, was issued on December 17, 1986 to identify and define the mandate of government housing agencies s in ensuring the accomplishment of the National Shelter Program (NSP). The NSP is a comprehensive program aimed at assisting the lowest 30 percent of the income population with an affordable housing package 4. A more recent Act is the Urban Development and Housing Act (UDHA) of 1992, which provides the fi'amework ['or a continuing urban development and housing program and mandates the LGUs to take a principal role on the provision of housing services. Table 1 shows the degree of urbanization 5 of the three cities included in this study. Although San Carlos City is not as highly urbanized as the other two cities (with its urban population accounting for only 36 percent of total population in 1995), its "homeless" population are scattered all over the city. From 726 squatter households in 1992, the figure rose more than fourfold to 3,233 in 1995. Note that the number of household in owner-occupied dwellings rose from 19,889 in 1990 to 20,390 in 1995, reflecting an increase of less than 3 percent.

"_The key housing agencies of the National Shelter Program (NSP) are the National Housing Authority (NI-_), National Home Mortgage Finance Corporation (NHMFC), Housing and Land Use Regulatory Board (HULRB), and the Home Insurance and Guaranty Corporation (HIGC)_ 4 Zorayda A_CJklonzo in "Developments in Philippine Housing Finance" categorized the Philippine housing market into threc types: the ultra-poor or marginalized sectorwho cannot afford to pay for any Lype of housing; the low-income sector with low affordability but who can pay given file right package and some measure of financial assistance; and the middle/high income sectors who can afford to borrow at. market rates. _â&#x20AC;˘ The National Statistics Office defines an area as urbanized if it has the following characteristics: 1. In their entirety, all cities and municipalities having a population density of at least 1,000 persons per square kilometer_ 2- Poblaciones or central districts of municipalities and cities which have a population density of at least 500 persons per square kilometer. 3. Poblaciones or central districts regardless of the population which have the following: a. street pattern, i.e., network of street in either parallel or right angle orientations. b. at leastsix establishment, (commercial, manufacturing, recreational and/or personal services) ; and c. at least thrcc of the following: (1) a town hall, church or chapelwith religious services at least once a month; (2) a public plaza, park or cemetery; (3) a market place or building where ta-ading activities are cm_ied out at least once a week; and (4) a public building like a school, hospital, puericulture, and health center or library. 4. Barangays having at least 1,000 inhabitants that meet the conditions set forth in 3 above, and where the occupation

of the inhabitants

is predominasafly

nonfarrniag

or nonfishery.

Local Efforts in Housing Provision

131

Table l. Status of Urbanization City

Puerto Princesa Naga San Carlos

Population

LandArea (sq kin)

1990

1995

92,147

129,577

115,329

126,972

105,713

101,429

Population Density (person/sq. kin) 1990

2,106.7 77_5 451.3

1995

% Urban Population 1990

1995

43.7

61.5

70.7

58.0

1,488.1

1,638.3

100.0

234.2

224.7

38.3

36.4

Naga, being the center of trade among the three cities of Region V, also has the highest city population density among our three case studies. It is considered the most congested, population-wise, and has been classified as 100 percent urban since 1990. With a land area of only 77.5 square kilometers, Naga's 1995 population is about as large as that of Puerto Princesa, which has a land area of 2,106.7 square kilometers. Thus, Naga's population density is almost 30 times that of the latter. It is estimated that 25 percent of those who reside in the city's 21 urban barangays are either squatters or slum dwellers. Naga City's 1996AnnualReport states that the city's urban poor population ranges between 4,000 and 5,000 families compared to only 2,266 in 1980. While the city has granted business permits to 35 subdivisions (of which 27 are completed) covering a total area of 855.38 hectares to date, only 72 percent of Naga city households actually own or are amortizing their respective dwelling units, and 44 percent are amortizing their home lots. The survey conducted in 29 priority areas by the Office of the Mayor of Puerto Princesa in 1993 reveals that there are 5,174 households in 4,352 structures needing housing assistance. In that year, 912 illegal structures were demolished and a total of 901 families were assisted. The city projects that for the period 1995-1999, a total of 6,473 housing units or 1,295 units a year would be needed. These projected figures are from a study conducted by the TCGI Engineers based on the data provided by the Office of the City Planning and Development Coordinator (OCPDC). Local Efforts in Housing Provision Population growth and migration to urban centers combined magnify the challenges being faced by city g6vernments in imple-

132

ManagingUrbanizationUndera DecentralizedGovernanceFramework

m endng programs for adequate shelter. Lands are more difficult to purchase due to increased demand. This in turn adds pressure to the already-limited financial resources of local governments. Selecting beneficiaries for the program also becomes more challenging as LGUs grapple with program sustainability while targeting the poor sector of the society. Lastly, the increased number of groups participating in housing programs has required creative institutional linkages and political will to ensure sustainability. This section documents local efforts in housing provision in the context of a decentralized governance, focusing on program package, identification of beneficiaries, measures against new squatters, funding requirement, cost recovery and institutional linkages.

Programpackage The first order of business in designing a housing program is to identify the appropriate package for the LGU concerned. Normally, the choice is between lot and house/lot provision. The first option involves land acquisition, site development and establishment of property rights. The other includes, in addition to the above-cited elements, the construction of housing units. An LGU can either directly or indirectly finance and manage this component. Land acquisition is critical to any housing program as the rate of distribution depends on the available lots for disposal. The Local Government Code (RA 7160) speed up the procurement of lands among LGUs. Chapter 2, section 22 states that "every local government unit, as a corporation, shall have the following powers...4) to acquire and convey real property." Essentially, this provision waives presidential approval in acquiring land, especially in cases where the cost of the property exceeds the "fair market value." With this waiver, perennial problems on bureaucratic red tape are avoided. On the one hand, establishing property rights prevents possible conflicting claims of ownership thatcan cause insecurity to the beneficiaries. It also means avoiding an administratively and financially demanding resettlement process among LGUs. On the other hand, LGUs' role in site development is enhanced by the authority given them to approve subdivision plans, which was previously the sole prerogative of the Housing and Land Use Regulatory Board (HLURB) (Sec.458 (2) IX]). Moreover, the Code facilitates the provision of basic services in the site like electricity by allowing LGUs to grant financial assistance to local electric cooperatives.

Local Efforts in Housing Provision

133

The housing programs of the three cities in this study centered on land acquisition, except for Puerto Princesa, which had a housing component. San Carlos and Puerto Princesa opted for the traditional direct purchase mode of land acquisition while Naga supplemented this scheme with swapping, exchange and sharing. San Carlos City's "Lote Para sa Mahihirap Housing Program" (phases 1, 2 and 3) distributed lots to members of the urban poor communities and government.employees. Phase 1 has a land area of five hectares, phase 2 has two hectares and phase 3 has three hectares with a total of 950 lots for distribution. This figure was 29 percent of the estimated 3,233 households that needed housing assistance. The average size of a lot is 54 square meters. The city directly purchased the lands and gave them out at cost to predetermined beneficiaries. The price of the land incorporated acquisition cost and site development. The latter includes construction of individual septic tank and toilets; basic facilities like roads, power lines, drainage and water systems; school buildings, health and day care centers and recreational facilities. The San Carlos's engineering staffhandled site development. In effect, the city subsidized the land price by excluding the cost of money and assuming the site development cost. Local officials of San Carlos maintained its "lots only policy" for all phases except phase 2 to give the poor a greater hand in building their house and to ease pressures on the city's resources: Besides, informal settlers were observed to utilize whatever material resources were at hand such as scrap wood cartons and flattened tins in home construction. Phase 2 of_the San Carlos housing project included the construction of housing units for city hall employees. However, the city was not directly involved in this component. Instead, the city government mobilized the Consuelo Zobel Alger FoundationPhilippine Branch, a nongovernment organization, to finance and manage this component.

oThere is an empirical basis for such a strategy. A recent study by Urban Poor Associates (University of the Philippines) and Urban Research Consortium and the Alternative Planning Initiative (Ateneo) revealed that government-designed "medium- and high-rise buildings aimed at easing the urban housing problem are potential nuthouses for poor families occupying them." Designs such as long corridors in residential projects resulted in a feeling of alienation and dehumanization among the inhabitants ( Philippine Daily Inquiwr, August 20, 1998).

134

ManagingUrbanizationUndera DecentralizedGovernanceFramework

In contrast, Naga City experimented with various schemes to land acquisition. The Kaantabay sa Kauswagan Program adopted the twin approach of on-site and off site settlement. The on-site strategy involved facilitating transfer of land ownership from government and private owners to the individuals occupying the property in question. Meanwhile, the off, ire strategy required provision of resettlement sites for demolition and eviction victims. In both strategies, the city's primary task was to negotiate with landowners and other stakeholders with the ultimate goal of acquiring parcels of land. In this regard, direct purchases, land swapping, land sharing and land exchange were schemes adopted by the city. Direct purchase was the most commonly used mode. Seventeen projects applied this scheme, notable of which involved the 5.5 hectares of Catholic Church-owned prime residential land located at Barangay Penafrancia. In the case of the Bagong Buhay Resettlement Project, land swapping--an exchange of property with another of roughly the same value (preferably without occupants)--was adopted. A total of 13,000 square meters of land were also given to beneficiaries under a mutual agreement between the private owner and the urban poor occupants (land sharing). Another project using the same scheme with 70 families from Barangay Concepcion Grande as beneficiaries is still under negotiation. The Community Mortgage Program was also successful in assisting 141 families to purchase a private property they were occupying in the Abella and Ronquillo properties located at Barangays Lerma and Igualdad, respectively. Lastly, the housing program obtained a resettlement area in 1996 covering 14,900 square meters through a land exchange scheme. On the other hand, Puerto Princesa's response to improving its housing condition stemmed from its intent to clear the coastal bay of squatter shanties whose daily refuse pollutes the are a and eventually causes the outbreak of diseases. It was an offshoot of "Oplan Linis" that aimed to make Puerto Princesa a "squatter-free city." In 1993, 5.4 hectares of land in Barangay Sicsican was acquired at P4 million (at P73.86/square meter) using the city government's own funds. Also, P8 million was spent for horizontal development (P165.47/square mel:er) and another P19 million (P128,834.49/unit) for the construction of the housing units. A total of 452 families were expected to benefit in the program. As of this writing, an initial 150 units were awarded an additional 170 units of duplex and 114 row houses were being negotiated for construction in collaboration with

Local Efforts in Housing Provision

135

the National Housing Authority. At present, the city is implemendng 17 housing projects. Like Naga, Puerto Princesa adopted other schemes for procuring lands: three through the Community Mortgage Program (CMP); one through the Gro/up Land Acquisition and Development (GLAD) Program; eight through direct purchase; two public lands; and another two through land donation.

t,u,,tltrtio,, ofb Identifying the target beneficiaries of the program can help to determine the legal claimants of housing projects. It also helps in prioritizing those who need immediate shelter given the limited number of lots available. Lastly, it defines what particular sectors are bound to benefit from the project. All cities included in the study formulated their own set of criteria with particular attention to socioeconomic status. The official census listing and structure mapping of the priority barangays along the coastal areajof Puerto Princesa was the primary basis in selecting prospective beneficiaries. Results of the census of squatters as of january 1995 yielded 4,009 households occupying coastal areas of the city. Another 638 families were found living in other places like watersheds. Puerto Princesa projected its housing needs at 6,473 (1995-1999), 7,078 (2000-2004) and 5,443 households (2005-2009). This estimate is based on the city's population growth; relocation of households living in dangerous/uninhabited areas, public parks, sidewalks; and lands needed by the government and squatters occupying private lands with orders of eviction. Initially, there were 2,990 prospective families in the nine target barangays. They represented 42 percent of the total number of households needing housing assistance. The city followed the Urban Development and Housing Act's (RA 7279) specific requirements. The law stipulated that heads of families muscVbe Filipino citizens; be underprivileged and homeless or living in makeshift dwellings with no security of tenure; not own any real property anywhere; not have availed of any government housing program except those in leasehold or rental payments; be residents of the area before the affectivity of the Act (March 1992); and not be professional squatters or members of a squatting syndicate. First preference was given to the qualified census-listed owneroccupant of the duly tagged structures. Secondary preference was accorded to those census-listed rent-free or sharer of the duly tagged

136

ManagingUrbanizationUndera DecentralizedGovernanceFramework

structures. The prog_am prohibited the sale and/or transfer of the property. It also prescribed disqualification of the guilty party from receiving any government housing assistance. Lastly, Puerto Princesa created the Council against Squatting Syndicates and Professional Squatters (CASSPS) as a safeguard against the proliferation of new squatters. It also organized the Coastal Area Protection or Coastal Patrol to assist barangay officials in monitoring and dismantling al! illegal construction in their respective barangays within 24 hours. Similarly, there were 3,233 households recorded as informal settlers in San Carlos City in 1995. These included people inhabiting government lands, structures, reclamation areas and private properties. Some were victims of road widening projects. In February 1992, a fire hit the city leaving 145 families homeless. The city, through the aggressive efforts of its mayor, recognized the need of these groups for shelter and they, thus, became the first beneficiaries of the Lote Para sa MahihirapProject. To expand sectoral coverage, requirements were made more liberal: residency of at least six months in the city and nonpossession of real property anywhere in the country. The beneficiaries iucluded tricycle/pedicab drivers, market vendors, carpenters, painters, construction workers and government employees., Section 5 Paragraphs 2 and 3 of the Deed of Absolute Sale given to program beneficiaries prohibited the sale or transfer of ownership of the lots and the offering of the same as collateral: "2. Unless through hereditary succession, the BENEFICIARY cannot sell or transfer ownership of the lot except by way of donation or sale to the City Government at the fair market value as determined by the City's Assessor's Office. 3. Should the lot be offered as a collateral to any financing institution or any private party, the beneficiary shall first secure the approval of the City, represented by the City Mayor, of such mortgage proposal; and in the event there is foreclosure, the City Government shall be given the first option for its acquisition." Likewise, Naga City required a permanent employee not an preferably, from the locality. The to be members of community

that the recipient be a fitmily head, owner of house and/or lot and, city also required the beneficiaries organizations recognized by the

Local Effortsin Housing Provision

137

Securities and Exchange Commission (SEC), the Home Insurance and Guaranty Corporation (HIGC) and by the Urban Affairs Office. Naga tasked community organizations to process requests from indigents for housing assistance. The requirements on permanent employment and community membership are unique features of the city's program. Funding requirement The three cities in this study primarily tapped the substantial increases in their annual internal revenue allotment (IRA) to finance housing-related activities. The IRA is the share of LGUs from taxes collected by the national government. It is a regular source of funds for development activities like housing. Section 28 of RA 7160 states that "each local government unit shall appropriate in its annum budget no less than 20 percent of its internal revenue allotment for development projects." At present, most LGUs obligate only 20 percent of their IRA for development projects. Thus, the Local Development Fund is commonly known as the "20-percent Development Fund." From a mere P34.91 million in i991, San C'arlos' IRA increased to P125.1 million in 1993 and P169.1 million in 1996. With huge increments in its resources, the city allocated 3 percent of its annum budget to purchase home lots for squatters from 1994 to 1996. Moreover, departing from the prevailing practice, the city government of San Carlos appropriated 30 percent of its IRA for development projects starting in 1997. This liberal interpretation of section 28 of RA 7160 in favor of the social sectors reflected the serious commitment of the local leadership to provide housing to the poor. Essentially, this move enhanced the city's financial base for social development initiatives. This was an important measure because LGUs are, by nature, dependent on the IRA and other external resources. For instance, San Carlos' IRA share to total income is 68.9 percent in 1991, 83.7 percent in 1993, and 79.7 percent in 1996. 7

7The share of IRA in total LGU income rose from 42.3 percent in 1991 to 77.6 percent in 1993 for all provinces, from 41.7 percent to 52.7 percent for all municipalities and from 35.3 percent to 48.7 percent for all cities (Manasan 1998).

138

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Naga City's IRA grew from P18.3 million in 1991 to P81.9 million in 1993 and P112.5 million in 1996. The share of housing investment in tile city's total budget was 4.2 percent in 1991. Then it rose to 10.2 percent (1992) and 16.2 percent (1994). In 1995, however, it was down to 6.9 percent. The city government is committed to allocate P10 million per year or a total of P50 million in the five-year period (1991.-1998) to the Socialized Housing and Resettlement (SHARE) Program under the Medium-Term Development Plan (1994-98). It also plans to address price fluctuations in the market by buying more lands when they are cheap. Through this, Naga can stock parcels of land for distribution to beneficiaries without necessarily bloating the local budget. Owing to its big land area, Puerto Princesa received a larger share from national taxes compared to the two other cities in the study. In 1991, the city's IRA was P83.9 million, then rose to P325 million in 1993 and P438.7 million in 1996. The average annual IRA growth rate during the years immediately "after the Code was implemented (1991-1993) was 96.8 percent in Puerto Princesa, 89.3 percent in San Carlos, and 111.5 percent in Naga. But in 1994-1996, IRA growth decelerated to 8.06 percent in Puerto Princesa, 6.96 percent in San Carlos and 5.8 percent in Naga. Moreover, recent budget guidelines from the Department of Budget and Management, which withheld 10 percent of LGUs' IRA in 1998, further tightened the financial position of most LGUs (Table 2). Aside from the IRA, LGUs fund local projects from locally sourced revenues. In this regard, LGUs have varying degrees of success. Per capita local-source revenue (LSR) in Naga and San Carlos increased substantially in 1991-1996. Per capita LSR in Naga rose by 30.8 percent and 18.7 percent annually on the average in 1991-1993 and 1994-1996, respectively. Likewise, per capita LSR in San Carlos grew by 23.3 percent and 17.1 percent yearly during the same two periods. In contrast, Puerto Princesa's LSR increased by only 7.3 percent yearly on the average in 1991-1993 and declined by 11.5 percent annually in 1994-1996. Naga City also made use of other sources of finance. The city government through the Sanggunian sought the assistance of a senator in the amount of P1 million fbr the upgrading of a resettlement site in Barangay Calauag. The same body also authorized the mayor to secure an additional credit line of P10 million from any commercial bank. Lastly, a trust fund was set UP for collections/proceeds from

Table

2. Income

Years Total

of Local

Government

Puerto Princesa City IRA

Inc째melRA

LSR

Units Naga City

LSR

Per

San Carlos City

Total

Shz.re (%)

Share (%)

Capita Income LSR (t_)

IRA

LSR

IRA

LSR

Per

Total

IILA.

LSR

Per

Share (%)

Capita LSR (t_)

Income

IRA

LSR

Share (%)

Capita LSR (t_) 149.59

1991

104.283.9

10,311

80.52

19.0

193.11

55.2

18.3

30,578

33.15

53.0

259.14

50.7

34.91

15,707

68.86

31.0

1992

194.1

174.5

19,629

90.00

10.0

183.45

81.4

44.8

36,567

55.00

45.0

304.73

84.1

67.2

16,925

80.00

20.0

162.74

1993

400.4 325.0

25,346

81.17

06.0

222.33

136.0

81.9

54,123

60.22

40.0

443.63

149.5

125.1

23,433

83.68

16.0

227.60

1994

432.3 375.7

50,891

86.91

12.0

417.14

181.8

100.5

59,313

55.28

33.0

474.50

192.7

147.8

31,826

76.70

18.0

312.02

1995

469.5 409.9

37,120

87.31

08.0

285.54

173.0

104.8

67,696

60.58

39.0

533.04

188.0

157.7

37,504

83.88

19.0

371.33

1996

577.9 438.7

45,039

75.91

08.0

326.37

200.1

112.5

86,329

56.20

43.0

669.22

212.3

169.1

43,245

79.65

20.0

428.17

Growth Rat_ Years

thletlo Princesa Tot al hlcome

City

Naga City

IRA

Total Income

San Carlos City

IRA

Total I.ucome

IRA

1991-1993

96.02

96.87

56.96

111.55

71.72

89.30

1994-1996 1991-1996

15.62 40.86

8.06 39.21

4.91 29.38

5.80 43.79

4.96 33.16

6.96 37.10

140

ManagingUrbanizationUndera DecentralizedGovernanceFramework

resettlement sites, sale of government mortgage program's origination fees.

properties

and community

Cost Recovery The institution of cost recovery measures can both lessen dependence on IRA and the need for "militant advocacy" plans to ensure project sustainability. In housing, cost recovery refers to setting the right price for each project package and efficiently collecting monthly amortizations. While the project by nature involves subsidy from the local government, defining a cost sharing scheme between the LGU and the beneficiaries concerned is important. For the cities, it means easing the pressure on its budget. On the part of the beneficiaries, shouldering the cost gives them a sense of dignity and ownership. Cost sharing can also ensure available funds for housin The cost and payment scheme that San Carlos offered Lv beneficiaries of its housing program was tailored-fit to the lowest income earners of the city. The city acquired parcels of land for the first phase at P45 per square meter and was sold at P100 per square meter. The difference of P55 per square meter was treated as site development cost. Home lots have an average size of 54 square meters. An easy mode of payment of P5 per day (Monday to Friday) for five, years (phase 1) with no downpayment and interest was provide -_ 째 Section 4 of City Ordinance No. 160 series of 1994. The ordinance also stipulated that "any default in the payment of 40 accumulated dally installments shall cause the cancellation or termination of the Conditional Deed of Sale between the City Government and applicantbeneficiary." A collection officer was assigned to receive the daily payments. Of the 436 residents in phase 1 (1996), eight were fully paid. However, no data were available on the payment status of other beneficiaries. Naga City relied on community organizations in determining the share of the beneficiaries in the financial requirements of the projects. In the land sharing project of the Naga Centrum property, the recipients paid P469,900 (12 percent) out of the P3.9 million total cost. The city initially shouldered the remaining P3.43 million (88 percent) of the purchase price. For the direct purchase mode, the following cost sharing ratios between city and beneficiaries were formulated: 53-47 percent (Archdiocese property); 70-30 percent (Belmonte property); 89-11 percent (Veterans' Bank property). The

142

ManagingUrbanizationUndera DecentralizedGovernanceFramework

eviction/demolition victims. Otherwise, all claims and assistance were through NGO representatives. Naga City also coordinated with NGOs in determining the qualified beneficiaries and in conducting value re-orientation seminars. Four NGOs, which are members of Naga's urban poor association, were the main partner-beneficiaries of the city's housing program. As such, these groups handled the process of identifying the beneficiaries and their corresponding financial share. With this setup, the UPAO was able to focus on land acquisition. The Bicol Business Development Foundation, a private foundation, was also tapped as originator for the Community Mortgage Program. This tripartite organizational strategy helped minimize potential administrative bottlenecks (Table 3). In summary, Naga City shouldered the financial requirements of its various activities in coordination with national governments. However, it delegated to people's organization, NGOs and private business some of the administrative functions vital to the successful implementation of its housing program. For local programs that could not afford to take on the responsibility of constructing housing units, the assistance of NGOs may also be helpful. The city government of San Carlos authorized the Consuelo Mgers Foundation, a Hawaii/Guam-based NGO, through S.E Ordinance No. 187, to directly finance the construction component of phase 2. Thus, the foundation managed the site development and construction of houses for city hall employees. It also provided housing loans to city hall employees. Furthermore, the NGO conducted value-orientation seminar for the beneficiaries. In contrast, San Carlos' program under phases 1 and 3 focused only on lot purchase and distribution. In this regard, the local bureaucracy took charge of all administrative aspects of the project from selection, relocation, collection, tiding, and livelihood to monitoring. Unlike Naga's and San Carlos', Puerto Princesa's project approach depended both on its own financial and administrative resources. The city acquired 5.4 hectares of land at P4 million in Barangay Sicsican using money from its coffers. It also spent P8.5 million and P19.3 million for site development and construction of housing units, respectively. To date, a joint venture proposal with the National Housing Authority is being finalized for the construction of

Local Effortsin Housing Provision

143

Table 3. Participants and Their Respective Roles in the Kaantabaysa Name of

Nature of

Illdividtml_/Oggani_ltlorm Government

Org'ani_tion

Role/Area(s)

of Involvement

Agencies:

1. Naga City government

Local government

Main program

implementor

unit

2. Department of Environment and Natural Resources (DENR)

Line govemment department

Provider of authority to city government to supervise disposition of public lands in Naga City

3. National (NHA)

Land shelter agency

Production of housing units; assistance in developing relocation sites

Housing

Authority

4. National Home Mortgage Finance Corporation (NHMFC) 5. Home Insurance Guaranty Corporation (HIGC)

Financial support for the Community Mortgage Program (CMP) Governmentowned and controlled corporations (GOCCs)

6. Government Service Insurance System (GSIS) 7. Presidential Cmmmission for the Urban Poor (PCUP)

Provider of interim financing to CMP projects; property seller of BLISS-I housing projects

Financial support provider through the _Tulong sa Lokal na Pamamahala" window National urban poor agency

Issue and program advocacy; accreditation of urban poor organizations

1. Naga urban poor associations

Nongovernment organizations (YGOs)

Main program partnerbeneficiaries

2. Community Organization of the Philippines Enterprise (COPE) foundation

Development NGO

Community preparation; advocacy

:5.Bicol Business Development Foundation

Private business foundation

CMP originator

Nongovermnent

Organintlons:

4. Caceres Social Action Foundation

(CASAF)

Property

Owners:

Archdiocese

Abella Family RonquiUo Family Dy-Liaco Family Borebor Family Bernardo Family Belmonte Family Heir of Fabiana Arcjola

of Caceres

organization; social issue and program

Chureh-based organization

Religious Private landowners

Sellers of property

144

ManagingUrbanization Undera DecentralizedGovernanceFramework

additional units. By virtue of City Ordinance No. 55-93, a housing council was further created. The mayor headed the council with the fiscal officers, environment and natural resources officer and the chairperson of the committee on housing and urban poor of the Sangguniang Panlunsod (city council) as members. The 20-percent Development Fund served as the annual financial source of the council. At the same time, other government agencies such as the Department of Environment and Natural Resources, NHA, NHMFC, HIGC, GSIS and Presidential Commission for the Urban Poor (PCUP) assisted the three cities in providing financial support, supervising the disposition of public lands, assisting in developing relocation sites and in program advocacy. Private sector participation was also encouraged in lending assistance projects such as the CMP and GLAD. Or_n/x/ng the/oca/bure___,_,___cy for program succe,_ PolitiCal will in the context of a housing program is determined by two factors. The first is the introduction of measures to ensure financial sustainability of the project. It involves both the identification of regular source of funds and the institution of cost recovery schemes. Just as important is the need to define the appropriate organizational structures within the LGUs' structure and their respecfive roles. In this regard, the city can either assume full responsibility in administering the project or it can delegate some of its functions. Two of the three model cities in this study put in place new structures that became the focal point of its housing efforts. In Puerto Princesa, City Ordinance No. 55-93 (Aug. 2,1993) instituted the Housing Council. Its primary responsibility was to implement the city's housing program. Originally, the Council was composed of the mayor as chairperson and the chief of police, the president of the Urban Poor Coordinating Council, the city attorney, and the chairperson of the Landed Estate of the City Council as members. At present, the members of the Housing Council include the city's fiscal officers, the environmental and natural resource officer and the chairperson of the committee on housing of the sanggunian. As in San Carlos, the local chief executive supervised the entire project. Similarly, the creation of the Urban Affairs Office (UPAO) was Naga's distinct local initiative. A separate unit in the local bureaucracy, UPAO took charge of negotiating and formulating appropriate land purchase schemes. It was also tasked in resettlement and auxiliary

Loca|Efforts in HousingProvision

145

services. Lastly, UPAO was mandated to accredit community organizations involved in the program. At the same time, Naga harnessed community organizations in identifying potential benefits and their corresponding financial share. This setup augured well for UPAO as it focused more on land acquisition schemes. At the same time, the city sought the assistance of other government agencies like DENR, NHA and NHMFC, to name a few, in providing financial support, supervising the disposition of public lands and assisting in the development of relocation sites. By adopting a tripartite strategy, the city lessened its dependence on the local executive's initiative, unlike Puerto and San Carlos. In contrast, San Carlos opted for the collaborative efforts of the different units of the city's bureaucracy to manage the project. The Office of the Mayor exercised general supervision of the entire project. Thus, the local bureaucracy took charge of all administrative aspects of the project from selection, relocation, collection, tiding, and livelihood creation to monitoring in coordination with the NHA and homeowners' associations (Figure 1). Figure

Organiza_onal

Chart

of the

Lore

CITYMAYOR

Para

sa Mahirap

[

Program

PANLUNSOD SANGGUNIANG

URBANPOOR 1CYIYF_NGINEER FEDF._,ATIONITRUCXDR/VKR 1BARANGAY 4C..,AR/_.._ CAFTAIN 27 VOLUNT_RS ASSESOR

CITY

]

1CITYADMINISTRATOR

ADMINISTRATOR

[

1CLERK

cOORDINATOR PROJECT

[

1CITYLEGAL OFFICER 1(_Y TREASURER 1_

II_GISTZR OF iCITYPLANNING lCITYPLANNINC DZKDS & DEVELOPMENT ANDDEVT, 1BOCUMLNTATION OFF/CER OF'flCF_R OffiCER 1CITYSOCIAL ICLERK 1 CLERK WELFARE 8tDEaf. OFFICBR 1 DEC.$OYFfCER 1 CONSUELOALGERS OR NGO OFFICER

146

ManagingUrbanizationUndera Decentralized GovernanceFramework

Key Concerns While varying levels of success have been achieved in the three model cities, other LGUs experiencing growing urbanization can further evaluate the strategies they have undertaken to determine the most appropriate solution to their own housing problem. Significant concerns from the experience of the three model cities in this study are highlighted here to provide further lessons and guidelines to other LGUs.

Projectopao The experience of other countries shows that "given the heterogeneity of people's prefbrences for a type of shelter and the speed at which they can or want to improve its quality," public housing projects do not often fit the "ideals" of the beneficiaries (Bahl and Linn 1992). People from all income brackets appear to be able and willing to finance the construction of their own housing unit provided that the required inputs like tenure, site development and to some extent capital are readily available. Even in cases of resettlement resulting from a disaster like the Mt. Pinatubo eruption, beneficiaries are observed to value their "freedom to build" their own house. In light of these facts, it is crucial for policymakers at the local level to decide whether the housing package should include the construction of housing units at the LGU's expense. Thus, in many instances, public resources allotted for housing construction are better placed in complementary inputs to housing like tenure and on-site services. Naga's case is a good example. The city's "lot only" policy, together with its participative organizational structure, allowed it to experiment more on various modes of land acquisition other than direct purchase of lands. Another option available to LGUs is to catalyze other institutions (NGOs, private sector) to undertake the construction of housing units. This was exemplified by San Carlos City, which authorized the Consuelo Algers Foundation to take charge of the housing construction component of phase 2 of its program. Such an arrangement allowed local government efforts to be redirected to lot distribution and construction of septic tanks and toilets, roads, power lines, drainage and water systems, school buildings, health/day care centers and recreational facilities.

Local Effortsin Housing Provision

147

The econon_ of housing subsidy Local housing programs in these case studies heavily subsidized the provision of home lots. This is consistent with the experience of many countries that subsidized housing consumption either by underpricing land or implicitly by subsidizing interest. Often, land is valued at its acquisition cost to government. "While a first project may be able to draw on financially cheap public land, follow-up projects may have to purchase land at commercial prices from private owners. In that case, the replicability of the first project--it relies on subsidized land costs---is in doubC (Bahl and Linn 1992). At the same time, subsidies on housing tend to result in the overconsumption of this service relative to other goods and in overly ambitious expectations on housing standards because full cost is not borne by beneficiaries. Thus, the problem with these subsidies is that land appears to be cheap when in reality it is not. There is a tendency for the programs to provide bigger lot sizes than would otherwise be the case if the land were properly priced. Puerto Princesa's project in Baiangay Sicsican is a case in point. Individual lots measured 99 square meters, bigger than those in typical housing projects. I asdy, subsidies could also limit local government's capacity to finance the essential components of housing supply like urban infrastructure and services for which it usually has sole responsibility.

Finn/

pta,m/ng

All three cities in the study financed their programs utilizing the substantial increases in the IRA. As has been stressed earlier, growth in IRA should be seen in the light of devolution: more money for more responsibilities. Moreover, it is noted that the rapid growth in the IRAin the early years of the Code's implementation is no longer the norm. The growth in the IRA has, in fact, tapered off in recent years. An alternative scheme is financing through increased local tax effort. San Carlos and Naga both score high in this regard. They have expanded their local source revenues even as their IRA increased significan fly in 1991 -1996. Potentially another good source of continuing funding for the LGU's housing program is cost recovery. Cost recovery has two principal components: (1) correct service pricing; and (2) collection effi-

148

ManagingUrbanizationUndera DecentralizedGovernanceFramework

ciency. All three cities in the case studies have not shown much success in this regard. Lastly, after forecasting the potential financial needs and resources, the local government can explore the sourcing of funds from external sources like credit facilities s and the countrywide development fund of legislators. Structure and advocacy Slower IRA growth and poor local tax effort, together with increased responsibilities on social service delivery, has increasingly constrained the financial positions of LGUs. Housing programs had to compete with other priorities of the cities in the allocation of their resources. All three cities were fortunate to have mayors who share concern for housing. They exhibited strong political resolve in implementing their projects. They utilized their executive powers and influence to institutionalize the operational, financial and organizational aspects of the program. The office of the chief executive, possibly with new structures that are closely linked to him, acted as the overall operational nerve center. But the strong identification of housing program with the mayors is also a potential problem in the long run. Mayors are elected for a three-year term and if he fails to win a re-election, the new leader should at least have the same commitment to sustain the program. Unfortunately, Philippine policymaking both at the national and locad levels is observed to exhibit discontinuities. The creation therefore of a critical mass for housing is signiticant. In this regard, the role ofnongovernment and peoples' organizations in ensuring a continuous advocacy for housing cannot be minimized. They have been proven active and effective partners in program implementation as well. Lastly, the three model cities have all managed to tap the resources (financial and institutional) of various housing agencies at the national level such as NHA, NHMFC, CMP and DENR.

s Llanto et aL (1998) formulated â&#x20AC;˘ capital markets.

a framework

for local government

units' access to private

Local Effortsin Housing Provision

149

References Alonzo, Z.A.C. 1997. Developments in Philippine Housing Finance International.

Housing Finance.

Bahl, R. andJ. Lim. 1992. Urban Public Finance in Developing Countries. New York: Oxford University Press. Llanto, G.M., R.G. Manasan, M.B. I amberte andJ.C. Zoya. 1998. Local Government Units Access to the Private Capital Markets. Makati City: Philippine Institute for Development Studies. National Statistical Yearbook.

Coordination

Board.

1997. Philippine Statistical

National Tax Research Center. 1997. The Philippine Program: A Study. NTRC Tax Research Journal 9 (5). Philippine

Daily Inquirer.

Housing

August 20, 1998. p. 1,14.

Rebullida-Genato, M.LG. 1993. Alternative Self-help Financing Schemes for Housing: an Exploratory Study on Indigenous, Voluntary, Community-based Groups in Urban Areas. Working Paper No. 934)3 Makati City. Philippine Institute for Development Studies. _,.

n.d. Economic and Social Indicators. Economic and Development Authority.

Republic Act 7160. The Local Government Republic Act 7279. 1993 Urban Development

Pasig City: National

Code of 1991. and Housing Act.

150

Managing Urbanization Under a Decentralized Governance Framework

Appendix

Table 1. Cities' State of Urbanization Land

CITY

Population* May. 1990 Sep 1995

Area

Population

Intercensal

Density (person/sq. kin)

Growth Rate**

(_q.km).. May 1990, Sep 1995 (1990-1995)

% Urban Population 1990

***

1995

NCR Manila Quezon Pamy Caloocan Mandaluyong Pasig Makati Muntinlupa

1,601,234 1,654,761 1,669,7761,989,419 368,366 408,610 763,4151,023,159 248,143 286,870 397,679 471,075 453,170 484,176

38.3 166.2 13.9 55.8 26:0 13.0 29.9

41,807.7 10,046.8 26,501.2 13,681.3 9,544.0 30,590.7 15,156.2

43,205.2 11,970.0 29,396.4 18,336.2 11,033.5 36,236.5 16,193.2

0.62 3.34 1.96 5.64 2.75 3.22 1.25

100.0 100.0 100.0 1O0.0 100.0 100.0 100.0

I00,0 i00.0 1O0.0 100.0 100.0 100.0 100.0

278,411

399,846

46.7

5,961.7

8,562.0

7.02

100.0

Dagupan Laoag San Carlos CAR

122,247 83,756 124,529

126,214 83,386 134,039

37.2 107,5 166.4

3,286.2 779.1 748.4

3,392.8 821.7 805.5

0.60 1.00 1.39

100.0 47_9 11.7

1O0.0 47.7 10.7

Bagoio

183,142

226,883

48.9

3,745.2

4,639.7

4.09

100.0

98,542

255.5

385.6

nda

1.55

nda

RegionI

Region11 Santiago

nda

Regionm Angeles Cabanatuan

236,686 173,065

234,011 201,033

60.3 192.7

3,925.1 898.1

3,880.8 1,043.2

-0.21 2.85

100.0 53.3

100.0 49.2

Olongapo Palayan San Jose

193,327 20,393 82,836

179,754 26,851 96,860

103.3 35.6 180.5

1,871.5 572.8 458.9

1,740.1 754.2 536.6

-1.35 5.29 2.97

100.O 46.4 31.1

100.0 39.7 29.9

184,970 91,641 160,117 150,624 92,147 161,650 23,739 15,686

211,879 92,641 177,894 177,750 129,577 183,757 29,419 20,451

283.0 11,8 209.4 68.5 2,106.7 214.0 74.0 39_1

653.6 7,766.2 764.6 2,189.9 43.7 755.3 320.8 401.2

748.7 7,850.9 849.5 2,594.9 61.5 858.7 397.6 523.0

2.58 0.20 1.99 3.15 6.60 2A3 4.10 5.10

68.3 100.0 70.0 100.0 70.7 45.3 17.2 37.9

100.0 100.0 68.6 100.0 58.0 39.1 8.2 37.7

74,269 115,329 121,116

82,482 126,972 141,657

119.6 77.5 153.7

621.0 1,488.1 788.0

689.6 1,638.3 921.6

1-98 1.82 2.98

59.4 100.0 58.1

60.3 1O0.0 44.8

Bacolod .Bago Cadiz Iloilo La Cat'lota Roxas San Carlos

364,180 122,863 119,772 309,505 56,443 103,171 105,713

402,345 132,338 125,943 334,539 56,414 ,118,715 101,429

156.1 402.1 516.5 56.0 137.3 102.0 451.3

2,333.0 305.6 231.9 5,526.9 411.1 1,011.5 234.2

2,577.5 329.1 243.8 5,973.9 410.9 1,163.9 224.7

1.88 1_40 0.95 1.47 .4).01 2.66 -0.77

100.0 42.6 36.7 100.0 52.4 100.0 38.3

100.0 41.6 38,1 100.0 49.5 100.0 36.4

Silay

101,031

122,748

214.8

470.3

571.5

3.72

46.4

47.8

Bais

59,591

63,355

316.9

188.0

199.9

1.15

100.0

Canlaon

37_165

41,334

160.7

231.3

257.2

2.01

19.5

19.8

Rein IV Batangas Cavite Lipa Lucena Puerto Princesa San Pablo Tagaytay Trece Martires

RegionV Iriga Naga Legazpi

_egimaVI

l_egionVII

Local Efforts in Housing Provision Appendix

151

1 (continued) Land

CI'IY

Population* May 1990 Sep 1995

Population

Area j (sqatmj

Intercensal

% Urban

(person/sq.DemitYkm) _Rate**

Population

Malt 1990 Sep 1995 (1990-1995)

1990

***

1995

Cebu Danao

610,417 73,358

662,299 79,932

280.9 107.3

2,173.1 683.7

2,357.8 744.9

1.54 1.62

100.0 33.4

100.0 33.3

Dumaguete Lapu-Lapu Mandaue Tagbilaran Toledo

80,262 146,194 180,285 56,363 119,970

92,637 173,744 194,745 66,683 121,469"

55.8 58.1 11.7 30.3 174.5

1,438.4 2,516.2 15,409.0 1,860.2 687.5

1,660.2 2,990A 16,644.9 2,200.8 696.1

2.72 3.29 1.46 3.2 0,23

100.0 100.0 100.0 100.0 13.1

100.0 98.6 100.0 100.0 13.7

115,390 129,456 136,891

129,216 144,033 167,310

903.0 464.3 100.9

127.8 278.8 1,355.7

143.1 310.2 1,658.2

2.14 2.02 3.83

25.3 40.1 100.0

24.3 36.2 100.0

Reglonvm Calbayog Ormoc Tadoban

ReglonIX Dapitan Dipolog Pagadian Zamboanga

60,213 62,997 79,887 90,777 106,$07 125,182 442,345 511,139

215.0 220.0 378.8 1,414.7

280.1 361.3 280.6 312.7

293.0 412.6 330.5 361.3

0.85 2.42 3.11 2.75

17.5 46.0 57.2 63.6

20.7 40.3 49.7 03.0

4.44 1.10 1.22 2.05 1.31

98.2 36.0 50.5 46.1 17.4

98.2 36.0 49.2 45.8 17.7

455.3 773.5

3.22 5.14

70.2 85.8

64.0 41.7

Region X Cagayan de Oro Gingoog Oroquieta Ozamis Tangub

339,598 82,582 52,500 91,503 42,926

428,314 87,530 56,012 101,944 46,004

412.8 404.6 194.9 144.2 119.2

822.7 204.1 269.4 634.6 360.1

1,037.6 216.3 287.4 707.0 385.9

849,947 250,389

1,006,840 327,173

2,211.3 423.0

Cotabato Iligan Marawi CARAGA

127,065 226,568 91,901

146,779 273,004 114,389

176.0 730.5 22.6

722.0 310.2 4,066.4

834.0 373.2 5,061.5

2.74 3.56 4.19

100.0 30.7 nda

100.0 18.2 nda

Butuan Surigao Memo Item:

227,829 100,379

247,074 104,909

526.3 245.3

432.9 409.2

469.5 427.7

L53 0.83

52.5 47.9

52.5 44.3

500,000

202.3

228.7

2.32

m_io_xI Dawao General Santos

384.4 591.9

ReglonXg

PIqlIJPPlNES

60,703,206 68,616,536

Sources: 1997_neStatiaical Yearbook, National Statistical Coordination Board. * 1990 and 1995 total Philippine population includes the household population, homeless population, Filipinos in Philippine embassies/consulates and missions abroad, and institutional population who are found living in institutional living quarters such as penal institutions, orphanages, hospitals, military camps, etc., at the rime of the census taking. ** Intercensal growth rate from =Cities in the 90's: A Compilation of Basic Information." Compiled by E.T.Joaquin and E.S. Valeroso, Local Government Center, College of Public Administration, *** Percent Urban data (computed). nda - no dataavailable.

Part II. Case Studies

Chapter

1 Closing the Urban Fiscal Gap: An Overview* Rosario G. Manasan Introduction rbanization has certain advantages. Agglomeration economies result in higher productivity as compared to the rest of the economy. As urbanization proceeds, cities are better able to capture the benefits from economies of scale, bringing about reductions in unit cost of delivering certain types of services like sewerage treatment, public t_nsportafion and the like. Urbanization also induces increases in the taxable capacity of cities such that more revenues can be mobilized from the same jurisdiction. There are, however, also certain problems which urbanization is associated with. Congestion is one. It leads to diseconomies like air and water pollution, slum settlements, and increased need for disease control and fire/police protection, which then offset the positive effects of technological economies of scale on input costs. Of course, basic services like potable water supply, telephones and health facilities also become critically inadequate in many large cities. Two types of responses are known to have been made to address these problems. One is to impose controls on rural-urban migration and rapid populadon growth. Another is to find efficient ways to manage and finance the urban sector. This pape r focuses on the latter--searching for ways to finance and deliver adequate public services in urban areas. The Heart of the Problem The immediate cause of the shortage and at times, near absence, of basic public services in large cities is the inability of governments to fund the delivery of the fight quantity and quality of these services.

* First published Considerations."

as P1DS Policy Notes No. 994)2 entided

"Closing the Urban Fiscal Gap: Some

156

ManagingUrbanizationUnderaDecentralized GovernanceFramework

In short, urban local government units (LGUs) typically face a financing problem known as _fiscal gap." This is defined as a gap between perceived service needs and available financial resources. This fiscal gap is different from the concept of fiscal deficit that reflects a shortfall of actual revenue collections relative to actual LGU expenditure. It is important to note this difterence at the outset since in the Philippine context, LGUs are not encouraged to engage in deficit financing of recurrent expenditures. . How does urbanization ilafluence the fiscal gap? To be able to answer this, one should first take a look at how urbanization and population growth affect the expenditure requirements and revenue collections of urban LGUs. The increase in demand for public services is mostly driven by growth in population induced by natural growth and migration. In order to sustain a given level of service, some argue that LGU expenditures have to increase at a rate that is at least proportional to the rate of population growth. In cases where service provision entails an increasing marginal cost, the need for such response becomes even more pronounced. Clearly, urbanization exerts an upward pressure on local government budgets. However, LGU revenues may not respond as quickly and strongly to rapid population growth. Thus, while population growth, urbanization and the associated growth in per capita income at/tend to expand the revenue capacity of urban governments, the growth in LGU revenue may not automatically expand since it is held back by the LGUs' limited taxing authority and lagging revenue efforts. One example is in terms of property values. While they tend to rise with urbanization, the increase is not immediately reflected in the statutory tax base unless assessment values are automatically indexed. Another illustrative case is the issue of inflation. Inflation drives up government spending requirements almost instantaneously, what with the rise in the cost of materials and supplies and the pressure to increase governmentemployees' salaries to be able to cope with the higher costs of living. Yet, LGU revenues are not as responsive. Again, this is because there is, among others, no automatic indexation of the assessed values of real property for tax purposes in most places. To bring adequate public services to the urban sector, then, it becomes critical to close the fiscal gap. To close the fiscal gap, more money should flow into governments. Conversely, service delivery must be made more efficient or innovative in order that some money may be saved and put into the government coffers.

Closingthe Urban Fiscal Gap: An Overview

157

Dissecting the Urban Fiscal Problem It is useful to analyze and evaluate the determinants of the city local government units' (CLGUs) revenue performance and expenditure behavior to understand where and how more funds (and savings) can be sourced for the city government coffers thereby closing the fiscal gap. Determinants of revenue performance Reviewing the 1991-1995 period, the study measures LGU revenue performance in terms of per capita total LGU income and two components of per capita locally-generated revenues: per capita local business tax revenue (PCLBT) and per capita real property tax revenue (PCRPT). Results of a series of regression runs indicate that the degree of urbanization has a positive and significant effect on PCLBT. It is likewise positive but not significant in terms of its relationship or effect on the PCRPT. The latter apparently shows that real property tax systems have not been able to fully capture the positive effects on land values brought about by urbanization. Cities earn income from both local and external sources. Local sources come mostly from local business tax and real property tax while external sources are largely accounted for by the internal revenue allotment (IRA). A previous Manasan study (1995) showed that instead of acting as a stimulant for LGUs to raise their local revenue generation effort, the IRA served as a disincentive to local government's resource mobilization effort since it became a substitute source of income for LGUs. In view of this and because, as noted earlier, efforts in ing potential tax earnings from higher valued real property about by urbanization were not fully realized, it is therefore prising to find that the effects of urbanization and population on per capita LGU total income had simply been neutral.

generatbrought not surgrowth

Determinants of CLGU expenditure behavior Meanwhile, the growth in demand for public services is often associated with the increase in population. Logically, LGU expenditures are expected tO grow more or less proportionately with respect to population in order to maintain a constant level of service. Ditto with the effects of urbanization. As urbanization proceeds, per capita personal income tends to rise. With the increase in per

158

ManagingUrbanizationUndera DecentralizedGovernanceFramework

capita personal income is the tendency to have an increase in the demand for most public services. Subsequently, too, the level of per capita expenditure is expected to rise. However, results of the regression analysis conducted by Manasan using data on Philippine LGU expenditures show that in 1995, the degree of urbanization and per capita LGU expenditure (PCLGUEXP) were negatively and significantly related. For the other years, except 1994, while the urbanization coefficient turned out to be positive, it was nonetheless not significant. When the regression analysis was further extended to take a look at the effects of urbanization and population growth on the per capita LGU expenditure for health and education, the results showed that except in 1991, the association had been negative and statistically significant. Said result/s contrary to initial expectations and to what have been obtained in other countries, notably developed countries. What accounts for such difference and what is its implication? The Unfortunate Consequence Put simply, the results showing a negative relationship between urbanization and population growth, on the one hand, and per capita CLGU expenditure, on the other, means that instead of increasing as would have been expected, the actual CLGU per capita expenditures, specifically for health and education services, declined as population growth rates and the degreeof urbanization rose. Consequently, the fiscal gap is not reflected in terms of a higher LGU fiscal deficit, as in other countries, but rather in reduced level of per capita expenditures. The implication of this is that the delivery of basic services, notably health and education, is adversely affected. It therefore becomes not merely afiscal problem but, sadly, a shortage and deterioration of urban service delivery especially in the areas of health care and education. Recommendations: Interventions to Close the Urban Fiscal Gap The urban fiscal gap can be closed in four ways: • increasing local revenue effort with unchanged revenue authority; • increasing LGU taxing authority; • increasing transfers from central government; and • more efficient use of existing financial resources in service delivery.

Closingthe Urban Fiscal Gap: An Overview

l_ng,/octd To counteract

_,_

159

_fort

the substitutive

effect of the IRA distribution

formula on local source revenue, tax effort may be explicidy taken into account in the IRA allocation formula. Alternatively, the IRA distribution formula may also be allocated to the different LGUs based on equalization of net fiscal capacities (revenue capacity net of expenditure needs). To address the problem of CLGU real property tax systems not fully Capturing the rise in urban land values, the Local Government Code should be amended in favor of automatic indexation of the schedule of fair market value between general revisions. This will protect the real property tax base from inflation during the years when no general revision is undertaken. By avoiding the need to make lumpy adjustments in the schedule, it will also narrow the gap between the official schedule of fair market values and the true market values of real property in the medium term. Moreover, to counter the tendency of local assessors to value real property below its true market value, the me of the zonalvalues of real property (on which the BIR bases its assessment of transfer taxes) should be considered. On the collection side, there is a need to separately monitor current real property tax coUectibles from delinquent accounts. Aggressive collection and enforcement after each quarter through notices of delinquencies would do the government good. At the end of the second quarter, when an account becomes delinquent, warrants of levy should be issued. If by the end of the third quarter, the account is still delinquent, auction notice should be issued. For local business taxes, the biggest problem is the underreporting of gross receipts of establishments. Requiring taxpayers to submit their income tax returns (ITRs) filed with the Bureau of Internal Revenue is perhaps the most direct way of obtaining information. Given the present tax calendar, this implies that local business tax be initially assessed on the basis of the previous year's ITR and adjusted later in the year as the current ITR becomes available. In addition, local treasurers may require large establishments to submit supplementary accounting records. In large urban areas, local treasurers should be trained in field examination to check the veracity of reported gross receipts. The use of presumptive income levels, particularly for small establishments, should also be explored. To improve collection and enforcement of nonreal property taxes, meanwhile, the following may be considered:

160

ManagingUrbanizationUndera DecentralizedGovernanceFramework * establishing a roll for each type of tax (the conduct of a tax census and the development of a revenue data bank are key steps in this regard); * maintaining systematic records where tax payments are automatically entered as they occur; â&#x20AC;˘ Sending tax bills and conscientiously monitoring tax payments and delinquencies; and Â° strictly implementing, sanctions and penalties on erring taxpayers.

A good number of cities has already implemented user charges to defray hospital expenditures. To supplement the effort, local sanggunians (councils) need to pass legislation removing restrictions on the retention of income generated by these hospitals since such restrictions discourage hospitals from collecting user fees. Meanwhile, the poor financial performance of CLGU business enterprises is becoming worrisome. Cost-based pricing is a way of addressing the problem. Still another way is through management contracts with the private sector. Increasing LGU taxing authority In the medium term, the assignment of taxing powers to various levels of government must be reviewed. Theory suggests that residence-based taxes and taxes on immobile factors such as the real property tax are appropriate for local taxation. Motor vehicle taxation is also suitable for CLGUs. Betterment levies (a tax aimed at recouping the public costs of providing urban infrastructure from the beneficiaries) should also be explored. Such charges have had positive â&#x20AC;˘ effects in Korea and Colombia. Improving efficiency and effectiveness in service delivery Case studies of best practices in LGU service delivery indicate that much improvement could be achieved in this area. Below are three major characteristics of selected Philippine cities which, faced with inadequate funds to finance urban services, shifted strategy by innovating and making more efficient the delivery of ser vices. One, there is greater participation ofv_ous stakeholders (local institutions and people) in the implementation process and funding. This helps ensure efficient and effective program results and sustmn implementation. For example, Surigao City and Lapu-lapu City _nobilized their women's groups to deliver health services. Naga City

Closing the Urban Fiscal Gap: An Overview

161

tapped community organizations to identify and come up with the financial counterpart of housing program beneficiaries while Puerto Princesa's citizens participated widely in cleanliness and reforestation programs. Two, LGUs in best practice cases broke free from the financial constraints that face most urban LGUs. They took different routes in addressing the fiscal gap. Some introduced user fees (as in Olongapo City) while others designed well-planned cost recovery schemes (as in San Carlos City). Still other LGUs focused on mechanisms that reduced the cost of service production and delivery. Cotabato City used barangay halls and private homes in the absence of barangay health stations. Cotabato, Olongapo and Naga mobilized health volunteers. Other LGUs tapped additional funds from higher levels of government and the private sector. Olongapo city required its barangays to allocate five percent of their IRA to health and welfare. Surigao City obtained P1.5 million for the construction of a training center from the Countrywide Development Fund (CDF) of a senator. Partnership with the private sector was a popular option. Other LGUs maximized own-resource use to finance development. San Carlos City set aside 30 percent of its IRA (instead of the mandated 20 percent) for its Local Development Fund. Three, the laudable programs are characterized by an integrated and intersectoral development strategy in order to capture the synergy from Program interdependencies. Puerto Princesa's Low-Cost Housing Project is, in reality, just one Component of a wider program called Bantay Dagat Program. Olongapo City strengthened the link between health and sanitation by integrating its environment program with health activities. Reference Manasan, R. 1995. Revenue Mobilization in Local Government

Units:

The Early Years of Local Government Code Implementation. PIDS Discussion Paper Series No. 95-02. Makati City: Philippine Institute for Development Studies.

Chapter

2 Metropolitan Arrangements in the Philippines:An Overview* Ruben G. Mercado and Rosario G. Manasan contemporary regional development phenomenon occurring n the Philippines is the emergence of new regional spaces hrough the formation of metropolitan arrangements. A metropolitan arrangement is a conglomeration of a highly urbanized city and the local government units contiguous to it, engaging in cooperative urban development ventures. Metropolitan/Arrangements vs. Decentralization Both th/e 1986 Philippine Constitution and the 1991 Local Government Code grant local governments the power to group themselves for purposes commonly beneficial to them. While these provide the legal basis for some intergovernmental structure as in metropolitan arrangements, the creadon of such a structure is interpreted by some as a form of re-centralization and a potential threat to the autonomy of local governments. Advocates of metropolitan arrangements counter that metropolitanization in fact strengthens decentralization when local governments themselves initiate such move. This view sees metro arrangement as a refinement of the decentralization thrust since it allows for a subnational level government as against central government provision of services characterized by economies of scale and externalities. From an economic standpoint, urban services can be more efficient if they are jointly planned and delivered thereby creating economies of scale. Moreover, greater positive externalities will spill over to society as a result of metro arrangements. There is, of course, difficulty in determining the best organizational structure to adopt considering that LGUs have equal * First published an PIDS Policy Notes No. 98-10 entitled Philippines: A New Urban Development Challenge."

_MetroDolitan

Aslangements

in the

164

ManagingUrbanizationUndera DecentralizedGovernanceFramework

pohtical legitimacy. Competition and antagonism may hinder the prospects of a workable relationship among local governments within the metropolitan arrangement. Metropolitan Arrangements in the Philippines With the exception of Metro Manila, metro arrangements in the Philippines are a phenomenon of the 1990s. There are four major precursors of metropolitanization. First, common pressing problems can lead local governments to band together in hopes of a better soludon. Second, regional development programs, which define certain areas targetted for development, often provide the impetus for these areas to metamorphose into metro arrangements. Third, a simple edict from the national government can put a previously nonexistent metro arrangement into the map. And last, the initiatives of the locals themselves can give rise to metro arrangements. Majority of the country's metro arrangements are still in the process of forming their metro bodies. Many have a bias for an authoritarian style of leadership although local leadership is emphasized in executing councils. Again, majority of these metro arrangements are locally led. Local officials make the decisions within the framework of metropolitan bodies. Local governments are the driving force behind the sustainability of metro arrangements since component LGUs give fixed contributions (a percentage of the LGU's internal revenue allotment,) for the upkeep of the metro arrangement. Activities That Metro Arrangements Do Best While there is a general understanding and acknowledgement of the problems confronting them, many metropolitan arrangements still have to formalize systems to solve these problems. Theory says functions that are characterized by economies of scale and externalities are appropriate concerns for higher level governments. Practice bears this out. Water supply, sewage disposal and solid waste management--services requiring areas larger than a local jurisdiction for cost-effectiveness--are generally assigned to metropolitan governments worldwide. The same is true for services such as public health whose benefits and costs accrue to nonresidents of a local jurisdiction (i.e., ser vices which give rise to spatial externalities). Common to all metro arrangements are the pressing concerns of development planning, solid waste management, and transport and traffic management.

MetropolitanArrangementin the Philippines

165

Policy Issues Majority of metropolitan arrangements in the country are still in a nascent stage of development and as such, are still concerned with the problem of solidifying their identity. The following are issues that need to be resolved to enable metro arrangements to evolve into fully-functional political and economic entities: What structure to adopt Many metro arrangements are still searching for their ideal structure. Afew have made their choice but are still shopping around for better options. Problems are inherent in the Choice of structure especially since a core requirement is that it should be acceptable to all LGUs within the metro arrangement. The problem of structure also involves the problem of leadership. There are two sides to the issue. First, who should initialize the process of consensus-building on what structure io adopt. Second, how to determine a mode of leadership agreeable to all. The dominant city is expected to take the initiative because it has the greatest stake. It is recognized as a big brother to lesser LGUs. Moreover, other LGUs are constrained to make the first move, being structurally under the provincial government. Still, there is the apprehension that lesser LGUs may misconstrue the initiative as a political overture to expand power. Unhappily, this can result into a political stalemate. The choice of who should lead the formal structure adopted is thus a major challenge. Clearly-delineated and well-understood roles and functions of all political entities involved in the metro arrangement are paramount concerns for an effective metro structure. A metro arrangement, when it takes on the cloth of a formal metropolitan structure, inevitably also requires a full-time organization to become effective. Financial sustainability Sustainability requires a steady stream of financing to bankroll the metro arrangement. Different modes of financing are open for exploration.

The introduction of a metropolitan structure changes significandy the relationships of political units in the local government system. Cities and municipalities planning to join a metro arrangement

166

ManagingUrbanizationUndera DecentralizedGovernanceFramework

can be faced with conflicting relationships with the province and the metropolitan body. Many believe, though, that this issue is not necessarily a problem in the legal-administrative perspective but may be so in thepolitical reRlm,

Problems arise when local executives prioritize the interest of their respective constituents over that of the whole metropolis. The garbage problem is a prominent issue raised by LGUs for not wanting to join a metro arrangement. Municipalities with vast tracts ideal as landfill sites perceive such arrangement as a means by which they can be co-opted to serve as trash bin for the entire metro area. Harmony in diversity A formidable challenge is harmonizing the activities of sectors and agencies in urban development services. These agencies often develop independently of elected government and may resist participation in metro-wide planning. Sustaining

Metropolitan

Addressing

Arrangements

the issue through effe_ve

metro planning

and manogeme_ A clear understanding of the essentials of metropolitan planning and management, based on the experience of other countries, is necessary and would help identify the fight policy interventions. Effective metropolitan planning and development entails a common vision of preservation and development of the region, a unified economic and political base to implement the vision, and an appropriate metropolitan structure to provide an institutional framework. Ideally, the metropolitan area should also have a unified political jurisdiction and well-coordinated economic agencies operating in the area. Metropolitan planning and management differs from city or town planning since dealing with disjointed political jurisdictions often thwarts unified planning. Dealing with the legal limitations The 1991 Local Government Code, while strengthening the power of local governments, has overlooked the unique requirements of metropolitan arrangements. Serious problems have resulted in the

MetropolitanArrangementin the Philippines

167

sharing of power between capital cities and peripheral municipalities. Meanwhile, although the Constitution authorizes the creation of special metropolitan political subdivisions, it delimits the extent of metro management. It rules that higher jurisdictional bodies such as a metropolitan authority can be established only through an act of Congress and that in the aftermath, cities and municipalities retain their basic autonomy and their local executives and legislative assemblies. These inadequacies should be remedied through appropriate amendments. Agenda for National Policy Metropolitan planning and development is fast becoming a feature of local governance. While most of the groundwork has been undertaken by local governments themselves, the national government plays a critical role by providing the legal framework and environment conducive to such undertakings. Below is an agenda in support of metropolitan development. Review of basic laws There is a need to review Article

l0 of the Constitution

strengthen metropolitan structures and promote metropolitanization. Amendments could include a legal definition of a metropolitan area as a recognized territorial and political subdivision of the country. With recognition, provisions can be made for metro arrangements to exercise powers inherent in the definition. Review of provisions in the Local Government Code The 1991 Local Government Code has overlooked the dynamics of urbanization as it relates to local governance. Rapid urbanization has compelled local governments to expand their political and administrative linkages with neighboring cities and municipalities. There are at least two areas where amendments are needed. First is the assignment of urban functions to a metropolitan unit that is consistent with other LGUs or other government agencies. At the very least, the functions can take into account those which are metropolitan in character. Potential services for metropolitan units to assume include land use planning, traffic management, solid waste management, water and sewerage services, transport services, flood control and management, among others. The second area concerns the functional-relationship of the metropolitan Unit to other government entities which must be made

168

ManagingUrbanizationUndera DecentralizedGovernanceFramework

clear to maximize benefits. For instance, the 1991 Local Government Code gave the Department of Budget and Management power to review LGU budgets in lieu of the Metropolitan Manila Development Authority. This has institutionalized the disjointed programming and budgeting process in the metropolis and prevented the maximization of resources. The same lack of institutional linkage exists with sectoral line agencies making it difficult for the Metro Manila Development Authority (MMDA)to influence their priorities. Recognizing the role of nwtropolitan planning and insthttions Planners should recognize the implications of metropolitanization in the medium and long term. Recognition of metro institutions as orchestrator of inter-local service delivery is also important. The Regional Development Councils, as the development planning and policymaking body in the regions, can provide support to local governments which are politically constrained to initiate metro arrangements.

Research and devdopment Philippine literature on metropolitan planning and management, including rigorous policy studies, are lacking. Focus has largely been only on Metro Manila. There should be more studies in metropolitan governance to assist in policy interventions especially in the areas of institutional development, financial management, urban environmental management and global competitiveness of megacities. Choosing

the Appropriate

Metro Structure

There are three basic models of governance from which local governments may choose their preferred structure. Metropolitan city One is the metropolitan city under which a single LGU has responsibility for all local functions. This structure has the advantage of ease in coordinating activities and implementing plans. Duplication of services is less likely. The formation of a new city also resolves the issue of legal administrative ties between the province and the towns involved in the metro arrangement. Its weak point lies in its general inability to account for intra-city or neighborhood differences in the demand for the package of services.

MetropolitanArrangementin the Philippines

3_t_d__

169

second._er

The second model is jurisdictional fragmentation side by side with a second-tier governance structure, under which the responsibility for the same local functions is lodged with the component LGUs of the metro arrangement. The model promotes economic efficiency by bringing the government closer to the people and consequently, making it more responsive to local preferences. However, it is less able to capture the benefits from economies of scale. It is also not able to address well the problems associated with spillover effects of certain types of services. The creation of the secondtier governance structure in this model is precisely aimed at counteracting this inherent weakness in jurisdictional fragmentation. The upper-tier structure can be any of these three: a council, an authority or a metro government. The difference lies in the sharing of power among the LGUs in the metropolitan arrangement and the leadership structure in the second-tier. The metropolitan development council is a governing body composed of city and town mayors comprising the metro arrangement. Leadership is appointed from among the members. The structure provides relative ease in obtaining national support. A presidential executive order is all that is needed to make it legal. However, financial sustainability of the council is at risk because its budget is tied with the executive department. A metropolitan development authority is a much more attractive structure in view of its relative institutional permanence, greater corporate powers and functions and fiscal advantage. Since it is more of a technocratic organization than a political body, decisionmaking is de-politicized. An authority can only be created through a congressional law. The head of the authority is typically government appointed. A third form of upper-tier structure is the metropolitan government wherein component LGUs are subjected to a higher jurisdictional authority or government with an elected governor. There is a single-tier council and the city and municipal mayors act as area managers. The governor coordinates the sectoral departments of the national government. In the Philippines, this setup will only be possible with the amendment of the Constitution.

170

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Finally, the third model is functional fragmentation under which component LGUs have limited responsibilities for service delivery. The model authorizes autonomous local endties with corporate powers to undertake specific services on a metro-wide basis. This is suitable in addressing economies of scale in capital-intensive services like public utilities and transportation which smaller LGUs would normally have difficulty financing. Corporatizing service delivery also has the advantage of encouraging the management of service delivery by professionals (versus politicians) whose decisions tend to be shielded from political interventions. Moreover, this mode promotes greater cost recovery.

Case Studies of Metropolitan

Arrangements

Owning the Metropolitan Vision: The Case of BLIST Setting an Institutional Framework for Metropolitan Management: Metro Cebu Providing a Metropolitan Perspective to Development Planning: Cagayan de Oro Metro Naga: A Continuing Challenge of Local Autonomy and Sustainability Metro Iloilo: A Struggle for Acceptance and Organization Metro Davao: In Search of Metropolitan Definition Governance and Urban Development: Case Study of Metro Manila

Case

Study

Owning the Metropolitan Vision: The Case of BLIST Ruben G. Mercado and Carmel P. Chammag

contiguous areas in the regional center of the Cordillera LIST stands for Region Baguio, La Trinidad, Itogon, isS_tblan and Tuba-Administrative (CAR). The BUST not a geopolitical entity but a planning area. When the Regional Physical Framework Plan of CAR was formulated in 1990, the BLIST was identified as a major subregional area due to the fast urban growth of Baguio City influencing the adjacent municipalities, most especially La Trinidad. The other municipalities close to the city are showing potentials of becoming the catchment area for Baguio's rapid growth. The BLIST currently plays a key role in the development of the CAR and the Northern Luzon as the region's educational, tourism and commercial center. The BLIST area is also one of the growth nodes of the North Western Luzon Growth Quadrangle (NWLGQ), which is being promoted as an economic and tourism zone linkingthe coastal provinces of Ilocos Norte, Ilocos Sur, La Union and Pangasinan with the BLIST in Benguet Province of CAR. Serious planning for the BLIST area has been undertaken after Baguio City was seriously damaged by the earthquake in 1990. It was thought then that rehabilitating the city should go beyond restoration and should address the city's long-term reconstruction. This necessitates a deliberate attempt to include in the development plan the city's future interaction and integration with its neighboring areas. Metro BLIST is a new term being introduced in this paper, which refers to the Urban BLIST. The original term was Metro Baguio, but was received with a strong negative reaction because it left the impression that the other areas are just extensions of Baguio City. This paper reviews the developments and challenges of Metro BLIST, focusing on the steps needed to deal with its present and future concerns.

174 ManagingUrbanizationUndera DecentralizedGovernanceFramework Development Trends in Metro BLIST The population of Metro BLIST in 1995 is less than half a million, of which about 59 percent resides in Baguio City (Table 1). The population growth rate in the whole area is a little higher than the.national average. However, this average rate is unevenly distributed across each of the political units. While Sablan is growing ata modest rate of 1.67, Baguio and La Trinidad are experiencing very rapid growth of more than 4 percent. In contrast, Itogon and Tuba are losing population, quite rapidly in Itogon. Population density in Baguio City and La Trinidad is high relative to that of other municipalities because having a limited land size, they are home to three-fourths of the entire metropolitan population. Particular land uses would reveal the physical development features of areas composing Metro BLIST (Table 2). Average rates for the entire BLIST area do not accurately represent the land use features of Baguio City and La Trinidad. These areas have definitely larger built-up areas (almost half of the total land area in Baguio City) and smaller forest lands. Pressures of urbanization and urban development are expected to be experienced in the BLIST areas especially within Baguio City and La Trinidad. On the other hand, grasslands and forest lands dominate land uses in the three other municipalities. The BLIST Master (Structure) Plan A master plan has been prepared for the development of what soon will become a Metro. BLIST. This plan is essentially a structure

Table 1. Metro BLIST: Demographic and ! and Characteristics City / Municipality

Bagnio City La Trinidad Itogon Sablan Tuba Metro BLIST Philippines

Population

Level

GrowthRate Land Area 1990(_ km) 1995

PopulatiOnDensity 1995 (persons/sq. km_ 4639.73 1027.51

1990

1995

183,102 48,252

226,885 63,089

4,38 5.51

48.9 61.4

61,773 8,440 39,635

47,781 9,170 39,589

-5.01 1,67 -0.02

423.7 91.6 314.4

112.77 100.11 125.92

2.53 2.32

940.0 300,000

411.18 229

341,202 60,679,725

386#12 68,616,536

Basic source: 1995 Census of Population

and Housing,

National

Statistics Office.

Case Study:MetroBLIST

175

Table 2. Metre Blis_ I-_d Use (in percent) [=md Use Built up Agriculture Grassland Forest Others TOTAL

_ 48.3 1.6 44.7 5,2 0.2 !00.0

La Trinidad 21.1 6.9 60.8 11.1 0.0 100.0

ltogon 1.6 1..6 56.8 39.0 0.9 100.0

Sablan 7.2 _.3 76.3 13.7 .05 100.0

Tuba 1.7 0.0 53.7 43.7 0.9 100.0

BLIST 6.1 1.6 57.3 34.2 0.8 100.0

Basic source: BDUPP Report, Volume B. Source of BDUPP report is DENR - CAR Geology Division, Land Use Map, 1:50,000scale, December 1991.

plan thatconnotesgreaterflexibility than a masterplanwhich is conceptually stadcand fixed. The Urban BLIST planwaspreparedin 1993byajointgroupofEuropean and Filipino consultants following theJuly 1990 earthquake.Although itisexpected thatfuture urbanization willbc feltmore increasingly in Baguio Cityand La Trinidad, theplanconsidereda largerplanningareainviewof the influence and integradonofdevelopmentofotherareassurrounding thesetwo places. Thus,Itogon,Sablanand Tuba,alongwithBaguio and La Trinidad, formcd partofthelargerurban planningarea. Completed inOctober 1994,the planhasalreadyinfluenced theplanningand invcstmcnt programming oflocal govcrnmcntunits (LGUs) as wellas regionalinstitutions, includingthe Regional Development Council (RDC, which consistsof the Cordillera ExecutiveBoard,Cordillera RegionalAssemblyand RegionalLine Agencies)and other government institutions. Since itsformal launchingin1994,theBLIST Urban MasterPlanhasinfluencedthe developmentplansoftheregionand LGUs (BcnguctProvinceand theBLIST LGUs). In addition, programs and projects found inthe planhavebecome aguideorbasisforprogram orprojectproposals forthearea.Consistency withthemasterplanhasbecome one ofthe suggestedacceptancecriteria fortheseproposals. The formulation of the master plan was not an easy undertaking. It was met with strong resistance and open cridcism all throughout the stages of its development from various sectors, even among BLIST member-municipalities. One of the concerns articulated was the impression that the BLIST planning wasa strategy for Baguio City to transfer the city's problems to its neighbors. Some thought that urban concerns were not viewed as important by the municipalities of Itogon, Sablall and Tuba than it was by Baguio and La Trinidad. Because of these sentiments, public consultations and information dissemination

176 Managing Urbanization Undera DecentralizedGovernance Framework were undertaken to clarify the objectives of the planning activity and to raise awareness about the need to integrate plans as well as to involve many sectors in plan formulation and decisionmaking. Potentials for Cooperation The following presents some of the master plan's major development areas where BLIST members can mutually benefit from a strong alliance and coordination: Water supply and distribution One of the most daunting challenges for Metro BLIST is the development of water sources and water distribution. The current water supply (as measured in average liters per capita demand (LPCD) for the area is still below the standard 220 liters (Table 3). Strategies to address this issue include the need to reduce system leakage and to install meters on all connections. The problem of water supply not only pertains to its production but more importantly, the distribution within the BLIST area. Most affected is Baguio City, whose topography constrains it to yield more water from the city's site itself, making water distribution technically difficult and expensive to manage. The situation is further complicated by an institutional problem. The Baguio Water District is perceived to exploit water resources in neighboring areas but does not have the responsibility of serving the needs of areas outside Baguio City. This led to serious conflicts in recent years--confficts that continue to fester the BLIST-member municipalities, x The three new water sources that are located in the BLIST area are the Budacao spring and waterfalls in Tuba, the Mohawk water sources at Baguio Gold Mines in Itogon, and the Irisan spring in Sablan. The challenge of the metropolitan arrangement in BLIST, in this case, is how to have an adequate water supply to meet the growing

1 For example, the municipality of Tuba expressed its opposition to a proposed BLISTwide Water Resources Study (one of the projects proposed to be conducted under the Baguio

and Dagupan

Ikayan of Tuba dated rejected since it uses without addressing domesdÂ˘ and future The municipality of

Urban

Planning

Project).

Resolution

377-96 of the Sangguniang

October 29, 1996 said that "the BLIST Water Resources Study is the municipality as resource tapping for the benefit of Baguio City the issue of revenue sharing and without a study for agricultural, industrial uses of the waters for future investors in the municipality. Tuba has its own Development Plan for its water resources."

Case Study:MetroBLIST

177

TableS. Metro BLIST: Water Demand, 1994-2020 Year

Population

1994 2000 2010 2020

312.000 358,000 421,000 473,000

Source: Baguio and Dagupan

% Served

Average LPCD

Water _ Ave. (cu. m/day)

58 70 80 90

190 210 220 220

34,400 54,600 74,100 93,700

Urban

Planning

Project

Reqti_neuts Peak (cu. m/day) 48,135 73,700 103,700 131,100

(1994).

requirements of Baguio City given the area's continuing rapid urbanization and development and, at the same time, how to pro,vide mutual benefit to the municipalities from where these resot.rces originate.

Sol/dwaste Another important concern is solid waste management, particularly in the identification and development of a landfil_ site for the BLIST area. This is an immediate concern especially for Ba,guio City, whose dumping site is already reaching full capacity, and lotated within the city proper in an inhabited, steeply sloping area. It i_,also a source of conflict between Baguio City and Tuba as solid waste_, flowing down and seeping leachate _reaten the public health ;n the nearby barangay of Tadiangan. The presence of weathered rocks in the area also contribute to the pollution of the groundwater _able and downstream springs. The present dumpsite in Wangal, La Trinidad, is also beset with similar problems. It is located near an inhabited area and adjacent to a cemetery. The high population growth in La Trinidad is expected to further add to its present solid waste disposal problems. The other municip_dities (Itogon, Sablan and Tuba) do not undertake solid waste management activities. Households in these municipalities usually resort to burning or to placing their garbage in vacant lots or river banks, neither of which is enviionment friendly. Thus, these five municipalities stand to gain through reduced solid waste treatment and disposal cost if they come together for a joint development, use and maintenance ofa BLIST-wide solid waste management program. The waste collection scheme can further be made to service the more urbanized areas of La Trinidad and Baguio City as well as other BLIST areas, particularly Tuba. This will necessitate more

178 ManagingUrbanizationUndera DecentralizedGovernanceFramework garbage collection vehicles, equipment better collection system.

and manpower

as well as a

mnqt People in the BLIST area rely on road-based public transport for mobility. Such mode of transport remains indespensable and therefore shall continue in the future. All-weather highways, thus, play a very important role. At present, there are four main roads serving Metro BLIST, all of which needs rehabilitation and major improvement to withstand future earthquakes: Naguilian Road, Marcos Highway, Kennon Road and the Halsema Highway north to Bontoc. Since there is no road linking these major roads, the BLIST Master Plan proposed a Western Link Road that connects Halsema Highway to Naguilian Road (first phase), the Naguilian Road to Marcos Highway (second phase) and Marcos Highway to Kennon Road (third phase). This western link road provides an alternative route to the central business district (CBD) of Baguio City for those bound for La Trinidad or Tuba, thus reducing the number of vehicles passing through the CBD. Other alternative routes should also be developed to relieve the already congested areas such as Baguio City and La Trinidad as well as to encourage the development of peripheral locations. One such route proposed is the Western Link road which, according to the Plan, "will relieve pressure on the existing Baguio-La Trinidad route and open up the north and northwest of Urban BLIST for development." The new road will also serve as an emergency evacuation route, should both Naguilian and Marcos highway become impassable. The planned road also hopes to link Naguilian Road with Marcos Highway and the latter with Kennon Road. The new road will also help decongest Baguio City as travelers can bypass the central Baguio City to reach other areas of Benguet Province. A perennial problem is the heavy traffic between La Trinidad and Baguio along the major thoroughfares (Baguio-Bontoc Road), which continues despite the road-widening measures in this route. The large number of vehicles plying the Baguio-La Trinidad Road also somehow contributes to traffic along the Magsaysay and Bokawkan Road. This is because La Trinidad is where many workers in Baguio reside (and vice-versa). La Trinidad is also slowly transforming itself as a regional government center as some regional government offices

CaseStudy:MetroBLIST

179

(e.g., Department of Science and Technology) have located in the municipality.

Tour/smmanogvnwm Tourism is one of the important sectors in the BLIST economy. BLIST faces greater competition in attracting visitors or tourists considering the wide range of alternative locations in the Philippines and outside the country. Thus, there is a need to develop a comprehensive strategy that will maintain or improve existing tourist attractions as well as identify and develop new attractions or sites, especially outside Baguio City.Among the promising sites in the area are the West Itogon Countryside Park, Asin Hot Springs in Tuba and some water- and hill-based sites in Sablan. In addition, Baguio City's wooded parks, a popular destination for picnics, are no longer as available in the city as before. Instead, communal parks in the other LIST municipalities can be promoted for tourism and recreation, provided such will be complemented by the right facilities and playground for children. The BLIST area is one of the tourism clusters to be promoted under the Cordillera Tourism MasterPlan. Itwill also serve as a primary service center and gateway to introducing other tourist destinations in the CAR. A string of places and activities within their cluster will be promoted. The BLIST municipalities stand to gain from this clustering, as it will ensure that their respective tourist attractions/ sites will likewise be visited.

Baguio City's perennial problem is =squatting"or the prevalence of _infonnal dwellers."There is no definite data on how many squatters there are in Baguio City but they are widely acknowledged to be occupying various kinds of government reservations (such as forest andwatershed reservations) and even hazardous areas (steeply sloping areas). Where to relocate these "squatters _ and identify areas for housing development is a big problem. Baguio City is limited by not only the land area but by the fact that many of its available lands are declared as government reservations (meaning, not available for housing). Through the BLIST arrangement, housing development outside the city can continue to be encouraged, thereby lessening the pressure

180 Managing UrbanizationUndera DecentralizedGovernance Framework on land water resources in Baguio and La Trinidad while promoting economic activities and higher income from real property taxes in Itogon, Sablan and Tuba. Managing Metro BLIST Metro BLIST is fortunate to have a ready guiding framework for its development. Through the comprehensive Structure Plan, the area's physical framework plan has been formulated and policies, strategies, programs, projects, and investment costs, and schedules for implementation have been identified. There are two organizational setups handling BLIST-wide issues and programs. First is the BLIST Consultative Council (or BLIST Forum), which was organized when the BLIST Master Plan was being finalized in 1994. The second is the BLIST Area Task Force created by the North Western Luzon Growth Quadrangle (NWLGQ)Commission. Of these two, the BLIST Area Task Force is the more active in coordinating the area's affairs. As to which of these two organizations is more responsive in promoting the sustained implementation of the BLIST Plan will be discussed in the subsequent sections. Recommended organization for BUST under the Structure Plan The Plan points out two alternative structures that can implement the Plan and other BLIST-wide projects. These are the "metro authority" and the "consultative forum." A metropolitan authority, as explained in the Plan, is a body "which subsumes most or all major political and administrative powers and responsibilities currently undertaken by the individual BLIST authorities." The Plan explains that based on the public consultations, the LIST authorities do not favor such concept for two basic reasons. First, urban population is currently concentrated in Baguio City. The creation of a Metro BLIST would only be appropriate once the BLIST â&#x20AC;˘ population spreads into or increased in the other municipalities. Second, the need to establish a metro authoritywould only be urgent if inteflocal issues are not resolved within political boundaries. It is believed that mayors, however, are "talking" to each other to resolve these common issues. A more workable and acceptable proposal according to the Plan is the formation of a Consultative Forum composed of representatives from the five BLIST members. Figure 1 graphically illustrates the

Case Study: Metro BLIST

181

proposed organization. The basic idea is that the forum can provide the general policy direction on BLIST-wide issues and those that would impact on more than one local entity. At the same time, local entities can directly control projects, service functions and planning activities "where these can be managed locally." Where concerns affect two municipalities, these can be managed jointly on an ad-hoc arrangement. The body can also set up organizations to deal with specific BLIST-wide issues. Examples cited in the Plan include a BLIST Water Board to deal with supply, distribution and identification of new water sources, an Inward Investment Agency to deal with resource marketing and a Land Delivery Unit to manage urban land delivery. The forum is envisaged to be composed of not only the five municipalities but also representatives from the provincial government, relevant national and regional agencies, nongovernmental organizations (NGOs) and leading private sector groups. Existing BLIST Structure It is difficult to categorically state that there is a real institutional mechanism in place to oversee the implementation of the BLIST Plan. A BLIST Consultative Council (or BLIST Forum) was informally organized in a memorandum of agreement signed by BLIST local government units (LGUs) on 19 February 1994. It was tasked to "coordinate the planning, implementation and monitoring of development activities in the BLIST area especially projects and activities that transcend political boundaries." Since February 1994, its members have met sporadically to act as adviser in the finalization of the BLIST Urban Master Plan and to oversee its implementation. Its last meeting was in the first quarter of 1996, to map out plans for the approval of the plan by the BLIST LGUs. Since that time, only the LIST mayors have met informally to discuss mutual issues and concerns. The forum has not yet been officially dissolved. Eventually, Executive Order 175 was issued creating the Northwestern Luzon Growth Quadrangle (NWLGQ) Commission (conveniently called the North Quad) which would be responsible for the overxll direction, coordination and supervision of the entire NWLGQdevelopment efforts. Under this Commission, the Quad East (or BLIST Area) Task Force, organized on March 26, 1996, was responsible for promoting the BLIST area as a growth node. Figure 2 presents the current organizational structure of the said task force.

Figure

I. Proposed

OalganiT_Uion for Metro BIJST

General Policy

Under

the Structure

Plan

(e.g., Structure Plan coordination, Water Supply, Tourism) CONSULTATIVE FORUM ON BLIST-WIDE ISSUES

]

, _ Joint Projects

Development Area

Plan Projects (specific examples)

Countryside Park

National _

I ' C

Regional _-_d Provincial

Western Link Road

Development Areas & Central Area

-_. a" o

Private Sector etc.

Development Area

Q-

o. Oh-3

3 Individual Responsibilities (to organize & coordinate) Source: BDUPP (1994).

3 [

Local Planning/Feasibili_/Fmancing/Development Controt/Im)lementation

O_ _"

Case Study:Metro BLIST

18,3

The BLIST Task Force (BTF) essentially has the same composition as the Consultative Forum under the BLIST Plan. The BLIST Plan proposed to consist of five mayors with representatives of the provincial government, other relevant national and regional agencies, NGOs and leading private sector organizations. The function of the BTF is to oversee the planning, coordination and implementatioi, of programs/projects in the BUST area within the context of the overall North Quad Plan. The same Consultative Forum of the BLIST Plan is being retired now by the BLIST Task Force on the rationale that the North Quad Plan is consistent with the original BLIST Master Plan. Whether the BLIST Task Force has been addressing the very basic issues of the Structure Plan is a sensitive question. Those in the know would claim that the BUST Task Force has been tackling these urban development issues and are trying their best through their regular meetings to address such. For example, in terms of solid waste, the agreement of the BTF in their February 1998 meeting is to wait for recommendations of the consultancy firm undertaking a feasibility study on the BLIST solid waste project. On the other hand, others think that since the local governments in the BUST area are still singly undertaking solid waste management in terms of recycling and re-use of refuse as well as landfill site identification through local or nationally assisted programs, it may indicate that the BTF may not be completely successful in this regard. It should be emphasized that the BLIST LGUs are aware of the need to have a common solid waste management system for the entire BLIST area. The same holds true for water supply distribution and development of new water sources. Also, the fact that other urban development concerns such as housing shortage, traffic, transportation are not given much attention by the BLIST Task Force may add to the need for a more responsive BLISTwide structure other than the Task Force. In terms of projects, the BLIST Task Force was able to exert some "pressure" on line agencies to "implement" the identified BLIST projects. The NWLGQ Commission _champions" these identified priority projects to then President Fidel V. Ramos and the heads of the national departments. These priority projects refer to those identified in the BLIST Plan such as the Western Link Road and the West Itogon Countryside Park. It may, however, be unreasonable to judge the effectiveness of the BLIST Task Force on the basis of how it addresses these concerns.

184 ManagingUrbanizationUndera DecentralizedGovernanceFramework Functionally, it was created to look into area project planning, coordination and implementation in the context of the North Quad Plan. Moreover, activities of the Task Force are also determined substantially by higher order structures and the availability of funds within the NWLGQ Commission. The BLIST Task Force, by virtue of its name, is not a policymaking body but an implementing arm of the larger structure (the NWLGQCommission) and gets its overall policy guidelines from the Commission. One of the policy guidelines of the Commission is that activities to be promoted within the BLIST Area should complement or be supportive of other activities being promoted in other growth nodes within the North QUAD Area. Given such a case, it can be said that there is a form of structure, i.e., BLIST Task Force looking at BLIST concerns. However, its propensity and motivation to deal with the larger and broader concerns and the scope of its responsibilities can stand improvement, Recent events in the CAR, particularly the revival of the metro issue, show the lack of mechanism that deals with current urban concerns. Various groups now have different understanding or interpretation of the "BLIST cooperation," which surfaced with the rejection during a plebiscite of the Cordillera Autonomous Region Act. 2 To all these, the Office of the President had initiated reforms in the management of the BLIST by tasking the National Economic Development Authority-CAR to draft an executive order that will create a BLIST Coordinating Council. Points

for Consideration in Handling Metro BLIST Given the preceding account of development planning in the BLIST area and the institutional transformations that took place, the following may be of value to policymakers who would want to take a second look at BLIST and the challenges that it continues to face.

Recently, the Metropolitan Baguio concept was again revived as a means of spurring development in Baguio City and its neighboring areas after the defeat of Republic Act 8438 (An Act to Establish the Cordillera Autonomous Region). An article in the March 29, 1998 issue of M/d/and Cour/er rifled "Groups Asked To Be Calm on Post-Autonomy Moves" mentioned that some leaders vowed to convert Baguio City and its neighboring towns into a Metro Baguio status similar to that of the Metro Manila Development Authority. Likewise, an article rifled "Autonomy Officially Rejected" in Z/g-Zag dated March 15, 1998 mentioned that the "creation of a Metro Baguio composed of Baguio and adjoining areas was also reiterated by Congressman Edgar Avila as another avenue for development" The revival of the metropolitan Baguio concept came a_ this was perceived to be a strategy to achieving development at least for Baguio City as an alternative to the rejected Cordillera Autonomous Region Plala.

Case Study:Metro BLIST

185

]F_I_L_, 2. BUST Ate-. TaskForceUnder theNWLGQ

(Governor of Benguet

Province)

Clmlrmml

, J

(Mayor of Baguio

City)

Co-Chsirmg

1 .(NGO Rep)

1 (BLIST

Mayors,

Line Agencies)

Owning the vision and revonsidmng the benefits of coopem6on The difficulty in instituting a mechanism to handle BLIST concerns can be partly attributed to the municipalities' seeming lack of appreciation of the benefits to be gained from cooperation under one structure. Although they understand the importance of the BLIST Plan, the mayors are uncertain about the benefits. The historical resistance and the allegation that the plan will mostly benefit Baguio while the adjoining municipalities will only absorb Baguio's" dirt may have created a barrier to forming a more solid cooperative management or structure in the BUST area. The mayors also fear that they may consequently lose their executive powers and prerogative to the formal structure that will be installed for this purpose. Looking at BLIST as a "single organism," one of the metaphors shared in one of the BLIST public consultations, may provide a graphic concept of a BLIST cooperation. It would be worthwhile for municipalities to revisit what they have conceived to be the benefits as well as their major contribution to the cooperation as expressed during the various consultations held for the BLIST plan preparation (Table 4). From this initial listing, they can sit down again and validate or add other items they expect from the cooperation, and discuss how they can work out their full realization. In,vb_ing a more binding and authoff__6ve structm'e It is important for local governments to talk to one another. Local governments in the BLIST area discuss mutual concerns but

186 ManagingUrbanizationUndera DecentralizedGovernanceFramework the public have complained that *talking takes too long." This concern indicates the public's clamor for local governments to deal with issues with dispatch and authority; especially on immediate issues. To effect such call, a strong management structure has to be in place. As have been the experience of many emerging metropolises in the country, the crafting of an appropriate institutional structure is not an easy undertaking. Metropolitan arrangements in the Philippines vary in form, functions and scope. Under the current decentralized system, however,the structure that has received much attraction is one that guarantees LGU executives sufficient powers while surrendering certain functions or responsibilities to an integrative body. A menu of options is available, including a metropolitan government, a metropolitan corporation or a reconstituted political entity. It may be worthwhile to evaluate two alternative structures proposed in the Structure Plan. First is the metro authority. Defined as a body "which subsumes most or all major political and administrative powers and responsibilities currently undertaken by the individual BLIST authorities," the metro authority is close to establishing a metropolitan government. However, it is not feasible to establish because of resistance from the BLIST municipalities. Also, it violates the present Constitution. The present charter safeguards LGUs from any form of disempowerment as a result of the establishment of metropolitan authorities or similar bodies. The other proposal calls for a consultative forum that is similar to a metropolitan council (as in the case of Metro Naga and Metro Cebu) in that membership largely consists of the member municipalities. Leadership, however, is not well defined in this â&#x20AC;˘proposed forum. Perhaps one can derive a lesson from the experiences of a former Coordinating Forum whose leadership was vague and eventually ceased to exist. _It may be workable to adopt such model for evolving a new BLIST structure. However, the structure should have a comprehensive mandate, power and authority, have the independence to work out its own policies within the BLIST area of coverage (not necessarily being limited to working within a higher framework of development), be given sufficient funds for its operations and have a full-time secretariat. There are instances where the need for cooperation is so glaring and completely understood but not one of the member municipalities or cities would want to take the initiative. Generally, the initiative is

Case Study:MetroBLIST

187

Table 4. Expected Benefits From and Share in the BLIST Cooperation BUST

Wbat It Can Benefit

What It Can Simre/Prevlde

Baguio

Water source from Sablan, Itogon, Tuba or La Trinidad to meet high demand for water.

Perform the role of a service center to LIST. Provide a sustainable market for

Po_ble an-angements landfdl s/re.

for a ccmmnon

Better traffic situation espcciaUy with effective coordination with La Trinidad. De-congestion

LIST products

and services.

Provide payment for water provided by LIST municipalities. Provide gateway to other BLIST tourism sites.

as other _

(/ndusuial,r_dentt_,c_

f_ctiom

and institutional) can be relocated to the other LIST municipalities. Cleaner, better urban environment with the decongestion of urban functions and better traffic situation. La Trinidad

More integrated approach to better handle urban growth and expan_on especially in the aspect of housing and road development,

Provide an altemat/ve busine_, educational, industrial center and residential area for Baguio residents or other in-migrants.

Water eourccs from Sablan, Tuba or Itogon.

Provide poesible area for landfall. Tourism sites.

Local economy more developed due to relocation of certain urban functions such as commerce, education, industry, etc. and due to more expanded and intensified tourism activities. More employment opportunities and potential for higher income for its residents.

Agricultural production

area.

IndusU-ial sites for light, nonpollutive, low-water consumption industrieS.

Higher revenue collections from greater real property and businem taxes collection on the part of the LGU. Itoggn

Tourism plans can increase employment oppornmities and income of residents. Road development

Provide water source. Provide land for housing, industrial, residential purposes.

for better access. Provide possible area for landfill.

188 Managing Urb:,,_ization Under a Decentralized Governance Framework Table 4 (continued) _JST

What It C_t Benefit

What It Cam Share/Provide

Itogon (cont'd)

Local economy more developed due to relocation of certain functions such as commerce, education, industry,

Provide area for countryside tourism.

etc. and due to more expanded and intensified tourism activities. More

Agricultural

production

area.

employment opportunities, potential for higher income of its residents. Higher revenue collections t/or' real property and business taxes on the part oftheLGU. Additionalincome from payment of waterfrom otherBLIST municipalities_ Market foritsagricultural products. Sablan

Road development and positive effects on transport of vegetable produce.

Provide water source.

Resolution of boundary La Trinidad and Tuba.

Provide possible area for housing and industrial sites.

Provide possible area for landfill.

disputes with

Local economy more developed due to relocation of certain functions such

Tourism

sites.

as commerce, education, industry, etc. and due to more expanded and intensified tourism activities. Better

Agricultural

production

area.

employment opportunities, potential for higher income for its residents. Higher l_evenue collections from real property and business taxes on the part of the LGU. Additional income from payment water from other BLIST municipalities.

Market for agricultural products leading to higher income. Tuba

Road development.

Provide water source.

Arrangement can provide â&#x20AC;˘ opportunity for local government to determine resource utilization and set

Land fo/- residential, institutional, commercial, industAal purposes.

appropriate

Tourism

user fees for the same.

site.

Case Study:Metro BLIST

189

Table 4 (continued) IKJST

What It Can Benefit Additional income from payment water used by other BLIST municipalities.

What It C_m Share/Prevbie of

Agricultural production

area.

Possible area for landfill.

Local economy more developed due to relocation of certainfunctionssuch as commerce, education, industry, etc. and due to more expanded and intensified tourism activities. Better employment opportunities and potential for higher income for its residents. Higher revenue collections from real property and business taxes on the part of the LGU.

.....

Market for agricultural products leading to higher income.

Basic source: Documentation of various municipal public consultations inputs from NEDA-CAR Technical Staff.

on BDUPP, 1994 and

expected to come from the dominant city because it has the greatest stake in the arrangement and is usually regarded as the "big brother" to other LGUs. Also, the other municipalities are ethically constrained to make the first move because they are structurally under the provincial government. Even though Baguio City admittedly has the largest stake in the arrangement in the immediate term, it is concerned with the sensitivities of the other municipalities. Hence, its initiative might be misconstrued as a move to expand its political power or authority given the past adverse reaction against the formation of Metro Baguio. On the other hand, the "little brothers" (adjoining municipalities), who find the urban development problems too enormous and complex, may prefer other agencies to handle or coordinate the resolution of the metropolis problems, but with their cooperation. The mayors of these other "little municipalities" can then concentrate their efforts on "doable" and "high-impacC projects within their political jurisdiction. In this particular situation, national leaders or regional authorities can provide the push for the creation of the needed management structure. There are existing models that can be

190 ManagingUrbanizationUnder a DecentralizedGovernanceFramework replicated in this regard. The recent establishment of the Metro Cebu Development Council is an example of a Regional Development Council (RDC) initiative. On the other hand, the Metro Naga Development Council is an arrangement formed by Naga City and the 14 municipalities in the province of Camarines Sur but only legally created through an executive order by the President so it can find funding support for its programs and projects. In all these options, it would, however, be unwise to adopt a model without understanding the socioeconomic and political context within which the model was proven to be workable. It is important to realize that the failure to operationalize the BLIST metropolitan arrangement is largely due to the difficulty in fostering local ownership of the vision for BLIST area. Until this is resolved and fully comprehended by all concerned, structures that will be placed even those originating from top leadership will not be effective and sustainable. Conclusion The paper has suggested the need for BLIST municipalities to reconsider their full support to a cooperative arrangement by considering the benefits to each and the support they can give to such cooperation. With this as the foundation, an institutional or management structure can be created to directly address the immediate and long-term urban BLIST concerns. The BLIST Task Force plays an important role in realizing the North Quad Plan and in facilitating the implementation of the BLIST Master Plan, given the "hiatus" of the Consultative BLIST Forum. Thus, it is suggested that the Task Force be retained. However, it seems imperative to evolve an independent structure (similar to the BLIST Forum) thatwill directly handle key urban issues such as water supply, solid waste management, transport, road development and tourism. This structure should likewise oversee the updating or re-planning of the BLIST area and coordinate, implement programs/projects. Given the sociopolitical dynamics in the area and in the spirit of decentralization, such structure must be locally led and managed. However, it must be clothed with sufficient powers and authority to equal the responsibility involved in setting up BLIST-wide policies. The public complaint that "talking takes too long" may be addressed if local government try to get organized, make agreements

Case Study:Metro BLIST

191

more binding and translate the same into concrete actions. The BLIST mayors have to be the first to fully own or espouse the vision presented in the BLIST Master Plan and recognize the urgency to come together to attain greater synergy in their development efforts. References Baguio and Dagupan Urban Planning Project. 1994. Baguio (Urban BLIST) Main Volume, Final Report. Department of Environment and Natural Resources - Cordillera Administrative Region (DENR-CAR). n.d. Feasibility Study for Integrated Solid Waste Management and Development in BLIST Area of Cordillera Region, Diagnostic Report. National Economic and Development Development Plan 1993-1098.

Authority. 1993. CAR Regional

Case

Study

Setting an Institutional Framework for Metropolitan Management: Metro Cebu Ruben G. Mer_do etropolitan Cebu or Metro Cebu is undoubtedly as wellknown domestically and internationally as Metro Manila. Since the early eighties, regional plans refer to Metro Cebu as the principal urban setdement of the Central Visayas Region (Region VII). Its pre-eminence over the rest of the areas in the region has been attributed to the following: its importance as one of the earliest Spanish setdements; its excellent harbor; and its central location both in the Cebu island and in the whole region. Composition and Management of Metro Cebu What composes Metro Cebu? While the name Metro Cebu has been an accepted term for an extended Cebu City, its composition has yet to be formally defined. Various planning documents, however, have attempted to define the cities and municipalities constitute the metropolis. For instance, the Central V'tsayasRegional Project (CVRP) in 1983 has defined Metro Cebu as consisting of the administrative areas of three cities (Cebu, Mandaue and Lapu-Lapu) and the six municipalities (Naga, Minglanilla, Talisay, Cordowa, Consolacion and Lilo-an). The Metro Cebu Development Project (MCDP), which is the reconstituted project of the CVRP, has carried on this definition. The Cebu integrated Area Development Master Plan Study (CIADMPS) undertaken in 1994 redefines Metro Cebu based on a 25-kilometer radius to include the municipality of Compostela. The recently proposed bill for the creation of the Metro Cebu Development Authority (MCDA) defines its composition as one with this metropolitan coverage. Interviews conducted with key informants in the region suggested the inclusion of Danao City. There are others, however, who, albeit unusual, defined Metro Cebu as encompassing the whole Cebu island.

194 ManagingUrbanizationUndera DecentralizedGovernanceFramework The development of Metro Cebu has been carded out by a council called the Metro Cebu Planning Advisory Council (also known as MCC). It is chaired by the governor of the province, with the mayors of the three cities and six municipalities as members. The MCC is supported by a secretariat drawn from the regional offices of the Ministry of Local Government and Community Development (MLGCD), Ministry of Human Settlements (MHS), and the National Economic and Development Authority (NEDA) (whose Regional Executive Director serves as the head). The MCC has been beset not only by insufficient manpower to work full-time on Metro Cebu planning but more importandy, by its weak authority to implement the decisions because city and municipal governments can elect not to adhere to the recommendations. The MCC thus became a shortlived body when the UP School of Regional Planning (SURP) undertook the Metro Cebu Land Use and Transport Study (MCLUTS), which later became the urban component of the CVRP. (The CVRP became the MCDP.) The MCDP structure took on the management of development activities in Metro Cebu although geared mostly on infrastructure provision. The MCDP, however, covers only six out of the 10 local government units (LGUs). Four municipalities excluded are those. of Liloan, Compostela, Minglanilla and Naga. This study is an attempt to present the metro-wide challenges faced by Metro Cebu in critical services and discusses the issues and optional management structure that can deal with these challenges. Metro Cebu Population and Land Characteristics _ There are about 1.4 million people in Metro Cebu based on the 1995 Census of Population and Housing. Metro Cebu's growth rate during the five-year intercensal period 1990 to 1995 approximates the national average (Table 1). Looking at the cities and municipalities that constitute the metropolis, one finds that except for the cities of Cebu and Mandaue, population growth rates registered more than the metropolitan average. In fact, except for the municipality of Naga, these areas grew more than three percent during the period.

I For the purpose Metro C,ebu.

of this paper,

Metro

Cebu

shall refer

to the CIADMPS

definition

Case Study:MetroCebu

195

Table 1. Metro Cebu: Demographic Chamcteri_cs City / Mmfidimllty

Population

level

1990 Cebu City Lapu-Lapu City Mandaue City Cordova Consolacion Lfloan Compostela Talisay Minglanilla Naga Metro Cehu Phl "lippines

610,417 146,194 180,285 22,331 41,270 42,587 22,006 97,955 50,875 60,425 1,274,345 60,677,725

_mCdl ra_ 19901995

Land area (sq. lun)

1.54 3.29 1.46 3.34 3.35 3.43 3.04 3.92 3.94 2.52 2-$9 2.49

315 58 25 17 147 52 54 86 66 102 923 300,000

21 29 77 15 3 9 4 13 9 6 15 229

1.3 2.3

708 708

18 32

2.3

212

]995 662,299 173,744 194,745 26,613 49,295 50,973 26,499 120,292 62,523 69,010 1,435,903 68,616,536

Population Density 1995 (persons/ha)

Source: National Statistics Office (1995).

Table 2. Urbanization Projections for Metro Cebu Metro Celm in 1990 MÂŠwo Gclm in 2010 Land Area with le_ erosion potential in Metro Cebu 2010 Source: JICA/RDC

VII (1994).

Population density in Metro Cebu and for the areas constituting it is relatively low. However, because of its hilly topography, only 212 square kilometers out of the 708 square kilometers have been assessed to be areas with less erosion potential (JICA/RDC VII 1994). Thus, rapid urbanization would bring pressure to hilly areas, which may lead to environmental problems such as erosion, further deforestation and flooding of lowland areas, in the process. Thus, the CIADMP study team has proposed a desirable urbanization projection for Metro Cebu of 2.3 million or a density of 32 persons per hectare or 92 persons per hectare based on the land area with less erosion potential (Table

2). Current

Activities

in Metro Cebu

The development of Metropolitan Cebu has been propelled primarily by the various regional projects implemented. Metro Cebu has been continuously promoted as the regional administrative and

196 ManagingUrbanizationUnder a DecentralizedGovernanceFramework industrial center of the Central Visayas Region and the major link with the rest of the Visayas and Mindanao. With the presence of an international port, airport and other higher-order infrastructure and facilities, it is most preferred as the site for a regional industrial center (RIC). I_ devdopment The MCDP in the past nine years has implemented infrastructure projects in Metro Cebu. These projects include the construction/improvement of national roads, bus terminals, and traific management. These infrastructure efforts aim to assist local government in Metro Cebu in coping with rapid urbanization as well as enhance these areas' potential for further economic development. The responsibility over the coordination and management of the MCDP lies with the Regional Development Council (RDC) of Region VII. Health and sanitation Cebu City, through its City Health Office, has been initiating various activities on health services and sanitation together with the other city and municipal health offices in Metro Cebu. For instance, some foreign-funded projects being implemented in the different LGUs require each LGU to prepare and submit its work and financial plan. Initially, all health officers representing each LGU meet beforehand to discuss how best to synchronize their efforts so that complementarities are achieved and duplication or inconsistencies are avoided in the implementation of the project. This applies to the purchase of health equipment and other facilities. Such mechanism for joint planning has been established with the initiative and leadership of the Cebu City Health Officer. Potentials

for Cooperation

Sol/d waste ma_ In the absence of data for other areas in Metro Cebu, Table 3 presents a picture of the quantity of solid waste generated in Cebu City alone. CIADMP study revealed that a significant volume of garbage remains uncollected. Household and industries continue to dump their garbage along the main streets as well as in many rivers and creeks.

Case Study:MetroCebu

197

Table 3. Quantity of Solid Waste in Cebu City 1991 Average solid waste Generation (tons/day)

1992

1993

309.53

343.19

859.91

953.31

363.1

Total solid waste Collection (1000 cu. m) Average solid waste colloclion per.day (cu. m/day)

775.0

Source: J'[CA/RIX_ VII (1994),

Garbage disposal in the metro area is a growing problem as garbage collection. The absence of a sanitary landfill for the metropolis' garbage provides some health risk as open dumping can increase the risk of disease outbreak or lead to an epidemic. Moreover, water-borne diseases may be caused by continued disposal of garbage near water systems such as rivers and creek. Sanitary landfill investment, however, is admittedly huge and so is maintaining its operation. Considering the land and money involved to develop and maintain a landfill site, this cannot be undertaken by one local government unit. Economies of scale can be realized in this regard through an inter-LGU cooperation.

Tra In Metro Cebu, transport and traffic management is one of the priority concerns. Although its traffic situation may not be as severe as in Metro Manila, Metro Cebu is confronted with traffic congestion especially in its major road sections. If the existing situation is not improved (i.e., unless new road constructions and/or road expansions are undertaken in the future), aU of these areas will be totally clogged with road users by the year 2000. Table 4 shows past and future traffic demand and how this translates in selected road sections of MetroCebu. Metro Cebu's traffic demand will continue to experience rapid growth of over 3 percent in the millenium. By then, its major roads would have gone beyond their full capacity as revealed by the computed congestion ratios. Traffic management and engineering as well as road development in the metropoliswill need a strong cooperation among LGUs. The challenge also applies to the provision of railway transport and reorganization of routes of various existing public transport modes.

198 ManagingUrbanizationUndera DecentralizedGovernanceFramework Table 4. Past and Future Traffic Demand in Metro Cebu, 1979-2010 Person trips (000) Private Public Total Annual growth rate Selected sections (person trips in 000) Talisay_-.ebu Cebu-Mandaue Mandaue-Consolacion Mactan-Mainland Road congestion ratio Talisay-Cebu Cebu_Mandaue Mandaue-Consolacion Mactan-Mainland Assumptions Population (000) Trip maker (000) Trip rate per trip maker Private vehicles (000) Source:JICA/RDC

1979

1992

2000

2010

111 1029 1139

347 1346 1695

583 1728 2311

901 2309 3210

3.05

3.89

3.29

35 51 25 17

61 110 55 36

85 159 82 58

1.18 0.64 1.25 0.86

2.03 1.38 2.75 1.8

2.83 1.99 ' 4.10 2.90

1,274 956 1.68 65

1,712 1,284 1.8 110

2,301 1,726 1.86 170

VII (1994).

Water su_/y d/st__ As early as 1975, a metropolitan organization has been formed to develop and manage water supply and distribution in Metro Cebum the Metro Cebu Water District (MCqArD).The MCWD is tasked to plan, design, construct, operate and maintain water works within areas of Metro Cebu, namely, Cebu City, Talisay, Compostela, Liloan, Consolacion, Mandaue City and Lapu-Lapu City. Funding is sourced through the Local Water Utilities Administration (LWUA). Recent studies (JICA/RDC VII 1994; David et al. 1998) show that the water supply capacity of the MCWD at present isnot sufficient for the growing number of urban population in the metropolis. Table 5 provides a picture of the current shortfall and the projected demand and supply of urban water up to the year 2020 based on the identified water projects during the period, especially the operation of the Lusaran Dam. The challenge for Metro Cebu, therefore, is how it will formulate a long-term solution to the current and future water supply problem. This will mean more projects that allow the development of other alternative water sources, including the rehabilitation of non-

Case Study:Metro Cebu

199

Table 5. Water Balance in Metro Cebu (in cu. m/day)

WateÂ˘ suppty

1995

1997

2000

108,118

116,466

157,000

2005

2010

2015

2020

417,000 257,000*

547,000 387,000*

807,000 647,000*

807,000

Water Demand PIDS1 (High use anumpaon)

293,483

357,583

429,374

508,092

592,485

680,806

PIDS2 (Low use assumption)

254,352

309,905

372,124

440,346

513,487

590,032

aADMPS

216,374

270,501

331,944

406,877

Expcrtelligence Electrowatt

227,744 223,540

270,662 281,794

509,999 349,469

360,067 424,543

JICA

161,918

211,507

316,164

478,356

609,315

763,288

Ass.)

Source:

(Med.

David et.al. (1998).

* Without

Lusaran

Darn Project.

operational dams, have to be fast-tracked. More importantly, as David et .al. (1998) has highlighted, there is an urgent need for a more integrated and holistic approach to the otherwise fragmented and relatively weak institutional structure that handles water resource management. The study also sought the resolution of current conflicts related to inter-LGU water transfers and intersectoral use of water such as the case of Compostela wellfield. Institutional Structure for Managing Metro Cebu Metro Cebu's development has been carried on without a formal inter-local government structure. Cebu City, as the "Big Brother," has traditionally taken the lead in many respects and since the reorganization of the Regional Development Council (RDC) in the region, the concerns of the metropolis has been addressed especially with the implementation of the MCDE Lately, there has been a stronger call for the establishment of a permanent body that will look closely at the various needs of the metropolis beyond the infrastructure needs already addressed by the MCDP.

M0ot/t.. In 1998, a bill creating a Metropolitan Cebu Development Authority (MCDA) has been filed in Congress. The proposal is almost

200 ManagingUrbanization Undera DecentralizedGovernanceFramework the replica of the MMDA as far as functions, responsibilities and organizational structure are concerned. The only differences are that MCDA is not under the Office of the President and the Chairman will be elected annually from among the members of the council. In contrast, the MMDA's chairman is a presidential appointee. Interestingly, however, the MCDA general manager and the assistant general managers shall be appointed by the president. In addition, the Chairman is vested the rank, fights and privileges of a cabinet member--in effect making him part of the presidential cabinet. Because of political complexities in the region, the proposed bill has waylaid and the call for its passage was received poorly. Metropolitan council Triggered by the end of the MCDP and the absence of a coordinating body to plan, implement and monitor metro-wide programs and projects, the RDC passed a resolution on ] 2 December 1997, approving the creation of a Metro Cebu Development Council (MCDC). The MCDC shall be the coordinating body that will deal with the priorities of the metropolis, including garbage disposal, traffic management, power, water, mass transportation, peace and order, and maintenance of basic urban infrastructure. The MCDC shall be composed of the governor of Cebu, the mayors of the cities of Cebu, Mandaue and Lapu-lapu and the mayors of the municipalities of Compostela; Liloan, Consolacion, Cordova, Minglanilla,Talisay and Naga. The former MCDP office project director has been designated as the MCDC executive director, and fund balances, records, equipment and facilities of the MCDP Office will be turned over to the MCDC. The operationalization of the newly created MCDC, however, is yet to happen. The RDC Secretariat, which is the NEDA Regional Office in Central Visayas, has been tasked "to prepare the necessary documents and conduct consultations with concerned LGUs and agencies for the orderly resolution."

and immediate

implementation

of the

One of the most important tasks this new metropolitan organization could initially take on is to clearly define its authority, delineate the roles and clarify the expectations of the various actors that would be involved in addressing Metro Cebu's development priori-

Case Study:Metro Cebu

201

des. There are two levels of coordination that must be addressed. First is the structural relationship and second the functional relationship of these various institutions. With respect to the structural relationship, two levels of coordination must be clarified: vertical and horizontal. Vertical coordination refers to how the MCDC shall relate with the regional institutions especially the RDC. Will the MCDC be under the direct supervision of"the RDC or can it act independendy? Can it deal directly with national government agencies, private groups or foreign institutions? What are and how far can the MCDC exert its power and authority considering that it is a body created by the RDC? What does the term "coordinate _ mean in operational terms in the aspect of project development planning, implementation and monitoting? Horizontal coordination refers to how the MCDC shall deal with government agencies, NGOs, private sector and business groups. No mention was made on how these groups will participate in the MCDC as the composition of the MCDC is purely interlocal government based. In terms of the member-LGUs, how leadership will be determined would be an important Consideration. Will there be an incumbency issue in the leadership of the MCDC and the RDC? On functional relationship, one needs to look at the mandate and responsibilities of existing institutions in the regions regarding provision of urban services in the metropolis. There might be a need to identify which ones MCDC will take on so that all parties concerned can assist each other and avoid or reduce an overlap in functions, Once they have looked at how their roles and functions are and can be delineated, the next step is to discuss and come up with a consensus on how to go about defining their roles further. Conclusion The creation of the MCDC by the RDC can be considered as the first big step toward a more focused approach to Metro Cebu's development in almost 20 years. Defining the composition of Metro Cebu is not direct but implicit in the participating areas of the MCDC. It is not surprising that in the future, the composition will expand to other areas. But first, it has to start somewhere and the 10 local areas in the inner core may provide the impetus for such growth and expansion.

202 ManagingUrbanizationUnder a DecentralizedGovernanceFramework The success of Metro Cebu rests primarily on how well the various development actors cooperate and work togethor. The initiative of the RDC to create the MCDC may be the initial step toward instituting a collaborative system among government agencies, LGUs and the other development sectors.

References David, C.C., A.B. Inocencio, EM. Largo and E.L. Walag. 1998. The Case of Policy and Institutional Reforms in Metro Cebu. Paper presented at the Workshop on Urban Water Issues in Metro Cebu, Cebu City. House of Representatives. 1996. House Bill No. 1316 (Introduced'by Rep. Raul V. del Mar). An Act Creating Metropolitan Cebu, Establishing the Metropolitan Cebu Development Authority, Defining Its Powers and Functions, Providing Funds Therefore and for Other Purposes. Japan

International Cooperation Agency (JICA)/Regional Development Council (RDC) VII. 1994. The Study on the Cebh Integrated Area Development Master Plan (CIADMP).

Metropolitan Cebu Development Project Office. 1995. Final Report on Metro Cebu Development Project, Phase I. Regional Development Council - Central Visayas Region. Regional Physical Framework Plan. . 1996. Updated Central Visayas Regional Plan 1996-1998.

1994.

Development

.1997. RDC Resolution No. 117: A Resolution Approving the Creation of a Metro Cebu Development Council. Republic of the Philippines. 1992. Development Plan 1993-1998.

Central

Visayas Regional

World Bank. 1979. Development Strategy and Investment for the Central Visayas. Working Paper.

Priorities

Case

Study

Providinga Metropolitan Perspectiveto Development Planning:Cagayande Oro Ruben G. Mercado and Cas/m/m E/kdandra agayan de Oro (CDO) is the regional capital of Northern Mindanao and considered the primary gateway to the rest of the Mindanao region s. As a port city, it is a transhipment hub and economically linked with other port cities of the country. With a population of over 400,000 people occupying mostly the urban portion of its 469 square kilometer area, the city's socioeconomic and political influence extends to another 400,000 people sparsely distributed in almost 5,400 square kilometers of the provinces of Bukidnon and Misamis Oriental. It will not be long before CDO develops into one of the bustling metropolises in the country. The perceived emergence of a metropolis with CDO as the core city led to the conceptualization of the Metro CDO Special Development Project (MCSDP) in 1990. With the joint leadership of the Cagayan de Oro-Iligan Chambers of Commerce and Industry and the support of Regional Development Council (RDC) X and XII, the MCSDP paved the way for the Czagayan de Oro-Iligan Corridor Special Development Project (CIGSDP) in 1993. Out of the governmentprivate sector partnership, the CIC Master Plan and Feasibility Study for a CIC International Airport was born, which was completed on November 30, 1991. After two years of public consultation which â&#x20AC;˘ ended with the presentation and approval of the CIC Master Plan by the NEDABoard on September 8, 1992, Executive Order 85 was issued on May 5, 1993, ushering the plan's implementation. However, after five years of CIC investment promotion both locally and abroad, so much still needs to be done specially in the development of projects that will impact on the originally conceived Metro Cagayan de Oro. Authorities later realized that the Metro CDO SDP had focused more on the development of the infrastructure links between CDO and Iligan City. Thus, in 1996, a comprehensive master planning for

204 ManagingUrbanizationUndera DecentralizedGovernanceFramework the Metro CDO was proposed, this time focusing more on the planning for Cagayan de Oro City and its immediate environs. Toward this end, the Cagayan de Oro government undertook preparatory consultations with the municipalities in Misamis Oriental, including Jasaan, VtUanueva, Tagoloan, Claveria, Opol, E1 Salvador, Alubujid, Laguindingan, Gitagum, and the municipalities in Bukidnon including Libona, Manolo Fortich, Talakag, Baungon, Malitbog, and Sumilao. These areas, together with CDO City, comprise the envisioned Metro CDO. Such composition was determined based on the areas' interdependence in watershed and water supply as well as infrastructure linkages for seaports, airports, and highways. The Misamis Oriental and Bukidnon provincial governments were also represented in these consultations. This study aims to discuss recent developments related to the planning of Metro CDO and to highlight areas that need greater emphasis and further improvements. Metro CDO Current Development

and Prospects

Demographic cha_ Almost half or 49.7 percent of the over 800,00 people in Metro CDO, as it is presently defined, is largely concentrated in Cagayan de Oro City (Table 1). The city grew at a high rate of 4.7B percent during the period 1990-1995. The 10-year intercensal growth rate of the city has been high, registering 6.5 percent in 1960-1970, 5.9 percent in 1970-1980, and 4.0 percent in 1980-1990. The development activities undertaken through the years in terms of infrastructure support, investment generation, and the promotion of the city as a regional growth center, especially with the establishment of the country's largest industrial estate in the midseventies, have affected other localities, especially the municipalities geographically close to the city. Thus, one will note that population in most of these municipalities have been growing at rates of over 3 percent during the period 1990-1995. Among these municipalities areJasaan, Villanueva, Tagoloan, Claveria, Opol, and El Salvador whose high population growth rates are attributed to the employmentgenerating impact of the PHIVIDEC Industrial Estate. Other areas comprising the envisioned Metro CDO are also expected to increase both in their population level and growth rate in the near future. The Northern Mindanao Regional Development

Case Study:MetroCagayan de Oro

205

Table 1.Metro CaCayam deOro: DemolFaphicCharacteristics City/ Municipality Cagayan de Oro City MJmmisOriental 1. Tagoloan 2. Vfllanucva 3. Claveria 4. ja,_,q 5. Opol 6. El Salvador 7. Alubijid 8. Laguindingan 9. Gitagum Bukidnon 1. Libona 2. Manolo Fortich 3. Talakag 4. Baungon 5. Malithog 6. Sumilao Metro Cagayande Oro Metro Manila pl'n".'Bplfil_

Population 1990

Level 1995

rate Land area Population density 1990-95 (sq. kin) (persons/

_q.k=)

339,598

428,314

4.75

469.30

913

33,919 17,122 31,130 29,146 20,473 26,721 19,531 15,503 10,994

40,929 21,310 39,020 33,598 23,958 31,500 21,765 16,521 11,327

3.83 4.47 4.62 2.88 3.19 3.34 2.19 1.28 0.60

117.73 48.80 894.90 77.02 80.85 87.13 103.45 16.74 43.40

348 437 44 436 296 362 210 987 261

29,652 61,329 35,379 19,774 14,934 13,494

31,897 67,400 39,378 22,617 16,414 15,640

1.47 1.91 2.16 2.72 1.91 3.0

343.20 405.19 186.40 245.30 581.85 196.95

93 166 211 92 28 79

718,699 7,929,867 60,677,725

861,588 9,454,040 68,616,556

3.69 $.58 2.49

3,898.21 633.21 300,000.00

221 14,930 229

Source: National Statistics Office (1995).

Plan for the 21= Century identified three major events that will shape the future of CDO City and its surroundings. These are the construction of an international standard airport in Laguindingan, expansion and upgrading of the CDO port, and development of the PHIVIDEC Industrial Estate in Tagoloan and Jasaan where an integrated steel mill will be put up. The implementation of these flagship programs will boost economic growth and attract movement of people into these areas. Land use deve_ Cagayan de Oro 1 is the first city in the country to have a zoning plan. Guided by the 1962 zone plan, its growth further accelerated

lCagayan de Oro became a chartered city on June 15,1950 during the term of President E. Quirino. Among the five cities studied in the mid-sixties under the Regional Cities Development Project (RCDP), Cagayan de Oro was considered as one of the best planned cities in the country, owing to its first Land Use/Zoning Plafi dating back to 1962.

206 ManagingUrbanizationUnder a Dec,entralizedGovernanceFramework when it became the regional capital (in 1972) of Northern Mindanao. The region was originally composed of 10 provinces and nine cities. The composition was reduced to seven provinces and seven cities when Region XII was created in 1976. When Region XIII (CARAGA) was established in 1994, the composition was further brought down to only four provinces and six cities. Despite the reduction in the region's geographic size, Cagayan de Oro's socioeconomic influence continues to extend even beyond these areas. In 1986, the city's agriculture, pasture and forestlands accounted for 91.5 percent of the total land area. At present, it is down to less than 82 percent (including open spaces). Almost 60 percent of agricultural lands (37 percent of total) are devoted to corn and coconut, while some 30 percent are aUoted to banana, rice, and cassava. The remaining 10 percent are used to grow abaca, root crops, and vegetables. While builtup areas then was only 8.5 percent, it is now a little over 18 percent and still growing. Residential districts/areas alone increased from 4 percent to 12.4 percent in just a decade (Table 2). The central business district (CBD), which includes commercial and institutional areas, parks and plazas; accounts for a little over 4 percent, while the industrial area is just about 2 percent. The full development of the Phividec Industrial Estate-Misamis Oriental (PIE-MO) and the strategically located mini-industrial parks/ estates will impact on the overall development of the corridor, including the hinter areas, which should by then be reached through farm-to-market and bypass roads. CDO: Mindanao's transhi_ hub Cagayan de Oro City, while being primarily agricultural, has become one of the important commercial centers not only for Mindanao but also for the Philippines owing to its strategic location as a port city. The city's international seaport and trunkline airport facilitate the flow of people and cargoes from the Visayas and Luzon to all points in Mindanao and vice versa. This is through a network of highways originating from the Agora station, a five-minute drive from the seaport and 20 minutes from the airport. Foreign ships unload and pick up cargoes coming from as far south as Davao City. Luxury liners, waterjets and passenger-cargo boats ply the Cagayan de Oro-Manfla route (via Cebu, Iloilo or Bohol) almost

Case Study:Metro Cagayande Oro Table2. Exi_

207

L_d Uses

LandUse_

1996

1986

Agriculture Pasture Forestlands Wetlands and miscellsneous

37.0 38.0 14.0 9.5

Bvdltup m-eas Residential Others

8._ ._:.1 4. _:

lg.t l, %

Institutional, parkBand plazaJ and commerciat Residential

_,0_ _,_.38

Tetel

100,0 %

I_,.0%

Source:CAtyPlanningand Development Office,C_gaya_ dÂ˘ 0__ City,

Table $. PassmgerandCargoTra_ attheCI)O-PMO andAirport 1995 ==

paperer r

CDOPMO*

,_,I_7,68_

Airport Total

324,442 _4_1,124

1996 __..C._'gO Passenger

1997 Cargo

Pas_nger

2,147,787

4,B29,517 mt

2,748.777

8,263 mt

85S,872

9,093 mt

516.571

4=_09&_144mt

2_i01,659

4.q29,610 mt

4,085,281

Annual Growth Rate (1995-97)

3_65,348 14.7%

C_,go 4,385,351

- ....

_r_t

9,[29 mt 4,$94,480

3.6%

* CDO-PMO covers the parts of CDO, Misamis Oriental .and Camiguin. Sources:

Philippine

Ports Authority

(PPA) Region X;, Air Traffic Office (ATO) Region X.

daily. Moreover, owing to Cagayan de Oro's long-standing trade links with Cebu, the Cagayan de Oro_ebu route has the heaviest traffic as may be gauged by the two-to-three passenger cargo and waterjet trips taken daffy by four of the country's major shipping companies (WGA Ferries, Sulpicio Lines, Tram-Asia, and Negros Navigation). A random interview with arrivees confirms that final destination is Cagayan de Oro and including Bukidnon, Camiguin, Lanao, Davao, and even Cotabato and Zamboanga. During the last three years, the passenger

208 ManagingUrbanizationUnder a DecentralizedGovernanceFramework and cargo traffic rose by 14.7 and 3.6 percent, respectively (Table 3). The Agora bus stadon is filled with passengers to/from all major centers in Mindanao, specially the Cagayan de Oro-Bukidnon-Davao route, 24 hours of the day. On the other hand, the Cagayan de Oro trunldine airport serves the needs of the Cagayan-Iligan Corridor as well as the provinces of ARMM and Region XII. The airport is served by four airline companies (Philippine Airlines, Cebu Pacific Air, Grand Air, and Mindanao Express).

Econom_ andfinanÂ˘4_ acc/_t/es From the 1989 Survey of Establishments by the Department of Trade and Industry, 14 percent or 8,312 of business firms in Northern Mindanao (the old Region 10) were located in Cagayan de Oro City. About two-thirds of the total were trading firms; almost one-fourth were service establishments; and the remaining 10 percent, manufacturing and agribusiness (Table 4). Cagayan de Oro serves as the commercial center of Northern Mindanao. It trades in consumer goods, construction materials, hardware and auto supplies, and agricultural products, most of which are produced in the region.Its dominant industries are food processing, furniture and metalworks. Agribusiness largely constitutes livestock and poultry, and fruits/crops production and processing. Cagayan de Oro is likewise the financial capital of Region 1.0 and nearby areas. In anticipation of more growth in commerce and industry, especially along the corridor, banks and financial institutions have converged phenomenally in the regional capital. More than 60 bank-branches, 200 or more financial institutions, including pawnshops have located in the city. Many of the banks provide regional banking services with broader authority to act with dispatch on major

Table 4. Types of Busin_-ssEstablishments Sea_

Number

%Share

Txading

5,486

66+0

Service

2,070

_4.9

Manufacturing andAgrilmsiness

756

9.1

Total

8,312

100.00

Case Study:MetroCagayan de Oro

209

financing and credit decisions involving domestic and foreign transactions. The frenzy of activities within the Metro Cagayan de Oro and its influence areas paves the way for specialized credits such as Quedan financing, International Guarantee Loan Fund (IGLF), integrated rural financing, including Barangay Credit Guarantee Schemes. The government likewise offers regional development funds for agribusiness, small and medium enterprises, schools and hospitals as well as special development financing for strategic sectors such as transportation and communication, power and other utilities, on a long-term basis. The other service subsectors are those that are supportive of tourism like hotels and restaurants, travel agencies, renta-car services, tailoring, and recreation parlors. Warehousing, trucking service, and auto repair shops are located in strategic places.

Flagship pr_ects As have been mentioned in the preceding sections, the Northern Mindanao Plan for the 21 _tcentury (RDP21) identified three major events that will shape the future of Metro Cagayan de Oro and its surroundings. These are: (1) the construction of the CIC international standard airport in Laguindingan; (2) the expansion/upgrading of â&#x20AC;˘the Cagayan de Oro Port or the establishment of a Cargo port at the PIE-MO, the country's largest industrial estate; and (3) the setting up of the Integrated Steel Mill (ISM) at the PIE-MO. The first two will further enhance Metro Cagayan de Oro as a major transshipment hub of Mindanao. The CIC airport will likewise hasten the construction of by-pass/farm-to-market roads (1) to decongest traffic along the existing highway; (2) to facilitate movement of people from as far as Bukidnon to this new airport; and (3) to open up the resource-rich areas within the hinter part of the corridor and bring them closer to the markets. The option of establishing a new commercial cargo port at the PIE-MO will shorten travel time coming all the way from Davao. Most importantly, it will lessen the tm_c in the city proper (i.e., should the traffic of the cargo component of the port service be re-directed.). The establishment of an integrated steel mill at PIE-MO will induce both upstream and steel metal-based downstream industries, enhancing the full development of the PIE-MO, including SMEs.

210 ManagingUrbanizationUnder a DecentralizedGovernanceFramework Agricultural development could also be hastened with the manuihcture of appropriate farm tools and implements. Thereafter, farmers will be motivated to achieve higher productivity levels to ensure 'adequate inputs for processing. I-Ii_hways/raa&% bridges and railway CIC highwaysroads. Very essential to the development of the Lintedands and ren,o_: areas of the MeU'o Cagayan dc Oro and the corridor is a iletwol'k of improved farm-to-market roa,_ls, Both RDC 10 and 12 have endol'aed this pcopoaal to _he Deparam'•• E:_•t of Public Works and Highways (DFWH) celitral o_ce. This complements the CIC Highway Expansion projec_ from Jasaan, Misamis Oriental to Tubod, Ianao del Norte, for a total length of 157 kilometers and a •cost of t_1.9 billion. This Higkway Expansion project is aimed not only to ease up the worsening traffic problem along the IliganCagayan-Butuan roads but also to facilitate the integration of the corridor with other growth centers in Mindanao. CDO bridge& The Cagayan River, which separates the city into die easters and westem bay areas, is presently connected by only two bridges: one of an early 20th century American vintage steel bridge and another which is a wider Marcos-era concrete bridge. Considering that the airport as well as new middle- and upperclass subdivisions are in the western bay while the seaport, bus: station and shopping malls are in the eastern side, the worsened traffic problems can only be. solved with the construction of two more bzidges. The Puntod Bridge will require another access road and bridge across the Iponan River. This requiI_es more budget than the Macasandig..Upper Baiulang Bridge wkich will decongest the Upper Balulang trat_c running from the airport and the mushrooming middle- and upper-class subdivisions. Both have an initial budget of _zS0 million (from CDF) and _g23 million (Cagayan de Oro Government Budget), respectively. • Another bridge provides the critical gateway from the city proper to the country's largest industrial estate, the PIE-MO. Yhis is part of '_le Cagayan de Oro-Butuan backbone serving vehicles to and from _:_ao, Bu_uai% and Surigao ana even aU t_Teway from a:i_d_o VisaFas and Luzon mrough [he Lipata, Surigao Ferry Service Station. The bridge, which requires a prestressed concrete parallel with a capacity of 20-25 tons, needs a P166 million budget and targeted to be f'mished

by2000.

Case Study: Metro Cagayan de Oro

211

Mindanao Railway and Metro CDO/CIC-wide LRT Project. The entire project involves a 1,436-kilometer single railway line passing through major cities in Mindanao. Phase I of this project will stretch from Iligan City, pass through Cagayan de Oro-Bukidnon and end in Davao City. At least 10 local and foreign companies have reportedly expressed interest to form a consortium to undertake the project by built-operate-transfer system. While the Cagayan de Oro government had already signed a memorandum of agreement in 1997 with the Metro Cagayan de Oro LRT Project consortium for the conduct of a feasibility study for the construction, finance and operation of the Light Railway Transit system, the DOTC recommends the inclusion in the study of th e entire CIC stretch to ensure financial viability of said project. Telecommunications Metro Cagayan de Oro now enjoys an 8.20 telephone per 100 persons density and even the entire CIC enjoys a 5.6 densitym definitely higher than the national average of 4.09 in 1997. This is the favorable result of the deregulation of the telecommunications industry through EO 109, known as the Service Area Scheme. However, the present system still lacks interconnection lines among its service providers/telephone companies. By year 2000, a total of 222,503 lines shall have been installed and subscribed to in Metro Cagayan de Oro. This constitutes a 193 percent increase over what were installed and subscribed to as of 1997 â&#x20AC;˘(Table 5). It is hoped that by then, these various telephone systems will have been interconnected. Approaches

to Metro CDO Development

A growth center perspective Metro CDO is presendy viewed in the context of a regional growth area, Lying at the central section, and identified in the Mindanao 2000 Development Framework Plan as the North Coast Economic Growth Cluster (the land mass from CARAGA in the Northeast to Panguil Bay in the Northwest), Metro Cagayan de Oro is expected to sustain its crucial role of linking and unifying this high potential growth cluster for both agricultural and industrial development. The North Coast Economic Growth Cluster with the Metro-Cagayan de Oro and Iligan Corridor at the center is envisioned

212 Managing Urbanization Under a Decentralized Governance Framework Table

Telephone

Company/Service

Situation

Area

in Metro

2. Cellular Mobile Telephones (CDO) EXTELCOM PILTEL SMART GLOBE TEL ISLACOM 3.1TALTEL

(NTP Tranche

Planned

Lines/

Expansion

Subscribed to (1997) A. Company 1. MISORTEL Digital (Cagayan de Oro, Alubijid and Claveria)

Cagayan

Currently Installed

(19982000)

10,900

38,450

Oro Projected Number of Lines 49,350

27,311

7,897 5,000 10,000 1,714 2,700

Total

(2000) Ave. Annual Growth Rate 65.4%

1-3)

7,152

14,838

21,990

45.4%

Phase il (Cagayan de Oro) Phase IV (Misamis Oriental)

7,152

5,698 9,140

12,850 9,140

21.6% -

29,280 29,280

92,553 54A62 38,091

121,833 83,742 38,091

60.8% 41.9%

4. PHILCOM (Major Telecoms) C,agayan de Oro Misamis Oriental 51WEMORTELCO

(Opol-Lugait)

6. PLDT (PHIVIDEC)

219

1,020

780

1,800

20.8%

B. Service Area I. Metro Cagayan de Oro Digital Cellular Density

2. Lanao clel Norte/I]igan Digital Analog

75,882 146,621 48,571 146,621 27,311 8.2 telephones/100 persons City

20,602 13,752 200

27,368 26,668

4.0 telephones/100 persons 3. CIC Digital Cellular ,Analog Density Source: CIC-SDP PMO (1997).

96,484 62,323 33,961 200

173,289 700

5.6 telephoneC100 persons

222,503 43.1% 195,192 58_99% 27,311 21.5 telephones/100 persons 47,970 40,420 200

32.5% 43.2%

19.2 telephones/100 persons 270,473 235,612 34,661 200

41.0% 55.8% 0.7%

21.1 telephones/100 person

Case Study:MetroCagayan de Oro

213

to play triple roles in the next 15 years. These are: (1) as domestic food basket and agri-industrial exporter; (2) as the Industrial Corridor of Southern Philippines; and (3) as the gateway to the domestic market with potential for creating market niches in the Northeast Asia. The current Metro CDO Special Development Project aims to spur the growth of the Northern Mindanao region through the implementation of strategic infrastructure including seaports, airports, and highways; and promote agri-industrial activities including industrial estate development in CDO City and its surroundings. Recently, a master planning of Metro CDO is being proposed to be undertaken. The master plan is based on the framework of this growth center strategy, with the objective of producing what is essentially a land use plan for CDO and the 15 adjoining municipalities. This plan will serve as basis for amending zoning ordinances, guide land reclassification, and provide direction to government and private sectors regarding their investment decisions. A metropolitan perspective An important complementary perspective in looking at CDO City and the neighboring municipalities as a regional growth center is to view it as an emerging metropolitan settlement. Cagayan de Oro City is now behaving like a widely sprawling city, spreading its influence to nearby municipalities. It is difficult now to distinguish its boundaries as the differentiation between localities is already being virtually erased. For example, the DMPI plantation in Manolo Fortich (Bukidnon) and the Industrial Estate ofTagoloan-V'fllanueva (Misamis Oriental) are part of Cagayan de Oro City's tourism-investment promotion package. Moreover, the normative experience of a metropolis, including urban blight and decay in the inner core resulting from slum dwelling, mounting garbage, and rising criminality, are already being felt even at this stage. The spillover effects of urbanization, especially population pressures to convert agricultural land for urban uses such as housing and industry, are a threat to food security. Enticed by better income opportunities and the good life in the city, farm workers have abandoned their seasonal farm activities in search of the proverbial greener pasture but only to land in odd jobs or end up as beggars in the city. Thus, a paradigm shift in planning and management has to be looked into to be more prepared in the

214 Managing UrbanizationUndera DecentralizedGovernance Framework immediate future in dealing with complex urban issues inherent metropolis. Metropolitan Current

Concerns in the CDO Area urban concerns that transcend

local boundaries

in a

and

assume a metropolitan character have been identified by regional and local officials in the region's development plan for the next century. These include water supply and distribution, solid waste management, and transport and traffic management. Water supp/y and d/str/bu6on In the city proper, water is not yet a problem, what with a density of 13 persons to a Level III facility or 9 persons per combined Level II and Level III facility. However, the adjoining municipalities of the Metro Cagayan de Oro are still partly served by Levels I and II facilities. One municipality each of Bukidnon and Misamis Oriental are largely served only by Level I facility (Table 6). Although the water supply may not yet be a critical problem, there is a growing concern over the existing uneven water distribution among households in various LGUs. Such is attributed to the increasing rate of population primarily due to in-migration and the entry of new industries. There are ample evidences that the per capita cost of developing an effective and efficient water distribution system across municipalities is lesser if done in an integrated fashion. Thus, the master plan for Metro Cagayan de Oro must consider a water distribution and management program that is integrated and holistic. Need for improved solid waste rna_ One of the thorniest issues confronting highly urbanized cities concerns solid waste management. As pointed out in the region's physical framework plan (RPFP, 1995-2025), the indiscriminate disposal of wastes by households, institutions and industries into waterways and water bodies (lagoons, rivers and seas) causes water pollution of major water sources for domestic and industrial/ commercial uses. Under the Local Government Code of 1991 (RA 7160), both waste collection and disposal are now a responsibility of the LGUs. For most LGUs, waste collection is presently managed effectively. However, for some, waste disposal is a major problem, particularly with regard to the choice of a landfill site where pollution effects will

Case Study:Metro Cagayan de Oro

215

not spill over to the nearby LGU. For instance, Tagoloan's landfill â&#x20AC;˘lies along the precipice of a highway boundary leading to Malitbog, Bukidnon, where the wastes are eventually scattered in a nearby creek (Malitbog side). Another difficulty usually faced by the LGUs is the costly establishment and maintenance of a landfill site or an incineradon facility. Discussions among municipalities will ensure a workable arrangement especially concerning the issue of landfill site identification, waste recycling program that can be jointly implemented by a cluster of LGUs and arrangement relative to cost sharing and management. Worsening traffic As in other highly urbanized cities, traffic congestion in CDO is becoming a serious problem. Most of the work establishments in the city have adopted a "flexi-time" work schedule due to the unpredictability of the road traffic. This is blamed on the tremendous increase in the number of vehicles. Heavy traffic occurs in the intersections fronting the City Hall and after the Carmen Bridge leading to the Cagayan de Oro international Airport, the JR Borja Hospital, and the Carmen market; and the crossing in front of the malls/commercial complexes, especially those leading to the Agora Market and the Cagayan de Oro port. The worst traffic happens within the one-kilometer stretch where one goes through six choke points from the Ororama Megamall to the Licoan (leading to the Cagayan de Oro port or the Divisoria.), and the intersection at the western end of the Marcos bridge. The increased economic linkages between the eastern and western bay areas and the surrounding municipalities/cities on both sides have increased the mobility of both people and goods. Strategic infrastructure development, including road widening, construction of two more bridges, and installation of a metro rail transit, will help decongest the traffic not only within the Metro CDO area. It will help the Cagayanqligan and the Cagayan-Bukidnon-Davao corridors as well. A more purposive coordination among the concerned provinces, cities, and municipalities will further improve traffic management. Metro CDO Planning and Governance Both the opportunities and challenges that transcend geopolitical boundaries have implications on the planning of an

216 Managing UrbanizationUndera DecentralizedGovernanceFramework Table 6. Water Supply Facilities, 1996 Population Cagayan de Oro Tagoloan Villanueva Jasaan Oaveria Opol E1 Salvador Alubijid Laguindingan Gitagum Libona Manolo For rich Talakag Baungon Malitbog Sumilao Total

427,627 42,543 23,080 36,251 37,021 20,473 26,946 22,265 17,677 12,231 31,821 70,331 38,719 22,655 17,044 13,378 860,062

Number Level I

of Facilities Level n

0 859 142 116 166 122 136 565 58 62 258 65 39 716 27 56 3,387

31 173 10 70 96 7 99 201 125 96 32 172 10 55 84 69 1,330

by Level Level Eli 46,519 2,469 2,957 3,840 526 590 155 415 514 471 1,923 4,023 362 179 288 350

Potential Sources Rosario _pring Imelda spring springs* Mat-i spring spring Deepwell spring spring spring Sil-ipon spring

Pat-pat spring spring Lupiagan spring

6_,581

*Napapong, Dagulos, Inlomayang Level I - Deepwells, shallow wells, spring development Level II - Community faucets Level III- Individual faucets Source: Schema Konsult, Inc, (1996).

emerging metropolis. Individually, LGUs cannot efficiently and effectively handle the type and magnitude of concerns and services that have spilled over effects on the nearby LGUs. Traditional urban planning approaches confined to a single political unit would have to give way to a metropolitan planning and governance system whose concerns transcend the LGUs'. LGU Preferences on Activities and Service Majority of LGUs to collaborate with the following:

the Sharing Pattern of Urban-Related Delivery have expressed their desire and willingness Metro Cagayan de Oro in undertaking the

Planning activities Delivery of public health services, along with hospital grants and ambulance services Pofice and fire protection Housing and resettlement

80% 80% 67% 60%

Case Study: MetroCagayande Oro

217

Public transport: Infra and traffic management - 60% Garbage collection, recycling and disposal - 53% The LGUs also recognize the need to collaborate with line agencies and/or the private sector in the following areas: Planning Health Housing

- 53% - 47% - 47%

The institutional mechanism should not create unhealthy competition among implementing agencies/LGU/NGOs. The members of the Metro Cagayan de Oro governing body must complement and collaborate for greater results. Any unabated conflict between and among member LGUs agencies or NGOs can be dysfunctional to the entire system and impede the progress of the metropolis. Rather, the mechanism should serve as a means to cut red tapes and enable the community to participate in the decisionmaking process. As the Metro Cagayan de Oro progresses, the existing institutional mechanism would have to sustain the same momentum of change in the component LGUs/ areas of the metropolis. The LGUs are willing to cooperate with NGOs and the private sector on two areas, namely: a) Garbage collection and disposal/recycling b) Housing and resettlement

- 40% - 40%

Only a few favor the idea of Metro Cagayan de Oro to solely undertake the following development activities: a) Transport b) Garbage collection and disposal c) Housing and resettlement

40% 20% - 20%

On the question of what activities are for LGU undertaldng only the results are as follows: Licensing and inspection Finance and taxation

80% - 73%

218 ManagingUrbanizationUndera DecentralizedGovernanceFramework Planning, particularly land use planning and zoning - 67% Housing and resettlement - 67% Garbage collection/disposal - 53% Health services - 53% Police and fire protection - 53% Public transport 40% The LGUs' response shows their eagerness to undertake by themselves manyofthe important activities or to provide services over which they would want direct responsibility. However, they are ready or willing to collaborate with Metro Cagayan de Oro, line agencies and NGOs in many of these concerns. In fact, some expressed their impatience at the slow process of "metropolitanizing" that hampers their being able to deliver better and higher levels of facilities and services. The installation of an institutional mechanism for metropolitan governance within Metro Cagayan de Oro is a unique challenge in itself. The models in Mindanao are those of the Area Development Board of SOCSARGEN and the CIC Steering Committee of the CISSDE These institutions operate as coordinative mechanisms that can provide a forum not only to coordinate the broad concerns of" development but also to facilitate the implementation of inter-agency/ inter-LGU projects as well, They also provide the mechanism for encouraging participation and support of national agencies, LGUs and NGOs, and the private sector. Ex-i_'ng/poten6al barriers to Metro CDO The LGUs were candid in pointing out some critical barriers to metropolitanization: No-xlzLnvolvement

of the provincial

governmext_s_i.n

the

organt px The support of the provincial governments is crucial to the smooth functioning and enjoyment of mutual benefits. However, the initial reluctance of the provincial government of Bukidnon stems from the unclear delineation of what type of development will happen in the participating LGUs. Moreover, there is an emerging fear of losing its municipal constituents once these political units join Metro Cagayan de Oro.

220 ManagingUrbanizationUndera DecentralizedGovernanceFramework Once the momentum is established, the second task is to undertake a meaningful master plan for Metro Cagayan de Oro, which shall proceed from a comprehensive review and analysis of human resources, natural endowments, economic advantages and opportunities as well as sociopolitical institutions. By reviewing what it has, Metro Cagayan de Oro will be able to define its power base. This will serve as the benchmark for framing doable initiatives that can respond to the complex challenges and concerns of an emerging metropolis. How policymakers regard the area would have implications not only on the concerns from which development programs shall be based on but also on the institutional mechanism that will be established to address the formidable tasks at hand. It is thus important to clearly distinguish the perspectives on Metro Cagayan de Oro as a geographical subject for developmenL Taken as a regional growth area, Metro Cagayan de Oro can be seen as a strategic area for locating major infrastrucutral and capital investment that will set the stage for its economic growth. Seen as a metropolis, more attention can be provided to the challenges of Metro Cagayan de Oro that would have to be addressed, which are unique to such form of an urban area.

References CIG-PMO (Cagayan de Oro-Iligan Project Management CIC-SDP 1997 Accomplishment Report.

Office). 1997.

CPDO

1997.

City Planning and Development Office). Economic Profile of Cagayan de Oro City.

DMJM International, Inc. Framework Plan.

1995. Mindanao

Socio-

2000 Development

NEDA-RDC X. 1995-2025 Regional Physical Framework Plan (RPFP). 1999-2004 Regional Development

(i DP21). NSO (National Housing.

Statistics Office).

1995.

Schema Konsult, Inc. 1996. Assessment and Sanitation Sector of Northern

Plan of the 21"tCentury Census of Population

of Domestic Mindanao.

and

Water Supply

Case

Study

Metro Naga: A Continuing Challengeof Local Autonomy and Sustainability Ruben G. Mercado and V/ctor B. Uba/do

etro Naga is composed of Naga City and the surrounding municipalities ofBombon, Calabanga, Camaligan, Canaman, Gainza, Magarao, Milaor, Minalabac, Pamplona, Pasacao, Pill, and San Fernando. Recently, the municipalities of Bula and Ocampo have been included in this metropolitan composition. These municipalities are all in the Province of Camarines Sur. Metro Naga is relatively new, having been given official recognition as a metropolis only in 1993. The metropolis is located within the heart of Bicol's largest fiver basin area. Thus, it is dominated by a flat topography. It lies on the foot of Mt. Isarog where a rolling terrain may be found. The area is part of the traditional rice granary of Bicol. The extent of prime agricultural lands for rice production has become a major constraint in the urban expansion of the component municipalities. In addition to the extensive prime agricultural lands, large tracts in the metropolis are likewise flood-prone as these are in the lower basin area. Management of the Metropolis Under Executive Order 102, the Metro Naga Development Council (MNDC) has been tasked to formulate, coordinate and monitor programs, projects and activities in the areas composing Metro Naga for "the acceleration of the economic and social growth and development .... in coordination with the governor of the province of Carnarines Sur." The MNDC is composed of the mayors of the political units in Metro Naga plus a representative each from the provincial government of Camarines Sur, the departments and agencies represented in the National Economic and Development Authority (NEDA) Board, including the Department of Education,

222 ManagingUrbanization Undera DecentralizedGovernanceFramework Culture and Sports (DECS), and the Department of Social Welfare and Development (DSWD). Representatives from the private sector and nongovernment organizations comprise one-fourth of the fully constituted council. Metro Naga is one model of metropolitan arrangements created by virtue of local initiative and cooperation. This paper attempts to document Metro Naga's experience in metropolitan development and presents the challenges involved in the process of sustaining metro-wide activities in the spirit of local cooperation and autonomy. Demographic and Land Characteristics Metro Naga's population is only a little over halfa million with about 23 percent of it found in Naga City (Table 1). Population growth rate in the whole metropolis is lower than the national average but higher than the regional average. The population in seven component local government units (LGUs), including Naga City, grew at rates lower than the regional average. However, the rest have registered high growth rates, especially the municipalities of Milaor, Pili and San Fernando, where growth is close to or over 3 percent. The rapid population growth of Milaor and San Fernando may be due to their being receptacles of population spillover from Naga City as these areas, have extensive potential areas for urban expansion. This is evidenced by the increase in the number of residential and subdivision development in the area. Pili, on the other hand, is a traditional secondary growth center and a hub of agricultural trading activities especially for the Caramoan-Partido area. Recent trends indicate an increase in local economic activities. These factors may have served as a magnet for the rural population to relocate to this growth node. Population density in Naga City and Camaligan is relatively higher compared with the other areas in the metropolis. Moreover, the population density of Camaligan is higher as compared with that of Naga. Camaligan has the smallest land area but has a population bigger than Gainza and Bombon (where the land area is 5 and 9 times that of Camaligan). But Camaligan's proximity to the central business district of Naga City was a major reason for the municipality's high urban development. It has become the primary receiver of Naga City's population spillover. Its attractiveness was further intensified with the location of the Camaligan Fishing Port complex in the municipality.

Case Study: Metro Naga

223

Table1. Metro Nasa: DemographicandLand Characteristics CAty/ Municipality

Population 1990

Naga City Bombon Calabanga Camaligan Canaman Gainza Magarao Milaor Minalabac Pamplona Pasaeao Pill San Fernando Bula Ocampo Metro Naga Region V Philippines

Level 1995

Growth Rate, 1990-1995

Land Area (sq. km)

Population Density, 1995 (pentons/sq. kin)

115,329 10,874

126,972 11,739

1.82 1.44

84.5 44.2

1,503 266

54,261 15,436 20,298 7,095 16,623 18,199 35,922 24,097 31,960 52,481 20,608 48,240 30,876 502,299 3,910,001 60,679,725

59,164 17,411 22,732 7743 18,264 21,213 37,574 26,176 36,070 61,520 24,196 54,650 34,898 560,322 4,325,307 6,861,6556

1.63 2.28 2.14 1.65 1.78 2.91 0.85 1.56 2.29 3.02 3.05 2.37 2.32 2.19 1.91 2.32

163.8 4.7 43.3 14.8 45.0 33.6 126.1 80.6 149.5 126.3 71.8 151.3 118.3 1,257.7 17,633.4 300,000.0

361 3,720 525 524 406 630 297 325 241 487 337 361 295 445 249 229

H3storical Antecedents/The Metro Naga Development Program (MNDP) When shortage of oil products was experienced resulting from the Gulf War in 1991, Naga City and the surrounding municipalities worked together in resolving the issue of gas sourcing and allocation. This initial interlocal discussion on an immediate concern eventually paved the way for more interaction on other broader issues. Naga City spearheaded the conceptualization of a Metropolitan Naga Development Program (MNDP), which provided the framework for the development of the areas that constitute Metro Naga and the required organizational machinery to orchestrate such development activities. The MNDP seeks to improve the employment condition, agricultural production and delivery of basic services in the development area. With these objectives, the MNDP identified the roles of participating LGUs based on their resource endowments and comparative advantage and potentials for future cooperation. The process of identifying these roles is a worthy example of how local governments can meet and decide on issues with due consideration

224 Managing UrbanizationUnder a DecentralizedGovernance Framework to their extemal environment. Initially, these roles met stiff resistance from some of the LGUs specially those that perceived their assigned roles as minimal and running counter to their own local aspirations and development path. It took them a long and difficult time to come to termswith each other. But the general welfare of the metropolitan area and the realization that a holistic approach is needed to solve major problems and challenges confronting the metropolitan area eventually dawned on the local chief executives. Thus, the local chief executives came to agree on their identified roles, which are summarized in Table 2. Naga City and the other municipalities have been informally meeting to discuss how they would operationalize the strategy. Based on the provision of the Local Government Code, particularly in Section 23, a Memorandum of Agreement was signed on 23 April 1993 wherein each member-LGU was: 1) To formulate and implement an equitable and complementary development program; 2) To establish the Metro Naga Common Fund through contributions of the members, which shall be no less than 2 percent of the LGUs' Economic Development Fund (or 2 percent of 20 percent of their respective internal revenue allotment [IRA]); 3) To participate in the identification, preparation and implementation of development programs, projects and activities; 4) To supervise, implement, assist and/or coordinate programs, projects and activities of the council within their respective territorial jurisdiction in coordination with the council; and 5) To extend technical, resource, financial and other forms of assistance to member LGUs to the extent allowed by the general welfare of their respective constituents. Because of the huge financing needed to concretize the vision, they sought a means to access national funds. They hoped to tap some financial sources such as an annual subsidy from the Philippine Amusement and Gaming Corporation (PAGCOR) or the Philippine Charity Sweepstakes Office (PCSO). To effect this, they asked Malacafiang to issue an executive order creating the MNDC and providing funds for its programs and operations through these sources. Eventually, Executive Order 102 from the Office of the

Case Study: Metro Naga Table 2. Area-Specific

225

Roles in Metro Naga

Resource Endowment/ Comparative Advantage Modern urban facilities

Potential Development Activity/ Industry Center of trade, financial, educational and professional services/convention site

Surface water in Panicuason Agriculture Historical sites and religious festivities

Source of potable water Auxflliary food crop supplier Tourism

Pili

Airport

Airlinktomajor centersof the country Trade and comlnercial center

Bombon

Rich agriculture Presence of spring water

Primary food bowl Source of potable water

Calabanga

Rich agriculture Fishery

Primary food bowl Source of fresh fish and processed fishery products and by-products

Camaligan

Modern fish port, ice plant and cold storage facilities Nearness to Naga City

Expansion offish processing industry Trading activities Spillover of residential population from Naga City

Canaman

Nearness to Naga City

Trading activities Spillover of residential from Naga City

City/Municipality Naga City

Gainza

Agriculture Handicraft

enterprises

population

Auxiliary food crop supplier Further development of handicraft industry

Magarao

Rich agriculture

Primary food bowl

Milaor

Nearness to Naga City Lower tax rates

Ideal site for warehouses storage

Minalabac

Agriculture

Auxiliary food crop supplier

Pamplona

Hilly terrain

idealfor grazing

Gatflc and dairy industry

Pasacao

Hilly terrain Port

ideal for grazing

Cattle and dairy Port development deep sea vessels Naga's gateway foreign market Source of fresh fishery products

Fishery

San Fernando

Hilly terrain ideal for grazing

Presence of spring water Source of basic data: Mendoza (1997).

and bulk

industry to accommodate and serve as Metro to domestic and fish and processed

Catde and dairy industry Source of _otable

water

226 Managing UrbanizationUnder a DecentralizedGovernance Framework Table

3. Financial

Sources

of the MNDC

YearXSource

LGU Contributions

1993 1994 1995

539,000* 600,000 No data available

1996 1997 Total

100,000 500,000 1,739,000

GAA/CDF/CIA 500,000** 2,000,000 0 4,000,000 5,000,000 11,500,000

Total 1,039,000 2,600,000 0 4,100,000 5,500,000 13,239,000

"Naga City's contribution is P328,000 or about 65 percent of total while the rest are divided among the other member-municipaiities. *'Released from the Office of the President as seed money for operations.

President was issued on 18June 1993 creating the MNDC. The order also provided an amount of P500,000.00 from the Office of the President as seed money for its operations and mandated the inclusion of the MNDC in the General Appropriations Act (GAA) for the succeeding years in consultation with the Department of Budget and Management. From 1993 to date, member-LGUs have contributed a total of P1.73 million (Table 3). Due to the relatively good financial standing of Naga City, more than half of the contribution came from this city. The amount was used to finance the priority activities the council. lined up for the member-LGUs. The absence of a hiatus in the council's activities may have contributed to the LGUs' sustained interest in the partnership. The internally generated â&#x20AC;˘financial resources were augmented by externally generated assistance, most of which are assistance from the national government. However, some activities such as the medical and health mission being held yearly were financed by the private sector. To date, the MNDC received a total of P1.5 million in assistance from the national government through the GAA, inclusive of the seed money provided in Executive Order 102. The appropriations in the GAA were mosdy attributed to the collective lobbying of congressmen from the province of Camarines Sur. The MNDC has likewise received a total amount of P1.73 million in contributions from the LGUs. Programs/Accomplishments As of June 1997, the Council formulated and implemented the following programs and projects in response to the immediate needs of its member-LGUs:

Case Study: Metro Naga • • • • • • • • •

227

Establishment of the Metro Naga Emergency Rescue Network; Metro Naga Senior Citizens Program; Formation of the Metro Naga Equipment Pool; Metro Nag_a Enterprise Development Program; Metro Naga Employment and PlacementAssistance Program; Metro Naga Water Supply Enhancement Project; Metro Naga Project Assistance Fund; Support to Health Services; and Resource/Project Accessing.

Metro Naga Emergency Rescue Netumrk There was a need to pool resources for emergency use because out of the 14 member LGUs, only four had fire protection bureaus while five had ambulances. Moreover, hospitals are still concentrated in Naga City only. To ensure access to these facilities in times of emergency, an extensive radio network was installed in all mayors' offices, and ambulance, police and fire stations. Hand-held radios were also distributed to key personnel of each LGU. All Metro Nag_a LGUs were provided with VHF base and portable radios while all ambulances had mobile base radios. Completing the network were the VHF facilities of the Bureau of Fire Protection. Communication network has since formed the backbone of the Metro Naga Emergency Rescue Network (MNERN). It proved crucial not only in maintaining the coordination among member-LGUs. As the base and portable radios were also made available at the barangay level, the communication network was also crucial to the success of activities within each LGU. Some noteworthy accomplishments of the MNERN include: 1)Conduct of annual Emergency Medical Technician (EMT) course for the paramedics handling the ambulances of the member-LGUs; 2) Conduct of one medical mission in one barangay in Calabanga to check the spread of illnesses after Typhoon Rosing; 3)Establishment of a coordination center among different emergency units of Metro Naga, particularly when there is a need for additional ambulance units or for the services of the Bureau of Fire Protection;

228 Managing UrbanizationUndera DecentralizedGovernanceFramework 4)Rescue of trapped residents in flooded areas of Magarao and Naga City during the height of typhoons Monang and Posing; and 5) Distribution of potable water to flooded areas of the municipalities of Minalabac, Milaor, Camaligan, Calabanga, Bombon and Magarao after the typhoons. Metro Naga Senior Citizens Program The program that bestowed privileges to Naga City senior citizens under the city's own senior citizens program was later extended to other senior citizens within Metro Naga. These consist of discounts in selected stores and establishments within the city and in the use of certain facilities of the city government. Upon the effectivity of the Senior Citizens Law, the program rationalized the grant of privileges to all the senior citizens within Metro Naga, particularly when it came to discounts on medicines. The program also organized the Metro Naga Senior Citizens League that serve as an umbrella organization of the different senior citizens federations within the metropolis. The league coordinated the activities of different federations so as to facilitate the grant of senior citizen privileges as well as inter-LGU senior citizens activities. Through the league, in cooperation with the Department of Social Welfare and Development (DSWD) and the Camarines Sur Drugstores Association, a total of 13,000 medicine purchase discount booklets were printed and distributed to members. The league also became the venue for the formation of the Metro Naga Senior Citizens' Cooperative that now runs its own drugstore. Elderly residents in Metr ONaga can now avail of discounts while gaining some profit from their own purchase. The drugstore also drew support from the city government of Naga when the latter provided the site and building, and from the SOLCENTF, which added P200,000.00 to Metro Naga's working capital. Metro Naga Equipnwnt Pool One of the important MNDC projects is the pooling of engineering equipment for use by the MNDC-member LGUs. The Metro Naga Equipment Poolwas formed to give member-LGUs access to heavy equipment for local infrastructure projects as well as vehicles for transportation purposes. The MNDC assumes the maintenance cost of these equipment while the borrowing LGU shoulders the fuel

Case Study: Metro Naga

229

cost. Through this scheme, savings have been generated by the LGUs in their construction activities, especially in the repair of farm-tomarket roads. Equipment

from the pool were utilized for the following:

• • •

Opening of Comaguinking Road, Calabanga Opening of Tugayan-Comaguingking Road, Calabanga Repair and rehabilitation of Labog-Binanwaanan Road, Calabanga * Repair and rehabilitation of various sugar roads, Pili ° Repair and maintenance of various barangay roads, Pasacao •

Repair and maintenance Canaman

of various

Repair and maintenance Naga-Gainza Road

of unpassable

barangay portions

roads, of the

Metro Nabou Enterprise Deve!opnwnt Program This program assists rural entrepreneurs in undertaking microenterprises or in augmenting their working capital. Priority is given to disadvantaged sectors such as women and the disabled and to projects that utilize indigenous materials. To date, 14 organizations have benefited from the program. Metro Na_ Emp/oyment and P/acement Ass/.Cance Program This program aims to match the skills of the local labor pool with the needs for domestic and foreign enterprises. In coordination with the Department of Labor and Employment, the MNDC regularly holds annual jobs fairs. It is also into job placement and has established an Overseas Placement Assistance Fund using the prize it received from the Galing Pook Awards. The OPAF provides funds to those who have already secured firm employment contracts abroad and ensures their speedy deployment. To date, about 27 residents of Gainza, Magarao, Pili, Milaor, Pamplona, San Fernando and Naga City have been extended overseas placement assistance. Metro Naga Water Supply Enhancement Project This project was undertaken in response to the need of distant Metro Naga communities for clean and potable water. Under the program, Level I water systems are distributed to member-LGUs. To

230 Managing UrbanizationUnder a DecentralizedGovernance Framework date, about 280 units of Level I water systems have been deployed throughout the Metro Naga area. Each unit consists of ajetmatic or pitcher pump, three to four pieces of GI pipe and a bag of cement. Labor for the construction of the water system is provided by either the local government or by the beneficiary groups. Also under this program is the assistance extended by the MNDC to the municipal government of Canarnan in the expansion of its Level IIi water services to three barangays adjacent to the poblacion (central district). Metro Naga Project As_istance Fund As co-host of the PalarongPambansa in 1997, the council alloted P100,000 to each member-LGU for Palaro-related projects and activities. This scheme of sub_alloting the council's resources has now been adopted as a mechanism to augment member-LGU resources for other priority projects of the council. Support for hea/th serv/ce_ When the provision of health service functions were devolved to LGUs by the Local Government Code, many municipalities were unable to provide the medical supply requirements of their respective health centers. The little financial resources that accompanied the, devolved function have often been used to pay for personal services. Becoming aware of this predicament, the MNDC aimed to support this function and provided medicines to the rural health units (RHUs) of its member municipalities. In 1996, over P800,000 worth of generic drugs were purchased by the council and distributed to the members. To further support health services provision, the Council--in coordination with a foreign-based association of Bicolanos, the Bicol Medical Center and the Naga City Hospital-----organized a surgical mission primarily to address the increasing number of untreated surgical cases in the metro area. The council packaged the mission such that both professional services and pre- and post-operative medicines were given free to patients. A total of 127 patients were treated during the mission. Resource a_cess/ng and generat/on act/v/t/es The. council used its collective clout to access resources

finance priority development projects of member-LGUs. The financing of the following projects was facilitated through the council's intermediation: (1) construction of the Pili diversion road; (2)

Case Study: Metro Naga

231

construction of cut-off channel no. 3; (3) upgrading of the Naga â&#x20AC;˘airport; (4) increased calamity assistance for member-LGUs; (5) reconstruction of the Calabanga municipal hall; and (6) concretizing of the Naga-Gainza road. The council also played an important role in the generation of additional private sector investments in the area. By projecting Pili and Calabanga, Pamplona and Naga City as attractive investment areas, the council was able to convince private investors to put up businesses in these areas. Future Plans To sustain the momentum of the MNDC initiatives, the council engaged in several long-term activities that include the preparation of a Metro-Naga Development Plan, promotion of ecozone development and preparation of the Mt. Isarog Watershed Management Program. Metro Naga Development Plan The Metro Naga Development Plan has been on the drawing board for quite some time now. The council's limited resources that could be used for planning had to be supplemented. Thus, the council had to explore external financing assistance in the early stages of this proposed activity. The council tapped a consortium of NGOs to access funding from the Ford Foundation. The consortium initially proposed to prepare a master plan for a pilot area that consisted of Naga City's immediate neighboring municipalities of Gainza, Camaligan, Milaor and Canaman. Upon presentation of the plan to the council, however, other memberLGUs began to request for their inclusion in the master planning activities. A revised proposal was therefore submitted by the consortium to the Ford Foundation. While waiting for a feedback from the Ford Foundation on the revised proposal, the council was able to access additional trading from the national government---enough to be able to proceed with the proposed master plan preparation. It first requested the National Economic and Development Authority Regional Office V to help prepare the Terms of Reference and related documents preparatory to the bidding and hiring ofa consultancy firm. Hopefully, they could start on the study on the Metro Naga Master Plan before the terms of existing local executives expire.

232 ManagingUrbanizationUndera DecentralizedGovernanceFramework Promotion of ecozone devdopment The Council, in coordination with the provincial office of the Department of Trade and Industry, has begun laying the groundwork tbr the entry of an ecozone developer in Pamplona and a selfcontained agro-processing community in Magarao. Contacts with investors had been established and all possible assistance extended to facilitate their entry to the project. ML Isarog Watershed Management Program The council, together with various NGO groups, has been in the process of preparing a watershed management program for Mr. Isarog through the assistance of the Asian Institute of Management. The project is meant to protect its main source of water as well as mitigate the runoff of surface water that causes flash floods in the Bicol River Basin area. Among the participating member-LGUs are Pill, Magarao and Naga City. Key Features

of Success

Leadership and lon_term development vision of Mother City The MNDC's success was principally bolstered by the leadership of the mother city, Naga City. Because the city's strategy was anchored on long-term city development and local inter-dependency, the development goals had been far-sighted and had considered a planning perspective that went beyond political boundaries. The current Naga City leadership did not view its development challenges as something confined to the city itself. It knew that the shortage of space, water, migration, squatting and employment could not be resolved by the city alone; rather, it had to integrate the development factors of the surrounding areas. Its good relations with neighboring LGUs and ability to integrate each other's concerns helped sustain the development efforts. Moreover, Naga City took its role seriously as the Big Brother in the area by initiating programs or activities that helped other LGUs deliver basic services to their respective constituents. In a nutshell, Naga City's long-term view of city development, together with its resolve to help its neighbors and the political leadership to initiate cooperation, are significant hallmarks of the MNDC success.

Case Study: Metro Naga

De-,,topme,ven vs.poratea

233

cooperation

Naga City's MNDC is an exercise in partnership that viewed mayors not just as political figures but as investors in the development business. The solid partnership among the LGUs as well as their accomplishments so far are manifestations of a cooperative undertaking that ignores partisan considerations in favor of achieving development benefits. Municipal mayors acknowledged the benefits gained by the arrangement, most claiming to have received more than what they give to the partnership. This arrangement has sustained the interest of members-LGUs on the activities of the council. Resource poling and serowe The MNDC experience shows how it maximized the use of existing assets and resources. By pooling resources, either financial or nonfinancial, LGUs find that such could be extended to other government units rather than confmed to only one or few local areas. This combination of resources increases LGUs' capacity to d_eliver services and is particularly crucial for those with meager resources.

Seriously taking on major development roles is important if cooperating LGUs are to have a workable and sound integrated development plan for their areas. This integrated plan could form the basis upon which individual LGUs' socioeconomic and physical development plans would be formulated or revised. Meanwhile, the roles that LGUs have agreed upon under the MNDC will serve as the guiding framework for the detailed master plan that will be developed for Metro Naga. It is opined that this master plan will be operational and useful than the master plans formulated by professional organizations or consultants that were based on formal regional development theories and approaches only. It is hoped that any consultant that would be hired would base his/her recommended master plan on and/or enhance the development concept and the area-specific roles that the MNDC has envisioned. Future Challenges The MNDC faces three major challenges hereon. First is to beef up its organizational machinery. Second, to address financial sustainability. Third, to manage the transition of leadership and sustain the partnership.

234 Managing UrbanizationUnder a DecentralizedGovernanceFramework The first challenge stems from the MNDC's mounting development activities and the insufficient technical support existing. Management support must be expanded. Meanwhile, more accomplishments can be achieved and innovations introduced if technical planning and administrative support for MNDC are in place. The LGUs' contribution and national government support to MNDC should also be in line with any expansion of MNDC responsibilities in the future. The council has to be more creative in sourcing funds especiallywhenever the national government tightens its belt. Finally, the most critical to MNDC's sustainability is leadership. Given that the strength of the MNDC largely lies in its leader and the strong partnership forged among the current members, it is hoped that the current vision will continue and the development-oriented perspective as well as the established camaraderie of the proponentleaders will be carded on by whoever would be chosen to replace them.

References Mendoza, F. 1997. Development.

Metro

Naga City Government.

Naga: A Model

in Integrated

Area

1996. Annual Report 1996: Naga City.

Naga City Mayor's Office. n.d. A Briefing Paper on the Metro Naga Development Council.

Case

Study

Metro Iloilo: A Struggle for Acceptance and Organization Ruben G. Mercado and Raul S. Anlocotan

stablished in 1890 and located in the Western Visayas Region, Iloilo City is one of the oldest cities in the Philippines. Currently one of the major urban centers in the country, the city is densely populated with a small land area (56 square kilometers) and a population of more than 300,000 residents as of 1995. The burgeoning population in a small land area greatly affected the urban functioning of the city. Among the city's current problems include a domestic airport that cannot be expanded, slum dwellers in the city's commercial district that cannot be relocated, and solid wastes that cannot be properly disposed of. The easiest solution is to expand the city's land area. However, this is an impossible option for Iloilo as it is bounded in the east by Guimaras Strait, where the trench is steep, making reclamation improbable. Four municipalities bound the other sides of the city, namely, Oton in the south, San Miguel in the northwest, and Pavia and Leganes in the north. As such, urban planners are seeking viable alternative solutions that will decelerate urban blight. The creation of Metro Iloilo has been a dream of many urban planners and businessmen in the city. The plan involves the formation of a metropolitan arrangement between Iloilo City and its adjacent municipalities within a 15-kilometer radius. While it is difficult to establish how this concept was brought to the fore, some precursors to its formation can be identified. In an interview with key informants in the Western Visayas Region, the idea of a Metro Iloilo was first spread by a group of businessmen and eminent persons in Iloilo City sometime in the early nineties. The idea was not given much attention as the city was experiencing its most turbulent period. At that time, the incumbent

236 ManagingUrbanizationUndera DecentralizedGovernanceFramework mayor was in the midst of a political battle with the Department of the Interior and Local Governments (DILG) over several suspension orders issued to him by the DILG. For several months, the city was placed under the care of the vice-mayor who eventually gained the mayoral post in the succeeding elections. The incessant political bickering in the city during the first half of the nineties severely constricted long-term development efforts as local officials concerned themselves with parochial matters. The lackadaisical attitude of the SangguniangPanglunsod (city council) toward long-term planning even aggravated the lack of coherence in the city's developmental efforts. In 1996, the concept was revived. Mayors of the four concerned local government units, namely, Iloilo City, Oton, Pavia and Leganes, met to identify areas of possible cooperation. These three municipalities and the city of Iloilo were identified to constitute Metropolitan lloilo. With the help of the private sector, a draft memorandum of agreement was prepared for the creation of the Metropolitan Iloilo Development Council (MIDC). For this cooperative undertaking to be legally binding, it has to comply with the requirements of the Local Government Code of 1991 which stipulates that a resolution stating the concurrence of the Sanggunian has to be passed. All the Sangguniang Bayan (municipal council) of the three municipalities, except that of Iloilo City, passed their respective resolution of concurrence for the creation of the MIDC. The implementation of the Metro Iloilo concept was stalled by the political stalemate between the Iloilo City mayor and the SangguniangPanglunsod, In refusing to pass the necessary resolution, the Sangguniang Panglwnsod of Iloilo argued that the memorandum of agreement did not pass through a process of consultation with concerned sectors of Iloilo City. The council alleged that the mayor acted on his own and without the SangguniangPanglunsodproviding him the mandate to undertake formal arrangements with the concerned municipalities. The members of the Sangguniang Panglunsod also alleged that it will be the city of Iloilo which will be carrying most of the financial burden entailed by this metropolitan arrangement. On the surface., it seems that the SangguniangPanglunsod view the issue as not based on substance but rather, on the process that went through such undertaking. However, there seems to be a deeper issue involved. A source commented that the memorandum of

Case Study: Metro Iloilo

237

agreement was drafted without a technical study to back it up. There is, therefore, a very unclear understanding and appreciation of the rationale for such cooperative arrangement. With the preceding account as backdrop, this paper will attempt to present the local officials' initial thinking on the substantive aspects of the said cooperative undertaking. It will also try to briefly present the crucial steps that have to be taken to address the current dilemma. All of these are in line with the ultimate goal of effecting a more acceptable cooperative arrangement for Metro Iloilo in the context of the institutional and political arrangements existing in the area. Demographic and Land Characteristics Metro Iloilo, as to its initial compositional definition, has a population of close to half a million largely concentrated in Iloilo City (76.5 percent in 1995). Next to CAMADA (Metro Dagupan), Metro Iloilo is the smallest in terms of population and land size and the slowest in terms of population growth rate compared to other metropolitan arrangements in the country. The slow growth in population reflects the overall low growth rate in the whole Western Visayas Region attributable to the significant level of population outmigration (NEDA 1993). Relatively high growth rate, however, can be observed in Pavia in view of the designation and promotion of the area as a Regional Agro-Industrial Center (RAIC). While the present level and growth rate of the population in the various areas of Metro Iloilo are quite low, increased urbanization can be anticipated following the increased vigor to establish infrastructure support for the development of the RAIC and other industrial sites. The spadal expansion of the city to the north (to the municipalities of Leganes and Pavia) is supported with a comprehensive road network connecting Iloilo City to other points

Table 1. Metro hollo: Population and Land Characteristics Area Iloilo City Leganes Pavia Oton Metro lloilo Source:

National

Growth rate

Land area

1990

Population

1995

1990-1995

(sq. kin)

309,505 18,505 23,814 52,125 403,909

334,539 19,235 26,756 56,821 437,351

1.47 0.83 2.21 1.63 1.59

56,0 32.2 35.0 84.6 907.8

Statistics Office

level

(1995).

238 ManagingUrbanizationUnder a DecentralizedGovernanceFramework in Panay Island. The latest of these projects is the coastal road opening a second link to the municipalities of Leganes and the adjoining municipalities of Zarraga and Dumangas in the north as well as to the Iloilo International Port Complex. The municipality of Leganes has also started a large-scale multipurpose land development that will establish it as an attractive industrial and residential zone. The plan includes a reclamation of about 200 hectares of seashore along the Guimaras Strait. Identified Areas for Cooperation The municipality of Pavia was identified by the Regional Development Council in the late eighties as the region's center for industrial development. Since then, infrastructure support projects were implemented by different government agencies to enhance the attractiveness of the area. In the early nineties, however, the municipality of Leganes, an adjoining town, started promoting itself as an industrial center. A grandiose plan, including schemes to reclaim part of the seashore to give way to an international port, an industrial site, and other facilities was hatched. A multinational firm indicated its willingness to finance the project through the build-operatetransfer (BOT) scheme. Confusion as to where the industrial site should be located ensued. A presidential directive instructed the Regional Development Council of Region VI to decide immediately which of the two municipalities, Pavia or Leganes, should be proclaimed as the RAIC. The RDC decided in favor of Pavia. Several businessmen, however, proposed that a cooperative scheme between Iloilo City and the surrounding municipalities will avoid this kind of confrontation in the future. They believe that collaboration rather than competition will provide the synergy necessary for the area's progress. The urgency of the matter prompted a group of well-meaning individuals in the city and the three concerned municipalities to conduct consultative meetings to push for the metropolitan concept. The group, in consultation with the representatives of the four concerned LGUs, proposed the creation of the Metropolitan Iloilo Development Council (MIDC), which will be composed of members coming from these four areas. After concurrence by the mayors of Iloilo City and the three concerned municipalities was received, a memorandum of agreement was then drafted and presented to the respective sanggunians.

Case Study: Metro Iloilo

239

The draft memorandum of agreement listed the following as the areas to be coordinated in by the proposed MIDC: Development planning. This refers to the "preparation of mediumand long-term development plans including the formulation of projects, investment programming, and monitoring of its implementation." The areas constituting Metro Iloilo, presently within a 15-kilometer radius, is envisioned to have a common development plan. If the metropolitan arrangement is found successful, the area can be expanded to cover the 25-kilometer radius. The plan basically identifies their major development roles so that complementarity of development goals will be assured. Moreover, land use planning will be more coordinated and investment planning will be more rationalized. For instance, the network of road system can be more reasonably designed and implemented if functional service roles will be identified (e.g., Pavia for agroindustry, Leganes for heavy industry, Oton as a primary residential area, and Iloilo City as the trade, commercial and industrial center). The Metro Iloilo concept is seen as a way of sharing benefits, especially in logistics and resources. The objective is to provide avenue where issues of consumer concerns can be discussed and addressed. An example of a possible cooperative undertaking is the water resources that Leganes is willing to share if a formal arrangement can be made with other areas. Leganes and interested investors would like to take advantage of the economies of scale in the development of the water system. According to its former mayor, Leganes has approximately 80 million gallons of surplus water. Several investors have indicated their willingness to finance the construction of water reservoirs and distribution systems provided there is a commitment from other areas to open their markets and share in the investment cost. Transport, traffw engineering and management. This encompasses "the formulation, coordination, design and monitoring of policies, standards, and programs and projects to rationalize the existing and proposed transport operations, infrastructure requirements with the end in view of integrating into a single network the roads andmajor thoroughfares of member local government units." Iloilo City is the center of trade, commerce and industry in Panay Island. As a trading center, the city boasts of several shopping malls and retail market facilities. It is also one of the major centers of higher

240 Managing Urbanization Undera DecentralizedGovernance Framework learning in the country, having five major universities, including the Visayas campus of the University of the Philippines and a number of tertiary schools. Iloilo City is "alsothe regional center of Western Visayas Region. During ordinary days (especially school days), the city's population bloats significantly. Considering the enormous number of people coming in and out of the city, there are only four exit points, one for each of the four adjoining municipalities. Worsening the city's traffic problems is the tremendous increase in the number of utility vehicles plying the city's major thoroughfares. Fueled by rising standards of living, car ownership in the city and surrounding municipalities rose. Unfortunately, the city, like other aging cides, still has streets designed to accommodate only the caretela and calesa. Worse, provincial buses and public vehicles have to enter the "city proper" (as the downtown area is called). Currently, buses and other public vehicles coming from the provinces of Antique, Aklan and Capiz have stations or terminals in the city proper. To resolve this, the plan calls for two bus terminals outside the city proper, one for southbound buses and another for northbound ones. A road network that will ease the ingress and egress of vehicles in the city is imperative. During rush hours, the four exit points are clogged. Collaborative arrangements can, therefore, be made to design a road system that will ease the traffic flow from the city's commercial district to other urban centers in Panay Island. To encourage city dwellers to reside in Oton and the adjoining municipalities in the south, the main road leading to southern Iloilo must be expanded and rehabilitated. Moreover, there is a need to plan a road network that will open wide tracks of land in Oton for residential purposes. A road network directly linking Oton to Leganes and Pavia should be carefully studied. This will enable industrial workers in Pavia and Leganes to commute to their residences in Oton without passing through the major thoroughfares of Iloilo City. Presently, commuters coming from the north to the south, and vice versa, will have to pass through Iloilo City. Environmental sanitation, waste management and disposal This involves the "formulation, coordination, design and monitoring of policies, standards and programs and projects for proper and sanitary waste disposal. It shall likewise include the establishment and operation of sanitary landfill, incinerator, recycling facilities and

Case Study: Metro Iloilo

241

related facilities intended to develop an environment-friendly metropolitan level." The establishment of a common solid waste management system and facilities will greatly benefit many. Currently, Iloilo City is having difficulty in the disposal of solid waste. Residents in the Mandurriao district are protesting that the current disposal site is too near the residential areas. An alternative common solid waste disposal site located at the outskirts of the metropolitan area (preferably in Oton) will prove to be more sustainable and cost-effective. The needed facilities will not only be built with dispatch through sharing of costs but their use will also be maximized. Moreover, considering that the selection of a landfill site is a contentious issue, it can be worked out so that the host municipality will be provided disturbance remuneration or other forms of compensation. Flood control and sewerage management. This refers to "the formulation and implementation of policies, programs and projects for an integrated and comprehensive flood control system, drainage and sewerage." Like many old settlements in the Philippines, Iloilo City sprouted at the mouth of major rivers---the Iloilo and Jaro rivers. As transit point for commercial goods, Iloilo City's economy grew and progressed, and migrants from outlying municipalities came to reside in the city. The proliferation of squatter colonies especially in the riverbanks, took its toll on the environment. Stilt houses were built along riverbanks thereby constricting the rivers' flow. Moreover, subdivisions and residential houses in theJaro district claimed several esteros (natural floodway) leading to Jaro River. The onset of the rainy season during the month of May proved to be devastating to the residents of Jaro and Lapaz districts and Pavia. Old residents would claim that floodwaters rising above their roof decks was just a recent phenomenon. In some cases, Pavia and Leganes are virtually cut off from Iloilo City for several days, halting commerce and trade between these areas. The constant flooding of the Jaro district and Pavia significantly affected the attractiveness of the latter as an agroindustrial zone. Only a comprehensive flood control system in the whole metropolis can ease the perennial flooding in Iloilo City and Pavia. In this regard, a cooperative scheme can be worked out that will involve the dredging of the Jaro River from Jaro district upstream to Pavia

242 Managing UrbanizationUndera DecentralizedGovernance Framework and the construction of a network of floodways that will facilitate the flow of floodwater during heavy rains. Moreover, as the pace of urbanization accelerates, the need for a comprehensive and efficient sewerage system must already be considered for Iloilo City and the surrounding municipalities. The absence of a system is causing the underground water aquifer to be continuously degraded. Urban reTwwal,land use and zoning and shelter services. This refers to the "planning and implementation of'policies, rules and regulations and programs and projects to rationalize and optimize land uses and provide direction for urban growth and expansion." Because of the small area, the uses for Iloilo City's land are limited. A larger scale for physical planning will allow for a more rational use of its existing land and permit greater economic and spatial links with its neighboring areas. The concept of a Metro Iloilo and the formulation of an integrated land use and zoning plan will synchronize and give more meaning to the existing land use and zoning plans and regulations of the respective member-areas. The metropolis plan, for instance, can identify and develop suitable land for industry, housing sites for urban dwellers, including the resettlement of slum dwellers in the city, and a suitable landfill site, for solid waste management, among others. It should also anticipate the need for future expansion and any implications on infrastructure support that will sustain and manage urban growth. Networking of economic support infrastructure. This involves the "identification and implementation of a system of transport networks linking and integrating the various road networks of the member local government units into one big web of roads and thoroughfares." In addition to the existing four exit points from Iloilo City, another one known as the "coastal road" is soon to be opened. The road will link the eastern coast of Iloilo City to the municipalities of Leganes and Dumangas in the north. The eastern coast has been identified by the Iloilo City government as the city' s site for industrial development. It is the location of the Iloilo International Port Complex and a number of commercial warehouses. Once completed, it will complement the proposed industrial complex in Leganes and win open a wide area of Iloilo City, Leganes and Dumangas for housing, industries and commercial establishments.

Case Study: Metro Iloilo

243

Collaboration between Iloilo City and Leganes is essential for â&#x20AC;˘the success of both the Iloilo International Port Complex and the proposed industrial complex in Leganes. Located just less than 10 kilometers from each other, any competition between the two ports can result in ill feelings between the two local government units. The proposed MIDC is the best venue for discussing how the two ports can complement each other. Another major infrastructure support project that will require collaborative efforts between the province of Iloilo and Iloilo City is the proposed construction of an international-standard airport in lieu of the present airport located at the Mandurriao district in Iloilo City. The limited land area currently used by the Iloilo Domestic Airport significantly restricted the size of aircraft that can land. Also, the increasing number of residential houses around the airport's periphery makes aircr_t navigation hazardous and difficult. The province of Iloilo is proposing that an airport of international standard be constructed in the municipalities of Cabatuan and Sta. Barbara, which are adjacent to Pavia. The proposed airport wiU require a wider national highway, which incidentally passes through Pavia. Such plan will greatly enhance the attractiveness of Pavia as an industrial area since the airport will increase the volume of traffic along the highway. Public safety, maintenance of peace and orderand disaster manag_m, nt. This refers to "the creation of metro wide police force and the control and supervision of police force in the member local government units...the setting up of mechanisms for the prevention of disasters and effect mitigation of the same." As there are separate police commands in four areas of the would-be metropolis, coordination of police matters is done by the police directorates in Camp Delgado, Iloilo City. This setup does not create confusion as police command and responsibilities are well defined and efficiently structured. It can, however, be enhanced if coordination of peace and order efforts by the four-government unit is improved. A coordinating unit preferably situated at Camp Delgado can be created to coordinate and supervise police activities in the metropolis. This is to ensure immediate action on reports of disaster and crimes such as kidnapping, carnapping, robbery, and incidences of hit-and-run.

244 ManagingUrbanizationUnder a DecentralizedGovernanceFramework Trade and investment promotion. This pertains to "the formulation and implementation of a comprehensive investment strategy for the whole area, and the rationalization of investment rules and regulations, with the end view of developing the whole area into one big economic zone." The brewing conflict between Pavia and Leganes as related earlier prompted several concerned individuals to reconsider the metropolitan idea of making Leganes, Pavia, and Iloilo City as one investment area. The current practice of implementing separate trade and investment promotion activity is not cost-efficient and oftentimes conflicting. While the Department of Trade and Industry, the Iloilo Business Club, and the Iloilo Investors Foundation, Inc. have devised _romotional packages for these three growth sites, they did not nprove the proposed investment area's attractiveness. What is needed succeed is an assurance from investors that industrial development a the area will be holistic and well-coordinated. The translation of a omprehensive and integrated socioeconomic and physical framework lans duly ratified and endorsed by all four concerned LGUs can elp achieve success in this regard. 'ossible Next Steps Dealing with the acceptance dilenuna The basic current issue among LGUs pertains to how they are ) provide everyone a clear understanding of the need to forge an tterlocal arrangement. At present, the need to accept the benefits f collaboration lies strongest in Iloilo City, where the acceptance ilemma is evident and strongest. Both the substance and the process ave to be dealt with. What is needed is a broad discussion among LGUs on the meral concept of the metropolitan arrangement as well as the _ecific areas where cooperation will be forged. A concept paper might e needed to articulate the basic discussions and the already;tablished agreements among the leaders of the member-areas. A sk force composed of mayors and/or representatives from the ember-areas may be created to draft this concept paper.

Case Study: Metro Iloilo

245

Dffinlng the appropriate ins6tutlonal structure Having a clear understanding of the concept and objectives of the arrangement, the next Step is to identify the appropriate institutional structures that will coordinate the arrangement. While the draft memorandum of agreement has initially proposed for a council type of body (i.e., the MIDC), there might be a need to consider such suggestion vis-A-visother alternative structures that may be proposed. Whatever the agreed structure will be, it should be clear about its roles and how itwiU sustain its organizational structure and financial requirements. It should also define how it will horizontally and vertically relate with existing institutional structures in the region. Conclusion Metro Iloilo is a metropolitan arrangement that is struggling for acceptance and organization. Customarily, the difficulty in forging the cooperation occurs in the member-municipalities involved in the arrangement. In the case of Metro Iloilo, it is the city that has caused delay in making a headstart. While the problem may be tagged as something political, it may seem to have brought the need to make a rethinking of the whole concept and objectively assess the real need for such cooperative undertaking. The present paper hopefully can be useful in providing the impetus for further discussion through the documentation of the initial thoughts articulated by the local executives concerned on the substance of the desired cooperation. References Provincial

Government

of Iloilo.

n.d.

Draft

Memorandum

Agreement (between the mayors of Iloilo municipalities of Leganes, Pavia and Oton)

City and the

National Economic and Development Authority. 1993. Western Visayas Regional Development Plan 1993-1998. â&#x20AC;˘ 1997. Western Visayas Regional Development National Statistics Office. 1995. Census of Population

Plan 1998-2004. and Housingâ&#x20AC;˘

Case

Study

Metro Davao:In Search of Metropolitan Definitions Ruben G. Mercado

theoretical sense. Angotd (1993), in writing a modern-day efining a metropolis should not be has difficult, at least in the perspective on metropolitanization, suggested a general rule-of-thumb in defining a metropolis or at least distinguishing it from a city. In the context of the twentieth century, the term "metropolis" refers to large urban setdements, usually crossing local jurisdictional boundaries, with at least one million population. The term "city,, on the other hand, refers to a medium-sized settlement of between 100,000 and one million population. Following this categorization, therefore, settlements under 100,000 population are considered "rural." Admittedly, this is a broad definition. However, the definition is handy in making a broad categorization of urban settlements. Another criterion has also evolved from the experience of other so-called metropolises in the country. This criterion defines a metropolis beyond the urbanization measure and population size. That is, an area is considered a metropolis if it undertakes metropolitan functions or activities. These activities refer to those which are distinctly urban in nature and dimension. Usually, when one or more political jurisdictions are involved, an institutional mechanism is needed to undertake them. This criterion helps avoid loosely defining metropolis only on the basis of population or the amalgamation of contiguous political units. The term _metropolitan arrangement" becomes more applicable to any cooperation between city/ies and municipalities which do not meet the population and largely urban criteria but are performing expanded urban service functions. The case of Davao presents some major definitional dilemma. Reference to Metro Davao has taken on new meanings in recent years. What is being referred to by the term "Metro Davao_? Is it Davao City

248 Managing Urbanization Undera DecentralizedGovernance Framework or is it beyond the city's political and administrative jurisdiction? How valid and meaningful are these defnitions? This paper attempts to describe three emerging operational definitions of Metro Davao. The aim is not only to present the definitional dilemma at hand but more importantly to draw insights or lessons on the importance of definitions beyond the terminological exercise. The Three Def'mitional

Models

of Metro Davao

Model I: Davao City Based on the basic definition of a metropolis, Davao City may in itseffbe considered a metropolis. In 1995, Davao City registered a population of a little over one million from about 850,000 in ]990 (Table ]). Growth rate has remained high since the ]980s, posting 3.39 percent growth from the period 1990-1995. A large percentage of its total population resides in areas classified as urban. However, it should be noted that the urban land area is only less than 2 percent of the total land size. Thus, it is necessary to distinguish density in the whole city and density in the urban areas within the city to appreciate the' state of its urban geography. One needs to understand also that Davao City is, land-wise, a predominantly agricultural and forest area. Table 2 presents the land use pattern in Davao City in 1994, showing that the built-up area (depicting urban area) comprise only less than 6 percent of the total land area of the city.

Table I. Davao City:Basic Demographic and "LandCharacteristics 1980 1985 1990 1995 Population 614,124 724,935 849,947 1,006,840 Growth Rate 3.32 3.18 3.39 Percent Urban 67 69 74 n.a Population Densityin the City (persons/ha)* 2.5 2.97 3.48 4.53 PopulationDensityin Urban Areas(persons/ha)** 116.9 142.1 178.7 * Total land area: 244,000 ha. ** Total urban land area: 3,520 ha. Basic sources:

National Statistics Office, Census of Population and Housing (for 1980, 199() and 1995 figures) and population projections, 1980-2010 (for 1985 figures).

Case Study: Metro Davao

249

Table 2. General Land Use, 1994 Use

Area (ha)

Built-up Agricultural Forest Total Source:

Perc_t

13,373 184,651 43,147 244,00@

1996 Solid Waste Management

to Total

5.48 76.84 17.86 100.00

Profile, Davao City.

Table 3. Population Distribution, Land Area and Density, 1990 District/ mmmgay DisWict1

Population

Land Area (ha)

Density (poputation/ha)

Poblacion Talomo District II

141,090 183,356

1,028 11,040

137.0 16.6

Agdao Buhangin Bunawan Paquibato District Ill

75,295 118,550 68,785 27,756

489 9,222 6,550 23,360

184.5 12.8 10.5 1.0

Baguio Calinan

19,894 53,379

82,725 22,360

0.2 2.4

Marilog Toril

35,295 82,501

50,796 13,130

0.7 6.3

Tugbok

44,096

23,300

2.0

849,947

244,000

Total Source: City Government

of Davao, 1996 Solid Waste Management

3.5 Plan.

Davao City is considered the largest city in the world in terms of land area) Its size is more than three times the size of Metro Manila and more than twice of Metro Cebu. Nevertheless, population is unevenly distributed. The city is divided into three major districts. Table 3 presents how population is distributed in each of these three administrative areas in 1990. Note that majority of the population is concentrated in the first district, where the built-up areas are located. This district alone comprises already more than a third (38 percent) of the total population while occupying only 5 percent of the total land area. Davao City, taken as a whole, can be considered a metropolis terms of its population level. High growth rate has been exhibited

in in

t Recently, however, Puerto Princess City also now claims to be larger than Davao City in terms of land area (253,982 hectares).

250 ManagingUrbanizationUndera DecentralizedGovernanceFramework the recent past, and is expected to continue in the medium- and longterm future. While majority of the city's area is agricultural and forest, the percentage of population living in the urban area is considerable: more than 75 percent of the city's total population. Model 2: Davao City plus neighboring nmnicipalities A recent (re)definition of Metro Davao (Carino and Kintanar; Gaffud 1997) is the one that takes Davao City in relation with the immediate municipalities of Sta Cruz in the south and Panabo in the north. The definition is, admittedly, prospective and based on the fact that these municipalities are the nearest catchment areas for Davao City's eventual expansion. Sta. Cruz and Panabo are 38 and 32 kilometers away, respectively, from the city proper. The involvement of the two municipalities is seen as just a possibility and there are actually no immediate interlocal concerns at hand. In fact, data on average daily traffic (ADT) shows that it is in the city proper, particularly in the central business district (CBD) of Davao City, where traffic is greatest and where choke points are located. Furthermore, the three local government units (LGUs) have their own water districts. The Davao City Water District alone has an excess production capacity of about 5 million cubic meters, more than enough to supply its population. On solid waste management, Panabo and Sta, Cruz generate a relatively small amount of garbage although Panabo has a six-hectare sanitary landfill (dump site). Davao City ha'_ a four-hectare dumpsite, and because the city has land, any future expansion and/or addition of sanitary landfill sites will not be as much problem as those experienced by other rapidly growing cities. The garbage issue is not a metropolitan problem since each of the three -0oliticaljurisdicfions can singly handle the concern. Housing is similarly a local government issue and can be handled through the respective LGUs' housing programs. Table 4. General Information on Davao City, St& Cruz and Panabo Land Area Davao City Sta. Cruz Panabo Total

(sq. km) 2440 320 193 2,953

Source of basic data: National

Population 1995

Population Growth

1,006,840 59,139 130,585

1990-95 3.39 1.11 3.40

1,196564

2.66

Statistic Office

(1990/1995).

Percent Urban 74 35 50 69

.Case Study:MetroDavao

251

While there is no problem viewing Metro Davao as one that encompasses the city as well as the adjoining municipalities of Sta. Cruz and Panabo in terms of population size as a criterion, it is still premature to define Metro Davao in this manner in view of the absence of a real need for the areas to jointly undertake basic metropolitan services and to establish an institutional mechanism for this purpose. These municipalities may be considered only as a geographic expansion rather than an interlocal cooperation. The addition of Sta. Cruz and Panabo into the urban circle even makes the whole area less urban. Model 3."Lkwao City Plus Neighboring Provinces The third definition of Metro Davao is more expansive in scope in that it brings together Davao City and the three provinces of Davao del Norte, Davao del Sur and Davao Oriental. Unlike the second definition, the inclusion of these provinces is based on a formal agreement between the concerned political units. This consolidation is specified in the established Davao Integrated Development Program (DIDP). The DIDP evolved from the original proposal for a Metro Davao Integrated Development Project Master Plan and Feasibility Study. A similar suggestion was submitted in June 1993 to NEDA Regional Office XI by a group ofJapanese consultants. The Metro Davao being referred to in the plan is Davao City only. The proposal aimed to enlarge urban functions by improving or expanding urban infrastructure and utilities for the growing urban population while maintaining a balance with agricultural activities in the predominantly rural area. There are, however, numerous activities in the program which extend beyond the urban concerns. In October 1993, an initial discussion in Hong Kong by the Chairman of the Regional Development Council, councilors of Davao City and the Governor of Davao Province (del Norte) focused on the possibility of ajoint socioeconomic undertaking between the city and the three provinces of Davao. This was later followed by consultations and meetings among the local government units. Eventually, in July 1994, a Memorandum of Agreement (MOA) for the implementation of the DIDP was signed by the Davao City mayor and governors of Davao del Norte and (]el Sur. The original proposal in July 1993 was revised to expand the planning space and widen the areas for concern by considering the complementarity and integrated development of

252 Managing Urbanization Under a DecentralizedGovernance Framework these territories. Davao Oriental.

In October

1994, the MOAwas amended

to include

The DIDP has identified nine key result areas or sectoral focus: agri-industrial and marine industry, sea and air transport services, physical infrastructure development, tourism, natural resources management and conservation, peace and order, disaster preparedness, cultural exchanges, human resources and technology development. Of the above, the immediate opportunities for joint undertaking are found in tourism, infrastructure and maintenance of peace and order. The development of Samal Island, one of the priority tourism development sites under the Tourism Master Plan, is also a priority of DIDP concern. Supporting tourism are programs meant to maintain peace and order, particularly in the border areas of Davao, as well as the rationalization of plans for the development of infrastructure to enhance the area as a tourist investment destination through the provision of more access roads, wharves,jetties and other embarkation points. Similarly, tourists' interests will be promoted if land and water transportation facilities are made available for key destination points. The DIDP is being run by an Executive Committee composed of the Local Chief Executives of the LGUs who are members and participants of the Program and the Chairman ofRDC XI as Ex-officio member, it is a collegial body and its meetings are chaired and presided over by the host Local Chief Executive. The DIDP is a local government undertaking without national government funding. It relies solely on the contribution of each LGU. Each contributed P300,000 for the initial funding requirements of the program. A Project Management Office was set up in May 1996 to provide overall supervision and coordination in the implementation, monitoring and evaluation of DIDP projects and activities. It is difficult to classify the DIDP arrangement as the new Metro Davao. If the areas are consolidated, population would go beyond one million and the entire areawould become more rural than urban. Table 5 shows that with the low percentage of urban population in the three provinces, the total urban proportion of the entire area is only 43 percent. It is also not appropriate to refer to them (DIDP areas) as a metropolitan arrangement inasmuch as the concerns of the DIDP are neither primarily urban-related nor metropolitan in character. It is instead appropriate for such consolidation to be called

Case Study: MetroDavao

253

Table 5. General Information on Davao Integrated Development Program Land DAVAO Area PopulationPopulation Percent No.of No.of Capital 1995 Growth Urban MunicipalitiesBarangaysTown (_q"k_) City

2,444

1,006,840

3.37

Del Norte Oriental

8,130 5,165

1,191,443 413,472

3.82 2.40

30 24

22 11

458 183

Tagum Mad

3,934 19,673

677,069 3,288,824

2.72 2.29

30 43

15 48

337 1,158

Digos

Del Sur Total

Source: Davao Integrated

Development

180

Program.

a subregional development cooperation area development (IAD) undertaking.

or conventional

integrated

Conclusion The above analysis presented the three emerging definitions of Metro Davao and evaluated these based on the simple definition of a metropolis as "a largely urban settlement with a population of at least a million and usually extending beyond political jurisdictions." Of these, viewing Metro Davao as comprising Davao City alone is the definitional model that meets the two criteria. The second model (Davao City plus neighboring municipalities) would also qualify but is still considered prospective because of the absence of immediate inter-urban concerns at present. Also, based on the theoretical distinction between a city and a metropolis, Davao City was found to have graduated from being a city and into a full-fledge metropolis in 1995. Thus Davao City alone can already be classified as a metropolitan city. Given the high growth in population experienced not only in Davao Citybut in all of the Davao provinces, Gaffud (1997) has rightly pointed out that the DIDP can be "an initial vehicle in the promotion of cross-border management of urban services." Perhaps, there might also be a need to develop a subcomponent of the program for Metro Davao (i.e., Davao City) concerns. Because Davao City has a strategic role as the international trade center and gateway to the Southern Pacific Rim, particularly in the BIMP-EAGA, a distinct program must be crafted to make the city a well-functioning and competitive metropolis. It might be useful to develop a separate Metro Davao Development Master Plan (i.e., Davao City concept) but anchored on the framework and broad strategies of the DIDE

254 Managing UrbanizationUnder a DecentralizedGovernance Framework The transformation of Davao City into a metropolis should not be seen only as an urban redefinition. More importantly, it implies that the urban management paradigm of the city should be broadened rather than follow the traditional city management approach. The development plan for the new metropolis must consider a contemporary urban-management system (i.e, organizations, human resources, operational systems and approaches) that will aid this transition process. References Angotti, T. 1993. Metropolis 2000. York.

Planning, Poverty and Politics. New

Carifio, L.V. 1997. Preparing for a Developed Future Through a Comparative Study of Five Current and Emerging Metropolitan Areas: An Introductory Statement for Consideration of Local Governments. Unpublished. Davao City Government.

1996. Solid Waste Management

. n.d. Terms of Reference Davao Urban Development

for the Feasibility Project.

Profile.

Study on Metro

Gaffud, R. and N.E. Kintanar. 1997. The Interplay of Population, Resources and Public Services Toward Balanced Development in the Emerging Metro Davao. Unpublished. University Center for Integrative and Development Studies, University of the Philippines. NEDA Regional Office X. 1993. Profile of the Davao Integrated Development Program. Davao City.

Case

Study

Governanceand Urban Development:CaseStudy of Metro Manila Rosario G. Manasan and Ruben G. Mercado Introduction etro Manila has had a long history. For 250 years before the Spanish arrived, Manila has been a prosperous city engaged in trading with neighboring China, Vietnam, Indonesia, Malaysia, Borneo and Kampuchea and with Acapulco as well. Because it was a progressive city with rich agricultural hinterland, Manila be_:ame the Spanish and, then later, the United States' colonial capital. Aside from being the direct link between the Philippines and its colonial rulers, Manila served as the gateway for the export of agricultural products and raw materials and the import of manufactured. goods from Europe and the United States. During the Spanish and American rule, colonial policies promoted the development of Manila as a primate city. In this sense, the countryside was "economically exploited to support the colonial bureaucracy in Manila" (Caoili 1985 based on Cushner 1971 and Regidor and Mason 1905/1925). After World War II, economic policies have contributed further to the uneven development between Manila and the rest of the country. Manila was the favored location of industrial establishments because of its developed infrastructure and its being the country's principal port and financial and commercial center. This, together with political unrest and underdevelopment in the other regions, has encouraged rural migration to Manila and accelerated the urbanization process in the area. Geography Metropolitan Manila (or the National Capital Region, NCR) is located in the southwestern portion of Luzon, directly below Central Luzon. It is bounded by the province of Bulacan in the north, the Sierra Madre mountains and Laguna de Bay in the east, Manila Bay

256 ManagingUrbanizationUndera DecentralizedGovernanceFramework in the west, and the provinces of Cavite and Laguna in the south. With a land area of 636 square kilometers, Metro Manila is comprised of the cities of Manila, Caloocan, Las Pifias, Mandaluyong, Makati, Marikina, Muntinlupa, Parafiaque, Pasay, Pasig, and Quezon, as well as the municipalities of Malabon, Navotas, Pateros, san Juan, Taguig, and Valenzuela.

Oemogmphy In 1995, the total population of Metro Manila reached 9.5 million, accounting for 13.8 percent of the country's population and some 25.1 percent of its urban population (Table 1). The primacy of Metro Manila has been declining continuously after reaching a peak of 34 percent in 1970. The diminishing primacy of the metropolis is partly attributed to the deceleration of the rate of growth of its population from a peak of 4.9 percent annually in the 1960s to 3.0 percent in the 1980s (Pernia and Israel 1994).1 Still another factor that helps explains primacy reversal is the decline in the contribution of net migration to the growth of the metropolis. To wit, the proportion of migrants in Metro Manila's population in 1975-1980 was 18.2 percent compared to only 11.5 percent in 1985-1990. The population density of Metro Manila in 1995 is estimated at 14,865 persons per square kilometer, 65 times the national average of 229 persons per square kilometer. Congestion in Metro Manila is more glaring if one looks at the individual cities and municipalities in the region. Congestion, as measured by population density, is more evident in Manila, Makati, Pasay, Navotas Pasig and Caloocan. Although population growth in the first three local government units (LGUs) has slowed down in 1990-1995, the same cannot be said for the last three LGUs. Metro Manila's population is young and a substantial portion is at the peak of their productive years. While the metropolitan population is not as young as that of the entire country with only 4g percent of its population below 20 years of age compared to the entire country's 49 percent, the proportion of the population between 20 and 35 years of age is higher in Metro Manila (30.7 percent) than in the rest of the country (24.6 percent).

t However, the population almost 50 percent

growth rate of Metro Manila rose to 3.3 percent yearly in 1990-1995,

higher than the national

average of 2.3 percent-

Case Study:MetroManila

257

Gross domestic product The gross domestic product (GDP) of the NCR reached P835.6 billion (US$28.4 billion) in 1997. The share of Metropolitan Manila in the total economy's GDP initially went down from 30.1 percent in 1980 to 28.3 percent in 1985 before recovering to 32.7 percent in 1997 (Table 2). Thus, it appears that although the NCR was more badly affected by the economic crisis that confronted the Philippines in 1983-1985, it was also the major beneficiary of the turnaround in the economy in the late 1980s and the 1990s. In more specific terms, the annual rate of growth of NCR's real GDP declined from 6.3 percent in 1975-1980 (compared to the Philippines' real GDP growth rate of 6.2 percent) to negative 1.9 percent in 1980-1985 (compared to the national average of negative 0.5 percent) but bounced back to 3.9 percent in 1985-1997 (compared to the national average of 3.2 percent). Consequently, the region re-established its hold on economic primacy (in contrast to urban primacy) in 1986-1997. Table 1. Demographic Facts About Metro Manila 1948

1960

1970

1980

1990

1995

1998 _'

1,569

2,462

$,967

5,926

7,948

9,454

10,012

1,526

9,427

$,967

5,926

7,948

9,454

i0,012

97.3

98.6

100.0

27.0

29.8

31.8

$7.1

47.0

55.0

29.4

30.1

34.0

33.2

27.8

25.1

7.9

9.0

10.8

12.3

13.1

15.8

13.7

3-8

4.9

4.1

3.0

3.3

1.9

2.9

3.1

2.7

2.4

2.3

2.1

3.9

5.0

4.1

3.0

3.3

1.9

3.8

4.3

4.8

5.7

Total Metro Manila Population ('000) Urban Metro Manila Population Level of Urbanization Total Metro Manila Level of Urbanization

Total Philippines Metro Manila Primacy Metro Manila Population as % of Total Philippine Population Growth Rate of Total Metro Manila Population Growth Rate of Total Philippine Population Growth Rate of Urban Metro Manila Population Growth Rate of Urban Philippine

Population

Total Philippine Population ('000)

19,234

27,088

36,684

* 1998 figures arc based on NSO medium assumption

48,098

projections.

60,703

68,617

73,131

258 ManagingUrbanizationUndera DecentralizedGovernanceFramework Table 2. Gross Domestic Product Structure 1975

1980 â&#x20AC;˘

1985

Metro Manila (MM) Share in National Gross Domestic Gross Value Added (GVA)

1990

1999

1997

Ave 1985-1997

Product (GDP)/

GDP

28.99

30.16

28.35

32.27

32.39

32.74

34.48

GVAin Industry Sector

44.18

40.94

42.97

38.82

38.30

38.41

38.71

GVA in Manufacturing

47.86

48-02

45.80

42.97

42.03

43.26

43.82

GVA in Construction

38.40

32.84

40.97

36.49

34.09

30.08

30.46

GVA in Service Sector

3'7.84

37.89

35.06

43.29

43.69

44.09

44.81

Rate of Growth (in constant prices) MM GDP

6.28

(1.88)

5,01

(1A3)

5..04

3.92

MM GVA in Industry Sector

6.84

(2.20)

2.16

(3-68)

5.16

2.39

MM GVA in Manufacturing

6.45

(2.00)

2-13

(3.51)

4.63

2.19

MM GVA in Construction

9.16

(6.37)

5.72

(10.13)

7.10

3.45

MM GVAIn Service Sector

5,69

(1.52)

7.54

0.26

4.96

5.22

Phil GDP

6.21

(0.54)

3.30

(0.12)

4.43

3.19

Phil GVA in Industry Sector

7.34

(2.82)

4.97

(1.61)

5.33

3.99

Phil GVA in Manufacturing

5.82

(1.42)

4.09

(1.09)

4.45

3.36

12.54

(9.83)

8.76

(6.93)

9.59

6.31

5.76

(0.40)

4.05

0.59

4.71

3.74

Phil GVA in Construction Phil GVA in Service Sector Source: National Income Accounts,

National Statistical and Coordination

Board (NIA, NSCB).

The resurgent economic primacy of the NCR is largely driven by the recovery of the services sector (especially the finance and housing subsector). In contrast, NCR's industrial sector (including the manufacturing and construction subsectors) lagged behind the rest of the regions'. In particular, NCR's gross value added (GVA) in the services sector grew by 5.2 percent yearly on the average in 19851997 (compared to the national average of 3.7 percent) while its GVA in construction and manufacturing increased by 3.5 and 2.2 percent, respectively (compared to the national average of 6.3 and 3.4 percent, respectively). Consequently, the services sector became the most dominant sector in the NCR starting in 1988 in terms of GVA shares. Prior to this year, the industrial sector contributed the majority of regional GDP. The relative contraction of the industrial sector in the NCR is largely attributed

to the declining

share of the manufacturing

Case Study: MetroManila

259

subsector in the said period. In turn, this development may be traced in part to the deconcentration of manufacturing activity from the NCR to Southern Tagalog and Central Luzon in the late 1980s although the encroachment of the peripheral regions appeared to have waned in the 1990s. However, the manufacturing subsector, which accounted for over 40 percent of total NCR GDP in 1985, exhibited a less vibrant performance in the 1990s.

F rxapaa_gne In 1997, per capita GDP in Metro Manila stood at P82,832 (US$2,811). Although there has been some diminution in the relative well-being of the NC1L as measured by per capita GDP in 1975-1985, this trend was reversed in 1985-1997. However, the improvement in Metro Manila's per capita GDP in the latter period was not enough to bring it back to the position it enjoyed (relative to the other regions) in 1975. Nonetheless, the metropolitan region continues to dominate all the other region s with a per capita income that is 2.5 times the national per capita GDP of P33,722 US$1,144), 2.1 times the per capita GDP of the second richest region, Cordillera, and 7.7 times the per capita GDP of the poorest region, Muslim Mindanao (Table 3). Poverty The sterling performance of Metro Manila in terms of improvements in per capita GDP is mirrored in the trend in poverty reduction. Of the 2.0 million households living in the metropolis, 8.0 percent live below the 1997 poverty line of P71,800 per year for a family of five. This compares favorably with the national poverty incidence of 32.1 percent_ It also represents a marked improvement in poverty reduction as the 1985 poverty incidence in the region was almost three times higher at 23.0 percent (Table 4).

spa

a/opm

The composition of Metro Manila has not changed since its formation in 1975 under Presidential Decree (PD) 824 to the current legal geopolitical composition under Republic Act (RA) 7924. The only change has been the recent reclassification of some municipalities into cities, namely, Makati, Muntinlupa, Mandaluyong, Pasig, Marikina, Las Pifias and Parafiaque. Metro Manila has been geographically subdivided in previous planning documents into inner core and intermediate core. This

Table

3. Regional

GDP

Per

Capita 1975

. 1980

1985

1990

1992

1995

1997

Regiomd Per Capita Product

NCR METRO MANIL _,

6,690.74

PHII.IPPINES

2,7_'26.30

Ratio of Regional NCR METRO

[3,470.54

25,019.63

43,248.94

5 t ,037.53

65,997.11

82,832.38

5,502.34

11,207.01

17,611-42

21,107.53

27,778.00

33,722.49

Per Capita Product to National Per Capita Product (%)

MANILA

PHILIPPINES

245.41

244.81

223.25

245.57

241.80

237.59

245.63

i00.00

100.00

100.O0

100.00

1985-I990

1990-1992

Annual Rates of Change (%), at Constant Prices 1975-1980

1980-1985

NCR METRO MANILA

2.60

(4.93)

1.98

(4.58)

1.68

0.73

PHILIPPINES

3.4I

(3.06)

1.01

(2.38)

2.05

0.86

Source:

Basic data from NIA, NSCB.

1992-1997

1985-199

Case Study: Metro Manila

261

Table 4. Poverty Incidence of Families, by Region and Urbanity, 1985-1997 Reduction Region

1985

Philippines

NCR Areas Outside

1991

1994

1997"

40.2

39.9

35.5

23.0

21.6

13.2

47.5

43.1

44.2

NCR

1988

1985-1994

1985-1997

32.1

8.7

12.1

8.0

7.1

15.0

15.9

39.9

36.2

7.6

11.3

* Preliminary results of the 1997 Family Income and Expenditure Source: Economic and Social Stadstics Office, NSCB.

Survey_

subdivision has been largely based on the circumferential road boundaries (Figure 1). The inner core is composed of the cities of Manila, Pasay, Caloocan, Quezon, Makati and Mandaluyong and the municipalities of San Juan, Navotas and Malabon. The intermediate core consists of the cities of Pasig, Parafiaque, Muntinlupa, Marikina, ! :_ Pifias and the municipalities of Valenzuela, Taguig and Pateros. In the immediate post-war period, urban development radiated from the city of Manila, which has been the administrative, economic, educational and social center since the colonial period, and situated northwards to Caloocan City and southwards to Pasay City. Meanwhile, the development of government housing projects in Quezon City and the private sector development of Makati as a financial, commercial and residential center in the late 1950s and the 1960s completed the filling up of the inner core between Manila Bay and EDSA (or C-4). Industrial and residential development intensified in Navotas, Malabon and Valenzuela in the late 1960s and in Marikina, Pasig, Parafiaque, Las Pifias, and Mundnlupa in the 1960s and 1970s (League 1993). By 1975, the distinction between inner and outer core has been obliterated as infrastructure and economic finks have virtually made all these local units a unified core and have spatially merged them into a metropolitan area that was then loosely referred to as Greater Manila Area. Related to this, the Physical Framework Development Plan for Metro Manila (MMDA 1996a) identified an outer core consisting of municipalities beyond the originally identified intermediate core and located in the neighboring regions particularly in the provinces of Rizal, Cavite, Laguna and Bulacan. These areas are outside the legal

262 Managing UrbanizationUnder a DecentralizedGovernance Framework Figure 1. Major Road Network of Metro Manila

_ource: MMDA (1996a)

composition of Metro Manila but are included as part of the planning region of Metro Manila. The development of Metro Manila beyond its present legal boundaries has been more pronounced in recent years than it was 20 years ago. Aside from the above cited planning framework for Metro Manila, the Philippine National Development Plan for the 21" Century or Plan 21 (NEDA 1998) has made explicit its recognition of Metro Manila's spatial development by referring to a Metropolitan Manila Growth Network that includes the industrial areas of the neighboring regions, namely, the Southern Tagalog Region (Cavite-LagunaBatangas-Rizal Quezon or CALABARZON and the Manila-RizalLaguna-Quezon or MARILAQUE areas) and the Central Luzon Region (areas linking Manila with the Subic and Clark Special Economic Zones).

Case Study: Metro Manila Metropolitan

263

Governance

Early antecedents of metropolitan m__ In the 1950s and 1960s, rapid and uncontrolled population growth, resulting from a high rate of natural increase and significant internal migration, contributed to the economic growth of Manila but brought countless problems in the process. These problems include poverty and housing shortage exemplified by the proliferation of slums and squatter settlements, inadequate public transportation system, traffic, deteriorating health and sanitation condition due to lack of potable water and unsanitary disposal of waste, lack of drainage and sewage system, pollution (air, water and noise) and worsening peace and order situation. Caoili (1985) argues that the failure to address the problems of Metro Manila during the immediate postwar period up to the 1960s stemmed from the piecemeal and uncoordinated solutions employed by local governments due to party politics and jurisdictional disputes over responsibility for service delivery. Also, there was a highly uneven distribution of financial resources among local units resulting in wide disparities in the availability and quality of public services. _ The need to consolidate service efforts in view of the urban, services transcending local jurisdictions in Metro Manila became more obvious in time. Thus, ad-hoc bodies or local government arrangements were established to address specific problems or needs. These included the United Intelligence Operations Group (tasked to implement cooperative laws among the cities and municipalities), Fire Protection Organization, Metropolitan Health Council, InterPolice Coordinating Council and the Metropolitan Mayors Coordinating Council. Nonetheless, these ad-hoc arrangements were found to be inadequate in addressing the complex problems of the metropolis. At about the same time as well, the needs of Metro Manila became a priority concern of the national leadership. This concern was hinged on two major considerations. The first centered on the

Caoili (1985) cites that "...in fiscal year 1974-75, per capita revenue among MMA units ranged from P16 in Pateros to P223 in Manila. Per capita expenditures during the same year varied from P19 in Pateros to 243 in Makati. In calendar year 1980, per capita revenue among MMA units ranged from P$4 in Pateros to P412 in Makati. Per capita expenditoreB year varied from P28 in Pateros to P351 in Makati."

during

the same

264 Managing UrbanizationUndera DecentralizedGovernance Framework need to improve public services in the areas geographically embracing the center of government. Inefficient and uncoordinated services in the metropolis in the face of rapid urbanization caught the attention of the Marcos leadership. The second stemmed from the need to develop a region that will serve as the showcase of the country's modernization thrusts. Given these considerations, Memorandum Order No. 314 (dated November 10, 1972) was issued creating the inter-Agency Committee on Metro Manila. The Inter-Agency Committee was tasked "to study the system of municipal/city government in Metropolitan Manila and to recommend whatever measures of coordination and integration are deemed appropriate and to study the functions and responsibilities of the National Government in the metropolitan area, and to recommend whatever changes in structure and interrelation with municipal governments are deemed appropriate". The committee proposed for the creation of a Metropolitan Manila Authority under the Office of the President through a promulgation of a Presidential Decree. Metro Manila C_ 1975-1989 A referendum was called for to get the people's support for the new jurisdictional delineation of Metro Manila and to give the President the authority to create a new administrative structure for the National Capital Region (NCR). Eventually, PD 824, creating the Metro Manila Commission (MMC), was issued in 1975. Moreover, PD 824 delineated the territorial jurisdiction of the MMC to include the 17 LGUs enumerated earlier. The important features of the MMC are summarized in Table 5.

The MMC was tasked to take primary responsibility in the delivery of garbage collection and disposal, transport and traffic services and fire control services. It was also mandated to coordinate and monitor government and private activities pertaining to the delivery of essential services like water supply and sanitation, flood control, health, social welfare, housing, and park development. Moi-e important, the Commission was ordained to develop a comprehensive social, economic and physical plan for the region.

266 Managing UrbanizationUnder a DecentralizedGovernance Framework

PD 824 enabled the MMC to act as a central government to establish and administer programs and provide services common to the area. The MMC was also vested with legislative powers; it can enact and approve ordinances and resolutions. In addition, the MMC was also authorized to levy and collect taxes and fees, expend and borrow money, issue bonds and others instruments of indebtedness. Moreover, it was empowered to review, amend, revise or repeal all ordinances and resolutions of the different LGUs within its jurisdictions including their annual budgets. Organizational strucABr_ The MMC was composed primarily of the Governor, ViceGovernor, and three Commissioners, one each for Operations, Finance and Planning. All of these officials were appointed by the President of the Philippines. The Governor and Vice-Governor also assumed the position of General Manager and Deputy General Manager, respectively. As such, they were responsible tbr the implementation of MMC's policies, programs and regulations. At its peak, the MMC's personnel numbered 35,000, majority of whom were in Operations. Finance The MMC had access to the following revenue sources: (1) internal revenue allotment (IRA) share; (2) central government subsidies; (3) contribution from the member-LGUs; (4) share in proceeds of specified taxes imposed by member-LGUs; and (5) own collection of taxes and fees. Effectively, the MMC was treated much like a provincial-level government in terms of share in the IRAs and in terms of taxing powers. Specifically, the MMC received 45 percent of the proceeds from the municipal collections of real property tax. Itwas also entided to varying proportions from the collection of other taxes and fees imposed by member-LGUs like the corporate residence tax, excavation fees, building and sanitary permit fees, parking fees

s The IRA is the mandated

share of LGUs in internal

revenue

collections

of the Bureau

Internal Revenue (BIR). Prior to 1991, total IRA was at the maximum equal to 20 percent of BIR collections three years prior to the current year. The IRA is allocated to the different levels of local government and to specific LGUs within each level according to a pro-determined formula that is based on population, land area.and equal sharing.

Case Study:Metro Manila

267

and the like (HUDCC and LOGODEF 1995). Moreover, the MMC also imposed and collected the following taxes/fees: cinema tax, franchise tax, delivery van tax, peddlers tax, tax on transfer of real property and traffic violation fees. Lasdy, member-LGUs were ordained to contribute 20 percent of their regular income to the MMC. In 1988-1989, yearly MMC revenues amounted to P1,037 million on the average in 1992 prices. Statutory contributions of memberLGUs were the single biggest source of revenue for the MMC. Its share in total MMC income was 34.7 percent on the average during this period. More than 30 percent of total MMC income came from its share in the real property tax, 13.1 percent from other taxes, 11.1 percent from fees and charges (non-tax revenues), 5.4 percept from the IRA and 5.6 percent from subsidies from the central government (Table 6). MMC-LGU relations PD 824 effectively emasculated its member-LGUs. It abolished the legislative councils of the member-LGUs and vested MMC the power to enact ordinances. In principle, the city/municipal mayors retained the powers and functions assigned to them prior to the issuance of PD 824. However, they were also tasked to execute MMCapproved programs in their respective jurisdictions. Thus, they became area administrators/managers. l,inkages with national government agendes As earlier stated, the MMC was mandated to coordinate and monitor key sectoral services. Largely, because of the political clout of the First Lady (Imelda Marcos) who was Governor/General Manager of the MMC for 10 years, the MCC exercised more than a coordinative function over said services (League 1993). Senior officials of key national government agencies (like the Department of Public Works and Highways, Department of Health Department of Education) were appointed as Action Officers of the MMC. Through this arrangement, the MMC formalized its influence over national government line agencies in terms of ensuring budget support to metropolitan projects.

Table 6. Comparative Revenue Sources I. Metro Manila Commission 1988-1990

of Metropolitan

Level in Cm'rent Prices (P million) Sotwce t. Tax Revenues A. Real Property Tax B. Business Taxes C. Other Taxes 1. Non-Tax Re_,enues 2. Other Income (Receipts) A. Statutory Contributions B. Internal Revenue Allotment C. Capital Revenue D. Grants & Aids Total Income

1988

1989

Average

Organization Level in 1992 Prices (P million) 1988

1989

% Shares

Average

1988

1989

Average

268.75 192.37 45.26 31.12 62,13

336.37 228.17 55.29 52.91 94.64

302.56 210.27 50.28 42,02 78.39

416.20 297.9i 70.09 48.19 96.22

477.78 324.09 78.53 75.15 134.43

446.99 311.00 74.31 61.67 115.32

44.25 3]..67 7.45 5.12 10.23

42.16 28.60 6.93 6.63 11.86

43.20 30.13 7.19 5.88 11.05

276.50 198.28

366.91 293.15

321.71 245.72

428.20 307.07

521.15 416.39

474.68 361.73

45.52 32.65

45.98 36.74

45.75 34.69

26.01 0.08 52.13 607.38

52.61 0.33 20.82 797.92

39.3 t 0.21 36.48 702.65

40.28 0.12 80.73 940.62

74.73 0.47 29.57 1133.36

57.50 0.30 55.15 1036.99

4.28 0.01 8.58 100.00

6.59 0.04 2.61 100.00

5.44 0.03 5.60 100.00

26.72

25.51

% of GDP

24.18

H. Metro Manila Authority 1991-1993 Level in Cm-rent Prices (P million) 1. Tax Revenues A. Real Property Tax B. Business Taxes C. Othec Taxes 1. Non-Tax Re_,enues 2. Other Income (Rec eip_s ) A. Statutory Contributions B. Internal Revenue Allotment

1991 464.87 355.31 62.85 46.71 112.02

1992 167.08 " i49.13 10.67 7.28 85.46

1993 Average 79.14 237.03 79.i4 194.53 0.00 24.51 0.00 18.00 77.42 91.63

556.64 422.26

332.27 0.00

436.25 0.00

t28.36

184.45

32i .28

Level in 1992 Prices (P million)

% Shares

1991 501.62 383.40 67.82 50.40 120.88

1992 167.08 149.13 10.67 7.28 85A6

1993 74.16 74.16 0.00 0.00 72.55

Average 247.62 202.23 26.16 _9.23 92.96

1991 41.01 31.35 5.54 4.i2 9.88

1992 28.57 25.50 1.82 1.24 14.61

1993 13.35 13.35 0.00 0.00 13.06

Average 27.64 23.40 2.46 1.79 12.52

441.72 140.75

600.64 455.64

332.27 0.00

408.82 0.00

447.25 151.88

49.11 37.25

56.82 0.00

73.59 0.00

59 _84 12.42

211.36

138.5i

184.45

301,08

208.01

11.32

31.54

54.20

32.35

Table

6 (continued)

II. Metro Manila Authority 1991-1993 Level in Current Prices (P million) C. Capital Revenue D.Grants & Aids Total lacome

1991 0.00 6.02 1,i33.53

1992 0.00 147.82 584.81

1993 Average 0.00 0.00 114.97 69.60 592.81 770.38

% of GDP HI. Metro Manila Development

1. Tax Revenues A. Real Property Tax B. Business Taxes C. Other Taxes 1. Non-Tax Revenues 2. Other Income (Receipts) A_ Statutory Contributions B. Internal Revenue Allounent C. Capital Revenue D. Grants & Aids TotalIncome % of GDP

Level in 1992 Prices (P million) 1991 0.00 6.50 1223.14 27.66

Authority 1996-1998 Level in Cument Prices (P million) 1996 0.00 O.O0 0.00 0.00 120.51

1997 0.0O 0.00 0,00 0.00 111.73

1998 Average 0.00 0.00 0.00 0.00 0.00 0.O0 0.00 0.00 122.50 118.25

1992 0.00 147.82 584.81

1993 0.00 107.74 555.54

13.36

12.34

Average 0.00 87.35 787.83

% Shares 1991 0.00 0.53 100.00

1992 0.00 25.28 100,00

1997 0.00 0.O0 0.00 0.00 76.4t

1998 0.00 0.00 0.00 0.00 76.16

Average 0.00 15.07 100.00

Average 0.00 0.00 0.00 0.00 80.04

1996 0.00 0.00 0.00 0.00 7.68

1997 0.00 0.00 0.00 0.00 6.11

1998 0.00 0.00 0.00 0.00 6.77

Average 0.00 0.00 0.00 0.00 6.85

17.79

Level in 1992 Prices OPmillion) 1996 0.00 0.00 0.00 0.00 87.55

1993 0.00 19.39 100.00

% Shares

1448.28 37'2.96 307.89

1716.24 471.62 313.16

1687.61 476.99 361.80

1617.38 440.52 327.62

1052.18 270.96 223.68

1173.72 322.54 214.17

1049.21 _'296.55 224.94

1091.70 _o96.68 2,_0.93

92.32 23.77 19.63

93.89 25.80 17.13

93.23 26.35 19.99

93.15 25.31 18.92

0.00 767.43 1568.80

0.00 931.46 1827.97

0.00 848.82 1810.11

0.00 849.23 1735.62

0.00 557.53 1139.73

0.00 637.01 1250.13

0.00 527.73 119_5.38

0.00 574.09 1171.74

0.00 48.92 100.00

0.00 50.96 100.00

0.00 46.89 100.00

0.00 48.92 100.00

21.78

21.88

19.59

21.06

Sourve: Data for MMC and MMA from MMM_S 1993; Data for MMDA from MMDA_

270 Managing UrbanizationUnder a DecentralizedGovernanceFramework _s_s_e ssme nt League (1993) noted that because of the unique situation brought about by the appointment of the First Lady as Governor of Metro Manila while being the head of the powerful Ministry of Human Settlements (MHS), the MMC enjoyed a position of primacy in the metropolis. While no formal evaluation of the performance effectiveness has been undertaken, there is some agreement that the MMC was effective in more ways than one (League 1993; HUDCC and LOGODEF 1995). For instance, the squatter problem was reportedly better controlled; traffic and public transport were better managed; the environment was cleaner and greener. Moreover, the MMC was able to generate strict compliance from LGUs with respect to the remittance of their mandated contributions. The MMC was able to prepare the first metropolitan land use and zoning plan which was enforced through a zoning ordinance. Much of this success was dependent of the personality/individuality of the First Lady who was able to generate the greater support and cooperation of LGUs and national government agencies than would have been possible if any other person were appointed Governor (HUDCC and LOGODEF 1995). In spite of the MMC's enormous power and influence, it did not evolve into a real metropolitan institution. The MMC actually performed a rather limited range of normal metropolitan services. For most services, it was unduly dependent on national government agencies. Table 7 shows that in 1988-1989 the MMC spent 84.3 percent of its budget on operations. In turn, 91.9 percent of this amount was expended on solid waste management. On the other hand, Table 8 documents MMC's reliance on central government agencies. In 19881989, MMC's expenditures accounted for a low 7.5 percent of total general government expenditures in Metro Manila,. The bulk (62.2 percent) of total general government expenditures in the region was expended by central government agencies. In comparison, memberLGUs contributed a sizable portion (30.3 percent) of total general government expenditures. The latter were allocated largely to local concerns.

Case Study:MetroManila

271

League (1993) further noted that without a NEDA 4 Regional Office in the NCR, there was no Regional Development Plan to guide the development of the metropolis in an integrated fashion with its neighboring regions and with national priorities. Consequently, the MMC had a tendency to concentrate on "high visibility impact projects .... reactions to specific problems or showcase projects which were not sustainable". It was not until the 1980s when the Commissioner for Planning (within the MMC structure) was appointed to take on the functions and responsibilities similar to those of a NEDA Regional Director. However, the MMC was shortlived with the ouster of the Marcos government following the People's Power/ EDSA Revolution in February 1986. Metropolitan Manila Authority, 1990-1995 The collapse of the Marcos administration in 1986 and the adoption of a new Constitution (which passed on to Congress the task of determining the appropriate institutional mechanism for metropolitan management) placed Metro Manila in institutional limbo, with an ambiguous structure and leadership. The growing problems of Metro Manila, most especially with respect to traffic and garbage, triggered then President Corazon Aquino to issue Executive Order (EO) 392 in 1990 that created the Metro Manila Authority (MMA) as an interim body pending the creation of a more permanent metropolitan organization fbr the region in a manner that is consistent with the provisions of the 1987 Constitution. The MMA is considered by many as a weaker version of its predecessor (the. MMC) in terms of both executive and revenue powers. Moreover, the passage of the new Local Government Code in 1991, which enhanced the autonomy of LGUs, further debilitated the MMA. The more important features of the MMC under the more decentralized framework are presented in Table 5.

The MMAwas given jurisdiction over the delivery of basic urban services requiring coordination. These basic services included among others: land use, planning and zoning; traffic management; urban

4National Economic and Development Authority (NEDA) is a constitutional body mandated to provide overall leadership in economic and social development planning and policy formulation.

272 Managing UrbanizationUnder a DecentralizedGovernance Framework development and renewal; disaster management; waste management.

and sanitation

and

The MMA had no legislative authority. Prior to the passage of the Local Government Code (or LGC), the MMA had the authority to collect taxes which were accruing to it 100 percent. This was no longer true in the post_LGC period. Organizational structure The MMA was governed by the Metro Manila Council which was composed of the mayors of the member LGUs. The Chairman of the Council was elected from among its mayor-members for a sixmonth term and performs a largely titular (e.g., preside over meetings) and recommendatory function. The Secretaries of the Department of Transportation and Communication (DOTC), Department of Public Works and Highways (DPWH), and Department of Budget and Management (DBM) attended the meetings of the Council as non-voting members. The Council was responsible for the formulation of policies on the delivery of services and the promulgation of resolutions of metro-wide application. However, EO 392 provided that a General Manager, appointed by the President of the Philippines, was to be in charge of day-to-day operations. Finance EO 392 reduced mandatory LGU contributions to the MMA from 20 percent to 15 percent of LGU regular income. With the implementation of the Local Government Code in 1991, the share of the MMA in the real property tax was also reduced from 45 percent to 35 percent. Moreover, provincial taxes, previously accruing to the MMA prior to the LGC, were withdrawn and assigned to member LGUs. Also, the Implementing Rules and Regulations (IRR) of the LGC provided that cities and municipalities were no longer required to make contributions to the MMA, causing the member LGUs not to remit any contributions at all. However, the LGC provided for higher aggregate IRA levels. In sum, the MMA, post-LGC, had to content itself with the following sources of revenue: (1) higher IRA share; (2) reduced/voluntary LGU contributions; (3) reduced share in some taxes levied by member-LGUs; and (4) central government subsidies.

Case Study: Metro Manila

273

Table 6 highlights the diminution of MMA income with the implementation of the LGC. Effectively, MMA income (expressed in 1992 prices) was reduced by more than 50 percent in spite of larger central government subsidies during the period. Expressed as a proportion of GDP, MMA declined from 0.3 percent of GDP in 1991 to 0.1 percent of GDP in 1992/1993. At the same time, there was a dramatic shift, in the composition of MMA income. The IRA emerged to be the most important revenue source. Its share in total MMA income rose from 12.2 percent in 1991 to 50.8 percent in 1993. The share of central governments subsidies also rose dramatically from 0.6 percent to 18.2 percent. In contrast, the share of tax revenues dropped from 44.2 percent to 12.5 percent. MMA-LGU relations LGU legislative bodies were re-constituted with the implementation of the LGC. As earlier noted, mayors of member LGUs are voting members of the Metro Manila Council. While the MMA was given the primary responsibility over metro-wide services, LGUs were assigned locality-specific services. In the post-LGC period, LGUs refuse to remit their contributions to the MMA. Linkages with national government agencies The MMA coordinated the program implementation with sectoral national government agencies. The venue for this was essentially the participation of selected Secretaries in the Metro Manila Council.

The combination of institutional ambiguity and reduced revenue generating powers as a result of the passage of the Local Government Code constricted and hampered MMA's provision of public services in the metropolis. Given its very limited funding, the MMA has had to rely more on its coordinative role. However, in practice, neither the MMA Chairman nor the General Manager has sufficient clout to effectively coordinate with national government agencies or with themember LGUs. Moreover, the very short term of office of the MMA Chairman did not promote continuity in policy formulation and program implementation. As such, the focus of policies and programs changes with every turnover in the chairmansh:-

274 Managing Urbanization Undera DecentralizedGovernance Framework Table 7.

Expenditure

Pattern of Metropolitan Body

Levels (in million pesos) 1988 1989 Average

L MMC Administrative Office

% distribution 1989

1988

Average

53.41

97.17

102.00

10.99

13.59

12.09

Operations of which: solid waste others

417.46

587.64

711.28

85.89

82.22

84-33

383.23 34.23

540.63 47.01

653.54 57.74

78.85 7.04

75.64 6-58

77.49 6.85

Other Total

15.18 486.05

29.94 714.75

30.i5 843.43

3.12 100.00

4_19 100.00

3.57 100.00

Purposes

IL MMA

Levels (in million pesos) 1991 1992 1993 Average

Administrative Office Operations of which: solid waste others Other Total

Purposes

80.16

Operations of which: solidwaste traffic infrastructure dev't_ pollution control others Other Total

Purposes

% distribution 1992 1993

Average

72.06

73.48

225.70

7.29

8,97

10.37

8.64

888.70 720.97

625.82

2,235.49

80.77

89.79

88.32

85.59

822.94 658.97 65,76 62.00

561.99 63.83

2,043.89 191.60

74.79 5.98

82.07 7.72

79.31 9.01

78.26 7.34

131.42 9.91 1,100.28 802.94

9.29 708.59

150.62 2,611.81

11.94 100.00

1_23 1.31 100.00 100.00

5.77 100.00

Levels (in million pesos) 1996 1997 Average

m. MMDA Administrative Office

1991

% distribution 1996 1997 Average

124,920.85

128,125.38

188,983-54

8.05

7.27

7.77

1,247,011_37

1,377,775.76

1,935,899.25

80.34

78.20

79.57

1,041,997.15 119,523.79

1,188,062.01 125,132.01

1,636,028.15 182,089.80

67_1.3 7.70

67_43 7.10

67_24 7.48

57,070.44

36,661.87

75,401.37

3.68

2.08

3.10

7,288.19 â&#x20AC;˘ 21,131.81

6,098.17 21,821-69

10,337.27 32,042.65

0.47 1.36

0.35 1.24

0.42 1.32

180,246.01 1,552,178.22

255,936.17 1,761,837.31

308,214.09 2,433,096.88

11.61 100.00

14.53 100.00

12.67 100.00

Sources: Data for MMC and MMA from MMMS (1993); data for MMDA from MMDA.

Concomitant

with the dramatic

decline in MMA income with

the implementation of the Local Government Code, MMA expenditures also contracted from 0.3 percent of GDP in 1991 to 0.1 percent of GDP in 1993. However, the composition of MMA expenditures did not change that much. In 1991-1993, 86.3 percent of MMA expenditures went into operations. Of this amount, 78.3 percent was allocated to solid waste managemerrt (Table 7).

Case Study: MetroManila

275

During this period, LGUs gained increasing prominence as their share in total general government expenditures rose from 31.5 percent in 1991 to 42.6 percent in 1993 (Table 8). This occurred as the expenditures of both the MMA and central government agencies declined in terms of 1992 prices and when expressed as a proportion of GDP. Note that many health and social welfare functions previously discharged by the central government were devolved to LGUs during this period. In like manner, LGUs took over some of the services in solid waste management that the MMC used to provide. Metropolitan Manila Development Authority, 1995 to the present Mounting metropolitan problems continued to beset Metro Manila and the clamor for a better and stronger metropolitan body became stronger. It was not until 1995 that the Lower House and the Senate were able to reach a compromise bill and enacted RA 7924. RA 7924 reaffirms the compositional definition of Metro Manila constituting it into a "special development and administrative region" subject to direct supervision of the President of the Philippines. The law also provided for the creation of the Metropolitan Manila Development Authority (MMDA). In general terms, the MMDA shall, perform planning, monitoring, coordinative, regulatory, and supervisory authority over the delivery of metro-wide services within Metro Manila without diminution of the autonomy of LGUs concerning purely local matters. RA 7924 grants a more permanent term for the MMDA Chairman. A feature of RA 7924 not found in previous legislation is the prescription for the MMDA to work closely with nongovernment organizations (NGOs), peoples' organizations (POs) and the private sector.

R 9 maaut RA 7924 mandates the MMDA to (1) formulate, coordinate, and regulate the implementation of medium- and long-term plans and programs, including investment programs, for the delivery of metro-wide services, land use, and physical development; (2) undertake and manage its own metro-wide programs and projects for the delivery of specific services under itsjurisdiction; (3) set policies concerning traffic in Metro Manila; and (4) install and administer a single ticketing system; fLx,impose and collect fines and penalties for all kinds of traffic violations.

Case Study:Metro Manila

277

RA 7924 defines the scope of MMDA's functions to include services "which have metro-wide impact and transcend local political boundaries or entail huge expenditures such that it would not be viable for said services to be provided by the individual local government units comprising Metro Manila." These services include development planning, transport and traffic management, flood control and sewerage management, urban renewal, zoning and shelter services, health and sanitation, urban protection and pollution control and public safety. Auths/riti_ The MMDA, like the MMA, has no legislative powers. can it levy nor collect taxes.

Neither

Organizational structure The MMDA structure is almost identical with that of the MMA. It has a Chairman, a General Manager (GM), and three Assistant General Managers (AGMs), one each for Planning, Operations, and Finance and Administration (Figure 2). The Chairman is given executive functions, which he shares with the General Manager. The Chairman is appointed by the President of the Philippines, holds the rank of a Cabinet member and holds office at the discretion of the President. The GM and AGMs are also appointed by the President. The Metro Manila Council remains the policymaking body. The membership of the Metro Manila Council is expanded to include the president of the Metro Manila Vice-Mayors League, and the president of the Metro Manila Councilors League, the heads of the Department of Tourism (DOT), Housing and Urban Development and Coordinating Council (HUDCC), and the Philippine National Police (PNP) in addition to all the mayors ofmember-LGUs and the heads of the DOTC, DPWH, DBM. MMDA has 10,820 personnel service positions, 70 percent of which are filled as of April 1998. About 90 percent of the total plantilla positions are allocated to the Environmental Sanitation Center (ESC), which are mainly composed of metro hardinero or streetsweepers. There is a realization that the MMDA should no longer hire street sweepers in as much as the LGUs hire their own in their respective localities. The current proposal to correct the lopsided distribution of manpower complement in the whole organizational structure has been submitted by MMDA to the DBM for consideration and study.

Figure

2. Organizational

Structnre:

Metropolitan

Manila DeveLopment NI_DAC

COUNCIL SECRETARIAT

Authority

Te_l nica[II'lS(_-_{_

GENERAL

MANAGER |

_= s_

Managerfor Rnanceand

Treasury • B_

/_oundt_ •

I_°'_t--_Ad_" Opera_(_

AdIl_h!_m_te

Gerlera_ Managerfor

Pubiclr_Of_

I -TRAFRC AND TRANSPORT I ....... CENTER

,SOLIDW,a_i"E MANAGEMENT I ........

co_°,

L----- / i

,............

{ _ _

-I

...........

M_B_e

GeneralManagerfor

Ul"banOesign _

_. C

= Q.

Planning S.pp0rt and

"--"

O (D CONTROL AND DRAINAGE

L''_'_'"__ _1 _._j_,_ [ Source:MMDA ([996_).

.s Gr_.,p ]

_,._,_

URBAN PROTBC'RON

C_R

In_e_'et_ve Ranning

Z0_ing Adrnini_

-n

_ o _--

Case Study:MetroManila

279

The proposal basically reduces the number of ESC personnel while beefing up personnel complement in the technical departments especially in the office of planning, operations and administration. Finance RA 7924 prescribes the following sources of revenue for the MMDA: (1) its own IRA share; (2) subsidies from the national government; (3) contribution ofmember-LGUs set equal to 5 percent of their total annual gross revenue of the preceding year, net of IRA; and (4) fines and fees the MMDA may impose and collect for services rendered. As such, the MMDA is highly dependent on central government subsidies. In 1996-1998, central government subsidies accounted for 48.9 percent of total MMDA income (Table 6). In comparison, the share of mandatory contributions from memberLGUs was 25.3 percent while that of the IRA was 18.9 percent during the period. MMDA-LGU relations Policy coordination with the LGUs is done within the MMDA structure through the Metro Manila Council. However, operational coordination with respect to area-wide services such as traffic and, transport management, solid Waste management, disaster management as well as planning functions such as physical framework, socioeconomic and land use planning are coordinated with individual LGUs. I.inkages with national government nrivate sector

agencies= NGOs/POs

and

"Several sectoral national government agencies and government corporations are undertaking various programs and projects in Metro Manila. These include the DPWH responsible for roads, bridges, flood control and drainage as well as traffic engineering; the DOTC and its various bureaus 5 dealing with transport and traffic management; the National Housing Authority (NHA) on housing; the Housing and

_These include the Transportation Planning Service of the DOTC CenWal for overall formulation of transportation policies; Land Transportation Office (LTO) for vehicle registration, vehicle inspection and issuance of drivers' license; and the Land Transportation Franchising and Regulatory Board (LTFRB) for issuance of franchises to motorized road ba_d modes of public transport services_

280 Managing UrbanizationUnder a DecentralizedGovernance Framework Land Use Regulatory Board (HLURB) for subdivision plans; the Metropolitan Waterworks and Sewerage System (MWSS) for water supply; the Department of Environment and Natural Resources (DENR) for environmental management; the Laguna Lake Development Authority (LLDA) for the management of the Laguna de "Bay region encompassing the five cities in Metro Manila; the Department of Interior and Local Government (DILG) for management of LGUs as well as in police assistance; the National Economic and Development Authority (NEDA) for the planning, monitoring and evaluation of plans and projects; and the Department of Health (DOH) for health and sanitation. On top of these government agencies are ad-hoc commissions or task forces created by the President including the Presidential Task Force on Solid Waste Management, the Presidential Task Force on Traffic Improvement and Management (TRAFIMM), the Philippine Council for Sustainable Development and the Cabinet Officer for Regional Development (CORD) 째 for NCR who is the HUDCC Chairman serving as the link of Metro Manila to the President. MMDA coordinates its interregional concerns basically through the NEDA. This is with respect to the formulation of its regional development plan and physical framework taking into account the spatial development of the metropolis in the neighboring regions of Region III (Central Luzon) and Region IV (Southern Tagalog). However, MMDA needs to improve its linkage with institutions responsible for translating the intererregional framework to actual plans and programs. For instance, at present, the MMDA has no involvement in the MARILAQUE Commission established by the President to plan for and develop the growth corridor from NCR to the provinces ofRizal, Laguna and Quezon. Neither is MMDA involved with efforts relative to CALABARZON development. The MMDA is mandated to enhance institution-building and effective people's participation in governance through (1) private sector/NGO involvement in MMDA programs and projects; (2)

The CORD system was introduced by the Aquino administration and was carried over by the Ramos administration. Each of the 15 regions is assigned a CORD coming from the members of the Executive Cabinet. During the Estrada administration, Executive Order No. 7 created seven (7) Presidential Assistants for Regional Concenls (PARECO). Unlike the CORD system where the CORD is a Cabinet member, the PAKECO is a Presidential appointee under the adnfinistrative control and supervision of the Executive Secretary and holds office at the NEDA Regional Office. The PARECO system has been carried on by the Macapagal-Arroyo Administration.

Case Study: Metro Manila

281

improved transparency through the provision of better private sector access to information on government activities; and (3) promotion of private sector initiatives in urban development. Asse.amxem The relatively stable term of office of the Chairman of the MMDA enhances institutional focus and sharpens its vision. Although the scope of its mandate over metro-wide services has been expanded to include more services, it continues to perform a largely coordinative role because its revenue-raising powers are still limited. The expenditures of the metropolitan entity (expressed in terms of either 1992 prices or a propordon of GDP) doubled with the establishment of the MMDA. But what is perhaps more significant is the fact that the MMDA effectively expanded its ambit to include more metro-wide responsibilities. While the operations budgets of both the MMC and the MMA were spent almost solely on solid waste management, that of the MMDA's is now allocating sizable amounts for traffic and infrastructure development (Table 7). However, the majority of total general government expenditures in Metro Manila still come from central government agencies. At the same time, LGUs continued to expand in 1996-1997 (Table 8). Major Metropolitan Governance Challenges In a nutshell, the problems in metropolitan governance in Metro Manila manifest themselves in the inefficient and inadequate deliv_-y of metro-wide services. Largely, this lack stems from the rather unwieldy institutxonal setup. The following discussion on the important management challenges in Metro Manila provides a more detailed explanation of these problems.

and As in many big cities in the world, traffic management dominates Metro Manila's development challenge. The deterioration of transport and traffic condition has afflicted Metro Manila since the 1950s. Simply put, traffic woes in Metro Manila stem primarily from an insufficient road system, the rapid increase in car ownership, the lack of quality public transportation services, poor enforcement of traffic regulations and lack of discipline on the part of both motorists and pedestrians. These problems are again validated in the initial

282 Managing UrbanizationUnder a DecentralizedGovernance Framework findings of the Metro Manila Urban Transportation Integration Study (MMUTIS 1997).7 In addition, there is a problem of overlapping of functions and duplication., of services in view of the multiplicity of players involved in transport and traffic management in the metropolis. Insufficient road system Major roads in Metro Manila are no longer sufficient to accommodate the rapidly rising traffic volume that have increased by more than 50 percent on the average during the last 15 years (Table 9). Private cars and trucks dominate tr'_c volume even in bus and jeepney-dominated major routes such as EDSA (C4) and Shaw Boulevard (R5). AccdeaatedJncr_easedo.xar_wnexzhip The number of registered vehicles in Metro Manila more than doubled during the period 1980 to 1995, growing at an average rate of 6 percent annually (Table 10). The increase has been more evident during the 1990s. During this period, personal incomes have improved significantly concomitant with the economic recovery. At the same time, liquidity in the banking system was relatively relaxed and credit access (for car financing) easy. At present, more than 40 percent of all registered vehicles in the country are plying in Metro Manila. This represents 1.1 million private and "for-hire" vehicles. Of these, almost half are privately owned cars and utility vehicles. Household car ownership doubled from 9.5 percent in 1980 to 19.7 percent in 1996 (Table 11). The percentage of households with more than one car has also risen. A similar trend is also evident in areas adjoining Metro Manila.

7 The MMUTIS Project was launched in March 1996 with technical assistance from the Japan International Cooperation Agency (IICA). The project, join@ undertaken by the Depas-tment of Transportation and Communication (DOTC), Metro Manila Development Authority (MMDA), National Economic and Development Authority (NEDA) and the University of the Philippines (UP), is based at the UP National Center for Transportation Studies (NCTS). The long-term objective of the projects is to established and update transporation database that will aid in the fo_nulation ofa transportaion master plan for Metro Manila within the present time to year 2015. The short-term objective is to prepare feasibility studies on priority projects that can be implemented within the present time to year 2005.

Case Study: Metro Manila

283

Table 9. Traffic Volume on Major Roads, 1980 and 1995 (vehicles/day) 1980 Road (Location)

1995

Ratio of

Total

Car/

Jeepney/

Total Cotmt

Count

Cotmt

Truck

Bus

99,900

172,500

154,700

17,800

1.7

72,900

113,700

111,300

2,400

1.6

(near Espafia Rotonda) 4. Roxas Boulevard

53,300

102,500

68,400

34,100

2.0

(intersecting

67,800

82,300

74,100

8,200

1.2

(intersecting Santolan) 6. Shaw Boulevard

51,500

76,300

72,900

3,400

1.5

(intersecting

37,300

43,500

27,800

15,700

1.2

1995/1980

1. EDSA (between

Guadaiupe

and Buendia)

2. South Super Highway (intersecting

Pres. Quirino

Avenue)

3. Quezon Avenue

P. Burgos)

5. Ortigas Avenue

Acacia Lane)

Source: 1990JUMSUT 1997).

and 1995 DPWH-Traffie Engineering

Table 10. Number of Registered and 1995 Type

1980

Center

(TEC) (inJICA/MMUTIS

Vehicles in Metro Manila, 1980, 1990 1990

1995

1980-1995 Ratio

% / year

Pr/mU Motorcycles Cars Utility Vehicles Buses

36,854 218,964 36,770

50,159 297,094 223,976 918

73,014 410,814 368,002 491

2.0 1.9 10.0

4.7 4.3 16.6 -

Trucks/Trailers

97,590

51,351

76,060

7.1

10.3

391,178

623,498

928,381

2.4

5.9

Motrocycles Taxis Cars

4,801 10,125 1,461

16,418 1,715 8,150

34,478 21,702 5,601

7.2 2.1 3.8

14.0 5.2 9.4

Utility Vehicles Buses Trucks/Trailers

27,202 3,578 8,797

27,659 4,329 3,009

53,362 7,824 4,344

2.0 2.2 0.9

4.6 5.4 -12.5

Subtotal TOTAL Manila)

55,964

61,280

127,331

2.3

5.6

684,778

1,055,692

2.4

5.9

Subtotal For Hire

(Metro 446,142

Source of basic data:JICA/MMUTIS

(1997); Land Transportation

Office (LTO).

284 Managing UrbanizationUnder a DecentralizedGovernance Framework The increase in household car ownership has been found to be positively correlated with household income. Thus, MMUTIS (1997) projected car ownership to increase by 2 percent annually from 1996 to 2015 as population and income levels continue to rise. Car ownership in the adjoining areas was projected to increase at an even higher rate of 5.1 percent. Increased demand_ua_ty publicdxansport services Public transportation services are mainly provided by buses, jeepneys, taxis and tricycles. While the supply of these services had increased dramatically through the years (Table 12), traffic congestion has decreased the quality of service of these transport modes in terms of travel speed, riding comfort and in-vehicle air quality. Although air-conditioned bus units have increased in terms of both the number of units and routes, in-vehicle crowding is still evident and only a few are well-maintained to provide comfort to the riding public. To satisfy the demand for better transport services, the number of Tamaraw FX or shared taxi on fixed route has increased rapidly since 1905. On the one hand, the addition of these udlity vehicles provided an alternative mode of transport for passengers willing to pay a higher than the normal fare for efficiency and travel comfort. On the other hand, it contributed further to the increase in the already high traffic volume and to the further worsening of the traffic situation in the metropolis. Urban rail transport services are still limited. While there are already three light railway transit (LRT) lines that are operating in addition to the Philippine National Railways (PNR) that provides rail transport services, a comprehensive inter-urban rail strategy for Metro Manila needs to be established.

Table U. Car Ownership Structure, 1980 and 1996 Metro Manila 1980 1996 % of Car-owning

Households

Adjolnh_g Areas

9.5

19.7

16,9

Average No. of Cars per Car-owning Household

1.4

1.3

i .2

% of Multiple Car-owning Households

19.0

20.1

13.3

Source:JICA/MMUTIS

(1997); MMUTIS Person Trip Survey.

286 Managing UrbanizationUnder a DecentralizedGovernance Framework Table 13. Transport and Traffic Management in Metro Manila Governance

National

Metro

Local

Policy Formulation

OP DOTC (Central, LTO, LTFRB) DPWI-I (Central, DPWH-NCR) DILG (PNP) TRAFFIM

MMDA

LGUs (Traffic Management Units, Local Traffic Ordinances)

Transport Planning

DOTC (Central, PNR)

MMDA

LGUs BCDA (Fort Bonifacio) PEA (Manila Bay Area)

Others

_Activity

LTFRB,

LRTA,

DeveLopers and Operators of busi.ness complexes

Transport Services Rail

DOTC (PNR, LRTA)

Bus

DOTC (L'ITRB) MMTC

Jeepneys

DOTC (Office of Transport Cooperatives, LTFRB)

Tricycles and Pedicabs

Private Companies

LGUs

Shuttle

Private

Services

Companies

with MMA or within the member agencies of the MMLTCC. For instance, the construction by DPWH of a fly-over along a section of Circumferential Road 4 (C-4) that favors private vehicles conflicted with the DOTC's long-term plan to construct a public-oriented rail â&#x20AC;˘ transit system within the same corridor, The presence of the fly-over led to complications in the construction of the ongoing Metro Rail Transit thereby increasing construction and engineering cost, prolonging" the construction, and further aggravating traffic congestion in the area. In the initial phase of the MRT project, there has been a serious clamor from private citizens and the business sector to address the traffic problem in the metropolis that has already reached a crisis stage. Then President Ramos issued Administrative Order No. 351 in

287 August 1997 creating the Presidential Task Force on Traffic Improvement and Management (TRAFIMM) as the integrating, coordinating and directing authority on traffic management nationwide, particularly in Metro Manila and other urban centers. The TRAFIMM in Metro Manila is headed by the Secretary of the Department of Transportation and Communications with a representative from the private sector appointed by the President as co-chairman. The members include the Secretaries of the DPWH, the Department of Interior and Local Government (DILG) and the Department of National Defense (DND), the Chief of the PNP, the Chief of the Armed Forces of the Philippines, the MMDA Chairman, concerned local chief executives, and three representatives from the private sector appointed by the Chairman of the Task Force. While the TRAFIMM has made a significant effort in easing the traffic condition in Metro Manila through the enforcement of new rules and regulations for land transportation, the Task Force is faced with certain constraints. It does not have the policy formulation mandate and review and approving authority over programs and projects of the various agencies that would have direct or indirect impact to the transport situation in the whole metropolis. Moreover, TRAFIMM's area of intervention is only limited to the national highways of the metropolis. The management of traffic in the rest of the road network remains the responsibility the LGUs concerned. The traffic management in Metro Manila thus reflects weakened metropolitan planning and policymaking vis-a-visthe national government and local government policy processes. F/ood control The occurrence of both big and isolated flash floods is one of the biggest problems facing the metropolis. The reasons for flooding are multitu_nous.They include the overflow of major river systems during intense rain or storm, poor local drainage due to inadequate capacity and maintenance of the system, and illegal encroachment on river and other natural channels by squatters, business establishments and residential houses (MMDA 1996b; HUDCC and LOGODEF 1995). Coordination problems between DPWH, MMDA and LGUs have also caused delayed response to flooding and hindered a more proacdve approach to solve or to mitigate flooding in known flood-prone areas like the KAMANAVA area (Kalookan, Malabon, Navotas, Valenzuela), Central Metro Manila (Tondo, Sta. Cruz,

288 Managing UrbanizationUnder a DecentralizedGovernanceFramework Sampaloc, Sta. Mesa, San Andres, Balon-Bato, Talayan-Tatalon and San Juan-Mandaluyong), Upper Marikina area, and North Laguna Lakeshore (Manggahan and Taguig-Pateros). Moreover, there is an inadequate regulatory framework with respect to subdivision and housing development, particularly that related to the provision of sotind and sufficient drainage facilities. Flood control in Metro Manila is the concern of a number of national and local government instrumentalities. The DPWH is the major implementor of all flood control and drainage projects. The NCR Office of the DPWH provides administrative and technical supervision over the operation and maintenance of completed flood control and drainage projects. With the establishment of the MMDA, this responsibility including the operation and maintenance of pumping stations and floodgates, is transferred to the MMDA within a transition period of about two years. At present, the turnover of DPWH functions and facilities to MMDA relative to flood control has yet to be formalized. The acquisition of the necessary technical and management capabilities of the MMDA from the DPWH is yet to be determined and evaluated before a turnover shall be effected. The nature of the flooding problem in the metropolis is multidimensional as it does not only require infrastructure improvement but also institutional approaches and regulatory policies. Thus, program and policy coordination may have to be tightened by rationalizing the functions of the various agencies that have roles to play in flood mitigation, including the Environment and Management Bureau of the Department of Environment and Natural Resources (DENR/EMB), the Housing Land Use and Regulatory Board (HLURB), the Metropolitan Water Supply and Sanitadon System (MWSS), the DND, NEDA, the Laguna Lake and Development Authority (LLDA), and the LGUs. Sol/d waste managvment Metro Manila is facing three major challenges with respect to solid waste management. The first concerns the need to improve waste collection. The second is the need to address the problem of final disposal. The third concerns an institutional dilemma. _/aztex.ollecdoa Out of the 5,350 tons per day waste generated in Metro Manila, about 75 percent are collected while the rest are illegally dumped in

Case Study: Metro Manila open spaces or thrown in metropolitan 1998).

289 waterways (JICA and MMDA

Under the current metropolitan arrangement, LGUs are responsible for waste collection while MMDA is primarily responsible for final disposal of waste collected. Collection coverage for 1997 among the 17 LGUs range from a low of 40 percent in the case of Navotas to a high of 98 percent in the case of Makati City. The disparity may be attributed to the fiscal capacity of the respective LGUs. LGUs having high collection coverage performance are those that have fully or partly consigned waste collection and haulage to private companies. JICA (1998) has projected collection coverage of LGUs in the metropolis to increase or approximate full coverage with greater privatization of collection and haulage services during the next decade. Waste disposal One of the biggest challenges in solid waste management in Metro Manila is the identification and maintenance of final disposal sites. At present, there are tour available sites for final waste disposal in the metropolis: the two open dumpsites in Payatas and Catmon and the two landfill sites in San Mateo and Carmona. The Payatas and Catmon sites have been closed because of health and environmental risks. The Carmona site was also closed due to complaints from the nearby residents and the municipal government. The San Mateo landfill will reach its full capacity by 2004 but with the closure of the other sites its full capacity will be reached before the turn of the century. In this regard, the identification and development of a new landfill site will be a critical concern in the immediate term. The recently prepared study/master plan for solidwaste management in Metro Manila by jICA (JICA 1998) has identified and made a technical evaluation of possible disposal sites. Five sites were identified and ranked: Pintong, Bocaue (Rizal), sea landfill in the Navotas offshore area, Kalawakan (Bulacan), Maragondon (Cavite) and Bacolor (Pampanga). The development of any of these sites will be critical given the circumstances plaguing the existing disposal sites. Institutional problem Pardo (1996) in his analysis of solid waste management in Metro Manila highlighted the absence of a single agency that has overall responsibility for all aspects of solid waste management from

290 Managing UrbanizationUndera DecentralizedGovernanceFra Table 14. Land Use Classification in Metro Manila Land Use

1972 Hectares

Residential Commercial Industrial Institutional Utilities Open Space Agricultural Cemetery/Memorial RecreationParksSports Rivers/Waterways Reclamation

13,750 530 1,365 1,800 30,980"

1980 % 28.0 1.0 3.0 4.0 64.0

Hectares

1991 %

18,948 2,573 4,037 2,892 890 14,380 7,806

29.4 4.0 4.7 4.5 1.4 22.3 12.1

13,012

20.2

Parks

AgTo-Industrial TOTAL

48,425

I00.0

671

1.0

236 64,445

0.4 100.0

Hectares

41,405 1,911 2,548 3,185 637 5,096 5,733 637

65.0 3.0 4.0 5.0 1.0 8.0 9.0 1.0

6_7

1.0

1,911

3.0

63,760

100.0

* Open space and others. Basic sources: 1972 figures from Manosa (1974) in NEDAJoumedofDevelopmentVol. 1981 figures from Metro Manila Commission (1983). 1991 figures from NCR Regional Development Pla_l (1993-1998).

1/2.

collection, transport and transfer, recycling and final disposal. MMDA, the LGUs and the various units of the DENR and DPWH take on various functions, jurisdictions and SWM responsibilities. However, there is no single body that orchestrates all these activities to ensure that they will be complementary and not conflicting. Such coordinating entity can also develop mechanisms to improve financing arrangement in the delivery of this important urban service. Land use, housing and urban poverty Land use Rapid urbanization over almost 30 years has altered Metro Manila's landscape as can be gleaned from the changes in the land use mix from 1972 to 1991 (Table 14). Residential land use currently predominate land use activity in the metropolis. Three decades ago, open spa_e was the__predominant land use. Recreation land uses including parks and sports area comprise only one percent of total land area in 1991 compared to 20 percent in 1980. A large percentage of dlese lands for open spaces and for other purposes have been used for housing. In spite of this large tract of land currently allocated for residential use, lack of housing is still a major problem as manifested by the increased demand for rental housing, the concomitant rise in

Case Study: Metro Manila

291

rental rates, and the increased number of squatter households. High land prices and the low-income capacity of many families in the metropolis hinder many households to participate in government and private housing projects. Thus, about halfofNCR households do not own the land they occupy. The number of squatter families has been rising as many opt to build substandard dwellings in private and public lands within the metropolis so as not to be too distant from their employment or livelihood source. Institutional arrangements Housing programs for the poor and low-income had been the purview of national government and LGUs rather than of the metropolitan body. The HUDCC is the national agency tasked with coordination of all government and private housing programs. It provides guidelines to implement RA 7270rathe basic law for a comprehensive and continuing homing program being participated by national agencies, LGUs, NGOs and the private sector. The National Housing Authority (NHA) is the sole agency engaged in direct shelter production. The Unified Home Lending Program (UHLP) supports the financing requirements of the Social Security System (SSS), Government Service Insurance System (GSIS) and the Home. Development Mutual Fund (HDMF), otherwise known as the PAGIBIG Fund. The 1991 Local Government Code empowered LGUs to assume greater responsibilities in delivering and financing basic infrastructure and urban services. Squatting problem In Metro Manila, the biggest task of LGUs is how to deal with the many squatters that occupy danger areas such as riverbanks, esteros, railroad tracks, garbage dumps, shorefines, waterways and other public places sach as sidewalks, roads, parks and playground. There are also those who are threatened with eviction by private landowners. The law allows for the eviction and demolition under these circumstances. However, LGUs and the NHA are given the responsibility to provide a relocation or resetdement site "with basic services and facilities and access to employment and livelihood opportunities sufficient to meet the basic needs of the affected families". There are not many LGUs in Metro Manila that have been successful in resetding squatters not only because of the political

292 Managing UrbanizationUnder a DecentralizedGovernance Framework repercussions but also due to the operational and financial cost, especially when the LGU does not own the available land for such relocation. Two cities, however, have successfully done so, namely, Marikina City and Muntinlupa City. Marikina City, as part of its river management effort, facilitated the relocation of families from the riverbanks through the Community Mortgage Program (CMP). The CMP is an innovative concept of low-income home financing program of the National Home Mortgage Finance Corporation (NHMFC), the government corporation which administers the UHLP, whereby an undivided tract of land may be acquired by several beneficiaries through community ownership. Marikina City took effort in convincing families of the dangers of residing along the riverbanks and the benefits of eventually owning their own house with very minimal financial cost. Muntinlupa City also availed of the CMP program and enjoined an NGO to provide interim financing and assistance in negotiations with private landowners. There is no denying, however, that some LGUs have tolerated squatting for political advancement. Squatting problem as a metropolihan governance challenge While LGUs are given the biggest responsibility in dealing with the squatting problem, the issue takes on a metropolitan dimension in the following situations: (1) when LGUs are constrained with the absence of land for relocation; (2) when the constraint for relocation is the inaccessibility of people to their place of work due to poor transport system; (3) when squatting becomes a major factor in the clogging of waterways and sewerage and fiver systems causing flooding and aggravating the traffic condition in the metropolis; and (4) when the substandard living environment becomes the breeding ground for infectious diseases and viruses causing illnesses and deaths in the metropolis (e.g., dengue fever). It becomes a national issue when taken in totality as squatting is the glaring symptom of urban poverty which have to be dealt with by improving not only the macroeconomic condition but also by providing employment opportunities in the other regions to curtail further in-migration to the metropolis. The current administration has put forward poverty alleviation as its major tbcus. In terms of housing for the urban poor, the newly installed leadership underscored the need for government intervention in housing production, which forms part of its pro-poor program and addresses the current crisis in the government's housing finance.

Case Study: Metro Manila

293

Future Challenges and Directions Addressing the challenges of Metro Manila over the mediumand long-term would entail pursuing three development direcdons: regional development dispersal, institutional strengthening of the metropolitan body, and setting up of a more unified and coordinated mechanism for the various key players involved in the management of Metro Manila. History tells us that the problems of Metro Manila have to be dealt with at its roots: addressing the uneven development between geographic regions. Developing the metropolis should be done simultaneously with the other equally promising cities in the country as well as promoting growth in the countryside. This would contribute to minimizing further pressure on the already strained metropolitan environment and would invariably help in managing the continued growth of Metro Manila. Furthermore, the development of Metro Manila should always take into account the development of its immediate regions and spillover areas. In this respect, interregional efforts taken through the MARILAQUE Commission should be continued. The same effort should be extended with respect to developments in the CALABARZON area so that it will not conflict with and instead contribute to realizing the metropolitan vision. On the other hand, a sound and respectable metropolitan institution, politically and technically armed to address the problems and needs of the metropolis is critical, if success is to be achieved. Metro Manila's management experience under three governance regimes over the past three decades has highlighted the importance of finding the optimal mix of powers, functions and responsibilities among the national government agencies, LGUs and the metropolitan body in managing the metropolis. What is evident is that the LGUs can singly handle local concerns effectively and efficiently depending on the leadership, the administrative capability and the financial capacity of the LGU concerned as shown by the model cities presented. However, international experience indicates that a metropolitan body plays a distinct and critical role in addressing concerns that transcend local boundaries and are characterized by economies of scale and externalities. A number of challenges and opportunities are evident in the need to strengthen the MMDA. First, although it may still be relatively premature to evaluate the effectiveness of the exisdng organization in tackling metropolitan issues, there is a perception among the LGUs

294 ManagingUrbanizationUnder a DecentralizedGovernanceFramework in Metro Manila at present of the MMDA's incapability to command respect and authority over them. The appointment of the MMDA Chairman should always be given serious thought--the same fervency as appointing a major cabinet post. The MMDA leadership must be able to put political and national government leaders together while making the organization more credible to earn the command and respect from the LGUs it coordinates. Second, in the medium-term, the national government has to seriously examine MMDA's proposed reorganization plan so that it will be enabled to improve its capacity to fulfill its roles and functions both from the standpoint of effectiveness and efficiency. Of greatest importance is the need for the metropolitan body to revitalize the development planning function that has not been adequately carried out of late. MMDA should provide the planning leadership in the pursuit of area-wide functions and in inspiring LGUs to attain a common vision for the metropolis. Such planning function cannot be carried out effectively if human resource availability and professional expertise are not improved. Third, the review of the performance of the different metropolitan arrangements in Metro Manila in the past indicates that a common thread that runs through the various experiments is the very limited role the metropolitan body has actually played in terms of actual delivery of metro-wide services. The MMC, MMA and MMDA have all relied for the most part on national government agencies in ensuring that metro-wide services are made available to Metro Manila residents. To a large extent, all three metropolitan bodies have exercised their coordinative function more than their service delivery function. While the MMDA appears to have taken on more responsibilities in the delivery of metro-wide services, a hefty proportion of metro-wide services still remains with national government agencies. This development is primarily explained by the fact_ that although the national government has continuously provide d subsidies to the metropolitan body, it still allocates a sizable portion 6fthe budget for metro-wide services to national government agencies. Thus, funding support for metro-wide services is principally retained in the budgets of national government agencies. (In contrast, funding support given to the metropolitan body, whether in terms of revenue-raising powers or direct budget support, has never been commensurate with its expenditure assignment.) These agencies,

Case Study:Metro Manila

295

being line departments, are inherently concerned with their own sectoral priorities rather than with serving the needs of the metropolis per se. Consequently, the metropolitan body is left with the very difficult task of having to orchestrate the sectoral programs of various national government agencies, including metro-wide services. This situation not only makes government effort almost intractable but also increases costs in terms of both manpower and financial costs. The recently installed national leadership has recognized the problems of urbanization, in general, and Metro Manila, in particular. The present study, which attempts to digest some of the lessons learned from the experimental laboratory that Metro Manila has become in the recent past, should help provide the needed inputs in moving the metropolis toward greater efficiency and global competitiveness.

References Caoili, M. 1985. Reflections on Metropolitan Manila Reorganization and Social Change. Journal OfPublic Administration 29 (1). Congress of the Philippines. 1995. Republic Act No. 7924. An Act Creating the Metropolitan Manila Development Authority, Defining Its Powers ar.d Functions, Providing Funds Therefor and for Other Purposes. Corpuz, A.G. 1995. Metro Manila Growth Directions: Location, Distribution and Shape. Input Study for the National Urban Policy prepared for NEDA. Go-Soco Jr., B. 1988. A Study on the Possibility of Establishing A Regional Development Council (RDC) and Promoting Coordinated Development in the National Capital Region. Unpublished. HUDCC (Housing and UrLbgl_Development Coordinating Council)/ Housing and Urban Regulatory Board. 1994. National Urban Development and Housing Framework 1993-1998, 2"dedition.

296 Managing Urbanization Undera DecentralizedGovernance Framework HUDCC and LOGODEF (Housing and Urban Development Coordinating Council/Local Government Development Foundation, Inc. 1995. Metropolitan Manila Management Study. HUDCC and PADCO (Housing and Urban Development Coordinating Council/Planning and Development Collaborative International). 1992, Urban Development Sectoi Review. Interagency Committee on Metropolitan Manila. 1973. Metropolitan Manila Authority: A Development and Reform Strategy Proposal. Manila: Government Printing Office. JICA (Japan International Corporation Agency). 1997. A Factbook on Metro Manila's Transportation and Traffic Situation (draft version prepared by the MMUTIS Study Team). JICA and MMDA (Japan International Cooperation Agency and Metropolitan Manila Development Authority). 1998. The Study on Solid Waste Management for Metro Manila in the Republic of the Philippines (Master Plan Report). League, j.A.L. 1993. Manila Metropolitan Management Experience. Paper prepared for the World Bank in connection with the Metropolitan Management Systems Workshop on Policy Options, 6 February 1993, Manila. MMA (Metro Manila Authority). 1993. National Regional Development Plan 1993-1998.

Capital Region

MMC (Metropolitan Manila Commission). 1972. Toward the City of Man: The Metro Manila Approach to Urban Management. MMDA (Metro Manila Development Authority). 1996a. Towards a Humane World Class Metropolis: A Physical Framework Development Plan for Metro Manila, 1996-2016. _.

1996b. Urban Planning and Development

in Metro Manila.

Case Study:Metro Manila

297

NEDA (National Economic and Development Authority). 1998. Philippine National Development Plan for the 21't Century. Pasig

City. _.

1994a. Draft National Urban Policy. . . 1994b. Final Report: Consultative Meeting National Urban Policy Framework. Manila.

on the Draft

Pardo, E. 1996. Country Report of the Philippines. In Urban Infrastructure Finance edited by Royston A.C. Brockman and Allen Williams. Manila: Asian Development Bank. Pernia, E. and R.D. Israel. 1994. Spatial Development, Urbanizadon and Migration Patterns in the Philippines. In SpatialDeuelopment, Land Use, and Urban-Rural Growth Linkages in the Philippines by Arsenio Balisacan et al. Manila: National Economic and Development

Authority.

United Nations University. 1994. Mega-City Orm_thand theFutu_ Tokyo: UNU Press.

J=lealth Management Strategies of Selected Cities

Coping with Insufficient

Health

301

Stations

Reaching out Gingoog City delivers basic services to people who live far from government facilities through an outreach program. The Gingoog Total Integrated Development Approach or G-TIDA was initiated in December 1988 as an outreach program to rural barangays. It provides health, medical, infrastructure and other services. A core group, organized by the mayor, plans and implements the program. It is composed of several coordinators and a secretariat. Outreach activities are done once or twice a month. The G-TIDA team meets directly with the people and their leaders to discuss the problems of the barangay. If problems cannot be given immediate attention, they are referred to higher authorides. The team informs people about the services provided by agencies in the city so they would know which to approach for their specific needs. Througlx the G-TIDA approach, people in some of the far-flung barangays were able to install water pipes connected to a spring using local resources and relying on the bayanihan (mutual assistance and exchange of labor) system. Gingoog's outreach program is now on its tenth year and has provided a means for delivering health services in areas without health stations. At present, all 50 rural barangays have health stations manned by a midwife and volunteer health workers. During the program's early years, the G-TIDA team stayed for two days and one night in a barangay. However, outreach is now limited to one day per barangay due to increased demand for outreach set vices. Expenses for outreach activities by participating agencies are taken from their regular agency budgets. There are no additional appropriations except for overhead expenses such as gasoline, transportation and food. In 1996, Gingoog City appropriated P189,400 for the program. Tapping privale homes for public needs To solve its lack of BHSs, Cotabato City tried a different approach. Since building costs for a concrete BHS is about P100,000, the city can, at most, only afford to build three structures a year. Unable to build more of these structures due to its limited funds, Cotabato

302

ManagingUrbanizationUndera DecentralizedGovernanceFrarnewm, k--

City opted to use barangay halls and priwate homes as venues for health services. These alternative venues are flee of charge. Today, Co_abato City has at least one health station for its 37 barangays and seven more extensions. Of these, 23 are pemaanent structures constructed by the city while the rest are lodged in barangay halls or private homes. When Health Workers Are Scarce Volunteers for the comnum good Another major problem when providing health care is the lack of personnel. The common approach to beef up manpower is to mobilize volunteers. Cotabato City activated 100 volunteers, mostly trained hilots (traditional midwives), to assist midwives in BHSs. Olongapo City has some 300 health volunteers. For its rescue and emergency medical assistance program, Naga City has 400 trained first responders and emergency medical technicians, all of whom are volunteers. Since volunteers render free services, the city is'able to save on salaries. In return, the cities reward them through other means. For instance, Cotabato City gives a P500 Christmas gift to each volunteer while Olongapo City provides them hospitalization benefits. Naga City volunteers receive uniforms, group insurance, and food while on duty. Women power Women's groups are valuable partners of city governments. Olongapo's Balikatan Ladies of Olongapo Movement (BLOOM) has 6,000 members, many of them housewives. Aside from cleanliness projects, members volunteer as nursing aides in the city hospital, assist health workers in immunization drives and conduct health classes. Lapu-lapu City has mothers support groups consisting of 410 members. The city taps this group in its advocacy activities such as feeding children during nutrition month. In Surigao City, the Primary Health Care FederatedWomen's Club (PHC) laid claim to over 12,000 members in 1996, over 63 percent of households in the city at the time. As volunteers, PHC members operate and maintain BHSs and feeding centers. They record and follow up the immunization of children, assist pregnant women to obtain pre-natal checkup and

lealth Management Strategies of Selected Cities onduct health education activities. They also learned ommon illnesses through herbs and liniments.

303 to treat

Involving private companies and medical practitioners Lapu-lapu City requested private companies and institutions to assist in the health needs of specific barangays. Companies donate supplies and facilities as well as the services of doctors (retainers) who provide free clinics in adopted barangays on a monthly basis. At present, ten companies and five educational institutions have adopted eight barangays. Lapu-lapu City's Health Office has also involved doctors affiliated with the Mactan Doctors Organization and nurses from the Mactan Community Hospital in its immunization program. The city provides the vaccines while the volunteers provide their services. Currently, 50 doctors and 100 nurses offer free services to different barangays. Maximizing available health praeationer,s Cotabato City's Office of Health Services initially targeted at least one midwife stationed to each barangay. However, limited funds again hampered this goal, so the city shifted strategy and hired casual, instead of permanent, midwives. Salaries were sourced from the 200 percent Development Fund. Starting 1993, the city was able to provide one midwife, employed on a casual basis, to all 37 barangays. More casuals were hired to beef up manpower in its main health center. Salaries for casuals total P2.5 million yearly. Puerto Princesa City's satellite clinics, another project financed by the 20-percent Development Fund, hired five doctors on a parttime basis. The city has five strategically located satellite clinics. A doctor provides medical services in his assigned clinic for two days per week. The remainder of the week, he works in hospitals or engages in private piactice. The city pays its doctors P10,000 a month each. The schedules of doctors in satellite clinics are synchronized to maximize their availability. For instance, in one satellite clinic, the doctor's schedule is Monday and Tuesday. In the other nearest satellite clinic, the doctor's schedule is Thursday and Friday. This way, during those days when the doctor assigned to a satellite clinic is not scheduled to come, the patient can instead go to the nearest satellite clinic and avail of another doctor's services.

304

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Meeting

Medical

Emergencies

Qui_k re_,ase saves lives Naga City initiated Emergency Rescue Naga (ERN) under its disaster preparedness program in April 1991. The ERN is a quick response unit led by the Naga City Hospital. It provides emergency medical assistance, rescue services, and transport to a hospital. It also gives medical backup assistance to particular events. The ERN has two telephone hotlines and two VHF controls. Its volunteers are equipped with beepers. Average ERN response time is three to five minutes within the city proper and 30 minutes for the farthest mountain barangays some 17 kilometers away. Emergency calls come not only from within Naga City but also from neighboring towns. ERN has an extensive radio network linking the offices of the mayor, the ambulances, police and fire stations within Metro Naga. Key personnel of the 14 local government units (LGUs) comprising Metro Naga were also provided with hand-held radios. ERN has one paramedic, a driver, and 400 trained first responders and emergency medical technician volunteers. Regular hospital staff, numbering 40, are On call. Assistance is rendered by the Philippine National Police, Bureau of Fire Protection, City Disaster Coordinating Council, Task Force COMET (for calls involving peace and order problems) and other civic organizations. Facilities consist of three ambulances, one all-terrain rescue vehicle, one rubber boat, and a trauma van. In 1996 alone, ERN responded to 2,257 emergency and t_ansport cases or an average of six trips per day. It has provided valuable rescue services during calamities such as super typhoon Rosing which caused floods of more than fwe feet in Naga in 1996. ERN evacuated more than 1,700 persons during that operation. The city spent P150,000 on ERN operations in 1997. Emergency Rescue Naga won the Galing Pook Award (top 20) in 1994, the Disaster Management Award for the regional level in 1995 and 1996, the national level in 1995, and the DOH Alay Buhay Award in 1996.

Saving lives in the boondocks Puerto Princesa City has five strategically located satellite clinics to serve far-flung barangays with no access to health services. The

Health Management Strategies of Selected Cities

305

clinics handle emergency cases as well as simple illnesses. For more serious cases, ambulances bring patients to hospitals within the city. All barangays and tribal communities are provided with handheld radios (VHF transceivers). Emergencies are reported to the barangay chairman who relay the information to the nearest satellite cliriic which fields an ambulance and health personnel. If patients require hospitalization, the satellite clinic makes an advance call to the receiving hospital. A satellite clinic is manned by two midwives, a radio operator, a driver, and a utilityman. A doctor provides medical services for two days a week and a dentist comes every two weeks. A clinic is equipped with four or five beds. Between 1993 and 1997, the clinics have served an average of 47,000 patients per year. Most cases were simple illnesses such as respiratory infections. The clinics serve as a vital link to the city's referral system. They resulted in the increase in emergency cases and the decline in the number of patients with simple illnesses clogging hospital docks. Puerto Princesa City's satellite clinics had a budget of P6.2 million in 1997 and are among the top 20 Galing Pook winners in 1996. Augmenting

Finances

Mandatory baranguy allocations for health Olongapo City requires its barangays to allocate five percent of their IRA to health and welfare. Drugs allocated to the barangays are sourced from this fund. In Cotabato City, baiangays also finance their own medicines. Lapu-lapu City requires its barangays to provide allowance for barangay health workers ranging from P400 to P1,500 per month. Twenty percent Community Development Fund Cotabato City and Puerto Princesa City both use their 20-percent Community Development Fund for projects, salaries of temporary health personnel and satellite clinics. Contr/buaom In Surigao City, the Barangay Environmental and Sanitation Tmplementation Group (BESIG) members contribute their labor

.,-306 ManagingUrbanizationUndera DecentralizedGovernanceFramework while the government provides the fu,lds for infrastructure projects such a_shealth stations and feeding centers. The city's PHC Federated Women's Club obtained P1.5 million for the construction of its training center from a senator's Countrywide Development Fund. Under the share-food project of a Butuan City barangay, wellto-do families sponsor malnourished children for three months. In Lapu-lapu City, companies and congressmen contribute to a milk feeding program for school children while a food manufacturer regularly gives noodles. They also donate facilities and supplies to the barangays. Identifying Health Needs: the Way There

Knowing the Problem

Gets You Half

Tour of duty In Lapu-lapu City, the city health officer toured all the barangays tor one month to identify the people's needs and ways of improving health service delivery. He traced the city's low performance in the Expanded Program of Immunization (EPI) to the absence of a specific schedule for immunization and doctor's visits and people's lack of interest. A permanent schedule was set and people were encouraged to go to their BHSs. As a result, Lapudapu was awarded the "Most Accelerated City in EPI" in 199 I. Currently, the city health officer goes to the barangays three to four times a week to check on the status of programs. The mayor goes visiting with him three to four times a month. The health officer also conducts a barangay assembly every quarter. He presents current government health projects and solicits comments from the community on their health priorities. The community participates in coming up with solutions to address its problems. Going down to the grassroots levd In Olongapo City, the mayor goes to the barangays accompanied by his depar_lent heads to sce the actual situation at the grassroots. The mayor visits all 17 barangays within a quarter. During barangay consultations, the people air their problems to the mayor. The department head who has jurisdiction over the problem is tasked to take action and start with the solution the following day. People report to the mayor in case the problem remains unsolved.

Health Management Strategies of Selected Cities

307

Integrated Approach: The Sum Is Greater Than Its Parts Gingoog City opted for an integrated approach for its outreach program, well aware that there are problems which cannot be solved by one agency alone but by several agencies working together. Olongapo City strengthened the linkage between health and sanitation by integrating its environmental management program with health activities. The Community Health Office plays a major role in solid waste management. Its sanitary inspectors conduct regular rounds and issue citation tickets (fines) to violators of sanitation ordinances (such as unclean premises and putting out garbage outside of the scheduled collection time), This combination of health and environmental management resulted in the reduction of sanitationrelated diseases such as typhoid fever and paratyphoid infections. The occurrence of these diseases declined from 75 percent in 1988 to 9 percent in 1995 per 100,000 population. Clustering of Barangays: A New Meaning for Hamletting For more effective supervision and monitoring, Cotabato's Office of Health Services grouped its 37 barangays into seven Clusters. Each cluster is supervised by a coordinator who monitors the activities of his respective cluster. Dividing the 37 barangays among seven coordinators simplified the task of supervision and monitoring since it enabled the coordinators to immediately respond to the problems of the barangays within their respective clusters. Planning, Monitoring and Evaluation: Don't Expect What You Don't Inspect Sem/nars Butuan City's nutrition personnel together with the Department of the Interior and Local Government conducts planning seminars with bavangay leaders. They compare the nutritional status ofpuroks (subvillages) in the barangay and guide leaders in making their quarterly action plans. The Cotabato Office of Health Services conducts semi-annual and annual review of programs. Regular feedback through meetings In Surigao City, the PHC chapter monthly meetings provide the means for identifying community problems at the purok level. Monthly staffmeetings, in addition to reports, are also conducted in

308

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Olongapo City to monitor and evaluate perfbrmance in the harangays. Health workers in each of Lapu-lapu's eight districts and nutrition workers in each of Butuan's 10 barangay clusters hold monthly meetings for the same purpose. Community data board Surigao City's community data board posts the health status of households. Each household is represented in the board by a small hut. The hut shows the house number, the name of the family head, the health concerns, and the period covered (first to fourth quarter). For comparison purposes, the previous year's quarterly performance is included as baseline. The community data board is updated every quarter through a survey of all households. The survey inquires on health concerns such as pregnancies, immunization and nutrition status of children, garbage disposal, water source, occurrence of diseases, PHC health insurance membership, and availability of toilet. For each health concern, the health worker assigns a colored circle to indicate health status (below is an example). Color Blue Yellow

Meaning Not applicable Improving

Example Nobody is pregnant in the household_ Degree of malnutrition changed from severe t.o mild.

Green Red

Safe Danger

Children are fully immunized. No PHC health insurance.

By looking at the red circles, the health personnel the most pressing health need of the households. The the ]mrok can also be prioridzed according to the number It follows that the health concern with the most number

is alerted on concerns of of red circles. of red circles

is the most pressing health need of a purok. Comparison with the previous quarter shows where performance has improved or deteriorated. The Best and the Worst: Appealing to the Filipino Ego In Surigao City, the PHC recognizes outstanding performance based on'a set of criteria such as the number of babies immunized and the number of sanitary toilets constructed. Awards are given to 10 outstanding PHC chapters, five outstanding workers, and outstanding couple during the PHC annual convention.

Health Management Strategies of Selected Cities

309

Butuan City conducts an annual contest for outstanding barangay. Every quarter, the performance of the barangays are evaluated using various criteria such as primary health care activities, food production and livelihood programs. Prizes range from P50,000 to P100,000. The city also ranks barangays according to prevalence of health problems such as the rate of malnutrition, and announces the poor performers in ABC (Association of Barangay Captains) meetings. Recognition of best and worst performers motivates the barangays to give programs and projects their best shot. More Improvements in the Current Setup Gingoog City's outreach method is useful as a temporary measure for coping with insufficient BHSs. However, the long-term solution is to provide additional health stations to reach all the barangays. While people benefit from the curative and preventive health services provided during outreach activities, othei- health services have to be done on a regular basis. The G-TIDA approach may be adopted by cities while they are in the process of setting up additional health structures. To sustain outreach activities, local governments could train people from within the area as health workers and nutrition scholars. In addition, they could mobilize people's organizations. Cotabato City's use of barangay halls and private homes as additional health stations is a progression from the G-TIDA approach. This enables regular provision of health services rather than being just a one-shot approach. Another alternative is to rent a space for the BHS. Equally important is the availability of health workers. Mobili_ng volunteers and mothers, in particular, is a good way of supplementing manpower without paying salaries. Likewise costless is Lapu-lapu City's channeling of the services of medical practitioners who are retained by private companies. The hiring of part-time doctors, as practiced by Puerto Princesa, enables curative services to reach remote barangays. The availability of doctors in satellite clinics reduce the number of patients going to hospitals for minor illnesses. The city's strategy can be extended to dentists and medical technologists. To sustain this activity, barangays may contribute for the salaries of part-time doctors and other health personnel. The latter may serve the barangays on a rotation basis.

3] 0

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Naga and Puerto Princesa can learn from each other's experience in emergency medical assistance. Puerto Princesa could follow Naga's mobilization of volunteers for handling emergencies while Naga may consider the stationing of ambulances in strategically located barangays as done in Puerto Princesa's satellite clinics. This way, the ambulance need not come from the city proper but any ambulance nearest to the place of emergency can respond immediately, thus saving travel time. Cities provide free services and medicines in public health facilities including the use of ambulances. In some cases, they are able to obtain financial and in-kind contributions from individuals or companies. One possible source of specifically, charging fees for medicines, medical services. Only the really indigent payment. This, of course, requires a system capability to pay.

funds is cost-recovery, use of ambulances, and may be exempted from for determining people's

Health in the Hands of the People: in Conclusion The Department of Health (DOH) sees health in the hands of the people by 2020. Devolution was a major step toward this vision. The government has set mechanisms to soften the impact of devolution. To advise local governments on health plan and budget, the 1991 Local Government Code mandated local governments to create Local Health Boards (LHBs) composed of local executives, health officers and representatives from the DOH and the private sector or nongovernmental organizations. To ensure the speedy resolution of problems brought about by devolution, Transition Action Teams (TATs) at provincial and regional levels were created. The DOH added another office to its structure--the Local Government Assistance and Monitoring Service (LGAMS)--to attend to local government concerns. It also provided for Comprehensive Health Care Agreements (CHCAs) between the DOH and local governments to implement priority health programs. A few more kinks, of course, need to be ironed out. Specific studies have identified these concerns, namely, the resolution of the issue of the inequitable distribution of IRA shares vis-a-vis devolution burdens (IRA reallocation bills are currently pending in Congress), technical assistance to LGUs in exploring other schemes for raising financial resources and in improving the management capability of

311 devolved hospitals, greater participation of nongovernment organizations and people's organiTations in local special bodies, and development of alternative modes ofintergovernmental cooperation to deal with issues of service delivery and monitoring that cut across jurisdictional boundaries. On the part of the DOH, it can jointly undertake revenue enhancement projects in devolved hospitals with local governments just as it has done in hospitals that continue to stay in its aegis (such as the Rizal Medical Center in Pasig City and the Ilocos Regional Hospital in La Union). It can provide technical assistance in improving pricing, billing and collection systems of devolved facilities. Lastly, the DOH can help local governments gain competence in managing devolved facilities through continued trainings.

Case Studies of Health Management

Strategies

Reaching Out: Gingoog City's Total Integrated Development Approach (G-TIDA) Puerto Princesa City's Satellite Clinics: A Curative Rural Network Emergency Rescue Naga: An LGU-Managed Emergency Rescue Project People Power at Work: The Case of Surigao City's Primary Health Care (PHC) Federated Women's Club Financing and Delivery of Health and Sanitation Services: A Case Study of Cotabato City Lapu-lapu City's Partnership for Health Olongapo: A Health City Butuan City: A Consistent Regional Outstanding Winner in Nutrition

Case

Study

ReachingOut: Gingoog City's Total Integrated Development Approach (G-TIDA) Virginia S. Pineda and Clark Y. Clarete ingoog City is on the northern coast of Misamis Oriental, 122 kilometers east of Cagayan de Oro City and 74 kilometers west of Butuan City. It has a total land area of 404.6 square kilometers, 1.71 percent of which is classified as urban areas. Around 56 percent of its total area are public forest lands (both classified and unclassified forests). The city is composed of 79 barangays, of which 29 are classified as urban and 50 as rural barangays. As of 1995, it has about 17,128 households. In 1990, the city's population was estimated at 82,852 persons. By 1995, it has grown to 87,530 persons or by about 5.65 percent. Of these, 32.51 percent live in urban areas and 67.48 percent in rural areas. Population density per square kilometer slightly increased from 204 in 1990 to 216 in 1995. Currently, about 3,924 households (roughly 23 percent of the population) live within the poverty threshold level (i.e., with average gross family income of P6,000 and below per month). The middle income group or those with average gross family income of P6,001 to P40,000 a month, constitutes 68 percent (11,601 households) while the high-income group (over P40,000 a month) makes up the remaining 9 percent (1,603 households) of the population. Health Facilities and Expenditure/Budget The health facilities of Gingoog City include one government hospital--the Gingoog District Hospital (run by the provincial government)--two private hospitals, one main health center (located within the urban core), and 50 barangay health stations or BHSs (one for each rural barangay). It has also five family planning centers and a puericulture center for maternity services.

] ]6

ManagingUrbanizationUndera DecentralizedGovernanceFramework

The Gingoog District Hospital has a bed capacity of 50 while the private hospitals have a combined bed capacity of 60. These hospitals serve the whole population of Gingoog City as well as the neighboring municipalities of Magsaysay and Medina. Because of the greater access of the urban barangays to the hospitals and the main health center, only the rural barangays are provided with BHSs. In 1991, before the devolution, the city's health expenditures amounted to P2.3 million, or around 6 percent of its total expenditures. This was spent almost wholly for basic health services. In 1994, after devolution, Gingoog's health expenditures and its proportion to total expenditures increased to P10.7 million and 9 percent, respectively. The city provided financial assistance of P500,000 to the Gingoog District Hospital and spent the remainder for basic health services, and operation and maintenance of health facilities. Of its P184.2 million total budget for 1996, the city appropriated P16.1 million for health services or an equivalent of 8.7 percent of the total city budget. It set aside P500,000 (or 3.11 percent) of the health budget for its annual financial aid to the Gingoog District Hospital. The rest of the health budget is for the operation and maintenance of the city health facilities, which mainly provide primary health care services. Health

Performance

Gingoog City's infant, child, and maternal mortality rates have been declining and were lower than the average for the Philippines from 1990 to 1995 (Table 1). However, the percentage of malnourished children remained almost the same: 62 percent in 1991 and 60 percent in 1995. The malnutrition rates were even higher than the national average for the same years. The G-TIDA Approach 1 In the late 1980s, the Gingoog City government received reports from concerned citizens that people rated its delivery of services, particularly health and nutrition, as "very poor" and "very slow." The mayor at that time, Arturo Lugod, observed that the delivery of services

Information members

on G-TIDA was sourced

and fi"om Quieta

(1994).

from interviews with the G-TIDA coordinator

and team

Case Study:Gingoog's City's Total IntegratedDevelopmentApproach 3 ] 7 Table 1. Mortality and Nutrition Indicators, 1990 and 1995 1990"

I,_dt,--tor Mortality Rates: Infant Child Maternal

1995

_ 44.7 61.1 190.3

Percentage of Malnourished Children (0-83 nmnths old): Mild Moderate Se_re Tou.l *Malnutrition

40.4 20.0 1_4 61,8

c_goog

Ph_'p_

56.7 79.6 209.0

36.7 50.2 156.1

48.9 66.8 179.7

41.3 14.3 2.1 57.7

38.2 20.4 1.5 60.1

30.7 8.4 1.2 40,3

data are for 1991.

Infant mortality: infa_lt deaths per 1,000 live births Child mortality: number of deaths among children less than 5 years of age per 1,000 children of the same age range Maternal mortality: number of maternal deaths per 100,000 live births Sources: Herrin

(1998); National

Statistical

Coordination

Board; DOH Nutrition

Service.

by government agencies to rural areas was fragmented and uncoordinated. In the health sector, for instance, the Emergency Hospital and the City Health Office implement their respective outreach programs without coordinating with each other. Mayor Lugod also noted that people in remote rural barangays have limited access to services because they live far from government facilities and those with low education are either shy or afraid to ask for help from government officials and personnel. As a response, the mayor's strategy was to bring the services to the people and make sure that the delivery of basic services is planned and integrated. At a specific date, various service agencies were to converge in a target barangay to deliver basic services. He called the agencies to a meeting and presented this proposal. The agency heads were initially hesitant because they thought it would require a huge budgetary allocation. Mayor Lugod assured them that concerned agencies will be using only their regular allocation and resources in the implementation of the G-TIDA and that the city government would provide for overhead expenses like gasoline, transportation and food subsidies for the participants.

3 ] 8 ManagingUrbanizationUndera DecentralizedGovernanceFramework Starting with two target barangays (Bal-ason and Hindangon) in December 1988, the program is now on its tenth year. Its goals are: 1. To bring the government closer to the people, and 2. To improve the delivery of frondine services to the people, especially in the hinterland barangays. The G-T1DA team Through the G-TIDA, the mayor instituted a systematic and integrated outreach program to rural barangays. He organized a GTIDA core group composed of the G-TIDA coordinator, G-TIDA Secretariat, transportation coordinator, logistics coordinator, and specific-service coordinators represented by the department heads of the concerned agencies. The group, which is headed by the mayor, is responsible for planning, identifying target barangays and implementing the G-TIDA program. BeJ_breany outreach activity, the G_TIDA sends a survey team to assess the needs of the identified barangay and set with the residents the date for the visit of the main team. After the assessment, all concerned agencies are called to a G-TIDA meeting, informing them of the problems and needs of the barangay. The whole G-TIDA machinery is then set into motion, bringing along all the necessary equipment and personnel to serve the target barangay. The food requirements of the team who will be staying in the barangay are served by the G-TIDA kitchen team. During the G-TIDA Day, members of the team meet directly with the people and their leaders to discuss the needs and problems of the barangay. If problems cannot be solved immediately, they are referred to the appropriate agency. The G-TIDA team informs the people about the functions and services provided by each agency in the city so the latter would know which to approach for their specific needs. On the average, about 80 government personnel are involved in G-TIDA activities. The main G-TIDA team consists mainly of the personnel from the City Mayor's Office, City Planning and Development Staff, City Agriculturist Office, City Health Office, City Population Office, City Engineer's Office, City Treasurer's Office, Assessor's Office, Local Civil Registrar, Provincial District Hospital, Department of Agriculture, Department of Social Welfare and

Case Study: Gingoog'sCity's Total Integrated DevelopmentApproach 3 ] 9 Development, a nongovernmental organization religious sector, and other line agencies.

representing

the

Services offered With Gingoog's integrated approach, the people in the barangays are provided with a variety of services. Topping this list are health and infrastructure support. Medical services include consultation, diagnostic tests, circumcision, tooth extraction, pre-natal care and counseling, family planning services and vaccinations, and provision of free medicines. Nutrition services are also provided like supplemental feeding of malnourished children and counseling of mothers. Infrastructure services consist mostly of road repairs such as grading, and filling up of potholes; street lighting; installation and repair of water facilities; and construction and repair of health and daycare centers and other structures. Other services provided include mass weddings, registration of births, and issuance of community/residence certificates, registration and issue Of certificate of ownership of large animals. Frequency of and budget for G-TIDA outreach activities The city conducts G-TIDA outreach activities once or twice a month. During the early implementation of the program, the G-TIDA team stays for two days and one night in the barangay. However, as requests for outreach activities increased, the conduct of G-TIDA outreach has been limited to about one day per barangay. The expenses incurred by the various agencies in providing services during G-TIDA outreach are taken from their regular agency budgets. No new appropriations are given except for the budget for overhead expenses like gasoline, transportation and food. In 1996, the city government allotted P189,400 for G-TIDA. Impact of the G-TIDA Program Improvement in people' "ces During their initial visits in remote barangays, the G-TIDA team found many people with untreated diseases as well as crude ways of treating an illness. Doctors got frustrated because many patients from the mountains allowed their diseases to worsen before they finally sought medical attention.

320

ManagingUrbanizationUndera DecentralizedGovernanceFramework

When the G-TIDA goes to the barangay, its medical team members provide preventive, curative and referral services. They teach the people proper health practices and disease prevention as well as provide medical and dental consultation and treatment. If patients require hospital confinement or longer medical attention, the G-TIDA team brings or refers them to the hospital. Through the G-TIDA, more people in the mountains came to know of the Gingoog District Hospital as a place where they could go for operations and other health services. Since 1988, a good proportion of the rural people have benefited from the program. For the period covering 1988-1991 alone, the C,TIDA has served a total of 17,034 persons, of which 70 percent (or 11,879 persons) availed of health services. It is only unfortunate that the program cannot be properly evaluated because of the absence of a program impact monitoring mechanism. The testimonies of some key informants, however, lauded the positive impacts of G-TIDA on the lives of the rural people. Eohancement _ .... " -The G-TIDA approach helped build the people's capalsilities _and participation in local governance. It fostered community planning and teamwork. During public consultations, people air their problems, views and ideas directly to the agencies and persons concerned. Their direct participation in solving their problems and the prioridzation of their needs improved their cooperation with the local officials in the implementation of their programs and projects. One decisionmaking example is between installing a water system or constructing a waiting shed or basketball court. As a result of meetings, the people came to realize that the installation of a safe water system is more important to their health. The system would help prevent diarrhea and other gastro-intestinal diseases brought by dirty water supply. Encouraged and guided by the G-TIDA team, people in some of the far-flung barangays were able to install water pipes connected to a spring using their local resources and relying on the bayanihan (mutual assistance and exchange of labor) system. Imlarovem_nt of the imag_ of the _overnmertt Particularly for the hinterland barangayswhere people feel only a minimal presence of the government, bringing the services directly to them can make them realize the government's existence. For some

Case Study: Gingoog'sCity'sTotal IntegratedDevelopmentApproach321 people perhaps, G-TIDA day is the only time they could consult medical practitioners. For others, it may be the only time in the year that their barangay roads are repaired and improved. /_ob/ems

encounterad

Noncooperation of some local leaders There have been instances wherein barangay captains hindered the implementation of community development projects because these activities did not benefit them personally. For example, a barangay captain blocked the opening of the Botika sa Barangay (village pharmacy) because his daughter was not chosen as the storekeeper. There was also the case of a barangay captain who did not cooperate in the installation of a water facility because this would lessen his chances of being re-elected. Although these may be isolated incidents, they still point out the need to involve not only the barangay leaders but all people in the community in selecting and implementing barangay projects. People's attitude Some local residents avail of free medicines by pretending to be sick and then stock the medicines for possible future use. This proves to be a problem as the stock could be used by people for the wrong ailment. Or the medicines may be taken by individuals even beyond their expiration dates. The people should therefore be informed of the dangers of self-medication and expired medicines. Limited resources The concerned agencies can only provide limited services to a barangay because the expenses for G-TIDA outreach are supported by their regular funds only. The most common complaint is the inadequate supply of medicines distributed during the outreach day. In some instances, when a team is unable to provide certain medicines, it could only give out prescriptions slips to the patients. Scheduling of outreach activities Although the G-TIDA secretariat prepares a schedule for outreach activities, the conduct of a G-TIDA outreach is mosdy onrequest basis. Therefore, the barangays that file the most number of requests get most of the G-TIDA services.

322

ManagingUrbanizationUndera DecentralizedGovernanceFramework

The G-TIDA secretariat plans at least two outreach activities per month but the actual conduct greatly depends on the availability of resources, the urgency of requests and the availability of personnel. if G-TIDA strictly follows its twice-a-month schedule, only 24 barangays can be covered within one year. Considering that the city has 50 rural barangays, it will take two years to make a complete round. (G-TIDA is aimed at rural barangays that are far from city health facilities.) Ten years since the initial implementation, some barangays (from the coastal areas) have been visited by the G-TIDA Team two to three times only. Very limited time for _mXr_e_ The G-TIDA team used to stay for two to three days in the target barangay. At present, outreach activities are carried out at an average of one day per barangay. With this very limited time, the delivery of services, specifically those pertaining to infrastructure, are often left uncompleted. In one case, a barangay complained that the one-day availability of dump trucks and other equipment was not sufficient to finish the road repairs (filling up of potholes and road grading) they requested. Lack_og_impacLmo_it oring mechanism Evaluating the impact of the program is difficult due to the lack, if not the total absence, of area-specific data such as the number of people served, the impact on health status (e.g., reductions in mortality and morbidity), and many other important information. The program should therefore include a mechanism for monitoring and evaluating its impact. Key Elements for Success The sustained and successful implementation of the GoTIDA program for nearly 10 years may be attributed to the following: Leadership of the city chief executive The G-TIDA was born out of the insistence

of the local chief

executive to bring the services directly to the people. It was the mayor who proposed a planned, integrated outreach program to rural barangays, convinced the concerned agencies of its viability, and organized the G-TIDA team. The outreach program then became a

Case Study: Gingoog's City's Total Integrated DevelopmentApproach 323 regular activity as the local chief executive continues and allocate funds for its overhead expenses.

to support

Orgunized setup The creation of a G-TIDA Secretariat to oversee the activities and the assignment of specific tasks to agencies and personnel facilitated the mobilization of people and resources and sustained the G-TIDA activities. Cooperation of the bara_y officials Barangay officials play crucial roles in the scheduling of the GTIDA outreach and its actual implementation. Although the G-TIDA Secretariat prepares a calendar of activities, it admitted that the calendar is often not followed and the actual conduct of the "outreach day" is dependent on the barangay officials' requests. The barangay officials are the ones responsible for gathering the people together and organizing them to provide the manpower and do project followup activities that may be required. The Loca/Government

Code

Although the G-TIDA started before the devolution, the full implementation of the Local Government Code contributed to its successful implementation. With the city executive's direct control over all the service departments, coordination in the delivery of services is facilitated. Areas for Improvement Clustering of service areas It may be advantageous if outreach services will be provided simultaneously to a cluster of two to three adjacent barangays. The service teams may be assigned to a specific barangay but move freely into the other barangays within the cluster as soon as they have completed servicing a certain area. This will lessen the logistical requirement of the team such as food and transportation and maximize the number of barangays served per outreach schedule. Strengthening people "s participation As the G-TIDA outreach service is practically a one-shot approach, there is a need to follow it up to sustain its benefits as well

324

ManagingUrbanizationUndera DecentralizedGovernanceFramework

as complete the components that cannot be finished during the GTIDA Day. Support in the institutionalization of programs as well as in strengthening supportive people's organizations may be necessary. Minimizing dolocmt approaches Although many of the services offered during the G-TIDA are welfare services, there may be a need to institute cost-recovery measures so as not to unwittingly cultivate the dole-out mentality among the barangay people. Unless all the people in the barangay e indigents, it may be helpful if certain forms of payments will be ,llected for the services, materials, and supplies being provided. inimal fees can be charged and then turned over to the local organizations that will sustain or pursue the completion of programs or projects initiated during the G-TIDA outreach. Setting up of an impact monitoring system To filly appreciate the benefits of the program, an impact evaluation system is needed. It is necessary to gather and process data that would allow analysis of the impacts of the projects instituted, such as monitoring the decrease in the occurrence of diarrhea and skin diseases after the installation Of a community water system. Applicability and Replication The G-TIDA was conceived at a time when only a few of the rural barangays have health stations. Although the G-TIDA consisted of all the services available, delivery of health services was the main concern especially in areas without any BHS. Presently, all the 50 rural barangays have BHSs manned by at least a barangay health midwife and volunteer health workers (i.e., the barangay health workers and barangay nutrition scholars). On the other hand, because of their proximity and greater access to the hospitals and the main health centerin the city, the urban barangays are not provided with BHSs. Except for the services of BHS in the rural areas, there is only little, if none at all, of the other services that could be directly accessed by the people at the barangay level. The G-TIDA approach can easily be adopted by other local government units (LGUs), especially those that have not yet fully provided their barangays with BHSs. They can conduct outreach activities to unserved barangays while working toward setting up the BHSs. To undertake an integrated, planned and coordinated outreach

Case Study:Gingoog'sCity'sTotal IntegratedDevelopmentApproach 325 program like that following:

of Gingoog

City, local officials

could

do the

1.Call a meeting with department heads to present the proposal, get their cooperation and involve them in planning. 2.Form an outreach team, select the people and specify their dudes and responsibilities. The team may be composed of an overall coordinator and specific coordinators (such as for transportation, logistics, food, medicines and other supplies), the department heads, and a representative from nongovernment organizations. 3. Organize a survey unit within the outreach team. The survey unit will be responsible for scheduling the barangays to be visited, undertaking a survey and assessment of the needs of the chosen barangay, setting the outreach date with the people, and identifying the agencies which should participate in the outreach activities. 4. Based on the report of the survey unit, the coordinator could mobilize the persons involved to prepare the activities, transportation, food, medicines and other supplies that should be brought to the barang-ay. 5.The outreach team could stay for two or three days in the barangay, discuss with the people the problems and solutions, attend to the people's needs, and conduct health education and other information dissemination activities. The team should keep a database of the services rendered, the number of people served, and health indicators in the barangay for monitoring and evaluation purposes. 6.To sustain health activities after the departure of the outreach team, particularly in barangays without health stations, the city health office could train residents to serve as barangay health workers and nutrition scholars as well as organize people's groups to promote proper health care. The barangays could pro#de allowance to the BHWs and BNSs, depending on their financial capability. Conclusion In the final analysis, an outreach method of delivering health services is useful as an interim or temporary measure for coping with

326

ManagingUrbanizationUndera DecentralizedGovernanceFramework

the problem of insufficient BHSs. People benefit from the curative and preventive health services provided during an outreach visit but this is sporadic or nonregular. They should have continuing access to health services. To make this possible, the long-term strategy is the provision of additional health stations and health workers to reach all barangays. References Herrin, A. 1998. Beyond 2000: An Assessment of the Health, Nutrition and Education Sectors, 1992-1996. Makati City: Philippine Institute _br Development Studies. Unpublished. Quieta, R. 1994. Health Strategies and Intervention: Extended Case Studies on Good Health Care Management in the Philippines. Department of Health (DOH) - Health and Management Information System (HAMIS) Occasional Paper No. 9. Manila:DOH-HAMIS.

Case

Study

Puerto Princesa City's, Satellite Clinics: A Curative Rural Network Virginia S. Pineda

uerto Princesa City is the capit_ 1 of the province of Palawan and the largest city in the country. With a total land area of 2,106.7 square kilometers, Puert a Princesa accounts for about 17 percent of the total land area of P_;twan. The city is composed of 66 barangays, 24 of which are urban a nd 42 are rural. It has about 25,542 households as of 1995. The city's population increased fi om 92,147 in 1990 to 129,577 in i 995 or by 41 percent. About 65 perq :ent of the population resides in the rural barangays. Settlement ._reas in the city are highly dispersed. Population concentration i_ densest in the eastern coast, where the city proper is located. Rural barangays are scattered over the length of the city's coastline, with undeveloped tracts of lands separating the eastern from the western barangays. Five rural barangays in the west coast arca are almost blocked off by rugged mountains and thick forest. Two of thes e barangays are not yet linked to the city's road network system (Puerto Princesa City Local Government Performance Report 1994i). Health Facilities and Expenditure/]$udget The city has one main heath cent :r, 18 barangay health stations (BHSs), three hospitals, and five satellite clinics. The hospitals have a total capacity of 175 beds: 75 in the go ternment hospital, the Puerto Princesa Provincial Hospital, and 50 ea_:h in the two private hospitals. Each satellite clinic has a capacity of fc ur to five beds. The hospitals and satellite clinics serve patients fror _ the city as well as from the neighboring municipalities of Palawan.

328

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Prior to the devolution of functions in 1991, the city government's expenditures on health amounted to P6.5 million, mostly for basic health services. This constituted 7.5 percent of the city's total expenditures. After the devolution, the city's health expenditures increased to P20.1 million in 1994 but its proportion to the city's total expenditures decreased to 5 percent. Basic health expenditures also declined to 74 percent of the total health expenditures with the establishment of satellite clinics that provide medical services. In 1995-1997, the budget for the city health office (CHO) and the satellite clinics accounted for an average of 4.4 percent of the total city budget. Table 1 shows the respective amounts. Health Performance Under the city's comprehensive health care program, both preventive and curative services are provided to the people. The CHO focuses on primary health care. Its barangay health workers implement the following programs: expanded program on immunization, maternal and child care, tuberculosis (TB) control, family planning, nutrition, diarrheal disease control, environmental sanitation, malaria control, and laboratory services. If patients need curative care, the barangay health workers refer them to the satellite clinics. Such health programs helped reduce mortality and malnutrition rates as indicated in Table 2. The city's infant and child mortality rates are lower but its maternal mortality rates are higher than the average for the Philippines in both 1990 and 1995. Nevertheless, the reduction in Puerto Princesa's maternal mortality rates (38 per 100,000 livebirths) was slightly greater than that for the Philippines (29 per 100,000 livebirths). The percentage of malnourished children in the city also declined from 66 percent in 1991 to 34 percent in 1995.

Table 1. Budget for the CHO and Satellite Cli.ics, 1995-1997 (P million) Share in Total Year 1995 1996 1997 Source:

Puerto

City Health Office 14.2 17:_ 20.9 Princesa

City Planning

Satellite Clinics 5.8 7.8 6.2 and Development

Total 20.0 22.1 27.1 Office.

City Budget 4.0 4.6 4.7

(%)

Case Study:PuertoPrincesa'sSatelliteClinics

32 9

Table2. Mortality andNutrition Indicators, 1990and 1995 1990" __.___or

Princesa Mortality Rates: Infant Child Maternal

Percentage of Malnourished Children (083 months old) Mild Moderate Severe Total * Malnutrition

1995

_rto

Puerto Philippines

Princesa

Philippines

52.7 71.8 253.1

56.7 79.6 209.0

44.8 61.2 215.1

48.9 66.8 179.7

48.4 16.6 1.2 66.2

41.3 14.2 2.1 57.6

25.6 7.4 0.9 33.9

30.7 8.4 1.2 40.3

data arc for 1991.

Infant mortality: infant deaths per 1,000 live births. Child mortality: number of deaths among children less than 5 years of age per 1,000 children of the same age range. Maternal mortality: number of maternal death_ per 100,000 live births_ Sources: Herrin, A. "Beyond 2000: An Assessment of the Health, Nutrition and Education Sectors, 1992-1996," 1998 (Unpublished PIDS Paper); National Statistical Coordination Board; Department of Health (DOI-I) Nutrition Service.

The Satellite Clinics Projets During the 1992 elections, the then-mayoralty candidate Edward Hagedorn was on his way to Barangay Napsan. In one desolate area, he saw a small group of people waiting for transport. On his way back, he saw the same group crying. He learned that a family member died while waiting for transport to bring them to the hospital. He vowed to remedy this situation if elected. The satellite clinic project is the fulfillment of Mayor Hagedorn's promise. Its objectives are: 1.To provide rural residents access to medical attention medicines; 2.To reduce the mortality rate in the rural areas; and 3. To reduce unnecessary suffering due to illness.

and

The first satellite clinic was opened on 2 January 1993. At present, the city has five such clinics strategically located to serve farflung rural barangays with no access to health services. Napsan covers the southwest barangays; Cabayugan, the northwest end; San Rafael,

Case Study:Puerto Princesa'sSatellite Clinics

33]

Office of the City Planning and Development Coordinator. Occasionally, the mayor also visits the satellite clinics. Impact of the Project Before the satellite clinics program was implemented, it used to fie difficult for the barangay people to get medical services. This is because minimum transport time from the nearest barangay to the city proper, where most of the health facilities are located, is one hour. Also, the roads are rough and transport to and from a barangay averages twice per day. Under these conditions, many people did not seek medical attention, resorted to quack medication, or consulted a doctor only when their illness had worsened. Others died without any medical treatment or while waiting for transport to the hospital. The satellite clinics gave the barangay people greater access to curative services. They handle emergency cases aside from simple illnesses. For more serious and complicated cases, the clinics are equipped with ambulances to bring the patients to hospitals. Thus, they serve as vital link to the city's referral system. With the satellite clinics, emergency cases increased while the number of hospital patients with simple illnesses declined. From 1993 to 997, the clinics served an average of 47,000 padents per year. Table 4 shows the types of services rendered for 1993-1995. Most of the cases attended to were respiratory infections and other simple illnesses. Without the satellite clinics, these patients would have proceeded to hospitals or not have received medical treatment at all. By their existence, the satellite clinics enabled the early treatment of diseases and decreased the number of padents going to

Table

4. Satellite

Clinics'

Services

1993

Consultation Confined Transport Delivery Medical examination Tooth extraction Others (pre-natal, family planning, urine exam) Total Source:

Puerto

Princesa

and Number

City Planning

of Patients

Served

Number of patienLs served 1994

1995

43,360 1,582 400 76 1O0 724

37,619 898 363 876 15 1,254

46,242

169 49,744

43,665 890 338 36 590

45,519 and Development

Office.

332

ManagingUrbanizationUndera DecentralizedGovernanceFramework

hospitals. They also saved people on time and transportation cost. (The reported cost of transporting a patient to and from the city proper [special trip] was about P1,000.)

Key Elements

for Success

Leadership Realizing the need for health facilities that could handle emergency cases and transport patients to hospitals when necessary, Mayor Hagedorn acted promptly to meet this requirement. He pushed for the satellite clinics project immediately after his election. The project is currently being implemented under the city mayor's office. Fl_ble hiring policy Due to its financial constraint, the city could not hire doctors on a regular or permanent basis. Moreover, there was also a shortage of doctors. To overcome these problems, the city hired doctors on a contractual and part-time basis. Availability of facilltie_ and medical personnel The barangay people's access to health services has been limited due to travelling inconveniences (rough roads) and the length of time to reach health facilities in the city. The provision of satellite clinics, ambulances, doctors and other health personnel in strategic locations brought health services nearer to the barangay people and enabled the latter to avail of these services. Strategies

That Can Be Replicated

Prm, ision of curative services in the barangrtys Usually manned by midwives, the BHSs focus on health care. The satellite clinics augment the BHS health providing doctors and curative care. Since patients can the satellite clinic in their area directly, these clinics hospitals of additional workload. They also save transportation expenses for the barangay people.

preventive services by proceed to relieve the time and

Case Study: Puerto Princesa's Satellite Clinics

33 3

Hiring of doctors on contractual and part-time basis The doctors in the satellite clinics are hired on a contractual and part-time basis. Each doctor stays for two days per week in the satellite clinic assigned to him. For the rest of the week, he is free to work in hospitals or engage in private practice. The city government pays each doctor a monthly salary of P10,000. Synchronized scheduling of doctors The schedule of the doctors in the satellite

clinics

are

synchronized to maximize their availability. For example, in one satellite clinic, a doctor is scheduled on Monday and Tuesday. In the other nearest satellite clinic, another doctor's schedule is Thursday and Friday. This way, during days when the doctor assigned to a satellite clinic is not scheduled to come, the patient can go to another satellite clinic and avail of another doctor's services. Use of radio communication equipment In the absence of telephones, the satellite clinics use radio communication equipment. Each barangay and tribal community is also provided with hand-held radio (VHF transceivers). Emergencies are reported to the barangay chairman, who calls the nearest satellite clinic for an ambulance and health personnel. If patients require hospitalization, radios enable the satellite clinic to make an adwance call to the receiving hospital. This gives the hospital time to prepare and have a team of medical personnel ready for the patient coming from the rural barangay. Provision of an ambulance in the rural barang_ During emergencies, time is of utmost importance. Given that a few minutes or even seconds of delay could cost a person's life, an ambulance in each satellite clinic guarantees a ready response to â&#x20AC;˘emergency cases. Other cities can follow Puerto Princesa's example of providing doctors and curative services in strategically located barangays, ff they can afford it, cities can also put up satellite clinics. Puerto Princesa's San Ratael Satellite Clinic, which was completed in 1996, was built at a cost of P999,996. To save on construction expenses, other cities can make use of their existing BHSs and just provide for doctors' services.

Puerto Princesa's Satellite Clinics

3 35

the same symptoms as other diseases/infections is urinary tract infection or UTI.) A medical technologist is therefore needed in the satellite clinics so that the doctors can prescribe the exact medicines. The satellite clinics program is monitored and evaluated based on the monthly reports submitted by each clinic. To further strengthen this method, periodic meetings (e.g., every quarter) among the doctors, coordinator, mayor, and maybe a people's representative, are recommended. The meetings would allow interaction among the program participants and provide the venue for sharing experiences, problems, and solutions. Conclusion Satellite clinics were established to fulfill one mayor's commitment to give people residing in remote barangays immediate access to medical services. Simple illnesses are treated in satellite clinics while serious cases are brought to the hospitals. This proved to be a good system and promoted the efficient use of health facilities and resources. Being knowledgeable about their city's condition, Puerto Princesa's leaders were able to devise creative ways of dealing with deficiencies, such as the use of radio communication equipment to overcome the lack of telephone facilities, and the employment of part-time doctors to cope with financial constraints and shortage of physicians. With its satellite clinics, Puerto Princesa City is one local government unit that has displayed innovativeness mad responsiveness to people's health needs tinder the devolution process. It has shown that the delivery of health services could improve, rather than deteriorate, under decentralization, as local leaders are in a better position to determine and resolve the situation in their area, and the problems and needs of their constituents.

C_e

Study

EmergencyRescueNaga: An LGU-ManagedEmergency RescueProject Virginia S. Pineda and Rosemarie O. Buan aga City is located at the center of Camarines Sur, the biggest province in the Bicol Region. It is about 377 kilometers south of Manila and approximately 100 kilometers north of Legaspi City. It is bounded on the north by the municipalities of Canaman and Magarao, on the east by Mr. Isarog and the Municipality of Pili, the capital town of Camarines Sur, on the south by the Municipality of Milaor, and on the west by the Municipality of Camaligan. The city has a total land area of 77.5 square kilometers. It is composed of 27 barangays, of which 21 are classified as urban and six as rural. As of 1995, it has about 23,632 households. Naga City's population is placed at 115,329 persons in 1990. By 1995, it has grown to 126,972 persons or by about 10 percent (National Statistics Office Census). Likewise, population density per square kilometer increased from 1,488 in 1990 to 1,638 in 1995. Of the total population in 1995, 84 percent live in urban areas and 16 percent in rural areas. Health Facilities, Welfare and Expenditures Naga City has five health centers and five barangay health stations (BHSs), with an average of five to eight barangays as catchment areas. It has two government hospitals, and four private hospitals with a combined capacity of 223 beds. One of the government hospitals is the Naga City Hospital, which has a capacity of 16 beds. The other is a regional hospital, the Bicol Medical Center, which has a capacity of 250 beds. It serves not only patients from Naga City but those from neighboring provinces as well. Health indicators show an improvement in health conditions in Naga City. Infant, child, and maternal mortality rates declined from 1990 to 1995 and were even lower than the national averages for the same years (Table 1).

338

ManagingUrbanizationUndera DecentralizedGovernanceFramew.Erk

On nutrition, the percentage of malnourished preschoolers, although higher than the national average, also dropped substantially from 72 percent in 1990 to 59 percent in 1995. Such decrease can be attributed to the intensified nutrition-related activities in the city. These activities include food assistance, nutrition education, micronutrient supplementation and deworming. These trends manifest an improved implementation of preventive and curative measures and better manpower and facilities. Bicol Medical Center, for instance, has 87 physicians, 28 nurses and other medical personnel. At the local level, the city has one physician, five nurses, 175 barangay health workers (BHWs) and 120 trained birth attendants. There remains, however, a need for additional health manpower to serve the population. In 1991, prior to devolution of functions, the city's expenditures on health was P3.6 million, which was 7 percent of its total expenditures. Of this amount, 48 percent was spent on basic health and 51 percent on the city hospital. In 1994, after devolution, the city's health expenditures increased to P10.5 million but its ratio to total expenditures slightly declined to 6 percent. Likewise, the proportion of basic health expenditures decreased to 41 percent while hospital expenditures rose to 59 percent. In 1995, the share of health expenditures in the city's total expenditures increased to 8 percent. Of the 13.6 million health expenditures, 42 percent went to basic health while 58 percent went to the city hospital. Emergency Rescue Naga (ERN) Emergency Rescue Naga (ERN) is the city's emergency rescue service initiated by the government in 1991 to immediately respond to disasters and accidents. Its average response time is 3-5 minutes within the city proper and 30 minutes for the farthest mountain barangays some 17 kilometers away. it follows an action plan drawn up by the City Disaster Control Center. Since Naga City is located along the typhoon belt, it is prone to tropical storms and typhoons throughout the year. It is also deemed vulnerable to floods, earthquakes, fire and other calamities. Before the creation of the ERN unit, emergency medical assistance to residents of the 27 barangays was seldom given, especially at night when transportation to distant barangays was scarce. This contributed to the high mortality and morbidity rates in these areas.

Case Study: Emergency Rescue Naga

339

Table 1. Mortality and Nutrition Indicators, 1990 and 1995 1990 Indicator

Naga City

Mortality Rates: Infant Child Maternal Percentage of Malnourished Children (0-83 months old) Mild Moderate Severe Total

1995 Philippines

Naga City

Phih'pplnes

49.5 66.6 150.7

56.7 79.6 209.0

42.2 56.2 128.1

48.9 56.8 179.7

45_3 23.7 2.7 71.7

41.3 15.5 2.3 59.1

36.2 21.1 1.8 59.1

30.7 8.4 1.2 40.3

Infant mortality: infant deaths per 1,505 live births. Child mortality: number of deaths among children less than 5 years of age per 1,000 children of the same age range. Maternal mortality: number of maternal deaths per 100,000 live births. Sources: Herrin, A. "Beyond 2000: An Assessment of the Health, Nutrition, and Education Sectors, 1992-1995," 1998. Unpublished PIDS paper; National Statistical Coordination Board; Naga City Nutrition Office; DOH Nutrition Service.

The ERN was therefore live." Its objectives are:

created

"to serve so that others may

1.To minimize mortality and morbidity in cases of natural and manmade disasters, and 2.To establish protective measures at the earliest possible time to mitigate damages to lives and properties. ERN Structure, Functions and Responsibilities Housed at the LGU-owned Nagra City Hospital, the ERN Unit staffis directly under the supervision of the Chief of Hospital (Figure 1). Its core staff includes one paramedic personnel, a driver, and volunteers. Regular hospital staff, numbering 40, are on call. Aside from the medical personnel/paramedics, ERN also has 400 trained first responders and emergency medical technician volunteers who serve without pay because the ERN is for a _ood cause.

340

nizationUndera DecentralizedGovernanceFramework

Figure 1. Organizational Structure of the Emergency

Chiefof Hospital

Rescue Naga l

Emergency Rescue] "

Naga

_-'-

Unit Transport

1 Services

Services

concerned local officials, the role of the evacuation action plans that will be implemented. ERN has the following mandated fianctions:

Services

centers, and the

1. Training of volunteers as First Responders and Emergency Medical Technicians, as well as training in conducting Water Rescue and Survival; 2. Advising the city mayor on rescue operations and evacuation plans and options prior to the expected disaster; 3. Coordinating with the City Engineer's Office (CEO), Bureau of Fire Protection (BFP), Philippine National Police (PNP), City Social Welfare and Development Office (CSWDO), and Office of the City Mayor on all disaster operations; 4. Coordinating with the Camarines Sur Medical Society; and 5. Checking "allmedical emergency kits of BHS as well as vehicle and equipment to be used in emergency situation. ERNs' standard operating procedures for emergency and rescue The usual procedure isto ask for the patient's name, address and case once a call is received. An ambulance is sent to the patient with the assigned personnel taking note of the patient's vital signs, providing eme,gency treatment, assessing the patient's condition and transporting him to the nearest or desired hospital. Vohmteers are notified, in cases of big operations, through their beepers and handheld radios.

Case Study: EmergencyRescueNaga

34]

ERN's notable accompllshnwnts In 1994, ERN earned the Galing Pook Award as one of the country's 20 most outstanding local government programs. In 1995, it won the National Disaster Coordinating Council's Recognition Award as Bicol's and the country's best institutional outfit on disaster preparedness and mitigation. Among its notable achievements are: 1.Rescue operations of stranded mountaineers in Mt. Isarog; 2.Rescue operations of residents trapped by floodwater at the height of super typhoons Monang and Rosing; 3.Rescue operation for a barangay during a tornado; 4.Transfer of patients across the Bicol River after the collapse of the Mabulo Bridge in Naga City; 5. Medical assistance during the PalarongPambansa held in Bicol in April 1997; and 6. Conduct of regular trainings on Disaster Preparedness and Management to ERN volunteers, civic and religious groups. Supporters of the project take note of ERN's quick response to an average of 6.2 emergency calls pe r day in 1996 from only a third of this total in 1991. For 1996, the ERN responded to a total of 2,259 emergency and transport cases. Prob/ems encountered The ERN problems relate to inadequate facilities such as lack of training area for emergency medical technicians and storage room for supplies. To address these needs, additional funding will be obtained from the city government. The ERN also receives prank calls. The ambulance crew finds out when they go to the location specified that no accident or emergency actually took place. False calls may be discouraged by asking for the telephone number and calling the same number after a few moments to check if it really exists. Calls may also be coursed through the barangay captains or BHWs who can confirm the need for emergency and transport assistance. The city could also disseminate more information to instill proper regard for ERN and devise ways to catch prank callers and penalize them. Except for occasions or events when volunteers are enjoined to assist, the ERN stafffinds it difficult to gather most of the volunteers.

342

ManagingUrbanizationUndera DecentralizedGovernanceFramework

TO solve this problem, the ERN Volunteers Group has drawn up a program of activities meant to sustain active membership. Key Elements

for Success

Spirit of volunteerism The ERN's noble cause and the recruiters'

motivation

draw in

more volunteers. A clear indication of popular support for the ERN is its 400 volunteers consisting of students and youth, nurses and other medical personnel. This means substantial manpower supply at minimal cost since the city does not give compensation to volunteers. It only provides them food (while on duty), uniform and group insurance. ERN volunteers have also organized themselves. They have their own set of officers who draw up a program of activities to sustain membership and who conduct training sessions. Capability-building Under the leadership of the chief of the Naga City Hospital, Dr. Vito Borja, the ERN staff and volunteers were trained on areas such as Emergency Case Management, First Aid, and Disaster Management Workshop for Water Rescue. Informal trainings actually took off from the initiative of a vacationing overseas contract worker who volunteered to conduct emergency management trainings for the ERN staff. These were followed up by Dr. Borja, who has been trained on Rescue 911 's Operation Medical Technician Course. News of such trainings spread to other municipalities and various groups, which in turn volunteered to be trained by ERN. These groups included government and private organizations, the Bureau of Fire Protection (BFP), Philippine National Police (PNP), BAYANTEL, youth associations, people from the mass media (CARE), and ambulance staffand medical personnel from neighboring municipalities. A total of 827 individuals have been reportedly trained. Administrative mobilization by the City Government of Naga The ERN is the fulfillment of Mayor Jesse M. Robredo's vision of having Naga's own emergency rescue services. It became operational as funds were allocated for its operation. The ERN group also persisted despite the limited resources at the start.

Case Study: Emergency Rescue Naga

343

At present, the ERN has spawned the Metro Naga Emergency Rescue Network, with the institutionalization of a partnership among the rescue and disaster services of Naga City and its neighboring municipalities. Hence, municipalities under Metro Naga share their ambulances, fire trucks, and other facilities.

supportfrom other o,izaions (N6Os)

ent/t/esand nong

The ERN enjoys the support of other government entities such as the PNP, BFP, City Disaster Coordinating Council (CDCC), Camarines Sur II Electric Cooperative (CASURECO II), Metro Naga Water District, CSWD and CEO, At the barangay level, ERN also has the support of the B_trangay Emergency Disaster Brigade. NGOs and service organizations, civic organizations, and business establishments also offer services in kind or cash during rescue operations and big events through the ERN.

Effectivewnmmnica6onchannelsand networking The ERN has two telephone hodines. Bayantel's 168 and Digitel's 169. These are complemented by two VHF controls (148.5 and 147.90). Volunteers are equipped with beepers. Calls to ERN come not only from Naga City but also from neighboring municipalities owing to ERN's lead role (as a control center) in the Metro Naga Emergency Rescue Network. Within Metro Naga, an extensive radio network was set up linking all offices of the mayor, the ambulances, and the police and fire stations. Handheld radios were also distributed to key personnel of each LGU. Of the 15 LGUs comprising Metro Naga, only four have fire protection bureaus and five have ambulances. Therefore, making the ERN metrowide enabled sharing of these limited facilities and magnified their benefits. Applicability and Replication The ERN is applicable to cities that are prone to disasters and accidents and where emergency rescue and medical assistance are lacking or inadequate. It facilitates health service delivery and serves as referral of patients to hospitals. More importandy, it saves lives and stops or minimizes deterioration of patients' condition. Any city intending to have its own emergency rescue and medical services can follow Naga City's example, as discussed in the following subsections:

344

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Facili_ Just like Naga, other cities can start even with one ambulance. They may be able to request a unit fi_om donor agencies such as the Philippine Charity Sweepstakes Office (PCSO) or the Philippine Amusement and Gaming Corporation (PAGCOR). One or more telephone hodines may be used for emergency calls. These can be supplemented by VHF radios distributed to key LGU officials and to police and fire stations involved as participating partners. Beepers may be supplied by the city or by the volunteers themselves. Volunteers and trainings Cities would need recruiters who can present emergency and rescue services as worthy undertaking as well as inspire volunteerism among the people. Initially, they may request Naga's assistance in training recruiters and volunteers. They may also ask help from the Emergency Rescue Unit Foundation (Philippines) Inc. or ERUE an NGO based in Cebu City. This organization is willing to share its experiences in planning and running an emergency rescue program to interested LGUs and NGOs. Guidelines on disaster preparedness, and rehabilitation

management

To ensure orderly implementation of activities on disaster preparedness, management and rehabilitation, other cities could prepare guidelines specifying the duties and responsibilities of the concerned local officials, the evacuation centers, and the action plans that will be implemented during emergencies or disasters. They may also adopt the guidelines of Naga City, modifying such accordingly to suit their own conditions and facilities. Naga City provides free emergency rescue and medical services to the people but such services have costs. For 1997, it spent P150,000 for the ERN. To recover costs, even partially, Naga and other cities could charge service fee to persons servedwho can afford to pay. They can also generate funds by conducting trainings and seminars to organizations for a fee. Financing from such sources may enable the cities to increase and improve their emergency facilities and services.

Case Study: Emergency Rescue Naga

345

Conclusion Frorh a mere vision, the ERN has become a reality as a result of the city leaders' and health personnel's drive to proceed with the project even with very limited resources, together with the people's readiness to give voluntary services for a worthy cause. Following Naga City's example, other cities can also provide emergency rescue services to their constituents. The ERN is a good model not only _br cities but for metropolitan arrangements as well. Just like in Metro Naga, other metropolitan arrangements can also pool their resources and jointly provide emergency rescue services on a metro-wide basis so as to extend the benefits to more people.

348

ManagingUrbanizationUnder a DecentralizedGovernanceFramework

expenditures dropped to 6 percent. Since the city does not own a hospital, its health expenditures are mainly on basic health. Surigao City's budget for the CHO was P10.4 million in 1995, P10 million in 1996, and P10.9 million in 1997. The city health budget constituted about 5 percent of the total city budget. Health

Performance

From 1990 to 1995, Surigao City's infant mortality rate declined â&#x20AC;˘44.3 to 36.3 while child mortality rate dropped from 61.8 to 50.8 le 1). These were lower than the national average for the same years. In contrast, the city's maternal mortality rates were higher than the average for the country. However, the reduction in maternal mortality rates in Surigao City (42.8) was greater than that for the whole Philippines (29.3) between 1990 and 1995. In 1990, Surigao's malnutrition rate at 69 percent was higher than the national average of 59 percent. It fell significantly to 38 percent in â&#x20AC;˘1995, which was even lower than the average of 40 percent for the whole Philippines. Table 1. Mortalityand Nutrition Indicators, 1990 and 1995 .1990 Indicator

Mortality Rates: Infant Child Maternal

Percentage of Malnourished Children (0-83 months old) Mild Moderate Severe Total

Surigao City

1995

Philippines

Surigao City

Philippines

44.B 61.8 237.7

56.7 79.6 209.0

36.3 50.8 194.9

48.9 66.8 179.7

47.0 19.2 3.1 69.3

41.3 15.5 2.B 59.1

29.9 7.1 0.9 37.9

30.7 8.4 1.2 40.3

infant mortality: infant deaths per 1,000 live births. 3hild mortality: number of deaths among children less than 5 years of age per ] ,000 children )f the same age range. Vlaternal mortality: number of maternal deaths per 100,000 live births. _ottrces: Herrin (1998); National Statistical Coordination Department of Health Nutrition Service.

Board: Surigao

City Health

Office;

Case Study:SurigaoCity'sPHC FederatedWomen's Club

349

The PHC-City Government Partnership 1 Health service delivery has always been a challenge to the city because of limited resources. For example, in 1987, it only has 16 BHSs and four hospitals. Considering the city population of 94,453 persons at that time, the ratio of health facilities is one BHS for 5,903 persons. While the hospitals are physically situated in Surigao City, they also served areas outside the city. Another problem with health service delivery is the inaccessibility of some barangays. Thirty-two barangays are in the mainland while 22 are island-barangays separated from the mainland by the Surigao Strait. There are barangays that are inaccessible during the typhoon months from November to January and are difficult to reach by public transportation. To overcome the constraints to efficient health service delivery, Surigao City put into practice the Department of Health's vision of placing health in the hands of the people. It mobilized mothers, and later, whole families in health care service and delivery. This was made possible through the Primary Health Care (PHC) Women's Club, a people's organization initiated by a CHO midwife. The PHC's stated objective is to develop skills among mothers, their families and other individuals in the community and enable them to achieve an acceptable level of health and well-being in a selfreliant way. With membership covering all the barangays, the PHC enabled delivery of health care services even in the socially and geographically disadvantaged areas of the city. The Primary Health Care Women's Club The PHC began in 1986 in Barangay Taft as a project of Mrs. Zenaida Arana, the midwife assigned to the barangay. Mrs. Arana's workload was heavy since aside from being in-charge of Barangay Taft's population of more than 18,000 persons, she was also assigned to Barangays Washington and San Juan. Realizing the difficulty of delivering health services to three barangays without assistance, she turned to mothers. Initially, several mothers helped in scheduling the children or bringing them to the center for immunization. The opportunity to serve their community inspired them to move on to

Information ,from

a paper

and data on the PHC were sourced by Asis (1994).

from interviews

with its members

and

350

ManagingUrbanizationUndera DecentralizedGovernanceFramework

other tasks. Mrs. Arana trained this core group reached out to other mothers in Barangay Taft and barangays. She conducted three-day seminars on related matters and formed the PHC Women's

of volunteers and her other assigned health and healthClub. Those who

completed the seminar became members of the Organization. Given definite roles in the program, the members gained a sense of responsibility and became committed to support and promote health in the communities. The CHO noticed Mrs. Arana's work in Barangay Taft. At the same time, it also realized the need to strengthen the primary health care strategy by implementing it on a large scale. Hence, in 1988, it established a PHC office in the City and appointed Mrs. Arana as PHC coordinator. Her task was to launch similar clubs in the city. In 1991, the PHC was registered with the Securities and Exchange Commission (SEC) so it can have legal personality. The CHO adapted and expanded the program all over the city. It provides the training package and resource persons for PHC classes. Classes cover family life, the roles of men and women in the home and in the community, responsible parenthood, nutrition, sanitation, and topics related to primary health care. Some of the participants can eventually become barangay health workers or barangay nutrition scholars. Upon completing the course, participants form a PHC chapter and elect a set of officers. The PHC has mobilized all family members in working for health and other programs in the community. It gave rise to other organizations, namely, the Barangay Environmental and Sanitation Implementation Group or BESIG for the menfolk in 1989, the PHC Youth (12-21 years old), and the Mini-Youth (7-12 years old) in 19901991. From 300 mothers in 1986, the PHC and its offspring organizations' membership has grown to over 12,000 members in 1996, representing about 63 percent of the city's total households. All the members work on a voluntary basis. For the CHO, this means considerable savings on salaries as well as having a pool of thousands of health workers. The scope of PHC activities has already gone beyond purely health concerns and into livelihood and community development, particularly after winning the HAMIS (Health and Management Information System) Gold Award and Diamond Award in 1992 and 1993, respectively.

Case Study: Surigao City's PHC Federated Women's Club PHC Health

35 ]

Activities

The PHC actively participates in the implementation of programs of the Department of Health (DOH) and the local government unit. These programs include maternal and child health care, expanded program of immunization, nutrition, family planning, environmental sanitation, national tuberculosis program, disease surveillance, and disaster management. As health volunteers, the PHC members are involved in the operation and maintenance of the main health center and 45 BHSs as well as 140 feeding centers. They handle recording of immunization, bring the pregnant women for pre-natal checkup, and assist in feeding the children. They conduct health education activities by giving speeches and encouraging mothers to attend trainings and seminars, handling the PHC radio program, and organizing and mobilizing other people in the community. Because of these health education activities, the mothers who used to hide their children to avoid immunization now bring them to the health station. The PHC also helps generate health information data and monitor health status through the community data board system. Its members assist the barangay health workers in conducting the survey and in processing the data. The PHC mothers also do the necessary followups, such as on those whose homes do not have toilets and on children who have not been immunized. They encourage and teach plant propagation to those who do not have herbal or vegetable gardens. The CHO supervises and monitors the activities of the PHC, its officers and members. Every quarter, it conducts a formal evaluation of PHC chapters. CHO representatives do not need to go to the barangays because PHC members themselves go to the PHC office to submit reports, and sometimes, just to meet and mingle with other PHC members. As the mothers and other volunteer health workers focus on preventive health care, demands on the curative aspects of health care are lessened. This can be seen in the lower bed capacity of private hospitals, from 150 in 1986 to 65 in 1995, which reflects a reduction in hospital admissions. The strategy that focuses on promotive and preventive health care has been proven to be relatively cost-effective. Existing estimates of cost-effectiveness of alternative types of health interventions indicate that cost per life saved is much higher (at least

352

ManagingUrbanizationUndera DecentralizedGovernanceFramework

two to five times as much) in curative care than in preventive (The World Bank 1987 as cited in Manasan et al. 1996).

PHC souca_

care

and funding

The basic unit of the organization is the PHC Chapter, which is organized at the purok level. The next higher level is the PHC Integrated Club at the barangay level. The barangays are further grouped into seven districts. Each district has a board of directors. At the top of the PHC organizational chart is the city-level Federated Women's Club, the umbrella organization. Each PHC level has its own set of officers and representative to the higher levels. The PHC is under the Surigao City Health Office, which supervises, monitors and evaluates the former's activities. Financial sources for PHC activities include membership dues (each member pays a yearly membership fee of P10.00), the mortuary fund (contributions used for funeral expenses), fund raising campaigns for special projects, the cash award (a total of P450,000) from HAMIS, and interest on income generating project (IGP) loans and medical health loans. The city government provides support to the federation in the form of honorarium for health workers. It helped set up the mortuary" fund by giving a counterpart contribution. The city also pays for the services of the PHC bookkeeper. At the chapter levels, it finances the construction of health and feeding centers and other infrastructure projects. The local PHC/BESIG chapters' counterpart consists of materials or labor. For the construction of the federation's concrete two-storey Primary Health Care Training Center, the city government has allocated P1.5 million while a senator committed another P1.5 million from his Countrywide Development Fund (CDF). Some prob/ems encountered Whenever a club is formed, the differences in the members' educational attainment constrain participation. That is, those with low-level education feel inferior. The PHC experience shows that such attitude can be overcome by leadership trainings that enable the mothers to be confident and more active. This is an indication that leadership trainings should really be an integral part of the training package.

Case Study: Surigao City's PHC Federated Women's Club

353

The wives' involvement in PHC and community activities caused conflicts with their husbands. However, the PHC turned such problem into an opportunity by forming the BESIG, enabling husbands to have their own tasks and thus contribute to PHC activities. The PHC used to contend with delinquent borrowers. In 1991, it ri_corded a low repayment rate of about 30 percent. As a solution, the PHC required the chapter president to act as guarantor of members' loans. Moreover, if one barangay member has an unpaid loan, other members from the same barangay will not be allowed to borrow. With these strategies, repayment rate rose to more than 80 percent. PHC Health

Initiatives

Aside from its implementation of DOH impact programs, PHC has made the following health initiatives.

the

Setting up of heodth _ fund Members can borrow from this fund for their hospitalization or medical expenses. With a contribution of P10 per year, a member can avail of a P500 loan without interest for hospitalization or a PS00 loan with 2 percent monthly interest for outpatient consultations. The loans are payable in three months. Additional financing for the health fund comes from the mortuary fund. In the mortuary fund scheme, members pay an annual due of P30. In the event of death, the member's family will be given P1,000. Any unused money from the mortuary fund at yearend automatically goes to the organization's health emergency fund. Mobilization of men for environment and sanitation activities In 1989, the PHC BESIG for the adult males in the community was organized. With BESIG, the men became active partners of the PHC. Members set up the feeding center while the PHC women take care of feeding the children. The PHC women survey the households in the community and encourage them to install toilets while BESIG men offer labor in installing toilets. These are some examples of PHCBESIG cooperation. Dissemination of health infornmaon The PHC provides health updates, interviews with resource persons through

PHC-related news, and a weekly radio program

354

ManagingUrbanizationUndera DecentralizedGovernanceFramework

("PHC on the Air") and a weekly TV show ("AKO: Ang Katawang Okay"). Promotion of herbal medicines The PHC has a wide collection of herbal plants and extensive experience on herbal medicines. Each chapter has herbal gardens. Mothers make herbal medicines such as LSKsyrup (luya, sambong or sampalok, and kalamansi for cough) and liniments. These medications are distributed either directly to the people or through the herbal clinic or Botika sa BinhL Currently, a big herbal garden project is being planned by the Surigao City Rotary Club and the Makad Rotary Club. Under their memorandum ofagreeement signed in 1997, the Makati Rotary will buy a five-hectare land in Surigao City and convert such into a herbal garden while the Surigao City Rotary will monitor the project. Key Elements for PHC Success Women are often too preoccupied with attending to both their household chores and the family's needs while their husbands are equally busy ekking out a living. Any spare time they may have is expected to be spent for rest or recreation. Nevertheless, the PHC was able to mobilize men and women to contributing their time and labor to the community. How then did the PHC get such commitment and ensure their continued cooperation? The members attribute the success of the PHC to Jesus Christ. Their slogan is '_esus Christ + PHC." Before they proceedwith any of their activity, they first spend 30 minutes to one hour for praying and Bible sharing. They believe that this will guide them in everything they do. On the other hand, in the context of local governance, the key success elements of the PHC in empowering people are as follows: Giving importance to people and equipping them with the necessary skills In organizing the PHC chapters, the resource persons motivate, exhort and challenge the mothers..As a result, mothers feel that they are needed and that they have a crucial role in improving the standard of life in the community. Through trainings and seminars (leadership topics included), the CHO gives them the capability to perform healthcare related tasks.

Case Study:Surigao City'sPHC Federated Women's Club

35 5

The city government likewise provides support by funding PHC/ BESIG projects. The PHC transformed women from plain housewives to community leaders. With their acquired knowledge and skills, mothers have become more active in the community. They give speeches and even handle radio programs. Several of them were even elected as kagawads or barangay officials. The mayor likewise recognizes the mothers' crucial role to the community by occasionally attending PHC meetings. Promotion of cama_ and sense of belonging PHC strengthens friendship and unity among members through the celebration of important milestones in the organization's life (e.g., graduations, inductions, anniversaries and recognition days) and holding of various contests (such as choral singing competition on PHC activities). Encouraging people participation in planning and decisionmaking One way to enable people participation is through the sustaitaed implementation of the community data board (Figure 1). Here, the health status of each household is known and their needs identified through a quarterly survey. The smwey tackles the community's health concerns such as pregnancies (pre/post-natal), immunization and nutrition status of children, garbage disposal, water source, occurrence of diseases, PHC health insurance membership, and availability of toilet and herbal or vegetable garden. In the community data board, each household is graphically represented by a small hut. For exampie, if there are 60 households in the pur0k (subvillage), there will be 60 huts. The hut shows the house number, the name of the family head, the health concerns, and the period covered (i.e., first to fourth quarter). For comparison purposes, the previous year's quarterly performance is included as baseline datum. For each health concern, the health worker and the assisting mothers assign a colored circle to indicate health status. The colors, their meanings, and some examples of their application in different health concerns are as follows:

356

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Figure 1. The Community Data Board

House No. Name of household

Pre/Post-natal Family planning Nutrition Immunization Garbage disposal Water source Herbal/Vegetable garden Toilet Disease Health insurance Current year Previous year -

Quarter

__1

Q2 Q3

Case Study:SurigaoCity'sPHC FederatedWomen's Club

3 57

Color

Meaning

Example

Blue

Not applicable

Nobody is pregnant in the household.

Yellow

Improving

Malnutrition changed from severe to mild.

Green

Safe

Children are fully immunized.

Red

Danger

No PHC health insurance.

By looking at the red circles, the health personnel are alerted on the needs of each household. The concerns of the purok can also be prioritized according to the number of red circles. The top problem is that of health concern with the most number of red circles. Comparison with the previous quarter will also show where performance has improved or deteriorated. The community boards of the different pur0ks are consolidated at the barangay level. A small hut is also used to represent a pur0k. For each health concern, the applicable numbers are entered for each purok (such as how many children were not immunized, how many households do not have toilets). These are then aggregated at the barangay level. Again, comparison of data with those of the previous quarter indicates in which area and health concern performance has become better or worse off. The PHC chapter monthly meetings provide the venue for further identification and discussion of community needs and problems, solutions, development projects, and plans at the purok level. To ensure prompt action and accountability at the implementation stage, the PHC uses a monitoring chart on the problems or needs, the steps required, the persons responsible for each step, the target completion date and what has been accomplish. During monthly meeting with larger units, chapter presidents report the activities and discuss the plans of their respective units. The meetings also serve as fora for sharing experiences, including problems and innovative strategies adopted by local chapters. The chapter presidents then report back to their members what had been discussed in these meetings. Thus, there is two-way communication between the small and the larger units. Even as the local chapters have the flexibility to make their own decisions, they also benefit from the monitoring and supervision provided by the larger units.

358

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Recognition of outstanding perfornmnce Members look forward to August (designated as the PHC month) and September for the PHC Annual General Assembly. During this period, annual evaluation of each chapter is done. Outstanding performances are recognized based on how the chapters or members conduct healthcare-related programs, projects and activities such as: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

most number of babies immunized; most number of sanitary toilets constructed and maintained; least number of malnourished children; community data board; submission of reports; participation in the radio program; success of livelihood and income-generating projects; attendance to meetings and related activities; fund raising; and other community development projects.

Among the highlights of the September convention are the recognition of the Ten OutstandingPHC Chapters, Most Outstanding President/Member, Five Outstanding Workers, and Outstanding Couple. The awardees receive prizes in cash and in kind, In_lenwntation of b_ projects The PHC continues to flourish because it benefits people. It enabled greater access to health services and medications. With many health services provided within the barangay level, people do not need to go to Surigao City. In addition, mothers have also learned to treat common illnesses and make herbal cough preparations and liniments. To reduce the cost of medicines, the PHC has put up several barangay pharmacies and buys direct from drug manufacturers. As a result, the medicines in PHC boticas are 30 percent cheaper than commercial pharmacies. Other benefits the PHC provides its members include medical loans, mortuary assistance, 10 percent discount on drugs bought from Botika sa Binhi, and 2-10 percent discount from participating coinmercial establishments for PHC cardholders. Members can also avail of loans for income-generating projects (such as retail stores, credit financing, poultry/piggery, food catering).

Case Study: SurigaoCity's PHC.FederatedWomen's Club

359

The health awareness activities of PHC and BESIG members resulted in better sanitation and nutrition in the barangays. Houses are kept clean, with most having individual toilets. There are vegetable and herbal gardens. Garbage is disposed of properly. Because of such improvements in the living conditions in the community, the PHC has gained the support and cooperation of the people. Still, the PHC members continue to explore other possibilities. They are now preparing to open a banking institution that will cater to the credit needs not only of the members but also of the rest of the city population. How to Replicate Many strategies can be replicated from the PHC program. Foremost of these is the organization of mothers' and fathers' clubs. Prior to organizing, the city or any other local government unit should identify or select the following: O_ganir.,erlcoordinator This could be an individual or a group that has the ability to motivate and mobilize people and is involved in health activities. The services of nongovemment organizations (NGOs) may be tapped since they pioneered people participation. The Surigao PHC coordinator, Mrs. Arana, may be invited to give pointers or suggestions. Remu_e persons to conduct c/o_es City personnel involved in health education may be assigned to teach specific clams. If this is not possible, the city can select other health personnel or recruit other persons who can be trained to eventually conduct health classes. Initially, the city may also invite resource persons from the DOH or Surigao City. Training package The city may be able to get training materials from the DOH or request Surigao City to share its own training package. In addition to health concerns, the training should include leadership topics, implementation of the community data board, orientation on the PHC program and the important role of mothers, and the plan to adopt the program in the city. Aside from basic trainings, enhancement trainings should be a continuing activity of the CHO.

Case Study:Surigao City's PHC Federated Women's Club

361

Botika sa Binhi The members set up a main pharmacy and buy medicines directly from manufacturers. Smaller pharmacies may also be put up in barangays or even in pur0ks. Mortuary fund and reed/ca//oan fund Members pay a fixed annual contribution. In return, they can avail of mortuary assistance and borrow for hospitalization and outpatient needs. Any excess from the mortuary fund at yearend would be added to the medical loan fund. Annual awards for outstanding clubs and members The criteria used by the Surigao PHC may be adopted while prizes would depend on the city's financial capability. A replicating city should guard the program against any form of politics. This is another lesson from the Surigao City experience. When the city first organized a mothers' club in 1976, it was meant to help promote proper health practices at the barangay level. Unfortunately, the CHO lost its control over the program when some politicians started using it for their own political agenda. Conclusion "Health in the hands of the people" is the PHC members' battlecry. They believe that the health of the people and of the nation is possible onlywhen everybody works for it. Thus, through the PHC, Surigao City succeeded in making health everybody's concern. Starting initially with an activity that involved mothers only, the PHC now taps the contribution of all members of the family. In turn, it benefits not only its members but the whole population of Surigao City as well. The Federated Primary Health Care project of Surigao City is something that the Surigaonons are proud of. According to the PHC members, the program has been adopted in Quezon province, La Union, and neighboring provinces in Region 10. A similar project in the province of Surigao Norte called the Partnership for Community Health Development (PCHD) was also started in 1991. All these prove that the PHC program can indeed be replicated in other cities and LGUs.

362

ManagingUrbanizationUndera DecentralizedGovernanceFramework

References Asis, M. 1994. Community-Based Initiatives in Health: Development, Growth and Transformation. Department of' Health (DOH)Health and Management Information System (HAMIS) Occasional Paper No. 8. Manila: DOH-HAMIS. Herrin, A. 1998. Beyond 2000: An Assessment of the Health, Nutrition and Education Sectors, 1992-1996. Paper submitted to the Philippine Institute for Development Studies. Unpublished. Manasan, R., G. Llanto and W. Nuqui. 1996. Financing Social Programs in the Philippines. Makati City: Philippine Institute for Development Studies.

Case

Study

Financing and Delivery of Health and Sanitation Services: A CaseStudy of Cotabato City Virginia S. Pineda and Ma. Lourdes D. Lim he city of Cotabato, located at the northwest portion of Maguindanao Province in Central Mindanao, was created under Republic Act No. 2364 on June 20, 1959. Under this charter, the city covered a total land area of 17,599 hectares and was politically subdivided into five barangays. At present, 32 more barangays have been created, giving the city a total of 37 barangays. The city is around 689.9 nautical miles southeast of Manila and is more or less 220 kilometers from Davao City. On its north is the municipality of Sultan Kudarat, with the Rio Grande de Mindanao as the boundary; on the east, it is bounded by the municipality of Kabuntalan; on the south by the municipality of Dinaig (all municipalities of Maguindanao Province); and on the west by Illana Bay. Presently, Cotabato City is the seat of two regional governments: Region XII and Autonomous Region in Muslim Mindanao (ARMM). Vital Facts and Figures Between 1990 and 1995, Cotabato City's population increased from 127,065 to 146,779 persons or by 16 percent. Likewise, population density per square kilometer rose from 722 in 1990 to 834 in 1995. Of its 37 barangays, 29 are urban and eight are rural. The city has about 26,900 households. Currently, about 60 percent of the population live within the poverty level (i.e., with average gross family income of P6,000 and below per month). The middle-income group, earning an average gross family income of P6,001 to P40,000 monthly, constitutes 30 percent while the high-income group (over P40,000 monthly) makes up the remaining 10 percent.

364

ManagingUrbanizationUndera DecentralizedGovernanceFramework

The city's health facilities consist of one main health center, 37 barangay health stations (BHSs) with seven extensions, one government hospital, and four private hospitals. The Cotabato Regional and Medical Center (CRMC) has a capacity of 240 beds while the private hospitals have a combined capacity of 474 beds. As a regional hospital, the CRMC serves not only Cotabato City but the provinces of Cotabato, Maguindanao, and Sultan Kudarat as well. In 1991, before the devolution, the city's health expenditure was P3.0 million, which was 7 percent of its total expenditures. Of this amount, 75 percent was for basic health services and the rest for hospital expenditures. In 1994, after the devolution of functions, health expenditures rose to P8.5 million, which was 5 percent of the city's total expenditures. About 98 percent of the amount was spent for basic health and nutrition while the rest was for other health expenditures such as operation and maintenance of facilities. In 1996, the budget for health services oecame P7.5 million. Of this amount, 90 percent was for primary health and 10 percent for curative services. City health budget constituted 8 percent of the total budget. For 1997, the city health budget was 6.5 million, about 9 percent of the total city budget. Problems/Constraints to Effective Health Service Delivery The implementation of the 1991 Local Government Code (LGC) in 1992 provided the impetus for local government units (LGUs) to assume greater roles and responsibilities in bringing about socioeconomic development. This is in view of the devolution in the provision of basic services such as health, social welfare, socialized housing, agricultural extension and tourism development, from the national to local governments. The devolution of health services from the Department of Health (DOH) to LGUs was in consonance with the national goal of "Health for All" by the year 2000 and the "Health in the Hands of the People" goal by the year 2020. The national vision signals local constituents to actively participate in the delivery of basic health services in their communities and also provides an opportunity for the LGUs to manage their respective health services eflectively and efficiently: However, despite these meritorious national objectives, the devolution process also posed problems for the DOH and the LGUs particularly because of inadequate financial resources to undertake vigorous health service delivery programs.

Case Study: Financing and Delivery of Services in Cotabato City In Cotabato City, the insufficiency of only one of the problems faced by the encountered included adverse geographic low economic status of its population, manpower and facilities.

365

budgetary resources was LGU. Other problems location of its barangays, and inadequate health

Economic status of the population People of various ethnic origins coming from as far as Aparri to Tawi-tawi populate the city of Cotabato. Majority are from the Maguindanaoan tribe and the Visayan regions. About 60 percent of the population is composed of marginal farmers and fisherfolk, seasonal job workers, unskilled laborers, and jobless individuals. Those belonging to this group live within the poverty threshold level, earning an average gross family income of P6,000 and below per month. Tile remaining 40 percent accounts for the middle- and high-income groups. This implies that majority of the city's population are poor and disadvantaged and, therefore, most wanting of health care and other basic services from the government. Accessibility and tran.vportation constraints The city's geographical feature makes delivery of health services a major challenge to the local government. Brooks, rivulets and creeks of various sizes criss-cross and traverse the city in all directions. Eight barangays can only be reached by water vessels. Three other barangays are not easily accessible by public transportation. Before its special project on health and sanitation (see next section), the city has been providing health care at the main health center and 11 satellite stations. However, people in remote areas could not avail of these services because of transportation problems.

Inadequate financial and budgetary resources The Office of Health Services (OHS) had very limited financial resources. Its regular budget (P4.5 million in 1992) was just sufficient to cover personal services, and maintenance and operating expenses. Inadequate health manpower and facilities Due to its financial constraints, the OHS could not put up additional health facilities and employ additional health personnel.

366

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Prior to its special project on health and sanitation, the city had only 11 health stations while the OHS had only 39 regular personnel. The OHS staff consisted of four doctors, six nurses, 11 midwives, one dentist, one medical technologist, eight sanitary inspectors, and eight nontechnical and administrative personnel. Such health fhcilities and manpower have been inadequate to cover all the households in the city. Adverse We-implementation health situation Until 1993, major health statistics and conditions showed that there was a need to focus more on the delivery of basic preventive health services, particularly to the disadvantaged groups living in the remote barangays. Based on the National Statistical Coordination Board (NSCB) data for 1990, the city's infant mortality rate was 44.0 per 1,000 live births while maternal mortality rate was 182.8 per 100,000 live births. The Special Project on Health and Sanitation The Special Project on Health and Sanitation proposed to make basic health services accessible to people in the far-flung barangays of Cotabato City. Its main objective was to improve and sustain the yearly delivmy of basic health services to all the barangays in the city. It developed into a P3 million peso project, which was financed from the 20-percent Community Development Fund of the Cotabato city governmen t. The project was conceived in 1992 during the conduct of the City Planning Workshop. This OHS initiative, with support of the private sector, later became the initial response to Cotabato's health care problem. It has two components, namely: (1) establishment of at least one health station for each of the 37 barangays of the city as well as the hiring of casual personnel to man the health stations all year round and (2) provision of minimal but highly significant funding support to health-focused activities such as advocacy to national and special locally implemented programs and projects. Project ma_t and organization The main health center under the City Health Office exercises the overall supervision of the Barangay Health Services Extension component of the project through the area/cluster supervisors while one BHS was established in each of the 37 barangays in the city. Seven

Case Study; Financing and Delivery of Services in Cotabato City

367

other extensions were set up for catchment areas in larger or heavily populated barangays. For more effective supervision and monitoring, the BHSs are grouped into seven clusters. These clusters are in accordance with the subcity clusters or barangay groupings organized for facilitating administrative concerns of th e city government. A coordinator, who is a permanent nurse or midwife with extensive training and experience in city health programs, heads each cluster. All barangay health midwives (BHMs), now barangay health aides (BHAs), are directly under the supervision of the coordinators. The barangay chairpersons assist in the monitoring of the administrative performance functions of the BHAs. Addressing

constraints

to effec6ve health service delivery

_ÂŁ_BHS and midwife in each barangay While affluent cities could easily provide their respective barangay with its own health station and midwife, it is a formidable task to those that lack financial resources. Cotabato City serves as a model for cities that intend to provide a BHS and midwife for each barangay despite the lack of fun&s. In the city's experience, the building cost of a concrete BHS structure is about P100,000. At most, the city could construct only three concrete BHS per year. The OHS managed to overcome the lack of permanent BHS structures by utilizing barangay halls, and rooms or spaces in private homes of concerned citizens as health stations free-of-charge. Although the plan was to provide one BHS per barangay, the city went beyor, d the standard. Recognizing the differences in each barangay's size and population, the OHS also set up seven other stations for catchment areas in larger or heavily populated barangays. As of 1996, the city has 37 BHS and seven BHS extensions. Of these, 23 are permanent structures constructed by the citywhile the rest are temporarily located in barangay halls or private homes. Another target of the OHS was to provide one midwife in every barangay. However, the OHS regular budget could not meet the salary requirements for additional permanent personnel. To solve this problem, the strategy was to hire casual midwives and finance their salary from the 20-percent Community Development Fund.

368

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Mo_bilizati.on__le..J'e sou rce s Unable to hire health workers, the OHS identified the alternative manpower resources that can be tapped for delivery of health services. It sought out some 100 volunteers, mosdy trained hil_ts (traditional midwives), to assist the midwives in the BHS. These volunteers provide maternal delivery services and promote other basic health care services at the purok levels. In appreciation of their volunteerism, the city gives each of them a cash gift of P500 every December. The city likewise mobilized health services-related educational institutions, nongovernmental organizations, private companies, and civic-minded citizens. These groups provide volunteers, medicines, refreshment, vehicles, and financial support during advocacy activities. The OHS also obtained support from barangay officials. Funds for medicines come from the barangays. In case of problems, the midwives coordinate with the barangay officials and discuss any proposals or recommendadons. Health concerns are among the topics discussed during the pulongpulongor barangay meetings that are held about once a month. Barangay captains also help in advocacy programs by presiding over meedngs to plan the activities and mobilize the support and participation of local residents. Barangay clustering For more effective supervision and monitoring, the OHS grouped the 37 barangays into seven clusters. This is in accordance with the subcity cluster system adopted by the city government for facilitating local administration and management. A cluster coordinator supervises and monitors the activities of his/her BHS and the barangay midwives. Dividing the work of supervision and monitoring of the 37 barangays among seven coordinators facilitated these tasks. Focusing on only a few barangays enabled the coordinators to immediately respond to the problems and needs of the barangays within their clusters. Activities under the special project on health and sanitation Project activities fall under three categories: (i) DOH regular programs implemented at the barangay level; (ii) locally initiated health activities; and (iii) advocacy activities for periodic national and global health programs.

Case Study:Financingand DeliveringServices in Cotabato City

371

the OHS radio program and distribution of IEC materials; and holding of the yearly "healthy baby contest" with the support of NGOs, drug companies, and other government agencies. Cotabato City was also commended for its achievements during the nutrition months. With funds from the project, the OHS was able to provide free dental services, toothpastes and toothbrushes during the National Dental Health Week (February), medical testing services during the Women's Health Month (March) and STDAIDS Awareness Month (December). It also conducted information campaigns through slogan and poster-making contests, parades and symposia. All these advocacy activities were done in collaboration with NGOs and other government agencies such as the Cotabato Regional and Medical Center, Philippine National Red Cross, and City Social Welfare and Development Office.

Imp

oft p,w'oa

In 1992, Cotabato City has been reported as one of the areas in the country with the highest incidence of denguema total of 213 cases. Dengue incidence dropped significantly to 39 cases in 1996. Since the project's implementation, no epidemic has occurred in the city. While the city's adjacent municipalities and provinces suffered from measles epidemic in 1996, Cotabato City was able to control the spread of the disease. Its measles cases during the year were at a manageable count of 214. The prevention of epidemics is attributed to the presence in each barangay ofa BHS midwife and volunteer workers who conduct disease surveillance and information campaign on proper health care and sanitation. The project also enabled the OHS to intensify its environmental sanitation drive with the hiring of utility personnel to handle fogging and spraying operations. With the implementation of the project, health conditions in the city have improved as reflected in the reduction from 1990 to 1995 of infant mortality rate from 44 to 36 (per 1,000 live births); child mortality rate from 61 to 50 (per 1,000 children below age 5); and maternal mortality rate from 183 to 150 (per 100,000 live births). These were even lower than the average for the Philippines (Table 1).

â&#x20AC;˘ 372

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Table 1. Comparative MortalityRates, 1990 and 1995 1990 Mortality rates Infant

Cotabato City 44.0

Child Maternal

60.9 182.8

1995 Philippines 56_7

Cotabato City 36.1

79.6 209.0

50_0 149.9

Philippines 48.9 66.8 179.7

Herrin, A. 1998 - "Beyond 2000: An Assessment of Health, Nutrition and Education Sectors, 1992-1996" (Unpublished PIDS Report); National Statistical Coordination Board.

Key Contributors

to the Project's

Success

Interg_ernmenta/coordinat/on and co//aborat/on The city government, through the OHS, successfully established strong coordinative and collaboration linkages with the executive and legislative branches of the local government though the City Development Council. This was manifested in the support provided by the barangay officials, NGOs, and the private sector in the conceptualization, development, â&#x20AC;˘and implementation stages of the project. The ability of the city government to provide these basic health services to the disadvantaged people in the far-flung areas by harnessing the support of various development actors shows the extent of its coordination and collaboration efforts. This is illustrated by the government's success story in providing a BHS in each barangay and additional seven BHS extensions. Barangay officials and concerned private citizens supported the project by allowing the free use of barangay halls and private homes as health stations. Mobillxaaon of local financial resources The city government was able to overcome its limited financial resources by resorting to its 20-percent Community Development Fund in financing its health care projects. Had the OHS depended on the regular budgetary source alone and did not explore other sources of funds, the delivery of effective and efficient health services may not have been brought down to the barangay level. The ingenious approach to the health service delivery problem, particularly in its

Financing and DeliveringServices in Cotabato City financing, aftbrded the implementation attuned to the needs of the population.

of a meaningful

373 project

Presence of health facilities and personal in the barangays Since there is a health station serving each barangay, people have a place to go for their immediate health needs. Health conditions also improved because there is enough manpower to deliver health care services. There are midwife and volunteers in every barangay who implement regular health and sanitation programs, advocacy activities for periodic health-focused programs, and locally initiated health activities. Through their house-to-house visits and community classes, they promote health awareness, proper nutrition, and sanitation. By monitoring any outbreak of a disease, they prevent epidemics. The availability of a utility worker to handle spraying and fogging operations also helps reduce dengue cases. Mobilization of people for volunteer work The mobilization of approximately 100 volunteers in assisting the 37 midwives facilitated the delivery of health services to more people at minimum cost. The city in turn recognizes the outstanding performance of BHWs through annual awards and token gifts. For the government, these volunteer workers are one of the key contributors to the remarkable performance of the city in the implementation and advocacy of annual health programs. Barang_y e/uaer/ng Clustering the barangays into seven subcity areas facilitated the implementation and monitoring of the project. Moreover, the designation of a cluster coordinator for each area provided focus in the supervision and monitoring of health activities in the barangays. Clear goals/plans/programs Because primary health was one of the local administration's priorities, the city leaders have set a specific goal: to provide a BHS and midwife in every barangay. Accordingly, they devised plans and financing scheme to achieve this goal. The OHS then prepared a project proposal, which was discussed thoroughly in the Annual City Planning Workshop participated by government agencies and nongovernment organizations. With its concrete measures, the

374

ManagingUrbanizationUnder a DecentralizedGovernanceFramework

proposal was subsequently Health and Sanitation.

implemented

as the Special Project on

Strategies That Can Be Replicated by Other Cities Given the experiences and lessons from Cotabato City's financing and delivery of health and sanitation services, the following strategies may be replicated by other cities. Use of barangay halls and private homes as BHS Cotabato City's experience shows that there is a need for a physical structure or facility to house a BHS so that the people will know where to go for their health needs. In addition, it presents possibilities of substitution or sharing in the use of facilities. A certain venue does not have to be utilized solely for the BHS. It can serve as BHS on certain days of the week and have other uses during other days. Another important lesson that can be derived from the Cotabato City experience is its persistence in pursuing its goal of providing a BHS for each barangay despite the budgetary support. Through effective coordination and collaboration with barangay officials and private citizens, the city government was able to set up the health stations using barangay halls and private homes for free. Since the barangay residents directly benefit from the BHS, it is enough incentive for them to help the city government through free accommodation in their respective barangay halls or private homes. Of course, other government units may also consider renting these facilities instead. Provision of midwife for each barangay Without the health personnel, the presence of health facilities in the barangays does not guarantee the delivery of health services to the community at any given time. This is the rationale for the provision of barangay health midwives for each BHS who were hired even on a casual basis. Intensive planning and coordination The case of the Cotabato OHS imparts to other LGUs that to be able to implement meaningful projects, thorough planning and extensive coordination work must be done. The LGU attained its objectives for its development

projects because its planning

staff was

Case Study: Financing and Delivering Services in Cotabato City

375

able to articulate these needs, identify viable measures to address the problems, coordinate with beneficiaries, local officials and NGOs, and explore local financial resources. Mobi_ of local resources Based on Cotabato City's example, other cities can also tap trained hilots to assist midwives in the health stations. The barangay officials and midwives may approach the trained h//0ts individually or organize a meeting meant to encourage the latter's participation in health service delivery. Other cities could also request the assistance of health servicerelated educational institutions, NGOs, private companies, and civicminded citizens in conducting health-related activities for periodic advocacy programs as well as during the celebration of the cities' respective foundation days. City officials or representatives may approach them directly or call a meeting with them to plan the activities and specify their participation or contribution (such as manpower, refreshments, and financial support). Bam_ry clmt_ng In Cotabato City, the clusters matched the delineation of the subcities identified by the city government for its administration. Other cities could also follow their own government's delineation as basis for the barangay grouping or they could devise other schemes such as grouping the barangays based on their proximity with each other. Anmud program rev/ew and evahaz6on Other cities could also conduct an annual workshop or general meeting among their health workers, as being practiced by Cotabato City, to serve as a forum for assessment of perfolTnance, exchange of information, and social interaction. In this activity, health workers can provide information on their respective projects, share ideas and interact with one another, thereby promoting camaraderie and smooth working relationships.

376

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Conclusion Cotabato City is a good example for other cities to follow. If the OHS just relied on the regular budget for the construction of the BHS, it would not have accomplished its objective of providing one BHS per barangay. At present, the city has only 23 concrete BHS. Based on the construction rate of three BHS per year, it will take about five more years to build additional 14 concrete BHS to complete its target of 37 BHS (or one BHS for each barangay). Likewise, if the OHS depended only on its regular budget, it would not have been able to provide a midwife for each barangay. Its resourcefulness and initiative in looking for funds and alternative setups for BHS and hiring of midwives enabled the city to bring health services to each barangay starting 1993. The same arrangement may be explored to facilitate the immediate realization of another OHS goal--the establishment of seven subcity District Heakh Offices (DHO), each manned by one doctor and one nurse. This project is planned for implementation in 200320O8. The city government may also hire the DHO personnel on temporary basis. To reduce costs further, it could allow doctors to work on a part-time basis. This is based on Puerto Princesa City's example. The city was able to provide doctors to satellite clinics on part-timearrangement. Puerto Princesa City has five strategic satellite clinics, each with a catchment area of four to eight barangays. Doctors (one for each clinic), who are hired on contractual basis, attend to the patients for two days a week and in the remaining days, engage in private practice. The city pays each doctor a monthly salary of P10,000. Cotabato City can explore the arrangement made by Puerto Princesa City in the provision of doctors and other health personnel in the subcity clusters. The city and barangay governments may share in the payment of salaries to these health personnel. In the final analysis, the implementation of the 1991 Local Government Code provided the LGUs the opportunity to examine the mandate given to them as well as their human and physical resources in the delivery of basic services to their respective constituents. The decentralized local governance policy encouraged LGUs to be resourceful and to take the initiative in planning, developing, and implementing programs and projects in their localities. The Special Project on Health and Sanitation of Cotabato City has exemplified that with creativity, political will and determination, and dedication to public welfare, the delivery of health services to the people can be ensured and sustained.

Case

Study

Lapu-lapu City's Partnership,for Health Virginla S.Pi_d.a apu-lapu City, the prime in Mactan Island, about Cebu. It is bounded on nel, on the east by Bohol Strait, of Cordova and Bohol Strait.

tourist destination in Cebu, is located 13 kilometers away from the Port of the north and west by Mactan Chanand on the south by the Municipality

The city has a total land area of 58.1 square kilometers. It is composed of 30 barangays and has about 30,838 households. Lapu-lapu City has 100 percent urban population. In just 15 years, its population almost doubled. From 98,723 persons in 1980, its population increased to 146,194 in 1990 and 173,744 in 199.5. Accordingly, population density per square kilometer rose from 1,699 in 1980 to 2,459 in 1990 and 2,933 in 1995. Health Facilities The city has 41 barangay health centers/stations (BHCs/BHSs), one government primary (community) hospital, two private primary hospitals, and one private tertiary hospital. The hospitals have a combined capacity of 130 beds, consisting of 10 beds in the government community hospital and 120 beds in private hospitals. The BHCs and BHSs are clustered into eight health districts. These hospitals and the health districts cover certain barangays and population, as presented in Table 1. Health Expenditures/Budget In 1991, prior to devolution, Lapu-lapu City's health expenditures totaled 2.8 million (7 percent of its total expenditures). After devolution, health expenditure rose to P6.1 million in 1994 and 8.9 million in 1995 but its ratio to total expenditures declined to 4 percent for both years. These amounts were spent for basic health services and other health-related expenditures such as construction and maintenance/operation of facilities.

378

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Table 1. Catchment Areas of Hospitals and BarangayHealth Stations,in Lapu-lapu City Hospital/Health

Districts

No. of Beds/BHSs

Sta. Rosa Community ]:tospital

l 0-beds

Our Lady of Rule Maternity Tojong }General Matemity Hospital Clinic and and General Hospital

10 16 beds beds

Mactan

Community Hospital District 1 District 2 District 3 District 4 District 5 District 6 District 7 District 8

No. of Barangays

)

Poptdation

8 island barangays

18,796

22 mainland

127,398

barangays

94 beds 5 BHSs 5 BHSs 5 BHSs 5 BHSs 6 BHSs 4 BHSs 6 BHSs 5 BHSs

4 2 2 3 4 4 6 5

24,423 41,202 30,351 27,179 34,487 22,607 12,695 12,945

Note: Population data corresponding to the catchment area of the hospitals were based on the 1990 Census of the National Statistics Office while data at health district level were based

on 1997 population.

Sources: Lapuqapu

City Health

Office; National

Statistics Office.

Lapu-lapu City's budget for health for 1997 was P14.6 million. About 25 percent of this was for the city government's counterpart for Urban Health Nutrition Project (UHNP)-initiated activities while the remaining 75 percent was for the City Health Office (CHO). The percentage of the health budget to total city budget is 5 percent. For 1998, the city allocated P4.3 million as counterpart for UHNP programs and P13.3 million for the CHO. Its health budget amounted to P17.6 million and constituted 6 percent of the total city budget. Lapu-lapu City provides flee services and medicines in its BHCs/BHSs. Health

Performance

Lapu-lapu City used to perform poorlyin the Expanded Program of Immunization (EPI). In 1988, it ranked second lowest among the provinces and cities in the Philippines as the proportion of its Fully Immunized Children (FIC) to the target population was only 30 percent. Its FIC rate increased substantially in the subsequent years: 80 percent in 1989 and 90 percent in 1990. In 1991, Lapu-lapu City

Case Study:Lapu-lapuCity'sPartnershipfor Health

379

even won the Most Accelerated City in EPI Award as its FIC reached 95 percent. As of 1995, its FIC rate was 104.5 percent of the target population. With better EPI performance, the city's infant and child mortality rates as well as maternal mortality rates declined from 1990 to 1995 and were even lower than the average for the whole country (Table 2). Lapu-lapu City was also performing very well in nutrition. In 1990, its malnutrition rate at 59 percentwas the same as the national average. By 1995, it was able to decrease substantially its malnutrition rate to 22 percent, which was much lower than the average rate of 40 percent for the Philippines. Strategies to Promote Health To promote efficient delivery of health services, the Lapu-lapu CHO employed the following strategies: Regular barangay visitation and assembly When the city health officer assumed office in 1989, he toured all the barangays for one month to know the people's health needs and identify ways of improving their access to health and sanitation. He traced the low EPI performance to the absence of a specific schedule for immunization and the people's lack of interest or awareness. Access to other health services has also been limited since doctors did not have a fixed schedule of visits to the barangays. The city health officer therefore set a permanent schedule for EPI every week and ensured that a doctor will visit a barangay at least once a month on a specific date. At that time, there were only two doctors. Now, there are 10 doctors, each of whom is assigned to four barangays. As the city health officer went around all the barangays, he encouraged the people to go to the health centers. He goes to the barangays three to four times a week to check on the status of programs being implemented. The mayor would also come along with the city health officer three to four times a month. Every quarter, the CHO conducts barangay assembly to present the current health programs and projects of the government and to solicit feedback on the community's health problems and priorities. The community also participates in drawing up solutions to their problems.

380

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Table 2. Mortafity and Nutrition Indicators, 1990 and 1995 Indicator Lapu-lapu Mortality Rates: Infant Child Maternal

42.0 55.1 167_7

Percentage of Malnourished Children (0-83 months old) Mild Moderate Severe Total

32.1 23.9 3.4 59.4

Infant

mortality: infant deaths

1990 Philippines

Lapu-lapu

1995

56.7 79.6 209_0

32.8 43.0 130 _8

48.9 66_8 179 _7

41.3 15_5 2.3 59.1

19.5 2_8 0.1 22.4

30.7 8.4 1.2 40.3

Philippines

per 1,000 live births.

Child mortality: number of deaths among children less than 5 years of age per 1,000 children of" the same age range. Maternal mortality: number of maternal deaths per 100,000 live births. Sources:

"Beyond 2000: An Assessment of the Health, Nutrition and Education Sectors, 19921996", 1998 (Unpublished PIDS paper); National Statistical Coordination Board; 1996 Department Nutrition Service;

of Health (DOH) Annual Accomplishment 1997 Lapudapu City CHO Statistical Report.

Report;

DOH

Regular interaction with officials, concerned groups and staff Aside from submitting reports, the city health officer gives feedback to the mayor every morning concerning the past day's activities. He joins the Association of Barangay Captains (ABC) meedngs once a month. During the meedngs, the city health officer is able to promote health concerns such as the importance of having a BHS in every barangay. In 1989, there were only five BHCs/BHSs. Currendy, there are 41 BHCs/BHSs for the city's 30 barangays. Recognizing the usefulness of an integrated approach in addressing needs, the city health officer formed an interagency committee composed of"government, nongovernment, and civic and religious groups. The committee meets every first Thursday of the month to discuss health, education, and social welfare issues and concerns. One example where the involvement of the religious sector proved beneficial relates to the tetanus toxoid controversy. A parish priest opposed the immunization of pregnant women with tetanus toxoid because it allegedly caused abortion. The committee's member from the religious sector helped to convince the parish priest on the effectiveness of tetanus toxoid as a preventive medicine and corrected the latter's misconception.

Case Study: Lapu-lapu City's Partnership for Health

381

Ever), Monday, the city health officer conducts staff meetings with all health personnel to discuss issues and concerns related to delivery of t/ealth services as well as CHO operations. In addition, there is also a monthly meeting per district among the health personnel and workers. These meetings provide a venue for identifying problems and solutions, and other strategies for further improving performance in the health sector. Adopt,.a-Barangay Program for private companies Under this program, private companies and educational institutions adopt barangays and assist on health needs. They help through their doctors (retainers) who conduct regular monthly free clinic in the adopted barangays and by donating facilities or supplies such as used toilets. At present, 10 private companies and five educational institutions have adopted eight barangays. On top of the health assistance, the institutions and firms also plant trees to maintain the greener areas of the adopted barangays. Private companies and congressmen also contribute for the milk feeding of preschoolers and Grade I pupils while a food manufacturer regularly donates noodles to feed children. One company even handled the fogging activities for the entire Lapu-lapu City. Mobilization of pr_vate medical practltione_ and other groups For the immunization program, the CHO has involved 50 private medical practitioners from the Mactan Doctors Organization, a civic organization, and nurse-volunteers from the Mactan Community Hospital. It provides vaccines for the group during their collaborated immunization program. Moreover, it also requests the group to set aside time for rendering free services to the barangays. At presents, 50 doctors and 100 nurse-volunteers give free services to the barangay people. The hilots and midwives who are private practitioners are considered as part of the CHO even if they are not employed by the government. The CHO provides them trainings and asks them to participate in meetings so they could enhance their skills and service to their clients. The h//ots and trained birth attendants (TBAs) are required to report to the CHO every last Monday of the month to discuss health issues and concerns. To encourage entertainment club owners and managers to monitor the health status of their club workers, the CHO organized

382

ManagingUrbanizationUndera DecentralizedGovernanceFramework

the Lapu-lapu City Club Owners and Managers Association (LACOMA). The club owners and managers are responsible for ensuring that their workers undergo hygiene checkup everyweek and conduct peer counseling sessions on sexually transmitted diseases/ human immunodeficiency virus monitoring, detection and surveillance (STD/HIV/MDS), fertility and birth control. The CHO also formed mothers' support groups to assist the health workers. The mothers do information-educationcommunication (IEC) dissemination in their respective barangays. They help health personnel during advocacy activities such as in feeding the children during the nutrition month. The groups currently have 410 members. Funding from the barang_s Allowances given to barangay health workers (BHWs) come from the barangays. This arrangement encourages barangay officials to be more involved in health matters and to monitor the activities of BHWs. Depending on the barangay budget, the allowances range from P400 to P!,500 per month. The city, on the other hand, provides free hospitalization to the BHWs and their families. Use of biological toilet for barangays short of water Lapu-lapu City has nine biological toilets in two barangays. These toilets are useful in areas experiencing shortage of water. Instead of utilizing water for waste disposal, ash is used to cover the waste. The toilets are made of hollow blocks and cement. Galvanized iron is installed to facilitate the drying up of the waste matter via the heat of the sun. The dried waste matter has been tested to be free of coliform and is used as fertilizer after one year. A biological toilet costs P10,000 and is good for five to 10 households. Key Elements

for Success

Leadership and i_ of the city health officer To know the people's health needs, the city health officer went to the barangays regularly. After studying the causes of Lapu-lapu City's low performance in EPI, he implemented corrective measures that helped turn the city from the second lowest performer in 1989 to the most accelerated city in EPI implementation in 1991. The solutions

Case Study:Lapu-lapu City'sPartnershipfor Health

383

were quite simple: fixing a schedule for EPI, encouraging the people to go to the BHSs and ensuring that there are health personnel who will attend to them. He initiated the organization of an interagency committee that discusses health and other concerns and instituted regular meetings among health personnel and workers. His regular presence and monitoring work in the barangays encouraged health personnel and workers to do their tasks well. Interaction with the mayor and baranguy captains The city health officer was able to push for health concerns during his interactions with the mayor and the barangay captains. He always stressed the need for health to be a priority inasmuch as their constituents will not be productive if they are not healthy. By communicating to the city/barangay leaders the health problems and needs in the barangays, he was able to get financing for the construction of BHSs and funds from the barangays for the health workers' allowances. Good networking, proper linkages and coordina6_ Through networking and identifying specific ways by which private companies, medical practitioners and mothers can assist in health service delivery, the CHO was able to get the involvement and support of these groups. Strategies That Can Be Replicated Lapu-lapu City's health-promoting may replicate are the following:

strategies

that other cities

Regular barangtty visitation and assembly The city health officer could schedule regular visits to the barangays to see actual implementation of health activities and interactwith the people concerning their health needs and problems. He could also conduct barangay assembly meetings every quarter to present health programs and projects and discuss with the community its health priorities, problems, and solutions. Interaction with city/barangay officials, concerned groups and staff. Besides submitting reports, a dialogue or meeting with the mayor may be done regularly. To interact with barang_ay captains and promote health concerns, the city health officer may also attend ABC meetings.

384

ManagingUrbanizationUndera DecentralizedGovernanceFramework

He may also initiate the creation of an interagency committee to discuss health and other concerns. Regular meetings (e.g., monthly or weekly) among the health personnel/workers may be conducted as part of the planning, monitoring and evaluation process. Adop_-Baran_y program for pr/vate cannpan/es Similar to Lapu-lapu City, other cities could also ask private companies to adopt barangays. The city health officer may present the needs of the barangays and identify the specific assistance the companies could provide such as holding of regular free medical clinics or milk or food contributions to the nutrition program.

Mobitixaaionofpra,at, pmeation

and mothers

The CHO may request private practitioners (doctors, nurses, midwives) in the barangays to render free services regularly (e.g., once or twice a month). The BHWs can assist by identifying the private practitioners who may be able to give such services. Health personnel could organize mothers' support groups in cities where these are nonexistent. Following such groups' organization, CHO resource persons can train mothers on health and sanitation concerns and identify specific ways by which they can assist, in health service delivery. Bara_ funding Just like in Lapu-lapu City, the barangays could give BHWs an allowance. The amount may depend on their financial capability. If the barangays can _afl_ordit, the allowance may be standardized.

Cities that lack water or would like to save on water can try using biological toilets. They can request Norfil Foundation, a nongovernmental organization that handled the setting up of biological toilets in Lapudapu City, to construct a similar facility or to teach how these units are made and maintained. Conclusion Having been awarded as the most accelerated city in EPI implementation in 1991, Lapu-lapu City is a good example to follow for low-ranking EPI performers. Like the former, they could examine

Case Study: Lapu-lapu City's Partnership for Health

385

the causes of their low performance and apply corrective measures. In the case of Lapu-lapu City, it fixed a regular schedule for EPI and doctors' visits, and encouraged the people to go to the BHSs. Causes of low performance may differ per locality but the first step is to identify them so that appropriate actions can be taken. Following Lapu-lapu City's example, health officers in other cities and local government units could achieve efficient and effective delivery of health services at minimum cost by knowing the people's needs through their interaction with them, as well as by communicating these needs to concerned city and barangay officials and by mobilizing various groups to provide material and manpower resources,

Case

Study7

Olongapo: A Health City Virginia S. Pineda and Aurora M.Joson

,Zambales. It is about 127 kilometers north of Metro Manila. O longapo City isonlocated at the of It is bordered the north by southernmost the Municipality portion of Subic (Zambales), on the south by Dinalupihan (Bataan), on the southeast by Morong (Bataan), and on the southwest by Subic Bay. The city has a total land area of 103.3 square kilometers. It is composed of 17 barangays, all of which are urban. As of 1995, it has about 38,983 households. The population decreased from 193,327 in 1990 to 179,754 in 1995 or by 7 percent. Accordingly, population density per square kilometer fell from 1,872 persons in 1990 to 1,740 persons in 1995. The population decline may be due to out-migration resulting from the US Navy's withdrawal from Subic and the Mt. Pinatubo eruption. As of 1994, about 28 percent of the population lived below the poverty threshold level. Health Facilities and Expenditure/Budget The city has one main health center, one government hospital, and eight private hospitals. It has 18 barangay health stadons (BHSs): two for Sta. Rita and one each for the remaining 16 barangays. Each barangay has a doctor, nurse and midwife. Large barangays even have three midwives. A dentist comes to the barangays once a week. The city government owns and operates the James Gordon Memorial Hospital (formerly the Olongapo City General Hospital). It has a capacity of 155 beds and serves not only patients from the city but also those from the neighboring municipalities and provinces. The private hospitals have a combined capacity of 156 beds. All services and medicines are free in the health center and stations. For those who want to give contribution, a donation box is placed in each site. in the hospital, most of the patients are service (charity) patients. Of the 7,438 patients admitted in 1995, the service patients comprised 76 percent, while medicare and pay patients constituted 11 and 13 percent, respectively.

Case Study: Olongapo - A Health City Table

1. Mortality

and Nutrition

Indicator Mortality Rates: Infant Child Maternal Percentage of Malnourished Children (0-83 months old) Mild Moderate Severe Total

389

Indicators, 1990

1990

and

1995 1-_5

Olon_apo

Pbillpplne_

Olongapo

Philippines

41.2 54.0 184.0

56.7 79.6 209.0

30.9 40.2 138.0

48.9 66.8 179.7

33.9 9.9 1.1 44.9

41.3 15.5 2.3 59.1

28.1 8.3 1.4 37.8

30.7 8.4 1.2 40.3

Herrin, A. "Beyond 2000: An Assessment of the Health, Nutrition and Education Sectors, 1992-1996," 1998 ('Unpublished PIDS Paper); National Statistical Coordination Board; Olongapo City Health Office; Department of Health Nutrition Service.

Disease prevention through cleanliness Olongapo's city leaders believe that diseases can be avoided or minimized through cleanliness. After the city launched its solid waste management project in September 1989, sanitation-related diseases were remarkably reduced. For instance, morbidity rates (per 100,000 population) for typhoid, paratyphoid and other salmonella infections declined from 75.2 in 1988 to 59.8 in 1990 and 9.3 in 1995, and for malaria from 345.3 in 1988 to 183.9 in 1990 and 68.5 in 1995. Olongapo City's solid waste management project is discussed in more detail as a case study in the environmental management sector. Briefly, it involves enforcement of the tbllowing: putting garbage in plastic bags, strict collection schedule, service fee for garbage collection, incorporation of said fee in the electricity bill, and imposition of fines for violators of sanitation ordinances. Plastic bags are required to make garbage collection faster and neater. Likewise, the inclusion of a garbage fee in the electricity bill facilitates and ensures garbage collection. The. CHO plays a major role in the solid waste management project. Its sanitary inspectors regularly inspect their assigned areas and issue citation tickets to residents and owners of business establishments

who violate sanitation

ordinances

(such as having

390

ManagingUrbanizationUndera DecentralizedGovernanceFramework

unclean premises and putting out garbage outside of the scheduled collection time). The tickets impose fmes ranging from PS00 to P5,000 (or imprisonment), depending on the number of offenses or violations.

Olongapo has a city ordinance, passed on 24 January 1996, requiting barangays to allocate 5 percent of their internal revenue allotment (IRA) to health and welfare. Drug allocation to the barangays are sourced from this fund, thus reducing the financial burden on the city. This arrangement also increases the involvement of barangay leaders in health service delivery. Mobilization of volunteers Olongapo is known for the volunteerism of its people. It even won a Galing Pook Award in 1997 (Top Twenty) for its volunteer program. One of the city's volunteer groups is the Balikatan Ladies of Olongapo Movement (BLOOM), which was organized by Mayor Kate Gordon in 1980. BLOOM is composed mosdyof housewives in the community. At present, it has more than 6,000 members. It participates in the city's cleanliness drive and undertakes various barangay projects. Its members who also serve as health volunteers work without pay as nursing aides in the city hospital, assist the health workers in immunization drive and in organizing and conducting health classes. Olongapo City's health volunteers, including nonBLOOM members, are about 300. They do not receive allowance but are provided with hospitalization benefits. Perforn_nce monitoring through meetings In addition to reports, monthly staffmeetings and semi-annual review of accomplishments are conducted to monitor and evaluate the barangays' performance. Here, causes of low accomplishments and appropriate solutions are identified. For example, if a barangay has many dropouts in immunization, follow-ups through letters or house visits are recommended. Baran_uy con.ridtat/on w/th the mayor and department heads Mayo r Kate Gordon does not spend most of her time in her office because she believes that not all people can go to the city hall. To actually see their situation and needs, the mayor goes to the

Case Study:Olongapo- A Health City

3 91

harangays with all the department heads. All the 17 barangays are visited within one quarter. During the barangay consultations, the people tell the mayor their problems and needs. The department head concerned is then tasked to take action and start working on these issues the following day: The people then report back to the mayor in case the problems remain unsolved. Key Elements

for Success

Effea/veten.t/on anataw The barangays' financial contribution to health (5 percent of their IRA) was made compulsory through a city ordinance. The city government also enacted sanitation ordinances and used both negative and positive reinforcements to ensure the people's compliance with its regulations. To promote cleanliness, sanitary inspectors do their rounds everyday and impose fines on violators of sanitation ordinances. Garbage is not coUected unless iris putin plastic hags. Payment of garbage fees is guaranteed by incorporating them in the electricity bill. Positive reinforcements include posting of _Keep Olongapo City Clean" slogans and implementation of a regular, fixed garbage collection schedule.

0r/p's

$or

po#U's

Volunteerism is encouraged by giving the volunteers (or their qualified relatives) priority in job placement. To a large extent, the city officials were able to gain the people's cooperation as well as know their needs and problems by reaching out to them--through regular barangay visitations and interaction.

among concerned of[w/a/s and staff

Monthly and semi-annual meetings to review and compare accomplishments among the barangays enable them to identify low performers, discuss and analyze problems, and devise solutions and strategies.

Strategies That Can Be Replicated Disease prevention through cleanliness Specific practices of Olongapo City that can be emulated by other cities include requiring residents to put their garbage in plastic

392

ManagingUrbanizationUndera DecentralizedGovernanceFramework

bags, incorporating the garbage fee in the electricity bill, regular monitoring of residential and business premises by sanitary inspectors, and imposing fines for violators of"sanitation ordinances. Barangay funds for health Other cities may also require barangays to allocate a certain percentage of their IRA for health and welfare concerns. The percentage may be set in consultation with the barangays. Performance monitoring and evaluation Regular monthly and semi-annual meetings may be scheduled to review and compare accomplishments among the barangays and the whole city. Meetings, in addition to submission of reports, have benefits. Through them, the officials and staff concerned could analyze the problems, exchange views, generate ideas, and devise solutions and strategies to further improve performance. Mobilization of health volunteers If there are no existing health volunteer groups, the cities could form an organization similar to Olongapo's BLOOM. They could assign people who can motivate and undertake the recruitment and training of health volunteers. Barangay consultation with city officials The mayor and other city officials could make it their policy to visit each barangay regularly. During the visits, they could discuss with the people the latter's problems and needs. The mayor can then assign the officials concerned to take appropriate action or work out with the people the solution to the problems. Conclusion Olongapo City made the link between health and sanitation stronger by integrating its environmental program with health activities. It hasbecome a healthy city as a result of its leaders' political will and commitment to good health and sanitation, the dedication of its staff, and the cooperation of its people. Its health-promoting strategies also serve as lessons on good governance that other cities could follow. These include the need for city leaders to interact regularly with their constituents, the use of positive and negative reinforcements to instill discipline and proper values to people, and regular monitoring and evaluation to ensure sustained and successful implementation of programs and activities.

Case

Study

Butuan City: A Consistent Regional Outstanding Winner in Nutrition Virginia S. Pineda andJazmin D. Berido uman City is located at the central portion of the province o: Agusan del Norte in northern Mindanao. It is bounded oi the north by the Butuan Bay and the municipality o Cabadbaran, on the east by the municipality of Sibagat, on the wes by Buenavista and on the south by Las Nieves. The city has a total land area of 526.3 square kilometers. It i.. composed of 86 barangays, of which 27 are urban and 59 are rural. P_ of 1995, it has about 46,596 households. In 1990, the city population was estimated at 227,829 persons Of these, 40 percent live in the urban areas while 60 percent resid_ in the rural barangays. By 1995, the population increased to 247,07_ persons orby 8 percent (National Statistics Office Census). Populatioi density per square kilometer also went up from 433 in 1990 to 470 il 1995. The proportion of population living in urban areas decreasec slightly to 38 percent while that in rural areas rose to 62 percent. Health Facilities and Expenditure/Budget Butuan City has three main health centers, 27 urban baranga, health stations (BHSs) and 59 rural BHSs. It has two governmen hospitals and six private hospitals. The city owns and operates thq City General Hospital and Medical Center, which has a capacity o 150 beds. The other government hospital, the Provincial Hospital o Agusan del Norte, has a capacity of 100 beds. In addition, the city'.. six private hospitals have a combined capacity of 521 beds. Th_ hospitals serve not only patients from Butuan City but also those fron other municipalities. In 1991, prior to devolution, Butuan City's health expenditure_ amounted to P12.3 million, which constituted 10 percent of its tom expenditures. Of this, about 34 percent was spent for basic healtt

394

ManagingUrbanizationUndera DecentralizedGovernanceFramework

and 66 percent ibr hospital. In 1994, after the devolution of functions, health expenditures increased to P27.5 million, which was 10 percent of the city's total expenditures. The proportion spent for basic health increased to 43 percent while that for hospital declined to 55 percent. The city government's budget for health in 1995 was P29.1 million (or 8 percent of the total city budget). About 54 percent of the health budget was allocated for hospital and 46 percent for basic health, nutrition, and miscellaneous health services. Health

Performance

Butuan City's infant and child mortality rates have been declining and are lower than the average for the whole country in 1990 and 1995. Its maternal mortality rates, although decreasing, have been higher than the national average for the same years (Table 1). Nevertheless, the reduction in the city's maternal mortality rates (50 per 100,000 live births) was greater than the average for the Philippines (29 per 100,000 live births) from 1990 to 1995. Similarly, the percentage of the city's malnourished children fell significantly from 58 percent in 1990 to 32 percent in 1995, both lower than the national average for the same years. Table 1. Mortalityand Nutrition indicators, 1990 and 1995 Indicator

1990 Butuan City

Mortality Rates: Infant Child Maternal

Percentage of Malnourished Children (0-83 years old) Mild Moderate Severe Total

1995 Philippines

Butuan City

Philippines

45.9 65.0 251.3

56.7 79.6 209.0

36.7 52.2 201.0

48.9 66,8 179.7

43.6 13.7 1.1 58.4

41.3 15.5 2.3 59.1

26.5 5.0 0.4 31.9

30.7 8.4 1.2 40.3

Infant mortality: infant deaths per 1,000 live births. Child mortality: number of deaths among children less than 5 years of age per 1,0OO children of the same age range. Maternal mortality: number of maternal deaths per 100,000 live births. Sources: Herrin, A. 1998. Beyond 2000: An Assessment of the Health, Nutritional and Education Sectors, 1992-1996 (Unpublished PIDS paper); National Statistical Coordination Board; Butuan City Nutrition Office; Department of Health Nutrition Service.

Case Study:Butuan City - A ConsistentWinner in Nutrition Nutrition

395

Activities

The Philippine government's measures to address the malnutrition problem include food assistance, micronutrient supplementation and ibrtification, growth monitoring and promotion, nutrition education, home and community food production, and credit assistance for livelihood. Butuan's Nutrition Committee is in-charge of these activities for the city. It is chaired by the mayor and members meet once every quarter. Its composition and the tasks per member are presented in Table 2. Table 2. Composition of the Butuan City Nutrition Committee Agency

Activlty/responsibillty

Department of Interior and Local Government (DILG)

Reactivation Committees

City Health Office

Rehabilitation micronuu_ient

(CHO)

of Barangay Nutrition Committees are funded by the barangays) of malnourished children; supplementation

(the

In-charge

City Social Welfare and Development

Livelihood funding for family with malnourished child/children (poverty cases) ; Supplemental feeding

Office of the City Agriculturist

Food production/food

Department of Education, Culture and Sports (DECS)

Nutrition education using TCP (Teacher, Child, Parent) approach. The teacher imparts nutrition information in class, which the children echo to the

security

parents. Food assistance program for children, Food production in schools City Budget Philippine Agency

Office Information

City Population Butuan

Allocation

Office

Host Lions Club

of funding

Assistance in nutrition through the tri-media Population

e.g., hot lunch

for nutrition information

control and population

dissemination

education

Food assistance through feeding in the bm-angays and distribution of food commodities Responsible for training the Barangay Nutrition Scholars in Vitamin A deficiency and eye cataract detection

Catholic Women's Source; Butuan

League

City Nutrition

Feeding activities for disabled hospitalized children Office.

persons, prisoners

and

396

ManagingUrbanizationUndera DecentralizedGovernanceFramework

Butuan City has a separate City Nutrition Office (CNO). Headed by the City Nutrition Officer, the CNO acts as the Secretariat to the Butuan Nutrition Committee and serves as the coordinating office for all nutrition program activities. The CNO has two assistant nutritionists, each of whom is assigned to 43 barangays. In every barangay, there is a feeding center and a barangay nutrition scholar (BNS). Each BNS receives a monthly amount of P400 from the city plus allowance from the barangay (the amount varies per barangay). The barangays are grouped into 10 clusters. Each cluster's members meet once a month. All 10 clusters also hold a monthly general meeting wherein the BNSs discuss plans, problems, and program implementation. The BNSs serve as contact persons for almost all city activities on nutrition, agriculture, social welfare, health, education, and population. The CNO and the Department of Interior and Local Government (DILG) provide at least two training/seminars per year to BNSs to equip them with necessary skills in program management and basic information on nutrition program planning and implementation in the barangays. With the supervision of Barangay Nutrition Committee members, the BNSs hold nutrition seminars in the barangays. Aside from teaching proper nutrition, the seminars also deal with responsible parenthood. Because malnutrition is most likely present when there are many children to feed and family income is low, the parents are advised to limit the number of their children. Otherwise, the share of each child in the food and other provisions gets smaller as the number of children increases. Mothers of malnourished children are required to attend nutrition seminars at least twice a year. If they fail to do so, their children are not given milk. Every month, the BNSs weigh the children. Simultaneously, they provide information on proper nutrition to mothers. The BNS also conduct regular home visits once a month. During their visits, they hold a dialogue with residents regarding the different programs and projects offered by the city government. The BNSs campaign fbr food production through barangay assemblies, meetings and mothers' classes. They encourage backyard gardening or even planting in the mountains if backyard space is not available. In every barangay, an agricultural officer is assigned to assist farmers. To enable farmers to buy pre- and post-harvest equipment (power tillers and threshers), the mayor provides interest-free loans.

Case Study:ButuanCity - A ConsistentWinnerin Nutrition Table

$. Malnutrition

Percentage

in Butuan

City

of Malnou_dled Children

(0-83 months old)

397

and in the Philippines 1_6

Butmm City

1997 Philippics

Butuau

Phifipplnes

cat,/ Mild Moderate Severe Total Sources: Butuan City Nutrition

24.0 4.4 0.4

28.5 8.3 1.3

22.5 3.6 0.3

26.2 6.6 0.9

28.8

38.1

26.4

35.7

Office and Department

of Health Nutrition

To monitor performance, the BNSs use a nutritional status table. The spot map indicates which many moderately, mildly, or severely malnourished nutritional status table presents a yearly comparison and percentage of children with severe, mild, malnutrition.

Office

spot map and barangays have children. The of the number and moderate

Butuan City was a CROWN (Consistent Regional Outstanding Winner in Nutrition) Awardee in 1996 and 1997. The city showed outstanding performance, having lowered the malnutrition incidence among children from 29 percent in 1996 to 26 percent in 1997 as compared with the national averages of 38 and 34 percent, respectively (Table 3). Butuan City's budget for nutrition (including milk) amounted to P2.3 million in 1997, which constituted 0.46 percent of the total city budget. For its livelihood program, Butuan City has allotted P4 million. Furthermore, its P50,000 CROWN prize was loaned to 25 families coming from the top 20 barangays with the highest malnutrition incidence and from the top five nutrition program implementors. The loans are used for livelihood projects, such as sari-sari stores and mushroom/bromeliad growing. These loans are interest-free and payable after two years. Strategies to Overcome Malnutrition The city is actively implementing the government's :holistic approach to the malnutrition problem. In addition, it has its own local strategies that contributed to its outstanding performance in nutrition:

398

ManagingUrbanizationUndera DecentralizedGoverna_

Use of fresh milk Butuan City uses milk instead of Nutripak for feeding. According to the city nutrition officer, milk is more convenient since it is ready to drink and can be taken on-site. In contrast, Nutripak, which contains mongo and d//_ (anchovies), has to be cooked at home. It is also hard to monitor if Nutripak was fed to the malnourished child only or served as food for the whole family. Malnourished children are weighed every month and fed milk everyday until the normal weights are achieved. The BNSs distribute to pur0h leaders a specified quantity of milk based on the number of malnourished children. As a control measure, the parents' signatures are required to certify that their children drank the milk. Butuan City began to use fresh milk for feeding in 1993 after the phase out of the United States' food commodity provision under Public Law 480. Initially, it sourced fresh milk from a farmers' cooperative in another city. However, there were problems encountered in this arrangement. The milk had to be consumed immediately to avoid spoilage. Storing it in the freezer extended its shelf life but many complained that it was too cold to drink. Children also got diarrhea from drinking the milk. The city nutrition office was able to solve this problem by shifting to liquid milk from Australia. Such milk can be stored up to nine months and was cheaper than local milk by 10 percent. The city spent P1.4 million for milk in 1997. For 1998, its approved budget for milk was P1.5 million. But since milk provision was a temporary project, the BNSs told mothers not to depend on it. Rather, the mothers were reminded to apply what they have learned from nutrition seminars on the right kind of food to feed their children. Barangay Nutrition Committee program planning seminars Butuan City Nutrition personnel and DILG staff conduct nutrition program planning seminars with barangay leaders. They compare the nutritional status of the purok in the barangay and guide the leaders in making their own plans for each quarter by asking them to identify problems, think of solutions, look for funding sources if needed, assign people to handle problems, and make a timetable of activities.

Case Study:ButuanCity -.A ConsistentWinner in Nutrition

399

Searchfor Bulawanong (Golden) Bamngay Butuan City conducts an annual "Search for Bulawanong (Golden) Barangay." Every quarter, the performance of the barangays is evaluated using the following criteria: food production, clean and green, barangay record keeping, decrease in malnutrition, presence of herbal and communal garden, livelihood program, primary health care activities, barangay nutrition projects, presence of garbage receptacles, sports facilities, availability of a drug abuse prevention program, parents-teachers assembly, maintenance of barangay facilities (such as health stations), and awards and citations for the past two years. Awards for each winner (an urban barangay and a rural barangay for each prize) amount to P100,000 for the first prize, P75,000 for the second prize, and P50,000 for the third prize.

and

ofworst

The barangays are ranked based on the number of malnourished children. During Association of Barangay Captains meetings, the names of the barangays that topped the list in terms of malnutrition are announced. The problems of these worst-performing barangays and appropriate actions to deal with them are discussed accordingly.

_are-Food Project Under the Share-Food Project of Barangay Golden Ribbon, welloff families sponsor malnourished children by feeding the latter for three months. As a result, the problem of severe malnutrition was eradicated. At present, the project concentrates on moderately and mildly malnourished children. The other four barangays in the city are likewise replicating the project to help overcome their own malnutrition problems. Key Elements

for Success

A_l_ of holistic apprm_h The city nutrition office realizes that the feeding project provides only immediate and temporary solution to malnutrition. The problem will remain and even worsen if its underlying causes are not addressed. Butuan City has identified the root causes as poverty/ unemployment, mothers' lack of knowledge, and the large number of children per family. It addressed these problems through livelihood projects, food production, nutrition seminars, and dissemination of

400

ManagingUrbanization Undera DecentralizedGovernanceFramework

the advantages of responsible parenthood. Furthermore, its "Search for the Golden Barangay" covers a wide range of concerns, thereby promoting cooperation from barangay leaders and their constituents in the implementation of nutrition, health, cleanliness programs, and other projects. Planning During program planning seminars and meetings between nutrition personnel and barangay leaders, problems and causes of low performance are identified. Thereafter, specific plans and measures to deal with such problems are brought up to help improve the barangay performance for succeeding periods.

o/te f00al.g When food for malnourished children has to be cooked at home, as in the case of Nutripak, it is possible that the food is not. taken exclusively by the malnourished children but instead, is shared with other family members with no nutrition problems. Use of ready-todrink milk enables on-site feeding, which ensures that the target beneficiaries are the ones fed.

Rg,,iti

ofout nding ,,ndwontp,-fonn

Competition for the Golden BarangayAward motivates barangay leaders and constituents to give their best performance. Likewise, because ranking and announcing the names of worst performers are embarrassing, leaders and their constituents are prompted to do better next time. _hip and _ of city officials The leadership provided by the mayor and the rest of the Butuan City Nutrition Committee, together with the active and sustained implementation of activities by the officials and staff of the City Nutrition Office, resulted in the city's outstanding nutrition performance. The city officials' commitment to overcome the malnutrition problem is likewise reflected in the funds allocated for nutrition-related activities, such as milk feeding

and livelihood

projects.

Case Study:ButuanCity- A ConsistentWinner in Nutrition Strategies

401

That Can Be Replicated

Barangccy Nutrition Progrmn planning seminars The Nutrition Office and DILG personnel could initiate nutrition program planning seminars in every barangay. Initially, they could assist the barangay leaders in making quarterly nutrition plans and reviewing the accomplishments. This may be done by asking the leaders to.identify problems, devise solutions, specify funding sources if necessary, assign people to handle the problems, and make a timetable for accomplishing tasks. I_ of outstanding performers and worst performers Other cities may also launch their own contest for the most outstanding barangay. Cash prizes for winners will have to depend on the financial capability of the city. Buman City's criteria for "Golden Barangay" may also be used or modified by these cities. Barangays with the most number of malnourished children may also be identified and ranked. Meetings with these barangays may be set up to discuss problems, identify solutions, and come up with ways to improve their performance. Share-Food Project Barangay officials can request well-off families to sponsor the meals of malnourished children for a certain period.

Useof

food

On-site feeding may be done using milk or other ready-to-eat food. Instead of allowing the food to be taken home, the barangay can opt to cook the food collectively in feeding centers, with mothers taking turns in cooking. Some cities may not have the resources to provide credit for livelihood projects. They could search for possible loan sources such as nongovernment organizations (e.g., Tulay sa Pag-Unlad, Technology and Livelihood Resource Center or TLRC conduits) and disseminate these information to the people. Moreover, they could also encourage people interested in livelihood projects to pool their resources together: In such system called "paluwagan," the participants regularly

402. ManagingUrbanizationUndera DecentralizedGovernanceFramework contribute money into a common fund, and then take turns receiving the total collection for a specified period. To discourage delinquency and fund misuse, initiators could impose a punishment to members who remissed on their payment or used the money for other purposes. Conclusion In dealing with the malnutrition problem, the Philippine government has adopted a holisdc approach through food assistance, micronutrien t supplementation and fortification, nutrition education, food production, and credit assistance for livelihood programs. The extent of the implementation of such method, however, differs for each local government unit (LGU). Butuan City can be considered a model city as it actively applied the holistic approach and even initiated additional strategies to address its own malnutrition problem. Its CROWN Award is proof of its outstanding nutrition performance. Following Butuan City's example and replicating its relevant strategies would help improve the nutrition performance of other cities and LGUs in the country.

About theAuthors Raul S.Anlocotan is Supervising Economic Development Specialist of National Economic and Development Authority (NEDA) Regional Office VI (Western Visayas). Amaster's degree holder in business management from the University of the Philippines, his expertise is project development. He is also a faculty member of the Graduate School of the University of San Agustin in Iloilo City where he teaches economics, business administration and strategic planning. Casimira V. Balandra is the Regional Director of NEDA Regional Ofrice X (Northern Mindanao). She holds a master's degree in Economics from the Notre Dame University and a Graduate Diploma in Integrated Regional/Rural Development Planning from the Development Study Center, Israel. She has written guides on population development integration in land use planning and on the integration of gender concerns in regional and local planning. She has likewise authored a number of papers on the competitiveness of Cagayan de Oro City. Jazmin D. Berido is Economic Development Specialist II of NEDA Regional Office XIII (Caraga). She is especially involved in information and advocacy activities, being her office's information officer-designate. She has a bachelor's degree in Development Communication from Xavier University, Ateneo de Cagayan. Rosemarie O. Buan is Supervising Economic Development Specialist of NEDA Regional Office V (Bicol). She finished AB Sociology from the University of the Philippines. Her interests include social development planning including population/women and development, and social mob'dization work. Carmel P. Chammag is Senior Economic Development Specialist of NEDA-CAR (Cordillera Administrative Region) office. She has a bachelor's degree in Economics from the University of the Philippines (UP) School of Economics and a master's degree in Social and Development Studies from UP CoUege-Baguio. She spedalizes in socioeconomic and physical planning.

Clark Y. Clarete is formerly the regional development coordinator of the health subsector for Region X (Northern Mindanao). H_efinished Master of Engineering in Natural Resources DeVelopment and Management at the Asian Institute of Technology, Bangkok. Currently, he is the Chief Economic Development Specialist of the Macro Inter-sectoral Coordination and Assistance Division of NEDA Regional Office X. Aurora M. Joson is Chief Economic Development Specialist of NEDA Regional Office III (Central Luzon) where she heads the Social Development Division. She has a master's degree in Urban and Regional Planning from the University of the Philippines. Her expertise is regional planning. John ny T. Lim is the Chief of the Technical Division of NEDA Regional Office XIII (Caraga). He holds a master's degree in Economics from the University of Wales, United Kingdom. He specializes in social planning and epidemiology. Mal Lourdes (Sittie Mariam) D. Lira, A1Haj is the Regional Director of NEDA Regional Office XII (Southern Mindanao). She is a Ph.D. candidate in Economics at the University of the Philippines. She has been involved in regional socioeconomic development as well as in physical planning, investment programming, monitoring and eyaluation, and in peace and development efforts in conflict areas of Southern Philippines. She is the Vice-Chairperson of the Regional Development Council for Southern Mindanao. Rosario G. Manasan is a Senior Research Fellow at the Philippine Institute for Development Studies (PIDS). She holds a Ph.D. in Economics from the UP School of Economics and pursued postdoctoral studies at the Massachusetts Institute of Technology. She specializes in public finance and fiscal policy and has written and published numerous studies on these areas. She has also served as adviser andconsultant to many government, international and private institutions. Ruben G. Mercado, a Research Associate at PIDS, has written and published studies on regional and urban development, public ,finance, and population and development. He has a master's degree in Policy Analysis from Saitama University, Japan, as well as in Demography from the University of the Philippines. He also received a Post-Graduate Diploma in Development Economics at the Institute of Developing Economies Advanced Schoc

Virginia S. Pineda was formerly a Research Associate at PIDS. She has a master's degree in Economics from the UP School of Economics. She has written studies on international trade, health economics, public finance and governance. Ross O_ Quisao Â˘urrendy works with the International Labor Affairs Service, Department of Labor and Employment as Senior Labor and Employment Officer. Previously, he worked as Research Analyst at PIDS. His research interests include the role of the Catholic Church and other nongovernment organizations in Philippine society, decentralization and Philippine foreign policy. He has masteral units in Philippine Studies (major in Development Studies) from the College of Liberal Arts, De La Salle University-Taft. Anicia C. Sagos was formerly Senior Research Specialist at PIDS. Currendy, she works at the Asian Development Bank as Technical ConsultanL She finished BS Social Science at the University of the Philippines and also took up the Program in Development Economics at the UP School of Economics. She is finishing her M.A in Urban and Regional Planning also at UP. Victor R. Ubaldo, a licensed engineer, is Chief Economic Development Specialist at NEDA Regional Office III (Central Luzon) and formerly at NEDA Regional Office V (Bicol). He has a master's degree in Rural Resources and Environmental Policy from the University of London, and a bachelor's degree in Agricultural Engineering from the University of the Philippines-Los Bafios. His areas of expertise include environmental impact assessments, strategic planning, and physical and land use planning.