Improving Local Service Delivery: a National Call

PHILIPPI NE INSTITUTE FOR DEVELOPMENT STUDIES Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas

Vol. XXVIII No.3

Editor's Notes One way of achieving the Millennium Development Goals (MDGs) is to improve the delivery of basic social services, specifically to the poor. In a decentralized setting such as the Philippines, one cannot argue that the success of local service delivery depends largely on the local institutions, policies, and ample funding.

For this issue of the Development Research News, we look into how MDG-related social services such as education, health, and water are delivered in the context of decentralization. Discussing the highlights of a joint study by the Philippine Institute for Development Studies and the United Nations Children's Fund, the lead feature presents a useful way of understanding the country’s level of achievement of the MDG targets.

In particular, the joint study on “Improving Local Services Delivery for the MDGs in Asia: The Case of the Philippines” argues that improving local service delivery (LSD) is about improving people’s lives. It is premised on the idea that better provision of public goods and services is a prerequisite to realizing human capabilities, thus expanding human freedoms and enhancing human lives for a better society. DRN

What's Inside 17 Global threats, regional solutions 20 PIDS study reveals trends and prospects in Philippine international migration 22 Full employment: key to economic stability

DEVELOPMENT RESEARCH NEWS May - June 2010

ISSN 0115-9097

Improving local service delivery: a national call T

en years ago, the Philippines, along with 146 other nations, signed a commitment to achieve the Millennium Development Goals (MDGs) of 2015. The MDGs is a set of eight objectives that are meant to be achieved in order to attain human development.

Today, with only five years left before the deadline, preliminary findings of the Fourth Philippine Progress Report on the MDGs show that the country still has a lot to accomplish in order to achieve the MDGs, specifically in the areas of eradicating extreme poverty and hunger (Goal 1); achieving universal primary education (Goal 2); ensuring maternal health (Goal 5); and ensuring access to potable water supply (Goal 7).

The passage of Republic Act 7160 or the Local Government Code of 1991 gave the local government units (LGUs) the autonomy to become self-reliant and be the government’s partner in the achievement of the country’s goal for full development. As such, and being in the grassroots, LGUs are in the best position to provide the necessary local services delivery (LSD) to achieve a better quality of life for Filipinos, particularly the poor.

The country’s current standing in its fulfillment of the MDGs of 2015, however, shows that there is no clear sign that devolving LSD to the LGUs has improved. Moreover, it can also be inferred that gains have remained insufficient.

In the context of attaining the MDGs, the Philippine Institute for Development Studies (PIDS), in cooperation with the United Nations Children’s Fund (UNICEF), conducted a study on “Improving Local Services Delivery for the MDGs in Asia: The Case of the Philippines,” to address the need for major improvements in the delivery of public goods and services, particu-

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May - June 2010 dress the policy, institution, and finance challenges that LSD hurdles.

The study focused on education, health, and water in view of these sectors’ critical role in achieving better human development and in order to provide the environment for a more focused and detailed analysis on how decentralization is still a primary means in improving LSD. The results then underscored the success and failures of LSD within a decentralized setting. From the sectoral analyses, appropriate policy agenda were derived for the needed major improvements to be done in the delivery of public goods and services.

The study focused on education, health, and water in view of these sectors’ critical role in achieving better human development. (Photo: Michael Cabalfin)

larly for the poor. A seminar on the same topic was held at the Carlos P. Romulo Hall of the NEDA sa Makati Building on June 15, 2010 to share the results of the said study and highlight the state of the country’s LSD, especially in meeting the MDGs of 2015.

Cognizant of the crucial role the local communities play in the development process, PIDS President Dr. Josef T. Yap, in his welcome remarks, shared that the Institute’s policy research programs are geared toward local executives and other local stakeholders in order to help them achieve better outcomes for the people.

On the other hand, Mr. Colin Davis, Deputy Country Representative of UNICEF, stressed that “the goals of the MDGs are not the goals of the United Nations, or of the UNICEF’s, but the goals of the Philippine government for its people. The MDGs of 2015 should be a promise fulfilled for the Filipino people.”

PIDS Senior Research Fellow Dr. Danilo C. Israel, one of the authors of the study, said that local chief executives (LCEs) are crucial for LSD to thrive in a decentralized setting. He added that better outcomes for development can only be achieved if LCEs ad-

The study was conducted in Dumaguete City in Negros Oriental and the municipalities of Bayugan, Prosperidad, and Sibagat in Agusan del Sur province. These areas were chosen as study sites for their structure (i.e., rural and urban) and their location in the southern part of the country (i.e., Visayas and Mindanao). The study also benefited from consultations with key informants and stakeholders in the local sector as well as the survey respondents and participants in the focus group discussions.

Sectoral perfor mance Education Republic Act 5155 or the Governance of Basic Education Act directs the transformation of basic education policy into programs, projects, and services that are adapted to local needs. Schools and learning centers now have the authority to decide for the best interest of the school and students. It also gives school teachers and staff flexibility in the service and initiative for school improvement.

School-based management (SBM) in all public schools in the country, on the other hand, was set by the Department of Education (DepEd) to help empower schools and their communities to advance student learning.

Through the SBM, the formerly centralized structure of decisionmaking has been delegated to the individual schools. As such, all stakeholders from school officials to parents and the communities as well as the LGUs work together to support the creation and

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maintenance of better schools for the students.

mary education by 2015 for the fulfillment of the MDGs.

To achieve the education for all (EFA) goals, meanwhile, the Basic Education Sector Reform Agenda (BESRA) was put into fore.

One of the key reform thrusts of the BESRA is to continuously improve all schools in the country. This entails the institution of a school governing council as well as the development of a school improvement plan to address school needs.

In the survey areas of Agusan del Sur and Dumaguete City, the former has a lower elementary net enrolment rate than the latter.

On the other hand, females have higher participation in the elementary level compared to males in the national level. This result is shared by the Central Visayas Region where Dumaguete is located. Meanwhile, elementary net enrolment in Caraga Region, where Agusan del Sur is a part of, showed a somewhat higher participation of males compared to females.

Proactive, dedicated, and accountable institutions are needed to address the growing issues and challenges in the education sector. One of which is the country’s low elementary net enrolment rate of 83.22 percent in school year (SY) 2006–2007, down from the previous 90.29 percent in SY 2000–2003.

Because of this, the country needs to focus more efforts in addressing the challenges in education in order to achieve universal pri-

In general, secondary net enrolment rate has declined from 59 percent in SY 2002–2003 to 58.59 percent in SY 2006–2007 (Table 1 ).

Net enrolment rate in Dumaguete City is a little higher compared to the region where it belongs while net enrolment in Agusan del Sur is similar to the Caraga Region which is lower compared to the rate at the national

Table 1. Secondary participation rates (SY 2002–2004, SY 2006–2007) Region / Division

Gross Enrolment Ratio

Net Enrolment Ratio

(GER), % Philippines

(NER), %

GER

2006

2002

2006

2002

2006

2002

2006

Total (MF)

83.55

79.50

59.00

58.59

1.09

1.08

1.17

1.08

Male (M)

80.18

76.44

54.39

53.85

Female (F)

87.00

82.62

63.72

63.44 1.07

1.08

1.20

1.08

0.99

1.02

1.09

1.02

1.12

1.12

1.26

1.12

1.15

1.18

1.28

1.18

Total (MF)

86.29

79.31

57.30

53.86

Male (M)

83.21

76.17

52.20

48.26

Visayas

Female (F)

89.43

82.51

62.50

59.56

Total (MF)

78.34

75.70

53.06

54.14

Male (M)

78.67

75.02

50.85

49.52

Female (F)

78.00

76.40

55.31

58.86

Dumaguete City

Caraga

Total (MF)

76.01

69.97

49.77

48.89

Region

Male (M)

71.68

65.96

44.07

43.64

Female (F)

80.47

74.09

55.64

54.30

Total (MF)

64.99

61.12

43.11

48.86

Male (M)

60.58

56.09

37.88

43.62

Female (F)

69.59

66.34

48.55

54.30

Agusan del Sur

NER

2002

Central

VII -

Gender Parity Index

Source of data: Basic Education Information System, DepEd Agusan del Sur and Dumaguete City divisions.

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May - June 2010 experienced decreased dropout rates. Still, dropout rates in Central Visayas continue to be higher than the national average, but not in the case of Dumaguete City. The dropout rates in Caraga had become lower than the average in the country, but not in Agusan del Sur.

The Philippine Institute for Development Studies (PIDS) and the United Nations Children’s Fund (UNICEF), in collaboration with the Australian Government Overseas Aid Program (AusAid), held a discussion forum titled “Improving Local Services Delivery for MDGs in Asia: the Case of the Philippines” on 15 June 2010 at the C.P. Romulo Hall of the NEDA sa Makati Bldg., in Makati City. The forum was highlighted by a presentation by Dr. Danilo Israel (extreme right), Senior Research Fellow at PIDS, on the integrative report of the study on the condition of local service delivery (LSD) in the Philippines. With Dr. Israel are (L-R): UNICEF Social Policy Specialist Dr. Augusto Rodriguez; PIDS President Dr. Josef T. Yap; and UNICEF Deputy Country Representative Mr. Colin Davis. (Photo: Gizelle Manuel)

level and Central Visayas Region. Again, enrolment among females is higher than males in the secondary level. However, gender disparity in Dumaguete City is lower compared to the region while in Agusan del Sur, it is much higher.

Promotion, dropout, and achievement rates comprise basic education outcomes. The average promotion rate in elementary has declined from 95 percent in 2003 to 91 percent in 2007. The Caraga Region also saw a decline in the promotion rate from 95 percent to 89 percent over the same period. In contrast, promotion rate in Central Visayas has improved, though slightly, from 89 percent to 90 percent. In Dumaguete City, promotion rate is higher and improved a little from 94 percent to 96 percent. For Agusan del Sur, the average promotion rate decreased from 93 percent in 2003 to 86 percent in 2006.

In 2003, dropout rate at the national level declined from 1.37 percent to 1.26 percent in 2006. Both Caraga and Central Visayas

Table 2 shows the promotion and dropout rates in the secondary level which rose from 86 percent in 2003 to 89 percent in 2006.

Promotion rate in Central Visayas had been lower and improved much slower than that in the country as a whole. However, in Dumaguete City, a significant improvement in the promotion rate from 79 percent in 2003 to 90 percent in 2006 occurred. Promotion rate in Caraga Region was higher than the national average in 2003, but it experienced a decline and is already lower than the country’s average. Promotion rate in Agusan del Sur improved slowly and had been outdone by most of the country’s provinces.

Between 2003 and 2006, the average dropout rate in the secondary level increased.

Central Visayas had a dropout rate increase from 7 percent in 2003 to 14 percent in 2006.

However, in the case of Dumaguete City, dropout rate even decreased to 6 percent.

Both Caraga (5.5%) and Agusan del Sur (6%) had stable dropout rates.

In terms of achievement rates, the average rate in the national achievement test (NAT) conducted among Grade 6 pupils improved between 2004 and 2007. The average mean percentage score in the NAT for the entire country was 65 percent in 2007, up from 60 percent in 2004. Dumaguete City, however, had a slight decline from 63 percent in 2004 to 62 percent in 2007. The achievement rate for Caraga improved from 69 percent in 2003 to 72 percent. Agusan del Sur, on the other hand, had only a slightly lower rate than that of its region.

For the second year high school, achievement levels improved for the country as a whole, from 47 percent in 2006 to 49 percent in 2007. In 2006, achievement rate in Central Visayas improved much faster and reached 53 percent in 2007. Dumaguete City also improved a bit higher than the national

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Table 2. Promotion and dropout rates in public secondary schools (SY 2003–2004, SY 2006–2007) Region / Division /

Region VII

Gender Parity Index

Ave. Dropout Rate

2003

2006

2003

2006

2003

2006

2003

2006

85.61

88.58

1.12

1.08

6.40

9.88

0.48

0.52

Male (M)

80.58

85.17

8.70

13.14

Female (F)

90.45

91.85

4.18

6.81

7.13

13.81

0.45

0.45

0.46

0.54

0.60

0.54

0.27

0.88

0.49

0.42

0.52

0.58

0.53

0.57

0.50

0.68

0.69

0.67

Total (MF)

83.90

84.45

- Central

Male (M)

77.21

79.46

9.92

19.35

Visayas

Female (F)

90.37

89.22

4.43

8.62

Total (MF)

78.80

90.29

8.70

6.17

Male (M)

71.52

84.55

11.69

7.99

Female (F)

86.87

95.45

5.37

4.34

Total (MF)

82.33

78.15

12.30

9.54

Male (M)

76.21

69.73

15.31

12.30

Female (F)

88.77

86.99

9.12

6.65

Total (MF)

85.76

62.50

5.50

4.38

Male (M)

83.04

58.09

8.19

4.62

Female (F)

89.13

68.15

2.17

4.07

5.50

5.37

Dumaguete City

Dumaguete City NHS

Taclobo NHS

1.17

1.21

1.16

1.07

1.12

1.13

1.25

1.17

Caraga

Total (MF)

88.59

88.03

Region

Male (M)

84.03

85.14

7.50

7.76

Female (F)

92.75

90.71

3.68

3.24

Total (MF)

86.91

87.65

6.07

5.93

Male (M)

82.24

85.14

8.10

7.63

Female (F)

91.19

89.90

4.21

4.45

Total (MF)

88.71

91.14

5.15

5.66

Male (M)

85.22

88.22

6.85

7.37

Female (F)

91.81

93.61

3.65

4.21

Total (MF)

80.79

90.43

8.85

6.96

Male (M)

72.71

87.50

12.03

8.44

Female (F)

87.85

92.80

6.07

5.76

Total (MF)

77.90

84.65

10.87

9.97

Male (M)

73.63

81.20

12.99

12.16

Female (F)

81.66

87.52

9.00

8.15

Agusan del Sur

Bayugan NCHS

Prosperidad NHS

Sibagat NHS

Gender Parity Index

Total (MF)

School Philippines

Ave. Promotion Rate

1.10

1.11

1.08

1.21

1.11

1.07

1.06

1.06

1.06

1.08

Source of data: Basic Education Information System, DepEd Agusan del Sur and Dumaguete City divisions.

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average but lower than the regional average.

In contrast, the mean percentage score of 63 percent in Caraga was much higher than that of the country and of Central Visayas. Meanwhile, Agusan del Sur had a 1 percent decline to 62 percent. This decline was experienced by Bayugan National Comprehensive School and Sibagat National High School.

To emphasize, learning outcomes depend on the adequacy and quality of classrooms (desks and armchairs), teachers, and trainings. The adequacy and quality of instructional materials also depend on the provision of the central office. Divisions and schools, however, can also influence by participating in the textbook exchange program.

Moreover, the ability of schools to maximize their maintenance and other operating expenses (MOOE) will support their influence in educational achievement.

Health In Negros Oriental, the Integrated Public Health Office (IPHO) prepares the plans for providing primary health care in the whole province. Along with its tasks is the management of seven hospitals, one of which is located in Dumaguete City. The City Health Office (CHO), for its part, oversees the health services delivery in the city’s barangays. In the municipalities of Prosperidad and Sibagat, rural health units (RHUs) are responsible for providing municipal public health.

In the same manner, the provincial government of Agusan del Sur supervises health service delivery through the Provincial Health Office (PHO) and its five public hospitals. The primary health center in the city, the CHO, is managed by the city of Bayugan while the municipal health offices (MHOs) are managed by the respective municipal governments.

Following the Department of Health’s (DOH) national program on maternal and child care, local governments have implemented the programs on safe motherhood and women’s health program (SMWHP), expanded program on immunization (EPI), integrated management of childhood illnesses (IMCI), and family planning (FP).

May - June 2010

The 2006 Family Planning Survey estimated that 162 out of 100,000 women die of pregnancy or childbirth each year. Maternal mortality rate (MMR) is the measure of death among women during pregnancy, childbirth, or after childbirth. The MMRs in Agusan del Sur and Dumaguete City are significantly lower than the national average. From 139 in 2004, MMR in Agusan del Sur went down to 89 in 2007.

In Agusan del Sur, the PHO stated that continuing education on the risks during pregnancy and its advocacy on having a skilled medical professional during childbirth or the presence of a skilled medical professional when childbirth is conducted by a trained hilot (traditional birth attendant or TBA) greatly helped reduce MMR. There was no reported incidence of maternal deaths in Dumaguete City in 2006 and 2007. This also showed huge improvement from the city’s MMR of 50 in 2004. However, it should be noted that survey reports are affected by discrepancies due to the maternal deaths not reported in the civil registry.

Meanwhile, infant mortality rate (IMR) is the number of infant deaths per 1,000 live births during the first 12 months of life. It is also described as the probability of dying between day one of birth and age one. From 2004 to 2007, figures from the Field Health Service Information System (FHSIS) showed that the IMR for the Philippines was 9–10 deaths per 1,000 live births.

Agusan del Sur and Dumaguete City had higher incidences of infant deaths in 2004.

However, significant improvements were achieved after four years. In 2007, there was no incidence of infant deaths in Dumaguete City while Agusan del Sur posted a decline of IMR from 2004–2005. The province attributed this decline to its participation in the UNICEF’s Country Program for Children.

Ideally, there should be one doctor and one nurse for every 20,000 population and one midwife per 5,000 population. However, in the cities surveyed, doctor-to-population ratio is very low (Table 3). In Dumaguete City, there is a shortage of doctors but it has a

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Table 3. Health workers at the LGU level Doctor to Population

Nurse to Population

Midwife to Population

Sibagat

30,074

30,074

4,296

Prosperidad

75,390

25,130

5,799

Bayugan

95,032

47,516

8,639

Dumaguete City

58,196

19,399

5,291

Source: Field Health Service Information System (FHSIS) and Census data

Table 4. Antenatal care coverage (in %) FHSIS 2004

2005

MICS 2006

2007

2007

Agusan Del Sur

51.7

44.6

43.6

Bayugan

40.24

28.70

27.90

22.69

NA

Prosperidad

59.74

63.33

73.87

65.92

NA

Sibagat

34.88

32.84

51.60

47.82

NA

Negros Oriental

72.9

67.4

55.7

59.70

96

Dumaguete

94.4

74.3

46.2

44.7

NA

National Average

64.7

62.3

61.5

62.9

94.4

94.1

Source: Field Health Service Information System (FHSIS), Provincial Health Office; Philippines Sub-Regional Multiple Indicator Cluster Survey (MICS) 2008, National Statistics Office

higher nurse- and midwife-to-population ratios. Between the municipalities of Sibagat and Prosperidad in Agusan del Sur, the former has higher doctor- and midwife-topopulation ratios while the latter has more nurses. The city of Bayugan, on the other hand, has the widest margin of health workerpopulation ratio among the four cities.

Essential health services are needed to be delivered to the mothers and children. As such, the progress of the surveyed areas in their delivery of the health services are examined.

According to the study, if only pregnant women undergo antenatal check-ups, potential problems and complication at childbirths may be prevented. The FHSIS data (Table 4) showed that less than 50 percent of pregnant women in Agusan del Sur had medical check-ups during their pregnancy. Antenatal care is highest in Prosperidad (66%), fol-

lowed by Sibagat (48%), and Bayugan (23%). Dumaguete City reached as high as 94 percent in 2004 but declined to 45 percent in 2007. Child delivery in the surveyed areas with the presence of skilled birth attendants (SBAs) is highest in Dumaguete City (89–91%). In Agusan del Sur, the highest is Bayugan City (59%) followed by Prosperidad (50%), and Sibagat (27%).

One of the main considerations in child care is immunization to ward off diseases that can be prevented but have caused unnecessary deaths among children. Results from the surveyed areas showed Prosperidad recording the highest immunization rate (87%) followed by Bayugan (61%) and Sibagat (58%).

Dumaguete City’s child immunization rate was 100 percent in 2004; however, by 2007, it has declined to 77 percent.

Potable water In 2007, the total population of Dumaguete

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City was 116,392. Provincial and city records showed that in the same year, Dumaguete City had a total of 21,582 households, of which 20,012 households were serviced by Level I, Level II, and Level III water systems.

The Dumaguete City Water District (DCWD) served 19,239 households or approximately 96 percent of the total. Level I water systems served about 3 percent of the households while Level II water systems served approximately 1 percent.

In 2007, there were 232 Level I water systems comprising of public jetmatic/pitchers (89), private jetmatics/pitchers (140), and springs (3). It also constitutes 99 percent of the water systems in the city. On the other hand, there were only two Level II water systems and one Level III water system, the DCWD. In addition to these, there were about 20 water refilling stations also operating business in Dumaguete City.

With the total of 21,582 households in Dumaguete City and the 20,012 households serviced by Level I, Level II, and Level III water systems, the rate of access to safe drinking water in the city, therefore, was 92.73 percent. This figure is way above the target of the MDGs of 86.6 percent and within the range of the Philippine government target of 92 to 96 percent. This may therefore mean that Dumaguete City has already met national and MDG targets related to local potable water service delivery.

Provincial and municipal records showed that in 2007, Bayugan had 17,012 households, of which 16,086 were serviced by Levels I, II, and III water systems. The rate of access to safe water, therefore, was 94.6 percent. Based on the Community-Based Monitoring System (CBMS) survey, 16.81 percent of the households in Bayugan had no access to safe water in 2005. The rate of access to safe water of 83.19 percent—which corresponds to the 16.81 percent without access to safe water—fell below the government target of 92 to 96 percent and the MDG target of 86.6 percent. However, the rate of access to safe drinking water of 94.6 percent in 2007 had met both the national and MDG targets.

Based on available data, then, this may mean that Bayugan has already met or is close to

May - June 2010

meeting national and MDG targets for local potable water service delivery.

Provincial and municipal records indicated that in 2007, Prosperidad had 13,064 households, of which 8,683 households were serviced by Levels I, II, and III water systems.

Therefore, 66.5 percent of the households in the municipality had access to safe drinking water. According to the CBMS survey, of the households in Prosperidad, 37.97 percent had no access to safe drinking water in 2005. The rate of access to safe water of 62.03 percent in 2005 and 66.5 percent in 2007 in Prosperidad is way below the national government and MDG targets. Thus, more efforts in water service delivery may need to be undertaken in the municipality.

Provincial and municipal records showed that in 2007, Sibagat had 5,289 households, of which 4,794 households were serviced by Levels I, II, and III water systems. Therefore, the access to safe water was 90.6 percent.

According to the CBMS survey, however, of the households in Sibagat, 45.49 percent had no access to safe drinking water in 2005. The inconsistency and significant difference between the numbers pertaining to 2005 and 2007 suggest data problems related to local service delivery in potable water in the municipality.

The 54.51 percent rate of access to safe water in Sibagat in 2005 is the lowest compared to Bayugan and Prosperidad. Therefore, based on this figure, maximum effort must be exerted in the municipality to improve its potable water service delivery. On the other hand, the rate of access to safe drinking water in Sibagat in 2007 of 90.6 percent has already met MDG targets and is close to meeting national targets.

In summary, if the surveyed areas are to be taken as a reflection of the national attainment for education (83.22%) and maternal health (inconsistent data coming from different survey sources), major improvements must be done to achieve the MDG 2015 targets of 100 percent elementary education net enrolment rate and 52 percent in the maternal mortality ratio. On the other hand, Dumaguete City may have already met the

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May - June 2010

MDG 2015 target of 86.6 percent for access to potable water while municipalities in Agusan del Sur are either likely to meet the target or must work doubly hard to attain it.

Comparative assessment of sectors In terms of accessibility, the health sector issues involve the utilization of services and quality of care provided. For example, because of good roads, availability of transport, and more choices in Dumaguete City, many residents frequent city hospitals than the barangay health systems (BHSs) and RHUs near them. It is also evident in Bayugan and Sibagat wherein more are inclined to go to bigger provincial hospitals than other public hospitals. In Agusan del Sur, on the other hand, while immunization services provided

by BHUs and RHUs are utilized, care related to pregnancy and delivery are not used because of the low quality of care and limited services.

In education, issues on service coverage measures and utilization were assessed. For the service coverage for elementary education in 2007, the division of Dumaguete City has a better pupil-classroom ratio (34.80:1) compared to Central Visayas (36.36:1). Meanwhile, the division of Agusan del Sur (35.99:1) has a worse pupil-classroom ratio compared with most of Caraga Region (33.92:1). The national average of 34.82:1 ratio is higher than that of Dumaguete City but Agusan del Sur’s ratio is within the average.

For secondary education, student-classroom ratios for Dumaguete City (29:1) and Agusan del Sur (44:1) were better than the national average (48:1) in 2007. Pupil-seating ratios in elementary for Dumaguete City (0.87:1) and Agusan del Sur (0.85:1) were also higher than the national average (1.02:1) in 2007.

Pupil-teacher ratios in elementary for Dumaguete City (32.82:1) and Agusan del Sur (32.39:1) were a little higher than the national average (33.18:1) in 2007. At secondary level, the student-teacher ratio for Agusan del Sur (32.59:1) was higher than the national average (33.99:1) in 2007, but for Dumaguete City (34.16:1), it was slightly worse.

In 2007, pupil-seating ratios in elementary for Dumaguete City and Agusan del Sur were higher than the national average. (Photo: Valerie Belizario)

In SY 2006–2007, Dumaguete City (71.42%) and Agusan del Sur (75.99%) had lower net enrolment rates than the national average of 83.22 percent. Net enrolment for males was also higher than for females in Agusan del Sur but lower in Dumaguete City in the same period. At the secondary level, both Dumaguete City (54.14%) and Agusan del Sur (48.86%) had lower net enrolment rates than the national average of 58.59 percent in 2007. The net enrolment rates in both areas are higher for females than for males in the same period.

The problem of accessibility for water supply is measured in terms of level of coverage and the quality of water service. In Agusan del Sur, water districts are not able to serve the entire municipalities. Moreover, in terms of household self-provision for those located in the upland areas where water system is lacking, potable water is sourced from dug wells, rivers and other natural water bodies, rainwater, and other similar sources.

On the other hand, quality of potable water in the surveyed areas is measured in terms of increasing the share of households with access to safe drinking water. The study states that Dumaguete City may have already at-

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May - June 2010 ets would prefer to access water at low rates or if possible, for free.

In Agusan del Sur and Dumaguete, many residents are not keen on paying extra for the improvement of water services. For them, additional payment is only acceptable if the amount would only cost PHP 1.00 or less per liter.

Meanwhile, equity is assessed through the level of coverage of the unreached, underserved, or unserved rural areas as well as the priority provided to poor beneficiaries of the local services delivery.

In Agusan del Sur, collection of user fees (no matter how low) from target clients such as pregnant women affects poor people more. (Photo: Valerie Belizario)

tained the MDG target for 2015 of 86.60 percent. In Agusan del Sur, Bayugan is close to achieving the MDG target while Prosperidad and Sibagat may have to work harder to attain it.

In terms of affordability, cost is important in the delivery of health services. Residents in Dumaguete City still find the services of public hospitals expensive since it takes a significant amount of their incomes. Residents of Agusan del Sur also bypass public hospitals in order to avail of lower cost and flexible payment schemes. Moreso, delivery cost in Agusan del Sur is twice than in Dumaguete City, whether through a doctor or midwife or giving birth in a medical facility.

In education, surveyed areas showed that the average cost difference between private and public schools ranges from 4–9 times more costly in preschool; 7–13 times more costly in elementary, and 2–6 times in secondary education.

The issue on affordability of water, on the other hand, differs from people who have connection and those who do not. For people who have private connection to a water district, it is affordable for them to pay the connection costs and tariff charges since their income can carry the cost. On the other hand, people who are in the lower income brack-

In health, because of the difficulty of reaching far-flung barangays in Agusan del Sur, the IMR declined in 2006. Collection of user fees from target clients such as pregnant women, no matter how low the price, affects poor people more.

In addition, membership in the Philippine Health Insurance Corporation (PhilHealth) which is geared to help the poor in their health expenditures had caused problems, instead of benefits, to them. For one, members have complained that they were not issued cards after they have paid their counterpart amount of PHP 300.00. Two, they are not reimbursed by PhilHealth because their names are not in the membership roster.

And three, they do not enjoy any benefits because only RHUs are given capitation fund per enrolled indigent.

In education, equity is measured in terms of disparities in education outcomes that can be observed from a regional comparative assessment based on: net enrolment ratio, gender-parity index, and urban-rural ratio.

For SY 2006–2007, primary net enrolment in Caraga was 77.76 percent and 78.87 percent in Central Visayas, both below the national average of 83.22 percent. Meanwhile, secondary net enrolment rates in the same school year for Caraga (48.89%) and Central Visayas (53.86%) were also below the national average of 58.59 percent.

Also in SY 2006–2007, participation rates were higher by 2 percent for females in Central Visayas but lower by 1 percent for females

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in Caraga. At the secondary level for the same period, Caraga had one of the highest gender disparities, wherein the participation rate for females was 24 percent higher than that for males. Gender disparity in Central Visayas had increased from 20 percent in 2002 to 23 percent in 2007. Gender disparities in both regions of the LSD areas were higher than the national average of 18 percent.

by promotion, dropout, and achievement rates. In Dumaguete City, promotion rate for elementary education in 2007 was 96 percent, an improvement from 94 percent in 2003. It was higher compared to Agusan del Sur (86%) and the national average (91%).

For secondary education, Dumaguete City’s promotion rate was higher at 90 percent compared to the national average (89%) and to that of Agusan del Sur’s 88 percent.

The urban-rural ratio in elementary participation for SY 2005–2006 in Central Visayas (13%) was above the national average of 10 percent, but in Caraga, it was lower at 3 percent. At the secondary level, the inequity between urban and rural areas was lower in Caraga (3%) and higher in Central Visayas (26%) than the national average of 19 percent.

Dropout rate for elementary education in Dumaguete City (0.72%) was lower than Agusan del Sur’s (1.82%) and that of the national average (1.26%). On dropout rates for secondary education, Agusan del Sur (5.93%) and Dumaguete City (6.17%) were both below the national average (9.88%).

In water, equity is measured in terms of socialized pricing practiced. The Dumaguete City Water District (DCWD), the Prosperidad Water District (PWD), and the Bayugan Water District (BWD) practice socialized pricing in which residential and government users are subsidized by large commercial users. Meanwhile, the Pumpwell Section in Dumaguete City and the Water and Sanitation Center in Agusan del Sur provide Level I and Level II public water systems for the poor. LGUs in the surveyed areas also have other projects that provide the water supply needs of the poor.

In terms of quality, measurement is through the satisfaction with the quality of service and achievement of national goals and MDGs. In health, inclination for one facility over the other depends on health and cultural factors. BHSs and RHUs, for example, have high satisfactory ratings for the attitude and availability of their medical personnel. However, they have low ratings for their medical facilities, the availability and adequacy of medical supplies, and the quality of medicines and supplies. Poor households have limited choices, thus, they avail themselves of health care services usually from public hospitals, if not from BHSs and RHUs only, for financial consideration.

In education, the quality of service in both elementary and secondary levels is measured

For average achievement rate for grade 6, there was a slight decline in the mean percentage score for Dumaguete City, from 63 percent in 2004 to 62 percent in 2007, which is lower than the national average of 65 percent. Agusan del Sur posted a higher rate of 71 percent in 2007 from 68 percent in 2004.

On the average achievement rate for second year high school, Agusan del Sur's declined from 63 percent in 2006 to 62 percent in 2007, but this rate was still higher than that of Dumaguete City (51%) and the national average (49%).

In potable water, quality of service is measured by the need for water treatment and achievement rate in meeting the MDGs by increasing the proportion of households with access to safe drinking water. All water supply providers (WSPs) in the surveyed areas use chlorination as water treatment. On the other hand, personnel from Bayugan Water District conduct on-field testing of the quality of spring water twice a year.

Issues The following are sectoral level policy, institutional, and financial issues and challenges in the sectors cited in the study. Issues at the national level in the study areas are also discussed in Box 1.

Education The country provides a constitutional guarantee for free basic education but govern-

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May - June 2010 charged against their MOOE. Procedural requirements, such as monthly liquidation of cash advances, further slow utilization of funds that have already been allocated.

Policy prescribes budgeting from district level up to the regional level. One strategy that was advised said that budgeting should be based on situational analysis and school investment plans (SIPs). However, there are evidences indicating that varying school needs are not considered in department budgeting.

The education sector is experiencing overlapping and unclear roles that affect decisions and actions as well as accountability. (Photo: Valerie Belizario)

ment actions in requiring school-aged children and youths to attend school are not strictly enforced. Many students who are poor may feel the need to work and help their families instead of studying. With limited resources, schools may find it strategically wise to focus on keeping enrolled pupils in school while missing to bring all eligible pupils to school. This, however, works against the universal basic education objective.

While there are clear organizational performance indicators, it is unclear whether there are guidelines on setting targets and accountabilities at the regional, division, district, and school levels. Only the Secretary is clearly accountable for all education outcomes but control over resources has been distributed throughout the bureaucracy without clear accompanying responsibilities.

The OOE are already low but in addition, there are many cases of low utilization of allocated funds because of procedural requirements, particularly for elementary schools.

Schools without finance officers depend on the division or nearby schools with finance officers for disbursement of their MOOE. This dependence hampers fund utilization as well as reduces the influence of the school on the kind and quality of the purchases

For one, school MOOE is computed per capita and the same for all schools. The Special Education Fund (SEF), on the other hand, is based on real property tax (RPT) revenues which are usually low in poorer areas; hence, poorer areas which usually need more resources, do not get the needed financial support.

Public schools are prohibited to collect fees but due to the insufficiency of their MOOE allocations, they are forced to collect contributions through the parent-teacher-community associations (PTCA). However, despite their increasing role in mobilizing resources for schools, the PTCA's capacity to manage their finances and administer programs appear to be weak as indicated by absence/poor quality of financial reports which are critical in voluntary contribution schemes.

The education sector is experiencing overlapping and unclear roles that affect decisions and actions as well as accountability.

The Local Government Code created the Local School Boards in the provinces, cities, and municipalities, while school governing councils (SGCs) and SIPs are created by BESRA for school-centered institutions, processes, and tools. There is also no clear guidelines on resource allocation across schools and geographic areas. This has resulted into different roles played by different stakeholders varying from school to school and from LGU to LGU, suggesting that the existing definitions are not clear enough.

There appears to be coordination failures in school building programs and provision of school furniture. Prioritization of school

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DEVELOPMENT RESEARCH NEWS Box 1.

National level policy, institutional, and financial issues and challenges in the education, health, and potable water sectors

Education The education sector is not decentralized, thus, it has maintained its top-to-bottom chain of command with the Secretary of Education running the field, regional and district offices, school divisions, and public and private schools. a) Sustainability of performance goals. In SY 2007–2008, participation rate in elementary education has improved but it failed to sustain the highest participation rate of 89 percent for elementary education in SY 2003–2004. Also, since 2006, there has been a declining rate in gross enrolment ratio for primary and secondary education. b) Quality education. While achievement rates in the elementary and high school levels have improved in Science, Math, and English, the Philippines is not at par with the quality of education given by other neighboring Asian nations. This is shown by the poor performance of the fourth-grade and eighth-grade students in Math and Science subjects when compared to international standards. c) Shortage of educational inputs. Through the years, the DepEd experiences difficulties due to the lack of teachers and classrooms around the country.

Slowly it has addressed its teacher and classroom shortages despite budget constraints. However, the deficits in the educational inputs remain to be huge. d) Quality of teaching staff. Teachers with appropriate qualifications in Science, Math, and English are wanting in the country. The need to address teachers’ training and benefits should be one of the top priorities of the department to aid the lagging educational standard of the country. e) Inadequate spending for basic education. In comparison with other neighboring Asian countries, the country has spent less in the primary and secondary levels that is attributed to the low Trend in International Mathematics and Science Study marks.

In addition, demand-side interventions which are the safety net measures for poor students such as school supplies and feeding programs must be given equal importance, along with the supply-side input of classrooms, textbooks, and teachers. f) Slow implementation of crucial law, plans, and strategies. Republic Act 9155, Philippine EFA 2015,

and BESRA are mandated to address the institutional problem of the DepEd. The slow implementation of the law, plans, and strategies, however, impedes the delivery of education services and weakened the education outcomes, as well as the country’s competitiveness in the international community. g) Strengthening the SBM. At present, DepEd maintains a centralized decisionmaking process despite the passing of RA 9155 or the Governance of Education Act that gives SBMs the authority to decide on their own as to what project, programs, and further actions to pursue for an improved school environment.

Improved education service, thus, can be attained through development of educational plans for the division, monitoring implementation of division education plans, and encouraging schools to undertake innovative projects, among others. h) Tension between central and local authorities or field offices. Education is not yet a devolved sector.

As such, LGUs have limited powers, duties, and functions in the education decisionmaking process. To add, the strained coordination between DepEd and LGUs hampers the priorities and outcomes set for the education sector. i) Strengthening of local school boards and school governing councils. LSBs as the coordinators between the central and local governments must be empowered to influence and redirect allocated budget across schools and expenditure items. They may also be given the authority to hire, fire, and deploy teachers. This is in contrast to the current setup of the LSBs’ budget that is regularly used only in infrastructure projects and recurring sports events.

Health In contrast to the education sector, the passage of the 1991 Local Government Code paved the way for the health services delivery to be given to LGUs. Thus, the DOH’s current tasks include policymaking, regulations, leveraging for health, technical assistance provision, and tertiary health care. a) Slow reduction of maternal mortality ratio. It is ironic that maternal mortality rate in the Philippines continues to be high when these deaths are preventable.

In comparison with other Southeast Asian nations, the country is lagging behind Brunei Darussalam, Singapore, Malaysia, Thailand, and Viet Nam. This

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scenario is also negatively affected by the lack or shortage of SBAs who could provide immense help to mothers while giving birth. b) Improving child health. There is a positive development in the infant and child mortality rate. However, the number one cause of death of Filipino children aged 1–4 and infants 0–2 is pneumonia, while for aged 5–9 years, the cause are accidents, deaths that are indeed preventable. c) Responsiveness of health care system. Accessibility, availability, utilization, equity and quality of health facilities, personnel, and services are the necessary attributes to be addressed for the health care system to be responsive to the health needs of the Filipino population. An example is the case of the Autonomous Region in Muslim Mindanao which has the least number of health personnel and is lagging behind compared to most of the regions.

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cal professionals to render their services in barangay and rural health units. h) The contentious role of TBAs. The World Health Organization defines a TBA as a “person who assists the mother during childbirth and who initially acquired skills by delivering babies herself or by working with other TBAs.” Many underprivileged Filipino families have continued to rely on their services because of the high cost of delivery despite TBA's lack of skills in dealing with life-threatening cases such as eclampsia or obstructed labor.

Potable water Section 17 of the 1991 Local Government Code ordered the provision of potable water supply and sanitation and other water-related services and facilities. LGUs should carry out watershed-related activities that used to be confined only to community-based management, social forestry, and watershed projects.

d) Coordination among LGUs. It has been difficult to achieve coordination of community-based, clinicbased, and hospital-based health services in a common area due to the lack of common purpose and directions among provinces and municipalities. With the LGUs now given the task to health service delivery, a well-coordinated delivery system for both maternal and child health services must immediately be placed.

a) Access and coverage. The 2004 Annual Poverty Indicators Survey (APIS) suggests a slight improvement in the access to safe drinking water and access to sanitary toilet facilities. On the other hand, DOH and other water-related agencies must conduct serious efforts to answer the sanitation and sewerage problems in the country. Doing so will aid the elimination of the common practice of unsystematic disposal of untreated waste matter and sludge.

e) Lack of institutional capacities. Both the DOH and the LGUs have yet to fulfill their respective duties of improving health services. This institutional capacity deficit has hindered specifically the local delivery of better maternal and child health services.

b) Problem of waterlessness and the President’s Priority Program on Water (P3W). There are only modest gains in P3W due to the lack of general guidelines and criteria for project selection and implementation. The Water and Sanitation Coordinating Office (WASCO) which is tasked to oversee and coordinate the planning and implementation of P3W created the classification of access to water based on the P3W definition.

f) Active involvement and effective leadership of LCEs. LCEs such as the governors and mayors who are active and effective leaders, with a strong political will and sense of public service, are great assets in achieving better maternal and health service delivery in the country. LCEs should consider maternal and child health services as one of the priorities in their provinces as well as investing capital funds for the improvement of health facilities. g) Too little Magna Carta benefits. The country exports many of its nurses and physicians across the globe. They are the competent health workers who could have played important roles in the effective management and implementation of maternal and child health services. Republic Act 7305 or the Magna Carta for Public Health Workers is deemed too little for medi-

c) Service quality. Continuous supply of water indicates good quality of service. As such, quality water service should not be hampered with: interruptions in supply and pressure fluctuations, inability to follow water quality standards because of disinfection and infiltration, and inability to service most of the poorest households in remote areas, act as contributory to waterborne diseases and death due to contaminated water. d) Water inadequacy for families. Water should be adequate for families to maintain proper hygiene (hand washing, bathing, cleaning of utensils in order to control spread of diseases). Lack of water supply is often

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related to the absence of qualitative and quantitative data to show water adequacy for families in far-flung areas where many poor families reside. Limited outcomes of government water programs that should address water inadequacy, and lack of awareness among people about local and national agencies responsible for water supply services also contribute to the shortage. e) Multiplicity of institutions. The water supply sector in the country suffers from overlapping functions, no coordination, and lack of planning and monitoring duties. “The sector is extremely fragmented. The proliferation of actors is a result of successive waves of reforms that have added new layers without completely doing away with the old. Thus, while the water district (WD) model was introduced to move away from politi-

building program is still prone to political interference despite the availability of the Basic Education Information System (BEIS) data which should serve as the definitive guide for targeting. Coordination between the Department of Public Works and Highways and DepEd also needs to be improved.

There are overlaps between central, regional, and division offices in the provision of school furniture. Another critical issue in the education sector is the declining LGU education spending per capita. Thus, many LGUs are having difficulty paying teachers’ salaries.

Health The shortage of health service personnel is considered as the primary obstacle in the accomplishment of maternal and child care programs. There are few nurses and midwives because of the lack of plantilla positions. While it is acceptable to hire casual employees to augment the shortage, they are, however, not eligible for trainings in the DOH. One of the greatest challenges in the delivery of health services, on the other hand, is how to reach patients living in outlying locations. They are located in the mountainous areas which make transportation difficult.

There are also no midwives and BHS to attend to the needs of pregnant women, children, and the old. Insurgency problems in the surveyed areas also make it hard for

cal problems inherent in LGU-run systems, the latter continue to serve the majority of urban population. And, there are no fewer than 20 government agencies presently involved in the sector� (WB 2008). f) Weak regulatory framework. A weak regulatory framework is synonymous to a weak accountability system. To counter this inefficiency, first, a particular national agency with clearly defined roles and responsibilities must give technical assistance to LGUs on water availability mapping, promotion of new technology, and low-cost point of use. Second, a particular national agency with clearly defined roles and responsibilities must regularly verify the water quality monitoring system of LGUs and WDs, and provide or supplement water treatment supplies and capacity strengthening. DRN

health personnel to visit the areas.

Some of the respondents shared their hesitation to become PhilHealth members because aside from having to pay a portion for the card, they learned that those who can afford to pay are also given memberships.

Thus, it sends the signal that there are no clear rules on how to identify the true poor.

More importantly, it aggravates the feeling of inequality since government also subsidized the population who have the capacity to pay.

Potable water The potable water sector is compounded with problems of jeopardized surface and underground water resources because of water pollution and denuded watersheds.

Inconsistencies among barangays and municipalities in their water service delivery resulted in barangays and other local areas not having water at all. Moreover, current financial investments as well as the qualification of personnel in the water service delivery are low.

The high rate of water connection has also negatively affected residents in the surveyed area to avail of connection. On the other hand, water districts cannot afford to lower the cost because they will not be able to recover their investments. Water service delivery at LGUs suffers from weak and fragmented organizational structure which re-

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sults in incompetence. Government employees in this sector, to add, are not motivated to work because of their low salaries. As such, the sector faces the problem of how to improve its financial capacity; however, the private sector, donors, and other fund sources can help raise the budget needed as well as develop cost-effective technologies to raise finances.

Recommendations Education For a better MOOE allocation, one of the recommendations is for the division offices to increase the share of MOOE provided in cash to dependent schools.

To achieve coordinated assignment of expenditure items, the SIP should become the framework for school-based expenditure needs. For its part, the SIPs will be brought to the attention of the LGUs and LSBs by the SGCs, whose duty is also to collect and manage the SEF. Schools have exerted efforts to keep enrolled students in school but not in enrolling all school-aged children. Partnerships among the DepEd, Department of Interior and Local Government, and the leagues of provinces, cities, and municipalities can craft guidelines and lobby for the passage and/ or enforcement of antitruancy ordinances in all localities.

There has been a huge demand for teachers but LGUs do not have the capacity to pay their salaries. In turn, LGUs are more interested in getting para-teachers and volunteers who receive lower wages and have no benefits, affecting teaching quality. The LGUs can tap their 20 percent development fund to finance education in their areas.

Health In the surveyed areas, priority health programs are LCE-dependent. Because the national government does not clearly state which health programs should have national funding, LGUs choose on their own. Such situations fail to ensure universal coverage and reduce out-of-pocket expenses from the people as well as promotion of public welfare. Barangay health workers could play an important role in making health education

May - June 2010 accessible to the public. While many think of health care as drug and curative care, preventive care, on the other hand, should become a mindset for Filipinos. Media campaigns will also help focus the thinking on the importance of preventive care.

Performance should be worth the allocated budget. Matched with actual accomplishments of improved health service delivery, LCEs can use this tool to make its departments accountable for the budget given to them. Agusan del Sur passed a Sangguniang Panlalawigan resolution which requires the use of CBMS to properly target PhilHealth members. To reduce leakage, validation exercises at the barangay level should be performed.

Potable water There is a need for the LGUs to reinforce their monitoring and enforcement in areas where there are illegal logging and water pollution. Giving the local population the opportunity to participate in safeguarding their water is a welcome help. Equity and fairness must be the top consideration in the distribution of local resources for water services delivery. This is important in minimizing disparities in water services in various areas. If needed, the principle can be institutionalized through local legislation.

The potential of barangay waterworks and sanitation associations and small-scale independent providers should be further explored for them to be utilized as a feasible means of providing water services delivery in waterless barangays.

Other financial sources for the local government to be considered are the partnership with the private sectors. Development lending institutions, donor agencies, and nongovernment organizations may also be tapped.

Conclusion At the onset, decentralization with the principle of providing LSD from the grassroots level is an enabling environment for improved LSD for the local population. On the other hand, better LSD is a mix of clear explanation of roles, functions, and accountabilities which starts 24

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Global threats, regional solutions

T

he September 11 bombing, terrorist attacks, and the emergence of avian influenza are just some of the global and regional threats that have emerged in the past years. As these have debilitating impacts on states and the people, the scale and enormity therefore require regional and global solutions.

Increasing global and regional interdependence, while serving in many positive ways, increased the vulnerability of the states.

Threats such as terrorist attacks fuelled by transnational illegal money and radical ideologies have become more sophisticated, if not more frequent than before. Diseases and pandemics also spread much faster as a result of international tourism and migration.

Moreover, the pressing issue on climate change and man-made disasters has compounded the susceptibility of countries to natural disasters.

These, according to Supervising Research Specialist Jenny Balboa of the Philippine Institute for Development Studies (PIDS), are among the many issues embodied by the Asia Pacific Economic Cooperation (APEC) in its Human Security Agenda. Composed of the fastest growing economies of the world, APEC is an economic powerhouse that can provide the platform in crafting regional solutions to global issues, and has an important role to play in maintaining regional security.

In addition to the continued efforts in traditional areas of trade and investment, APEC

strengthened its work on human security issues from the perspective of ensuring a safe environment for conducting business within the Asia Pacific region. As an economic group, APEC’s interest in human security rests on the economic dimension, with the end goal of increasing interdependence among member countries, enhancing trade, and reducing regional barriers to trade.

APEC’s treatment to human security, however, somewhat resulted in gaps and ambiguity in the agenda, and fell short in advancing the real essence of human security, added Balboa. Some analysts observe that the effort to tailor-cut the human security concept to fit APEC failed to take into account the complexities of the many aspects of human security and lost track of the centrality of the individual as its primary concern.

Human security: an overview In the 1994 Human Development Report, the United Nations Development Programme (UNDP) expanded the definition of human security from the traditional cold war definition of defense and survival, to the pursuit of the two basic entitlements of human beings: freedom from want and freedom from fear (McKay 2007).

Hence, the two key strategies of human security are protection and empowerment. Protection shields people from dangers. It requires concerted efforts to develop norms, processes, and institutions that systematically address insecurities. Empowerment, on the other hand, enables people to develop their

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potential and become full participants in decisionmaking. These two concepts mutually reinforce each other and should always go hand in hand (Ascharya 2009).

There are many ways of defining human security as it is a huge and encompassing concept that touches several issues. And considering the host of emerging issues covered in this agenda, human security could be considered as one of the toughest agenda in the APEC at present.

The APEC is still working on ways to integrate and weave the various concepts and issues in its human security agenda. At present, the four primary initiatives in APEC’s Human Security Agenda focus on food security, emergency preparedness, health security, and counterterrorism measures. APEC also integrates other emerging human security issues such as anticorruption and governance and climate change.

APEC dialogues, symposium, and reports under the Senior Officials’ Meeting (SOM) Steering Committee on Economic and Technical Cooperation (SCE) have continuously tackled these human security initiatives over the years.

Below are some of the essential findings on the issues of food security, emergency preparedness, health security, and counterterrorism measures:

May - June 2010 Food security The APEC points that the focus on food security and agriculture issues is essential because the region is home to leading foodexporting and -importing economies and contains one-fourth of the world’s undernourished population. In particular, pursuing organic agriculture presents positive potentials for the APEC region to ensure food security as continuous studies on its production and productivity gains are being done. Studies show organic agriculture provides cost-effective agricultural production and farming practices plus offers the ability to mitigate climate change, which is another pressing issue that also threatens human security.

In the 2009 APEC International Symposium on “The Approach of Organic Agriculture: New Markets, Food Security and a Clean Environment,” Kuan Meng Goh noted that “organic agriculture has considerable potential for mitigating climate change, largely due to its greater ability to reduce emissions of greenhouse gases (GHGs), nitrous oxide (N2O), and methane (CH4), and also for increasing carbon sequestration in soils compared with that of conventional agriculture.”

During the APEC Japan 2010 conference, the host stressed that it aims to develop stable food security measures and to prepare a concrete action plan to strengthen regional food security through such steps as securing agricultural sustainability.

Emergency/Disaster preparedness The APEC will implement activities that contribute to the strengthening of its preparedness for all types of disasters, including coordinating efforts and resolving differences in disaster-response capabilities of member economies. Emphasis will be on strengthening the resilience of the business community, reinforcing the collaboration between the public and private sectors, and reducing disaster risk.

Organic agriculture has considerable potential for mitigating climate change, also a pressing issue affecting human security. (Photo: Jane Alcantara)

The 2008 APEC Task Force for Emergency Preparedness’ (TFEP) dialogue among APEC economies, business community, key international and regional partners stated that the specific sectors of insurance, tourism, transport, and microeconomic financ-

DEVELOPMENT RESEARCH NEWS ing schemes can play important roles and engage more in responding to emergencies.

Health security APEC Japan states that it is important to strengthen the region’s preparedness and response to combat infectious diseases like the H1N1 pandemic influenza. The 2009 dialogue between the APEC and the National Bureau of Asian Research (NBR) in Singapore emphasized that information technology (IT) is a means, and not an end, to a healthier world. The steps to combat infectious diseases are needs assessment, prioritization of needs, and identification of participants’ key interests–organized data/ standards, and clear lines of communication as foundation to the process. Case studies demonstrated that IT systems for health care can be used to address a range of challenges, including H1N1 outbreaks.

Counterterrorism measures APEC 2010 host, Japan, will strive to discuss the current status of counterterrorism measures and policies to support counterterrorism capacity building. During the APEC Japan 2010 conference, initiatives concerning trade security, aviation security, counterterrorist financing, and food defense will be forwarded to the group.

The 2008 APEC Final Report on “Effective Public-Private Partnerships to Counter Terror and Secure Trade” presented that enhancing public-private partnerships (PPP) to counter terror and secure trade is beneficial for the APEC, especially to the private sector which plays the key role as owner of critical infrastructures like telecommunication, energy and transportation, among others, in the global economy. This situation places the private sector with a high stake in any terrorist attack. The report stated that trust is a critical enabler for PPP and APEC can help by providing a platform for sharing information and building the network for the two sectors.

Concluding remarks Despite the identification of and plans for the four major initiatives, as discussed in the APEC symposium, Balboa points out that gaps and tensions exist and that APEC is yet to create a coherent framework that will

19 seamlessly address the issues as part of the broader Human Security Agenda. Balboa added that the global financial crisis intensified the complexities of the agenda because it affected government spending patterns which could likely turn human security into a marginal domestic and regional issue since governments need to channel resources to more urgent needs like food, health care, and other basic social services to offset the impact of the crisis.

As a regional group, APEC should take a lead role in: helping member economies develop effective domestic policies to address the emerging issues under the Human Security Agenda; identifying the potential positive synergies between the agenda and the financial crisis to help create the business environment for the private sector to take part in this agenda; building strong institutions at the regional level that will allow the region to take a more active role in advancing human security; and developing policy tools that will institutionalize the agenda and its specific programs at the national and regional levels.APQ References Acharya, A. 2007. Promoting human security: normative and educational frameworks in Southeast Asia. UNESCO. Behm, A. 2007. What about the war on terror in “Driving Growth–APEC’s Destiny.” A compendium of papers presented at the APEC Australia 2007 Centres’ Conference.

Feinberg, R. and J. Lawrence. 2006. Improving APEC’s Coherence. Paper presented at the Preliminary Conference for APEC 2007. 11–12 December. Melbourne, Australia.

Feinberg, R. 2009. Voluntary multilateralism and institutional modification: the first two decades of Asia Pacific Economic Cooperation (APEC). Paper presented at the 2009 APEC Study Center Consortium (ASCC) Conference “APEC at 20: Looking Ahead to the Next Decade.”13–14 July.

Singapore.

Fukuka-Parr, S. 2008. The human impact of the financial crisis on poor disempowered people and countries. UN General Assembly Interactive Panel on the Global Financial Crisis. 30 October.

McKay, J. 2007. How far can the human security agenda run? in Driving Growth-APEC’s Destiny. A compendium of papers presented at the APEC Australia Center Conference.

Nanto, D. 2009. The global financial crisis: foreign and trade policy effects. Congressional Research Service Overseas Development Institute. The Global Financial Crisis: Poverty and Socio Protection Briefing Paper. August.

United Nations Development Program. 1994. Human Development Report.

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PIDS study reveals trends and prospects in Philippine international migration

I

n the last three decades, international labor migration has helped shape the Philippine economy. It is considered an enduring feature of Philippine development.

In their study titled "Philippine International Labor Migration in the Past 30 Years: Trends and Prospects," Philippine Institute for Development Studies (PIDS) Senior Research Fellow Dr. Aniceto C. Orbeta, Jr. and Research Analyst Mr. Michael Ralph Abrigo said that the drivers and prospects both in the local economy and in the major destination countries will define the future of migration streams in the country.

The annual flow of Filipino migrants shows that temporary migrant workers dominate in terms of volume, with around 36,000 workers leaving the country in 1975 and up to more than 1.2 million in 2007. Among the temporary migrant workers, land-based workers have comprised around eight of every ten workers leaving annually since the 1990s.

This includes the increasing number of newhires and the even faster increasing proportion of rehired workers, which show that employers prefer workers with prior international experience.

In the early years of the overseas employment program, the flow of sea-based workers was greater than that of the land-based workers, with around 23,500 sea-based workers leaving the country in 1975. But 2007 registered only about 267,000 sea-based workers leaving the country, compared with around

800,000 land-based workers leaving during the same period.

The Middle East is the primary destination of land-based temporary migrants, followed

by Asia, particularly the newly industrialized countries which turned to labor importation to sustain their economic growth.

Land-based temporary migrants are composed of professionals, service workers, production process workers, transport workers, and laborers. The dominance of professionals in 1975 was replaced by production process workers, transport workers, and laborers in the 1980s, coinciding with the construction boom in the Middle East. The professionals consist of architects and engineers, health professionals, and composers and performing artists. Service workers, on the other hand, are mainly composed of maids and housekeepers deployed around the world.

When compared with the domestic labor force, Filipino temporary migrant workers are shown to be younger and better educated.

Around seven of every ten temporary migrant workers are of ages between 24 and 44 years old and half of them have at least some tertiary education. Majority of the temporary migrant workers are women.

Meanwhile, Filipino permanent migrants are in the developed countries of North America, particularly the United States (US).

Other destinations of permanent migrants are countries in Asia, Oceania, and Europe

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but the proportion is far lower than that in North America.

Unlike temporary workers who are mostly professionals and service workers, the larger proportion of permanent migrants are unemployed—housewives, students, and minors—dependents of professionals who emigrated because of more career advancement opportunities, over and above the differences in wages.

This scenario is created by the family reunification goal of permanent migration in the US – the prime destination of Filipino emigrants. Permanent migrants are highly educated which may reflect US immigration policy “to admit workers with skills needed by the economy.� In terms of age, however, the 44 years old and above age category comprises the largest group, reflecting the preference of employers in hiring more experienced workers, in addition to the family reunification program in the US. In the case of irregular migrants, a large proportion is likewise in North America but this is already declining from 37 percent in 1997 to 28 percent in 2007. However, there is an increasing number of irregular migrants in East Asia, comprising around 30 percent of the total number of irregular migrants in 2007. Other regions with irregular migrants are Europe and the Middle East, representing 9 and 10 percent of all irregular migrants, respectively, in 2007.

Looking forward, meanwhile, Ducanes and Abella (2008) argued that the future of Philippine international migration will depend on long-term prospects highly determined by certain factors such as: Domestic economy — it is tied to the country’s ability to redeem itself in its history of “inconsistent economic boom� and catch up with other developing countries.

The continuing limited opportunity for career and professional growth is a push factor that will determine the flow of migrants out of the country.

Demography — it is observed that there is a high population in the Philippines accompanied by a slow decline in fertility rate in

There is a large proportion of irregular migrants in North America. East Asia has also become a destination for irregular migrants. (Photo: Norina Rosal Herbers)

neighboring and destination countries.

Given this dual situation, Filipino migrants can obviously fill the population gaps and lack of human labor in major destination countries.

Politics — it is observed that since the 1980s, the political “adventurisms� of the country had contributed to the lack of political stability and led to a push migration to “safer and more stable� developed countries.

Environment — involves frequency of intense storms visiting the country and the vulnerability they bring, especially to large coastal areas during this time of climate change.

The primary pull factors to lead international migration of Filipinos are the demographic and migration policy scenario of destination countries. Aging countries are expected to increase their demand for health professionals and eventually other set of professionals who will fill the gap in their labor force. Likewise, migration policies provide the structure on the flow of both permanent and temporary workers.

The last of the long-term prospects to look into are the network effects—“the increasing number of migrants in the population is expected to deepen (more in the same household) and widen (other households

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Full employment: key to economic stability

G

rowth alone is not enough for developing Asia. To achieve economic stability, the region needs an inclusive strategy driven by structural change that results in the full employment of the labor force.

In his book Inclusive Growth, Full Employment, and Structural Change: Implications and Policies for Developing Asia (London: Anthem Press), Asian Development Bank Principal Economist Dr. Jesus Felipe proposes an inclusive strategy to achieve the full employment.

According to Dr. Felipe, the empirical evidence indicates that despite the fast growth achieved by many countries across developing Asia (e.g., China, India, Pakistan, Bangladesh, Indonesia, Philippines) in the past decades, the region is still home to about 500 million people who are currently unemployed and/or underemployed.

Unemployment and underemployment are the major cause of poverty in developing Asia. However, policymakers have not taken unemployment and underemployment as the number one problem across the region.

In the Philippines, for example, unemployment is a “time bomb.” Between 2005 and 2030, the labor force will increase by about 50 percent, that is, the number of people looking for a job will increase from about 34 million to 52 million. The question for the Philippines is: will the economy be able to provide jobs for all these people?

Skills mismatch and the lack of human capital are the most commonly cited reasons of unemployment. In reality, however, it is the systemic failure of the economy to create enough jobs which is the main cause of massive unemployment. Employment is a basic right and full employment should be the primary objective of economic policy in the developing Asia.

Dr. Jesus Felipe, Principal Economist at the Asian Development Bank, discusses key points from his newly published book titled “Inclusive Growth, Full Employment, and Structural Change” during the "Forum on a Fresh Perspective on Critical Development Issues" held at the Philippine Institute for Development Studies' (PIDS), Romulo Hall in Makati City. (Photo: Gizelle Manuel)

“Nobody who is willing and ready to work for a just wage should be without a job. Society must be able to provide jobs for all those willing to work. And they should be able to provide jobs for the workers they have and not for the workers they wish they had,” Dr. Felipe added.

DEVELOPMENT RESEARCH NEWS A full employment economy offers a great number of advantages. At the individual level, the best way for an individual to participate in society is through a productive and decent employment. For society as a whole, it results in a reduced need for social safety nets; in lower social costs; and in higher political stability.

In the case of the Philippines, immediate policy priorities to achieve full employment should be population management and job guarantee programs. Industrialization policies are also crucial. Education does matter for long-term growth but it is not a key constraint now and, as noted above, society should be able to provide jobs for all its citizens. Individuals cannot be left out and stigmatized for being “uneducated.”

For decades, growth and low inflation were thought to lead to job creation. Policymakers have been concerned with controling inflation and the fiscal deficit which, in turn, were thought to create stability and employment.

Dr. Felipe’s book argues that this approach is incorrect.

Citing the Philippine situation, he emphasized that the issue is not about slashing budget deficits to control inflation. Rather, it is about redirecting fiscal and monetary policies to achieve full employment with price stability.

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PIDS study.....from page 21 ○

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23 Meanwhile, structural change, that is, the shift of resources from the less productive sectors to the more productive sectors of the economy; diversification and sophistication of production and exports; and discovery of new products, is needed to achieve sustained growth. In particular, the Philippines needs to address problems in the agriculture sector, where land reform is still a priority. Likewise, policies that are geared toward industrialization have to be crafted and implemented.

Finally, Dr. Felipe stressed the need for the government and the private sectors to work together in planning and coordinating development actions. Both must understand their complementary roles in a modern economy. While it is true that successful economies are driven by private initiative, it is also true that they always rely on government policies that promote growth by accelerating structural transformation.

Developing new industries often requires a nudge from government, in the form of loans, infrastructure, or other kinds of support. The key to supporting the development of new industries lies in the rules that guide government support. In the final analysis, the key to success in the 21 st century lies in creating a climate of collaboration between government and the private sector.CSM

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in the same geographic area) the scope of migration because of a high probability that migrants will effectively reduce migration costs.”

In the meantime, short-term prospects suggest that Middle East countries will continue their demand for foreign workers in the near future due to the failure of their programs to lessen dependence on foreign labor. One reason is the continued reluctance of locals to take on the jobs that have been considered as “foreigner’s work.” The 2009 global financial crisis has highlighted the need to understand the

international labor migration and remittances market better. For instance, at the beginning of the crisis, it was reasonable to worry about the prospects for the Filipino seafarers because of the documented decline in global trade brought about by the crisis. Available seafarer deployment data up to the third quarter of 2009, however, did not show a decline but only a deceleration of the growth. Everyone was also expecting a decline in the flow of remittances. Remittance data up to the last quarter of 2009, though, likewise show only a deceleration in growth but not an actual decline.APQ

May - June 2010

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DEVELOPMENT RESEARCH NEWS

STAFF BOX

DEVELOPMENT RESEARCH NEWS Vol. XXVIII No. 3

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DEVELOPMENT RESEARCH NEWS is a bimonthly DEVELOPMENT STUDIES (PIDS). It highlights the findings

May - June 2010

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May - June 2010

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(Cover); Michael Cabalfin; Gizelle

Improving.....from page 16

Manuel; Valerie Belizario; Jane Alcantara; and Norina Rosal Herbers.

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from the specific national agencies involved, through the LGUs and LCEs, and ends in its recipient, the local people.

To add, the effectiveness, sustainability, equity, and quality of LSD greatly depend on the complex interdependence of policies, institutions, and finance. First, policy must prioritize human development issues and services. It also becomes more effective if it is inclusive, equitable, and responsive to the most underprivileged sector of the society.

More importantly, LSD must be formulated and implemented in the local development plans that are in line with the regional and national development plans.

Second, effective local leaderships in the persons of LCEs are crucial in the attainment of better LSD. It could be achieved by practicing good governance through the help of additional training, education, and leadership enhancement of local leaders by corresponding national agencies. Institutional champions also practice sound financial ad-

ministration through the utilization of their own internal revenue allotment (IRA) and other own-source revenues as well as grants, loans, and donations.

Third, to finance LSD, local governments should use their own-source revenues. Priority for human development concerns (education, health, and water) must be emphasized, with the national government and LGUs spending more on them despite fiscal deficits and financial crisis. Local government must also practice allocative and operational efficiency to rationalize limited funds and scarce resources. Thus, the 20 percent local development fund of the IRA should be used efficiently.

As such, improving people’s lives entails improving better delivery of public goods and services. In the Philippine setting, doing so will help achieve the MDGs of 2015 that will not only enhance the lives of Filipinos, especially the poor, but also create a better Philippines.CSM