cebu city – a bottoms-up initiative towards prosperity for all

8/3/2019 Cebu City A bottoms-up initiative towards prosperity for all

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By Francisco FernandezChief Operating Officer

Pagtambayayong Foundation Inc. (an NGO)Formerly Administrator of the Cebu City local government

Inclusive Cities

Break-out session 3:

Inclusive Cities and Promotion of Livelihood and Commerce


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What mechanisms exist with local government in Cebuto finance promotion of livelihood and commerce as an additional part

of larger infrastructure and housing developments,to ensure that projects

(transport, water supply, sewerage, environmental upgrading, solidwaste, housing, slumupgrading)

also lead to livelihood opportunities for the poorer segments of society.

Development for all is possible iffEconomic growth + Social services + Social organizations.

Economic growth: Bigger Pie

Social services: Everyone Can Enjoy Pie

Social organizations: Everyone Will Enjoy Pie

Development for all= social stability + economic growth


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Economic Growth:bigger pie

Investments have its own logic and what government must do is to let

them be unless necessary to protect the common good. But it doeshelp if the entire city including the local governments welcomes

investors both local and out-of-town.

In Cebu City, we hate imperial Manila but we welcome their investments.Same with the foreign investors.

Ceboom era circa mid 90s: investors from Manila and foreign directinvestments in industries and lately Business Process Outsourcing

75,000 in BPOs, mostly young, intelligent, talented, disposable incomeThus giving much life to our entertainment and other service sector,

including those in the informal sector.

Cebu City local government did its share: Cebu Investment Promotion Center (NGO) invites, midwifes, liaises

Eliminate red tape and corruption

A government owned golf course converted and openly biddedout as a commercial center; IT Park, SRP


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But this economic pie must be shared as equitably as possible. We cannot

leave the market by itself. There must be basic services focussed on the poor.

Social Services:Everyone can enjoy pie

Foremost: Security of Tenure for the urban poor, on-site, iff not possiblein relocation sites accessible to their employment.

For the urban poor: right to housing = access to livelihood.Jobs will not go to the poor; poor who must go to the jobs.

Security of tenure to 38,000 hh

City strictly collects taxes and generates income from the South RoadProperties: senior citizens - P4,000 per year; all graduates of public high schools

- P10,000 per semester; burial assistance - P10,000; medical assistance, etc.

Training for/with BPOs Support Micro and small investors. Unless complaints become deafening,

close our eyes to sidewalk vendors Welcomes and supports initiatives of NGOs and the communities

NGOs and communities are represented in the Local DevelopmentCouncil and other City Commissions


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This is happening in Cebu Citybecause the poor and their friends are very well

organized and conscienticized.Vote buying and demagoguery do not work in

Cebu City. Politicians have to negotiate with thepoor before, during and after elections.

The media is also very active.

Social Organizations:everyone will enjoy pie


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What are micro-finance opportunities that are connected toinfrastructure or housing development?

Land Acquisition:Cebu City + Community Mortgage Program + National Housing

Authority + NGOs + Urban Poor OrganizationsUsually cost recovery, low interest, long term.

Housing Construction:By the poor themselves. Very few projects with housing

components for the poor by the NGOs and the private sector.Practically none by the private sector.

Community Infrastructure:

By the local government and by the pork barrels oflegislators in the form of assisted self-help projectsand small infrastructure projects. A few by the

community themselves. No successful loan programfor community infrastructures in Cebu and possibly

the Philippines.


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What approaches and policies work best to financelivelihood commercial activities?

Cooperatives, NGOs and commercial lending institutions &

banks. Pawnshops and informal lenders.

Cebu City Government micro-finance for livelihood.

Cebu City Government

= guarantee fund to loans for small and medium businesses.= incubation facility for small business to be located at the South

Road Property, which is an export processing zone.

Security of Tenure Certificates as collateral

for livelihood financing?Prospects of rental housing for the poor, by the poor.


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What lessons from the past is important for your ownorganization, and what should be relevant for others?

How can community participation be achieved?

What suggestions exist for future innovations or improvements?Cebu City is very lucky.

Poor are very well organized and conscienticized. Local officials have recognized this as a fact of life and have

decided to negotiate rather than to fight these organized groups. Conflicts and Tensions = Principled Collaboration

As a result the poor of Cebu City have achieved much. But certainly far from enough.

Giant Steps = Peace and prosperity for all including the urban poor.

Many have asked, How did we get the community to participate in our

projects and activities?Wrong question. Right question: How did we get ourselves

to participate in the lives and concerns of the poor?

Answer: We had no choice. They forced us because

they were organized and conscienticized.


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The logical question would then be how come they areorganized and conscienticized

when many and perhaps most others are not?

A very interesting question indeed but unfortunatelytoo difficult to answer within the allotted ten minutes.

Thank You

cebu city – a bottoms-up initiative towards prosperity for all

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