editor's notes improving local service delivery: a

Editor's Notes

Vol. XXVIII No.3 May - June 2010 ISSN 0115-9097

P H I L I P P I N E

I N S T I T U T E F O R

D E V E L O P M E N T

S T U D I E S

Surian sa mga Pag-aaral Pangkaunlaran ng Pi l ip inas

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Ten years ago, the Philippines, along with 146 other nations, signed acommitment 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 ofthe Fourth Philippine Progress Report on the MDGs show that the countrystill has a lot to accomplish in order to achieve the MDGs, specifically in theareas of eradicating extreme poverty and hunger (Goal 1); achieving uni-versal primary education (Goal 2); ensuring maternal health (Goal 5); andensuring access to potable water supply (Goal 7).

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

The country’s current standing in its fulfillment of the MDGs of 2015, how-ever, shows that there is no clear sign that devolving LSD to the LGUs hasimproved. Moreover, it can also be inferred that gains have remained insuf-ficient.

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

Improving localservice delivery:a national call

17 Global threats, regional solutions

20 PIDS study reveals trends and prospectsin Philippine international migration

22 Full employment: key to economic stability

One way of achieving the Millennium Devel-opment Goals (MDGs) is to improve the de-livery of basic social services, specifically tothe poor. In a decentralized setting such asthe Philippines, one cannot argue that thesuccess of local service delivery dependslargely on the local institutions, policies,and ample funding.

For this issue of the Development ResearchNews, we look into how MDG-related socialservices such as education, health, and wa-ter are delivered in the context of decen-tralization. Discussing the highlights of ajoint study by the Philippine Institute forDevelopment Studies and the United NationsChildren's Fund, the lead feature presents auseful way of understanding the country’slevel of achievement of the MDG targets.

In particular, the joint study on “ImprovingLocal Services Delivery for the MDGs in Asia:The Case of the Philippines” argues that im-proving local service delivery (LSD) is aboutimproving people’s lives. It is premised onthe idea that better provision of public goodsand services is a prerequisite to realizinghuman capabilities, thus expanding humanfreedoms and enhancing human lives for abetter society.

What's Inside

DEVELOPMENT RESEARCH NEWS May - June 20102

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

Cognizant of the crucial role the local com-munities play in the development process,PIDS President Dr. Josef T. Yap, in his wel-come remarks, shared that the Institute’spolicy research programs are geared towardlocal executives and other local stakehold-ers in order to help them achieve better out-comes for the people.

On the other hand, Mr. Colin Davis, DeputyCountry Representative of UNICEF, stressedthat “the goals of the MDGs are not the goalsof the United Nations, or of the UNICEF’s,but the goals of the Philippine governmentfor its people. The MDGs of 2015 should bea promise fulfilled for the Filipino people.”

PIDS Senior Research Fellow Dr. Danilo C.Israel, one of the authors of the study, saidthat local chief executives (LCEs) are cru-cial for LSD to thrive in a decentralized set-ting. He added that better outcomes for de-velopment can only be achieved if LCEs ad-

dress the policy, institution, and finance chal-lenges that LSD hurdles.

The study focused on education, health, andwater in view of these sectors’ critical role inachieving better human development andin order to provide the environment for amore focused and detailed analysis on howdecentralization is still a primary means inimproving LSD.

The results then underscored the successand failures of LSD within a decentralizedsetting. From the sectoral analyses, appropri-ate policy agenda were derived for theneeded major improvements to be done inthe delivery of public goods and services.

The study was conducted in DumagueteCity in Negros Oriental and the municipali-ties of Bayugan, Prosperidad, and Sibagat inAgusan del Sur province. These areas werechosen as study sites for their structure (i.e.,rural and urban) and their location in thesouthern part of the country (i.e., Visayas andMindanao). The study also benefited fromconsultations with key informants and stake-holders in the local sector as well as the sur-vey respondents and participants in the fo-cus group discussions.

Sectoral performanceE d u c a t i o nRepublic Act 5155 or the Governance of Ba-sic Education Act directs the transformationof basic education policy into programs,projects, and services that are adapted to lo-cal needs. Schools and learning centers nowhave the authority to decide for the best in-terest of the school and students. It also givesschool teachers and staff flexibility in theservice and initiative for school improve-ment.

School-based management (SBM) in all pub-lic schools in the country, on the other hand,was set by the Department of Education(DepEd) to help empower schools and theircommunities to advance student learning.Through the SBM, the formerly centralizedstructure of decisionmaking has been del-egated to the individual schools. As such, allstakeholders from school officials to parentsand the communities as well as the LGUswork together to support the creation and

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

DEVELOPMENT RESEARCH NEWS 3 May - June 2010

maintenance of better schools for the stu-dents.

To achieve the education for all (EFA) goals,meanwhile, the Basic Education Sector Re-form Agenda (BESRA) was put into fore.One of the key reform thrusts of the BESRAis to continuously improve all schools in thecountry. This entails the institution of aschool governing council as well as the de-velopment of a school improvement plan toaddress school needs.

Proactive, dedicated, and accountable insti-tutions are needed to address the growingissues and challenges in the education sec-tor. One of which is the country’s low elemen-tary net enrolment rate of 83.22 percent inschool year (SY) 2006–2007, down from theprevious 90.29 percent in SY 2000–2003.Because of this, the country needs to focusmore efforts in addressing the challenges ineducation in order to achieve universal pri-

mary education by 2015 for the fulfillmentof the MDGs.

In the survey areas of Agusan del Sur andDumaguete City, the former has a lower el-ementary net enrolment rate than the latter.On the other hand, females have higher par-ticipation in the elementary level comparedto males in the national level. This result isshared by the Central Visayas Region whereDumaguete is located. Meanwhile, elemen-tary net enrolment in Caraga Region, whereAgusan del Sur is a part of, showed a some-what higher participation of males comparedto females.

In general, secondary net enrolment rate hasdeclined from 59 percent in SY 2002–2003to 58.59 percent in SY 2006–2007 (Table 1 ).Net enrolment rate in Dumaguete City is alittle higher compared to the region whereit belongs while net enrolment in Agusandel Sur is similar to the Caraga Region whichis lower compared to the rate at the national

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

Gender Parity IndexGER NER

Philippines

VII -

Central

Visayas

DumagueteCity

Caraga

Region

Agusan del

Sur

Total (MF) Male (M)

Female (F)

Total (MF)

Male (M)

Female (F)

Total (MF) Male (M)

Female (F)

Total (MF)

Male (M)

Female (F)

Total (MF)

Male (M) Female (F)

2002

83.5580.18

87.00

86.29

83.21

89.43

78.3478.67

78.00

76.01

71.68

80.47

64.99

60.5869.59

2006

79.5076.44

82.62

79.31

76.17

82.51

75.7075.02

76.40

69.97

65.96

74.09

61.12

56.0966.34

2002

59.0054.39

63.72

57.30

52.20

62.50

53.0650.85

55.31

49.77

44.07

55.64

43.11

37.8848.55

2006

58.5953.85

63.44

53.86

48.26

59.56

54.1449.52

58.86

48.89

43.64

54.30

48.86

43.6254.30

2002

1.09

1.07

0.99

1.12

1.15

2006

1.08

1.08

1.02

1.12

1.18

2002

1.17

1.20

1.09

1.26

1.28

2006

1.08

1.08

1.02

1.12

1.18

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

Region / Division Gross Enrolment Ratio(GER), %

Net Enrolment Ratio(NER), %


level and Central Visayas Region. Again, en-rolment among females is higher than malesin the secondary level. However, gender dis-parity in Dumaguete City is lower comparedto the region while in Agusan del Sur, it ismuch higher.

Promotion, dropout, and achievement ratescomprise basic education outcomes. Theaverage promotion rate in elementary hasdeclined from 95 percent in 2003 to 91 per-cent in 2007. The Caraga Region also saw adecline in the promotion rate from 95 per-cent to 89 percent over the same period. Incontrast, promotion rate in Central Visayashas improved, though slightly, from 89 per-cent to 90 percent. In Dumaguete City, pro-motion rate is higher and improved a littlefrom 94 percent to 96 percent. For Agusandel Sur, the average promotion rate de-creased from 93 percent in 2003 to 86 per-cent in 2006.

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

experienced decreased dropout rates. Still,dropout rates in Central Visayas continue tobe higher than the national average, but notin the case of Dumaguete City. The dropoutrates in Caraga had become lower than theaverage in the country, but not in Agusandel Sur.

Table 2 shows the promotion and dropoutrates in the secondary level which rose from86 percent in 2003 to 89 percent in 2006.Promotion rate in Central Visayas had beenlower and improved much slower than thatin the country as a whole. However, inDumaguete City, a significant improvementin the promotion rate from 79 percent in2003 to 90 percent in 2006 occurred. Pro-motion rate in Caraga Region was higherthan the national average in 2003, but it ex-perienced a decline and is already lowerthan the country’s average. Promotion ratein Agusan del Sur improved slowly and hadbeen outdone by most of the country’s prov-inces.

Between 2003 and 2006, the average drop-out rate in the secondary level increased.Central Visayas had a dropout rate increasefrom 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 averagerate in the national achievement test (NAT)conducted among Grade 6 pupils improvedbetween 2004 and 2007. The average meanpercentage score in the NAT for the entirecountry was 65 percent in 2007, up from 60percent in 2004. Dumaguete City, however,had a slight decline from 63 percent in 2004to 62 percent in 2007. The achievement ratefor Caraga improved from 69 percent in 2003to 72 percent. Agusan del Sur, on the otherhand, had only a slightly lower rate than thatof its region.

For the second year high school, achieve-ment levels improved for the country as awhole, from 47 percent in 2006 to 49 per-cent in 2007. In 2006, achievement rate inCentral Visayas improved much faster andreached 53 percent in 2007. Dumaguete Cityalso improved a bit higher than the national

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


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

SchoolAve. Promotion Rate Gender Parity Index Ave. Dropout Rate Gender Parity Index

Philippines

Region VII

- Central

Visayas

Dumaguete

City

DumagueteCity NHS

Taclobo

NHS

Caraga

Region

Agusan delSur

Bayugan

NCHS

Prosperidad

NHS

SibagatNHS

Total (MF) Male (M)

Female (F)

Total (MF)

Male (M)

Female (F)

Total (MF)

Male (M) Female (F)

Total (MF) Male (M)

Female (F)

Total (MF)

Male (M)

Female (F)

Total (MF)

Male (M) Female (F)

Total (MF) Male (M)

Female (F)

Total (MF)

Male (M)

Female (F)

Total (MF)

Male (M) Female (F)

Total (MF) Male (M)

Female (F)

2003

85.61

80.5890.45

83.9077.21

90.37

78.80

71.52

86.87

82.33

76.2188.77

85.7683.04

89.13

88.59

84.03

92.75

86.91

82.2491.19

88.7185.22

91.81

80.79

72.71

87.85

77.90

73.6381.66

2006

88.58

85.1791.85

84.4579.46

89.22

90.29

84.55

95.45

78.15

69.7386.99

62.5058.09

68.15

88.03

85.14

90.71

87.65

85.1489.90

91.1488.22

93.61

90.43

87.50

92.80

84.65

81.2087.52

2003

1.12

1.17

1.21

1.16

1.07

1.10

1.11

1.08

1.21

1.11

2006

1.08

1.12

1.13

1.25

1.17

1.07

1.06

1.06

1.06

1.08

2003

6.40

8.704.18

7.139.92

4.43

8.70

11.69

5.37

12.30

15.319.12

5.508.19

2.17

5.50

7.50

3.68

6.07

8.104.21

5.156.85

3.65

8.85

12.03

6.07

10.87

12.999.00

2006

9.88

13.146.81

13.8119.35

8.62

6.17

7.99

4.34

9.54

12.306.65

4.384.62

4.07

5.37

7.76

3.24

5.93

7.634.45

5.667.37

4.21

6.96

8.44

5.76

9.97

12.168.15

2003

0.48

0.45

0.46

0.60

0.27

0.49

0.52

0.53

0.50

0.69

2006

0.52

0.45

0.54

0.54

0.88

0.42

0.58

0.57

0.68

0.67

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


average but lower than the regional average.In contrast, the mean percentage score of 63percent in Caraga was much higher than thatof the country and of Central Visayas. Mean-while, Agusan del Sur had a 1 percent de-cline to 62 percent. This decline was experi-enced by Bayugan National ComprehensiveSchool and Sibagat National High School.

To emphasize, learning outcomes dependon the adequacy and quality of classrooms(desks and armchairs), teachers, andtrainings. The adequacy and quality of in-structional materials also depend on the pro-vision of the central office. Divisions andschools, however, can also influence by par-ticipating in the textbook exchange program.Moreover, the ability of schools to maximizetheir maintenance and other operating ex-penses (MOOE) will support their influ-ence in educational achievement.

H e a l t hIn Negros Oriental, the Integrated PublicHealth Office (IPHO) prepares the plansfor providing primary health care in thewhole province. Along with its tasks is themanagement of seven hospitals, one of whichis located in Dumaguete City. The CityHealth Office (CHO), for its part, overseesthe health services delivery in the city’sbarangays. In the municipalities ofProsperidad and Sibagat, rural health units(RHUs) are responsible for providing mu-nicipal public health.

In the same manner, the provincial govern-ment of Agusan del Sur supervises healthservice delivery through the ProvincialHealth Office (PHO) and its five publichospitals. The primary health center in thecity, the CHO, is managed by the city ofBayugan while the municipal health offices(MHOs) are managed by the respective mu-nicipal governments.

Following the Department of Health’s(DOH) national program on maternal andchild care, local governments have imple-mented the programs on safe motherhoodand women’s health program (SMWHP),expanded program on immunization (EPI),integrated management of childhood ill-nesses (IMCI), and family planning (FP).

The 2006 Family Planning Survey estimatedthat 162 out of 100,000 women die of preg-nancy or childbirth each year. Maternal mor-tality rate (MMR) is the measure of deathamong women during pregnancy, childbirth,or after childbirth. The MMRs in Agusan delSur and Dumaguete City are significantlylower than the national average. From 139in 2004, MMR in Agusan del Sur went downto 89 in 2007.

In Agusan del Sur, the PHO stated that con-tinuing education on the risks during preg-nancy and its advocacy on having a skilledmedical professional during childbirth orthe presence of a skilled medical profes-sional when childbirth is conducted by atrained hilot (traditional birth attendant orTBA) greatly helped reduce MMR.

There was no reported incidence of mater-nal deaths in Dumaguete City in 2006 and2007. This also showed huge improvementfrom the city’s MMR of 50 in 2004. However,it should be noted that survey reports areaffected by discrepancies due to the mater-nal deaths not reported in the civil registry.

Meanwhile, infant mortality rate (IMR) is thenumber of infant deaths per 1,000 live birthsduring the first 12 months of life. It is alsodescribed as the probability of dying betweenday one of birth and age one. From 2004 to2007, figures from the Field Health ServiceInformation System (FHSIS) showed that theIMR for the Philippines was 9–10 deaths per1,000 live births.

Agusan del Sur and Dumaguete City hadhigher incidences of infant deaths in 2004.However, significant improvements wereachieved after four years. In 2007, there wasno incidence of infant deaths in DumagueteCity while Agusan del Sur posted a declineof IMR from 2004–2005. The province attrib-uted this decline to its participation in theUNICEF’s Country Program for Children.

Ideally, there should be one doctor and onenurse for every 20,000 population and onemidwife per 5,000 population. However, inthe cities surveyed, doctor-to-population ra-tio is very low (Table 3). In Dumaguete City,there is a shortage of doctors but it has a


higher nurse- and midwife-to-populationratios. Between the municipalities of Sibagatand Prosperidad in Agusan del Sur, theformer has higher doctor- and midwife-to-population ratios while the latter has morenurses. The city of Bayugan, on the otherhand, has the widest margin of health worker-population ratio among the four cities.

Essential health services are needed to bedelivered to the mothers and children. Assuch, the progress of the surveyed areas intheir delivery of the health services are ex-amined.

According to the study, if only pregnantwomen undergo antenatal check-ups, poten-tial problems and complication at childbirthsmay be prevented. The FHSIS data (Table4) showed that less than 50 percent of preg-nant women in Agusan del Sur had medicalcheck-ups during their pregnancy. Antena-tal care is highest in Prosperidad (66%), fol-

lowed by Sibagat (48%), and Bayugan(23%). Dumaguete City reached as high as94 percent in 2004 but declined to 45 per-cent in 2007. Child delivery in the surveyedareas with the presence of skilled birth at-tendants (SBAs) is highest in DumagueteCity (89–91%). In Agusan del Sur, the high-est is Bayugan City (59%) followed byProsperidad (50%), and Sibagat (27%).

One of the main considerations in child careis immunization to ward off diseases that canbe prevented but have caused unnecessarydeaths among children. Results from the sur-veyed areas showed Prosperidad recordingthe highest immunization rate (87%) fol-lowed by Bayugan (61%) and Sibagat (58%).Dumaguete City’s child immunization ratewas 100 percent in 2004; however, by 2007, ithas declined to 77 percent.

Potable waterIn 2007, the total population of Dumaguete

Table 3. Health workers at the LGU level

Sibagat

Prosperidad

BayuganDumaguete City

Doctor to Population30,074

75,390

95,03258,196

Nurse to Population30,074

25,130

47,51619,399

Midwife to Population4,296

5,799

8,6395,291

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

Table 4. Antenatal care coverage (in %)

Agusan Del Sur

BayuganProsperidad

Sibagat

Negros Oriental

Dumaguete

National Average

FHSIS

2004

51.7

40.2459.74

34.88

72.9

94.4

64.7

2005

44.6

28.7063.33

32.84

67.4

74.3

62.3

2006

43.6

27.9073.87

51.60

55.7

46.2

61.5

2007

22.6965.92

47.82

59.70

44.7

62.9

MICS

2007

94.1

NANA

NA

96

NA

94.4

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


City was 116,392. Provincial and city recordsshowed that in the same year, DumagueteCity had a total of 21,582 households, ofwhich 20,012 households were serviced byLevel I, Level II, and Level III water systems.The Dumaguete City Water District(DCWD) served 19,239 households or ap-proximately 96 percent of the total. Level Iwater systems served about 3 percent of thehouseholds while Level II water systemsserved approximately 1 percent.

In 2007, there were 232 Level I water sys-tems comprising of public jetmatic/pitchers(89), private jetmatics/pitchers (140), andsprings (3). It also constitutes 99 percent ofthe water systems in the city. On the otherhand, there were only two Level II water sys-tems and one Level III water system, theDCWD. In addition to these, there wereabout 20 water refilling stations also operat-ing business in Dumaguete City.

With the total of 21,582 households inDumaguete City and the 20,012 householdsserviced by Level I, Level II, and Level IIIwater systems, the rate of access to safe drink-ing water in the city, therefore, was 92.73 per-cent. This figure is way above the target ofthe MDGs of 86.6 percent and within therange of the Philippine government targetof 92 to 96 percent. This may therefore meanthat Dumaguete City has already met nationaland MDG targets related to local potablewater service delivery.

Provincial and municipal records showedthat in 2007, Bayugan had 17,012 house-holds, of which 16,086 were serviced by Lev-els I, II, and III water systems. The rate ofaccess to safe water, therefore, was 94.6 per-cent. Based on the Community-Based Moni-toring System (CBMS) survey, 16.81 percentof the households in Bayugan had no accessto safe water in 2005. The rate of access tosafe water of 83.19 percent—which corre-sponds to the 16.81 percent without accessto safe water—fell below the government tar-get of 92 to 96 percent and the MDG targetof 86.6 percent. However, the rate of accessto safe drinking water of 94.6 percent in 2007had met both the national and MDG targets.Based on available data, then, this may meanthat Bayugan has already met or is close to

meeting national and MDG targets for localpotable water service delivery.

Provincial and municipal records indicatedthat in 2007, Prosperidad had 13,064 house-holds, of which 8,683 households were ser-viced by Levels I, II, and III water systems.Therefore, 66.5 percent of the householdsin the municipality had access to safe drink-ing water. According to the CBMS survey, ofthe households in Prosperidad, 37.97 per-cent had no access to safe drinking water in2005. The rate of access to safe water of 62.03percent in 2005 and 66.5 percent in 2007 inProsperidad is way below the national gov-ernment and MDG targets. Thus, more ef-forts in water service delivery may need to beundertaken in the municipality.

Provincial and municipal records showedthat in 2007, Sibagat had 5,289 households,of which 4,794 households were serviced byLevels I, II, and III water systems. Therefore,the access to safe water was 90.6 percent.According to the CBMS survey, however, ofthe households in Sibagat, 45.49 percent hadno access to safe drinking water in 2005. Theinconsistency and significant difference be-tween the numbers pertaining to 2005 and2007 suggest data problems related to localservice delivery in potable water in the mu-nicipality.

The 54.51 percent rate of access to safe wa-ter in Sibagat in 2005 is the lowest comparedto Bayugan and Prosperidad. Therefore,based on this figure, maximum effort mustbe exerted in the municipality to improveits potable water service delivery. On theother hand, the rate of access to safe drink-ing water in Sibagat in 2007 of 90.6 percenthas already met MDG targets and is close tomeeting national targets.

In summary, if the surveyed areas are to betaken as a reflection of the national attain-ment for education (83.22%) and maternalhealth (inconsistent data coming from dif-ferent survey sources), major improvementsmust be done to achieve the MDG 2015 tar-gets of 100 percent elementary educationnet enrolment rate and 52 percent in thematernal mortality ratio. On the other hand,Dumaguete City may have already met the


MDG 2015 target of 86.6 percent for accessto potable water while municipalities inAgusan del Sur are either likely to meet thetarget or must work doubly hard to attain it.

Comparative assessment of sectorsIn terms of accessibility, the health sector is-sues involve the utilization of services andquality of care provided. For example, be-cause of good roads, availability of transport,and more choices in Dumaguete City, manyresidents frequent city hospitals than thebarangay health systems (BHSs) and RHUsnear them. It is also evident in Bayugan andSibagat wherein more are inclined to go tobigger provincial hospitals than other pub-lic hospitals. In Agusan del Sur, on the otherhand, while immunization services providedby BHUs and RHUs are utilized, care relatedto pregnancy and delivery are not used be-cause of the low quality of care and limitedservices.

In education, issues on service coveragemeasures and utilization were assessed. Forthe service coverage for elementary educa-tion in 2007, the division of Dumaguete Cityhas a better pupil-classroom ratio (34.80:1)compared to Central Visayas (36.36:1). Mean-while, the division of Agusan del Sur(35.99:1) has a worse pupil-classroom ratiocompared with most of Caraga Region(33.92:1). The national average of 34.82:1ratio is higher than that of Dumaguete Citybut Agusan del Sur’s ratio is within the aver-age.

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

Pupil-teacher ratios in elementary forDumaguete City (32.82:1) and Agusan delSur (32.39:1) were a little higher than thenational average (33.18:1) in 2007. At sec-ondary level, the student-teacher ratio forAgusan del Sur (32.59:1) was higher thanthe national average (33.99:1) in 2007, butfor Dumaguete City (34.16:1), it was slightlyworse.

In SY 2006–2007, Dumaguete City (71.42%)and Agusan del Sur (75.99%) had lower netenrolment rates than the national average of83.22 percent. Net enrolment for males wasalso higher than for females in Agusan delSur but lower in Dumaguete City in the sameperiod. At the secondary level, bothDumaguete City (54.14%) and Agusan delSur (48.86%) had lower net enrolment ratesthan the national average of 58.59 percentin 2007. The net enrolment rates in bothareas are higher for females than for malesin the same period.

The problem of accessibility for water sup-ply is measured in terms of level of coverageand the quality of water service. In Agusandel Sur, water districts are not able to servethe entire municipalities. Moreover, in termsof household self-provision for those locatedin the upland areas where water system islacking, potable water is sourced from dugwells, rivers and other natural water bodies,rainwater, and other similar sources.

On the other hand, quality of potable waterin the surveyed areas is measured in termsof increasing the share of households withaccess to safe drinking water. The study statesthat Dumaguete City may have already at-

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


tained the MDG target for 2015 of 86.60 per-cent. In Agusan del Sur, Bayugan is close toachieving the MDG target while Prosperidadand Sibagat may have to work harder to at-tain it.

In terms of affordability, cost is important inthe delivery of health services. Residents inDumaguete City still find the services of pub-lic hospitals expensive since it takes a signifi-cant amount of their incomes. Residents ofAgusan del Sur also bypass public hospitals inorder to avail of lower cost and flexible pay-ment schemes. Moreso, delivery cost in Agusandel Sur is twice than in Dumaguete City,whether through a doctor or midwife or givingbirth in a medical facility.

In education, surveyed areas showed that theaverage cost difference between private andpublic schools ranges from 4–9 times morecostly in preschool; 7–13 times more costlyin elementary, and 2–6 times in secondaryeducation.

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

ets would prefer to access water at low ratesor if possible, for free.

In Agusan del Sur and Dumaguete, manyresidents are not keen on paying extra forthe improvement of water services. For them,additional payment is only acceptable if theamount would only cost PHP 1.00 or less perliter.

Meanwhile, equity is assessed through thelevel of coverage of the unreached,underserved, or unserved rural areas as wellas the priority provided to poor beneficia-ries of the local services delivery.

In health, because of the difficulty of reach-ing far-flung barangays in Agusan del Sur,the IMR declined in 2006. Collection of userfees from target clients such as pregnantwomen, no matter how low the price, affectspoor people more.

In addition, membership in the PhilippineHealth Insurance Corporation (PhilHealth)which is geared to help the poor in theirhealth expenditures had caused problems,instead of benefits, to them. For one, mem-bers have complained that they were not is-sued cards after they have paid their coun-terpart amount of PHP 300.00. Two, they arenot reimbursed by PhilHealth because theirnames are not in the membership roster.And three, they do not enjoy any benefitsbecause only RHUs are given capitation fundper enrolled indigent.

In education, equity is measured in terms ofdisparities in education outcomes that canbe observed from a regional comparative as-sessment based on: net enrolment ratio, gen-der-parity index, and urban-rural ratio.

For SY 2006–2007, primary net enrolmentin Caraga was 77.76 percent and 78.87 per-cent in Central Visayas, both below the na-tional average of 83.22 percent. Meanwhile,secondary net enrolment rates in the sameschool year for Caraga (48.89%) and Cen-tral Visayas (53.86%) were also below the na-tional average of 58.59 percent.

Also in SY 2006–2007, participation rateswere higher by 2 percent for females in Cen-tral Visayas but lower by 1 percent for females

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


in Caraga. At the secondary level for the sameperiod, Caraga had one of the highest gen-der disparities, wherein the participationrate for females was 24 percent higher thanthat for males. Gender disparity in CentralVisayas had increased from 20 percent in2002 to 23 percent in 2007. Gender dispari-ties in both regions of the LSD areas werehigher than the national average of 18 per-cent.

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

In water, equity is measured in terms of so-cialized pricing practiced. The DumagueteCity Water District (DCWD), the ProsperidadWater District (PWD), and the Bayugan Wa-ter District (BWD) practice socialized pric-ing in which residential and governmentusers are subsidized by large commercialusers. Meanwhile, the Pumpwell Section inDumaguete City and the Water and Sanita-tion Center in Agusan del Sur provide LevelI and Level II public water systems for thepoor. LGUs in the surveyed areas also haveother projects that provide the water supplyneeds of the poor.

In terms of quality, measurement is throughthe satisfaction with the quality of service andachievement of national goals and MDGs. Inhealth, inclination for one facility over theother depends on health and cultural fac-tors. BHSs and RHUs, for example, have highsatisfactory ratings for the attitude and avail-ability of their medical personnel. However,they have low ratings for their medical facili-ties, the availability and adequacy of medicalsupplies, and the quality of medicines andsupplies. Poor households have limitedchoices, thus, they avail themselves of healthcare services usually from public hospitals, ifnot from BHSs and RHUs only, for financialconsideration.

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

by promotion, dropout, and achievementrates. In Dumaguete City, promotion rate forelementary education in 2007 was 96 per-cent, an improvement from 94 percent in2003. It was higher compared to Agusan delSur (86%) and the national average (91%).For secondary education, Dumaguete City’spromotion rate was higher at 90 percent com-pared to the national average (89%) and tothat of Agusan del Sur’s 88 percent.

Dropout rate for elementary education inDumaguete City (0.72%) was lower thanAgusan del Sur’s (1.82%) and that of thenational average (1.26%). On dropout ratesfor secondary education, Agusan del Sur(5.93%) and Dumaguete City (6.17%) wereboth below the national average (9.88%).

For average achievement rate for grade 6,there was a slight decline in the mean per-centage score for Dumaguete City, from 63percent in 2004 to 62 percent in 2007, whichis lower than the national average of 65 per-cent. Agusan del Sur posted a higher rate of71 percent in 2007 from 68 percent in 2004.

On the average achievement rate for secondyear high school, Agusan del Sur's declinedfrom 63 percent in 2006 to 62 percent in2007, but this rate was still higher than thatof Dumaguete City (51%) and the nationalaverage (49%).

In potable water, quality of service is mea-sured by the need for water treatment andachievement rate in meeting the MDGs byincreasing the proportion of households withaccess to safe drinking water. All water sup-ply providers (WSPs) in the surveyed areasuse chlorination as water treatment. On theother hand, personnel from Bayugan WaterDistrict conduct on-field testing of the qual-ity of spring water twice a year.

IssuesThe following are sectoral level policy, insti-tutional, and financial issues and challengesin the sectors cited in the study. Issues at thenational level in the study areas are also dis-cussed in Box 1.

E d u c a t i o nThe country provides a constitutional guar-antee for free basic education but govern-


ment actions in requiring school-aged chil-dren and youths to attend school are notstrictly enforced. Many students who are poormay feel the need to work and help theirfamilies instead of studying. With limitedresources, schools may find it strategicallywise to focus on keeping enrolled pupils inschool while missing to bring all eligiblepupils to school. This, however, works againstthe universal basic education objective.

While there are clear organizational perfor-mance indicators, it is unclear whether thereare guidelines on setting targets and account-abilities at the regional, division, district, andschool levels. Only the Secretary is clearlyaccountable for all education outcomes butcontrol over resources has been distributedthroughout the bureaucracy without clearaccompanying responsibilities.

The OOE are already low but in addition,there are many cases of low utilization of al-located funds because of procedural require-ments, particularly for elementary schools.Schools without finance officers depend onthe division or nearby schools with financeofficers for disbursement of their MOOE.This dependence hampers fund utilizationas well as reduces the influence of the schoolon the kind and quality of the purchases

charged against their MOOE. Procedural re-quirements, such as monthly liquidation ofcash advances, further slow utilization offunds that have already been allocated.

Policy prescribes budgeting from districtlevel up to the regional level. One strategythat was advised said that budgeting shouldbe based on situational analysis and schoolinvestment plans (SIPs). However, there areevidences indicating that varying schoolneeds are not considered in departmentbudgeting.

For one, school MOOE is computed percapita and the same for all schools. The Spe-cial Education Fund (SEF), on the otherhand, is based on real property tax (RPT)revenues which are usually low in poorer ar-eas; hence, poorer areas which usually needmore resources, do not get the needed fi-nancial support.

Public schools are prohibited to collect feesbut due to the insufficiency of their MOOEallocations, they are forced to collect contri-butions through the parent-teacher-commu-nity associations (PTCA). However, despitetheir increasing role in mobilizing resourcesfor schools, the PTCA's capacity to managetheir finances and administer programs ap-pear to be weak as indicated by absence/poorquality of financial reports which are criticalin voluntary contribution schemes.

The education sector is experiencing over-lapping and unclear roles that affect deci-sions and actions as well as accountability.The Local Government Code created theLocal School Boards in the provinces, cities,and municipalities, while school governingcouncils (SGCs) and SIPs are created byBESRA for school-centered institutions, pro-cesses, and tools. There is also no clearguidelines on resource allocation acrossschools and geographic areas. This has re-sulted into different roles played by differ-ent stakeholders varying from school toschool and from LGU to LGU, suggestingthat the existing definitions are not clearenough.

There appears to be coordination failuresin school building programs and provisionof school furniture. Prioritization of school

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


Box 1. National level policy, institutional, and financial issues and challenges in the education,health, and potable water sectors

EducationThe education sector is not decentralized, thus, it hasmaintained its top-to-bottom chain of command with theSecretary of Education running the field, regional anddistrict offices, school divisions, and public and privateschools.

a) Sustainability of performance goals. In SY2007–2008, participation rate in elementary educationhas improved but it failed to sustain the highestparticipation rate of 89 percent for elementary educationin SY 2003–2004. Also, since 2006, there has been adeclining rate in gross enrolment ratio for primary andsecondary education.

b) Quality education. While achievement rates inthe elementary and high school levels have improvedin Science, Math, and English, the Philippines is not atpar with the quality of education given by otherneighboring Asian nations. This is shown by the poorperformance of the fourth-grade and eighth-gradestudents in Math and Science subjects when comparedto international standards.

c) Shortage of educational inputs. Through theyears, the DepEd experiences difficulties due to thelack of teachers and classrooms around the country.Slowly it has addressed its teacher and classroomshortages despite budget constraints. However, thedeficits in the educational inputs remain to be huge.

d) Quality of teaching staff. Teachers withappropriate qualifications in Science, Math, and Englishare wanting in the country. The need to addressteachers’ training and benefits should be one of the toppriorities of the department to aid the lagging educationalstandard of the country.

e) Inadequate spending for basic education. Incomparison with other neighboring Asian countries,the country has spent less in the primary andsecondary levels that is attributed to the low Trend inInternational Mathematics and Science Study marks.In addition, demand-side interventions which are thesafety net measures for poor students such as schoolsupplies and feeding programs must be given equalimportance, along with the supply-side input ofclassrooms, textbooks, and teachers.

f) Slow implementation of crucial law, plans, andstrategies. Republic Act 9155, Philippine EFA 2015,

and BESRA are mandated to address the institutionalproblem of the DepEd. The slow implementation of thelaw, plans, and strategies, however, impedes the de-livery of education services and weakened the educa-tion outcomes, as well as the country’s competitive-ness in the international community.

g) Strengthening the SBM. At present, DepEdmaintains a centralized decisionmaking process despitethe passing of RA 9155 or the Governance of EducationAct that gives SBMs the authority to decide on theirown as to what project, programs, and further actionsto pursue for an improved school environment.Improved education service, thus, can be attainedthrough development of educational plans for thedivision, monitoring implementation of division educationplans, and encouraging schools to undertake innovativeprojects, among others.

h) Tension between central and local authoritiesor field offices. Education is not yet a devolved sector.As such, LGUs have limited powers, duties, andfunctions in the education decisionmaking process. Toadd, the strained coordination between DepEd andLGUs hampers the priorities and outcomes set for theeducation sector.

i) Strengthening of local school boards andschool governing councils. LSBs as the coordina-tors between the central and local governments mustbe empowered to influence and redirect allocated bud-get across schools and expenditure items. They mayalso be given the authority to hire, fire, and deployteachers. This is in contrast to the current setup of theLSBs’ budget that is regularly used only in infrastruc-ture projects and recurring sports events.

HealthIn contrast to the education sector, the passage of the1991 Local Government Code paved the way for thehealth services delivery to be given to LGUs. Thus,the DOH’s current tasks include policymaking, regula-tions, leveraging for health, technical assistance provi-sion, and tertiary health care.

a) Slow reduction of maternal mortality ratio. It isironic that maternal mortality rate in the Philippines con-tinues to be high when these deaths are preventable.In comparison with other Southeast Asian nations, thecountry is lagging behind Brunei Darussalam,Singapore, Malaysia, Thailand, and Viet Nam. This


scenario is also negatively affected by the lack or short-age of SBAs who could provide immense help to moth-ers while giving birth.

b) Improving child health. There is a positive de-velopment in the infant and child mortality rate. How-ever, the number one cause of death of Filipino chil-dren aged 1–4 and infants 0–2 is pneumonia, while foraged 5–9 years, the cause are accidents, deaths thatare indeed preventable.

c) Responsiveness of health care system. Ac-cessibility, availability, utilization, equity and quality ofhealth facilities, personnel, and services are the nec-essary attributes to be addressed for the health caresystem to be responsive to the health needs of theFilipino population. An example is the case of the Au-tonomous Region in Muslim Mindanao which hasthe least number of health personnel and is laggingbehind compared to most of the regions.

d) Coordination among LGUs. It has been difficultto achieve coordination of community-based, clinic-based, and hospital-based health services in a com-mon area due to the lack of common purpose anddirections among provinces and municipalities. Withthe LGUs now given the task to health service deliv-ery, a well-coordinated delivery system for both ma-ternal and child health services must immediately beplaced.

e) Lack of institutional capacities. Both the DOHand the LGUs have yet to fulfill their respective dutiesof improving health services. This institutional capacitydeficit has hindered specifically the local delivery ofbetter maternal and child health services.

f) Active involvement and effective leadershipof LCEs. LCEs such as the governors and mayorswho are active and effective leaders, with a strongpolitical will and sense of public service, are great as-sets in achieving better maternal and health servicedelivery in the country. LCEs should consider mater-nal and child health services as one of the priorities intheir provinces as well as investing capital funds forthe improvement of health facilities.

g) Too little Magna Carta benefits. The countryexports many of its nurses and physicians across theglobe. They are the competent health workers whocould have played important roles in the effective man-agement and implementation of maternal and childhealth services. Republic Act 7305 or the Magna Cartafor Public Health Workers is deemed too little for medi-

cal professionals to render their services in barangayand rural health units.

h) The contentious role of TBAs. The World HealthOrganization defines a TBA as a “person who assiststhe mother during childbirth and who initially acquiredskills by delivering babies herself or by working withother TBAs.” Many underprivileged Filipino familieshave continued to rely on their services because of thehigh cost of delivery despite TBA's lack of skills in deal-ing with life-threatening cases such as eclampsia orobstructed labor.

Potable waterSection 17 of the 1991 Local Government Code orderedthe provision of potable water supply and sanitationand other water-related services and facilities. LGUsshould carry out watershed-related activities that usedto be confined only to community-based management,social forestry, and watershed projects.

a) Access and coverage. The 2004 Annual PovertyIndicators Survey (APIS) suggests a slight improve-ment in the access to safe drinking water and access tosanitary toilet facilities. On the other hand, DOH andother water-related agencies must conduct serious ef-forts to answer the sanitation and sewerage problemsin the country. Doing so will aid the elimination of thecommon practice of unsystematic disposal of untreatedwaste matter and sludge.

b) Problem of waterlessness and the President’sPriority Program on Water (P3W). There are onlymodest gains in P3W due to the lack of general guide-lines and criteria for project selection and implementa-tion. The Water and Sanitation Coordinating Office(WASCO) which is tasked to oversee and coordinatethe planning and implementation of P3W created theclassification of access to water based on the P3W defi-nition.

c) Service quality. Continuous supply of water indi-cates good quality of service. As such, quality waterservice should not be hampered with: interruptions insupply and pressure fluctuations, inability to follow waterquality standards because of disinfection and infiltra-tion, and inability to service most of the poorest house-holds in remote areas, act as contributory to water-borne diseases and death due to contaminated water.

d) Water inadequacy for families. Water should beadequate for families to maintain proper hygiene (handwashing, bathing, cleaning of utensils in order to con-trol spread of diseases). Lack of water supply is often


building program is still prone to politicalinterference despite the availability of theBasic Education Information System (BEIS)data which should serve as the definitiveguide for targeting. Coordination betweenthe Department of Public Works and High-ways and DepEd also needs to be improved.There are overlaps between central, re-gional, and division offices in the provisionof school furniture. Another critical issue inthe education sector is the declining LGUeducation spending per capita. Thus, manyLGUs are having difficulty paying teachers’salaries.

H e a l t hThe shortage of health service personnel isconsidered as the primary obstacle in theaccomplishment of maternal and child careprograms. There are few nurses and mid-wives because of the lack of plantilla posi-tions. While it is acceptable to hire casualemployees to augment the shortage, they are,however, not eligible for trainings in theDOH.

One of the greatest challenges in the deliv-ery of health services, on the other hand, ishow to reach patients living in outlying loca-tions. They are located in the mountainousareas which make transportation difficult.There are also no midwives and BHS to at-tend to the needs of pregnant women, chil-dren, and the old. Insurgency problems inthe surveyed areas also make it hard for

health personnel to visit the areas.

Some of the respondents shared their hesi-tation to become PhilHealth members be-cause aside from having to pay a portion forthe card, they learned that those who canafford to pay are also given memberships.Thus, it sends the signal that there are noclear rules on how to identify the true poor.More importantly, it aggravates the feelingof inequality since government also subsi-dized the population who have the capacityto pay.

Potable waterThe potable water sector is compoundedwith problems of jeopardized surface andunderground water resources because ofwater pollution and denuded watersheds.Inconsistencies among barangays and mu-nicipalities in their water service deliveryresulted in barangays and other local areasnot having water at all. Moreover, current fi-nancial investments as well as the qualifica-tion of personnel in the water service deliv-ery are low.

The high rate of water connection has alsonegatively affected residents in the surveyedarea to avail of connection. On the otherhand, water districts cannot afford to lowerthe cost because they will not be able to re-cover their investments. Water service deliv-ery at LGUs suffers from weak and frag-mented organizational structure which re-

related to the absence of qualitative and quantitativedata to show water adequacy for families in far-flungareas where many poor families reside. Limited out-comes of government water programs that should ad-dress water inadequacy, and lack of awareness amongpeople about local and national agencies responsiblefor water supply services also contribute to the short-age.

e) Multiplicity of institutions. The water supplysector in the country suffers from overlapping func-tions, no coordination, and lack of planning and moni-toring duties. “The sector is extremely fragmented. Theproliferation of actors is a result of successive waves ofreforms that have added new layers without completelydoing away with the old. Thus, while the water district(WD) model was introduced to move away from politi-

cal problems inherent in LGU-run systems, the lattercontinue to serve the majority of urban population. And,there are no fewer than 20 government agencies pres-ently involved in the sector” (WB 2008).

f) Weak regulatory framework. A weak regulatoryframework is synonymous to a weak accountabilitysystem. To counter this inefficiency, first, a particularnational agency with clearly defined roles andresponsibilities must give technical assistance to LGUson water availability mapping, promotion of new tech-nology, and low-cost point of use. Second, a particularnational agency with clearly defined roles and respon-sibilities must regularly verify the water quality monitor-ing system of LGUs and WDs, and provide or supple-ment water treatment supplies and capacity strength-ening. DRN


sults in incompetence. Government employ-ees in this sector, to add, are not motivated towork because of their low salaries. As such,the sector faces the problem of how to im-prove its financial capacity; however, the pri-vate sector, donors, and other fund sourcescan help raise the budget needed as well asdevelop cost-effective technologies to raisefinances.

RecommendationsE d u c a t i o nFor a better MOOE allocation, one of therecommendations is for the division officesto increase the share of MOOE provided incash to dependent schools.

To achieve coordinated assignment of expen-diture items, the SIP should become theframework for school-based expenditureneeds. For its part, the SIPs will be broughtto the attention of the LGUs and LSBs by theSGCs, whose duty is also to collect and man-age the SEF.

Schools have exerted efforts to keep enrolledstudents in school but not in enrolling allschool-aged children. Partnerships amongthe DepEd, Department of Interior and Lo-cal Government, and the leagues of prov-inces, cities, and municipalities can craftguidelines and lobby for the passage and/or enforcement of antitruancy ordinances inall localities.

There has been a huge demand for teachersbut LGUs do not have the capacity to pay theirsalaries. In turn, LGUs are more interestedin getting para-teachers and volunteers whoreceive lower wages and have no benefits,affecting teaching quality. The LGUs can taptheir 20 percent development fund to fi-nance education in their areas.

H e a l t hIn the surveyed areas, priority health pro-grams are LCE-dependent. Because the na-tional government does not clearly statewhich health programs should have nationalfunding, LGUs choose on their own. Suchsituations fail to ensure universal coverageand reduce out-of-pocket expenses from thepeople as well as promotion of public wel-fare. Barangay health workers could play animportant role in making health education

accessible to the public. While many thinkof health care as drug and curative care, pre-ventive care, on the other hand, should be-come a mindset for Filipinos. Media cam-paigns will also help focus the thinking onthe importance of preventive care.

Performance should be worth the allocatedbudget. Matched with actual accomplish-ments of improved health service delivery,LCEs can use this tool to make its depart-ments accountable for the budget given tothem. Agusan del Sur passed a SangguniangPanlalawigan resolution which requires theuse of CBMS to properly target PhilHealthmembers. To reduce leakage, validation ex-ercises at the barangay level should be per-formed.

Potable waterThere is a need for the LGUs to reinforcetheir monitoring and enforcement in areaswhere there are illegal logging and waterpollution. Giving the local population theopportunity to participate in safeguardingtheir water is a welcome help. Equity and fair-ness must be the top consideration in thedistribution of local resources for water ser-vices delivery. This is important in minimiz-ing disparities in water services in variousareas. If needed, the principle can be insti-tutionalized through local legislation.

The potential of barangay waterworks andsanitation associations and small-scale inde-pendent providers should be further ex-plored for them to be utilized as a feasiblemeans of providing water services deliveryin waterless barangays.

Other financial sources for the local govern-ment to be considered are the partnershipwith the private sectors. Development lend-ing institutions, donor agencies, and non-government organizations may also betapped.

ConclusionAt the onset, decentralization with the prin-ciple of providing LSD from the grassroots levelis an enabling environment for improved LSDfor the local population. On the other hand,better LSD is a mix of clear explanation of roles,functions, and accountabilities which starts

24


The September 11 bombing, terroristattacks, and the emergence of avianinfluenza are just some of the global

and regional threats that have emerged inthe past years. As these have debilitatingimpacts on states and the people, the scaleand enormity therefore require regional andglobal solutions.

Increasing global and regional interdepen-dence, while serving in many positive ways,increased the vulnerability of the states.Threats such as terrorist attacks fuelled bytransnational illegal money and radical ide-ologies have become more sophisticated, ifnot more frequent than before. Diseases andpandemics also spread much faster as a re-sult of international tourism and migration.Moreover, the pressing issue on climatechange and man-made disasters has com-pounded the susceptibility of countries tonatural disasters.

These, according to Supervising ResearchSpecialist Jenny Balboa of the PhilippineInstitute for Development Studies (PIDS),are among the many issues embodied by theAsia Pacific Economic Cooperation (APEC)in its Human Security Agenda. Composedof the fastest growing economies of the world,APEC is an economic powerhouse that canprovide the platform in crafting regional so-lutions to global issues, and has an impor-tant role to play in maintaining regional se-curity.

In addition to the continued efforts in tradi-tional areas of trade and investment, APEC

Global threats,regional solutions

strengthened its work on human security is-sues from the perspective of ensuring a safeenvironment for conducting business withinthe Asia Pacific region. As an economicgroup, APEC’s interest in human securityrests on the economic dimension, with theend goal of increasing interdependenceamong member countries, enhancing trade,and reducing regional barriers to trade.

APEC’s treatment to human security, how-ever, somewhat resulted in gaps and ambi-guity in the agenda, and fell short in advanc-ing the real essence of human security,added Balboa. Some analysts observe that theeffort to tailor-cut the human security con-cept to fit APEC failed to take into accountthe complexities of the many aspects of hu-man security and lost track of the centralityof the individual as its primary concern.

Human security: an overviewIn the 1994 Human Development Report,the United Nations DevelopmentProgramme (UNDP) expanded the defini-tion of human security from the traditionalcold war definition of defense and survival,to the pursuit of the two basic entitlementsof human beings: freedom from want andfreedom from fear (McKay 2007).

Hence, the two key strategies of human se-curity are protection and empowerment. Pro-tection shields people from dangers. It re-quires concerted efforts to develop norms,processes, and institutions that systematicallyaddress insecurities. Empowerment, on theother hand, enables people to develop their


potential and become full participants indecisionmaking. These two concepts mutu-ally reinforce each other and should alwaysgo hand in hand (Ascharya 2009).

There are many ways of defining human se-curity as it is a huge and encompassing con-cept that touches several issues. And consid-ering the host of emerging issues covered inthis agenda, human security could be con-sidered as one of the toughest agenda in theAPEC at present.

The APEC is still working on ways to inte-grate and weave the various concepts and is-sues in its human security agenda. At present,the four primary initiatives in APEC’s Hu-man Security Agenda focus on food security,emergency preparedness, health security,and counterterrorism measures. APEC alsointegrates other emerging human securityissues such as anticorruption and gover-nance and climate change.

APEC dialogues, symposium, and reportsunder the Senior Officials’ Meeting (SOM)Steering Committee on Economic and Tech-nical Cooperation (SCE) have continuouslytackled these human security initiatives overthe years.

Below are some of the essential findings onthe issues of food security, emergency pre-paredness, health security, andcounterterrorism measures:

Food securityThe APEC points that the focus on food se-curity and agriculture issues is essential be-cause the region is home to leading food-exporting and -importing economies andcontains one-fourth of the world’s under-nourished population. In particular, pursu-ing organic agriculture presents positivepotentials for the APEC region to ensurefood security as continuous studies on itsproduction and productivity gains are beingdone. Studies show organic agriculture pro-vides cost-effective agricultural productionand farming practices plus offers the abilityto mitigate climate change, which is anotherpressing issue that also threatens humansecurity.

In the 2009 APEC International Symposiumon “The Approach of Organic Agriculture:New Markets, Food Security and a CleanEnvironment,” Kuan Meng Goh noted that“organic agriculture has considerable poten-tial for mitigating climate change, largely dueto its greater ability to reduce emissions ofgreenhouse gases (GHGs), nitrous oxide(N2O), and methane (CH4), and also forincreasing carbon sequestration in soils com-pared with that of conventional agriculture.”

During the APEC Japan 2010 conference,the host stressed that it aims to develop stablefood security measures and to prepare a con-crete action plan to strengthen regional foodsecurity through such steps as securing agri-cultural sustainability.

Emergency/Disaster preparednessThe APEC will implement activities that con-tribute to the strengthening of its prepared-ness for all types of disasters, including coor-dinating efforts and resolving differences indisaster-response capabilities of membereconomies. Emphasis will be on strengthen-ing the resilience of the business commu-nity, reinforcing the collaboration betweenthe public and private sectors, and reduc-ing disaster risk.

The 2008 APEC Task Force for EmergencyPreparedness’ (TFEP) dialogue amongAPEC economies, business community, keyinternational and regional partners statedthat the specific sectors of insurance, tour-ism, transport, and microeconomic financ-

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


ing schemes can play important roles andengage more in responding to emergencies.

Health securityAPEC Japan states that it is important tostrengthen the region’s preparedness andresponse to combat infectious diseases likethe H1N1 pandemic influenza. The 2009dialogue between the APEC and the Na-tional Bureau of Asian Research (NBR) inSingapore emphasized that information tech-nology (IT) is a means, and not an end, to ahealthier world. The steps to combat infec-tious diseases are needs assessment,prioritization of needs, and identification ofparticipants’ key interests–organized data/standards, and clear lines of communicationas foundation to the process. Case studiesdemonstrated that IT systems for health carecan be used to address a range of challenges,including H1N1 outbreaks.

Counterterrorism measuresAPEC 2010 host, Japan, will strive to discussthe current status of counterterrorism mea-sures and policies to supportcounterterrorism capacity building. Duringthe APEC Japan 2010 conference, initiativesconcerning trade security, aviation security,counterterrorist financing, and food defensewill be forwarded to the group.

The 2008 APEC Final Report on “EffectivePublic-Private Partnerships to Counter Ter-ror and Secure Trade” presented that en-hancing public-private partnerships (PPP)to counter terror and secure trade is benefi-cial for the APEC, especially to the privatesector which plays the key role as owner ofcritical infrastructures like telecommunica-tion, energy and transportation, among oth-ers, in the global economy. This situationplaces the private sector with a high stake inany terrorist attack. The report stated thattrust is a critical enabler for PPP and APECcan help by providing a platform for sharinginformation and building the network for thetwo sectors.

Concluding remarksDespite the identification of and plans forthe four major initiatives, as discussed in theAPEC symposium, Balboa points out thatgaps and tensions exist and that APEC is yetto create a coherent framework that will

seamlessly address the issues as part of thebroader Human Security Agenda. Balboaadded that the global financial crisis inten-sified the complexities of the agenda becauseit affected government spending patternswhich could likely turn human security intoa marginal domestic and regional issue sincegovernments need to channel resources tomore urgent needs like food, health care,and other basic social services to offset theimpact of the crisis.

As a regional group, APEC should take alead role in: helping member economiesdevelop effective domestic policies to ad-dress the emerging issues under the Hu-man Security Agenda; identifying the po-tential positive synergies between theagenda and the financial crisis to help cre-ate the business environment for the pri-vate sector to take part in this agenda; build-ing strong institutions at the regional levelthat will allow the region to take a moreactive role in advancing human security;and developing policy tools that will insti-tutionalize the agenda and its specific pro-grams at the national and regionallevels.APQ

ReferencesAcharya, 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 pre-sented at the APEC Australia 2007 Centres’ Conference.

Feinberg, R. and J. Lawrence. 2006. Improving APEC’s Coher-

ence. Paper presented at the Preliminary Conference forAPEC 2007. 11–12 December. Melbourne, Australia.

Feinberg, R. 2009. Voluntary multilateralism and institutional

modification: the first two decades of Asia Pacific Eco-nomic 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 GeneralAssembly Interactive Panel on the Global Financial Cri-

sis. 30 October.

McKay, J. 2007. How far can the human security agenda run? inDriving Growth-APEC’s Destiny. A compendium of papers

presented at the APEC Australia Center Conference.

Nanto, D. 2009. The global financial crisis: foreign and tradepolicy effects. Congressional Research Service Overseas

Development Institute. The Global Financial Crisis: Pov-

erty and Socio Protection Briefing Paper. August.United Nations Development Program. 1994. Human Develop-

ment Report.


PIDS study reveals trends and prospectsin Philippine international migration

In the last three decades, internationallabor migration has helped shape thePhilippine economy. It is considered an

enduring feature of Philippine develop-ment.

In their study titled "Philippine Interna-tional Labor Migration in the Past 30 Years:Trends and Prospects," Philippine Institutefor Development Studies (PIDS) SeniorResearch Fellow Dr. Aniceto C. Orbeta, Jr.and Research Analyst Mr. Michael RalphAbrigo said that the drivers and prospectsboth in the local economy and in the majordestination countries will define the futureof migration streams in the country.

The annual flow of Filipino migrants showsthat temporary migrant workers dominate interms of volume, with around 36,000 work-ers leaving the country in 1975 and up tomore than 1.2 million in 2007. Among thetemporary migrant workers, land-based work-ers have comprised around eight of everyten workers leaving annually since the 1990s.This includes the increasing number of new-hires and the even faster increasing propor-tion of rehired workers, which show thatemployers prefer workers with prior inter-national experience.

In the early years of the overseas employmentprogram, the flow of sea-based workers wasgreater than that of the land-based workers,with around 23,500 sea-based workers leav-ing the country in 1975. But 2007 registeredonly about 267,000 sea-based workers leav-ing the country, compared with around

800,000 land-based workers leaving duringthe same period.

The Middle East is the primary destinationof land-based temporary migrants, followedby Asia, particularly the newly industrializedcountries which turned to labor importationto sustain their economic growth.

Land-based temporary migrants are com-posed of professionals, service workers, pro-duction process workers, transport workers,and laborers. The dominance of profession-als in 1975 was replaced by production pro-cess workers, transport workers, and laborersin the 1980s, coinciding with the construc-tion boom in the Middle East. The profes-sionals consist of architects and engineers,health professionals, and composers andperforming artists. Service workers, on theother hand, are mainly composed of maidsand housekeepers deployed around theworld.

When compared with the domestic laborforce, Filipino temporary migrant workers areshown to be younger and better educated.Around seven of every ten temporary migrantworkers are of ages between 24 and 44 yearsold and half of them have at least some ter-tiary education. Majority of the temporary mi-grant workers are women.

Meanwhile, Filipino permanent migrants arein the developed countries of NorthAmerica, particularly the United States (US).Other destinations of permanent migrantsare countries in Asia, Oceania, and Europe


but the proportion is far lower than that inNorth America.

Unlike temporary workers who are mostlyprofessionals and service workers, the largerproportion of permanent migrants are un-employed—housewives, students, and mi-nors—dependents of professionals who emi-grated because of more career advancementopportunities, over and above the differ-ences in wages.

This scenario is created by the family reuni-fication goal of permanent migration in theUS – the prime destination of Filipino emi-grants. Permanent migrants are highly edu-cated which may reflect US immigrationpolicy “to admit workers with skills neededby the economy.” In terms of age, however,the 44 years old and above age category com-prises the largest group, reflecting the pref-erence of employers in hiring more experi-enced workers, in addition to the family re-unification program in the US.

In the case of irregular migrants, a large pro-portion is likewise in North America but thisis already declining from 37 percent in 1997to 28 percent in 2007. However, there is anincreasing number of irregular migrants inEast Asia, comprising around 30 percent ofthe total number of irregular migrants in2007. Other regions with irregular migrantsare Europe and the Middle East, represent-ing 9 and 10 percent of all irregular mi-grants, respectively, in 2007.

Looking forward, meanwhile, Ducanes andAbella (2008) argued that the future of Phil-ippine international migration will dependon long-term prospects highly determinedby certain factors such as:

Domestic economy — it is tied to thecountry’s ability to redeem itself in its his-tory of “inconsistent economic boom” andcatch up with other developing countries.The continuing limited opportunity for ca-reer and professional growth is a push factorthat will determine the flow of migrants outof the country.

Demography — it is observed that there is ahigh population in the Philippines accom-panied by a slow decline in fertility rate in

neighboring and destination countries.Given this dual situation, Filipino migrantscan obviously fill the population gaps andlack of human labor in major destinationcountries.

Politics — it is observed that since the 1980s,the political “adventurisms” of the countryhad contributed to the lack of political sta-bility and led to a push migration to “saferand more stable” developed countries.

Environment — involves frequency of in-tense storms visiting the country and the vul-nerability they bring, especially to largecoastal areas during this time of climatechange.

The primary pull factors to lead internationalmigration of Filipinos are the demographicand migration policy scenario of destinationcountries. Aging countries are expected toincrease their demand for health profession-als and eventually other set of professionalswho will fill the gap in their labor force. Like-wise, migration policies provide the struc-ture on the flow of both permanent and tem-porary workers.

The last of the long-term prospects to lookinto are the network effects—“the increas-ing number of migrants in the population isexpected to deepen (more in the samehousehold) and widen (other households

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

23


Growth alone is not enough fordeveloping Asia. To achieveeconomic stability, the region needs

an inclusive strategy driven by structuralchange that results in the full employmentof the labor force.

In his book Inclusive Growth, Full Employ-ment, and Structural Change: Implicationsand Policies for Developing Asia (London:Anthem Press), Asian Development BankPrincipal Economist Dr. Jesus Felipe pro-poses an inclusive strategy to achieve the fullemployment.

Full employment:key to economic stability

According to Dr. Felipe, the empirical evi-dence indicates that despite the fast growthachieved by many countries across develop-ing Asia (e.g., China, India, Pakistan,Bangladesh, Indonesia, Philippines) in thepast decades, the region is still home to about500 million people who are currently un-employed and/or underemployed.

Unemployment and underemployment arethe major cause of poverty in developingAsia. However, policymakers have not takenunemployment and underemployment asthe number one problem across the region.In the Philippines, for example, unemploy-ment is a “time bomb.” Between 2005 and2030, the labor force will increase by about50 percent, that is, the number of peoplelooking for a job will increase from about 34million to 52 million. The question for thePhilippines is: will the economy be able toprovide jobs for all these people?

Skills mismatch and the lack of human capi-tal are the most commonly cited reasons ofunemployment. In reality, however, it is thesystemic failure of the economy to createenough jobs which is the main cause of mas-sive unemployment. Employment is a basicright and full employment should be theprimary objective of economic policy in thedeveloping Asia.

“Nobody who is willing and ready to work fora just wage should be without a job. Societymust be able to provide jobs for all those will-ing to work. And they should be able to pro-vide jobs for the workers they have and notfor the workers they wish they had,” Dr.Felipe added.

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 FreshPerspective on Critical Development Issues" held at the Philippine Insti-tute for Development Studies' (PIDS), Romulo Hall in Makati City. (Photo:Gizelle Manuel)


A full employment economy offers a greatnumber of advantages. At the individuallevel, the best way for an individual to par-ticipate in society is through a productiveand decent employment. For society as awhole, it results in a reduced need for socialsafety nets; in lower social costs; and in higherpolitical stability.

In the case of the Philippines, immediatepolicy priorities to achieve full employmentshould be population management and jobguarantee programs. Industrialization poli-cies are also crucial. Education does matterfor long-term growth but it is not a key con-straint now and, as noted above, societyshould be able to provide jobs for all its citi-zens. Individuals cannot be left out and stig-matized for being “uneducated.”

For decades, growth and low inflation werethought to lead to job creation. Policymakershave been concerned with controling infla-tion and the fiscal deficit which, in turn, werethought to create stability and employment.Dr. Felipe’s book argues that this approachis incorrect.

Citing the Philippine situation, he empha-sized that the issue is not about slashing bud-get deficits to control inflation. Rather, it isabout redirecting fiscal and monetary poli-cies to achieve full employment with pricestability.

Meanwhile, structural change, that is, theshift of resources from the less productivesectors to the more productive sectors of theeconomy; diversification and sophisticationof production and exports; and discovery ofnew products, is needed to achieve sus-tained growth. In particular, the Philippinesneeds to address problems in the agricul-ture sector, where land reform is still a prior-ity. Likewise, policies that are geared towardindustrialization have to be crafted andimplemented.

Finally, Dr. Felipe stressed the need for thegovernment and the private sectors to worktogether in planning and coordinating de-velopment actions. Both must understandtheir complementary roles in a moderneconomy. While it is true that successfuleconomies are driven by private initiative, itis also true that they always rely on govern-ment policies that promote growth by accel-erating structural transformation.

Developing new industries often requiresa nudge from government, in the form ofloans, infrastructure, or other kinds of sup-port. The key to supporting the develop-ment of new industries lies in the rulesthat guide government support. In the fi-nal analysis, the key to success in the 21st

century lies in creating a climate of collabo-ration between government and the privatesector.CSM

in the same geographic area) the scope ofmigration because of a high probabilitythat migrants will effectively reduce migra-tion costs.”

In the meantime, short-term prospects sug-gest that Middle East countries will con-tinue their demand for foreign workers inthe near future due to the failure of theirprograms to lessen dependence on for-eign labor. One reason is the continuedreluctance of locals to take on the jobs thathave been considered as “foreigner’swork.” The 2009 global financial crisis hashighlighted the need to understand the

international labor migration and remit-tances market better. For instance, at thebeginning of the crisis, it was reasonableto worry about the prospects for the Fili-pino seafarers because of the documenteddecline in global trade brought about bythe crisis. Available seafarer deploymentdata up to the third quarter of 2009, how-ever, did not show a decline but only a de-celeration of the growth. Everyone was alsoexpecting a decline in the flow of remit-tances. Remittance data up to the last quar-ter of 2009, though, likewise show only adeceleration in growth but not an actualdecline.APQ

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DEVELOPMENT RESEARCH NEWSVol. XXVIII No. 3May - June 2010

ISSN 0115 - 9097

Editorial Board: Dr. Josef T. Yap,

President; Mr. Mario C. Feranil, OIC

Vice-President and Director for Project

Services and Development; Ms. Jenni-

fer P.T. Liguton, Director for Research

Information; Ms. Andrea S. Agcaoili,

Director for Operations and Finance;

Atty. Roque A. Sorioso, Legal Consult-

ant.

Staff: Jennifer P.T. Liguton, Editor-in-

Chief; Ma. Aileen A. Garcia, Issue Edi-

tor; Claudette S. Malana and Analia P.

Quion, Writers; Jane C. Alcantara, Ma.

Gizelle G. Manuel and Edwin S. Mar-

tin, Contributors; Valentina V. Tolentino

and Rossana P. Cleofas, Exchange;

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Caturan, Circulation and Subscription;

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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 itsrecipient, the local people.

To add, the effectiveness, sustainability, eq-uity, and quality of LSD greatly depend onthe complex interdependence of policies,institutions, and finance. First, policy mustprioritize human development issues andservices. It also becomes more effective if itis inclusive, equitable, and responsive to themost underprivileged sector of the society.More importantly, LSD must be formulatedand implemented in the local developmentplans that are in line with the regional andnational development plans.

Second, effective local leaderships in thepersons of LCEs are crucial in the attainmentof better LSD. It could be achieved by prac-ticing good governance through the help ofadditional training, education, and leader-ship enhancement of local leaders by corre-sponding national agencies. Institutionalchampions also practice sound financial ad-

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

Third, to finance LSD, local governmentsshould use their own-source revenues. Pri-ority for human development concerns (edu-cation, health, and water) must be empha-sized, with the national government andLGUs spending more on them despite fis-cal deficits and financial crisis. Local govern-ment must also practice allocative and op-erational efficiency to rationalize limitedfunds and scarce resources. Thus, the 20percent local development fund of the IRAshould be used efficiently.

As such, improving people’s lives entails im-proving better delivery of public goods andservices. In the Philippine setting, doing sowill help achieve the MDGs of 2015 that willnot only enhance the lives of Filipinos, es-pecially the poor, but also create a betterPhilippines.CSM

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editor's notes improving local service delivery: a

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