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U n w e a v i n g t h e T o l o s a D e v e l o p m e n t E n i g m a 1

CHAPTER 1

INTRODUCTION

1.1. Objectives of the Study Tolosa, Leyte was chosen by Learning Team 2 as its site for the Rapid Area

Assessment (RAA). The focus of the study is on the governance of Tolosa. Tolosa is a coastal municipality which is said to have potential for eco-tourism, industries, and business investments for development. The adjacent municipality of Tanauan will serve as the benchmark for development, as it is a second class municipality as compared to Tolosa which is still classified as fifth class. This RAA will assess the performance of the Tolosa Local Government Unit (LGU) in its efforts to improve its performance to achieve its vision, mission and goals for the people of Tolosa.

On the whole, the study intends to analyze the external and internal environment

influencing the LGU’s governance. The RAA involve the aspects of environment, motivation, capacity, and performance, as based on the Lusthaus Organizational Assessment Framework.

Specifically, the objectives are: On Environment: To assess the external environment of the subject area with

reference to a benchmark municipality with which to compare, particularly Tanauan, using both external and stakeholders analysis; To evaluate the internal environment of the municipal government of Tolosa, Leyte based on political, economic, demographic, social, environmental and technological parameters.

On Motivation: To identify the congruence of the municipal government’s vision,

mission, core values, and culture with its intended targets and previous performance.

On Capacity: To identify the existing strategies, systems, staffing, and structures in place in the local government’s programs.

On Performance: To evaluate the relevance of the local government’s actions as

well as to measure the effectiveness and efficiency of existing policies and its implementation.

As a result of the RAA, the team will present recommendations that will be

correct, appropriate and responsive to the requirements of the local government for its development as well as the collective development of its people.


1.2. Hypothesis Learning Team 2 hypothesizes that Tolosa may accelerate its development by

adapting the strategies of municipalities that have improved which are proximal and similar to it. In particular, Tolosa can replicate the best practices of Tanauan in their approaches to business, system of education, as well as capacity for social marketing with the end goal of sustainable development. It is perceived that this will contribute to the reduction of poverty and in the enhancement of the livelihood of the people in accordance with the developmental goals of the municipality.

1.3. Methodology

For external analysis, a combination of document review and primary data

gathering through interviews, focus group discussions with key informants and information from the internet was used in the external analysis. Stakeholders included municipal government officials, department heads for health, agriculture, finance, education, tourism, planning and development, and social welfare aside from representatives of the women’s association, youth, fisher folks and barangays, industries, common people, including the marginalized poor. Thus, in this way, primary data was collected and analyzed. The data gathered were considered essential to validating the development challenges that are being faced by the people of Tolosa as well as the emergent opportunities and threats that are crucial for the development of Tolosa. The particular tools used for external used were stakeholder analysis and the PEDSET framework.

For internal analysis, information from interviews with the pertinent municipal

government officers was correlated and cross-checked with their programs, data, performance indicators, and financial statements. The Lusthaus tool for Organizational Assessment was chosen by the team for the analysis. This assessment will help the organization in determining the further initiatives, plans and programs that could be undertaken by the municipality to address the challenges that it is facing. The gaps between the developmental plans with the programs implementation in line with the vision and mission of the local government unit were considered.

The recommendations were drawn after the group discussion about the best

practices of Tanauan which are believed may be viable for replication by Tolosa. Aside from benchmarking, the team also intended to develop impartial recommendations based on the particular situation in Tolosa.

The final report of the findings will be forwarded to the Tolosa Local Government Unit for their consideration and perusal with the hope of contributing to the collective development of this striving municipality.


CHAPTER 2 THE LAY OF THE LAND Tolosa and its Vicinities

2.1. General

2.1.1. Tolosa

Classification: 5th Class Component Municipality Number of Barangays: 15 Total Land Area: 2,171.51 hectares Total Population: 16,839 (NSO 2007)

Male: 8,584 Female: 8,255 Young (0-14yrs old): 6,732 Productive (15-64 yrs old): 9,213 Elderly Group: 894

Total Households: 3,436 Religion: Mainly Roman Catholic 2.1.2. Tanauan

Classification: 2nd Class Component Municipality Number of Barangays: 54 Total Land Area: 6,866.78 hectares Total Population: 48,674 (NSO 2007)

Male: 24,936 Female: 23,738 Young (0-14yrs old): 19,034 Productive (15-64 yrs old): 27,095 Elderly Group: 2,544

Total Households: 9,735 Religion: Mainly Roman Catholic 2.1.3. Leyte Province

Classification: 1st Class Province Number of Cities: 2 Number of Municipalities: 41 Number of Barangays: 1,641 Number of Congressional District: 5 Total Land Area: 5,712.80 square kilometers Total Population: 1,722,036 (NSO 2007)

Population Density: 301 persons/ km2

Annual Population Growth Rate: 1.13% (During 2000-2007 CY) Total Households: 322,579


2.2. The Enigma of Tolosa Underdevelopment in Tolosa is an enigma. Leyte Province is a first class

province. The nearest town, Tanauan, is already a second class municipality. Considering that both Tolosa and Tanauan share the same geographic characteristics as coastal towns with generally similar resources, it seems unlikely that Tolosa should remain as a fifth class municipality as it is now.

While inequality and disparity may be considered as a sad norm in the realities of

contemporary life, the situation of Tolosa is one that begets questions. Why does Tanauan relatively leave behind Tolosa? What are the factors that hinder Tolosa’s development? What is the perception of the people of Tolosa in their plight? How are the people coping with this? What can the local government of Tolosa do to transcend its present status? These questions guide the analysis of the area.

2.3. Partisan Politics

Leyte province is unofficially contested by two families: the Romualdez and

Petilla families. The Romualdez family trace their roots to the landed Lopez family of Leyte who

are believed to have founded the town of Tolosa, Leyte. The Romualdez clan was dominant in the province particularly during the time of former President Ferdinand Marcos. This was because his wife, former first lady Imelda Marcos, hailed from this province particularly from the town of Tolosa which is the subject of this RAA. Imelda Marcos, who currently represents the second district of Ilocos Norte, was once a representative (congressman) of the first district of Leyte from 1995 to 1998. The current representative of the first district of Leyte is Ferdinand Martin Romualdez, the son of Marcos’ brother, Kokoy Romualdez, who was once governor of Leyte for roughly 20 years.

Following the fall of President Marcos in 1986, the Romualdezes ceased to be a

political force in Leyte. (Gaylican, 2007) The Petillas had since resumed domination of politics in the province as the family had for generations. “Various members of the clan serve as mayors and congressional representatives in the province’s other districts and towns” (Gaylican). The current governor of Leyte is Carlos Jericho Petilla.

Although Tolosa is not particularly run by political dynasties today, the influence

of partisan politics remain, with most politicians polarizing affiliation to either of the two families. With most support to political areas dependent on discretion and the resources attached to it, patronage has become inevitable.

2.4. A Constrained Rural Economy

Tolosa generally subsists on agriculture. Fishing and farming provides for direct

source of sustenance to most people as well as their livelihood. Tracts of inland areas


are used for rice farming as well as for growing coconuts. (Municipality of Tolosa, 2010, p. 12)

With the small resource base of the municipality, large scale systems and industries are yet to be based in the locality.

“Those who found greener pastures outside (the country) supported family

members with remittances. This projected an aspect of Tolosa as a prospering middle-class community, contrasted by a picture of absolute poverty in its farming and fishing folks.” (Municipality of Tolosa, p. 15) The team noted that the community has few rich families actually residing within Tolosa, although some would keep homes in this idyllic town. Few can be said to have become rich within Tolosa, as the populace is generally subsisting than thriving.

Aside from agriculture, Tolosa has some commerce, trade and industry to

supplement its limited local economy. The small public market in Barangay Imelda remains to be the center of business and commerce. Outlying barangays operate small sari-sari stores and talipapa along roadsides in Barangays such as San Roque, Opong and Telegrafo. From the public market and these small business operations, the municipality derives revenues in business permits and licenses, albeit relatively small in contrast to the municipality’s requirements for revenue generation. (Municipality of Tolosa, p. 66)

The only industry presently operating in Tolosa is Tacloban Oil Mills whose main

activity is the extraction of oil from copra. The company has been operating tax free for the past five years due to a previous tax exemption applied, and tax revenues will begin to be paid only in 2011.

2.5. Thriving Poverty Amidst Striving Development

Tolosa has 1,086 households below poverty threshold as of July 2010. It is

worth noting however that Tolosa had a relatively lower poverty incidence at 28.42% as compared to Tanauan with 34.15% (2003 FIES).

The National Statistics Office (NSO) estimated the 2007 total population at

16,839 with 3,436 households. By 2019 the populations may grow to 21,659 with 4,420 households. The population gradually increases every year at an average growth rate of 0.0212. (Municipality of Tolosa, p. 29)

“In 2005, the labor force in Tolosa is 5,127 for the male and 4,862 for the female

at an age range from 15 to 60 years old or a total of 9,989. Of these, 4,462 are gainfully employed to support the economic needs of each family, and of which 1,248 are females. This employment is male-dominated and normally headed by an able father who is the family’s primary breadwinner. From the employment data, Tolosa has 3 employed to 4 unemployed or a dependency ratio of 1:1:33 if employment is to be taken as the primary source of livelihood. However, there are families with children even below 15 years old who work to support the family’s income generation. This child


employment is found in almost all economic sectors such in industrial like hollow blocks making, agricultural and business or commercial.” (Municipality of Tolosa)

A significant portion of the youth population below 15 years old continually seeks employment to supplement their families’ income. For this reason, the education drop-out rate in the farming areas remain high. Nonetheless, the drop-out rate of school children tend to increase even in the proximity of the town centers due to lack of motivation. Some parents are reluctant to encourage their children to continue their studies as they themselves had not finished their education. This exacerbates the circle of poverty. Those who do finish their secondary education are beset by financial constraints and poverty itself that they are unable to pursue college education. Some explores the possibility of migrating to Manila or Cebu to seek employment.

The lack of employment within Tolosa poses a problem. Looking for a job in nearby town with better industries is hard, if not impossible. The fact is that LGUs take care of its own populace, such that most companies have the unwritten policy of hiring people from the same municipality. This situation of compartmentalization limits the opportunities for development and sustainment through gainful employment of people from relatively poor municipalities as Tolosa.

The distribution of employment in Tolosa follows:

Employment by Sex and Sector in Tolosa

Type of Occupation/Sector

Total Employable Age (15-60 yrs. Old) MALE % to

TOTAL FEMALE % to

TOTAL Agriculture, Forestry & Fishery

3,914 2,289 44.65 1,625 33.42

Industry 145 70 1.37 75 1.55 Business & Commerce 2,917 943 18.39 1,974 40.60 Tourism No

data

Officials of Government and Special Interest

823 426 8.31 397 8.17

Physical, Mathematical & Engineering Science

246 114 2.22 132 2.71

Technicians & Associate 29 23 0.45 6 0.12 Clerks 182 38 0.74 144 2.96 Plant & Machine Operators & Assemblers

65 55 1.07 10 0.21

Laborers & Unskilled Workers

1,081 774 15.10 307 6.31

Special Occupations 587 395 7.70 192 3.95 TOTAL 9,989 5,127 100 % 4,862 100

(Source: CBMS 2005)


The Average Family Income & Expenditure vis-à-vis Poverty Level:

Average Household Income (Municipal Level)

Average Household

Expenditure (Municipal Level)

Subsistence

Threshold Level (Province)

Food Threshold

Level (Province)

P 497.49 Source: cbms, 2006

No data P 13,919.00 Source: nscb, 2006

P 9,501.00 Source: nscb, 2006

(Municipality of Tolosa, 2010) 2.6. Emergent Social Norms

In a focused group discussion with community representatives, it was noted that

school attendance varies from 85 to 100%. However, it was revealed that the drop-out rate in Tolosa is alarming. Children and teens face the menace of drug addiction. Some youth here take cocaine and marijuana. Other problems in the communities include the high incidence of family separation. Many women are working in far areas away from their homes, sometimes taking care of other people’s children. Since their own children are not taken care of, they skip their school course. Even primary and secondary education is a problem as even since private schools are said to be unable to provide good education. Aggravating the situation on education is that the parents of the children are also not very much interested in their children’s schooling. Child labor apparently seems inevitable in Tolosa.

At the age of 14 to 16 some of teens start their (common law) married life. Of

course this affects their chance of pursuing higher education, or even continuing the present level.

As far as reproductive health and sex education is concerned, it was noted that

the level of awareness is quite low. Even condoms are not commonly used, or its use even disseminated.

2.7. The Life Sustaining Environment

Tolosa has a total land area of 2,171 hectares per the survey conducted by the

Lands Management Bureau of the Department of Environment and Natural Resources.

The existing industrial area located in Barangay Opong was the site of the

defunct INCO Mining Corporation and was expanded with the operation of the Tacloban Oil Mills, covering a total of 15.37 hectares. The Industrial Zone will be further increased to 21.68 hectares which could be reserved for light, medium and heavy industries. An agro-industrial area for integrated farm operations and related product processing activities is proposed to be situated in Barangay Malbog, San Vicente, Quilao, Capangihan and Telegrafo with an area of 17.32 hectares.


Agricultural areas located in the North, Western and Southern part of the municipality cover 294 hectares of irrigated rice land which allow for two crop seasons; about 198 hectares of rain fed rice fields have crops grown once a year. Coconut and other permanent crops cover approximately 908 hectares which is equivalent to 56.90 percent of the total agricultural zone. Other agricultural-use area is a mixed of cash crops like vegetables, fruits trees, shrubs, etc. measures 41.82 hectares.

Tolosa has 9 kilometers of coastline. “Tourism sights like beach resorts and

historical sites lined along the coastline of the town give Tolosa a boost of confidence that the vision to be the Leyte’s premier eco-tourism destination will become a reality.” (Municipality of Tolosa, p. 87) The municipal waters which include a 78.9 hectare Marine Protected Area (MPA) where the Bacoloray & Hilapad reef fish sanctuary is located is foreseen to be a future attraction for divers. The municipality of Tolosa protects the fish sanctuary from illegal fishing through its Bantay Dagat that operates under the Office of the Municipal Agriculture. (Municipality of Tolosa, p. 90)

Exploration for magnetite sand is presently being conducted by North Access

Mining Incorporated (NAMI) to continue the operations of INCO mining, which folded years back.

2.8. Rural Communities in the Information Age

The proximity of Tolosa to the region’s capital has its advantage. Fiber optic

technology for wired telecommunications allowed for expansion of telephone connectivity and opening the possibilities for electronic commerce due to Internet connectivity.

A post office at the town proper is still very much in operation, with one postal

station at San Roque. Print media is available, and the people are kept abreast of national and local

news via radio or television channels on satellite feed. Radio is the most popular and widespread media. Electronic text messaging is now also common.

The level of technology today being availed by the municipal populace has kept it

at pace with the advancement of modern telecommunications. The facilities and high technology transmission is already existent. However, its use is still limited as the majority of the local population continues to be below the poverty level. (Municipality of Tolosa, 2010)

Tolosa LGU is already using computers. However, connectivity between offices is yet to be implemented. Office automation also needs further improvement. Aside from this, educating the LGU staff for greater productivity is necessary.


CHAPTER 3 GOVERNMENT IN STASIS

Tolosa Local Government Unit 3.1. (Under) Staffing the Municipal Government The Municipality of Tolosa is a fifth class municipality. The Tolosa Local Government Unit (LGU) is comprised of 65 permanent and casual employees, aside from 12 elected officials headed by the municipal mayor. 79 contracts of service / job order workers supplement the LGU work force, aside from 13 volunteers. The LGU is organized into offices as follows:

1. Office of the Municipal Mayor 2. Human Resource Management Office 3. Sangguniang Bayan (Municipal Council) 4. Office of the Municipal Treasurer 5. Municipal Health Office 6. Municipal Agriculture Office 7. Office of the Municipal Assessor 8. Office of the Municipal Accountant 9. Municipal Budget Office 10. Municipal Planning and Development Office 11. Municipal Civil Registry 12. Office of the Municipal Engineer 13. Municipal Social Welfare and Development Office

28 regular positions in the organizational structure are intentionally left vacant to

save on expenses for personal services. To cope with this situation, collateral duties are assumed by some personnel of the LGU. Other functional positions that are deemed important by the Local Chief Executive (LCE), such as Tourism Officer, become additional duties of designated personnel. Committees are also formed by the Sangguniang Bayan for varied purposes. However, the project implementors are composed from the personnel of the Municipal Government.

3.2. Collective Direction

Tolosa has identified its vision to become “Leyte’s premiere eco-tourism

destination, a center of education and industry with a vigilant, responsive, and God-fearing Tolosanos living in a peaceful and ecologically balanced environment, with a diversified and self-sufficient economy under a strong local leadership.”

Towards this, the local chief executive and the municipal government identified its 10-Point Executive Agenda:


1. Tourism promotion and development agenda

Eco-tourism is foreseen to be a sector which will help improve the municipality’s revenues. In line with this, the LGU has identified among its priorities the development of a strategic tourism plan, aside from improving on cultural programs and tourism promotion.

2. Participatory governance agenda

Participatory development planning aims to involve the

community’s stakeholders in the LGU’s assessment and identification of alternatives for the common benefit of all. The vigilant and responsive approach aims to strengthen the local government’s partnership with public organizations and non-government organizations. Coordinated service delivery to the barangays is intended.

3. Local health enhancement agenda

In pursuing a peaceful and ecologically-balanced environment, the

LGU has identified that ensuring the health of the local government’s constituents is essential. 100% Philhealth enrollment is targeted. Improving upon the maternal and child care programs as well as the community health program will be integral to the success of this agenda.

4. Environment and natural resource development agenda

In line with the LGU’s vision for eco-tourism, disaster risk reduction

and climate change adaptation should be in place. Improving on the coastal fisheries management will contribute to this goal particularly for the maritime municipal areas. Involving other stakeholders is necessary and thus alliance building will be an important facet in this implementation.

5. Socio-economic reform agenda

To achieve a diversified and self-sufficient economy, the municipal

government identified flagship programs which include livelihood promotion, product development and promotion, and marketing assistance program.

6. Agriculture enhancement agenda

Improving the municipality’s rice production is a principal concern in

this agenda. Alternatives for marine and inland livelihood promotion are also being planned. Agriculture extension programs involving crops and livestock are also being supported.


7. Infrastructure support agenda

In this regard, concreting of the municipality’s road network is a primary concern to provide access from farms and industries to markets. The rehabilitation and construction of LGU structures are also being programmed. Infrastructures to support the relevant sectors of the community are now being prioritized.

8. Information technology development agenda

Extending information technology beyond the municipal

government is being implemented through the Community e-Center project. However, expansion is still necessary. Aside from this, full office automation may be required to improve the delivery of LGU services to the members of the community. Building upon the Information Communications Technology (ICT), a feedback system will be developed and institutionalized.

9. Corporate Reform Agenda

A strong local governance supporting new and existing businesses

will help improve the LGU’s capacity to develop the community. For this, public-private partnerships will continue to be explored aside from establishing investment incentives programs.

10. Fiscal management agenda

The municipal government recognizes the importance of its local tax collection

aside from mobilizing alternative resources. Exploring other revenues is essential to improve the LGU’s support to the communities. This includes optimal handling of business permits and licensing aside from appropriately programming investments.

The Ten-Point Executive Agenda actually builds upon the Eight-Point Agenda of

the previous administration. The latter includes:

1. Participative Planning 2. Focused Delivery of Basic Social Services 3. Human and Ecological Security 4. Maintenance of Peace and Order 5. Municipal Volunteerism 6. ICT Development 7. Local Poverty Reduction 8. Local Tourism and Investment Promotion

The continuity of programs and conscious effort to evaluate and improve is

notable and worth emulating. Nonetheless, the extent of the effectiveness of this agenda had not been measured. Constraints brought by limited finances available for the programs also hindered its implementation aside from other factors. However, no


performance measures and monitoring system were established. Feedback is necessary to ensure that the system will be effective, or if it is functioning at all. 3.3. Autonomy, Decentralization, and Dependence

The 1991 Local Government Code aimed to “bring development to the

countryside” and reduce the dependence of local government units on the national government. (Gatmaytan, 2003, p. 630) Through devolution of powers to the LGUs, they are supposed to be allowed to develop “at their own pace, with their own resources and their own discretion.” (Gatmaytan)

With the 1991 Local Government Code, the local governments were accorded the broader powers for taxation aside from authority to secure grants or donations as well as credit financing. The exploitation of resources under the territories of the LGUs is also subject to sharing with the LGU.

However, taxation requires political will as no elected official will openly support additional burden on the voting population. Furthermore, in the case of small municipalities, taxation can only provide little improvement on revenues. This case is further exaggerated in poor rural municipalities like Tolosa which, aside from having a small tax base, has a significant portion of the population immersed in poverty with a burgeoning middle class which is not far from the poverty line.

Tolosa LGU has autonomy in determining its local spending, the level of taxation and borrowing. With decentralization through the 1991 LGC, it has become responsible for land use planning, agricultural extension and research, community-‐based forestry, solid waste disposal system, environmental management, pollution control, primary health care, hospital care, social welfare services, local buildings and structures, public parks, municipal services and enterprises such as public markets and abattoirs, local roads and bridges, health facilities, housing, communal irrigation, water supply, drainage, sewerage, flood control and inter-‐municipal telecommunications. (Llanto, 2009)

The autonomy of the LGU provided municipalities such as Tolosa the powers to

impose its direction for development, but not necessarily the resources and opportunities required to nurture development. With a small population in just 15 barangays, Tolosa is evidently at a loss as compared to the adjacent coastal municipalities.

The inability of the Tolosa LGU to transcend its existing sustainment level revenue generation has led to a relative stagnation in the development of both the barangays and industries it has. Funds for infrastructure and support services are allocated as funds are available, with no assurance as to when more will come. Providing services to the people of the communities are constrained by the limited budget which has to be spread among a wide range of priorities which must be addressed.


There is a great need for infrastructure, and the meager revenues generated can hardly be used to establish necessary facilities. The established drainage system, for example, has only covered 30% of the requirements of the municipality. (Advincula, 2011) Due this, some communities become prone to flooding. Similar to this is the case of the municipal hall being constructed now. Of the estimated cost of 20 million pesos for the construction, only 500,000 pesos was allocated in 2010 and only 1.5 million is allocated in the 2011 budget. This capital expenditure partly sacrifices some services which were better provided in the previous years.

Aside from the sacrifices necessary to be made and the consequent budgetary

adjustments, the LGU still finds it necessary to request for funding from the Leyte provincial government and An Waray party-list; they have been pledged two and one million pesos respectively. Aside from the municipal hall, other LGU structures are in varying states of disrepair.

LGUs including Tolosa are heavily dependent on the Internal Revenue Allotment (IRA). This dependence is further exploited by two ways which are somewhat opposite: Some LGUS aim to upgrade their municipalities into cities to gain a larger share of the IRA; other municipalities which are relatively poorer seek to retain their lower classification so as to at least maintain the present IRA. Tolosa is an example of the latter.

The formula for allocating the IRA among LGUs is not based on economic grounds. The IRA is not based on need or capacity; thus, winners and losers are created among LGUs. This is aside from the fact that funds allocated exceed the cost of devolved functions. (Gatmaytan, p. 639) In Tolosa, for example, the fund allocated by the LGU for health for the year is expended within just three months. (Benitez, 2011) This observation is valid for other devolved offices, such as that for agriculture.

Tolosa LGU is dependent on the IRA for the sustainment of its operations and programs. The trend in the past three years had shown relatively little if not negligible improvement in terms of revenue generation and in resource allocation. The LGU continues to explore alternative sources of income with relatively little success. Besides improving LGU enterprises and improving taxation systems and collection, empowering the people for their own sustainable livelihood remain as priorities.

It is for this reason that the 1991 LGC promotes an entrepreneurial perspective in

the LGU level. With this, LGUs should not just collect and spend taxes; rather, it should generate income other than the traditional dole-out model. (Rosario, 2005, p. 3) However, until alternatives are made viable to the context of the the small, poor rural municipality of Tolosa, it is apparent that dependence on the regular IRA will continue to prevail. This aside from the dependence on the irregular sources of funding such as donations and subsidies by higher levels of government which always requires lobbying and with no definite assurance that it will be given due the context of the local autonomy of the LGU.


3.4. Devolution in the Context of the Poor Municipality “While provinces and municipalities receive 57% of revenue transfers, they bear 92.5% of the costs of devolution. Cities and barangays receive 47% of revenue transfers, while shouldering only 7.5% of the costs.” (Gatmaytan, p. 654) Despite this challenge, some municipalities have become exemplars for other LGUs. The municipality of Malalag in Davao Del Sur was able to leverage on its tax base and set socialized user charges for health services. (Rosario, p. 9) While this strategy may have worked in Malalag, it cannot be replicated in a generally poor municipality like Tolosa. Most of those who benefit from social services provided by Tolosa LGU can barely support themselves, much alone pay for these services. The LGU even finds it relevant to ensure that 100% of its people will be enrolled into the PhilHealth system, even with full LGU support. This is aside from the fact that the Leyte Provincial Hospital in Palo, Leyte is just one town away, after Tanauan. Other services, such as agricultural support, are still dependent on the Tolosa LGU. The prevalence of the dependency trap extends to the farmers who benefit from the said support. For example, although systems are in place for the subsidized sale of rice seedlings, some farmers do not pay. Despite this constant situation, farmers still expect that farm inputs will be provided by the LGU. (Perez, 2011)

While the LGUs benefit in terms of authority due to the autonomy provided by the

1991 LGC, the responsibilities devolved are not supported by the appropriate resources from the national government. Thus, only the LGUs with sufficient resources, including natural, economic, and human, stand to benefit. (Omega, 2011) The poor municipalities are placed at a comparative disadvantage. 3.5. Tolosa LGU as Entrepreneur

In Tolosa, new or enhanced taxation is difficult to implement without opposition,

and considering the small gains in such, other alternatives are explored. While previously the LGU granted a 5-year tax exemption to new industries such as in the case of Tacloban Oil Mills, a harvester of copra for coconut oil products, regret had set in because of the opportunity cost due to the possible revenues. Thus, new industries that are set to come in will no longer be granted similar tax exemptions.

Entrepreneurship at the level of the LGU can be implemented may be classified

into three ways: First, the LGU itself engages in activities where the private sector fails to come in. This includes ventures in public enterprises as industrial parks and enterprise zones, among others; Second, the LGU may create an environment conducive for enterprises to establish itself in through tax holidays or exemptions from regulation; Third, the LGU may act as both entrepreneur and promoter. (Rosario)

In the aforementioned ways for LGU entrepreneurship, Tolosa has made

headway with the first alternative as it now proposes through its Comprehensive Land Use Plan (CLUP) the zoning of areas primarily for the establishment of an industrial


park for private venture. The CLUP was approved in 2010 by the Provincial Government of Leyte. As regards to the accompanying Comprehensive Development Plan (CDP), it has been approved by the Sangguniang Bayan and forwarded to the Leyte Provincial Government and is presently the subject for review.

In creating the environment conducive for businesses, Tolosa was able to

maintain a very low crime rate. In terms of taxation, however, exemptions are no longer considered to be given. The loss of potential income as experienced in the operation of a local coconut oil mill is thought of as a significant of revenues that may have been collected. For the third way identified, Tolosa through its Local Chief Executive continues to promote the municipality for attracting new investors. 3.6. Taxing the Poor

The demographic characteristics of Tolosa reveal a significant population that is

poor. Nevertheless, the disparity between the poor and non-poor is not great. In fact, those who are not poor are just above the poverty line. This lack of disparity makes for a lack of leverage upon which socialized taxation can be implemented. Such socialized taxation may have little effect on revenues.

Improving tax collection may increase revenues to a certain extent but revenues

will still be constrained by the people’s capacity to pay. Rather than devolving the power to tax to the LGUs, it may be more sensible to

devolve expenditures as taxation may create vertical externalities in terms of high tax rates that the populace cannot cope with. “Decentralization may work best in socially and economically homogenous communities.” (Gatmaytan, p. 653) 3.7. Friends and Foes in One Government

Aside from the IRA, Tolosa LGU continuously seeks irregular sources of funding

such as donations or fund transfers from the national and provincial governments, as well as allotments from legislators which include senators, district representatives (congressmen), and sectoral (party-list) representatives.

While the control and distribution of the IRA is now defined by the law and

determined by a formula, although imperfect, it has wrested the President’s discretion over it. To end patronage politics in this regard, the Constitution provided that “local government units shall have a just share, as determined by the law, in the national taxes which shall be automatically released to them.” (Gatmaytan, p. 632)

Affiliations to political parties unfortunately come into play. Although the 1991 LGC sought to remove patronage politics between the national and local governments, this system continues to prevail today. A significant source of funding for development, the Countrywide Development Fund (CDF) of senators and congressmen, is subject to discretion. The discretion, unfortunately, remains largely personal and political. For example, CDF support for the construction of the municipal building was aligned instead


for the construction of the legislative building. The sudden change in allocation may be attributed to the different party affiliations of the incumbent mayor and the district representative. For 2011, no CDF funded project is programmed for Tolosa as compared to the previous years when the mayor was a political ally. (Ocana, 2011)


CHAPTER 4 DEVELOPMENT IN CONTRASTS

Tolosa and Tanauan / Tolosa versus Tanauan 4.1. Organizational Performance

4.1.1. Effectiveness Although Tolosa and Tanauan are located adjacently with very similar conditions,

their levels of development are different. Tanauan is one of the 2nd class municipalities while Tolosa is classified as a 5th class municipality with 1,086 below poverty Incidence threshold households. To manage LGU performance in local governance, three key inputs of the state of local governance performance, financial performance and state of local development of the municipalities are used for the Local Governance Performance Management System (LGPMS), a tool that helps LGUs assess their performance, identify development gaps and limitations in delivery of essential public services.

The State of Local Governance Report (SLGR) provide vital information, guides

decision makers and influence local actions towards better governance, progressive financial condition and continuing socio-economic and environmental development. The performance comparison between Tolosa and Tanauan as the benchmark was done based on the site interviews and SLGR.

State of local governance performance. There are five areas on local

governance it includes administrative, social, economic, environment and valuing fundamentals of governance to be considered. In 2009, the overall performance index of five areas obtained by Tanauan and Tolosa municipalities were 4.15 and 3.62 respectively as presented in the following table.

Local Governance Performance

No Performance Area Tanauan

Performance Index Tolosa Performance

Index 1 Administrative 4.19 4.00 2 Social 4.26 3.31 3 Economic 4.56 3.64 4 Environment 3.55 2.84 5 Valuing Fundamentals of Governance 4.17 4.31 6 Overall Performance Index 4.15 3.62

(Source: Tolosa and Tanauan State of Local Governance)

Although Tolosa got rather high capacity level at Administrative and Valuing Fundamentals of Governance areas, the performance index of other three areas were relatively low in comparison to those of Tanauan.


1. Administrative Governance The Tolosa’s Administrative Governance looks into six sub-areas with their

relative performance scales: Revenue Generation (3.52), Resource Allocation and Utilization (3.71), Local Legislation (3.95), Development Planning (4.07), Human Resource Management and Development (4.20) and Customer Service (4.60). In respect of Revenue Generation, although the local-sourced revenue of 2,342,480.00 Php in 2009 increased to 4,634,356 Php in 2010, the existing measures in support of revenue generation still need to be enhanced for sustainable efficiency. This is an initial yet essential step in maximizing revenue generation potentials from multiple sources of fund. Besides, the performance scale of Resource Allocation and Utilization was also low, meaning the management and coordination processes for budgeting and accounting need to be revisited and improved. They are guarantees to an effective allocation and optimum utilization of financial resources. Local Legislation was the 3rd lowest performance sub-area. We suggest that LGU will be imperative to look into legislative staff competence and the greater use of legislative tools such agenda development, legislative tracking, backstopping committee and legislative performance.

2. Social Governance While this area performance index of Tanauan was high at 4.26, the performance

index of Tolosa was much lower at 3.31. The reason was due to weak support provided to the sub-area of Support to Housing and Basic Utilities whose performance scale was at 1.00 only. There will need, therefore, key actions to deliver the services to the clients: 1. Complete an inventory of informal settlers, makeshift houses, sites for potential socialized housing, households with no access to potable water supply, and households with no access to electricity. 2. Call for the donation of a local government lot for socialized housing, or provide socialized housing or mass dwelling in partnership with the private sector.

3. Economic Governance It is noticeable that LGU of Tanauan obtained the overall performance index of

4.56 which had an adjectival rating of high. Amongst three sub-areas of Agriculture Sector, Fishery Services, and Enterprise, Business and Industry Promotion, the last one garnered the highest rate at 4.77. The adherence to Anti-Red Tape Act of 2007 or RA 9454, the computerization of permit processing and the creation of One-Stop-Shop to better serve the clients projects made Tanauan as well-known business and client friendly municipality.

Tolosa also acquired a very high rate on Enterprise, Business and Industry

Promotion at 4.83, however, under increasingly competitive environment, Tolosa LGU should institutionalize a more business-friendly environment through the activities such as: 1. Ensure the ease of doing business 2. Strategize to effect the issuance of building, occupancy, and business permits in a more expedient manner.


In order to improve the overall economic governance performance index, stronger support should be made by LGU to the key fishery services sub-area whose performance scale was very low at 1.96. The key actions should be taken includes: 1. Mobilize the Fisheries and Resource Aquatic Council to help protect and manage municipal water, and to implement its mandated tasks 2. Improve infrastructure support for the fishery sector, e.g., mariculture parks, fish ports, seaweeds village ecozones, sea cages, among others 3. Improve credit facilitation services to the fisher folks 4. Extend adequate production support services, e.g. fingerlings 5. Provide assistance to research and development services, e.g., techno-demo cooperators 6. Improve market development services for the fishery sector.

4. Environment Governance Although the Tanauan’s Environment Governance index was 3.55, higher than

that of Tolosa at 2.84, it was the former’s lowest performance rating due to poor freshwater and urban ecosystem management. During our interview, Tanauan LGU officer admitted that the key reason of such low performance was due to inadequate support from NGOs, POs, the private sector and the general public also. This is a good lesson for Tolosa LGU.

Low performance index means that Tolosa had made minimal efforts or had

limited capacity for this area. Having experienced the urbanization impacts and improved knowledge on the importance of the forest in terms of biodiversity and its effects to the water resource, agriculture and mankind, the way forward for Tolosa LGU is to improve the performance through stronger leadership in anticipation, preparation and action taking, maximizing CSO’s and citizens’ involvement in the protection and management activities, strengthening the capacity of Solid Waste Management Board, and at the same time setting and attaining the targets for rehabilitation and protection of all the sub-areas through sustainable measures.

5. Valuing Fundamentals of Governance Tolosa’s overall performance index for this area was 4.31, higher than that of

Tanauan at 4.17, thanks to the former’s remarkable transparency in governmental operation sub-area with excellent rating of 5.0. Its initiative of diversifying the communication methods to the public through Bulletin Board, Public Information Office or Desk, print, broadcast media, website, and forum was also a key factor. Tolosa LGU’s effort to improve financial accountability was acknowledged. However, strengthening Civil Society Organizations (CSO) participation in Local Special Bodies and the Citizen Feedback System including maximization of CSOs engagement in development projects is a MUST action.

4.1.2. Efficiency

Financial Performance


Municipality’s financial performance is divided in to two parts: 1. Revenue Generation includes six sub-areas of cost to collect revenues, locally sourced revenues to total income, regular revenue to total income, locally sourced revenue level, locally sourced revenue per capita and real property accomplishment rate; and 2. Resource Allocation and Utilization includes personal services expenditure ratio and total expenditure per capita.

As financial performance is compared amongst LGUs who are in the same type

and income class, and due to the fact that Tolosa and Tanauan are in different income classes of municipality, we tried to compare their performance with the national average municipality in this case.

1. Revenue Generation

Municipality of

Tanauan (2nd Class)

Average 2nd Class

Municipality

Municipality of Tolosa

(5th Class)

Average 5th Class

Municipality

National Average

Municipality

Cost to Collect Revenues

42.63% 41.57% 2.74% 53.53% 46.48%

Locally Resourced revenue to total income

21.89% 18.68% 9% 14.98% 18.09%

Regular Revenue to Total Income

97.11% 84.21% 100% 84.66% 83.58%

Locally Sourced Revenue Level

15,834,836 (Php)

10,762,091 (Php)

2,342,480 (Php)

1,678,707 (Php)

17,255,698 (Php)

Locally Sourced Revenue Per Capita

325.32 (Php)

237.56 (Php)

139.11 (Php)

1,232.88 (Php)

904.21 (Php)

Real Property Accomplishment Rate

108.14% 75.35% 49% 68.93% 75.43%

(Sources: Tolosa and Talauan Municipality LGUs)

When compared Tanauan with Tolosa, Tolosa’s contribution of Locally Resourced revenue is extremely low, only 9% of the total income and far below that of national average rate of 18.09%. But in Tanauan, this contribution is relatively high, 21.89% of the total income, which exceed the rate of national average rate. Locally sourced revenue per capita is relatively lower in both Tanauan and Tolosa than the average national level. But Tanauan has achieved a higher per capita ratio than the average 5th class municipality ratio. This shows Tolosa’s high dependence over the external sources of income, particularly on IRA. Over 90% of total revenue in Tolosa comes from IRA, showing the municipality’s inability to generate income from local income generation activities; While Tanauan has been successful in attracting


investments and thereby increasing its business income and tax revenue. Although the cost to collect revenue in Tolosa is very low in comparison with Tanauan and National average ratio, it is not a sign of the efficiency or effectiveness of the municipality due to the lower contribution of internal sources and higher dependency on external sources. Tolosa’s comparatively smaller tax base and rates have been produced disadvantageous consequences regarding tax revenue. The less priority for attracting investment and other local income generation activities seem the reasons for the low contribution of internal revenue sources.

Being an area which is highly suitable to promote eco-tourism and with an

industrial zone, Tolosa has opportunities to attract more investors to the area and thereby increase business tax revenue. But, still they are limited only to TOMI. The present Mayor regrets of granting tax exemption to TOMI and will never grant any tax exemption in future seeking it is a huge lost to the municipality. He does not predict the long-term benefits enjoyed by tax reliefs/ exemptions. Either they have no any other appropriate strategy to attract new investments. In case of tax receipts, Municipal tax collection is not aggressive enough to augment revenues generated locally. Delinquent tax payers in business sector and public are also a cause for low tax revenue. Public motivation and sense of ownership is less and the municipality has to run after them to collect tax. This is not a positive sign for the financial sustainability.

2. Resource Allocation & Utilization

Municipality of

Talauan (2nd Class)

Average 2nd Class

Municipality

Municipality of Tolosa

(5th Class)

Average 5th Class

Municipality

National Average

Municipality

Personal Service Expenditure Ratio

62.50% 47.73% 62.01% 55.66% 50.15%

Total Expenditure Per Capita

6,180.37 (Php)

1977.22 (Php)

1,614.25 (Php)

2,810.85 (Php)

2036.45 (Php)

(Sources: Tolosa and Tanauan Municipality LGUs)

As well as the revenue, total expenditure per capita is also much higher in Tanauan (P 6180.37) than that of Tolosa (P 1614.25) and national average ratio (P 2036.45). In both Tanauan and Tolosa, the biggest chunk of total expenditure goes to personnel services. In 2009, sixty two percent of the total fund allocation for local government is consumed for personnel services by both municipalities, much higher than the national average amount. Only twenty percent of IRA is usually allocated for Development programs and fund allocation for capital expenditure is extremely low. That is a major drawback, which can be observed in fund utilization, which results in hindering the development of Tolosa.


While revenues remain limited, expenditures would now be made to fit into optimal strategies to push determinedly Tolosa’s aspiration for growth, despite the emerging trend of its socio-economic requirements outpacing resources and production, due to increased population and greater social necessities.

4.1.3. Relevance

The State of Local Development of the two municipalities could be used to

assess the relevance of the LGUs involved. The State of Local Development covers 3 areas of Social Development, Economic Development and Environmental Development. The development conditions manifest the results of actions or neglect of all the stakeholders in the locality. Stakeholders refer to those who are capable on influencing policy, those who are in position to formulate, implement and control a policy and those who are affected by the policy.

In 2009, the overall development index of both Tolosa and Tanauan were

similarly low as tabulated below.

State of Local Development

No Development Area Tanauan Development Index

Tolosa Development Index

1 Social Service Development 3.42 3.27 2 Economic Development 1.25 2.00 3 Environmental Development 4.02 2.78 4 Overall Development Index 2.86 2.68

(Sources: Tolosa and Tanauan LGU) 1. Social Service Development One difference observed during the investigation is that while the Social

Development area of Tanauan included four sub-areas of State of Education, State of Housing and Basic Utilities, State of Health and State of Peace and Order with the fairly low overall development index at 3.42, the Social Development area of Tolosa just included the first two sub-areas with the overall development index at 3.27.

In term of education in Tolosa, the elementary participation rate was intolerable

with very high dropping rate; the tertiary or technical education completion rate was very low while the quality of human capital was an issue. The fundamental reason of this situation was poverty. Poverty, low education and having many children issue was like a vicious circle for the poor people here.

The fairly low development index indicated that not enough effort had been

provided by the LGU to this area. Although the Local School Board (LSB) was operational with the composition in accordance with LG code, LSB’s operation was not very good and more assistance fund should have been provided by LGU for the education research, purchasing books and periodicals, maintenance public library, establishment of extension class etc.


To enhance this sector development, the LGU should strengthen its partnership

with Department of Education in Tolosa and also build linkages with concerned NGOs/ POs in formulating plans and programs that will address basic education and skills achievement for its constituents.

In respect of state of housing and basic utilities sub-area, while Tanauan’s

development rate was 3.83, Tolosa did not have supporting data. The latter LGU currently does not maintain a database for housing sector. However, as reported in e-SLDR, the percentage of households without their own houses was extremely high, prevalence of squatter or informal dwellers was unbearable, prevalence of households with makeshift houses was extremely high, access to sanitary toilet facility was an inconvenience to a number of households, health and sanitation was at stake.

Tolosa LGU should urgently examine the current situation and develop proper

solutions that help improving its constituents’ living conditions. 2. Economic Development In 2009, the index of Economic Development which reflected Tolosa and

Tanauan’s state of employment and income was extremely low, at 2.0 and 1.25 respectively. This rating brought about by extremely high unemployment and underemployment rate in both localities. As a result, incomes per capita were very low and many families lived below the poverty threshold.

A surprising observation was that Tolosa’s Economic Development was higher

than that of Tanauan. It indicated higher unemployment rate of the latter due to bigger number of working aged population.

3. Environment Development While Tanauan’s overall Environment Development Index was fairly high at 4.02,

Tolosa only obtained a very low rating at 2.78. Tanauan obtained such high index because the LGU seriously maintained the

urban environmental condition with trees covering over 20% of the total area, and all industries located in the municipality hold pollution control facilities. Town centers were free of smog and odor and noise level was very low. Besides, the fresh water ecosystem was also well within the benchmark with low pollution load in fresh water areas. Development index of the sub-area was high at 4.67.

No supporting data was acquired from Tolosa LGU’s designated environment

officer because there is not any environment database in use. Many problems were identified as the causes of low overall Environment Development index in Tolosa such as the presence of polluting industries, low percentage of irrigated land to total irrigable land, low priority for agricultural land development. Crop yield indicates low agricultural


land productivity. Otherwise, currently forest cover in forest land is denuded and both fresh water and coastal fish catch have decreased over the past 3 years.

In order to secure sustainable development, high production and productivity,

and a healthy community, the problems should be controlled and redressed urgently by LGU and its stakeholders soon. It is necessary to have one full-time professional personnel for environment sector also.

4.2. Organizational Capacities

4.2.1. Leadership The leaders of Tolosa, Leyte and Tanauan, Leyte are key players in the

operation of their respective local government units and drivers towards the municipalities’ development directions. The Local Chief Executives (LCE) or the Mayors and the Sangguniang Bayan or Municipal Legislative Council lead the municipalities. These leaders are supported with different departments of the Local Government Unit (LGU) and some national agencies like Department of Interior and Local Government (DILG), Philippine National Police (PNP), Bureau of Fire Protection (BFP), Department of Education (DepEd), Department of Agrarian Reform (DAR), Philippine Postal Office and Philippine Coconut Authority (PCA).

The Comprehensive Land Use Plan (CLUP) of Tanauan, Leyte has intensely

defined the role of the LCE by citing the Local Government Code.

“The Municipal Mayor, as the Chief Executive of the town, shall exercise such powers and perform such duties and functions as provided by the Local Government Code and other laws. …he shall perform such functions and duties pursuant to Section 16 of the Local Government Code. One of the most significant functions is to direct the formulation of the Municipal Comprehensive Development Plan that will embody all the development programs and projects of the Municipality with the assistance of the Municipal Development Council and upon approval thereof by the Sangguniang Bayan, implement the same. He shall also ensure the delivery of basic services and provision of adequate facilities as provided for under Section 17 of the Local Government Code. Further, he shall initiate and maximize the generation of resources and revenue and apply the same to the implementation of development plans, programs, objectives and priorities as provided for under Section 18 of the Local Government Code particularly those resources and revenues programmed for agro-industrial development and countrywide growth and progress.” (Municipal Planning and Development Office of Tanuan, Leyte, 2010-2019)

This conscious definition of the LCE’s role in the development of the municipality

only shows that leaders in this municipality know the development tasks of the key person in the community. The former LCE, Roque A. Tiu had indeed accomplished


most of these tasks during his term and these are continued until now with the current LCE, Atty. Agapito Pagayanan. In an interview with Ms. Imelda Omega, the former Municipal Local Governmernt Operations Officer (MLGOO) of Tanauan, Leyte and now MLGOO of Tolosa, Leyte, she shared that “Mayor Tiu is really a development-oriented leader. He was much focused in implementing development programs. And his strong political-will made Tanauan succeed in so many of the LGU development initiatives.” She added “Mayor Tiu had really the capacity to gather support from different stakeholders, support agencies, and financial institutions”.

In addition to this, the LGU had further gave emphasis on the roles of the Sangguniang Bayan (SB):

“The Sangguniang Bayan as the legislative body of the municipality, is enacting ordinances, approve resolutions and appropriate funds for the general welfare of the municipality and its inhabitants pursuant to Section 16 of the Local Government Code and in the proper exercise of the corporate powers of the municipality as provided for under Section 22 of the Local Government Code, and shall: 1. Approve ordinances and pass resolutions necessary for an efficient and

effective municipal government; 2. Generate and maximize the use of resources and revenues for the

development plans, program objectives and priorities of the municipality as provided under Section 18 of the Local Government Code with particular attention to agro-industrial development and countryside growth and progress;

3. Subject to the provisions of Book II of the Local Government Code, grant franchises, enact ordinances levying taxes, fees and charges upon such conditions and for such purposes intended to promote the general welfare of the inhabitants of the municipality;

4. Regulate activities relative to the use of land, buildings and structures within the municipality in order to promote the general welfare;

5. Approve ordinances which shall ensure the efficient and effective delivery of the basic services and facilities as provided for under Section 17 of the Local Government code; and

6. Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinances.” (Municipal Planning and Development Office of Tanuan, Leyte, 2010-2019)

Having cited this in their CLUP, it indicates that SB members as leaders are

also aware of their tasks. It also shows that task for development is not solely lodged in the hands of the Mayor. It was observed that the Mayor as well as the SB members is supportive with each other to work on the development of the municipality.

Such dynamism between the Executive and the Legislative bodies can also be

found in Tolosa, Leyte. The Sangguniang Bayan coordinates smoothly with the Office of


the Mayor in forging policy, resolutions and local laws for town improvements. The legislative and executive branches, for most of the time, support each other in projects. Worthwhile initiatives take off with no blocks on the way (Municipal Planning and Development Office of Tanauan, 2010-2015).

Leaders in Tolosa are also known of being development oriented, convinced

advocates of transparency and participation in development programs. However, it is noticeable from the leaders of the municipality that it lacks political-will to implement necessary development programs. Likewise, an ordinary person in the municipality of Tolosa can easily says that leaders of Tolosa are influenced by the attitude of “ningas-kugon” (enthusiasm and passion is temporary) which also hampers the development efforts of Tolosa.

4.2.2. Strategic Planning

In 2006, the GTZ Environment and Rural Development (EnRD) Program as well as the Decentralization Program supported Tanauan, Leyte and Tolosa, Leyte in response to the clamor of building their capacities in shaping their development path. This partnership led the two municipalities to make participatory approaches as the their main strategy in planning. They have utilized the participatory land use and development planning (PLUDP). This is a process that aims to elicit a high level of participation by the community. The participation goes beyond mere provision of data, manpower or assistance. It implies the sharing of responsibilities, negotiating, empowering and emotional commitment between the BLGU and the MLGU. The PLUDP is a step-by-step process, which actively involves the barangay in data validation, problem analysis and prioritization of needs, formulation of a community vision-mission, formulation of sectoral goals (GTZ, 2010).

Experiences in the field have shown that participatory approach has led the

people of the two municipalities to enjoy increased levels of self-esteem, expanded abilities to realize capacities and heightened sense of appropriation towards programs, projects and activities (GTZ, 2010).

This strategy was supported by the people and the LGU staff, hence the creation

of Municipal Implementing Team (MIT). The GTZ facilitator’s guide for PLUDP enumerated the roles of MIT:

“This MIT is mandated to assist the barangays in the planning and preparation of their Barangay Development Plan (BDP). To facilitate the planning process, the MIT should have some knowledge and experience in the following areas: • A general knowledge of the development planning process; • Familiarity with local context; • Basic principles of communication and facilitation; • Use of participatory tools and techniques; and


• Ability to document a planning process.”

This strategy is employed by the MLGUs in making decisions for the development initiatives. With this process it is also observed that there is a process for clarifying and revising the plans and the strategy itself. The conduct of assessment of barangay resources is an actually a way a process of scanning the environment to consider potential threats and opportunities.

Aside from participatory approaches of each municipality; Tanauan has identified a particular strategy for development:

“The development strategy to be adopted in the municipality is the Central and Nodal development approach wherein one cluster will consist of the satellite barangays and their nodal growth barangay. Each cluster will be considered a development management area also in a hierarchical and functional order. The hierarchy will be from the Major Growth Development Area consisting mainly of the urban area and the Minor Growth Development Areas consisting of the clusters of barangays. Clustering is generally based on geographical and functional considerations.” (Municipal Planning and Development Office of Tanuan, Leyte, 2010-2019)

In implementing this strategy LGU of Tanauan have defined it well: “The approach or development strategy of the urban form that will be adopted will be a combination of nodal, radial and concentric. Nodal, since the nodal growth barangays are the focal point of each cluster. Radial, since development is intended to radiate from the nodal growth barangays to the satellite barangays and vice-versa and the development in each barangay will radiate towards or away from the water bodies and away from the major thoroughfare. Concentric, since the expansion of development is contiguous or adjacent to the present center or core of activities.” (Municipal Planning and Development Office of Tanuan, Leyte, 2010-2019)

In comparing Tanauan’s development strategy to that of Tolosa, it is evident in

their CLUP also that they are adopting the same strategy. Basically, there is no difference in their development strategies.

4.2.3. Niche Management Leaders and planners of Tolosa know that it has its uniqueness in terms of

topography. Recognition of this is critical for choosing where and what aspect of development area it should build on.


“Tolosa covers a territory that is smallest in the province. As land is scarce, Tolosa should not only intensify agricultural production, it must optimize utilization of land resource in general. Optimal land management may be the only option it has to shore up a high incidence of families below subsistence threshold, and get into the track of progressive change. This means delineating a big ratio given to urban use, thereby promoting potentials for commercial, light industrial, housing and tourism infrastructure development. As farming and agri-based enterprise scale up, urban socio-economic advancement must also leap frog. Because land’s capacity is severely limited, economic measures should greatly diversify. Another unique feature of the municipality is the incompleteness of its own rural system. It cannot be denied to have dynamically interacting upland and lowland landscape components, much more balanced ecological conditions. But it luckily belongs to a larger environment, and relates with a more or less holistic system that encompasses a number of contiguous municipalities of northeastern Leyte. Such a reality begs a shared responsibility by the component localities for protecting, conserving and sustaining a benign biophysical setting. No one has an all-encompassing authority to do that hedged by each one’s territorial jurisdiction. This has quite special disadvantage for Tolosa, which can be absorbing the worst effects of environmental trends in other areas beyond its power to curb. It may only do so much, but further ensuring ecological soundness may already take the course of advocacy and trans-municipal cooperation. It can function as an urban housing, industrial and commercial center providing not only transit markets, but downstream industries for products of the vast areas inland. This development orientation may thus go over the handicap set by limited land resource. An already small area for cultivation may still be further reduced to pave the way for urban use development devoted to commercial, industrial, institutional and housing use.” (Municipality of Tolosa, 2010)

This development framework had led the leaders and planners of Tolosa, Leyte to focus on eco-tourism, inviting industries to invest on their industrial area and encouraging enterprises to flourish in the municipality. However, the LGU of Tolosa was late to recognize the need for intensified social marketing. Clearly, social marketing is one undertaking that Tolosa is lacking.

Meanwhile, Tanauan has another version of knowing where they would build

their development:


“It is considered as a secondary growth node of the province. It is a town where tourism will flourish if given much attention. It has a beautiful San Pedro Bay where it can have outings, swimming and even Skimboarding. It is recognized as the Skimboarding capital of the Philippines. Skimboarding is held every Easter Sunday and last week of December every year. Along this San Pedro Bay there are “kiosks”, cottages, lodging houses with facilities for boating and swimming. Likewise the municipality is a rich source of marine life being a coastal town, where fishing in the municipality could be both an economic source and an adventure. There are different species of fish and marine products like shrimps, crabs, oysters, even Whale Shark and Sea Turtle can be found in the San Pedro Bay areas. This Whale Shark can usually be seen at the port of New Leyte Edible Oil Mill (NLEOM). The Municipality’s vast agricultural area is one such advantage. This is the major source of people’s economic growth. Agricultural production on rice, coconuts and its by products as well as marine life make the area worth living and visiting. Tanauan is also known for its local industry. They have the makers of 3well-known bamboo sala set, beds and other furniture made from bamboos. Nature product is exported to other parts of the world. It also produces mats, softbroom, pottery, ceramics, bolo, plow and even delicacies like binagol, moron, sarungsong & others. Sustainable growth is the primordial basis for development which gives due regard to the municipality’s resources which support the needs of the present population and at the same time ensure that future generations can still enjoy them. Hence, balancing the needs of the present generation in terms of urban use areas, economic needs, and the preservation of environmentally critical areas is the requirement of sustainable development.” (Municipal Planning and Development Office of Tanauan, 2010-2015)

This development framework was just actually a continuation of the development path taken by the previous administration. In an interview with Engr. Niceforo Liberato, the Municipal Agricultural Officer, he shared that the LGU had a logical sequencing of development initiatives; first it focused on installation of necessary infrastructures and then proceeded on agricultural development. This goes to show how the leaders of Tanauan efficiently put their investment where the “mouth” is.

The comparative advantage of Tanauan is, the way in which leaders conveyed

this development framework to the constituents and to other stakeholders. Mayor Roque Tiu and the present administration had invested heavily on social marketing to influence behavior of the stakeholders. They have also succeeded in establishing enabling factors like simplifying the processes in the LGU, deploying capable personnel


to facilitate the processes and formulation of policies to support their plans. It is worth mentioning that because of this, Tanauan is popular for being the “most business friendly municipality” in the country.

4.2.4. LGU Structure

The LGU of Tanauan simply describes their organizational structure:

“The organizational set-up shows the LGU’s compliance with the minimum requirements for its viable operations. Key government offices are in place. There are, however, positions identified in the Local Government Code of 1991 (Sec. 433, p “b”) but which are vitally important that were not created. Examples are the Municipal Administrator, Municipal Legal Officer and the Municipal Environment and Natural Resources Officer. It has been observed also that there are existing positions in the organizational structure of staffing pattern with disparity between the Department Head and the next position in the corresponding office. The revision of the existing LGU’s organizational structure and the formulation of career development program for LGU personnel is necessary in improving more efficiency and effectiveness of the delivery of services to the constituents of the municipality.” (Municipal Planning and Development Office of Tanauan, 2010-2015)

This is a clear indication that they were motivated to follow a simple structure and a manageable structure for efficiency and effectiveness.

Meanwhile the LGU of Tolosa puts forward their narrative on their structure:

“Just like the national government structure, the local government set-up consists of 2 main branches of government; the executive branch which the local chief executive heads and the local department heads, while the legislative branch is composed of the municipal council headed by the municipal vice-mayor. While the local government structure is complete in itself its manpower complement as provided for in the local government code, the same provides for the creation of the local development council as the lead planning body of the municipality.

Tolosa’s administrative structure conforms to the design required by the Local

Government Code. The municipal LGU’s sub-units, offices and positions carry functions mandated by it. Channels are set under the limits and authority set by statutes. Law charts fund appropriation and management of resources.” (Municipality of Tolosa, 2010)

The LGU of Tolosa had elaborated the advantage of their structure:

“This kind of organizational set-up has afforded predictability, institutional stability, lesser risks and fewer mistakes. Operations are regularized, and delivery of services standardized. Resource assignments are also aligned,


monitored and controlled.” (Municipality of Tolosa, 2010)

On the downside “it has allowed little room for flexibility, practical risk taking and innovation. Worthy initiatives are restricted, quick effective response to altered concerns is stymied, and important project implementation goes through threatening institutional bottlenecks.” (Municipality of Tolosa, 2010)

It has further elaborated the disadvantages of their structure:

“…it has tended to be rigidly bureaucratic with each tending to operate in an isolated way, applying each one’ rule of self-enhancement, and adopting a competitive stance with other offices. Papers are stuck at desk, while waiting for other offices to act on requirement. Important teamwork is stymied. Individual rivalry and units toeing their own directives or programs hamper fluid coordination. Common objectives become hard to achieve through inter-unit convergence. There is buck passing of both responsibility and accountability. It is hard to convert the whole local government machinery into a unified and highly efficient program-implementing unit. As each sub-component move on their own orbit of functions and responsibilities, conforming strictly to their own targets, there is little room to go out of the way towards taking extra interfaces with other offices when time and occasion calls to break through with a local government mission. While each office or sub-unit minds its own business, however, performance by way of maximizing delivery of services to constituent’s remains low. Individuals prioritize guarding closely each one’s career, self-interest or turf, there is squeamishness over procedures, which may no longer be necessary and may even be already counterproductive. Thus, institutional bottlenecks multiply. Service takes time to be processed to its end, or is even mothballed in the way. A glaring example has been in coming up with a complete formulation of this Comprehensive Land Use Plan, which took two administrations to push. At the final packaging stage, still a lot of vital data has not been collated, when it should have been easy for offices concerned to provide them. Gaps in information would remain over such concerns as education, housing, infrastructure and utilities and local economy.” (Municipality of Tolosa, 2010)

4.2.5. Human Resources

For Tolosa and Tanauan, the human resource management and development

can be analyzed in the LGPMS output of Tolosa. There is transparency in recruitment and selection since it is indicated that not all but some of the recruitment and selection processes and results, whether for plantilla or non-plantilla positions are posted. The permanency in the nature of appointment is valued because at least 90% of the total employees of the LGU occupy plantilla positions. Good performance is partially recognized because good performers are recognized and given incentives in the form of cash or kind. But in some cases, recognition is made either through personnel evaluation, written recommendation, or public acknowledgement. Staff development is


available regardless of level, or position in a given level and with low performance or those staff who need career advancement. The LGU claimed also that that there is a grievance system where employees can air their grievances and properly responded to or acted upon.

4.2.6. Financial Management

This is how Tanauan described their financial management:

“The municipality has achieved to maintain an optimistic balance of total receipts over total expenditures for the 4 fiscal years. Generally, with upward trend on both receipts and expenditures due to mainly increasing the Internal Revenue Allotment (IRA) and the account of implementation of the salary increases and standardization. These still depicts the efficiency of the LGU operation which is likely to continue in the future. The municipality’s local revenue sources are coming from the Tax Revenues that may include the Real Property Taxes, Community Taxes, Other Revenues and the Operating and Miscellaneous Revenues. The municipality has gained for the past 4 fiscal years by continuously increasing on local income even without incurring any added income from borrowing. The expenditures incurred by the municipality include personal services, maintenance and other operating expenses (MOOE), and capital outlay. Expenses for personal services got the biggest portion with an average of 58% of the total expenditures, while the least expenditure has an average of 13% which is the expenses for the capital outlay and the second expenses has an average of 28% of total expenditures for the past 4 years. During the period under consideration, the municipal government did not incur any loan obligation from external sources. A decrease of 91% in actual expenditure for MOOE can be observed in 2007. It can be observed also that the expenditure for capital outlay decreased in 2006 of 71% in 2006 and a constant increase from 2007 to 2008 with an average of 30%. Generally, an increase in actual expenditures for the past 4 years can be seen. This fact indicates that a positive trend could be established of LGUs investments of more activities, projects that would bear impact on the socio-economic well-being of the people in the long term.” (Municipal Planning and Development Office of Tanauan, 2010-2015)

Tanauan had progressed in terms of financial management. From the above

quotation, it could be said that they have achieved effectiveness in terms of financial planning and proper allocation. This could also be associated to the leadership of the municipality. The leaders are champions of accountability. They have created a special body called Administrative Board which oversees accountability in the LGU.

Tolosa on the other hand describe their financial management in broad strokes:

“Obviously the LGU is dependent on the share from the Internal Revenue Allotment from the national government. From the total income of PhP


20,662,333.00 the year, IRA constitute 93.73 % while the remaining 6.27 % is locally collected revenues from operating and miscellaneous income and municipal business, taxes and fees.” (Municipality of Tolosa, 2010)

The LGU of Tolosa for now is working hard on their financial management. The focus of the municipality for now is ‘transparency” in all transactions. More so, they are also building on their financial accountability. Generally, the LGU of Tolosa has yet to improve their financial management.

4.2.7. Program and Process Management

Program and process management can be viewed also in the LGPMS output. Tolosa and Tanauan organized the Local Development Council. They have executive and legislative issuance for the organization of this. The composition of their LDCs and Executive Committees are in accordance with Local Government Code of 1991. They have as well organized Sectoral and Functional Committees to assist the LDC. In terms of meetings, the LDC meet at least every six months, but the Executive Committee and the Sectoral or Functional Committees are not having meeting as often as necessary. Every meeting has an organized agenda and documented. Decisions made are embodied though resolutions of the LDC. However, they are admitting that the LDC performance is between “good” and “poor” because not all the functions of the LDC are exercised. Functions of the LDC include formulation or updating of long-term, medium-term and annual socio-economic development plans and policies; formulation or updating of medium-term and annual public investment programs; appraisal and prioritization of socio-economic development programs and projects; formulation or updating of local incentives to promote the inflow and direction of private investment capital; and coordination, monitoring and evaluation of the implementation of development programs and projects.

The Planning and Development Coordination Office of both Tanauan and Tolosa

are maintaining database for development planning. Actually both of them have installed the Community Based Monitoring System (CBMS) and Geographic Information System (GIS). The two municipalities have Comprehensive Development Plan (CDP) and Comprehensive Land Use Plan (CLUP) that employed participation in its formulation. These plans embodied socio-economic development thrusts and development strategies.

In the aspect of participation, it is evident that in their LDC and other Local

Special Bodies NGOs, People’s Oeganizations and/or private sector are represented. The LGUs have set-up feedback mechanisms to generate citizens’ views on the reach and quality of the LGU services through installation of suggestion boxes located strategically within their municipal hall and conducting general assemblies. It is also worth mentioning that only below 50% of the LGU development projects were implemented in partnership with NGOs, POs and the private sector.

In terms of Monitoring and Evaluation of Programs, in Tolosa it is not an integral

component of the plan while in Tanauan they are giving priority to such endeavour.


4.2.8. Networks and Partnerships

It is apparent that the LGU of Tanauan, Leyte is more active in terms of networking and partnerships. Leaders of Tanauan especially the previous Local Chief Executive, Atty. Roque Tiu, were doing intensive partnerships with various agencies and institutions, and the current administration is continuing it. They have strong partnership with the provincial local government unit, GIZ, some financing institutions like Veterans Bank, An Waray Party List and Japan International Cooperation Agency (JICA). The leaders of this municipality have the capacity to exploit these partnerships.

Meanwhile, the LGU of Tolosa has also invested their effort in partnership and

linkaging. They have also partnership with GIZ in PLUPD implementation, Visayas State University for the Barangay Management Information System, Provincial Local Government Unit for some of their infrastructure projects, Department of Agriculture on building farm to market roads, Department of Trade and Industry for product promotions and with the Department of Labor and Employment for a few livelihood development efforts.

4.3. Organizational Motivation

4.3.1. History As far as the history of both of the municipalities is concerned, both of them are

sharing Spanish invasion of 16th century, and Japanese attack during World War II. Distinctive events of Tanauan took place in beginning of 2000, when Atty. Roque Tiu, an experienced businessman, realized that business development is most important factor of development. His greatest desire was to eliminate red tape. He believes that local entrepreneurs are the backbone of the local autonomy that is why he was motivated to provide a favorable business environment through a simplified licensing process (Tiu, 2009). His move of streamlining the requirements on seeking new business permit from 12 different clearances to 4 clearances had led to growth in business sector. He eradicated red tape in the local government unit through the passing of Citizen’s Charter. The Tanauan Citizen's Charter contains a step-by-step procedure of the local government's top frontline services in the Offices of the Treasurer, Assessor, Social Welfare and Development, Agriculture, Municipal Planning, Engineering, Budget, Accounting, Sangguniang Bayan, Mayor and Local Civil Registrar, including the name of employee responsible for each step, the maximum time to conclude the process, documents to be presented by the client, amount of fees, procedure for filing complaints in relation to requests and applications, feedback mechanisms, among other information (PIA 8, 2009).

Unfortunately, the LGU of Tolosa was unable to surf with the waves of opportunities happening in its adjacent municipality, which is Tanauan. It had become complacent and was satisfied with things offered in its comfort zones. The LGU of Tolosa had not explored to replicate the ingenuity in Tanauan.

4.3.2. Culture


During interviews with various departmental heads and stakeholders, it was

understood that both LGUs of Tolosa and Tanauan are committed to day-to-day activity and are successfully evaluating their routine performance. The DILG’s Memorandum Circular No.2011-10 pursuant to full disclosure policy as President Aquino’s insistence on transparency is followed by both of the organizations. Flow charts are seen at the offices of the both the municipalities. Balance sheet and other finance related documents are open to all. They have all been put in to the web site also. As far as, business friendly approach is concerned, Tanauan is far better than Tolosa. In order to simplify, business permission process, Tanauan reduced required signatories from 10 to 2 for and it reduced the processing time from 5 days to ½ day. Its designated Business Permit Licensing Officer (BPLO) and assigned staff are giving assistance to business applicants. Its introduction of electronic business permit licensing system (eBPLS), electronic real property tax system (eRPTS), electronic Treasury made a culture of transparency, accountability, and simplicity (LGU Tanauan, 2009).

4.3.3. Mission The vision of LGU Tolosa, Leyte is “a peaceful and healthy environment of

empowered Tolosanos enjoying a sustained socio-economic prosperity under strong local governance”. ( Municipal Planning and Development, 2010 - 2015)

The mission: “Develop and strengthen the capabilities of the local government unit to effectively deliver quality basic services and facilities. Encourage the community to be active partner of a better quality of life.” ( Municipal Planning and Development, 2010 - 2015)

In order to achieve the above stated vision and mission, the local government under took the following steps: intensify revenue collection, improve business permits and licensing processing, provision of ICT for research and development, local government efficiently/effectiveness program, enhance economic development through agriculture and small scale enterprises. ( Municipal Planning and Development, 2010 - 2015)

The local government unit has realized the need to properly engineer institutional

and program growth in order to attune itself to Tolosa’s short and long-term strategies at development.

4.3.4. Vision and Mission of Tanauan

The vision of Tanauan is elaborated in this manner: “An agri-industrial town and eco-tourism destination of Eastern Visayas that has a dynamic and empowered community living under an ecologically-balanced environment with sustainable economic growth through exemplary governance (Municipal Planning and Development Office, 2010).”


While the mission is elegantly stated this way: “The Municipal Government of Tanauan shall take the lead in the integration and implementation of programs/projects and activities, promote strong multi-sectoral level partnerships, and mobilize resources through a strong political will and unity of purpose (Municipal Planning and Development Office, 2010).” As it is shown in the mission of Tanauan, they put emphasis on public participation in whole organization and in personal behavior; dedication towards this aspect is reflected in the vision and mission. By adopting participatory approach, municipality of Tanauan involves common people, right from level of planning to implementation part. This is the reason why in Tanauan, there is no reluctance of the public towards change in land use. This mind set gives an opportunity to the organization to take innovative steps regarding change and progress in business structure. Organization was right in anticipating the need of strong political will, as it is a matter of fact that always there are some people who oppose any kind of change. A multi-sectoral level partnership is reflected in market board of municipality of Tanauan. This market board is represented by people representatives, vendor representatives and representatives of business sector. To empower the common people of people of Tanauan, organization envisaged eco-tourism and business friendly approach. Tanauan has become Skim boarding capital of Philippines. As far as strategies and objectives are concerned, this are very much consistence with vision and mission.

As far as Tolosa’s mission is concerned, it also encourages public partnership and vision clearly states about empowerment of local people. But the problem regarding the land use planning and reluctance from some quarter of local people shows that it has not been articulated at all the levels. At present, leadership tends to follow public mode and land use planning is not taking the shape. Although, strategies seem to be fulfilling the vision and mission of Tolosa.

We can see that mission of Tanauan has an edge over the mission over Tolosa by clear inclusion of “Multi-sectoral partnership” and “Strong political will”. These two components of mission of Tanauan are lacking in Tolosa. To achieve the objectives and goals by municipal of Tolosa, it is in need of firm political will power by including multi-sectoral partners, it will be having view point of business man and investors also that will ensure economic growth.

4.3.5. Incentive / Reward System

Awards for Tanauan On local governance Tanauan won several awards, which include among others:

1) Best Local Government Unit (LGU) by the Civil Service Commission; 2) Clean and Green Program by the DILG; 3) Most Business- Friendly Municipality in the Philippines since 2006 to the

present awarded by the Philippine Chamber of Commerce and Industry; 4) 2007-2008 Best Police Station in Leyte; and


5) Most Client-Friendly awarded by the National Broadcasting Network and the League of the Municipalities of the Philippines and recently the municipal building is a Wi-Fi hot spot. (Municipal Planning and Development Office, 2010)

The changes that took place in Tanauan was led by the inspiration of former Mayor Roque Tiu who attended a seminar of Chamber of Commerce in Quezon City and from there he brought about idea of a business friendly town.

Municipality of Tanauan defined its competitiveness as a comparative concept of the ability and performance of the firm, sub sector or country to send and supply goods/ services.

To achieve the above-mentioned mission, a harmonious relationship was established between executive and legislative body. Leadership strengthened the capacity by periodic conduct of training/ seminar and by exchanging the ideas with other agencies. One noticeable factor of the organization motivation is its conduct of “lakbay-aral” to other successful LGUs to gain knowledge on effective and efficient service delivery. Physical fitness programs and development programs of personal are motivating factor for the staff. These efforts made the vision and mission shared by all the staff. Most important motivating factor of organization is their committed effort to establish business friendly environment. Periodic dialogue between the LGU and the business committee made it easily possible.


CHAPTER 5 FROM ENIGMA TO REPLICA

Intensive Adaptation and Other Development Options

Irrespective of the similarities in geographical and environmental contexts, a significant development gap can be observed between Tanauan and Tolosa, being the former has shown a rapid development throughout past few years and has become a 2nd class municipality while the latter has been stagnated for years as a 5th class municipality. Therefore an intensive adaptation of Tanauan’s development strategies can simply be recommended for many development areas of Tolosa due to these similarities.

Establishment of a business friendly environment with market development. The business friendly environment of Tanauan is the success factor of Tanauan’s economic development. Its strategy which attracts businesses is the less documentary requirements in the establishments of businesses. Only barangay clearance is required for renewal of business permits while for new business permits/ licenses barangay clearance, income tax return, TIN, community Tax certificates only are required. Rest of certificates such as fire certificates, electric safety certificates are required only after the establishment that makes the process easy in terms of both cost and time. It should keep on adhering with Anti-Red Tape Act of 2007. This process is advisable to be replicated in Tolosa by the municipality to attract more investors and businesses. This is a precursor requirement in achieving Tolosa’s goal of establishing eco-tourism, inviting industries to invest on their industrial area and encouraging enterprises to flourish in the municipality.

Tolosa’s high population and land area have provided market opportunities for

both buyers and sellers. In this context, the concept of establishing the Public Market Board has generated a secure and favorable environment for the market players of Tanauan (Mayor, 2011). On the other hand, with coverage of smaller land area and population, the market of Tolosa for indigenous products is limited. And the poverty of the population restricts their purchasing power against their needs and wants. Therefore the municipality should investigate and expand new market opportunities. Further, Market relationships of Tolosa can be strengthened by replicating business oriented approach in strengthening markets for their products. Specially, markets for agricultural, fishery and handicraft products should be strengthened and expanded for the benefit of local people. Replication of Public Market Board concept will be beneficial for Tolosa too in the attempt of business development.

Social Marketing. Social marketing in Tanauan plays a pivotal role that Tolosa can easily replicate for its development. The purpose of social marketing is not only to develop a business friendly environment but also to influence the behavior of majority of the people to foster ownership, participation, altruism, transparency and accountability.


Rules for Appropriation of Countrywide Development Funds (CDF). Lack of funding has become a major issue in Tolosa’s Development. IRA receives the highest source of revenue, which is hardly sufficient to cover LGU’s expenses. CDF (Country Wide Development Fund) of senators and congressmen is an alternative funding sources that can be used for development of such a poor community, but political affiliations have made the disparities in fair distribution of CDF. Although the 1991 LGC sought to remove patronage politics between the national and local governments, the attempt has not made a significant change in practical scenario and this political biasness has been negatively affected Tolosa due to different political party affiliations of the incumbent Mayor and Congressman. There should be rules in the appropriation of CDF, which will prevent the political biasness and ensure the transparency. Specially, the CDF allocation should be based on the priority for community development and fair distribution among the geographical coverage of the congressmen, but not on the political will. Obviously, this recommendation is addressed to the national government because it is beyond the jurisdiction of the LGU of Tolosa. Relevant Education for the Youth. In Tanauan, APEX program (Applied Academics for Excellence), the system of education by incorporating technical and vocational subjects in the secondary level of education has been introduced and successfully being implemented in Tanauan National High School. Under APEX, Contextual Teaching & Learning (CTL) method is used whereby the teachers learn the basics of CTL and entrepreneurship. The students learn and experience CTL throughout their curriculum. CTL mainly focus on providing education in relation to the person’s current environment and discover meaningful relationships between the abstract idea and practical application in their lives. This system of education provides the skills to the students which has demand in the market irrespective whether or not they have finished the degree. It fulfills the needs of the youth to be skilled which will help them in finding employment and start their own enterprises and thereby become productive citizens (Texas Collaborative for Teaching Excellence, 2007). This program can be replicated in the system of education in Tolosa as this program is practical and can be used to solve the unemployment and underemployment issues in the municipality. Thereby, it will also help in poverty reduction in the municipality.

Tolosa could also adopt the concept of Family Farm School. This system upholds

the alternating system that provides time for students to study and apply their learning to their chosen family enterprises. The Family Farm School empowers the youth to become entrepreneurs, equipped for higher education, and prepare for work. This concept of “Learning while earning” will be more attractive and inspire the children from the poor families of Tolosa and thereby will result in the development of poor rural communities.

Since migration is considered as sole panacea to get rid of poverty, it is very

much common in Tolosa. Because of lack of higher and technical education, people get only low productive jobs in abroad. If municipality provides skill up gradation course that is required abroad, will be acceptable and successful also. Learning Team did not find any effort from the municipality in this regard. Outside job requirements, expected qualification, locations of job opportunities are known to citizens of Tolosa from mouth


publicity only. To enrich the common people, municipality should assign some personnel for this.

Early marriages often prohibit teens to continue education. In a bid to meet day-

today expenditure, they indulge child labor and thus remains unskilled. With the help of civil society organization, municipality should discourage this activity. There should be strict implementation of the minimum age for marriage and living together. This policy is proven effective in India and Sri Lanka.

In one of the focus group discussion conducted, the team found out that women

go abroad and their children are being left and just looked after by eldest son or daughter of the family. This creates an obstacle in education of all the children. Municipality needs more day care centers to improve general educational condition.

Looking at the Lusthaus framework of organizational assessment the team is recommending the following: ON PERFORMANCE

• Municipality of Tolosa should take effort to increase their revenue generation potential. Already IRA is more than 90% of total revenue of municipality of Tolosa while for Tanauan IRA’s part is only 75%. Tolosa should develop their own source of income. If Tolosa encourages more businesses, it will be able to avail business and service income and also business taxes. Even if tax holiday is given, after a due course of time (e.g.,5 years) tax becomes part of the revenue. As far as revenue allocation and utilization is concerned, municipality should look into legislative staff competence and the greater use of legislative tools such agenda development, legislative tracking, backstopping committee and legislative performance.

• Sub- area of housing is needed immediate attention. Municipality should identify sites for poor people’s housings. Houseless households and households without potable water supply or electricity should be provided help at top priority. For this social housing, municipality can take help of donors or in case of unavailability of money it can take long-term loans. Third option is, it can involve private sector also to invest money for social housing.

• Tolosa is weak in fisheries sector. Fisher folks should be helped by loans and

technical trainings. It should mobilize the Fisheries and Resource Aquatic Council to help protect and manage municipal water and to implement its mandated tasks. Infrastructure support like mariculture parks, sea cages should be improved. Market development services should be improved.

• Since Tolosa’s environmental performance is quite low, it should realize the effect of degradation of environment, particularly in the fields of water resources and agriculture. It should strengthen Solid Waste Management Board. Like Tanauan, it should raise innovative steps like organic composting. For


segregation of waste at household level, it should involve common people and civil society organizations. It should also legislate environmental ordinance like Tanauan and appoint a functional focal person on environmental affairs.

• It should continue its initiative of diversifying the communication methods to the

public through Bulletin Board, Public Information Office or Desk, print, broadcast media, website and forum. However, municipality should evolve certain measures to ensure that common people and CSOs are involved from the level of planning itself.

ON CAPACITY

• Present leadership is development oriented and is successful in bringing about transparency. But it needs to have strong political will to bring about changes. Like Roque Tiu, the former Mayor of Tanauan, leaders in Tolosa should realize the importance of multi-stakeholders and by building the network. Leaders should be more focused, passionate and persistent regarding required changes.

• On strategic planning, it must continue to employ the participatory approaches learned form GTZ Environment and Rural Development Program and continue on its strategy of central and nodal development.

• Provide emphasis on Monitoring and Evaluation on development programs. This will mitigate the “ningas-kugon” attitude of the leaders and stakeholders involved.

ON MOTIVATION

• Include in the vision and mission the multi-sectoral level partnerships, and mobilize resources through a strong political will and unity of purpose in the implementation of programs and projects. A multi-sectoral level partnership encourages diversity of ideas and convergence of competitive skills and knowledge. Strong political will motivate leaders and people in anticipating challenges and reluctance. It will also develop the behavior of resilience among stakeholders.


EPILOGUE Development for Tolosa is not impossible. The fact that a similar municipality, Tanauan, has transcended its lower income classification to become second class should be an inspiration. Nonetheless, it must be considered that development cannot be pursued in the closed market. Tolosa should expand its horizon and influence to market both its products as well as itself for the purpose of encouraging investment and job creation.

Aside from adapting the best practices of Tanauan, the peculiarities of Tolosa should be considered.

Effective governance will definitely take the lead role for development. Strong

political will is a necessity. Preparing the people for the emergent opportunities will be integral for sustainable and gainful employment within Tolosa. Education should thus be ensured and continually improved as education is the root for all the developmental activities.

Tolosa is not much different from Tanauan. The significant difference in the

degree of social marketing, though, has been the point of leveraging. Promotion of the municipality, perhaps as an industrial haven or eco-tourism destination, will spell the rate by which development may come in. The local market will not spur the required progress.

In the thrust for development, protecting the natural resources should remain a

priority. Tolosa has so far maintained its resources intact till today and it should not be endangered with the evolving economic and social growth.


BIBLIOGRAPHY Gatmaytan, D. (2003). Cost and Effect: The Impact and Irony of the Internal Revenue Allotment. Philippine Law Journal Volume 75 Number 4-‐03 .

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LGU Tanauan. (2009). Business Permit and Licensing. (L. LGU of Tanauan, Producer) Retrieved May 04, 2011, from www.tanauan-‐leyte.gov.ph: www.tanauan-‐leyte.gov.ph/data%20links/bi_reg_licensing.htm

Texas Collaborative for Teaching Excellence. (2007). Teaching/Learning. (Carl D. Perkins Career and Technical Education Act through the Texas Higher Education Coordinating Board) Retrieved May 05, 2011, from www.texascollaborative.org: www.texascollaborative.org/WhatISCTL.htm

Gatmaytan, D. (2003). Cost and Effect: The Impact and Irony of the Internal Revenue Allotment. Philippine Law Journal Volume 75 Number 4-‐03 .

Benitez, D. M. (2011, April 26). Tolosa Municipal Health Office. (V. A. Vega, Interviewer)

Llanto, G. (2009). Fiscal Decentralization and Local Finance Reforms in the Philippines. Philippine Institute for Development Studies Discussion Paper Series No. 2009-‐10 , 8.

Rosario, A. D. (2005). Entrepreneurial Approaches Of Lgus In Governance: The Philippines Experience. Workshop in Innovations in Governance and Public Service to Achieve a Harmonious Society. Beijing: Asian Development Bank.

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Perez, G. (2011, April 27). Municipal Agriculture Office. (V. D. Vega, Interviewer)

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APPENDICES Appendix I - General Information, Province of Leyte

Appendix II - Projected Population per Barangay

Appendix III - Flow Chart of Transaction, For Applicants of Business License &

Permit, Municipality of Tanauan

Appendix IV - Brochure of Municipal Treasurer’s Office, Tanauan, Leyte

Appendix V - Map of Tolosa

Appendix VI - Principal’s Report on Enrolment, March 2011, Tolosa District

Documents

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