Social - Philippine Institute For Development Studiestino, Executive Director of the Philippine Business for Social Progress (PBSP); Antonio C. Asper, Vice-President for In-ternational

Vol. XIV No. 5 September - October 1996 ISSN 0115-9097

Just how accurate is man’s social de-velopment being measured?

This question has, in recent years,emerged as a growing global concernamong the world communities. It has, infact, sparked the holding of internationalsummits and related fora to gather com-mitments from governments and to ensurethat social development goals are ad-dressed. This same concern led to the hold-ing by PIDS, in collaboration with theICEG, of a forum in September whereina distinguished panel of experts was gath-ered to discuss, evolve some policy recom-mendations and focus public attention tothis issue.

The commentaries, reports and rec-ommendations from this panel discussionare featured in this DRN’s issue. Hope-fully, they can serve as eye-openers to thecountry’s leaders and decisionmakers onthe many neglected aspects of social develop-ment that need to be further looked into.

Also in this issue is a report on a sym-posium with APEC’s seminal thinkers heldin Marawi City.

And finally, for the first time in thepages of DRN, we feature snapshots show-ing the PIDS staff as one happy family,taken during the celebration of PIDS’s19th anniversary.

Financing the Social SectorsIncrease to Comefrom Budget Restructure 2

"Only ThroughCollaborative Efforts..." 4

DSWD Reports... 5

NGOs in Social and HumanDevelopment 7

For Social and Human DevelopmentTapping the Potentialsof Labor Unions 8

APEC Seminal ThinkersShare Visionfor the Region's Progress 9

One Fine Week at PIDS 10

W hat's nsidesIcommitment to the Summit.The discussants were Assis-tant Director-General NestorMijares representing Dr.Cielito F. Habito, Secretary ofSocioeconomic Planning andNational Economic and De-velopment Authority(NEDA) Director General;Assistant Secretary Gloria S.Mallare of the Department ofSocial Work and Develop-ment (DSWD); Aurora Tolen-tino, Executive Director of thePhilippine Business for SocialProgress (PBSP); Antonio C.Asper, Vice-President for In-

ternational Affairs of the Federation ofFree Workers (FFW); Dr. Rene Ofreneoof the University of the Philippines’School of Labor and Industrial Rela-tions; and Prof. Solita C. Monsod of theUP School of Economics who acted asthe panel moderator.

The Philippines may be one ofthe developing countrieswhich has seriously workedtowards the fulfillment of its

commitments under the CopenhagenDeclaration and Programme of Actionbut a lot more needs to be done notonly by the government but all the con-cerned sectors to implement and real-ize these commitments. These were thecollective observations of the partici-pants in the panel discussion con-ducted by the PIDS, with the supportof the International Center for Eco-nomic Growth (ICEG), on September23, 1996, about a year after the WorldSummit for Social Development washeld in Copenhagen, Denmark.

The Institute invited a panel ofgovernment, nongovernment andother experts on the issue to review thepolicies and programs for social andhuman development put into action bythe Philippine government and to as-sess the implications of the country’s

World SummitWorld Summitforfor SocialSocial

Development:Development:A Year AfterA Year After

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DEVELOPMENT RESEARCH NEWS 2 September - October 1996

he Philippines has increasedits financing of the social sec-tors to 20 percent of the totalbudget. Yet this is only half

of the United Nations DevelopmentProgramme (UNDP) standard of 40percent and still below the 32 percentaverage for the least developing coun-tries’ (LDCs) social allocation ratio.This is one of the major findings of astudy1 funded by the United NationsChildren’s Fund (UNICEF) andauthored by PIDS Research FellowsDr. Rosario G. Manasan and Dr.Gilberto G. Llanto, and Wilfredo G.Nuqui of UNICEF. The highlights ofthis study were presented by Dr.Manasan during the seminar on the“World Summit for Social Develop-ment: A Year After” conducted byPIDS on September 23, 1996.

The study focused on the pos-sible restructuring of the budget to fa-vor the social sectors by moving fi-nancing intersectorally from nonsocialto social sectors. It also looked at pos-sibilities of realigning funds intra-sectorally within the social sectors tosupport human development priori-ties, such as increased cost recovery indevolved hospitals and state collegesand universities and reduction of out-lay for general administrative servicesin the health department due to devo-lution.

Social allocation ratio is that pro-portion of the budget spent for socialservices. In 1995, the country’s socialallocation ratio increased to 20 percentfrom 16.1 percent in 1990. Yet, this isstill lower than the peak of 22 percentin 1989. The human development pri-ority ratio (or the proportion of thebudget spent on human developmentpriorities such as basic education, ba-sic health care, low-cost water andsanitation) likewise rose from 10.3 per-cent in 1993 to 12 percent in 1995. The1995 figure, although higher than the

T1990 and 1993 figures, is still lower,though, than the peak of 13 percent in1988. Meanwhile, the 1993 human de-velopment priority expenditure in realper capita stood at P237, improvingconsiderably to P308 in 1995, but stilllower than the peak of P315 in 1990.

The country has posted eco-nomic improvements in the past threeyears but has not really recoveredmuch from the economic crises in theearly 1980s or the mild recession in1991 where there was always a reduc-tion in social welfare expenditures.

How does the Philippines com-pare with other countries?

The average social allocation ra-tio for a selected sample of least de-veloped countries (LDCs) is 32 per-cent, the United Nations DevelopmentProgramme (UNDP) norm is 40 per-cent while that of the Philippines isonly 20 percent.Thus, the country’sbest achievement, to date, is just halfof UNDP’s standard and considerablyless than the average for LDCs. On theother hand, the country’s human de-velopment priority ratio in 1995 wasonly 12 percent or about equal to theaverage for selected LDCs but still lessthan the UNDP norm of 20 percent.

Financing the Social Sectors

IncreaseIncrease to Come from to Come fromBudget RestructureBudget Restructure

tration (GPA) portion—remains unaf-fected. Regardless of recessions orpositive economic growth, the GPAportion grows continuously and neversuffers any cutbacks.The GPA includesexpenditures on the Congress, the ju-diciary, and those that run thegovernment. It normally involves ad-ministrative expenses such as salaries,including capital expenditures(CAPEX). This study by Manasan et al.made a sharper focus on this area andsaw some possibilities.

Looking at other countries, Thai-land, for example, spends only about1.2 percent of its GNP on GPA, in con-trast to the Philippines’ 1.8 percent.What happens if the Philippines emu-lates Thailand and simply spends 1.2percent of its GNP on GPA? The study

————————1The study will soon be published as a book

by PIDS entitled “Financing Social Programs in thePhilippines: Public Policy and Budget Restructur-ing” by Rosario G. Manasan, Gilberto M. Llanto andWilfredo G. Nuqui.

What can be done to improve theratios?

Reviewing the GPAsReviewing the GPAs

No matter what happens to theeconomy, the most stable portion of thebudget—the general public adminis-


argues that a shifting exercise or trim-ming of the bureaucracy would savethe country some P8.3 billion a year!

No budget reductionsNo budget reductionsdespite devolutiondespite devolution

Because of the implementation ofthe Local Government Code of 1991,the Department of Health (DOH) andthe Department of Social Work andDevelopment (DSWD) transferred anumber of their personnel to localgovernment units (LGUs). This impliesthat their respective administrativebudgets should have been trimmeddown. Yet, both departments have notquite trimmed down their administra-tive expenditures in proportion to thepersonnel that they shed. In 1993, forinstance, DOH should have savedP382 million and DSWD, around P93million. Their potential savings shouldhave been even higher in 1994 and1995. Yet, DOH and DSWD have notresponded appropriately to the devo-lution of personnel from the nationalagencies to the LGUs.

Sources of financingSources of financing

The study identified potentialsources of additional financing for thesocial sectors (see Table 1) which in-clude, among others, the following:

c P1.8 billion to come fromcurbing tax evasion;

c P200 million from with-drawal of the National Food Author-ity (NFA) subsidy;

c P500 million from increasedcost recovery from both local and de-volved hospitals;

c P600 million from increasedcost recovery from state universitiesand colleges; and

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Table 1Potential Sources of Additional Financing for Social Sector Programs,

On a Yearly Basis

Source Amount(In P billion)

I. Increased Revenues1 2.8Curbing tax evasion 1.82

Privatization 0.43

Improved capacity to absorb ODA 0.64

II. Inter-Sectoral Reallocation1 1.4Reduced domestic interest rate 0.35

Reduced outlay for general administrative services in DSWD 0.1Withdrawal of NFA subsidy 0.26

Restructuring of BOI incentives 0.8III. Intra-Sectoral Reallocation 2.0

c Health and NutritionReduced outlay for general administrative services due to devolution 0.4Increased cost recovery in DOH-retained government hospitals 0.2Increased cost recovery in devolved hospitals 0.3Improved logistics system –7

Review nature, approaches to treatment and cost effectiveness of present interventions in mental health and leprosy –7

Shift to more cost-effective intervention like ORT, BHS treatment and use of simple diagnostic procedures for ARI, etc. –7

c EducationIncreased cost recovery in SUCs 0.6Improved internal efficiency in public schools –7

c Water and SanitationImproved collection efficiency of LWUA 0.28

Reduced water losses of MWSS 0.39

Increased community participation in management of level I water and sanitation systems –7

Increased disbursement rates of appropriation for level I water and sanitation systems –7

IV. Grand Total 6.2

1 Gross estimates of incremental resources from this source were scaled down by marginal propensity to spendon the social sector. Based on past performance, this is assumed to be equal to 0.2 except for DSWD item.

2 This assumes that the margin of error in the estimated evasion level is 50 percent and that the government isable to collect 25 percent of the amount of taxes evaded in the first year after a concerted program to improvecollection efficiency is instituted.

3 This assumes that the privatization program will wind up in five years and that the proceeds from governmentdivestment from the remaining assets (valued at P66 billion) are evenly spread out over this period. Net recoveryrate is assumed at 0.4.

4 This assumes an increase in the availment rate of 149 program and project loans to 80 percent based on 1992scheduled availment. The stock estimate of P9.2 billion thus derived was further assumed to be spread out evenlyover a three-year period.

5 This assumes a one percentage point reduction in the interest rate on Treasury Bills.6 This refers to the explicit subsidy only.7 Estimate not available.8 This assumes an improved collection efficiency of 72 percent as compared to 55 percent in 1992. This is equal to

the average annual government equity infusion to LWUA in 1988-1992.9 This assumes a three percentage point improvement in water recovery per year to achieve a target rate of 57

percent in five years from 42 percent in 1991. This amount is roughly 85 percent of the P295 million averageannual government equity infusion to MWSS in 1988-1992.


World Summit for Social...World Summit for Social...Page 1<

tional Human Development Commit-ments (MC-IHDC) made up of con-cerned sectors which the Philippinegovernment created in 1995.

In the speech of Secretary Habitoread by ADG Mijares, he reaffirmed

“Only Through Collaborative Efforts...”

According to the DSWD, thecountry has kept track of its commit-ments to the Copenhagen Summit bycontinuing to “focus on policies andprograms for sustained economicgrowth, on improved global competi-tiveness, on strengthening humancapital and on providing for an envi-ronment for a more empowered civilsociety.”

Poverty reduction, job creationand social integration are the country’scommitment to the Summit and arespecifically contained in the DSWD’smedium-term plan for 1996-1998.These commitments are, in fact, partof the country’s long-term plan for eco-nomic, social and political develop-ment. Tasked to monitor the imple-mentation of these commitments is theMultisectoral Committee on Interna-

Listening intently to comments from the floorare PIDS President Ponciano Intal, Jr., NEDA's ADGNestor Mijares, UPSE Prof. Solita Monsod, andDSWD Asst. Secretary Gloria Mallare.

p

The following are excerpts from the speechof Secretary Cielito F. Habito read by Assis-tant Director General Nestor Mijares duringthe panel discussion conducted by PIDS lastSeptember 23, 1996 on “World Summit forSocial Development: A Year After.”

A government commitmentc The World Summit for Social De-

velopment-Multisectoral Committee(WSSD-MC), which the Philippinegovernment created in 1995 through So-cial Development Committee ResolutionNo. 1-95, hopes to fully coordinate effortsto realize its commitments during theWorld Summit for Social Developmentheld in Copenhagen, Denmark.

c Close collaboration and partner-ship among government, academe, leg-islature, nongovernment organizations(NGOs), people's organizations (POs), pri-vate sector and other equally concernedsectors is required to realize this com-mitment.

c The WSSD-MC functions as a spe-cial subcommittee of the Social Develop-ment Committee (SDC) under the NationalEconomic and Development Authority(NEDA) Board. This year, we have ex-panded the WSSD-MC to cover not onlythe monitoring of WSSD agreements butalso those of the recent round of interna-tional human development conferences,such as the International Conference on

Population and Development in Cairo,Egypt in 1994; the Fourth World Confer-ence on Women in Beijing, China in 1995;and the Second International Conferenceon Shelter and Human Settlements inIstanbul, Turkey in 1996. The WSSD-MChas now been renamed the MultisectoralCommittee on International Human De-velopment Commitments (MC-IHDC). Theefforts of the Committee serve as a co-ordinative framework that harmonizes allfollow-up activities resulting from interna-tional human development conferences.The Committee hopes to bring about amore holistic development by integratingall efforts and commitments forged dur-ing such conferences.


and human development. He, how-ever, noted that the country may beone of the developing countries which“has undertaken serious and substan-tive efforts in fulfilling its commit-ments ... to the Summit.” He furthernoted that the government has notfully tapped the labor unions in real-izing the goals of development. In hisassessment, the economy may havegrown but not enough jobs are beingcreated and workers feel that theyhave not benefited from this growth.Although government reports claimthat poverty levels have gone down,many, according to him, still remainpoor. In addition, the path toward so-

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the government’s continuing commit-ment to the Copenhagen Summit, cit-ing this panel discussion as a way ofshowing concern for the progress inthe implementation of the commit-ments. He noted that the discussionstrengthens the country’s conviction touphold the global responsibility ofworking toward a “unified and con-cerned global village against poverty,unemployment and social disintegra-tion.” He realized that the CopenhagenDeclaration and Programme of Actionneeds to be implemented by all theconcerned sectors—government, aca-deme, legislature, nongovernment or-ganizations, people’s organizations,and the private sector, among others.He concluded that present efforts atattaining human development goalswill determine the future of the chil-dren.

Representing the workers’ orga-nizations was Antonio C. Asper whoexpressed his doubts about the seri-ousness of some sectors toward social

cial integration has been marred bycontroversies such as the SouthernPhilippines’ Council for Peace andDevelopment.

Meanwhile, the social sector’s fi-nancing can be further improvedthrough budget restructuring—that is,by shifting financing from nonsocial tosocial sectors. PIDS Research FellowDr. Rosario G. Manasan presented theresults of a study on restructuring thenational budget in favor of the socialsectors and showed that this is possible(see related story on page 2), includ-ing tapping possible sources of addi-tional financing to these sectors.

Upcoming activitiesc This October, NEDA, in collabora-

tion with the members of the MultisectoralCommittee, the United Nations Develop-ment Programme (UNDP) and other con-cerned agencies, will be conducting a se-ries of workshops to discuss various fol-low-up activities in compliance with theagreements made during the internationalhuman development conferences. Theoutcome of the series of workshops willbe, among others, a matrix containing is-sues and gaps with corresponding projectactivities and resource requirementsneeded to fully implement the agreementsto such international conferences. Theoutput will be presented to the UnitedNations (UN) System and other bilateraland multilateral donors for possible fund-ing assistance.

The following are excerpts from the speechdelivered by Assistant Secretary Gloria S.Mallare for Secretary Lina Laigo of the De-partment of Social Work and Development(DSWD) during the panel discussion on"World Summit for Social Development: AYear After” conducted last September 23,1996 by PIDS.

Poverty ReductionThe Committee on Poverty Alleviation

is chaired by the Presidential Commissionto Fight Poverty (PCFP). It is in charge ofmonitoring the implementation of policies,plans and programs for Commitment 2-Poverty Alleviation as follows:

“We commit ourselves to thegoal of eradicating poverty in theworld, through decisive national ac-tions and international cooperation,as an ethical, social, political andeconomic imperative of human kind.”

The PCFP coordinates and monitorsgovernment organizations (GOs),nongovernment organizations (NGOs),and local government units (LGUs) inimplementing programs and projects for

the poor including economic opportuni-ties for women. It sees to it that nation-wide implementation of projects under theSocial Reform Agenda (SRA) is ensured,which covers an array of sectoral pro-grams for specific clientele groups. Vari-ous Executive Orders (EOs) institutional-ized working arrangements for the SRA’slocalization. The Strategy to Fight Povertyprovides government and all other keyplayers in Social Reform and Poverty Al-leviation with a blueprint for action.

The People’s Credit and Finance Cor-poration (PCFC) has been created to de-velop an alternative finance mechanismfor the programs and projects intendedfor the poor and to mobilize local and in-ternational funding sources.

Job CreationThe Committee on Employment is

chaired by the Department of Labor andEmployment (DOLE). DOLE takes the leadin implementing Commitment 3-Employ-ment as follows:

“We commit ourselves to promot-ing the goal of full employment as a

DSWD Reports...

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DSWD Reports...Page 5<

Only Through Collaborative...Page 5<

crease their spending on human devel-opment priorities. During the recentlaunching of the 1996 Human Develop-ment Report, recognition was given toLGUs which have the highest budget andspending for human development priori-ties. Such local efforts are very muchneeded to complement resource mobili-zation at the national level.

Gaps to fillMore than a year since the

Copenhagen Summit, and despite majorefforts being done in collaboration withvarious sectors of the society, we acknowl-edge that there are still gaps that mustbe filled up if we are to fully implementthe Copenhagen agreements. First, thereis the need to strengthen efforts on pov-erty alleviation, employment expansionand social integration. In addition, thereis the need to formulate intermediate andquantitative indicators based on agreedupon long-term and qualitative indicatorscontained in the Copenhagen Programmeof Action. Such indicators will translatethe broad statements into doable andspecific activities that will facilitate futuremonitoring and evaluation.

On the 20:20 initiative, much advo-cacy still needs to be done especially withthe donor community and the localgovernment units.

On resource mobilizationc One of the major agreements dur-

ing the Copenhagen Summit was the20:20 initiative. The 20:20 initiative callson interested developed and developingcountry partners to allocate, on the aver-age, 20 percent of official developmentassistance (ODA) and 20 percent of thenational budget, respectively, to basic so-cial programs which include basic educa-tion, primary health care, water and sani-tation, nutrition and reproductive health.

How the Philippines faresc Based on recent estimates of the

Department of Budget and Management(DBM), 15.8 percent of the total nationalgovernment expenditures was spent onbasic social programs in 1995 and in1996. This percentage is expected toslightly increase to 16.4 percent in 1997.We can see from this that there is plentyof room for improvement in terms of re-source mobilization for priority social pro-grams. At the local level, local governmentunits (LGUs) are also encouraged to in-

tunities to engage in income-generatingactivities.

Social IntegrationThe Department of Social Welfare

and Development (DSWD) is the ViceChair of the Multisectoral Committee onInternational Human Development Com-mitments (MC-IHDC) and Chair of theCommittee on Social Integration whichmonitors the implementation of policies,plans and programs for Commitment 4-Social Integration as follows:

“We commit ourselves to promot-ing social integration by fostering so-

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I n the NGO community...the defi-nition of an NGO means anythingthat is not government...that

NGOs are nongovernment organizations,nonprofit in nature and have a mandate todo development work.

—— ] ] ] ——

... I do agree with the proposition thateconomic growth has to be in the contextof participation and democracy to make ittruly sustainable.

—— ] ] ] ——

Communities want what we all wantfor them. They have innate resources topursue development; thus NGOs need tobuild on these resources so that communi-ties can understand, articulate and partici-pate in the process as well as benefit fromthat development.

—— ] ] ] ——

A study commissioned by the WorldBank looked at the role of NGOs in relationto the local or national government.Government and NGO collaboration shouldbe based on their comparative advantages.The government’s strength lies in pursuingprograms on a large scale; the NGOs ininsuring that projects conform with localconditions. Government collaboration withNGOs appears necessary when

c project outcomes or post-interven-tion sustainability depend on the

and urban sectors. Various programs andprojects are being implemented for thewelfare and protection of workers. TheTechnical Education and Skills Develop-ment Authority (TESDA), created throughRepublic Act No. 7796, is primarily taskedto formulate policies on technical educa-tion and skills development for a highlycompetitive workforce.

On the other hand, the Departmentof Social Welfare and Development(DSWD) has existing programs andprojects for the elderly, youth, disadvan-taged women, families, and persons withdisabilities by providing them with oppor-

basic priority of our economic andsocial policies, and to enabling allmen and women to attain secure andsustainable livelihoods through freelychosen productive employment andwork.”

Several GOs and NGOs are involvedin creating employment opportunities andpromoting work productivity in both rural


community’s ownership of or conformity toa project specifically designed for local con-ditions, and/or

c politically acceptable community-based initiatives or social innovations needa more receptive policy environment for re-source support.

When the outcome or sustainability ofa local project depends on community own-ership, NGOs might have a distinct advan-tage over government agencies or localgovernment units (LGUs). This is because,in such case, nuancing and community or-ganizing are important factors and this iswhere NGOs are very good at.

—— ] ] ] ——

What is the strategic role of NGOs?The nuancing role covers different tasks

Excerpts from the speech delivered by Aurora Tolentino, Executive Director of the PhilipineBusiness for Social Progress during the panel discussion on “World Summit for Social Development:A Year After” conducted by PIDS last September 23, 1996.

that span from policy formulation, programdevelopment and management, and downto the level of service delivery. In servicedelivery, NGOs create innovations that de-velop the community as stakeholders ratherthan recipients of project planning andimplementation. Likewise, NGOs initiatenew approaches in program developmentand management. Finally, NGOs try to puta human face to development by bringingin marginalized sectors in the agenda.

In the process of nuancing, NGOs, inessence, initiate an innovative instrument.Thus, NGOs have similar roles as that of asocial entrepreneur. Social entrepreneurs,as coined by Prof. Eduardo Morato of theAsian Institute of Management (AIM), areconcerned about helping others (less privi-leged or poorer segment of the society)prosper. Individually, the poor may find it

difficult to immediately transform them-selves into enterprise builders and manag-ers. Their capabilities, community solidar-ity and skills must be strengthened first.Thus, beyond conducting community-orga-nizing activities and continually nuancingtheir projects, NGOs usually end up creat-ing the institutional arrangement—mecha-nisms and resources—needed to makecollective action possible.

—— ] ] ] ——

There’s a lot of discomfort even nowwhen asked: What is the role of NGOs inrelation with that of local and national

cieties that are stable, safe and justand that are based on the promotionand protection of all human rights, aswell as nondiscrimination, tolerance,respect for diversity, equality of op-portunity, solidarity, security, and par-ticipation of all people, including dis-advantaged and vulnerable groupsand persons.”

The Committee on Social Integrationprepares and provides substantial inputsin the preparation of reports on this com-mitment. It also works with various NGOs,people's organizations (POs) and otherGOs, while exploring linkages with churchgroups and other religious organizations. < Page 12

The ultimate goal of social integra-tion is to create a society for all whereevery individual has his own task andresponsibility to play. The Summit’s aimis not merely to integrate social dimen-sion into the development process butto attain the very concept of a sociallyrelevant development.

The member agencies of the vari-ous committees continue their effortsto streamline operations and activitiesto respond to the reengineering effortsof the government. The ultimate goal isto be able to focus the programs and

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government? I often hear legislators say:who elected these NGOs? Who are theyaccountable to? And that’s valid. There aremany organizations who call themselvesNGOs and some are there because re-sources are available. But there are situa-tions where GOs, especially at the locallevel, are beginning to see that perhapsthe agenda put forth by both POs and NGOsare not very dissimilar from theirs. Perhapsthat’s where collaboration must begin.

PBSP Executive Director Aurora Tolentinoexpounds on the role of NGOs.

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NGOs in Socialand Human Development


The following are excerpts from the paperprepared by Antonio C. Asper, Vice-Presidentfor International Affairs of the Federation of FreeWorkers, for the panel discussion on “World Sum-mit for Social Development: A Year After” con-ducted last September 23, 1996 by PIDS.

Currently, the labor sector is repre-sented by trade unions in various tripartiteagencies, in Congress, and other groupsthat decide or implement social policy.Workers’ representatives are also askedto participate in summits called to addresssocial concerns, ranging from crime pre-vention, anti-poverty, employment and oth-ers.

—— ] ] ] ——

Harnessing the potentialsof a rich human resource

The participation of workers’ organi-zations in the development process has notonly made possible the realization of “de-velopment through democracy” but alsohelped in widening the scope of their in-volvement from the narrow confines of col-lective bargaining and legislation to thebroader field of social and human develop-ment.

This trend follows the policy oftripartism, which was nominally pursued in

Servicethrough Research

Suppor tPhilippines 2000The role of labor unions

Labor unions exist to defend and pro-mote the economic and social interest ofworkers. Three classical means are usedto achieve these ends: collective bargain-ing, legislation, and mutual aid and protec-tion.

—— ] ] ] ——

Social activities of trade unionsAlmost all unions in the Philippines

offer financial aid to their members whoare in need due to fortuitous or calamitousevents through a fund created for such

purpose. Some unions even have insuranceschemes for their members. Unions alsoengage in social enterprises such as coop-eratives, credit unions, owning/running ahospital and radio station, and undertakesocial action such as projects on eradicat-ing child labor, promoting environmentalconsciousness, health and safety in theworkplace, promoting the concerns of in-digenous and tribal peoples, and support-ing agrarian reform and rural development.

the beginning but seriously implementedand broadened when democracy was re-gained. Getting involved in the decision-making on social and economic policy andprograms gave unions a wider perspectiveand insight on how they may continue topromote and defend the economic and so-cial well-being of workers and the societyas well.

Important lessons may be learnedfrom these experiences:

c Grassroots-based organizations, in-cluding labor unions, by their very nature,are directly engaged in social and humandevelopment. Thus, they are the best ve-hicles for undertaking development due totheir involvement with the people who arethe object and subject of development.

c Genuine people participation opensa rainbow of possibilities and opportunitiesthat will lead to greater and better socialand human development.

c While participation of the people isthe key to the success of development ef-forts, government policies are still crucialin encouraging more participation in socialand human development.

c More freedom creates committedparticipation and responsible involvement.This gives way to greater democracy which,in turn, builds the environment for morefreedom, more committed participation andmore responsible involvement and so onin a virtuous cycle.

—— ] ] ] ——

Reaping the benefitsof workers’ participation

Employers and governments, and work-ers—all the more—would agree to the vi-tal importance of workers’ participation asa factor of development... Looking backfrom twenty years ago, much had been ac-complished by the social partners in theirefforts to advance social and human de-velopment. But much more should and canbe done to release the potentials of unionsfor social and human development.

For social and human development

Tapping the Potentials

of Labor Unions

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Consensus-building in a fo-rum like Asia-Pacific Eco-nomic Cooperation (APEC)could help neutralize a po-

tential arms race. This was the assess-ment made by former Philippine For-eign Affairs Secretary Raul Manglapusduring the “APEC Seminal ThinkersSpeak...Symposium” held on August26 at the Mindanao State University(MSU) in Marawi City, Mindanao.MSU, an active member of the Philip-pine APEC Study Centers Network,played host to the symposium in co-operation with the Philippine Institutefor Development Studies, the Depart-ment of Foreign Affairs and the Phil-ippine National Oil Company(PNOC).

APEC Seminal ThinkersAPEC Seminal ThinkersShare Vision for theShare Vision for theRegion’s ProgressRegion’s Progress

tion, the PNOC announced its jointprojects with Malaysia in the explora-tion of Cotabato oil basin and those inAlgeria and Turkmenistan. There is

“Energy thirst” could lead“Energy thirst” could leadto arms raceto arms race

According to Manglapus whonow chairs the PNOC, the potentialarms build-up is a consequence of the“energy thirst” among industrializedand newly industrializing countries inEast Asia. Japan, which consumes oilthree times more than any East Asiancountry, imports 95 percent of its oil.South Korea has more than tripled itsper capita consumption of energysince 1975. Taiwan imported 40 timesmore crude oil in 1993 compared to thefigures in 1975. China’s demand for oilis expected to shoot up to 175 milliontons by the year 2000 due to rapid in-dustrialization.

The oil wells of Indonesia havebeen producing lesser oil, and importsfrom Russia are constrained due toshort-run infrastructural requirementsand security risks. That leaves MiddleEast, which now supplies 70 percentof East Asia’s oil requirements, as thesole major oil supplier of the region.By the year 2010, supply would easilyclimb up to 95 percent.

The lifeblood of East Asian in-dustries must be borne by the seafar-ing fleets plying the waters of the Ara-bian Sea and Indian Ocean. This, ac-cording to Manglapus, logically ex-plains all the investments made inarms build-up, particularly in navalcapability, since the safety of these un-armed oil-carrying tankers must beensured.

The APEC, which reaches be-yond Southeast Asia and across thePacific, can initiate a dialogue and sug-gest concrete measures to minimizeconflicts and plan for development co-operation.

APEC’s strengthAPEC’s strength

In the same gathering, formerForeign Minister of the Republic ofKorea Choi Ho-joong who was amongthe seminal thinkers of APEC when itwas conceived in 1989 (along withManglapus), said that APEC’s strengthlies both in its diversity and in the highdegree of complementarity of its hu-man, technological and natural re-sources. East Asia, with its vast poten-tial resources, is well positioned to ben-efit from the APEC process. Energyexploration, infrastructure develop-ment and tourism promotion are ar-eas with greatest potential for APEC’sdevelopment cooperation.

Korea, known worldwide for itssuccess story in economic develop-ment, can offer a number of lessons for

other countries. Thus, Korea, accord-ing to Mr. Choi, will continue to in-crease its contribution to developmentcooperation in APEC in the form oftechnical training, expertise-sharingand model projects. He also admittedthe heavy dependence of Korea on for-eign sources of energy supply, mainlypetroleum, from Middle East andnatural gas from Indonesia. However,Korean businessmen have accumu-lated expertise in their long-standingventures in domestic and foreign mar-kets. Their extensive experience, par-ticularly in energy exploration, couldbe harnessed. Therefore, they welcomethe prospect of using and sharing theirexperience wherever and wheneverpossible.

In the field of energy, APEC cre-ated in 1990 a working group inSingapore to provide a venue forpolicy exchanges including those onsupply and demand, conservation, re-search and development, environ-ment, and technology transfer. Sincethen, the working group has producedconcrete achievements such as the cre-ation of an energy database and theformulation of working guidelines fordevelopment cooperation.

In the spirit of APEC coopera-

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DEVELOPMENT RESEARCH NEWS 1 0 September - October 1996

APEC Seminal Thinkers...Page 9<

timistic that APEC will evolve into apotent economic community that tran-scends continental and regionalbounds. They foresee that differenceswill not be a hindrance. APEC will in-stead orchestrate and mobilize differ-ent economic forces for greater growthin the region.

The symposium held at MSU isthe first of a two-part series of sympo-sia wherein former Foreign Ministersof the APEC founding member-econo-mies are invited to speak before mem-bers of the Philippine APEC StudyCenters Network, the academic com-munity, local government units,nongovernment organizations and the

private business sector to share theirthoughts and new perspectives aboutAPEC and other related concerns.

The series of symposia will helphighlight the APEC Study CentersNetwork’s activities in the Philippinesand help crystallize ideas for the forth-coming leaders’ Summit based on thethoughts and perspectives of theformer Foreign Ministers under whoseterms the concept of APEC was born.

The second and final symposiumis scheduled on November 11, tenta-tively with the Foreign Ministers of Ja-pan, Indonesia and the Philippines asguest speakers.

also the potential sharing of geother-mal technology with Indonesia and theTrans-ASEAN gas pipeline project inyear 2007.

APEC to transcendAPEC to transcendgeographical boundsgeographical bounds

The APEC seminal thinkers, in-cluding Malaysian Domestic TradeMinister and former Foreign MinisterDato Haji Omar who was also presentduring the August symposium, are op- DRN

Nitz Tolentino; Sierra Desuasido, 2nd prize-Category B; Mela Cruzado; Gene RoseEstrabon, 1st prize-Category B; PIDS President Dr. Pons Intal, Jr.; Zeny Isip; MerleGalvan and son Adrian (hidden); Director Jenny Liguton; (2nd row) Miko Salcedo,3rd prize-category A; Eric Ferrer, special prize; Mary Allen Pasion, special prize;Erwin Isip, 2nd prize-Category A; and Jana Galvan, 1st prize-Category A.

y

Aside from the regular discus-sions on topics such as the implicationsof the World Summit for Social Devel-

opment on the Philippines, water poli-cies, effects of uniform tariffs, and apresentation of the Data Information

ymposia, workshops andthe annual loyalty awardsusually marked theInstitute’s celebration of its

anniversaries. This year, however, theInstitute’s 19th anniversary week-longcelebration included activities de-signed to enhance the tie that binds thePIDS staff into one big happy family.

S One One Fine WeekFine Week at PIDS at PIDS

Hands to their chests, the kids sing the national anthem during the openingceremonies of PIDS Family Day.

WINNERS ALL. Parents pose with their winning children (from left, 1st row) FamilyDay Committee Chairman Corazon Desuasido; Jet Tolentino, 3rd prize-Category B;


and sponsored by the PIDS Credit Co-operative. There were several prizes atstake but the major prize went to Dr.Marian delos Angeles.

And to cap the week-long cel-ebration? A dinner-testimonial washeld in honor of PIDS outgoing Boardmember, Dr. Edita Tan, who contrib-uted a lot in the strengthening of theInstitute's research agenda and opera-tional systems.

and Resource Project (DIRP), the Insti-tute held a Family Day, a bowling tour-nament, a visual arts contest for thechildren of PIDS staff, an ExecutiveMemo Writing Contest and a game ofbingo to allow the staff to relax fromtheir usually rigid and deadline-ori-ented work schedules.

Children took the limelight dur-ing the first PIDS Family Day and Vi-sual Arts Contest held on September22, a Sunday. The drawing contest "de-manded" their best to interpret thetheme of “PIDS, my Country, and theWorld.” Winners in the two catego-ries—three each for Category A (5-12years old) and Category B (13-18 years

old)—were given plaques, gifts andcash prizes. The judges were JoyLozare of EEI-TOEI, Odie Rodolfo ofCreative Response, Inc., both knowngraphic designers and artists, and NoliSan Jose of the Development Bank ofthe Philippines’ Corporate AffairsCenter.

After the little ones, the olderones had their time to shine in thebowling lanes of SM MegaMall. Thehighest pointers for men and womenwere Santiago Salazar and JosefinaVinluan, respectively. Perhaps themost exciting activity for the week wasthe Bingo Socials held at the MakatiSkyline in Legaspi Village, Makati City

WE ARE THE CHAMPIONS! Members of the first and second place winners of the bowling tournament pose for thecamera. (From left) Jane Alcantara, Edith Laviña, Susan Pizarro, Eden Villanueva, Edwin Guillartes, GemmaTriunfante, Connie Chua, Mela Cruzado, Mel Isip and Al Pasion.

py

AT THE BINGO GAME: Rare photo showing hardworking Fellows at play. Dr. Linda Medalla (center) seems to say, “Ihope I’ll win!” She does not, Dr. Ann delos Angeles (left) does while Dr. Chat Manasan (right) looks on approvingly.

Editorial Board

Dr. Ponciano S. Intal, Jr.President

Dr. Mario B. LamberteVice-President

Ms. Jennifer P.T. LigutonDirector for Research Information

Mr. Mario C. FeranilDirector for Project Services and Development

Ms. Andrea S. AgcaoiliDirector for Operations and Finance

Atty. Roque A. SoriosoLegal Consultant

StaffJennifer P.T. Liguton

Editor-in-Chief

Corazon P. DesuasidoIssue Editor

Ma. Lourdes M. Salcedoand Genna J. Estrabon

Contributing Editors

Valentina V. Tolentinoand Rossana P. Cleofas

Exchange

Delia S.Romero, Galicano A. Godes,Necita Z. Aquino and Federico D. Ulzame

Circulation and Subscription

Jane C. AlcantaraLay-out and Design

Vol. XIV No. 5 September-October 1996

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Increase to Come...Increase to Come...Page 3<

structure, that boost their ratingsamong their constituents. The Senate,on the other hand, is known to favorboth economic and social service sec-tors although preference is given to thelatter.

Matching resources with needsMatching resources with needs

To attain the Philippinegovernment’s mid-decade goals(MDG) for health, education and wa-ter and sanitation, an additionalamount of P5.6 billion per year will beneeded. The potential financing re-sources identified in the study are thussufficient enough to cover the financ-ing of the government’s MDG.

However, this is easier said thandone.

Budget restructuring opportuni-ties are easy to identify but every ad-ministrative, legal and politicaleconomy constraint must be properlyunderstood to determine the feasibil-ity and successful harnessing of theseopportunities.

DEVELOPMENT RESEARCH NEWS is a bi-monthly publication of the PHILIPPINEINSTITUTE FOR DEVELOPMENT STUDIES (PIDS). It highlights the findings and recommendationsof PIDS research projects and important policy issues discussed during PIDS seminars.

PIDS is a nonstock, nonprofit government research institution engaged in long-term, policy-orientedresearch. This publication is part of the Institute's program to disseminate information to promote the useof research findings.

The views and opinions expressed here are those of the authors and do not necessarily reflect thoseof the Institute. Inquiries regarding any of the studies contained in this publication, or any of the PIDSpapers, as well as suggestions or comments are welcome. Please address all correspondence and inquiries to:

Research Information StaffPhilippine Institute for Development Studies

Room 304, NEDA sa Makati Building,106 Amorsolo Street, Legaspi Village

1229 Makati City, PhilippinesTelephone Numbers 892-4059 and 893-5705

Telefax Numbers (632) 893-9589 and 816-1091E-mail Address: [email protected]

Re-entered as second class mail at the Makati Central Post Office on April 27, 1987. Annual subscriptionrates are: P150.00 for local subscribers; and US$20.00 for foreign subscribers. All rates are inclusive ofmailing and handling costs. Prices may change without prior notice.

DSWD Reports...Page 7<

projects toward protecting and integrat-ing the marginalized sectors of the soci-ety into the mainstream of national de-velopment.

Implications of the PhilippineCommitments

The Philippine commitments are veryreal and binding to the present and fu-ture administrations. If the collective ef-forts of implementing these commit-ments succeed, it will mean a better qual-ity of life for the Filipino family.

A year after the 1995 summit inCopenhagen, much still needs to be doneespecially when other summits such asthe Cairo International Conference onPopulation and Development, the Beijing4th World Conference on Women, the Tur-key 2nd International Conference on Shel-ter and Human Settlements are equallyconsidered. All these commitments areexpected to move the country towardPhilippines 2000.

c P500 million from improvedcollection and reduced water losses.

The study noted that the coun-try has been liberalizing and reducingtariffs yet there were still hugeamounts of tariff exemptions in the lasttwo to three years. The rates are goingdown but exemptions are still beinggiven to a number of industries. Thestudy suggests that if these exemptionscan be done away with, additional rev-enues can be raised that could possi-bly be spent on the social sectors.

The study also compared the1994, 1995 and 1996 allocations in thePresident’s Budget (PB) presented toCongress and the General Appropria-tions Act (GAA or the approved bud-get). In 1994, the ratio of GAA to PBwas 0.99 which means that Congressdid not impose a reduction on the PB.However, the GAA was 3 percenthigher than the PB in 1995 and 4 per-cent higher in 1996. What Congress didwas to reduce debt service or interestpayments and the savings, whichwere automatically appropriated,were then reallocated to other sectors.

There were some improvementsin the allocation to the social sectorsin 1994 but not in 1995 and 1996. Al-though the social sectors seemed to geta little more, the economic sectors havebigger appropriations in the GAA thanthe social sectors. Moreover, an analy-sis of the PB and GAA in 1993-1994showed that the legislature tended tofavor the economic service sectors. Itis commonly observed that the Con-gress is inclined to increase outlays forhighly visible projects, such as infra-

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Documents

Social - Philippine Institute For Development Studiestino, Executive Director of the Philippine Business for Social Progress (PBSP); Antonio C. Asper, Vice-President for In-ternational