governance and poverty (2007)

7/27/2019 Governance and Poverty (2007)

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Lessons onGovernance & Poverty

Horacio R. Morales,Jr.

President, La Liga Policy Institute

Former Secretary, Department of Agrarian Reform

April 26, 2007


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Amidst news report and officialpronouncement of Malacaang on

the countrys economic recovery,hunger in the Philippines has risen

to an all time high.


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SWS Survey Results

Record high incidence of involuntary hungerreaching 19 percent as of the first quarter of2007

Estimated 3.4 million Filipino households hadnothing to eat at least once in the past threemonths

Double digit incidence of involuntary hungerrecorded since June 2004

62 percent of Filipinos rating themselves aspoor


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Official Data Official poverty data, however, at best remain

sketchy.

NSCB pegs the annual per capita povertythreshold as of March 2007 at P14,866/year orP41 per day

Annual food threshold is peg at P9,350/ year orP25 per day (2005 is latest data available).

Poverty Incidence estimates range from 30 to 40percent of the Philippine population or around 24to 30 million Filipinos.

The incidence of absolute poor is estimatedbetween 16 to 20 percent or around 10 to 15

million Filipinos.


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The problem of hunger while glaring

only exposes the surface of a longstanding deeply entrenched and

multi-faceted development dilemma

begging for an in-depth

understanding, critical assessment,

innovative, concerted and sustainedsolutions.


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Facets of the Hunger Problem

Is the phenomena of hunger transient or a permanentoccurrence?

Is hunger a result from the lack of food? Is it thereforecaused by the lack of supply of food or a problem ofdistribution or marketing of current food production?

Or are food prices high and therefore unaffordable?Is it caused by the lack of incomes, the lack of cash

resources that will allow a family to buy food? Is ittherefore an issue of lack of employment or an issueof low wages? Or an issue of productivity and lowfarm incomes for the rural poor?


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Or do poor Filipino families lack the capacity to earndecently in order for them to afford three squaremeals a day? Therefore, is it an issue of economic orsocial skills, knowledge and assets, or the lack ofaccess to the market?

Do the hungry poor even have the capacity toinfluence state and non-state development agents to

assist them or to involve them in defining policiesand programs that will impact on their impoverishedsituation?


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Responses to these questionsdetermine distinct but interrelated

frameworks.


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What Are We Certain Of

Poverty in the Philippines persists. Despite themany different means of measuring incomepoverty, the trend is clear income poverty isworsening since 1997.

Looking at poverty purely from the incomeapproach is not enough. It is important to look atpoverty in its varied dimensions.

Consequently, addressing poverty by simplyspurring economic growth is necessary but notsufficient.


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Governance &Poverty


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State Responses to Hunger

After the SWS report on hunger came out,Government immediately announced that itintends to allocate its income from the sale ofsequestered shares from PLDT amounting to

PhP 25 billion pesos to eradicate hunger in thecountry.

According to NEDA Director General Neri PhP20 billion will be utilized for upland developmentprojects while PhP 5 billion will go to food forschool and other feeding programs


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This is very similar to governments response

when hunger initially reached 15 percent in

2004.

At that time the Arroyo government was quick

to respond by launching a food coupon

program that targeted 5 million poor Filipinos.

By design the program would have distributed

coupons that can be exchanged for groceries.


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These knee jerk anti-hunger programs has beenlargely been criticized for its dole-out approach andfor its short-sightedness in addressing the issue ofpoverty.

These attempts, however, typifies state initiatedprograms aimed at alleviating and reducing poverty inthe Philippines.

High profile programs aimed at populist acceptancewithout much consideration for the varyingdimensions and causes of poverty are bound to fallshort in achieving the objectives of poverty reduction.


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The ADB Poverty Report arguesPOLITICS is becoming the main

problem confronting the country today

weak governance seems to be themajor contributory factor for the

economys lackluster performance and

the insignificant impacts on povertyover the years.


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Governance Issues

A considerable amount of resources, aboutP13.5 billion or the threshold requirementsgood enough for about 232,658 households or4% of the estimated poor population

(headcount) in year 2000, have already beenspent for these programs.

The resources expended nonetheless appear

to have been inefficiently rendered, consideringthat the effectiveness odds (in terms of targets)have been 1:2.


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Program Discontinuity

The discontinuity in the programs, isdisadvantageous to the poor.

Program life appears to be co-terminus

with the governing regime. The inconsistency in poverty frameworks

and policy puts programs in never-ending transitions which have concretecosts in terms of time and resources.


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Changing Framework andTargeting Mechanisms

Changing framework and policies led tovariations in spatial and beneficiary targeting.

Government tends to change its mind over who

should benefit from poverty reduction once itassumes office.

Even changes in poverty measurement

methodologies impact on targeting mechanisms. In most cases, targeting has been very

vulnerable to political capture.


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Changing InstitutionalMechanisms

The National Anti-Poverty Commission (NAPC)evolved from the Social Reform Council (SRC).

However, roles and expectations from the NAPC

have changed across administrations. Periods of institutional transition has contributed

to a less than favorable performance ofgovernment poverty reduction programs.

Over time processes of political participationenshrined in the NAPC has become highlypoliticized.


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Also, despite the existence of centralized

mechanisms for poverty program coordination,

attempts at convergence coming together ofvarious agencies in the operationalization of

coordinated anti-programs have not been as

successful.


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Erratic and Limited Financing

Financing for anti-poverty and poverty

reduction programs has also been erratic.

It is highly dependent on the priority accordedby the sitting administration.

The already limited resources for these

programs are further limited by corruption andinefficient use of resources.


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Where To? HowCan We Move

Forward?


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The Challenge Identification of the poor

Understanding the various dimensions of poverty Equally important - adopt a coherent and

sustained anti-poverty program

Adopt a more pro-active anti-poverty governancemechanism not only at the central state level butmore especially at the local level

Bring together substantive participation andpartnerships from reformers within government,citizens and citizen groups, communityorganizations and even the private sector


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For La Liga and our network non-government

organizations such as PRRM and Convergence:

We are developing an approach to poverty

reduction which centers on building sustainable

communities. Primary Engines - Participatory local governance

and social enterprise development

Equally important - build and sustain a national,regional and global network advocating for

policy shifts in favor of sustainable development.


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With the persistence of poverty in thePhilippines, one thing is becoming

clearer and clearer. A linear, traditionaland simplistic approach and perspectivein addressing the issue of poverty must

give way to a multi-dimensionalappreciation of the issue.


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The era of quick fixes must be put to an end.We need to put in place honest, deliberate,

systematic and synergistic developmentprograms if at all we are going to

substantially, qualitatively and sustainablyuplift the lives of the Filipino poor.

governance and poverty (2007)

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