Headlines, Bylines and Datelines

By Jesus F. Llanto
Researcher, Newsbreak

October 9, 2008–Local government units (LGUs) were urged to develop business-friendly environments to attract investments from the fast-growing business process outsourcing (BPO) industry.

During the 2008 Local Government Code Anniversary Conference held Wednesday in Makati City, local officials were told that they should adopt policies that would make them attractive to BPO investments.

LGUs were also encouraged to follow the measures done by the Bacolod City government in supporting the BPO sector. Bacolod City passed an ordinance endorsing accreditation of Philippine Economic Zone Authority (PEZA) sites, and promoted Bacolod as ICT hub by participation in conferences and trade shows and by using website and brochures.

“LGUs sometime have to see themselves as business planner, catalyzer, and enabler instead of being just enforcer,” said Bacolod City councilor and Bacolod-Negros Occidental Federation for Information and Communications Technology chair Jacelle Batapa-Sigue.

Sunshine industry

Considered one of the sunshine industries—along with mining, agri-business and tourism—that can be tapped by local government units, the BPO industry has employed around 300,000 workers and has estimated revenue of US$ 4.9 billion in 2007.

Dan Reyes, president of Sitel and of the Business Process Association of the Philippines, said that among the advantages of the country in attracting BPO investments are the Filipinos’ English-speaking ability, their cultural affinity to the United States, competitive labor, real estate and telecommunication costs. (abs-cbnNews.com/Newsbreak)

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Photo Credit: www.newsbreak.com.ph

By Jesus F. Llanto

October 8,2008-Local government units (LGUs) should improve their competitiveness to attract more investments and to develop their local economy, local officials and private sector representatives said in a LGU summit held Wednesday in Makati City.

Speaking at the 2008 Local Government Code Anniversary Conference, government officials and private sector representatives said improving the competitiveness at the local level and developing a strong local economy can help the country cope with the effects of the global economic slowdown.

“Harnessing LGU competitiveness is important in mitigating the effects of economic crisis,” said Interior and Local Government Secretary Ronaldo Puno in a statement read by DILG undersecretary Austere Panadero.

Puno said the 17 years of the implementation of the Local Government Code has enabled the LGUs to increase their contribution to the national economy. “The Local Government Code (LGC) is instrumental in raising the local economic development and the growth of cities.”

The LGC, which was enacted 17 years ago, devolves some functions from the national government, like taxation, registration of business to local government units—provinces , cities, municipalities and barangays

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July 4,2008-Most provinces miss their potentials for development because they plan programs and operations without consideration of sectoral concerns, the budget, and the plans of the national and municipal governments that they are supposed to complement.

An expert in urban and regional planning said in a recent conference in Quezon City that the low capabilities of provincial planning and development offices (PPDO) result in poor plans that have little impact on local development.

Benjamin Cariño, former dean of the University of the Philippines School of Urban and Regional Planning (SURP), said most of rank and file personnel in PPDOs have little experience in planning.

“Most provincial planning development coordinators appear qualified as far as education and experience are concerned. A major constraint, however, is that majority of PPDO technical personnel lack formal planning expertise, especially among plantilla staff,” he said. (abs-cbnNews.com/Newsbreak)

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By Jesus F. Llanto

May 16, 2008-A new municipality has been created in the province of Basilan, cementing the reputation of the Autonomous Region in Muslim Mindanao (ARMM) as the region that most frequently fragment existing local government units (LGU), usually despite their economic non-viability.

A regional lawmaker defended the creation of numerous LGUs, saying it helps prevent clan wars because political families are given their respective turfs, but made guarantees that no more LGUs will be created in the coming years, at least in Basilan.

The town of Tabuan-Lasa was carved out of Sumisip, a third-class municipality. Tabuan-Lasa is composed of 12 barangays—Babag, Balanting, Boloh-Boloh, Bukut-Umus, Kaumpurnah, Lanawan, Pisak-pisak, Saluping, Suligan, Sulloh, Tambulig Buton, and Tong-Umos.

It was created through Muslim Mindanao Act No. (MMA) 187, which was ratified in a plebiscite last March 29. Its creation brings the number of municipalities in Basilan to 11 and reduces the number of barangays in Sumisip, its mother municipality, from 41 to 29. 

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By Jesus Llanto
Researcher

April 14, 2008-How do you ensure that your local government is being run honestly? You either train the spotlight on it, or work with it. Thirty-three groups that propose to do this each received a maximum P1 million on Thursday to pursue projects that will engage their choice local government units (LGUs), specifically in the areas of delivery of basic social services, governance and administration, livelihood and enterprise management, and environmental management.

Called Panibagong Paraan, this is the third search by the World Bank for innovative ideas to address development challenges in the Philippines. Held every two years, each search is governed by a theme.

The 2008 search is for project proposals that seek to improve local governance by ensuring transparency and efficiency in LGUs. Depending on the requirements of the project, the World Bank and partner institutions give a maximum funding of P1 million for each project. (abs-cbnNews.com/Newsbreak)

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By Jesus Llanto
Researcher

April10,2008–An expert in local governance said local government units should cut red tape to be more competitive in attracting businesses and to provide more employment opportunities to its people.

In a forum held during the opening of the grant competition Panibagong Paraan 2008 Federico Macaranas, executive director of the Asian Institute of Management Policy Center said that red tape has driven away investments in the local government units and has inhibited business growth and employment creation.

Red tape is a term used to describe unnecessary delays in transactions, mostly with the government, as a result of redundant procedures, and unnecessary paperwork.

Macaranas said that too much paperwork and redundant requirements have driven away investors and have eroded investor confidence because it opens more opportunities for corruption and bribery.

“Large number of steps and face-to-face interaction creates opportunities for corruption,” said Macaranas. “If there is a lot of face-to-face interaction, that’s when the drawers start opening.” (abs-cbnNews.com/Newsbreak)

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By Jesus Llanto
Researcher, Newsbreak

Muslim Mindanao law not as strict as Local Government Code on requirements for new towns.

March 28, 2008–Four municipalities will be created in Maguindanao in the coming weeks as the lawmaking body of the Autonomous Region in Muslim Mindanao (ARMM) sets to approve the bills for the new local government units (LGUs).

More than improving the delivery of services to far-flung villages, however, the real purpose of creating new, but apparently non-viable, LGUs in the Muslim-dominated provinces is to create as many turfs as possible to warring political clans.

Creating new LGUs then becomes a sort of conflict-resolution tool, albeit temporarily.

Benedicto Bacani of the Institute of Autonomy and Governance in the Notre Dame University said the creation of these new LGUs is a conflict-resolution tool.

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ByJesus F. Llanto, Researcher

Budgets for education, health, peace and order to be reduced by as much as 40 percent.

City governments in Mindanao are set to cut down on basic services and contractual employees to cope with the unexpected decrease in their Internal Revenue Allotment (IRA) share this year.
Cities nationwide were expecting huge increases in their IRA this year, and thus programmed their expenditures based on those amounts. However, the national government–upon Congress’s initiative and the President’s approval–created 16 cities in 2007 that didn’t meet the requirements set by law. This slashed the old cities’ expected IRA increase by tens of millions each.
Earlier, existing cities launched a series of protest actions by threatening to halt operations or withholding tax remittances and government insurance payments.

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By Jesus Llanto
Researcher, Newsbreak

The town of Infanta in Quezon province has seen too many typhoons, floods, and landslides. They just have to be expected every year along the country’s typhoon belt where the municipality is located.

In November and December 2004, for example, floods brought by typhoons Winnie and Yoyong destroyed P103 million worth of agricultural crops and caused P300 million in damages to infrastructure. The disaster killed at least 170 people and left thousands homeless.

Infanta refused to wallow in devastation, though, and designed a disaster management program that required the participation of its residents. It is one of the 10 best practices in local governance that Galing Pook Foundation, a network of multi-sectoral organizations, acknowledged recently in its annual awards.

Infanta’s disaster management program trains residents how to respond appropriately to disasters and emergencies. Drills are conducted, communication and early warning systems are installed, and investments are made in flood control equipment and in river rehabilitation efforts.

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• Photo Credit: Galing Pook Awards Souvenir Program