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DRAFT FOR DISCUSSION Challenges and Opportunities for Financing Development in the Philippines by Marina Durano1 Presented at a Panel

on Human Rights and Macroeconomic Policies at the Expert Group Meeting on Promoting Human Rights in Post-Crisis Financial Regulation and Macroeconomic Policies Organized by the Office of the High Commissioner on Human Rights in cooperation with the Center of Concern 24-25 April 2013, United Nations, New York City

The Philippines and the Global Financial Crisis The immediate impact of the global financial crisis on the Philippine economy was a decline in exports resulting in a decline of GDP growth (from 7.1% in 2007 to 1.1% in 2009). GNP growth also declined over the same period but less dramatically (from 7.5% in 2007 to 4.0% in 2009) because of the continued growth of the overseas workers remittances (Manasan 2011). The impact was compounded by the sharp rise in food and fuel prices during the first quarter of 2008 (Manasan 2011; Balisacan, et al. 2010; Yap, et al. 2009). The Philippine government responded through the Economic Resiliency Plan (ERP), which aimed to pursue a countercyclical fiscal policy amounting to PHP330 billion (or USD6.9 billion) to sustain growth rates achieved before the crisis, reduced the unemployment effects, protect vulnerable social sectors, reduce inflation, and ensure competitiveness in preparation for the global economic recovery (Manasan 2011; Yap, et al. 2009). Flexibility to undertake countercyclical policy was possible because the Philippines improved its fiscal position between 2003 and 2007 as indicated by a decline in the primary deficit of 4.6% of GDP in 2003 to 0.2% of GDP in 2007. National governments outstanding debt (including contingent liabilities) to GDP ratio also declined from 95.4% in 2004 to 63.1% in 2007 (Manasan 2010). The ERP fiscal stimulus package resulted in an increase in the budget deficit to -0.9% of GDP in 2008, to -3.9% in 2009, and -3.7% in 2010. Total outstanding debt to
1 Assistant

Professor, School of Economics, University of the Philippines-Diliman, Quezon City, Philippines. For correspondence, send email to

GDP ratio also increased slightly to 65.2% in 2009. Manasan (2011) evaluated the effectivity of the fiscal stimulus package of the Philippine government and found that the package was able to counteract the decline in exports and in private investments. The figures on the Philippine governments fiscal position remain within a comfortable zone but that is not to say that there are no risks to fiscal sustainability. The 2014 budget deficit target is 2 per cent of GDP, with the Philippine government aiming for a balanced budget. Improved tax effort is needed in the Philippines. The Philippines recently passed a new tax law aimed at increasing revenues but this will not be enough so that a key element in the financing strategy is private-public partnerships for various types of infrastructure projects, including classroom building. A reduction in the debt burden, particularly in reducing borrowings just to pay off debt is very much needed if it is to meet internationally agreed development goals, contribute to the achievement of the MDGs, and fulfill its human rights obligations. On Development Budgets, Fiscal Deficits, and Imperfect Obligations The phrase fiscal deficits fails to carry the weight of responsibility and obligations that state institutions have in fulfilling commitments to human rights. I prefer the term development budgets that clearly convey the outcomes desired by this policy target. My preference is to speak of budget deficits in the context of pursuing development in its broad sense rather than its narrow interpretation of per capita income growth (as well as other income-based measures of development). By insisting on this phrase, the connection between macroeconomics and human rights becomes more explicit. Human rights may be viewed, as argued by Amartya Sen, as ethical demands for the freedoms that are contained in the set of rights being deliberated. These freedoms, in turn, from a capabilities approach, are constitutive of human development (Sen 2004). When viewed as ethical demands, rather than the narrower interpretation of human rights as legal instruments, the potential for fulfillment are more broadly shared across society; that is, that perfect obligations are not only specified (typically through legal means) but imperfect obligations come into play as it becomes necessary to also ask how each member of society and its multitude of organizations and institutions can contribute to pursuing the freedoms being sought (Sen 2004). Imperfect obligations involve the demand that serious consideration be given by anyone in a position to

provide reasonable help to the person whose human right is threatened (Sen 2004: 341). With this interpretation, therefore, macroeconomic policy makers, most prominently central monetary authorities, finance and budget ministers, and planning ministers, are at least held responsible for the fulfillment of human rights commitments. The most direct argument for the involvement of these actors are that they are part of the state apparatus, that is often acknowledged as the duty bearer. But even when, these actors may be able to deny direct connection with the state, as in the case of central monetary authorities and their claims of independence, they remain members of society and have imperfect obligations to the fulfillment of human rights. Let me quote, for example, a deputy governor of the Central Bank of the Philippines explaining why the national government cannot issue debt instruments of behalf of the central bank: The differing incentives arising from the separate objectives of fiscal and monetary policy could pose conflicts of interest for the Bureau of the Treasury, part of the Department of Finance, as the expected issuer. Consequently, coordination may be difficult even if detailed agreements are made bet een the monetary and fiscal authorities. Furthermore, as the national government operates in a more politicised environment, the B!" could be forced to defend its operational decisions to political forums. !uch politicisation of the monetary policy implementation process represents an unnecessary distraction in the conduct of monetary policy and imposes transaction costs on the regular policy#setting process $%uinigundo &'(&) &*+,.- This type of statement defies the process aspect of the human rights frame or. that insists on transparency, participation and public deliberation. /t is very important to try to reconcile the 0independence- position ith human rights obligations. Imperfect obligations also imply that international coordination over macroeconomic policies have a role in supporting nation-states abilities to fulfill human rights commitments. Again, fiscal and monetary authorities can reasonably consider in what way they not only promote, protect and fulfill the rights of their fellow citizens but, since their actions affect people beyond their borders, an extension of the application of reasonable consideration is justifiable. I would argue further that The Right to Development serves to reinforce this expectation of reasonable consideration. On Multi-layered Governance Structures

Let me focus on central monetary authorities. Their scope of influence in macroeconomic matters extends not only to national and international relations but also to local government financing. This multi-layered governance structure means that monitoring of human rights obligations of central monetary authorities needs to occur at all three levels of governance. At the regional level in Southeast Asia, for example, as part of the regional response to the global financial crisis, independent surveillance units are being established but many efforts appear under-resourced and fragmented (Sussangkarn 2010). Among these units are: the ASEAN Surveillance Process attended by ASEAN Finance Ministers, the Economic Review and Policy Dialogue among Deputy Finance Ministers of the ASEAN+3, and the Executives Meeting of East Asia Pacific Central Banks that include Hong Kong, PRC, Australia and New Zealand as well as ASEAN-6. Therefore, along with the daily task of monitoring macroeconomic developments at the national level, there must be appropriate monitoring of external events considering shocks recently experienced. At the international level of governance, sovereignty issues may arise and so the coordination aspect needs to be emphasized. The question is the transparency of these international forums to the broader public. Can mechanisms be established to allow for non-government analysis and opinions to be considered in the deliberations? For example, is it possible to institute an instrument similar to an amicus brief for consideration in the coordination meetings? In the Philippines, national level monitoring is undertaken through a Development Budgets Coordination Council (DBCC), which as inter-agency group at the Cabinet level that includes the Secretary for Department of Budget and Management, the Secretary for Finance, the Secretary for Socio-Economic Planning and the Executive Secretary of the President. The DBCC has the mandate to recommend the annual government expenditure program and the spending ceilings for socio-economic development, national defense, general government, and debt service. The Central Bank of the Philippines is a non-voting member of the DBCC and recommends inflation targets but the approval is made by the entire committee so that the Central Bank does not enjoy full independence (Guinigundo 2012). Another venue for coordination between the Central Bank and other agencies is through the Investment Coordination Committee,

which is tasked with evaluating the macroeconomic implications (monetary, fiscal, and balance of payments) of major investment projects and the domestic and foreign borrowing program. At this level of governance, an active civil society is helpful through their direct engagement in the analysis of the budget as well as proposals for expenditure allocation. As indicated in the Department of Budget and Managements National Budget Memorandum No. 115, the 2014 budget cycle includes mechanisms for peoples engagement with the budget preparation process. A Budget Partnership Agreement (BPA) will be entered into by the a government agency or corporation and civil society organizations who are participating. Before this formal mechanism, an Alternative Budget Initiative led by Social Watch Philippines was already actively engaging with the budget typically during the stage when the budget is presented to the legislature. National Budget Memorandum No 115 also mentions the Bottom-up Budgeting Projects, which are meant to increase the linkages between national and local levels of governance. In 2013, only 609 cities and municipalities were involved. For the 2014 exercise, there will be 1,233 local government units. The Department for Social Welfare and Development working with the National Anti-Poverty Commission are especially important for ensuring the success of this mechanism. The Philippine Commission on Women implements the GAD (Gender and Development) Budget equivalent to 5 per cent of total budget allocations as mandated by the Magna Carta of Women (Republic Act 9710). The GAD Budget is focused on government agencies that must plan and program in a way that incorporates the gender perspective and promotes gender equality. Planning for 5% of the budget is expected not only to promote gender equality but also to influence the design and programming of the remaining 95% such that these activities complement the GAD plans. However, most if not all of these mechanisms focus on expenditures and not on the macroeconomic assumptions, targets and ceilings. These continue to be the exclusive domain of the main macroeconomic policymaking institutions. An exception is the work of the Freedom from Debt Coalition that is focused on the impact of the sovereign debt problem of the Philippines on expenditure ceilings and overall growth prospects. Indeed, the debt burden creates risks to fiscal sustainability.

Debt financing also comes into play for local government financing. The Central Bank of the Philippines has the potential to influence this, especially on debt-issuance of local government units. It has been more than 20 years since the Local Government Code (Republic Act No. 7160) was enacted that gave local government units (LGUs) in the Philippines fiscal autonomy at the same time guaranteeing that these LGUs receive a share of national taxes known as their internal revenue allotment. Unfortunately, these LGUs continue to be dependent on the internal revenue allotment unable to generate their own revenues. These LGUs become vulnerable to the political influence of members of the House of Representatives who can use their Provincial Development Assistance Fund (more popularly known as the pork barrel) to buy support. Along with fiscal decentralization came devolved expenditure responsibilities on basic health care, social welfare programs, agricultural extension work, local environmental concerns, and local public works (Diokno 2012). There is limited financing available to LGUs for their projects beyond the intergovernmental fiscal transfers from the national government. Official Development Assistance grants are limited, for example. There is a better chance of accessing ODA loans that are re-lent through national government agencies, government financial institutions, and the Municipal Development Financing Office (MDFO). Unfortunately, due to the rules on the financing framework, many LGUs withdraw from the facilities because they cannot afford the counterpart equity (Brillantes, et al. 2010). Another limitation of the LGUs is that foreign donors require a sovereign guarantee but the Foreign Borrowings Act (R.A. 4860 of 1966, predating the Local Government Code of 1991) does not allow such guarantees to be given to LGUs. Only national government agencies are entitled to sovereign guarantees (Brillantes, et al. 2010). The private sector has stepped in to fill this gap in financing with the establishment of the LGU Guarantee Corporation, whose owners are the Bankers Association of the Philippines, the Development Bank of the Philippines, and the Asian Development Bank. The guarantee, while not applicable for ODA funds, is helpful not only for the LGU to access commercial bank financing but also for bond flotation. Unfortunately, eligibility requirements state that guarantees are only available to first and second class provinces and cities, and first class municipalities numbering only 500 out of 1,714 local

government units. Key to obtaining a guarantee is the use of the IRA as collateral. Specific to bond flotation, an important step is for the LGU to obtain approval from the Central Bank of the Philippines, particularly on the macroeconomic implications of the potential bond float. The role of national government has been clarified in terms of planning and programming links through the Bottom-up Budgeting Projects. The question here is the role of the central bank both on regulatory aspects (capital adequacy requirements of bond flotation, for example) as well as macroeconomic effects. The macroeconomic effects might become a hurdle to the late comer (or late floater) municipality as the liquidity will have been mopped up by early floaters but much of this will depend on market conditions. Intergovernmental fiscal relations takes on a different character since it will be a relationship between the central monetary authority and the local government unit that has to be defined. As with national government financing, these macroeconomic concerns are outside of the public discussions and deliberations. Process-oriented approaches and the need for evaluative measures In 2008, Administrative Order 249 mandated the National Economic and Development Authority, the planning agency of the Philippines, to ensure that the human rights based approaches was integrated into development planning. It launched a Human Rights Based Approach Toolkit designed for development planners this year. The HRBA Toolkit emphasizes participation and highlights the PANTHER (participation, accountability, non-discrimination, transparency, human dignity, empowerment, and rule of law) principles in doing so. The HRBA Toolkit contains chapters on the parameters and processes of development planning. Despite availability, however, it is not clear who and in what areas the Toolkit has been applied. The Toolkit itself needs to be shared with the technical staff and decision makers of the DBCC and the ICC particularly in preparation for the macroeconomic assumptions and targets at the beginning cycle of the budget process. What we have seen, so far, is the budget cycle incorporating PANTHER principles in the budget preparation process. There are, however, three other segments of the budget cycle beyond preparation, namely

legislation, execution, and accountability, that might require also mechanisms of engagement. In reviewing the mechanisms for participation, it was noted that there are hardly any opportunities or even interest in deliberating the macroeconomic issues. Key to its successful implementation would be the availability of evaluative measures designed to assess macroeconomic policies consistency with human rights commitments. The assessment, we have noted must be done at all levels of governance. At the international level, National Budget Memorandum No. 115 noted that fiscal consolidation is necessary for the Philippines because of the continuing economic weakness of Europe and the United States (DBM 2013, paragraph 3.2). International coordination is recommended but the forums should begin discussions on how such assessments may be conducted. As part of the ongoing public financial management reform, the Philippine government will be instituting an Organizational Performance Indicator Framework (OPIF) that is expected to increase cost effective delivery and that programs are in line with the Philippine Presidents Social Contract involving five (5) key result areas 2. At this level, the key result area of rapid, inclusive and sustained economic growth, which is the goal of macroeconomic policies, will have to be evaluated against human rights commitments. The OPIF has space for identifying indicators of success and the HRBA Toolkit has suggestions on how the choice of indicators can incorporate HR principles. Since the basic institutional framework is present, the matter to be attended to is implementation. In pursuit of implementation, a discussion between the human rights community and macroeconomic policy makers might be helpful. The evaluative measures can come in at various levels. Some might involve a discussion of the underlying normative frameworks of the dominant macroeconomic theories applied by the Philippine government and its agencies as well as by the Central Bank of the Philippines. It also implies that chains of causality are established between national income growth and stability and the variety of indicators of the well-being of the citizens of the Philippines or
2 These are: anti-corruption and transparent, accountable, and participatory governance; poverty reduction and empowerment of the poor and vulnerable; rapid, inclusive and sustained economic growth; just and lasting peace and the rule of law; and, integrity of the environment and climate change adaptation and mitigation.( 8

of specific human rights obligations. This is not an easy task although there are many discussions that focus on the link between growth and stability with employment, wages, and public services. There are many intervening factors that come into play between income as a means to development and improvements in well-being as the outcomes of development. The dilemma remains. Who are the human rights defenders when it comes to macroeconomic policy design and implementation? What will be the mechanism for deliberation? How will can imperfect obligations be rationalized in the policy design when the link between human rights and macroeconomics are not acknowledged or only weakly so? The complexity of decisions around financing for development and its implications often means that these decisions are left to the specialists and experts creating an exclusive technocracy whose accountability to the people is unclear. Meanwhile, citizens and civil society focus on spending on projects and activities. Economic governance becomes a rigid hierarchy of upstream policy making over downstream program or project implementation. Global economic governance becomes a confused web of unilateral macroeconomic decisions of systemically significant nations whose effect is to limit policy space or, worse, threaten the economic stability of smaller, open economies. References Balisacan, Arsenio, Sharon Piza, Dennis Mapa, Carlos Abad Santos, and Donna Odra (2010). The Philippine Economy and Poverty During the Global Economic Crisis, UPSE Discussion Paper No. 2010-08. Quezon City: UP School of Economics. Brillantes, Alex, Gilbert Llanto, and Ruperto Alonzo (2012). LGU access to official development assistance (ODA): status, issues, and concerns, PIDS Discussion Paper Series 2010-10. Makati City: Philippine Institute for Development Studies. Diokno, Benjamin (2012). Fiscal decentralization after 20 years: what have we learned? where do we go from here?, The Philippine Review of Economics 59(1): 9-26. Guinigundo, Diwa (2012). Fiscal policy, public debt management and government bond markets: the case for the Philippines, in BIS Papers No. 67 Fiscal Policy, Public Debt and Monetary Policy in Emerging Market Economies. Geneva: Bank for International Settlements.

Manasan, Rosario G. (2011). Assessment of the Impact of the Fiscal Stimulus, Fiscal Risk and Fiscal Transparency: The Philippines, in Ito, T. and F. Parulian (eds.), Assessment on the Impact of Stimulus, Fiscal Transparency and Fiscal Risk. ERIA Research Project Report 2010-01, pp.213-251. ( SMENT_OF_FISCAL_STIMULUS_philippines.pdf, accessed on 21 April 2013) Sen, Amartya (2004). Elements of a Theory of Human Rights, Philosophy and Public Affairs 32(4): 315-356. Sussangkarn, Chalongphob (2010). The Chiang Mai Initiative Multilateralization: origin, development, and outlook, ADB Working Paper Series No. 230. Tokyo: Asian Development Bank Institute. Yap, Josef, Celia M. Reyes, and Janet S. Cuenca (2009). Impact of the global financial and economic crisis on the Philippines, PIDS Discussion Paper Series No. 2009-30. Makati City: Philippine Institute for Development Studies.


Alliances of Local Governments in the Philippines

Leave a Comment Posted by Johny S. Natad on December 14, 2011 By: Johny S. Natad December 2011 Introduction Wor d!"de, a "ance b#" d"n$ or "nter% oca &artnersh"& cons"dered as strate$"c "m&ortance "n address"n$ oca $overnments' common "ss#es and &rob ems that do not res&ect &o "t"ca bo#ndar"es. ( "ance o) oca $overnment #n"ts *L+,s-, !h"ch "nterchan$eab y re)erred to as "nter% oca coo&erat"on has been &rov"n$ to be cost e))ect"ve and e))"c"ent "n the de "very o) serv"ces to "ts m# t"%sta.eho ders es&ec"a y the L+,s. /n the Ph" "&&"nes, "nter% oca coo&erat"on o) L+,s be "eved to be )orma y started a)ter the &roc amat"on o) 0e&#b "c (ct No. 1120 or the Ph" "&&"ne Loca +overnment Code o) 1331. 4any o) these a "ances are "ns&"red by 0.( 1120, !h"ch "s a so "n consonance !"th the Ph" "&&"ne Const"t#t"on. 5he L+, a "ances "n the Ph" "&&"nes co# d be cons"dered as s"$n")"cant mechan"sm "n the rea "6at"on o) &o "t"ca and adm"n"strat"ve decentra "6at"on and oca a#tonomy "n the co#ntry. 5he Ph" "&&"ne 7"sher"es Code o) 1338 *0e&#b "c (ct No. 8990- a so re:#"res "nter%L+, a "ance es&ec"a y to !ater ecosystem that traverse &o "t"ca bo#ndar"es o) many L+,s ".e or seas. ;conom"c deve o&ment, the env"ronmenta &rotect"on and mana$ement *"nc #d"n$ ecosystem, coasta reso#rce, to#r"sm and andsca&e mana$ement-, and "nte$rated hea th deve o&ment are the ma<or &#r&ose o) estab "sh"n$ amon$ many e="st"n$ a "ance o) L+,s "n the Ph" "&&"nes. Definition 5he W"."&ed"a de)"nes a "ance as >a coo&erat"on or co aborat"on, !h"ch a"ms )or a syner$y !here each &artners ho&es that the bene)"ts )rom the a "ance !" be $reater than those )rom "nd"v"d#a e))orts?. ,s#a y, the a "ance "s en$a$"n$ )or a &art"c# ar or "nde)"n"te &er"od and shared e=&enses and r"s.s "nvo v"n$ techno o$y trans)er and econom"c s&ec"a "6at"on #sed to ach"eve a common ob<ect"ve *>Strate$"c ( "ance?, n.d.-. 5he @r"$o Soc"a ;nter&r"se Partners *n.d.- &resented the )o o!"n$ descr"&t"on o) &artnersh"& and a "ance:


A partnership is an alliance between organizations from two or more sectors that commit themselves to working together to develop and implement a specific project !uch a partnership implies that participants are willing to share risks" costs and benefits" review the relationship regularl# and revise the partnership as necessar# Alliances between parties drawn for e$ample" from businesses" government and civil societ#" that strategicall# aggregate the resources and competencies of each to resolve a specific problem%challenge &artnerships across different sectors of societ# impl# transcending some of the divides between business%'()s%governments Interest from man# governments and '()s in working with business is *uite high so the partnership model has been replacing the adversarial model &artnering across sectors means that different sectors of societ# are open to communicate and collaborate with each other" fostering and creating more inclusive+participator# models for solving problems A management tool to deliver business" social and environmental development outcomes b# optimizing the effectiveness of different partners, resources core competencies 5he a "ance o) Loca +overnment ,n"ts *L+,s- have been &er)orm"n$ v"ta ro e "n contr"b#t"n$ $en#"ne and s#sta"nab e deve o&ment. W"th the estab "shment o) the a "ances, the L+,s can ach"eve the atta"nment o) & ans !"th <o"nt e))ort and shared a$reement to so ve s#ch as env"ronmenta &rob ems and e))ect"ve de "very o) &r"me serv"ces that res# ted to "n) #ence mana$ement and ach"eve better h#man sa)e$#ard or &rotect"on *(s"a 7orest Net!or., n.d.-. Alliance and Decentralization 5h"s "nter% oca coo&erat"on or a "ances o) L+,s have been contr"b#t"n$ to the "m& ementat"on o) &o "t"ca and adm"n"strat"ve decentra "6at"on o) the $overnment "n the Ph" "&&"nes. 5he 0e&#b "c (ct 1120 or the 1331 Loca +overnment Code o) the Ph" "&&"nes $enera y stresses abo#t decentra "6at"on o) &o!ers to Loca +overnment ,n"ts. Decentra "6at"on "s the >d"s&ers"on or d"str"b#t"on o) )#nct"ons and &o!ersA s&ec")"ca y the de e$at"on o) &o!er )rom a centra a#thor"ty to re$"ona and oca a#thor"t"es? *4err"am%Webster, n.d-. 5h#s, decentra "6at"on creates need )or a "ances. W"th the )ormat"on o) a "ance, the sta.eho ders can carry var"o#s o#t oo.s, have e=&er"ence and ca&ac"ty "nto a d"a o$#e and can ta.e act"on to !"de ran$e o) concerns. ( "ance "s a d"st"nct"ve strate$"c &os"t"on !here &artnersh"& and shared en$a$ement !"th & ann"n$ and "m& ementat"on a$enc"es at oca eve !h"ch d"rect them to better &os"t"on "n &o "cy recommendat"on, dec"s"on ma."n$ and can br"n$ "n)ormat"on )rom the comm#n"ty eve to the r"$ht &eo& e "n the mana$ement *(s"a 7orest Net!or., n.d-. 5he a "ances are )" "n$ the vac##m e)t by the centra $overnment "n tac. "n$ the dec "ned #& and )orest and mar"ne ecosystem and he &s )orm# ate so #t"ons that can be addressed by the oca $overnment *;nv"ronmenta Sc"ence )or Soc"a Chan$e B;SSCC, 2011-.

-#pes of Alliances and its &urpose 7ormat"on o) a "ance o) L+,s or the "nter%L+, a "ances var"ed accord"n$ to "ts ty&o o$y: *1- the nat#ra a "anceA *2- the &#b "c%&r"vate a "anceA and *D- the :#as"%&#b "c a "ance *Ph" "&&"ne Deve o&ment 7or#m, 2010-. Nat#ra a "ance "s )ormed bet!een L+,s )or e"ther a $enera or sectora b#t !"th a common &#r&ose o) $enera members !h"ch mot"vated #s#a y by the a "ance%!"de "m&act "n the de "very o) bas"c serv"ces and )ac" "t"es that s#r&ass oca &o "t"ca bo#ndar"es and enta" ed ar$e e=&end"t#re. 5h"s ty&e o) "nter%L+, a "ance reta"ns the"r &#b "c character. 5he &#b "c%&r"vate a "ances are coo&erat"ve #nderta."n$ o) or$an"6at"ons com&osed o) both &#b "c *L+,s- and &r"vate sectors ".e N+@s, b#s"ness $ro#&s, and other &r"vate ent"t"es. 5h"s a "ance "s #s#a y re$"stered !"th the Sec#r"t"es and ;=chan$e Comm"ss"on *S;C-. 5he :#as"%&#b "c a "ances are nat#ra a "ances amon$ L+,s !"th common ob<ect"ve )or &#b "c serv"ce b#t be"n$ mana$ed and contro ed as a &r"vate cor&orat"on thro#$h a se&arate e$a ent"ty. 5h"s ty&e o) a "ance "s $ranted <#r"d"ca &ersona "t"es thro#$h the con$ress"ona e$"s at"on. 5he ;SSC *2011- "dent")"ed the )o o!"n$ emer$"n$ a "ance !"th concerned on env"ronmenta and reso#rces mana$ement: ( "ance 4atar"no Bay 4ana$ement Co#nc" Locat"on ;astern Samar 7oc#s

B#" d"n$ &artnersh"&s to "m&rove reso#rce mana$ement and oca "ve "hoods S#sta"n"n$ and harmon"6"n$ oca Carood Watershed Boho $overnment "n"t"at"ves "n Carood 4ana$ement Co#nc" !atershed Lan#6a Bay S#r"$ao Stren$then"n$ env"ronmenta Deve o&ment ( "ance de S#r $overnance thro#$h oca &o "cy )orm# at"on ($#san 4arsh ($#san S#sta"nab e !atershed mana$ement Deve o&ment ( "ance de S#r as a res&onse to and and !ater &rob ems B#."dnon Watershed B#."dnon Co aborat"on "n"t"at"ves to!ards Protect"on and com&rehens"ve andsca&e Deve o&ment Co#nc" mana$ement and $reater h#man sec#r"ty ( ah Ea ey Landsca&e So#th Loca $overnment "n"t"at"ves )or Deve o&ment ( "ance Cotabato &rotected area mana$ement and S# tan F#darat La.e 4a"n"t ($#san Partnersh"& b#" d"n$ to!ards Deve o&ment ( "ance de Norte s#sta"nab e mana$ement o) La.e and 4a"n"t S#r"$ao de Norte So#rce: ;nv"ronmenta Sc"ence )or Soc"a Chan$e, *201113

5hese a "ances are an ev"dent that &eo& e are !or."n$ to$ether to dea !"th env"ronmenta "ss#es and e:#"tab e reso#rces mana$ement. 5he Ph" "&&"ne Deve o&ment 7or#m *2010- &resented the "st o) a "ances !"th "ts membersh"&, reason )or com"n$ to$ether and mode o) )orma "6at"on. ( "ance 4embersh"& 0eason )or Com"n$ 5o$ether 4ode o) 7orma "6at"on

Iloilo ( "ance )or Northern / o" o 7or Gea th Deve o&ment *(N/G;(D Northern / o" o ( "ance )or Coasta Deve o&ment *N/(CD;EBanate Bay 0eso#rce 4ana$ement Co#nc" *BB04C/4etro / o" o% +#"maras ;conom"c Deve o&ment Co#nc" *4/+;DCSo#thern / o" o Coasta 0eso#rce 4ana$ement Co#nc" *S/C04C/ o" o Second /nte$rated (rea Deve o&ment, /nc. Negros Occidental So#thern Ne$ros Coasta Deve o&ment 4ana$ement Co#nc" *SNCD4CCentra Ne$ros Co#nc" )or Coasta Deve o&ment *C;N;CC@0DNorthern Ne$ros

3 Gea th m#n"c"&a "t"es Deve o&ment

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10 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement D Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement 1 &rov"nceA 1 ;conom"c c"tyA 9 Deve o&ment m#n"c"&a "t"es 9 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement 9 ;conom"c m#n"c"&a "t"es Deve o&ment

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1 c"tyA 2 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement 1 c"tyA 2 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement 9 c"t"esA D Coasta

4@(, Jan#ary 22, 2009

4@(, 2000

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4ode o) 7orma "6at"on

(:#at"c 0eso#rces 4ana$ement and (dv"sory Co#nc" *NN(04(C@r"enta Ne$ros Sta. Bayabas /nter% Loca Gea th Hone */LGH(nt":#e L"bertad, Pnadan, Sebaste and C# as" Bay W"de 4ana$ement Co#nc" *L/P(S;C,Coasthaven

m#n"c"&a "t"es 0eso#rce 4ana$ement

1 c"tyA 2 Gea th m#n"c"&a "t"es

Per ;@ 209, 2008

4 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement

4@(, @ctober D, 1331A S;C 0e$"strat"on

4 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement 1 c"tyA 4 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement 1 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement

4@(, @ctober 19, 2001

Cebu Camotes Sea 0eso#rce 4ana$ement Co#nc" *CS04CSo#theast Ceb# Coasta 0eso#rce 4ana$ement Co#nc" *SCC04CBohol 4ar"bo<oc Bay /nte$rated 0eso#rce 4ana$ement *4B;4@(batan 0"ver Deve o&ment 4ana$ement Co#nc" *(0D4CPaDaIon Boho 4ar"ne 5r"an$ e 4ana$ement Co#nc" *P(D(I@N-

4@(, 4ay 2, 2001

4@(, (&r" 13, 2009

1 c"tyA 4 Coasta m#n"c"&a "t"es 0eso#rce 4ana$ement 9 0"ver m#n"c"&a "t"es 4ana$ement, ;coto#r"sm deve o&ment D ;nv"ronmenta m#n"c"&a "t"es Protect"on

4@(, 2009A ;@ 2D ser"es o) 2009, December 20, 2009 ;@ No. 13, November 13, 2009 4@(, J#ne 1, 2001A ;@ No 22 Ser"es o) 2004, Se&tember 1,


( "ance


0eason )or Com"n$ 5o$ether

4ode o) 7orma "6at"on

2008A S;C 0e$"strat"on, J#ne 1, 2002 1 Coasta 4@(, 2009 m#n"c"&a "t"es 0eso#rce 4ana$ement Boron$an /nter%Loca 9 /nte$rated Per ;@ 2009, Gea th Hone m#n"c"&a "t"es Gea th Serv"ces 2008 *2 0G,sindanao Lan#6a Bay 1 ;conom"c 4@(, 2004J Deve o&ment m#n"c"&a "t"es Deve o&ment ( "ance *LBD(PP(L4( ( "ance 1 ;conom"c 4@(, 2004JJ *PP(L4(m#n"c"&a "t"esA Deve o&ment 1 &rov"nce La.e 4a"n"t 2 &rov"ncesA 8 La.e 4@(, 4arch Deve o&ment m#n"c"&a "t"es 4ana$ement 1333 ( "ance *L4D(4t. F"tan$ ad 0an$e 8 ;nv"ronmenta P(4B m#n"c"&a "t"es Protect"on Camarines Sur 4etro Na$a 1 c"tyA 14 ;conom"c 4@(, (&r" 2D, Deve o&ment Co#nc" m#n"c"&a "t"es Deve o&ment 133DA ;@ No. *4NDC102, J#ne 18, 133D Part"do Deve o&ment 10 ;conom"c 0( No. 1820, (dm"n"strat"on m#n"c"&a "t"es Deve o&ment November 18, *PD(1334A 0( No. 8383, December D1, 2000 So#rce: Cr"t"ca /n$red"ents "n B#" d"n$ and S#sta"n"n$ /nter%Loca Coo&erat"on *&&.20%215he Ph" "&&"ne Deve o&ment 7or#m *2003- revea s that the "nst"t#t"ona , )"nanc"a and e$a as&ects are the cr#c"a and "nterre ated e ements o) the a "ance b#" d"n$ as man")ested "n the &#b "cat"on ent"t ed >Cr"t"ca /n$red"ents "n B#" d"n$ and S#sta"n"n$ /nter%Loca Coo&erat"on?. 5he "nst"t#t"ona as&ects ar$e y dea s !"th the &#r&ose and !"th the str#ct#res and system !h" e "nvo ves m"n"ma y "n reso#rces. Le$a as&ects essent"a y dea !"th str#ct#re, system and

Eastern Samar ( "ance o) Seven

reso#rces !h" e a so "n. !"th &#r&ose. 0eso#rces are the ma"n concern on )"nanc"a as&ects to atta"n the &#r&ose b#t a so ta.e "nto acco#nt the str#ct#re and system. .egal basis on Alliance formation 5he e$a bas"s on the )ormat"on o) a "ance can be s&ec")"ca y de)"ned "n the Ph" "&&"ne Const"t#t"on o) 1381, the Loca +overnment Code o) 1331, the Ph" "&&"ne 7"sher"es Code o) 1338, the 4emorand#m o) ($reement entered "nto by concerned L+,s, the ;=ec#t"ve @rders, and other re evant a!s. 5he 1381 Const"t#t"on o) the 0e&#b "c o) the Ph" "&&"nes (rt"c e K. Sect"on 1D states that >Loca $overnment #n"ts may $ro#& themse ves, conso "date or coord"nate the"r e))orts, serv"ces, and reso#rces )or &#r&oses common y bene)"c"a to them "n accordance !"th a!.? L".e!"se, the Loca +overnment Code o) the Ph" "&&"nes em&has"6es the $enera &rov"s"on o) oca $overnment as dec ared "n the Const"t#t"on. ,nder the Loca +overnment Code's Boo. / +enera Prov"s"ons, 5"t e @ne, (rt"c e 5hree, Sect"on DD &rov"des the Coo&erat"ve ,nderta."n$s amon$ Loca +overnment ,n"ts. .ocal government units ma#" through appropriate ordinances" group themselves" consolidate" or coordinate their efforts" services" and resources for purposes commonl# beneficial to them In support of such undertakings" the local government units involved ma#" upon approval b# the sanggunian concerned after a public hearing conducted for the purpose" contribute funds" real estate" e*uipment" and other kinds of propert# and appoint or assign personnel under such terms and conditions as ma# be agreed upon b# the participating local units through /emoranda of Agreement W"th the <o"nt #nderta."n$s o) the "nter%L+, a "ance, the bas"c e$a "nstr#ment #sed to "n"t"ate s#ch "s the 4emorand#m o) ($reement *4@(-. ;ncarta D"ct"onary de)"nes a >memorand#m? *n.d- as >s#mmary o) e$a a$reement: a !r"tten statement s#mmar"6"n$ the terms o) a contract or a s"m" ar e$a transact"on?. /t serves as the )orma a$reement amon$ "nvo v"n$ L+,s and b"nds them to adhere the coo&erat"ve #nderta."n$s o) the a "ance. 5he 4@( &rov"des )or the a$reed ro es and res&ons"b" "t"es and the deta" s on the )oc#s &ro$rams o) the a "ance. @sor"o *2010- de)"ned 4@( as >the bas"c e$a "nstr#ment #sed to "n"t"ate an "nter% L+, a "ance. 5he 4@( serves as the )orma a$reement "nvo v"n$ 2 or more L+,s !hereby each become ob "$ated to the other !"th rec"&roca r"$hts to demand o) !hat "s &rom"sed by each res&ect"ve y. 5he 4@( b"nds the L+,s to adhere to the a "ance's coo&erat"ve #nderta."n$s. 5o )orma y or$an"6e an a "ance. Loca Ch"e) ;=ec#t"ves *LC;s- o) &art"c"&at"n$ L+,s are re:#"red to s"$n a 4@(? *&.24Based on the 4emorand#m o) ($reement *1333- o) La.e 4a"n"t Deve o&ment ( "ance *L4D(- s"$ned and entered "nto by 2 &rov"nc"a L+,s o) S#r"$ao de Norte and ($#san de Norte, 8 m#n"c"&a L+,s *to!n o) ( e$r"a, 4a"n"t, 5#bod and S"son "n S#r"$ao de Norte, and m#n"c"&a "t"es o) F"tcharao, Jabon$a, Sant"a$o and 5#bay "n ($#san de Norte- and $overnment "ne a$enc"es *e.$. N;D(, D(, D;N0, B7(0, D@5, P/(- o) La.e 4a"n"t Deve o&ment ( "ance "n 4arch 1333 dec ares the *1- )ormat"on o) the a "ance, *2- &#r&ose, *D- bene)"ts to the L+,s, *4- L4D( board, *9- Pro<ect 4ana$ement @))"ce, *2- res&ons"b" "t"es o) the &art"es, *1tr#st )#nd, *8- trans"tory &rov"s"ons, *3- amendments, *10- e))ect"v"ty.


( 4@( )orma y creat"n$ the 4etro Na$a Deve o&ment Co#nc" *4NDC- !as s"$ned by the 1D L+,s L Na$a, Bombon, Ca aban$a, Cama "$an, Canaman, +a"n6a, 4a$arao, 4" aor, 4"na abac, Pam& ona, Pasacao, P" " and San 7ernando on (&r" 2D, 133D. 5he m#n"c"&a "t"es o) B# a and @cam&o <o"ned the 4NDC thro#$h a 4@( !"th the then e="st"n$ members o) the Co#nc" "n J# y 1331. 5he LC;s o) the 19 member%L+,s com&r"se the Co#nc" 's ;=ec#t"ve Comm"ttee. /n char$e o) the adm"n"strat"ve o&erat"ons o) the Co#nc" "s "ts Pro<ect Deve o&ment ,n"t *PD,- headed by the 4NDC ;=ec#t"ve D"rector. 5he #n"t "s ".e!"se &r"mar" y res&ons"b e )or the "m& ementat"on o) the Co#nc" 's &ro$rams, &ro<ects and act"v"t"es *Sacendonc" o, 2001-. P"$ca!ayan%( amada%L"b#n$an%4"dsaya&%( eosan ( "ance &o&# ar y .no!n as P(L4( !as )orma "6e the estab "shment o) the ( "ance on (#$#st 01, 2000 d#r"n$ the s"$n"n$ o) a 4emorand#m o) ($reement *4@(- !as s"$ned by and bet!een the )"ve m#n"c"&a $overnments o) P(L4( and the Prov"nc"a +overnment o) Cotabato *P(L4( ( "ance, n.d.-. (s "ns&"red by P(L4(, the So#th!estern L"$a!asan ( "ance o) 4#n"c"&a "t"es or SL(4 !as o))"c"a y created on J#ne 29th, 2008. ( 4@( !as s"$ned bet!een the )o#r m#n"c"&a "t"es o) 4a$#"ndanao name y Pa$ at, Dat# Pa$ as, S# tan sa Baron$"s and +enera S.F. Pendat#n comm"tt"n$ to the"r &art"c"&at"on "n SL(4 and de)"n"n$ ro es and res&ons"b" "t"es. *So#th!estern L"$a!asan ( "ance o) 4#n"c"&a "t"es *SL(4-, n.d./ ana Bay 0e$"ona ( "ance "n 0e$"on 3 */B0(%3- com&osed o) 8 L+,s s"$ned a ne! 4emorand#m o) ($reement *4@(- ast December 1D, s"$n")y"n$ the"r rene!ed comm"tment to &rotect the / ana Bay. 4ayors o) 5#.#ran, 5ab"na, D"nas, Laban$an, 5#n$a!an, D"mata "n$ and San Pab oA and the c"ty o) Pa$ad"an and the &rov"nc"a $overnor o) Hamboan$a de S#r s"$ned the 4@(. *>( "ance o) L+,s?, n.d.(s"de )rom 4@(, there are other e$a "nstr#ments #sed "n the )ormat"on o) a "ance ".e ;=ec#t"ve @rders *;@-, S&ec"a @rder, 4emorand#m @rder and the 0e&#b "c (cts. Some L+, a "ance have been created or s#&&orted by ;=ec#t"ve @rders s"$ned by the Pres"dent or by the Prov"nc"a +overnor *+5H, 2003-. Based on the Ph" "&&"ne Const"t#t"on, the Pres"dent can create co#nc" s or other s"m" ar bod"es as stated "n (rt"c e K Sect"on1D. -he &resident shall provide for the regional development council or other similar bodies composed on local government officials" regional heads of departments and other government offices" and representatives form non0governmental organizations within the regions for purposes of administrative decentralization to strengthen the autonom# of the units therein and to accelerate the economic and social growth and development of the units in the region 5he 4NDC estab "shment !as )#rther bo stered by the ;=ec#t"ve @rder *;@- No. 102 "ss#ed on J#ne 18, 133D &rov"d"n$ )or "ts &o!ers and )#nct"ons, and an "n"t"a b#d$et )or "ts o&erat"n$ e=&enses. *Sacendonc" o, 2001-. 5he ;@ added re&resentat"ves )rom "ne a$enc"es !"th o))"ces "n Camar"nes S#r and &e$$ed at 29M *one%)o#rth- the re&resentat"on o) the &r"vate sector *4etro Na$a Deve o&ment Co#nc" , n.d.-. ;=ec#t"ve @rder 993 *2002- created the 4etro%/ o" o +#"maras ;conom"c Deve o&ment Co#nc" or 4/+;DC com&osed o) 8 L+,s ".e / o" o C"ty, 4#n"c"&a "t"es o) @ton, San 4"$#e , Pav"a, Le$anes, and Sta. Barbara, and the &rov"nces o) / "o" o and +#"maras. 5he B#."dnon Watershed Protect"on and Deve o&ment Co#nc" *BWPDC- !as created thro#$h 4emorand#m @rder 210. 5he Co#nc" "s mandated to $enerate &o "c"es and $#"de "nes

and coord"nated a &ro$rams and &ro<ects concern"n$ !atershed mana$ement "n the ent"re &rov"nce *Pas"co an, P#a o and Pas"co an, S"m& "c"a, 2009-. 5he BWPDC "s com&osed o) a mayors, D;N0, D(, D(0, N(P@C@0, N/(, academ"c and research "nst"t#t"ons, N+@s, P@s, and re "$"o#s and b#s"ness sectors. *5he B#."dnon ;=&er"ence, n.d.( "ance o) L+,s can a so be created thro#$h an or$an"c act o) the Con$ress st"&# at"n$ deta" ed &o!ers and res&ons"b" "t"es and &rov"d"n$ the necessary )#nds #nder the +enera (&&ro&r"at"on (ct *@sor"o, 2010-. 5he &o&# ar a "ance o) L+, !"th the (ct o) Con$ress "s the La.e La$#na Deve o&ment (#thor"ty *LLD(- and the Part"do Deve o&ment (dm"n"strat"on *PD(-. LLD( !as estab "shed #nder 0e&#b "c (ct No. 4890 or (n (ct Creat"n$ the La$#na La.e Deve o&ment (#thor"ty "n J# y 18, 1322 as amended by Pres"dent"a Decree No. 81D @ctober 11, 1319. 5he LLD( member L+,s covers 14 c"t"es and 41 m#n"c"&a "t"es !"th"n the &rov"nces o) La$#na, 0"6a , Batan$as, Cav"te, N#e6on and 4etro 4an" a *LLD(, 2001-. 5he 0( 1820 created the PD( "n 1334 !"th the member o) 10 m#n"c"&a "t"es "n Camar"nes S#r rat"ona "6es the "nte$rated and coord"nated a&&roach )or the deve o&ment o) the cover"n$ re$"ons and d"str"cts "n order to dra! a on$s"de !"th deve o& re$"ons and d"str"cts !"th"n o) Camar"nes S#r *@sor"o, 2010-. 0e&#b "c (ct No. 8990 or the Ph" "&&"ne 7"sher"es Code o) 1338 &rov"des the deve o&ment and conservat"on o) the )"shes and a:#at"c reso#rces. (rt"c e 1, Sect"on 12 o) the sa"d (ct states that: -he management of the contiguous fish# resources such as ba#s which straddle several municipalities" cities or provinces" shall be done in an integrated manner" and shall not be based on political subdivisions of municipal waters in order to facilitate the management of a single resource s#stem -he .(1s which share or boarder such resources ma# group themselves and coordinate with each other to achieve the objectives of integrated fisher# resources management -he Integrated 2isheries and A*uatic 3esources /anagement 4ouncils 5I2A3/4s6 established under !ection78 of this 4ode shall serve the venue for close collaboration among .(1s in the management of contiguous resources W"th 0( 8990 as the bas"s, "nter%L+, "s a .ey to s#sta"n "nte$rated )"shery reso#rces. 7"ve ad<o"n"n$ m#n"c"&a "t"es o) G"ndan$, G" on$os, Baybay, Bato and 4ata om "n Western Leyte a$reed to )orm a "ance thro#$h /7(04C !h"ch !as man")ested by s"$n"n$ o) 4@( amon$ Loca Ch"e) ;=ec#t"ves *LC;s- "n (&r" 2002. 5h"s a "ance a"med to an "nte$rated mana$ement o) a common )"shery $ro#nd #sed by the ma<or"ty o) )"sh)o . "n Western Leyte, Camotes Sea *Savar"s, 2004-. / ana Bay 0e$"ona ( "ance "n 0e$"on 3 */B0(%3- com&osed o) 8 L+,s s"$ned a ne! 4emorand#m o) ($reement *4@(- ast December 1D, s"$n")y"n$ the"r rene!ed comm"tment to &rotect the / ana Bay. 4ayors o) 5#.#ran, 5ab"na, D"nas, Laban$an, 5#n$a!an, D"mata "n$ and San Pab oA and the c"ty o) Pa$ad"an and the &rov"nc"a $overnor o) Hamboan$a de S#r s"$ned the 4@( *>( "ance o) L+,s?, n.d.-. /n the s#ccess)# o&erat"on o) an a "ance, )"nanc"a stab" "ty and s#sta"nab" "ty "s a very cr"t"ca concern. 5h#s, the a "ance m#st have the ab" "ty to $enerate )#nds essent"a y re:#"red to &er)orm "ts res&ons"b" "ty and "m& ement the &ro<ects o) the a "ance. 5he member L+, var"es on the"r ann#a contr"b#t"on to the a "ance. 5hey may a$ree to contr"b#te an ann#a m"n"m#m

amo#nt. Some a so a$ree to contr"b#te certa"n &ercent o) the"r 20M /nterna 0even#e ( ocat"on */0(-. 5he 4@( entered "nto by member L+,s st"&# ated &rov"s"ons &erta"n"n$ to )"nanc"a ob "$at"on o) the members to the a "ance *7errer, 2010-. 5he 4NDC 4emorand#m o) ($reement, (&r" 2D, 133D s&ec")y that the so#rce o) )"nanc"n$ the Co#nc" &ro$ram sha be so#rced )rom the contr"b#t"ons o) the members e:#"va ent to at east 2M o) the"r ann#a ;conom"c Deve o&ment 7#nd *Sacendonc" o, 2001-. 4emorand#m o) ($reement s"$ned by members o) L4D( st"&# ate the 5r#st 7#nd &rov"s"on !h"ch states that: -he two provinces to this /)A shall initiall# contribute &hp190"000 00 each while the different municipalities shall contribute the amount of &hp90"000 00 each to the trust fund All subse*uent contributions of the .(1s are based on the approved work and financial plan and all monies sourced b# the alliance shall likewise form part of the trust fund (s a so st"&# ated "n 4@(, each mayor a$reed to "n"t"a y &rov"de a month y contr"b#t"on o) Ph&19,000.00 to a common SL(4 )#nd. When the a "ance act"v"t"es be$an to sho! #&, the contr"b#t"on ater ra"sed to Ph&29,000.00. S#ch )#nd !" be #sed to shore #& the deve o&ment &ro<ects o) the a "ance and "ts Pro<ect 4ana$ement @))"ce o&erat"ons *SL(4, n.d.5he 0( 4890 *1322- c ear y s&ec")y that the LLD('s o&erat"n$ e=&enses !"th the s#m o) @ne 4" "on Pesos *Ph&1,000,000- "s a&&ro&r"ated ann#a y )or r"ve *9- years )rom the $enera )#nd o) the Nat"ona +overnment. 4ommon Issues and &roblem in Alliance )peration 5he (s"a 7orest Net!or. *n.d.- cited the h"nder"n$ )eat#re o) !ea. a "ance, !h"ch are the d"))"c# t"es "n sec#r"n$ comm"tmentA ac. "n )#nd"n$, h#man reso#rces and techn"ca .no! ed$eA o! eve o) "nvo vement )rom oca $overnment &ersonne d#e to "tt e ) e="b" "tyA con) "ct"n$ a!s or d"))erent "nter&retat"on o) "ss#esA need )or oca cham&"onsA and :#andar"es over e$a "dent"ty and str#ct#re. LLD( *2001- "s st" )aced !"th "nst"t#t"ona , techn"ca and )"nanc"a h"ndrances that !" ta.e more than &ers#as"on to reso ve des&"te the $ro!"n$ &artnersh"&. /t "s remar.ab e that the common )#nd $enerated )rom member L+, o) ( "ance are not eno#$h to ens#re s"$n")"cant "m&act $"ven the )act that a "ance need to s#sta"n "ts h"red &ersonne . 5here "s very "tt e b#d$et or no amo#nt "s e)t to )"nance the s"$n")"cant &ro<ect or serv"ces o) the a "ance. 5h#s, there "s a need )or the a "ance to access $rants and other )orms o) s#&&orts to a#$ment the contr"b#t"on o) the members. Poss"b e so#rces o) $rants and s#&&orts are the &rov"nc"a and nat"ona $overnment, nat"ona "ne a$enc"es, $rants )rom a!ma.ers, "nternat"ona )#nd"n$ a$ency and $rants )rom )o#ndat"ons, N+@s and &r"vate sector *7errer, 2010-. 5he e=&er"ence o) a "ances sho!s that the $enero#s and most comm"tted members )"nanc"a y s#sta"n the a "ance. 5he member L+,s may rem"t the !ho e amo#nt at one t"me or ma.e "nsta ment &ayments #nt" the !ho e amo#nt "s &a"d. ,n)ort#nate y, there are common e=&er"ences o) e="st"n$ a "ances sho!"n$ the de ays or no rem"ttance o) contr"b#t"on *7errer, 2010-. 4ember L+, contr"b#t"ons are not eno#$h to s#sta"n the o&erat"on o) the a "ance s"nce there are L+,s !ho d"d not contr"b#ted re$# ar y. Chan$es "n L+, d"rect"on o) &r"or"t"es m"$ht ham&er the o&erat"on o) a "ance es&ec"a y !hen ne! y e ected Loca Ch"e) ;=ec#t"ves *LC;s20

set the"r ma"n a$enda and concerns to the"r res&ect"ve L+,s that may or may not com& ement the overa ach"evement o) the a "ance. 4od")"cat"on o) ne! LC;s &r"or"t"es may create )ear "n the cont"n#"ty o) the "m& ementat"on o) the "dent")"ed &ro<ects *+"dacan O Gart"n$, 2008-. ( c ear statement re$ard"n$ the sched# e o) rem"ttance o) contr"b#t"on to be "ncor&orated "n 4@( or other e$a "nstr#ments "s o) s"$n")"cant. 5here are on y )e! a "ances that c ear y de)"ne the sched# e o) &ayment "n 4@(. 0em"nders are very "m&ortant thro#$h o))"c"a !r"tten not"ce o) &ayments or verba rem"nders. /n most a "ance, &eer &ress#re "s cons"dered s#ccess)# strate$y !here"n members can ma.e &rom&t &ayments ") other members d"d "t *7errer, 2010-. !ustaining Alliance: -he &ooling of 3esources and its Impact /n s&"te o) th"s &rob ems enco#ntered, the a "ance cont"n#a y de "vered the"r mandate thro#$h net!or."n$ and access"n$ o) )#nds *+"dacan O Gart"n$, 2008-. 5he &oo ed )#nd can a so be #sed by a "ance as evera$e "n access"n$ e=terna )#nd and s#&&orts es&ec"a y as )orm &art o) "ts co#nter&art. (s"de )rom the Common 7#nd, the 4NDC &ract"ces reso#rce com& ementat"on and ma"nta"ns a Common 7#nd that "s )rom "nd"v"d#a contr"b#t"ons o) the member%L+,s, and other so#rces accessed )rom the a&&ro&r"at"on )rom the nat"ona $overnment and ass"stance e=tended by oca and )ore"$n donors. 4NDC a so &oo h#man reso#rces. ( Pro<ect Deve o&ment ,n"t that "s com&osed o) 9 "nd"v"d#a s L 2 Pro<ect deve o&ment o))"cersA 1 (dm"n"strat"ve and 7"nance @))"cer and 2 S#&&ort &ersonne Pthat mana$es the o&erat"on o) the Co#nc" . @))"cersQem& oyees o) member L+,s are at t"mes ass"$ned to ass"st the members o) th"s #n"t "n the "m& ementat"on o) the 4NDC's &ro$rams and act"v"t"es. 5he Co#nc" a so ma"nta"ns an o))"ce at Na$a C"ty and ma"nta"ns an ;:#"&ment Poo to )ac" "tate the #se o) e:#"&ment and mach"nery o) "ts member% L+,s. *Sacendonc" o, 2001Shar"n$ and &oo "n$ o) )#nd and h#man reso#rces "s s"$n")"cant "n L4D('s o&erat"on. 4embers the t!o &rov"nc"a and 8 m#n"c"&a L+,s a))orded to a ocate the"r mea$er ann#a b#d$et )or the o&erat"ona "6at"on o) a "ance. ;ach L+, and member sta.eho ders de e$ated one techn"ca sta)) to become a member o) the L4D(% 5echn"ca Wor."n$ +ro#&. *+"dacan O Gart"n$, 20085he shared )#nd and the re$# ar &ayment o) contr"b#t"on by member L+,s !" ens#re t"me y "m& ementat"on o) act"v"t"es !h"ch &romotes ach"evements o) a "ance $oa . L".e!"se the &oo ed )#nd can a so be #sed by a "ance as evera$e "n access"n$ e=terna )#nd and s#&&orts es&ec"a y as )orm &art o) "ts co#nter&art *7errer, 2010-. Poo "n$ o) reso#rces "s so s"$n")"cant "n P(L4(. ( eosan to!n 4ayor Cabaya, !ho once !as cha"r o) P(L4(, &ro#d y #&dated the (044 mayors abo#t the P(L4( accom& "shment o) on constr#ct"on o) 281.49 ." ometers )arm to roads !"th a tota cost o) P8.41 m" "on, thro#$h the"r &oo ed e))orts. W"th P(L4(s shared e=&er"ence, 4ayors o) SL(4 earned that th"s strate$y !as a so be"n$ a&& "ed to &#rs#e s"m" ar deve o&ment &ro$ram concern"n$ env"ronmenta &rotect"on and hea th *SL(4, n.d.-. 5he comb"ned reso#rces and &#tt"n$ #& on the"r o!n road%b#" d"n$ cre!, P(L4( "s c#rrent y ma"nta"ns t!o constr#ct"on ) eets, each cons"st"n$ o) a b# do6er, a $rader, three to )o#r d#m& tr#c.s and a com&acter. 5he a "ance has o&ened and re&a"red o) ) roads that $"ve bene)"ts to the"r 149 baran$ays. /t he &s "ncreased )arm"n$ "ncomes and red#ced


trans&ortat"on costs. 5h"s made P(L4( !on as one o) the +a "n$ Poo. "n 2001 )or "nnovat"ve $overnance &ract"ces *Contreras, 2008L".e!"se the &oo "n$ o) reso#rces "n t!o &rov"nces o) So#th Cotabato and S# tant F#darat no! )orm"n$ the ( ah Ea ey Landsca&e Deve o&ment ( "ance *(ELD(- has a so $arnered +a "n$ Poo. (!ard )or 2008. W"th the m# t" sectora coo&erat"on amon$ 13 Baran$ays, 1 ban."n$ "nst"t#t"on, 2 !ater d"str"cts, 2 e ectr"c coo&erat"ves, 2 m"n"n$ com&an"es, 1 a$ro% "nd#str"a com&any, 4 a$r"c# t#ra coo&erat"ves, 4 N+@s and 2 c"v"c $ro#&s the 0"&ar"an Hone 0eve$etat"on &ro$ram has ab e to accom& "shed & ant"n$ o) 19,000 bamboo h" s "n a D0% ." ometer stretch at the ban.s o) ma<or r"vers. >5he (ELD( a so &#rs#ed the constr#ct"on o) d".es at cr"t"ca sect"ons o) the r"vers and the re%channe "n$ o) !ater ) o! to save &r"me ands, sett ements and "n)rastr#ct#re )ac" "t"es. @ther &ro<ects "nc #de the 0e)orestat"on and ,&stream 0eso#rce 4ana$ement *0,04- &ro$ram !h"ch a"med to "m&rove )orest and cover, red#ce r"ver s" tat"on and &rov"de "ve "hood o&&ort#n"t"es to #& and d!e ers? *( ah Ea ey, n.d.-. Prov"nces o) S# tan F#darat and So#th Cotabato sho!ed ho! the "nvo vement o) the"r d"))erent L+,s concern"n$ "ve "hood and s#sta"n"n$ ma<or env"ronmenta tas. !or."n$ to$ether !"th "nter% $overnment and other m# t"%sector *4"ndane!s, 2003/n /B0(%1D, the $a"ns )rom co ect"ve e))orts o) "nter re$"ona bay%!"de co aborat"on )or reso#rce mana$ement and )"shery a! en)orcement has been s"$n")"cant y man")ested. >/nter% L+, coo&erat"on has been he &"n$ sett e d"))erences bet!een m#n"c"&a "t"es, s&ec")"ca y "n )ac" "tat"n$ d"a o$#es on coasta term"na &o"nts *C5Ps- !h"ch determ"ne m#n"c"&a !ater bo#ndar"es, a content"o#s "ss#e amon$ ad<o"n"n$ to!ns. /n 2009, a tota o) 23 a&&rehens"ons !ere re&orted by the 4ar"t"me Po "ce, !"th v"o at"ons ran$"n$ )rom )"sh"n$ "n m#n"c"&a !aters !"th no &erm"ts to the #se o) " e$a )"sh"n$ methods.? *>Concerted e))ort? &ar.12-. /nter% oca $overnment co aborat"ve a&&roach has bro#$ht abo#t mean"n$)# deve o&ment "n the northern &art o) / o" o es&ec"a y on the areas o) hea th and coasta reso#rce mana$ement. >5hese a "ances s#bse:#ent y attracted the "nterest o) )#nd"n$ a$enc"es that have )o#nd va #e "n s#&&ort"n$ deve o&ment "n"t"at"ves #nderta.en by a "ed oca $overnment #n"ts. 5h"s syner$"st"c moda "ty "m& "es $reater ass#rance o) s#ccess, )#nd mana$ement e))"c"ency, and a so a $reater n#mber o) &eo& e bene)"t"n$ )rom the "n"t"at"ves?. *Lato6a, 2010, &ar. 9-. LLD( *2001- )"nd that the bene)"ts ach"eved )rom the &artnersh"& over) o! to the 1D m" "on res"dents "v"n$ "n the La$#na de Bay !atershed. Insights (ained Based on the above%re ated "terat#re, the )o o!"n$ are the "ns"$hts $a"ned abo#t the "nter%L+, a "ance "n the Ph" "&&"nes: 5he a "ance b#" d"n$ or "nter% oca coo&erat"on a o!s oca $overnment #n"ts to dea !"th env"ronmenta mana$ement and soc"o%econom"c a$enda not covered by nat"ona $overnment &ro$rams as &art o) the decentra "6at"on. 0eso#rces can be ma="m"6ed and a#$mented to share o#t !"th reso#rces and ecosystems those cross%&o "t"ca or adm"n"strat"ve bo#ndar"es. ( "ances a so a o! the oca $overnment #n"ts to ra"se and "m&rove &r"or"t"es and & ans to h"$her & ann"n$ a#thor"t"es *".e. &rov"nc"a , re$"ona and nat"ona $overnment22

5he a "ance &erm"t the or$an"6at"on o) L+,s and the"r LC;s based on a common ca#se, *e.$. $eo$ra&h"ca &ro="m"ty, common needs, s"m" ar &ass"on, s"m" ar &rob ems, has borne very $ood res# ts-. ( "ance served as the ven#e )or Loca Ch"e) ;=ec#t"ves *LC;ss#&&ort each other, share% earn"n$ e=&er"ences "n "n)orma meet"n$s, com& ement each other's stren$ths, and e=ert a &ress#re on other LC;s and comm#n"t"es to &art"c"&ate "n s"m" ar re)orms. @ther or$an"6at"ons have bene)"ted )rom b#" d"n$ a "ances "n the "m& ementat"on o) the"r &ro$rams. ( "ances have been demonstrat"n$ to be cost%e))ect"ve to sca e #& &ro$rams.