PEOPLE EMPOWERMENT: MAKING DEVOLUTION WORK

*
by Edel C. Guiza and Mary Ann Z. Fernandez

Governor Roberto Pagdanganan of Bulacan, Mayor Jesse Robredo of Naga

City and Mayor Edward Hagedorn of Puerto Princesa City were political neophytes

when they started their political careers as local chief executives. Representing a

new breed of political leaders, they have shown that people-centered development

is a reality. Through their leadership, they have inspired unprecedented

partnerships among and between government, non-government organizations and

business in their respective communities.

Bulacan, Naga City, and Puerto Princesa City are living examples of

communities which have transformed themselves. They have been recognized,

nationally and internationally, to showcase best practices in attaining sustainable

growth and equity at the local level. The three local executives have won their re-

election bids, clearly demonstrating to the rest of the Philippine society that good

performance makes good politics.

Their experiences should be appreciated in the context of the Local

Government Code of 1991, a landmark legislation on devolution. It provided the

enabling environment that allowed their innovations to flourish. Local governments

were made responsible for the delivery of health, social services, environment,

agricultural, public works, education and tourism; and, the enforcement of certain

regulatory powers such as reclassification of agricultural lands, environmental laws,

and inspection of food products and quarantine, among others. The Code also

*
Prof. Guiza and Ms. Fernandez are the theme leader and rapporteur, respectively, for the working
group stream on Innovations in Local Government - The Philippine Experience at the International
Conference on Governance Innovations held on October 20-23, 1993, at the Shangri-La’s EDSA
Plaza Hotel, Manila, Philippines. Prof. Guiza is a member of the faculty at the Asian Institute of
increased the financial resources available to local government units by (1)

broadening their taxing powers; (2) providing them with a specific share from the

national wealth exploited in their area, e.g., mining, fishery and forestry charges; and

(3) increasing their share from the national taxes, i.e., internal revenue allotments

(IRA) from a previously low of 11% to as much as 40%. The governmental and

corporate powers of LGUs were also enhanced by granting them full autonomy in the

exercise of proprietary rights, enter into loans with other LGUs, enter into build-

operate-transfer (B-O-T) arrangements, joint ventures with the private sector and

even float bonds. More significant, the Code laid the legal infrastructure for the

participation of non-government organizations (NGOs) and people’s organizations

(POs) in the process of governance as it mandated their participation in the local

development council, the local health board, and the local school board. (Brillantes

1996:4)

This paper has two (2) objectives: to highlight “best practices” or significant

local governance innovations in the three communities, and, to draw out the

important lessons from these experiences.

The Productivity Improvement Program (PIP) of Naga City

In June 1988, when Mayor Robredo took over the administration of Naga

City, he inherited a coffer that was almost empty, an image that was very bad and

city hall officials and employees who were demoralized because of the patronage

system in promotions. Naga used to be a first class city by virtue of the income it

had previously generated but in 1988, its status was downgraded to third class.

Responding to the situation, the mayor immediately set into motion a

program aimed at boosting productivity initially anchored on the call Kauswagan para

Management and the Program Director of the Galing Pook Awards. Ms. Fernandez is Assistant
2
sa Naga, kun bako ngonian nuarin pa? ( roughly translated: Progress for Naga; if not

now, when?).

The Productivity Improvement Program was anchored on the philosophy that

people can change in an environment where there is trust, where outstanding

performance is recognized and rewarded, where merit and fitness are the

governing principles, and where the leader leads by example. This meant that, to

cite one example, Mayor Robredo and his management committee meet promptly at

7:00 a.m., rain or shine, for their weekly meetings to set a good precedent for the

other government employees to follow.

Mayor Robredo first addressed the morale and poor working conditions of

the employees. These “confidence building measures” included the immediate

payment of withheld benefits such as Christmas bonus and increases in the salaries

and allowances. Then came a series of initiatives to professionalize the local

bureaucracy through the activation of a Merit and Promotions Board with workers’

representation; and the installation of personnel systems such as examinations as

basis for promotions and placements, awards and recognition for outstanding

performance and sanctions against erring employees. A capability building and value

formation program was also implemented for city hall employees. These included

trainings and seminars on productivity, action planning, 5S, time management,

among others.

The other core components of PIP are the following: a contract of

“deliverables” where all departments posted a list of front-line services with the

persons accountable and the minimum time needed to complete each task;

semestral feedback from the public on the quality of front-line service delivery

implemented; semestral feedback as well from the employees on how the PIP

3
Commissioner of the Philippine Civil Service Commission.
affects their working life; productivity improvement circles which were tasked to

evaluate current working conditions and suggest improvements thereon; weekly

management committee meetings to review performance and resolve current

problems and concerns. The very innovative person (VIP) award was introduced to

recognize the employees who submitted outstanding suggestions, e.g., a pharmacist

who developed a formula for the acquisition of medicines which resulted in an annual

savings of P1.5 million (US $57,000), and a clerk who consolidated into a single

page form several travel itinerary forms which resulted in annual savings of at least

P50,000 (US $1,900).

All these “confidence building measures” and efforts to professionalize and

empower the bureaucracy dramatically improved front-line services delivery. These

were immediately shown in the following services: business licenses and permits,

garbage collection, emergency rescue, health, real property tax collection. A

‘culture of excellence’ evolved in the Naga City Hall and there was pride in being

identified as an employee of the Naga City Government.

The impact on the community was even more dramatic. It restored the

community’s confidence in the city government. The city’s annual revenue increased

from P19 million (US $722,000) in 1987 to P160 million (US $6 million ) in 1994 and

this enabled the city to regain its first class status. The various sectors of the

community became actively involved in various government services. For example,

fourteen (14) amateur radio groups provide the communication backbone for the

emergency and rescue operations. The Camarines Medical Society trains

paramedic volunteers. The Naga River Revival Project has elicited a lot of

community volunteers. More important, the economy of Naga was also jump-

started.

4
 Since 1991, Naga City has been a recipient of a total of 25 awards and

recognitions for various accomplishments. The latest is an international award for its

housing program. Among its employees, one is a consistent awardee of the region

as best treasurer and two are recipients of Presidential awards, the highest

category among awards given to government employees. Naga City is also taking

the lead in sharing its successful experiences to its adjacent municipalities.

Naga City will have a new mayor in 1998, by which time Mayor Robredo

would have completed his third term, the maximum allowed in the Local Government

Code. The systems that he has put in place will be difficult for the next mayor to

undo. It will be the civil servants who will ensure that these will continue. The

community’s continuing demand for and expectations of good and honest

governance, which has been demonstrated and made real in the administration of

Mayor Robredo, should also ensure that there should be no backsliding. Mayor

Robredo says that “more than just the physical infrastructures,” which are the usual

indicators applied to assess the performance of politicians, “he has built the social

institutions that will build the physical infrastructures needed in the future”.

Energizing the Local Economy Through Cooperatives

The Kaunlaran sa Pagkakaisa (or Unity for Progress) Program (PKP) was

the centerpiece strategy for economic development program adopted by Governor

1
Pagdanganan when he assumed the governorship of Bulacan in 1986 . At that

time, the poverty incidence in the province was 21%, employment rate was almost

16%, investment amounted to only P90 million (US $3.4 million), average monthly

5
family income was P3,437 (US $131), infant mortality and malnutrition rates were

high, and, insurgency was a serious problem.

Governor Pagdanganan knew that he could not solve these problems by

himself. He held dialogues with all the sectors of the community: farmers, fisherman,

small entrepreneurs, skilled workers, backyard livestock producers and upland

farmers. They worked together and came up with a vision for the province which

included the following, among others: “...a strong middle class,... where all sectors of

society ... and those in government work together as one, towards building a society

that is prosperous, progressive, self-reliant and truly free.”

The PKP had the following objectives: mobilize savings and generate capital

for entrepreneurial activities; educate people on the values of credit worthiness, thrift

and community involvement; to develop cooperatives as mechanisms for achieving

self-reliant and economically progressive rural communities; to develop local

leadership; and, to assist in the establishment of small to medium scale projects.

With a firm resolve to develop the cooperatives, the province initiated policies

which were favorable to the growth of cooperatives. A capability and accreditation

program for organizers and trainors was developed and implemented. National

agencies, particularly financial institutions were tapped to support and to link them

with the Bulacan cooperatives. A Provincial Cooperative and Entrepreneurial

Development Office, directly under the Governor, was made responsible for all these

initiatives. In the early stages of the program, the governor himself was the strongest

advocate of cooperativism. He himself had to become a member of several

cooperatives and he had to convince his friends and relatives to provide initial capital

to these cooperatives.

6
 In 1996, ten years after the program was launched, PKP produced

significant results: 940 registered cooperatives from only 52 in 1986; P1.9 billion

(US$ 72.2 million) in assets from only P50 million (US$ 1.9 million); P608 million

(US$ 23.1 million) in savings and time deposits; P9 billion ($US 342.2 million) in

loans granted to micro, small and medium enterprises; 584,060 members benefited

or one-third of the population of Bulacan; 116,802 families directly benefited;

P34,000 (US$ 1,293) average additional annual income per cooperative-family. It is

significant to note that two-thirds of all the families in the province are cooperative

members.

Bulacan is now one of the most progressive provinces in the Philippines. In

1996, the poverty incidence decreased to 17%, the lowest among first class

provinces; the unemployment rate was only 6%, compared to the national

unemployment rate of 7.5 % (in July 1996); investments generation reached P7.4

billion (US$ 281 million); average monthly family income increased to P9,533 (US$

362) compared to the national average of P3, 566 (US$ 136); malnutrition and infant

mortality rates decreased from 12.5% and 9.3% to 5.1% and 9.3% respectively; and

crime rate was reduced from 11 to 7 per 100,000 population.

The cooperatives of Bulacan have set bigger objectives for themselves.

They will continue to energize the local economy as they implement a long-term plan

to put up housing and transportation projects; establish food processing zones; tie-

up with the Bulacan State University and other technical schools to improve

productivity; and, consolidate and merge small cooperatives in all the barangays.

Community Involvement and Discipline for a Sustainable City

7
 2
Mayor Hagedorn took over as mayor of Puerto Princesa City in 1992 from

a predecessor who had been in power for the past 27 years. The majority of the city

legislative development council members belonged to the opposition. Only four out

of 66 barangay (village) leaders supported the mayor. He sought the support of

these political leaders and promised that his administration will make a significant

difference in the lives of Puerto Princesans. He also got the support of the church,

the NGOs, the socio-civic organizations and the business sector.

Among the many problems that need to be addressed, Mayor Hagedorn

was most concerned with the degradation of the natural resources. Illegal logging

had reduced the forest cover from 75 % in 1976 to 50% in 1992. About 28 tons of

fish were dynamited each year. About 33 hectares of coral reefs were destroyed

every year. Rare tropical fish were being shipped abroad. The irony of it all was that

fishermen and farmers, and the people in the hire of big-time poachers and illegal

loggers, remained marginal poor, ill-fed and ill-housed. (Innovations, 1994:10).

The Bantay Puerto (or Puerto Princesa Watch) program was initiated by the

Mayor. He knew very well that this program will succeed if there is a political will on

his part to enforce existing environmental laws as well as other city ordinances. And,

he needed the support of the whole community. Thus, he initiated one on one

dialogues to get the support of the political leaders, especially those in the

opposition. Then he embarked on a massive information campaign and consultative

meetings with the city legislative council, the barangay captains, city government

employees and various sectors of the community. He went out of his way to visit

and cover the whole of Puerto Princesa. That environmental concerns were also high

in the national government’s agenda augured well for this program. Mayor Hagedorn

had the support of national government agencies, in particular the Department of

8
Environment and Natural Resources and national NGOs concerned with the

environment.

The program had two major components: the Bantay Gubat (Forest Watch)

which aimed to protect and rehabilitate the forests and the Bantay Dagat (Bay

Watch) to protect and conserve the marine ecology. A unique aspect of the program

was the involvement of the whole community. Through an annual activity called

“feast of the forest”, and the support of the business sector who provided vehicles,

food, planting materials, equipment, etc., 750,000 trees have been planted with an

80% survival rate. Through the community’s volunteer information and monitoring

groups who supported the law enforcement groups, 2,000 persons have been

apprehended and 123 persons convicted for violating forestry and fishery laws

while 1,700 vessels were fined for illegal fishing.

The strict enforcement of all laws especially on forestry and the city ordinance

on anti-littering sent a strong signal to everyone that the leadership was serious

about its campaign against violators and lawless elements. That nobody was above

the law was demonstrated in situations where even the mayor himself was fined for

throwing a cigarette butt and a Senator was apprehended by community volunteers

and paid a fine for littering.

The implementation of the Bantay Puerto meant the displacement of 3,000

marginal upland farmers who had to stop their slash-and-burn farming. The mayor

displayed resourcefulness in solving this problem by declaring a calamity and this

enabled the city to receive calamity funds from the national government. The fund

was used for cash-for-work program, rice subsidies, carabao and tractor pool and

purchase of seedlings. The government also paid special attention to their health

and medical needs.

9
 These demonstrations of political will and support for those sectors adversely

affected by the program have endeared the mayor to the community. This led to

more popular support for other initiatives of the city government. For example,

Oplan Linis (Operation Cleanliness) further strengthened the habit and discipline to

clean and beautify the city. The market vendors ensured clean public markets; the

tricycle and bus drivers maintained garbage receptacles inside their vehicles; and

the people in the villages swept the streets fronting their houses. The schoolchildren

were taught the values of cleanliness and these values they brought to their homes

and families. This cleanliness program has led to reduced incidence of gastro-

related diseases and eliminated the outbreak of contagious diseases.

Today, any visitor to Puerto Princesa will feel the deep sense of collective

pride and ownership among its residents. In just a matter of four years, the city

has recaptured its beauty with its unique flora and fauna, exquisite sceneries and

beaches. It has become a favorite place for conferences, tourism and recreation.

Puerto Princesa has become the most awarded city. It is the only city which was

given the mandate by the DENR to manage a national park where the longest

underground river in the world is located. In 1996, the city was considered the most

peaceful in the entire nation. It has the distinction of being the cleanest and greenest

city of the Philippines successively from 1993 to 1995. For this, it has been

conferred a Hall of Fame award by the Office of the President. All these bring

Puerto Princesa nearer to its vision of becoming a world class eco-tourism center.

Lessons Learned and Replicability

The three case studies have indicated many lessons which can be replicated

elsewhere. This paper would like to highlight four (4) lessons. First, on the role of

10
government in providing a facilitating and enabling environment such as legislating

the Local Government Code of 1991. Second, that there are strategies and

mechanisms that develop and enhance people empowerment. Third, the importance

of recognizing, documenting and disseminating information on “best practices.” And

fourth, that leadership is a key integrating factor to these three (3) success stories.

An enabling environment

There was an enabling environment that nurtured the initiatives and

innovations undertaken in Bulacan, Naga, and Puerto Princesa This was provided

by the Local Government Code of 1991, which, by itself was “a revolution in

governance” in the Philippines. It enabled the people in the three communities to

participate more directly in the governance processes. It gave space to the active

participation of NGOs, socio-civic organizations and the private sector in community

affairs. It facilitated the delivery of services and information dissemination to the

community.

More important, the new institutional arrangements promoted transparency

and accountability. With the transfer of responsibility, authorities, powers and

resources from the national to local governments, local chief executives will find it

difficult to explain their poor performance. Unlike in the past, they can always

complain that they do not have the resources and the decision-making authority.

For instance, they had no control over the assignments of government workers such

as agriculturists, health and social workers, forests guards, as they were fielded by

and responsible to national government agencies. As the decision-maker is nearer

to the community, the demand givers, a situation is created where it becomes

difficult to “pass the buck” and not to do a good job. In turn, the people in the

11
community become more aware of their rights and will thus be more vigilant in

ensuring better government. As stakeholders, their sense of responsibility and

participativeness in community affairs are also enhanced. This was shown in the

participation of the residents of Puerto Princesa in protecting their forests and the

coastal areas. In Naga, socio-civic groups volunteered their services to assist

government in the delivery of basic services such as health and rescue operations.

From a larger perspective, the emerging and new roles of the government as

enabler and facilitator, should be emphasized relative to its more traditional roles.

This is consistent with the new perspectives on the meaning of development which

now put emphasis on: human development, sustainable growth, decentralization,

gender equality, participatory approaches. Even the concept of governance acquires

a loftier meaning-- that of managing relationships of government, NGOs, civil society

business and all the other sectors of the society. A new concept of what is called

“social capital” also comes into play as the “processes between people which

established networks, norms and social trust and facilitate coordination and

cooperation for mutual benefit.” (Cox 1995:21, as cited by Carino, op cit:10).

Empowerment of People

A key factor that was present in the three cases was a genuine recognition

and nurturing of people empowerment. The trust and confidence accorded to the

government employees in Naga unleashed their expertise and creativity and

motivated them to be better public servants. They came out with new solutions to

community problems and concerns, e.g., the reduction of the transaction time for the

issuance of business permits and the computerization of various government

12
operations. They readily volunteered their services outside of their regular working

hours to plant trees, clean the river, and maintain the cleanliness of the community.

The community was empowered through their various community

involvements. They were consulted in identifying priority programs of the

communities. They knew what was happening in the community. They were asked

to give feedback to the government. The residents of Puerto Princesa City were

given the responsibilities to monitor and apprehend violators of community

ordinances.

The empowerment of people also led to changes in their mindset and

attitudes. On the part of the government employees in Naga, there was greater

pride in being part of the government. There was readiness to work more than eight

hours a day and to do volunteer service even during weekends. On the part of

people and communities, there was more support and positive attitude towards

government. There was more participation in community affairs. There was a

greater sense of responsibility for protecting the community’s resources. There was

more support to community’s development goals and objectives, e.g., more people

paying taxes as in Naga, and the cooperatives in Bulacan providing livelihood

opportunities to poor families.

Recognizing Governance Innovations

The many recognitions and awards accorded to Bulacan, Naga City and

Puerto Princesa sparked and inspired more and improved performance from the

government and the people in these communities. As earlier mentioned, Puerto

Princesa has won the cleanest and greenest city award for 3 straight years. A recent

13
award was on being the most peaceful city in the Philippines. Its police force was

also awarded as one of the country’s best. The cooperatives of Bulacan have been

recipients of national citations and awards, e.g., Top Ten Cooperatives of the

Philippines, Outstanding Fisherfolk Organization, Outstanding Small Farmer

Cooperative, Number One in Savings Mobilization, National Recognition for Local

Government Unit/People’s Organization Partnership, among others. The many

awards that have been given to Naga have been cited earlier.

3
The role of Galing Pook Awards or Excellence in Local Governance

Awards in discovering the governance innovations in these three local government

units should be noted. Also worth noting is that it was initiated in 1993 by the private

sector, specifically, the Asian Institute of Management with support from the Ford

Foundation. As a program, it seeks to recognize LGUs which have endeavored to

prove that higher levels of performance and greater impact may be achieved through

the judicious exercise of powers they have been vested with by the Local

Government Code in 1991. There are five ( 5) major awards criteria: effectiveness of

service delivery, positive socioeconomic and/or environmental impact, promotion of

people empowerment, transferability and sustainability, and creative use of powers.

The composition of the National Selection Committee which includes government

leaders, the NGO sector, academe, and media also illustrates partnership among

various sectors of society.

In its three years of implementation, a total of 60 programs have been cited

for their innovations. “Galing Pook” has become a useful mechanism to inform local

chief executives about programs that work effectively and inspire them to strive for

excellence and creativity in their respective communities. The three communities, as

well as the other local government awardees, have been the destination of many

local chief executives and key leaders from the community who are curious and

14
eager to learn from their award-winning experiences. The documentation and

dissemination of these experiences undertaken through the Department of Local

Government and the various leagues (of provinces, cities and municipalities), have

facilitated information exchange, sharing and learning from each other.

The Role of Leaders

A major question that was raised during the discussion of the three cases is

on whether the leadership qualities of the three local chief executives can be taught,

learned and applied by other local leaders. The answer to this question should be

obvious from the actual behaviors and values they have exhibited. First, they have

shown political will which, put very simply, is being true and faithful to and actually

delivering on one’s commitments and pronouncements. This also meant actual

enforcement of provincial and city laws and ordinances. There may have been some

significant political costs or risks on the reforms that they have pursued, but the

outcome would show that their decisions redound to the benefits to the community.

And because of this, their leadership roles continue to be affirmed. Second, they

exhibited genuine trust and confidence on people. It did not matter if these people

were government employees they had inherited from the previous administration or

political leaders from the opposition. There was also the commitment and real

initiatives to develop competencies and capabilities of the people. These came in

the form of dialogues and consultations, involvement in community activities, and

actual training and developmental activities. Third, given this liking for people, there

are related attributes of being sensitive to the popular demand of the community,

being consultative, having a passion for communicating with one’s constituents and

a readiness to appreciate and recognize good performance. Fourth, all three local

executives had long-term visions for the development of their respective

15
communities and they really exerted efforts to have these visions shared and owned

by the people in the communities.

These leadership qualities can definitely be learned. Most recent studies on

leadership would indicate that these qualities and attributes exhibited by Governor

Pagdaganan, Mayors Robredo and Hagedorn are the same for all other outstanding

leaders. Even current academic and short-term courses have been designed to

develop the same.

Concluding Statements

A powerful combination of an enabling environment to push and nurture

devolution and a new breed of political leaders with competent and committed staff

who believed in people empowerment made possible these three success stories.

Present in the way governance was demonstrated by the three (3) local

political leaders are the same principles and dimensions that have been identified

and recognized as constituting and contributing to sound governance. We can

mention the policy papers and studies made by United Nations Development

Programme the World Bank. Among others, these dimensions would include: focus

on the client or customer driven programs, citizen feedback, giving voice and

ownership to citizens, public sector reforms such as performance-based

recognitions, deregulations and giving employees freedom to change things and

capability building initiatives addressed on all concerned sectors; e.g. building

partnership skills and capabilities. Such principles as transparency, accountability

and predictability were also emphasized.

16
 There is scope and hope that these governance principles, attributes and

qualities will become the leadership norms so to speak for local leaders in the

Philippines. Indeed, the prospects are bright for a new level playing field in the

selection of political leaders and rid the system with such perennial problems as high

election expenses, vote-buying, patronage and partisan politics. Where there is now

a demand for and with higher expectations raised by many success stories on local

governance innovations, this can only translate to a more responsible electorate on

the one hand, and, on the other, better options or choices from among a new breed

of political leaders.

1
It should be noted that the economic development program is just a component of
the five-point development program of Bulacan which include effective and efficient delivery
of social services; youth, culture and historical development; reform in government; peace and
order.
2
Puerto Princesa means princess of ports. It was a name given by the Spaniards.
During Spanish times, the place was made a center of naval operations.
3
For more information on the Galing Pook Awards, one should write The Executive
Director, Galing Pook Awards, Center for Development Management, Asian Institute of
Management, 123 Paseo de Roxas, 1260 Makati City, Philippines.

17
REFERENCES:

Abesamis, Teresa S., et.al. eds. Technical Cooperation for the Management of Change:
The case of the Local Development Assistance Program (LDAP) and its
Strategic Contributions to Meaningful Decentralization in the Philippines.
Published by the Local Development Assistance Program (USAID) and the National
Economic Development Authority.(undated)

Brillantes, Alex B., Jr. Capacity Building and Administrative Innovations in the
Philippines: the Integrated Capacity Building Program (ICBP). Paper presented
during the International Conference on Governance Innovations held in Manila,
Philippines, October 22 to 23, 1996.

Campos, Jose Edgardo and Root, Hilton. The Key to the Asian Miracle: Making Shared
Growth Credible. Washington D.C.: The Brookings Institutions. 1996.

Cariño, Ledivina V. Development and the Asian State: Providing an Enabling and
Facilitating Environment for Decentralised, Participatory and People-Centered
Development. A paper prepared for the Asia Ministerial Conference held on
November 18-21, 1996, Lahore, Pakistan.

Case presentations on Innovations in Local Government: The Philippine Experience

entitled “Community Involvement and Discipline for a Sustainable City: The Puerto
Princesa Experience,” “The Productivity Improvement Program (PIP) of Naga
City,” and “Energizing the Local Economy: The Bulacan Experience in Cooperative
Development” made during the International Conference on Governance Innovations
held on October 20-23, 1996.

Guiza, Edel C. “Managing A Local Governance Awards Program: the Galing Pook Experience.
The Asian Manager. (A publication of the Asian Institute of Management and the
Federation of Asian Institute of Management Alumni Association.) Vol. IX, No.4. 1996.

Local Government Academy. Innovations: Excellence in Local Governance (special issues

of the LGA forum). Quezon City: Printtrends Corporations. 1994-1995.

UNDP. Governance For Sustainable Human Development (A UNDP Policy Document).

October 1996.

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